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(1454, 1, '2021-06-19 12:24:07', '2021-06-19 06:54:07', '<!-- wp:heading {\"textAlign\":\"center\"} -->\n<h2 class=\"has-text-align-center\"><strong>Introduction</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In the present fast-paced highly industrialized age, many of the products in the market are increasingly being mass-produced in factories by machines. However, a building still remains as one of the few handcrafted products put together piece by piece by skilled and unskilled workers.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The construction industry, to which these workers belong, is one of the most non-automated or labor-intensive industries in the world. The labor cost element of a building construction project may vary from 30 to 50%, and sometimes can be as high as 60% of the total construction cost. Therefore, the labour component is considered a very important area in a construction project.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A building is a very complex product, made up of many different systems, such as the structural system, exterior enclosure system, interior finishes, plumbing, and HVAC system, etc. These systems can be separated into many other subsystems and sub-sub systems. For example, beam concreting can be divided into the formwork, reinforcements, and concreting. Again, reinforcement can be sub-sub divided into cutting, bending, placing in place, etc.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A building construction project can be divided into many work packages. A work package can then be allocated to and accomplished by an individual worker or a crew. A crew can be described as a group of workers. These workers may be from the same trade or may be from a combination of many different trades. Different tasks involved in the construction of a building need many types of craftsmen from various trades.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"textAlign\":\"center\"} -->\n<h2 class=\"has-text-align-center\"><strong><em>Labor’s production rates or Productivity</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A production rate is defined as the number of units of work completed by a worker in a definite time period. Production rates may specify in the form of time in man-hours or man-days necessary to produce a specified number of units of work.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The time that a labor will consume in performing a unit of work varies between labors, between projects, with climatic conditions, job supervision, complexities of the operation, and due to many other factors. For example, it may require more time for erecting a shutter for stairs than for a beam.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes, the production rate is substituted by the term productivity. Productivity is the ratio between input and the respective output.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In construction, the labour input can be expressed as the work hours of a worker or a crew. For example, it may be 4 hours of bricklaying gang.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The output can be stated as the amount of work completed. For instance, it may be expressed as laying 500 bricks or may be expressed in square meters.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Accordingly, construction productivity is defined as the quantity of work produced in a particular time period by a worker or a specific crew. In other words, it is the quantity of construction output units produced in a given amount of time or a unit time.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The formula for productivity is presented as follows;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph {\"align\":\"center\"} -->\n<p class=\"has-text-align-center\"><strong><em>Construction productivity </em></strong><strong><em></em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>quantity of work produced / time duration</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>If a bricklaying crew can lay 560 bricks in 8 hours, then, the related construction productivity is 560 bricks divided by 8 hours, which are 70 bricks per bricklaying crew per hour.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>With compared to most of the other items associated with monetary factors, labour productivity is highly variable. It can fluctuate wildly. For accurate estimation, an estimator or a quantity surveyor must have good historical records of the output of his workers, require a lot of experience, in addition to theoretical knowledge.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>Productivity sources</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Productivity rates can also be determined from already published sources from different institutions, such as Construction Cost Data.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sample norms of some common work items are given below;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:table -->\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Description</strong></td><td><strong>Unit</strong></td><td><strong>Quantity</strong></td><td><strong>Skilled labour (days)</strong></td><td><strong>Unskilled labour (days)</strong></td><td><strong>Cement (50 kg bags)</strong></td><td><strong>Sand (m</strong><strong><sup>3</sup></strong><strong>)</strong></td><td><strong>Metal (20 mm)</strong></td><td><strong>Bricks (nr)</strong></td><td><strong>Small plants (days)</strong></td></tr><tr><td>1:2:4 (20 mm) concrete</td><td>m<sup>3</sup></td><td>1.00</td><td>2.55</td><td>6.20</td><td>7.00</td><td>0.20</td><td>0.97</td><td>-</td><td>0.83</td></tr><tr><td>Brick Work</td><td>m<sup>3</sup></td><td>1.00</td><td>1.10</td><td>1.50</td><td>0.82</td><td>0.40</td><td>-</td><td>540</td><td>-</td></tr><tr><td>Cement plaster</td><td>m<sup>2</sup></td><td>1.00</td><td>0.11</td><td>0.16</td><td>0.15</td><td>0.02</td><td>-</td><td>-</td><td>-</td></tr></tbody></table><figcaption><em>However, the above norms do not provide the crew types associated with a particular work item.</em></figcaption></figure>\n<!-- /wp:table -->\n\n<!-- wp:paragraph -->\n<p>Productivity must be presented in labor hours. Then, the record can be normalized.&nbsp; Therefore, it is not subjected to the variability in project locations and prevailing wage rates. In this way, unit labor costs for the contractor’s own operating area can be easily developed by multiplying local wage rates (which includes all other benefits) by the productivity rate.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> – </em>A contractor determines that the unit productivity for painting a wall is 0.55 hours per square meter. If the wage rate including other benefits is LKR 250 per hour, the unit labour cost become (0.55 hours per square meter x LKR 250 per hour) = LKR 137.50 per square meter.&nbsp;&nbsp;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"textAlign\":\"center\"} -->\n<h2 class=\"has-text-align-center\"><strong><em>Estimating work duration</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Determining the total work duration for an activity or a task involves knowledge of the quantity of work required for the task and the production rate for the specific crew that will be performing the work. The quantity of work related to the material quantity can be determined by the quantity take-off. A better approach to the estimation of activity time duration is to maintain historical records of the particular activity, and rely on the average duration from the experience in making new duration estimates. Since the scope of activities is unlikely to be identical between different projects, unit production rates are typically employed for this purpose.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The duration of an activity may be estimated as shown below.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Work duration </em></strong><strong><em></em></strong><strong><em> </em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>quantity of work / number of crews × production rate</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>Find the duration of interior and exterior painting activities with quantities of 550 m<sup>2</sup> &amp; 406 m<sup>2</sup> respectively, using crews of 11 m<sup>2 </sup>/ hours &amp; 14 m<sup>2 </sup>/ hours for the interior &amp; exterior painting activities respectively.&nbsp; (Assume the same crew is used for both works).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><strong><em> </em></strong>Interior painting duration = 550 / 11 = 50 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Exterior painting duration = 406 / 14 = 29 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Total work hours = 79 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Usually, the quantity of work to be completed can be determined from the architectural drawings of the project. The number of crews working is decided by the planner/estimator or the quantity surveyor depending on resources available as well as the work programme.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In many cases, the number or amount of resources applied to particular activity may be modified after considering the resulting project plan and work schedule. Historical records in the particular construction organization can also provide data for the estimation of productivities.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Having defined the duration of a given work means that the planner/estimator or the quantity surveyor has already defined the number of resources that will be employed in a particular work. After knowing the activity time duration and resources to be employed, it is easy to estimate the direct cost of the activity. Then, the three elements of an activity, the time duration, type of resources, and cost of procuring resources for the activity form the construction method.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>The Basic principle for estimating labor costs</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Labor costs in construction are determined by two factors: <strong><em>monetary &amp;</em></strong> <strong><em>productivity</em></strong>. The monetary factor is related to hourly wage rates plus other benefits. Estimating the constituents of the monetary factor is more difficult in construction than in other industries. This is due to the different types of work and skills involved in construction. Although the computational process of this component seems complex &amp; tedious, it is only a matter of accounting as the needed numbers (such as wage rates, fringe benefits, etc.) are readily available.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The method for calculating the total cost of labor is relatively simple. It requires the knowledge of the total work hours or labor hours needed to perform all the tasks &amp; then applying the corresponding wage rates.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The formula for calculating the total cost of labor is as follows:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Total cost of labor </em></strong><strong><em></em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>total work hour × wage rate </em></strong><strong>&nbsp;</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> – </em>A welder works 10 hrs/day, 6 days/week. A basic salary of LKR 350 / hr is paid for all straight-time work, 8 hrs/day, 5 days/week. An overtime rate of one time &amp; one-half is paid for all hours over 8 hrs/day, Monday through Friday, &amp; double time is paid for all Saturday work. The meal allowance is LKR 200 per day. Calculate the average hourly cost to employ the welder.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution</em></strong><em>:</em><em> </em><em></em>Actual hours = 10 × 6 = 60 hrs&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Pay hours = weekly straight time + weekly overtime + Saturday overtime&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= (8 x 5 × 1) + (2 x 1.5 x 5) + (10 × 2)&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= 75 hr&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Average hourly pay = (75/60) × LKR 350 = LKR 437.50 / hr&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Meal allowance &nbsp; &nbsp; &nbsp; = (LKR 200 x 6) / 60 = LKR 20 / hr</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Then, the average hourly cost = LKR (437.50 + 20) / hr</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= LKR 457.50 / hr&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>Assume that a crew for a work item includes three bricklayers (masons) &amp; two helpers. The crew works for three days (8 hrs/day) to complete the work package. The wage rate for each bricklayer is LKR 337.50 / hr &amp; each helper is LKR 260.00 / hr. Find the total cost of the crew for the work item.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Total cost = (3 <em>× </em>3 <em>× </em>8 <em>× 337.50</em>) + (2 <em>× </em>3 <em>× </em>8 <em>× 260.00</em>)&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= LKR 36,780&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes, the productivity of a specific work crew is stated in man-hours/unit, and not in units/day.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For example, if the productivity is said to be 0.5 Man-hours/cubic meters, this means how long it will take one labor to construct one unit. This way applied to any crew formation and work hours.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>More Examples</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example - </em></strong>If the daily production rate for a crew that works in an activity is 175 units/day and the total crew cost per day is LKR 18,000.00. The material needed for daily work is 4.5 units at LKR 10,000.00 /unit.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>a. Calculate the time and cost it takes the crew to finish 1400 units.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>b. Calculate the total unit cost.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(<em>Consider an eight hour work day).</em>&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>a)</em><em> </em><em>Duration</em><em> </em><em></em><em>=</em><em> </em><em>Quantity / (production per unit time x number of crews)&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>1400 / (175 x 1)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>=</em><em> </em><em>8 days</em><em>&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em>Cost (labour cost)</em><em> </em><em>=</em><em> </em><em>Duration (units of time) x Crew cost per unit of time&nbsp;&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>8 days x LKR 18,000 per day</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>=</em><em> </em><em>LKR 144,000</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Total direct cost </em><em></em><em>=</em><em> </em><em>LKR 144,000 + (4.5 units of material x LKR 10,000 per day x</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>8 days)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>LKR (144,000 + 360,000)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>LKR 504,000</em><em>&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>b)</em><em> </em><em>Unit cost </em><em></em><em> </em><em>= </em><em></em><em>total cost / quantity&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>= </em><em></em><em>LKR 504,000.00 / 1400&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>= </em><em></em><em>LKR 360.00 / unit&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes the productivity of a specific crew expressed in man-hours per unit, not in units per day. For example, if the productivity is said to be 0.5 Man-hour/cubic meters, this means how long it will take one labor to construct one unit. This way, it can be applied to any crew formation and work hours.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example - </em></strong>What is the duration in days to install 600 square meters of walls shuttering if:&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>a) Crew of 2 carpenters is used with output of 200 square meters/day.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>b) Productivity is measured as 0.08 man-hour/square meter. Number of carpenters = 3, and number of working hours/day = 8 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>a)</em> <em>Duration </em><em></em><em> </em><em></em><em>= </em><em></em><em>600 / 200 </em><em></em><em>= </em><em>3 days&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>b)</em><em> </em><em>Total man-hours needed </em><em></em><em>= </em><em></em><em>600 × 0.08 </em><em></em><em>= 48 man-hours&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>(if one man used)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>&nbsp;</em><em> </em><em></em><em>Duration </em><em></em><em> </em><em></em><em>= </em><em></em><em>48 / 8 </em><em></em><em> </em><em>= 6 days (if one man used)&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em>Duration using 3 men </em><em></em><em> </em><em>= </em><em></em><em>6 / 3 </em><em></em><em> </em><em>= </em><em>2 days&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Example - </strong>(use of several resources)&nbsp; - What is the duration of an excavation activity with a quantity of 3000 m<sup>3</sup> using an excavation crew consists of an excavator with a production rate of 200 m<sup>3</sup>/day, a loader of 250 m<sup>3</sup>/day and 3-trucks of 150 m<sup>3</sup>/day? Comment on this crew formation.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- Using the excavator: Duration = 3000 / 200 = 15 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- using the loader: Duration = 3000 / 250 = 12 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- using the 3-trucks: Duration = 3000 / 150 = 20 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The activity duration is governed by the lowest production rate = 20 days.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>This is an unbalanced crew where the loader is not working with full capacity; the production rate of this crew could be adjusted by increasing the number of trucks to 4 of 5 trucks.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Then, for a balanced mix of resources, use 1 loader, 1 excavator and 4-trucks.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Accordingly, the activity duration = 3000 / 200 = </em><em>15 days</em><em>.&nbsp;</em></p>\n<!-- /wp:paragraph -->', 'Labor productivity - Unit rate analysis', 'The construction industry, to which these workers belong, is one of the most non-automated or labor-intensive industries in the world. 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(1452, 1, '2021-06-19 12:22:47', '2021-06-19 06:52:47', '<!-- wp:heading -->\n<h2><strong>Introduction</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In the present fast-paced highly industrialized age, many of the products in the market are increasingly being mass-produced in factories by machines. However, a building still remains as one of the few handcrafted products put together piece by piece by skilled and unskilled workers.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The construction industry, to which these workers belong, is one of the most non-automated or labor-intensive industries in the world. The labor cost element of a building construction project may vary from 30 to 50%, and sometimes can be as high as 60% of the total construction cost. Therefore, the labour component is considered a very important area in a construction project.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A building is a very complex product, made up of many different systems, such as the structural system, exterior enclosure system, interior finishes, plumbing, and HVAC system, etc. These systems can be separated into many other subsystems and sub-sub systems. For example, beam concreting can be divided into the formwork, reinforcements, and concreting. Again, reinforcement can be sub-sub divided into cutting, bending, placing in place, etc.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A building construction project can be divided into many work packages. A work package can then be allocated to and accomplished by an individual worker or a crew. A crew can be described as a group of workers. These workers may be from the same trade or may be from a combination of many different trades. Different tasks involved in the construction of a building need many types of craftsmen from various trades.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>Labor’s production rates or Productivity</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A production rate is defined as the number of units of work completed by a worker in a definite time period. Production rates may specify in the form of time in man-hours or man-days necessary to produce a specified number of units of work.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The time that a labor will consume in performing a unit of work varies between labors, between projects, with climatic conditions, job supervision, complexities of the operation, and due to many other factors. For example, it may require more time for erecting a shutter for stairs than for a beam.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes, the production rate is substituted by the term productivity. Productivity is the ratio between input and the respective output.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In construction, the labour input can be expressed as the work hours of a worker or a crew. For example, it may be 4 hours of bricklaying gang.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The output can be stated as the amount of work completed. For instance, it may be expressed as laying 500 bricks or may be expressed in square meters.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Accordingly, construction productivity is defined as the quantity of work produced in a particular time period by a worker or a specific crew. In other words, it is the quantity of construction output units produced in a given amount of time or a unit time.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The formula for productivity is presented as follows;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Construction productivity </em></strong><strong><em></em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>quantity of work produced / time duration</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>If a bricklaying crew can lay 560 bricks in 8 hours, then, the related construction productivity is 560 bricks divided by 8 hours, which are 70 bricks per bricklaying crew per hour.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>With compared to most of the other items associated with monetary factors, labour productivity is highly variable. It can fluctuate wildly. For accurate estimation, an estimator or a quantity surveyor must have good historical records of the output of his workers, require a lot of experience, in addition to theoretical knowledge.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>Productivity sources</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Productivity rates can also be determined from already published sources from different institutions, such as Construction Cost Data.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sample norms of some common work items are given below;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:table -->\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Description</strong></td><td><strong>Unit</strong></td><td><strong>Quantity</strong></td><td><strong>Skilled labour (days)</strong></td><td><strong>Unskilled labour (days)</strong></td><td><strong>Cement (50 kg bags)</strong></td><td><strong>Sand (m</strong><strong><sup>3</sup></strong><strong>)</strong></td><td><strong>Metal (20 mm)</strong></td><td><strong>Bricks (nr)</strong></td><td><strong>Small plants (days)</strong></td></tr><tr><td>1:2:4 (20 mm) concrete</td><td>m<sup>3</sup></td><td>1.00</td><td>2.55</td><td>6.20</td><td>7.00</td><td>0.20</td><td>0.97</td><td>-</td><td>0.83</td></tr><tr><td>Brick Work</td><td>m<sup>3</sup></td><td>1.00</td><td>1.10</td><td>1.50</td><td>0.82</td><td>0.40</td><td>-</td><td>540</td><td>-</td></tr><tr><td>Cement plaster</td><td>m<sup>2</sup></td><td>1.00</td><td>0.11</td><td>0.16</td><td>0.15</td><td>0.02</td><td>-</td><td>-</td><td>-</td></tr></tbody></table><figcaption><em>However, the above norms do not provide the crew types associated with a particular work item.</em></figcaption></figure>\n<!-- /wp:table -->\n\n<!-- wp:paragraph -->\n<p>Productivity must be presented in labor hours. Then, the record can be normalized.&nbsp; Therefore, it is not subjected to the variability in project locations and prevailing wage rates. In this way, unit labor costs for the contractor’s own operating area can be easily developed by multiplying local wage rates (which includes all other benefits) by the productivity rate.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> – </em>A contractor determines that the unit productivity for painting a wall is 0.55 hours per square meter. If the wage rate including other benefits is LKR 250 per hour, the unit labour cost become (0.55 hours per square meter x LKR 250 per hour) = LKR 137.50 per square meter.&nbsp;&nbsp;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"textAlign\":\"center\"} -->\n<h2 class=\"has-text-align-center\"><strong><em>Estimating work duration</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Determining the total work duration for an activity or a task involves knowledge of the quantity of work required for the task and the production rate for the specific crew that will be performing the work. The quantity of work related to the material quantity can be determined by the quantity take-off. A better approach to the estimation of activity time duration is to maintain historical records of the particular activity, and rely on the average duration from the experience in making new duration estimates. Since the scope of activities is unlikely to be identical between different projects, unit production rates are typically employed for this purpose.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The duration of an activity may be estimated as shown below.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Work duration </em></strong><strong><em></em></strong><strong><em> </em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>quantity of work / number of crews × production rate</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>Find the duration of interior and exterior painting activities with quantities of 550 m<sup>2</sup> &amp; 406 m<sup>2</sup> respectively, using crews of 11 m<sup>2 </sup>/ hours &amp; 14 m<sup>2 </sup>/ hours for the interior &amp; exterior painting activities respectively.&nbsp; (Assume the same crew is used for both works).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><strong><em> </em></strong>Interior painting duration = 550 / 11 = 50 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Exterior painting duration = 406 / 14 = 29 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Total work hours = 79 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Usually, the quantity of work to be completed can be determined from the architectural drawings of the project. The number of crews working is decided by the planner/estimator or the quantity surveyor depending on resources available as well as the work programme.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In many cases, the number or amount of resources applied to particular activity may be modified after considering the resulting project plan and work schedule. Historical records in the particular construction organization can also provide data for the estimation of productivities.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Having defined the duration of a given work means that the planner/estimator or the quantity surveyor has already defined the number of resources that will be employed in a particular work. After knowing the activity time duration and resources to be employed, it is easy to estimate the direct cost of the activity. Then, the three elements of an activity, the time duration, type of resources, and cost of procuring resources for the activity form the construction method.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>The Basic principle for estimating labor costs</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Labor costs in construction are determined by two factors: <strong><em>monetary &amp;</em></strong> <strong><em>productivity</em></strong>. The monetary factor is related to hourly wage rates plus other benefits. Estimating the constituents of the monetary factor is more difficult in construction than in other industries. This is due to the different types of work and skills involved in construction. Although the computational process of this component seems complex &amp; tedious, it is only a matter of accounting as the needed numbers (such as wage rates, fringe benefits, etc.) are readily available.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The method for calculating the total cost of labor is relatively simple. It requires the knowledge of the total work hours or labor hours needed to perform all the tasks &amp; then applying the corresponding wage rates.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The formula for calculating the total cost of labor is as follows:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Total cost of labor </em></strong><strong><em></em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>total work hour × wage rate </em></strong><strong>&nbsp;</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> – </em>A welder works 10 hrs/day, 6 days/week. A basic salary of LKR 350 / hr is paid for all straight-time work, 8 hrs/day, 5 days/week. An overtime rate of one time &amp; one-half is paid for all hours over 8 hrs/day, Monday through Friday, &amp; double time is paid for all Saturday work. The meal allowance is LKR 200 per day. Calculate the average hourly cost to employ the welder.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution</em></strong><em>:</em><em> </em><em></em>Actual hours = 10 × 6 = 60 hrs&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Pay hours = weekly straight time + weekly overtime + Saturday overtime&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= (8 x 5 × 1) + (2 x 1.5 x 5) + (10 × 2)&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= 75 hr&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Average hourly pay = (75/60) × LKR 350 = LKR 437.50 / hr&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Meal allowance &nbsp; &nbsp; &nbsp; = (LKR 200 x 6) / 60 = LKR 20 / hr</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Then, the average hourly cost = LKR (437.50 + 20) / hr</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= LKR 457.50 / hr&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>Assume that a crew for a work item includes three bricklayers (masons) &amp; two helpers. The crew works for three days (8 hrs/day) to complete the work package. The wage rate for each bricklayer is LKR 337.50 / hr &amp; each helper is LKR 260.00 / hr. Find the total cost of the crew for the work item.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Total cost = (3 <em>× </em>3 <em>× </em>8 <em>× 337.50</em>) + (2 <em>× </em>3 <em>× </em>8 <em>× 260.00</em>)&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= LKR 36,780&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes, the productivity of a specific work crew is stated in man-hours/unit, and not in units/day.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For example, if the productivity is said to be 0.5 Man-hours/cubic meters, this means how long it will take one labor to construct one unit. This way applied to any crew formation and work hours.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>More Examples</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example - </em></strong>If the daily production rate for a crew that works in an activity is 175 units/day and the total crew cost per day is LKR 18,000.00. The material needed for daily work is 4.5 units at LKR 10,000.00 /unit.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>a. Calculate the time and cost it takes the crew to finish 1400 units.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>b. Calculate the total unit cost.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(<em>Consider an eight hour work day).</em>&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>a)</em><em> </em><em>Duration</em><em> </em><em></em><em>=</em><em> </em><em>Quantity / (production per unit time x number of crews)&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>1400 / (175 x 1)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>=</em><em> </em><em>8 days</em><em>&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em>Cost (labour cost)</em><em> </em><em>=</em><em> </em><em>Duration (units of time) x Crew cost per unit of time&nbsp;&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>8 days x LKR 18,000 per day</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>=</em><em> </em><em>LKR 144,000</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Total direct cost </em><em></em><em>=</em><em> </em><em>LKR 144,000 + (4.5 units of material x LKR 10,000 per day x</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>8 days)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>LKR (144,000 + 360,000)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>LKR 504,000</em><em>&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>b)</em><em> </em><em>Unit cost </em><em></em><em> </em><em>= </em><em></em><em>total cost / quantity&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>= </em><em></em><em>LKR 504,000.00 / 1400&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>= </em><em></em><em>LKR 360.00 / unit&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes the productivity of a specific crew expressed in man-hours per unit, not in units per day. For example, if the productivity is said to be 0.5 Man-hour/cubic meters, this means how long it will take one labor to construct one unit. This way, it can be applied to any crew formation and work hours.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example - </em></strong>What is the duration in days to install 600 square meters of walls shuttering if:&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>a) Crew of 2 carpenters is used with output of 200 square meters/day.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>b) Productivity is measured as 0.08 man-hour/square meter. Number of carpenters = 3, and number of working hours/day = 8 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>a)</em> <em>Duration </em><em></em><em> </em><em></em><em>= </em><em></em><em>600 / 200 </em><em></em><em>= </em><em>3 days&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>b)</em><em> </em><em>Total man-hours needed </em><em></em><em>= </em><em></em><em>600 × 0.08 </em><em></em><em>= 48 man-hours&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>(if one man used)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>&nbsp;</em><em> </em><em></em><em>Duration </em><em></em><em> </em><em></em><em>= </em><em></em><em>48 / 8 </em><em></em><em> </em><em>= 6 days (if one man used)&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em>Duration using 3 men </em><em></em><em> </em><em>= </em><em></em><em>6 / 3 </em><em></em><em> </em><em>= </em><em>2 days&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Example - </strong>(use of several resources)&nbsp; - What is the duration of an excavation activity with a quantity of 3000 m<sup>3</sup> using an excavation crew consists of an excavator with a production rate of 200 m<sup>3</sup>/day, a loader of 250 m<sup>3</sup>/day and 3-trucks of 150 m<sup>3</sup>/day? Comment on this crew formation.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- Using the excavator: Duration = 3000 / 200 = 15 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- using the loader: Duration = 3000 / 250 = 12 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- using the 3-trucks: Duration = 3000 / 150 = 20 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The activity duration is governed by the lowest production rate = 20 days.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>This is an unbalanced crew where the loader is not working with full capacity; the production rate of this crew could be adjusted by increasing the number of trucks to 4 of 5 trucks.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Then, for a balanced mix of resources, use 1 loader, 1 excavator and 4-trucks.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Accordingly, the activity duration = 3000 / 200 = </em><em>15 days</em><em>.&nbsp;</em></p>\n<!-- /wp:paragraph -->', 'Labor productivity - Unit rate analysis', 'The construction industry, to which these workers belong, is one of the most non-automated or labor-intensive industries in the world. 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(1447, 1, '2021-06-19 11:13:41', '2021-06-19 05:43:41', '<!-- wp:heading -->\n<h2><strong>Introduction</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In the present fast-paced highly industrialized age, many of the products in the market are increasingly being mass-produced in factories by machines. However, a building still remains as one of the few handcrafted products put together piece by piece by skilled and unskilled workers.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The construction industry, to which these workers belong, is one of the most non-automated or labor-intensive industries in the world. The labor cost element of a building construction project may vary from 30 to 50%, and sometimes can be as high as 60% of the total construction cost. Therefore, the labour component is considered a very important area in a construction project.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A building is a very complex product, made up of many different systems, such as the structural system, exterior enclosure system, interior finishes, plumbing, and HVAC system, etc. These systems can be separated into many other subsystems and sub-sub systems. For example, beam concreting can be divided into the formwork, reinforcements, and concreting. Again, reinforcement can be sub-sub divided into cutting, bending, placing in place, etc.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A building construction project can be divided into many work packages. A work package can then be allocated to and accomplished by an individual worker or a crew. A crew can be described as a group of workers. These workers may be from the same trade or may be from a combination of many different trades. Different tasks involved in the construction of a building need many types of craftsmen from various trades. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>Labor’s production rates or Productivity</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A production rate is defined as the number of units of work completed by a worker in a definite time period. Production rates may specify in the form of time in man-hours or man-days necessary to produce a specified number of units of work.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The time that a labor will consume in performing a unit of work varies between labors, between projects, with climatic conditions, job supervision, complexities of the operation, and due to many other factors. For example, it may require more time for erecting a shutter for stairs than for a beam.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes, the production rate is substituted by the term productivity. Productivity is the ratio between input and the respective output.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In construction, the labour input can be expressed as the work hours of a worker or a crew. For example, it may be 4 hours of bricklaying gang.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The output can be stated as the amount of work completed. For instance, it may be expressed as laying 500 bricks or may be expressed in square meters.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Accordingly, construction productivity is defined as the quantity of work produced in a particular time period by a worker or a specific crew. In other words, it is the quantity of construction output units produced in a given amount of time or a unit time.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The formula for productivity is presented as follows;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Construction productivity </em></strong><strong><em></em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>quantity of work produced / time duration</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>If a bricklaying crew can lay 560 bricks in 8 hours, then, the related construction productivity is 560 bricks divided by 8 hours, which are 70 bricks per bricklaying crew per hour.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>With compared to most of the other items associated with monetary factors, labour productivity is highly variable. It can fluctuate wildly. For accurate estimation, an estimator or a quantity surveyor must have good historical records of the output of his workers, require a lot of experience, in addition to theoretical knowledge.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>Productivity sources</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Productivity rates can also be determined from already published sources from different institutions, such as Construction Cost Data.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sample norms of some common work items are given below;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:table -->\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Description</strong></td><td><strong>Unit</strong></td><td><strong>Quantity</strong></td><td><strong>Skilled labour (days)</strong></td><td><strong>Unskilled labour (days)</strong></td><td><strong>Cement (50 kg bags)</strong></td><td><strong>Sand (m</strong><strong><sup>3</sup></strong><strong>)</strong></td><td><strong>Metal (20 mm)</strong></td><td><strong>Bricks (nr)</strong></td><td><strong>Small plants (days)</strong></td></tr><tr><td>1:2:4 (20 mm) concrete</td><td>m<sup>3</sup></td><td>1.00</td><td>2.55</td><td>6.20</td><td>7.00</td><td>0.20</td><td>0.97</td><td>-</td><td>0.83</td></tr><tr><td>Brick Work</td><td>m<sup>3</sup></td><td>1.00</td><td>1.10</td><td>1.50</td><td>0.82</td><td>0.40</td><td>-</td><td>540</td><td>-</td></tr><tr><td>Cement plaster</td><td>m<sup>2</sup></td><td>1.00</td><td>0.11</td><td>0.16</td><td>0.15</td><td>0.02</td><td>-</td><td>-</td><td>-</td></tr></tbody></table><figcaption><em>However, the above norms do not provide the crew types associated with a particular work item.</em></figcaption></figure>\n<!-- /wp:table -->\n\n<!-- wp:paragraph -->\n<p>Productivity must be presented in labor hours. Then, the record can be normalized.&nbsp; Therefore, it is not subjected to the variability in project locations and prevailing wage rates. In this way, unit labor costs for the contractor’s own operating area can be easily developed by multiplying local wage rates (which includes all other benefits) by the productivity rate.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> – </em>A contractor determines that the unit productivity for painting a wall is 0.55 hours per square meter. If the wage rate including other benefits is LKR 250 per hour, the unit labour cost become (0.55 hours per square meter x LKR 250 per hour) = LKR 137.50 per square meter.&nbsp;&nbsp;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>Estimating work duration</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Determining the total work duration for an activity or a task involves knowledge of the quantity of work required for the task and the production rate for the specific crew that will be performing the work. The quantity of work related to the material quantity can be determined by the quantity take-off. A better approach to the estimation of activity time duration is to maintain historical records of the particular activity, and rely on the average duration from the experience in making new duration estimates. Since the scope of activities is unlikely to be identical between different projects, unit production rates are typically employed for this purpose.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The duration of an activity may be estimated as shown below.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Work duration </em></strong><strong><em></em></strong><strong><em> </em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>quantity of work / number of crews × production rate</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>Find the duration of interior and exterior painting activities with quantities of 550 m<sup>2</sup> &amp; 406 m<sup>2</sup> respectively, using crews of 11 m<sup>2 </sup>/ hours &amp; 14 m<sup>2 </sup>/ hours for the interior &amp; exterior painting activities respectively.&nbsp; (Assume the same crew is used for both works).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><strong><em> </em></strong>Interior painting duration = 550 / 11 = 50 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Exterior painting duration = 406 / 14 = 29 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Total work hours = 79 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Usually, the quantity of work to be completed can be determined from the architectural drawings of the project. The number of crews working is decided by the planner/estimator or the quantity surveyor depending on resources available as well as the work programme.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In many cases, the number or amount of resources applied to particular activity may be modified after considering the resulting project plan and work schedule. Historical records in the particular construction organization can also provide data for the estimation of productivities.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Having defined the duration of a given work means that the planner/estimator or the quantity surveyor has already defined the number of resources that will be employed in a particular work. After knowing the activity time duration and resources to be employed, it is easy to estimate the direct cost of the activity. Then, the three elements of an activity, the time duration, type of resources, and cost of procuring resources for the activity form the construction method.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>The Basic principle for estimating labor costs</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Labor costs in construction are determined by two factors: <strong><em>monetary &amp;</em></strong> <strong><em>productivity</em></strong>. The monetary factor is related to hourly wage rates plus other benefits. Estimating the constituents of the monetary factor is more difficult in construction than in other industries. This is due to the different types of work and skills involved in construction. Although the computational process of this component seems complex &amp; tedious, it is only a matter of accounting as the needed numbers (such as wage rates, fringe benefits, etc.) are readily available.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The method for calculating the total cost of labor is relatively simple. It requires the knowledge of the total work hours or labor hours needed to perform all the tasks &amp; then applying the corresponding wage rates.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The formula for calculating the total cost of labor is as follows:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Total cost of labor </em></strong><strong><em></em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>total work hour × wage rate </em></strong><strong>&nbsp;</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> – </em>A welder works 10 hrs/day, 6 days/week. A basic salary of LKR 350 / hr is paid for all straight-time work, 8 hrs/day, 5 days/week. An overtime rate of one time &amp; one-half is paid for all hours over 8 hrs/day, Monday through Friday, &amp; double time is paid for all Saturday work. The meal allowance is LKR 200 per day. Calculate the average hourly cost to employ the welder.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution</em></strong><em>:</em><em> </em><em></em>Actual hours = 10 × 6 = 60 hrs&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Pay hours = weekly straight time + weekly overtime + Saturday overtime </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= (8 x 5 × 1) + (2 x 1.5 x 5) + (10 × 2) </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= 75 hr </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Average hourly pay = (75/60) × LKR 350 = LKR 437.50 / hr&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Meal allowance &nbsp; &nbsp; &nbsp; = (LKR 200 x 6) / 60 = LKR 20 / hr</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Then, the average hourly cost = LKR (437.50 + 20) / hr</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= LKR 457.50 / hr&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>Assume that a crew for a work item includes three bricklayers (masons) &amp; two helpers. The crew works for three days (8 hrs/day) to complete the work package. The wage rate for each bricklayer is LKR 337.50 / hr &amp; each helper is LKR 260.00 / hr. Find the total cost of the crew for the work item.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Total cost = (3 <em>× </em>3 <em>× </em>8 <em>× 337.50</em>) + (2 <em>× </em>3 <em>× </em>8 <em>× 260.00</em>)&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= LKR 36,780&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes, the productivity of a specific work crew is stated in man-hours/unit, and not in units/day.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For example, if the productivity is said to be 0.5 Man-hours/cubic meters, this means how long it will take one labor to construct one unit. This way applied to any crew formation and work hours.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>More Examples</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example - </em></strong>If the daily production rate for a crew that works in an activity is 175 units/day and the total crew cost per day is LKR 18,000.00. The material needed for daily work is 4.5 units at LKR 10,000.00 /unit.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>a. Calculate the time and cost it takes the crew to finish 1400 units.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>b. Calculate the total unit cost.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(<em>Consider an eight hour work day).</em>&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>a)</em><em> </em><em>Duration</em><em> </em><em></em><em>=</em><em> </em><em>Quantity / (production per unit time x number of crews)&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>1400 / (175 x 1)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>=</em><em> </em><em>8 days</em><em>&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em>Cost (labour cost)</em><em> </em><em>=</em><em> </em><em>Duration (units of time) x Crew cost per unit of time&nbsp;&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>8 days x LKR 18,000 per day</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>=</em><em> </em><em>LKR 144,000</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Total direct cost </em><em></em><em>=</em><em> </em><em>LKR 144,000 + (4.5 units of material x LKR 10,000 per day x</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>8 days)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>LKR (144,000 + 360,000)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>LKR 504,000</em><em>&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>b)</em><em> </em><em>Unit cost </em><em></em><em> </em><em>= </em><em></em><em>total cost / quantity&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>= </em><em></em><em>LKR 504,000.00 / 1400&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>= </em><em></em><em>LKR 360.00 / unit&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes the productivity of a specific crew expressed in man-hours per unit, not in units per day. For example, if the productivity is said to be 0.5 Man-hour/cubic meters, this means how long it will take one labor to construct one unit. This way, it can be applied to any crew formation and work hours.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example - </em></strong>What is the duration in days to install 600 square meters of walls shuttering if:&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>a) Crew of 2 carpenters is used with output of 200 square meters/day.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>b) Productivity is measured as 0.08 man-hour/square meter. Number of carpenters = 3, and number of working hours/day = 8 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>a)</em> <em>Duration </em><em></em><em> </em><em></em><em>= </em><em></em><em>600 / 200 </em><em></em><em>= </em><em>3 days&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>b)</em><em> </em><em>Total man-hours needed </em><em></em><em>= </em><em></em><em>600 × 0.08 </em><em></em><em>= 48 man-hours&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>(if one man used)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>&nbsp;</em><em> </em><em></em><em>Duration </em><em></em><em> </em><em></em><em>= </em><em></em><em>48 / 8 </em><em></em><em> </em><em>= 6 days (if one man used)&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em>Duration using 3 men </em><em></em><em> </em><em>= </em><em></em><em>6 / 3 </em><em></em><em> </em><em>= </em><em>2 days&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Example - </strong>(use of several resources)&nbsp; - What is the duration of an excavation activity with a quantity of 3000 m<sup>3</sup> using an excavation crew consists of an excavator with a production rate of 200 m<sup>3</sup>/day, a loader of 250 m<sup>3</sup>/day and 3-trucks of 150 m<sup>3</sup>/day? Comment on this crew formation.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- Using the excavator: Duration = 3000 / 200 = 15 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- using the loader: Duration = 3000 / 250 = 12 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- using the 3-trucks: Duration = 3000 / 150 = 20 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The activity duration is governed by the lowest production rate = 20 days.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>This is an unbalanced crew where the loader is not working with full capacity; the production rate of this crew could be adjusted by increasing the number of trucks to 4 of 5 trucks.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Then, for a balanced mix of resources, use 1 loader, 1 excavator and 4-trucks.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Accordingly, the activity duration = 3000 / 200 = </em><em>15 days</em><em>.&nbsp;</em></p>\n<!-- /wp:paragraph -->', 'Construction Labor', '', 'inherit', 'closed', 'closed', '', '1440-revision-v1', '', '', '2021-06-19 11:13:41', '2021-06-19 05:43:41', '', 1440, 'https://civilengineeringlectures.com/?p=1447', 0, 'revision', '', 0);
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(1446, 1, '2021-06-19 11:11:19', '2021-06-19 05:41:19', '<h1>Construction Labor</h1>\n\n<!-- wp:heading -->\n<h2><strong>Introduction</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In the present fast-paced highly industrialized age, many of the products in the market are increasingly being mass-produced in factories by machines. However, a building still remains as one of the few handcrafted products put together piece by piece by skilled and unskilled workers.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The construction industry, to which these workers belong, is one of the most non-automated or labor-intensive industries in the world. The labor cost element of a building construction project may vary from 30 to 50%, and sometimes can be as high as 60% of the total construction cost. Therefore, the labour component is considered a very important area in a construction project.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A building is a very complex product, made up of many different systems, such as the structural system, exterior enclosure system, interior finishes, plumbing, and HVAC system, etc. These systems can be separated into many other subsystems and sub-sub systems. For example, beam concreting can be divided into the formwork, reinforcements, and concreting. Again, reinforcement can be sub-sub divided into cutting, bending, placing in place, etc.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A building construction project can be divided into many work packages. A work package can then be allocated to and accomplished by an individual worker or a crew. A crew can be described as a group of workers. These workers may be from the same trade or may be from a combination of many different trades. Different tasks involved in the construction of a building need many types of craftsmen from various trades. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>Labor’s production rates or Productivity</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A production rate is defined as the number of units of work completed by a worker in a definite time period. Production rates may specify in the form of time in man-hours or man-days necessary to produce a specified number of units of work.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The time that a labor will consume in performing a unit of work varies between labors, between projects, with climatic conditions, job supervision, complexities of the operation, and due to many other factors. For example, it may require more time for erecting a shutter for stairs than for a beam.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes, the production rate is substituted by the term productivity. Productivity is the ratio between input and the respective output.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In construction, the labour input can be expressed as the work hours of a worker or a crew. For example, it may be 4 hours of bricklaying gang.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The output can be stated as the amount of work completed. For instance, it may be expressed as laying 500 bricks or may be expressed in square meters.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Accordingly, construction productivity is defined as the quantity of work produced in a particular time period by a worker or a specific crew. In other words, it is the quantity of construction output units produced in a given amount of time or a unit time.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The formula for productivity is presented as follows;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Construction productivity </em></strong><strong><em></em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>quantity of work produced / time duration</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>If a bricklaying crew can lay 560 bricks in 8 hours, then, the related construction productivity is 560 bricks divided by 8 hours, which are 70 bricks per bricklaying crew per hour.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>With compared to most of the other items associated with monetary factors, labour productivity is highly variable. It can fluctuate wildly. For accurate estimation, an estimator or a quantity surveyor must have good historical records of the output of his workers, require a lot of experience, in addition to theoretical knowledge.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>Productivity sources</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Productivity rates can also be determined from already published sources from different institutions, such as Construction Cost Data.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sample norms of some common work items are given below;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:table -->\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Description</strong></td><td><strong>Unit</strong></td><td><strong>Quantity</strong></td><td><strong>Skilled labour (days)</strong></td><td><strong>Unskilled labour (days)</strong></td><td><strong>Cement (50 kg bags)</strong></td><td><strong>Sand (m</strong><strong><sup>3</sup></strong><strong>)</strong></td><td><strong>Metal (20 mm)</strong></td><td><strong>Bricks (nr)</strong></td><td><strong>Small plants (days)</strong></td></tr><tr><td>1:2:4 (20 mm) concrete</td><td>m<sup>3</sup></td><td>1.00</td><td>2.55</td><td>6.20</td><td>7.00</td><td>0.20</td><td>0.97</td><td>-</td><td>0.83</td></tr><tr><td>Brick Work</td><td>m<sup>3</sup></td><td>1.00</td><td>1.10</td><td>1.50</td><td>0.82</td><td>0.40</td><td>-</td><td>540</td><td>-</td></tr><tr><td>Cement plaster</td><td>m<sup>2</sup></td><td>1.00</td><td>0.11</td><td>0.16</td><td>0.15</td><td>0.02</td><td>-</td><td>-</td><td>-</td></tr></tbody></table><figcaption><em>However, the above norms do not provide the crew types associated with a particular work item.</em></figcaption></figure>\n<!-- /wp:table -->\n\n<!-- wp:paragraph -->\n<p>Productivity must be presented in labor hours. Then, the record can be normalized.&nbsp; Therefore, it is not subjected to the variability in project locations and prevailing wage rates. In this way, unit labor costs for the contractor’s own operating area can be easily developed by multiplying local wage rates (which includes all other benefits) by the productivity rate.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> – </em>A contractor determines that the unit productivity for painting a wall is 0.55 hours per square meter. If the wage rate including other benefits is LKR 250 per hour, the unit labour cost become (0.55 hours per square meter x LKR 250 per hour) = LKR 137.50 per square meter.&nbsp;&nbsp;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>Estimating work duration</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Determining the total work duration for an activity or a task involves knowledge of the quantity of work required for the task and the production rate for the specific crew that will be performing the work. The quantity of work related to the material quantity can be determined by the quantity take-off. A better approach to the estimation of activity time duration is to maintain historical records of the particular activity, and rely on the average duration from the experience in making new duration estimates. Since the scope of activities is unlikely to be identical between different projects, unit production rates are typically employed for this purpose.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The duration of an activity may be estimated as shown below.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Work duration </em></strong><strong><em></em></strong><strong><em> </em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>quantity of work / number of crews × production rate</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>Find the duration of interior and exterior painting activities with quantities of 550 m<sup>2</sup> &amp; 406 m<sup>2</sup> respectively, using crews of 11 m<sup>2 </sup>/ hours &amp; 14 m<sup>2 </sup>/ hours for the interior &amp; exterior painting activities respectively.&nbsp; (Assume the same crew is used for both works).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><strong><em> </em></strong>Interior painting duration = 550 / 11 = 50 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Exterior painting duration = 406 / 14 = 29 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Total work hours = 79 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Usually, the quantity of work to be completed can be determined from the architectural drawings of the project. The number of crews working is decided by the planner/estimator or the quantity surveyor depending on resources available as well as the work programme.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In many cases, the number or amount of resources applied to particular activity may be modified after considering the resulting project plan and work schedule. Historical records in the particular construction organization can also provide data for the estimation of productivities.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Having defined the duration of a given work means that the planner/estimator or the quantity surveyor has already defined the number of resources that will be employed in a particular work. After knowing the activity time duration and resources to be employed, it is easy to estimate the direct cost of the activity. Then, the three elements of an activity, the time duration, type of resources, and cost of procuring resources for the activity form the construction method.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>The Basic principle for estimating labor costs</em></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Labor costs in construction are determined by two factors: <strong><em>monetary &amp;</em></strong> <strong><em>productivity</em></strong>. The monetary factor is related to hourly wage rates plus other benefits. Estimating the constituents of the monetary factor is more difficult in construction than in other industries. This is due to the different types of work and skills involved in construction. Although the computational process of this component seems complex &amp; tedious, it is only a matter of accounting as the needed numbers (such as wage rates, fringe benefits, etc.) are readily available.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The method for calculating the total cost of labor is relatively simple. It requires the knowledge of the total work hours or labor hours needed to perform all the tasks &amp; then applying the corresponding wage rates.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The formula for calculating the total cost of labor is as follows:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Total cost of labor </em></strong><strong><em></em></strong><strong><em>= </em></strong><strong><em></em></strong><strong><em>total work hour × wage rate </em></strong><strong>&nbsp;</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> – </em>A welder works 10 hrs/day, 6 days/week. A basic salary of LKR 350 / hr is paid for all straight-time work, 8 hrs/day, 5 days/week. An overtime rate of one time &amp; one-half is paid for all hours over 8 hrs/day, Monday through Friday, &amp; double time is paid for all Saturday work. The meal allowance is LKR 200 per day. Calculate the average hourly cost to employ the welder.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution</em></strong><em>:</em><em> </em><em></em>Actual hours = 10 × 6 = 60 hrs&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Pay hours = weekly straight time + weekly overtime + Saturday overtime&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>                 = (8 x 5 × 1) + (2 x 1.5 x 5) + (10 × 2) </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>                 = 75 hr </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Average hourly pay = (75/60) × LKR 350 = LKR 437.50 / hr&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Meal allowance &nbsp; &nbsp; &nbsp; = (LKR 200 x 6) / 60 = LKR 20 / hr</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Then, the average hourly cost = LKR (437.50 + 20) / hr</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= LKR 457.50 / hr&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example</em></strong><em> - </em>Assume that a crew for a work item includes three bricklayers (masons) &amp; two helpers. The crew works for three days (8 hrs/day) to complete the work package. The wage rate for each bricklayer is LKR 337.50 / hr &amp; each helper is LKR 260.00 / hr. Find the total cost of the crew for the work item.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Total cost = (3 <em>× </em>3 <em>× </em>8 <em>× 337.50</em>) + (2 <em>× </em>3 <em>× </em>8 <em>× 260.00</em>)&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>= LKR 36,780&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes, the productivity of a specific work crew is stated in man-hours/unit, and not in units/day.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For example, if the productivity is said to be 0.5 Man-hours/cubic meters, this means how long it will take one labor to construct one unit. This way applied to any crew formation and work hours.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>More Examples</em></strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example - </em></strong>If the daily production rate for a crew that works in an activity is 175 units/day and the total crew cost per day is LKR 18,000.00. The material needed for daily work is 4.5 units at LKR 10,000.00 /unit.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>a. Calculate the time and cost it takes the crew to finish 1400 units.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>b. Calculate the total unit cost.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(<em>Consider an eight hour work day).</em>&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>a)</em><em> </em><em>Duration</em><em> </em><em></em><em>=</em><em> </em><em>Quantity / (production per unit time x number of crews)&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>1400 / (175 x 1)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>=</em><em> </em><em>8 days</em><em>&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em>Cost (labour cost)</em><em> </em><em>=</em><em> </em><em>Duration (units of time) x Crew cost per unit of time&nbsp;&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>8 days x LKR 18,000 per day</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>=</em><em> </em><em>LKR 144,000</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Total direct cost </em><em></em><em>=</em><em> </em><em>LKR 144,000 + (4.5 units of material x LKR 10,000 per day x</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>8 days)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>LKR (144,000 + 360,000)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>=</em><em> </em><em>LKR 504,000</em><em>&nbsp;&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>b)</em><em> </em><em>Unit cost </em><em></em><em> </em><em>= </em><em></em><em>total cost / quantity&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em></em><em> </em><em>= </em><em></em><em>LKR 504,000.00 / 1400&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>= </em><em></em><em>LKR 360.00 / unit&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes the productivity of a specific crew expressed in man-hours per unit, not in units per day. For example, if the productivity is said to be 0.5 Man-hour/cubic meters, this means how long it will take one labor to construct one unit. This way, it can be applied to any crew formation and work hours.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Example - </em></strong>What is the duration in days to install 600 square meters of walls shuttering if:&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>a) Crew of 2 carpenters is used with output of 200 square meters/day.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>b) Productivity is measured as 0.08 man-hour/square meter. Number of carpenters = 3, and number of working hours/day = 8 hours&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>a)</em> <em>Duration </em><em></em><em> </em><em></em><em>= </em><em></em><em>600 / 200 </em><em></em><em>= </em><em>3 days&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>b)</em><em> </em><em>Total man-hours needed </em><em></em><em>= </em><em></em><em>600 × 0.08 </em><em></em><em>= 48 man-hours&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>(if one man used)</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>&nbsp;</em><em> </em><em></em><em>Duration </em><em></em><em> </em><em></em><em>= </em><em></em><em>48 / 8 </em><em></em><em> </em><em>= 6 days (if one man used)&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em></em><em> </em><em>Duration using 3 men </em><em></em><em> </em><em>= </em><em></em><em>6 / 3 </em><em></em><em> </em><em>= </em><em>2 days&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Example - </strong>(use of several resources)&nbsp; - What is the duration of an excavation activity with a quantity of 3000 m<sup>3</sup> using an excavation crew consists of an excavator with a production rate of 200 m<sup>3</sup>/day, a loader of 250 m<sup>3</sup>/day and 3-trucks of 150 m<sup>3</sup>/day? Comment on this crew formation.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Solution:</em></strong><em>&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- Using the excavator: Duration = 3000 / 200 = 15 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- using the loader: Duration = 3000 / 250 = 12 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- using the 3-trucks: Duration = 3000 / 150 = 20 days&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The activity duration is governed by the lowest production rate = 20 days.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>This is an unbalanced crew where the loader is not working with full capacity; the production rate of this crew could be adjusted by increasing the number of trucks to 4 of 5 trucks.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Then, for a balanced mix of resources, use 1 loader, 1 excavator and 4-trucks.&nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>Accordingly, the activity duration = 3000 / 200 = </em><em>15 days</em><em>.&nbsp;</em></p>\n<!-- /wp:paragraph -->', 'Elementor #1440', '', 'inherit', 'closed', 'closed', '', '1440-revision-v1', '', '', '2021-06-19 11:11:19', '2021-06-19 05:41:19', '', 1440, 'https://civilengineeringlectures.com/?p=1446', 0, 'revision', '', 0),
(33, 1, '2020-04-07 17:49:49', '2020-04-07 17:49:49', '<!-- wp:heading -->\n<h2>Introduction </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Sri Lanka has a very long history. According to the Mahavamsa[1], Sinhalese are descendants of the Prince Vijaya and his seven hundred followers. They landed on the west coast of the island around 5th century BC. Even when they arrive in Sri Lanka, some kind of civilized population lived in the country. Kuweni, the Yaksha princess who married Vijaya afterward, was weaving some clothes when they first met. They were Yaksha devotees. In other words, these facts establishes that there was some form of civilized society. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In a somewhat civilized society, surely there should have been some form of administration of civil and judicial matters. We do not have written confirmations about the legal systems that prevailed during those days. But, we have evidence to prove that the kings who ruled afterward maintained law and order. Also, they have followed some forms of hierarchical judicial systems. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Pre-colonial Period </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Some literature has mentioned elements of judicial systems in early Ceylonese history. During the time of Queen Kalyanawathi (1202 – 1208), a military commander named Ayasmantha compiled a book on law[2]. Kamalika Pieris says that inscriptions such as Aturupolaya Gama pillar inscription and Kondavattavan inscription of King Dappula IV., Timbirivava pillar inscription of King Kassapa IV, Kirigallava inscription of King Udaya II and Vevalketiya inscription of King Mahinda IV speak of prohibited behavior and the punishments attached to them[3]. For example, the Kondavattavan inscription has ten taboos such as දියපත්තායම් තහංචිය, භූදිය තහාංචිය, මඩකලූ තහංචිය. Those were for improved water management. It might be the penal code in those periods.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In the keynote address[4] by High Court Judge R.T. Vigna Raja, at an orientation program to the law students cited Dr. A.R.B. Amarasingha’s “The Legal Heritage of Sri Lanka” and said, “Ceylonese monarch followed an elaborate system of administration of justice spreading to different levels of hearings”. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Judicial power of the king</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The King had original jurisdiction. And at judgment hearing, even in simple cases, sometimes the king himself participated[5]. Often the kings\' judicial authority was delegated to some officials. Those officials exercised these delegated judicial authorities.  However, the king himself heard disputes involving the members of the royal family or high dignitaries of the state. The king alone could impose a sentence of death. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In exercising the judicial powers the king consulted his chiefs and obtained their opinion. For instance, in early days Rajasabha or the king\'s court and during the Kandyan period Maha Naduwa advised the king on the highest judicial matters. This court consisted of the Adikaramas, Disavas, Lekams, and Muhandirums who were distinguished for their ability and judgment. Gamsabhava was the lowest court and probably the earliest tribunal in the judicial hierarchy of the Sinhalese. However, no record gives an account of the judges of this court or of the legal proceedings[6]. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Ratasabha composed of a delegation from each village in a Korale or Pattu was another court. The delegates were from the principal citizens and officials such as Mohottalas (Scribes), Liyanarala (Clerks), Badderalas (tax collectors), and Undiralas (collector of royal revenue). These tribunals adjudicated matters affecting caste, marriage, and social status. Thus it is clear that from the very early days of Sri Lankan history, a hierarchy of courts from village level Gamsabhava through district level Ratasabhava to Mahanaduwa existed on the island.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>When island was not under one king</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In history, there were only a few occasions that the island was under one king. Most of the time, there were several kingdoms in early Sri Lanka. Those kings and princes who ruled separate kingdoms governed more or less independently. Most of the Sinhala kings ruled north central, southern, and central regions. After the fall of the Anuradhapura kingdom, there were some Chola and Tamil rulers in the northern territory of Sri Lanka. And there were Arab traders all over the country doing their businesses. As a result, several indigenous laws were practiced in several parts of Ceylon. But most of these were not in written form. These continued through an oral tradition. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Laws prevailed in the country</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>When the first European power, the Portuguese, came to the island, there were several laws that prevailed in the country. The majority Sinhalese who occupied the interior, southern and western areas of the country followed the Sinhalese law, popularly known as Kandyan law. Through a continuous oral tradition has linked these laws to the times of early Sinhala kingdom. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Robert Knox said “There are no laws but the will of the king. Whatsoever proceeds out of his mouth is immutable law. Nevertheless, they have certain usages and customs that do prevail and are observed as laws”[7]. But Hayley’s comment is “The Sinhala law, as enforced in the Kandyan territories in the eighteenth and nineteenth centuries was in no sense a personal law. Originating in the customs of the Sinhalese it had long since become the law of a country administered by the King in respect of all cases alike”[8]. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Other laws prevailed</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The Tamils, who lived mostly in northern areas, followed the Law of Tesawalamai. The then Dutch Commander of Jaffna has mentioned the native customs of Jaffna people regarding their dispute settlements. These customs were later codified as “Law of Tesawalamai”. The law of the Muslim community was the Muslim law. This Muslim community was descendants of Muslims who came to the island as traders or who migrated from India. Their Code of Muslim law also codified during the Dutch period. Also, there were other minor systems of laws such as the Law of Mukkuvars, and the system of laws for Chetties, Parsees, and Paravars[9]. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>These facts above establish that before colonization, we had laws, customs, and judiciary, which was unique to our country.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Colonial Period</h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3> The Portuguese</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>They came to the island in 1505 AD and settled in the western coastal area with the permission granted by the King Parakramabahu VIII of Kotte (1484-1508). Their original intention was to trade with the Ceylonese and convert people to their religion – Roman Catholicism. But, later realizing the strategic advantage of the situation, they wanted to establish themselves in the country. The Portuguese made no attempt to introduce their law to the coastal areas of Sri Lanka which they controlled and only succeeded in introducing their religion, Roman Catholicism[10]. The Portuguese did not try to alter the existing basic structure of native administration. At the time of the Malwana Convention, they tried to introduce their customs and laws to areas where they ruled. But it was not successful[11]. In 1656 AD the King and the Dutch repulsed the Portuguese.<br></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>The Dutch</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Hollanders came to the island after the Portuguese. They were on the island from 1656 – 1796 AD. They also could not extend their authority beyond coastal areas. But they successfully introduced their version of Christianity, laws, judicial and administrative system in the coastal areas.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>The law of the Dutch</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Their law was known as the Roman-Dutch law. Roman-Dutch law was a combination of Roman law and local Dutch law. Laws that legislative authorities established in the Netherlands or laws promulgated in the colonies have applied to colonies. Directorate of the East India Company also could legislate for the colonies. Governor-General of Batavia and Governor of a colony also could promulgate laws[12]. Those are some methods of how Roman-Dutch law has introduced to Ceylon. When applying these laws the Dutch judges must have followed some practice. Nadaraja suggests that judges must have first consulted local statutes, then Batavian statutes, and finally the general law of Holland[13]. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Judicial system of the Dutch</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The Dutch had a well organized judicial system. At Colombo, the chief court was the Raad van Justitie. It consisted of members chosen from the Political Council and presided over by the Hoofd Administrateur. It had exclusive criminal jurisdiction and original jurisdiction in civil cases between Europeans and locals in Colombo. Raad van Justitie also heard cases against locals residing in the Fort of Colombo. It was also a court of appeal and exercised jurisdiction in criminal matters. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The next court, Land Raad dealt with litigation touching land disputes among the local people. It also dealt with matters of contract and debt where the amount is less than 120 rix-dollars. The Composition of Land Raad was a Disawa as President, a few members of the Political Service, and local chiefs. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The Civil Raad or Court of Small Causes took cognizance of civil cases under 120 rixdollars in value. It had jurisdiction over Europeans and natives. A similar Raad van Justitie existed at Jaffna and Galle as well as Land Raad. Appeals lay from the Raad van Justitie of Jaffna and Galle and from all minor courts in civil and criminal matters to the Raad van Justitie at Colombo, and in certain eases to the Raad van Justitie at Batavia[14]. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Though the Dutch, in principle, allowed the native laws to be in operation, there were instances that the Dutch authorities denied the legal recognition to the native usages[15].</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>The British</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The British acquired the maritime provinces of the island in 1796 from Dutch and ceded to the British Sovereignty in 1802.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The fundamental principles regarding the administration of conquered or ceded colony of the British sovereignty was laid down in the judgment of Campbell v Hall (1774)[16]. Accordingly, the inhabitants of the colony came under the authority and dominion of sovereignty and became British subjects. Also held that subject to certain exceptions, the laws and the administration of justice in such a country should not be disrupted. And should continue in force unless it became necessary to change the existing system. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>The Proclamation of 1799</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The first Proclamation of British regarding the administration of the Ceylon “The Proclamation of 1799” states that “the laws and institutions that subsisted under the ancient Government of the United Provinces (of the Dutch) should continue, subject to such deviations and alterations as may be made by the authorities specified, and in the circumstances mentioned in the proclamation”[17]. Accordingly, special laws and residuary general law or common law, namely the Roman-Dutch law of the Netherlands as supplemented by legislation enacted in Batavia and Ceylon and as declared in the decisions of the Ceylon courts where the special laws did not apply, continued to have legal validity[18]. <em>Special laws mean the laws which applied in varying degrees to particular sections of the Asian inhabitants under the rule of the Dutch. </em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>“Charter of Justice” of 1801 did not repeal the Proclamation of 1799. But it contained some provisions regarding the administration of justice in Maritime Provinces. It allowed the application of the English law and the laws of Sinhalese and Moors in regard to certain matters. But the Statute, Ordinance no. 5 of 1835 restored Proclamation of 1799, with some deviations, such that any deviation or alternative was possible only if “ordained by lawful authority[19]. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>After 1815</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>When the Kandyan provinces were annexed in 1815, the British assured the nobility of clergy and the citizens by the \"Convention of 2 March 1815”. Their rights, privileges, and powers of the respective offices, the safety of their persons and property, civil rights and immunities, institutions, and customs in force would be preserved and maintained and that their religion declared immutable[20]. The traditional authorities exercised the administration of criminal justice and police according to established norms. It gave the Government the right to redress grievances and reform abuses in all instances.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, soon the chiefs, priests, and the people found that they were deceived. The consequences were the uprising in the Kandyan provinces. This took place towards the end of 1817. The British suppressed the uprising with great cruelty and harshness. It provided the much waited and desired opportunity for the British to enforce harsh terms and establish the British hold in the Kandyan provinces on a firm footing by the Proclamation of 21 November 1818[21]. In this background, we have to consider the judicial administration of Ceylon under British rule. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Judicial system of the British</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The procedure followed was the practices of English Courts. The judges were strangers to social concepts that prevailed. Therefore the majority of cases had resulted in many deviations and changes in normal procedures. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The rules of proceedings drafted for the conduct of these courts were in accordance with the rules and procedures prevalent in Great Britain. Pleadings were by affidavit. The litigants had to pay certain fees, which varied in amount from time to time. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The Charter of Justice of 1801 empowered the Supreme Court to make necessary rules to enroll properly qualified persons as Advocates and Proctors. The Court also entrusted with the general superintendence and control of these legal practitioners.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>The Supreme Court - under the British rule</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The Supreme Court of the Island of Sri Lanka was established. And the Crown appointed a Chief Justice for the Supreme Court. The Court in consultation with the Governor appointed a registrar and other officials necessary to run the Court office. The island was divided into District of Colombo and three circuits namely the Northern, Southern and Eastern. There were to be two sessions of the Supreme Court a year in each circuit. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The Supreme Court was vested with the original jurisdiction of major criminal matters throughout the island and appellate jurisdiction of the District Courts. In addition, the Supreme Court was to hold Criminal and Civil Sessions separately on the circuit. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>The judicial system - under the British rule</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Each judicial circuit was further subdivided into Districts. In each of which a District Court was established with a District Judge. The District Court has the empowerment to adjudicate all civil and limited criminal matters within the judicial district. And District Court also conferred on the testamentary jurisdiction and the adjudication of revenue suits. Appeals were possible from the District Court to the Supreme Court. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Although there was confusion at the beginning, the British were able to build their own judicial apparatus in a short time. Roman-Dutch Law has the preference. However, the customary laws of the locals too were given judicial recognition. Subsequently, the traditional Tamil Laws and the code of Muslim Laws compiled under the Dutch were declared part of the law. But when it came to decision making, it was soon evident that these codified laws were silent in some areas, ambiguous in others, and obsolete in some other areas[22].</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Post-Independence Period</h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>1948 to 1972</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In 1815, with the support of some Kandyan nobles who disliked the King of Kandy, the British captured Kandy. With this, Ceylon came under the rule of British sovereignty. During the later part of their ruling period, they first introduced colonial constitutional governance made through the Colebrooke - Cameron Reforms. The Donoughmore reforms came in 1926.  Finally, in 1948 the Soulbury Reforms came and awarded much-anticipated independence. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, the powers given were subjected to the powers of Her Britannic Majesty as the Head of State of the Dominion of Ceylon. The representative of her Majesty in the Dominion of Ceylon was the Governor-General. His duties declared in Article 4 (2) of the Soulbury Constitution. It says \"- exercised as far as may be in accordance with the constitutional conventions applicable to the exercise of similar powers, authorities, and functions in the United Kingdom by her Majesty\". </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Accordingly, a Parliamentary System of Government awarded to Sri Lanka. The executive Powers were entrusted to the cabinet headed by the Prime Minister. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The Governor-General appointed the Chief Justice and the judges of the Supreme Court. In addition, a Judicial Service Commission has set up under the Chief Justice. This Commission controlled the affairs of the judges in the judicial system.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>1972 to 1978</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The First Republican Constitution in 1972 achieved to break away from the Colonial scheme of constitutional governance which had continued into the Period of Independence. Another major change relating to the judiciary was that the removal of the right to appeal to the Privy Council in the United Kingdom. In addition, the Ceremonial President appointed by the Prime Minister replaced the Governor-General, who functioned under the Soulbury Constitution as the constitutional figure representing the Queen of England.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In the 1972 Constitution where it was declared that: \"Sri Lanka (Ceylon) is a Free, Sovereign, and Independent Republic (Article 1). There shall be a President of the Republic of Sri Lanka who is the Head of the State (Article 19). The President is the Head of the Executive and the Commander – in – Chief of the Armed forces (Article 20).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>1978 to to-date</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The first Executive Presidential Constitution which J.R. Jayewardene introduced in 1978 is still in force. To date, this Constitution has undergone a number of amendments to suit the situation of the country and the political environment. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4 style=\"font-size:13px\">Foot notes</h4>\n<!-- /wp:heading -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol style=\"font-size:12px\"><li>http://mahavamsa.org/mahavamsa/original-version/07-consecrating-vijaya/</li><li>Consice mahawamsa p110</li><li>http://www.island.lk/2009/01/10/satmag4.html</li><li>http://www.highbeam.com/doc/1P3-1668250921.html</li><li>EZ vol 1 pp 35 37</li><li>Geiger 1960</li><li>Knox Robert, An historical Relation of Ceylon. (1958) reprint p 161</li><li>Haylet p 25</li><li>CJM Cooray, an introduction to the legal systems of sri lanka, p 3</li><li>Oriental and Occidental Laws in Harmonious Co-existence: The Case of Trusts in Sri Lanka Electronic Journal of Comparative Law, vol. 12.1 (May 2008), http://www.ejcl.org page 2</li><li>Ibid, note 5</li><li>Nadaraja p 9</li><li>Nadaraja T,. cited in Cooray, Legal System p 53</li><li>Anthonisz, R.G., The Dutch in Ceylon; An Account of Their Early Visits to the Island Reprint (2003), Asian Educational Services, Delhi.</li><li>Nadaraja 1968</li><li>Campbell v hall</li><li>Proclamation 1799</li><li>Nadaraja p 181</li><li>De costa v boc</li><li>Skeen vol 1 pp 180 181</li><li>Ibid note 23 pp 223 229</li><li>Wijeyasamaraweera 1981</li></ol>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>BIBLIOGRAPHY</h3>\n<!-- /wp:heading -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol><li>Anthonisz, R.G., “The Dutch in Ceylon; An Account of Their Early Visits to the Island”, Reprint (2003), Asian Educational Services, Delhi. </li><li>Cooray, A., “Oriental and Occidental Laws in Harmonious Co-existence: The Case of Trusts in Sri Lanka”, Electronic Journal of Comparative Law, vol. 12.1 (May 2008), http://www.ejcl.org </li><li>De Silva, M.U., \"Emergence of Two Legal Cultures in the Sri Lanka and the Growth of a Litigious Nation Under Western Powers”, (Thesis, University of Ruhuna, Sri Lanka), http://www.ruh.ac.lk/research/academic_sessions/2003_mergepdf/36-48.PDF </li><li>Geiger, W., “The Mahawamsa or The Great Chronicle of Ceylon”, 1912, Oxford University Press </li><li>Karunathilaka, H., “The Discussion at Malwana”, http://www.sundaytimes.lk/120923/funday-times/the-discussion-at-malwana-13017.html</li><li>Nadaraja, T., “The Legal System of Ceylon in its Historical Settings”, (Brill Archive, 1975) </li><li>Pieris, K., “Crime and Punishment in Ancient and Medieval Sri Lanka”, http://www.island.lk/2009/01/10/satmag4.html </li><li>Rajapakse, R., “Consice mahawamsa”, 1st ed </li><li>Skeen, W., “A Collection of Legislative Acts of the Ceylon Government from 1796”, vol 1</li></ol>\n<!-- /wp:list -->', 'Legal Systems in Ancient Sri Lanka', 'Sri Lanka does not have written confirmations about the legal systems that prevailed during pre colonial days.  ', 'publish', 'open', 'open', '', 'legal-systems-in-ancient-sri-lanka', '', '', '2021-01-14 22:31:33', '2021-01-14 17:01:33', '', 0, 'https://civilengineeringlectures.com/2020/04/07/legal-systems-in-ancient-sri-lanka/', 0, 'post', '', 0);
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(41, 1, '2020-04-10 10:37:02', '2020-04-10 10:37:02', '<!-- wp:heading -->\n<h2>Construction Arbitration in Sri Lanka</h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Introduction </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Disputes are inevitable occurrences in many contracts in the construction industry as well as in the commercial world. Arbitration is becoming a well-accepted alternative dispute resolution mechanism for many of those disputes. As many scholars define, Arbitration is a private method of dispute resolution. Parties themselves chose this method as an effective way of putting an end to disputes between them without recourse to the Courts of law. It is a specially designed tool established for the final and binding resolution of disputes[1]. It is an alternative to litigation. The distinct feature of arbitration compared to other alternative dispute resolution methods is its finality and binding nature. Compared to litigation, it is flexible, less costly, speedier, private, and confidential. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Powers of Arbitral </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Tribunals Parties to the Contract have the power to appoint arbitrators. For that, they must have an agreement to resolve their disputes through arbitration. The arbitration agreement may be in the form of a clause in another agreement. Or it may be in the form of a stand-alone agreement. The parties to the contract can structure the arbitration panels to meet the specific needs of their relationship. The parties can set out the powers of the arbitrators, their jurisdiction, and their qualifications to suit the party’s contractual relationship. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, after the appointment of arbitrators, the power to administer proceedings is deemed to have been conferred on the arbitrators. This is derived from the consent of the parties as expressed in their arbitration agreement. Other than the agreement, arbitrators derive powers from the applicable law. For example, in Sri Lanka, it is the Arbitration Act no. 11 of 1995 (the ACT). Some of the International examples are the UNCITRAL Model Law on International Commercial Arbitration, the English Arbitration Act, and ICC Arbitration Rules. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Doctrine of Competence – Competence </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>One of the areas that empower the arbitration tribunal is to give a ruling on its own jurisdiction. This is the Doctrine of Competence – Competence. Modern international arbitration practices all over the world generally accept this principle. Clause 11 (1) of the ACT affirms this. Article 16 of UNCITRAL Model Law on International Commercial Arbitration also provides that arbitral tribunal may rule on its own jurisdiction. This doctrine is embodied in Indian law under section 16 of the Arbitration and Conciliation Act, 1996 of India. Under English law, it is section 30 and section 31 of the Arbitration Act, 1996 of the United Kingdom. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This doctrine helps to overcome the latent problem that would have occurred where a tribunal decides preliminarily that the arbitration agreement is invalid. In such a case, the tribunal itself lacks the authority to make that finding. Therefore, this doctrine gives the tribunal the legal standing to proceed when faced with an objection raised by an uncooperative party. Further, this doctrine facilitates the expeditious settlement of disputes. It is done by ensuring that claims relating to jurisdiction are settled at the very beginning. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, the power vested in the tribunal is ultimately subject to Court control. Therefore, we can assume that the doctrine of competence-competence has two aspects. It has the power to decide on the existence of its own jurisdiction but subjected to control of the court. Arbitration laws in many countries recognize both aspects. But, their form and application vary. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Clause 11(1) of the ACT</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Clause 11(1) of the ACT says that any unsatisfied party to the arbitral proceedings may apply to the High Court for a determination. This safeguards the interests of a party who genuinely aggravated by the decision of a tribunal. According to Clause 11(2), the tribunal may continue the proceedings pending determination by the Court. Tribunal may proceed even if an application has been made to High Court as per Clause 11(1). However, if the Court later determines that the tribunal lacked competent jurisdiction, it can re-examine the tribunal’s jurisdiction. And the Court can deem the award to be invalid and therefore unenforceable. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Clause 5 of the ACT</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>According to Clause 5 of the ACT, if parties agree to settle their disputes through arbitration, the Court does not have jurisdiction to hear and determine such matters without the consent of both parties. This is also embodied in Article II (3) of the New York Convention. This principle, refraining the Court from engaging in the examination of arbitrator’s jurisdiction before arbitrators themselves having the opportunity to do so, is known as negative effect of the principle of competence – competence. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The tribunal can render an award as to its jurisdiction in two ways. It can either rule on the matter, in the form of a preliminary award as to jurisdiction, or deal with the jurisdictional question in its award on merits. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In some civil law countries, the competence-competence rule is more far-reaching. For instance, under Article 1466 of the French Nouveau Code de Procedure Civile, it is the arbitrator who rules both on the limits of his or her jurisdictional power and on the merits of the matter. Under Article 1458, a court must, absent manifest nullity of the arbitration clause, declare itself incompetent to render a decision on the merits. Therefore, arbitrators have exclusive competence to decide challenges to their jurisdiction. Even whether it based on the alleged invalidity of the arbitration agreement or the main contract containing it. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Case Law</h3>\n<!-- /wp:heading -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Case Law - 1</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>There are several international cases that support the Doctrine of Competence – Competence. In the case of Texaco Overseas Petroleum Co/ California Asiatic Oil Co. v. Government of Libya[2], the sole arbitrator, appointed by the president of International Courts of Justice (ICJ), had to determine its jurisdictional competence over an objection made by the Libyan government. The Libyan government opposed from the beginning and refused to participate in a subsequent hearing. The sole arbitrator held that it had jurisdiction to determine its own jurisdiction based on the customary rule of international law. And the arbitrator gave the award in favor of two companies TOPCO and CAOC. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Case Law - 2</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In another case, <strong>Ontario Medical Association v. Willis Canada Inc</strong>[3]., Appeal Court of Canada has affirmed the competence-competence principle and held that it applies to Ontario’s Arbitration Act, 1991. Wills and Aviva, two companies entered into a written agreement (Broker/Agent Agreement) pursuant to which Wills would broker Aviva insurance coverage to members of the Ontario Medical Association (OMA). The Broker/Agent agreement contained an arbitration clause. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The OMA was not a signatory to the above agreement. The OMA was only a party to an addendum to the agreement. The preamble to the addendum stated that the OMA joined exclusively for the purpose of the fees the OMA was to receive from Aviva under Broker/Agent Agreement and the addendum. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The OMA subsequently commenced a court action against Aviva and Wills. The OMA alleged that Aviva had defaulted on the fees owed to it under the Broker/Agent agreement and the addendum. Aviva moved for a staying order. It stated that the court should not proceed when the parties are bound by the arbitration agreement. The OMA took the position that it was not a party to the Broker / Agent agreement and was therefore not subject to the arbitration clause. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Challenge to the arbitrator’s jurisdiction to resolve first by the arbitrator</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>During the hearing of this case, Justice Newbound held that whether the Ontario Medical Association and its claim are subject to the arbitration agreement should properly be left to the arbitrator appointed under the Broker/Agent Agreement. Giving judgment, Court stated the general rule laid down by the Supreme Court of Canada in the Dell Computer Corp. v. Union des Consommateurs. This rule states that, except in the narrow category of cases in which a challenge to an arbitrator’s jurisdiction is based solely on a question of law, “in any case involving an arbitration clause, a challenge to the arbitrator’s jurisdiction must be resolved first by the arbitrator”. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Case Law - 3</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In the English case, <strong>Christopher Brown v. Genossenschaft Österreichischer Waldbesitzer Holzwirtschaftsbetriebe, Registrierte GmBH</strong>, it was held that when the jurisdiction of arbitrators is challenged, they may, if they wish, immediately refuse to act until their jurisdiction has been determined by a court which has the power to make a final determination. But they can also choose to decide for themselves whether they have jurisdiction. In this case, their determination will not be binding; the losing party can challenge the ruling in the courts. From the above and some other English cases, it seems that the competence-competence rule exists in England. However, it is not absolute. The Court continues to control arbitration agreements.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Case Law - 4</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In a recent Indian case, the Indian Supreme Court upholds the competence-competence principle. In <strong>World Sport Group (Mauritius) Ltd v MSM Satellite (Singapore) Ltd</strong>, the Supreme Court of India held that issues of fraud should properly be dealt with initially by the arbitral tribunal in accordance with the arbitration agreements entered into between the parties, and not initially by the courts. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Conclusion</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Competence-competence is now a foundational principle of the modern law of arbitration. According to that principle, an arbitral tribunal is competent to decide its own competence. In other words, the tribunal has jurisdiction to decide its own jurisdiction. That principle demands, in turn, that the arbitral tribunal, and not the court, should in the first instance decide the tribunal’s competence.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Foot notes</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol><li>Lew, J. et al, Comparative International Commercial Arbitration (The Hague, Kluwer Law, 2003) p.1</li><li>https://www.quimbee.com/cases/texaco-overseas-petroleum-co-v-libya (accessed on 12th February 2015) </li><li>http://www.canadianappeals.com/2013/12/27/the-court-of-appeal-affirms-that-the-competence-competence-principle-applies-to-ontariosarbitration-act-1991 (accessed on 12th February 2015)</li></ol>\n<!-- /wp:list -->', 'DOCTRINE OF COMPETENCE - COMPETENCE', 'Arbitration is becoming a well-accepted alternative dispute resolution mechanism for many of those disputes. ', 'publish', 'open', 'open', '', 'doctrine-of-competence-competence-construction-arbitration', '', '', '2021-01-14 22:29:32', '2021-01-14 16:59:32', '', 0, 'https://civilengineeringlectures.com/2020/04/10/doctrine-of-competence-competence-construction-arbitration/', 0, 'post', '', 0),
(50, 1, '2020-04-13 11:11:12', '2020-04-13 11:11:12', '<!-- wp:heading -->\n<h2>Introduction </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>According to the Department of Census and Statistics of Sri Lanka, the construction industry has contributed the highest share – 7.5 percent – within the industry sector in the year 2019. It grew by 4.0 percent during the year 2019 when compared to the year 2018[1]. For Gross National Income (GNI), it was nearly one thousand billion SLR for the year 2018[2]. It is more than twenty-five percent of the GNI of the whole industrial sector. Therefore, any disruption in the process of the construction industry may destabilize the industry. Then it may have a huge impact on the economy of the country. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As in any other sector, the lifeblood of the construction industry is the flow of the money. In Sri Lanka, most of the personnel in the industry know getting payments is not an easy task. Therefore, to safeguard the industry, there should be a mechanism that ensures the flow of money is not disrupted. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Industry </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The delivery of a construction project is highly complex. The industry itself is an amalgamation of several chained operations. It involves multi-disciplinary inputs provided by various participants such as employers, authorities, professionals, consultants, contractors, sub-contractors, tradespeople, technicians, etc. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The inherent feature is that most of the construction activities are labor-intensive and final products are seldom defect-free. The other feature is to award the contract to the lowest bidder. These bids typically prepare in a limited time period. Due to the pressure of the employer, most construction programs are unrealistically compressed. The construction costs are comparatively high, while productivity becoming lower. The inadequately trained workforce and financial constraints weaken the industry’s ability to adopt new technologies to cope up with new challenges. Therefore, in the industry, there is a high level of technical and economic risk. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>When considering the economic risk, most of the time, contractors are paid in arrears. The minimum gap between the execution of the work and the interim payment is two months. In that sense, the contractor is an unsecured creditor of the party for whom he has contracted to work.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Security of Payment </h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Objective </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Cascade of payments from Employers from top to all the way down to workers is very essential to maintain the cash flow. Cash flow management is critical to the survival of contractors and sub-contractors. The viability of their business depends more often on the cash flow than the profit. The existence of the labor market also depends on the cash flow emanating from the employers. Also, prompt payment for completed works offers strong intensive to contractors and sub-contractors. It helps to improve the quality and on-time delivery of projects. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In the present system, if payments are not received from the employer to the contractor, all lower-level personnel - subcontractors, suppliers, and workers - will suffer. Normally, Subcontract arraignments are for ‘pay-when-paid’ or ‘back-to-back’ basis. Even with the prompt payments from the employer to the contractor, there is no means to ensure such payments will flow down to subcontractors and to workers. Any diversion of money in the upper tiers will result in an interruption of the cash flow at lower level personnel. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The objective of the security of payment system is to address the above problems in the construction industry. And then resolve payments disputes in a timely manner. This scheme establishes a process to provide contractors with a quick and inexpensive statutory way to get their due payments or recover money owed to them. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Definition </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Security of payment is a generic term which uses to describe the entitlement of contractors, subcontractors, consultants or suppliers in the contractual chain to receive payments due under the terms of their contract from party higher in the chain. Security of Payment gives statuary entitlement to the payment that a person entitled to receive or able to receive under the contract. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Process – in brief </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>If a dispute exists as to the money due to be paid, the Security of Payment Act (hereinafter called Act) provides for the appointment of an adjudicator to assess the monies to be paid, the due date for payment and any interest that may accrue. To be a quick and cheap process, the act provides a system called ‘Rapid adjudication’. The theme of the process is ‘pay now and argue later’. It is designed to promote speedier cash flow. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>The Claimant</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As per the Act, the organization or person making the claim is named as Claimant. The Claimant can make payment claim identifying the work done, and the amount claimed. In the claim, it is to be stated that such a claim is made under the Act.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>The Respondant</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The Respondent is the organization or the person who has to respond to a claim by way of paying money or defend it. The Respondent has to respond to a claim by providing a payment schedule. The time allowed is usually ten working or calendar days. In his reply, the Respondent should indicate the amount agreed to pay, reasons for any differences from the amount of the claim. If the Respondent feels that the claimant has no right to claim any amount shown in the claim, it should be shown under the ‘excluded amount’. The usual statutory time frame for payment is two days.  If payment is not produced or payment is not made within this time frame, the Respondent becomes liable for the full amount claimed. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the Claimant not satisfying with the payment schedule of the Respondent, he can initiate adjudication under the Act. For that, the claimant has to lodge an application with an Authorized Nominating Authority (ANA). The time period for this action is specified in the Act. The appointment of the Adjudicator takes a few days. After appointing, the Adjudicator must give his determination within ten working or calendar days. In the adjudication process, the Adjudicator decides whether the claim complies with the requirement of the Act, the value of the claim, and the date of payment. The Adjudicator’s decision is final and binding. Monies due under payment schedule or Adjudication can recover in a relevant court of Law as a debt owing to the Claimant. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Comparisons </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Several countries have already adopted the Security of Payment Legislation. Singapore and Malaysia are a few of them. Singapore enacted this system passing an Act called Building and Construction Industry Security of Payment Act 2004. The recent Act passed in Malaysia in 2012 named the Construction Industry Payment and Adjudication Act. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Both Acts clearly mention the objectives of Acts. It is to improve cash flow by helping to speed up payments in the building and construction industry. Both Acts specifically say it can apply only for written contracts. But the Act passed in Australia even allows payment disputes in oral contracts as well. In these two countries, it does not cover construction works in relation to residential in nature which intended for own occupation. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The Singaporean Act contains provisions invalidating “pay if paid” or “pay when paid” clauses of construction contracts. But, the Malaysian Act does not specifically mention clauses similar to above in a contract. The Act passed in Australia, also does not allow similar clauses in construction contracts. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Claiming procedure</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Both Acts in Singapore and Malaysia give the same procedure for forwarding a claim. First, unpaid party or the claimant may serve a payment claim on a non-paying party or respondent. The payment claim must be in writing. It should indicate the amount claimed and the due date for payment. All necessary information such as provisions in the contract, description of the work to which the payment relates must be informed. Specifically, it should be stated that the claim is made under the Act. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The Singapore Act says the respondent must respond within seven working days after serving the payment claim. While the Malaysian Act allows ten working days to serve on the unpaid party. The response must be in writing, addressing the claimant. It shall state the respondent’s proposal on how to make the payment, and if not agree, indicate as “nil”. Whether the respondent party agrees or does not agree to pay the claimed amount, he should reply within the time period. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>According to the Singapore Act, if the claimant does not receive a payment response by a stipulated date, the claimant or the respondent may try to settle the dispute with the other party within seven days. This seven day period is referred to as a dispute settlement period. Within this period, the claimant cannot initiate any adjudication. But according to the Malaysian Act, if there is no response, the un-paid party has the right to refer the dispute to adjudication. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Appointment of adjudicator</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In both Acts, the appointing authority named in the act appoints the adjudicator. The Singapore Act allows seven days to the respondent to respond after serving a copy of the claimant’s adjudication application. While in the Malaysian Act it allows ten working days. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In both cases, the adjudicator has the power to decide on the procedure which he is going to adopt. For example, it can be a document only procedure, a conference, or both. After serving the adjudicator\'s determination, the respondent must pay the adjudicated amount within seven days.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Both Acts mentioned that failure to pay the claimant may result in the suspension of work and may also file the adjudication determination as a judgment debt. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Conclusions </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Uninterrupted cash flow is a very important matter in the construction industry. It matters most when the industry depends on small and medium scale contractors providing services, sometimes even without any advance payments. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The experience outside Sri Lanka in relation to the use of legislative and other measures to enhance the Security of Payment found successful. It is high time to consider the application of Security of Payment system in Sri Lanka, thinking more for the betterment of the construction industry</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":6} -->\n<h6>Foot notes</h6>\n<!-- /wp:heading -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol style=\"font-size:13px\"><li>http://www.statistics.gov.lk/national_accounts/dcsna_r2/reports/2020.03.31/press_note_english.pdf </li><li>https://www.cbsl.gov.lk/sites/default/files/cbslweb_documents/publications/annual_report/2018/en/14_Appendix.pdf</li></ol>\n<!-- /wp:list -->', 'SECURITY OF PAYMENTS in Sri Lankan Construction Industry', 'According to Department of Census and Statistics of Sri Lanka, the construction industry has contributed highest share – 7.5 percent – within the industry sector in the year 2019. It grew by 4.0 percent during the year 2019, when compared to the year 20181. For Gross National Income (GNI), it was nearly one thousand billion SLR for the year 20182. It is more than twenty five percent of the GNI of the whole industrial sector. Therefore, any disruption in the process of the construction industry may destabilize the industry, thus giving a huge impact to the economy of the country.', 'publish', 'open', 'open', '', 'security-of-payments-in-sri-lankan-construction-industry', '', '', '2021-01-14 22:27:48', '2021-01-14 16:57:48', '', 0, 'https://civilengineeringlectures.com/2020/04/13/security-of-payments-in-sri-lankan-construction-industry/', 0, 'post', '', 0),
(74, 1, '2020-04-19 07:27:30', '2020-04-19 07:27:30', '<!-- wp:paragraph -->\n<p>Sale of Goods is the most common way on which ownership passes from one person to another. That is from a seller to a buyer. Since this is a contract, the law of contract would prevail generally. Additionally, there is a specific law – Sale of Goods Ordinance, no: 11 of 1896. This statute is a total reproduction of the English statute of Sale of Goods Act, 1893. However, the English statute radically changed during the last century. But Sri Lankan Ordinance remained almost unchanged. However, it had some effects due to the introduction of the Unfair Contract Terms Act, no: 26 of 1997. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>SALE OF GOODS ORDINANCE, No: 11 of 1896</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The Sale of Goods Ordinance, no: 11 of 1896 governs the sale of goods in Sri Lanka. Section 2 (1) of the above ordinance defines the sale of goods as a contract.  The Price is the money consideration by which the seller transfer or agrees to transfer the property in goods to the buyer. As per this definition, to fulfill the requirements, there should be a seller, buyer, goods, and price. Also, the property in goods must pass at the time of contract or on a future date. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>According to section 2 (3), if the property in goods is passed from the seller to the buyer at the time of forming the contract, it is called a sale. If the property in goods is to pass in the future, it is an agreement to sell. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The parties to the contract of sale of goods are free to incorporate any terms as they mutually agree. Expressed terms are the terms that are mutually agreed upon.  Implied terms are the terms that are operative by implication of law. They are not mutually agreed upon. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Conditions and Warranties,</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Terms of a contract can be divided as conditions and warranties, depending on the importance. As per section 12 (2), a condition is an important term of a contract. It goes to the root of the contract. The breach of the condition gives a right to reject the goods and treat the contract as repudiated. A stipulation may be a condition although it is called a warranty in the contract. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Warranty is a stipulation in a contract which is not so important as to go to the root of the contract. It is secondary to the main purpose of the contract. The breach of warranty gives rise to a claim for damages. But it does not give the right to reject goods and treat the contract as repudiated. The Sale of Goods Ordinance, no: 11 of 1896 implies several highly important conditions and warranties. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>IMPLIED TERMS IN SALE OF GOODS ORDINANCE, No: 11 of 1896 </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Through the operation of sections 13, 14, 15, and 16 of the Sale of Goods Ordinance, no: 11 of 1896, a number of conditions and warranties are implied in a contract of sale. These range from sale by description, fitness for the purpose, merchantable quality, and sale by sample. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, section 54 of the Ordinance allows the parties to contract out of the statutory implied terms. It says any right, duty or liability arising under a contract of sale by implication of law may be negatived or varied by the express agreement or by the course of dealing between the parties or by usage if the usage bind both parties to the contract. This shows the laissez-faire policy of the then government. But as far as for the government intervention to protect the innocent parties, this can be interpreted as a weak point in the Ordinance. This has happened due to the direct copying of section 55 of the English Sale of Goods act, 1893 into our ordinance. However, English courts later gave judgments against exemption clauses operated through this section. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4><em>Karsales (Harrow) Ltd v Wallis</em></h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In <em>Karsales (Harrow) Ltd v Wallis</em>[1], Lord Denning gave judgment against Strict Construction Rule. This rule says ‘the contract is intended to do what it says it will do and judges can only apply what the contract says within its own terms’. Lord Denning ruled against this since it would not be fair for both parties. Although English courts ensured that a party would not be able to fall back on an exemption clause to safeguard himself from the consequences of a breach so grave as to frustrate the commercial purpose of the contract, our ordinance was not changed up to now. But, section 7(a) and 8(a) of the Unfair Contract Terms Act, no. 26 of 1997 attempted to exclude or restrict the operation of sections 13, 14, 15, and 16 of the Sale of Goods Ordinance. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Section 14 – Correspondence with description </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Section 14 of the Ordinance says, if the contract for the sale of goods is by description, the implied condition is that the goods shall correspond with the description. Or, if the sale is by sample as well as by description, it is not sufficient that the bulk of the goods correspond with the sample if the goods do not correspond with the description. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The English courts\' approach to similar sections in the English act was very strict. They have interpreted the wording of the section leading to an insistence that any disconformity regarded as a violation under the section. In <em>Re Moore &amp; Co v Landauer &amp; Co</em>[2], the contract was for the sale of 3,100 tins of Australian canned fruit packed in cases of 30. When delivered, the tins were in cases of 24. However, the agreed overall number of tins was correct. But the Court of Appeal held that the buyer was entitled to reject the goods. It was on the ground of breach of correspondence with description. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In cases where a minute detail of the description has a bearing, this interpretation could be justified. For example, in the above case, if the need to have 30 tins to the pack was to re-sell without re-packing, non-conformity could be justified. But, if the tins were to be unpacked and placed on a self, non-conformance with the description would not be a justification to reject goods. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In some cases, even the breach itself may be little or no significance. The buyer can use section 14 to reject the goods without adequate justification. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For all intents and purposes, the statutory provision remains unchanged. Therefore, this section needs revision in order to prevent possible ill effects of the too strict interpretation of the wording. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Section 15 and 16 – Fitness for the purpose and Merchantable quality</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Section 15(2) imposes an implied condition that ‘where goods are bought by description from a seller who deals in goods of that description (whether he is the manufacturer or not) the goods shall be merchantable quality. But the ordinance does not offer a definition of the term merchantable. The original meaning of the merchantable quality is that one merchant buying from another would have regarded the good as suitable. Since there is an ambiguity, the wording must be changed. In the amended English Sale of Goods Act, the wordings were changed. It says that ‘the goods supplied under the contract are of satisfactory quality’. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In section 15(1) and 15(2) of our Ordinance, the condition of fitness for the purpose and merchantable quality is imposed on the ‘goods’. This leaves to interpret that anything supplied along with the goods does not come under the operation of this section. In <em>Geddling v March</em>[3], the plaintiff was seriously injured by the bursting of a bottle of lime juice. The defendant’s argument was that the bottle itself was not subject to the condition that it should be ‘reasonably fit for the purpose’. Also, they argued the bottle containing the juice given on a refundable deposit. Therefore it is not a good. However, the trial judge rejected these arguments in the appeal. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The similar wordings in the English Sale of Goods Act were later changed in the Supply of Goods (implied terms) Act, 1973 as ‘the goods supplied under the contract of sale’. Therefore it clearly implies the condition of fitness for purpose and quality applies not only to the goods agreed to. In addition, it implies all that supplied in the performance of the contract, which includes containers, etc. The wordings in our Ordinance also must have similar changes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Silence on disclosed defects </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Section 15 or Section 16 does not address a situation where the seller might have disclosed a particular defect or defects to the buyer. This could lead to a situation where the buyer buys goods knowingly about defects as informed by the seller. And later, the buyer seeks protection under section 15 or 16. This situation can be overcome by adding a clause. It should say ‘the implied terms as to quality and fitness for purpose will not extend to any matter that makes the goods unsatisfactory if such defects have been specifically drawn to the buyer’s attention prior to the making of the contract’. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Examination by the buyer </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The proviso to Section 15(2) says there shall be no implied condition for merchantable quality if the buyer has examined the goods. In the Thornett &amp; Fehr v Beers &amp; Son[4], defendants having cursory inspection outside of barrels containing glue were satisfied with the quality of glue. But, defendants subsequently discovered that glue was defective. This situation could be avoided if they had a proper inspection of barrels. Therefore, the wording of ‘inspection’ should be replaced with ‘proper inspection’. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>CONCLUSION </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The Sale of Goods Ordinance, no. 11 of 1896 is now nearly 120 years old. It is unfair to expect legislators of 120 years ago to foresee all the possible permutations and combinations that can arise then and now to answer the difficulties highlighted above. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, problem arisen in the United Kingdom was solved by way of case laws and by reforming the original act. However, our Ordinance survived intact nearly 120 years. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The needs, society, and way of transactions have changed drastically compared to the society that existed a century ago. So, a new statute must be enacted considering the shortcomings mentioned above and also to fulfill the present-day needs of the society.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":5} -->\n<h5>Foot note</h5>\n<!-- /wp:heading -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol><li>(1956) 2 A11 ER </li><li>(1921) 1 KB 73  </li><li>(1920) 1 KB 68  </li><li>(1919) 1 KB 486</li></ol>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->', 'SALE OF GOODS – IMPLIED CONDITIONS – Sri Lanka', 'Sale of Goods is the most common way on which ownership passes from one person to another, that is from seller to buyer. Since this is a contract, law of contract would prevail generally. Additionally, there is a specific law – Sale of Goods Ordinance, no: 11 of 1896.', 'publish', 'open', 'open', '', 'sale-of-goods-implied-conditions-sri-lanka', '', '', '2021-01-14 22:26:24', '2021-01-14 16:56:24', '', 0, 'https://civilengineeringlectures.com/2020/04/19/sale-of-goods-implied-conditions-sri-lanka/', 0, 'post', '', 4);
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(81, 1, '2020-04-26 05:31:37', '2020-04-26 05:31:37', '<!-- wp:heading -->\n<h2>Introduction </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The construction sector in Sri Lanka has tremendously grown in the recent past. It has developed into an important sector of the national economy. However, the occurrence of accidents (eg: due to electricity) is higher in the construction industry when compared to other industries. Accidents result in heavy loss of time, money, and other resources. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>According to Annual Reports of the Central Bank of Sri Lanka, the construction industry is growing at an increasing rate. But, the number of fatal accidents is also increasing at a higher rate than that. It clearly shows that there is a lack of attention to health and safety aspects with the progress of the industry. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Accidents of work </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Accidents are unplanned and uncontrolled events. In terms of operational probability, it is a class of events that incur a low level of expectancy, avoidability, and intention (Laufer &amp; Ledbetter, 1997)[1]. The term Accident has been defined by Laney (1982)[2] as an uncontrollable occurrence that results in injuries or damages. Combining above and other definitions, an accident is an unexpected, unplanned, unforeseen, event in a sequence of events. It occurs through a combination of causes. For instance, it may be due to substandard conditions and/or substandard acts. It may result in an interruption of work, physical harm such as injury or disease to a person or persons, damage to property, a near-miss, or any combination of these effects. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Impact of accidents</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Construction worker injuries have broad and adverse impacts. It includes personal suffering of the injured worker. In addition, it causes construction delays and productivity losses incurred by the construction contractor. And it may cause higher insurance premiums that result from costly injuries and possible liability suits involved in the project. There are other impacts such as revenue losses for the owner of the project due to late project delivery, reduced morale of the workforce, etc. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A research carried out on Construction Accidents in Sri Lanka shows electrocution and exposures to harmful substances are considered to be significant causes for fatal accidents following falls[3]. It further states major causes of electrocution are direct contact with live wires, ladders contact with power lines, crane boom contact with power lines, and materials hit with power lines.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Electricity as Energy Source at Construction Sites </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Electricity is the most used energy source to power machinery, equipment, tools, office equipment, and illumination at construction sites. We normally cannot see, smell, taste, feel or hear electricity when safely contained in an insulated conductor. It powers an endless list of laborsaving appliances and life-enhancing and support systems that have become such an assumed part of our lives. Therefore we give little thought to its potential for causing harm. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Whenever we work with power tools or electrical circuits, there is a risk of electrical hazards, especially electrical shock. Anyone can expose to these hazards at work. Worksites are cluttered with tools and materials, fast-paced, and open to the weather. Therefore workers are exposed to more hazards. Risk is also higher at work because many jobs involve electric power tools. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Coming in contact with an electrical voltage can cause current to flow through the body. It results in electrical shock and burns. Serious injury or even death may occur. As a source of energy, we use electricity without much thought about the hazards it can cause. Electricity is a familiar part of our lives. Therefore often do not treat it with enough caution.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Is Electricity a major source of accidents at Construction Sites? </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>To prove anything, we must have records and data. Maintaining and analyzing accident data is very useful in proving the source of accident, frequency, and severity. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are many formats to display safety performance in the workplace. Some examples are the safety tree, the safety green cross, etc.  Most commonly used safety performance charts display information such as today’s date, the last date of occurrence of the lost time accident (LTA), count of LTA free working days thereafter, the maximum count of LTA free working days achieved without interruption by a LTA. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, this does not display the cause of the accident. Parallel with the above safety performance display, we have to maintain a separate Accident Register with additional information and have to update this register in parallel with the preparation of the incident investigation report. There should be a separate column in the accident register to show the Cause of Accident. After some predetermined time period, we have to analyze the data to see the effect of electrical energy as a source of accidents at a worksite and can use a very simple calculation for this purpose. Calculating the percentage of accidents due to electrical energy versus total accidents occurred during that particular period will gives an idea about the effect of electrical energy as a source of accidents at a worksite.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Practical Methods to reduce accidents as a result of Electricity </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In order to control accidents due to electricity, first, we have to create a safe work environment. Then we have to introduce how to work in a safe manner. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Safe work environment</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We can create a safe work environment by controlling contact with electrical voltages and the currents they can cause. A safe work environment reduces the chance of fires, burns, and falls. We have to guard against contact with electrical voltages and control electrical currents in order to create a safe work environment. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Simple practice such as turning off the power supply before working on a circuit creates a safe working environment. Then we have to lock the switchgear. Then none can turn back power on inadvertently. It is better to tag out the circuit with an easy-to-see sign or label. It lets everyone know that somebody is working on the circuit. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Selecting correct type</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Most of the time at our worksites, we use the wrong size or type of wire. We have to select the right size wire for the amount of current expected in a circuit. The wire must be able to handle the current safely. The wire’s insulation must be appropriate for the voltage. And it must be tough enough for the environment. But at the worksite, frequently workers use wires whatever available at the site. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Also, connections need to be reliable and protected. Electrical cords supplement fixed wiring. It provides the flexibility required for maintenance, portability, isolation from vibration, and emergency and temporary power needs. We can use flexible wiring for extension cords or power supply cords. Power supply cords are removable or permanently attach to the appliance. The size of the wire in an extension cord must be compatible with the amount of current the cord expected to carry. The amount of current depends on the equipment plugged into the extension cord. In addition, we have to fix wires firmly to socket outlets with suitable plug tops. Our construction workers\' usual practice is to loosely fix flexible wires to socket outlets. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Training of Workers</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A safe work environment is not enough to control all accidents as a result of electricity. Workers must have the training and need to work safely. Safe work practices help a worker to control the risk of injury or death from an electrical accident. And workers must wear personal protective equipment. There are many types of PPE. It includes rubber gloves, insulating shoes, boots, face shields, safety glasses, hard hats, etc. Workers must wear protective footwear when there is a risk of electrical hazards present. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Other than practical methods to reduce accidents due to electricity, it is very important to have a safety program policy for the organization. The policy should cover the responsibilities of all employees. That includes supervisors, employees, and the specialists who inspect, install, and maintain the electrical systems and equipment. The policy should stress management’s concern and support. Individuals who are responsible for applying and enforcing the electrical policy should have standards of performance that include a periodic assessment of their electrical safety performance. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Basic areas of safety program</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In addition to policy and implementation procedures, the electrical safety program should include four basic areas such as training and education, hazardous condition reporting, work practices, and housekeeping. All employees must be responsible for being aware of and reporting unsafe electrical equipment. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>All workers should be trained to assist in discharging the electrical safety program responsibilities for their specific areas. If a worker use, install, repair, or modify electrical equipment and/or appliances, the supervisor must ensure that they have received the proper training. The supervisor should also monitor the worker and assess their performance against the established facility safety program policy. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Reporting of electrical hazards</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A written procedure promoting the observation and reporting of electrical hazards should be implemented. Also, have to include an employee recognition program in conjunction with the hazard reporting program. Employees who help to locate electrical hazards must be recognized. It will help in ensuring the elimination of hazards in a timely manner. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A supervisor who handles a work gang must ensure that his workers follow safe work practices. Workers should be rated on their performance in following safe work practices. Areas around electrical equipment, such as circuit breaker panels, disconnects, and fixed power tools, should be kept free from stored items, debris, and any liquids or material that would create slippery floors or obstruct access to the equipment for maintenance or emergencies. When hazards of this nature are reported, it should be recorded. Then we have to issue necessary work orders for corrective actions.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>All workers who employed to use electrical equipment should be trained in electrical safety work practices and equipment operation. Any changes in job duties will require additional safety training. The causes of many accidents are workers\' lack of knowledge of the equipment or its operation. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Workers should always report unsafe equipment, conditions, or procedures. Repairing equipment should receive top priority, even if that means rescheduling a process or project. Under no condition, defective electrical equipment causing electrical shock shall not be used.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>How to assess the results of recommendations / Suggestions </h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The Management Guru Peter Drucker once said “You can\'t manage what you can\'t measure”. Therefore to find out where we are going, we have to always assess our results. It shows whether we are in the correct path or deviated. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The primary task of assessing results is creating a path to receive information on the progress and current status. This information must be accurate and complete. They must be enough to analyze how the electrical hazard management system operates in practice. It must identify areas where remedial action is necessary for continual improvement. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Implementation of accident investigation system</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We have to implement an accident investigation system under a responsible person in the organization. The investigation officer should have a thorough knowledge of the processes, materials, machinery, equipment, etc., in the organization. He should have a very good knowledge of the safety performance procedures. For example, when investigating an accident due to electricity, he must have thorough knowledge about the safety practices followed by the workers. The person investigating should question himself and find a solution whether substandard or unsafe conditions created the situation. Or whether a substandard or unsafe act created the situation. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In his recommendations, he has to compare whether there are any variances with the given instructions that have created a particular accident. If so he has to recommend new procedures/act. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Likewise, periodically we have to analyze after every accident and find out any practical deficiencies in suggested methods. Statistical methods such as Injury Frequency Rate (IFR), Injury Severity Rate (ISR) or Sickness Absence Rate (SAR), etc., can be used to compare improvement/deficiencies in above suggested Electrical Accident Preventive Systems.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>References</h4>\n<!-- /wp:heading -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol><li>Laufer, A., Ledbetter, W.B., (1997), <em>Assessment of Safety Performance Measure at Construction Sites</em>, The Journal of Construction Engineers, 112 (4), pp 530 – 541. </li><li>Laney, Z.C., (1982), <em>Site Safety</em>, 1st Edition, Longman Inc, New York. </li><li>Rameezdeen, R., Pathirage, C., Weerasooriya, S., <em>Study of Construction Accidents in Sri Lanka</em>, Built Environment – Sri Lanka – Vol 04, Issue 01:2003</li></ol>\n<!-- /wp:list -->', 'ELECTRICITY – IS IT A SOURCE OF ACCIDENTS AT CONSTRUCTION SITES?', 'Electricity is the mostly used energy source to power machinery, equipment, tools, office equipment and illumination at building construction sites.', 'publish', 'open', 'open', '', 'electricity-is-it-a-source-of-accidents-at-construction-sites', '', '', '2021-01-14 22:25:10', '2021-01-14 16:55:10', '', 0, 'https://civilengineeringlectures.com/2020/04/26/electricity-is-it-a-source-of-accidents-at-construction-sites/', 0, 'post', '', 0),
(464, 1, '2020-06-18 11:51:02', '2020-06-18 11:51:02', '<!-- wp:heading -->\n<h2>What are preliminaries?</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><br>Preliminaries are works involved in administering a project and providing site-based services and general plant facilities. Section A of SMM7 covers these items. These relate to the contract as a whole. In addition, these are not confined to any particular work section. Similarly, it is shown in Section B of the SLS573:1999. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Providing these in a separate bill, the contractor has the opportunity to price them independent of unit rates. Accordingly, any costs included in the preliminary items shall not include again in the unit rates. <em>Overheads are the cost</em> component <em>in the unit rates for support activities, such as site or head office staff or temporary</em> <em>workshops. These are not covered by specific items in the Bills of Quantities.</em> Thus, contractually speaking, preliminaries and OH &amp; P are different items. Therefore, the Contractor is not supposed to include the cost of preliminaries in unit rates.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The Preliminaries section of the tender documentation fulfills a number of functions from the estimator\'s point of view. It provides a high-level overview of the project. For instance, it includes a description of the project, the detail of the site, details of the conditions of the contract, Employer‟s requirements, Contractor‟s general cost items, etc.<br></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Items included under preliminaries</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In the Preliminary bill, following items of temporary works, which are not represented in the permanent work items, are included as necessary.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol><li>Project Particulars</li><li>Drawings</li><li>Site and Access</li><li>Description of the Works</li><li>Insurances and Bonds</li><li>Supervision / staffing/ site management</li><li>Safety / health / welfare</li><li>Scaffolding</li><li>Safeguarding the work</li><li>Water for works</li><li>Lighting &amp; power</li><li>Temporary roads</li><li>Site accommodations</li><li>Temporary fences, hoardings</li><li>Name board</li><li>Setting out, surveying, testing, etc.</li></ol>\n<!-- /wp:list -->\n\n<!-- wp:heading -->\n<h2>Pricing preliminaries</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>There are large numbers of items under preliminaries. However, we cannot exactly price the cost of all of them. Therefore, we consider major costs which include staff, contractor‟s equipment, access roads, scaffolding, site accommodation,<br>temporary supplies, cleaning, etc. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Pricing preliminaries is generally one of the last operations before adjudication of the tender price. <em>The process of converting an estimate into a tender is usually termed as ‘tender adjudication’</em>. A decision on working methods, major equipment, gang strengths, subcontractors, temporary works such as scaffolding, roads, hutting, etc., and the proposed construction program have all been identified when pricing preliminaries.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This will indicate any need for overtime or out-of-sequence working to meet the contract completion date. It may identify the costs of any potential liquidated damages that need to be included in the tender sum. It will also allow assessment of any provision for cost fluctuations in the case of a fixed price tender.<br>Individual contractors have their own checklist of items to assist the estimator in calculating site overheads.<br></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Fixed and time-related charges</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Main components of a preliminary item are as follows:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>Fixed charges - the cost of which is to be independent of duration. That is to say, charges those are not proportional either to the quantity of the work or its duration.</li><li>Time-related charges - the cost of which is to be dependent on duration. That is to say, charges that are directly proportional to either the quantity of the work or its duration.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading -->\n<h2>How to analyze a preliminary item</h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Example 1 – Temporary Accommodation</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The contractor shall provide suitable accommodation for the clerk of works, with a minimum floor area of 20 m2 including desk, four chairs, filing cabinet and all necessary air conditioning, lighting and<br>cleaning.<br>In this case, contractor decides to use container hut converted as an office.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Data</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Contract period: 144 weeks, Transport of container to and from site: Rs: 15,000.00 per trip, Hire of container hut: Rs: 3,000.00 per week, Hire of furniture, etc.: Rs: 500.00 per week</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Fixed charges</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Transport to and from site 2 trips × Rs: 15,000                      = 30,000.00<br>Erection 10 hours &amp; Dismantle 5 hours of unskilled labor<br>       15 hours laborer @ Rs: 1,500                                              = 22,500.00<br><strong>Total of fixed charges </strong>                                                              =  <strong>52,500.00</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Time related charges</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Hire of hut 144 weeks @ Rs: 3,000 per week                          = 432,000.00<br>Furniture and other 144 weeks @ Rs: 500 per week            =    72,000.00<br>Cleaning – 2 hours per week × 144 weeks<br>         288 hours @ Rs: 125                                                            =    36,000.00<br><strong>Total of time related charges                                                 = 540,000.00<br>Total (fixed and time related charges)                               = 592,500.00</strong><br></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Example 2 – Site Fencing</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The contractor is to allow for enclosing all boundaries of the site. It shall be the contractor‟s responsibility to provide all necessary precautions, protection and security to safeguard the works using fences, hoardings, gates, etc. as considered necessary.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Data</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Contract period: 144 weeks<br>Fencing<br>Fixed charges; erection and taking down                                  = 20,000.00<br>50 metres of solid fencing; 1.8 metres high @ Rs: 300.00 / m = 10,000.00<br>1 pair gates and security                                                                = 5,000.00                                 </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>                                                                                                             =           <strong>35,000.00</strong><br>Maintenance and repairs<br>1 hour per week labourer × 144 weeks @ Rs: 125                     =          <strong>18,000.00</strong><br>Total                                                                                                    =          <strong>53.000.00</strong><br></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Payments for preliminaries in interim bills</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>There is no specific contract provision governing how to pay for preliminaries.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4><strong>1st method</strong> - Time Related</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Some consultants pay for preliminaries in Interim bills considering the total contract time. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Example:           Total Contract Value                                          = Rs: 1,000,000.00<br>                            Preliminaries                                                      = Rs: 200,000.00<br>                            Permanent Works                                              = Rs: 800,000.00<br>                           Contract Period                                                    = 05 months<br>In each interim bill add Rs: 200,000.00 / 5 = Rs: 40,000.00 to the value of completed permanent works to arrive the total bill value.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>2nd <strong>method</strong> - Work Related</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Some consultants pay for preliminaries in Interim bills calculating a proportionate value to the value of permanent works completed up to that interim bill. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Example:           Total Contract Value                                          = Rs: 1,000,000.00<br>                            Preliminaries                                                      = Rs: 200,000.00<br>                            Permanent Works                                              = Rs: 800,000.00<br>                            Contract Period                                                   = 05 months<br>Value of permanent works completed up to 3rd Interim bill = Rs: 400,000.00<br>Add Rs: (400,000.00 x Rs: 200,000.00)/ Rs: 800,000.00 = Rs: 100,000.00 to the value of completed permanent works to arrive the total bill value.<br></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>3rd <strong>method - Reasonable Method</strong></h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>However, in both methods mentioned above, contractors do not get money immediately after they have completed the particular preliminary item.<br>Therefore consultants prefer to obtain the exact time of expenditure from the Contractor and pay accordingly.<br>As per Clause 27.1 of the ICTAD / SBD / 01, the contractor has to submit a work program showing the timing of all the activities in the B.O.Q. for the approval of the Engineer. At that time, the Contractor can submit when he plans to carry out items mentioned in the preliminary bill. After obtaining approval for the work program from the Engineer, the Contractor can include his actual expenditure of preliminary bill items into the respective Interim bill.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><br>ICTAD Publication no: ICTAD / ID / 04 – Guidelines for the preparation of Bill no. 1 – Preliminaries for Building Works suggest how to pay for preliminaries in interim valuations. If the Engineer includes a payment scheme in the Contract Document, contracting parties can follow it during the post-contract period. For example, it suggests paying 60% on completion of the structure, 30% in equal installments during the contract period, and balance 10% on dismantling and removal on completion for <em>Temporary</em> <em>Office Facilities for Engineer</em>.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Case Law</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Should a contractor allow for preliminaries associated with the expenditure of provisional sums in tendering or will they be paid as an extra in the final account</strong>?<strong> </strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>St Modwen Developments Ltd v Bowmer and Kirkland Ltd (1996)</strong><br>A dispute arose as to whether the contractor was to include extra in his price for profit and the costs of attendance on the subcontractors. The word “inc” was inserted in the Bill of Quantities alongside the item. Accordingly, The contractor contended that “inc” meant that the profit and attendance were included in the Provisional Sum and claimed that he would be entitled to the profit and attendance separately. After that, the matter was referred to arbitration and the contractor was successful. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The High Court heard the appeal against the arbitrator\'s award.  And the High Court judge also supported the Arbitrator\'s award. In addition, the judgment stated that “therefore in the same way that a contractor would not be in a position to know and therefore the price for the preliminaries of the type referred to in SMM6 in respect of a provisional sum for, say contingencies, BK in these circumstances are not deemed to have allowed for such preliminaries in their tender.”</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->', 'PRELIMINARIES', 'Preliminaries are works involved in administering a project and providing site based services and general plant facilities. Section A of SMM7 covers these items which relate to the contract as a whole and are not confined to any particular work section.', 'publish', 'open', 'open', '', 'preliminaries', '', '', '2021-01-14 22:24:17', '2021-01-14 16:54:17', '', 0, 'https://civilengineeringlectures.com/2020/06/18/preliminaries/', 0, 'post', '', 0),
(529, 1, '2020-06-20 12:35:41', '2020-06-20 12:35:41', '<!-- wp:paragraph -->\n<p>In the commercial world, parties enter into contracts with each other for various reasons. For example, in the construction industry, parties such as clients and contractors enter into a contract for the construction of an infrastructure needed by the client. In these contracts, disputes between the parties are very common. Therefore, one can say, disputes have close<br>relationship with contracts.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Conflict resolution was familiar with the Sri Lankan culture for a long time even before foreign dominance. Today Alternate Dispute Resolution (ADR) methods like mediation, conciliation, and adjudication are becoming more popular and effective. One reason for this popularity is the long delays associated with the court system[1].</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In the construction industry also, disputes are unavoidable. This is mainly due to the complexity and involvement of various parties at different levels. Sri Lanka and most of the other countries in the world have diverted from litigation to ADR methods to resolve their differences in construction disputes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why negotiations?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Negotiation is the most cost-efficient method to resolve a construction dispute as it is informal. In addition, it is speedy and non-complex in nature (Ren et al. 2003)[2]. It is the basic level of a resolution of a dispute depending on the involvement of the parties to the dispute. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In mediation also party involvement is present. However, it is assisted by a neutral third party. In higher forms of ADR methods and in litigations, the decisions are imposed on the parties. Most of the present-day contract documents include ADR methods such as negotiations, mediations, adjudication, or arbitration for settlement of disputes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It is better for all to resolve differences at basic levels. It helps to save time, money, and the other main important thing. In addition, it preserves the cordiality among the parties. Therefore, it is essential to improve the skills necessary to compromise and finish disputes with a win-win situation.<br>Due to the dynamic nature of conflict level, construction practitioners should develop their skills to avoid dispute. If disputes materialize in an unavoidable situation, they must have skills to resolve them amicably.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>NEGOTIATIONS STYLES / APPROACHES</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>There are different schools of thought regarding negotiation styles and approaches. In one method, five types of negotiation styles have been identified. Those styles are named Integrating, Obliging, Dominating, Compromising, and Avoiding. However, in a practical scenario, most of the time, negotiators apply complex styles purely depending on the situation.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Integrating</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In this style, the negotiator collaborates with the opposing party to come up with a decision acceptable to both. All concerns are taken together and issues tried to be solved in the best possible way. Nothing is hidden from the opponent and accurate information exchanged with the aim of arriving at a solution acceptable to all. Finally, the outcome results in satisfaction<br>for both parties. This situation is popularly known as a win-win situation. Through this approach, parties always try to develop a joint outcome. It is sometimes called “expand the pie”, to gain more for both parties.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Obliging</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In this style, the negotiator tries to satisfy the expectations and needs of the other accommodating wishes of the other. Negotiator always tries to go along with the wishes of the other giving in and allowing concessions. It is also known as an accommodating approach. These are the types who enjoy solving the other’s problems while maintaining personal relationships.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Dominating</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Here, the negotiator uses his authority to make a decision in his favor, influencing to accept his ideas to the other party. The negotiator is firm in pursuing his side of the issue. Negotiator uses his expertise to make a decision in his favor. This is a win-lose approach. This approach is based on the basis that one person can win only at the expense of the other. Negotiator seeks<br>to gain advantage through concealing information, misleading, or using manipulative actions. This method has serious potential for negative consequences.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Compromising</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Here, the negotiator tries to find a middle course to resolve an impasse. Patiently negotiate with the other so that compromise can be reached, using the “give and take” tactic. This approach provides an outcome which is some improvement over the lose-lose outcome. To avoid a lose-lose situation, both parties give up a part of what they had originally sought and settle for something less than that. A compromise is the best way out when it is impossible for both parties to convince each other. Similarly, it is better when dealing with limited disputed resources. This type is best suited when the opposite party can be trusted. Parties that value fair and equal deals in negotiation tend to prefer the compromising style. This style tends to get fast results from a<br>negotiation. The solutions are often partially satisfactory to both parties but completely satisfactory to neither.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Avoiding</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Persons who like to stay away from disagreement with the other uses this strategy. When negotiating, avoiders tend to avoid the confrontational aspects of negotiating. Sometimes these kinds of negotiators are perceived as tactful and diplomatic. However, the outcome of this type of negotiator will not be satisfactory for both parties.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>SKILLS OF NEGOTIATORS</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Skill is proficiency or ability developed through continuous training or experience in the relevant field. Like in any other profession, to be a successful negotiator, he must learn and develop skills necessary for negotiations.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Every negotiation situation is unique and depends upon the personalities of the parties involved. Possessing effective negotiation skills greatly improves the chances of walking away with better results more often. In common with many other skills, such as public speaking, for example, those which make for effective negotiation are typically not natural talents that we are born with, but rather are learned and practiced.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Planning skill</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A negotiator should thoroughly study the case and prepare for the debate before entering a bargaining process. The negotiator must decide first the goals he has to achieve. If the negotiator cannot achieve pre-determined goals, he should have another plan and he must have the bottom line to be accepted. He should well-read about the case, study the history of the relationship between the parties, previous negotiations had, and their outcomes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Communication skill</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Communication skill is very essential for a negotiator. He should have the ability to transfer what he intended to get to the other side in a very convincing way. It should be clear and effective.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Problem Analysis and Decision Making ability</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A good negotiator should have the skill to analyze the problem quickly and take the decision needed. It is much better if the negotiator has the authority to make decisions. However, he should have the ability to quickly understand the situation and take the optimum decision without delay. A detailed problem analysis identifies the issue, the interested parties, and the outcome needed. Identifying the issues for both sides can help to find a compromise for all parties.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Active Listening</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The negotiator should be a good listener. Sometimes problems may be solved only listening to the grievances of the other side. Active listening involves the ability to read body language as well as verbal communication. Carefully listening to the other party, the negotiator can understand what the other party actually wants and the area they like to compromise.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Emotional Control</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>At no point during the negotiation, the negotiator should show his feelings. It is very important that the negotiator has the ability to keep his emotions to himself. During a frustrating negotiation, allowing emotions to take control during the meeting will definitely lead to unfavorable results. Similarly, the negotiator must control the anger during the whole process of negotiation.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Time management</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A negotiator should have the ability to work according to the pre-agreed time scale. For instance, if the process drags to a longer period, parties’ interest in resolving the dispute through negotiation may reduce. Dragging the process will waste the time of the party members and thereby it will be a cost to both parties. Therefore negotiators should be able to manage the time and conclude the dispute within the shortest time possible.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Interpersonal Skills</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Effective negotiators should have the interpersonal skills to maintain a good working relationship with those involved in the negotiation. Negotiators with patience and the ability to persuade others without using force can maintain a positive atmosphere during a difficult negotiation.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Ethics and Reliability</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Ethical standards and reliability in an effective negotiator promote a trusting environment for negotiations. It will help to build trust between parties. A negotiator must have the skills to execute on his promises after bargaining ends.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Education / Experience / Professional practice</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Negotiators should be knowledgeable about the subject area of the dispute. If the dispute is on a construction claim, the negotiator must have the required skill to understand a claim. Not only his educational background but experience and professional practice will count in these<br>areas.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>PROFESSION AND REQUIRED SKILLS</h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Skills required by Project Manager to resolve Disputes through negotiation</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Project Manager has a leading role in the success of the project. He should complete the project in time, within cost and within quality parameters, and to the satisfaction of stakeholders. To achieve the target Project Manager should be a very good leader. other than that, he should have the managerial skills blended with the skill of team player. He must be a good<br>communicator, negotiator, and a guide. To manage day-to-day activities free from problems, not only he be a good negotiator, he must have the talent to identify a problem before it initiates.<br>The following list illustrates the common skills required for a Project Manager in resolving disputes by negotiation.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Common Skills</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Leadership</em></strong> – this is the ability to take the team towards the goals.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Decision making in a timely manner</em></strong> - Project Manager should be able to discuss with others, gather information, and take correct decisions effectively. Most of the project\'s success happened due to the correct decisions.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Problem-solving</em></strong>  – this ability will go in hand in hand with the above skill. To make a correct decision, the Project Manager must first understand the situation, solve the problem and then the decision must be taken.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Time Management</em></strong> – the Project Manager must have the ability to handle multiple tasks simultaneously. For instance, if any work delayed, he must find the reason, quickly take a decision, and the problem must be solved.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Ability to Communicate</em></strong> - The ability to convey orders, knowledge, ideas, and concepts through oral, written, and any other means.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Critical thinking </em></strong>- The ability to assess the strengths and weaknesses of possible alternative solutions, conclusions, or approaches to problems using logic and reasoning.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Trust building</em></strong> - The activity of developing trust between people so that they can work more effectively.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><em>Persuasion -</em></strong> The ability to motivate others to change their minds or behavior</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":5} -->\n<h5>Foot note</h5>\n<!-- /wp:heading -->\n\n<!-- wp:list {\"ordered\":true} -->\n<ol><li>www.sundaytimes.lk/060402/ft/22.html</li><li>Ren, Z., Anumba, C. J. and Ugwu, O. O. (2003). The development of multi-agent system for construction claims negotiation. Advances in Engineering Software, 34(11-12), 683-696.</li></ol>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->', 'SKILLS OF NEGOTIATIONS', 'Negotiation is the most cost efficient method to resolve construction dispute as it is informal. In addition, it is speedy and non-complex in nature.', 'publish', 'open', 'open', '', 'skills-of-negotiations', '', '', '2021-01-14 22:23:14', '2021-01-14 16:53:14', '', 0, 'https://civilengineeringlectures.com/2020/06/20/skills-of-negotiations/', 0, 'post', '', 0);
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(579, 1, '2020-07-06 11:06:45', '2020-07-06 11:06:45', '<!-- wp:paragraph -->\n<p>A Quantity Surveyor is a construction professional. His main expertise is primarily to carry out an estimate, project cost control, and quantity take-off. His duties include commercial, risk, and contract management to ensure that the party he works for receives the best value for money. In addition, it is his duty to allow for a smooth project flow from inception to completion.<br></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Construction cost, construction management, and construction communications are all key problem areas for a client who commissions an important building or engineering project. A quantity surveyor is professionally qualified, trained, and experienced in dealing with these problems. In other words, he is essentially a cost expert. Therefore, his prime task is to ensure that the cost of the project to lie within the agreed budget. Also, he is responsible for obtaining value for money for the employer’s expenditure.<br></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Some of the services he offers are preliminary cost advice and cost planning, preparation of bid documents, advice on the type of contract and method of obtaining bids. In addition, he negotiates with contractors and prepares valuations of work in progress and settlement of the final account.<br></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, he will at all times need to collaborate very closely with the consultant.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Range of services which Quantity Surveyor can offer:</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>a) Feasibility studies.<br>b) Procurement procedure.<br>c) Budget Estimating.<br>d) Cost vs. Design comparison.<br>e) Contractual procedure.<br>f) Value advise.<br>g) Preparation of Bill of Quantities.<br>h) Bid evaluation and reporting.<br>i) Site re-measurements.<br>j) Rate negotiation.<br>k) Checking of monthly payments and final accounts.<br>l) Financial reporting and cash flow projections.<br>m) Claims assessment and negotiations.<br>n) Advice on and participation in arbitration.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Role of the Quantity Surveyor</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As building work increased in volume and complexity, clients became dissatisfied with the methods adopted for settling the cost of the work. As a result, they recognized the advantage of employing an independent quantity surveyor to look into these matters.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In the beginning, the quantity surveyor prepares an accurate bill of quantities. After that, he forwards it to all bidding contractors for pricing. Then he would measure and value all works including any variations that might occur during the progress of the works and settle the final claim.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Another role of the quantity surveyor is to ensure the resources of the construction industry are utilized to the best advantage of society. He does this by providing, the financial management for projects and cost<br>consultancy services to clients and designers during the whole construction process.<br>The following describes the Role of the Quantity Surveyor in detail.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Preliminary Cost Advice</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>From the inception of a new building project, the quantity surveyor has to give practical advice on the likely cost of the scheme. In addition, he may advise on the comparative costs of alternative layouts, materials, components, and methods of construction. He can also assess how long it will take to build and can produce estimates of future maintenance and operating costs. After finishing the client’s brief, the quantity surveyor can prepare a realistic budget and a cost plan. In addition, he can show the distribution of costs over the various elements.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Cost Planning</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Cost planning aims to help all members of the design team to arrive jointly at practical and efficient designs for the project and to keep within the budget. In other words, effective cost planning will help to ensure that everything follows in accordance with the estimate, from the successful contractor’s tender to the final project cost.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the client decides to change his plans and introduce variations, the quantity surveyor will assess the cost implication of those variations. For instance, with constant monitoring, the risk of overspending can be seen at an early stage. Then prompt corrective action can be taken to guide the project on to the correct path.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Cooperation between Consultant and Quantity Surveyor – for cost planning</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The quantity surveyor acts as a specialist adviser to the consultant on all matters concerned with building cost. He offers considerable assistance to the consultant in advising on the financial effect of the design proposal. Above all, it helps in ensuring that the money available is put to the best possible use and that final costs are kept within the agreed budget.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Where the estimated cost of an element exceeds the cost target, then either the element must be redesigned or other cost targets reduced. Where a number of design elements would have to be adjusted to keep costs within the total cost limit, then this would result in a building of undesirably low quality.  If so, the design team should request additional funds from the employer.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Contractual Method</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The number of contractual procedures has evolved from competitive bids, as the traditional method, to negotiated tenders with a single contractor and “design and build” contracts where contractors accept to design and<br>construct the whole project. The quantity surveyor can advise on the best form of contract for a specific project.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Bidding</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Competitive bidding, often from a selected list of contractors, remains a common basis for construction contracts. Bills of quantities are fundamental to this process.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Bills of quantities translate the drawings, schedules, and specification notes into a document listing in detail all the component parts required for the project. In addition, this enables each contractor to calculate his bid price on exactly the same basis as his competitors. However, in the absence of such a bill being prepared on behalf of the client, each contractor will have to prepare his own quantities in the limited amount of time allowed for bidding.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Choice of Contractor</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The quantity surveyor provides sound and practical advice on contractor selection. The quantity surveyor will take factors such as industrial relation record, past performance, into account in making recommendations to the client on the makeup of the selected list.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Valuation of construction works</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In most construction contracts, the contractor can submit claims monthly. The quantity surveyor will value the work carried out during each month on the project and submit a recommendation for certified payment. He will also settle the final account and prepare financial statements for the client.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It is important to ensure that any variations, claims, or extras do not raise the likely final account figure above the cost limit. It is necessary to monitor the financial effect of variations. And these should be costed by the quantity surveyor before they are issued.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Role of the Quantity Surveyor in the public and private Sectors</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In both the public and private sectors, the quantity surveyor is a member of the design team. The quantity surveyor gives advice to the client and the consultant on the probable costs of alternative designs.<br>This advice enables design and construction at all stages to be controlled within predetermined limits of expenditure.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>He prepares bills of quantities and negotiates with contractors, prepares forecast of final costs and valuation for payments to the contractor as work proceeds.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>He is responsible for the measurement and valuation of variations in the work during the contract and for the preparation and agreement of the contractor’s final account.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Role of the Quantity Surveyor in the Contracting Organization</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In contracting organizations, the duties of the quantity surveyor will vary according to the size of the firm employing him. The quantity surveyor employed by the contractor will aim to secure maximum payments for<br>the work done at the earliest possible time to avoid any possible cash flow problems. however, this is to undertake within the provisions of the contract and the contractor cannot receive more than his contractual<br>entitlements.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><br>The contractor’s quantity surveyor’s activities can include;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>preparing bills of quantities for small projects,</li><li>collecting information about the cost of various operations from which contractor can prepare future estimates,</li><li>preparing details of the material requirements for the contracts in hand,</li><li>compiling target figures for payment of bonuses to workers,</li><li>preparing interim valuations so that the financial position of the contract can be ascertained as the work proceeds and appropriate action is taken when necessary,</li><li>planning contracts and preparing progress charts in conjunction with site management,</li><li>making applications to the consultant for variation orders if drawings or site instructions vary the work,</li><li>agreeing with the value of variations and subcontractors’ accounts, and</li><li>comparing the costs of alternative methods of carrying out various operations such as temporary works, so that the most economical can be adopted.</li></ul>\n<!-- /wp:list -->', 'Quantity surveyor', 'A Quantity Surveyor is a construction professional. His main expertise is primarily to carry out an estimate,project cost control and quantity take-off. His duties include commercial, risk and contract management to ensure that the party he works for gets the best value for money.', 'publish', 'open', 'open', '', 'quantity-surveyor', '', '', '2021-01-14 22:21:45', '2021-01-14 16:51:45', '', 0, 'https://civilengineeringlectures.com/2020/07/06/quantity-surveyor/', 0, 'post', '', 0),
(586, 1, '2020-07-06 11:28:58', '2020-07-06 11:28:58', '<!-- wp:paragraph -->\n<p>A suitable contractor for a proposed construction project is selected by the client. There are several methods he can follow on this matter. For example, the client can decide whether any or all interested bidders permitted to submit offers. Or else, he can limit it to a selected group. If the decision is for a selected group, then the problem arises on how to identify the group. In addition, if the client probably from the private sector, may negotiate with only a single contractor. Then there is another matter to consider – whether it is necessary to use pre-qualification and post-qualification.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Tendering</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Tendering or bidding is the name of the process or procedure uses to obtain offers which lead to a contract between a client and contractor. Or it may be between a client and a consultant, a contractor and a subcontractor, and so on. Before starting the tendering process, a decision will need to have been made, on the contract arrangements that will have to be entered into on acceptance of a tender. Therefore tendering and a contract are clearly distinguishable in concept. But there is a very close link between them in actual practice.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Pre-qualification / Post-qualification</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Pre-qualification is normally applying in large civil works, industrial projects, major equipment, and supply acquisition, specialized services. In addition, we use pre-qualification in turnkey, design and build, or management contracts. This assures that only firms capable financially, technically, and having necessary experience will submit bids. This increases procurement lead-time considerably. Therefore it is not advisable to use this procedure for simple procurement works.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Objectives of Pre-qualification</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>a. Assure the owner that bidder has the required technical, financial, and managerial background with experience to perform the contract successfully.<br>b. Assures leading contractors that only qualified contractors will submit bids.<br>c. Allow unqualified bidders to avoid bid preparation costs.<br>d. Prevent unqualified bidders from winning the bid.<br>e. It limits the number of bidders to a manageable size. It helps to conduct the bidding procedure easily and accelerates the evaluation process.<br>f. To enable prospective bidders, who may be insufficiently qualified on their own, to form a joint venture that may give them a better chance of success.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Principle factors for measuring the qualification of an applicant for pre-qualification</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Information requested under pre-qualification procedure;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>1. Financial capacity<br>2. Technical capacity<br>3. Relevant experience</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Financial capacity</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>a. Average annual income from contracting at least in the last 3 years<br>b. Bid capacity, the approximate value of work in hand<br>c. Total assets and total liabilities, Balance sheet, P &amp; L statements of the firm<br>d. Available credit</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Technical capacity</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>a. Site management - Project organization &amp; management, Subcontracting<br>b. Key technical personnel and Project Manager - organization chart &amp; CVs<br>c. Plant &amp; Equipment</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Experience</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>a. Experience as the main contractor or lead partner,<br>b. Experience with similar works,<br>c. Experience with similar site conditions,<br>d. Past performance - List of completed projects with the name of the client, location, type of project, etc.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Post-qualification</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>If a contractor is the apparent low tenderer for a project, then he will be asked to submit information demonstrating its qualifications submitted with the tender. After that, if he can prove his qualifications, then the client will award the contract to him.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If not, the client has two options. One is to go for the second-lowest or the next option is to re-tender. The decision will depend on the project and the prevailing situation.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the first contractor found unsuitable during the post-qualification, then effort throughout the tender process for selecting him is wasted. The rejected tenderer may also claim that he unjustly rejected as not qualified for favoring some other tenderer.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>With a well-written contract document, clients always have the right to choose responsive and responsible tenders and counter any claim against their decisions.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Methods of Tendering</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In the construction sector, there are three methods in use for selecting a contractor:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(a) Open tendering,<br>(b) Selective tendering,<br>(c) Nomination</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Open tendering</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>It is a procedure of allowing any eligible construction organization, probably after the following advertisement to submit a tender. Open tendering will secure maximum competition by giving any organization an opportunity to tender.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The major disadvantage in this practice is it can lead to organizations tendering that do not have adequate resources and/or expertise of the work. If there is no pre-qualification requirement, then any interested eligible contractors can submit tenders.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>An invitation to tender is issued. Then tenders are received and evaluated. To discourage irresponsible applicants, sometimes the client may ask from bidders to keep a deposit. Normally, the deposit is returnable on the<br>submission of the bid. Then, if the criteria for selection are based on price alone, the owner must decide whether the lowest bid is both responsive to the tender announcement and responsible. If so, the bidder is qualified to do the work. In addition, if any other measures are used to judge the tender, then consideration of qualification will be a part of this process. In either way, the end result will be an agreement with a qualified contractor.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Normally, the first step in calling bids in this process is client advertising in newspapers or publicly inviting bidders to apply for bid documents to bid in competition for carrying out the work.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Advantages</h4>\n<!-- /wp:heading -->\n\n<!-- wp:list -->\n<ul><li>No favoritism is in this method.</li><li>In addition, the client can get the maximum benefit from the competition.</li><li>Another advantage is that any capable firm can submit bids under this method</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Disadvantages</h4>\n<!-- /wp:heading -->\n\n<!-- wp:list -->\n<ul><li>Since this method is open to all eligible bidders, a firm inexperienced in preparing bids also may submit erroneously prepared lower bid.</li><li>There is no guarantee that the lowest bidder is sufficiently capable or financially stable.</li><li>This method increases the total cost of bidding.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Selective Tendering</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Selective tendering is a process or procedure for selecting a limited number of firms and then inviting them to tender. This method is also a recommended method where competition is wanted, but the work may be<br>routine in nature or have a lesser value.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Initially, the consultant prepares a shortlist of tenderers who are suitable to carry out the proposed work. The consultant selects names for this shortlist using an approved list of bidders maintained by the client. It is recommended that the number of bidders should be limited to a manageable number, depending on the size of the contract. If all the bidders on the shortlist are all reputable, well established, and suitable for the proposed work, then the selection of suitable bidder comes to a question of price only.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Advantages</h4>\n<!-- /wp:heading -->\n\n<!-- wp:list -->\n<ul><li>When using this method, it is certain that only capable firms submit bids.</li><li>Since there are fewer bidders, it reduces the cost of bidding.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Disadvantages</h4>\n<!-- /wp:heading -->\n\n<!-- wp:list -->\n<ul><li>Under this method, there is less competition due to fewer bidders.</li><li>Because of the higher quality of the bidding firms, it may lead to a higher cost level of bids</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>After receiving tenders, the consultant will evaluate those in a manner similar to those received through the open tender process.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Sometimes in the private sector, clients may invite bids from firms with whom he has confidence based on their reputation, past experience, or other criteria. Or else, clients may select construction firms based on<br>the recommendation of the design professionals. However, this approach is probably not appropriate in the public sector. This is because, in the public sector, accountability to the public requires credibility and transparency.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Nomination</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Another name for this method is single tendering. We can consider this method as a special case of selective tendering, having only one name in the shortlist. Normally this happens when the contractor has done previous<br>construction work satisfactorily for the client. Therefore the client may prefer to award the next construction to the same bidder. In this method, there will be no competition. As a result, it will lead to a higher price. Here, the contract sum agrees after negotiation by the client with the contractor.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If there is a large project to carry out in several stages, a method combining selective tendering and nomination can be used. This method is called serial tendering.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Serial Tendering</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Serial tendering is the term used where tenders are invited for a project or series of projects, each of which will become a contract or contracts in their own right. The contractor is chosen for the first phase by means of<br>selective or open competitive tendering. The accepted tender outlines the basis of payment for the resulting contract. For the later stages, the same tender will use. However, a provision has to be made for so doing in the initial contract by the inclusion of a formula for updating prices. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Gaining the benefits of continuity is the main purpose of serial tendering. All the site facilities of the first stage will continue for the latter phases of the project. When the second phase commences, these facilities are already available. It allows a smooth transition with less additional expenses. After finishing the first stage, the contractor’s workforce is familiar with the details of the construction. It is a major advantage. In addition, it helps speedier and more efficient progress of works in the latter stages.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Negotiated Contracts</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We may use bills of quantities or schedules of rates for this process. Negotiations will carry out using unit rates in the bill of quantities and resulting amounts until reaching an agreement about the total bid price. Usually,  the contractor’s quantity surveyor and the project quantity surveyor will participate in this process. Firstly, one quantity surveyor will price the tender document. Then the other quantity surveyor goes through the document and marks the unit rates which are acceptable. After that, both quantity surveyors negotiate for balance unit rates and finalize the tender. After reaching an agreement by both parties, the client and contractor will enter into a contract. This process is sometimes called Single-stage negotiation. However, the disadvantage of this process is the absence of competition. This usually results in a higher contract price.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>include competition to negotiated contracts</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>To gain the benefits of competition as well as the advantages of negotiation, limited competition for the selection of contractors is sometimes used. And then follows the negotiation with the successful contractor. Usually, this process is known as two-stage negotiation.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Firstly, the client will inform the bidders about the intention of the second stage. Then bidders will submit bids on the basis of Schedule of rates. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, this schedule of rates consists of main and cost-significant items only.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>They may include followings;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>Prices for the main preliminary items.</li><li>Unit rates for cost-significant work items.</li><li>Details of all labor rates, material prices, and discounts, etc.</li><li>Construction program showing estimated times.</li><li>Labor and plant resources and construction methods.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>Because of the competition, the bidders will submit their lowest offers. Then, on the basis of the above information, one bidder will be selected. After that, negotiation will follow with the selected bidder, using a detailed tender document similar in single-stage negotiation.<br>This method normally uses to select a contractor to carry out management contracts. In management contracts, the general contractor does little or none of the construction work. For instance, he organizes sub-contractors to do the work.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->', 'Methods of Tendering', 'Suitable contractor for a proposed construction project is selected by the client. There are several methods to be followed. The client has to decide whether any or all interested bidders are permitted to submit offers or will it be limited to a selected group.', 'publish', 'open', 'open', '', 'methods-of-tendering', '', '', '2021-01-14 22:20:16', '2021-01-14 16:50:16', '', 0, 'https://civilengineeringlectures.com/2020/07/06/methods-of-tendering/', 0, 'post', '', 1),
(594, 1, '2020-07-06 11:49:43', '2020-07-06 11:49:43', '<!-- wp:paragraph -->\n<p>Sometimes, the client of a project wishes to have a particular subcontractor engaged in some work items because of his knowledge of that subcontractor\'s skills, of his knowledge of some process, materials or plant particularly required by the client, of the specialized work that is beyond the skills of a general contractor, of need for applying of latest or new technology, or the client has a preference for using a particular subcontractor.      </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(There must be  sound and viable reasons for this preference).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Accordingly, by engaging a nominated subcontractor, the client gets the assurance that the right party does the specialized works.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Difference between the nominated and domestic subcontractor</h2>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":1364,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://civilengineeringlectures.com/wp-content/uploads/2020/07/10-1.png\" alt=\"Difference between nominated subcontractor and domestic subcontractor\" class=\"wp-image-1364\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>In Sri Lanka, according to the ICTAD / SBD / 01, sub-clause 63.4 (a) &amp; (b), Nominated subcontractor means a subcontractor who is stated in the contract as a nominated subcontractor or whom the consultant instructs the contractor under Clause 39 – Variations, to employ as a subcontractor.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Usually, the client or consultant selects the nominated subcontractor through a separate bidding or procurement process.  This process involves calling bids from companies that specialize in a particular field.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>After selection, the client handover the sub-contractor to the main contractor. Nominated Subcontractor is the subcontractor selected in this way. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Then the main contractor enters into a subcontract with a nominated subcontractor, as with any other subcontractor, subject to certain rights of objection. The main contractor may object to the nomination for good and sufficient reasons - Sub-clause 63.5 - ICTAD / SBD / 1. (e.g. lack of experience or financial strength of the nominated sub-contractor).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Engagement against the wishes of the main contractor will probably disturb harmony on the site. Once the nominated subcontractor has been accepted by the main contractor, the main contractor is responsible for the work of the nominated subcontractor to the same extent as applies to the work.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Contractual Responsibilities</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The main contractor accepts all contractual responsibility for the performance of the nominated subcontractor. Once appointed, the nominated subcontractor\'s relationship with the contractor is<br>defined in a subcontract agreement drawn up and signed by the main contractor and the subcontractor. The important element in the arrangement is that the client wishes the contractor to be responsible for the administration and coordination of the subcontract and pays the contractor for such services.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><em>This is not the case where the client enters into a separate direct contract for such work. In those circumstances, the consultant provides the administration and coordination on behalf of the client.</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Examples of works that are likely to award to a nominated subcontractor include the supply and installation of lifts for high rise buildings, supply and installation of fire fighting equipment, etc.<br>The contractor shall pay to the nominated sub-contractor the amounts which the consultant certifies to be due according to the subcontract - Sub-clause 63.6 of ICTAD / SBD / 1.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Attendance</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The main contractor is entitled to get a payment of a pre-determined percentage of the nominated sub contractor’s bill as attendance fee and profit - as stated in the bill of quantity - Sub-clause 63.7 – ICTAD / SBD / 1.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are two types of attendance fees – general attendance and special attendance.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The general attendances are the already available facilities at the work site for use by the subcontractor. Examples are standard scaffolding, temporary lighting, temporary water supplies, sanitary accommodations, and welfare facilities. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Special attendance are the things specific to the particular subcontractor if requests to be provided by the main contractor. For instance, special scaffolding and special storage facilities come under this category. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Prime cost sum (PC sum) and Provisional sum</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In Standard Method of Measurements in Sri Lanka – SLS 573:1999 states prime cost as a sum provided for work or services to carry out by a nominated subcontractor. It further states that such sum shall be exclusive of any profit of the main contractor. And those mention separately. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Further, it says that general attendance and special attendance to give as items following each prime cost sum. However, for special attendance, the client shall give all the necessary particulars.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Also, according to SLS 573:1999, a provisional sum in the bill of quantities shows the amount of money needed for any work to carry out by nominated subcontractors. However, there should be a provision for the inclusion of attendance fees and profit after each provisional sum.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Example:</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>BOQ items showing the main contractors request for profit and attendance at the bidding stage;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":1366,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://civilengineeringlectures.com/wp-content/uploads/2020/07/10-2.png\" alt=\"BOQ items showing the main contractors request for profit and attendance at the bidding stage;\" class=\"wp-image-1366\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The following example shows the sub-contractor\'s interim bill and values added by the main contractor for his profit and attendance.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":1367,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://civilengineeringlectures.com/wp-content/uploads/2021/01/10-3.png\" alt=\"NOMINATED SUB CONTRACTORS MONTHLY BILL\" class=\"wp-image-1367\"/></figure></div>\n<!-- /wp:image -->', 'Nominated Subcontractors', 'Nominated subcontractor means a subcontractor who is stated in the contract as a nominated subcontractor or whom the consultant instruct the contractor', 'publish', 'open', 'open', '', 'nominated-subcontractors', '', '', '2021-01-15 19:21:43', '2021-01-15 13:51:43', '', 0, 'https://civilengineeringlectures.com/2020/07/06/nominated-subcontractors/', 0, 'post', '', 2),
(628, 1, '2020-07-06 15:08:25', '2020-07-06 15:08:25', '<!-- wp:paragraph -->\n<p>Construction contracting is extremely time-sensitive. If the project gets late for completion, the client will lose anticipated revenue and profit. In addition, the client may lose opportunities for future investments. Similarly, when projects are late to complete, contractors face additional financial burdens. For example, that is maybe for employing the field and office personnel for an additional period of time. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>At present, the marketplace is very competitive. No clients or contractors can afford the cost of late projects. However, in every project, there is a risk of late completion. Therefore every client tries to shift at least part of the risk onto contractors. The common form of shifting the risk is providing a liquidated damages clause in the construction agreement.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Purpose of LD</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The contractor\'s obligation is to complete the works by the date of completion stated in the contract. If he fails to complete the work by that date and if there is an LD clause in the contract, the contractor is liable for LD to the client. As the name implies, this is to compensate the client for financial losses or additional expenditure incurred in the event that the contractor fails to complete the works by the agreed completion date. They are not intended as a penalty. The client or the consultant has to carry out a realistic pre-assessment to determine the level of liquidated damages before the issue of the bidding documents. And the amount must be stated in the bidding documents.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The legal principle behind the liquidated damages is that damages for breach by either of the contracting party may be liquidated. But it is only up to a reasonable amount compared to the anticipated or actual loss caused by the breach. It is unreasonable to fix large liquidated damages. In addition, it is unenforceable on grounds of public policy as a penalty.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Common Definition</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Liquidated Damage is a sum agreeable by the client and the contractor in advance. The contractor has to pay this amount as damages if the contractor breaches the contract by failing to complete the work on time.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>LD is enforceable if the amount fixed is a genuine pre-estimate. However, it must be judged at the time the contract is entered into, of losses like to arise from the anticipated breach.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In Sri Lanka, Clause 49 of ICTAD/SBD/1 gives the provisions for liquidated damages. In Sub Clause 49.1, it says the contractor shall pay liquidated damages to the client at the rate per day stated in the Contract Data. The period is for each day that is beyond the Intended Completion Date up to the actual completion date. In addition, it says the total amount shall not exceed the amount defined in the Contract Data. The client can deduct liquidated damages from payments due to the Contractor. However, the Contractor’s liabilities shall not affect due to the payment of liquidated damages.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>According to Sub Clause 49.2, if the intended completion date mentioned in the contract data is extended after liquidated damages have been paid, the consultant can correct any overpayment of liquidated damages by adjusting the next payment certificate.<em> The Contractor shall be paid interest on the overpayment, calculated from the date of payment to the date of repayment, at the rates specified in sub-clause 43.1.</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Sample – Contract Data</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>(49.1) a) The liquidated damages for the whole of the Works shall be <em><u>Rs: 1,000.00</u> </em>per Day.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>b) The maximum amount of liquidated damages for the whole of the Works shall be <em>10</em> percent of the Initial Contract Price.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Advantages of LD clause to Client</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The tender document shows the amount of LD in advance. So it avoids the client having to calculate and prove the actual loss.&nbsp;It also concentrates the contractor’s mind on finishing the project on time.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Advantages to Contractor</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In a tender situation, it fixes the contract price more certain. That is because then the Contractor can price the level of LD into his tender bid. Additionally, if the contractor thinks the project may go behind the schedule, the contractor can make a decision as to whether it would be preferable to hand the building over late and pay LD. Or else, is it worth to allocate more resources to the project and finish it on time.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Another advantage for the contractor is the level of LD specified is a ceiling for the amount for the damages payable. The client cannot later change the amount and recover an additional sum from the contractor even the client’s actual loss is greater than the LD stated in the contract.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>LD clauses and penalties</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>It has long been the case that if a clause for LD has been included as a penalty for late completion, rather than a genuine pre-estimate of loss, then the courts will not enforce it.&nbsp; However, just because the level of LD specified in a contract is substantially higher than the loss actually suffered does not necessarily make the LD clause invalid as a penalty.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><em>Penalty</em></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><em>If the sum is “extravagant in amount in comparison with the greatest loss which could conceivably be provided to have followed from the breach”.&nbsp; &nbsp;</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>To take an extreme example, if the contractor is late in completing a project, and the client can satisfy the court that the amount specified in the contract for LD was a genuine estimate of likely loss, then the LD are payable by the contractor. Practically client deducts LD from future payments due to the contractor. The client can do this even when he suffers no loss.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Genuine pre-estimate of loss</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The key is that client must be able to show that the figure in the LD clause is realistic. It must be a genuine estimate of the likely loss which the client would suffer if the contractor was late in achieving practical completion.&nbsp;If the contractor argues about the LD amount, the Client can preferably defeat it if he can show how he arrived at the figure in question, with calculations, projections, etc. The client may take into account factors such as loss of income and increased financing costs for these calculations.&nbsp;As stated above, the estimate needs to reflect the position at the time of the contract. It is not at the time when the claim arises.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>LD and extensions of time</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Building contracts almost invariably contain clauses entitling the contractor to an extension of the contract period in certain circumstances. For example, one reason may be the effect of exceptionally adverse weather conditions.&nbsp; In such events, the client may extend the date for practical completion by an agreed period of time. Therefore, the question of LD would not arise until the expiring revised date for practical completion.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>LD unenforceable</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Sometimes, a court may decide that the LD clause is unenforceable. However, this does not mean that the client is then disallowed from claiming damages from the contractor for the delay.&nbsp;The client would merely have to rely on his common-law right to damages for breach of contract. That is for the contractor’s breach of contract for failure to complete the project on time.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Unliquidated Damages</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In some contracts, the sum of liquidated money is not established in advance in the contract. In such an event, the Court determines the amount after the breach occurs. That is termed as unliquidated damages.</p>\n<!-- /wp:paragraph -->', 'Liquidated Damages', 'Every client tries to shift at least part of the risk onto contractors. The common form of shifting the risk is providing a liquidated damages clause in the construction agreement.', 'publish', 'open', 'open', '', 'liquidated-damages', '', '', '2021-01-14 22:17:14', '2021-01-14 16:47:14', '', 0, 'https://civilengineeringlectures.com/2020/07/06/liquidated-damages/', 0, 'post', '', 0);
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(644, 1, '2020-07-06 15:29:33', '2020-07-06 15:29:33', '<!-- wp:heading -->\n<h2>What is a Claim</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>If we explain it simply, it is a demand for something due. Similarly, in construction contracts, it may be a request, demand, and application for payment or notification of entitlement given from one party to the other party, rightly or wrongly at that stage.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Types of Construction Claims</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>There are three types of claims in construction. Those are named as Contractual Claims, Extra-Contractual Claims, and Ex-gratia Claims.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Contractual Claims</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Claims made in accordance with provisions in the contract come under this category. Examples are the payments for work done, changes in costs due to fluctuation of materials, labour or plant, subsequent legislature, variation orders, etc.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Extra contractual claims</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>These claims have no basis in the contract. But entitlement originates from common law. Damages due to breach of contract, loss of profit due to suspension of work by the consultant are few examples.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Ex-gratia claims</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>This is where a contractor is seeking something more tangible than sympathy. However, there are no contractual provisions to rely upon. These situations arise when a contractor underestimated the cost, execution of work proved more difficult than expected, and the risk is higher than he allowed for. Simply we can say contractor’s costs are higher than the payment due.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Foundation for a successful claim</h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Claim entitlement</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The first thing for a successful claim is the contractor’s entitlement within the contract. In other words, the contractor has to clearly show his entitlement with necessary proof. Additionally, it is necessary to state the clause or clauses under which the claim is based.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Client’s responsibility</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Another important thing is the reason for the claim situation. Most contract conditions require it to be a client’s responsibility. That includes action or inaction of the consultant and others.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Notification of the claim</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In some contracts, terms of the contract say to show the notification of intention of claiming. In those situations, the contractor has to submit necessary notifications within the time requirements.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Extension of time</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The contractor must request an extension of time when needed. Extension of time is not always, a must to a cost-claim. The claim may be for an item not on the critical path. Therefore, under those situations, extra time is not involved.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If any event falls in the category of “acts of prevention” by the client, it will entitle the contractor with both an extension of time and cost. Generally, for events beyond the control of both parties, the contractor will entitle to an extension of time only.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Cost Records</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>When the consultant is notified of a claim, he has to inform the contractor what records the contractor requires to be maintained. In some situations, the consultant will take initiative to maintain records, himself.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Accuracy</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Records must be accurate and consistent.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Selecting the correct and right clause</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In Sri Lanka, most of the medium-scale contracts follow CIDA (ICTAD) conditions of contracts ICTAD / SBD / 01. Under these conditions, many claims will be based on the clause “Compensation Events” in Clause 44.1. One example is the client not allowing access to the site by the site possession date. If the consultant orders delay or not issuing drawings, specifications, or instruction on time, it will also become a compensation event. In addition, there are more situations mentioned, such as delaying advance payments, delays in recommending monthly payment certificates by the consultant, etc.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>ICTAD / SBD / 01, Clause 44.2 says if the compensation event would cause additional cost or would prevent the work being completed before the Intended Completion Date, the Contract Price shall be increased and/or the Intended Completion Date shall be extended. The Engineer shall decide whether and by how much the Contract Price shall be increased and by how the Intended Completion Date shall be extended.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>ICTAD / SBD / 01, Clause 44.3 says as soon as the Engineer receives information about the effect of each Compensation Event on which the contractor’s forecast is based, the Engineer shall assess it. Then, if necessary the Contract Price has to be changed accordingly. If Engineer thinks Contractor’s forecast is unreasonable, the Engineer can adjust the Contract price based on his own forecast. Normally, the Engineer assumes that the contractor’s reaction is competent and prompt to the event.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Extension of time</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The Contractor is bound to complete the works by the intended date of completion stated in the contract. If he fails to do so, he will be liable for Liquidated Damages to the client. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the delay is from the client’s part, and if it is beyond the contractor’s control, and if this delay affects the Completion Date of the Works, the Contractor can have an entitlement to receive an Extension of Time (EOT). In other words, this will effectively result in an extended Time for Completion. In addition, it will relieve the Contractor from having to pay Delay Damages or Liquidated Damages.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There may be delay cost or prolongation cost to the contractor due to delays of the client. For recovery of these costs, the contractor must prove that there has been no other delay, which is under his own control. And there are no delays by the contractor, which are equally (or partly) contributing to delaying the Time for Completion.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Concurrent delays are delays for which the contractor is responsible comes in parallel with the client’s delay. If the contractor needs to win a Delay Costs Claim, the Contractor must prove that there are no Concurrent Delays to the Time for Completion for which he is responsible for. However, if any contractor’s delay to completion occurs concurrently with the client\'s delay, still the contractor can claim an extension of time (EOT).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Disruption claims</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Disruption can be explained as is a loss of productivity, disturbance, hindrance, or interruption to a contractor’s normal working methods. As a result, there may be lower efficiency. Accordingly, in the construction field, if any work is carried out with lesser efficiency due to some reason, it comes under disrupted work. If the cause for disruption is due to the client’s action, the contractor has the right to claim either under the contract or as a breach of contract.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>The possible causes of disruption:</h3>\n<!-- /wp:heading -->\n\n<!-- wp:table {\"align\":\"left\"} -->\n<figure class=\"wp-block-table alignleft\"><table><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Internal Causes</strong></td><td><strong>External Causes</strong></td></tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>Technical issues </strong>– changes in design, design errors, construction errors. <br><strong>Economic issues </strong>– difficulty in accessing materials, labor .<br><strong>Financial issues </strong>– the shortfall in paying costs, unplanned cost increases in labor or materials costs</td><td><em>Force majeure</em> – acts of gods (earthquakes, hurricanes) – can be insured against. <br>Social or political events – outbreak of war, rebellions, protests, general strikes.&nbsp;</td></tr></tbody></table></figure>\n<!-- /wp:table -->\n\n<!-- wp:heading -->\n<h2><strong>The implications of disruption</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Late completion,</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Loss of possibility for early completion (may be countered by an acceleration of the work),</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Alternation of the sequence of the work,</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Loss in efficiency,</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Extra overheads which reduces potential profits of the contractor,</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Administrative costs associated with rescheduling and planning.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>How to counteract the impact of disruption</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Accelerate the work - Acceleration can be used when there is no delay, either to counteract possible future delays, but in many cases acceleration will be used to try and compensate for already experienced delays.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The impact of delay will be more severe when the issue causing the disruption lies on the project’s critical path. However, disruption can cause significant cost increases for the contractor even it does not delay the project completion date. It may be due to the additional measures taken by the contractor, such as acceleration, for the completion of the project on time. Sometimes, the contractor may recover these additional costs by submitting a claim.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Terminology</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:list -->\n<ul><li>Excusable / Compensable&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time given / Cost given</li><li>Excusable / Non compensable&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Time given / Cost not given</li><li>Non-Excusable (Culpable)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Somebody in fault</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong><u>Consequence of Delay</u> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Excusable and/or Compensable</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":1369,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"https://civilengineeringlectures.com/wp-content/uploads/2020/07/12-1.png\" alt=\"Consequence of Delay\" class=\"wp-image-1369\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->', 'Construction Claims', 'If we explain simply, it is a demand for something due. Or it may be a request, demand, and application for payment or notification of entitlement given from one party to the other party, rightly or wrongly at that stage.', 'publish', 'open', 'open', '', 'construction-claims', '', '', '2021-01-15 19:24:39', '2021-01-15 13:54:39', '', 0, 'https://civilengineeringlectures.com/2020/07/06/construction-claims/', 0, 'post', '', 0),
(836, 1, '2020-07-13 19:26:37', '2020-07-13 19:26:37', '<!-- wp:paragraph -->\n<p>Any contract rests on the agreement of the parties. It is their agreement that binds them. Therefore, by their agreement, they may be discharged.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>After a discharging of a contract, the obligations of the parties under the contract do not exist. However, an action for breach of contract is still available after the contract has been discharged.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>A contract can be discharged in four ways. These are:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(i) Discharge by agreement</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(ii) Discharge by performance</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(iii) Discharge by breach</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(iv) Discharge by frustration</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Discharge by agreement</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The parties can agree to discharge the contract. This operates where the obligations under the contract have not yet been performed, and the parties agree to waive contractual performance.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Discharge by performance</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Another way of discharging a contract is by performance. Most contracts are discharged in this way. As the parties perform their contractual obligations, then the contract will come to an end.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Discharge by breach</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A contract can be discharged by a breach of the contract. After a breach of a contract, the obligations of the contract also may terminate. This situation may arise if either one party or both parties have failed to perform any obligation as expected under the contract.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Discharge by frustration</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A contract is frustrated where an event that occurs after contracting renders performance of the obligations under the contract impossible, illegal, or radically different. Where a contract is deemed to have been frustrated, the obligations under the contract no longer need to be performed. And then the contract is considered discharged.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Termination of a Construction Contract</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>As per ICTAD/SBD/01 – Clause 59 in Sri Lanka</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>According to Clause 59.1, the client or the contractor may terminate the contract if the other party causes a fundamental breach of the contract. In Clause 59.2 shows some examples of fundamental breaches of a contract. Those are as follows.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>a) The contractor stops work for more than 28 days without any valid reason or any stoppage order from the consultant.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>b) When the client or the contractor is bankrupt.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>c) If the client does not release payment due to the contractor within 91 days from the submission of the payment statement by the contractor.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>d) When the contractor is not maintaining the performance certificate in live condition.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>e) If the contractor does not complete the construction within the number of days for which the maximum amount of liquidated damages can be paid.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>f) When the consultant order to suspend the construction work and not withdrawn the order. When this happens, as per clause 64.4, if the stoppage continues for more than 84 days, the contractor may request from the consultant permission to proceed. If the consultant does not permit to start work within 28 days from the request, the contractor may treat suspension either as an omission, or if the suspension is for whole work, then submit his notice of termination.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>&nbsp;g) If the contractor engages in corrupt or fraudulent practices, in competing or when executing the contract. &nbsp;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, according to Clause 59.3, the consultant can decide whether the breach is fundamental or not for any cause other than in the above list of causes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Termination of a contract for convenience</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>According to Clause 59.4, other than the above causes, the client may terminate the contract for convenience. That means the client may terminate even where the contractor has done nothing wrong. This situation may arise due to various reasons. It may be due to the client’s financial inability to proceed. Or else it may be the inability to obtain necessary government approvals to proceed, etc. Anyhow, the contractor has an entitlement to negotiate a settlement for a reasonable recovery of cost and losses suffered.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>After termination</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Clause 59.5 tells after receiving the termination order from the client, the contractor to stop work immediately, make the site safe and secure and leave as soon as possible.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>The property at the site after termination</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As per clause 61.1, if the termination was due to contractor’s fault, all materials, plants, equipment, temporary works and works carried out so far are deemed to be the property of the client. Retained contractor’s equipment will be released to the contractor only after the payment of all debt due to the client from the contractor. However, during that period the client may use that equipment.&nbsp;&nbsp;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Payments after termination</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>There are two situations to consider.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>One situation is the termination of the contract by the client because of a fundamental breach by the contractor. The other situation is the termination of the contract for the convenience of the client or the fundamental breach by the client.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In the first situation, after termination, the consultant can issue a payment certificate for the work done so far and the materials ordered. However, the client can deduct the remaining amount of advance payment and percentage applied to the value of the uncompleted works from the payment. If the amount due to the client is more than the amount due to the contractor, then the contractor is in debt to the client for that amount. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>In the second situation, the consultant can issue a payment certificate for the work done so far and the materials ordered. However, the contractor can claim reasonable cost for removal of equipment and return of contractor’s personnel employed for the work. Additionally, if there are any cost due to the contractor for protecting and securing the work after termination may also be added. However, the remaining amount of the advance payment must be deducted as in the earlier situation. Additionally, the contractor can claim for any loss of profit or damage sustained as a result of the termination</p>\n<!-- /wp:paragraph -->', 'Termination of a Construction Contract', 'Any contract rests on the agreement of the parties. It is their agreement that binds them. Therefore, by their agreement, they may be discharged.', 'publish', 'open', 'open', '', 'termination-of-a-construction-contract', '', '', '2021-01-14 22:13:26', '2021-01-14 16:43:26', '', 0, 'https://civilengineeringlectures.com/2020/07/13/termination-of-a-construction-contract/', 0, 'post', '', 1),
(858, 1, '2020-07-20 17:49:43', '2020-07-20 17:49:43', '<!-- wp:paragraph -->\n<p><a href=\"https://www.designingbuildings.co.uk/wiki/Contractors\">Contractors</a>&nbsp;often develop strategies on how to win the bid they submit. The principal aim of the strategy is to weigh the market and commercial factors and decide on a bid price. However, it is to be just low or attractive enough to become the preferred&nbsp;<a href=\"https://www.designingbuildings.co.uk/wiki/Bidder\">bidder</a>.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Why a bidding strategy?</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://www.designingbuildings.co.uk/wiki/Contractors\">Contractors</a>&nbsp;cannot afford to bid unsuccessfully for too many jobs. Therefore, they must select the jobs they do bid on carefully. Sometimes, <a href=\"https://www.designingbuildings.co.uk/wiki/Contractors\">contractors</a>&nbsp;will submit bids even without any expectation of winning. It is to test a new market that they may be looking to enter.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://www.designingbuildings.co.uk/wiki/Contractors\">Contractors</a>&nbsp;may also chase a declining market to take work where there is little chance of making a&nbsp;<a href=\"https://www.designingbuildings.co.uk/wiki/Profit\">profit</a>. Sometimes, it may be to enter a new market, develop a relationship with a new&nbsp;<a href=\"https://www.designingbuildings.co.uk/wiki/Client\">client</a>,&nbsp;or simply to maintain their operations. Sometimes it can be to&nbsp;<a href=\"https://www.designingbuildings.co.uk/wiki/Contractors\">contractors</a>’ advantage to enter into a&nbsp;<a href=\"https://www.designingbuildings.co.uk/wiki/Joint_venture\">joint venture</a>&nbsp;on a bid to&nbsp;<a href=\"https://www.designingbuildings.co.uk/wiki/Win_work\">win work</a>ing market&nbsp;<a href=\"https://www.designingbuildings.co.uk/wiki/Area\">areas</a>&nbsp;where they have less experience or where there is high&nbsp;<a href=\"https://www.designingbuildings.co.uk/wiki/Risk\">risk</a>.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Definition</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Bidding strategy can be defined as the decision by a company on which work to price for and the level of profit to incorporate for successfully securing the project and maintain the financial security of the business.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are several bidding strategies used by different contractors depending on the situation.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Quantity bidding</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The most widely used bidding strategy by many contractors. It is simply submitting a bid on every job that comes along. This high volume approach is based on the belief that putting out a large number of bids means that they can win at least a certain percentage of them. This strategy is very time-consuming.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This approach is most effective for newer companies with little name recognition in the industry. It is also a good strategy for companies struggling to find works.  If the company has a large number of employees who are not busy at present, then they also can use this approach.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Selective bidding</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>This is a more effective strategy. The contractor can carefully evaluate bid opportunities based on quality, and to pass on bids that are profitable for the company. Estimators also can take their time on each bid, recalculate their prices, which will help to result in more successful bids.&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Negotiated bids</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In the public sector, most bids called are sealed bids. Normally lowest evaluated bidder is selected for the construction, without allowing for negotiation of prices. However, in the private sector, there is room for negotiation between the client and the contractor. In this type of works, bidders rely on a personal relationship with the client. These will often come with higher profit margins and lesser communication problems.</p>\n<!-- /wp:paragraph -->', 'Bidding Strategy', 'Bidding strategy can be defined as the decision by a company on which work to price for and the level of profit to incorporate for successfully securing the project and maintain the financial security of the business.', 'publish', 'open', 'open', '', 'bidding-strategy', '', '', '2021-01-14 22:12:07', '2021-01-14 16:42:07', '', 0, 'https://civilengineeringlectures.com/2020/07/20/bidding-strategy/', 0, 'post', '', 0),
(868, 1, '2020-08-05 11:13:45', '2020-08-05 11:13:45', '<!-- wp:paragraph -->\n<p>People living in society cause each other injuries, or wrongs. Such injuries may be physical or economic. For example, if someone causes injury to another in a road traffic accident, it is a physical injury. If a person loses money when acting on the financial advice of a stockbroker, it is an economic loss. The function of the law of tort is to determine whether a person who has suffered such injury can recover damages for the injury.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The law of tort lays down the boundaries of when liability for the injury arises. It balances the interests of the person who has suffered the injury and wishes to recover damages for that loss, against the interest of the person who caused the injury.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Duty of Care</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The standards laid down in the law of tort are expressed in terms of duty. It is necessary to discover in what circumstances a duty arises in tort. On what standards of behaviour are imposed by that duty. For example, in the tort of nuisance, it is possible to determine what civil duties are owed to neighbouring occupiers of land. In the law of tort, we try to determine what standard of behaviour or duties demand in every situation. Having established that, anyone who falls below that standard and causes injury to another will be liable in tort. He is to compensate the person injured for the loss.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>The Claimant and the Defendant</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In tort, the claimant is the person suffering from the injury due to the action of the defendant. The claimant can sue against the defendant and able to recover damages from the defendant. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Tort Law and Criminal Law</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The criminal law determines what behaviour is acceptable to society and the State. It lays down punishment for those who break such standards of behaviour. The law of tort also determines what standards of behaviour are acceptable. However, if a person does an act which is below that standard of behaviour, then only the person who has suffered damage as a result of the behaviour can sue the person who has caused the injury.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The aim of the criminal law is to establish and enforce a code of behavior for society by punishing wrongdoers. The aim of the law of tort is to compensate injured parties.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>For example, if a man drives carelessly and severely injures someone in an accident, under the criminal law he will be punished for driving without due care and attention. Under the law of tort, the victim of the accident may sue the driver for the tort of negligence and recover for any loss that he suffered, such as medical fees, loss of earnings, and damages for the physical injuries suffered.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Tort Law and Contract Law</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A Tort is a civil wrong. Similarly, breach of contract also is a civil wrong. Both give rise to an action for damages. However, breach of contract is the infringement of a right or violation of a duty, created and defined by an express or implied agreement between the parties to the contract. The parties to the contract have themselves decided what their rights and duties are to be. Such rights and duties are personal to the contracting parties. In tort, rights, and duties owed to everyone and by everyone, and nobody can escape them.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>When claiming damages, tort aims to compensate the claimant for his losses and seek to treat him as if the wrongful act had never occurred. But in breach of a contract, try to compensate the claimant for his lost expectations and attempt to put him into the position he would have been had the contract been properly performed.</p>\n<!-- /wp:paragraph -->', 'Law of Tort – An Introduction', 'The law of tort lays down the boundaries of when liability for the injury arises. It balances the interests of the person who has suffered the injury and wishes to recover damages for that loss, against the interest of the person who caused the injury.', 'publish', 'open', 'open', '', 'law-of-tort-an-introduction', '', '', '2021-01-14 22:10:40', '2021-01-14 16:40:40', '', 0, 'https://civilengineeringlectures.com/2020/08/05/law-of-tort-an-introduction/', 0, 'post', '', 0),
(884, 1, '2020-08-07 07:46:53', '2020-08-07 07:46:53', '<!-- wp:paragraph -->\n<p>Until 1932, the belief was that if a contract exists, no rights in tort could apply to the same facts. However, the decision in the case of <em>Donoghue v Stevenson </em>set off an explosion in the scope of tortuous liability. &nbsp;&nbsp;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong><em>Donoghue v Stevenson </em></strong><strong>(1932)</strong><strong></strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In <em>Donoghue v Stevenson </em>(1932), the appellant brought an action against the manufacturer of ginger beer. The appellant\'s friend bought the ginger beer for her at Minchella’s cafe in Paisley. She drank some of the ginger beer first. When the rest poured into her glass, she noticed the remains of what looks like a decomposed snail floating out of the opaque bottle into her tumbler. The appellant suffered gastro-enteritis and nervous shock as a result of having drunk some of the ginger beer, and the sickening sight of the foreign body in her drink.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The case proceeded to the House of Lords on the preliminary point as to whether an action exists for the tort of negligence irrespective of the fact that there was no contract between the appellant and the manufacturer of the ginger beer. The basis of the case was that the manufacturer owes a duty to the consumer. The duty is to take care that there was no harmful substance in his product. However, the manufacturer had breached this duty, and she had been injured as a result.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The House of Lords reviewed the few relevant existing precedents. Then by a majority of three to two, they decided in favor of the appellant. The decision established the existence of negligence as a separate tort in its own right for the first time by an authoritative court.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>Important points emerge from </strong><strong><em>Donoghue v Stevenson</em></strong><strong></strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>At least five important points emerged from <em>Donoghue v Stevenson:</em></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Negligence is a separate tort in its own right;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>An action for negligence can exist whether or not there is a contract between the parties;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>An action for negligence will succeed if the claimant can prove: a duty of care is owed by the defendant to the claimant; a breach of that duty by the defendant; resulting damage which is not too remote;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>• to establish the existence of a duty of care the ‘neighbor principle’, based on reasonable foresight, must be applied.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>Neighbor Doctrine</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Lord Atkins in his judgment outlined the “Neighbor Doctrine”.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>“In English law, there must be a general conception of relations giving rise to a duty of care. You must take reasonable care to avoid acts or omissions which you can reasonably foresee would be likely to injure your neighbor. Who then, in law, is my neighbor? The answer seems to be persons who are so closely and directly affected by my act that I ought reasonably to have them in contemplation as being so affected when I am directing my mind to the acts or omissions which are called in question”.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>Subsequent Cases - </strong><strong><em>Grant v AKM</em></strong><strong> [1936]</strong><strong></strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>In 1936, the Privy Council applied the doctrine created in <em>Donoghue and Stevenson</em> in <em>Grant v AKM</em> [1936] AC. P bought a pair of long underpants made by d (manufacturer). P got dermatitis from the chemicals used to make the pants. There was no warning to wash before wearing. Court held that D had a duty of care to P. Approving <em>Donaghue v Stevenson</em>, recognizing that negligence was a tort in itself and not simply an element in some more complex relationships.</p>\n<!-- /wp:paragraph -->', 'Tort Law - Historical Development', 'Until 1932, it was believed that if a contract exists, no rights in tort could apply to the same facts. However, the decision in the case of Donoghue v Stevenson set off an explosion in the scope of tortuous liability. ', 'publish', 'open', 'open', '', 'tort-law-historical-development', '', '', '2021-01-14 22:09:26', '2021-01-14 16:39:26', '', 0, 'https://civilengineeringlectures.com/2020/08/07/tort-law-historical-development/', 0, 'post', '', 0),
(889, 1, '2020-08-07 07:58:03', '2020-08-07 07:58:03', '<!-- wp:heading -->\n<h2><strong>Who can sue?</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Any victim of a tort can sue. However, a minor must sue by his ‘next friend’. A minor can sue for injuries incurred before birth. For example, physical deformities caused by a drug taken by his mother provided that he is born alive. If a person is injured by a tortious act that causes his death, his estate can sue (on his behalf). This can be for the loss of amenity, pain, and suffering. Or it may be for the loss of income and earning capacity before the death, and expenses.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Who can be sued?</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As a general rule, any tortfeasor can be sued. Additionally, it may be possible to sue a person responsible for the tortfeasor. It is irrelevant whether that person participates or not in the commission of the tort. This is called vicarious liability.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>(A tortfeasor is a person who commits a tort).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2><strong>Vicarious Liability</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Where the first defendant is engaged in carrying out his or her obligations under a contract of employment, and while doing so commits a tort against the claimant. Then, the claimant may sue not only the first defendant but also his or her employer. In this case, it is unrelated whether the employer was at fault or not. However, the doctrine applies only where the first defendant is <em>employed </em>by the second defendant. However, it is not enough that the first defendant committed the tort in work time. It must be committed ‘in the course of the employment’.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>Who is an employee?</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Here, we have to distinguish between employees and independent contractors. The employee’s time belonged to the employer. Therefore, an employer can give precise orders as to how it has to be used. An independent contractor is hired to achieve particular results without detailed directions. Therefore, if there is any doubt whether a particular contractor is an employee or not, it is usually sufficient simply to ask whether he is subject to the ‘control’ of an employer. Or else, he is an ‘independent’ contractor. Did the employer control how the work is done or only concern about the results achieve?</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>Organization test</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><em>Is the work done an integral part of the business, or related to it? </em>This test was said by Denning LJ in <em>Stevenson Jordan &amp; Harrison v Macdonald and Evans </em>[1952]. It is also called the ‘organization’ test: is the worker employed as part of a wider organization, or a self-employed independent contractor?</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>Entrepreneur test</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><em>Who has the risk of loss and the chance of profit? </em>This is the ‘entrepreneur’ test: is the worker simply selling a set proportion of his time at a fixed rate, or can the worker be said to be in business on his or her account?</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4><strong><em>Ready Mixed Concrete (South East) v Minister for Pensions and National Insurance </em></strong><strong>[1968]</strong></h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A driver was hired by a concrete company on terms that he would always have his lorry ready to carry concrete. He agreed to maintain the vehicle at his own expense and to have it painted in the company’s colors. Also, he agreed to wear the company’s uniform. He was permitted to hire a substitute driver. Held: the driver was not an employee.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong><em>Who has control?</em></strong><em></em></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>It has been clear since <em>Cassidy v Ministry of Health </em>[1951] that control is not definite: there can be employment relationships where the employee is so skilled that control is impossible. When a part-time drama teacher claimed he was an employee of the school which hired him, the lack of control the school exercised was an important consideration. The school did not prescribe a syllabus and left him free to teach as he wished. He was held to be an independent contractor (<em>Argent v Minister for Social Security </em>[1968].</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong><em>Borrowed employees</em></strong><em></em></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Control may also be relevant where there is no doubt that the worker is an employee. However, it is unclear <em>whose </em>employee (e.g. <em>Mersey Docks and Harbour Board v Coggins and Griffith (Liverpool) </em>[1947]. There is a strong presumption that the ‘lending’ company is still the employer (e.g. <em>Biff a Waste Services v Maschinenfabrik Ernst Hese GmbH </em>[2008]. However, there are occasional examples of the presumption being denied (e.g. <em>Gibb v United Steel Companies </em>[1957].</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>The course of employment</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The employer is only vicariously liable for torts committed by his employee in the course of his employment. An employee is acting in the course of his employment if the act which constitutes the tort is;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- expressly authorized by his employer;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- impliedly authorized by his employer;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- incidental to an authorized act;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- a method, even if an improper one, of carrying out an authorized act.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, if an employee radically departs from what is authorized to do, then he cannot be regarded as acting in the course of his employment. He is on a ‘frolic of his own’.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4><strong><em>Limpus v London General Omnibus Co </em></strong><strong>(1892)</strong></h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The plaintiff’s omnibus was overturned when the driver of the defendants’ omnibus cut across it to be first at the bus stop to collect the waiting passengers. The defendant had issued strict instructions to their drivers, not to ‘race’ for passengers. &nbsp;However, defendants’ were still held liable because the driver was acting within the scope of his employment. That is driving the omnibus to collect passengers.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4><strong><em>Beard v London General Omnibus Co </em></strong><strong>(1900)</strong></h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The bus conductor turned the bus around and in doing so injured the plaintiff. He was held to have been acting outside the scope of his employment. Therefore, his employers were not liable.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4><strong><em>Heasmans v Clarity Cleaning Company </em></strong><strong>(1987)</strong></h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>An agency cleaning lady who cleaned an office after hours made a series of unauthorized telephone calls in the office which she was cleaning. The office wanted to recover the cost of these calls from the agency which employed her as she did not have sufficient funds to pay for these calls. It was held by the Court of Appeal that the cleaning lady was not acting in the course of her employment when she was making the telephone calls. Therefore the agency was not liable for the cost of the calls.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>Employer and the Independent Contractor</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Generally, an employer is not vicariously liable for torts committed by independent contractors. If a person suffers loss or injury due to the action of an independent contractor, then the claimant will have to sue the contractor and will have no action against the contractor’s employer.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>However, there are few exceptions;</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- where the client has authorized the tortious act,</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- where there is an exceptional risk,</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- non-delegable duty,</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>- negligent selection.</p>\n<!-- /wp:paragraph -->', 'Tort Law – The parties & Vicarious Liability', 'Any victim of a tort can sue. However, a minor must sue by his ‘next friend’. A minor can sue for injuries incurred before birth. For example, physical deformities caused by a drug taken by his mother provided that he is born alive.', 'publish', 'open', 'open', '', 'tort-law-the-parties-vicarious-liability', '', '', '2021-01-14 22:08:32', '2021-01-14 16:38:32', '', 0, 'https://civilengineeringlectures.com/2020/08/07/tort-law-the-parties-vicarious-liability/', 0, 'post', '', 0);
