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Current State and future outlook of the construction administration

practices in Kenya

1.0 Introduction

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Construction contract administration involves closely monitoring the contractperformance to ensure compliance and fulfillment of the contract conditions. A contractadministrator ensures that the end users are satisfied with the product or service beingobtained under the contract. This can include all dealings between the parties privy tothe contract from the time the contract is awarded until the time the work has been

completed and payment finalised.The specific nature and extent of contract administration varies from contract to contract

and the project the contract encompasses. Contract admin starts with developing clear,

concise performance based statements of work, articulating key deliverables and

formulating a plan to benchmark contract performance.

While the legal requirements of the contract are often included in the terms of thecontract, the exercise of skill and judgment is often required to ensure all interests of theparties privy to the contract are safeguarded and protected.

If contract dispute arises during the performance of the contract the contract

administrator must seek cooperative ways to resolve any disputes that may arise duringcontract performance. Often the process for dispute resolution is articulated in the

contract terms which can provide a road map for contract success.

A good contract administration process involves implementing a mechanism to securefeedback at the completion of the contract. One way to do this is to obtain input directlyfrom the customers through the use of customer satisfaction surveys. Adopting acontinual improvement paradigm ensures that future contract performance can benefitfrom skills and experience which has a positive impact on all contracted parties andhelps to improve company bottom lines.

In the past decades, the construction administration system in Kenya has undergone

significant developments from being a system with no regulations in the1950s and 60s, to the traditional contract administration and finally to the emergent of project and construction management development we have today. This paperdiscusses the current State and future outlook of the constructionadministration practices in Kenya

2.0. Contract requirement and essentials in construction contract

administration

The Construction Contract Agreements services requirements in construction contract

consist of:

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Notification of Contract award by Contract Administrator(s)

Assistance in preparation of construction contract Agreement forms for approval by Owner

Preparation and distribution of sets of Contract Documents for execution byparties to the Contract(s)

Receipt, distribution and processing, for Owner's approval, of requiredcertificates of insurance, bonds and similar documents.

Preparation and distribution to Contract(s), on behalf of the Owner.

3.0. Different contract administration mechanism,

participants and stages in construction process.

3.1. SCOPE OF CONSTRUCTION CONTRACT ADMINISTRATION SERVICES

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In the Construction Contract Administration Phase the Owner and the

Administrator/Architect/Project Manager shall provide those services designated in the

Schedule of Designated Services necessary for the administration of the construction

contract as set forth in the General Conditions of the Contract for Construction. These

services include the following:

1.1. Project Administration services consisting of construction contract administrativefunctions including:

ConsultationResearchConferencesCommunicationsTravel timeProgress reportsCoordination of out-of-normal-sequence construction operations

1.2. The Contract Administrator should coordinate all disciplines/document checkingconsisting of construction contract administration activities for:

Coordination between the architectural work and the work of engineering and other involved disciplines for the ProjectReview and checking of documents prepared for the Project.

1.3. Agency Consulting/Review/Approval services during the Bidding or NegotiationsPhase relating to applicable laws, statutes, regulations and codes of regulatingentities relating to the owner's interests before construction begins.

1.4. Owner-supplied Data Coordination services consisting of:

Review and coordination of data furnished for the Project as a responsibilityof the Owner

Assistance in establishing criteria Assistance in obtaining data

1.5. Office Construction Administration services consisting of:

Processing of submittals, including receipt, review of, and appropriate action onShop Drawings, Product Data, Samples and other submittals required by theContract Documents

Distribution of submittals to Owner, Contractor and/or Architect's field representativeas requiredMaintenance of master file of submittalsRelated communications.

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1.6. Construction Field Observations services consisting of visits to the site atintervals appropriate to the stage of construction or as otherwise agreed inwriting to become generally familiar with the progress and quality of the Workand to determine in general if the Work is proceeding in accordance with theContract Documents, and preparing related reports and communications.

1.7. Project Representation services consisting of selection, employment anddirection of:

Full-time Project Representative(s)Part-time Project Representative(s).

1.8. Inspection Coordination services relating to independent inspection and testagencies, consisting of:

Administration and coordination of field testing required by the Contract DocumentsRecommending scope, standards, procedures and frequency of testing andinspections

Arranging for testing and inspection on Owner's behalf Notifying inspection and testing agencies of status Work requiring testing andinspectionEvaluating compliance by testing and inspection agencies with required scope,standards, procedures, and frequencyReview of reports on inspections and tests and notifications to Owner andContractor(s) of observed deficiencies in the Work.

1.9. Supplemental Documents services consisting of:Preparation, reproduction and distribution of supplemental Drawings, Specificationsand interpretations in response to requests for clarification by Contractor(s) or theOwner and as required by construction exigenciesForwarding Owner's instructions and providing guidance to the Contractor(s) on theOwner's behalf relative to changed requirements and schedule revisions.

1.10. Quotation Requests/Change Orders services consisting of:

Preparation, reproduction and distribution of Drawings and Specifications todescribe Work to be added, deleted, or modifiedReview of proposals from Contractor(s) for reasonableness of quantities and costs

of labor and materialsReview and recommendations relative to changes in time for SubstantialCompletionNegotiations with Contractor(s) on Owner's behalf relative to costs of Workproposed to be added, deleted, or modified

Assisting in the preparation of appropriate modifications of the Contract(s) for ConstructionCoordination of communications, approvals, notifications, and record- keeping

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relative to changes in the Work.

1.11. Project Schedule Monitoring services consisting of monitoring the progress of the Contractor(s) relative to established schedules and making status reports toOwner.

1.12. Construction Cost Accounting services consisting of:

Maintenance of records of payments on account of the Contract Sum and allchanges thereto

Evaluation of Applications for Payment and certification thereof Review and evaluation of expense data submitted by the Contractor(s) for Workperformed under cost-plus-fee arrangements.

1.13. Project Closeout services initiated upon notice from the Contractor(s) that theWork or a designated portion thereof which is acceptable to the Owner, is sufficientlycomplete, in accordance with Contractor Documents, to permit occupancy or utilizationfor the use for which it is intended, and consisting of:

A detailed inspection with the Owner's representative for conformity of theWork to the Contract Documents to verify the list submitted by theContractor(s) of items to be completed or correctedDetermination of the amounts to be withheld until final completionSecuring and receipt of consent of surety or sureties, if any, to reduction inor partial release of retainage or the making of final payment(s)Issuance of Certificate(s) of Substantial CompletionInspection(s) upon notice by the Contractor(s) that the Work is ready for final inspection and acceptanceNotification to Owner and Contractor(s) of deficiencies found in follow-upinspection(s), if anyFinal inspection with the Owner's representative to verify final completionof the WorkReceipt and transmittal of warranties, affidavits, receipts, releases andwaivers of lien or bonds indemnifying the Owner against liensSecuring and receipt of consent of surety or sureties, if any, to the makingof final payment(s)Issuance of final Certificate(s) for Payment.

1.14. Disciplines Coordination/Document Checking services consisting of:

Coordination between the architectural work and the work of engineering and other involved disciplines for the Project

Review and checking of documents prepared for use or occupancy of the Project.

1.15. Maintenance and Operational Programming services consisting of:

Assistance in the establishment by the Owner of in-house or contract program(s) of operation and maintenance after project completion

Arranging for and coordinating instructions on operations and maintenance onequipment in conjunction with manufacturers' representatives

Assistance in the preparation of operations and maintenance manual(s) for the

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Owner's use.

4.0.TYPES OF CONSTRUCTION CONTRACTSThere are two primary types of construction contracts: single contracts and multipleprime contracts..

4.1 The Single Contract and Multiple Prime Contracts

The single contract is the most commonly used contract type in kenya. Design planand specifications are prepared by the design professional and become part of thebidding documents. A single contractor is then selected by the Owner/Administrator to perform the work. The single contract is usually the easiest to administer because of its centralization of responsibility, namely, one owner, one contractor,and one construction contract and adminisrator.

With multiple prime contracts, the owner divides a project into two or more partsand then enters into a separate contract for each part. The most frequent use of multiple prime contracts is for phased construction, in which contracts are awardedsequentially for each phase. This type of construction is also referred to as the "fast-track" method. Contracts for parts of the project such as site development, siteexcavation, or foundation work are awarded before the contract for the mainstructural work is awarded. Multiple prime contracts require careful coordinationbecause several contractors are involved, and no single contractor is responsiblefor the entire project.

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4.2. CONTRACT ADMINISTRATION MECHANISM & ARRANGEMENTS

Various types of contract administration mechanisms have evolved in recent years,and these include:

a. Traditional approach.In such a contract the employer contracts with an architect or engineer (inthis case the administrator) to carry out the design. The architect or engineer,acting as the agent of the employer, supervises the construction of thatdesign. The contractor enters into a contract with the employer to build thatdesign.

Traditional approach to construction project also involve separation of designstage from execution of construction on site which form the basis andcommencement of contract administration after bids, award of contract andthe signing of the contract.

b. Management contracting .Here the employer engages the management contractor to partake in theproject at an early stage. Normally an experienced builder, the contractor isemployed not to undertake the work but to manage the process. All the workis subcontracted to works contractors who carry it out.

Construction management may be used with either single or multiple primeconstruction contracts

Contracts involving construction management may also include a guaranteedmaximum price, whereby the construction manager guarantees that the

construction cost will not exceed a specified amount. The guaranteedmaximum price is subject to increase, however, if the project's scope or conditions are changed.

c. Construction management .This differs from management contracting in that the employer enters into adirect contract with each specialist. The employer engages the

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construction manager to act as a ‘consultant’ to coordinate thesecontractors.

d. Project management .In this case, the project manager is employed to coordinate all the work

needed from design to procurement and construction on behalf of theclient.

Multiple prime projects including projects involving multiple buildings,significant site improvements in high-use areas, multiple consultants andvariables or complicated funding require the type of supervision andcoordination that a project manager can provide.

e. Design and Build .In the design-and-build contracting mode (also called the "design-build" or "turnkey" mode), the employer contracts with a single party that designs and

builds the project.

f) BOT (Build, operate and transfer)

g) BOOT (Build, own, operate and transfer)

4.3. CONSTRUCTION TEAM

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Generally, the construction team in Kenya is set through traditional contractadministration approach where a design team is set in the early project period for design work and supervision after appointment of a contractor and commencementof work on site. This team comprise

Employer

Architect/ Designer

Structural and Civil Engineer

Services Engineer ( Mechanical, Electrical and ICT)

Interior Designers

Contractor

In other contract administration mechanisms, there is a requirement to contract withthe following parties, which then become members of the construction team:

Construction Manager – In Construction Management Contracts

Project Manager - In Project Management Contract.

Others contracted by the employer but not necessarily members of the design teaminclude:

Environmental Impact assessors

Surveyors

Property Managers and marketing agents

Valuers

5.0 TRADITIONAL APPROACHES TO CONTRACT ADMINISTRATIONIn such a contract the employer contracts with an architect or engineer (in this casethe administrator) to carry out the design. The architect or engineer, acting as the agentof the employer, supervises the construction of that design. The contractor enters intoa contract with the employer to build that design.

In this procurement protocol, the client has a direct contractual relationship with most of the participants.

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Traditional approach to construction project also involve separation of design stage fromexecution of construction on site which form the basis and commencement of contractadministration after bids, award of contract and the signing of the contract.

Following the acceptance of the successful bid and subsequent award of the contractfor construction, the Owner, Contractor and Administrator (In this case the Architect)

shall schedule and attend the Pre- Construction Meeting. The purpose of the Pre-Construction Meeting is to discuss the specific requirements of the Contract and howthey relate to the commencement and daily operation of the construction project.

5.1 AGENDA FOR PRE-CONSTRUCTION MEETING

1. INTRODUCTIONS

a. Owner, Architect, Engineers, Contractor.

2. COMMUNICATIONS

a. All communications between the Owner and the Contractor shall be in writing, routedthrough the Architect.

b. All responses after request of information from the Owner will be in writing addressedto the Architect.

3. BOND, INSURANCE & NOTICE TO PROCEED

a. Submit for review, Notice of Commencement filed by Owner and issues by the Architect.

b. Approval of Contractor pre-construction documentation is required prior to Owner'sissuance of Notice to Proceed.

4. CONTRACT SIGNING

a) Dates and requirements

5. PLANS AND SPECIFICATIONS

a. Number of sets provided shall be as per the Contract Documents.

b. Any discrepancies in the plans, specifications, or details must be brought to the Architects attention and clarified prior to installation of the work. Assumptions will not justify improper work.

c. All field sets of drawings shall be made available for review by the Architect at alltimes.

6. PROGRESS SCHEDULE / WORK PROGRAMME

a. Submit in approved form.

7. CASH FLOW

b. Submit updated cash flow schedule.

8. MONTHLY SITE MEETINGS / INSPECTIONS

a. Set time, date, and location (on site) and participants.

9. WORKING DRAWINGS

a. Contractor will review, sign and stamp all submittals to the Architect.

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b. Only acceptable sizes, format, colour and quality will be issued.

c. Contractor is responsible for checking that working drawings do not differ frominformation on plans. Deviations from plans or specs shall be brought to the approver'sattention in writing.

d) Working drawings to be distributed to relevant parties

f. NOTICE: Mechanical, Electrical, and Plumbing submittals MUST BE COMPLETE.

g. ALL SUBMITTALS SHALL INCLUDE THE SPECIFICATION REFERENCENUMBER.

10. SUBSTITUTIONS OF MATERIALS

a. Proposed substitutions of materials must be submitted to the Architect for approval.

10. COORDINATION OF THE WORK

a. The Contractor is responsible for coordination of all elements of the work and everyaspect of the coordination of the subcontractors work.

b. Each subcontractor is required to have a competent supervisor in charge of the workat all times.

c. Subcontractors shall verify their work to the Contractor for compliance with thecontract documents, workmanship and completeness.

d. Any minor changes in the work shall be promptly transferred to the record drawings.

11. GENERAL SUPERINTENDENT

a. Contractor shall submit resume and historical data for Site Agents, foremen indifferent trades, Superintendent and Assistant Superintendent.

b. Superintendent shall be on site at all times when work is in progress.

12. FIELD OFFICEa. To be installed by the Contractor.

13. SIGNS

a. To be installed by the Contractor.

14. TEMPORARY UTILITIES

a. Construction water.

b. Temporary toilets.

c. Temporary electricity.

d. Temporary telephone.15. RECORD DRAWINGS - AS BUILTS

a. Must be updated weekly or monthly and must be reviewed at each progress meeting.

b. Record drawings will be supplied to Owner upon completion as per contract.

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16. OBSERVATIONS - SCHEDULE ON SITE

a. The consultants shall be on site at regularly scheduled intervals. For additionalobservation, two day (48 hrs.) notice shall be required.

17. SURVEY

a. Contractor shall engage a professional surveyor or engineer of verify property surveyand building lay-out information shown on drawings and advise Owner and/or Architectof any deviations.

b. Provide a survey of the building foundation locations immediately upon completion of that phase of construction to verify actual building location.

c. Prior to Substantial Completion provide final property survey showing all significantimprovements on the property which have resulted from the construction contract. Verifyfinish floor elevations to Architect in writing per Contract Documents.

18. SOIL, CONCRETE AND OTHER TESTING

a. Testing as required by Contract Documents.

b. Testing lab to provide services at General Contractors request.

c. Additional testing may be requested by the Owner and/or Architect, failed tests paidfor by General Contractor.

d. Testing lab to provide copies of all test reports to Architect and Owner per ContractDocuments.

19. SITE INSTRUCTION BOOK

a. Must be provided on site in relevant copies by the Contractor.

20. STORED MATERIAL POLICY

a. The Owner will pay for stored materials only under the following condition and terms:1. Materials requiring long lead time for ordering.

2. Payment for materials stored and protected at site will take place only upon receipt of complete backup documentation attached to each pay request.

3. The following Pay Request will include proof of payment to suppliers andsubcontractors.

4. Materials stored off-site shall be in an independent bonded warehouse at no cost tothe Owner, with prior approval of Owner.

21. DAILY LOG (CONTRACTOR)

a. The following shall be included in Daily Log:1. Daily activities

2. Problems or potential delays

3. Temperatures, general weather

4. Accidents

5. Meetings and significant decisions

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6. Unusual events (stoppages, emergency actions)

7. Change Orders received, implemented

8. Partial completion

9. Orders/Requests by governing agencies

10. Submit Daily Log weekly to Administrator.

22. ACCESS TO SITE

a. As stipulated in contract documents.

23. AGENCIES HAVING JURISDICTION

a. City, County, State, Health Department, School Board, Utilities (as required).

24. NON-COMPLIANCE NOTICES

a. The Contractor is responsible for verifying that all work complies with the ContractDocuments.

b. Any work observed as defective or non-complying shall be recorded by the Architecton a non-compliance notice to the contractor to rectify the work.

25. FINAL COMPLETION AND PROJECT CLOSE-OUT

a. Final acceptance and project close-out will not take place until all contractrequirements, warranty and close-out documents along with all punch list items havebeen resolved.

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5.2. PRE-CONSTRUCTION DOCUMENTS

Following the Pre-Construction Meeting and prior to beginning construction the Administrator or Owner and/or Architect, will verify that the following documents havebeen properly executed between the Owner and the Contractor:

1. "Notice of Commencement" from Owner

The Notice of Commencement is a legal document which is prepared by the Owner'sattorney or financial lending institution and recorded with the Clerk of the County Court.

A recorded copy must be posted by the Owner at the project site. Financing institutionswill require the filing of a Notice of Commencement as a provision of the loanagreement. The Owner and/or Architect should obtain a photocopy of the Notice of

Commencement for his project files.

The purpose of the Notice of Commencement is to provide at the project site and onpublic record the name of the Owner, Contractor and Surety, so that those wishing to fileNotice to Owner may do so to the appropriate parties. Work performed at the projectsite prior to the Notice of Commencement is not covered by the lien laws.

Although the Notice of Commencement is the Owner's responsibility, the Architectshould so advise the Owner of both the need and benefits of such a document. TheOwner/Contractor Agreement should stipulate that the work shall not commence untilthe Notice of Commencement has been filed.

2. "Notice to Proceed" from the Owner.

Work to be performed under the Owner/Contractor Agreement generally commences onthe date specified in a Notice to Proceed, as established in the General Conditions of the Contract for Construction. The Notice to Proceed should not be issued until thefollowing documents (or copies thereof) have been received and reviewed by the Owner and/or Architect:

a). Evidence to the Contractor of satisfactory financing for the project, or sufficient fundsavailable, by the Owner.

b). Recording of the Notice of Commencement.

c). Issuance of a building permit(s) by the applicable governing authorities.

d). Certificate of Insurance from the Contractor as specified in the Owner/Contractor Agreement.

e). Performance and Payment Bonds.

The Owner and/or Architect shall recognize that the "Date of Commencement" is theofficial date for the start of the construction project and is specifically identified in theNotice to Proceed. The Contractor should not necessarily be expected to commence

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work on the very date the Notice to Proceed is issued unless the Contractor has hadadequate time to mobilize his resources and equipment to the site.

3) Schedules for construction

a) Work programmes

b) Cash Flows

4. Property survey from the Owner.

5. Permits, Licenses and Governmental Approval as required.

6. Insurance coverage and Bonds as required by the Contract Documents

5.3. CONTRACT ADMINISTRATION DURING CONSTRUCTION

A) SITE MEETINGS

Project administrator (Architect) will hold site meetings as provided in the ContractDocuments. The project meeting should be held twice per month and attended by theGeneral Contractor, Owner and the Administrator and other consultants.

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The Administrator will take minutes of the meeting and verify that all persons are copiedwith the minutes. The project meeting is a useful forum for discussions involving Owner requested changes, problems with construction and/or field observations which the

Administrator feels require correction. All items which may directly impact thecompletion of the project should be addressed at this meeting. The minutes should be

signed by the Administrator, the Contractor and seconded by one attendant of themeeting,

B) PROJECT SITE OBSERVATION / INSPECTIONS

The Administrator will schedule field observation visits to the project as required toproperly monitor the progress and quality of the work.

One beneficial arrangement for the site observation is directly prior to the projectmeeting. This schedule allows for the Administrator to verify that directions from theprevious meeting have been followed and also to update himself with the current statusof the project before the present meeting takes place.

Regardless of the schedule for project observation and project meeting, the

Administrator should set a regular time and date for the site observation, this will allowthe Contractor to prepare questions and receive directives crucial to maintainconstruction progress.

At each site visit the Administrator will tour the entire project and note activities in eachbuilding or area of the project. The Administrator will photograph the project at regular intervals, not to exceed one month, and also keep photographic records of allconstruction deficiencies from discovery through the final correction.

The Administrator and other consultants will prepare an Administrator's Field Reporteach time they completes a site inspection. The Field Report will include current statusof the project, work in progress, weather, time, special instructions given the Contractor

and questions from the Contractor.Instruction should be recorded in the site instruction book and verbal instructionconfirmed by the contractor within the time allowed in the contract.

C) PROJECT PHOTOGRAPHY

The Administrator shall take photographs of the project at regular intervals, not toexceed (1) one month. The purpose for project photography is to record the quality of the work for items which are to be covered, provide documentation regarding the proper sequence of the work and to record the progress of the work.

Project photography has proven to be extremely beneficial in dealing with latent defectswhich were not discovered prior to covering and also in improving original design

concepts when re- issue of project drawings is required for another project. The projectphotography shall be included into the Project Log Book and displayed in chronologicalorder.

D) PROJECT SAFETY

The Contractor is responsible for the safety of construction project according to JBC

conditions of contract

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E) PROJECT LOG BOOK

The Administrator will prepare and maintain a Project Log Book for the project whileunder construction. The Project Log Book will contain the following documentation:

i) Working Drawings Review Log

ii) Proposal Request Logiii) Constructions Change Directive/ Instructions Log

iv) Change Order/ Variatons Log

v) Field Report / Site meetings minutes Log

The Administrator will maintain (1) one copy of all documents related to the project inthe Project Log Book for his reference, a second copy of all important documentation,Proposal Requests, Field Reports, Change Orders etc., will be filed in the Central FilingSystem.

The Project Log Book will be divided into the required divisions and separated byindexed tabs. Each section will begin with a summary sheet as required for reference.

The Administrator will list each new document on the appropriate summary sheet to

avoid any duplication of the consecutive numbering system. Project photography may

be included into the Project Log Book if this additional service has been retained.

F) APPLICATION FOR PAYMENT

Different contractual engagement have different terms and conditions as to the mode,conditions and procedure of application and processing of payment (Refer to JBC

Agreement and Condition of Building Works, 1999 Edition)

Important things to note are:

At the beginning of the project the Administrator will establish a set time to meetwith the Contractor and the Owner to review the Application for Payment. Thismeeting may coincide with the weekly Project Meeting. The Administrator willmake a complete site observation prior or after the Application for Paymentreview.

The Contractor shall break down the Schedule of Values into items or quantitiesof work which can quickly and easily be evaluated by the Administrator/QuantitySurveyor when reviewing the work in place. The sole purpose of the breakdownis to avoid disagreements between the Contractor and the Administrator asrelated to quantities of work completed.

The Contractor shall bring to the review meeting all materials required to properlyevaluate the Application for Payment, including stored material invoices andpayment vouchers to review materials on and off site.

If the Administrator and the Contractor cannot agree on the appropriate amountfor the Application for Payment, the Contractor has the right or should be askedto prepare and submit an Application for Payment which is considered correct

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The Contract Document provide provisions and reasons why the Owner mayrecommend withholding payment from the Contractor. If these conditions exist, inwhole or in part, the Administrator must advise the Owner and/or Architect of thesituations and request that he make the recommendation to withhold payment.

The basic premise to follow in processing the Application for Payment is that

enough money remain in the Contract Sum to ensure that the project could becompleted by another Contractor for the remaining funds should the originalContractor default.

Amounts must also be withheld in addition to the normal retainage shoulddeficient work be discovered. The normal retainage specifically covers defectswhich are not observed and may be discovered at a later date. The retainageensures that adequate funds are available to make corrections to these defects.

If an error is discovered in the formal Application for Payment, the entire Application for Payment must be returned to the Contractor accompanied by aletter from the Administrator explaining the reason for rejection and requesting

that the Application for Payment be corrected and resubmitted. When the formal Application for Payment is correct and properly certified by the Administrator/Architect/Quantity Surveyor, the Administrator will ensure that acopy of the Application for Payment is directed to the Central File System.

G) CONSTRUCTION CHANGE DIRECTIVE / VARIATION

The Construction Change Directive is not formally accepted by all Owners.

A Construction Change Directive is a written order prepared by the Architect and signedby the Owner and Architect, directing a change in the work and stating a proposed basisfor adjustment, if any, to the Contract Sum or Contract Time, or both. (ALSO SEE: JBC

Definition)

The Owner may, by issuance of the Construction Change Directive, without invalidatingthe Contract, order changes in the work within the general scope of the Contract,consisting of additions, deletions or other revisions, the Contract Sum and ContractTime being adjusted accordingly.

A Construction Change Directive shall be used in the absence of total agreement onterms of a Change Order. If the Construction Change Directive provides for anadjustment to the Contract Sum, the adjustment shall be based on one of the followingmethods:

1. Mutual acceptance of a lump sum properly itemized and supported by sufficient

substantiating data to permit proper evaluation.

2. Unit prices stated in the Contract Documents or subsequently agreed upon.

3. Cost to be determined in a manner agreed upon by the parties and a mutuallyacceptable fixed or percentage fee.

If none of the above methods for establishing the proper adjustment to the ContractSum are acceptable to the Contractor, the method for adjustment of the Contract Sumshall be determined by Architect/Quantity Surveyor (Administrators) on the basis of

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reasonable expenditures and savings of those performing the work attributable to thechange, including, in the case of an increase to the Contract Sum, a reasonableallowance for overhead and profit. In such a case, the Contractor shall furnish to theOwner and/or Architect, an itemized accounting of the additional costs involved in thechange, together with all substantiating documentation.

H) TESTING

Prior to the commencement of construction (or tender process or filling of tender), a setof Contract Documents should be submitted to the construction testing agency for their review. The testing agency should provide a copy of their current rate schedule for suchtest work and a budget estimate for the particular project for the Administrator (contractor’s) review and information.

After the Owner’s acceptance and approval (depending on budget), the Owner and/or Architect will authorize the testing agency to proceed, in writing, prior to any testingperformed. The Administrator will review the billing with the Owner and/or Architect andtransmit the bill to the Owner for payment (Through the contract). It shall be the

Contractor's responsibility to coordinate and schedule all testing activities for the project.The testing agency shall provide test reports within 48 hours to the Architect, designatedengineering consultants and Contractor, and Owner. The Administrator will actimmediately, in writing, in response to any test reports which indicate that the work doesnot conform to the Contract Documents. Since the Contractor is responsible for theconstruction means and methods, it is the Contractor's responsibility to propose amethod to correct construction deficiencies. It is the Owner and/or Architect'sresponsibility to review and act on the Contractor's proposal.

I) ARCHITECT'S SUPPLEMENTAL INSTRUCTIONS

The Administrator/Architect will issue a supplemental Instruction for any additional work

which is not included in the Contract Documents. The Architect's SupplementalInstruction will be consecutively numbered and recorded in the Project Log Book. The

Administrator/Architect may prepare the Architect's Supplemental Instruction for theOwner's signature.

Sometimes the Architect's Supplemental Instruction shall be forwarded to the Contractor for signature as an acknowledgment that the work described will not change theContract Sum or Contract Time.

J) PROPOSAL REQUESTS

When changes to the Contract Documents are needed or desired, which involve asubstantial change to the Contract Sum or Contract Time, the Administrator will prepare

and issue a Proposal Request.

The Administrator will issue the Proposal Request using the following procedure:

1. The Administrator will prepare a formal Proposal Request using the relevantdocuments, record the Proposal Request in the Project Log and assign it a consecutivenumber.

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2. The Administrator will transmit the Proposal Request to the Contractor (or QuantitySurveyor) with a copy to the Owner.

3. The Contractor (or Quantity Surveyor) shall analyze the Proposal request and providewritten response containing exact cost information including General Contractor'soverhead and profit, and change to the Contract Time (If unit rates are not provided

or available in the contract)

The Contractor's response should be accompanied by cost breakdown informationnecessary for the proper evaluation of the proposed cost, (i.e. itemized subcontractor'squotations, labor and material breakdowns, etc.)

4. The Proposal Request and the Contractor's response will be forwarded to the Owner with a letter from the Architect/Administrator containing recommendations for action onthe part of the Owner. The Owner should be reminded that work is proceeding and thatfailure to execute the Proposal Request expeditiously could increase the cost for theproposed work.

K) CHANGE ORDERS / VARIATION ORDER

When the Owner's review of the Proposal Request is complete and approval for theChange Order obtained, the Administrator shall prepare a Variation Order, as providedin the Contract Documents.

The Change Order will be prepared in (3) three copies and forwarded to the Contractor for signature. The Contractor's signature on the Change order acknowledges that he willcomplete the work described in the Change Order for the stated amount in the ChangeOrder. Additional time, if any, required for the Change Order work will be included in theChange Order.

Failure by the Contractor to request additional days for the Change Order work willprohibit the Contractor from requesting additional time extensions related to the Change

order work at a later date.

Following the Contractor's signature of the Change Order all (3) three copies will bereturned to the Administrator for the Owner and/or Architect's signature and certification.The Change Order will then be transmitted to the Owner for final signature anddistribution. The Owner, Contractor and Owner and/or Architect will receive (1) onesigned and certified copy of the Change Order for their records. The Change Order willthen be included in the next monthly Application for Payment.

Some owner's prefer to pay for Change Orders separate from the Application for Payment. The Contractor may request assurance that the owner has adequate funds topay for the Change Order before executing the work. Financing and lending institutions

generally require that all Change Orders be processed through their office beforeexecuting the work. Contractor's Performance and Payment Bond, and Builder's RiskInsurance must be adjusted to reflect substantial changes to the Contract Sum.

The Contractor is obligated to execute any Change Order authorized by the Owner even if there is a dispute regarding the actual cost of the Change Order work or it'simpact on the Project Schedule. These matters can be resolved by exercising other provisions included in the Contract Documents.

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L) TIME EXTENSIONS

During the course of the construction process the Contractor may request an extensionin the contract time for one of the following reasons ranging from:

Changes or additions to the original scope of the work. (ie. Change Order,Construction Change Directive)

Late materials shipments from suppliers.

Excessive bad weather.

The Administrator shall carefully review the contract for the definition of items whichconstitute a legitimate time extension. For a situation to be considered a legitimateextension in the contract time, it must be absolutely beyond the control the Contractor.

When time extensions are requested because of late material shipments, the contractor should be asked to furnish verification of the original date of which the material order was placed. In most cases, the Contractor or the subcontractor, did not place the order in sufficient time to ensure the delivery of the material on schedule.

The most common request for time extensions is for bad weather. The Contractor musthowever still make allow for a normal amount of bad weather in his schedule.

Time extensions are granted only for abnormally bad weather, defined as weather whichwas both detrimental to construction activities and more frequent than usuallyexperienced during that time of year

Although the Contractor may have experienced abnormally bad weather during onemonth, he may have benefited from several months of abnormally good weather. It isimportant to remember that bad weather during certain phases of construction canaffect the construction schedule more adversely than good weather can benefit theconstruction schedule during other phases.

When reviewing claims for time extensions, the Contractors daily log should bereviewed to verify that the bad weather occurred and that lost time for that period wasactually experience by the Contractor.

Procedure for extension of time (SEE Example of JBC, 1999 Edition)

5.4. ADMINISTRATION DURING POST CONTRACT STAGE

A) SUBSTANTIAL COMPLETION / PRACTICAL COMPLETION

The date of Substantial Completion is defined in the Contract Documents as the datewhich the Owner and/or Architect will certify that the work, or designated portion of thework, may be beneficially occupied or utilized by the Owner for it's intended purpose.The actual date of Substantial Completion will be as noted on the Certificate of Substantial Completion.

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When the Contractor considers that the work, or designated portion of the work aspreviously agreed to by the Owner, is substantially complete, he will prepare and submitto the Administrator a punch list of items which remain to be completed or corrected.The failure of the Contractor to include any items on the list, will in no way alter hisresponsibility to complete or correct these items per the Contract Documents.

Upon receipt of the Contractor's punch list the Administrator will review the list and thecompleted work to determine that the list is both accurate and complete. Items whichrequire correction and/or completion, that are not included in the Contractor's list, shallbe added by the Administrator. The Owner should be advised that the items on thepunch list shall be corrected and/or completed within the time limit set forth in theCertificate of Substantial Completion.

The Contractor shall be advised that the correction and/or completion of all punch listitems shall be conducted in a manner not to adversely effect the Owner's occupancy of the facility.

The term "beneficial occupancy" shall be interpreted to mean that the project or portions

thereof, are complete in nature to allow the Owner to utilize the project or portionsthereof, for their intended usage.

Prior to issuing a Certificate for Substantial Completion, the Administrator should verifythat the following conditions exist:

Written statement from the Contractor that the project, or designated portionthereof, is substantially Complete.Properly executed Consent of Surety for Reduction in Retainage per the ContractDocuments.Contractor's "Punch List" with Administrator's supplementary comments added.Certificate of occupancy from appropriate agency.

The Certificate of Substantial Completion shall be prepared by the Administrator/Architect and certified by the Owner prior to being submitted to the Owner and the Contractor for their written acceptance of the responsibilities assigned them inthe Certificate. The Certificate of Substantial Completion will also establish the datesand responsibilities of the following transitional arrangements which will be requiredbetween the Owner and the Contractor:

The Contractor's time limit for completing the remainder of the work per thePunch List.

Establish the responsibilities of the Owner and Contractor for security,maintenance, utilities, damage to the work and insurance.

Establish date for the commencement of all warranties.B) PROJECT CLOSE-OUT

Following Practical Completion, the Administrator shall receive from the Contractor thefollowing items and materials which shall be collectively referred to as the Close-OutDocuments:

Application for Payment showing all work as completed

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Punch List showing all items identified by the Contractor and Administrator,certified by Contractor as being completed.

Properly executed Consent of Surety for Final Payment.

Application for release of retention monies at this stage.

Application for release if performance bond to the contractor. Record / As built drawings and record specifications as per the Contract

Documents.

Warranty and maintenance information as required by the Contract Documents.

Extra stock materials and special tools as provided in the Contract Documents.

Final Accounting of all variation orders and claims for the project.

In addition to the items listed above, the Close-out Documents shall include proof thatall equipment and maintenance demonstrations required by the Contract Documents,have been successfully completed by the Contractor for the Owner's staff.

Equipment demonstrations shall be scheduled by the Contractor, with the Owner givenadequate notice to ensure that proper personnel may attend.

The Administrator will review, and transmit to the Owner, the Close-out Documentspackage. Should all prerequisites for project close-out be satisfied, the Owner and/or

Architect will then recommend to the Owner in writing that the Owner make FinalPayment to the Contractor.

C) FINAL APPLICATION FOR PAYMENT

The Administrator will advise the Owner when all Close-Out Documents have beenproperly transmitted to the Owner, all required punch list work is completed and allrequirements of the contract have been satisfied per the Contract Documents. The

Administrator, upon consultation with the owner, will recommend that the Owner makeFinal Payment to the Contractor.

D) WARRANTY INSPECTION

The final responsibility of the Administrator is to advise the Owner of the date for theOne -year warranty inspection. The Administrator will advise the Owner in writing of theanniversary date of the warranty and instruct the Owner in how to handle warranty workin the first year of the facilities occupation.

The Owner shall be advised that any warranty work or inspection required will becharged as an additional service on the part of the Administrator. The Owner should beadvised that he may elect to resolve warranty items directly with the Contractor and

avoid additional service charges from the Administrator.The Administrator should also take the opportunity, in the final letter to the Owner, torequest a brief evaluation of the services performed for the Owner through theconstruction project. The information received from the Owner regarding the servicesperformed, should be reviewed with the Administrator/Architect and any improvementsin the Administrator's services should be incorporated into the following projects.

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6.0. PROJECT MANAGEMENT & EMERGING TRENDS

Project management is essentially about managing projects from inception to itscompletion and needs to be discussed in terms of various stages of a project life cycle.

Project nowadays are more complicated than ever before. These projects involve thefollowing trends as seen in recent times:

involve large capital investment

embrace several disciplines

widely dispersed project participants

tighter schedules

stringent quality standards

High speed development in ICT

These factors have influenced project management to take new turn taking advantageof newly development management tools and latest technology.

6.1 Role of a Project Manager

Project management is the overall planning, coordination and control of a project frominception to completion aimed at meeting a client’s requirement in order to produce afunctionally and financially viable project that will be complete on time within authorizedcost and to the required quality standards.

The overall role of project manager in this scenario, is to harmonize the functions of

planning, communication, monitoring and control in order to meet the project’s overallobjectives as defined by the scope, time, cost, quality and client satisfaction.

A project manager main role in construction project implementation includes thefollowing:

Discuss the client requirement concerning space, function, quality and costsincluding life cycle costs.

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Establish and select the the project team after your analysis of your requirements. This will include agreement of terms of appointment, together witha system of communications between the team

Establish a budget covering all elements including fees and construction costs.

Liaise with solicitors on matters relating to the development including the needfor Collateral Warranties, where appropriate, in relation to professionalappointments

Arrange the selection of contractors, advising on methods of procurement andforms of contract, together with tender evaluation and where appropriate, inrelation to professional appointments.

Monitor the consultants progress during the works, together with the work

co-ordinate the activities of any client direct sub contractors into the maincontractors programme.

Arrange the handover of the building after operational testing and full

commissioning, issue of all certificates, guarantees, manuals, drawings etcIn general, the project manager should also take part in the following roles:

Project communication and information flow

Production and use of project information

Intra and inter organizational coordination

6.2 Life cycle of Project Management

The life cycle of a project is divided into phases and then into stages. However, somephases of most projects involve iterations to a greater or lesser degree depending on

the type of project. These phases include:a) Conceptualizing, planning and developing project brief or chapter. b) Implementation: Design details and construction of the projectc) Product transfer to the client or intended customer.

Depending on the size, complexity, risk, sensitivity and so on, these typical phases maybe broken down into sub-phases, and a variety of different stages or iterationsdepending on the project and its type. These will be specific t the project and willdepend on the overall accomplishment strategy.

The assembly process must follow a natural order of events that constitute a

complicated pattern of individual time requirements and restrictive sequentialrelationships among the structure’s many segments.

The main stages for construction project management are:

Market Demands or Perceived needs

Conceptual planning and Feasibility study

Design and Engineering

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Procurement and Construction

Start-up of occupancy

Operation and maintenance

Disposal of facility

6.3 Actors / Roles in a construction project

Basically, project management theories define many different roles in a

construction project, e.g. Building owner, Design and Technology manager,

planning manager, Technical assistant, Contractor, Project Manager, Supply

manager, site manager, other services subcontractor, mechanical services

subcontractor, Fire service subcontractor, Transport subcontractor, Electricalservice subcontractor, etc. All these roles can be joined into only three categories

of actors. Then each actor can develop as many roles as necessary. These main

roles are:

The Owner

The Designer

The Contractor

6.4. Challenges facing project management

Traditional project management practices have evolved over time as the

requirements for managing and controlling construction projects unfolded.

However, with the advances of management techniques and ICT, traditional

contract administration practices have proven to be insufficient in meeting the new

project requirements.

Construction projects are being designed by diverse number of designers, procured

and managed by new partnering strategies, materials are purchased and delivered

through strategic alliance with suppliers, etc. These changes have highlighted anumber of weaknesses in the traditional contract administration practices and thus

facing resistance to change.

Government, industry and client are all seeking to bring about a change in the

construction industry to improve quality, competitiveness and profitability, and

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increase value to client. Where the emphasis has traditionally been on the need to

manage the interface between the project and the client’s organization, it is now

shifting towards the need to manage the flow of activities through the whole life

cycle of the project, concentrating on those activities that actually add value.

In project management, there is the need for project managers to integrate projects’

phases (from conception to final delivery) leading to performance improvement,

and for designers to develop greater understanding of how they can contribute

value in the project process and the supply chain. This pace of change is

introducing a new climate, which has highlighted the limitation of current

construction administration practices in meeting the new requirements.

The changing construction environment is also influenced by other factors, which

are interrelated and independent. Examples of such factors are:

Globalization of marketplace: - Fall of tariff barriers thus rise in mobile

labour

-Global productivity improvement and

advantages In economies of scale, thus more

competition of local firms by foreign firms

on price, quality and delivery and this has

befallen on P. Management.

The economic forces: - Can affect client organization and have an impacton initial objectives of the project.

Increase in project Complexity: - This is reflected by the large number of

specialists contributing to the decision making process.

The need to achieve faster results with the given resources: - This places

severe time pressures on the entire project team.

New procurement practices: - the emergent of new procurement practices

changes the way in which team members interrelate.

e.g. PPP partnering for projects.

Client sophistication: - this has created a buyer market whereby firms

compete for projects at lower margins, and hence

demands better project management practices to

enforce tighter control on the projects’ activities

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7.0. CHANGING REQUIREMENTS OF PROJECTS, MAINLY BECAUSE OF SIZE

AND COMPLEXITY.

A) MANAGING PROFESSIONAL LIABILITY

We are presently witnessing what some people term a " litigation explosion." In thisenvironment, the private practice of a Administrator can be particularly vulnerable,because of the damage that even an unfounded lawsuit can do to reputation andfinancial stability.

What steps can the Administrator take to minimize his risks to litigation? We will beginby looking at the five major areas of the interaction between the Administrator and the

other members of the project team. These are the areas where the Administrator can dothe most to protect himself from liability:

I) PROFESSIONALISM

It take more than an education in engineering science or architecture to be a true Administrator. While "design", of course, means work in a conceptually, visually andstructurally oriented business, "professional" implies a higher level of performance,commitment and knowledge than most people possess.

Design programs at the University level should be restructured to reflect the currentconditions of the design profession and its real opportunities and responsibilities.Students should develop the ability to analyze, synthesize, evaluate, choose and

implement corrections to the problems which arise during the project.

The average person may see his lawyer or doctor many times each year andtherefore is reasonably aware of the scope of services provided by each of theseprofessionals. Not so with the architect, the average person may only deal with anarchitect once or twice in his entire lifetime.

This lack of familiarity between the Administrator and his client could lead tounreasonable expectations on the part of the client. For this reason the

Administrator should be comprehensive when explaining the nature and scope of allservices to be provided, with special emphasis on services which are not providedbut could be necessary.

Design professionals are highly vulnerable to claims from clients, owners and users.This vulnerability stems partly from failure by some architects and engineers tounderstand the demands of professionalism. Design professionals must be abovereproach in every aspect of dealings with others and in the management of the firm.This will not only prevent claims but also attract clients.

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INTERPERSONAL RELATIONSHIPS

Litigation of any type results from a breakdown in understanding between theparties involved, either in the communication of the professional endeavor itself (thecontract documents) or in the practical working communications between the

Administrator and others on the construction scene.

Minor disputes are cumulative. They build up to a final breakdown. When the finalstraw occurs, serious but otherwise forgivable errors can result in litigation.

Communication failures are often at the center of lawsuits. The plaintiff's attorney or arbitrators will build their case utilizing the Dictionary of Words and Phrases. Somewords require considerably more definition than others, the word "final" for example

Dangerous words can be categorized into three basic groups:

1. Extreme words; final, all, any

2. Words of multiple meaning; supervise, inspect, approve

3. Words of promise; guarantee, warrant, certify, ensure

These words should be avoided, and if not possible the content of phrasescontaining these words should be reviewed very carefully.

Design professionals may need to concentrate more than most professionals onmaintaining good relationships with colleagues and co-workers. They often workwith highly complicated concepts on very expensive projects. When the stakes arethis high, they need the extra advantage that a professional image, a level head andsolid training in crisis management provide. It is these attributes that separate thesuperior Administrator from the rest.

III) BUSINESS PROCEDURES

It is extremely important to know whoyour client is, and what kind of businesshe runs, before agreeing to perform work.Discover the answers to these questions:

Is the client going to be the Owner and userdeveloped for resale. If so, are the end-user

Does the client understand what is being puprofessional services and what to expect fro

Is the client financially capable of carrying o

Are all communications clear and direct with

These questions should be thoroughlyreview and answered, even if the answer indicates that the client should beavoided. Design professionals need to

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choose their clients, their projects andtheir personnel carefully to protectthemselves from costly professionalliability problems.

In dealing with clients, it is critical thatboth the Administrator and the client beabsolutely clear on the contractualprovisions that govern their workingrelationship, and on what their job-relatedobligations are. Signing a contract withoutcareful analysis can result in seriousproblems.

TECHNICAL PROCEDURES

Obviously, technical mistakes cause embarrassment and cost time and money,

more importantly they can cost lives. The true professional regards checking aids,handbooks and other sources of information enthusiastically - not resentfully-recognizing that anything that produces a better final product has great value.

A design manual should be created and utilized for each project. The manualshould contain check lists for each stage of the drawing and specificationdevelopment. The manual should be considered a dynamic documents and shouldbe updated and include notes for improvement for product and/or services for thenext project.

An acceptable method for dealing with errors and omissions should be worked outbetween the Owner and the design professional in advance. The client should also

be advised of the increased potential for errors, omissions, and concealedconditions, which are inherent to certain types of construction, ie. renovation, fast-track.

The potential for errors and omissions is always present in design work. Theprudent Administrator, therefore, provides himself with "safety nets" to make suremistakes are corrected before they cause major difficulties. Checklists are veryvaluable, as is construction review.

However, perhaps the most important thing the Administrator can do to controlprofessional liability in this area is to reach a clear understanding with his client thaterrors will occur, and that you will work together to correct them in a timely manner.

PROFESSIONAL LIABILITY INSURANCE

This comes in handy when above procedures fails. Professionals should keepprofessional indemnity insurance to indemnify themselves against liability.

B) THE PAYMENT AND PERFORMANCE BOND

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The Performance Bond ensures the Owner that the Contractor will complete allobligations of the Contract

The Administrator must be painfully aware of not only the Owner's rights under theContract but also the obligations necessary to protect those rights.

Should the Administrator, while acting as the Owner's agent in the Administration of thenew project, fail to properly ensure the rights of the Owner through negligence of therequirements, incorrect documentation or the untimely issuance of notice, the

Administrator may certainly expect the Owner to hold him responsible for all loses bothmorally and financially.

No other situation holds more potential for this devastating scenario than the default of the Contractor during the construction of the project. The easiest method of protection isto specify the standard Bond forms (Performance Bonds). These documents are notonly respected by the Surety industry, but have been thoroughly tested and generallyupheld through the judicial process.

The Surety and its agents can be the most formidable of adversaries or the most

gracious of financial saviors, depending upon the particular situations involved and theultimate causes for their involvement in the project.

The Administrator must read and become familiar with the wording and requirements of each type of Bond, for as every project is unique so is every situation involving theSurety. There can be no substitute for studying the requirements of the bond to ensurethat each and every action required by the Administrator is not only completed butcompleted within the specified time frames outlined in the Bond

C) INSURANCES

D) SIZE OF PROJECT

Demand for mobilization period

8.0. INFORMATION TECHNOLOGY AND AUTOMATION IN CONSTRUCTION

CONTRACT ADMINISTRATION

In the 1990s there have been significant developments in technology, which have

resulted in the production of very powerful software packages for the construction

industry.

The ‘adhoc’ deployment of such packages has resulted in improvements at their locallevel of implementation, such as planning, estimating, design, etc.

Electronic data exchange and information communication technology has tremendous

potentials not only in adding value to the internal performance of an organization, but

also to the whole life cycle and therefore to the client.

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These improvements however have had limited benefit at the project level. The

following examples are caused by such a problem:

a) Electronic copies vs. hard copies: - The mixing of electronic and hard copies in

organization make it difficult for project managers to process the right

information as and when required.

b) Lack of software integration.

c) Lack of international standards for information exchange.

d) Lack of proper Decision making tools for project planning: Planning is a lengthy

process and needs contribution from the entire project team. It is also context

dependent. This process can be significantly improved if appropriate decision

making tools are incorporated into their structure. Comprehensive systems have

not yet been developed in this direction.

In order for the Kenya construction industry to fully embrace information technology

and automation, it must equally consider technology, process, people, procurement,

legal issues and knowledge management. The efficiency of current processes must

be carefully addressed and re-engineered to take advantage of the latest advances

in technology. Industry should work toward minimum common standards to facilitate

the flow of information across the life cycle. Such standards will add significant value

up the chain by allowing exchanged information to be integrated with business

processes. People must have the necessary skills and rewarding environment to

harness the benefit of the internet.

9.0. OPPORTUNITIES CREATED BY CONSTRUCTION ADMINISTRATION IN KENYA

Increased contracting opportunities:

Local Investment opportunities:

Trade market:

Career development and job creation:

Foreign investment:

Review of legislation:

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10.0. RECOMMENDATIONS FOR ESTABLISHMENT OF SOUND CONSTRUCTION

ADMINISTRATION KENYA

The weaknesses of Kenya’s construction administration suggest a need for enhancingKenya’s capacity to changing and emerging treads in modern construction contractadministration.To address these needs a comprehensive understanding of the underlying explanatoryfactors is required. While the present assessment has signifycantly contributed to suchan understanding, further in-depth analysis is in some areas required to ensure thatcapacity needs are addressed in an adequate and sustainable manner.

Although not exhaustive, the following presents a set of recommendations for howcurrent capacity needs in construction contract administration may be addressed.

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a) Enhanced procurement capacity: Procurement staffs in many constructionprojects are suffering from a general lack of information about the legalframework, principles, procedures and processes of procurement for differenttypes of construction contract, leading to confusion and conflicts in the waycontract are administered after tender awards.

Both written guidelines and sensitisation activities should aim at creating ageneral awareness of the legal framework and institutional setup guidingprocurement in Kenya, as well as the main principles of sound, fair, transparentand efficient procurement. In line with the assessment conclusions, it is inaddition recommended that rules and procedures relating to certain subjects aregiven particular attention when developing procurement guidelines andsensitisation activities.

b) Improved incentive structures: While a system for Contracting administrationand Performance Assessment has already been established in Kenya in the

public sector, evidence from the assessment still suggests a need for further improved incentive structures in the procurement and administration of construction contracts. In order to make the most of the existing systems, it ishence recommended that the established Performance Contracting andPerformance Assessment System is carefully reviewed with a view to optimisingthese tools so that they support sound procurement and constructionadministration practices through effective incentives

c) Better access to contract information: Access to a variety of readily availableand complete procurement and contract information (from procurement plans,tender notices and contract awards, legal and policy documents and studies) is

vital to a well functioning contract administration system for several reasons: Itincreases competition levels, provides for control by the audit system especiallyin the public sector, enables civil society to conduct social audit in public sector,enhances the understanding of the administration system, etc.

d) Private sector guidelines and helpdesks: The challenges facing constructionadministration in the private sector suggest that a basic manual or informationanswering the most frequently asked questions among developers and providingoperational guidance on how to engage in construction processes would reallyhelp in public sector sensitization about basic construction administrationmechanisms.

e) Sensitisation workshops: It is recommended that construction professionalorganization and regulatory bodies scales up their sensitisation and trainingactivities targeting private sector representatives on the principles andfunctioning of the construction procurement and administration including themarket in general.

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The sensitisation activities should be shaped to fit the private small scaledeveloper perspective on the procurement and construction process, beproblem-based, while avoiding legalistic and theoretical approaches toprocurement and administration of construction projects.

f) Intensified partnership and coordination with related organizations: There is need for some of the challenges to be tackled jointly by a range of differentstakeholders, with participation of the public private partnership. This isparticularly true for capacity gaps found in areas in which procurement andcontract administration meets other core public functions, such as audit, publicfinancial management, human resources and anti-corruption. In such areas, it isrecommended that the capacity gaps are addressed by strategies of intensifiedpartnership and coordination between public private partnership andorganisations working in related fields.

11.0. CONCLUSION

Construction projects have been managed since time immemorial, but in the 1990s

there have been significant development in technology which have resulted in the

production of very powerful software packages for the construction industry that have

changed the way construction project are managed.

The number of participants, requirements and variables has also increase in the

administration of construction projects especially in project management life cycle.

There is a special need to redesign traditional working procedures for the contract

administration, communication and information management. This is to take advantageof the new possibilities of a project web, so that working procedures are better and more

efficient.

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12.0. REFERENCES

o The Construction Industry-Issues and Strategies in Developing Countries, TheWorld Bank, Feb. 1984 (Second printing, June 1986); and Sample Bidding Documents - Procurement of Works, Inter-American Development Bank andWorld Bank. Sept. 1985.

o The World of the Management Contract. The Export Group of the ConstructionalIndustries, London, England, 1988.

o Barnes, N. M. L. (1983). How to Allocate Risks in Construction Contact

International Journal of Project Management , Vol 1 No 1.24-28

o Utah Technology Transfer Center. Best Practice Guide for Innovative Contracting Procedures

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o Final Report: Six-State Survey of Construction Administration Practices and Procedures¸ Ohio Department of Transportation, 2001

o Construction Industry Institute (CII). Project Delivery Systems: CM at Risk,

Design-Build, Design-Bid-Build , Research Summary 133-1, December 1997