One of our larger clients, a German Consultancy is working on several hydro projects around the world, they are currently dealing with one in Asia of which they have asked as to help them find a very experienced Contract Engineer/Manager for their hydropower project in Nepal. They are looking for the following:
The Consultant shall monitor the Contractor’s work to determine overall progress on a monthly basis and ensure that the work schedule is maintained and costs minimised by means of, among others, the following activities:
– Review and, if it is found satisfactory, consent to the Contractor’s proposed program of work to meet key dates established in the construction Contract. Prepare and maintain progress programs and graphs for use in monitoring and reporting of the progress. All programs shall be in bar chart form, based upon CPM network analysis. All data shall be provided to the Client in hard copy and computer usable form (disks) on a monthly basis. Timeline Primavera, or similar, should be considered as management/scheduling software.
– Analyse deviation in progress compared to the Contractor’s work schedule. The Consultant shall assess trends of actual rates of progress relative to planned rates, and impacts, if any, on future plans. From his analyses, the Consultant shall, at any time necessary, instruct the Contractor to propose and implement corrective measures to ensure that the key objectives stated in the construction Contract are met. The Contractor’s current work schedule together with the Consultant’s analysis and recommendations shall be included in the Consultant’s monthly report to the Client.
– If and when progress falls behind the schedule, request the Contractor to present his plan for recovering the delay, or in the case that the delay is caused by circumstances beyond the Contractor’s responsibility and control, ask the Contractor for his proposal for actions to regain the currently valid schedule. If such proposal exceeds the Consultant’s authorization for additional expenditure, prepare the matter with his recommendation for the Client’s decision, who will either approve an order to the Contractor for acceleration or accept the work program to be revised.
– Keep records of all measurements and agreements and incorporate a summary of major measurement data in the monthly progress reports.
– At intervals of three months, or more frequently if required by major changes, the Consultant shall prepare estimates of projected final quantities required to complete the Works. The Consultant shall also estimate the time required to complete the Works and notify the Client of any projected time overrun of construction schedule together with proposed measures to recapture lost time or accelerate work progress.
– At intervals of three months, the Consultant shall carry out a systematic safety audit of the construction and non-construction areas of the Contractor’s site and include major findings in the subsequent monthly reports.
Manage Claims and Variation Orders
The Consultant shall carry out, among others, the following activities to manage claims by the Contractor and prepare Variation Orders for changes to the scope of work, in accordance with the requirements of the construction Contract:
– Maintain records of all field instructions
– Prepare and issue Variation Orders according to Contract Procedures, and present and recommend Variation Orders, exceeding the Consultant’s authority for decision, to the Client for approval and decision.
– Keep records of any work authorized to be undertaken by the Contractor as Day works.
– Attempt to recognize in advance and prevent potentially contentious situations, and take action to resolve any disputes, which do arise before they become formal claims.
– Receive and review any claims for extension of time and/or additional compensation, The Consultant shall promptly report such claims to the Client.
– Make recommendations to the Client regarding settlement of claims. In consultation with the Client, try to settle any claim amicably.
– In cases of dispute between the Client and the Contractors, attend all meetings, and assist in negotiations necessary to settle the dispute
Certify Contractors’ Monthly Statements
The Consultant shall process and, as appropriate, certify for payment of the Contractors’ monthly statements and other contractual payments to ensure that such statements reflect work completed in accordance with the Contract. To this effect, the Consultant shall, inter alia;
– In consultation with the Client, set up appropriate procedures for the processing of Contractor’s requests for payment. Before work starts, the Consultant shall agree with the Contractor and the Client the format of the Contractor’s monthly statements. All statements shall be produced in hard copy and computer usable form (disks).
– In conjunction with the Contractor, make monthly measurements of work carried out for use in monthly statements, review the Contractor’s applications for interim payments and prepare a final measurement of the completed Works for the final invoice.
– Within 28 days of receipt of the Contractor’s application, issue interim payment certificates and transmit the certificates to the Client for payment.
– Prepare a statement of the construction Contract accounts, as of the date of the Taking-over Certificate for all of the Works and taking account of the potential costs of any outstanding claims, estimated repair costs of known deficiencies during the Defects Liability Period etc.
– Review and certify Contractor’s requests for release of retention money and final payments.
Monitor Contract costs
– The Consultant shall monitor the contract Costs referred to the contract budget.
– The Consultant shall at intervals as provided in the Consultant Contract update the cost estimate of the construction contracts incorporating actual and projected quantities, costs of Variation Orders, potential costs of claims, and projected expenditures from provisional sums.
– The Consultant shall carry out this update using a computerized budget and cost forecast (BCF) system at intervals of not more than 6 months or when major changes occur. The estimated cash flow until completion of the Contracts shall also be prepared based on the revised Contract costs.
– The Consultant shall ensure that the Client is advised sufficiently in advance of the time when any additional funds will be required for appropriation to the Contract Budget.
– The Consultant shall institute a Project Cost Monitoring System (PCMS) for monitoring costs to date and forecasting costs to completion, relative to Contract Budgets.