School of Civil Engineering, College of Engineering

ECM578 CONTRACT ADMINISTRATION

GROUP PROJECT ECM 578

Semester Oct 2021 - Mac 2022

Lecturer (s): Dr. Nur Izzati Ab. Rani & Dr. Mazlina Zaira Mohammad

1.0 Introduction

This group project focuses on analysis and evaluation of contract documentation based on a real-life project
implementation on civil engineering practices. Contract documentation is a written document that defines
the roles, responsibilities and work under the construction contract and legally binding between different
parties. Each group is required to select any real construction project for examples, bridge project, building
project, road project or any other type of construction project. This group project carries 40% of the overall
percentage of assessment for the course. Students must form a group of (5) number of members to carry
out this project. The team members must have at least one male & one female. The detail of tasks to be
carried is outlined in Section 4.0 together with rubrics designed to assess the specified course and learning
outcomes.

2.0 Course Outcomes (CO), Programme Outcomes (PO), Complex Problems (WP) and Knowledge
Profile (WK)

There are three (2) course outcomes (COs) and two (2) programme outcomes (POs) to be addressed by
this project which are mapped to relevant Complex Engineering Problems (WPs) and Knowledge Profiles
(WKs) required to be demonstrated by the students as shown in Table 1.

Table 1: Mapping Course Outcomes (CO) - Programme Outcomes (PO) with Complex Engineering
Problems (WP) and Knowledge Profiles (WK)

Course Outcome Programme Outcome Complex Engineering Knowledge Profiles

Problems Required

CO1: Describe the PO2: Identify, formulate, WP1: In-depth Knowledge - WK3: Engineering
principles and research literature and Cannot be resolved without in- Fundamental - A
concept of contract analyse complex civil depth engineering knowledge systematic, theory-based
administration in Civil
engineering problems at the level of one or more of formulation of engineering
Engineering, the
parties involved and reaching substantiated WK3, WK4, WK5, WK6 or fundamentals required in
types of contracts. conclusions using first WK8 which allows a the engineering discipline.
principles of fundamentals-based, first
mathematics, natural principles analytical approach. WK4: Engineering
sciences and engineering specialist -knowledge that
sciences. WP2: Conflicting provides theoretical
Requirements - Range of frameworks and bodies of
PO3: Design solutions for Conflicting requirement = wide knowledge for the accepted
complex civil engineering & conflicting technical, practice areas in the
CO3: Explain issues problems and design engineering & other issue engineering discipline;
relating to contract systems, components or much is at the forefront of
claims, disputes, processes that meet WP4: Familiarity Issue – the discipline.
modification and specified needs with Involved infrequently
change orders, appropriate consideration encountered issue WK5: Engineering Design
termination, payment for public health and - Knowledge that supports
 procedures and safety, cultural, societal, WP5 – Extent of Applicable engineering design in a
contract close out. and environmental Codes practice area.
considerations. (WK5)
WP6: Extent of Stakeholders WK8 – Research
- diverse groups of Literature
stakeholders with widely
varying needs groups of
stakeholders with widely
varying needs

3.0 Learning Outcomes

Based on the COPO-WP-WK mapping above, the Learning Outcomes to be attained by the students are
as follows:

At the end of this Group Project, the student should be able to:

1. Describe the various parties’ responsibilities towards the construction project performance from the
chosen case study. (CO1-PO2) (C3-C4)
2. Elaborate the conflicting issues relating to contract claims, disputes, modification and change orders,
termination, payment procedures and contract close out and explain on the offer, acceptance,
consideration, intention to create legal relationship, consensus, capacity to contract, legality in the
contract document from the chosen case study. (CO3-PO3) (C5-C6)

3.0 Problem Statement

Construction industry is one of the important contributors in the Malaysian economy. Unfortunately, the
performance of the construction industry in Malaysia is seen unsatisfactory with many of the construction
projects reported with cost overrun, delayed and poor quality. Common causes contributing to poor
performance of construction industry are the complexity and magnitude of the works involved, multiple
contracting parties, poorly prepared and executed contract documents, contradicting requirements,
financial issues, and communication problems. Any one of these factors could lead to time overrun,
increased costs, and a breakdown in the parties’ common objectives to successfully complete the project.
Thus, there is a need for some strategies to be taken by the construction company in achieving good and
successful project performance. Contract administration is a method/act/process of administering (tending)
legally binding agreement between two or more parties from its inception up to its final discharge. Contract
administration involves processes and procedures that companies may implement to manage the
negotiation, execution, performance, modification, and termination of contracts with diverse stakeholders
involved. Hence, contract management and administration during construction life cycle can influence the
project performance.

4.0 Task to be Carried Out

Task 1: Selection of a case study from real life project

Problems arising from construction contracts could be attributable to multiple and diverse parties involved
in the construction works for example the Contractor, Employer, Consultant, Architect, Nominated Sub-
contractor, and third-party contractor. Thus, you are required to:
a) Select of a case study from a real-life project (WP4 – Familiarity Issues) and identify the parties involved
in this project and describe their responsibilities towards the performance of this construction project.
(10 marks)
b) Explain on the advantages and disadvantages of the different types of procurement methods used
(WP5 – Applicable Codes) and analyze the conflicting requirements (WP2-Conflicting Requirements)
based on the extent of the stakeholders or parties’ involvement (WP6 – Stakeholders’ Involvement)
related to technical, engineering, or other issues faced that may influence the project performance. (15
marks)

(CO1-PO2) (C3-C4) (WK3 & WK4) (WP1 & WP2, WP4, WP5, WP6) (25 marks)

Task 2: Evaluation of Contract Documentation based on Identified Issues and Potential

Consequences towards Project Performance and Stakeholders’ Involvement

With so many parties involved (WP6 – Stakeholders’ Involvement), there will be disagreement and
contradicting issues/requirements amongst them (WP2 – Contradicting Requirements). Construction
disputes are common and need to be resolved. If one of the parties to a contract fails to perform as required
by the contract, construction contract can be terminated. Terminating a contract can be complex, and it is
very important that the correct procedures are followed.

Besides that, in any construction project, contract modifications if possible, should be accomplished by
inserting into the contract, as a minimum and avoid creating new clause/policies. Contract modification is
the changes made in the contract which requires changes in the work required during construction through
the change orders (WP5 – Extent of Applicable Codes).

Therefore, you are required to evaluate the relevant clauses on the issues/disputes/contradicting
requirements with potential consequences towards public health and safety, cultural, societal, and
environmental considerations related to the performance of selected project with respect to:

a) contract claims and disputes (5 marks)

b) modification and change orders (5 marks)
c) contract termination (5 marks)

(CO3-PO3) (15 marks) (C5-C6) (WP1 & WP2, WP5, WP6)

Submission of Report
- Format of report is based on creativity to present the task’s answers.
(eg. Newsletter format, Magazine, Pamphlet)
- Section of report
1) Cover
i) Title project
ii) Group Member (Group Class, Name, Student ID)
2) Summary
3) Introduction (Briefly describe the selected project case study, eg. type of the project, type of
contract, project duration, location, project cost, etc.)
4) Task 1
5) Task 2
6) Conclusion
7) References
- Maximum 5 pages
- Name the file according with capital letter to this format. 1st name of group leader _Group Class,
Course code (eg. NUR ATIQAH_7A1_ECM578)

Deadline: Week 12 where softcopy to be submitted via UFUTURE

5.0 Assessment

Assessment is carried out based on the submission of report using a performance criteria matrix designed for this group project as shown below.

ECM 578 CONTRACT ADMINISTRATION

PERFORMANCE CRITERIA (RUBRIC) MATRIX ON ASSESSMENT OF PROJECT
Complex
Engineering
Performance Criteria Problem Description of Performance Criteria
Characteristics/
Taxonomy Level
C3: Application - Ability to select a suitable and relevant real-life project with issues by applying specified knowledge profiles (WK3-
Apply knowledge fundamental, WK6 – Engineering Practice and WK8 – Research Literature-data/information/report/journals etc)
1 2 3 4 5
WP1: In-depth Select irrelevant real- Select a poor but Select an acceptable Select a suitable Select a very
Knowledge - life project (with very relevant real-life and relevant real-life and relevant real- suitable and very
Cannot be resolved familiar issues) project (with familiar project (with frequently life project (with relevant real-life
without in-depth supported by issues) with poor encountered issues) infrequently project (with
Task 1 (a): engineering irrelevant research research literature supported by relevant encountered infrequently
Selection of a case knowledge at the literature research literature issues) supported encountered issues)
study from real life level of one or more by relevant supported by very
project of WK3, WK4, WK5, research literature relevant research
• Identification of WK6 or WK8 which literature
parties involved allows a Ability to identify parties involved in this project and describe their responsibilities towards project performance using
• Application of fundamentals- specified knowledge profiles (WK3-fundamental, WK6 – Engineering Practice and WK8 – Research Literature)
Knowledge Profiles based, first 1 2 3 4 5
principles analytical Lack of explanation Some explanation on Detailed explanation Detailed Detailed explanation
approach. on two (2) different two (2) different on three (3) different explanation on four on more than four (4)
(CO1-PO2) parties involved and parties involved with parties involved with (4) different parties parties involved with
(10 marks) WP2: Familiarity lack of explanation on a few explanations acceptable involved with detail detail explanation on
issues (Infrequently their roles and on their roles and explanation on their explanation on their their roles and
Encountered) responsibilities responsibilities roles and roles and responsibilities
towards the towards the responsibilities responsibilities towards the
performance of the performance of the towards the towards the performance of the
project using only project using only performance of the performance of the project using all
WK3 - fundamental two (2) WKs project using two (2) project using all three WKs
C4: Analyse the WKs three WKs
conflicting Ability to make comparison between the advantages and disadvantages of different types of procurements
Task 1(b): requirements 1 2 3 4 5
• Explanation on the
No explanation on Explain 1 Explain 2 advantages Explain 3 Explain more than 3
advantages and WP2: Conflicting the advantages and advantages and and disadvantages on advantages and advantages/
disadvantages Requirements - disadvantages on the disadvantages on 2 different type of disadvantages on 2 disadvantages on
• Involvement of Range of Conflicting type of procurement the type of procurement methods different e type of the 2 different type of
various parties requirement = wide method procurement method
 involved according & conflicting procurement procurement
to the type of technical, methods methods
procurement engineering & other Ability to elaborate on various conflicting issues due to level of stakeholders’ involvement
method issue 2 4 6 8 10
• Conflicting issues No /irrelevant issue Explanation on only Some elaboration on Detail elaboration Detail elaboration on
by Stakeholders highlighted with poor 1 issue due to low only 2 conflicting on 3 conflicting more than 3
(CO1-PO2) (15 marks) level of involvement level of involvement issues due to some issues due to high conflicting issues
of any stakeholder of 2 stakeholders level of involvement of level of due to high level of
C5-C6/WPs 3 stakeholders involvement of 4 involvement of more
stakeholders than 4 stakeholders
WP2: Conflicting Ability to evaluate of the relevant clauses on contract claims and potential issues/disputes with consideration for
Requirements - public (1) health, (2) safety, (3) cultural, (4) societal, and (5) environmental) related to the performance of selected
Range of Conflicting project
requirement = wide 1 2 3 4 5
Task 2(a): & conflicting Very poor Poor explanation on Adequate evaluation Good evaluation of Detail evaluation on
• Evaluation of the technical, explanation on the the clauses with only on the clauses with on the clauses and the clauses with
clauses and engineering & other clauses with no 1 issue without any 2 potential conflicting potential issues on more than 3 potential
potential issue potential issue conflicting issue on issues on performance the clauses with 3 conflicting issues on
issues/disputes discussed on the performance of of selected project potential conflicting performance of
WP5: Extent of performance of selected project with consideration of issues on selected project with
(CO3-PO3)(5 marks) Applicable Codes selected project only 2 elements performance of consideration of
(Contract) selected project more than 3
Task 2(b): with consideration elements
• Discussion on of 3 elements
WP6: Extent of Ability to elaborate on the issues/disputes/contradicting requirements on modification and change orders involving
conflicting issues
Stakeholders - stakeholders related to project performance
on project
Diverse groups of 1 2 3 4 5
performance
stakeholders with
relating to Very poor Poor explanation on Acceptable Good elaboration Detail elabortion on
widely varying
modification and explanation on the the potential elaboration on the on the potential the potential
needs
change orders potential conflicting conflicting issues potential conflicting conflicting issues conflicting issues
(CO3-PO3)(5 marks) issues (modification (modification and issues (modification (modification and (modification and
and change orders) change orders) on and change orders) on change orders) on change orders)
Task 2(c): on performance and project performance performance of performance of involving that
• Propose solutions involved only 1 and involved only 2 selected project that selected project involved more than 4
to solve the stakeholder stakeholders involved only 3 that involved only 4 stakeholders
issues on contract stakeholders stakeholders
termination (CO3- Ability to propose solutions to solve the identified issues related to contract termination
PO3) 1 2 3 4 5
(5 marks) Lack of elaboration Lack of elaboration Acceptable Good elaboration Detail elaboration on
on the proposal on the proposal with elaboration on the on the proposal the proposal with
having solutions proposal with an with an innovative very innovative
no/unacceptable innovative solution solution solutions
solutions