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Contract Management 1

Contract Management 1

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Published by: Sharman Mohd Shariff on Dec 06, 2010
Copyright:Attribution Non-commercial


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(a)Describe the eight parties involved in the traditional project contract procurementstrategy.The eight parties that are involved in the traditional project contract procurement strategyare:1.Promote2.Project Board3.Project Directo4.Project Team5.Consultants6.Site Supervision7.Contractors8.Sub-contractors(b)List the roles and responsibilities for each of the parties.
This is the client that moots the idea of the project in the first place. A Promoter willconduct a market forecast study to determine the feasibility of the project. The promoter must also make sure that the project fulfills various statutory obligations set forth by thelocal authorities.
Project Board
The Project Board is a group of people charged with regular oversight of the project.Collectively they should represent all significant areas of participation in the project andthey should have authority to take decisions on behalf of those areas. Members wouldtypically be departmental heads, Vice Presidents, or Directors, along with externalrepresentatives. The Project Director and Project Manager would normally report to theSteering Committee.
The Project Board will receive the ‘go-ahead’ (project authorization)from the promoter. The Project Board has to observe statutory restrains that if notproperly monitored, could put the project in jeopardy. They too have to report to thepromoter on the overall progress of the project.
Project Director 
The Project Director is the person appointed by the Project Board to oversee theexecution of the project. The Project Director has genuine executive authority over theproject. He/she has full accountability and responsibility for the project's success, andhas the power to make all decisions, subject to oversight by the Project Board
TheProject Director will appoint his Project Team to monitor the various aspects of theproject.
Project Team
The Project Team is appointed by the Project Director to conduct risk analyses andinvestment appraisal, undertake feasibility studies, develop the project brief anddetermine the procurement strategy.
Consultants or consulting engineers are charged with three main functions:
Management of the design process
Assistance in tendering and contract administration
Site supervisionTypically, a design brief or scope of works is prepared by the client organization andconsultants are selected on the basis of the quality of service provision and feecompetition. The successful consultant will then have direct contact with the client.
Site Supervision
Site supervision team is the ones responsible to oversee that the project specificationsand requirements are adhered to. They will compile reports to the consultants, theproject team as well as to the project director. They are accorded supervisory powers bythe consultant that appoints them. They can give instructions and approvals to thecontractors.

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