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EVALUATION OF CONSULTANT PERFORMANCE CEM 520 Ahmed S. Agha Abdulrahman A. Al-Hussain Professor Saadi Assaf January 2007.

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Presentation on theme: "EVALUATION OF CONSULTANT PERFORMANCE CEM 520 Ahmed S. Agha Abdulrahman A. Al-Hussain Professor Saadi Assaf January 2007."— Presentation transcript:

1 EVALUATION OF CONSULTANT PERFORMANCE CEM 520 Ahmed S. Agha Abdulrahman A. Al-Hussain Professor Saadi Assaf January 2007

2 Construction Engineering & Management Thesis of Master of Science Done by: Eng.Moahammed Fouad Abdulwahhab Directed by: Professor Saadi Assaf 2006

3 Table of Contents 1.Introduction 2.Literature review. 3.Research Methodology. 4.Results and Discussions. 5.Conclusions and Recommendations

4 INTRODUCTION

5 Introduction Importance of the consulting engineer role in the Arabian Gulf and world economies. (Maxwell, 1982) Consulting engineering services and responsibilities are poorly understood. (Maxwell, 1982) Consultant’s performance evaluation (CPE). (Thomas and Lai-Kit, 2004) performance measurement is a debatable subject.

6 Introduction A consulting engineer is an independent, professional engineer who per­forms professional engineering services for clients on a fee basis. (Maxwell, 1982)

7 Engineering Consultant Performance Poor engineering consultant performance is a major cause of: 1.Construction process inefficiency. 2.Direct delays. 3.Rework and variations. 4.Increases in project time and cost.

8 Evaluation Criteria 1.Quality of feasibility study report. 2.Quality of design. 3.Accuracy of cost estimate. 4.Administration of contract. 5.Supervision of contractor. 6.Project schedule control.

9 Research Objectives 1.Identify main criteria used to evaluate the engineering consultant performance in K.S.A. 2.Determine weight importance of each criteria. 3.Provide recommendations for improvement of the overall engineering consultant performance.

10 Significance of the Study what criteria might be taken into consideration?? weight importance of each criterion!!

11 Scope and Limitations 1.The contractors: Large construction contractors. (Grade 1, 2 or 3) as classified by the (MOMRA). 2. The consultants: Reputable. Past experience of more than 10 years in the construction field. 3. The Buildings: Built only in the Eastern province of Saudi Arabia. Construction projects of 10,000,000 S.R. or more.

12 LITERATURE REVIEW

13 The Engineering Consultant Definition: Consultancy refers to the professional help provided to the client in return for a fee, during which the consultant has certain powers and liabilities. (Jones and AL-Musallami, 1988) Consultant-client relationship should be based on mutual trust and confidence. (AL- Musallami, 1992)

14 The Engineering Consultant the consultant should exert every possible effort to act as an agent, and advisor to the client. (AL-Musallami, 1992) a consulting engineer is defined as a professional who mainly has two mixed capabilities of practical professional experience and those of a business person. (Al-Basher, 1998)

15 The Engineering Consultant Feasibility studies are required. before design begins. Design must be aesthetically satisfactory and also satisfy the need for it. Design must give an optimum balance between initial costs and future life costs. (AL-Musallami, 1992).

16 The Engineering Consultant Client’s will expect that the consultant to advise him in: Arranging for bids. Suggesting a suitable contract for construction. Proper supervision of the building process. Ensuring quality. Controlling cost. Building ready on time. Built to the best standards. Free from future maintenance problems. No extra cost to the sum first estimated at the design stage. (AL-Musallami, 1992)

17 The Engineering Consultant A good design: Meets the basic owner's requirements Is functional, aesthetically pleasing. Is cost effective to acquire, own and operate. Is well coordinated and readily biddable. (Garret, 1985)

18 Duties and Responsibilities 1.providing professional architectural or engineering expertise. 2.performing prior studies. 3.performing the most complex and advanced architectural or engineering work. 4.maintaining continual, high-level contacts with public and private officials. 5.project management. 6.defining drawings and design calculations required for works. 7.making independent decisions on a continual basis. 8.managing project budgets and approving the disbursement of funds. (Ofori, 2001)

19 The Client’s Duties Make basic firm decisions during the initial briefing period. Understand what he is being told and what his initial decisions mean. Realize that the pre-costing of building is not an exact science. Be closely involved during design stage and make further decisions as design develop. Approve the cost plan at the end of design stage. (Pszenicki, 1980)

20 Questions to be answered Does the consultant work to the quality expected? Does he really care about protecting the client's interest? including: 1.Proper site investigations? 2.Optimal design? 3.Good supervision? 4.Avoidance of less attractive alterations? 5.Proper decisions? 6.Good relations with the contractor? (Pszenicki, 1980)

21 Engineering Consultants Firms Services Pre investment studies Studies to establish investment priorities and sectored policies. Assess government operations and institutions for project formulation and implementation. Determine feasibility and justification of investment projects.

22 Engineering Consultants Firms Services Detailed engineering and design: Preparation of detailed design, Specifications, Cost estimates, and Tender documents.

23 Engineering Consultants Firms Services Project implementation: Supervision of project execution. Assistance in project operation for initial period. Execution of training programs. Institution building or financial studies for successful implementation of the project.

24 Engineering Consultants Firms Services Special services: Environmental evaluations Forensic engineering Geotechnical engineering Operational assistance Process design, pilot studies, computer modeling Safety engineering Surveying engineering Toxic and hazardous waste evaluation Permit and application services

25 Performance Model Performance = ζ (ability) x (motivation) (Vroom 1964) Performance = ζ (effort) x (ability) x (role perception) (Porter and Lawler 1968) Performance = ζ (ability) x (motivation) x (role perception X facilitating and inhibiting conditions not under the control of the individual) (Laufer and Borcherding 1981)

26 Performance Evaluation CONSULTANT PERFORMANCE EVALUATION Objective: Improve the quality of professional services. (FIDIC, 2001) Sub-objectives: Improvement of performance on the specific project assignment Achievement of better results and increased efficiency for the money invested Record (s) of performance for the purpose of qualifying consultants for future assignments (FIDIC, 2001)

27 RESEARCH METHODOLGY

28 Research Methodology According to the restrictions that were stated in the Scope & Limitations the list of consultants and contractors as presented in the Chamber of Commerce and MOMRA classifications includes: 72 consultants. 148 contractors. 88 owners. in the Eastern Province of Saudi Arabia.

29 Research Methodology The sample was determined using the equation given by (Kish, 1995)

30 Research Methodology N = Population size n = Sample size n 0 = Sample size from an infinite population V = Maximum standard error allowed p = Proportion of characteristic being measured in the target population q = Compliment of p (i.e. 1-p)

31 Research Methodology Minimum sample size for consultant’s population is 19. Go for 35. Minimum sample size for contractor’s population is 22. Go for 35. Minimum sample size for owner’s population is 13. Go for 30.

32 Research Methodology 1. Extremely important 100% 2. Very Important 75 % 3. Important 50 % 4. Somehow Important 25 % 5. Not Important 0 %

33 Criteria 1.Appreciation of background information. 2.Quality of recommendation during study. 3.Availability of innovative ideas 4.Accuracy of early cost estimate. 5.Quality of study report. 6.Compliance to client’s requirements. 7.Compliance to legislative requirements. 8.Identification of client’s requirements and project objectives. 9.Quality of design. 10.Availability of innovative and alternative solutions. 11.Approach to cost-effectiveness. 12.Quality of drawings. 13.Accuracy of cost estimate. 14.Quality of bid documents. 15.Bid assessment ( quality of bidding control). 16.Quality of report on returned bids. 17.Recruitment, supervision and administration of site staff. 18.Administration of contract. 19.Supervision of contractor. 20.Handling of claims

34 Criteria 21.Financial control of contract. 22.Quality of as-built drawings and records. 23.Maintenance inspection and drawing up list of defects. 24.Settlement of claims. 25.Settlement of final account. 26.Input of key personnel in the project. 27.Adequacy of professional input of key personnel. 28.Adequacy of schedule reporting. 29.Quality of program and progress report. 30.Program monitoring and control. 31.Relationship with the client. 32.Relationship with the contractor. 33.Relationship with other consultants. 34.Achievement of objectives and targets. 35.Responding quickly to the request and instructions of client. 36.Problem solving/avoidance ability. 37.General management skills. 38.Quality management. 39.Safety management. 40.Environmental management

35 RESULTS & DISCUSSION

36 Total Respondents' Ranking of the Consultant Evaluation Criteria Criteria No. Criteria Importance Index % Rank 9 Quality of design Compliance to client’s requirements Quality of bid documents (working drawings, BOQ. etc.) Recruitment, supervision and administration of site staff Supervision of contractor Appreciation of background information Identification of client’s requirements and project objectives Quality of drawings Problem solving/avoidance ability Achievement of objectives and targets Administration of contract Quality management Accuracy of cost estimate Relationship with the client Compliance to legislative requirements Maintenance inspection and drawing up list of defects Program monitoring and control Quality of as-built drawings and records Responding quickly to the request and instructions of client Safety management

37 Total Respondents' Ranking of the Consultant Evaluation Criteria Criteria No. Criteria Importance Index % Rank 27Adequacy of professional input of key personnel Quality of study report Settlement of final account Bid assessment (quality of bidding control) Adequacy of schedule reporting Accuracy of early cost estimate General management skills Quality of program and progress report Quality of recommendation during study Handling of claims Settlement of claims Quality of report on returned bids Financial control of contract Availability of innovative and alternative solutions Input of key personnel in the project (using his experience and capabilities( Relationship with the contractor Approach to cost-effectiveness Relationship with other consultants Environmental management Availability of innovative ideas

38 Comparison with previous study done in Hong Kong Thomas and Lai-Kit (2004) had finished the same study of evaluation of Consultant Performance in Hong Kong. They had only two groups of respondents (Consultants and Clients). A comparison between results of performance criteria importance which were conducted from both studies can be shown in the following slide:

39 Overall Respondent’s Ranking of both Studies Rank Recent Study in Saudi Arabia Previous Study in Hong Kong 1 9. Quality of design 34. Achievement of objectives and targets 2 6. Compliance to client’s requirements Quality of bid documents Recruitment, supervision and administration of site staff 7. Compliance to legislative requirements Supervision of contractor 8. Identification of clients' requirements and project objectives

40 CONCLUSIONS AND RECOMMENDATIONS

41 Conclusions The five most important Consultant Performance Evaluation criteria identified by all respondents were: Quality of design (Design Stage). Compliance to client’s requirements (Design Stage). Quality of bid documents (working drawings, BOQ. etc.) (Bidding Stage). Recruitment, supervision and administration of site staff (Construction Stage). Supervision of contractor (Construction Stage).

42 Conclusions The five least important Consultant Performance Evaluation criteria identified by all respondents were: Availability of innovative ideas (Feasibility Stage) Environmental management (Other Consultant Capabilities) Relationship with other consultants (Consultant Relationship) Approach to cost-effectiveness (Design Stage) Relationship with the contractor (Consultant Relationship)

43 Recommendations 1.Consultant characteristics have to be studied carefully from the owners’ side before awarding a contract and starting the project stages. 2.As Quality of Design is the most important consultant performance evaluation criteria, consultants should improve their capabilities in design and its quality issues. 3.Before project construction, careful and proper review of project design by all parties in the construction industry can improve overall consultant performance.

44 Recommendations 4.Consultants need to carefully consider their clients' requirements when they design the project to ensure that it meets their requirements and objectives. 5.Training courses are very important issues to improve the consultant performance. 6.Responsibilities of the consultant should be clearly understood by owners and other parties during all project stage. 7.Consultancy organization should invest in development, training, and acquire requirements needed for design improvement and quality supervision.

45 Thank you Ready to answer your questions!!


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