Elective Course - Construction Engineering

1. Project Development
And like anything in life, a big task, broken down into a series of smaller tasks
suddenly doesn’t seem so big. A successful implementation of project development
can be separated into 5 project development phases:

 Initiation

 Planning

 Execution

 Controlling

 Closing

By completing each phase properly, you can be sure that you will turn out a well
thought-out and successful project.

1. Initiating

The first part of developing a successful project is to make sure that you are entirely
sure of everything that needs to be done and that you have a clear objective and title
for your project — after all, how can it be successful if you don’t know exactly what
the desired outcome is?

You should try to determine how you can measure your progress, and what
milestones you are trying to reach, This will give you an easy way to check on
progress and keep your team motivated.
2. Planning

This is probably the most important part of the whole process. Planning includes
organizing what will be done, when and by whom. It needs to be detailed and well
thought out to ensure that nothing is missed, carrying out risk assessments and
making sure that everyone has what they need to be able to do the tasks that are
required of them.
It is at this stage when you should look at detailed and realistic costing, timelines, risk
analysis, resourcing and communication systems. A detailed plan, such as one which
 you can make with the templates will help you with this and make the task a great
deal easier.

3. Execution

Now you have your project properly planned, you can start executing it. Make sure
that you stick to your plan as closely as possible, and have a communication hub
where stakeholders can collaborate on progress — like a project management
software. But it is also recommended that you continually review its progress and
make any changes or adaptations as you go.
4. Control

Control needs to be carried out during the execution stage. This is where you need to
try to ensure that the plan is kept to as closely as possible and that you are regularly
monitoring it to ensure that the project doesn’t spin out of control.

5. Closing

Once that the project is finished, it is recommended that you write a closing report,
giving a summary of the project, how well you managed to keep to the plan, any
changes that you had to make and why, and what you would do differently if you
were to carry it out again. This is helpful for the future planning of projects and
helping to make the next one even more successful.

The key to completing a successful project is all about the planning, and any help that
you can get in this process can make all of the difference.

Project management templates help with planning so you don’t end up over budget
and late, as well as making your project run as smoothly as possible. And by
following this 5-step project development process you can make sure that your
project is as successful and effective as it can be.

2. The Legal Perspective

First published
Legal Concepts in Contract and Project Management
June 10
Eric Tse Rating
(Download pdf version)

Introduction
As a project manager, especially in large engineering projects, there are many legal
concerns in contracts, damages and injuries. However different countries and provinces
have different law system so it is hard for PMI to integrate the details into the body of
knowledge.

I am not a legal practitioner so I cannot deliver professional legal advice. However I got
inspired by reading some law articles and would like to introduce some basic concepts
and analysis to projects managers regarding to contract and tort laws. Although the
legal reference background is based on the Canadian Ontario Engineering Law
Examination, it is beneficial for project managers worldwide to grasp those concepts, so
that project managers can have a rough idea before consulting their own lawyers.

The scope of this article is as followings. For the contract laws, we are going to
introduce five concepts:

 Equitable estoppels
 Fundamental breach
 Unilateral mistakes,
 Contract A in tendering process
 Legality of purpose for non compete clause.

Also we are going to talk about tort laws.

The above legal contracts are presented as a system for case analysis supported by
other simple legal concepts. A glossary will be supplemented at the end of the articles.

Contract

Contract is basically a verbal or written agreement between the owner and the service
provider. However in order to be legal enforcing (legally binding), five elements have to
included inside the contract. This includes:

 Mutual intent
 Offerings and acceptance
 Considerations
 Legality of purpose
 Capacity.

The contract will not be enforceable if any of the above items is missing.

Types of Contracts
There are different types of contracts, using the right type of contract is an effective
vehicle to manage the projects.

Type of contract Description and purpose

The owner knows the total price
needed. It is risky for the contractors if
they have a wrong estimation and not
Fixed price or lump sum contract
good at controlling the scope. There is
also an incentive for contractor to cut
corners.
It is to choose the lowest price per unit
Unit-Price contract of items. It is used when we are not
sure about how many items we want.
Provides the contractor with coverage
of cost. Percentage of the cost is the
rewards. Used when there isn't
Cost Plus Percentage Contract
enough time to finalize the detailed
plan. There is an incentive for
contractors to increase the cost.
Contractors get cost coverage, but
instead of a variable rewards, they get
a fixed rewards. There is an incentive
Cost Plus Lump-Sum Fee Contract for contractor to cut corners. Also
beware to negotiate the Lump-Sum
Fee depending on the scope of the
project since it is fixed.
There is an incentive for contractor to
reduce the cost. If the owner has a
Cost Plus Lump Sum Fee plus
reasonable original estimation,
Bonus Contract
otherwise the contractor will try to cut
cost.
The capped price control the total cost
Guaranteed Maximum Price plus
of the project while the contractor has
Bonus Contract
an incentive to cut cost.
Owner provides the specification.
Design-Build Contracts
Allows the work to proceed quickly.

Case study Methodology

To understand the legal principle is one thing. To apply the principles into cases is
another thing. To analysis the cases, we use a standard approach:

 Introduction (definition and purpose)

 Legal principles and systems (equitable estoppels, fundamental breach,
unilateral mistakes and contract A in tendering process, legality of purpose, tort
laws)
 Analysis (mapping the case to the principles)
 Conclusion

In the subsequent section, we present the specification of the legal principle and
systems, supported by the glossary. For case analysis, instead of elaborating the whole
flow using the methodology, we would just present the analysis mapping after a case is
presented.

LEGAL CONCEPTS

Contract Law, Equitable Estoppels

Definition

This is a failure to perform the obligations of a contract because there was no

consideration and, as a result, a contract is not formed. This principle is applied when
parties re-negotiate terms of a contract but do not exchange "new" consideration. A
promise rather than a contract is made.

Purpose

This concept is to prevent a party to a contract from enforcing the strict contractual
terms of the contract where doing so would produce an unfair result.

Legal Principles and system

Objects: (defendant), (plaintiff), (initial contract clause), (amended clause),

(dependency), (unfair action? not paying, withdraw contract),

Flow :

 Defendant and plaintiff form a contract

  There is a clause that if (plaintiff) does something, the contract is going to be
discharged or the payer is not going to pay. (initial contract clause)
 Defendant and plaintiff form a new agreement item, for example a new mutually
agreed assumption that has no considerations. (amended clause)
 Amended clause induces a dependency that, plaintiff depends on defendant in
order to take certain action otherwise the plaintiff will break the initial contract
clause.
 The plaintiff is not giving what the defendant depends on based on amended
clause.
 The defendant breach the initial contract clause because of 5)
 The plaintiff is trying to execute the unfair action (refuse to pay or terminate the
contract) based on the strict wordings of the initial contract clause.
 Plaintiff ask the court to help
 Court estops the unfair action initiated by the plaintiff.

Case Study

An information technology firm submitted a bid to design and install software and
hardware for an electronic technology process to control the operation of large scale
sorting equipment for a major international courier company. The firm's fixed
guaranteed maximum price was the lowest bid and the contract was awarded to it. The
contract conditions entitled the information technology firm to terminate the contract if
the courier company did not pay monthly progress payments within 15 days following
certification that a progress payment was due.

Pursuant to the contract, the certification was carried out by an independent engineering
firm engaged as contract administrator. The work under the contract was to be
performed over a 5 month period.

After commencing work on the project the information technology firm determined that it
had made significant judgment errors in arriving at its bid price and that it would face a
major loss on the project. Its concern about the anticipated loss was increased further
when it also learned that, in comparison with the other bidders, its bid price was
extremely low and that, in winning the bid, it had left more than one million dollars "on
the table".

Two monthly progress payments were certified as due by the independent engineering
firm and paid by the courier company in accordance with the terms of the contract.
However, after the third monthly progress payment was certified as due by the
independent engineering firm, the courier company's finance department asked the
information technology firm's representative on the project for additional information
relating to an invoice from a subcontractor to the information technology firm.
The subcontractor's invoice comprised a portion of the third progress payment amount.
The courier company's finance department requested that the additional information be
provided prior to payment of the third progress payment. There was nothing in the
signed contract between the information technology firm and the courier company that
obligated the information technology firm to provide the additional information on the
invoice from its subcontractor. However, the information technology firm's
representative did verbally indicate to the courier company's finance department that the
additional information would be provided.

The additional information relating to the subcontractor's invoice was never provided by
the information technology firm. Sixteen days after the third progress payment had been
certified for payment, the information technology firm notified the courier company in
writing that it was terminating the contract because the courier company was in default
of its obligations to make payments within fifteen days pursuant to the express wording
of the contract. Was the information technology firm entitled to terminate the contract in
these circumstances? In giving reasons for your answer, identify and explain the
relevant legal principle and how it would apply.

Analysis Mapping

Objects and Flows Corresponding Mapping in the case

Defendant information technology firm
Plaintiff courier company
The contract conditions entitled the information
technology firm to terminate the contract if the
Initial contract clause courier company did not pay monthly progress
payments within 15 days following certification
that a progress payment was due
The courier company's finance department
requested that the additional information be
provided prior to payment of the third progress
payment. There was nothing in the signed
contract between the information technology firm
and the courier company that obligated the
Amended clause information technology firm to provide the
additional information on the invoice from its
subcontractor. However, the information
technology firm's representative did verbally
indicate to the courier company's finance
department that the additional information would
be provided.
 The courier company's finance department
requested that the additional information be
Dependency
provided prior to payment of the third progress
payment.
The additional information relating to the
subcontractor's invoice was never provided by
the information technology firm. Sixteen days
after the third progress payment had been
Unfair action? not paying, certified for payment, the information technology
withdraw contract firm notified the courier company in writing that it
was terminating the contract because the courier
company was in default of its obligations to make
payments within fifteen days pursuant to the
express wording of the contract.

Contract Law, Legality of Purpose for non-compete clause

Definition

Legality of purpose is one of the essential elements of an enforceable contract. A

contract is not enforceable if it is against public policy, such as prevent someone from
earning a living through a non compete clause. The court must determine whether the
non-compete clause is reasonable and in terms of time and geography. If it is
reasonable, then it is enforceable.

Purpose

To prevent owners to violate public policy using contracts.

Legal Principles and system

Objects: plaintiff, defendant, non-compete clause, breach contract, public policy,

consideration if the clause reasonable (time and geography), conclusion if the contract
is enforceable or not

Flow

 Plaintiff set a non-compete clause with defendant

 Defendant breach the contract clause
  Plaintiff sue defendant
 Defendant claim clause violate public policy
 Court consider if the non compete clause is reasonable
 Conclude if the contract is enforceable or not

Case Study

A professional engineer entered into a written employment contract with a Toronto-

based civil-engineering design firm. The engineer's contract of employment stated that,
for a period of five years after the termination of employment, the engineer would not
practise professional engineering either alone, or in conjunction with, or as an
employee, agent, principal, or shareholder of an engineering firm anywhere within the
City of Toronto.

During the engineer's employment with the design firm, the engineer dealt directly with
many of the firm's clients. The engineer became extremely skilled in preparing cost
estimates, and established a good personal reputation within the City of Toronto. The
engineer terminated the employment contract with the consulting firm after three years,
and immediately set up an engineering firm in another part of the City of Toronto.

The engineer's previous employers then commenced a court action for an injunction,
claiming that the engineer had breached the employment contract and should not be
permitted to practise within the City limits. Do you think the engineer's former employers
should succeed in an action against the engineer? In answering, state the principles a
court would apply in arriving at a decision.

Analysis Mapping

Objects and Flows Corresponding Mapping in the case

Defendant engineer
Plaintiff Owner of the engineering design firm
for a period of five years after the termination of
employment, the engineer would not practise
Non-compete clause
professional engineering either alone, or in conjunction
with, or as an employee, agent, principal, or
 
shareholder of an engineering firm anywhere within
the City of Toronto
Breach contract The engineer terminated the employment contract with
the consulting firm after three years, and immediately
 set up an engineering firm in another part of the City of
Toronto
Public policy Prevent someone for earning a living
Time: 5 years after termination is too long
Consideration if the clause
reasonable(time and Geography: City of Toronto is a very large city and the
geography) engineer is just trying to open his firm at the north end
of the city.
The non-compete clause prevent the engineer to
Conclusion if the contract is
make a living in his city for 5 years. Therefore the
enforceable or not
contract is not enforceable.

Contract Law, Unilateral Mistakes and Contract A in Tendering process

Definition

Tendering process is a process that candidates submit a bid to an owner results in the
formation of a contract known as Contract A. Therefore, the owner would have
numerous contracts with all the contractors who submitted bids.

Unilateral mistake is a mistake made by one party to a contract. Traditionally, the courts
have said that when a mistaken is made, this is too bad the mistaken party has to be
bound by the terms of contract.

However in Belle River, the Provincial Court of Appeal state that an offeree cannot
accept a contract where he knows of the mistake and it affects the fundamental terms of
the contract. However, the Supreme Court of Canada in Ron Engineering mortally
wounded the principles outlined in Belle River. The court decided that in the tendering
process, a contract is formed between the owner and the bidder - called contract A. The
owner's request's for bids was the offer and the contractor's submission of a bid was the
acceptance. Consideration is exchanged in the form of deposit.

Purpose

This is a system specified to deal with unilateral mistakes in a tendering process. When
a mistake is made, can the mistaken party be relieved of the consequences? Is the
mistaken party eligible to get the deposit back?
Legal Principles and system

Objects: owner (plaintiff, other party), bidder (defendant, mistaken party), evidence of

fraudulent, Does the plaintiff know about the mistakes before the tender is open?,
contract A formed?, Contract A offerer, Contract A offeree, Contract A consideration,
Breach of Contract A?, Contract A Damages, Contract A Conclusion. Contract B
formed?, Contract B offer, Contract B offeree, Contract B consideration, Contract B
damage, Contract B Conclusion.

Flow

 Traditionally the courts have said that when a mistaken is made, this is too bad
the mistaken party has to be bound by the terms of contract.
 However in Belle River, the Provincial Court of Appeal state that an offeree
cannot accept a contract where he knows of the mistake and it affects the
fundamental terms of the contract.
 Do we have any evidence that owner was fraudulent?
 Does the plaintiff know about the mistakes before the tender is open?
 No matter what, contract B is not formed since it is not defendant intention to
form contract B. Go to Stage three.
 However, the Supreme Court of Canada in Ron Engineering The court decided
that in the tendering process, a contract is formed between the owner and the
bidder - called contract A. The owner's request's for bids was the offer and the
contractor's submission of a bid was the acceptance. Consideration is exchanged
in the form of deposit.
 If the owner (plaintiff) tried to recover additional damages, then consider if
contract B is formed and whether the plaintiff is entitled to additional money.
Usually, plaintiff is not entitled because it is not defendant intention to form
contract B.

Case Study

An information technology hardware supplier ("BIDCO") for part (a)) submitted a fixed
price bid on a major computer installation project for a large engineering firm, in
response to the engineering firm's request for proposals. BIDCO included with its
tender, as required, a certified cheque for $100,000 payable to the engineering firm as a
tender deposit. The request for proposal also provided that if the tender was accepted
by the engineering firm and the successful bidder did not execute the contract enclosed
with the request for proposal the engineering firm would be entitled to retain the tender
deposit for its own use and to accept any other tender.

BIDCO made a clerical error in compiling its tender submission, omitting an amount of
$1,000,000 from its tender price of $6,000,000. BIDCO drew the clerical error to the
attention of the engineering firm within 5 minutes after the official time for submitting
bids had expired. BIDCO indicated that it wished to withdraw its tender but the
engineering firm refused to allow it to do so and awarded the supply contract to BIDCO.

Was BIDCO entitled to withdraw its bid? Was the engineering firm entitled to keep the
tender deposit? Please provide your reasons and analysis, explaining the relationships
and indicate a likely outcome.

Analysis Mapping

Objects and Flows Corresponding Mapping in the case

Owner (plaintiff, other
engineering firm
party),
Bidder (defendant,
BIDCO
mistaken party),
Evidence of fraudulent, No evidence
Does the plaintiff know BIDCO drew the clerical error to the attention of
about the mistakes before the engineering firm within 5 minutes after the
the tender is open?, official time for submitting bids had expired.
Contract A formed?, Contract A formed. Owner is offered. Bidder is
Contract A offerer, offeree. Consideration is a certified cheque for
Contract A offeree, $100,000 payable to the engineering firm as a
Contract A consideration tender deposit. engineering firm
Breach of Contract A?, If BIDCO withdraw its tender
Damages are the amount arising naturally from a
breach or those that are reasonably foreseeable
Contract A Damages, or contemplated by the parties when they
entered the contract. This case is the $100,000
deposit.
engineering firm entitled to keep the tender
Contract A Conclusion
deposit
Contract B formed?, There is no need to consider since Plaintiff is not
Contract B offer, Contract asking for additional damage recovery. Usually,
B offeree, Contract B plaintiff is not entitled anyways because it is not
consideration, Contract B defendant intention to form contract B.
damage, Contract B
Conclusion.  
Contract Law, Fundamental Breach

Definition

A fundamental breach of contract is defined as a breach of such a nature that is goes to

the root of the contract.

The contract included an exemption clause that limited the defendant liability to certain
amount of money for any loss, damage or injury resulting from defendant performance
of its service under the contract.

According to Harbutt's Plasticine, if there is a fundamental breach of contract, then the

exemption clause attempting to limit liability to a nominal sum is ineffective. At the same
time, in England, this principle was overruled by a case called Photo Production, saying
that the parties should be bound by the strict wording of the contract and the
fundamental breach was irrelevant.

However there has been a move away from the fundamental breach in some country
like Canada. According to a decision of the Supreme Court Canada in Syncrude v.
Hunter Engineering, if there is a clear and direct language in the exemption clauses,
and where the parties are of equal power, the exemption clause will be upheld.
Essentially the court preferred to allow parties to agree on whatever terms they wanted
to, provided that they had equal bargaining power.

Purpose

To determine the exemption clause is enforceable and the amount of the claim that can
be made against defendant.

Legal Principles and system

Objects: Fundamental breach, Exemption clause, Damages

Flow :

 Fundamental Breach
 What is the fundamental breach?
 Why this is a fundamental breach?
 Exemption Clause
 What is exemption clause?
 Is it clear?
 Is there evidence proving this is unfair bargaining of power?
  The parties should have no objections to the exemption clause. If it is not the
case, these terms would not have been agreed to.
 Damages
 Damages are the amount arising naturally from a breach or those that are
reasonably foreseeable or contemplated by the parties when they entered the
contract
 Because the total liability was contemplated to be (exemption clause monetary
amount), when entering into the contract, damages are foreseeable.
 Even though the plaintiff needed to pay more to compensate, the defendant's
liability is limited by the exclusion clause.
 Therefore, the defendant is only responsible for amount outlined in the exemption
clause rather than the full amount paid by the plaintiff to repair the problem.
 If the defendant tries to limit its liability to any consequential damages, the direct
damages are recoverable but not the consequential damages.
 Conclusion
 According to Supreme Court of Canada in Syncrude v. Hunter Engineering, the
wordings of the contract between the parties are "clear/unclear".
 Therefore the exemption clause is effective and in the circumstances of a
fundamental breach of contract and the defendant is liable/not liable for the
amount stated in the exemption clause.

Case Study

ACE Construction Inc. is a company primarily engaged in the business of supplying

heavy equipment used in construction. As part of the company's economic plan to
expand its business, ACE became interested in the rock crushing business. ACE had
become aware that International Metals Company LTD. ("IMCO") required a contractor
to crush, weigh and stockpile approximately 250,000 tons of ore. As ACE believed this
was an excellent opportunity to venture into the rock crushing business, it decided to
tender on the IMCO contract.

In order to tender on the contract, ACE set out to purchase the necessary equipment to
crush the material. ACE was contacted by a representative of Rock Busters Ltd., a
company which sold such equipment. After visiting the IMCO site and determining the
nature of the material to be crushed, the representative discussed the IMCO's contract
with ACE. After performing a number of calculations, the representative determined and
guaranteed that the equipment Rock Busters would provide would be capable of
crushing the material at a rate of 175 tons per hour.

On the basis of the guarantee, Rock Busters and ACE entered into a contract. Rock
Busters agreed that if ACE were successful in its tender to IMCO, Rock Busters would
provide the equipment for a price of $400,000. The contract also contained a provision
limiting Rock Buster's total liability to $400,000 for any loss, damage or injury resulting
from Rock Buster's performances of its services under the contract. Based on the
information provided by the representative, ACE prepared and submitted its tender to
IMCO. IMCO accepted the tender and entered into a contract with ACE to crush the
material.

The rock crushing equipment was set up at the IMCO site by employees of Rock
Busters and crushing operations commenced. However, from the beginning there was
trouble with the operation. One of the components of the crusher, called the cone
crusher consistently became plugged by the accumulation of material. Each time the
cone crusher became plugged, the operation would have to shut down and the
blockage cleared manually. In some cases, such blockages caused damage to the
equipment.

Rock Busters made several unsuccessful attempts to correct the defect by making
modifications at the site and at its factory. The crushing equipment was never able to
crush more than 30 tons of materials per hour.

In order to meet its obligations under the IMCO contract, ACE hired another supplier to
correct the defects in the Rock Busters equipment. For an additional $500,000 the
supplier replaced the cone crusher with one manufactured by another company. The
modified equipment was able to crush the material at the rate of 180 tons per hour. The
total amount which had been paid by ACE to Rock Busters was $350,000.

Explain and discuss what claim ACE can make against Rock Busters in the
circumstances. Would ACE be successful in its claims? Why? In answering, please
include a summary of the development of relevant case precedents. In particular, point
out how the law changed because of these relevant case precedents. Identify the legal
principles on which the precedent decisions were based and apply the appropriate legal
principle to the facts.

Analysis Mapping

Objects and Flows Corresponding Mapping in the case

owner ACE
defendant Rock Busters
Fundamental breach? Yes. A fundamental breach of contract is defined
Why? as a breach of such a nature that is goes to the
root of the contract

The equipment Rock Busters would provide

would be capable of crushing the material at a
rate of 175 tons per hour.
 Rock Busters made several unsuccessful
attempts to correct the defect by making
modifications at the site and at its factory. The
crushing equipment was never able to crush
more than 30 tons of materials per hour.
Exemption Clause The contract also contained a provision limiting
Rock Buster's total liability to $400,000 for any
  loss, damage or injury
Is Exemption clear?
clear
 
Don't think so
Is there evidence proving
this is unfair bargaining of Based on the information provided by the
power? representative, ACE prepared and submitted its
tender to IMCO. IMCO accepted the tender and
  entered into a contract with ACE to crush the
material.
Damages are the amount arising naturally from a
breach or those that are reasonably foreseeable
or contemplated by the parties when they
entered the contract. This case is the $400,000
Damages
Because the total liability was contemplated to be
(exemption clause monetary amount), when
entering into the contract, damages are
foreseeable.
According to Supreme Court of Canada in
Syncrude v. Hunter Engineering, the wordings of
the contract between the parties are
"clear/unclear".
Conclusion
The exemption clause is effective and in the
circumstances of a fundamental breach of
contract and the defendant is liable for $400,000
stated in the exemption clause.

Tort Law
Definition

Tort is a wrong committed by the one person against another. There is no need for a
contractual relationship to exist between the parties. In order for a tort action to
succeed, it is essential to prove the following on a balance of probabilities:

 The defendant owned a duty of care to the plaintiff.

 The defendant breached the duty of care by his/her conduct
 The defendant caused the plaintiff's injuries.

Purpose

It is to compensate a party that has suffered damages as a result of a negligent act or

omission.

Legal Principles and system

Object: plaintiff, defendants (party of defendant, employer, employee), tasks to perform,

negligence of firm, negligence of employee, damages

 Duty of care means there is an obligation to perform services using a reasonable

degree of care and skill of a prudent and diligent worker in the circumstances
 The parties of defendant should know they plaintiff rely on their expertise to do
the work.
 Negligence of firm
 Negligence of employee
 Negligence of employer
 Damages were incurred by the plaintiff from the defendant's negligence.
 Therefore, the defendant breached the duty of care owed to the plaintiff.
 Employee's Liability
 Duty of care means there is an obligation to perform services using a reasonable
degree of care and skill of a prudent and diligent worker in the circumstances
 The employee should know the following:
o i. Negligence of the employee
o ii. Plaintiff depends on employee expertise to do (tasks to perform)
o iii. Damages were incurred by the plaintiff because of employee's
negligence.
o iv. Therefore, defendant breached the duty of care owed to the plaintiff.
 Employer Liability
  As the employee employer, employer is vicariously liable for the employee's
negligent actions or omissions. As a result the, the employer is negligent and
responsible for the damages suffered by the plaintiff.
 Damages
 List out what damages the plaintiff suffered from. The defendants could have
reasonably foreseen that its actions could have caused damage
 List out the damages and the amount to repair the product
 Conclusion
 Court would balance the probabilities, determine that the defendants were
negligent as they own duty of care, breach the duty of care and caused injuries to
the plaintiff.
 Damages (quantify the amount) were sustained by the plaintiff and should be
recovered against the defendants.

Case Study

An information technology firm assigned to one of its junior employee engineers the
task developing special software for application on major bridge designs. The employee
engineer had recently become a professional engineer and was chosen for the task
because of the engineer's background in both the construction and the "software
engineering" industries.

The resulting bridge software package was purchased and used by a structural
engineering design firm on a major bridge design project on which it had been engaged
by contract with a municipal government. Unfortunately, the bridge collapsed in less
than one year after completion of construction. Motorists were killed and injured.

The resulting investigation into the cause of the collapse concluded that the design of
the bridge was defective and that the software implemented as part of the design did
not address all of the parameters involved in the scope of this particular bridge design.
The investigators concluded that although the design software would suffice for certain
types of structures it was not appropriate in the circumstances of the particular
subsurface conditions and length of span required for this particular application.

The investigators' report also indicated that the design software package was not
sufficiently explicit in warning users of the software of the scope of the design
parameters addressed by the software.

The investigators' report also stated that even an experienced user of the software
might reasonably assume that the software would be appropriate for application on this
particular project and that too little attention had been paid to ensuring that adequate
warnings had been provided to software users of the limitations on the application of the
software.
What potential liabilities in tort lawyer in this case? In your answer, explain what
principles of tort law are relevant and how each applies to the case. Indicate a likely
outcome to the matter.

Analysis Mapping

Objects and Flows Corresponding Mapping in the case

Plaintiff
structural engineering design firm
 
Defendants (party of information technology firm, junior employee
defendant) engineers
Employer information technology firm
Employee junior employee engineers
special software for application on major bridge
Tasks to perform
designs
the design software package was not sufficiently
explicit in warning users of the software of the
scope of the design parameters addressed by the
software
Negligence of firm
vicariously liable

fail testing and review of the software

Negligence of employee design of the bridge was defective
Damages The bridge collapsed in less than one year after
completion of construction. Motorists were killed
and injured. The resulting The defandants could
have reasonably forseen that its actions or
omission could have caused damge. The
defendant caused the plaintiffs damages by
breaching their duty of care. The damages are
the bridge collapsed in less than one year after
completion of construction, and motorists were
killed and injured.

 
 A court would, on a balance of probabilities,
determine that the defendants were negligent as:
there was a duty of care owed, they breached
their duty of care and cuased injuries to the
plaintiff. Damages were sustained by the plaintiff
and should be recovered against the defandants.

Conclusion

The article introduces equitable estoppels, fundamental breach, unilateral mistakes and
contract A in tendering process, legality of purpose for non compete clause, tort laws.

The above legal contracts are presented as a system for case analysis supported by
other simple legal concepts. A glossary will be supplemented at the end of the articles.

Although this article focus on legal issues of project and contract management, it is
beneficial for project managers worldwide to understand those concepts, so that project
managers can have a rough idea before consulting their own lawyers.

  

Glossary

Consequential Damage

Damage or injury that does not directly and immediately result from a wrongful act , but
instead indirectly and/or after elapse of some time. Consequential damage usually
cannot be foreseen and is often unrecoverable through litigation , unless the offending
party was notified in advance that the aggrieved party would suffer such damage. Also
called indirect damage or special damage . See also consequential loss .

Defendant

A person, company, etc., against whom a claim or charge is brought in a court (opposed
to plaintiff).

Exemption clause
Provision in a contract under which one party (usually the one which drafted the
agreement) is protected from being sued by the other party for damages, loss,
negligence, non-performance, etc., or its liabilities are severely restricted

Liability

A liability can mean something that is a hindrance or puts an individual or group at a

disadvantage, or something that someone is responsible for, or something that
increases the chance of something occurring

Plaintiff

A person who brings suit in a court

Vicariously Liable

Vicarious liability is a form of strict, secondary liability that arises under the common law
doctrine of agency - respondent superior - the responsibility of the superior for the acts
of their subordinate, or, in a broader sense, the responsibility of any third party that had
the "right, ability or duty to control" the activities of a violator. It can be distinguished
from contributory liability, another form of secondary liability, which is rooted in the tort
theory of enterprise liability.

Reference

[1] D.L. Marston, "Law for Professional Engineers, Canadian and Global Insights" 4th
Edition, 2008, McGraw-Hill Ryerson. ISBN: 978-0070985216

The Author

Eric Tse is an international recognized expert/consultant in Enterprise Access and

Identity Management Architecture Design and Implementation. He has been working
with international renowned experts in information technology in many prestigious
companies. He also pursues research interests in project management, financial
models, application/enterprise/solution architectures, compilation technology and
philosophy of science.

3. The Construction Process

What is the Construction Process
There is always a certain flow and process that a project will follow. Construction project

management doesn’t change at its core even when the project size and dollar amount

does. Because these core steps in project management work regardless of project type,

size, or other differentiating factors. These are the 5 common steps that all projects go

through in the construction process.

Conception

The first step in any construction process is the conception of the project. This starts

when the person who owns the land or building wants something done. Here they will

raise the money, start to gather clearer ideas, and come to a decision about the

purpose of the project. Construction isn’t involved yet, but architects, engineers, and

construction managers might be involved to guide the ideas with what can actually be

accomplished.

Design

The design step is the next step. This is where the architects and engineers take the

plans, designs, and drawings and ensure everything fits all regulations. They will talk to

the project owner to make sure that the project fits their vision, and afterward they will

open the project up to bidding. Using the documents the engineers and architects have

created contractors and subcontractors will create their bid documents and submit bids

to the construction manager.

Pre-Construction
 The pre-construction phase is one of the larger phases in construction. This is the stage

where all contractors, subcontractors, engineers, architects, and project stakeholders

get together to discuss the project. This is where the initial schedule, responsibility

matrix, estimation, and clarification takes place. Information such as:

 Job site access

 

 Quality Control procedures

 

 Material storage
 

 Hours
 

 Etc.
 

This information is crucial to be able to get the project successfully off the ground.

Construction

This is where the groundbreaking actually can begin. This is the section where

construction starts. As long as there are no remaining questions, the project

management plan should be in effect and everything should work seamlessly. However,

this isn’t what usually happens. Instead, there are typically hiccups throughout the

project that can cause delays and cause the project to go over budget. Digital
construction management solutions, careful monitoring, and corrective action can

lessen the blow of delay.

Post-Construction

This is the final step in the construction process. This is where the contractors,

architects, engineers, and subcontractors gather to closeout the project. The closeout

process happens around substantial completion, where the project fits the contract

completion and the owner can now use it for the intended purpose. This is also where

budgets are reconciled, outstanding change orders and submittals are closed out, and

the paperwork is finalized.

With this stage, it’s incredibly important to have all documentation ready to go. This is

the only way that subcontractors can prove any submission dates and work done.

Documentation is how subcontractors protect their bottom-line, prove the work they did,

and prove work ordered.

Who Does What in the Construction Process

The construction process has many different roles and users. Depending on the place

of employment and job there, someone will be involved in different areas of the

construction process. These are the different jobs that will interact with the construction

process.

Construction Manager

The construction manager is an integral part of the construction process, they are

responsible for overseeing the entire project from conception/design to post-

construction. Depending on the size of the project, it could be a team of construction

managers working on the project or just one. They are responsible for setting the

budget, planning, and overseeing the project progress. They often set schedules and

choose the subcontractors, and will do a variety of tasks for one project alone.

Architect and Engineer

The architect and engineer hold different jobs on a project, but sometimes their duties

overlap. An architect will take the client’s vision and develop a solution. They create the

drawings and plans, are responsible for overseeing questions and communication in

regards to those plans, and will oversee their execution to a degree. They often times

will do the calculations to determine the materials needed for certain aspects of the

project.

Engineers will also work on a project. They might be an outside engineering firm that

turns drawings from the architect into 3D or BIM models for the contractors to work off

of. They typically will do any and all calculations regarding material usage. Sometimes

electrical, mechanical, or other types of construction workers will have their own

engineers to design their portions of the project and perform their own calculations.

Estimator and Accounting

The estimator and accounting department hold important roles in the construction

process. The estimator will look over the construction plans, schedule, and other detail

and determine an estimate of costs for the project. There will be estimates prepared for
the owner to determine general costs for the building. With all subcontractors having

their own estimator to determine how long a project will take.

The accounting department is responsible for consolidating the books. They keep track

of the costs of goods sold, expenses and overhead, and often personnel. They are

responsible for consolidating the books at the end of the project and keeping track of

the budget during the project.

Project Manager

If there isn’t a construction manager, a project manager might fill that void in the

construction process. The project manager often has similar responsibilities to the

construction manager, but they often work for a general contractor hired to manage the

project. They will help with the planning, resource allocation, staffing, budget and more,

just like the construction manager.

Superintendent

The construction superintendent is a crucial component in the construction process,

they run the day-to-day operations on a site. They often will manage the immediate

schedule, quality control, coordination efforts, and more. The general contractor and the

subcontractors are likely to have their own superintendents working on a project,

especially if it is a larger project.

 
The superintendent would manage all of the field crews for the subcontractor. They are

also responsible for most of the documentation of what happens when they’re on the job

site.

Field Worker

The end of the construction process roles chain is the field worker. They might not have

immediate say in the schedule or budget, but they are integral to the completion of the

project. The field workers make the project a reality.

Optimizing the Construction Process

The best way to optimize the construction process is through increased visibility. The

only way to get increased visibility into the construction process is through

documentation. Documentation supports communication which optimizes the

construction process.

4. Leading Projects, People and Teams

The successful completion of projects is the primary responsibility and goal of the
Project Manager, who will have a lot of weight on their shoulders when it comes
to making the right decisions.

While some people possess natural leadership qualities, other leadership skills
must be learned and adapted to ensure that each individual’s approach to
leadership is tailored to suit their own individual style and personality.

So, what are the fundamental qualities of a good project manager?

Excellent communication and interpersonal skills

The ability to share a clear vision and inspire others
Positive attitude and enthusiasm
Integrity
Competence
Cool, calm disposition
Problem solver
Team builder
Excellent delegator
Excellent decision maker
1. Communication
Excellent communication skills are vital to enable a project manager to
communicate effectively with a broad spectrum of people at different levels within
an organization and externally.

In order to lead a project, you must be able to clearly communicate your vision,
goals, guidelines, and expectations to others.

The ability to deliver and receive constructive feedback and listen to others is
another important part of leading a team of individuals. Essentially, being a great
communicator is a key element to working well with others in any work
environment.

2. Sharing a Vision
The ability to see the ‘bigger picture’ behind a project and effectively convey that
vision to others is an incredibly valuable and important quality in a Project
Manager.

Successfully articulating the vision of a project ensures the team can experience
it in their mind and helps to get them on board without delay.

3. Positive Attitude
A leader with an eternally full cup and a positive mental attitude is a pleasure to
engage with and their enthusiasm automatically rubs off on others.

Being committed to a project and displaying confidence in it impacts positively on

the team and forms the basis of a happy, productive work environment.

4. Integrity
Part of being a great team leader is the ability to gain the trust of your team.

By demonstrating that you are committed to adhering to both your values and
ethical practices in general, team members will soon recognize that you are an
honest leader.

5. Competence
When a leader is unable to demonstrate that they are competent and capable,
they will be unable to gain the respect and trust of their team and colleagues.

A team must always feel confident that their leader is in control and knows
exactly what they are doing.

6. Cool, Calm and Collected

Regardless of how well a project is planned, there will always be obstacles of
some sort to overcome along the way. A good Project Manager will never panic
or lose their head when things go wrong.

Instead they will remain calm, assess the problem, and find the best way to
resolve it, in order to put the project back on the right track.

If things become too stressful at any point, any flapping or excessive sweating
should be done in private.

Related: Do I Have To Be Born With Leadership Skills?

7. Problem Solver
A great project manager should possess excellent problem solving skills and be
resourceful and creative in their general approach to problems.

On many occasions when working on a project, this may be as a simple case of

identifying the right person(s) within the team to help you resolve the problem
quickly and effectively.

Sometimes, the real skill here is in truly grasping the issues behind the problem,
as this is always a fundamental element of the problem solving process.

8. Team Builder
A strong, happy team is a productive one. For the project to reach a successful
conclusion the team need to be working well together for a common purpose.

Within any team of individuals, you will find a variety of personalities that will
need to somehow gel together to form a positive dynamic.

Part of successfully leading a team will involve learning about each individual’s
skills and personality in order to get the best out of the team as a whole.

Spotting areas of conflict within the team early on and managing conflict is
crucial.

9. Delegator
Having a good understanding of your team members allows you to delegate
tasks to the right individuals for the best possible results.

Team members will respond well to a manager who delegates appropriate tasks
that are well suited to their skill set and subsequently trusts them to get on with it.

Encourage staff to approach you to discuss any queries or difficulties if they need
to rather than undermine them by constantly checking up on them and they will
feel more valued.
 10. Decision Maker
The personal decisions you make as a Project Manager have a direct impact on
the success of a project and ultimately the success of the business itself.

In order to be strong in this area, it is essential that you arm yourself with all of
the information you need from the outset so that when the time comes, informed
decisions can be made quickly.

At times, however, it is inevitable that mistakes will be made. After all, it is

impossible to make the best decisions all of the time!

If and when the wrong decision is made, an excellent leader will be able to put
their hands up, be accountable, and take responsibility.

There is nothing worse than a leader who points the finger when things go wrong
instead of taking responsibility for their own decisions.

A Project Manager with the Right Ingredients

Project managers who have strong technical skills and also consistently
demonstrate competence in the key skills and qualities listed above are a huge
asset to any organization and significantly increase the success of the projects
they lead.

A strong, dedicated team leader goes hand in hand with consistently successful
project management.
5. Managing Projects
Regardless of the size of the project and if you’re hired as freelancer or in-house,
project managers have the difficult task of not only launching a project, but also making
sure that everything runs smoothly and collaborating with team members and the client.
It can actually get stressful. But, if you properly plan and manage the project, things
don’t get as hectic.

If this is your first opportunity at managing a project, here’s how you can efficiently
manage a project from start to finish.

Plan Your Project

Each and every project manager will tell you that the success of your project comes
down to planning. This may take some effort initially, but in the long-run having a clearly
defined project plan will save you time, money, and a lot of headaches once the project
launches.

To get started on creating project plan, focus on the following components:

 Identify your project. To get started, you want to breakdown the project by
understanding what the project really entails For example, telling you team that
 you want to build a house is very broad. But, telling them that you want to build a
vacation home on the beach provides a better understanding on what the project
really is.
 Define goals and objectives. After you’ve narrowed down your project, it’s time
to establish the goals and objectives you want to accomplish. Your goals are the
‘what,’ such as increasing the amount of visitors to your website. Your objectives
are the ‘how.’ If you want to increase the amount the visitors to your website, you
could accomplish that be launching a content marketing campaign.
 Define tasks. You’ll need to clearly define the tasks involved to complete the
project. For example, if you’re planning on launching a content marketing
campaign, key tasks would include starting a blog, hiring writers, researching the
content that your audience finds relevant, and promoting and sharing your
content.
 Build your team. Who are the people who are going to help you on the project?
And, what are their roles and responsibilities? Typically, your team should
include the Project sponsor, experts to define the scope of the project, the
Project manager, the team responsible working on the project, and realizing who
the people are you will by using the project. When building your team, try to keep
it as small as possible.
 Be aware of any project killers. Are there any team members or distractions
that will prevent you from completing the project on-time? If so, identify and
address these project killers so that the project can run smoothly.
 Create a timeline. Break down tasks into stages and establish deadlines on
when you want your goals and objectives to be completed. Knowing how long
each stage takes to complete assists you in keeping the project on track.
 Get feedback. After getting your initial plan, seek feedback from your team,
stakeholders, and clients before proceeding.
 Adjust your plan accordingly. Even the most efficient of project plans won’t
account for the unforeseen problems that may arise. Have some flexibility with
your plan so that you can adjust and plan accordingly.

Once you have your plan in place, and everyone involved is on board, write the plan
down so that it can be used as your road-map during the course of the project.

Keep the Project on Track

Having your project plan clearly defined can help guide you throughout the project, but
that doesn’t mean that you can completely neglect the project and expect it to be
completed without constantly reviewing, revising, and monitoring the project.

To ensure that the project stays on track, make sure that you:

 Schedule regular intervals to check on the project. Whether it’s every other

day or once a week, you need to make it a point to schedule an amount of time
to review the progress of the project.
  Be flexible. Trust your team when working on the project. Even though you have
a vision and a plan in place, your team are the experts that have the knowledge
and experience to make it a reality. If they have suggestions, keep an open mind
and listen to what they’re saying.
 Communicate with your team. Keep everyone in the loop and provide frequent
status updates. Better yet, schedule weekly meetings so that everyone has the
most recent updates and can address any issues. For example, if a deadline had
to be moved up and your team doesn’t know this information, then how can you
expect them to complete their work by the new deadline?
 Address any problems before they occur. Prepare for any obstacles in
advance so that you can handle them before they become a problem. If you
know that you need a writer to compose 3 daily blog posts, then make sure that
you have a writer on board who can handle the workload.
 Provide direction. As the project manager, it’s your responsibility to keep the
team informed and make sure that everything runs smoothly. To do so, you need
to provide your team with the appropriate resources and information so that they
can complete the project on-time.

Utilize Project Management Software

No matter how detailed your plan and prepared you are, you’re bound to run into a
number of hiccups. Thankfully, technology has made managing everything from social
media accounts to customer relationships more effective and convenient. Project
managers also have access to software that has made their lives easier.

Here are a couple of suggested project management software providers to keep you

organized and better communicate with your team.

 Basecamp: When it comes to project management, Basecamp is arguably the

leader of the pack. With a simple interface, you can use this software to write to-
do lists, create multiple projects, share files, schedule important dates, and have
discussions.
 Trello: Unlike other software, Trello lets managers organize to-do-lists and
discussions visually through the use of collaborative board.
 Wrike: This software can help you make sure that that tasks stay on track by
allowing you to assign tasks to team members and making sure that they have
the resources on hand.
 Asana: By integrating with your email, Asana is a great option if collaborating
with remote workers or freelancers. The software gives you the chance to
schedule tasks and share files via Google Drive or Dropbox.
 Zoho Projects: This powerful online project management tools comes equipped
with tasks and milestones, calendar and meetings, time tracking, reports, forums,
file storage, and even a chat-in app to improve collaboration.
 Podio: With Podio, you can communicate with your team, store files, and setup
task management. What makes Podio unique is that it can also be used as an
internal intranet for your team or even a CRM system.
  Due.com: Not to be be egomanaics here, but we have a solid platform (it has
been named one of the powerful project management tools) that project
managers could use if they want to track the time team members spent on a
project. We also issue productivity reports to assist with productivity.

Time Management

As the project management, you also have to be skilled at effectively managing your
time. If not, how do you expect the project to be completed on-time?

While there there are variety of techniques that you could use to manage your time,
here are some of the best techniques to follow:

 Delegate tasks. If you’re swamped, don’t hesitate to assign some other tasks to
a skilled and trusted team member so you can focus on your most important
tasks. You aren’t expected to do all the work. Your job is to make sure it gets
done.
 Prioritize your tasks. Speaking of priorities, make sure that don’t procrastinate
on your most important tasks. Complete them first, and then work on tasks that
aren’t as emergent.
 Run more effective meetings. Keep your meetings short and make sure that they
don’t get off topic. You also want your team to share their thoughts and provide
feedback on the progress of the project.
 Learn to say ‘no.’ Sometimes you just have to inform people that you don’t have
the time to talk or work on a new project. If not, you’ll get distracted and burnout.
 Write tomorrow’s task today. This will help you not only plan out your day, it
will also help you deal with that crisis awaiting you first thing in the morning. For
example, if you have your tasks outlined and you wake up to a crashed website,
you could delegate those tasks while you work on getting the site back-up.

Celebrate Milestones and Victories

What happens when you and your team complete a milestone or victory, like completing
the project ahead of schedule? It’s time for you and your team to celebrate.

One of the most popular ways to celebrate is by taking the team out to dinner and
having a couple of celebratory drinks. You can also show signs of appreciation by
knowing the team’s success during your next meeting, creating a brag board that
highlights an exceptional team member, offering meaningful rewards, and simply just
thanking them personally.

6. Contract Management RA 9184

7. Advanced Quality Assurance & Quality Control in Construction
Quality in Construction Projec
 Part 1.

Project Quality Management System and how to document it.

Mandatory standard operating procedures and how to document it.

Construction contract document is essential input in planning of quality

Essential elements of the technical and engineering requirements to plan quality.
Document the technical and engineering requirements of the project quality plan.

Part 2

-What is a project schedule, the steps to develop, and a primary document to

ensure project quality.
-Documentation and submittal process in construction project.
-Submittal process and the baseline schedule
-Other QMS documents.

8.  Health, Safety, & Environment (HSE) Management for Construction

Professionals

9. Construction Project Procedures, Submittals, and Approvals

Part 1.
Project Quality Management System and how to document it.
Mandatory standard operating procedures and how to document it.

Part 2- Lesson 1
Construction contract document is essential input in planning of quality
Essential elements of the technical and engineering requirements to plan quality.
Document the technical and engineering requirements of the project quality plan.

Part 2- Lesson 2

What is a project schedule, the steps to develop, and a primary document to

ensure project quality.
Documentation and submittal process in construction project.
Submittal process and the baseline schedule
Other QMS documents.