**24//6-/4()5 - excelencia global · 2019-03-20 · indian institute of quantity surveyors 2015...

IIQS ANNUAL INSIGHT - 2015

Indian Institute of Quantity Surveyors-IIQS

Indian Institute of Quantity Surveyors 2015 IIQS

3 IIQS - 2015 | 3 IIQS - 2015 |


www.iiqsglobal.org

Indian Institute of Quantity Surveyors Indian Institute of Quantity Surveyors (IIQS) is a professional body of Quantity Surveyors and its members include the profes-sionals working in the field of Quantity Surveying, Cost management, Commercial Management, Contract Management, Prop-erty Development, Engineering and other related field. This professional body was formed in December 1998. Ever since its inception, regular monthly Continuing Professional Development events, seminars are convened for its members. It helped the members to grow academically as well as professionally.

Vision

To establish and maintain a high standard of professional compe-tence and integrity by limiting membership to persons who have passed the examinations prescribed by, or acceptable to, the Institute and who have satisfied the requirements of training, practical knowledge, experience and integrity prescribed by the Institute.

Mission

The Mission of the Institute is to ensure professional advancement of Engineering and Quantity Surveying Professionals in the Property Development and Construction Industry, so that they can contribute more effectively in the ongoing development in the construction sector Worldwide and Particularly in India, as well as to share their knowledge and experience with the fellow professionals.

Memberships Available

Student

MIIQS

CIIQS

FIIQS

It’s hard to believe that I am writing the editorial for the second issue of

IIQS Annual Insight. Initially, when the concept was being perceived to

have an Annual Magazine for IIQS, I thought this project was too big for

the team. However, once IIQS Annual Insight first issue was published,

it gave enormous motivation and zeal to all to continue this on an annual

basis with the spirit of ‘together we can’ and that is the “Motto” of IIQS

Annual Insight 2015.

“Rain Falls, because the clouds can no longer handle its weight” Likewise,

IIQS Annual Insight 2015 is like a heavy rain filled with inspiration,

experience and human knowledge. We all need an escape from our stressful

lives sometimes and to do so, we listen to music, read a book, watch a film

or look at some art. I believe IIQS Annual Rain makes you relaxed and

contended.

Similar to IIQS annual Insight 2013, this issue also brings you an impressive

line-up of articles, CPD workshop memories, members’ achievements and

latest happenings and news from IIQS Home. The highlight of this issue

is the informative articles, which is definitely going to inspire you all and

help to enhance your knowledge. The aspect of exploring and discovering

is not only confined to readers but also to the authors as well. Authors also

enhance their learning when they write, it multiplies their knowledge when

they share. It is the IIQS’s “share and gain” approach that makes it stand-

out strong in the industry.

With lots of pride and modesty, we will be unveiling IIQS Annual Insight

2015 at a splendid function ‘IIQS International Conference’ on 1st August

2015 at Bangalore. It would be a great task for the team to make this event

a memorable and wonderful one and I want to say “thank you” for their

enormous efforts. I convey my special thanks to the editorial team who has

worked tirelessly and creatively throughout this journey.

If you ask me how I’d define success for IIQS magazine, I would say

that if this magazine helps even one person overcome adverse professional

circumstances, it would be the success beyond measure.

We truly hope that our readers would enjoy our humble effort. We will

be immensely interested to know your views on the magazine so that we

continually strive to improvise in our journey towards excellence.

Thank you,

Sinimol Noushad

Sinimol NoushadBTech, MBA, FRICS, MIS, MIIQS

IIQS Magazine Chief Editor & UAE Publications Lead

Rain falls, because the clouds can no longer handle its weight” Likewise, IIQS Annual Insight 2015 is like a heavy rain filled with inspiration, experience and human knowledge.

Editor’s noteEditor’s note


5 IIQS - 2015 | 4 | IIQS - 2015 5 IIQS - 2015 |


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Public WorksWater & ElectricityCivil ContractorsM & E ContractorsBuildingsTelecommunicationIndustry & HospitalityPorts & AirportsLandscapingLaboratoriesOil & GasPolice & MilitaryEducationMaritime

Index

MESSAGES...........................................................................................................(07-11)

VISION / MISSION /MOTTO...........................................................................................(13)

HISTORY.....................................................................................................................(15)

IIQS GLOBAL BOARD OF DIRECTORS............................................................................(17)

IIQS UAE MEMBER COUNCILS......................................................................................(18)

IIQS MEMBER COUNCILS INDIA AND QATAR............................................................(19-21)

OUR VISION FOR NEXT 5 YEARS....................................................................................(23)

CONTINUING PROFESSIONAL DEVELOPMENT (CPD).................................................(25-37)

IIQS WORkSHOP EVENTS........................................................................................(39-41)

ARTICLES..............................................................................................................(45-97)

NETWORkING JOB OPPORTUNITIES............................................................................(100)

GLOBAL RECOGNITION INTERNATIONAL.....................................................................(101)

MEMBERS ACHIEVEMENTS ........................................................................................(101)

TESTIMONIALS FROM IIQS GLOBAL MEMBERS.......................................................(104-105)

MAGAZINE AND EVENT COMMITTEE...........................................................................(106)

Index


6 | IIQS - 2015


6 | IIQS - 2015

Mr. Varughese Mathew FRICS, FCIOB, MCIArb, IIQS Director & Global President

MessagesMessages

Greetings and welcome to IIQS International Magazine for Year 2015.

The publication of an International Magazine by IIQS fills us with great happiness. It is indeed

a timely, much needed effort from the executive team and a tribute to all our members. With the

recognition received by us for IIQS Magazine “Insight” published in Year 2013, this edition of

IIQS International Magazine 2015 reflects more dynamic approach to cover the Property and

Construction industry through various opulent articles written by industry experts.

Since the inception, IIQS focused on member’s development through regular CPD seminars,

workshops, group study, setting core values and code of conduct. Our successful CPDs are

measurements and milestones of our success as we continue our efforts to achieve overall excellence

of Indian Institute of Quantity Surveyors.

Currently we are conducting a 3 month Competency Enhancement Programs (CEP) in Qatar

and Dubai focusing professional membership for members, this program produced significant

positive impact on the CEP preparation, and that we owe their success to the volunteers of Dubai

and Qatar MC.

We are proud that our members have truly embraced the importance of learning as part of their

life and attained many accolades from some of the best universities and institution around the

World.We know that our members succeed in their mission as they diligently enhance their skills

in par with the best in the world and have high ethical conduct.I would also encourage all the

members to continue engage with the CPD team in relevant Member Council. We need your ideas,

your feedback and your help to build the Institute to a World Class level.

In addition, we are delighted to share that we have made necessary arrangement for an

international Conference to be held in Bangalore on 1st August 2015. This conference will bring

together expert from India and abroad to present and debate various best practices and topic of

interest for property and construction industry.

We extend our warm greetings and best wishes to all the well-wishers, the advertisers for their

great support and thankful to the editorial and publication team for the release of this magazine

on time. The effort and commitment throughout the publication stage of this magazine was evident

from the directors and leadership of each MC.

This magazine will certainly set a benchmark and will help in enhancing the knowledge of

its members. With the commendable experience and contributions from all the members of the

institute we hope to excel in every endeavors of the institute.We once again thank all the individuals

who have selflessly contributed their time and effort to make this publication possible.

It is with great pleasure we release IIQS International Magazine 2015 to the Property and

Construction industry around the Globe.

All the best,

Varughese Mathew

7 IIQS - 2015 | 7 IIQS - 2015 |

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Mr. Anurag BhushanConsul General of India

Mr.T.P SeetharamAmbassador

MessagesMessages MessagesMessages

The Indian Institute of Quantity Sureyors (IIQS) provides an important platfrom to show and develop knowledge.

Indian engineers and Quantity Surveyors have played an important role in UAE’s development. All major and Iconic projects in this Country have some imprints of their minds and hands.




Message from the Chartered Institution of Civil Engineering Surveyors - UAE Region

On behalf of the CICES UAE Region, it is with great pleasure that I am able to congratulate the

members of the Indian Institute of Quantity surveyors (IIQS) on their second IIQS publication,

‘IIQS Insight 2015’. The IIQS has enough reasons to publish such a journal duly documenting

the year’s achievements, due to the sustainability of the membership, the effective and efficient

continuing professional development programme and the record success of the massive number of

IIQS members who gained professional affiliations with internationally-recognized institutions.

I am sure that you will agree with me that professional institutions promoting best practice are

vital to both the industry and their members. It is our duty to the industry we are part of to en-

sure that we are in prime professional condition to undertake the responsibilities we are entrusted

with. We must always remember that challenges are natural and we have to face the situation

positively, expecting innovative changes in the near future, particularly with the advent of 2020.

In short, we must be ready to instigate change rather than be changed. As pivotal industry

professionals, through Continuing Professional Development programmes, we develop the com-

petencies necessary to conduct our duties in exemplary fashion. To accomplish this mission, the

CICES - UAE Region is proud to state that we have associated with professional institutions of

the industry. The IIQS is one of the dynamic players among them.

Furthermore, we would like to mention that many IIQS members, including the ICES UAE

Secretary, have added their invaluable contributions to the growth and success of the CICES

- UAE Region, since the inception of the Region.The mutual cooperation between the IIQS

Membership and CICES - UAE Region must extend beyond the UAE and progress to rest of

the GCC countries, which are closely coordinated by the CICES - UAE Region.

We look forward to a continued professional association with the IIQS as a leader among con-

struction professional Institutions in the Arabian Gulf region and once again we wish you every

success on the IIQS journey towards professional excellence.

Dhammika T. GamageNDT(Civil Eng.), I Eng., ICIOB, AIQSSL, PQS, MCIArb, FIIESL, FACostE, FAIQS, FRICS, FInstCESChairman - Chartered Institution of Civil Engineering Surveyors - UAE Region

Mr. Girish KumarPresidentEmbassy of India Cultural CentreDoha - State of Qatar

MessagesMessages MessagesMessages

The IIQS has enough reasons to publish such a journal duly documenting the year’s achievements, due to the sustainability of the membership.

The IIQS has done and continues to do pioneering work in the field of skill developent for Indian Engineers.


13 IIQS - 2015 | 12 | IIQS - 2015 13 IIQS - 2015 |

VisionTo establish and maintain a

high standard of professional

competence and integrity by

limiting membership to persons

who have passed the examinations

prescribed by, or acceptable to,

the Institute and who have satisfied

the requirements of training,

practical knowledge, experience

and integrity prescribed by the

Institute.

MissionThe Mission of the Institute is to

ensure professional advancement

of Engineering and Quantity

Surveying Professionals in the

Property Development and

Construction Industry, so that they

can contribute more effectively

in the ongoing development in

the construction sector Worldwide

and particularly in India, as well

as to share their knowledge

and experience with the fellow

professionals.

MottoLighted to Learn & Live

C

M

Y

CM

MY

CY

CMY

K

A5 Advert portrait 148.5x210mm.pdf 1 10/28/13 3:54 AM


15 IIQS - 2015 | 15 IIQS - 2015 |

ADs

HistoryIndian Institute of Quantity Surveyors (IIQS) is a professional body of Quantity Surveyors and its members include the professionals working in the field of Quantity Surveying, Cost management, Commercial Management, Contract Management, Property Development, Engineering and other related field. This professional body was formed in December 1998.It is worth noting that year 2007 to 2011 were truly remarkable years and I trust that the progress we made during this period will be written in the history of our Institute.

In 2007, IIQS took giant step by implementing high ethical principles, bylaws and logo. IIQS logo has a burning candle, which signifies giving light to the world. Our Motto is “Lighted to Learn and Live”. It is the collective aim and desire of IIQS to change its members to a self-motivated team that will pride itself in doing things rightly and taking decisions based on strong ethical valuesIndian Institute of Quantity Surveyors (IIQS), incorporated under Section 25 of the Companies Act 1956 (No. 1 of 1956) in India on 14 October 2011 Indian Institute of Quantity Surveyors (IIQS) is associated with National Institute of Construction Management and Research (NICMAR) Hyderabad since 2011 Indian Institute of Quantity Surveyors (IIQS) is an Affiliate Body of Indian Business and Professional Council (IBPC), Sharjah since January 2012.Indian Institute of Quantity Surveyors (IIQS) stands affiliated with the Embassy of India – Indian Cultural Centre Doha Qatar since June 2013.

A Cooperation Agreement between Australian Institute of Quantity Surveyors (AIQS) and Indian Institute of Quantity Surveyors (IIQS) was signed in April 2013. The Affiliation / Agreement Identifies synergies and a non-exhaustive between organizations, provide Continuing Professional Development to members, exchange relevant knowledge and research and to promote in a collaborative fashion their respective mission. In association with Federation of Indian Chambers and Commerce and Industry (FICCI), Indian Institute of Quantity Surveyors (IIQS) successfully convened a series of One Day Colloquium (ODC) in three major cities (Bangalore, Mumbai and New Delhi) in India during July 2013.

On 20 Dec 2014, Indian Institute of Quantity Surveyors (IIQS) entered in to an agreement with MCI Middle East in UAE for the management of its professional seminars. IIQS Set out values / high ethical conduct to IIQS members is to ensure that IIQS Members actions contribute to create a better society.

Members of IIQS shall:1.Maintain Professional Integrity;2.Maintain confidentiality and avoid conflict of interest.3. Maintain Process and procedures without favoritism.4. Maintain proficiency and competence truthfully;5. Maintain minimum 20 CPD hours every Year

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IIQS GLOBALBOARD OF DIRECTORS

Varughese MathewLLM, FRICS, FCIOB, MCIArb

Director & President

Jacob JobyB.E (Civil), MBA, CCE

Director & Global Executive Director

Franklin JosephB.E.(Civil), MRICS, MIS, ICIOB

Director & Global General Secretary

KasiViswanathanB.E., LLM, MRICS, MIE, CCE, MIS Director & Global Governance

Committee Chair

Basavaraj BethB.E.(Civil), AIQS(Affil), CCE, ACIArb

Director & Global EventManagement Chair

Rama Rao KilariA.M.I.E(Civil), MRICS

Board Member & IT Administrator

Hirekar Director & Global Audit

Committee Vice Chair

E.V. Johnson NeilLLM, MRICS, MIS, FCIArbDirector & Vice President

Syed AslamB.E. (Civil), MinstCES

Director & Global AuditCommittee Chair

Paul BankalaB.E.(Civil), M.Sc., MRICS, ICIOB

Director & Global ProfessionalDevelopment Vice Chair

Sajeeth SidharthanB.E., MRICS, ACIArb, MSOE

Director & Global AwardingCommittee Chair

Naveen KumarDCE, CCE, MRICS, ACIArb

Director & Global MembershipCommittee Chair

Pavan Kumar MamidiB.E. Civil

Board Member & Treasurer

Ganesan GB.E.(Civil), M.Sc (QS), MRICS, MIS Director & Global Governance

Committee Vice Chair

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RAKESH PERUMPILLYLLM,FRICS,FCIArb,FAIQS,MIIQS

CHAIRMAN

SOBHA RANIMRICS, MAIQS,ICIOB ,MIIQS

CHAIR PERSON

AVINASH GAIKWADB.E, PG Dip Surveying, MRICS,

MCIArb,MIIQS,Civil Commercial MediatorVICE CHAIRMAN

ASHOKVICE CHAIRMAN

PAUL BANKALAMSc, MRICS, ICIOB,MIIQS

IIQS DIRECTOR & DOHA MC REPRESENTATIVE

SYED ASLAMB.E. (Civil), MInstCES, MIIQS

IIQS DIRECTOR & BANGALORE MC REPRESENTATIVE

Dr. BINU VARGHESEPhD, MRICS, MIIQS

MC ADVISOR

JACOB JOBY B.E (Civil), MBA, CCE

IIQS DIRECTOR & BANGALORE MC REPRESENTATIVE

VIJAY LACHYAN M.E, FRICS, FCIArb,MIIQS

GENERAL SECRETARY

UMESH RAMAKRISNAN RAOGENERAL SECRETARY

KIRAN KUMAR P. B.E, MIIQS

TREASURER & MEMBERSHIP MANAGER

GANGADHAR HSTREASURER MANAGER

RAJANI RAJENDRANB.E, MRICS,MIIQSCPD EXECUTIVE

ULLAS KANAGALWORKSHOPS COMMUNCATION

MOHD.SHARIFB.E, MIIQS

FINANCIAL AUDITOR

MAHESH MVMEMBERSHIP DRIVE

MOHD.HANEEFA B.E, MIIQS

MEMBERSHIP SUPPORT

HARISH BNCOMMUNICATIONS - MEMBERSHIP

DRIVE

RISHI.P.S B.E, MIIQS

IT WEB LEAD

SREEROOP M.K.IT WEB LEAD

GURU.S.IYERB.E, MRICS,MIS, MIIQS,ACIArb

GOVERNANCE

IIQS - UAE MEMBER COUNCILORGANIZATION CHART (Year 2014-15)

IIQS - DOHA, QATAR MEMBER COUNCIL: ORGANIZATION CHART (Year 2014-15)

IIQS - BANGALORE MEMBER COUNCILORGANIZATION CHART (Year 2014-15)

SAJEETH SIDHARTHANB.E, MRICS, ACIArb, MSOE, MIIQS

CHAIRMAN

DHARMENDAR PARDASANIMSc (QS), FRICS, FAIQS, MCIArb, MCIOB, MIIQS

VICE CHAIRMAN

E V JOHNSON NEILLLM, MRICS, MIS, FCIArb, MIIQS

VICE CHAIRMAN


GENERAL SECRETARY

PAVAN KUMAR MAMIDIB.E, MIIQS

TREASURER

FRANKLIN G. JOSEPHB.E., MRICS, MIS, ICIOB, MIIQS

SPORTS & RECREATION

GANESH KUMAR G.B.E., MBA, M.Sc, L.L.M, FRICS,

FCIArb, FAIQS, MIIQS IIQS APC WORKSHOP

KALPESH SANGANIB.E., M.Sc., LLM,

FRICS, FCIArb, FAIQS, MIIQSIIQS APC WORKSHOP

GOVINDARAJU RATHODM.Tech., MRICS, MBA, MIIQS

SPORTS & RECREATION

VISWANATH C.B.Tech, MBA , MIIQS

SPORTS & RECREATION

AJITH PHILIPB.E., PG Dip. M.C.M., CCE, MIIQS

SPORTS & RECREATION

PARAG SUBHASH D.M.Sc. Q S, PGDQS, BE, MIIQS

SPORTS & RECREATION

Prasanna KumariBTech, MBA, MIIQS

IIQS APC WORKSHOP

PARIMELAZHAGANSPORTS & RECREATION

LALITHA JAYAKUMARSPORTS & RECREATION

SINIMOL NOUSHADB.Tech., MBA, FRICS, MIS, MIIQS

NEWS LETTERS / MAGAZINE

RITU SUBODH DASB.Tech Civil, PG Dip. Mgmt., MIIQS

NEWS LETTERS / MAGAZINE

BINU C. NINANNEWS LETTERS / MAGAZINE

ARULRAJ DEVARAJREGIONAL

REPRESENTATIVE (KSA)

MAHESH BUTANIMSc, MIIQS

REGIONAL REPRESENTATIVE (AUH)

MICHELLE GODHINOMEMBERSHIP / ACCOUNT

MANAGER

SACHITH SURESHMEMBERSHIP MANAGER

Member Council 2015Member Council For UAE, Qatar and India are developed and each member council is committed to develop the QS Profession and ensure that members attain professional standards of the global standards with the support of IIQS activities



PROF. ER. BONNIGA RAVINDER B.E, M.TECH, MBA , M.PHIL, PGDQS, M.I.E, MIIQS

CHAIRMAN

TBACHAIRMAN

GOVINDARAJU RATHODM.TECH., MRICS, MBA, MIIQS

CHAIRMAN

M. KUMARESH MURTHYCHAIRMAN

MULLA JAVED HUSSAINBE, PGDQS, MBA, MIIQS

VICE CHAIRMAN

SANJEEV AGARWALVICE CHAIRMAN

SALEEM MERCHANT VICE CHAIRMAN

TBAVICE CHAIRMAN


IIQS DIRECTOR & HYDERABAD MC REPRESENTATIVE

NAVEEN GOELDCE, CCE, MRICS, ACIAR, MIIQSIIQS DIRECTOR & MUMBAI MC

REPRESENTATIVE

FRANKLIN G. JOSEPHB.E.(CIVIL), MRICS, MIS, ICIOB, MIIQS

IIQS DIRECTOR & MUMBAI MC REPRESENTATIVE

E V JOHNSON NEILLLM, MRICS, MIS, FCIArb, MIIQSIIQS DIRECTOR & CHENNAI MC

REPRESENTATIVE

KASI VISWANATHANB.E., LLM, MRICS, MIE, CCE,

MI, MIIQSIIQS DIRECTOR & CHENNAI

MC REPRESENTATIVE

RAMA RAO KILARIA.M.I.E(CIVIL), MRIC, MIIQS

IIQS DIRECTOR & HYDERABAD MC REPRESENTATIVE

P.V. SIVA PRASAD IOS DEGREE IN QS, DCE, MIIQS

GENERAL SECRETARY

M.S.GOMATHIGENERAL SECRETARY

VISHAL SHAHA CPD & MEMBERSHIP MANAGER

TBAGENERAL SECRETARY

V.V.S.RAMAKRISHNABE, M.TECH, MIIQS

TREASURER

UDAIYAR SANKARALINGAMTREASURER

MANOJEVENTS MANAGER

TBATREASURER

TBAMEMBERSHIP MANAGER

PRASANNA KUMARIBTECH, MBA, MIIQS

MEMBERSHIP MANAGER

RANJAN KUMARMEMBERSHIP MANAGER

IIQS - HYDERABAD MEMBER COUNCILORGANIZATION CHART (Year 2014-15)

IIQS - DELHI MEMBER COUNCILORGANIZATION CHART (Year 2014-15)

IIQS - MUMBAI MEMBER COUNCILORGANIZATION CHART (Year 2014-15)

IIQS - CHENNAI MEMBER COUNCILORGANIZATION CHART (Year 2014-15)


23 IIQS - 2015 | 23 IIQS - 2015 |

With Best Wishes from Commercial Team of Parsons Overseas Limited

(Dubai Branch)

1. To increase our membership base substantially in India and other Gulf countries.

2. To enhance awareness of Quantity Surveying profession in India.

3. To create awareness in Engineering colleges in India that they need to start the

degree courses in Quantity Surveying.

4. To ensure that we continue to organize CPD activities for our members

5. To expand IIQS chapters in more cities of India.

6. To maintain the recently developed website so that the members can access the

CPD notes of all previous seminars and other webinars etc, along with the full

directory of our members.

7. To certify our members with appropriate membership grades such as

MIIQS, CIIQS, FIIQS etc.

8. To ensure that our members follow the ethics of highest standards. This is being

ensured by including ethics as one of the mandatory competencies for achieving the

membership grade.

9. Most importantly, to give back to the society by engaging in some charity.

OUR VISION FOR NEXT 5 YEARS IS:

With Best Wishes from


25 IIQS - 2015 | 25 IIQS - 2015 |

Continuing Professional Development (CPD)

IIQS CPD Programme IIQS CPD events are scheduled on monthly basis and it includes a wide range of activities such as talks and presentations on subjects of contract and commercial management, construction law, cost planning and management, business management, contract practice, contracts administration, procurement and tendering, risk management etc. IIQS encourages all members to maintain and develop their professional competence in the workplace and CPD is one of the recommended way of enhancing the professional competence through sharing knowledge with other industry professionals and networking.

Benifits of CPD • HelpsMemberstoenhancetheirknowledge• Networkingopportunities• Providingcompetitiveenvironmentformembers• Helpsmembersintheirday-to-daywork• Enhancespresentationskillsbyprovidingopportunities for presenting seminars and workshop

What is CPD?CPD stands for Continuing Professional Development’ and is the term that describes how professionals maintain their own competence in the workplace. CPD is about learning and development that enhances effectiveness in professional life.

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S.NO. DATE TOPIC SPEAkER LOCATION

1 1/15/2013 UAE Construction - Contract Formation Mr. Gary J. Beamish. EngC CEng CEnv CWEM MICE MCIWEM MQSI Dubai

2 02/26/2013 Liquidated Damages - UAE Perspective Mr. Shah Nawaz. C.A. Regional Operations Director, Johnson Controls Dubai

3 03/25/2013 The Secret behind Construction Contract Pricing options - Understanding What’s on the menu

Mr. Sachin kerur. Head of Gulf Region, Pinsent Masons Dubai

4 04/15/2013 How to Manage projects and Deliver within Time and Budget Mr. Somnath Mukherjee. Chief Manager (Projects), Simplex Infrastructures Ltd. Dubai

5 05/28/2013 Art and Science of Decision Making Prof. Christopher Abraham. Sr.Vice President & Head of the Dubai campus, S P Jain School of Global Management Dubai

6 08/20/2013 Extension of Time - Various Delay Analysis Techniques Mr. Dharmendar Pardasani. MSc(QS), PG (Dip) (Const. Law & Arbitration), FRICS, FAIQS, MCIArb, MCIOB & Ms. Sukshma ShajeevBE(Civil), PG (Dip) (Const. Law & Arbitration), PMP, FCIArb

Abu Dhabi

7 09/28/2013 Review of UAE Civil Law in context of Construction Law Provisions Mr. Venkataraghavan Ramadurai. FCIArb, FCMA, LLM, B.Eng, C.Eng, PGDBA Commercial Manager, Voltas Limited, Abu Dhabi Sharjah

8 10/26/2013 Construction Claims - Effective Writing and Presentation Mr. ANDY HEWITT. FCInstCES, FQSi, ACIOB, ACIArb, MDB Practice Principal, Hewitt Construction Consultancy FZE Sharjah

9 11/23/2013 Construction Project Delivery – Program and Project Management Mr. Gary Beamish. EngC CEng CEnv CWEM MICE MCIWEM MQSI Sharjah

10 12/22/2013 Persuasion and Success in Business Mr. Venkata Raman Jagannathan. MCom, Grad CWA, ACS, PMP, PgMP, CSSGB, CSSBB, CSSMBB Dubai

S.NO DATE TOPIC SPEAkER LOCATION

1 02/21/2015 Creative: Thinking Outside Your Brains Mr. Abdulla Galadari. PhD in Civil Engineering (Faculty member at Masdar Institute and an adjunct faculty at the Higher Colleges of Technology.Registered mediator at the DIFC-LCIA)

Dubai

2 03/21/2015 Using FIDIC in the UAE Mr. Faisal Attia. LLB, LLMSenior Associate, Arbitration, Al Tamimi & Co. Dubai

3 04/21/2015 Forensic Analysis for Statements of Claim Mr. Gary J. Beamish. EngC CEng CEnv CWEM MICE MCIWEM MQSI Dubai

4 05/13/2015 Awaken the Creative Genius in YOU Mr. Christopher Abraham. Senior Vice President and Head of the Dubai campus, S P Jain School of Global Management Dubai

5 06/10/2015 Dozen Causes of Rates/ Prices Becoming Inapplicable Mr. Indrawansa Samaratunga. PhD, DSc FRICS, FAIQS, FIQSSL, FCI Arb, FCIOB, FCMI, FASI, FCABE Dubai

IIQS CPD EVENTS UAE - 2015

IIQS CPD EVENTS UAE - 2013

CPD EVENTS UAE



CPD In UAEIIQS , has successfully organized 10 consecutive CPD events in UAE for year 2013 and 5 consecutive events in 2015 .CPD Sessions provide a great opportunity for our members to enhance their knowledge and skills. IIQS Structured CPD events are lead by experts indusrty speakers. IIQS takes this opportunity to thank all the speakers and guest for their valuable time and effort for IIQS CPD events.

IIQS & MCI Contract Signing.

DBB chief guests at CPD




S.NO DATE TOPIC SPEAkER LOCATION

1 1/20/2014 Effective writing skills and presentation of construction claims and responses Mr. Andy Hewitt DOHA

2 I2/16/2014 The True Cost of Sustainability and Well Being Ms. Holy Chant

Dr Ioannis Spanos DOHA

3 3/30/2014 Coping with Projects in Dynamic Environments Dr. Tahir Hanif DOHA

Dr. Gyoergy Miketa

4 4/27/2014 ‘Environmental Impact of TBM Construction DOHA

5 5/17/2014 Foundation of a Basic Claim’ Mr. Paul Bernard Sarpong DOHA

6 6/22/2014 Top Ten Tips for Successful Contracting in Qatar Mr. Paul Prescott

Mr. Gabriel Olufemi

7 8/27/2014 Insurances, Bonds, Guarantees and Warranties’ Sandesh Pangerkar DOHA

8 9/29/2014 Contractor or Subcontractor – Who wins under Bespoke Subcontract? Mr.Rajesh kumarMr. Rama S Sinnaswamy

DOHA

9 11/30/2014 Schedule Update Analysis - Retained Logic Vs Progress Override Mr. Dev Tamboli DOHA

IIQS CPD EVENTS QATAR - 20151 2/25/2015 Ground Conditions Risks in Qatar Mr. Paul Prescott DOHA

Mr. Gabriel Olufemi

2 4/8/2015 Time bar and Claims Mr. Paul Prescott DOHA

Mr. Gabriel Olufemi

3 5/6/2015 Earned Value Management of Construction Projects Mr. Rubesh Rajan DOHA

4 5/25/2015 Q - Construct Mr. Andrew Robertson DOHA

5 6/10/2015 Utilization of BIM in construction with special emphasis on Revit Mr. Amro khatib DOHA

CPD EVENTS QATAR

IIQS CPD EVENTS QATAR - 2014



CPD In QatarThe Qatar Region provided a wonderful opportunity to deliver successful CPD seesions in Qatar. This was the important milestone for IIQS Qatar and it is planned in 2015 also. All IIQS Member Councils will continue to organize the CPD events and workshops for global members.

Mr. Narayan Murthy visit 25 April 2015

Inaguration day - lamp lighting




CPD NO. MONTH DESCRIPTION SPEAkER LOCATION

1 24.1.2014 Intricacies of Cost Management Mr. Sunjaay Athanki BArch, PGDCMID, CoA. MANAGING DIRECTOR – G&T India Bangalore

Role of a Quantity Surveyor in Construction Industry

2 28.2.2014 Risk Management in Construction Mrs.Reethaa G Natarajan (B.A. LL.B). Associate Director – Legal. Spacematrix Bangalore

3 25.04.2014 Project Management in the Indian Construction Industry Leadership for QS Career Success

Mr. Jeffrey. M. West, (Bsc Est. Man), MA-Design, FRICS Hi-PoinT Project Management Solutions. Pvt. Ltd.

Bangalore

4 30.05.2014 Post Contract - Change Management Mr. Prashanth Bk, Civil Engg, GradDip-QS from NICMAR Bangalore

5 27.06.2014 QS and Project in-charge : An over view in Building Construction & Real Estate Mr. D. Narasa Reddy, B Tech, NIT Warangal, President & COO – South, JMC projects (India) Ltd. Bangalore Bangalore

6 25-07-2014 Effective Cost and Time Management in Project Mr. Suresh. S, ME(Geotechnical), BE (Civil), MIE, MIGS Senior Executive Vice president (Projects) Prestige Estates and Projects Bangalore

7 26-09-2014 Vertical Transportation for Residential and Commercial Buildings in Construction Industry V. JAGADISH kUMAR BE (Mech), IGBC-AP, Director – L’Avenir Consultancy Pvt. Ltd, Bangalore Bangalore

8 28-11-2014 TAXATION (VAT & Service Tax) for Indian Construction Industry MADHUkAR N HIREGANGE. Senior Partner Hiregange & Associates, Chartered Accountants, Bangalore Bangalore

CPD NO. DATE DESCRIPTION SPEAkER LOCATION

1 30.01.2015 Introduction to the FIDIC Contracts Mr. Umesh R, BE (Civil), MRICS. Principal Consultant - Rohini Project Management Solutions, Bangalore Bangalore

CPD Events

S.NO DATE CPD TITLE SPEAkER LOCATION

1 Jan-14 “ Think big in QS profession and build a big picture for future Mr. S.Pochender. Director & CEO - Lanco Hills Technology Park, Hyderabad , India Hyderabad

2 Feb-14 Claims Management Mr. Vikramjeet Singh. Vice President-Contracts & Risk management, GkC Projects Limited, Hyderabad Hyderabad

3 Mar-14 Contracts Administration Mr. C. k. Moorthy - Consultant - Contracts Management. Hyderabad

4 Nov-14 Contracts Strategy Mr Anand Thiagarajan. Senior Project Manager L & T Hyderabad

5 Nov-14 Negotiations and Leadership Mr. Jacob Joby. Director Development, SP International Developers LLC, Dubai, U.A.E Hyderabad

IIQS CPD EVENTS BANGALORE - 2014

IIQS CPD EVENTS BANGALORE - 2015

IIQS CPD EVENTS HYDERABAD - 2015

CPD EVENTS INDIA



CPD in Bangalore& HyderabadBangalore Member Council and Hyderabad Member Council have been very active in organizing CPD’s for it’s member. We thank both the Member Council’s for organizing wonderful CPD’s during 2014 - 2015.

CPD In Hyderabad


39 IIQS - 2015 |

ADsVISION OF IIQS WORSHOP : To Create a professional environment among all QS community to share the knowledge and experience to enhance the professional competence as well as to be part of a large professional network. Workshop is a one of the IIQS structured training programs to provide a professional platform for Contracts & Commercial Management professionals, Quantity Surveyors & Construction Professionals to plan their professional development to become Chartered QS of RICS or attain any other professional membership. Since inception, substantial number of QS professionals have attained their Chartered status and have attained to management positions in Contracts and Commercial fields and are presently working in UAE, Doha, India and other countries.

IIQS WORKSHOPStructured Training Programme

WORSHOPAPC Workshops were designed to upgrade skills, learn new techniques and get informed on all the latest developments of the construction industry. These workshops are designed by very well experienced IIQS members and Directors to help enhancing professional knowledge and to obtain IIQS membership from Indian Institute of Quantity Surveyors (IIQS). The competencies are delivered by qualified and experienced professionals. These workshops provided in-depth analysis of the competencies and an excellent networking opportunity. As the workshops covers majority of QS competencies, it also helps in gaining memberships from various other international organizations like, RICS, ICES, CIOB, AIQS etc.




Matrix Events in 2013S.NO. DATE COMPETENCIES FOR CIIQS SPEAkER

1 10/April/15 Introduction of IIQS membership guidelines Mr. Aslam, B.E. (Civil), MinstCES

2 10/April/15 Introduction of RICS APC guidelines Mr. kalpesh Sangani, M.Sc, LLM, FRICS, FCIArb, FAIQS

3 10/April/15 Commercial Management in Construction Mr. kasiviswanath, B.E., LLM, MRICS, MIE, CCE, MIS

4 24/April/15 Quantification & Estimating Mr. kalpesh Sangani, M.Sc, LLM, FRICS, FCIArb, FAIQS

5 24/April/15 Cost Planning & Cost Control

6 8/May/15 Environment, Sustainability, Health and Safety Mr. Mohammed Shakeel Ansari, MSc,PgD(CLaw),MRICS,MCIArb, MIS

7 8/May/15 Construction Technology Mr. Ajith Philip, B.E (Civil), PG Dip (C.M)

8 22/May/15 Business Planning/Management, Team work-ing; Communication & Negotiation

Mr. Jacob Joby, B.E (Civil), MBA, CCE

9 5/Jun/15 Tendering and Procurement Mr. Ganesh kumar, M.Sc, L.L.M, FRICS, FCIArb, FAIQS

10 5/Jun/15 Design Economics Mr. kalpesh Sangani, M.Sc, LLM, FRICS, FCIArb, FAIQS

11 19/Jun/15 Contract Practice & Contract Administration Mr. Dharmendar Pardasani, M.Sc, LLM, FRICS, FAIQS,

12 19/Jun/15 Accounting Principles and procedures; Data Management

Mr. Naveen kumar, M.Sc, MRICS

13 3/July/15 Conflict avoidance, management and Dis-pute Resolution

Mr. Venkataraghavan, FCIArb, FCMA, MRICS

14 3/July/15 Conduct rules, Ethics and Professional Prac-tice; Client care

Mr. E.V. Johnson Neil, LLM, MRICS, MIS, FCIArb

15 24/July/15 Teamworking Mr. Jacob Joby, B.E (Civil), MBA, CCE

16 24/July/15 key Contractual terms - FAQ in APC interviews Mr. Ganesh kumar, M.Sc, L.L.M, FRICS, FCIArb, FAIQS

17 24/July/15 APC Interview Guidelines Mr. kalpesh Sangani, M.Sc, LLM, FRICS, FCIArb, FAIQS

18 28/Aug/15 Programming & Planning Mr. Varughese Mathew, LLM, FRICS, FCIOB, MCIArb.

IIQS APC Workshop Schedule UAE - 2015 IIQS APC Workshop Schedule Qatar - 2015

APC WORkSHOP

S.NO. DATE COMPETENCIES FOR CIIQS SPEAkER

1 5/Sep/15 Design Economics and Cost Planning Mr. kalpesh Sangani

2 5/Sep/15 Quantification and Costing of Construction works Mr. kalpesh Sangani

3 29/May/15 Procurement and Tendering Mr. Avinash Gaikwad

4 28/Aug/15 Contract Practice Mr. Dharmendar Pardasani

5 12/Jun/15 Commercial Management of Construction Mr. Varughese Mathew

6 25/Sep/15 Project Financial Control and Reporting Mr. Sandesh Pangerkar

7 14/Aug/15 Construction Technology Mr. Rakesh Perumpilly

8 14/Aug/15 Commercial Management of Construction Mr. Sandesh Pangerkar

9 5/Sep/15 Design Economics and Cost Planning Mr. kalpesh Sangani

10 28/Aug/15 Contract Administration Mr. Dharmendar Pardasani

11 5/Jun/15 Client Care Mr. Girish Hassan

12 5/Jun/15 Communication and Negotiation Mr. Girish Hassan

13 29/May/15 Conduct Rules, Ethics and Professional Practice Mr. Avinash Gaikwad

14 5/Jun/15 Health and Safety Mr. Mushtaq Naik

15 5/Jun/15 Team Working Mr. Vijay Lachyan

16 11/Sep/15 Accounting Principles and Procedures Mr. Mushtaq Naik

17 5/Jun/15 Business Planning Mr. Dev Raj

18 12/Jun/15 Conflict avoidance, Management and Dispute resolution Procedures Mr. Rakesh Perumpilly

19 29/May/15 Data Management Mr. Vijay Lachyan

20 12/Jun/15 Sustainability Mr. Avinash Gaikwad

45 IIQS - 2015 |

S.No Decsription Author Name

1 Professional EthicsA Value That Makes You More Valuable

Mr. E V Johnson Neil

2 FIDIC 1999Bad News or Good News for QSs ?

Mr. Prof. Indrawansa Samaratunga DSc,

3 Adjudication:Riding High on Success in UK Construction Industry

Mr. Dharmendar Pardasani

4 Acceleration ClaimsConfusion Reigns Supreme!

Mr. N.M Raj

5 Defective Arbitration Clauses: An Overview

Mr. Badrinath Srinivasan

6 Programming and planningLifeline of a project

Mr. Varughese Mathew

7 Cost Planning Mr. Sampath Raman

8 Cost Management Mr. Nilesh kushe

9 Life Cycle Cost Analysis Mr. Jacob Joby

10 Do we need the Provisional Sums? Mr. Ajantha Premarathna

11 “Managing the Change” in Construction projects

Mr. Venkat Rakhavan

12 Is it possible to terminate due to non-payment and/or late payments?

Mr. Rajesh kumar

13 The ‘golden rules’ of bidding for projects in Qatar and the UAE

Mr. Paul Prescott / Mr. Gabriel Olufemi

14 Design and build projectgo for it, if you understand its challenges

Mr. Syed Aslam

15 The impact of cultural factors Mr. Akram Saad

16 Developing a contract procurements strategyfor mega infrastructures project

Mr. Sajeeth

17 BIM and The Qs Profession Mr. Sunil Sukumaran

18 Infrastructure conditionsof contract (ICC) with quantities form November 2014 edition

Mr. Paul Prescott / Gabriel Olufemi

19 Indian StandardMethods of measurement of building works – ISI 200

Mr. Umesh Ramakrishna Rao

20 Impact of boom and bust of housing market Market On Macroeconony

Mr. Naveen kumar

21 Happiness leads to success Mr. Christopher Abraham

ARTICLES


IIQS

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47 IIQS - 2015 | 46 | IIQS - 2015

Dear Friend,

I am immensely pleased to write to you on the most important

requirement of our professional life, which is ‘Professional Ethics’.

As professionals in the construction sector, we operate in a

highly fragmented industry that includes many differing skills

and professions, where relationships and boundaries are not

always clear. In earlier times, the work of a Quantity Surveyor

was primarily based on measurement alone. But in recent

years, it has evolved rapidly into a more diverse, complex

and sophisticated profession, which demands a wide range

of specialist skills. In this changed scenario, because of

our regular involvement in financial transactions such as

procurement, contractual arrangements, payments and

valuations, we are obliged to act in a transparent and ethical

manner. As the sector is characterized being constructed on

‘personal relationships’, we must understand that these areas

are vulnerable to malpractice easily. Therefore, it is imperative

to understand the importance of Professional Ethics in a

crystallized way.

The Oxford English dictionary defines ‘ethics’ as moral

principles or rules of conduct. The rule of conduct provides a

set of moral principles according to which one should conduct

one’s affairs. It may be seen as being fair or not wronging or

harming others. Looking through a corporate eye, Professional

Ethics encompass the personal, organizational and corporate

standards of behavior expected of professionals. Those working

in acknowledged profession, exercise specialist knowledge

and skill. How the use of this knowledge should be governed

when providing a service to the public is termed as Professional

Ethics.

Murdoch and Hughes1 say that the primary aim of the

professional is to serve the public and if we are a true

professional, we will place the interest of the public before

any of our financial reward. The Royal Institution of Chartered

Surveyors2 (RICS) says: “behaving ethically is at the heart of what

it means to be a professional; it distinguishes professionals

from others in the marketplace”. The industry recognizes and

respects the professionals who practice highest level of ethics.

Seeley3 believes that upholding professional ethics underpins

the primary objectives of the professional codes of practice

and that is the key reason why people rely on professional

bodies. Therefore, international professional institutions such

as Royal Institution of Chartered Surveyors (RICS), Australian

Institute of Quantity Surveyors (AIQS), Institution of Surveyors (IOS),

Chartered Institute of Arbitrators (CIArb) etc. have produced

a simplified set of professional standards that requires their

members to understand and to be committed to maintain

such standards. The Indian Institution of Quantity Surveyors (IIQS)

also gives extreme importance to professional ethics.

For an example, IIQS requires all its members to demonstrate

the following five professional and ethical standards.

• Maintain Professional Integrity

• Maintain confidentiality and avoid conflict of interest

• Maintain process and procedures without favouritism

• Maintain proficiency and competence truthfully

• Maintain minimum 20 CPD hours every year

Though the above standards appear easy to practice,

complying with these acts in day to day work environment

poses a challenge due to the pressing need of economic

survival and stiff competition. But, doing business ethically

and professionally will surely enhance your business results.

Cartlidge4 argues that professions can only survive if the public

retains confidence in them. He also claims that upholding

ethical standards has several benefits for firms and with such

a strong ethical culture may gain competitive advantages,

able to attract and retain competent and dedicated staff, be

more attractive to clients, gain greater company reputation. In

a nutshell, fair business is good business.

“Behaving ethically is at the heart of what it means to be a professional;it distinguishes professionals from others in the market place”

At this point, the question of conflict of interest indeed arises.

RICS defines conflict of interest, as anything that impedes or

might be perceived to impede an individual’s or firm’s ability

to act impartially and in the best interest of a client. A conflict

of interest can create a doubt on our integrity and can have

a harmful effect not only on our firm but also the profession as

a whole. In situations where a member perceives conflict of

interest; the client’s interest shall take precedence unless it is

contrary to the public interest.

To avoid potential conflicts of interest, we should always be open

and transparent in our dealings. We should disclose all interests,

relationships and matters likely to affect our independence or

impartiality or which might reasonably be perceived as likely to

do so. If we believe that we will be incapable of maintaining

the required degree of independence or impartiality, we

should promptly take necessary steps as may be required in

such circumstances.

Finally, upholding ethical standard is important and inevitable

for Quantity Surveyors. It has a clear connection with integrity

and professionalism and has characterized a professional as

trustworthy and competent. Warren Buffet suggests “In looking

for people to hire, you look for three qualities: integrity,

intelligence, and energy. And if they don›t have the first, the

other two will kill you.” Hence, those delivering construction

courses within the higher education system should do more to

promote ethics. Learning more about ethics should empower

students to actively question any dubious practice they might

see at work and thereby benefit the industry in the long term.

As CS Lewis said “education without values, as useful as it is,

seems rather to make man a cleverer devil.”

We cannot afford to be seen to be anything other than an

ethically responsible professional. Therefore, the process

of learning ethics should not stop at colleges/universities

but should continue throughout the professionals’ work-life.

Cultivating a habit of self-regulation and an awareness to

maintain high ethics, through lifelong learning is undoubtedly a

value that will make us more valuable amongst other industry

players.

Your Well-WisherE V Johnson Neil

1 John Murdoch & Will Hughes (2008) Construction Contracts Law and Management, Routledge, London

2 Royal Institution of Chartered Surveyors (http://www.rics.org/ae)

3 Seeley, I H (1997) Quantity Surveying Practice Hound mills Macmillan, Basingstoke

4 artlidge, D (2011) New Aspects of Quantity Surveying Practice, Spon Press, London

References

Royal Institution of Chartered Surveyors (http://www.rics.org/ae)

Indian Institute of Quantity Surveyors (http://www.iiqsglobal.org)

John Murdoch & Will Hughes (2008) Construction Contracts Law and Management, Routledge, London

Cartlidge, D (2011) New Aspects of Quantity Surveying Practice, Spon Press, London

Seeley, I H (1997) Quantity Surveying Practice Hound mills Macmillan, Basingstoke

Cunningham, T (2011) Professionalism and Ethics: A Quantity Surveying Perspective, Arrow, Dublin Institute of Technology

Johnson Neil is a Chartered Quantity Surveyor with 29 years of vast experience in the construction industry out of which 23 years have been gained in UAE.

Apart from his Civil Engineering and Quantity Surveying qualifications obtained from India and UK, he has a Master’s degree in Construction Law and Arbitration from the Robert Gordon University, UK.

He is a Member of the Royal Institution of Chartered Surveyors - UK (MRICS), Fellow of the Chartered Institution of Arbitrators - UK (FCIArb) and Member of the Institution of Surveyors - India (MIS).

He is currently running a Project Development and Cost & Contract Management Practice in Dubai, UAE focusing on his best competencies and interest that also includes claim management, dispute resolution, mentoring and training.

E V JOHNSON NEILLLM, MRICS, MIS, MIIQS, FCIArb,

Director, Eben Johnson Consultants, Dubai, UAE, Director and Global Vice President - IIQS

Professional EthicsA Value That Makes You More ValuableWritten as a letter to a friend

49 IIQS - 2015 | 48 | IIQS - 2015

Increasingly, Developers and Consultants in Dubai, have

commenced using FIDIC 19991 as the Form of Contract

for their current and forthcoming projects. For some time

now FIDIC 1999 has been in use in Abu Dhabi for most of their

projects. Therefore Quantity Surveyors in the UAE have no other

option but to master the complex administration aspects

under FIDIC 1999 as well, in addition to their current skills in

administrating contracts under FIDIC-4th Edition2.

What should not be forgotten is that, whilst FIDIC-4th is a tested3

Standard Form of Contract which has withstood the test of time

for over quarter a century, FIDIC 1999 is not so, and therefore

the industry is unaware as to how the Courts and Arbitrators

would decide on many unavoidable disputes that are likely to

arise due to serious concerns that exist in this latest FIDIC Form.

Some terminology found in FIDIC-4th still exists in FIDIC 1999 but

with different meanings/definitions and therefore the correct

usage needs to be adopted in order to avoid contention.

“Contract Price” for instance is not what it was under FIDIC-4th,

if used with reference to a FIDIC 1999 contract !

Lack of separate provisions to value variations, and the

combining of valuation of variations together with the

valuation of the original scope of work have produced a very

complex Sub-Clause 12.3, not easy to understand, and also

lacking adequate provisions to value some aspects of original

scope of work4 and varied work5. One unique feature in the

previous FIDIC versions (when compared to JCT, ICE, NEC and

other Forms of Contract), was Sub-Clause 52.3 which provided

for restoring an under-recovery of a Contractor ’s overheads,

which also provided for correcting an over-recovery in favour

of the Employer6. FIDIC has decided to do away with this

provision in the new Form, but Sub-Clause 12.4 could still

be construed as the mechanism to restore the Contractor ’s

under-recovery, but the correction of any over-recovery is not

available!

Opportunity for Contractors to claim varied rates/prices even

in re-measurement type of contracts, if the BOQ quantities do

not accurately represent the work shown in the Drawings and

described by the Specification, would make it very onerous for

QS Consultants to ensure the accuracy of quantities even in

the Bills of Estimated Quantities prepared for re-measurement

type of contracts. The new opportunity for Contractors to claim

Extension of Time and associated cost reimbursements due to

such quantity differences (without the instruction of a Variation)

is another area of concerns.

Termination for Employer ’s convenience is a new Clause which

did not exist in FIDIC-4th. Though drafted without provision for

a Contractor to claim loss of profit, nevertheless a Contractor

terminated pursuant to this Clause may succeed in receiving

compensation in law, judging from cases decided by the

highest court in the emirate, Dubai Court of Cassation.

Under FIDIC-4th it was not the contract that was terminated when

a party is in breach, but the employment of the Contractor under

the contract, and therefore there was no necessity to provide

for the survival of important provisions. In the only two instances7

where the contract is terminated, FIDIC-4th expressly provided

for the survival of Dispute Resolution by Arbitration, Entitlement

to damages for antecedent breaches, and the Method of

Calculation of the payments following a termination. Under FIDIC

1999, it is the contract that is terminated in all instances, but the

survival requirement of above important provisions is missing,

and therefore (unless the law applicable to the contract provides

otherwise), parties may end up in Courts to resolve their disputes,

which is thoroughly undesirable, and also a court appointed

expert may not want to adhere to the detailed method of

calculation of payments provided in the contract (such as “any

other cost or liability incurred by the Contractor in the expectation

of completing the whole of the Works” etc.), as such provisions

have not been made to survive the termination of the contract.

Increasingly, Developers and Consultants in Dubai, have commenced using FIDIC 19991 as the Form of Contract for their current and forthcoming projects.

FIDIC 1999Bad News or Good News for QSs ?

Lack of provision to extend time in “special circumstances”

(which provision existed in FIDIC-4th), would offer opportunities to

Contractors to plead for setting time at large, in order to escape

from Liquidated Damages thus leaving the Employers to prove

their losses in claiming damages for breach.

Notices have been made condition precedent which would

result in higher tender prices due to the tenderers either making

allowances for this risk or including the cost of a claims team

within the site overhead costs.

Lack of a provision such as Sub-Clause 52.2(a) of FIDIC-4th to

claim prolongation costs of a contractor when an instructed

Variation delays the project completion, leaves the Contractors

with the undesirable option of asserting that the Employer is in

breach of contract (in order to claim such costs as damages for

breach), every time a Variation is instructed !

Good news is that, the significantly increased cost management

and contract administration activities required for FIDIC 1999

contracts (when compared to those under FIDIC-4th) would

compel Contractors, Consultants and Developers to employ

more Quantity Surveyors for each project without whose

invaluable advice / services, the company interests cannot be

adequately protected.

Whilst FIDIC-4th relied on the presence of an impartial Engineer

to administrate the contract, the absence of the requirement of

Engineer’s impartiality under FIDIC 1999 has made it necessary

to refer any disputes to an independent Dispute Adjudication

Board (and not to the Engineer as in FIDIC-4th), for resolution

in the first instance, an area where Quantity Surveyors need

to enhance their current skill sets8. This is also an area where

Quantity Surveyors would have lucrative career opportunities.

At present Developers / Consultants delete the Dispute

Adjudication Board provisions in FIDIC 1999 contracts due to

the acute shortage of Adjudicators in this part of the world.

Quantity Surveyor, with his/her multi disciplinary education is

an ideally placed candidate to undertake further studies and

training in the field of dispute resolution to fill the thousands of

Adjudicator positions that would be created when FIDIC 1999

inevitably becomes the norm in the near future for almost all

projects in this part of the world, and the industry becomes

fully aware about the benefits of resolving the disputes by

referring to a Dispute Adjudication Board, which is less costly,

quicker and would not break down business relationships,

when compared to Litigation or Arbitration.

All the areas of concern in FIDIC 1999 cannot be highlighted

in a short article of this nature. FIDIC-4th needed some four

editions of improvements to reach its refined state. FIDIC 1999

is still in its 1st Edition and no doubt, FIDIC would address most

of the above concerns in its subsequent Editions, but until then

Quantity Surveyors have no other choice but to address them

through Particular Conditions before the tenders are invited

and also exercise care during the administration of the

contract.

1 Conditions of Contract for Construction for Building and Civil Engineering Works designed

by the Employer – First Edition 1999, published by Federation Internationale des Ingenieurs-

Conseils (FIDIC), Switzerland.2 Conditions of Contract for Works of Civil Engineering Construction – Fourth Edition 1987,

published by FIDIC.3 Though FIDIC-4th still has shortcomings (to the extent that the English literal meaning of a provi-

sion is exactly the opposite of what is intended !), authorities exist on how to interpret / construct

them.4 FIDIC 1999 does not have provisions to value an item of original scope of work which is

missing from the BOQ, in a re-measurement type contract (unless there is a rate or price for

a similar item existing elsewhere in the BOQ).5 FIDIC 1999 does not have provision to compensate the Contractor (or the Employer) with a

varied rate or price, when a variation affects cost of execution of an item of original scope

of work (unless its quantity also changes by more than 10%, as a result of the Variation,

whereas in FIDIC-4th this could be done under Sub-Clause 52.2.

6 Not the whole under-recovery or over-recovery but the net excess beyond 15% (or other

percentage agreed by the parties in the contract).7 Sub-Clause 65 – Special Risks (Force Majeure) and Sub-Clause 66 – Release from Perfor-

mance (Frustration).8 In the past, Lawyers were brought in to provide advice only when the parties entered into

the final tier of Arbitration in the multi-tiered dispute resolution process of FIDIC-4th. Until

then the Quantity Surveyor advised the company during the early tiers, especially in procuring

the Engineer’s Decision pursuant to Clause 67. But under FIDIC 1999, referring the disputes

to the Dispute Adjudication Board (“DAB”), arranging witness statements, preparing the

witnesses, dealing with matters of evidence and arguments, participating in hearings and

all other dealings with the DAB on jurisdictional, procedural and substantive issues, are now

matters that the Quantity Surveyors would have to undertake (and provide the companies

with correct advice), as lawyers are not engaged during this early tier. Companies which

would offer their QSs with training opportunities in these areas would have the company

interests protected.

Prof. Indrawansa Samaratunga DSc,FRICS, FAIQS, FIQSSL, FCIArb, FCIOB, FCMI, FASI, FCABE

Chartered Surveyor, Chartered Manager, Chartered Construction Manager,Chartered Building Engineer, Chartered Quantity Surveyor

Arbitrator / Mediator - London Court of International ArbitrationArbitrator / Expert - Dubai International Arbitration Centre, UAE

Construction Law and Dispute Resolution Advisory Board member of the British University in Dubai

51 IIQS - 2015 | 50 | IIQS - 2015

United kingdom (Uk) was the first country to have

statutory framework for adjudication through

Housing Grants, Construction and Regeneration Act

(Construction Act 1996) which requires that all the construction

contracts in Uk need to have the adjudication as the

mandatory dispute resolution provision.

Since then, the adjudication has been adopted in some

other common law countries such as Australia, New Zealand,

Singapore and recently Malaysia.

The process of adjudication and the key differences that it

bears to arbitration are discussed hereunder.

Initiation of Adjudication

The adjudication process is initiated when the party referring

the dispute to adjudication gives written notice. This Notice

of Adjudication should include the nature of dispute and the

remedy being sought.

The Notice of Adjudication is considered the commencement

of the adjudication procedure.

Appointment of the adjudicator

Following issuance of the Notice of Adjudication by a party,

the next requirement is to appoint an adjudicator. The

appointment of an adjudicator must be achieved within seven

days from service of the Notice of Adjudication. The parties

can either agree on an individual to act as the adjudicator

or, if agreement cannot be reached, the party who referred

the dispute to adjudication may apply to an Adjudicator

Nominating Body (ANB). The ANB then notifies of its selection

to the party who referred the dispute to adjudication within

five days.

The referral notice

The referral notice must be served by the claimant within seven

days of service of the Notice of Adjudication. The referral

notice sets out in detail the case of the party who is referring

the dispute to adjudication and it should have the necessary

documentation in support of the claim together with expert

and factual witness statements (if any). A copy should be sent

to the other party at the same time.

Time Period / Adjudicator’s Decision

The responding party ’s response is required to be served within

seven days of the Referral Notice.

The adjudicator is required to reach his decision within 28 days

of service of the referral notice. This period can be extended

by a further 14 days if the party who referred the dispute in

the first place agrees, or can be further extended only if both

parties agree.

This tight time table is the essence of the adjudication process

which ensures to obtain quick and cost effective results

which are of a binding nature unless reversed by litigation or

arbitration.

The main difference between the adjudication and arbitration

lies in respect of adjudicator applying his own knowledge in

determining the fact and the law. An adjudicator is permitted to

rely on its knowledge and experience to initiate the determination

of the fact and the law, but at the same time his is required to

inform his findings to the parties in interest of the natural justice

and provide the parties the opportunity to respond. However, in

contrast, an arbitrator will only use his knowledge and experience

to better understand the evidence submitted by the parties, but

not to determine the fact and law. This is an important distinction

between the arbitration and adjudications.

The adjudicator’s decision is final and binding, providing it is not

challenged by subsequent arbitration or litigation. The parties are

obliged to comply with the decision of the adjudicator, even if

they intend to pursue court or arbitration proceedings. If a party

chooses to pursue subsequent proceedings in the arbitration or

Adjudication is a dispute resolution procedure for resolving disputes without resorting to lengthy and expensive arbitration or court procedures.

the courts, the dispute will be heard afresh, not as an ‹appeal› of

the adjudicator’s decision.

Adjudicator’s fees and expenses

The parties are jointly and severally liable to pay the adjudicator

the fee and expenses reasonably incurred by him.

Synopsis

The adjudication is a fast track dispute resolution process

wherein the adjudicator is permitted to use his expertise and

experience to initiate determination of facts and the law, which

is the main reason that the adjudicators can manage their

decision within the statutory 28 day period, instead of relying

only on the submissions of the parties. Also, the adjudicator has

full control on the procedural issues which also helps to define

the time period for each stage thereby helps in reaching the

decision within the tight time frame.

However, the down side being that the adjudication is

binding but temporarily final until the dispute is determined by

arbitration or litigation. Also, with the arbitration tribunals, one

can have a high level of confidence due to high credentials

required to become an arbitrator and the arbitration process

being conducted under strict statutory framework. In contrast,

the quality of adjudicators may be variable since there are

many short training courses available to be trained to work as

an adjudicator.

Notwithstanding very few drawbacks of adjudication, the main

reason that the adjudication has been very successful in Uk is

due to the reason that it has some very good features different

to arbitration, but at the same time retains some of the quasi-

judicial features of arbitration. The success of adjudication in

Uk can therefore be attributed to the following key reasons:

• It can be initiated any time during the course of the

contract; there is no requirement to wait until the end of

the project as in some of the arbitration provisions.

• The decision is quick (28 days extendable to 42 days with

consent of referring party), which provides a quick cash

flow relief to the claimant.

• It is binding and the enforcement can be obtained from

the court through a summary judgement.

• The case law on the challenge to adjudicator ’s decision

on the grounds of jurisdiction or the apparent bias

indicates that the courts have been unwilling to nullify

the adjudicator ’s decision unless there is a very strong

evidence of lack of jurisdiction or breach of natural justice.

• Most of the disputes in Uk construction industry that

were further referred by the losing parties to arbitraton

or litigation ended up in almost similar award as were

decided in the adjudication.

It is therefore high time that other countries also start initiating

the legal framework to have adjudication as a mandatory

dispute resolution mechanism in the construction contracts.

This shall protect the stability of the cash flow for the weaker

parties in the construction contracts namely contractors,

subcontractors, suppliers and the consultants and shall create

a healthy construction industry.

This tight time table is the essence of the adjudication process which ensures to obtain quick and cost effective results which are of a

binding nature unless reversed by litigation or arbitration.

Mr Dharmendar Pardasani is working as Director-Contracts with one of the largest Consultancy firm Parsons Overseas Limited in Dubai. He has a LLM (Construction Law & Arbitration) (UK), MSc in Quantity Survey (UK) and a Bachelor in

Civil Engineering (India). He has over 30 years of Experience in the Construction Industry.Mr. Pardasani a Fellow (FRICS) of Royal Institution of Chartered Surveyors (UK), Fellow (FCIArb) of Chartered Institute

of Arbitrators (UK), Fellow (FAIQS) of Australian Institute of Quantity Surveyors and Corporate Member (MCIOB) of Chartered Institute of Buildings. Also, he is Board Member of RICS MENEA Region Education Board.

Dharmendar PardasaniMSC(QS),FRICS,FAIQS,MCIOB,MCIArb

Director & Global Vice PresidentContracts Manager, Parsons UAE

Adjudication:Riding High on Success in Uk Construction Industry

53 IIQS - 2015 | 52 | IIQS - 2015

Recently, I was discussing various issues related to acceleration /disruption claims with Tony Bingham (renowned barrister) and Ian Robinson (Expert Delay Analyst for Walter Lilly – Walter Lilly v Mackay). Over the course of our conversations, we agreed that misconceptions still exist about how to properly identify, agree and quantify disruption /acceleration claims.

This article hopes to provide an overview of “acceleration” from a legal, contractual and practical perspective.

Acceleration ClaimsConfusion Reigns Supreme!

Legal / Contractual Aspect

In Ascon Contracting Ltd v. Alfred McAlpine Construction

(1999) Judge Hicks stated:

“…‘Acceleration’ tends to be bandied about as if it were

a term of art with a precise technical meaning, but I have

found nothing to persuade me that this is the case…”

With all due respect to the learned Judge, it is possible to

clearly define and quantify acceleration from a technical /

contractual angle. Over the years, I’ve submitted countless

acceleration claims and achieved a significant level of

success.

The Judge also stated:

“…what is plain is that there cannot be both an extension

of time to the full extent of the employer’s culpable delay,

with damages on that basis, and also damages in the form

of expense incurred by way of mitigation, unless it is alleged

and established that the attempt at mitigation, although

reasonable, was wholly ineffective…”

[Emphasis Added]

In this case, Ascon fell victim to the misconception I mentioned

earlier on about the quantification of acceleration claims. On

several occasions, I’ve had to deal with “Acceleration plus

Extension of Time” claims from Contractors; in most cases, the

two claim headings are mutually exclusive.

I place emphasis on the phrase “in most cases” because

it is possible to submit an acceleration and extension of

time claim in tandem. In the above extract, the Judge is

right and states something similar to what I told Contractors.

However, I underlined the words “wholly ineffective”; what if

the acceleration measures were not “wholly” but “partially”

ineffective”? Say, there was a 6 month delay caused by the

Employer and the Contractor managed to accelerate and

reduce the delay by 3 months. Is he not entitled to a 3 month

EOT plus an acceleration claim for reducing the delay? I would

say the Contractor is entitled to recovery for both claims.

1. Voluntary acceleration: Here, the Contractor accelerates

of his own volition in order to finish the works earlier than

the original contract completion date. It should be noted

that the FIDIC Red Book (1999 Edition) gives the Contractor

a contractual right to finish the Works before the Time for

Completion. Sub-Clause 8.2 states that “The Contractor shall

complete the whole of the Works, and each Section (if any),

within the Time for Completion…” [Emphasis Added]

However, the Contractor should be aware that the “The

Employer’s Personnel shall be entitled to rely upon the

programme when planning their activities.”,

Sub-Clause 8.3 refers. Furthermore, an unrealistic programme

with unachievable productivity levels may well prove to be the

Contractor ’s undoing during claims related scenarios.

Classification of Acceleration ClaimsAcceleration may broadly be categorised as follows:

2. Mutually agreed acceleration measures: In this situation, the

Contractor and the Employer mutually agree to acceleration

measures in order to recover delays which were not caused by

the Contractor. Alternatively, the parties may agree to a reduced

Time for Completion via the value engineering option pursuant

to Sub-Clause 13.2 of FIDIC (1999 Edition).

3. Instructed or Directed acceleration: In this scenario, the

Engineer instructs the Contractor to expedite progress of the

Works if there are any critical delays arising from events caused

by the Contractor, Sub-Clause 8.6 refers. It should be noted that

the Engineer is only entitled to invoke this Sub-Clause if delays

were caused by the Contractor.

4. Constructive acceleration: This occurs when the Contractor

accelerates the work even though he was not responsible for

delaying the works. Constructive acceleration is a complex /

risky measure and should only be undertaken after receiving

professional advice

Acceleration Does Not Automatically

Equate To Additional Costs

It is not always a foregone conclusion that acceleration results

in additional costs. Sometimes, a Contractor can actually

save money by accelerating the works!

For example, let’s assume that a Contractor is asked to

accelerate by renting an additional plant e.g. one more

excavator. Now, I’ve come across Contractors who would

submit this excavator ’s total cost as part of an acceleration

claim. This is incorrect because the excavator is executing

works and earning value /money. Notwithstanding additional

mobilization /demobilization costs, the Contractor could,

potentially, reduce his project duration and overall costs

(reduction to time-related prelims costs) if he is able to use the

excavator efficiently. A detailed cost analysis should be carried

out to in order to evaluate the validity of an acceleration

claim.

Conclusion

I hope this article will prove helpful while dealing with acceleration claims; it is a slightly complex topic and

one which should be handled with care. Presently, I’m discussing these type of claims with The Hon. Mr Justice

Akenhead (for a conference) and I hope to write about it in the future.

“…‘Acceleration’ tends to be bandied about as if it were a term of art with a precise technical meaning, but I have found nothing to

persuade me that this is the case…”

N.M.Raj, Managing Partner of Prime Consulting, is an internationally renowned and highly sought after claims / contracts specialist (FIDIC & other contracts). He is the creator of the internationally acclaimed

online Master Course in construction claims, Master Workshops and author of“Quick guide to construction claims” (with sales in over 65 countries).

Raj Has More Than 25 Years Of Commercial / Claims Management Experience On Iconic Projects Across the World.Raj holds dual qualifications in Engineering & Law; Raj has a degree in Civil Engineering and is a

Member (MCIArb) of The Chartered Institute of Arbitrators, FIDIC, SCL, DRBF & The AACE.Raj Has Also Held Memberships with the RICS, CIOB and APM.

N.M.Raj

55 IIQS - 2015 | 54 | IIQS - 2015

This short paper addresses an important aspect that a Quantity Surveyor may have to do in his career, which is to draft proper arbitration clause. Although the exercise of drafting arbitration seems straightforward, the history of arbitration has exposed the folly of humankind in failing to learn lessons from the past. Numerous cases are reported every year relating to defective arbitration clauses. This short paper provides a brief overview of defective clauses in arbitration.

Instances of Defective Arbitration Clauses

While an arbitration clause may touch upon several aspects

such as pre-arbitral procedures (such as negotiations,

mediation, etc.), specific disputes to be referred to arbitration,

number of arbitrators, seat of arbitration, time limit within which

arbitrators should decide, finality of arbitral awards, procedure

to be followed by the arbitrator etc., there are certain

essentials that an arbitration clause should possess. These

essential contents will differ depending on the nature/ type

of arbitration. Defective arbitration clauses are those which

lack in one or some of the essential elements of an arbitration

clause.

Some of such common defects found in arbitration clauses

are briefly discussed below1:

• Reference to Non-Existent Arbitral Institutions: Here, the

parties agree in their arbitration clause to refer their disputes

to an arbitral institution which is non-existent. In a recent

case, for instance, the parties agreed to refer their disputes

to the Singapore Chamber of Commerce.2 The court found

that there was no institution administering arbitration under

such name.3

• Reference to Non-Existent Rules: In this scenario, parties

agree for arbitration under non-existent rules. In System for

International Agencies v. Rahul Coach Builders Pvt. Ltd.4, the

parties agreed to arbitration under the “by-laws of Indian

Company›s Act 1956” or “as per International Trade Laws”.

The rules under which the arbitration had to be conducted

did not exist.

• Reference to Arbitrators who are no more alive at the time of

dispute: An arbitration clause may provide for reference of a

dispute to an arbitrator but when disputes arise, the arbitrator

may not be alive. ACC Limited v. Global Cements Ltd.5 is

a case in point. Here, the arbitration clause provided for

arbitration by either of the two persons who were both dead

when disputes arose.6

• Unworkable Arbitration Clauses: In this type of defect, the

arbitration clause provides for arbitration under an arbitral

institution but mandates that the arbitration has to be

conducted under arbitration rules of some other arbitral

institution or arbitration rules inconsistent with the rules of

the arbitral institution. For instance, in Insigma Technology

Co. Ltd. v. Alstom Technology Ltd7, parties agreed

to refer disputes to arbitration before the Singapore

International Arbitration Centre but in accordance with

Rules of Arbitration of the International Chamber of

Commerce. This is the case where the ICC Rules, which

are the arbitration rules of the ICC’s International Court of

Arbitration, but the arbitration was to be conducted by

Singapore International Arbitration Centre, an institution

similar to ICC.

• Reference of Disputes to Arbitration as well as Courts: At

times, parties agree to refer disputes to arbitration under

valid clauses but also agree contradictorily that courts

of a certain country or city would have the exclusive

jurisdiction over disputes.8

Incomplete Arbitration Clauses: Courts generally look for an

unequivocal intent to arbitrate. From this perspective, the

arbitration clause must employ mandatory language (such

as “shall” or “will”) to convey parties intent to refer disputes to

arbitration. Failure to do so would make the arbitration clause

defective. In Wellington Associates Ltd. vs. kirit Mehta9, the

agreement contained an exclusive jurisdiction clause and also

provided that any dispute “may” be referred to arbitration. On

a combined reading of both clauses, the court concluded

that reference to arbitration was optional and parties had to

mutually agree to refer the dispute to arbitration.10

Consequences of Defective Arbitration Clauses

Although courts in many jurisdictions these days are in

favour of enforceability of arbitration clauses and adopt an

interpretation that is in favour of giving effect to arbitration

clauses, it is possible that courts may adopt a diametrically

opposite stand. In the latter situations, defective clauses could

potentially have serious adverse effects. The party which is at

the receiving end of the notice invoking arbitration often takes

advantage of these defects to defeat the salutary objectives

of arbitration i.e. efficiency and finality. In such cases, there is

considerable wastage of time and effort in litigating in courts

on whether the arbitration clause is valid or not in courts, often

up to the highest court in the relevant jurisdiction. Apart from

considerable wastage of time and effort, the invoking party

has to expend substantial expenses in litigating the matter in

court. It is also possible that the party at the receiving end of

the arbitration notice may initiate proceedings in a country

other than the one chosen by the parties in the agreement.

This may lead to multiple proceedings in different jurisdictions.

A corollary of this is that multiple proceedings on the subject

may lead to inconsistent decisions on the enforceability of the

arbitration clause.

Conclusion

The effectiveness of the arbitration clause may have implications

even on the enforceability of the claim itself. These adverse

consequences could be avoided or at least mitigated by parties

through due diligence in framing arbitration clauses.

Several measures to prevent pathological clauses exist. Some of

the common methods are the following:

• Arbitral institutions generally provide model arbitration

clauses along with their rules. It is prudent to use these

clauses considering their universal applicability world over.

• While choosing an arbitral institution, it is important for

the parties to be aware of the consequence of such

choice on the arbitration proceedings. For instance, the

applicable arbitral rules may provide for appointment of

three arbitrators in the absence of an agreement to the

contrary.1 Appointing three arbitrators in a small value

dispute may not be necessary and would only lead to

high costs and delays in concluding the proceedings.

• Before agreeing to an arbitration clause, the parties

must exercise due diligence in choosing an arbitral seat,

the arbitral institution, etc. The arbitral seat may contain

mandatory requirements which may be onerous to one

of the parties.

Contract law in general and arbitration law in particular should

be enacted such that it should enforce the fair and prudent

commercial expectations. In such an ideal scenario, there

would be no need to obtain legal counsel while negotiating

agreements. However, in practical world, it is prudent for the

parties to get a dispute resolution policy drafted and vetted

by legal counsel and apply the same while negotiating

agreements. These measures would go a long way in avoiding

defective arbitration clauses.

Defective Arbitration Clauses: An Overview

1Gary B Born, International Commercial Arbitration, Wolters Kluwer (2009), p. 675-694

2Pricol Ltd. v. Johnson Controls Enterprises Ltd. (2015) 4 SCC 177: MANU/SC/1165/2014

3Also see, Lucky-Goldstar International (HK) Ltd. v. Ng Moo Kee Engineering Ltd. [1993] 1 HKC 404 (Hong

Kong High Court); In Re: Arbitration between C.M. Karanji & Co. (India) v. Indo-China Trading Co., Ltd. CWN

763: MANU/ WB/0403/1951; In the Matter of the Arbitration between Laboratorios Grossman, S. A., Appel-

lant, and Forest Laboratories, Inc., 31 A.D.2d 628 (1968)

4MANU/SC/0145/2015

5AIR 2013 SC 3824: MANU/SC/0489/2012

6There are instances where parties have agreed to refer disputes to certain institutions which ceased exist

when disputes arose. See, Gary B Born, International Commercial Arbitration, Wolters Kluwer (2009), p. 683.

7[2009] 1 SLR 23: [2008] SGHC 134

8Also see, AEZ Infratech Pvt. Ltd. v. SNG Developers Ltd. 2014 (143) DRJ 616: MANU/DE/1383/2014 ; Paul

Smith Ltd. v. H & S International Holding Co. Inc., [1991] 2 Lloyd‘s L.Rep.,

127; P. T. Tri-M.G. Intra Asia Airlines v Norse Air Charter Limited, [2009] SGHC 13

9MANU/SC/0232/2000 : (2000) 4 SCC 272;

10Also see, Lobb Partnership Ltd. v. Aintree Racecourse Co. Ltd. [2000] BLR 65

11See, for instance, Article 12 of the Arbitration Rules of the Arbitration Institute of the Stockholm Chamber of Commerce, 2010; Article 7(1) of the UNCITRAL Arbitration Rules, 2010.

BA (Law) LLB (SDM Law College, Mangalore University, India) LL.M.(WB National University of Juridical Sciences, Kolkata), Associate of the Insurance Institute of India, Member,

Chartered Institute of Arbitrators, UK.Currently working as Senior Executive (Law), Bharat Heavy Electricals Limited, Ranipet, India.

Badrinath SrinivasanBA, LLB, LL.M.

57 IIQS - 2015 | 56 | IIQS - 2015

“Unless commitment is made, there are only promises and hopes; but no plans”. Peter Drucker.

Programming and planningLifeline Of A Project

This article will focus on the PROGRAMMING AND

PLANNING competency requirement for Contract &

Commercial / Quantity Surveying (QS) professionals

who are involved in property and construction industry.

Generally a program for a construction Contract is a

commitment and an obligation. Whether it is a Developer or a

Contractor, application of proper programming and planning

techniques right from the inception stage will help them to

identify the opportunities and risks to complete the project on

TIME and within the BUDGET.

The Developer ’s master program must be fully coordinated

with the chosen procurement route. The master program

must consider design, construction, defect liability period and

handing over etc. Once the selected Contractor enters into

a Contract agreement with the Developer, he is under the

obligation to prepare and submit a program in accordance

with the Contract provisions, e.g. FIDIC 87 clause 14 or FIDIC

99 clause 8.3. This program is known as the Contract program

and it is important that the Contractor incorporates his chosen

construction methodology in compliance with the Contract.

Inadequate planning and scheduling can cause major delays

to the project. Accordingly, all the potential risks and delay

events are assessed and addressed within the program as

the project progresses to minimize the program risks. Some of

the common delay events faced are, difficulties in obtaining

work permits from local authorities, changes in government

regulations and law, lack of both skilled and unskilled labour,

strikes, bad weather conditions, poor standard of safety

management, delay on materials to be supplied by developer.

Generally in Middle East, projects are planned, designed

and constructed within a very strict timeline. Due to the strict

program requirement, proper programming and planning

of works from the onset is implemented in all of the projects.

Time, Cost and Quality are considered equally important in

majority of the projects and therefore there is no compromise

on these aspects. Timely completion will help to avoid cost

escalation, budget increase, disputes, etc. Therefore it is

important that a project is planned, monitored and executed

within a strict timeline.

PROGRAM BACKGROUND

In the early 1900s Henry Gantt developed a type of bar chart

called Gantt chart, which illustrates a project schedule with

start and finish dates of the activities of a project. At that time,

this was widely welcomed as Gantt Chart was successfully

used to build the ships in record time.

In the 1950s, Program evaluation and review technique (PERT)

was developed by the U.S. Navy and a consulting firm of Booz

Allen and Hamilton to facilitate the Polaris missiles project.

PERT is a method to evaluate and estimate the time required

to complete a task within targets.

In the late 1950s, the critical path method (CPM), a project

modeling technique developed by Morgan R. Walker of

DuPont and James kelley of Remington Rand. A sequence

of activities is called a ‘path’, and the longest-path in the

diagram is the critical path. It is ‹critical› because all activities

on it must be completed within the assigned time to prevent

delay.

In 1983, software Primavera was launched by Primavera

Systems Inc. Primavera software includes project

management, collaboration and control capabilities and

integrates with other enterprise software such as Oracle or

ERP systems. Currently Primavera software is widely used to

manage project program.

Indian Institute of Quantity Surveyors membership criteria

includes Programming and Planning competency as

follows:

• Knowledge, interpretation and application of

programme and schedules being used in the projects

involved by the applicants.

The assessment includes questioning on project program; the

following guidelines will used to explore the knowledge of the

candidates.

From a Contractor ’s perspective, the pre-contract planning

may not have much significance. Whereas from a Developers

perspective pre-contract planning will have a major

significance and a detailed planning is required at various

stages such as Feasibility, Master planning, Concept design,

Schematic design, Detailed design, tender stage, etc.

The programming and planning updates are extremely

important throughout the construction duration as any delay to

the project need to be analyzed carefully in accordance with

the contractual delay analysis mechanism. The commonly

applied forensic delay analysis techniques are Impacted As-

Planned, Collapsed As-Built, As-Planned versus As-Built, Time

Impact Analysis.

Forecasting the right quantity, quality and source of material to

align with the requirement and availability within the program

is important to ensure that unexpected delay won’t occur due

to delay in delivery of material.

Forecasting of man-power in accordance with proven out-

put achieved for a similar works will help to identify the overall

resource requirement based on the programme schedule.

The forecasting of cash flow should include revenue and

expenses taking into consideration of advance payment,

retention and actual pay-in and pay-out to calculate the cash

flow projections.

• Knowledge and interpretation of other programming

techniques, pert diagram, network analysis / critical

path method.

This will include questioning on technical details of program

aspect including, PERT, CPM, float, explanation on early start

and late start, different type of the activity relationships, etc.

The following outline will be used to explore candidate’s

knowledge.

Program Evaluation and Review Technique (PERT) and

Critical Path Method (CPM) are tools widely used in project

scheduling. Perhaps, the greatest contribution of these

tools is the identification of critical activities that require the

closest monitoring.

One of the planning techniques used to forecast expenditure

of a project is to create a cost loaded program in primavera

and the same is used in many of the projects to update

the monthly progress for the interim progress payment.

Also, check would be required to ensure if the program is

levelled, so that the resource requirements are uniformly

spread during the construction, material deliveries are

properly planned, and execution methodology is carefully

analyzed and implemented.

As can be seen from the aforementioned, the Programming

and Planning competency is much wider than the knowledge

of planning software. Competent Contract & Commercial

professionals with PROGRAMMING and PLANNING skills will

help the project to be completed on TIME and within the

BUDGET.

Mr. Varughese Mathew has Master of Laws (LLM) in Construction Law and Arbitration and is a Fellow (FRICS) of Royal Institution of Chartered Surveyors, Fellow (FCIOB) of Chartered Institute of Buildings, Member (MCIArb) of

Chartered Institute of Arbitrators, Member (MIIQS) of Indian Institute of Quantity Surveyors.Varughese has extensive experience in construction and property development and been in senior positions with Skanska, Carillion, EC Harris, Al Faraa and currently with Tourism Development and Investment Co in Abu Dhabi.He headed Contracts, Commercial, Cost Control, Procurement, Planning and legal departments and successfully

managed several court cases and Arbitration related to property development and construction in UAE.

Varughese MathewLLM, FRICS, FCIOB, MCIArb, MIIQS

59 IIQS - 2015 | 58 | IIQS - 2015

Cost planning / estimating is a method of providing cost data assists the project team to make the appropriate design decisions. The client may have cost limit for the project and /or may have established a design brief which narrates the client’s needs. To ensure that the client obtains the best value for money, the design must be economical.

Cost Plan Stages

Typically cost planning is carried out at the completion each

of the following stages of the project pre-contract phase.

1. Feasibility stage

2. Concept Design stage

3. Schematic Design stage

4. Detail Design stage

The cost plan carried out at the feasibility stage is validated at

the end of the concept design stage. Typically in large projects

the cost plan that is approved by the client at the end of the

concept design stage is set as the budget for the project.

It may be noted that the cost plan produced at the end of

detail design stage is typically based on the Bill of Quantities.References and citations

College of Estate Management, Reading, Uk, cost planning module (1996)

New Rules of Measurement (NRM) by Royal Institution of Chartered Surveyors,2nd edition (2012)

Order of Cost Planning

The information provided in the cost plan must be in a form

that can be understood by all parties i.e. and hence it must

be presented in a proper elemental breakdown.

Lack of consistency in measurement and description makes it

extremely difficult for the client and project team to understand

what is included in the cost plan / estimate, cost limit or cost

target advised by the quantity surveyor; often resulting in

doubts about the cost advice provided. In order to overcome

this, the Royal Institution of Chartered Surveyors (RICS) have

produced a document called ‘New Rules of Measurement

(NRM) in 2009. This document provides guidance to quantity

surveyors so that a common and consistent basis is used to

measure areas and building works items for the purpose of

cost estimates and cost plans. It also provides guidance on

providing a structured approach for dealing with the other

constituents needed to calculate cost estimates, cost limits or

cost targets. The New Rules of Measurement (NRM), Volume 1

is for ‘Order of cost estimating and cost planning for capital

building works.

The appendices to the NRM, volume 1 contains the logic and

arrangement of levels 1 to 3 for elemental cost planning.

Basic Elements Required for a Cost Plan

The basic elements required for the preparation of a cost plan

are:

• Project Description

• Project Location

• Intended Building Use

• Client Brief / Design Information / Outline / Detailed

Specifications

• Historical Data

• Area Information

The following information shall also be included in the cost

plan to serve as an audit trail.

• Drawings and specifications used

• Any assumptions made

• Inclusions / exclusions

• Run date

• Source of data used

Conclusion

To conclude, it is an important role of quantity surveyor in a

project to provide cost plan produced in a systematic manner

at the conclusion of each stage of the design development.

A good cost plan is an essential ingredient for a good cost

management of a project.

Refer to sketch 1 below on project cycle

Cost Plan Process

The process chart shown below will assist the readers in the

understanding of the process involved. Note that ‘Value

Engineering; has a close relationship to the cost planning

process.

Sketch 2 - Cost Planning Process

Cost Plan Development

The relationship between the cost plan development and

the stages of the design development is shown in the sketch

below and will provide the reader an understanding in an

effective manner of the cost plan development.

Sketch 3 – Cost Plan Development

Cost planning

Sam is the Associate Director in Mace , Dubai and he is a qualified Civil Engineer and a Chartered Quantity Surveyor. Sam has over 25 years of experience and 15 years with British Consultancy organizations such as Bovis and Mace.

Sam provides training on cost management in Mace and has also conducted CPD events forCollege of Estate Management and Institute of Quantity Surveyors –Sri Lanka and he is the member of :

a. Member of Institution of Engineers (India)b. Member of Institution of Surveyors (India)c. Fellow member of Royal Institution of Chartered Surveyors, RICS (UK)

Sam Raman AMIE (India), B.Sc. (Hons.) (UK), MIS (India), FRICS (UK)

61 IIQS - 2015 | 60 | IIQS - 2015

The approach to cost management within a project is highly dependent upon the processes, policies and standards used in the host organisation. Cost management in a real estate project, will demand standard set of processes to map the cost at WBS level. All stakeholders might have different expectations from their project, but such expectations will create thrust to bring in processes and policies for effective cost management.

Cost Management

Is it tricky to manage costs in real estate projects? Are we

doing or managing something unusual? Answer is NO.

Still we normally observe cost is going up in projects. Someone

can enumerate reasons for such change but it ’s important to

bring it on table at the right time where Project Manager can

take corrective action to maintain project margins.

Right base accompanied with proper understanding on

scope and timelines is the key for any project. Most of the

time, controllers are not aware of the scope and timeline for

which project need to perform. Once the project is underway,

actual and forecast expenditures can be regularly monitored,

in fact it should happen that way. Use of standard cost report

is normally recommended where each elemental head will

get tracked in terms of its budget, commitment, anticipated

changes and actuals at pre-defined frequency. Frequency

of reporting and WBS are closely linked with the total value,

timeline of the project. Both these parameters can be

improved to bring out the desired results.

Let us see how such report will get evolved as project

progresses.

• WBS wise budget – provision available to complete the

desired scope within the desired time.

• Order value and agreed changes – actual value of

awarded work and changes agreed from time to time

with approval from project sponsor.

• Anticipated changes / unplaced order – provision kept

and weighed at frequency for the works not covered in

the scope awarded. Rigorous updates on this section is

important but often found un-attended and results into

uncontrolled cost report.

• Actuals also plays great role and gives idea on financial

completion of the project.

• The forecast cost is then sum of commitments, accruals,

actual expenditure and an estimate of the cost to

complete the balance works.

Graphically, a report showing S-curve for the original plan

along with updated S-curve of actual spend to date, can

quickly highlight financial status of the project. Such early

projections will help Project Manager to bring-back the project

on track and assures completion of project with minimum

variation of time as well as on cost front.

Table 1 – sample report at the start of the project (day ‘0’) - available data/budget has been captured under key

elemental heads.

Table 2 – sample report form after 3 months - excavation and shell and core works awarded.

Budget for shell and core has broken down further to reflect change in contracting strategy, separate heads to

capture purchase of concrete and steel as free issue material.

Table 3 – sample report form after 6 months - finishing and services works awarded (except lifts and DG works).

Such detailed monitoring and reporting on cost at predefined intervals will definitely help project management decision

making, increase accountability and responsiveness of the Project Manager. It will also help to bring in more control and to

provide consistent and reliable cost forecasts.

Reports/ elemental heads can be customized to meet unique requirements of any project /Project Manager. Review and open

discussion on such reports is important to maintain desired quality, accountability and ownership of cost. % completion

at the end of the report is typically financial completion of project and someone should not mix this with physical progress of

project.

General Manager - Contracts and C&B with Godrej Properties Ltd. Cost control engineer with 14+ years of professional work experience in Cost management, Feasibility studies, Formulation and roll-out of SOP’s, Planning of multiphase

projects & large townships and Audits of Real estate & Hospitality sectors in many parts of the India.

Nilesh Kushe MRICS, ME-Civil, CPM-OM

63 IIQS - 2015 |

Life Cycle Cost Analysis (LCC) advocates reducing the life cycle costs for buildings, equipments in wide areas within all sectors by showing why reliability and maintainability must be included in upfront decisions for strategic and tactical issues of achieving the lowest long term cost of ownership. LCC concepts are resurging presently within global organizations, responsible MNCs with Corporate Social Responsibility (CSR) in place, including worldwide Government efforts to minimize energy costs. A thorough Project Delivery Process (PDP) that addresses all aspects of planning, budgeting, design, and construction should be the basis of LCC.

Cost-effectiveness is a key component of

design for all projects, and initial project

costs are the focus of many activities in

the PDP. The long-term cost implications of building

projects, however, range far beyond initial design and

construction expenses. As the industry grows and ages,

the cumulative cost of operating and maintaining

facilities significantly impacts the overall institutional

budget. To improve the cost-effectiveness of its building

and renovation programs, we must invest in designs

and systems with improved long-term performance.

Why use LCC?

LCC helps change provincial perspectives for business issues

with emphasis on enhancing economic competitiveness by

working for the lowest long term cost of ownership which is not

an easy answer to obtain. Consider these typical problems

and conflicts observed in most companies: 1. Project Engineering wants to minimize capital costs

as the only criteria, 2. Maintenance Engineering wants to minimize repair

hours as the only criteria, 3. Production wants to maximize uptime hours as the

only criteria, 4. Reliability Engineering wants to avoid failures as the

only criteria, 5. Accounting wants to maximize project net present

value as the only criteria, and

6. Shareholders want to increase stockholder wealth as

the only criteria.

Management is responsible for harmonizing these

potential conflicts under the banner of operating for

the lowest long term cost of ownership. LCC can be

used as a management decision tool for harmonizing

the never ending conflicts by focusing on facts, money,

and time.

Engineering always want a simple, single value, criteria

for a project—the answer for LCC is called net present

value (NPV). NPV is the present value of proceeds

minus present value of outlays. Projects and processes

with the greatest NPV is usually the winner. Often for

incremental changes on a project or within a plant,

you lack enough details to arrive at a positive NPV. Thus

many improvement projects must be selected on the

least negative NPV values from many alternatives. So

once again, we can have the single number engineers

always want—it’s NPV but in this case, it ’s the least

negative NPV.

Designing for Minimum Life Cycle Costs

LCC is a method of evaluating the cost-effectiveness

of project design decisions. LCC is comprehensive

because it properly accounts for many project cost

Life Cycle Cost Analysis

65 IIQS - 2015 | 64 | IIQS - 2015

variables. These include a wide variety of project

costs (construction, operations, maintenance,

replacements, utilities, etc.). They also encompass

the time value of money, including a project-specific

discount rate, inflation, and cost escalations for a

variety of goods and services.

The LCC Process

Performing an LCC study involves (1) establishing

objectives for the analysis, (2) determining the criteria for

evaluating alternatives, (3) identifying and developing

design alternatives, (4) gathering cost information, and

(5) developing a life cycle cost for each alternative.

What goes into LCC?

LCC includes every cost that is appropriate and

appropriateness changes with each specific case

which is tailored to fit the situation. LCC follows a

process (Fabryck 1991- Appendix A) as shown in

Figure 1. The steps are:

Step 1-Identify what has to be analyzed and the time

period for the project life study along with the

appropriate financial criteria.

Step 2-Focus on the technical features by way of

the economic consequences to look for alternative

solutions.

Step 3-Develop the cost details by year considering

memory joggers for cost structures.

Step 4-Select the appropriate cost model, simple

discrete, simple with some variability for repairs and

replacements, complex with random variations, etc.

required by project complexity.

Step 5-Acquire the cost details.

Step 6-Assemble the yearly cost profiles.

Step 7-For key issues prepare breakeven charts to

simplify the details into time and money.

Step 8-Sort the big cost items into a Pareto distribution

to reconsider further study

Step 9-Test alternatives for high cost items such as what

happens if maintenance cost is ±10% than planned,

etc

Step 10-Study uncertainty/risk of errors or /alternatives

for high cost items as a sanity check and provide

feedback to the LCC studies in iterative fashion

Step 11-Select the preferred course of action and plan

to defend the decisions with graphics LCC combines

acquisition and sustaining costs. Acquisition and

sustaining costs are found by gathering the correct

inputs, building the input database, evaluating the

LCC and conducting sensitivity analysis to identify cost

drivers.

Summary Life-cycle costs include cradle to grave costs converted

to NPV economic models. When failure costs are

included, the quantity of maintenance manpower

required can be engineered which avoids the use

of antique rules of thumb about how maintenance

budgets are established. LCC is a method to correctly

consider long term business decisions which have

advantages for profitability. LCC is not easy, but it is

effective for building a sound business case for action. LCC is the “laser guided missile” attack on important

business problems for projects and processes—of course

it requires greater sophistication than attacking problems

with proverbial “hammers, tongs, and brute force”.

Good alternatives for LCC require creative ideas. This

is the role of the Quantity Surveyor to suggest and

recommend cost effective alternatives. Much lower

LCC are obtained when creative efforts are employed

in the design area--making changes downstream in the

operating plants has smaller chances for improvements

because it ’s employed too late in the improvement

cycle. Design engineers are the most important link in

devising cost effective plants and naturally the burden

of LCC falls on their shoulders—but design engineers

can’t perform an effective analysis unless they have

reasonable data from operations.

LCC is simply a way-stop on the never ending journey for

reducing costs. LCC is clearly not a destination. LCC

provides the tools to engineer maintenance budgets,

ownership costs, and present decision making scenarios

in a financial perspective to achieve the lowest long

term cost of ownership.

Mr. Jacob Joby a Bachelor of Civil Engineering, a Certified Cost Engineer (CCE), Member (MIIQS) of Indian Institute of Quantity Surveyors and Masters in Business Administration in Real Estate.

Jacob is a mixed –use Development and Commercial Specialist with over 19 years of experience having worked in senior positions with Dubai World, Nakheel, Turner, Khansaheb and Strabag. Currently a Director Development with

Shapoorji Pallonji Group his management experience covers all aspects of the development lifecycle from business planning and strategy, to project visioning and feasibility, master planning and design, financing, construction, sales and

marketing and asset management related to property development and construction in UAE.

Jacob JobyCCE, MIIQS

Figure2:AcquisitionCostTree Figure3:SustainingCostTree

Acquisition costs have branches for the cost tree

shown in Figure 2 as a memory jogger.

Sustaining costs have branches for the tree as

shown in Figure 3 which is also a memory jogger.

Figure1:LifeCycleCostingProcess

67 IIQS - 2015 | 66 | IIQS - 2015

A provisional sum is the sum included in the contract and so is designated in the bill of quantities for the execution of work or the supply of goods, materials or services or for any contingency, (Rushbrooke n.d.).

Do we need the Provisional Sums?

P rovisional sums are introduced into the bills of

quantities during the preparation of the tender

document stage usually because:

(i). Some of the work could not be adequately decided and

detailed out by the Client before tendering;

(ii). Some of the work could not be designed by the design

team before the tender was sent out for the Contractors;

(iii). There was a need for specialist suppliers of materials or

Sub-Contractors who would be later nominated as the Sub-

Contractor or supplier by the Client to the Main Contractor;

(iv). There was a uncertainty whether some work was required

or not;

(v). Work required to be executed by the local authorities.

The advantage of this procedure is that the employer does not

have to enter into a series of separate contracts with various

parties in the same project, (Wainwright W.H., and Wood A.A

B 1983).

The definition for the provisional sums has been given in

many of the standard forms of contracts. In Sub-Clause 58.1

(Definition of “Provisional Sum”) of FIDIC fourth edition has

given the descriptive definition. Similarly, Sub-Clause 1.1.4.10

(Provisional Sum) under the definition of FIDIC 1999 edition has

given a brief definition:

“Provisional Sum” means a sum (if any) which is specified

in the Contracts as a provisional sum, for the execution of

any part of the Works or for the supply of Plant, Materials or

services under Sub-Clause 13.5 (Provisional Sums)”.

(In addition to the standard forms of contracts, the standard

method of measurements has also given some definitions

for the provisional sums. In the Principles of Measurements

(International) – June 1976 (POMI) under the clause GP6

(Work to be executed by a specialist nominated by the

employer), under clause GP7 (Goods, materials or services to

be provided by a merchant or tradesman nominated by the

employer), and GP8 (Work to be executed by a government

or public authority) has defined how to include a sum for the

work, services, and materials that is not comprehensively

identified at the time of tendering. In these three scenarios

it had generally been stated that “Unless otherwise required

by the conditions of the contract …. shall be given as a

sum; such sum shall be exclusive of profits…” meaning to the

provisional sums.

Civil Engineering Standard Method of Measurements-third

and fourth editions, CESMM-3 and 4, has also defined the

provisional sum under paragraph 5.17 and 5.18 respectively.

The definition given in the paragraph 5.18 of the CESSM-4 is

somewhat practical compared to CESSM-3 and POMI, thus:

“Provision of contingencies shall be made by giving Provisional

Sums in the Bill of Quantities and not by increasing the

quantities beyond those of the work expected to be required.”

The second sentence of the paragraph 5.18 has clearly

defined the provisional nature of the work, thus:

“Provisional Sums for Defined Work shall be included where

work is known to be required but the scope of the work cannot

be completely designed but the scope can be defined”.

Application of Provisional Sums

In most of the tenders, it is a standard practice to include

provisional sums for the mechanical and electrical engineering

services, vertical transportations, special finishing items,

swimming pools, boundary walls, landscaping and similar

work. The design team normally delay the design of these

elements of the project and include them as provisional sum

to the tender. Thereby, they save time to detail these elements

of the design and to some extent save their cost by transferring

the design scope to the specialist Sub-Contractors under the

provisional sums. The question is that would the Client get

the value of services for the fee he paid to the design team?

According to most of the consultancy agreement, the design

consultant shall design the whole project. However, by using

the provisional sum clause in the contract and with the option

of part of the permanent work designed by the contractor

(Sub-Clause 7.2 of FIDIC-1987 [Permanent Works Designed by

Contractor] and Sub-Clause 4.1 of FIDIC-1999 [Contractor ’s

General Obligation]), most of the consultants are pushing

these work elements to the provisional sums. This will transfer

the issues onerously to the Clients to make timely decision on

the procuring of nominated Sub-Contractors and suppliers to

comply with the contractors programme.

Further, during the post-contract stage, the design consultants

may develop the performance specifications with the input

of post-contract supervision staff and with expert contribution

from the Main Contractor. Thereby, the Client may not be

received the intended design input from the professional

consultant. Having provisional sums in the contract it would

lead to extension of the time claim situation due to the

procurement strategy to be followed by the Client and its

decision making process and procedures. Such extension

time to the contract would benefit both the contractor and

the consultant in commercial business points of view.

Effective Use of Provisional Sum Provision

The use of provisional sum clause in the contract shall be

beneficial to the Client and to the project. No provisional

sums shall be allowed to the tender unless it is really

required. The design team shall take all endeavors to

complete the design prior to tendering the project. Thereby,

the Client would be able to receive the cost certainty in

view of the completeness of the design. Further, the Client

would be able to avoid numbers of sub-contract tendering

packages, for which Clients have to invest more resources

over and above the main tender package. However, this is

practical only if the Client allows a sufficient design period

to the consultant to complete the design prior to the tender.

Selection and nomination of Sub-Contractor either by the

Client or through the Main Contractor is a time consuming

process. By avoiding provisional sums in the tender and

by including such items in the bills of quantities, the Client

would be able to get the cost certainty, less requirement

of coordination and less requirement of management of

procurement and nomination of Sub-Contractors, avoid

potential claims due to delay in instructing the use of

provisional sums (Sub-Clause 58.2 [Use of Provisional Sums]

of FIDIC -1987 or Sub-Clause 13.5 [Provisional Sums] of

FIDIC-1999).

Conclusion

It is a practice to use provisional sums in the tender

documents by the Clients largely due to influence of the

design consultant. This may be due to the failure to complete

the design completely prior to the project tendering. This

would occur due to two reasons; (i) lesser time allocation for

the design period, and (ii) the consultant ’s failure to meet

the design program. A third reason would be that Client

would want to accelerate the project tender program.

Parties shall extend their maximum effort to avoid the

inclusion of provisional sums within the tender so as to get

the price certainty at the time of signing of the contract

and avoid future disputes with the Main Contractor, as well

as to save the resources of the Client in the procurement

and nominating of Sub-Contractors and Suppliers.

References

Rushbrooke. n.d. Working with FIDIC, a practical approach to its use in the Middle East. Dubai: Middle East Construction, 16.

Wainwright W.H., and Wood A.A B. 1983. Variation and Final Account Procedure. London: Hutchinson.

Ajantha PremarathnaMSc. (PM), MBA (PIM-USJ), FRICS, FAIQS, FIQSSL, ACIArb,

AIQS and RICS APC Assessor and Chairman,Former member of MENEA World Regional Board of RICS,

UAE Country coordinator for AIQS and IQSSL,Director of Contracts and Procurement Department of Dubai Properties LLC

69 IIQS - 2015 | 68 | IIQS - 2015

As human beings, we view ‘change’ differently and our perception changes depending on the circumstances and what is the change we are hoping for. The truth is that whether the change brings good or bad, one thing is certain. Change is inevitable. As the famous French author François de La Rochefoucauld once quipped “The only thing constant in life is change”.

“Managing the Change” in Construction projects

“Change” defined

We all recognize that changes are inevitable in construction

projects and hence it has to be managed effectively to

minimize the impact. The change is viewed differently by

various stakeholders. The contractor perceives that a change

will bring in more revenue as a positive variation; whereas the

Consultant or Supervising Engineer view the change not as a

variation to the Works but only an explanation of the scope that

the contractor deemed to have priced for. Finally, despite the

desire to change or enhance the original design, the Client/

Employer1, may take a restrictive view and may hesitate to

adequately compensate for the changes.

Project changes are inevitable at every stage of design

and construction. Changes could be for two reasons. Firstly,

change in the Contract terms and Conditions itself, in which

case it amounts to amendment of the Contract and the

requirements of authorized signatories are to be complied

with. However such changes are rare in construction contracts.

More often the changes are in the scope of work or sometimes

on the method of working. Changes may arise due to poor

initial planning, design errors and gaps, technical innovation,

emerging of new products, changed circumstances However,

the reality is that Employer ’s change in requirement is the most

common reason for a variation in a construction contract.

Although the Contractor ’s first reaction is that additional work

means extra money, the underlying risk of a variation is the

consequences of delays and disruption and establishing

them aren’t easy and mostly likely to land in dispute.

Change management under FIDIC

Standard forms of Contract normally address the issues arising

due to changes, but it is important to understand how the

terms of the Contract allocate risks between parties and how

the change management procedure has been stipulated.

The change is normally described as variation under FIDIC

suite of contract. But a variation is not a claim. The loose

terminology often used goes like this “The Contractor is

claiming for variation or claiming for payment against interim

valuation”. For example, under FIDIC 992, the claims are to be

administered under Clause 20.1 and this is the overall clause

where the Contractor is instructed to bring any claims for

additional time and money and failing which the contractor

loses his entitlement. In short, it is the Contractor who will

notify and bring claims against the Employer. On the other

hand, variation is often instructed by the Engineer on behalf

of Employer and could be either addition or omission to the

original scope.

FIDIC empowers the Engineer to initiate variations either by

instruction (Sub Clause 3.3) or by a request for the Contractor

to submit a proposal (Sub-Clause 13.1). An instruction can be

issued at any time to the extent that it is necessary for the

execution of the Works (Sub-Clause 3.3).

In order to avoid instructing variations without the understanding

of its consequences, the Engineer will usually request a

proposal from the Contractor (Sub-Clause 13.3). The latter will

then respond in writing as soon as practicable, either by giving

reasons why he cannot comply or by submitting a detailed

proposal.

The Contractor is bound to execute each variation, unless

he promptly notifies the Engineer that undertaking the varied

work is not possible for the reasons beyond his control. The

Engineer is not permitted to omit work in order to have it done

by others. He is also not permitted to amend the conditions of

the contract. Thus variations must not differ radically from what

the Contractor has already promised to do. The Contractor is

also entitled to initiate variations on special grounds3. This kind

of variation has been named Value Engineering.

Need for robust change management procedure

It is important to have an established change control

procedure in place. In absence of this, quantity surveyors or

contract managers from both sides will end up having different

perception of scope and technical requirements which

could potentially result in dispute and delay. It is worthwhile

to establish a good change management procedure and

agree the changes in a fair and reasonable manner, More

often than not the variations are being evaluated only after

substantial completion of the work and both parties arguing

on the methodology and cost inputs. This practice puts the

Contractor in a difficult situation as the contractor need to

finance the varied scope of work upfront pending approval

of his costs.

A robust change control mechanism must capture change

estimation, impact analysis, post change analysis, statistics,

and more importantly, change traceability. An integrated

change management system requires technical supports

from different technologies, including collaborative workflow

and system integration.

Minimize changes, Contract with care!

This author is not against a change or variation incorporated in

a project. The emphasis is that a change must be always an

exception and must be justified. It is not just enough to have

a change control clause in the Contract. The design must be

complete and scope of work must be carefully and clearly

defined. The design team must understand the risks of design

errors and gaps and unless the team has satisfied with the

documentation the project should not even be tendered. The

Employer must understand the consequences of instructing

changes to a project during construction and the steep price

to pay for the associated delays and disruptions. Similarly the

contractor must ensure that the ambiguities in the scope and

technical requirements are carefully reviewed and clarified

during the tender process.

Changes may have considerable negative impacts on items

such as costs and schedule delays. A critical change may cause

consecutive delays in project schedule, re-estimation of work

statement, and extra demands for resources. Changes, if not

resolved through a formalized change management process,

can become the major source of contract disputes and can

contribute to project failure.

Effectively managing change orders in construction processes

is not trivial because change orders are a part of contract and

they need to be strictly traced in terms of contracts, documents,

approval process, payment claim, etc.

Proposed change control model (Ten Commandments)

1. No change of work without written instruction

2. Is the contractor is obligated to propose improvements or

value engineering?

3. Format and requirements of a change proposal and

approval protocols

4. Simplified procedure to agree minor changes (of smaller

value)

5. Who bears the cost of preparing change proposal? If the

proposal is declined, is the costs are reimbursed?

6. Procedure for agreeing time impact due to proposed

changes

7. What records to be kept by both parties? (Audit

requirements)

8. Notice requirements

9. A workable and swift dispute resolution mechanism (like

DAB)

10. Most importantly, training of all stakeholders of the

change management procedure

Finally, I will sign off this article with another famous quote

by Richard Hooker who said, “Change is not made without

inconvenience, even from worse to better.” So true in our

industry!

1 The terminology used in the article is based on FIDIC: Client is referred as Employer and Con-

tract administrator or supervising Engineer is referred as Engineer; Thankfully Contractor retains his title in all standard forms of Contract.

2 Conditions of Contract, FIDIC New Suite (1999) First edition

3 Sub-Clause 13.2 of FIDIC 1999

Venkat is an experienced trainer, author and distinguished speaker on various topics related to Contracts and Commercial management.. He has trained more than 600 professionals in the past two years and conducted several

workshops in the GCC region. His papers have been published in leading construction and arbitration journals.Venkat has over 30 years of experience in GCC and India in every aspect of construction and he has worked with

leading consultants and international contractors in the region.Venkat is one of the founding partners of ‘C Cubed Consultants’, a Contracts and claims management consultancy based in UAE. He advises Clients, Contractors on various aspects of contractual matters and helps them to resolve

their disputes in an amicable and practical way.

R Venkat Rakhavan, LLM, B.Eng., C.Eng., MRICS, FCIArb, FCMADirector, C Cubed Consultants Limited, UAE.

71 IIQS - 2015 | 70 | IIQS - 2015

When a party is obliged to make regular payments for a service under a contract, how many non-payments and/or late payments must occur before the victimised party can terminate? What amounts to a repudiatory breach in the context of an ‘innominate term’ to make regular payments? Valilas v Januzaj [2014] EWCA Civ 436 has laid down a marker for how the Court will treat non-payment.

V alilas (“Claimant”) is a dentist practising under oral

agreement since 2007 for the use of premises,

equipment and facilities and in return would pay

Januzaj (“Defendant”) 50 per cent of his receipts. Claimant

received most of his earnings under a contract with the

local health care centre where he received a fixed price per

unit. Payment was made by the local health care centre in

advance in equal monthly instalments (unit did not have to

be spread evenly through the year) but if Claimant did not

achieve the requisite number of units by the end of the year,

he had to refund the overpayment to the local health care

centre.

Claimant was prompt in his payment to the Defendant

from the commencement of Oral Agreement. However, at

a later point of time, the Defendant asked Claimant to sign

the associate agreement, following which the relationship

between them broke down. In addition, Claimant could

not achieve the target units on time. Claimant feared that

the Defendant would not refund his portion of the payment

received from the Cliamant, at the end of the financial year

(31 March 2011), in the event of a short fall in meeting the

required units. Fearing this, Claimant stopped making the

payments from August to September 2010 and later offered

to reconcile the payment at the year-end. However the offer

was rejected by Defendant and expelled the Claimant from

the premises on 11 Nov 2010.

The issue before the court are:

1. Whether Claimant› failure to pay Defendant for the use

of its premises, equipment and staff under an oral

agreement for three months constituted a repudiatory

breach/renunciation of the contract

2. Whether Defendant was deprived of substantially the whole

benefit of the agreement

3. Whether Payment obligation is a innominate / intermediate

term

4. Whether Claimant’ breach went to the root of the contract

5. Whether excluding Claimant from the premises was

wrongful

6. Is there any provision in the Contract to terminate for non-

payment

Decision

The Court of Appeal instantly turned down Defendant›s primary

case on the basis that in accordance with the Contract the

payment should be done on time by the claimant. Taking

into consideration, time of payment is not generally of the

essence1 of a commercial contract unless the parties have

agreed (either expressly or by necessary implication). It

rather continued on the basis that the applicable term was

‹innominate› or ‹intermediate› – other way around, whether

the actual or threatened breach repudiated the contract

based on the nature and effect of that breach.

The delayed payment did not cause any harm to the

Is it possible to Terminate due to Non payment and/or late payments?

defendant. The only likely loss to the Defendant was “the

loss of the use of money in the meantime”. The Breach is

considered Repudiatory only when the breach deprives the

innocent party substantially of the whole benefit2 that it was

supposed to have obtained as per the contract.

Whatever be the reasoning, a breach must go to the root3 of

the contract. In reality, at the offset, the consideration should

be given to the benefit gained by the injured party from the

execution of the Contract, and then one must consider the

effect4 of the breach on the injured party. Although a declared

intention by a party to execute a contract in a manner

substantially inconsistent with his obligations may amount to

a renunciation5 of it.

As per Lord Justice 3, the departure should be evaluated on

the basis that whether it goes to the root of the contract or not.

Though, Lord Justice 2 reads ‘going to the root of the contract’

as entailing “the failure must be compared with the whole of

the consideration of the contract and not just a part of it”, it

seems to be not consistent6.

Lord Justice 1, in a sound disagreement, judged that 3

non-payments, preceding to termination was a repudiatory

breach. His main argument was that Claimant had intentionally

decided to deviate from the contractual arrangement. In the

interim, defendant left the claimant to bear the running cost

of the Practice.

Lord Justice 2 & 3, by contrast, underscored their point that

Claimant’s delayed payment to the Defendant was not a

denial of payment but that it was purely a delayed payment.

The Appeal Court, by a majority of two to one, found that

failure to make payment is not a repudiatory breach. The

Court upheld the decision and dismissed the appeal.

When someone considers signing a contract for work in the

UAE or Qatar and the contract is to be governed by respective

law. Then one has to take notice of the local laws that apply

to this subject.

Remedies Under Civil Code

UAE Civil Code

The UAE Civil Code provides for the possibility of bringing a

contract to an end where its terms are silent on the right to

terminate. The UAE Civil Code does not mention suspension

expressly, but Article 247 does provide some limited comfort,

as it states that a party may refuse to continue its obligations

(i.e. carrying out of the works) if the other party is not performing

its obligations (i.e. payment).

The risk in relying exclusively on Article 247 in suspending work is

that following suspension the owner could look for terminating

the contract on the basis of the contractor ’s breach of

performance. Should a party want to terminate a contract

for breach (in the absence of express contractual terms as

to termination), ordinarily, that party shall file an application

with the local courts for an order granting that entitlement.

Provided the order is granted, a contractor may also be

entitled to damages for the owner ’s breach.

Qatar Civil Code

Multiple remedies exist under Qatar Civil Code for non-

payment. A party may submit an application to a Civil Court

to grant an order for payment of sums due after requesting

the other party to pay the due in not less than five days

73 IIQS - 2015 | 72 | IIQS - 2015

(Article 147 of Law No 13, 1990). If the other party fails to pay,

sums due for works already carried out under a Contract, the

party may Suspend the works unless it is otherwise agreed

between the parties (Article 191) or else, after notifying the

other party, request the Termination of the contract together

with compensation (Article 183(1)). The Court has options to

determine a grace period within which the other party shall

pay such sums (Article 183 (2)).

Author’s View

In reality, after Valilas, especially while assessing repudiation

for the late payment, the court shall draw distinction between

what has to be considered as non-payment and how to treat

the late payment. It is very difficult to show late payments

to be repudiatory in contrast to non-payments. One should

keep in mind that the test for repudiation is on par with

frustration of the contract. For a late payment to qualify as

being repudiatory, it should be severe7 enough to “demolish

the… confidence [of the claimant] in the defendants’ ability

to pay…”.

A failure to make a single progress payment does not

necessarily constitute a repudiatory conduct, although it

may seem so8. On the other hand, a repeated failure to

make payment when it is due may constitute a repudiation9.

Hence, it is critical to determine the reason for the non-

payment.

A small and inadvertent delay can be remedied by the

payment of interest. But where the reason for the non-

payment is either, i.e.:

• (a) wrongful refusal to pay an amount which is

properly due or

• (b) where there is substantial and seemingly

terminal financial incapability,

then the non-payment may be categorised as repudiatory.

In the above case, it was not an event of payments being

missed by mistake or as a result of some temporary or

unexpected shortage of funds. However, it is unfortunate

that the concurring judges paid less importance to the

fact that Claimant deliberately declared that he would

not comply with the Contract for an indefinite period, the

importance is Defendant would be paid eventually at the

end of the period and that there was no evidence that the

delay would cause serious damage. Hence assessment

of Lord Justice 2 & 3 should be treated as more rational.

There are opportunities and challenges for contractors bidding for projects in Qatar and the UAE. We have sought to identify some of the key risks typically found in Contracts in Qatar and the UAE by outlining the ‘Golden Rules’ of bidding to assist contractors in their Bid preparations.

The FIDIC suite of Contracts is used throughout the

world and these are the most commonly used forms

in Qatar and the UAE. In our Golden Rules we refer

to specific Clause numbering used in the FIDIC suite to help

identify the risks. If, however, FIDIC is not the form of Contract

to be used on a particular Bid, these principles would equally

apply.

RULE 1 – TENDER BONDS

1.1 This type of Bonds is of an ‹on demand› nature and is

typically 10% of the Tender Sum. Any Tender submitted

without a Tender Bond is likely to be excluded, leading to

a disqualified bid.

1.2 These Bonds will need to be in place for the tender period,

with a provision for extension upon mutual agreement,

until such time as the selected bidder has entered into

the Contract and provided the Performance Security to

the procuring entity.

1.3 The procuring entity will return the Tender Bonds to the

unsuccessful tenderers.

1.4 Contractors should carefully review the terms of the

Request for Proposal (RfP), as the RfP frequently states the

conditions for making a call on the Tender Bond, the form

of the Bond and the amount of the Bond.

1.5 Contractors should only submit the Bids if they are

comfortable to sign up to the Contract if they are chosen

as the selected Tenderer and Awarded the Contract, or

they face the risk of having the Tender Bond called by the

procuring entity.

RULE 2 – SITE RISKS / DATA

2.1 We frequently see responsibility for interpreting and

verifying the accuracy of the Site data being passed

to contractors. Clause 4.12 deals with the allocation of

physical and ground condition risk.

2.2 In Clause 4.12 of the FIDIC Red Book or Yellow Book, the

Contractor is entitled to an Extension of Time and recovery

of cost if it encounters adverse physical conditions that

were not reasonably foreseeable by an experienced

Contractor by the date of submission of the Tender.

2.3 In Clause 4.12 of the FIDIC Silver Book, a Contractor

accepts total responsibility for foreseeing all difficulties

and costs of successfully completing the Works. These

difficulties include all adverse physical or ground

conditions, whether foreseeable or not.

2.4 In Qatar and the UAE we frequently see the FIDIC Silver

Book approach being adopted by procuring entities in

their amended FIDIC Red Book and Yellow Book forms.

This approach is often perceived by contractors as an

unfair allocation of risk, particularly if the Employer made

insufficient data available about ground conditions

during the Tender stage, or if insufficient time was given

to the bidders to verify and carry out their own due

diligence.

2.5 Contractors will have to make a decision on whether

they can Price and Programme the ground condition

risk under such circumstance, if not they can seek any

amendments to the Conditions of Contract to deal with

such risk.

RULE 3 – PENALTIES / LIQUIDATED DAMAGES

3.1 The Qatar and the UAE Civil Codes do not distinguish

between Penalties and Liquidated Damages. Quite often

contracts refer to Penalties instead of Delay Damages or

Liquidated Damages for delay.

3.2 Liquidated Damages provisions should reflect the

anticipated loss likely to be suffered by the Party which

claims compensation. If the amount of Liquidated

Damages is exaggerated there is a risk the amount of

liquidated damages could be challenged in the Courts

and be held unenforceable.

3.3 In the UAE, Courts can increase or decrease the rate of the

The ‘Golden Rules’Of Bidding For Projects In Qatar And The UAE

Mr. Rajeshkumar has Good experience on Major High Rise Buildings and Civil Engineering & Infrastructure

Projects. His experience spans from India to Dubai to Qatar, specialized in Quantity Surveying, Commercial and

Contract Management. He is Qualified with Civil Engineering from India and he has completed. MSc Construction

Law and Practice from Salford University, Uk. He is a Chartered Quantity Surveyor and holding membership from

various prestigious institute such as Chartered Institute of Arbitrators, Institution of Civil Engineering Surveyors,

Australian Institute of Quantity Surveyors, Incorporated Member of Chartered Institute of Building. Certified Cost

Professional too

Mr. Rajeshkumar

1

per Lord Justice Underhill at p. 29

2 per Diplock L.J. in Hongkong Fir Shipping v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26

3 per Lord Wilberforce in The Nanfri [1979] AC 757

4 Telford Homes v Ampurius Nu Homes [2013] EWCA Civ 577

5 Ross T. Smyth & Co. v Bailey, Son & Co [1940] 3 All E.R 60

6 White Knight Laundry & Cleaners Services Ltd v Sportscar Workshop

& Ors (1989 WL 1721062)

7 Decro-Wall, per Salmon L.J. at p. 369F

8 Tombs v Wilson Connolly [2005] 98 Con LR 44 at 62

9 Alan Auld Associates Ltd v Rick Pollard Associates [2008] BLR 419

75 IIQS - 2015 | 74 | IIQS - 2015

Liquidated Damages to reflect the actual loss suffered

by a party. Under Qatar law, the Qatar Courts can only

reduce the amount of Liquidated Damages, and not

increase it unless the party responsible for the Liquidated

Damages committed fraud or gross negligence. Any

term in the Contract which contravenes these principles

will be considered void under UAE and Qatar Law.

RULE 4 – DECENNIAL LIABILITY

4.1 The concept of Decennial Liability has its origins in the

French Civil Code. It provides a ten year strict liability

guarantee, which protects building owners if there is

total or partial collapse. As liability is strict, the building

owner does not have to prove breach of Contract or

negligence on the part of the Contractor in order to

succeed in its claim.

4.2 Under Qatar and UAE Law, Decennial Liability may apply

even if there has been no collapse of the building. A

defect which threatens the safety and the stability of a

building is enough to trigger this type of liability. A defect

might arise as a result of using defective materials,

wrong determination of the building base, or any other

error in the construction of the building or its design.

4.3 Whilst Decennial Liability benefits building owners, it

poses a risk to international contractors who have not

previously done business in Civil Code jurisdictions.

Professional Indemnity Insurance is unlikely to cover this

type of liability. Any term in the Contract which seeks

to exempt or limit a contractor›s liability is void and

enforceable.

RULE 5 – TIME RELATED CLAIMS

5.1 As there is no concept of the ‹prevention principle› or

‹time at large› under Qatar and UAE Law, contractors

should carefully check the grounds for making Extensions

of Time claims under their Contracts.

5.2 Clause 8.4 deals with the grounds for making an

Extension of Time and the causes of delay typically

found in Clause 8.4 are often heavily amended to

transfer the risk of certain events from the Employer to

the Contractor.

5.3 Clause 8.5 which deals with ‹Delays Caused by

Authorities› is also frequently amended so the risk of

any delay or disruption caused by Authorities is carried

by the Contractor. This may be a significant risk if the

Contractor is responsible for procuring all of the permits

and approvals from the Authorities before the works

proceed on site. A bidding Contractor should identify

which party is responsible for obtaining permits and

approvals for the works in order to assess this risk.

RULE 6 – COST RELATED CLAIMS

6.1 Contractors should also carefully check the grounds

for making claims for additional loss and expense and

profit under their contracts. We frequently see these

provisions deleted which makes it difficult for claims

to be made, especially where contractors have been

delayed for reasons beyond their control.

6.2 The ownership of ‹interface› and ‹integration› risk,

and which party is responsible for coordinating and

managing the interfaces between multiple contractors

working on the same site is a constant challenge for

contractors working in Qatar and the UAE.

6.3 Clause 4.6 which deals with ‹Co-operation› should be

carefully reviewed to see which party is responsible for

the additional cost if the Main Contractor is delayed

by other contractors engaged by the Employer on the

same Site, including any loss or damage to the Works by

other contractors engaged by the Employer.

RULE 7 – ChANGE IN LAW

7.1 In any developing country, the Laws are subject to

change. This is no different in Qatar and the UAE. The

Laws in Qatar and the UAE are published in Arabic and

there are no official English translations available.

7.2 Contractors should carefully check their Contracts to

understand if the risk for changes in legislation sits with

the Employer or is a risk which is to be carried by the

Contractor.

7.3 These Clauses are typically amended. Contractors are

advised to review the change in law clauses in their

Contracts to see if they can make a claim for additional

time and money for dealing with changes to the Laws

after the submission of their Tenders, or if there are any

constraints to making a claim if there is a change in law.

RULE 8 – TIME BAR CLAUSES

8.1 An underlying feature of the Qatar and UAE Civil

Codes is that contracting parties may not agree upon

a prescription period different from that prescribed by

Law. Denial of access to justice is also prohibited under

the general principles of Qatar and UAE Law.

8.2 It is arguable that the time bar period of 28 days in the

Clause 20.1 contravenes the mandatory provisions of

the Qatar and UAE Civil Codes. However, the alternative

argument which supports the upholding of the time

bar period is that by signing a Contract the parties are

waiving their underlying rights and not waiving their

entitlements to claim those rights.

8.3 The enforceability of a time bar clause will depend on

its own set of facts, together with the cause of the event

giving rise to the claim and when the notice was actually

served by the Contractor under the Contract.

8.4 However, we strongly recommend that contractors

comply with the strict notice periods under their contracts

as there is no certainty that arguments under the Civil

Code will succeed. The Courts or a Tribunal may uphold

a time bar clause if a Contractor has simply ignored the

notice periods under the Contract.

RULE 9 – LIMITATION OF LIABILITY

9.1 Under Qatari and UAE Law, a party cannot be discharged

from liability arising from fraud, wilful misconduct,

recklessness, gross negligence or decennial liability.

Damages for breach of Contract may often include claims

for loss of profit.

9.2 Legal principles which apply in a common law jurisdiction do

not necessarily apply in Qatar and the UAE. Qatar and UAE

are Civil Law jurisdictions. An example of this is the distinction

between direct and indirect losses which apply in English

Law. Under Qatar and UAE Law indirect and consequential

loss are not recoverable in any circumstances.

9.3 Despite this, Clause 17.6 (which deals with the limitation

of liability) is likely to include reference to indirect or

consequential loss. However, this should not cause major

concerns for contractors.

9.4 Contractors are advised to review Clause 17.6 to see if loss

of profit claims are excluded, and which exceptions fall

outside their cap on liability.

9.5 It is common in Qatar and the UAE for contractors to limit

their liability for delay damages to 10% of the Contract Price

with an overall cap on liability at 100% of the Contract Price,

subject to certain matters which cannot be excluded under

Qatar and UAE Law.

9.6 The statutory limitation of liability for commercial claims

is, typically, 10 years, and the parties cannot reduce this

liability period in the Contract. Contractors should carefully

review their contracts to ensure their liabilities in the event of

a breach of Contract are adequately capped to the extent

permitted under Qatar and UAE Law.

RULE 10 - DISPUTE RESOLUTION

10.1 The procedure for dispute resolution is always subject to

amendment, with frequent deletion of Dispute Adjudication

Board provisions, which are rarely used in Qatar and the UAE.

10.2 Certain government contracts select court proceedings

in place of arbitration. In those contracts which do

select arbitration, contractors should carefully review the

arbitration provisions to see if there are restrictions on when

the Contractor may commence proceedings.

10.3 We typically see provisions which state the Contractor

may not commence arbitration until the Works are taken

over by the employer. This may cause cash-flow issue for

contractors if they cannot bring a dispute at any time for

non-payment claims, especially if there is a dispute on the

value of a significant variation. This may also prevent the

Contractor commencing an arbitration if the dispute in

question relates to a failure by the Engineer to issue a Taking

Over Certificate for the Works or the rights of the Parties in

relation to a termination which took place prior to the Works

being taken over by the Employer.

10.4 The arbitration agreement in the Contract should always

identify the seat or legal place of the arbitration, the

governing law and the venue for hearings. This can cause

logistical difficulties and challenges if the venue is in a

different country to where the documents and witnesses

are located.

10.5 Contractors should review the terms of the arbitration

agreement to ensure the seat or legal place, the governing

law and the venue is identified in the arbitration agreement

to avoid any uncertainty. If these are unreasonable the

Contractor should consider raising this as an issue at Tender

stage.

10.6 Contractors should also carefully review their contracts

to see that the arbitral proceedings are to be conducted

in English, especially if the contracts and the technical

specifications are written in English. This is to avoid the

parties having to translate the Contract documents into a

different language as this is likely to prove costly and time

consuming and delay the final resolution of the dispute.

Gabriel OlufemiSolicitor

Paul PrescottLegal Director

77 IIQS - 2015 | 76 | IIQS - 2015

Design–build is a project delivery process used in the construction industry. It is a method to deliver a project in which the design and construction services are contracted to a single entity known as the design–builder or design–build contractor.

The traditional approach is the Employer (or client)

appoints an Engineer or Architect to design the

proposed project and then appoints a Contractor

for its construction, commonly known as “design–bid–build”

process. The design–build procurement route changes the

traditional approach. It provides a solution for the client›s desire

for a single point of responsibility in an attempt to reduce risks

and overall costs. It is now commonly used in many countries.

From the Client’s perspective, the design-build process

helps him to deal with one party and also it reduces the

overall project delivery period by overlapping the design

delivery process with that of construction. However, from

Contractor ’s perspective, it imposes increased contractual

obligations encompassing both design and construction

process. Therefore the contractor needs to identify a clear risk/

mitigation plan to meet those obligations.

As part of the invitation to tender for design-build contract,

the Employer will issue a document called the “Employer’s

Requirements”, which describes in reasonable details

the Employer ’s requirements with regards to the purpose,

design, scope, other technical criteria for the works and

other requirements that he consider necessary for design,

construction and maintenance of the works. The level of detail in

the employer›s requirements and the extent of design required

from the contractor is variable. Employer ’s requirements can

range from a very simple scope and specification to a fully

developed performance specification and concept design.

As an example, the employer ’s requirements may describe the

scope of works by stating “design and construct 200 number

bed space hospital with all modern facilities” or it may provide

further details such as size of the building, number of floors,

finishes including the conceptual structural and architectural

details.

As part of the tender submission, the contractor is required

to submit documents titled the “Contractor’s Proposal”. This

document sets out the framework for his proposals for designing

and constructing the works. For the sake of clarity and to avoid

any potential disputes, it is suggested that, the Contractor ’s

Proposal should properly clarify what has been considered/

allowed against the all key employer ’s requirements.

The format of Contractor’s proposal should be described

in the Employer›s requirement›s, but it might include:

concept drawings, Specifications, Schedules, Statements,

details of inconsistencies between the contractor›s proposals and

the Employer›s requirements, any proposed provisional

sums, proposed Sub-Contractors, details of insurances, an

initial construction phase plan, etc. Other documents such

as the tender price and its breakdown, tentative programme,

method statement and all other documents shall be submitted

as part of the overall tender submission.

Following points should be considered or implemented in order

to effectively deal with a Design and Build project.

1. Review the quality of the employer’s requirements and decide

one of the below suggested tender process:

a. A single-stage tender process – This is suitable where

the information presented in the requirements is

sufficiently well developed for the contractor to be

able to calculate a realistic price. This can be the case

where a concept design has already been prepared

by consultants working for the client, or if the proposed

work is very straight-forward. In such cases, much

of the design work might have been carried out by

the tenderer during the tender process and a firm price

can be submitted

a. A two-stage tender process – This is suitable where

the employer›s requirements are not sufficiently well

developed to calculate a realistic price. In this case,

include a fee for designing the building along with

a schedule of rates that can be used to establish the

construction price for the second-stage tender.

2. Seek clarification on any ambiguities within the Employer’

Requirements.

3. Caution must be exercised on the open-ended or

ambiguous requirements, such as a) design must be to the

best international standards b) specification of the materials

shall be to best of its kind c) some requirements referred

as paramount importance. These subjective requirements

could be matter of dispute unless properly clarified.

4. As far as possible, the breakdown of the tender price

should separately show cost of all major construction

works, equipment, and provision for maintenance of the

completed works, general items and provisional sums.

5. Specification and quality of the materials considered in

the tender must be properly described.

6. A compliance statement against all key employer’s

requirements must be included with clarity on non-

compliance (s), if any.

7. If the contractor does not have in-house capabilities for

the specialist works (including major sub-contract works), it is

recommended to enter into a pre-bid agreements with all

specialist contractors encompassing all relevant obligations

and risks.

8. In some instances, it is recommended to include

responsibility for preparation of the shop drawings within

the scope of the Main design engineer / architect.

9. Ensure synergy between the, Employer, contractor,

design team, and subcontractors. All members should be

experienced to think «outside the box.» Most importantly,

they must be capable of-coming up with «win-win’

solutions.

10.Ensure both technical and commercial team attends

the design review meeting in order to identify and to

eliminate unrecoverable costs as far as possible. Minimize

additional cost associated with design development.

11. Seek clarification on Fitness for purpose’ obligation

and avoid taking this obligation as far as possible.

12. Once the design and its associated documents

are accepted and approved by the Employer, identify

all changes initiated by the Employer. In order to

deal with this, maintain separate schedule for every

document through which the Employer or his agents

would have suggested the changes. These changes

must be notified as and when it occurs.

Whilst the design-build contract may have several

advantages, it does impose increased obligations

compared to the traditional design–bid–build” on to

the Contractor. However, Go for it, if you understand its

challenges.

“design and construct 200 number bed space hospital with all modern facilities”

Syed Aslam is a Quantity Surveyor having total 26 years’ experience in the construction and engineering sectors of which 23 years has been in the UAE with Dutco Balfour Beatty LLC as Commercial Manager for the Civil and Infrastructure division. His experience includes Tender Preparation, Contractual Claims,

Variation Accounts, all Measurements and Commercial administration on a variety of major projects encompassing Major Civil Construction Projects, Services Installations and Building Construction. As a

volunteer, to fulfill his corporate social responsibilities, Syed Aslam is an active member of Chartered Institution of Civil Engineering Surveyors (ICES) and Indian Institute of Quantity Surveyors (IIQS).

Syed Aslam B.E Civil, MIIQS, MinstCES

Design and Build ProjectGo for it, if you understand its challenges

79 IIQS - 2015 | 78 | IIQS - 2015

Culture in the construction industry is a shared understanding about what is expected to be done by all Parties. The Cultural practices that are prevalent and their objectives must be clearly understood in order to avoid disputes between the Parties involved in a Project. The understanding of cultural behavior, belief system and social order, which encompass the society and traditions, have a definite influence on the behavior of the Project’s stakeholders.

ThE IMPACT OF CULTURAL FACTORS

The growth of the construction industry has led to many

international Contracting Companies and Design Offices,

establishing their offices across various Geographic locations.

Some of such firms appoint a local Project Manager to

run the Project and some prefer to have their own Project

Managers that are familiar with the company rules, policies

and procedures. The foreign Project Manager and local

Project Manager do not have similar way of thinking but both

have the same target (which is handing-over the Project on

time). Since they don›t have the same background of cultural

factors, they have the differences in behavior, belief, attitude

and values, all of which are reflected in as to how they run their

Project. The Project Manager needs to be aware as to how he/

she should deal with individuals such as the Client, Consultant,

Contractor, Local Authorities and the rest of the Organization

as these members might be from the different cultures. He/

she should also understand and develop communication

skills, leadership skills, interpersonal skills, flexibility and the

technological skills in order to overcome all the problems.

Project Managers who are unable to deal effectively with the

society or environment, where they are working, should be

aware of the implications that arise due to cultural differences

as well as due to local legislation. They should be aware of

the essential aspects of management and execution skills to

avoid the Project’s progress delay.

Historically, many disputes and contractual problems remain

even after handing-over the Projects because of not having

considered the cultural factors in the design or execution,

which affects the progress of the Project. Therefore, it is very

important for each and every Engineer who is working in

private and government sector, as Client›s Representative,

Consultant or a Contractor, to concentrate and understand

the following key influences:

1. Law of the Country: it is essential to consider the religion

as an important criterion in Middle East, because the law

is predominantly based on religion (Shariat Law). In some

conflicts during the execution, the Project Manager and

team may not take action or may be limited due to the

religious factors as this can affect their career or future in

the Organization. Sometimes, conflicts may not manifest

as problem until raised to top management. These will be

discovered at a later stage affecting the handing-over of

the Project.

2. Mixing of Nationalities: The workforce employed on a

Project constitutes most probably of mixed nationalities.

This means a lot of traditions, rules, habits linked directly

to the religion such as regular holidays and festivals for

different traditions of other in the workforce. This cultural

mix will affect the duration and time of the execution of

the Project.

We have to note that once it comes to religious holidays

of multi-national people, the Project Manager cannot

force a group to work since the government rules respect

other religious traditions.

3. Procedures and Formalities: These depend on the rules

and regulations, which are derived from the Country›s Law

and these go through a systematic procedure. During the

design or execution, some points have to be rectified or

verified through the authorities for the proposed Project;

these points have to go through formalities which take a

lot of time because of the designated procedures. If the

procedures and formalities are not complied with or are

not clear, it has a negative time effect on the Project.

4. Awareness of the Local Language: The contract

language, most of the Clients, Consultants and Contractors

prefer to speak and write in their own language and they

don›t like to appoint or employ qualified interpreters which

affect directly the communication, progress and quality

of work. Using the Country›s language in the contract

documents is an important aspect and most construction

Organizations had not resolved this problem.

Many cultural factors have to be considered by the Project

Managers and team members. It is a big challenge but the

main challenge is to cooperate and understand the rules of the

environment and place of work to enable them to understand

as to how to effectively deal with the work force in a Project.

Meantime, understanding the reason behind each factor and

from where it originates as well as understanding the local

language will enable them to implement their contractual

obligations. It is very important to understand clearly the

history, topography, religion, language and tradition of the

Parties who are involved in the Project whether they are Client,

Consultant and Contractor. The culture in the construction

industry is a shared understanding about what is expected

to be done, by all Parties and the cultural objectives must be

very clear to avoid any disputes between the Parties involved.

The understanding of culture in this sense is the ideology, belief

system, norms or behaviors and social order which compose

the society and traditions which could be reflected on the

behavior of the Project›s stakeholders.

The Project Manager and team must clearly be prepared for

understanding the following points to avoid stress and tension

and to control the cultural aspects which can be ambiguous

during the design and construction of the Project:

- Learn local communication.

- Ensure judicious mix of locals and expats.

- Be creative and experimental within limits.

- Be culturally sensitive.

- Understand the complexities of the work force.

- Be more realistic in expectations.

- Be curious about the culture.

- Be friendly and avoid nervousness.

Akram SaadFIDIC, SCL, DRBF & The AACE.

RICS, CIOB and APM.

The Impact of Cultural Factors

Dr. Akram Saad is a Civil Engineer holding Doctorate in Construction and Project Management from Paramount California University, USA and various other professional qualifications. As a Chartered member of Cost

Professional’s, Arbitrator’s & Surveyor’s institutes and PMI, he is actively involved into construction related research. He has Over 30 years’ experience in Engineering, Project Management, Technical Presentations and

approved instructor by PMI Gulf Chapter for PMP Exam preparation courses and Proctor for AACEI. He is Board Member of “CASA”, Chinese American Scholar Association; Member of International who’s is Who Professional

81 IIQS - 2015 |

ADsOn any mega infrastructure project, developing a ‘contract procurement strategy’ plays a crucial role in the success of the project. The contract procurement strategy should reflect the project objective of the overall development as reflected in the client brief and these must be reflected in the Contract Documents.

Developing a Contract Procurements Strategy for Mega Infrastructure Projects

One of the main function of contracts administrators is

to achieve the client’s objective in most economical

terms providing best value for the development. In

order to achieve these, the following are the stages that form

part of the Contract Procurement Strategy.

1.0 Developing a Contract Plan

The Contract plan determines the number of contracts the

project will be divided into. The basic consideration should be

the effect of division of contract on the management effort that

is required to manage these contracts.

• Higher no of contracts will lead to interfacing issues between

Package Contractors and between Infra Contractors and

other Contractors working in the same area.

• Lower no of contracts will increase the Clients risk exposure

Hence the number of contracts the project is to be divided is

based on certain guiding principles namely:

a. Contract Size: The size of each contract shall be such

that these are manageable by Contractors in terms of

Time duration and availability resources (manpower and

equipments).

b. Time Duration: Time duration should allow for obtaining

construction permits, design review, mobilizing resources

/ Sub-Contractors and obtaining necessary approvals

from authorities. These should also take into account local

practices, holidays and summer break periods.

c. Type of Contract: Depending on the type of works, contract

can be separated Example: 132 kVA substation and

sewerage treatment plant can be contracted as Design and

Build as a separate contract. While the main infrastructure

package are normally tendered as re-measurable Contract.

d. Contract size should be within the capacity of sufficient

contractors to allow competitive tendering Example AED

400-500 Million or a monthly average billing of AED 20-25 M

is considered as manageable for large contractors.

e. Time constraints (132 kV substation or sewerage treatment

plant have longer gestation period) and capacity restrictions

required separation of the contracts.

2.0 Process of Tendering

Selecting the process of tendering depends on the level of

competition required and client’s policies existing regarding

procurement.

a. Open tendering: This form of tendering is highly risky

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for client on mega infrastructure projects as contract

will be awarded to the lowest tenderer, who may not

have the capacity or required expertise to carry out

the works.

b. Selective tendering: Selective tendering in one or two

stages with a limited number of organisation who are

already on vendor list or prequalified will reduce the

client’s risk even if awarded to lowest bidder.

c. Negotiated tendering: This form of tendering based

on Contractor ’s reputation or experience on previous

projects is not suitable for mega infrastructure projects.

This process is time consuming due to prolonged

negotiations and client may later realise that value

for money is not achieved due to lack of competition.

3.0 Tendering process is usually carried out in three key stages,

this helps to minimize the risks to the project.

3.1: Pre-qualification

Pre-qualification will eliminate any risks associated with suitably

of selected bidders. The following criteria is generally used for

pre-qualification.

a. Financial

• Evaluation of Financial Standing and records (Financial

statement Audited for last three years)

• Current Financial exposure

• History of Financial disputes

b. Technical

• Technical and management structure including

adequacy of

• Sub-Contractors to relate to specific project

• Current commitment of bidder

• Current capacity and ability to undertake the size of

project

• Ability to deliver the quality required for the project

• Performance on previous project

• Competence and resources to comply with statutory

health and safety requirements

• Approach to quality assurance system

c. Commercial

• Contracting strategy (in-house, sub-contract, JV, etc.)

• Risk management techniques

• Claims and variation track record

• Flexibility in commercial issues

• Dispute resolution track record

3.2: Tender Documentation

Tender documentation will comprise different volumes.

A detailed tender documentation will eliminate risks related

to missing information or incomplete information. Hence

sufficient time should be given for preparation of tenders.

Information proided should be sufficient enough to enable

the pricing of tenders. Suites of contracts and standard un-

amended forms of contract from recognized bodies should

preferably be used.

3.3: Bid Evaluation

A detailed bid evaluation will be carried out for the following

criteria considering the complexity of tender.

a. Technical Evaluation

• Method statement for execution the works

• Tender programme and its compliance with

project milestone, duration and logic used

• Proposed management team and their relevant

experience

• Proposed deployment of plant and resources

• Availability of resources (in-house or sub-

contracted) or through JV

• Material proposed and their Compliance with

specifications

• Proposed suppliers

• Percentage of local resources used for execution

of work

• Health and safety compliance

• Quality standards that will be adopted in project

delivery

• Compliance with manuals, training ,factory visits,

sample testing, etc.

• Warranties

b. Commercial

• Compliance with the invitation to tender

• Acceptance of tendering terms and conditions

• Compliance with contract period

• Compliance with payment terms

• Length of product validity and spares availability

c. Financial Evaluation

• Evaluation of priced rates

• Mathematical errors, carryover errors

• Review of rates against pre-tender estimates

• Identifying rates which are front loaded

• Rates if quoted in foreign currency should be adjusted

• Risk analysis and financial appraisal of innovative items

• Cost of variation / additions

• Cost of service, spares and maintenance cost

The detailed financial evaluation of the bids are carried out by

comparing the rates submitted by tenderers. Arithmetic check

carried out rate by rate will identify discrepancies in each bid

with Clients estimated rates.

4.0 Selecting the Contractors

Based on the above bid evaluation the most suitable

Contractor is selected giving due weightage to each of the

bid evaluation criteria.

Summary

When developing a contract procurement strategy, its

important that the client’s objectives are communicated

appropriately via the tender documents or through the post

tender negotiation meetings and reflected in the Contract

documents.

The terms of contracts shall be selected logically depending

on the nature of work, its certainty, urgency and requirement

of all parties. If the projects risks, project objectives are not

covered, then clients spend enormous amount of time, money

and resources to create value. Hence it can be concluded

that an appropriate contract procurement strategy will help in

creating value for the project.

Mr. Sajeeth Sidharthan is a Member (MRICS) of Royal Institution of Chartered Surveyors, Associate Member (MCIArb) of Chartered Institute of Arbitrators, Member of Society of Engineers(MSOE)

and an Alumni of Manchester Business School and MSRIT BangaloreSajeeth has extensive experience in construction, consultancy and cost management of Large Scale

development and been in senior positions with both Contracting and Consulting Firms. Currently running his own Consultancy Firm advises leading Consultants/Clients on projects with Meydan, Musanada, RTA and TECOM Investments. He currently advises clients on selection of Contracts, Commercial

Negotiation, Cost Control, Procurement Planning and Claim Avoidance strategy in UAE.

Sajeeth SidharthanMRICS, MCIArb, MSOE

85 IIQS - 2015 | 84 | IIQS - 2015

Building Information Modelling (BIM) is a recent technological advancement that has attracted considerable amount of attention in the construction industry worldwide. The UK government has recognised this and has mandated that all public sector projects to have BIM ready by 2016 (level 2). The EU made BIM a mandate in January 2014 and BIM is mandatory for projects with a gross floor area of more than 5000sq.m in Singapore. The aforementioned is just to name a few, alternatively named BIM technology, Virtual Design and Construction is in use in India and USA.

BIM AND The Qs Profession

In line with the global movement of BIM, in November

2013, the Dubai Municipality decided to make BIM

mandatory from 1st January 2014 for projects that fall

into the following criteria:

• All buildings delivered by/through an international

consultant.

• For architectural and M&E works for all buildings 40

stories or higher.

• All hospitals, universities and other similarly specialised

buildings.

• Facilities/buildings that are 28,000 sq. m or larger.

The Middle East is currently lagging behind in the adoption

of BIM technology in comparison with Europe, USA etc.

Presently in Dubai the focus is on the design and build phase

of the project, therefore, currently the primary use of BIM is to

coordinate design and communication between the various

parties involved in the process.

BIM has three different levels of sophistication wherein the

concepts of 4D, 5D and 6D are used to indicate the elements

and benefits of increasingly complex BIM models which in

brief as follows:

Level 0 - Unmanaged CAD, in 2D, with paper data exchange.

Level 1 - Managed CAD in 2D or 3D format. Data structure

and formats are standardised. There is no integration

of commercial data at this stage.

Level 2 - Managed 3D with data attached by the different

disciplines. However commercial data is managed

by ERP software and integration is achieved

by third party software. At this stage 3D has the

ability for model walkthroughs, clash detection,

project visualisation, virtual mock up models and

prefabrication information.

Level 3 - This level of BIM will utilise 4D construction sequencing

(construction planning and management and

schedule visualisation), 5D cost information (quantity

take off and real time cost estimating) and 6D project

lifecycle management information.

Due to the lag in the implementation of BIM in Dubai

in comparison to Uk, USA etc., the professions in the

construction industry and contractors are also lagging behind.

Unfortunately, quantity surveyors have been found to be slow

in the acceptance of BIM as a potential tool for project cost

management partly because of the lack of awareness of

the BIM’s potential in the QS profession. However, this is not

surprising when the primary drive with BIM is related to the

architectural profession.

Whilst in some quarters of the QS profession there is a thought

that BIM is a threat to the QS profession, this has been proven

not to be the case in the report ‘How can BIM support the

New Rules of Measurement’ published by the RICS on 31st

January 2014 in conjunction with the University of Salford.

The report requires the QS to gain a greater understanding of

BIM thereby using BIM to significantly improve the efficiency

and accuracy of quantity surveying functions. Whilst there

are provisions to automate certain QS functions, BIM by all

means does not give you cost estimates at the press of a

button.

In the paper titled ‘The Relationship of Building Information

Modeling (BIM) Capability in Quantity Surveying Practice and

Project Performance’ by P. F. Wong, H Salleh and F. A. Rahim

published in 2014, BIM capabilities in quantity surveying

practices is defined as follows:

1.Cost appraisal can be prepared quickly at the feasibility

stage.

2.Preliminary cost plan can be prepared by extracting

quantities directly from the model.

3.Easily update cost plans with more detail as design is

developed.

4.Easily generate accurate cost estimates for various design

alternatives.

5.Design changes reflected consistently in all drawing views.

6.Cost implication of design changes can be generated

easily without manually re-measurement.

7.lash detection reduces design errors and cost estimate

revisions.

8.Cost checking performs quickly to ensure all items are

captured.

9.Improved visualization for better understanding of designs.

10.Automatically quantify for BOQ preparation.

11.Intelligent information management system allows data to

be stored in a central coordinated model.

It is evident that BIM still requires a lot of collaborative work

between the QS and Architect to ensure that the correct

coding, zoning etc., is used. Considering that the majority of

time of the QS function is based around quantification, there

is no doubt that BIM technology offers a solution to simplify

the traditional methods of quantity take off which is inefficient,

time-consuming, and subject to errors. Numerous software

solutions are available for QS’s to speed up the extraction of

quantities from a BIM model and use the same for developing

the BOQ or a detailed cost plan. This is on the assumption

that all the information the QS requires is available directly

from the BIM. This is unlikely and a certain amount of work will

have to be done manually. It is still necessary to check that

all components are captured and measured in accordance

with the standard method of measurement. The final cost

estimate will require the input of a good QS to ensure that

the estimate is robust and up to date with the current market

trends.

BIM will assist in making QS functions much more efficient and

streamlined which is much needed considering that the pre

contract functions of a QS is at the tail end of each stage (e.g.

concept design stage, schematic design stage etc.). When

delays occur to the design, the period allowed for the QS to

complete his works is reduced in order to recover the project

programme. The consequences of the aforementioned

sometimes results in a decrease in the quality of the work

produced and subsequently causes dissatisfaction with

Lead Consultants and Clients. BIM has the potential to bring

in greater efficiency in the work undertaken by the QS and

improve the overall quality of cost estimates.

Level 3 BIM is some years away from full implementation in the

Uk (who are currently at the forefront of the technology drive)

and even further away in Dubai. However this should not stop

the QS profession from adapting to the new technology, gain

a greater understanding of the potential benefits of BIM to the

QS functions thereby taking on board BIM to the level of the

other professions in the construction industry.

Sunil Sukumaran is the Managing Director of Hepher Quantity Surveying who has 30 years of practical experience in Pre & Post Contract Works working with Contractors and Consultants and has been

working in the UAE for the past 18 years. He is a Chartered QS and PM and an Associate of the CIArb.

Sunil Sukumaran

87 IIQS - 2015 | 86 | IIQS - 2015

It is worth reminding ourselves that the Infrastructure Conditions of Contract (ICC) have recently been updated with the issue of the With Quantities Form November 2014 Edition. It is likely the other contracts in the ICC suite will be updated shortly.

Infrastructure Conditions Of Contract (ICC) With Quantities Form November 2014 Edition

This news may be of particular interest to governmental

procurers and private developers operating in the

international construction market, who frequently use

the FIDIC Conditions of Contract for Construction for Building

and Engineering Works Designed by the Employer (commonly

known as the Red FIDIC Book).

We highlight below some of the key features from the recent

ICC form which may make it an attractive alternative form for

international infrastructure projects.

1. International Application

First, the ICC form has been tailored to the international

market as the parties are free to decide the governing law

and the contract language that will apply to the contract. This

information may be agreed between the parties and included

in the appendix to the contract. The ICC form allows the

parties to refer any dispute to arbitration which is the method

of dispute resolution frequently used in the international

construction market.

2. Payment

The ICC form uses the Bill of Quantities as the pricing document.

The parties may choose if the works are to be undertaken on

a fixed lump sum basis or alternatively, the works may be

remeasured.

The parties are also free to choose the method of measurement

to apply by identifying the method of measurement in the

appendix to the contract. If they do not include a method of

measurement in the appendix, CESMM (4th Edition) will apply

by default as stated under Clause 11.1.

3. Design

Although the ICC form lends itself to the traditional method of

procurement, where the employer is responsible for designing

the whole of the permanent works, the ICC form may also be

used if the contractor is designing any part of the permanent

works.

The ICC form anticipates that for some projects the parties

may wish for the contractor to have some design responsibility

for part of the permanent works. Drafting is included at Clauses

4.8, 6.3 and 6.4 to allow for this. Employers, however, may wish

to review these clauses to ensure that they adequately reflect

their requirements.

4. Building Information Modelling

The ICC form makes specific reference to Building Information

Modelling (BIM) and allows the parties to agree on the BIM

Protocol that will apply.

If the parties wish to use BIM on their project, the parties are to

select and state in the appendix to the contract the protocol

that will apply and any supporting requirements. This will

include any IT software and associated systems which need

to be included in the Information Protocol for the parties to

exchange the updated BIM models.

However, the parties may wish to supplement the existing

copyright clause at Clause 4.11 by including drafting to allow

the parties to licence to each other the BIM models. The

current drafting at Clause 4.11 is limited to copying and using

the data which may be viewed as too narrow for the purposes

of using BIM on a project.

5. Risks

The ICC form is innovative regarding the allocation and

apportionment of risk. The ICC form divides risks into three

categories being the ‘Excepted Risks’, the ‘Employer ’s Risks’

and the ‘Shared Risks’. These are covered under Clause 8 of

the ICC form.

The Excepted Risks are dealt with under Clauses 8.2, 8.3 and

8.4 and are similar to how Employer ’s Risks are dealt with

under Clauses 17.2, 17.3 and 17.4 of the Red FIDIC Book for

the rectification of loss or damage to the Permanent Works.

Contractors may wish to review the list of Excepted Risks to

see if this list adequately covers all of the project risks which

may occur and cause loss or damage to the works while the

works are in their care.

The Employer ’s Risks are listed in limbs (a) to (j) of Clause 8.5

and are a comprehensive set of project risks frequently seen

in the Red FIDIC Book. If any of the Employer ’s Risks occur, the

contractor is entitled to claim additional time and money in

accordance with the provisions of the ICC form.

The Shared Risks under Clause 8.7 are risks which only entitle

the contractor to claim additional time but do give rise to

any financial compensation unless otherwise stated in the

contract.

A noticeable risk which is missing, is the general ‘catch all’

clause typically found at Clause 8.4(e) of the Red FIDIC Book

giving the contractor an extension of time if there has been

delay, impediment or prevention caused by or attributable

to the Employer. This typical extension of time ground is not

included as one of the Shared Risks referred to in Clause

8.7, nor referred to in Clause 9.4 which deals with extensions

of time. It is strongly recommended this catch all clause is

included as one of the Shared Risks to avoid any arguments that

an extension of time cannot be granted as a result of ‘acts of

prevention’ by the Employer.

Contractors are reminded that if a risk does not fall under any of

the Excepted Risks, the Employer’s Risks or the Shared Risks, then

such risk will be carried by them in accordance with Clause 8.1.

Therefore contractors should carry out a careful analysis of the

risks in the ICC form to fully understand the project specific risks

which they will carry on a particular project.

The ICC approach in setting out the project risks under one

clause is helpful and in theory should assist the parties to quickly

identify and agree the allocation and responsibility for risks on

any given project.

6. Force Majeure

As with most international standard forms of contract, the ICC

conditions of contract provide relief as a result of exceptional

events or circumstances which prevent a party from performing

its obligations.

Contractors with experience of international construction

projects will be familiar with the wording in Clause 19.1 of the

Red FIDIC Book which defines when an event will be treated as

force majeure.

89 IIQS - 2015 | 88 | IIQS - 2015

Force majeure is an exceptional event or circumstance

which is: (a) beyond a party ’s control; (b) which such

party could not reasonably have provided against before

entering into it; (c) which, having arisen, such party could

not reasonably have avoided or overcome; and (d) which is

not substantially attributable to the other party.

Therefore a party must have been prevented from

performing its obligations under the contract and overcome

5 hurdles to succeed in its claim for force majeure.

FIDIC also provides a non-exhaustive list of exceptional

events or circumstances which may qualify as force majeure

provided the conditions (a) to (d) of Clause 19.1 are satisfied.

These events may include war, hostilities rebellion, terrorism,

riot, commotion.

Additional relief may also be found at Clause 19.7 of FIDIC

(Release from Performance under the Law) if an obligation

is impossible or unlawful to perform. Clause 19.7 entitles the

affected party to be released from further performance

of the contract if the event or circumstance is outside

the control of the parties, making it impossible or unlawful

for either or both parties to fulfil its or their contractual

obligations.

Therefore, an event which is exceptional in nature may be

treated as force majeure under Clause 19.1 of the Red FIDIC

Book if it affects performance of a party›s obligations under

the contract. However, this same event may not make that

party›s obligation impossible to perform for the purposes

of satisfying the test under Clause 19.7. FIDIC must clearly

have intended there to be a distinction, depending on the

severity of the event in question, in terms of relief that may

be sought under Clause 19.1 and Clause 19.7.

For an event to qualify as a force majeure event in the ICC

form, the event must make it impossible or unlawful for either

or both parties to fulfil their contractual obligations. This is

a higher threshold when compared to that typically found

under Clause 19.1 of the Red Book. The threshold for force

majeure in the ICC form is similar to the strict test found

under Clause 19.7 (Release from Performance under the

Law) of the Red Book. This distinction is arguably unhelpful.

Contractors may therefore wish to make amendments to

the ICC form to bring it in line with the Red FIDIC Book. This

is to give contractors relief for events which they could not

reasonably have avoided and which will prevent them

performing their obligations.

7. Collaboration and Early Warning

Many parties and stakeholders are adopting pro-active risk

management tools in their contracts as a way to identify

and manage risks during the currency of the project. The

inclusion of early warning notices and risk reduction meeting

provisions focus the parties› minds on project delivery.

In the ICC form the contractor, the employer, and the

engineer shall each in the performance of the contract,

collaborate in a spirit of trust and mutual support in the

interests of the timely, economic, and successful completion

of the works.

The ICC form, however, seems to have taken this

collaboration principle a step further as it allows the parties

to agree actions and measures and the associated matters

of payment and additional time. This may be seen by some

as taking the collaboration principle a step too far. Time will

only tell if the parties are keen to follow the ICC approach.

8. Conclusion

Overall, the ICC form is to be welcomed and may be seen

as a useful alternative approach to FIDIC in the international

construction market.

The standard methods of measurement for building works - IS 1200 , has been well established for over 55 years on the standard for preparation of bill of quantities in civil engineering works.Measurements occupy a very important role in planning and execution of any civil engineering work from the time of preparation of preliminary estimates to final completion and settlement of payments for a project.

Indian Standard of Measurement of Building Works - IS 1200

Gabriel OlufemiSolicitor

Paul PrescottLegal Director

The standard method of measurements - IS1200, is used

in preparation of bills of quantities. It also documents

the measured quantities of the items of work identified

by drawings and specification in tender documents. Bills of

quantities are issued to tenderers, for them to prepare a price

for carrying on works based on this standard. It is found that

the methods followed for measurement are not uniform and

considerable differences exist between practices followed by

various construction agencies, government departments etc.

Hence,to eliminate ambiguities in measurements, standards

method of measurements - IS1200 has been developed

and adapted by Bureau of Indian Standards. A snapshot of

the latest parts have been presented in this paper which is

beneficial to a large community of Quantity Surveyors, Project

Managers, Contract Managers and others in the field of Civil

Engineering trades.

Methods of measurement of Building Works It is important to establish a considerable degree of

standardization in the method of preparing the bill of

quantities and the units used in them. To achieve this a

standard method of measurement is used, the purpose of

which can be summarized as under:

a) To facilitate pricing by standardization

of bill of quantities

b) To provide a systematic structure of bill

of items leading to uniform items and description

c) To provide a rational system of billing

d) To simply the measurement of

work and administration of contracts

e) To provide a uniform basis for measurement

of works so as to avoid misunderstanding of works

f) To assist in financial control of work

Indian Standards on method of measurement of building

and civil engineering works have, therefore, been formulated

which have been covered in various parts of IS 1200 based

on different trades. These have been amended and revised

from time to time so as to keep the same based on the latest

practices being followed by various construction agencies

and government departments. The following is the list of IS:

1200 parts with latest reaffirmed / amended dates:

91 IIQS - 2015 | 90 | IIQS - 2015

For the purpose of deciding whether a particular requirement

of these standards are complied with, the final value, observed

or calculated, expressing the results of measurement, shall be

rounded off in accordance with IS:2-1960 – Rules for rounding

off numerical values (revised). The number of significant

places retained in the rounded off value should be the same

as that of the specified value in these standards.

After a contract is entered into, the engineer for the contract

is responsible for discharging the measurement function and

he may delegate his authority to the engineer ’s reprenstatives

to carry out measurement work with assistance of quantity

surveyors and the site staff. Emphasis is made to ensure

consistent and systematic approach throughout the pre and

post contract stages. This provides a structured framework

to implement an independent checking system for the

measurement works.

Conclusion

Measurement is used by various stakeholders and construction

professionals throughout the development process to calculate

the quantity of work to be done. A project manager may

require details of areas of a proposed office block to establish

a budget at the initial stages of a contract. A quantity surveyor

may calculate the approximate quantities of work during the

design development stage to produce a cost plan to check

the adequacy of the building budget. A quantity surveyor may

take off quantities from detailed drawings to produce a bill

of quantities for tendering purposes. On smaller projects

an estimator may need to measure the quantities from

the tender drawings and specifications as part of a tender

submission. A contractor will present measured variations as

part of a final account settlement. The purpose of measuring

any building work is to establish the correct amount of work

to be done. This involves producing accurate quantities in

a way which is comprehensive, technically accurate and

clear in its approach and presentation. Measurement has

two basic essential activities; description and quantification.

Description usually involves ‘ translating’ information

contained on drawings, specifications and technical

reports and communicating that information accurately

and concisely so that another person will completely

understand the writer ’s intentions. The measurer must be

able to describe concisely what the designer has drawn or

the builder has built. In practical terms this means that the

description must be clear enough to enable an estimator

to visualize the detail without having to refer to the drawing.

Designers and quantity surveyors must be aware that others

will rely on their descriptions when pricing building works.

Descriptions must therefore be accurate, clear, concise

and unambiguous. Hence IS 1200 with various parts plays a

very important and key role in providing the standardization

in the method of measurement required by the Quantity

Surveying community.

Umesh Ramakrishna Rao

BE (Civil), MRICS, MIIQS Fellow,Institution of Engineers (India) and Institution of Valuers (India)

Principal ConsultantRohini Project Management Solutions

Project Management & Cost Management Consultants, Bangalore

SlNo

IS Number Title Reaffirm date No of.amd

1 IS 1200 (Part 1):1992

Methods of measurement of building and civil engineering works : Part 1 Earthwork(fourth revision)

Sept 2012 1

2 IS 1200 (Part 2):1974

Methods of measurement of building and civil engineering works : Part 2 Concreteworks ( third revision)

Sept 2012 2

3 IS 1200 (Part 3):1976

Methods of measurement of building and civil engineering works : Part 3 Brickwork(third revision)

Sept 2012

4 IS 1200 (Part 4):1976

Methods of measurement of building and civil engineering works : Part 4 Stonemasonry (third revision)

Sept 2012

5 IS 1200 (Part 5):2013

Methods of measurement of building and civil engineering works : Part 5 Form work(fourth revision)

6 IS 1200 ( Part 6):1974

Methods of measurement of building and civil engineering works : Part 6 refractorywork (second revision)

Sept 2012 2

7 IS 1200 (Part 7):2013

Methods of measurement of building and civil engineering works : Part 7 Hardware(third revision)

8 IS 1200(Part 8):1993

Methods of measurement of building and civil engineering works : Part 8 steel workand iron work (fourth revision)

Sept 2012 1

9 IS 1200(Part 9):1973

Methods of measurement of building and civil engineering works : Part 9 roof cover-ing ( including cladding) (second revision)

Sept 2012 1

10 IS 1200(Part 10):2013

Methods of measurement of building and civil engineering works : Part 10 ceilingand linings (third revision)

11 IS 1200 (Part 11):2013

Methods of measurement of building and civil engineering works : Part 11 paving ,floor finishes , dado and skirting (fourth revision)

12 IS 1200(Part 12):1976

Methods of measurement of building and civil engineering works : Part 12 Plasteringand pointing(third revision)

Sept 2012

13 IS 1200 (Part 13):1994

Methods of measurement of building and civil engineering works : Part 13Whitewashing , colour washing, distempering and painting of building surfaces(fifth revision)

Sept 2012 2

14 IS 1200(Part 14):1984

Methods of measurement of building and civil engineering works : Part 14 Glazing(third revision)

Sept 2012 1

15 IS 1200(Part 15):1987

Methods of measurement of building and civil engineering works : Part 15 Painting ,polishing, varnishing etc. (fourth revision)

Sept 2012

16 IS 1200(Part 16):1979

Methods of measurement of building and civil engineering works : Part 16 Laying ofwater and sewer lines including appurtenant items (third revision)

Sept 2012

17 IS 1200(Part 18):1974

Methods of measurement of building and civil engineering works : Part 18 Demoli-tion and dismantling (third revision)

Sept 2012

18 IS 1200(Part 19):1981

Methods of measurement of building and civil engineering works : Part 19 watersupply , plumbing and drains (third revision)

Sept 2012

19 IS 1200(Part 20):1981

Methods of measurement of building and civil engineering works : Part 20 laying ofgas and oil pipeline (third revision)

Sept 2012

20 IS 1200(Part 21):1973

Methods of measurement of building and civil engineering works : Part 21Wood- work and joinery (second revision)

Sept 2012 1

21 IS 1200(Part 22):1982

Methods of measurement of building and civil engineering works : Part 22 Materials Sept 2012

22 IS 1200(Part 23):1983

Methods of measurement of building and civil engineering works : Part 23 Piling(fourth revision)

Sept 2012

23 IS 1200(Part 24):1983

Methods of measurement of building and civil engineering works : Part 24 Wellfoundation (third revision)

Sept 2012 1

24 IS 1200(Part 25):1971

Methods of measurement of building and civil engineering works : Part 25 Tunneling( Second revision)

Sept 2012 4

25 IS 1200(Part 26):1987

Methods of measurement of building and civil engineering works : Part 26Acid test lining

Sept 2012

26 IS 1200(Part 27):2013

Methods of measurement of building and civil engineering works : Part 27Earth work done by mechanical appliances (first revision)

27 IS 1200(Part 28):1992

Methods of measurement of building and civil engineering works : Part 28sound insulation work

Sept 2012

28 IS 3861:2002 Method of measurement of plinth , carpet and rentable arears of buildings(second revision)

Sept 2012

29 SP 27: 1987 Hand book on method of measurement of buildings works (first revision) Oct 2013

93 IIQS - 2015 | 92 | IIQS - 2015

Presently, world is recovering from Global Financial Crisis of 2008, worst financial crisis since 1930. The Great Depression of 1930 was caused due to fall of stock market, while the global financial crisis of 2007 was caused due to housing market bubble in US and overvaluing mortgages by subprime housing market. Housing Market plays a vital role in countries economy and life of citizens, but due to the cyclic nature of housing market, it also affects the economy of country. To save the world from such financial crisis in future, it is important to understand cyclic behaviour of housing market or minimize the impact of boom and burst of housing market on economies.

Impact Of Boom & BustOf Housing Market Market on Macroeconomy

hOW hOUSING MARKET AFFECTS MACROECONOMY

GDP (Gross domestic Product) can be decomposed in four

categories: investment, consumption, government spending

and net export (difference between export and import).

Investment spending typically requires financing and is

normally depended on interest rates. Higher interest rate may

lead to weak housing sales, rising inventories of home sale,

and falling housing prices. These, in turn make building houses

less profitable, and so the builders are likely to construct new

houses, which creates reduction in investments. New housing

construction is included in the investment category of total

economy spending i.e. included in GDP.

Housing market also affects GDP via consumption spending.

It is important to remember that houses that individual or

family own are a biggest asset on their balance sheet. It has

been noted that change in housing prices are correlated with

change in consumption. The change in housing prices affects

consumption either via wealth effect (when house prices

rise/fall household may feel more/less wealthy and react by

increase/decrease their consumption) or via collateral effect

(an increase in value of a house might allow the owner access

to more credit and opposite might occur when values falls).

Employment has direct relation with household consumption.

Household consumption increases, when more people are

employed. The increased consumption causes increased

demand and subsequently business/economic growth.

This creates an accelerated effect, as business grows

further; more people get employment, which reduces the

government unemployment expenditures, increases tax

revenues. This creates additional funds to the government for

spending or to reduce budget deficits or budget surplus. The

consequential affect is increased government spending i.e.

more employment or reduction in budget deficit, increased

country credit rating, which helps to get cheaper finance.

Employment is key to business and country ’s economic

growth.

DETERMINANTS OF hOUSING MARKET

Housing market depends on various different factors, which

jointly or individually affect the prices. Most of the factors are

interlinked and affects each other. The determinants, which

mainly affect housing market, are –

(1) Business Cycle (GDP), (2) Unemployment Rate, (3)

Disposable Income, (4) Credit Availability, (5) Interest Rate,

(6) Supply of New dwellings, (7) Rental Income, (8) Foreign

Exchange Rate

hISTORY OF hOUSING MARKETS

The US, Uk, & Japan housing markets directly affect the

global economy; hence it is important to study the historical

behaviour of these markets to create more reliable economy.

1. JAPAN

By 1991, Japanese, commercial land prices rose 302.9%

compared to 1985, while residential land and industrial land

price jumped 180.5% and 162.0%, respectively, compared

to 1985. Nationwide, statistics showed that commercial land,

residential land and industrial site land prices were up by

80.9%, 51.1%, and 51.7%, respectively. In early 90’s, Japan’s

property prices fell by 75% and could not able to recover in

last 2 decades, which is also called as Lost Decade. The entire

asset prices crisis was far worse, especially in large business

districts of Tokyo. By 2004, prime “A” property in Tokyo’s financial

districts had slumped to less than 1% of its peak, and Tokyo’s

residential homes were less than a tenth of their peak. Over

the period of 1995 to 2007, Japanese GDP fell from $5.33 to

$4.36 trillion (in nominal terms), while the country experienced

a stagnant price level (no inflation) and interest rates were

close to “ZERO” or negative.

2. UNITED kINGDOM

Between, 1980 to 1986 house prices in Uk were rising with a

slow rate, but increased sharply from 1987 to 1989 before a

sharp fall in 1991. The prices remained low from 1991 to 1996

and started increasing from 1998 and continued till global

financial crisis of 2007. Due to the global financial crisis, the

housing prices declined 20% in 2007-2008, but recovered

10% in year 2010. The Uk government supported the housing

market by reducing the interest rates close to 0.5% and by

providing government funding for first time new house buyers.

Between, 2010 - 2012 prices were stable but further rose by

10% in 2013 and have been continuously rising and already

expected to be a bubble, which may burst as soon as interest

rates are increased (possibly towards end of 2015).

3. UNITED STATES

U.S. subprime mortgage crisis was a nationwide banking

emergency that coincided with the U.S. recession of

December 2007 – June 2009. It was triggered by a large

decline in home prices, leading to mortgage delinquencies

and foreclosures and the devaluation of housing-related

securities. Decline in residential investment preceded the

recession and were followed by reductions in household

spending and then business investment. Spending reductions

were more significant in areas with a combination of high

household debt and larger housing price declines.

U.S. home prices declined steeply after peaking in mid-2006,

it became more difficult for borrowers to refinance their

loans. As adjustable-rate mortgages began to reset at higher

interest rates (causing higher monthly payments), mortgage

delinquencies soared. Securities backed with mortgages,

including subprime mortgages, widely held by financial

firms globally, lost most of their value. Global investors also

drastically reduced purchases of mortgage-backed debt

and other securities as part of a decline in the capacity and

willingness of the private financial system to support lending.

Concerns about the soundness of U.S. credit and financial

markets led to tightening credit around the world and slowing

economic growth in the U.S. and Europe.

The crisis had severe, long-lasting consequences for the U.S.

and European economies. The U.S. entered a deep recession,

with nearly 9 million jobs lost during 2008 and 2009, roughly

6% of the workforce. One estimate of lost output from the crisis

comes to “at least 40% of 2007 gross domestic product”.

U.S. housing prices fell nearly 30% on average and the U.S.

stock market fell approximately 50% by early 2009. As of

early 2013, the U.S. stock market had recovered to its pre-

crisis peak but housing prices remained near their low point

and unemployment remained elevated. Economic growth

remained below pre-crisis levels. Europe also continued

to struggle with its own economic crisis, with elevated

unemployment and severe banking impairments estimated

at €940 billion between 2008 and 2012.

US housing market gained significantly after the recession, but

still at the risk since federal government is keeping interest rate

close to 0.5% from last 6-7 years to support the economy,

which is over due to be raised and planned to increase

towards end of 2015. Once interest rates are increased it will

be difficult to sustain the growth.

BUSSINESS CYCLE AND hOUSING CYCLE

94 | IIQS - 2015

Due to the cyclic nature of housing market, after the sharp

increase of 4 to 5 years, it declines sharply; it is evident from

1991 and 2008 falls. Housing market cycle follows business

cycle, 4 to 5 years of shorter cycle and 15 to 20 years longer

cycle.

To rescue the economy from recession, Governments takes

various actions, such as, increase government spending,

reduce taxes and interest rates etc., which starts economic

upturn. The economic upturn starts creating positive

confidence to the business and financial institutions and

subsequently investments and credit expansion starts. This

creates a demand of new properties, but due to short supply,

it leads to increased rents. The delivery of new properties takes

long time, which causes booming demand and creates a

bubble. The speculators inflate bubble more, which makes

properties unviable.

To control booming market, government starts increasing

taxes and interest rates. This slows down the market and start

downturn. But it is not possible to deflate bubble without

popping, which cause sharp decline in property market and

slow down the business and investments.

Japan, US and Uk tried to slow down the market but speculated

bubble busted and caused sudden crash.

CONCLUSION

Delay in start of new projects (due to effect of last cycle) and

over leverage of companies and individuals are two major

factors that creates bubble in property market. To prevent

the property market from sudden crash, it is important for

governments to regulate the financing policies to control

demand and supply on a regular basis rather than leaving for

market for its own correction.

Naveen Kumar is a professional Quantity Surveying with an experience of 25 years in India and Abroad. Presently working with M/s Al Faraa General Contracting as Commercial Manager and has pre and post commercial and contract management experience in high rise buildings. He is Director in IIQS, Member of Royal Institution of Chartered Surveyors (MRICS), Certified Cost Engineer by AACEI andAssociate Member of Chartered Institute of Arbitration.

Naveen Kumar Director IIQS, MIIQS, MRICS, CCE, ACI (Arb), DCE

Members Best Compliments

Ramarao KilariDirector IIQS

Ramarao

Paul Mathew, Commercial Manager,

TDIC, Abu Dhabi

Paul BankalaContracts Administrator,

Dubai Aviation Engineering Projects

Basavaraj k BethB.E.(Civil), AIQS(Affil),

CCE, ACIArbDirector & Global Event

Management Chair

George John, Senior Cost Manager,

TDIC, Abu Dhabi

Biju Thomas PuthenPurackal

Senior QS, Link International Property LLC, Abu Dhabi

Prasanna KumariContracts Engineer

ARCO Gen. Contracting LLC, Dubai

TEL. NO.: 04-3958771, FAX NO.: 04-3958775, P.O. BOX 119070, DUBAI, UNITED ARAB EMIRATES

Email: [email protected], Web: www.alavoncontractingsllc.com







97 IIQS - 2015 | 96 | IIQS - 2015

married or divorced, etc. If, with a magic wand, we could put

a group of people into the same set of circumstances (same

house, same spouse, same place of birth, same face, and

same aches and pains), the differences in their happiness

levels would be reducedby a measly 10 per cent.”

Prof. Lyubomirsky notes in her book The How of Happiness

that this finding runs contrary to many of our efforts to

obtain happiness: “One of the great ironies of our quest to

become happier is that so many of us focus on changing

the circumstances of our lives in the misguided hope that

those changes will deliver happiness… An impressive body

of research now shows that trying to be happy by changing

our life situations ultimately will not work. Although we may

achieve temporary boosts in well-being by moving to

new parts of the country or the world, securing raises, or

changing our appearances, such boosts are unlikely to be

long-lasting.”

Most experts agree that human beings immediately adapt

to positive circumstantial changes in the hope of bringing

about happiness in their lives. Although the circumstances

change, it may not be a source of long-term happiness, as

they will eventually be taken for granted.

Happiness strategies

The remaining 40 per cent of our happiness is determined

by our behavior—intentional activities referred to as

“happiness strategies.”

This is the core of the research of leading professionals in this

field which advocates increasing and sustaining happiness

through intentional activities.

Genuinely happy people make things happen, and don’t

just sit around being content. They learn more, achieve

more and control their thoughts and feelings. If an

unhappy person wants to experience interest, enthusiasm,

contentment, peace and joy, he or she can make it happen

by learning the habits of a happy person.

Scientific research supports the use of strategies such as

expressing gratitude, acts of kindness, nurturing relationships,

committing to goals, among others. Researchers describe

precisely what these somewhat generic terms mean in

this context and provide a rationale for why they work and

explore what they might look like in practice. They do not

say that these are the only meaningful happiness strategies,

but separately they meet standards for being “evidenced-

based,” and together they constitute a list sufficiently broad

“so that every individual could find a set right for him or her.”

The science of happiness is here to stay with the single

focus of making the world a better place.

Prof. Christopher Abraham explores the science of happiness, and how it relates to professional and personal success. Psychological studies have primarily concentrated on human failing and pathology. In fact, the idea of psychotherapy, a concept realized by Sigmund Freud, is based on the fact that human beings are distressed and need to be calm.

The practitioners that followed Freud developed a model

that seemed to portray humans as mechanical and

passive, being shaped by situations surrounding them.

However, this view was soon altered when eminent psychologist

Martin Seligman, in 1998, urged psychology professionals to

set about the healing process with understanding and building

strong qualities. Seligman is credited with sowing the seeds of

happiness studies and positive psychology. He went on to be

the world’s leading scholar on optimism.

Seligman’s idea quickly caught on, with the Gallup

organization founding the Gallup Positive Psychology Institute

to fund research on the subject. This provided the foundation

of the Gallup Positive Psychology Summit, which was globally

recognized within two years of it being held.

So what really makes us happy? How can we become

happier? And is happiness sustainable? Current cutting edge

research on studying happiness indicates that our individual

level of happiness springs from three primary sources:

Our genetic set point

• Fifty per cent of our happiness derives from a genetically

determined set point, contend leading researchers such

as Professor Sonja Lyubomirsky from the University of

California.

• The set point for happiness is similar to the set point for

weight. Some people are blessed with skinny dispositions:

even when they’re not trying, they easily maintain their

weight. By contrast, others have to work hard to keep their

weight at optimum levels, and the moment they relax

their dietary and exercise regime, they gain back all the

weight.

• So those of us with low happiness set points will have to

work harder to achieve and maintain happiness, while

those of us with high set points will find it easier to be

happy under similar conditions.

Our life circumstances

“Life circumstances” determine a scant 10 per cent of our

happiness, Prof. Lyubomirsky continues: “Only about 10 per

cent of the variance in our happiness levels is explained by

differences in life circumstances or situations-that is, whether

we are rich or poor, healthy or unhealthy, beautiful or plain,

Happiness Leads To Success

Prof. Christopher Abraham holds three Post Graduate qualifications in Business Administration (Marketing), Human Resources Management, and Labor and Administrative Law.

He is a PhD Scholar in Positive Psychology and the Science of Happiness. He has twenty-eight years of professional experience in management consulting, marketing, executive development and management education.

Currently he is the Sr.Vice President and Head of the Dubai campus at S P Jain School of Global Management, one of the World’s Top 20 ranked Business Schools with campuses in Dubai, Singapore and Sydney.

Christopher Abraham


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101 IIQS - 2015 | 100 | IIQS - 2015

Global RecognitionInternational

IIQS members have achieved various International

awards from the reputable organizations for their

commitment and their outstanding contribution

towards the society and Quantity Surveying Profession.

IIQS is proud to share our pleasure and congratulating

all the members, who have devoted so much of their

personal and professional time towards the success

of IIQS.

Qatar National Environment Aword

IIQS provides a great platform for networking opportunities during the CPD events as well

as during the social events. Any relevant information required for effectively carrying out

the day to day works and also for upgrading professional qualifications is shared among

the members. Any job opportunities also shared which is of immense help to members

who have lost their jobs or are looking for new opportunities

AIQS Infinite Value AwardMs. Sinimol Noushad, FRICS & Ms. Asha Balachandaran,MRICS, have been honored as Finalist and Winner for“SGA Property Consultancy Women in Construction Award” Sydney, Australia.

Members Achievements

Networking And Job opportunities

During the CPD events, IIQS recognizes the dedication and the hard work of members who upgrade their professional qualifications or achieve membership of prestigious global bodies


102 | IIQS - 2015

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105 IIQS - 2015 | 104 | IIQS - 2015

About 10 years back when i was new to UAE it was the CPDs at IIQS that got me acquainted to the QS practises in UAE. With all its limitations IIQS did its best to have excellent speakers for the various CPDs whereby our knowledge was enhanced. In addition, it also gave me a platform to be a speaker on more than one occasion.

Other than the above, IIQS have also initiated various other activities amongst which are conducting internal cricket tournaments / participating in other tournaments, organising Family Get together and the like, through which our families are also given its share of fun and enjoyment.

I wish IIQS all the very best for all its future endeavours.

Ajith PhilipContract Manager

Nakheel, Dubai

IIQS star ted its journey with a vision of establishing and maintaining high standards of professional competence and integrity. During the very first CPD I attended, I was very impressed with the work IIQS does. My wish was fulfilled when I joined the IIQS committee and was surprised to see the mix of experience and youth in the committee. I must say that IIQS is really doing a great service to the Construction Industry and truly live to their motto- ‘Lightened to Learn & Live’. My hear tiest congratulations to IIQS and all the best for their future.

Parag Quantity Surveyor

Parsons Overseas Ltd., Dubai

I highly appreciate IIQS’ dedicated and untiring approach in nurturing the professional standards of Indian Quantity Surveyors fraternity. IIQS is providing the required platform to Indian Quantity Surveyors and mentoring them to convert the professional threats into opportunities by attaining various professional memberships from international professional institutes, thereby to compete on an international level and excel in their career. I feel privileged to be associated with IIQS.

I wish Good luck to IIQS in achieving the Chartered status and I look forward to see it’s recognition worldwide in the near future.”

Quraishi B.E, MIE, C.Eng.(I),

MIRC,MIIQSDoha, Qatar

The IIQS, has enabled me to update and develop professionally in my field. I have attended almost all the CPD’s delivered by IIQS, Qatar with great professionalism and standards. IIQS gave me an immense oppor tunity for networking with various kinds of professional people on various capacities working with different organizations. It helped me to develop my communication skills and to gather knowledge on new things which I didn’t know. It has shown me a path towards attaining the additional professional qualifications and guiding the procedure to achieve it.

Venkat N MIIQS

Quantity Surveyor, CCC, Qatar

Quantity Surveying is a humble profession and it is required from inception to completion of any construction. In this competitive world, every professional needs to sharpen their knowledge to sustain in their respective field. Such sharpening happens only when you have the zeal of continuous professional development attitude. IIQS started to take up this challenge and continuous to give such a platform (knowledge hub) to all Indian Quantity Surveyors. IIQS started with a small drop of water and has become an oasis of knowledge sharing hub in the Gulf desert and slowly spreading to other parts of the World. It is also having healthy relations with all other nationalities over here in QS field. Great courage, discipline, voluntary spirit, strong mottos, good ethics, strong relationship and incessant thrust for improvement are the leading contributors to thrive the IIQS in this region. We are all contributing to develop IIQS to give dividends to us in our future endeavors and to our upcoming disciples of QS. It’s my pride and strength to be a part of IIQS. “Learning never ends, Knowledge never be stolen, improvement never stops”

Chamarty B. Tech, MBA

Senior Quantity SurveyorDUTCO BALFOUR BEATTY

LLC,

Being par t of IIQS is one of the most positive professional experience I have had in my 14 years as a QS and Contracts Engineer. I highly recommend IIQS CPDs and APC workshops to any individual interested in expanding their professional membership training needs. I appreciate how the lectures were kept engaged by the speakers who are very experienced and knowledgeable about the subject being dealt with. The information shared is exceptionally lot more than what was expected.Once again many thanks to IIQS for its incredible help and suppor t in my career.

Prasanna Contracts Engineer

ARCO Gen. Contracting LLC, Dubai

“After my association with IIQS in year 2014, I realise the positive changes come in my professional life day by day. I strongly believe that IIQS provides a platform to share the knowledge, grow in the profession to move next level and

serve for the society.

The success behind the IIQS where it stands now is only because of strong leaders,many of talented professionals and their effor ts.

The Days are not too far that IIQS achieving the higher limits in future.I wish all the very best to IIQS and I am proud to be a member.”

Sebastin MIIQS,

Doha, Qatar

Being a new IIQS member since June 2015, I am for tunate to be par t of IIQS. I attended first IIQS CPD Event in April 2015; I take this oppor tunity to thank IIQS team for creating such an event in a very professional manner in Qatar. There is still long way to go but I still feel I am late to join IIQS and thankful to IIQS Doha MC team for their hard work as they

are putting high effor t to make it a great success.

WASHIM MIIQS

Doha, Qatar

It gives me immense pleasure to be par t of this souvenir. I take this oppor tunity to mention here that I had been associating with IIQS since I was in Dubai. In Qatar from inception I am par ticipating in all activities conducted by IIQS Qatar Chair. The association with IIQS really supplied me the nourishment to my carrier through well organized CPDs

and structured training program. I could see young Indian Quantity Surveyors are developing their professional skill to compete with the industry requirements in the Middle East which is a great achievement by IIQS. I am sure by this pace

and motivation we will achieve the status of ‘Char tered’.

TharamalCCP, MIS, ACIArb,

MIIQS

I have been associated with IIQS for the past 10 years and actively par ticipating in the affairs of Qatar chapter of IIQS. I have attended all the CPD’s conducted by IIQS and it helped me a lot in carrying out my day to day activities in my role. I also joined APC workshop conducted by IIQS which helped me to improve the QS competencies. IIQS Qatar chapter conducting CPD’s on current trends in market. IIQS gave me access to meet highly qualified

professionals in the Industry. IIQS is immensely helping all QS professionals in improving their professional exper tise along with guiding through job oppor tunities. I would like to thank all the members of IIQS Team who are behind the success of IIQS and wish

them all the best.

kiran MIIQS

Doha, Qatar

IIQS offers the best available seminars in the region. I have enjoyed all the seminars and workshops conducted by IIQS which has helped me in my day to day works. Hats off to IIQS founders and all who are presently running the show to

offer the best professional guidance and suppor t to APC candidates and aspirants.

Siji MIIQS

Doha, Qatar

IIQS TESTIMONIALS

106 | IIQS - 2015106 | IIQS - 2015

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