CHAPTER-II

1.50 Roles and Responsibilities of Client

The following is a summary of the many tasks that must be performed by the owner during the
successful development of any building project.

Pre Design Phase

Development of the program - This is the project's cornerstone. The owner must clearly state
the project objectives, develop a master schedule, and prepare a budget. Many things must be
considered including space requirements, adjacency of functions, expendability, constraints, and
equipment.

Selection of the site - A favorite saying in real estate is "location, location, location". There are
other considerations in selecting a site such as constructability, zoning, access, environmental
contamination and of course, cost.

Site analysis - It is the owner's responsibility to have the property surveyed to identify setbacks,
easements, boundaries, and elevations. In addition the owner must have the site tested and
certified for contaminates. Geotechnical borings are required to determine the structural and
drainage capabilities of the soil.

Selection of consultants - The owner needs not only a design/build general contractor, but also
consultants for accounting, legal and insurance requirements for the project. Engineers are
usually selected by, and work for, the designer. Once these consultants are selected, the owner
must negotiate contracts with each of them.

Appointment of an owner's representative for the project – Although the designer typically
has broad authority during the project, the owner must appoint someone as his general agent to
represent him in all matters relative to the project, including oversight of the designer.

1.5.2 Design Phase

Design approval - As the designer proceeds with the plans and specifications for the project, the
owner must review and approve them at different stages of completion. At least four formal
approvals are typical.

Budget approval - With the last formal review of the plans and specifications, the owner needs
to have a professional cost estimate prepared to ascertain whether the proposed design will be
within the original budget.

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Development of an FF&E plan - For the building to be functional it will have to have furniture,
fixtures, and equipment. This includes desks, chairs, artwork, process equipment, and computers.
An FF&E plan must include selection, space coordination, pricing, procurement, storage, and
installation.

Making decisions on design options - The designer will provide design options to the owner for
final determination. This includes selecting colors and textures, as well as making tough value
engineering decisions.

Creation of a project communications system - Many individuals are involved in every

project. Timely communications among the parties are necessary for a successful project.

Development of a project financing and insurance program - The owner must be able to pay
for the work and make sure the proper insurance coverage’s are in place before construction
begins.

Establishment of allowances - For items of work that are not clearly defined at the start of the
work, the owner must establish cost allowances to be included in the construction contract.

Construction Phase

Execution of the construction contract - Before work can begin, the contract with the
contractor must be executed. In addition, the contractor should provide his bonds and evidence of
insurance before mobilizing on the site. (If required)

Approval of the construction schedule - The contractor should provide a comprehensive

construction schedule soon after execution of the contract. It is the owner's responsibility to not
only review and approve the schedule, but also to monitor the schedule during construction and
to require periodic updates from the contractor.

Reconciliation of allowances - In order not to impede the progress of the work, the owner must
finalize the scope of the work for each cost allowance and provide a change order to the
contractor reconciling each allowance as quickly as possible.

Inspection and testing of the work - The designer and contractor have limited responsibility to
inspect and approve the work as its being completed. It is the owner's responsibility to
continuously and comprehensively inspect the work to insure compliance with the contract
documents.

Project safety - The owner is responsible to insure that the contractor has a safety plan in place
at the site.

Approval of changes - Designers do not warrant that their plans will be perfect. Conflicts in the
plans may arise which will require change orders to the construction contract. It is the owner's
responsibility to provide these change orders and to fund the cost of the changes. In addition, the

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owner's program may change during the construction, which may affect the design. Prompt
preparation and execution of change orders is necessary to keep the project on schedule.

Approval of colors and products - The contractor will ask the owner to make final decisions on
colors, materials, and other design matters. Approval of these colors is very crucial to the
outcome of the scheduled end date.

Monitoring subcontractors' and suppliers' payments – In order to protect himself and to

protect his rights under the contractor's bonds, the owner must have a program that enables him
to insure that all subcontractors and suppliers are being paid in a timely manner by the
contractor. (Lien waivers)

Resolution of disputes - Differences of opinion will occur from time to time on every project. It
is the owner's responsibility, and to his benefit, to resolve them squickly.

Adjustment and administration of property insurance claims - In the event that the project
suffers a casualty loss covered by property insurance, sometimes referred to as "builder's risk
insurance", then it is the owner's responsibility to promptly administer the adjustment of the
claim on behalf of all the covered parties.

Procurement and installation of FF (Furniture and Fixtures) &E(Equipents) - As stated

above, this function must be administered in a timely manner by the owner, if the final product is
to be functional.

Development of an operations and maintenance staff - Upon substantial completion of the

project, the contractor will turn over to the owner the responsibility for operating and
maintaining the facility. The owner needs to have a staff in place prior to this event.

Coordination of separate contractors - Sometimes the owner decides to have more than one
prime contractor involved in the project. Specialty contractors are a good example, such as
kitchen equipment contractors or data processing contractors. It is the owner's responsibility - not
the contractor's - to coordinate the various prime contractors on the site. If these contractors are
part of main contract the general contractor will coordinate these contractors.

Conduct project meetings - A system of periodic management meetings needs to be established

at both the staff and executive levels. Agendas and minutes need to be prepared by the owner for
these meetings, if they are to have value.

Acceptance of the work- Once the work is completed, only the owner has the authority to
accept it from the contractor.

Establishment of a warranty program- Since the owner is the beneficiary of the construction
and manufacturers' warranties, the owner must set up a program to manage and administer these
warranties.

Post construction Phase

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Creation of "as built' records - The availability of a complete "as built" set of plans will be
invaluable in the future for remodeling, additions, and repairs. They are also beneficial if the
building is sold to another owner.

Administration of the warranty program - Someone needs to oversee the warranty program
after the building is finished. In the context of Nepal DLP(Defect Liability Period) is about one
year after hand over the project to client.

Determination that everyone was paid - In order to keep the property free of liens after
completion of the construction phase, the owner must insure himself that the contractor has been
paid in full and has provided final lien releases.

Facility operations and maintenance - In order to protect the investment made in the building,
the owner must have a comprehensive operations and maintenance program.

2.1.1 The Consultants

THE CONSULTANT

An individual engineer/architect or an independent professional organization or practicing

consulting firm or a government entity or in-house engineer/architect is known as
Professionalism Consultant. The following roles contribute by the consultant:

Design

The design stage contains a lot of steps: programming and feasibility, schematic design, design
development, and contract documents. It is the responsibility of the design team to ensure that
the design meets all building codes and regulations. It is during the design stage that the bidding
process takes place.

Programming and feasibility: The needs, goals, and objectives must be determined for the
building. Decisions must be made on the building size, number of rooms, how the space will be
used, and who will be using the space. This must all be considered to begin the actual designing
of the building.

Schematic design: Schematic designs are sketches used to identify spaces, shapes, and
patterns. Materials, sizes, colors, and textures must be considered in the sketches.

Design development (DD): This step requires research and investigation into what
materials and equipment will be used as well as their cost.

Contract documents (CDs): Contract documents are the final drawings and specifications
of the construction project. They are used by contractors to determine their bid while builders use
them for the construction process. Contract documents can also be called working drawings.

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Pre-construction

The pre-construction stage begins when the owner gives a notice to proceed to the contractor that
they have chosen through the bidding process. A notice to proceed is when the owner gives
permission to the contractor to begin their work on the project. The first step is to assign the
project team which includes the project manager (PM), contract administrator, superintendent,
and field engineer.

Project manager: The project manager is in charge of the project team.

Contract administrator: The contract administrator assists the project manager as well as
the superintendent with the details of the construction contract.

Superintendent: It is the superintendent's job to make sure everything is on schedule

including flow of materials, deliveries, and equipment. They are also in charge of coordinating
on-site construction activities.

Field engineer: A field engineer is considered an entry-level position and is responsible

for paperwork.

During the pre-construction stage, a site investigation must take place. A site
investigation takes place to discover if any steps need to be implemented on the job site. This is
in order to get the site ready before the actual construction begins. This also includes any
unforeseen conditions such as historical artifacts or environment problems. A soil test must be
done to determine if the soil is in good condition to be built upon.

Pre-tender stage

 Design - Research and investigation for design

 Be responsible for his design, in case of professional negligence
 Prepare Cost estimate at different stages
 Help the client in contractor selection procedures
 Prepare specification, drawings and tender documents
 Appraise the client all pros and cons of the project
 Impress the client and obtain faith and be faithful
 Have expert knowledge in quality and workmanship requirements
 Produce alternative solutions with cost analysis
 Acquire knowledge about new products and materials

Construction

The construction stage begins with a pre-construction meeting brought together by the
superintendent. The pre-construction meeting is meant to make decisions dealing with work

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hours, material storage, quality control, and site access. The next step is to move everything onto
the construction site and set it all up.

At this stage, construction monitoring and supervision is of great importance to ensure

that a project is completed on time and on budget, while meeting all relevant regulations and
quality standards.

Contractor progress payment schedule

A Contractor progress payment schedule is a schedule of when (according to project milestones

or specified dates) contractors and suppliers will be paid for the current progress of installed
work.

Progress payments are partial payments for work completed during a portion, usually a
month, during a construction period. Progress payments are made to general contractors,
subcontractors, and suppliers as construction projects progress. Payments are typically made on a
monthly basis but could be modified to meet certain milestones. Progress payments are an
important part of contract administration for the contractor. Proper preparation of the information
necessary for payment processing can help the contractor financially complete the project.

Owner occupancy

Once the owner moves into the building, a warranty period begins. This is to ensure that all
materials, equipment, and quality meet the expectations of the owner that are included within the
contract.

Construction stage

 Has no authority to relieve the contractor of any of his duties and responsibilities, nor to
involve the employer in any unauthorized-additional payment.
 Supervise the daily work activities
 Ensure that the work is executed as per drawings and specification
 Demonstrate realistic and professional judgement in technical matters
 Cost and quality control
 Issue instructions to bring essential changes
 Final/running bill checking and recommend for payment
 Keep the client informed about changes and get consent or approval as required
 Interpret the contract in case of any disputes
 Monitor work progress and update schedule
 Study and recommend time extension
 Issue completion certificate and maintenance certificate on completion of works

2.1.2 The Contractors

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The Contractor – Roles and Responsibilities

1. Introduction

Nepal is a Land locked country sandwiched between large countries of the world, the China in
north and the India in East, South and Western sides. Nepal have immense biodiversity and
unharnessed natural resources storage in spanning on the four physiographic zone from north to
south are High Himalayan region constituent of snowed mountain including worlds’ highest pick
Mount Everest is located, High and mid hill region, siwalik region and the indo-gangaitic plain
of Terai region. It has diverse bio-diversity and huge natural resources with flora and founa.
Need to be harnessed for the welfare of her people. It has 6000 rivers and rivulet with 84,000
Mwtt of hydropower potential of 42,000 Mwtt is the economically viable. Till date
approximately 0.7 percent (500 Mwtt) only has been harnessed till date. Similarly there are lots
of scopes in Irrigation, Highway, Water supply and Sanitation, Airports, Railways construction
etc.

Investments on large scale infrastructures are critical to enable a country like Nepal to
achieve long term growth and sustainable poverty reduction. It played an important role in
enabling the poor to participate in the growth process. Access to education and health which are
also the indicators of economic development, can be vastly improved through infrastructures
construction like better roads, electricity, irrigation, communications, water supply and sanitation
services and the better access to markets, supplies chains, required maneuver in agricultural and
livestock sector.

So for infrastructure construction and development in the country, emergence of well

organized construction company is a vital. The Nepalese contractors can play a vital role to uplift
the socio economic status of her people by constructing infrastructures and supporting the
country in development works.

The Contractor, is an organization or an individual that contracts with another

organization or an individual (the owner/client/employer) for the construction of a building,
highway, Irrigation canal and structures and hydropower Structures or any other physical
infrastructures and facilities as well. The general contractor is a manager, and possibly a
tradesman, employed by the employer on the advice of the architect or the engineer or the client
him/herself if acting as the manager.

During the period Nepalese contractors have been able to develop their management
skill, improve working capacity, financial and technical capabilities, and acquired suitable Plant
and construction equipments. As a result they have been able to compete and participate in mega
construction project within and outside the country.

The role of general contractors is for the overall coordination of the project
implementation. A general contractor must first assess the project-specific documents (referred
to as Bid, BoQ, proposal or tender documents). Prior to biding for any construction works the
contractor needs to do a site visit for understanding of the proposed project and then assessment
of the accurate job requirement and cost estimation.

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 Depending on the project delivery method, the contractor will submit a fixed price
proposal or bid, cost plus price or an estimate. The general contractor considers the cost of home
office overhead, manpower, general conditions, materials and equipment as well as the cost of
labor to provide the employer with a price for the construction of the proposed project.

The Contractor is responsible for providing all of the material, labor, Plant, equipment
and tools and services necessary for the quality construction of projects in time. The general
contractor can hire specialized subcontractors to perform all or portions of the construction work,
if required.

Responsibilities may include applying for building permits, securing the property,
providing temporary utilities on site, Procurement of materials and services, managing personnel
on site, providing site surveying and engineering, disposing or recycling of construction waste,
monitoring work schedules and cash flows, and maintaining accurate records and handover the
project to the employer in stipulated time. Implementing and monitoring of the health, safety and
environmental protection measures. For the successfully completion of roles and responsibility
the contractor have to seriously follow the contract Management.

2. Contract Management

The Contract Management is the professional practices solutions that are put in place to help
with the design, implementation, and support of Construction works. Enterprises that include
entities such as for profit, non-profit, and government and semi government organizations, often
establish and practice Contract Management in support of agreements that are made with
vendors, partners, customers and other key stakeholders.

The Construction Management is a challenging Work. So the proper Construction Plan and
appropriate use of construction technology is the only way out to make the Job Successfully
Completed in time with Quality as anticipated.

In fact construction management is games of 5 ‘M’ which are mentioned as follows:

1M - Management

2M - Man Power

3M - Materials

4M - Machine

5M – Money

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The above five factors are considered as equal priority, which is the vital requirement of
Construction project management. And are the main issues which need to be emphasized for the
successfully fulfillment of Roles and Responsibility.

ensuring records retention of contracts, Planning of various stages of contract administration,

executing the contracts, ensuring support for the contracts, and governing the activities that are
part of Contract Management include but are not limited to things like assigning ownership and
accountability for contracts, designing the structure of contracts, reviewing contracts, signing the
contracts, procurement of services and materials, filing the contracts, all such activities for
quality and adherence to such contracts. Basically following steps are there for the accurate
completion of work assigned to the contractors: (1) Contractor’s Head Office Management (2)
Pre construction works Management (3) Construction Stage works Management,(4) Post
Construction Management..A short description of each of the steps is as mentioned below:

2.1 Contractor’s Head Office Management

Running and management of contractor’s Head office will enhance for the project marketing and
successfully completion of the assigned tasks, which may be included as, all the data sheets and
information of the completed assigned works will be available easily. Systematic office
management is always the major plus point for the efficiency improvement of the Contractor. So
that creditability and trustworthiness are enhanced. Experienced chain of procurement of goods
and services, experience Human Resources Management, if office is equipped with well reputed
design team then the contractor can be able to reduce the project cost with ample justification.
The well equipped office with High configuration Information Technology (IT) and
communication department well equipped Management Information System (MIS), softwares
like AutoCAD, GIS and various other engineering, Management, Accounting application
softwares may be the additional advantages for the efficient office management.

2.2 Pre construction works Management

The planning is thinking ahead of an operation to be performed. Planning is a function of

deciding what has to be done, how, by whom, by when and with what i.e. doing the job in mind.
After award of the contract first of all need to look upon proper planning for different aspects of
project execution. Planning process is same for small and bigger companies but more formal
within larger organization, because of a need to record decision. The component of planning
comprises of division of responsibilities among the parties concerned, doing engineering plan,
doing procurement plan, logistic and material control planning, doing quality control plan,
construction planning, financial plan, commissioning and startup plan.

In the planning stage need to study the tender documents thoroughly, verify/ workout quantities
of work, investigate availability of the materials, labor, machine and other facilities like-
maintenance, servicing , testing etc, decision to be made for the method of work execution
whether manual or through equipment. Some of the imminent steps which are to be taken care in
pre-tender stage of planning and component of planning and details of planning are mentioned
below in tables 2.1, 2.2 and 2.3 below:

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2.2.1. Pre-tender Planning

Some of the works to be carried out by the contractor before the tender submissions are the
carefully study of the Tender Document, visit to the Proposed Project sites, identify possible
sources of Manpower, procurement of construction Materials etc. details of the pre-tender
planning are presented below in table 2.1:

Table 2.1 Pre-tender Planning

Sno Description of Pre-tender Planning
1 Study of tender documents
2 Investigate availability of materials, labor, machine and other facilities like-
maintenance, servicing, testing etc
3 Decide method of execution – labor or equipment
4 Decide amount of loading in the bids
5 Prepare responsive bid
6 Contract planning
7 Study method of construction/ constructability
8 Verify/workout quantities and compare cost from different sources
9 Workout requirements and placement of construction labor and other staff
10 Requirement of machine and equipment, maintenance and servicing
11 Planning for camp facilities, access, accommodations, drinking water,
electricity, phone etc. and/or for health, environment and safety hazards.
12 Study of interdependence of different items of work – sequence.
13 Finalize work program after obtaining all required pre-information for
planning.
14 Set appropriate date of project commissioning and handover to the client.
15 Proper study of tender documents
16 Site visit and verification
17 Unit price and balance loading
18 Attend pre-tender meeting
19 Inform the client/consultant any discrepancies in the design, BOQ and
investigation reports
20 Submit a responsive tender
21 Proper assessment of self-capability
22 Submit a responsive tender

2.3. Construction Stage works Management

During construction stage works management, major roles and responsibility of the contractors
are to successfully implementation and completion of the project as per the specification and
fullest satisfaction of the employer. During this stage Planning is to be done first of all and then
Work execution is continued so, the contractor needs to follow following steps:

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 2.3.1. Details of Planning during construction stage

The details of planning aspects are as mentioned below in table 2.2:

Table 2.2: Details of Planning during construction phase

Sno Details of Planning
1. Construction planning
1.1 Faculty turnover sequence
1.2 Temporary facilities, offices, warehousing, etc.
1.3 Tool and equipment requirements
1.4 Labor availability and productivity
1.5 Camp requirements
1.6 Work week and productivity impact
1.7 Climatic affects on field work
1.8 Field engineering assistance required
1.9 Extent of subcontracting
1.10 Field organization and staffing
2. Procurement planning
2.1 Procurement sources (equipment-materials)
2.2 Home office vs. field procurement
2.3 Long lead time items
2.4 Expediting
2.5 Logistical planning
3. Engineering planning
3.1 Source of technology
3.2 Codes, specifications, and standards to be utilized
3.3 Utilization of consultants
3.4 Early work
3.5 Requisitioning priorities
3.6 Drawing priorities
3.7 Vendor data requirements
3.8 Utilization of scale models
3.9 Manpower requirements
3.10 Approval requirements
3.11 Organization and staffing
3.12 Utilization of prefabricated modules
4. Quality control planning
4.1 Audit of design and equipment for conformance to specifications
4.2 Checking of calculations and drawings
4.3 Shop inspection of equipment and fabricated items
4.4 Certification of materials
4.5 Certification of welding procedures
4.6 Receiving and inspection of equipment and materials
4.7 Job site storage and environmental protection of equipment and materials

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 4.8 Construction inspection
5 Financial planning
5.1 Cash flow requirements
5.2 Progress payments and billing frequency
5.3 Impact of financial sources

2.3.2. Details of execution of works during construction stage

During the execution of the works following measures to be adopted:

Table 2.3: details of works execution during construction stage

Sno Details of work execution during construction stage
1 Execute construction as per drawings, specification and instruction of the engineer
2 Be responsible for the adequacy, stability, environment, health and safety of all site
operations and methods of construction.
3 Execute temporary works as necessary
4 Keep proper records related to construction – site diary
5 Insurance of the work and people involved in construction
6 Purchase management of goods, services and materials
7 Maintain very close coordination and communication with client. Inform the client,
through consultant, about any unexpected site conditions and any extra work that has cost
implication
8 Inform the delays and details of time extension required
9 Subcontracting – get approval from the client/consultant
10 Inform the engineer, if his experience shows the contrary to what has been designed and
instructed. Inform about foreseeable risk to the engineer
11 Prepare invoices and facilitate engineer in its checking
12 Update schedule of work, prepare revised schedule to ensure timely completion
13 Take appropriate steps on engineer’s comment of too slow rate of work progress
14 Maintenance of work during defect liability period

2.4 Post Construction stage Management

After Completion of the construction work. Here in this stage planning to handover and work
formulation of coming one year of defect liability period is needed to be done. The works
completed is commissioned, job closeout and handed over to the client. And then defect liability
period is generally for one year. During post construction liability, the roles and responsibility of
the contractor is to repair and re-construct the works of the defects caused during that period.
And then final payment, work completion certificate, retention money, other amount are to be
obtained from the client.

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2.4.1. Commission Plan

During this stage of plan preparation work completed is handed over to the client with
commission and testing. Details of commission plan is mentioned in table 2.4

Table no: 2.4: Commissioning plan

Sno Details of commission plan
1 Pre-operational checkout and turnover
2 Commissioning operations
3 Initial operations
4 Performance testing

2.4.2. Job closeout and handing over

During this phase of post construction stage of work execution all the responsibility is over and
then project closeout phase is over. Details of steps of this phase is presented in table 2.5 below.

Table no: 2.5: Job closeout and handing over phase

Sno Job closeout and handing over phase
1 As built drawings
2 Client-required manuals and records
3 Record retention
4 Final job report
5 Release of retention

3. The Roles and Responsibility of Contractor as per the various works procurement
documents.

There are various documents for the procurement of works. Generally multilateral and bilateral
donors have prepared the works procurements for the project financed by them, the World Bank,
the Asian Development Bank, DFID, USAID, JICA, GON etc. The FIDIC (The abbreviation
FIDIC stands for Federation Internationale Des Ingeniers- Conseils and in English- it is the
“International Federation of (Independent) consulting Engineers”) The Standard Conditions of
Contract that are used in the International Market are typically based on the FIDIC contract.

General principles of Fourth Edition of FIDIC Document:

 The role of Engineer has been maintained.

 The role of Employer has been made more visible. Where increases in cost or extension
of time are to be determined by the Engineer, he has an obligation to consult with both
the Employer and the Contractor before making his determinations.

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  Every endeavor has been made to maintain the overall balance of rights and obligation
between the two parties of the contract.
 Procedures have been set out in greater detail and in an action oriented way.
 Greater recognition has been made of the fact that some design of permanent work is, on
occasion, made the responsibility of the Contractor.

Fig 3.1 FIDIC Contract System

EMPLOYER

(Construction Contract)
(Consultancy Agreement

(Report, Notice, request)

CONTRACTOR
CONSULTANT

(Supervision, Notice, Instruction,

Determination, Approval)

2) Fig 3.2 Two Actors System (e.g. NCB, system)

(Consultancy Agreement)

EMPLOYER CONSULTANT

Report

Construction
(Supervision, Instruction,
Contract
Determination, Approval)

CONTRACTOR
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The Contractor Roles and Responsibility as per the FIDIC Contract

The Contractor will execute the works taking full responsibility of quality, timely completion
and safety of the work. They will set out the work, construct the work, carryout tests, care of
works, make good and harmonious relations with the Client and the Engineers as well, rectify the
defects, insure for the workmen, work and materials, insure the equipment, insure for third party
liabilities, take responsibility for the health and safety of the worker, maintain specification,
complete the work, conduct tests on work and hand over the project. After handing over, the
Contractor is also responsible for maintenance of defects during defects liability period. All the
contract clauses somehow or other, relate with the Contractor the Roles and responsibility of
contractors are mentioned in the following Clauses of the FIDIC Document.

8.1, 8.2, 9.1, 10.1, 10.2, 10.3, 11.1, 14.4, 15.1, 16.1, 16.2, 17.1, 32.1 41.1, 42.1, 43.1, 48.3, 49.1,
49.2, 49.3, 49.4, 50.1, 54.1, 54.2, 54.3, 55.1, 56.1, 59.2,63,1,63.2.

Role of Various Parties in a Project

2.1.1 The Sub Contractors

2.1.2 The Labor suppliers
2.1.3 The Material Suppliers
2.1.4 The transporters
2.1.5 The Clearing and Forward Agents
2.1.6 The insurance Companies
2.1.7 The Environmental Activists
2.1.8 The Local Government
2.1.9 The Journalists
2.1.10 The Political Parties
2.1.11 The User Communities

Projects depend on suppliers for procurement of equipment, materials, services and labour.
Projects operate within the society. They satisfy societal needs. Social factors influence the
practices and activities of projects. The policicies,attitudes and facilities by government help or
constrain projects.Here,role of each stakeholder is described separately.

Owner
Sub-Contractor Transporters
Consultant
Clearing &
Labor Suppliers Forward Agents
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 Project

Material Suppliers Environmental

Activist

Political Parties Insurer

User community

Local Government Journalists

Role of Suppliers

As the name suggests, suppliers provide all the materials, equipments, labours and services
needed for various projects. The term ‘supplier’ encompasses a very diverse range of roles. As
such, their roles vary from project to project. The best suppliers are reliable and efficient, and as
a result, they have great relationships with their clients. Many construction companies
consistently use the same suppliers for these reasons. While many suppliers cater exclusively to
the commercial and trade industries, some also work on residential projects. The role of a
material/equipment supplier can revolve around material/equipment.

Role of material/equipment/service Suppliers

Pre-tender/contracting/procurement Stage

Proper study of tender documents

The Bidder (supplier) shall examine all instructions, forms, terms, and specifications in the
Bidding Document

Site visit and verification

The bidder shall visit and examine the Site and obtain all information that may be necessary for
preparing the Bid and entering into a contract for the supply of goods and related services at
his/her own responsibility and risk,

Contact the Purchaser for clarification

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A prospective Bidder requiring any clarification of the Bidding Document shall contact the
Purchaser in writing at the Purchaser’s address indicated in the BDS/Invitation for bids.

Attend pre-bid meeting

The supplier shall attend at pre bid meeting held as mentioned in the invitation for bid and may
ask for any clarification.

Preparation of bids

Bidders shall prepare bid by filling out the forms completely and without alterations one(1)
original and number of copies. All appendices to bid are to be properly completed and signed.
No alteration is to made in the letters of price bids nor in the appendices thereto. The bid shall
contain no alterations, omissions, or additions except to comply with instructions issued by the
employer. Bidders shall bear all expenses incurred in the preparation and delivery of bids

Submit a responsive bid

Bid submission form and price schedule duly filled in and signed. The bidders fulfills the
eligibility criteria and avail the bid security or declaration The bid confirms to all the essential
terms and conditions of bidding document without material deviations. The bid is generally in
order. The Bidder shall quote any unconditional discounts and the methodology for their
application in the Bid Submission Sheet.

Modification and withdrawl of bid

Any bidder may modify, substitute or withdraw his bid prior to the deadline for submission of
bids

Assist in the examination, evaluation and comparison of bids

To assist in the examination, evaluation and comparison of bids, the employer may at his
discretion, ask any bidder for clarification of his bid including breakdowns of the bid price as per
the employer requirement. The request for clarification and the response shall be in writing but
no change in the price or substance of the bid shall be sough offered or permitted except as
required to confirm. The bidder shall furnish a list of users who had purchased same/similar
goods/equipment in last 3 years, and number of equipment sold to them, the contract amount.
They will be used as references to check the performance of the offered model, if necessary.

Valid/Authorized signature

If any amendment such as interlineations, erasures, or overwriting shall be signed by a person

duly authorized to sign on behalf of the bidder.

Timely contract agreement

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The successful bidders shall furnish the required performance security to the employer and sign
the contract agreement. Timely issuance of letter of credit and issuance of various guarantees to
foreign suppliers.

Details of the suppliers

Bidder that does not conduct business within Nepal shall submit evidence that it will be
represented by an Agent in the country equipped and able to carry out the Supplier’s
maintenance, repair and spare parts-stocking obligations prescribed in the Conditions of Contract
and/or Technical Specifications.

Executive/implementation Stage

Supplier play an important role in implementation.

• The bidders shall deliver Goods specified in the List of Goods are required to be within
the acceptable time range (after the earliest and before the final date, both dates inclusive)
specified in Delivery Schedule. No credit will be given to deliveries before the earliest date, and
bids offering delivery after the final date.

• Standard for workmanship, process, material, and equipment, as well as references to

brand names or catalogue numbers specified by the Purchaser in the Section V, Schedule of
Supply, are intended to be descriptive only and not restrictive. The Bidder may offer other
standards of quality, brand names, and/or catalogue numbers, provided that it demonstrates, to
the Purchaser’s satisfaction, that the substitutions ensure substantial equivalence or are superior
to those specified in Schedule of Supply.

• Unless otherwise specified in SCC responsibility for arranging transportation of goods

shall be in accordance with the specified Incoterms.

Hence, details of shipping and documents to be furnished by the supplier

• Usually, supplier is to provide all reasonable facilities and assistance including drawing
and data to buyer’s inspectors free of cost during stage inspection and pre dispatch inspection.

• Similary clearance and acceptance of goods by the buyer through such inspection shall
not release the supplier from any warranty or other contractual obligation.

• Except where otherwise stated the supplier shall pay all tonnage and other royalties, rent
and other payments or compensations if any.

• All samples shall be supplied by the supplier at his own cost if the supply thereof clearly
intended by or provided for in the contract.

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• The cost of making any test shall be borne by the supplier if such test is clearly intended
by or provided for in the contract.

• The engineer and any person authorized by him shall at all reasonable times have access
to the site and to all workshops and places where materials or plants are being manufactured,
fabricated and the suppliers shall afford every facility for and every assistance in obtaining the
right to such access.

• Every person who supplies workplace equipment of any kind under a rental, leasing or
similar arrangement must ensure that the equipment complies with the Act and regulations and is
in good condition. The supplier must also maintain the equipment in good condition if this is his
or her responsibility under the rental or leasing arrangement .

• Timely replacement supplies.

• Timely supply of critical equipment.

• Integrated action plan closely involving suppliers and contractors.Inform the delays and
details of time extension.

• Ensure necessary tests are done

Many products need testing to ensure they are safe and free of faults and consistently meet any
mandatory standards that apply. If you are supplying products covered by mandatory standards
or bans, every item must comply. If you claim that all your goods comply, you must be able to
support this with evidence. Having an effective compliance program helps you to gather this
evidence.

While you can visually check some safety aspects, performance and strength requirements need
qualified testers with the right equipment. This is usually the only way suppliers can know
whether their products meet safety standards.

• Be aware of product liability laws

If consumers suffer serious injury or death from problems with the products, the supplier could
be liable under the product liability provisions of the Consumer Law or at common law.

Others role

• The supplier shall adhere to the highest standard of ethics during the procurement and
execution of contract.

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• The supplier should not involve in collusive practice among bidders before or after
submission of bids for distribution of works among bidders or fixing artificial/uncompetitive bid
price with an intention to deprive the employer the benefit of open competitive bid price.

Role of Labor Suppliers

Confidence in a supplier's ability to deliver labor that will satisfy the employer's needs.
Achievable through interactive relationship between the employer and the supplier, it aims at
ensuring the product's 'fit' to the employer’s requirements with little or no adjustment.

• the supplier to comply, as a minimum, with all applicable local laws and regulations
related to labour and employment including, but not limited to, minimum wage, maximum hours
of work, days of rest, compensation, freedom of association, right to organize and collective
bargaining.

• cooperation during relationship period.

• the supplier to comply with the following principles .

Child Labour

The supplier is expected not to use child labour.

Forced or Compulsory Labour

The supplier is expected not to exact any work or service from any person under the menace of
any penalty.

Freedom of Association

The supplier is expected to recognize the principle of freedom of association and the right to
collective bargaining.

Respect and Dignity

The supplier is expected to treat all employees fairly, ethically, respectfully and with dignity.
The supplier must protect its employees from harassment, bullying and victimization in the
workplace, including all forms of sexual, physical and psychological abuse.

Discrimination

The supplier is expected to offer equal employment opportunities and compensation without any
discrimination, unless such discrimination is based on the inherent requirements of the job or in
the course of a program to promote diversity.

Role of Society

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Civil society is a crucial actor in development co-operation, This is a standard practice also in the
other developed countries where civil society is usually one of the driving forces of development
policy, participating in the policy design and execution.

Social support is the assistance one gets through interpersonal relationship. Social support at
work comes in the form of giving emotional (listening and caring), appraising performance and
behavior and giving advice, information and direct assistance in a task.

Since people’s participation is an important base for sustainable development, user’s groups will
be involved in all activities including identification, formulation, implementation, monitoring
and evaluation and maintenance of the projects. Projects, that may have direct effect on the
people at local level, will be implemented through users group (committee). In such projects,
after defining the role of users group (committee), they will be provided with training on their
authorities and duties before stating the project and after completion of the project, users group
(committee) will be provided with necessary authority to manage regular maintenance of the
project.

Participation implies influence on development decisions, not simply involvement in the

implementation of benefits of a development programme or project understanding the situation,
creating awareness of conditions and constraints. The peoples' participation process requires a
partnership and collaborative mechanism. This needs to be created and continuously
strengthened.

Community planning, implementation and innovation are a critical part of the participatory
process for development.

• Project accountability and responsibility

the participatory process the opportunity for cross-fertilization of ideas for innovation and
creativity. The responsibility to each other increases the commitment. The group camaraderie
provides a strong base for action and risk.

the participatory process leads to better planning and implementation of action plans. The
involvement of a greater number of people through the process opens up greater options for
resources in terms of talents and skills as well as material and financial inputs. Since more
people are involved in the process, there is naturally social pressure for greater monitoring and
accountability.

Active participation in development gives people strength in the critical mass for better
governance. It improves public accountability and ensures greater social and resource equity
amongst the citizens. The participatory process, apart from building confidence, also builds the
capacity of groups to interact and negotiate on more equitable terms and to advocate a conducive
policy environment.

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• Take ownership

As the scheme is identified, conceptualized and requested by the users' themselves, it would
conform to their felt need. Their willingness to achieve long-term success of the scheme will,
therefore, be strong.

When the users have to be engaged in management of project as they participate in supervision
of the expenditure as well as contribute local materials and labor, a sense of ownership will be
generated.

When the users are involved, operation and maintenance will be improved because users are
familiar with the system and its components, they understand technical elements of the
components and their maintenance needs, maintenance needs are quickly reported by increased
sense of responsibility and ownership.

• Local skills and resources

The involvement of beneficiaries would also provide an opportunity to identify and use local
skills. It will also provide opportunities for actively bringing together the communities' human
resource for a productive task. The under utilized work force in the rural areas will be used in
construction activities outside of the harvesting and plantation seasons.

• Selects right level of technology

Only an appropriate technology level would be suitable when users are involved. Use of
complicated technology will often restrict opportunities for effective participation. If the level of
technology is not appropriate, users will not be able to operate and maintain it. Careful judgment
in design and construction will result to fulfill the simple operation and maintenance
requirements of scheme

• Acts as a catalyst for development

In a rural community, a scheme could be an entry point for bringing in other development
activities. When the community manages a scheme successfully, the chances of success of other
development activities are also increased. The villagers would understand partnership concept of
development in which they have to meet labor costs in exchange of the technical support
provided by the implementing agency.

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Users' committees are formed from the mass meeting of the local beneficiaries of the concerned
project.

Users' committee can be a useful link between the technical office and the people. They should
be consulted before designs are prepared so that their valuable inputs can be incorporated into
the designs. Careful consultation with the users' committee during the feasibility stage and site
selection will help to eliminate future problems and bring to light special conditions and
situations at the project site

Besides the practical value of their advice, it is important to involve the users' committee early in
the life of the project so that they feel that the project is truly theirs. Without this feeling, it will
be more difficult to get the necessary cooperation of the users' committees.

Part of the cost of construction is often met through volunteer labor provided by the users'
committee. When this is the case, the site in-charge must maintain contact with the users'
committee to keep them informed of the labor required.

The major role of society in social and environmental issues at the project formulating stage and
partly at the designing and planning stage of the project are:

• Land acquisition and rehabilitation of the land-losers or dispossessed persons (DPs)

• Employment of the “sons of the soil”.

• Plans for handling environmental issues including sociocultural factors and human safety
and health, in the project design, construction and operation.

• Social norms,social custom, attitudes,tradition.

Social norms affect labor time.

• Social behavior

Proper conduct at gatherings is dictated by local norms.

• Social culture

Role of Local Governments in a Project

Local governance is a set of institutions, mechanisms and processes through which citizens can
express their interests and needs, mediate differences, and exercise their rights and obligations at
local levels. They have significant roles in bringing local actors together to build a common
vision of how to respond to concerns raised in a coordinated way. Local Government is to bring
government to the local communities so that the local people can participate fully in the process
of development. Village Development Committee, Municipality and District Development
Committee are the local governments.

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Local governments usually responsible for improving the welfare of their residents. This include
function such as the following installations and operations of social welfare facilities, water
supply and purifications; local development projects.

• make appropriate services and development activities responsive to local wishes and
initiative by devolving and delegating them to local representative bodies;

• facilitate the exercise of democratic self-government close to the local levels of our
society, and to encourage initiative and leadership potential;

• mobilize human and material resources through the involvement of members of the
public in their local development;

• provide a two-way, channel of communication between local communities and

government (both state and federal).

• the role of local government as a developmental intermediary between the grass root
people in the national scheme of things is diminishing at alarming rate.

Role of local governments in construction project which is implemented and selected by

themselves:

• Conception/ Definition phase

Local bodies will identify,select and prioritize the projects on the basis by adapting the
procedures prescribed by local self government act and rules.

• Implementation phase

The selected projects are implemented thrpugh local resources or through grants by users
committee or NGOs or contractors.

• Approval and clearance of the project

The launching agency shall upon the completIon of the project have to be approved and cleared
by concerned body.

• Supervision and monitoring of project

The local body shall constitute a sub committee for Supervision and monitoring of project as in
the act.

Role of local governments in construction project which is implemented by other agencies:

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• Local governments are also responsible for enforcing local laws and other legislation
over which they have authority.

• The local government authority has the important function of encouraging community
cooperation through frequent communication with the various CBOs in its area of authority.

• Local authorities should make it mandatory for the town union and community
development committee officials to present progress report and statements of account to
communities at specified intervals.

• The local government should after ‘putting its house in order’, echo this call to the
communities through the various institutions already mitigating the negative effect of party
politics on government-community participation in development projects or programmes.

Role of DDC

• DDC is to facilitate and co-ordinate the construction program at District level.

• To settle disputes between VDC/Municipality on the subject of ownership of the projects.

• Finally whenever conflicts arise or are incipient, there should be roles, rules, procedures
and precedents for resolving these so that disputes do not impede collective actions and are if
possible prevented.

• Levels of Government-Community Participation in Development Projects

Citizen participation in development projects can be in different forms and at different levels
identifies these forms as follows:

(i) Participation in the decision-making on what the service or project should be;

(ii) Participation in the implementation of a service or project;

(iii) Participation in evaluation of performance of project administrators or quality of

service; and

(iv) Participation in control over how the project or service is directed in the long run.

• Mobilizing human and material resources through the involvement of members of the
public in their local development.

12. Documentation Before Construction start

Documentation is the process of confirmation that some facts are statement is true. It is the

system of recording each and every detail and maintaining it in a well managed way for future

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reference. In construction industry documentation is a vital aspect for all the stakeholders

mainly client, consultant and contractor. Documentation is very necessary in every phases of

project. A well managed documentation before construction can help effectively in every phase

of construction.

Documentation is done in every phases of construction project from the conceptual phase

(project appraisal) to termination phase (handover).

David Ross a construction expert says Documentation is very important in a construction

project because it provides a “memory” of the project. It is the only record of what was

actually happening at any given time during the course of the project. Documentation is the

framework on which a claim is built; without it, there is no evidence to prove a claim and, thus,

little chance of a fair outcome.

Project documents kept on a contemporary basis provide a permanent record which allows the

detailed reconstruction, review, and analysis of events and actions of the project.

It is essential, industry practice, and standard internal corporate policy for construction

companies to maintain a project documentation system. In addition to being a contract

requirement in most large construction projects today, thorough and organized documentation

throughout a project provides the only “memory” of what actually happened on the project.

Documentation is the foundation on which all proposals, disputes, or claims are built. Without

documentation, there is essentially no evidence and, therefore, it is difficult to present a

persuasive case. Documentation is critical to resolving disputes in two ways.

• Documentation provides a contemporaneous record of what was actually happening on

a project at any given time during the course of the project.

• Documentation provides a contemporaneous record of the parties positions regarding

particular events at the time of the event.

Documentation Before construction start- Sahaj Bhattarai (013-1018)

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Page | 2

Documentation before construction start generally consists of the following types of

documents:

• Contracts between the Owner and Contractor

• Contracts between the Owner, Architect, Design Sub-Consultants, Contractor, and

Subcontractors

• Contract Change Orders/Amendments

• Contract drawings, including index and revisions

• Specifications, including general conditions, special conditions, technical specifications,

and revisions

• Architect’s Bulletins (information received from design professionals)

• Addendums

• Construction Schedules:

o Baseline

o Updated

• Purchase orders

• Invoices for materials

• Tender Documents

• Findings of site information discussed on pre bid meeting

• Itemized bid estimates of the successful contractor, including take-off quantities

• Monthly payment requisitions with itemized breakdowns of amounts

• Monthly payments to contractor

• Payments to subcontractors and suppliers

• RFIs (request for information)

• Bid analysis sheet

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• Potential Change Orders / Potential Change Estimate / Potential Change Request

• Change Orders - including all relevant back-up computations, and their status (i.e.

requested, in process, or approved)

• Change Directive

• Progress schedules and reports, including bar charts, CPM diagrams, computer

printouts, and narrative reports with any updating or revisions

• Contractor cost reports

• Construction progress photos

• Correspondence, including memos, notes, letters, and telegrams, and originated by

either party between the contractor and owner, contractor and architect, contractor

and construction manager, contractor and subcontractors or suppliers, and the owner

and the architect

• Notice to Proceed (NTP)

Documentation Before construction start- Sahaj Bhattarai (013-1018)

Page | 3

• Laboratory testing reports

• Procurement records for major items or long-lead items

• For work drawings

• Pre-Bid Meeting Minutes

• Pre-Award Meeting Minutes

• Pre-Construction Meeting Minutes

• Kick off meeting minutes

• Progress Status Meeting Minutes

• Coordination Meeting Minutes

• Correspondence (external)

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• Certificates of insurance from all subcontractors

• Copies of photos and videos of activities during inspection.

• Attendance sheets

Clear communication is vital to the success of a project and written documentation of the

communication process forms the basis for analysis and resolution of disputes when a project

has gone astray.

Project documents before construction kept on a regular basis provide a permanent record

which allows the detailed reconstruction, review, and analysis of events and actions of the

project. It is not practical or possible to bring a building into a courtroom to demonstrate a

defect during construction, but a party to a dispute can bring contemporaneous documents to

demonstrate a point at issue.

Documentation before construction start does not only make the work easy but the proper

coordination with the implementing team and officials and timely flow of information will save

the time in any project. A proper record of any project gives a wide range of solutions for next

similar construction projects.

Construction industry is much diversified field where every project is different than others and

documentation before construction always provides a basis for smooth running and monitoring

of the project. Documentation before construction start should also be followed by

documentation during construction and after construction also.

References:

(a) Class lecture from Prof. Khem Nath Dallakoti, Nepal Engineering College,Center for
Postgraduate Study Balkhu, Kathmandu.

(b) The article from Southeast Real Estate Business written by John A. Jones, P. E. ,John A.
Jones is President and CEO of Dart Engineering, LLC.

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(c) Guidelines for Improving your Skills in Project Proposal Writing , Report Writing and
Report Presentation ,fifth and enlarged edition, Singha Raj Uprety.

(d) Google Search/http://www.hsa.ie/eng/publication.

(e) Google Search/http://www.s-gconstruction.net/sgc_owner_duties.htm.

(f) Project Management in Nepal, Dr. Govind Ram Agrawal

(g) Project Management, A System Approach to Planning, Scheduling, And Controlling, Second
Edition, Harold Kerzner.

1. Dallakoti Khem, 2011, Teaching Materials for M.Sc. Construction management.

2. Procurement of works, NCB, for the construction of Building for National Vigilence
Centre at Singhadurbar, Kathmandu.
3. Kerzner Harold,2004, Project Management A Systems Approach to Planning Scheduling
and Controlling, CBS Publisher and Distributors
4. Kimmons, Robert L and Ioweree, James H, Project Management- areference to
professionals.
5. Chaudhary Sadhan, Project Management
6. Bhattarai Deepak, at the threshold of 21st century
7. Swayer ,John G and Gillott, C. Arthur, The FIDIC Conditions – Digest of contractual
relationships and responsibility
8. Fidic Condition of Contract, GCC and CoC.
9. WB, ADB, JICA document for work procurement.
10. Websites : www. Contractor.com

: www. Duty and responsibility of contractor

:www. Contractors job descriptions

:FCAN Website

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