HOME OFFICE OVERHEAD

The costs of delays involve many elements. Naturally, the direct costs are affected, but a contractor's efficiency, construction schedule, available favorable weather, impact costs, and even home office overhead may be affected. If the owner causes a compensable delay that forces the contract into a longer time frame, the contractor may be entitled to unabsorbed or extended home office overhead. There are several methods for calculation of the value of extended home office. For detailed information see the link below.

http://www.icoste.org/ZACK.pdf

FIELD PROCEDURE MANUAL (FPM)

The FPM is the seminal document for organizing and controlling the field operations to meet the project goals. The main value of the FPM in the early stages is an indoctrination tool for new people coming onto the project, so it must be issued early to be of value. Typically, a FPM is modeled on a previous version used on a similar project. The easiest way is to use the prior similar FPM and mark it up for present project conditions. That way a preliminary issue can be made rather quickly and then polished up as new project information becomes available. "Holds" can be put on those areas that are not yet firm in the preliminary issue. 

The main goals of the FPM are to set the project ground rules and to reduce about 90 percent of the field administrative activities to routine tasks. That allows for about a 10 percent demand of routine activities on the construction manager's time. The other 90 percent can be devoted to the nonroutine activities that normally beset a construction manager during a project. Construction manager need to remember that concept when developing the FPM, in order to force the decision-making process down to the lowest possible level on the project.

The FPM should be completed and issued in final form within the first 30 to 60 days of the project start. The FPM is always subject to revision as the project progresses, and changes to the procedures may become necessary. The contracting format has a considerable effect on the FPM content and structure.

This is a proposal for a supervision manual content:

1.    INTRODUCTION

1.1 Abbreviations

1.2 Authorities Responsible for Implementation of the Project

1.3 Definitions

2.    CONTRACTUAL BASIS FOR SUPERVISION

2.1. General

2.2 The Technical Assistance Service Contract

2.3 The Works Contract

2.4 Parties in the Contracts and main responsibilities

3. PROJECT ORGANIZATION

3.1 Organization of the Supervision Team

3.2 General Supervision Set-up

3.3 Job descriptions, Tasks and Responsibilities

3.4 The Engineer

3.5 The Resident Engineer

3.6 Document Registration System

4. SITE SUPERVISION PROCEDURES

4.1 Resident Engineer’s General Responsibilities

4.2 Review of the Contractor’s Documents

4.3 Reporting of Supervision Activities

4.4 Site Diary (Daily Report)

4.5 Inspections

4.6 Testing

4.7 Weekly Inspection Reports

4.8 Supervision Reports

4.9 Records of Site Photographs

4.10 Correspondence under the Contract

4.11 General

4.12 Notices

4.13 Instructions by the Engineer

4.14 Determinations

4.15 Site Meetings

4.16 Contractual Issues related to Site Meetings

4.17 Purpose of Site Meetings and Issues to be covered

4.18 Site Meeting Agenda

4.19 Site Meeting Procedures and Good Practice

4.20 Progress Reporting

5. CLAIMS, DISPUTES AND ARBITRATION

5.1 Employer’s Claims

5.2 Contractor’s Claims

6. VARIATIONS

6.1 Contractual Basis for Variations

6.2 Instructions of Variation

6.3 Variations related to Provisional Sums

6.4 Works Executed on Daywork Basis

6.5 Variation Order Procedure

6.6 Contractor’s Value Engineering

6.7 Contractor’s Request for Variation Order

7. PAYMENTS

7.1 Payments to the Contractor

7.2 Contractors Payment Applications

7.3 Engineer’s Payment Certificates

7.4 Time for Payment

7.5 Payments after Termination

7.6 Summary Time Limits for Certificates and Payment

7.7 Measurement and Quantity Control 

8. COMPLETION AND POST-CONSTRUCTION ACTIVITIES

8.1 Time for Completion

8.2 Tests on Completion

8.3 Employer’s Taking-Over

8.4 The Defects Notification Period(s)

8.5 Performance Certificate

9. AS BUILT DRAWINGS

9.1 Records as Work Proceeds

9.2 As-built Drawings to be provided by the Contractor

9.3 Submission to the Employer/Beneficiary

10. CONSTRUCTION MATERIALS

10.1 Materials Schedule

10.2 Acceptance Procedure

10.3 Acceptance on Site

11. HEALTH, SAFETY AND ENVIRONMENT

11.1 Hazards and Risks

11.2 Personal Protection Equipment

11.3 Environmental Management Plan

11.4 Regulations for Health, Safety and Environmental Protection

12. STANDARDS

13. FORMS

13.1 Document Checklist

13.2 Activity Review

13.3 Commencement of Works

13.4 Location and Benchmarks

13.5 Minutes for verifying the setting out

13.6 Minutes of hidden works

13.7 Minutes of checking the soil at foundation level

13.8 Protocol of foundation soil type verification

13.9 Protocol of acceptance of excavation level

13.10 Taking over protocol

13.11 Final taking over form

13.12 Protocol of handing over documentation

13.13 Nonconformity Report

13.14 Request for Inspection

13.15 Taking over Certificate

13.16 List of Defects

13.17 Defect Liability Certificate

13.18 Interim Payment Certificate

13.19 Final Payment Certificate

13.20 Performance Certificate