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Researcher Zakaria M. Aljarosha Supervisor Dr. Kamalain K. Shaath.

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Presentation on theme: "Researcher Zakaria M. Aljarosha Supervisor Dr. Kamalain K. Shaath."— Presentation transcript:

1 Researcher Zakaria M. Aljarosha Supervisor Dr. Kamalain K. Shaath

2 Statement of the Problem

3

4 Goal

5 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.

6 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.

7 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.

8 Methodology

9 Analysis of FIDIC 99

10

11 Field Survey

12 32 received 71 sent

13 Field Survey

14

15 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

16 Field Survey RankRIIMitigation ActionNo Insurance 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 Assign risk to suppliersj

17 Field Survey

18 RankRIIStatementNo Assumes 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

19 Field Survey

20 RankRIIMitigation ActionNo Non-availability of goods, consumables, etc Delay to complete work stated in the contract Work interruption due to variations Delay, impediment or prevention caused by employer Works or goods loss or damage Contractors design, workmanship or materials failure during suspension Temporary works loss or damage Contractors equipment loss or damage Delayed drawings or instructions due to contractors fault Interference in the convenience of public10

21 Field Survey RankRIIMitigation ActionNo Work interruption due to variations Non-availability of goods, consumables, etc Interim payment certificate with-held Contract termination by employer Delay, impediment or prevention caused by employer Failure to comply with engineers instructions Unforeseen disruption or delay by authorities Errors in positions, levels, dimensions or alignments Delay to complete work stated in the contract Work suspension is a responsibility of contractor10

22 FIDIC 99 Cost estimating System (FCIES )

23 FCIES Description

24 FCIES Testing Model Verification Model Validation

25 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%

26 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

27 FCIES Evaluation Helps to find creative ways for dealing with risks Provides sufficient flexibility in order to absorb facts and alternatives FCIES advantages

28 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

29 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

30 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

31 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

32 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

33 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

34 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

35 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

36 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

37 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

38 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

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