Chapter 7 Contract Management - Cedd

Project Administration Handbook for Civil Engineering Works2020 EditionCONTRACT MANAGEMENTIssue DateOctober 2020Amendment IncorporatedNAGo to Table of ContentRevFirst Issue The parts of the PAH shown in blue and boldshould only be updated by Works Branch ofDevelopment Bureau.Go to Table of ContentCHAPTER 7 Go to Table of ContentChapter 7 (Rev. 0)1

Project Administration Handbook for Civil Engineering Works2020 EditionSYNOPSISThis Chapter provides reference and general guidelines on management of civilengineering contracts. It is basically written for capital works contracts and reference ismade to the General Conditions of Contract for Civil Engineering Works (1999 ons and press releases/publications/standard contractdocuments/practice notes nec engineering construction contract/index.htmlGo to Table of Content Owing to the complicated and complex nature of contract management, theguidelines provided in this Chapter shall in no way be construed as directives overriding thepowers and responsibilities of the Engineer/Engineer’s Representative under GCC formcontracts and the Project Manager/Project Manager’s Representative/Supervisor under NECform contracts who shall always make their own decisions under their contracts’ provision. Whilst the guidelines provided in this Chapter were originally written for contractmanagement under GCC, the majority of them can still be applied to contract managementunder NEC. Where appropriate, this Chapter shall be read in conjunction with the PracticeNotes for relevant subjects of contract administration. In addition, project officers shall referto the relevant guidelines or practice from corresponding Works Departments regarding howthe duties of the Engineer / Architect / Surveyor / Supervising Officer under GCC formcontracts would be taken up by the Project Manager / Supervisor under NEC form contracts.Please also refer to para. II.04 in this Chapter for the comparison of common terminologiesused under GCC and NEC–ECC.Go to Table of ContentTo cater for the wider adoption of New Engineering Contract (NEC) form in publicworks projects, DEVB has promulgated the “Practice Notes for New Engineering Contract –Engineering and Construction Contract (NEC–ECC) for Public Works Projects in HongKong” (referred to as “the Practice Notes”) aiming to provide guidance, performancebenchmarking and alignment of practices in the administration of public works projects usingNEC form. The most updated version of the Practice Notes is available at DEVB’s website:Go to Table of ContentChapter 7 (Rev. 0)2

Project Administration Handbook for Civil Engineering Works2020 EditionCONTENTSSYNOPSIS . 2CONTENTS . 3ACTION CHECKLIST AT COMMENCEMENT OF CONTRACT . 182.ACTION CHECKLIST ON COMPLETION OF CONTRACT . 213.THE SITE . 223.1HANDING OVER TO CONTRACTOR. 223.2JOINT SURVEY AND SETTING OUT . 223.3MANAGEMENT . 233.4SECURITY . 243.5PROJECT SIGNBOARD . 243.5.1Size and Location .243.5.2Details of Project Signboard .243.5.3Erection, Maintenance and Removal .253.6TEMPORARY UTILITY SUPPLIES . 253.7RE-POSSESSION ON COMPLETION . 253.8SITE ACCOMMODATION FOR RESIDENT SITE STAFF . 264.SUPERVISING PERSONNEL . 274.1ENGINEER’S STAFF . 274.2CONTRACTOR’S STAFF . 274.2.1Technical Resources and Site Supervision Structure .274.2.2Site Agent .274.2.3Surveyor.274.2.4Safety Officer.284.2.5Technician Apprentices and Building and Civil Engineering Graduates .284.2.6Registered Skilled Workers and Registered Semi-skilled Workers .284.3SUPERVISION FOR GEOTECHNICAL WORKS . 284.4SUPERVISION FOR PILING WORKS . 304.5SUPERVISION FOR SOFT LANDSCAPE WORKS . 304.6EMPLOYMENT OF LABOUR RELATION OFFICER (LRO) . 304.7QUALITY SITE SUPERVISION PLAN (QSSP). 315.RECORDS . 325.1GENERAL . 325.2CONTRACT DOCUMENTS . 325.3RECORD DRAWINGS . 335.4SITE DIARY . 335.5SITE MEASUREMENT BOOK . 345.6PROGRESS CHART . 34Chapter 7 (Rev. 0)3Go to Table of Content1. GLOSSARY OF TERMS . 17Go to Table of ContentII. ABBREVIATION. 14Go to Table of ContentI.

Project Administration Handbook for Civil Engineering Works5.155.165.175.185.19INCLEMENT WEATHER . 35SITE INSTRUCTIONS . 35DAYWORKS . 35INVENTORY OF FURNITURE AND EQUIPMENT . 35MINUTES OF MEETINGS AND CORRESPONDENCE . 36RECORD PHOTOGRAPHS . 36REQUEST FOR INSPECTION AND SURVEY CHECK . 37RECORD OF MATERIALS AND EQUIPMENT PROVIDED BYGOVERNMENT. 37MATERIALS TESTING . 38LABOUR RETURNS AND WAGES . 40USE OF CONTRACT TRANSPORT . 41MISCELLANEOUS RECORDS . 42CUSTODY AND DISPOSAL . 448.EXTENSION OF TIME FOR COMPLETION AND LIQUIDATEDDAMAGES . 618.1EXTENSION OF TIME FOR COMPLETION AND LIQUIDATEDDAMAGES . 618.1.1General Principles.618.1.2Reasons for Extension.638.1.3Procedure.668.2LIQUIDATED DAMAGES . 66Chapter 7 (Rev. 0)4Go to Table of ContentCONTRACT PAYMENTS . 527.1ARRANGEMENT FOR PAYMENTS TO CONTRACTOR . 527.2INTERIM PAYMENTS . 527.2.1General Principles.527.2.2Procedure.537.2.3Minimum Amount .557.2.4Contract Price Fluctuation .567.2.5Deductions.567.3FINAL PAYMENTS . 567.4MISTAKES IN PAYMENTS . 577.5OVERDUE PAYMENTS . 587.6RE-ENTERED CONTRACTS . 587.7MEASURES TO ASSIST THE CONSTRUCTION INDUSTRY. 58 7.Go to Table of ContentPROGRAMME, PROGRESS & EXPENDITURE . 466.1CONTRACTOR’S PROGRAMME AT COMMENCEMENT . 466.2PROGRAMME UPDATING AND REVISION . 476.3MONITORING AND REPORTING PROGRESS . 476.4ACTION IN CASE OF SLOW OR VARIABLE PROGRESS. 486.5MONITORING AND ESTIMATING EXPENDITURE . 486.6AUTHORITY TO INCREASE CONTRACT SUM . 506.7SECTIONS SUBJECT TO EXCISION. 516.8MINOR WORKS . 51 6.Go to Table of Content5.75.85.95.105.115.125.135.142020 Edition

Project Administration Handbook for Civil Engineering Works8.2.18.2.22020 EditionAuthority.66General Principles.66SITE SAFETY . 7111.1 RESPONSIBILITY. 7111.2 CONTRACTOR’S SAFETY ORGANISATION. 7111.3 MONITORING AND LIAISON WITH LABOUR DEPARTMENTAND MARINE DEPARTMENT . 7111.4 CHECKING AND AUDITING OF TEMPORARY WORKS . 7311.5 REPORTING OF SITE INCIDENTS AND ACCIDENTS . 7411.6 SPECIAL PRECAUTIONS WITHIN RAILWAY RESERVES . 7511.7 REGULATING ACTIONS ON CONTRACTORS CONVICTED OFSITE SAFETY OFFENCES OR INCURRING SERIOUS INCIDENTSON SITE . 7611.8 DEPARTMENTAL SAFETY AND ENVIRONMENTAL ADVISER. 7611.9 CONSTRUCTION SITE SAFETY MANUAL. 7711.10 PAY FOR SAFETY AND ENVIRONMENT SCHEME . 7711.11 SCORE CARD FOR ASSESSMENT OF SITE SAFETYPERFORMANCE . 7811.12 SITE SAFETY CYCLE . 7811.13 SAFETY TRAINING . 7912.ENVIRONMENTAL PROTECTION . 8012.1 NOISE CONTROL . 8012.1.1 Working Within Restricted Hours .8012.1.2 Processing of Construction Noise Permit (CNP) .8012.1.3 Monitoring Noise Control Measures.8012.1.4 Sanctions Against Offences .8112.2 PREVENTION OF WATER POLLUTION . 8112.2.1 Water Pollution Control Ordinance (Cap. 358) .8112.2.2 Dumping at Sea Ordinance (Cap. 466).8112.3 PREVENTION OF AIR POLLUTION . 8112.3.1 Classification of Works.8112.3.2 Notification.8312.3.3 Control of Works.8312.3.4 Use of Non-road Mobile Machinery.8412.4 ENVIRONMENTAL PERMIT . 84Chapter 7 (Rev. 0)5Go to Table of Content11. LIAISON WITH OTHERS. 6910.1 LIAISON WITH UTILITY COMPANIES, GOVERNMENTDEPARTMENTS AND OTHERS . 6910.2 FACILITIES FOR THE BLIND . 69Go to Table of Content10. SITE MEETINGS . 689.1OBJECTIVE . 689.2FREQUENCY. 689.3TYPICAL TOPICS . 689.4RECORDS . 68Go to Table of Content9.

Project Administration Handbook for Civil Engineering Works12.512.612.7CONSTRUCTION AND DEMOLITION (C&D) MATERIAL . 8412.5.1 Dumping Licences.8412.5.2 Trip-ticket System .8512.5.3 Waste Management Plan .8512.5.4 Construction Waste Disposal Charging Scheme .86REGULATING ACTIONS ON CONTRACTORS CONVICTED OFENVIRONMENTAL OFFENCES . 86SITE CLEANLINESS, TIDINESS AND CONTROL ON MOSQUITOBREEDING . 86USE OF PFA AS GENERAL FILL IN RECLAMATION . 87ENVIRONMENTAL MANAGEMENT . 8815.REPORTS ON CONTRACTORS’ PERFORMANCE . 9915.1 OBJECTIVE . 9915.2 PROCEDURE AND GUIDANCE . 9916.DETERMINATION OF CONTRACTOR’S EMPLOYMENT . 10116.1 GENERAL . 10116.2 WARNINGS PRIOR TO DETERMINATION OF CONTRACTOR’SEMPLOYMENT . 10116.3 ACTION TO EFFECT DETERMINATION OF CONTRACTOR’SEMPLOYMENT . 10216.3.1 General . 10216.3.2 Actions upon the Serving of a Notice of Determination of Contractor’sEmployment . 10216.3.3 Actions upon Determination of Contractor’s Employment . 10316.3.4 Actions after Determination of Contractor’s Employment. 10416.4 CHECK-LIST FOR ACTIONS REGARDING DETERMINATION OFCONTRACTOR’S EMPLOYMENT . 10616.5 RETENTION OF DOCUMENTS/FILES UNTIL APPROVAL OFWRITE-OFFFORDEFAULTINGCONTRACTORSANDDEFAULTING CONTRACTS . 10817.DAMAGE REPAIRS AND EMERGENCY WORK . 110Chapter 7 (Rev. 0)6Go to Table of ContentCONTRACTUAL CLAIMS. 9614.1 GENERAL . 9614.2 HANDLING OF CLAIMS . 9614.3 AUTHORITY TO SETTLE CLAIMS . 98 14.Go to Table of ContentVARIATIONS . 9013.1 AUTHORITY FOR VARIATIONS . 9013.2 VARIATION ORDERS. 9113.3 VALUATION OF VARIATIONS . 9113.4 EXECUTION OF WORK OUTSIDE THE ORIGINAL SCOPE OFTHE CONTRACT AND CHANGES TO CONTRACT TERMS ANDCONDITION . 9313.5 VARIATIONS AFFECTING ENVIRONMENTAL PERMIT . 9413.6 OMITTED ITEMS AND THEIR VALUATION. 94 13.Go to Table of Content12.812.92020 Edition

Project Administration Handbook for Civil Engineering Works17.117.217.317.42020 EditionDAMAGE REPAIRS GENERALLY. 110DAMAGE TO CROPS AND PROPERTY ON AGRICULTURALLANDS . 110EMERGENCY WORK . 110REPORTING OF MAJOR EMERGENCY INCIDENTS . 111PROCEDURE ON COMPLETION OF WORKS . 11218.1 PRIOR TO ISSUE OF CERTIFICATE OF COMPLETION . 11218.1.1 Criteria for Assessing Completion . 11218.1.2 Handing Over Completed Works. 11218.1.3 Liaison with DLO . 11418.1.4 Outstanding Works . 11418.2 CERTIFICATE OF COMPLETION . 11418.2.1 Procedure. 11418.2.2 Standard Forms. 11518.2.3 Partial Completion. 11518.2.4 Release of Surety Bond and Security Deposit . 11518.3 MATTERS DURING MAINTENANCE PERIOD. 11618.3.1 Working During the Maintenance Period. 11618.3.2 Inspections Before the End of the Maintenance Period. 11618.3.3 Maintenance Certificate . 11618.3.4 Release of Retention Money . 11718.3.5 Report on Completion of the Contract . 11718.3.6 As-constructed Survey . 11718.3.7 Information for Maintenance Authority . 11818.3.8 Electronic Drawings . 11918.4 POST-COMPLETION . 11918.4.1 Post-completion Review. 11918.4.2 Works Contracts with Significant Amount of Omitted Items . 12119.DEDUCTION OF MONIES FROM GOVERNMENT CONTRACTS . 12219.1 GENERAL . 12219.2 ADMINISTRATIVE PROCEDURE. 122 20.CONTRACTS INVOLVING DESIGNS BY CONTRACTOR . 12420.1 ALTERNATIVE DESIGNS FROM CONTRACTORS AFTERCONTRACT AWARD . 12420.2 DESIGNSUNDERTAKENBYCONTRACTORSFORGEOTECHNICAL WORKS . 12420.3 PROFESSIONALINDEMNITYINSURANCEFORCONTRACTOR’S DESIGNS . 125Go to Table of Content21.MISCELLANEOUS . 12621.1 STATUTORY NOTIFICATIONS . 12621.2 TECHNICAL AUDITS . 12721.2.1 Technical Audits on Works Contracts . 12721.2.2 Independent Auditing for Prevention of Sub-standard Works in PublicWorks Construction. 12721.2.3 Technical Audits on Consultancy Agreements . 12821.2.4 Reporting of Audit Findings . 129Go to Table of Content7 Chapter 7 (Rev. 0)Go to Table of Content18.