HIGHLIGHTS

June 2015

THE PROJECT MANAGERNewsletter of the Society of Project Managers, Singapore www.sprojm.org.sg MCI (P) 153/08/2014

The Implications of a Condition Precedent

Academia - Defining Tomorrow's Medicine

Technical Talks on Eurocode and Prefab

Collaboration between UniSIM and SPM

Signing of MOU with HKIPM

The collaboration between UniSIM and SPM kicked-started with a professional talk held on 22 January 2015 at UniSIM campus. One of the objectives of SPM for the inaugural series talk was to promote practice and knowledge of Project Management in the Built Environment Industry. Besides engaging with professionals and practitioners of PM, and other allied disciplines like Architects, Engineers, Quantity Surveyors and Facilities Managers, we feel that it is equally important to interact with, and tap the minds of the academia and engage the students in this field. Together with UniSIM, SPM wants to create a platform for students

and faculties to interact with industry practitioners.

In the inaugural segment of the SPM-UniSIM Professional Talk Series, SPM and UniSIM had invited Associate Professor Tan Teng Hooi to give colleagues of the industry an insight of the change and impact of Eurocodes on the construction industry, and Mr. Ng Chin Sin from Tiong Seng Contractors to share on the finer points on managing precast for projects.

Overall the inaugural series talk benefitted the audience in understanding the benefits and challenges due to the implementation of the Eurocode and use of the Precast concrete technology.

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The Society of Project Managers, Singapore (SPM) and the Hong Kong

Institute of Project Management (HKIPM) signed a joint co-operation

agreement on 10 April 2015.

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Prof Philip Cheang, Dean, School of Science & Technology, UniSIM, delivering the welcome speech

Mr Yip Kim Seng, 1st VP of SPM, giving his welcome address

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SPM President’s Message

S/N NAME MEMBERSHIP PLACE OF PRACTICE

1 Loi Chit Sin Fabian Ordinary PM Link Pte Ltd

2 Fang Yea Saen Ordinary PM Link Pte Ltd

3 Ye Ye Aung Associate Builder 90 Pte Ltd

Welcome! New SPM MembersWe extend a warm welcome to the following new members into SPM:

Project managers not only work in Singapore but also around the region. As such, SPM is striving to form relationships with project management organizations around the region.

SPM has just signed an MOU with the Hong Kong Institute of Project Management (HKIPM) on 10 April 2015.

There is mutual recognition of the categories of membership of the other party so that a person can join both

organization at the same level if they have met the entry criteria established by the first organization. Each party will waive assessment in accepting membership application by the other party for the equivalent grade of membership.

SPM members only need to pay member rates for attending seminars, symposia, conferences held by HKIPM.

We will exchange information and publications relevant to the development and profession of project management in Hong Kong and Singapore.

We hope with this step, SPM members would enjoy the connections that membership brings. Please feel free to feedback to us what are other countries you have your current projects so that SPM can work to make your home away from home even better.

This year is election year. I hope that more members would come forward and join our council. We are planning for the Annual General Meeting (AGM) to be on 16 July 2015.

Please mark on your calendar our annual dinner on 25 September 2015 at the Ritz Carlton Hotel.

I hope to see all of you there.

Dr Ting Seng KiongPresident (10th Council) Society of Project Managers

Signing of MOU with HKIPM10 April 2015 – The Society of Project Managers, Singapore (SPM) and the Hong Kong Institute of Project Management (HKIPM) signed a joint cooperation agreement to progress the professionalism of project management in Singapore and Hong Kong and provide beneficial opportunities to their members. The parties agreed to:

1. Exchange information and publications and to both nominate a liaison 2. Raise the profile and recognition of the profession in each country3. Recognize each other’s categories of membership4. Offer reciprocity for “member” grade5. Consult regularly for membership criteria6. Offer membership rates to members of both parties for seminars and

conferences at held exclusively by the other party7. Agree to recognize project management service providers endorsed by

the other party8. Promote this agreement on both websites, sharing links

This agreement was signed by Dr. Ting Seng Kiong, President of SPM and Ir Andrew Keung, President of HKIPM. It was witnessed by Mr Seah Choo Meng, Immediate Past President of SPM and Dr. Francis Chan, Immediate Past President of HKIPM.

Reported by: Justin Boon

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What a successful and exciting journey for the BCAA-SPM Project Management Course! We celebrated the completion of our 10th run in May 2015.

The 1st run of the course started in Sep 2008 and to date, no fewer than 300 participants had completed this certified course.

Most participants cited that the course provided the right balance of academic and theoretical foundation, as well as the practical applications of the knowledge. They also fully appreciated the wide range of trainers from well-known academics from NUS and SIT as well as industrial giants like Dr Christopher Leong of Rider Levett Bucknall, Mr Chang Meng Teng of Squire Mech Pte Ltd and Mr Eugene Seah, Group Managing Director of Langdon & Seah Singapore who shared on the finer points of PM practice and project experiences.

Because the course is certified, participants were required totake an assessment comprising of multiple-choice questions.

All participants were also required to form project teams to submit a write-up and make a presentation on selected topics related to project management. This is to groom the participants in leadership, team work as well as presentation skills. We had

With such positive feedback from both participants and Trainers alike, both BCAA and SPM would continue to make refinements to this course, ensuring that the course outline would cater to the current construction market and providing trainers who are leaders from both the academic as well as within our construction industry.

Do look out for the SPM-BCAA brochures and sign up for the 11th run of the course! Who knows? Your write-up may be featured in our next edition of the SPM Newsletter!

Details and enquiry about the course can be obtained from Society of Project Manager and BCAA respectively at: societyofprojectmanagers@gmail.com orbca_academy@bca.gov.sg.

Project Management for Professionals in the Building and Construction Industry

"In the industry dominated by men, this course has truly proven to be of

tremendous help in my career! I have learned the significance of planning and integration to provide solutions and continuous development of the project.

Giving me confidence to lead and build the team as a Project Manager.

This course is a "must-do" for all aspiring successful project Managers!"

Participant: Divine Grace Gallardo Architectural Designer, ATC Consulting Pte Ltd

featured some of the write-ups from the participants in the past editions of the SPM Newsletter.

And this is what some participants and trainers they have the say about it:

Participants in the 10th run of the course

Award For Outstanding Project Manager 2015The Society is pleased to launch the Outstanding Project Manager 2015 Award which aims to highlight the multi-faceted leadership role of a Project Manager.

Apart from meeting the many project objectives of the client, the Project Manager has to be knowledgeable in design and construction matters and uphold a high standard of professionalism to earn the respect of all parties in a project.

A proficient Project Manager is a valuable asset to the organization and the construction industry, and should be encouraged with due recognition for the contribution towards realising our built environment. Through this award, the Society hopes to inspire the growing pool of Project Managers in Singapore to raise their level of professional practice and provide even better service in their work with consultants, client and contractor.

This award is aimed at recognizing a Project Manager's significant achievements in the construction industry over the past years. These achievements could be in any one or a combination of the following aspects:

(a) exceptional level of service provided for projects undertaken;

(b) special project management expertise employed for projects which have a significant impact on the built environment in Singapore;

(c) professional project management practices in dealings with other parties of project team;

(d) Innovative project management approaches or ideas, which contribute to the advancement for the profession or the industry.

Details of Announcement and Nomination form can be retrieved from the Society's website.

Announcement of results and presentation of Award will be made at the Society's Annual Dinner, scheduled in September 2015.

Contributed by:Patrick Too Chee Keong

OPM 2010 Award Winners

OPM 2012 Award Winners

“While the training was intense, it has also been enjoyable. The participants were attentive and engaging and it was clear that they have a strong desire to learn. Some participants even whipped out their mobile phones to take

photographs of what I have written on the white board. This has been a very satisfying experience for me.” Trainer – Professor Low Sui Pheng from Department of Building, School of Design and Environment National University of Singapore

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The Implications of a Condition Precedent

Provisions on conditions precedent have been widely adopted in building contracts. They essentially work as time bar provisions that will preclude a contractor from making a claim for say time extension if he fails to comply with the terms stipulated in the contract with regard to the time limit.

The basis for such a contractual provision are well recognised – it will provide the

contract administrator sufficient time to review the claim and that it will enable the employer to implement measures to mitigate the impact to the progress and cost of the works.

Another well known example of a condition precedent is the submission of all documents such as O & M manuals and the completion of defects by a contractor on completion of a project prior to the issue of the final payment by the employer.

The rationale for this provision is to ensure that contractor dutifully and diligently complete his contractual obligations before he receives his final payment. There have been arguments by lawyers that such provisions represent a contracting out of the SOP Act. However, the opposing school of thoughts maintain it would be blatantly untenable to make payment to contractors before the latter fulfilled their contractual obligations.

This article is based on my observations on what is going on in the world of Adjudication in the Security of Payment

Act juxtaposed to the latest case law in the United Kingdom (UK) which also has a similar Act (Housing Grants Construction Regeneration Act). The topic, Conditions Precedent, is nothing new but I have seen determinations and interpretations that seem to be going against the grain of conditions precedent and which causes doubt in the use of the clauses in general.

In some of the Adjudication determinations, there is a dichotomy of what is considered as contracting out of the Act and what should be followed, strictly, to the contract. We have written on how the Security of Payment Act can be manipulated and even abused Hence it is very necessarily important to carry out a detailed Pre-Qualification on Contractors and for Main Contractors, a similar exercise on their sub-contractors and suppliers. Having said, such exploitative tactics are not new in Singapore. Classic examples are adjudication applications being lodged just one day prior to a long festive holiday, turning adjudication applications into mini arbitrations and more recently serial adjudications.

Conditions Precedent provisions are standard fare in most forms of contracts be it the Singapore Institute of Architects Form of Contract, the Public Sector Standard Conditions of Contract or the Real Estate Developers Association Singapore Standard Form. These actions of condition precedent is, in one way, to notify the party of the other party’s intentions before the main stream

process is applied. Another reason is to force parties to take note of certain highlights or merely to force parties into trying to settle1. Conditions Precedent are not a prevention principle as some practitioners and even lawyers would think, but are rather acts that a party to a contract must perform prior to receiving his entitlements or benefits.

Since 1995 in Aoki Corporation V Lippoland2, it has been determined that a Contractor’s notification is a condition precedent to his entitlement to an extension of time. This was reinforced in City Inn in 20033. If parties do not follow strictly the process or deviate from the provisions under the conditions precedent, then the courts will take it that there would be an implied waiver of such conditions. For instance in Tropicon4, it was held that because the Architect had shown willingness to grant an extension of time even though the contractor failed to provide the notice required as a condition precedent, this willingness that was manifested was held by the Court that further notice to be given by the Contractor was not a condition precedent anymore. This was further reinforced in Lian Soon in 20005.

When lecturing at the National University of Singapore on Contracts Management (Masters in Project Management), I set an assignment to the students to make them think on shields and swords in the any standard form as I wanted them to understand how parties in a contract can make use of clauses to their advantage or can be disadvantaged because of the same clause. For instance, in a Conditions Precedent situation, if the Contract Administrator forgets to comply to the timelines stated in the Contractor for Conditions Precedent, it can be taken that the Contract Administrator has invalidated himself and his power for a certain action. This happened in the case of Assoland6 whereby the Contract Administrator did not give in-principle intimation as required in the contract.

The effects of Condition Precedent clauses can have a negative impact if interpreted unduly strictly. However,

"The rationale for Condition Precedent

provision is to ensure that the contractor dutifully

and diligently completes his contractual obligations

before he receives his

final payment."

"Condition Precedent are not a prevention principle

as some practitioners and even lawyers would think, but are rather acts that a party to a contract

must perform prior to receiving his entitlements

or benefits."

04 THE PROJECTMANAGER

due to the need for Project Governances and compliance rules demanded by Auditors for private and public projects alike, Contract Administrators have to pay keen attention to the documentation on site, more so for the Quantity Surveyor who assists the Contract Administrator i.e. the Architect, in the SIA form of Contract. In the PSSCOC, if the Contractor fails to give proper Notice for a variation, he is, contractually, waiving his right of payment and cannot argue that he should be paid a reasonable sum even through the Employer could have benefited from the additional work. The foundation of this was discussed in Tharsis Suphur7 in 1878 of which the principles still apply today.

However, with the SOP Act in place, Adjudicators have the latitude to award payment to the Contractors because of “work” that have been carried out. Any irregularities or loss suffered by a party would have to be regularised or recovered after payment is made under the SOP Act by instituting arbitral or court proceedings.

So far, I have discussed on cases, mainly in Singapore. In the UK, the same respect for Condition Precedent is applied. In the case of Education 4 Ayrshire Limited v South Ayrshre Council (2009), CSOH 146, it was held that a failure to strictly comply with a condition precedent will disallow a party to its entitlement to what would otherwise be a valid claim for extensions of time and financial compensation. It was also noted in this case that issue of notices and condition precedent procedures should be conducted by Contract Administrators and not to be interfered by “Lawyers or Business Men”. If the contractual procedures are hampered by bureaucracy and business decisions, there could be an additional layer of unnecessary administration which can create a negative culture where the compliance of such

conditions precedent can result in a breakdown of relationships. Ultimately this can create more disputes.

The most recent case was the case of Peterborough City Council V Enterprise Managed Services Ltd (2014) EWHC 3193. This case celebrates two things. First, freedom of contracts and the respect of the clauses inputted. Second, condition precedent. This case involved a Power Plant and its associated complexities. Parties agreed to put in a Dispute Advisory Board Clause for “Rough and Ready” justice. Disputes arose which were complex in nature. Peterborough submitted that any decision by the Dispute Advisory Board would instill dissatisfaction from one or other party, hence, the “Rough and Ready Justice” process of adjudication was inapt.

The judge noted that there was nothing new as the complexity of such disputes was anticipated by parties beforehand and parties choose to incorporate the adjudication machinery in the FIDIC form of Contract. It was held that parties had to abide to the DAB procedure and that the court proceedings should not be supplanted by adjudication. Parties were left to resolve their disputes the manner that they had agreed to

resolve in the contract. Since DAB was a condition precedent to Court proceedings, the Judge ordered the court proceedings to stay.

In conclusion, my view is that because of the need to comply with governance and auditory rules and requirements, especially for public projects, Contract Administrators have to take a more insightful and deeper role of looking at the conditions precedent provisions in their contracts they are administering. This is to ensure contractual rights and liabilities are preserved in the contract. Under the SOP Act in Singapore, Adjudicators should respect the provisions stipulated in the contract, respect what parties have agreed and not dictate their own law based on the “rough and ready” justice notion that protects Adjudicators and observing what is stated in the Act of “Not Contracting Out” of the Contract. Remember, Condition Precedent are not there for no rhyme or reason; they are there to ensure procedures with regard to notices are duly observed with no ill intent nor celebrating the prevention principle.

Contributed by:Eugene SeahGroup Managing Director ofLangdon & Seah Singapore

1 This fact was discussed in Gaymark Investments v

Walter Construction. Such notices enables matters

to be investivated while they are still current. This

is not a prevention principle .2 Aoki Corporation v Lippoland (S) Pte Ltd (1995), 2

SLR 6093 City Inn Limited v Shepard Construction Limited

Court of Session (2003), BLR 4684 Tropicon Contractors Pte Ltd v Lojan Properties

Pte Ltd (1989) SLR 6105 Lian Soon Construction Pte Ltd v Guan Qian

Realty Pte Ltd, (2000), 1 SLR, 4956 Assoland Construction Pte Ltd V Malayan Credit

Properties Pte Ltd (1993) 3 SLR 4707 Tharsis Sulphur and Copper Cp. V McElroy (1878)

"...because of the need to comply with governance and auditory rules and

requirements, especially for public projects,

Contract Administrators have to take a more

insightful and deeper role of looking at the conditions

precedent provisions in the contracts they are

administering."

05THE PROJECTMANAGER

Academia - Defining Tomorrow's Medicine

Defining Tomorrow’s Medicine is the vision of Singapore Health Services (SingHealth), the main occupant of the 75,000sqm Academia. Standing within the Singapore General Hospital (SGH) campus, Academia is strategically sited to connect and bridge the Duke-NUS Graduate Medical School, SGH and the National Centres for cancer, eye, cardiac, neurosciences and dental care.

Academia is about the pursuit for better healthcare, and through its architecture creates the environment that fosters transformative collaboration between professionals in the healthcare value chain. It opened in 2013, and since then has hosted numerous events bringing together international, regional and local healthcare players in focused academic exchanges in research, education and clinical delivery.

Programmatic elementsConceived as a clinical laboratory facility to replace the 50-year old SGH Pathology Department, the building brief was expanded to add capacity for research and training, as well as office space to support growing clinical faculty numbers. This brought together three very distinct programmatic requirements:

• Userdriven,andspecificneedsofSGH’sclinicallaboratoryspace

•Openarchitecturenecessaryforresearchlabs,withflexibility to adapt to specific research program needs as they were progressively confirmed

• Basicsurgicalskillslabs,anda“mini-hospital”forclinicalsimulation training, integrating conferencing capacity of up to 1,000 participants.

This facility also presented the opportunity to re-think processes, and to provide a more efficient and safe environment to work. So, in designing the building, users and designers had to also integrate existing sample delivery processes, automate and standardize practices across the various departments.

Advancing clinical care

“….Academia not only allows the sharing of space and equipment, it will further fuel the exchange of knowledge and ideas. This will advance our research collaborations with universities, government agencies and industry…”

Professor Ivy Ng, Group Chief Executive Officer, SingHealth Sunday Times, July 28, 2013

The result is a 75,000sqm facility, anchored by a 7,500sqm skills training, simulation and conferencing centre in the podium. Twin towers (Diagnostics and Discovery) rise from the podium floors, housing more than

30,000sqm of clinical and research laboratories. More than 13 million patient specimens are tested annually here, for basic health parameters to the more esoteric diagnostic tests for tuberculosis and HIV.

With the hospital simulation facility, clinical, surgical and life-saving techniques can now be brought into an immersive environment. Clinical teams can better understand how individual and team behaviour can impact the delivery of care to patients. Spaces are connected by an audio visual network, enabling unique surgical cases or procedures to be broadcast, extending the learning opportunities for medical and nursing students and professionals.

Most of the laboratory floors are laid out on open standardised grids, and in consistent bench modules. This allows easy modification or conversion to suit process changes, laboratory automation initiatives and evolving scientific programs. SGH Pathology has automated bulk of the routine tests, as well as processes for transferring samples from the hospital, and the downstream distribution. These have translated to improved productivity and turn-around time for tests.

Complexity

People – Designing the Academia was a highly interactive process, involving multiple users from diverse professional backgrounds. Capturing, managing and incorporating the requirements into the building design was a challenge, owing to the lack of a common “language” among designers and users to describe building elements and laboratory systems. The large number of participants and stakeholders also made decision making process complex.

Diversity – Nearly 60% of the floor area is non-typical, as clinical, research and education needs vary significantly. Within each floor, rooms had to be customised to suit different types of equipment, and processes within the room

06 THE PROJECTMANAGER

Academia - Defining Tomorrow's Medicineto ensure tests could be carried out efficiently and safely. This substantially increased time for technical coordination, and production at the construction stage.

Change – For Academia, changes were inevitable for two reasons: (1) there were new processes introduced to better integrate laboratory services. These had to be tested and refined, (2) to ensure that the latest technology in laboratory equipment was procured, the purchases (and therefore requirements) had to be delayed to the tail end of construction. While assumptions had been made on equipment needs during the design stage, these needed to be changed to meet the specific needs of the final equipment purchase.

No Disruption – Construction work for the Academia involved modification to SGH’s existing engineering systems, as well as the road and pedestrian network. The most complex construction activities related to planning of shut down, diversion, and relocation of systems, heavily trafficked roads and clinics adjacent to Academia, often with very high risk activities scheduled over short “weekend work” durations. Construction teams also had to deal with uncertainty over the location and condition of old engineering services while executing these works.

Dealing with Complexity

Clinical laboratories are a niche practice area, and for many in the team (users, designers, contractors), it was the first project of this nature and scale. What helped the team to completion was:

Team based approach – Taking the time to build “team-think”, orienting users to the design and construction process and terms, and vice-versa the design and construction team on healthcare terms, processes, bio-safety etc so that they could better understand the link between design and construction quality and patient outcomes. Co-locating the owner’s representative, designers and the contractor, enabled joint and quick resolution to site coordination issues.

“Less than ten” – Keeping design and progress meetings to an attendance of “less than ten” rule. This provided the right forum for a focussed, open and transparent conversation on design, progress, safety and dispute resolution. Larger meetings served only as communication forums for dissemination of instructions

Good basis of design – Ensuring that room data sheets, furniture and equipment listings completed, discussed and signed off before progressing to detailed design and construction. These provided a reference point to align users and designers on spatial requirements, orientation for new team members, as well downstream coordination on laboratory equipment requirements and placement and change management. These documents also provided the basis for equipment procurement, allowing equipment suppliers to specifically identify deviations from the designed provisions prior to the purchase.

Standardisation to reduce variability – Emphasis on standardising building elements (laboratory furniture, fittings,

bio-safety cabinets) to re-gain the construction productivity lost from non-standard floor plans and rooms.

Scenario planning and risk management – Planning for the construction works began at the design stage, with an emphasis on the tunnel and road levelling works. Stakeholders were actively engaged, so that designs could take into consideration visitor safety, operational constraints of existing systems and vibration limits of adjacent treatment and diagnostic facilities. Prior to construction, both operations and construction teams carried out joint scenario planning exercises, “dress-rehearsals”, and put in place contingency plans to ensure zero failure during implementation.

Construction Excellence

Academia opened its doors on 20 July 2013, on time and within budget. Kajima Overseas Asia Pte Ltd was awarded the BCA Construction Excellence award in May 2015 for this project, a nod to the quality of the product that was delivered. Being able to meet the time, cost and now quality project objectives is the collective effort of the team, users, project managers, designers and contractors.

Article contributors:Christine Low was previously with Singapore Health Services Pte Ltd. In her capacity as Deputy Director for Campus Development, Christine was responsible for the overall project management and delivery of the Academia

Dexter Chia is currently Director Operations and Infrastructure Planning at Singapore Health Services Pte Ltd and oversees the operations of the Academia

CPG Consultants Pte Ltd and PMLink Pte Ltd were the appointed Project Consultants and Project Manager forthe project

07THE PROJECTMANAGER

Dealing with Disputes

This is second of a 2-part article on Dealing with Disputes by Paul Teo. The first part considered how parties can develop the right broad strategy for dealing with claims and disputes. It then considered how parties can prepare their claims to increase the chances of resolving disputes during the contractual claims process. In this second part, Paul will consider:

(a) What can parties do to increase the chances of securing an early and satisfactory commercial settlement;

(b) What can parties do to increase the chances of securing an early resolution and satisfactory outcome from the arbitration process; and

(c) What can parties do to manage costs in any given dispute scenario.

What can parties do to increase the chances of securing an early and satisfactory commercial settlement

As mentioned in the first part, once the relevant claims have been submitted and assessed by the architect or engineer, it would be open to the parties to use those claims submission and/or any responses provided by the architect or engineer as a meaningful basis for engaging in direct settlement negotiations. It is also possible for parties to agree to mediation. This is not to say that no settlement discussions can take place until claims have been submitted and assessed. The point is simply that the claims submission and any responses provided by the architect or engineer should contain useful factual, technical and perhaps legal data that provide a meaningful basis for parties to go into the relevant details of the claims and to exchange their views on the issues arising.

This juncture therefore represents a significant window of opportunity for the parties to explore settlement or to narrow down issues in dispute.

As with any of the other processes, the key to success will depend on adopting a professional approach and thorough preparation beforehand. Thus, before any party proceeds to meet with the other party for the actual negotiations, it is essential that the party should first carry out an analysis on all the relevant aspects, including: what are its interests and position in relation to the project and the other party, what are its objectives, whether there are any constraints to settlement and if so, what are they, what are the other party’s interests, objectives and constraints to settlement.

In addition, it is important to analyse the alternative scenarios to settlement for both parties. In most instances, non-settlement would equate to the commencement of formal arbitration proceedings and where this is the case, the analysis will focus on an assessment of the merits and likely outcome. The analysis can be relatively simple and broad-brush, or it can be sophisticated (for example, involving the use of decision trees and similar planning tools). If it has not already been obtained, an opinion on the relevant legal and technical issues may also be helpful in assisting with the overall analysis.

It should then be possible for a party to get a good sense for what are both parties’ positions and interests and the possible settlement options or terms.

To prepare for the actual negotiations, it is essential to identify in advance the individuals (usually members from the senior management and/or project teams) who are going to be involved in conducting the actual negotiations with other party. An agenda should be drawn up and a script or crib-sheet of the issues and key points prepared. In our experience, it is extremely important to carry out rehearsals for the relevant individuals. The rehearsals should be as realistic as possible, and individuals should be assigned to take on the role of representatives from the opposite party. This exercise will prepare the negotiating team and help them to anticipate likely points of objection or questions or requests from the other side.

In terms of timing, it is helpful for parties to agree to a time-table for the day of the negotiation setting out the agenda, the issues to be discussed, which individuals will be speaking and to seek to follow that as closely as possible. This will ensure that the key issues are addressed and that the parties do not get side-tracked or bogged down by unnecessary discussion on side issues.

What can parties do to increase the chances of securing an early resolution and satisfactory outcome from the arbitration process

Should the parties end up in arbitration, there are steps that can be taken to shorten the arbitration process.

One option would be for the parties to adopt ‘fast track’ measures either by expressly providing for this in the arbitration provision (this includes incorporating arbitration rules which contain this option, such as the SIAC Rules 2010) or by mutual agreement. A ‘fast track’ arbitration will generally involve adopting shortened time limits for procedural milestones in the arbitration such as delivery of pleadings or witness statements. The other way to achieve a ‘fast track’ would be for the parties to adopt deadlines (usually counting from the date of commencement of the arbitration) for the arbitration hearing to be completed and the award to be issued by the tribunal.

More generally, various techniques may be used by parties to shorten the arbitration process and reduce costs. These include: making use of one instead of three arbitrators, proactive case management by the arbitral tribunal, control of documentary evidence, control of witness and expert evidence, and bifurcation (holding separate hearings to deal with jurisdiction and liability issues, or alternatively separate hearings to deal with liability and quantum issues).

Paul Teo, who co-leads Hogan Lovells' international arbitration practice in Singapore and South East Asia, presented a paper on construction project disputes at the BCA-SPM Joint Seminar in July 2014. Paul specialises in international arbitration and dispute resolution. He has more than 17 years of experience acting for corporates, governments, owners,

contractors and consultants on disputes arising out of infrastructure, construction, energy, telecommunications and other major projects across Asia. Paul has substantial experience acting on a broad range of commercial disputes and has experience of investment treaty claims. He is familiar with the major arbitral rules and has served as arbitrator in numerous institutional andad hoc arbitrations.

08 THE PROJECTMANAGER

Special consideration must also be given to the arbitration clause, which is recognised under the law as a separate agreement between the parties. It is crucial that the wording of the arbitration clause is clear and unambiguous, or the validity of the arbitration clause may be challenged or rejected by the Courts. In such a scenario, which is not uncommon, parties would not be able to avail themselves of the arbitration process and they would have to resort to satellite litigation proceedings before the Courts, leading to delays and wasted costs.

It is widely known that most disputes settle at some point without going all the way through to the end of the hearing. Therefore, even if parties should end up in arbitration, they should always try to keep the settlement option open.

In terms of securing a satisfactory outcome in an arbitration, a few key aspects have already been mentioned above. These include making timely claims submissions in order to preserve one’s legal entitlement to relief and also, keeping and maintaining good records to support one’s case. Ultimately, the merits of the case has to be established and proven by reference to relevant factual and expert evidence, if any.

What can parties do to manage costs in any givendispute scenario

In any given dispute scenario whether involving a potential or

actual dispute, it would be extremely useful to carry out as early as possible an internal review and assessment of the claims, so as to enable the party concerned to: (i) identify the real claims and issues in dispute; (ii) rank the claims in order of monetary value; and (iii) rank the claims in order of strength on the merits.

Once this has been done, it would be open to the party concerned to take a more discerning approach by putting more emphasis and allocating more time, effort and resources to the more significant claims with higher monetary value and/or the claims with higher chances of success which it should pursue more strongly. By contrast, it should try to settle the weaker claims as soon as possible. This is another useful way for a party to control costs.

In all instances, the best way to reduce costs would be for parties to seek early settlement, whether partial or global, through the processes outlined over the two parts of this paper.

Contributed by:

Paul Teo, PartnerHead of Projects, Engineering & Construction, SingaporeInternational Arbitration PracticeHogan Lovells Lee & Leepaul.teo@hoganlovells.com

Mr Phil Palmer, the Managing Director of PCSS Consultancy Sdn Bhd, gave an interesting and useful talk on “Tools to Harness Project Success” at the Singapore Recreation Club on * May 2015.

About 30 participants learnt about two major project management tools, namely:

a) The Primevera Project Portfolio Management (P6) that provides Project Managers the visibility and accountability to the input data entered into the system and credibility in the reports generated as output, and

b) The Synchro 4D BIM that assigns the building 3D CAD object to the relevant activities in the project schedule producing a simulated build of the project based on the schedule baseload sequence.

The attendees gained an understanding of the benefits of using these tools to increase the likelihood of project success of delivering the project on time, within budget and to the required specifications.

Technical Talk on“Tools to Harness Project Success”

09THE PROJECTMANAGER

Greta Train Support Facility Project

Phil Duvollet has over 25 years of experience in engineering, consulting and project management in rail, roads, Defence, energy infrastructure, and manufacturing. Phil has worked in many civil and industrial environments such as rail infrastructure, manufacturing, ship construction, aerospace, and gas and electricity infrastructure. Phil was recently the Project Director of a $110M Train Support Facility which was awarded National and State awards for project delivery.

Phil Duvollet currently manages the Project Management Office for Pacific National’s Australian Operations. Phil also has a leadership role in the division providing peer reviews, project management support on projects, and mentoring of developing project managers.

With more than 25 years in professional project management, Phil Duvollet has seen his fair share of good PM practices, some mistakes, and many of the challenges with delivering projects in Australia. At the November Technical Talk, Phil, as the Project Director of the Award Winning Greta Train Support Facility project in the Hunter Valley of NSW, Australia, shared his experiences in the project to highlight some of the good PM practices, mistakes to learn from, and some of the challenges with delivering projects in Australia.

The project encompassed best practice engineering and design to provide innovative solutions and systems to improve safety and operational efficiencies not yet seen in the Australian rail industry. Engagement with rail industry operators assisted in delivering innovative solutions such as an Australian first Sand Dust Extraction system, Rail Track Isolation system, Wagon Conditioning Monitoring system, Safe Roof access for locomotive maintenance, Crane and Pivoting Platform Safety Interlocking system and a Ventilation and Noxious Fume Extraction system.

At the Technical Talk Phil provided an insight into the areas he believes are critical to a projects success, but are often overlooked or not managed appropriately. As a result many projects fail to achieve their objectives. This is confirmed by recent international surveys which indicate:

• 70% of organizations have suffered at least one project failure in the past 12 months.

• 50% of organizations also indicated that their project failed to achieve what they set out to achieve.

•Only 40% of projects met schedule, budget and quality goals.

Phil’s key question to Project Mangers is “what are we doing wrong?”

Phil summarised four key areas which he has found are most critical to project success:

1. Know your stakeholders and manage them.•Identifyallstakeholders.Iftheyarenotengagedtheymay

compromise your project.•Stakeholdersarealldifferentandoftenhavecompeting

requirements.•Manageyourstakeholderseffectively.

2. Identify and Specify your “User Requirements”.•Whatworkedwelllasttime?•Whatdidnotworkwelllasttime?•Whatwouldyouchangeifyouhadasecondchance?•Clearlyspecifythefinalrequirements?•Ensureyourcontractclearlystatesthe“UserRequirements”•Usetherequirementstocontrolscopecreepandscope

change.

3. Use “Lessons Learnt” to improve on past performance•Challengethestatusquo(beinnovative)•Whathasworkedwellinthepast?•Whathasn’tworkedwellinthepast?•Whatcanweimproveon?•Whatistherestofindustrydoing?•Whatisbestpractice?•Don’trepeatpastmistakes.

4. Plan you work, then work your plan. Project Management Plans are crucial, should be easy to read and should clearly answer four important areas:

•Whatarewedoing?•Howarewedoingit?•Whenarewedoingit?•Whoisdoingit?

With Phil’s guidance and direction, the project was awarded winner of the National Australian Institute of Project Management Awards for best Developmental (Business Initiatives and Innovation) project, and an Engineering Excellence award from Engineers Australia.

Contributed by:Phil Duvollet, Project Management Office for Pacific National's Austrailian Operations

The project teamMultiple project management engineering excellence awards

10 THE PROJECTMANAGER

from the from the f Editor's Pen...The Editorial TeamTan Kok Siong, ChairmanYip Kim Seng, AdvisorManish BangaJason LeeShaun YeoJustin BoonDavid Cheong

Note: No part of this newsletter shall be reproduced without the written permission of the Publisher, Society of Project Managers. The views of the writers expressed in the newsletter may not necessarily represent the corporate views of the Society and no liability is accepted in relation thereof.

Dear Readers and Members of SPM,Together with my Publications Committee, it is my pleasure to bring you another issue of The Project Manager. Besides the usual carrying of news and activities of the Society and serving as a communication channel for the SPM Council to its members, The Project Manager newsletter serves as a platform for members and allied professionals in the construction industry to exchange views and share knowledge. We certainly welcome your contribution of views and articles relating to the developments of the construction industry, in general, and project management, in particular. Besides members, the newsletter reaches out to developers, project management firms, allied consultancy and contracting companies of the construction industry, statutory boards/government agencies and institutions of higher learning. Tan Kok Siong Chairman, Publications Committee

Calling for feature Articles and Sponsorship!

Dear Readers,The SPM Newsletter Editorial Team would like to invite you and all SPM members to consider sponsoring an edition of the newsletter. The sponsor will be given a full page dedicated to a feature article which can be contributed by the sponsor. The article can include a write-up on a project undertaken by the sponsor or any project management related fields involving the sponsor that would be of interest to the readers of the SPM newsletter. Or your esteemed company could place an advertorial under our sponsorship scheme. The cost of the sponsorship is S$3,000 per full page article/advertisement or S$2,000 per half pages article/advertisement. You can convey your interest to societyofprojectmanagers@gmail.com We sincerely looking forward to your contributions and support.

SPM Newsletter Editorial Team

Looking Forward...

government agencies and institutions of higher learning.

Looking Forward...

Construction 2020 - Changing the Way We Build

Large Construction Projectsin Singapore - Some Fundamental Aspects for Success Ms Audrey Perez, Director, Dragages Singapore Private Limited

members to consider sponsoring an edition of the newsletter. The sponsor will be given a full page dedicated to a feature article which can be contributed by the sponsor. The article can include a write-up on a project undertaken by the sponsor or any project management related fields involving the sponsor that would be of interest to the readers of the SPM newsletter. Or your esteemed company could place an advertorial under our sponsorship scheme. The cost

Note:reproduced without the written permission of the Publisher, Society of Project Managers. The views of the writers expressed in the newsletter may not necessarily represent the corporate views of the Society and no liability is accepted in relation thereof.

of the sponsorship is S$3,000 per full page article/advertisement or S$2,000 per half pages article/advertisement. You can convey your interest to societyofprojectmanagers@gmailWe sincerely looking forward to your contributions and support.

SPM Newsletter Editorial Team

Note:reproduced without the written permission of the Publisher, Society of Project Managers. The views of the writers expressed in the newsletter may not necessarily represent the corporate views of the Society and no liability is accepted in relation thereof.

edition of the newsletter. The sponsor will be given a full page dedicated to a feature article which can be contributed by the sponsor. The article can include a write-up on a project undertaken by the sponsor or any project management related fields involving the sponsor that would be of interest to the readers of the SPM newsletter. Or your esteemed company could place an advertorial under our sponsorship scheme. The cost of the sponsorship is S$3,000 per full page article/advertisement or S$2,000 per half pages article/advertisement. You can convey your interest to societyofprojectmanagers@gmailWe sincerely looking forward to your contributions and support.

SPM Newsletter Editorial Team

11THE PROJECTMANAGER

Publisher: Society of Project Managers | Printer: Toppan Security Printing Pte. Ltd.

SPM-UniSIM Professional Talk Series on 22 Jan 2015

PrefabAs per BCA, Precast concrete technology had been identified as one of the key areas of focus to improve productivity in the construction industry. During the presentation, Mr. Ng Chin Sin shared on the approach of precast management as well as the critical success factors behind precast based projects from the builder’s perspective, precast management approach. He also shared the advantage of the full precast envelope design for scaffold less construction and integration of the architectural components with the precast members. He highlighted the impact to the production due to the change during construction stage and tips to improve project management skills by tapping on the resources and new technologies in the current productivity driven construction industry.

EurocodeBCA had mandated the use of Eurocodes, one of the world's most advanced and established building codes, and as from April 2013, had allowed building professionals to submit the structural plans of a building using the code. On 1 April 2015, BCA has withdrawn the current codes which were based on the British Standards. The Eurocodes have replaced them as Singapore’s prescribed building codes for structural design. Associate Professor Tan Teng Hooi shared about the significant adjustments/difference between the Eurocodes and the British Standards. He also shared about the impact of the change to the construction industry.

Overall the inaugural series talk benefitted the audience in understanding the benefits and challenges due to the implementation of the Eurocode and use of the Precast concrete technology.

Mr Ng Chin Sin giving his talk on prefab Proper mould design for challenging façade or off form finishesImage courtesy of Tiong Seng (Park Royal Hotel) façade

Proper mould design for challenging façade or off form finishesImage courtesy of Tiong Seng (Park Royal Hotel) façade

Associate Professor Tan Teng Hooi sharing about Eurocodes.

Professor Cheong Hee Kiat, President of UniSIM, presenting token of appreciation to Associate Professor Tan Teng Hooi

Professor Cheong Hee Kiat, President of UniSIM, presenting token of appreciation to Mr Ng Chin Sin from Tiong Seng

12 THE PROJECTMANAGER