Objectives 1- To study and analyze FIDIC 99 in terms of responsibilities and risks. 2- To investigate the contractors practice in estimating of cost implications of conditions of contract in the Gaza Strip and to prioritize these factors. 1- To study and analyze FIDIC 99 in terms of responsibilities and risks. 2- To investigate the contractors practice in estimating of cost implications of conditions of contract in the Gaza Strip and to prioritize these factors.
Objectives 3- To develop a practical system. 4- To computerize the system. 5- To evaluate the system. 3- To develop a practical system. 4- To computerize the system. 5- To evaluate the system.
Limitations 1- First and second class contractor according to PCU. 2- FIDIC 99 General Conditions. 1- First and second class contractor according to PCU. 2- FIDIC 99 General Conditions.
It is observed that none of the respondents seek to keep risks. No doubt that all risks can not be avoided, transferred or mitigated. It was previously observed that there is no systematic techniques for estimating and managing risks. Accordingly, risks are unconsciously retained. It is observed that none of the respondents seeks to keep risks. No doubt that all risks can not be avoided, transferred or mitigated. It was previously observed that there is no systematic techniques for estimating and managing risks. Accordingly, risks are unconsciously retained It is observed that none of the respondents seeks to keep risks. No doubt that all risks can not be avoided, transferred or mitigated. It was previously observed that there is no systematic techniques for estimating and managing risks. Accordingly, risks are unconsciously retained
Field Survey RankRIIMitigation ActionNo. 10.92Insurance against accidentsA 20.85Improve quantity and quality of staffB 30.80Buy and store materialsC 40.78Increase safety measures and toolsD 50.75Increase quantity of equipmentE 60.71Closer supervision to subordinatesF 70.69Include time allowanceG 80.66Increase subcontract works as possibleH 90.63Increase working hoursI 100.52Assign risk to suppliersj
RankRIIStatementNo. 10.79Assumes that project is well defined prior to contract signature A 20.74Not well adopted to cope with large number of changes B 30.71Presence of some biased clauses against contractor C 40.67Assumes unit price remains validD 50.66Low contractor involvement in decisions related to design E 60.58Not applicable in the Gaza StripF
RankRIIMitigation ActionNo. 10.83Non-availability of goods, consumables, etc.1 20.81Delay to complete work stated in the contract2 30.79Work interruption due to variations3 40.78Delay, impediment or prevention caused by employer4 50.77Works or goods loss or damage5 60.76Contractors design, workmanship or materials failure during suspension 6 70.75Temporary works loss or damage7 80.66Contractors equipment loss or damage8 90.74Delayed drawings or instructions due to contractors fault 9 100.69Interference in the convenience of public10
Field Survey RankRIIMitigation ActionNo. 10.85Work interruption due to variations1 20.84Non-availability of goods, consumables, etc.2 30.81Interim payment certificate with-held3 30.81Contract termination by employer4 50.78Delay, impediment or prevention caused by employer5 60.77Failure to comply with engineers instructions6 70.74Unforeseen disruption or delay by authorities7 80.73Errors in positions, levels, dimensions or alignments8 80.73Delay to complete work stated in the contract9 100.72Work suspension is a responsibility of contractor10
FCIES Testing Model Verification Model Validation
FCIES Testing FCIES Evaluation Approaching 5 local contractors classified at first class according to PCU The results show that the overall satisfaction of FCIES performance is 88.29%
FCIES Evaluation Allays fears of lack of sufficient information and expertise about FIDIC 99 Helpful in proper understanding the terms of FIDIC 99 FCIES advantages
FCIES Evaluation Helps to find creative ways for dealing with risks Provides sufficient flexibility in order to absorb facts and alternatives FCIES advantages
FCIES Evaluation Criticisms Responsibility and risk factors were built in the program, which limits the flexibility of FCIES FCIES calculates the cost impact of FIDIC 99 apart from cost estimating of bill of quantities
Majority of local contractors do not use formalized techniques for estimation purposes when pricing a bid Local contractors do not have suitable tools to estimate the cost impact of FIDIC 99 Introduction of DAB for settling disputes and FIDIC 99 discouraging disputes are the most appreciated features of FIDIC 99 Conclusions
Not well suitable to cope with large number of variations, Presence of some biased clauses against the contractor and Low contractor involvement in decisions related to design are the most disadvantages of FIDIC 99
Conclusions Providing different types of insurance Keeping the site and works clear from unnecessary obstructions, rubbish, temporary works and surplus materials. Complying with safety regulations The most important responsibilities are
Work interruption due to variations Delay in completing works Non-availability of goods, consumables and construction materials With-holding of interim payment certificate Conclusions The most important risks are
Conclusions FCIES was developed in order to help the local contractors to estimate the cost impact of FIDIC 99 FCIES evaluators are generally satisfied with its performance FCIES could play an important role in improving the cost estimation under FIDIC 99. FCIES
Proper understanding of terms of FIDIC 99 Better assessment of the financial impact of FIDIC 99 Flexible and easy to use Saves time and minimize efforts FCIES Advantages Conclusions
It is recommended that pricing team should be supported with the necessary tools and techniques More time and efforts should be provided at the front end of the project where experienced staff should be involved to manage or mitigate the risks and administrate the contract Recommendations
Risk documentation could be helpful in pricing future projects Early involvement of contractor reduces the possibility of excessive variations. It is recommended to encourage other types of contracts settings such as design-build or construction management Recommendations
Offering training courses about FIDIC 99 Contractors are invited to use FCIES in order to get more accurate cost estimation It is recommended to buy and store as much as possible of construction materials at the front end of a project
Recommendations for further studies Study and investigate probability distribution of different risk factors Integrate FCIES with cost estimation software in order to have comprehensive system Conduct another survey when the construction industry recovers and make comparative analysis