Tuesday, 12 February 2013

Interface Management for Conflicts Avoidance between Owner, Employer’s Representative, and Contractors in High-Rise Building Projects

Generally, construction’s conflicts arise from a problem that has not been resolved by daily management and the parties. Traditionally, even in current contractual provisions too, owner or consultant continually transferring the risks to the contractors, which have been resulted high contingencies to their bids to cover the costs of risk (Acharya et al., 2006). However, problems can be originated from various sources, for example, nature of a project, contract system, outside forces, etc, that can lead to conflicts. The nature of a project can produce problems as it is complex, uncertain, dynamic environment, and the most fragmented industry.

Uncertainty in the project can lead to conflicts as every detail of a project cannot be planned before work begins. When uncertainty is high, initial drawings and specifications will be likely to change, and the project members will have to resolve problems during the construction. Moreover, according to Barrie and Pualsan (1992), the construction industry is a paradox in many ways. Each of its elements, designers, contractors, regulators, consumers, suppliers, and crafts, can be highly skilled in its own area, yet there is a little general perspective on how all the pieces fit together.

Furthermore, the construction contract itself may be the source of problems that lead to disputes and conflicts. As for construction projects, it is very difficult to state expectations and requirements with precision in any written agreement. Potential problem areas include ambiguities, omissions, conflicts, adjustment clauses, multiple prime contracts, fast-track construction, and unrealistic performance time.

A building or civil engineering project can commonly span 5, 10 or more years from the initial concept until settlement of the final account and/ or resolution of all claims. This considerable time span has four significant phases: (1) pre-tender; (2) contract formulation; (3) construction; and (4) post-completion, relative to the life cycle of claims which might arise on the project (Hughes et al., 1992). In addition, according to Adnan Enshassi et al. (2008), construction disputes and conflicts can occur in both publicly and privately funded projects, and in projects with small, as well as large funding. Also, conflicts can occur between the owner (and owner’s representative) and a contractor and between a contractor and a subcontractor. Therefore, all participants on the project should fully understand the claim process.

As there are many causes that can lead to conflict in the construction, for example, change or variation orders, delay caused by owner, oral change orders by owner, and etc, analyzing the various types and causes of conflicts is an important task to resolving these conflicts (Ren et al.,2003). Since project participants are becoming more aware of the high costs and risks associated with conflicts and their litigation. As the costs of dealing with them often is greater than the cost of dealing with the problems when they first arise. Therefore, it is important for all participants in the project to be committed to solving problems as they crop up. The figure below shows the “Escalating Nature of Problems”



Mr. Porntanat Kongsrisawat made a case study to emphasize potential problems which are engendered from the construction contract and claim identification process. Problem areas in the construction contract are multiple prime contracts.

Multiple Prime Contracts

Generally, multiple prime contracts, the owner contracts directly with the several major specialized trades’ contractors. Typically, multiple prime contracts consist of general construction, HVAC (heating, ventilating and air conditioning), plumbing, electrical, site work, and any special construction as shown figure below. 



Bramble et al. (1990) states that many industry commentators have bemoaned the problems of multiple prime contracts. Problems may arise from multiple prime contracts as the responsibility for coordinating among them usually falls upon the owner. As a result, the separate prime contractors have to coordinate among themselves that no one contractor has contractual authority or economic power to necessitate the other contractors to carry out in a certain manner. Another problem is the lines of responsibilities and accountability under multiple contracts is less clear than a single contract system. So, one party may exceed the bounds of its responsibilities and infringe upon the other’s responsibilities. On the other hand, some tasks may not be carried out by any party as a failure to fulfill the contractual responsibilities. Such a problem can be led to an interference claim.

The problem as “Difficulties in detecting any problems during the work due to high workload” is very interesting as any problems are seedbed that can lead to claim. If we can identify the problems then the next process of claim management can be performed with the right manner. In addition, it is very important for detecting problems as we can provide in all fairness to the party who suffered from such problems.

In order to clearly identify the scope of work and responsibilities of many contractors in relation to each other, the objectives of Mr. Kongsrisawat’s research were to: (i) explore and investigate interface problems that lead to conflict issues during construction phase among multiple prime contractors; (ii) investigate the existing practices according to the interface management that lead to conflicts among multiple prime contractors in accordance with the first objective; and (iii) propose recommended practices of proper coordination to prevent problems among multiple prime contractors.

Conclusion

Coordination in construction phase which leads to make efficient flow of working among multiple prime contractors is the main aim of this research. To achieve this aim, this research was conducted to achieve these three main objectives: (1) To explore and investigate interface problems that lead to conflict issues among multiple prime contractors involved in high-rise building construction; (2) To investigate the existing practices according to the interface management that lead to conflicts among multiple prime contractors on the construction site; and (3) To propose recommended practices of proper coordination to prevent problems among multiple prime contractors in construction project.

The research began by literature review to investigate the interface description and coordination task. The problems among multiple prime contractors in construction phase were verified by gathering data from the construction site in Thailand construction to fulfill the first objective. Continuing, the researcher investigate the existing process of management related with 4 main category of work; planning/ scheduling, coordination, controlling, and procurement that lead to problems.

Research Findings

1.  Key Personnel Job Responsibility in Construction Phase in High-Rise Building
Project

The first objective of this research found the key functional responsibility of the owner, construction manager, project manager, project engineer, and senior site engineer. It would be useful for them to avoid overlapping of responsibility during construction phase as there are a lot of activities for performing. The personnel responsibility has been arranged into the 5 main category of work which including planning/ scheduling, controlling, procurement, coordination, and law. Besides, this study is also concentrate on problems that arise during construction phase which has impact on time, cost, and quality of the project. After getting all activities in each category of work as in the first part, the table of personnel responsibility by interview is fulfilled all activities and who to responsible for them.

2. Recommendations for Proper Coordination to Prevent Problems among Multiple Prime Contractors

Coordination of drawings and specifications are considered as the most priority during management in construction enterprise as it provides the smooth in process of working among multiple prime contractors. In order to accomplish the project on-time within budget, all obstructs need to be eliminated, reduced, or controlled. Recommendations for making effective and proper coordinate are the last part of thesis findings, and they were summarized in table below.

3.  Summary of Recommendations for making proper coordination among multiple prime contractors is tabled below.

  


His thesis abstract is copied and pasted below.

Abstract

The characteristics of construction projects are always multidisciplinary, large, and required many different parties to participate during execution period. During certain stages, some phases may very often be undertaken simultaneously, requiring major efforts in terms of the coordination and communication between the participants. However, the principal person charged with coordination in construction projects delivered through construction management is the construction manager (CM).

However, some of the disruptions that might be occurred during execution stage, especially conflicts among the participants are originated from the contractual arrangement. The type of contract that generates problems and lead to conflicts is multiple prime contracts which highly been applied by the employer nowadays as it provides lower cost to the employer when compare with another type of contract, single contract. The multiple prime contracts, the owner will contract directly to prime contractor, including General Contractors (structural and architectural works), M/E Contractor (sanitary system, electrical system, air-conditioning system works), Finishing Contractor, Aluminum Contractor, and Interior Contractor. According to the schedule of the project, some works they have to perform work together at the same time which work of one prime contractor can affect to another prime contractor. As a result, those problems will effect to the project in term of time, cost, and quality. To prevent or reduce problems among multiple prime contractors, the employer and employer’s representative must play a significant role in managing them.

From the research, to avoid problems that can lead to conflicts in the construction project among the participants, especially the employer, employer’s representative, and prime contractors, they have to concern the source problems areas. The origin of problems that they have to concern is drawings and specifications, coordination with related parties, and material and equipment.




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