PROJECT MANAGEMENT

Project Management

Project Management

Introduction

A Quantity Surveyor is an individual who oversees many parts of the Construction operation. Traditionally this role has been performed by a highly trained person with extensive knowledge in the operational procedures involved with construction or project management. This position often acts as an independent contractor and is a trusted and respected source for professional consultation. The roles of the Quantity Surveyor are diverse and vital to the project life cycle. Quantity Surveyors perform in the areas where major construction work is executed. They work on diversified projects like office blocks, schools, hospitals, factories to bridges, railways, oil and mining development, shipbuilding and large process engineering works for example oil refineries. A Quantity Surveyor can also be termed as Construction Economist or Cost Manager and is considered as a team of professional advisers to the construction industry.

It is not uncommon for a contractor that has encountered a construction claim to be surprised to learn that he has not maintained the necessary construction project documentation to supports his claim or defense. Typically, entitlement and the quantum aspect of the claim are proved by reviewing how the contractor planned on building the project (as-planned), as well as how the anticipated costs relate to the actual conditions and costs that were encountered during construction (as-built). While oral testimony is admissible evidence, greater weight is given to documentary evidence. Thus, the existence of as-planned and as-built project documentation are necessary to prove a claim.

Many government construction contracts require a contractor to maintain complete project cost records. Those records may be subject to audit in the event of a claim for a change order. In light of the increasing tendency of government agencies to respond to delay claims with liquidated damages and/or false claims of statute violations, the existence of detailed records are the only viable method of countering such defenses.

1. Construction Contract and Purchase Orders

The first document that must be reviewed in any construction dispute is the construction contract. The contract must be reviewed to determine which clauses apply to the contractors entitlement to prevail on the claim and what, if any, clauses limit the contractor's ability to recover the additional costs created by the claim. In addition to the construction contract, purchase orders are typically used to establish delays.

2. Bid Documents

In this author's experience, it is not uncommon for missing and incomplete bid documentation to undermine the whole claim. The lack of such documentation calls into question both the contractor's professionalism and the veracity of the purported as-planned costs. In order to prove that the additional project costs incurred were reasonable, it is necessary to establish that the underlying contract amount was appropriate. The bid documentation should include the following: takeoffs, unit pricing, subcontractor and supplier bids, calculations setting forth expected production, overhead and profit mark-ups, and mark-ups for labor burdens.

3. Schedule Data and Devices

In order to prevail on a delay claim, the party asserting the claim must prove that the delay was excusable, compensable and ...