Process and Procedure of Mediation

Phase one - pre-mediation

In the pre-mediation , first it will have an introduction to both mediators and parties . THen followed y discuss joint and private sessions . There will be no intrruptions and comlaint speak by the respondent .

After that agreement to mediate ,

- Authority to settle
- Confidentially as far as law allow
- Confidentiality as far as law allowes
- Privileged information
- Enforceability of Settlement Agreement
- Termination of Mediation process

  At preliminaries conference
- Outline of disputes
- Time , date , venue for
- Parties attending
- Summary - confirmed in waiting

Phase Two : During Mediation
i. Joint session - parties are invite to state their respective cases
ii. Mediator opening - groun rules laid down by mediator, provided brief statement of facts . No prior in depth knowledge of issue at dispute are required .
- Brief
- Services to put people at ease
- Allow parties to ask question
- Balanced approach to parties .

The private session
- Provide opportunity for disscuss additional informations
- Explore issue in more depth
Deal with strong emotions
- Reality test options
- Prepare for final negotiations

Usually exercised to enable parties to speak freely , allow mediator to puck out common issues and hidden masaage

iv. Joint Negotiation Session
- Focus resolution for future
- Evaluate range of settlement options , reality test final agreement
- To draft final agreement

Phase three- Post mediation
 Settlement Agreement - parties sign a settlement agreement withness by mediator . Parties can pursue court action if outcome unsatisfactory . Either parties may draw up agreement .

- Isolatrion of issues
- Agreement on issues remain dispute
- Agreement on all issues
- understanding needs of each other
- Relationship maintained
- Relationship enhanced

2nd set

What are the advantage and disadvantage of arbitration and litigation

Advantage ( arbitration )
* May avoid technicality of litigation
* Parties are free to decide arbitrator
* Despues can resolved by self-egulated system
* Fast , cheap , privacy
* Governed by Arbitration Act 2005
* Award can be set aside by court
*Awards are enforceable by court of law

Disadvantage

• Over a year have became form of private litigation as some arbitration involves of lawyer 

Delay

• Non legal arbitrator will have 
• If lawyer involves in the arbitration then it will require evidence and procedure 

Complexity of Dispute 

 * Construction industry involves multiple issue of fact and law or both 

Costly 

* Not as cheap as litigation as some parties hiered lawyer need to paid lawyer and arbitrator 

Judical Control 

• Arbitrator award such as stay , setting aside appointment arbitrator 
• More formalized process 
• In Malaysia it is regulated by court and statute 
• Award is subject setting aside by court 

Advantage of litigation 

* Process is open , transparent and public 

* It is based on strict , uniform compliance with law of land 

* Resolution is final and binding 

Disadvantage of Litigation 

8 Process involves imposing a solution , rather than parties seekling reach consensus themselves . 

Process is formal and usually flexible 

Public nature process might cause some embarrassment to parties 

Results can be outright winner and outright loser 

Take a long time - oftens several month to a year 

Court action can expensive , involving hiered of lawyer 

Some cases , cost each party exceed amount in dispute 

Form of solution to dispute is limited- often just financial damages 

Pre-condition requirement of arbitrations

• Every party has right to resort litigation 
• Matter can disputes if 
• It is a "genuine" dispute between parties 
• Exist a valid arbitration agreement between parties refer dispute to arbitration 
• Arbitration clause in agreement ( Clause 34 PAM 2006) 
• Arbitration clause must spell number of arbitration , rule governing the arbitration 

Advantage of arbitration 

• Cheap,fast,privacy
• Parties free to decide arbitrator 
• Avoid technicalty litigation 
• Parties free to set the rule to solve the problem 
• Disputes can solve by self regulated system 
• Governed by Arbitration Act 2005 
• Award set aside by court 

Disadvantage 

Over years have became form of private litigation as involve lawyer in arbitration 

Delay due to non legal arbitrator handle legal issue such as economic loss 

If lawyer involve in arbitration , it turn into pribate litigation that require evidence and procedure . 

Completexity of dispute as construction dispute involve fact or law or both 

Sometimes more costly than litigatian due to party have to paid both the arbitrator and lawyer whereas litigation olny need to pay the lawyer . 

Award subject to set aside by court , thus the arbitration is not really a private dispute resolution . 

Discuss the Malaysia legal position of the law of LAD with reference to 2 decision of federal court . 

- Liquidated Damages - genuine  pre-estimate loss that cause one party contract broken 

Penalty clause - Payment of money stimulated of offending party to force him to perform the contract 

Section 75 of Contract act 1950 states : 

" When a contract has broken , amount LAD in the contract to be paid in case of breach , or if contract contains other stimulation by the way of penalty " 

Above statement show that there is interchangeable of in term of "Penalty" and " LAD" 

The Federal court decision in Selva Kumar V Thiagarajah " If a sum named in the contract to be paid in case of breach , it is to be treat as penalty .." 

The Federal Court decision further reaffirmed by Johor Coastal v Constrajaya 

In Malaysia , it is appear that there is no different between liquidated damaged and penalty . Selva Kumar v Thiagarajah and Johor Coastal v Constrajaya 

. 

The word in section 75 Contract act 1950 didnt state no need to prove actual damage when a party claim the damages . 

Based on the case selva Kumar v Thiagarajah 

The Federal Court establish the principle that need to prove actual damage in accordance to Hadley v Barendale 

If the plaintif fail to prove his damages will result in court refusal to award damages . 

4)) Discuss the reason in support ADR . 

1. Privacy 

  ADR such as arbitration is not open to public like disputes litigation in court 

- Hearing and award kept private and confidential , which maintain positive working relationship 

2) Time Savings 

* ADR can help to resolve conflict less than time required for litigation . 

* Most court case take years to trial and appeal need to extend of time to get final result 

3) Cost savings 

* ADR is faster and more informal than litigation 

* The savings comes from reduce legal bills and hiered of lawyers 

4) Technical Expertise In Decision Making 

* ADR such as arbitration avoid randomly of selection of judges with litle expertise in field 

* Parties in ADR can agree to have experienced neutral with targeted industry experience 

* 

5) Finality 

*At the end of ADR , such as arbitration , disputes is finally and formally settled 

* Certain ADR such as arbitration is enforceable at law . Adjudication decision will have a temporary finality . 

Post Completion Review

• Evaluate whether project objectives was meet 
• To determine how effectively the project was run 
• To learn lessons for future 
• To ensure organization get the maximum benefit from the project 

Evaluate whether the project meet the objectives 

TO determine how effective the project was run 

To ensure organization get the maximum benefit from the project 

TO learn lessons for future 

Asset performance review - observation , questionaire , walk through interview 

Technical review - To identify good and bad practise 

Brief compliance review- explain cause and effect relationshp to improve quality for future decisions 

Procurement method - concern of project manager, cost , time . 

Post completion review 

To evaluate whether the project objectives was meet 

To determine how effective the project run 

To learn lessons for future 

TO ensure the organization get the maximum benefit from the project 

 

Asset Performance review - questionaire, walk through interview , observation 

Technical review - To identify good and bad practice 

Brief compliance review - Explain cause and effect relationship to improve quality for future decisions 

Procurement review - concern project manager , cost and time . 

Project Close out 

To detail formal acceptance for ending a project and handing it to client 

PM will prepare project close out report 

Provide client project archive package with key documents 

Involves following matters : 

1. Certificate of compliance and completion 

2. Certificate of practical completion 

Certificate of partial completion 

Project commissioning 

Post implementation review 

Corrective maintenance 

1. Carried out after failure occurrence 

2. Intended to restore or replace of an equipment to state it perform function required 

Ex light bulb 

Preventive maintenance 

1. It used to overcome disadvantage of corrective maintenance 

2.Reducing the chances of occurrence failure 

EG. Water tank

Condition Based Maintenance 

Maintenance is carried out respone to the significant defect 

Planned efficient to monitoring building element 

Service equipment before a major failure occur 

Eg. Air Conditioner 

Benefit of Facilities Planning Maintenance 

• Reduce wasteful activities 
• Reduce risk to minimum 
• Derive procedure for work efficient 
• Prevent mistake / loss of facilities 
• Planned by CMMS - help maintenance worker do jb more effective 
• Satisfy clien need for facilities 
• Resale owner will get a higher resale price 
• Healt-care cost - reduce the chances of resident get sick 
• Degree of preventive provide contribution to lower maintenance cost 

Stage to develop facilities maintenance strategy 

Understanding requirement 

Analysis (SWOT analysis) 

Developing solution 

Implmenting solution . 

Initiation

Project defection

Project Life Cycle 

Planning 

Detail Planning 

Execution 

Monitoring and controlling 

closure 

Project review 

Initiation 

- Starting up project by feasibility study 

- Analysis risk impact 

- Appoint Project Manager 

- Team member approach is compatible with project management 

Planning 

- Setting out roadmap for project 

- Include assignment of each task 

- Risk analysis 

- Planning documents 

Execution and controlling 

- Involves building deliverables 

- Controlling project delivery scope , cost , quality risks 

- Monitoring and controlling feasibilitys tudy 

RIsk Management

Risk Respone can define
1. Immediate respone - Alteration to project plan such identified risk is eliminate
2. Contingency respone - Provisio in project plan for course of action , and apply when consequences identified risk occur

Risk respone
Miscimmunication - risk reduction - conduct site meeting
Design alternative - Risk acceptance  - Client need brief cleary during design stage
Environment issue - risk reduction - Architect give AI to contractor
Workman Performance - RIsk reduction - Inspection to clerk work
Fluctuation Material price - risk transfer - contractor increase mark up pricing
Internal accident - risk reduction - Inspection of clerk of work
Unfavorable weather - risk transfer - contractor increase manpower

Risk respone
Immediate respone - RIsk is alternation to project plan such identification risk is eliminated
Contingency respone - Provision in the project plan for in case of unwanted  event happen under the estimate .

Miscommunication - Risk reduction - conduct site meeting
Design alternative - risk acceptance - client clearly brief during design stage
Environment issue - Risk reduction - Architect give AI instruction to contractor
Workman performance - risk reduction - Inspection of clerk work
Fluctuation material - risk transfer - contractor increase mark up pricing
Internal accident - risk reduction - Inspection of clerk work
Unfavorable weather - risk transfer - contractor increase manpower

RIsk respone
RIsk acceptance Risk reduction , risk allocation , risk transfer , removal


Risk acceptance
* Participant has decided to take on risk factor
* This decision may flow from
- ability manage risk to advantage
- Inability to allocate risk to thrid party
- Inability to avoid the risk


Risk acceptance
* Participant has decide to take on risk factor
* This decision may floow from
= Inability to manage risk to advantage
- Inability to allocate risk to third party
- Inability to avoid the risk


Risk Transfer
- involves shifting risk burden from participant to third party
- Can accomplish trhough contract or insurance
- Participant has risk burden will including allowance in their price .

Involves shifting risk burden from particpant to third party
Canj accomplishj through contract or insurance
Participant who has risk burden will including alloance in their price .

Transfer of construction risk
Client

Not all risk can transfer to third party ( if cannot)
- Avoid activity  which risk is associated
- Retain activity but take steps to reduce risk .



- avoid activity which risk is associated
- Retain acitivity but take steps to reduce risk

Risk allocation

• Construction clients is unwillingness to take project risk 
• They use contractual strength to allocate risk to contractor 
• Willingness of contracting party to assume risk is depend on : 

(a) magnitude of risk and its impacts 

(b) Ability of the party to bear consequences risk 

(c) Extent of benefit accruing from the risk 

(d) Ability to mitigate risk factor 

Risk allocation 

* Construction client is unwillingness to bear the project risks 

* They use contractual strength to allocate risk to contractor 

* willigness of contracting party to assume risk is dependi onm 

a) magnitude or risk and impact 

b) ability of the party to bear consequence risk 

c) Extent of benefit accruing from the risk 

d) Ability to mitigate the risk factor . 

Risk allocation 

Contractor - labour , machinery , and material availability 

Owner - Differing soil condition , Dewfective design , Change in work 

Shared - contract delay resolution 

Benefit of Facilities Planning Maintenance

• Reduce Wasteful activities 
• Reduce risk to minimum 
• Derive procedure to work efficiently 
• Satisfy client need for facilities 
• Resale value - Owner get a higher selling price 
• Prevent mistake /loss of facilities 
• Degree of preventive provide contribution to lower cost of maintenance 
• Keep facility running efficiently as possible 
• Health-care cost- efffective facilities management prevent resident getting sick 
• Planning by CMMS - help maintenance worker do job more efficient 

Reduce wasteful activities 

Redce risk to munimum 

Derive procedure to work efficiently 

Satisfy client need for facilities 

Resale owner get a higher selling price 

Prevent mistake and loss of facilities 

Degree of preventive provide contribution to lower the maintenance cost 

Keep facility running efficiently as possible 

Health care cost - effective facility prevent resident from getting sick 

Planning by CMMS - Maintenance worker done job more efficiently 

• Reduce waste activities 
• Resale owner get a higher selling price 
• Planned by CMMS - maintenance worker get job done more efficient
• Reduce risk to minimum 
• Derive procedure to work efficiently 
• Satisfy client need for facilities 
• Prevent mistake /loss of facilities 
• Degree of preventive contribution to lower the maintenance cost 
• Keep facility running efficiently as possible 
• Health care cost - Efficient facility prevent the resident getting sick 

Reduce wasteful activities 

Reduce risk to minimum 

Planned by CMMS - maintainance worker get job done more efficient

Health care cost- Efficient maintainance prevent resident getting sick 

Resale owner get a higher reselling price 

Satisfy client need for facilities 

Derive procedure for working efficient 

Prevent mistake / loss of facilities 

Keep facility running efficiently as possible 

Benefit of Facilities Planning Maintenance 

Resale owner get a higher reselling price 

Reduce wasteful activities 

Reduce risk to minimum 

Derive procedure for work efficient

Keep facility running efficient 

Planned by CMMS - Maintenance worker get job done efficient

Health care cost- Efficient facility reduce chance of resident getting sick 

Satisfy client need for facility 

Prevent mistake/ Loss of facilities 

Degree of preventive contribution to lower the maintenance cost 

Reduce the risk to minimum 

Reduce wasteful activities 

Derive procedure for work efficient 

Resale owner get a higher reselling price 

Prevent mistake / loss of facility 

Satisfy client need for facility 

Health Care cost- effective facility management prevent resident getting sick 

Planned by CMMS - help maintenance worker done job more efficient 

Degree of preventive contribution to lower the building maintenance cost 

Keep facility running as efficiently as possible 

Stage to develop facilities management strategy 

Understanding requirements 

Analysis (SWOT analysis ) 

Developing solution 

Implementing solution 

Understanding requirement 

Analysis (SWOT analysis) 

Developing solution 

Implementing solution 

Stage for develop building maintenance strategy 

Undertanding requirement 

Analysis (SWOT analysis )
Developing solution 

Implementing solution 

undertanding requirment 

Analysis ( SWOT analysis ) 

Developing solution 

Implementing solution 

undertanding requirement 

analysis (SWOT analysis ) 

Developing solution 

implementing solution 

Project Life Cycle 

Planning - Detail Planning 

Executions - Monitoring and controlling 

Closure - Project Review 

Initation - Project Defection 

Planning - Detail planning 

Execution - Monitoring and cntrolling 

Closure - Project Review 

Initiation - Project Defection 

Initiation 

Starting up project by feasibility study 

Analysis risk and impact 

Appoint project manager 

Team member approach is compatible with project management 

Initation 

Starting up project by feasibiity study 

Analysis risk and impact 

Appoint project manager 

Team member apprach is compatbile with project mangement

Initation 

Starting project by feasibility study

Analysis risk and impact 

Appointed project manager 

Team member approach is compatible with project management 

Initation 

Starting project by feasibility study 

Analysis risk and impact 

Appoint project manager 

Team member approach is compatible with project management 

Initation 

Starting project by feasibility study 

Analysis and risk impact 

Appoint project manager 

Team member approach is compatible with project amangement 

Initation 

Starting project by feasibility study 

Analaysis and risk impact 

Appoint project manager 

Team member approach is compatible with project management 

Initation 

Starting project by feasiblity study 

ANalysis risk and impact 

Appoint project manager 

Team memebr approach is compatible with project management 

Planning 

Setting out roadmap for project 

Include assignment of each task 

Risk analysis 

Planning document 

Planning 

setting out roadmap for project 

Include assingment for each task 

Risk analkysis 

Planning document 

Planning 

Setting out roadmap for project 

Include assignment of each task 

Risk analysis 

Planning document 

Planning 

Setting out roadmap for project 

Include assignment for each task 

Risk analysis 

Planning documents 

Execution and controlling 

Involes building deliverables 

Controlling project delivery scope, costs, quality risk 

Monitoring and controlling feasibility study 

Ensure brief is satisfy 

Planned solution to solve problem 

Once customer accept final solution , closure 

Closure 

Winding down project by relaseing staff 

project amanger ensure project brought to proper completion 

Handing over the client 

Execution and controlling 

Involves building deliverables 

Controlling project delivery scope, costs , quality risk 

Monitoring and controlling feasibility study 

Ensure brief is satisfy 

Planned solution to solve problem 

Execution and controlling 

Involves building deliverables 

Controlling project delivery scope, cost , quality and risk 

Monitoring and controlling deasibility study 

Ensure brief is satisfy 

Planned solution to solve problem 

Once custoemer accept final solution , closure 

Closure 

Winding down project by releasing staff 

Project manager ensure project brought to proper completion 

Handing over to the cline t

Execution and controlling 

Involves buildinbg deliverables 

Controlling project delivery scope , cost qualuty 

Monitoring and controlling feasibility study 

Ensure brief is satisfyy 

Planned solution to solve problem 

Once customer accept final solution , closure 

CLosure 

Winding down project by relasing staff 

Project manager ensure project brought to proper completion 

Handing over the client 

Quality Planning 

Determng the quality standard 

QLASSIS 

Outline specification 

determining roles and responsiblities 

Material testing facilities 

Check List 

Quality Planning 

Determing the quality standard 

Determing the roles and responsibilities 

Outline specification 

QLASSIC 

Material testing facilities 

Check list 

Quality pLanning 

Determining the quality standard 

QLASSIC 

Outline specification 

Material testing facilities 

Check list 

Quality Inspection 

Determine acceptability construction work 

QLASSIC are use to evaluate quality of workman 

QLASSIC as bench mark of quality requirement 

QLASSIC include structural work , architectural work 

Quality audit 

Having project speciication 

Quality audit usually take by experience surveyor  

Quality audit 

Having project specification 

Quality audit usually take by experience surveyor 

Time Managgement ( Priorities ) 

- Something is more urgent and important 

- Something important that need to done first

- Manage priorties 

* Make sure getting right thing done 

Prioritizing ( different between productivty and effectiveness ) 

- Productivity is how much you get done 

- Effectiveness is how valuable stuff you get done 

To be effective 

- Decide task are urgent and important 

- Focus on these 

The important steps 

- List the task ou have 

- Set these in order of priority 

-Devote most time to important task 

Why 

To avoid concretration on simple task 

To avoid too many interruptions to work 

Method of priorities 

ABC method 

Whya am I doing this ? 

How urgent is the task ? 

A must do item 

Include curcial deadlines , opportunities 

B - Should-Do- Item 

Item of medium values which do not have deadlines 

C- Nice to do Items 

* temd of medium values which do not have deadlines 

These items could be eliminate , or postponed , for slower period 

Safety and Health management - Direct cost / Indirect cost 

Direct cost 

* Direct cost of accident paid in form of compensation

 * Compensation payment is usually paid by contractor 

* Cst to contractor is in form of premium paid 

* Poor safety record may attract higher insurance remium 

Direct cost 

* Direct cost of accident is paid in form of compensation 

* Compesation payment usually is paid by contractor 

* Cost to contractor is in form of premium paid 

* Poor safety record may attact a higher insurance premium 

Direct Cost 

Direct cost is usually paid by form of compensation 

Compensation payment usually paid by contractor 

Cost to contractor is form of premium paid 

Poor safety record may cause a higher insurance premium 

Indirect cost 

* Will be a bigger incentive to contractor to keep good safety record 

* Indirect cost can be in following form 

- Stopping work oders in the event of accident , Result delay in work 

- Injured worker cost , lower the productivity 

- Crew cost , lost productivity due disruption 

- Cost of hiring replacement worker 

'- SUpervising cost , assiting injured worker 

- Damage to company image 

- Reduce chance of getting new job 

- Scare of people who want enter industry , worker will appeal for higher salary . 

Indirect cost 

* Will be a bigger incentive to the contractor to keep a good safety record 

* Indirect cost can be followign form 

- Stop working in the event of accident , Result in stop construction activity 

- Supervision cost ,assiting the injured worker 

- Injured worker cost , lower the productivity 

- Worker replacement cost 

- Crew cost , lost productivity due to disruption 

- Damage to company image

- Reduce chances of getting new job 

Indirect cost 

* WIll be a bigger incentive to the contractor to keep good safety record 

* Indirect cst can be in following forms : 

- Stopping works order in the event of accident , delay of construction 

- Superviosn cost , assiting the injured worker 

- Damage to company image 

- Reduce chances getting new jobs 

- Scare people who want enter industry 

Indirect cost 

Will be a bigger incentive to the contrator to keep a good safety record 

* Indirect cost can be following form 

- Stop working in the event of accident , reusult in delay of construction 

- Supervision cost - assiting injured worker 

- Damage to company image 

- Reduce chances of getting new job 

- Cost for replacement of new worker 

-crew cost , lower the productivity due to disruption 

-injured worker cost - lower the productvity 

- Scare people who want enter the industry 

Examination TIps

Project Close out 

• To detail formal acceptance and an orderly process for ending the project and handing it  
• Provide client detail project achieve package include key documents 
• Project manager prepare close out report 
• Involves  , inspection and acceptance of work , certificate of practical completion , sectional completion , defect liability period  , certificate of completion and compliance , project commissioning , post-implementation review . 

Post Completion Review 

• Evaluate prject objective meet 
• TO determine effective of project run 
• TO learn lessons for future 
• TO ensure organization get greteast possible benefit from project 

Post Completion Review 

Evaluate whether project ovjectives met 

To determine how effectively project run 

To learn lessons for future 

To ensure organization get the maximum benefit from project 

{pst Completion review 

- Evaluate whether project objective meet 

- To determine how effective the projecr run 

- TO learn lsson for the future 

- TO ensure the organization get the maximum benefit 

Project Close Out 

- To detail formal acceptance for ending the project and handing it to client 

- Provide client with detail project achieve package  include key documents 

- Project Manager prepare close out report . 

- Involves the following matter  

* Inspection and acceptance of work 

* Certificate of practical completion 

* Defect liability period 

* Partial Completion 

Project Close out 

- To detail formal acceptance for ending the project and handing it 

- Provide client the aproject chieve package including key document . 

- Project Manager prepare project closeout report 

Involves the following matters , inspecton and acceptance of work , Certificate of practical completion , certificate of partial completion , defect liability period , certificate of completion and compliance , project commissioning , post- implemention review . 

Project Close out 

- To detail formal acceptance for ending of projec and handing it . 

- Project Manager prepare closeout report 

- Involves following mateter , Inspection and acceptance of work , defect liability period , certificate of practical completion , sectional completion , certificate of completion and compliance , project commissioning , post implementation review .

- Provide client with detail project archieve package including key documentation 

Post Completion Review 

- Evaluate whether project objectives met 

- to determine how effective project was run 

- To learnt lesson for future 

- TO ensure orgranization get the maximum benefit from project 

  - evaluate wehther project meet the objective 

-  TO determine effectiveness of project run 

- To Leanr lesson for future project 

- TO ensure organization get the maximum benefit from project 

- 

• Asset performance review - Questionnaire , observation , walk-through interview as data collection 
• Technical review - identified good and bad practices 
• Economic review - evaluate whether project met economic services predictions 
• Brief compliance review - explain cause and affect relationship to improve quality of future 
• Delivery process review - Concern project manager , particularly , cost , time , decision-making and communication . 

Project Clos-out 

1. T(O detail formal acceptance  for ending the project and handling it to client 
2. TO detail formal acceptance handling the project to the client 
3. To detail formal acceptance process of ending and handing to the client . 
4. Provide client detail project achieve package include key document 
5. Provide client detail project achieve package include key document 
6. Provide client detail project achieve package include key document 
7. Provide client detail project including key document 
8. To detail formal acceptance for ending of the project and handing it to client 
9. To detail formal acceptannce for ending of project and handing it to client 
10. Provide client with project achieve package including key documentation 
11. Project manager prepare project close out report . 
12. Involves the following matter , defect liability period , certificate of practical completion , certificate of partial completion , Inspection and acceptance of work , certificate of compliance and completion , Project Commisioning , post  implementation review 

involves the following matter : 

Inspection and acceptance of work 

Certificate of practical completion 

Certificate of compliance and completion 

Certificate of partial completion 

Commissioning of project 

Defect liability period 

Post implementation review 

project Close out 

To formal detail of acceptance for ending of project and handing it to client 

To provide a project archive package including documentation key to the client . 

PM will prepare a project close-out report 

Involves the following matter : 

Defect liability period 

Certificate of practical completion 

Certificate of compliance and completion 

Certificate of partial completion 

Inspection and acceptance of work 

Project Commissioning 

Project Implementation-Review 

Project Close out 

To detail a formal acceptance for ending a project and handing it to client 

To provide client the project archive package including key documentation 

PM will prepare the close out report to the client 

Involves the following matter : 

Inspectiona and acceptance of work 

Certificate of practical completion 

Certificate of compliance and completion 

Certificate of partial completion 

Project Commissioning 

Project Implementation-review 

Post Completion Review 

• Evaluate whether project objectives meet 
• To determine how effective the project was run 
• To learnt lesson for future 
• To ensure the organization get the greatest possible benefit fromt he project 

TO evaluate whether the project objective has meet 

TO learn lesson for future 

to ensure the organization get maximum of profit 

To determine how the effective project was run 

post Completion Review 

To evaluate whether the project objectives have meet 

To determine how effective project was run 

To learns lessons for future 

TO ensure the organization get the maximum benefit from project 

Post completion Review 

To evaluate whether project objectives have meet 

TO determine how effective project was run 

To learn lessons for future 

TO ensure organization get the maximum benefit from project 

Asset performance review - questionnaire , observaton, walk-through and interview as data collection 

Technical Review - To identify good and bad practices and examination defects records 

Economic review - to evaluate whehter the project met its economic or services 

Brief compliance review - to explain cause and affect relationship to improve the quality of future decision 

Procurement review - concern of the project manager,cost,time,decision making 

Post completion review 

- To evaluate whether project objective meet 

- To determine how effective the project run 

- 

Risk In construction Project

1. Fundamental Risk - Outbreak of war 
2. Construction Risk - Shortage of resources 
3. Legal risk - Injured to persons 
4. Price determination risk - errors in estimating 
5. Contractual Risk - Delay , late payment 
6. Performance risk - low productivity of labour 
7. Economic Risk - Inflationary pressure 
8. Political risk - change in goverment policies 
9. Commercial risk - market recession 

Awareness of risk 

Example of areas of risk is soil condition , cost , safety& health , time , etc 

Controllable risk 

-Over budget 

- Design Discrepancies 

- Lack of coordination 

- Delay in getting revised drawing 

- Inadequate information from client 

- Defective equipment 

- Shortage of labour 

Uncontrollable risk 

-Unfavorable weather 

- Inflation of material 

- Market recession 

- Unforeseen circumstances 

What is construction risk ?

• Risk is an unwanted negative consequences of an event of which the possible undersirable outcome can be identified , predicted and quantified . 
• Uncertainty is an unkown situation , where its possible outcome cannot be analysed or predicted . E.g. weather uncertainty . 

Legal Risks 

* In jury to persons , damage to properties due to subsidence , vibration and similar events during production . 

What about Construction Risks ? 

The undertaking of construction projects exposes parties to great risks . 

- A partu in the construction business can either . 

.1. Accept and manage thr risks , or 

2. Transfer the risks to someone else ( a contractor , sub-contractor or an insurer ) . 

- However , before anyone decies either to accept or transfer the risks , one must be ware of any identify the risks involved . 

3. Construction - Related Risk 

Shortage of resources , late completion , defectve design , discrepancies found in contract documentation etc . Conssits of delay in posession of site , poor inventory management , poor storage praxtices weather condition , poor quality 

Programme 6p - registration of illegal foregin worer . 

1. Fundamental Physical Risk 

Outbreak of war , hostilities , damage by floods , storm * fire , exceptionally adverse weather / Uncontrollable source of risk . I.e. invlement weather , flood and fire ( Fisk and Reynolds , 2006) /

4. Price Determination Risks . 

- Errors in estimating , erroneous adjudication , incorrect forecasting of fluctuations on cost of resources . 

Risk management +

Risk management
Definition : A system that aims to identifgy and quantify all risks that the business or projects is exposed to , so that a conscious decisions can be taken on how to manage the risks ( Flanagan & Norman . 1993)
* Risk Management is the systematic process of indetufying , analyzing and resp[onding to a project risk .
* Risk can define as either known risks or unknown risks .


What is risk management
- The worst and dangerous risk is one that has no been identified and respone .
* Risk is the chance of something happening that will have an impact upon objectives .
* Risk is measured in terms of likelihood and consequences .

Risk management
Implementation risk
* Planned events do not occur as planned
* External risk , funding issues , political suport , shared tecdhnology , etc
* Internal risk : resources , labour skill ,
sub-contractor's performance , etc .

product risk
* System failure which cause injury .
* Risk of failure : Limited life items , untestable product etc .
* Risk of hazard , radiation , explosives , high voltages , toxins .

Definition :
- Chances of injury , damages , or loss .
- Frosberg and etc , 2000
* A measure of the probability and consequences of not achieving a defined project goal .

Advantage of Risk mangement

1. Reduce risk for architect , client , and contractor 
2. To produce a more manageable and predictable project cost with schedule outcomes . 
3. To centralize the responsiblities . 
4. To allow the construction get started earlier . 
5. To produce a better-quality construction . 

Risk Management ( 4 basic actions involved in risk management : harold Kerzner , 1997) 

• Risk planning - detailed formulation of an action for the risk management 
• Risk Assessment - Identify , analyze and quantify the probability and consequences of risks . 
• Risk handling - Identify who is responsible for the risk involved and provides solution . 
• Risk Monitoring - Monitoring evaluate the effectiveness of risk handling action . 

Time Management and contigency planning

Contingency Planning
- Try to identify contigency events
- Be prepared with plans , strategies and approaches avoiding , coping or even exploiting them

Aim
- To minimise the impact of a foreseable event
- To plan for how the business will resume normal operating after the event

The preparation of contingency plans due to the thing do wrong from time to time .

• Contingency planning involves : 

- Preparing for predictable and quantifiable crises 

- Preparing for unexpected and unwelcome events . 

* Times robbers are anything that steals valuable time away from focused objectives (ＣＤＣ　ｕｎｉｆｉｅｄ　, 2012) 

Numerous time robbers 

* Lack of adequate responsibilities 

* Too many people involved in minor decision - making 

* Lack of project organization 

* Lack of qualified manpower 

* Poor functional status reporting 

* Too many meetings . 

* Misplaced information 

* Dealing with unrealiable subconractor 

* Desire for perfection 

* Lack of communication 

Define : 

* A set of percentage of time budgeted usually ( 5-10%) for unforeseen design shortfalls identified after a construction project commences . 

* Refer to assumptions of additional time given to complete an element . 

Time Robbers can be occur in any stages or places n the construction project . Thus it is important to prevention or avoid of Time Robbers . 

Method to prevent or eliminate 

* Planning work program ( Grantt Chart ) - invented by henry L. Gantt. 

* It shown the task what must be complete , when should it complete ( date of start and finish ) and the duration to complete for each task and identify ciritical path . 

* Alert PM aware of the activities ( critical) . 

Contingency in Time Management 

Purpose & Functions 

* To reduce the risk of overruns at acceptable level 

* To cover the cost of unforeseen factors in construction . 

* Due to unforeseen events or failure that may needed to make good the amendments . 

Productivity 

* Productivity is a measure of how specified resources are managed to accomplish timely objectives as stated in term of quantity and quality . 

* Defined as an index that measures output ( Good and services ) relative to the input ( labour , materials, energy , etc . Used to produce the output ) . 

* Productivity can be explained as getting the most done in the least possible time 

* Effective time management skills , a manager will be able to get more done in less time from himself and from his team for the client improving productivity . 

* PM will look at the project  as a whole in deciding which acitivities are most critical 

* Develop m,ethod for achieving productivity improvement , such as giving reward workers for contribution . 

* Stuying how other firms have increased productitvity , and reexamining the way work is done . 

* Measure for all operations to evaluate performance 

* Allow firms to measure productivity improvement over time , or measure the impact of certain decisions . 

Factor affecting productivity in Time Mangement  

* man-power 

*Materials 

* Machinery

* Other factor 

Productivity 

* factors that affect the productivity 

a) Communication 

- make sure that everyine is on the same page 

b) Building materials delay 

- if materials don't arrive on  time , workers are going to have waited . 

c) Training 

* Make sure that everyone on site is properly trained to do their job 

* Know how to operate all of the equipment 

d) Planning 

* identify possible barriers and figure out ways to fix before project start 

e) Security 

* Expensive stuff and material don't simply lost and missing 

f) Extended Overtime 

* Extending overtime decrease productivity due to workers are tired at the end of the way . 

Man-Power 

- Labour availability 

- Experience possess by Contractors 

- Motivation by project management / contractor / client 

Productivity In Time Management 

Define : 

* Output per labour hour 

* Referred to as Labour Productivity 

* A measure of the overall effectiveness of an operating system in utilizing : 

* LABOUR , MATERIALS AND MACHINERY to convert labour efforts into output  . 

Materials 

• Unmatch materials 
• Shortage of materials 
• Delay transport of materials 
• Poor quality materials 

Time management& Priorities 

* Manage Priorities 

- To make sure you are getting the right thing done 

Prioritizing ( different between productivity effectiveness ) 

* Productivity is how much you get done 

* Effectiveness is how valuable is the stuff you got done 

* To be effective . 

- Decide what tasks are urgent and important 

- Focus on these 

Other Factors Affecting Productivity 

* Climate and Environment Obstruction 

* Job Site Accessibility 

* Size of Project and Complexity 

* Role of Client 

Time management & Priorities 

* The important steps : 

1. List the tasks you have 

2. Sort these in order of priority 

3. Devote most time to the most important tasks 

* Why ? 

- To avoids the natural tendency to concentrate on the simple , easy tasks . 

- To allow too many interruprtions to your work . 

" To manage the priorities , first manage your goals ," 

Priorities

- Something or someone is more urgent or important than other things 

- Something important that must be done first or needs more attention than anything else . 

Method to determine priorities 

- List everthing that need to do 

* Why am I doing this ? " 

* how urgent is the task ? " 

ABC METHOD 

- A - " Must - Do " Items 

* These essential items often include crucial deadlines . opportunities for success or promotion , management directives or customer requests ( Laken Alan , 1973) 

B- " Should - Do: Items 

* These are items of medium value which do not have critical deadlines . These tasks may contribute to improved performance but they usually can be postponed temporarily , if necessary 

Conclusion 

* Basic 3 elements is the main concern of the project 

* Practice makes perfect 

* Well planning of #M ( machinery , manpower , materials ) 

* Fully utilise tools such as CPM method , Microsoft project , primavera 

* Proper communication and coordination among participants can provide an productive environment 

Cost , quality , time 

C- Nice to do items 

* These items could be eliminated , postponed or scheduled for slower periods . 

Time Robbers

Common and effective stragetegies for better time management include :

• Defining and managing to a schedule 
• Classifying activities and planning solid blocks of time to accomplishj important things 
• Establishing priorities 
• Evaluating opportunity cost / lost on all activities 
• Understanding what yoyu are doing 
• Eliminating that which you may not need to be doing at all 
• Delegating activities 
• Decide fast 
• Do the tough part first 

TIME ROBBERS 

- Steal valuable time away from us 

- It can fall anywhere between total control to no control 

TIME ROBBERS - Example 

- Too many levels of review 

- Lack of employee discipline 

- Lack of qualified manpower 

- Indecision or delaying decisions 

- Lack of technical knowledge 

- Lack of responsible 

- Lack of project organization 

- Project monetary problems . 

- Too many meetings 

Key-date Schedules

• Initial schedule to form master programe
• It included the date and the activities 
• Used to review the progress of project . 

Key-date schedules

Keoki Sears , 2008
- In formulating a project time control,
- The detail preparation of schedule can be highly variable with the level of management
- Consequently , different schedules are prepared to meet the parituclar needs of the recipinet.
- Supervisors concerned their responsible area only .

Time robbers
Common and significant time robbers that negatively impact project delivery

• Iterruuptions socializing , or spending too much time answering questions . 
• Waiting on others for answers or approvals to move things forwards . 
• Unnecessary meeting 
• Insufficient communication 
• Equipment failure 
• Changes without direct notification 
• Late appointment 
• Lack fo employee discipline 
• Lack of qualified manpower