Large-Scale Construction Project Management: Understanding Legal and Contract Requirements

Cover
Half Title
Title Page
Copyright Page
Table of Contents
Preface
Acknowledgments
Author
Abbreviations
1 Introduction
	1.1 Overview
	1.2 Aim and Objectives
	1.3 Content
	1.4 Scope and Limit
	References
2 Construction Contract
	2.1 Introduction
	2.2 Standard Forms of Contract
	2.3 FIDIC
		2.3.1 FIDIC Forms
		2.3.2 FIDIC Contract Components
			2.3.2.1 General Conditions
			2.3.2.2 Particular Conditions
			2.3.2.3 Supplement Documents
	2.4 NEC
		2.4.1 Contract Structure
		2.4.2 Core Clauses
		2.4.3 Main Options
		2.4.4 Secondary Options
	2.5 JCT
		2.5.1 JCT Forms
		2.5.2 JCT Contract Components
	2.6 Common Law
		2.6.1 Contract Formation
		2.6.2 Contract Interpretation
		2.6.3 Good Faith
		2.6.4 Defect Liability
		2.6.5 Damages
		2.6.6 Termination
	2.7 Civil Law
		2.7.1 Sources of Law
		2.7.2 Formation of a Contract
		2.7.3 Good Faith
		2.7.4 Types of Contract: Public or Private
		2.7.5 Standard Forms of Contract
		2.7.6 Limitation of Liability
		2.7.7 Liquidated Damages and Penalty
		2.7.8 Termination
	2.8 Recommendations
	References
3 Time Management
	3.1 Introduction
	3.2 Legal Obligation of Completion
		3.2.1 Terminology of Completion
			3.2.1.1 Substantial Completion
			3.2.1.2 Practical Completion
			3.2.1.3 Completion
			3.2.1.4 Planned Completion
			3.2.1.5 Completion Date or Time/Date for Completion
		3.2.2 Contract Express Provisions
			3.2.2.1 FIDIC
			3.2.2.2 JCT
			3.2.2.3 NEC
			3.2.2.4 PPC2000
		3.2.3 Implied Terms
			3.2.3.1 SGSA 1982
			3.2.3.2 Consumer Rights Act 2015
			3.2.3.3 Common Law
		3.2.4 Time Is of the Essence
	3.3 Project Planning
		3.3.1 Programme
			3.3.1.1 Baseline Programme
			3.3.1.2 Stakeholder Engagement
			3.3.1.3 Work Breakdown Structure (WBS)
			3.3.1.4 Schedule Quality
			3.3.1.5 Critical Path
		3.3.2 Programme under NEC Contract
			3.3.2.1 First Programme
			3.3.2.2 Accepted Programme
			3.3.2.3 Revising the Programme
			3.3.2.4 Activity Schedule
			3.3.2.5 Sectional Completion
			3.3.2.6 Bonus for Early Completion
			3.3.2.7 X7 Delay Damages
		3.3.3 Programme under FIDIC Contract
			3.3.3.1 General Programme Requirement
			3.3.3.2 Revised Programme
			3.3.3.3 Process and Time Limit for Programme Submission and Acceptance
			3.3.3.4 Delay Damages
		3.3.4 Time Management under JCT Contract
			3.3.4.1 Programme
			3.3.4.2 Progress
			3.3.4.3 Relevant Event
			3.3.4.4 Acceleration
			3.3.4.5 Procedure
			3.3.4.6 Liquidated Damages
	3.4 Delay
		3.4.1 Types of Delay
		3.4.2 Extension of Time (EOT)
		3.4.3 Delay Analysis
			3.4.3.1 As-Planned vs. As-Built
			3.4.3.2 Impacted As-Planned
			3.4.3.3 Time Impact Analysis
			3.4.3.4 Collapsed As-Built
			3.4.3.5 Window Analysis
	3.5 Burning Issues
		3.5.1 Prevention Principle
		3.5.2 Time at Large
		3.5.3 Concurrent Delay
			3.5.3.1 English Law – Malmaison Approach
			3.5.3.2 Scottish Law – Appointment Approach
			3.5.3.3 US Law – Multiple Approaches
			3.5.3.4 Australia Law
		3.5.4 Liquidated Damages
			3.5.4.1 Common Law
			3.5.4.2 Civil Law
			3.5.4.3 Standard Forms Contract
			3.5.4.4 FIDIC
			3.5.4.5 NEC
			3.5.4.6 JCT
		3.5.5 Float Ownership
			3.5.5.1 Who Owns the Float?
		3.5.6 Time Bar and Condition Precedent
	3.6 Recommendations
	References
4 Cost Management
	4.1 Introduction
	4.2 Price and Payment
		4.2.1 Type of Contract
			4.2.1.1 Lump Sum
			4.2.1.2 Reimbursement
			4.2.1.3 Target Cost
		4.2.2 Statutory Obligation
		4.2.3 Employer’s Obligation
		4.2.4 Contractor’s Obligation
	4.3 Cost Management under FIDIC Contract
		4.3.1 Adjust the Contract Price
		4.3.2 Payment
			4.3.2.1 Advanced Payment
			4.3.2.2 Interim Payment
			4.3.2.3 Final Payment
	4.4 Cost Management under NEC Contract
		4.4.1 Payment
			4.4.1.1 Payment Components
			4.4.1.2 Payment Schedule
			4.4.1.3 Payment Assessment
			4.4.1.4 Final Payment
		4.4.2 Defined Cost
		4.4.3 Fee
		4.4.4 Disallowed Cost
		4.4.5 Retention
		4.4.6 Incentivization
			4.4.6.1 Target Cost Pain/Gain Share under Options C and D
			4.4.6.2 Option X20 – Key Performance Indicators (KPIs)
		4.4.7 Price Adjustment for Inflation
	4.5 Cost Management under JCT Contract
		4.5.1 Payment
			4.5.1.1 Interim Payment
			4.5.1.2 Final Payment
		4.5.2 Relevant Matters
		4.5.3 Claim for Loss and Expense
		4.5.4 Fluctuations
	4.6 Key Issues
		4.6.1 Quantum Meruit
		4.6.2 Home Office Overhead (HOO)
			4.6.2.1 Hudson Formula
			4.6.2.2 Emden Formula
			4.6.2.3 Eichleay Formula
		4.6.3 “Smash and Grab”
		4.6.4 Inflation Impact
	4.7 Recommendations
	References
5 Risk Management
	5.1 Introduction
	5.2 Standard Risk Management Procedure
		5.2.1 Risk Identification
		5.2.2 Risk Analysis
			5.2.2.1 Qualitative Analysis
			5.2.2.2 Quantitative Analysis
		5.2.3 Risk Treatment
		5.2.4 Risk Monitoring and Control
	5.3 Risk Management under NEC Forms of Contract
		5.3.1 Risk Allocation
			5.3.1.1 Main Options
			5.3.1.2 Core Clause
			5.3.1.3 Contract Data
			5.3.1.4 Compensation Event
			5.3.1.5 Secondary Options
		5.3.2 Early Warnings
		5.3.3 Financial Benefit
	5.4 Risk Management under FIDIC Forms of Contract
		5.4.1 Risk Allocation
			5.4.1.1 Employer’s Risk
			5.4.1.2 Contractor’s Risk
			5.4.1.3 Exceptional Events
		5.4.2 Advanced Warning
	5.5 Time Risk Management
		5.5.1 Schedule Risk
		5.5.2 QSRA (Quantitative Schedule Risk Analysis)
			5.5.2.1 Duration Uncertainty
			5.5.2.2 Impact of Risks
			5.5.2.3 Programme Confidence
		5.5.3 Critical Path and What-if Scenarios
	5.6 Cost Risk Management
		5.6.1 Types of Cost Reserve
			5.6.1.1 Contingency Reserve
			5.6.1.2 Management Reserve
		5.6.2 QCRA (Quantitative Cost Risk Analysis)
		5.6.3 QSCRA (Quantitative Schedule and Cost Risk Analysis)
		5.6.4 Risk Drawdown
	5.7 Recommendations
	References
6 Change Management
	6.1 Introduction
	6.2 Variations
	6.3 Claim
		6.3.1 Claim Inside the Contract
			6.3.1.1 Express Terms
			6.3.1.2 Implied Terms
		6.3.2 Claim Outside the Contract
	6.4 Change under FIDIC
		6.4.1 Contractor’s Claim
			6.4.1.1 Cost Claims
		6.4.2 Employer’s Claim
		6.4.3 Claim Process
	6.5 Compensation Event under NEC
		6.5.1 Entitlement
			6.5.1.1 Events Resulting from the Client or Their Representative
			6.5.1.2 Events Outside the Client’s Control
		6.5.2 Process
		6.5.3 Sanctions
		6.5.4 Changes in NEC4
	6.6 Variations under JCT
		6.6.1 Cost Claims
		6.6.2 Time Claims
	6.7 Change Management under PMBOK
		6.7.1 Procedure
	6.8 Change Theme under PRINCE2
	6.9 Key Issues
		6.9.1 Conditions Precedent
		6.9.2 Time Bar
	6.10 Recommendations
	References
7 Alternative Dispute Resolutions
	7.1 Introduction
	7.2 Alternative Dispute Resolution
	7.3 Mediation
	7.4 Adjudication
		7.4.1 Statutory Adjudication
		7.4.2 Non-Statutory Adjudication
	7.5 Dispute Board
		7.5.1 Dispute Avoidance Board
		7.5.2 Dispute Review Board/Dispute Resolution Board (DRB)
		7.5.3 Dispute Adjudication Board
	7.6 Arbitration
		7.6.1 Arbitration vs. Litigation
		7.6.2 Applicable Law
	7.7 Dispute Resolution in Standard Forms
		7.7.1 FIDIC
			7.7.1.1 Tier 1 – Engineer’s Determination
			7.7.1.2 Tier 2 – Dispute Avoidance and Adjudication Board
			7.7.1.3 Tier 3 – Arbitration
		7.7.2 NEC
			7.7.2.1 Tier 1 – Negotiation
			7.7.2.2 Tier 2 – Adjudication/Dispute Avoidance Board
			7.7.2.3 Tier 3 – Tribunal
		7.7.3 JCT
			7.7.3.1 Tier 1 – Negotiation
			7.7.3.2 Tier 2 – Mediation/Adjudication
			7.7.3.3 Tier 3 – Arbitration/Litigation
	7.8 Recommendations
		7.8.1 Pre-Contract
		7.8.2 Post-Contract
	References
8 Integrated Project Control
	8.1 Introduction
	8.2 Integrated Project Control System
		8.2.1 Integrated Project Control
			8.2.1.1 Pre-Contract
			8.2.1.2 Post-Contract: Front-End Tool and System
			8.2.1.3 Post-Contract: During Implementation
		8.2.2 Programme and Portfolio Management
	8.3 Project Control Procedure
		8.3.1 Earned Value Management
		8.3.2 Cost Control
		8.3.3 Schedule Control
		8.3.4 Change Control
		8.3.5 Risk Control
		8.3.6 Performance Reporting
	8.4 Continuous Performance Improvement
		8.4.1 Key Performance Indicators (KPI)
		8.4.2 Lean Construction
	8.5 Recommendations
	References
Index