SCOPE OF WORK: CONSTRUCTION MANAGEMENT SERVICES

This article is about Construction Management Services and Scope of work for contractor to perform jobs of Plans and Strategies, Construction Contracts – Pre-Award Activities,  Construction Contracts, Post-Award Administration, Construction Site Activities, Reporting Procedures.

1.  Scope

1.1       The ENGINEERIG CONTRACTOR shall provide a complete service for the setting-up, management, and administration of the construction work as required in the contract scope. This can include:

• Topographical survey
• Site preparation
• Civil (aboveground and underground)
• Structural steel
• Piping (including necessary prefabrication)
• Mechanical erection (including grouting of machines, etc.)
• Electrical and instrumentation
• Associated testing and pre-commissioning activities
• Landscaping

1.2       The services to be provided include, but are not limited to, those described below.

2. Codes, Standards, and Specifications

The ENGINEERIG CONTRACTOR shall allow for all codes, standards, specifications, and requirements detailed in the documents listed in the contract scope appendix when dealing with construction scope of work, construction contracts, and site supervision. Appropriate specifications shall be selected to meet the requirements of the specific-site location and in conjunction with Company. Any additional relevant documents that may be required by the contract scope will be listed there.

3.  Home Office Activities

3.1  Plans and Strategies

1. The ENGINEERIG CONTRACTOR shall prepare a strategy for the construction of the work, including protocols for the purchasing and administration of steelwork prefabrication/erection, piping prefabrication, piping erection, mechanical erection, electrical and instrumentation installation.
2. The ENGINEERIG CONTRACTOR shall prepare all necessary programs and schedules for the construction work. These shall integrate all associated design work, equipment and material deliveries, pre- commissioning and start-up activities with the construction works.
3. All construction schedules shall be “man-hour loaded” (that is, man-hours shall be allocated to each major activity).
4. The ENGINEERIG CONTRACTOR shall prepare definitive estimates for all construction work. Such estimates shall be expressed in the currency in which the work will be paid and in number of man-hours to be used in performing the work.
5. The ENGINEERIG CONTRACTOR shall prepare a strategy for the management of health and safety at the construction site. This document shall include at a minimum:
   • A clear statement of corporate policy regarding health and safety.
   • A description of how this policy is administered.
   • The level, frequency, and methods to be used for education and training on health and safety matters.
   • An organizational chart or list showing the person responsible for health and safety at the site.
   • An action plan showing how the safe execution of works will be ensured, together with a risk analysis.
   • Details of the provision and maintenance of personal protective equipment, together with instructions and training in its use.
6. The ENGINEERIG CONTRACTOR is also responsible for ensuring compliance with the requirements of Air Products’ safety and construction procedures for contractors by all personnel while on site.
7. The ENGINEERIG CONTRACTOR shall prepare a strategy for the management of quality assurance.
8. The ENGINEERIG CONTRACTOR shall prepare a strategy for the management of good industrial relations. This document shall define and explain the EC’s proposals for administration of industrial relations during the construction period. In particular, the ENGINEERIG CONTRACTOR will explain what influence the industrial relations policy will have upon the selection, recruitment, and dismissal of laborers. The ENGINEERIG CONTRACTOR will explain the proposed system of remuneration for the construction work force and any alternatives.
9. The ENGINEERIG CONTRACTOR will explain which (if any) unions will be included in the work and what communications with them are proposed. The ENGINEERIG CONTRACTOR shall also state how communications will be made with the work force(s) and how any union versus non-union labor issues will be handled.

3.2  Construction Contracts – Pre-Award Activities

1. Prospective bidders for the construction work shall be prequalified for overall capability, financial stability, previous experience, size of work force, and management structure. In addition, the administrative procedures for safety, quality assurance, payment of workers and sub-contractors, industrial relations, measurement and control of work performed shall be prequalified.
2. The ENGINEERING CONTRACTOR shall submit a recommended bidders list and all relevant prequalification documentation to Company for approval.
3. The ENGINEERING CONTRACTOR shall prepare commercial enquiry documents and technical bid packages for the construction work. These shall be reviewed with Company before issuing to approved bidders.
4. The ENGINEERING CONTRACTOR shall expedite all bids so that they are received by the due date and shall promptly compile a “bid tabulation” to summarize commercial offers. This shall be submitted for review and approval by Company with a clear recommendation on the bid(s) to be developed further.
5. The ENGINEERING CONTRACTOR shall meet and/or communicate with bidders to review, clarify, and/or develop the commercial and technical issues. The ENGINEERIG CONTRACTOR shall give Company adequate notice of such meetings and at the same time provide an agenda of items for discussion. Company will, at its own discretion, have the right to attend and participate in all such meetings.
6. After concluding the pre-award negotiations and receiving written approval from Company to commit, the ENGINEERIG CONTRACTOR shall place a purchase order(s) with the selected construction contractor(s).

3.3    Construction Contracts – Post-Award Administration

1. The ENGINEERING CONTRACTOR shall operate a document control system for the control, recording, and distribution of all necessary contract documentation to construction contractors, including, but not limited to:
   • Scope of work
   • Conditions of contract
   • Form of price quotation
   • List of rates
   • Drawing list
   • Construction specifications
   • Safety and construction procedures
   • Key dates schedule
   • List of documents to be submitted by contractor, including QA documents, as-built drawings, etc.
   • Engineering standards and specifications
   • Drawings (including vendor prints)
2. There shall be a system for the receipt, approval (where appropriate), acceptance, and retention of construction contractor quality control dossiers, including:
   • Quality procedure
   • Non-destructive Testing (NDT) examination process
   • Welding procedure, specifications, and qualification certificates
   • Welder competence certificates
   • As-built drawings and such
3. The ENGINEERING CONTRACTOR shall list the quality control documents and as-built drawings that construction contractors must submit. The ENGINEERIG CONTRACTOR shall ensure that these satisfy all national and local country authority requirements.
4. The ENGINEERING CONTRACTOR shall state how the work is to be controlled and by what system and criteria contractors are to be reimbursed for work performed. There should be clear statements regarding:
   • How work is to be measured or evaluated.
   • How extra work is to be managed and reimbursed, and what controls will be placed on the contractor.
   • How progress is to be evaluated and controlled.
   • The forecasting methods to be used both for physical and financial control.

4.  Construction Site Activities

1. The ENGINEERING CONTRACTOR shall arrange with Company to take possession of the construction site.
2. The ENGINEERING CONTRACTOR shall arrange for general site services including, but not limited to, the following:
   • Access to the site.
   • Establishment of contractor’s access and work areas and prohibited areas.
   • Provision of connection points for any temporary services, such as electricity, water, sewage, steam, and air.
   • Provision of any necessary parking, storage and lay-down areas, mess rooms, changing rooms, etc.
   • Security of the site including all necessary arrangements to guarantee the security of the site and equipment and arrangements to ensure safe working conditions.
   • Arrangements for the proper documentation of all site-employed personnel including records of names, addresses, contact names and addresses, the issuing of site passes, and records of personnel on site.
3. The ENGINEERING CONTRACTOR shall administer construction contracts including site safety, chairing and preparing minutes of weekly site meetings with each contractor. Coordination of contractors’ work, including if necessary, chairing and preparing minutes of site coordination meetings.
4. The ENGINEERING CONTRACTOR shall manage and control safety on the site including the administration of induction courses and the coordination of weekly tool box meetings. The ENGINEERING CONTRACTOR will also perform regular safety audits on all contractors’ works and ensure that the results of such audits are properly distributed and explained. The ENGINEERING CONTRACTOR will take action to ensure that any deficiencies revealed by a safety audit are corrected and that any faults in procedures are not repeated.
5. The ENGINEERING CONTRACTOR shall ensure that QA procedures are followed and that documentation is completed on time and is available at all times.
6. The work shall be measured (evaluated) regularly for the purpose of payment to contractors. The ENGINEERING CONTRACTOR shall measure, control, and agree to any variations to the work.
7. The ENGINEERING CONTRACTOR shall agree to, and issue payment certificates for, the payment of invoices for work completed. The ENGINEERING CONTRACTOR shall issue to Company a monthly statement of work completed, the value of such work, any extra work incurred, a forecast of completion dates, and anticipated final cost.

5.  Reporting Procedures

1. Company will appoint a “resident engineer” throughout the construction period. The EC’s representative resident at the site shall report formally each week to the Company resident engineer. He shall report in accordance with the points below.
2. The ENGINEERING CONTRACTOR shall issue a report at the end of each week that shows the progress to date to the approved construction program and the percentage completion of each activity. This shall be reviewed with Air Products’ resident engineer at site before issue.
3. Throughout the duration of the contract, the ENGINEERING CONTRACTOR shall deliver to Air Products’ resident engineer at the end of each week a signed report showing the numbers of the different classes of labor actually employed by each construction contractor on the site during that week, the number of hours worked, and the quantity and type of equipment used. The construction contractor shall also give to the ENGINEERING CONTRACTOR representative, a note at the start of each day showing the number of men on site on that day.
4. The ENGINEERING CONTRACTOR shall deliver to Air Products’ resident engineer at the site, two copies of any order(s) placed by a construction contractor for materials for use on the plant site and the latest delivery information.
5. Site meetings shall be held as Air Products’ resident engineer may reasonably require. A representative(s) of the ENGINEERING CONTRACTOR and any construction contractor(s) as Company may direct shall attend.
6. Company has the right to determine if the ENGINEERING CONTRACTOR has failed to diligently expedite the construction work in a timely manner by not meeting the construction schedule nor providing the required reports. Company has the right to invoke those applicable terms and conditions of the contract with the ENGINEERING CONTRACTOR to ensure completion of the work on time.
7. In addition, the EC’s representative shall report a “near miss” or an accident on site immediately and the results of safety audits weekly.

Civil and Structural Scope of Work in Petrochemical Project