it3 u14 - electrical contracting - complete

CGLI 2330 Certificate in Electrotechnical Technology Level 3 Installation Technology: Unit 302/3 – Inspection & Testing and Fault Diagnosis & Rectification

Unit 14 – Electrical Contracting

The College at Clacton Unit 14 January 2012

Electrical Contracting Unit Aims

By the end of the unit participants should be able to:

describe procedures involved with producing a formal contract and the role of contracts in installation activities

(Syllabus Reference: 2.1.07)

describe the use of the following to monitor contract progress a) bar charts b) critical path networks c) site records d) site diaries e) variation orders


explain the importance of a) coordinating electrical installation contracts with other trades b) recognising the implications of variations


explain the importance of effective communication to maintain good relationships with a) customer/client b) architect c) surveyor d) main contractor e) local authorities representatives f) colleagues and other trades


Electrical Contracting

The Electrical Contractor

An electrical contracting firm is made up of a group of individuals with varying duties and responsibilities. There is often no clear distinction between the duties of the individuals and the responsibilities carried by the employee will vary from one employer to another. If the firm is to be successful, the individuals must work together to meet the requirements of their customers. Good customer relationships are important for the success of the firm and the continuing employment of the employee.

The electrical installation in a building is often carried out alongside other trades. It makes sound sense to help other trades where possible and to develop good working relationships with other employees.

The employer has the responsibility of finding sufficient work for his employees, paying government taxes and meeting the requirements of the Health and Safety at Work Act. The rates of pay and conditions for electricians and trainees are determined by negotiations between the Joint Industry Board (JIB) and Amicus, the trade union representing electricians who will also represent their members in any disputes.




TYPES OF CONTRACT

Based On Quantities

A bill of quantities is produced itemising the work required, it is then priced by the contractor and agreed by the customer.

Fixed Priced Contracts - (Lump Sum)

A project/installation is defined by specification and drawings, a contractor submits a price against these documents. Upon acceptance of the price the contractor is obligated to carry out the specified work for the agreed sum quoted.

Schedule of Rates

A document containing identified standard items of work is produced, which are priced by the contractor on a unit rate basis. If the rates are accepted, the price for any particular contract will be calculated using the agreed unit rates, i.e. 10 socket outlets installed at the rate of £x per socket outlet.

Prime Cost

The contractor is paid on the basis of the actual costs of the labour and material (day work), plus a sum to cover overheads.

BREACH OF CONTRACT

A failure to meet the requirements of the agreed contract, usually caused by the requirements for time or standards not being complied with.

The Consequences

The customer may well seek to take legal action against the contractor.

Withdrawal of contract.

Financial loss incurred

Loss of goodwill

Loss of status/reputation

Bad publicity

Invariably the work will be delayed

Penalty Clauses - Liquidated damages

At the time when the contract is agreed, a system of financial compensation is set up by way of a penalty clause in the contract document. Its contents are often called liquidated damages, which are a provision for the contractor to make payment of a defined sum of money in the event of the contractor causing a breach of contract. In the case of construction contracts a provision is usually made against late completion. This generally takes the form of a sum of money payable per day, week or month that the contract completion is overdue.




COMPLETION

Having entered into a contract to carry out specified work it is important to have a formal completion, for the following reasons.

1. To hand over ownership/responsibility for installed equipment.

2. To mark when an installation is complete without defect and ready for use.

3. To commence and extended liability for defect period agreed with the customer .

Completion is usually carried out in three stages.

1. Practical completion.

2. Defects are made good (snagging lists).

3. Final certificate issued.

The Installation Team

If a company is successful and wins a contract it will be notified by the architect, consultant or specifying authority. If the company is small it may be given to the engineer who prepared the original estimate; with a larger company it will be given to the contract engineer who is going to supervise the project. The work will have to be ‘pre-planned’ in accordance with certain requirements:

the builder’s programme;

length of contract;

availability of labour;

delivery dates for certain materials;

access to site;

hire of plant and equipment;

health and safety requirements.

If the contract is on an existing building then a site visit will be useful so that cable runs can be planned and measurements taken. However, if the building has not been erected then this will have to be done taking measurements from the drawings. Materials will have to be ordered in good time, especially those on long delivery dates; if the company employs a buyer he will direct the contracts engineer as to which company offers the most advantageous discounts. The actual delivery of materials must be planned so that they spend the minimum amount of time on site to lessen the risk of damage. Fragile and/or expensive equipment must be placed in a secure store to avoid damage and theft. The contracts engineer will be anxious to find out which foreman has been appointed to this particular contract, as early contact can be beneficial to them both. Contract engineers often run several projects at any one time and so they rely on a good relationship with site personnel in order to keep things running smoothly. Although there is no contractual relationship between the electrical sub-contractor and the consultant architect there is a professional one. Some contracts are highly technical and there will be a good deal of liaison between the contracts engineer and the designer; however, it should be stressed here that from a contractual point of view the sub-contractor works for the main contractor and any decisions should go through the latter.




On site the project will be in the hands of a site supervisor or foreman. Experienced in electrical installation work, this person will be responsible for the supervision of the approved electricians, apprentices and labourers carrying out the work, not only for the quality of the work they produce but for their safety and welfare as well. Records will be kept of the hours spent by each individual on site, and time sheets signed at the end of each week. The site amenities will be checked to see if they meet the requirements of the Health and safety at Work Act and if accidents do occur these will be logged in the accident book. The foreman or supervisor will be the company’s representative on site and will attend site meetings with the contracts engineer and liaise with the main contractor, clerk of works, other sub-contractors and, through the main contractor, members of the design team. Records will be kept of any requests for alterations to the contract and details of these sent to head office. These alterations will be noted on a set of drawings known as the ‘as fitted drawings’ which will be required to be handed over to the client on completion of the contract.

Another important task of the foreman or supervisor is to ensure that goods and equipment, including those on hire, arrive at the times they are required. This often means getting in touch with suppliers and chasing outstanding materials. When equipment on hire is finished with, no time should be wasted in returning it as additional costs incurred in keeping it longer than necessary can be enormous.

Critical Path Network and Bar Charts

In larger projects, many tasks must be completed before the project is finished. Not all of these activities can be done at the same time, and some cannot begin until others are completed. A way is needed of working out how best to organise the project efficiently and critical path analysis (CPA) is one solution.

Critical Path Networks (CPNs) are diagrams that represent each task and how they relate to one another. If we know the time needed for each activity, the overall project completion time can be calculated. The chart also helps us to see what happens if a task is delayed unexpectedly.

The critical path is the sequence of activities that fix the duration of a project. In many projects there will be some activities that are not on the critical path. The first step in constructing a critical path network is to list all activities, what must be done before they can start (the sequence) and the expected time required for each.

The circles are ‘events’; they have no duration but represent the moment in time when an activity starts or finishes. The arrow represents the activity and always goes from left to right. It starts and ends with an event. The diagram right represents an activity (A) which lasts for two days.

A network is built by linking the activities from left to right at their start and end events. One rule of CPN is that no two activities can begin and end on the same two events. To explain this, we will use an example.




There are four activities (A, B, C and D) to complete. Activities A and B can be run at the same time, but C cannot begin until Activities A and B have been completed and Activity D cannot begin until Activity B has been completed.

Activity Activities that need to be done before this activity

As the first two activities (A and B) can begin at the same time, the temptation could be to show the as in the diagram below:

A None

B None

C A and B

D B

However, to comply with the rule that no two activities can start and end on the same events, we introduce a ‘dummy activity’. Shown as a dotted line (see diagram right), a dummy activity does not take any time.

This shows that Activity C can only start at Event 3, when both A and B are complete.

Now let’s look at a more detailed example.

Here is information we have about the activities:

Activity A starts on day 1 and lasts two days

Activity B starts on day 1 and lasts three days

Activity C can only begin once Activity B is complete and lasts three days

Activity D can only begin once Activity C is complete and lasts three days

Activity E cannot start until Activity A is complete; it will take six days

Activity F can start at any time and lasts two days.




This may need a little careful study to see how it all fits together.

The minimum time for project completion is taken as the longest time path through the network. In this example it is through points 1, 3, 6 and 7, giving use a project time of nine days.

The bar chart may seem easier to understand but it cannot readily show when several activities have to be completed before another can begin. With practice, using the critical path method will give you greater control over establishing when activities may start.

Bar charts and critical path networks will help you to see which activities affect your work and how they fit in with everyone else’s working schedule. In this way you can:

plan which areas to work in

see when you can start each activity

make sure you have the correct materials and equipment ready at the right time

avoid causing delays to others and the overall contract.

Site Records and Documentation

Job Sheets

Job sheets give detailed and accurate information about a job to be done. Some electrical contracting companies issue them to their electricians. They will include:

the customer’s name and address

a clear description of the work to be carried out

any special instructions or special conditions (e.g. pick up special tools or materials)




Site diaries

As a project develops, the labour force increases, the work area grows and the number of

ongoing tasks increases. With more meetings and discussions taking place, it becomes more difficult for the person in charge – whether the foreman, charge hand or electrician - to keep control of what was going on. This is where the site diary is used. All information relating to the running of the site should be kept as a daily record, which can be referred to in the event of a problem.

A site diary should be used to record:

dates and times of meetings, both official and unofficial

notes on the outcomes of those meetings

details and dates of any actions that needed to be undertaken

areas worked in and completed with details of the workforce used in those areas

notes of any problems encountered

staffing issues, lateness, absence, discipline, holidays

dates on which materials were ordered

dates on which materials were received

details of any discrepancies in deliveries and action taken

dates of proposed deliveries

agreed variations

contact details for staff, consultant engineers, Health and Safety advisers, etc.

Variation Order

A variation order (VO) is issued (‘raised’) when the work done varies from the original work agreed in the contract and listed in the job sheet. If this situation arises, it is important for the site electrician to tell her/his supervisor immediately. A variation order can then be made out to enable the new work to be done without breaking any of the terms of the contract. The purpose of the VO is to record the agreement of the client (or consulting engineer representing the client) for the extra work to be done, as well as any change that this will make to the cost and completion date of the project.

Day Worksheets

Work done outside the original scope of the contract, perhaps as a result of a VO initiated by the architect, engineer or main contractor, is known as day work. When the work is completed the electrician or supervisor fills out a day worksheet and gets a signature of approval from the appropriate client representative. Day work is normally charged at higher rates than the work covered by the main contract, and these charges are usually quoted on the initial tender. Typical day work charges are:




labour: normal rates plus 30 per cent

materials: normal costs plus 25 per cent

plant: normal rate plus 10 per cent.

Disputes over day work can easily arise, so it is important that the installation team on site records any extra time, plant and materials used when doing day work. Completed day worksheets, when signed by the client, must be returned to the office. Receipt of the day worksheet triggers the issuing of an invoice for the additional work.

it3 u14 - electrical contracting - complete

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