QUALITY MANAGEMENT SYSTEM IN CONTRACTOR
International Journal of Real Estate Studies, Volume 11 Number 52017QUALITY MANAGEMENT SYSTEM IN CONTRACTOR ORGANISATIONS:AN EMPIRICAL STUDY ON COSTS AND BENEFITS OF ISO 9001:2008IMPLEMENTATIONNursyamimi Shaari1, Mat Naim Abdullah2, Su Zheng Sheng and Muhamad Amir Afiq LokmanDepartment of Real Estate, Faculty of Geoinformation and Real Estate,Universiti Teknologi Malaysia, 81310 Skudai, Johor, MalaysiaEmail: actThe main objective in implementing quality management is to enhance product quality and continuously improve aservice. Quality Management System is among the important managements in construction industry. However, thereare still questions regarding the effectiveness of this system in construction industry. Therefore, this study wasconducted to investigate the perceived benefits and costs of implementing ISO 9001:2008 series certification inMalaysian construction industry. Literature reviews were used to construct the questionnaire. A total of 200 copies ofquestionnaire form were distributed to construction firms. However, only 44 questionnaires were successfullycollected. Response rate in this study was 20%. Four out of 20 benefits were listed out, which are the improved qualityof product or service, better control of subcontractors, clearer working procedures and increased efficiency. For theperceived cost, the top three costs are known as expenditure on providing the ISO 9001 training, additional time spentby existing staff to setup ISO 9001 system and cost to establish documentation system.Keywords: Quality Management System, ISO 9001: 2008, Costs, Benefits, Contractor1.0INTRODUCTIONImplementation of Quality Management System(QMS) is one of the responses to criticisms on theconstruction industry due to poor performancewith several identified issues such as delayedproject completion, increased cost, increaseddefects and failure to achieve the specification(Al-Kharashi & Skitmore, 2009; Ibrahim et al.,2010; Sambasivan & Soon, 2007). To date, QMSis perceived as the critical component to thesuccess of management of the constructionindustry (Ahmed et al., 2005; Cachadinha, 2009;Elghamrawy & Shibayama, 2008). QMSimplementation can be conducted based on ISO9001, Total Quality Management (TQM) orBusiness Process Reengineering (BPR). Mostconstruction companies have adopted the ISO9001 certification as the quality approach fortheir companies. Recently, ISO 9001 certificationhas become acceptable worldwide with theconstant increase in number of companiesseeking for ISO certification (Llach, Marimon, &Bernardo, 2011).The advantages from the implementation ofISO 9001:2008 have been proved by manystudies. By being certified with ISO 9001, manyconstruction companies have increased theirbusiness performance (Zeng et al., 2007), whichwas shown by the increase in customersatisfaction, reduced rework, noncomplianceitems and less wastage and improved profitsmargins as well as increased businessopportunities (Beattie, 1999; Karim et al., 2005;Ofori, Gang, & Briffett, 2002; Palaneeswaran,Ng, & Kumaraswamy, 2006; Turk, 2006).Although the benefits of ISO certificationhave clearly identified, there are yet a number ofconstruction organizations still reluctant to becertified. As reported by CIDB (ConstructionIndustrial Development Board) in 2010, there is alow number in registration of contractors for ISO9001:2008 certification. As stated by Baiden etal. (2006), the main reason for this is because ofhigher cost on obtaining the ISO certification.
Quality Management System in Contractor Organisations:An Empirical Study on Costs and Benefits of ISO 9001:2008 ImplementationThis is parallel with the results obtained by Karimet al. (2005) studying the Australian constructionindustry, which discovered the barriers inimplementing the QMS as more time is requiredto be spent in management, requirement of morestaff, less operational flexibility that indirectlylead to a high overall project cost. This is mightbe due to some of them could not clearly see therelationship between costs and benefits. Asmentioned by Palaneeswaran et al. (2006), mostcontractors are having misconception over costsand benefits. Therefore, there is a need toanalyses the costs and benefits to prove thatbenefits can outweigh the costs (Ng et al, 2012).This paper attempts to estimate to the extentpossible, the costs and benefits of ISO 9001 to acontractor. This paper addresses two objectives.The first objective is to investigate the perceivedbenefits of implementing ISO 9001:2008certification. The second objective is todetermine the perceived costs of implementingISO 9001:2008 certification for the constructionfirms. The implication of this study can serve asguidance for the Construction IndustryDevelopment Board (CIDB) to formulate aquality promotional strategy in increasing thenumber of G7 contractors pursuing the ISO9001:2008 certification. In the followingsections, the definitions of quality, costs andbenefits of the ISO 9001:2008 are furtherexplained in the literature review. Next, studymethodology selected to collect and analyze thedata is described. This is followed by the findingsand discussion section. Finally, the last s stated for future studies.2.0LITERATURE REVIEW2.1Definitions of Quality, Quality Systemand Quality Management SystemIn construction perspective, quality is referred toas meeting the client’s requirement based on thecontract specification (Gibson & Hamilton,1994). Similarly as defined by Jha and Iyer(2006), quality in construction is achieved by“meeting the customer expectation” or“compliance with customer’s satisfaction”. Sincecustomers can be classified into internal andInternational Journal of Real Estate Studies, Volume 11 Number 5, 2017external customers, it can be said that the qualityof construction project depends on meeting therequirements of each party involved in theconstruction project such as contractors,consultants as well as the project owners (Arditi& Gunaydin, 1997). On the other hand, ISO 8402defined quality system as “the organizationstructure, responsibilities, procedure andresources needed to implement qualitymanagement”. Meanwhile, quality managementinvolves all activities of the overall managementfunction determining the quality policy,objectives and responsibilities and implementsquality planning, quality assurance, qualitycontrol and quality improvement within qualitysystem. So, it can be concluded that the QMS isthe interaction between people, processes anddocumentations to meet the requirements andsatisfaction of customers (Abdul HakimMohamed, 2006).2.2Background of ISO 9001:2008ISO 9001 QMS series standards have beenapplied in almost all sectors such asmanufacturing, medical, transportation as well asconstruction. ISO 9000 was first established in1987 with the basis of the UK qualitymanagement system standard BS5750 aiming atpromoting the quality services and productsprovided by different sectors (Chin and Choi,2003). This quality system is based on the qualitymanagement principles (QMP) namely customerfocus, leadership, involvement of people, t, factual approach to decisionmaking and mutually beneficial supplierrelationship. Among these eight principles, fiveof them are considered as the main clauses, whichare quality management system, managementresponsibility, resource management, productrealization, as well as measurement, analysis andimprovement.On the other hand, the implementation of ISO9001 series in contractor companies isencouraged by several factors. As mentioned byChini & Valdez (2003), the adoption of ISO 9001in the US construction industry is to implementbetter quality management, quality control andquality assurance for organizations. Meanwhile,the UK construction industry is motivated toPage 2
Quality Management System in Contractor Organisations:An Empirical Study on Costs and Benefits of ISO 9001:2008 Implementationadopt the ISO 9001 as the basis to achieve theclients’ requirement, improve the quality ofmanagement and product/services, and sharpenthe competitive market (Moatazed-Keani IV &Ghanbari-Parsa Sechi, 1999). Besides, theestablishment of ISO quality series is also drivenby the government, which utilizes the ISO 9001quality system as prequalified for public sectorprojects (Karim et al., 2005) as the guarantee toraise quality standard at all project levels and toensure that project operations are based on aproper quality planning (Trigunarsyah et al.,2011).Malaysian construction industry has alsoadopted the same quality standards. ConstructionIndustry Development Board (CIDB) in Malaysiahas put a mandatory requirement for the Grade 7contractors to obtain ISO 9001 certificationbefore January 1, 2009. If they fail to do so, theirgrade will downgraded, which adversely affecttheir ability to run business operations (Din, AbdHamid, & Bryde, 2011). Since 2000, the CIDBMalaysia has introduced a scheme of Do-ItYourself (DIY) to all contractors to help themgetting the certification of ISO 9001. This schemehelps the contractors to obtain ISO 9001 at theaffordable cost and time (Abdullah, 2012).2.3Costs of ISO 9001:2008 ImplementationCosts of quality represent a considerableproportion of a company’s total costs. Inconstruction industry, quality costs as a whole arerelatively high in terms of total project costs(Aoieong et al, 2002). The cost of implementingISO 9001 in construction organization can bedivided into two groups, which are internal andexternal costs (Rahhal & Madhavji, 1996).External costs include all fees for consulting,registration and audit, which are predictable,quotable, contractual and often fixed. Whereasinternal costs include the cost on defining,developing and implementing the processes andprocedures for the quality system in complianceto the requirements of the ISO 9001 standards(Rahhal & Madhavji, 1996).Leung et al. (1999) in their survey haveclassified cost into two categories, which are costduring the implementation and the cost onmaintaining ISO 9001 implementation. Costsinvolved during the implementation are includedInternational Journal of Real Estate Studies, Volume 11 Number 5, 2017the consultant fees, certification audit fees,equipment calibration fees, purchase g the documentation system, stafftraining, recruiting additional staff and additionaltime spent on setting up the ISO system. On theother hand, the costs involved in maintaining theISO 9001 system are surveillance audit fees,equipment calibration fees, cost of maintainingthe documentation system, staff training and theadditional time spent on maintaining the ISO9001 system (Leung et al., 1999). Besides that,Ng et al. (2012) separated the costs of ISO 9001into three categories; 1) Initial costs (thedevelopment of quality manual and proceduresfor certification); 2) Running costs (how muchthe contractor has to spend to keep the ISO 9001running); 3) The change in running costs betweendifferent versions of ISO 9001. Based on thesestudies with respect to the adoption of ISO 9001,it can be concluded that the general costsinvolved on ISO 9001 system are:Table 1: Cost of ISO 9001Costs of ISO 9001ImplementationsConsultants feesEquipment calibrationfeesCost of establishing thedocumentation systemCost of recruitingadditional staff forimplementation of ISO9001Additional investmenton informationtechnologySurveillance auditfeesCost of maintaining thedocumentation systemCost of recruitingadditional staff formaintaining ISO 9001Certification audit feesPurchase of additionalequipmentExpenditure ofproviding the ISO 9001trainingAdditional time spentby existing staff onsetting up ISO 9001systemPurchase of softwarefor ISO 9001Equipment calibrationfeeExpenditure ofproviding ISO 9001training for staffAdditional time spentby staff onmaintaining the ISO9001 systemsSources: Aoieong et al., 2002; Leung et al., 1999; Ng et al.,2012; Rahhal & Madhavji, 1996Page 3
Quality Management System in Contractor Organisations:An Empirical Study on Costs and Benefits of ISO 9001:2008 008The benefits of implementing the ISO 9001 in theconstruction industry have been reported by anumber of previous studies. Moatazed-Keani IVand Ghanbari-Parsa Sechi (1999) discovered thatthe adoption of ISO 9001 has given the positiveimpact by showing less failure work, bettermanagement, retained business, enhancedsatisfaction of the customers and less wastage onsite. Furthermore in Hong Kong, ISO 9001implementation has showed its improvementfrom the customers’ satisfaction perspective withthe contractors benefitted through reducedrework and non-compliance items, less wastage,improved profits margins and businessopportunities (Palaneeswaran et al., 2006).Besides, Turk (2006) reported that ISO 9001 hasmade a positive impact to the Turkishconstruction industry.Additionally, Ofori et al. (2002) identifiedthat lessons learned from adoption of ISO 9001ensures that a construction company can be moreefficient in its subsequent projects using tions and increasing productivity aswell as improving its standard operatingprocedures. Based on the study carried out byKarim et al. (2005), most Australian constructioncompanies had enjoyed the advantages ofadopting the ISO 9001. These benefits arereported as follow:i)Majority of the respondents indicatedthat quality assurance system resulted inless rework and repair along with fewerproblems in the defect liability period;ii) Increased operational efficiency withrespondents believing that quality systemcan result in continual improvement ofoperation;iii) Improved internal performance appraisalsystemsresultedfromtheimplementation of QMS.iv) Improved internal communication;v) Achievement of a greater customersatisfaction;vi) Achievement of better management, and;International Journal of Real Estate Studies, Volume 11 Number 5, 2017vii) Documentation provided indicating amore systematic record keeping ofcompanies.In Malaysia, Said et al. (2009) listed severaladvantages of ISO 9001 implementation inMalaysian construction industry, which are:i)Enhanced image and reputation oforganization;ii) Performance improvement and increasedcustomers’ satisfaction;iii) Establishment of clear documentedprocedures and instructions, and;iv) Efficiency of operations in constructionsite.Based on these studies with respect to theadoption of ISO 9001, it can be summarized thatthe general practice of ISO 9001 can provideadvantages as follows:Table 2: Benefits of ISO 9001Benefits of ISO 9001ImplementationsImproved team spiritLess staff conflictsClearer working procedure Lower staff turnover rateMore suggestion fromImproved internalstaffcommunicationReduced wastage ofShorter delivery leadmaterialstimeIncreased efficiencyImproved quality ofproduct or serviceBetter control ofReduced operationalsubcontractorcostIncreased quantity ofReduced defectsproductionIncreased sales withAttract more newexisting customersoverseas customersLess complaintsIncreased profitsCustomers exercising lessImproved suppliercontrol on processrelationshipSources: Karim et al., 2005; Moatazed-Keani IV &Ghanbari-Parsa Sechi, 1999; Ofori & Gang, 2001;Palaneeswaran et al., 2006; Turk, 20063.0STUDY METHODOLOGYThis paper focuses on the benefits and costs ofISO 9001:2008 certification as perceived by theconstruction companies. The questionnaire wasdivided into two main sections. Section APage 4
Quality Management System in Contractor Organisations:An Empirical Study on Costs and Benefits of ISO 9001:2008 Implementationconcerns on determining the costs ofimplementingISO9001:2008QualityManagement System in construction firms.Section B investigates the benefits ofimplementingISO9001:2008QualityManagement System in construction firms. Theobjective of this paper depends very much on theselected sample, which is important to ensure thatthe samples can represent the targeted population.Thus, it is important that the targeted contractorshave been certified under ISO 9001:2008. Sincethose certified as Grade 7 must have an accreditedISO 9001:2008, the contractor lists maintained bythe CIDB were selected as the starting point forsample selection. Then, contractors in JohorBharu were selected as the respondents for thisstudy. The selection of Johor Bharu as the scopeof study is because it is one of the regions that arehighly active on construction activities.Furthermore, time and financial factors are theconstraints in comprehensive study on the entirecities in Malaysia.A total 429 construction companies wereregistered with CIDB in Johor Bharu. Byreferring to the table by Rea and Parker (2014),the minimal sample for the total of 500populations was 217. Therefore, for the purposeof this study, about 200 copies of questionnairewere distributed to construction companiesaround Johor Bharu. All the variables wereadapted from various literatures related to QMSin construction industry. Questionnaire using 5point Likert type scale was used to gather data forthe construct of the study. The scale is on theinteger number from “strongly disagree” (1) to“strongly agree” with “neutral” (3) as the middlepoint. The respondents were required to indicatetheir views by indicating or marking one of theinteger numbers. Then, mean rank was used to geta clearer picture on their most preferencesregarding costs and benefits on ISO 9001implementations to their firms. To rank the items,the rating scale formula was used as follows:X1 W1 X2 W2 X3W3 XnWnYWhere:X Weight of answer choiceW Response count for answer choiceY Total respondentInternational Journal of Real Estate Studies, Volume 11 Number 5, 2017The weights assigned to each answer are shownin parentheses:Strongly DisagreeDisagreeNeutralAgreeStrongly Agree4.0 1 2 3 4 5RESULTSA total of 200 questionnaires were distributed viamail and hard copy to the selected contractorfirms in Johor Bharu. However, only 44questionnaires were successfully collected. Theresponse rate in this study was 20%, which isconsidered acceptable according to Akintoye(2000) and Dulaimi, Ling, and Bajracharya(2003) stating that the normal response rate in theconstruction industry is between 20-30%. Thissection discusses the results based on the surveyconducted.4.1Costs on9001:2008ImplementingofISOThere were 16 costs involved on the ISO 9001implementation as identified from the previousstudy. As mentioned earlier, Likert- Scale wasused for this study to get the view from contractorfirms regarding which items impacted them themost.Table 3 shows the classification of fivecategories (Strongly Disagreed, Disagreed,Neutral, Agreed and Strongly Agreed) based onthe responses on the costs and required resources.It can be observed that majority of therespondents “strongly agreed” (31.8%) thatexpenditure on providing the ISO 9001 training isthe highest cost involved in the implementationof ISO 9001. Meanwhile, 25% total respondentstrongly agreed that additional time by existingstaff on setting up ISO 9001system gave thesignificant impact on implementation costs.While comparing to the “agreed” scale, 61.4% oftotal respondents agreed that equipmentcalibration fees is the one of the costs frequentlyinvolved in the ISO 9001 implementationfollowed by “cost of establishing thedocumentation system” with 56.8%.Page 5
Quality Management System in Contractor Organisations:An Empirical Study on Costs and Benefits of ISO 9001:2008 ImplementationTo get a clearer picture regarding the cost,mean rank was used. Based on this analysis, thecosts incurred by the construction firms werearranged according to preference. Table 4 lists theranks and mean scores of the 16 items’ costs onimplementing ISO 9001:2008 to the constructionfirms. “Expenditure of providing the ISO 9001training” was ranked first among 16 items,whereas “Additional time spent by existing staffon setting up ISO 9001 system” and “Cost ofestablishing the documentation system” wereranked second and third, respectively. “Purchaseof software for ISO 9001” was ranked as the lastcost involved in the implementation of ISO 9001.Table 3: Frequency of costs in implementing ISO9001 Quality Management SystemCostsConsultant feesCertificationaudit feesEquipmentcalibration feesPurchase ofadditionalequipmentCost ofestablishing thedocumentationsystemExpenditure ofproviding theISO 9001trainingCost ofrecruitingadditional staffforimplementingISO 9001Additional timespent byexisting staff onsetting up ISO9001 systemAdditionalinvestment oninformationtechnologyPurchase ofsoftware for ISO9001Surveillanceaudit feesSD0%0%D4.5%0%SANA31.8% 47.7% 15.9%31.8% 50% 18.2%0%0%0%4.5%27.3% 52.3% 15.9%0%2.3%20.5% 56.8% 20.5%29.5% 61.4%0%15.9% 52.3% 31.8%0%2.3%36.4% 45.5% 15.9%0%0%6.8%4.5% 15.9%0%4.5%27.3% 47.7%31.8%25%50%0%6.8%31.8%50%11.4%0%4.5%34.1% 45.5% 15.9%0%6.8%36.4% 38.6% 18.2%0%9.1%31.8% 45.5% 13.6%0%4.5%27.3% 52.3% 15.9%Note: SD-Strongly Disagree; D-Disagree; N-Neutral; A-Agree; SAStrongly AgreeTable 4: Mean Score of Costs for ISO 9001 QualityManagement System9.1%0%0%Equipmentcalibration feeCost ofmaintaining thedocumentationsystemExpenditure ofproviding ISO9001 trainingfor staffCost ofrecruitingadditional stafffor maintainingISO 9001Additional timespent by staff onmaintaining theISO 9001system25%11.4%CostsExpenditure of providing the ISO9001 trainingAdditional time spent by existing staffon setting up ISO 9001 systemCost of establishing the documentationsystemCertification audit feesAdditional equipment purchasedEquipment calibration feesAdditional time spent by staff onmaintaining the ISO 9001 systemCost of recruiting additional staff forimplementation of ISO 9001Consultants feesSurveillance audit feesCost of maintaining the documentationsystemExpenditure of providing ISO 9001training for staffAdditional investment on informationtechnologyEquipment calibration feeCost of recruiting additional staff formaintaining ISO 9001Purchased software for ISO 7563.753.753.736673.6883.6693.663.649103.431140.9% 13.6%29.5% 52.3% 13.6%International Journal of Real Estate Studies, Volume 11 Number 5, 2017Page 6
Quality Management System in Contractor Organisations:An Empirical Study on Costs and Benefits of ISO 9001:2008 Implementation4.2Benefits on9001:2008ImplementingofISOHaving examined the cost of developing andimplementing an ISO 9001:2008, it is crucial todetermine the benefits that can be obtained fromusing a system. There were 18 items presentingthe benefits of using the ISO 9001 system. Table5 illustrates the classification of five categories(Strongly Disagreed, Disagreed, Neutral, Agreedand Strongly Agreed) based on the responses onthe benefits and required resources. From theTable 5, majority of respondents “stronglyagreed” that ISO 9001 implementation canimprove their quality of products or services with34.1%. Meanwhile, 29.5% strongly agreed thattheir companies have seen an increase inefficiency of their services after the ISO 9001implementation. This was followed by “acquireda better control of subcontractor” and “attractedmore new overseas customers” with 27.3%.However, when comparing with the “agreed”scale, it can be said that the result is slightlydifferent with the highest percentage on “agreed”is “clearer working procedure” (68.2%),“Increased quantity of production” (63.6%), andfollowed by “improved team spirit” and“received less complaints” with 59.1%,respectively. Therefore, the mean score wascalculated for each item to identify the mostimportant benefits in implementing ISO9001:2008 in contractor firms. Table 6 shows theranking of these benefits.Table 5: Results on Benefits of ISO 9001ImplementationBenefitsImproved teamspiritClearer workingproceduresLess staffconflictsLower staffturnover rateReceived moresuggestionsfrom staffImprovedinternalcommunicationSD2.3%SADNA6.8% 20.5% 59.1% 11.4%2.3%2.3% 6.8% 68.2% 20.5%2.3%6.8% 34.1% 43.2% 13.6%4.5% 18.2% 40.9% 27.3% 9.1%2.3%4.5% 47.7% 31.8% 13.6%0%4.5% 27.3% 52.3% 15.9%International Journal of Real Estate Studies, Volume 11 Number 5, 2017Reducedwastage ofmaterialsShorter deliverylead timeIncreasedefficiencyImprovedquality ofproducts orservicesA better easedquantity ofproductionReduced defectsIncreased saleswith existingcustomersAttracted morenew overseascustomersReceived lesscomplaintsIncreasedprofitsCustomersexercising lesscontrol on yourprocessImprovedsuppliers’relationship0%4.5% 27.3% 52.3% 15.9%0%6.8% 27.3% 52.3% 13.6%0%6.8% 15.9% 47.7% 29.5%0%2.3% 15.9% 47.7% 34.1%0%0.0% 18.2% 54.5% 27.3%0%9.1% 36.4% 47.7% 6.8%0%9.1% 11.4% 63.6% 15.9%0%2.3%4.5% 25% 45.5% 25.0%0.0% 25% 54.5% 18.2%2.3%2.3% 31.8% 36.4% 27.3%0.0% 11.4% 15.9% 59.1% 13.6%2.3%2.3% 34.1% 47.7% 13.6%6.8%4.5% 36.4% 47.7% 4.5%0.0%6.8% 38.6% 38.6% 15.9%Note: SD-Strongly Disagree; D-Disagree; N-Neutral; A-Agree; SAStrongly AgreeBased on Table 6, improved quality ofproducts or services was ranked first as thebenefits in implementing ISO 9001 systems(mean: 4.14). Then, better control onsubcontractors was ranked second (mean: 4.09)with clearer working procedure as the third(mean: 4.02). Increased efficiency was the fourthimportant benefit (mean: 4.00) perceived by thecontractor on implementing ISO 9001 systems,then increased quantity of product or services onthe fifth rank with mean score of 3.91. Lowerstaff turnover was ranked last as the benefit thatcan be obtained by the contractors upon the ISO9001:2008 implementations.Page 7
Quality Management System in Contractor Organisations:An Empirical Study on Costs and Benefits of ISO 9001:2008 ImplementationTable 6: Mean Score of Benefits of ISO 9001Quality Management SystemBenefitsImproved quality of product or serviceA better control on subcontractorsClearer working proceduresIncreased efficiencyReduced defectsIncreased quantity of productionIncreased sales with existingcustomersAttracted more new overseascustomersImproved internal communicationReduced wastage of materialsReceived less complaintShorter delivery lead timeImproved team spiritIncreased profitsImproved suppliers’ relationshipLess staff conflictsReduced operational costsReceived more suggestions from staffCustomers exercising less control onyour processLower staff turnover 88910111213141516173.1818DISCUSSIONS OF THE RESULTSFrom the respondent’s point of view, expenditureof providing the ISO training was the highest costinvolved in the ISO 9001 implementation. At theinitial stage, it is important to make all the partiesfamiliarized with the quality concept; how thesystem is implemented and who is responsible forit. Providing the training is the best way to gainsignificant impact on ISO 9001 implementation.Moreover, it has been mentioned by previousstudy that training is one of the success factors inimplementing quality management system(Abdul Hakim Mohamed, 2006;Abdullah, 2012;Pheng & Hwa, 1994). Thus, it is crucial forconstruction firms to allocate a large budget toprovide training to the entire parties. Besides,additional time required to setup the ISO 9001 isone of the costs that should be considered by thecontractor companies. This was followe
& Gunaydin, 1997). On the other hand, ISO 8402 defined quality system as “the organization structure, responsibilities, procedure and resources needed to implement quality management”. Meanwhile, quality management involves all activities of the overall management function determining the quality policy,
A Contractor Representative MUST be designated for all contractors working at the University. A key role of the Contractor Representative is to ensure that this contractor safety management program is followed. When the contractor is a prime contractor, the specific responsibilities of the Contractor Representative includes ensuring:
3. REQUIRED APPOINTMENTS AS PER THE CONSTRUCTION REGULATIONS Ite m Regulation Appointment Responsible Person 1. 5(1)(k) Principal contractor for each phase or project Client 2. 7(1)(c)(v) Contractor Principal Contractor 3. 7(3) Contractor Contractor 4. 8(1) Construction Manager Contractor 5. 8(2) Assistant Construction Managers Contractor 6.
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h) The Contractor will not use Contractor Agents to perform the Services who are not employees of the Contractor without the Exchange's prior written consent and, upon receipt of such consent, prior to use of such Contractor Agent, the Contractor shall secure an assignment to the Exchange of any work product produced by such Contractor Agent. 8.
Project Delivery n Design-Build (D/B) n Contractor and Architect team and form a single entity to provide a service to the owner n A/E and Contractor have a contract in this model n Typically Contractor has lead role n Architect relinquishes control of project n Works under the guise of the Contractor n Contractor controls costs & quality n Architect is selected by Contractor
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contractor exemption certificate from the prime contractor. Prime Contractor's Exemption Certificate construction services or realty improvement Except for projects for a qualified utility, it is the prime contractor's responsibility to issue prime contractor's exemption certificates to all subcontractors for each project.
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