King Fahd University Of King Fahd University Of Petroleum and MineralsPetroleum and Minerals

Construction Engineering and Management Construction Engineering and Management     

CEM520 Construction Contracting and AdministrationCEM520 Construction Contracting and Administration  

Term PaperTerm PaperContract Documents Discrepancy in the Royal Contract Documents Discrepancy in the Royal

Commission Building Projects at JubailCommission Building Projects at Jubail        

Supervised By: Dr. Sadi AsafSupervised By: Dr. Sadi Asaf

Prepared By: Fouad Ghraizi / #: 240438Prepared By: Fouad Ghraizi / #: 240438

ContentContent

1-1-                                AbstractAbstract   2-2-                                IntroductionIntroduction

3-3-                                Literature ReviewLiterature Review   4-4-                                Survey QuestionnaireSurvey Questionnaire   5-5-                                Results and FindingsResults and Findings   6-6-                                Conclusion and RecommendationConclusion and Recommendation  

7-7- References References

1-1- AbstractAbstract

This paper depicts the causes, effects and controls that result and This paper depicts the causes, effects and controls that result and lead to contract discrepancies in the Royal Commission building lead to contract discrepancies in the Royal Commission building projects. A survey has been deducted by distributing a list of projects. A survey has been deducted by distributing a list of questionnaire to the Royal Commission Building contractors in questionnaire to the Royal Commission Building contractors in Jubail. As such questionnaire were set out on the basis of common Jubail. As such questionnaire were set out on the basis of common practice that depict the causes and effects leading to the contract practice that depict the causes and effects leading to the contract documents discrepancies and the control to be utilized to eliminate documents discrepancies and the control to be utilized to eliminate such a problem. The study of this paper comes out with a conclusion such a problem. The study of this paper comes out with a conclusion that the main cause for such discrepancy is to the changing in one that the main cause for such discrepancy is to the changing in one of the contract documents and fails to do so in others, noting to the of the contract documents and fails to do so in others, noting to the relation of the contract documents with each other. As it comes out relation of the contract documents with each other. As it comes out with a conclusion that the main effect in such discrepancy is to the with a conclusion that the main effect in such discrepancy is to the delay occurring in completing the contract schedule. And this study delay occurring in completing the contract schedule. And this study comes out with a conclusion that by providing adequate budget for comes out with a conclusion that by providing adequate budget for drafting the specification can minimize or eliminates the drafting the specification can minimize or eliminates the discrepancy occurring in the contract documents.discrepancy occurring in the contract documents.

2-2- IntroductionIntroduction

2.1-2.1-                  Background:Background:  

It’s well known that construction industry is one of the most It’s well known that construction industry is one of the most important industries in all over the world starting from the capital important industries in all over the world starting from the capital expended in this field to the number of workers engaged and expended in this field to the number of workers engaged and being one of the major capital wealth to any country.being one of the major capital wealth to any country.

  And if talking at the scale of Saudi Arabia, it can be clearly noticed And if talking at the scale of Saudi Arabia, it can be clearly noticed that construction industry has been facing a boom for the last that construction industry has been facing a boom for the last thirty years. Especially of the wealth created by oil industry that thirty years. Especially of the wealth created by oil industry that have been lead to an economic rapid development and lead have been lead to an economic rapid development and lead simultaneously to the need in infrastructure and cities expansion.simultaneously to the need in infrastructure and cities expansion.

Cont.Cont.

Unlike other types of industries, construction industry final product is Unlike other types of industries, construction industry final product is manufactures and assembled at its place. And such issue and due to the manufactures and assembled at its place. And such issue and due to the uniqueness of each item requires a proper management related to uniqueness of each item requires a proper management related to coordination, progress and quality control.coordination, progress and quality control.

  The construction industry in Saudi Arabia in general and JUBAIL specifically is The construction industry in Saudi Arabia in general and JUBAIL specifically is affected by many factors such as material delivery, weather, standards and affected by many factors such as material delivery, weather, standards and codes, etc. noting that the weather in JUBAIL is quite sever and mainly during codes, etc. noting that the weather in JUBAIL is quite sever and mainly during summer time as the humidity reaches up to over 90%. And this results a lot summer time as the humidity reaches up to over 90%. And this results a lot of conflict in duty hours, coordination etc.of conflict in duty hours, coordination etc.

  Due to the wealth created by oil industry and the results of that (mentioned Due to the wealth created by oil industry and the results of that (mentioned previously) and it’s affect in Saudi Arabia market, the one of the results of previously) and it’s affect in Saudi Arabia market, the one of the results of that is the Royal Commission for JUBAIL & YANBU that was established in that is the Royal Commission for JUBAIL & YANBU that was established in 1975 by a Royal Decree M/75, for developing the infrastructure facilities 1975 by a Royal Decree M/75, for developing the infrastructure facilities necessary to transform JUBAIL & YANBU cities into planned industrial necessary to transform JUBAIL & YANBU cities into planned industrial complexes and associated urban communities. And due to that, large and complexes and associated urban communities. And due to that, large and complex projects have been built, attracting contractors and construction complex projects have been built, attracting contractors and construction companies from all over the world.companies from all over the world.

Cont.Cont.

The Saudi Construction Industry uses the common The Saudi Construction Industry uses the common international industry standards such as ISO, ASCE, BSI, international industry standards such as ISO, ASCE, BSI, ASTM, and etc. plus the national code, which has been ASTM, and etc. plus the national code, which has been developed on the basis of international standards and developed on the basis of international standards and local expertise. The Royal Commission of JUBAIL & YANBU local expertise. The Royal Commission of JUBAIL & YANBU follows the international codes and standards. Also, it follows the international codes and standards. Also, it developed it’s own guideline specification that each of it’s developed it’s own guideline specification that each of it’s contractor has to respect and follow.contractor has to respect and follow.

  The contract documents in construction industry, are The contract documents in construction industry, are intended to direct the contractor in executing the project intended to direct the contractor in executing the project in a way meeting the client’s needs and requirements and in a way meeting the client’s needs and requirements and respecting the international and local codes.respecting the international and local codes.

Cont.Cont.

For that, the discrepancies in the contract documents and mainly between specs For that, the discrepancies in the contract documents and mainly between specs and drawings in particular, should be expected to happen during the and drawings in particular, should be expected to happen during the construction stage. Many reasons lead to such discrepancies can be listed as construction stage. Many reasons lead to such discrepancies can be listed as follows but not limited to:follows but not limited to:

   --             Changes and correction in one of the contract documents and fail to Changes and correction in one of the contract documents and fail to

do so in do so in the others the others

--                        Improper use of superseded drawings or specifications.Improper use of superseded drawings or specifications.

-- Inadvertent omission of necessary instructions. Inadvertent omission of necessary instructions.

-- Lack of coordination and agreement between drawings and Lack of coordination and agreement between drawings and specification. specification.

-- One of the contract documents is updated and the rest are kept One of the contract documents is updated and the rest are kept outdated. outdated.

Cont.Cont.

The foregoing items are causes that will be leading to The foregoing items are causes that will be leading to discrepancies in contractor documents resulting in site discrepancies in contractor documents resulting in site construction conflict.construction conflict.

  For that, such causes should be taken into consideration to For that, such causes should be taken into consideration to eliminate any conflict that will be leading to site progress eliminate any conflict that will be leading to site progress delay.delay.

  And, the goal of the study run out under this paper is to And, the goal of the study run out under this paper is to find out the causes and effects leading to the discrepancies find out the causes and effects leading to the discrepancies in the contract documents related to royal Commission of in the contract documents related to royal Commission of JUBAIL & YANBU Industrial City Projects and the solution JUBAIL & YANBU Industrial City Projects and the solution recommended to avoid so.recommended to avoid so.

Cont.Cont.

2.2-2.2-                  Statement of Problem:Statement of Problem:

As explained previously discrepancies in the contract As explained previously discrepancies in the contract documents are to be expected in the construction works. documents are to be expected in the construction works.

  This kind of discrepancy leads to the contractors right to This kind of discrepancy leads to the contractors right to ask for change order. For that, identifying the ask for change order. For that, identifying the discrepancies causes is very important to avoid potential discrepancies causes is very important to avoid potential changes in future projects and eliminate the conflict will be changes in future projects and eliminate the conflict will be occurred due to that during the construction stage which occurred due to that during the construction stage which always work against the client benefits.always work against the client benefits.

Cont.Cont.

2.3-2.3-                  Objectives of this Paper Study:Objectives of this Paper Study:

The main objectives of this study is as follows:The main objectives of this study is as follows:   -- Rank the causes of discrepancies in the contract Rank the causes of discrepancies in the contract documents in documents in

the the Royal Royal Commission of JUBAIL & YANBU Commission of JUBAIL & YANBU projects on the basis projects on the basis of of importance.importance.

-- Rank the effects of discrepancies.Rank the effects of discrepancies.

-- Rank the common procedures utilized in the Royal Rank the common procedures utilized in the Royal Commission Commission to control to control or eliminate the discrepancies.or eliminate the discrepancies.

  NB: The paper study is limited to the Royal Commission building NB: The paper study is limited to the Royal Commission building construction projects in JUBAIL Industrial City executed by local contractors.construction projects in JUBAIL Industrial City executed by local contractors.

Cont.Cont.

2.4-2.4-                  Research Methodology:Research Methodology:

The target of the study was to identify the causes and The target of the study was to identify the causes and effects resulting in the discrepancies in the contract effects resulting in the discrepancies in the contract documents related to Royal Commission of JUBAIL & documents related to Royal Commission of JUBAIL & YANBU and the procedures being utilized to eliminate so. YANBU and the procedures being utilized to eliminate so. A research of questionnaire was designed and distributed A research of questionnaire was designed and distributed to the Royal Commission building contractors to to the Royal Commission building contractors to determine, from their experience, the prevalence of each determine, from their experience, the prevalence of each cause, effect and control. As the contractor has the cause, effect and control. As the contractor has the flexibility to add any cause, effect or control they see it flexibility to add any cause, effect or control they see it visible to highlight and not mentioned under the visible to highlight and not mentioned under the questionnaire. At the end the causes, effects and controls questionnaire. At the end the causes, effects and controls were ranked on the basis of their importance.were ranked on the basis of their importance.

3-3- Statement of ProblemStatement of Problem

3.1-3.1- Components of Construction Contracts:Components of Construction Contracts:

The construction contracts are typically drafted by the owner or his The construction contracts are typically drafted by the owner or his representative (consultant) and contain the subject matter and terms representative (consultant) and contain the subject matter and terms and conditions:and conditions:

   --                                          Bid FormBid Form --                                          Agreement FormAgreement Form --                                          General Conditions or Standard SpecificationsGeneral Conditions or Standard Specifications --                                          Special ProvisionsSpecial Provisions --                                          Plans (Drawings)Plans (Drawings) --                                          AddendaAddenda  

This study will be mainly concentrating for the discrepancies between This study will be mainly concentrating for the discrepancies between specs and drawings in particular.specs and drawings in particular.

Cont.Cont.

3.2-3.2- Drawings:Drawings:

The drawings show the plans, sections, The drawings show the plans, sections, elevations, wall sections, etc. and are drawn to elevations, wall sections, etc. and are drawn to show all details needed to understand the show all details needed to understand the project for execution purposes and are project for execution purposes and are prepared by engineers. The drawings and prepared by engineers. The drawings and specification are the basis for the contractor’s specification are the basis for the contractor’s project cost and time estimate.project cost and time estimate.

Cont.Cont.

3.3-3.3- Specifications:Specifications:

The specifications are the part of the contract The specifications are the part of the contract documents that describes and define the quality documents that describes and define the quality requirement of the project to be built.requirement of the project to be built.

  Purpose of Specifications:Purpose of Specifications:  --             To clarify the thoughts and ideas of the To clarify the thoughts and ideas of the

designers and their vision of a complete project to the designers and their vision of a complete project to the people who will assist in construction the project.people who will assist in construction the project.To provide a specific document on which legal To provide a specific document on which legal contract can be based and executed.contract can be based and executed.

Cont.Cont.

Content of the Specification:Content of the Specification:  

The specifications usually consist of general conditions, The specifications usually consist of general conditions, standard construction provisions and special provisions.standard construction provisions and special provisions.

  General conditions refer to the basis legal and operating General conditions refer to the basis legal and operating rules under which contractor and agency will work.rules under which contractor and agency will work.

Standard construction provisions (Standard Specifications) Standard construction provisions (Standard Specifications) set forth the requirements for items commonly used in set forth the requirements for items commonly used in construction.construction.

  Special provisions are used to state modifications, additions Special provisions are used to state modifications, additions or deletions.or deletions.

Cont.Cont.

One often-misunderstand characteristics of a set of specifications is that it One often-misunderstand characteristics of a set of specifications is that it consists of the technical provision or standard specifications only. As it should be consists of the technical provision or standard specifications only. As it should be clear that the term “specifications” is not necessarily limited to the technical clear that the term “specifications” is not necessarily limited to the technical provisions only.provisions only.

  Another often-misunderstand characteristics of a set of specifications is that ‘the Another often-misunderstand characteristics of a set of specifications is that ‘the size of a specifications is in no way related directly to either size or cost of the size of a specifications is in no way related directly to either size or cost of the project’.project’.

  Construction Specification Institute of America (CSI) together with the Construction Specification Institute of America (CSI) together with the Construction Institute of Canada (CSC) has generated the specification master Construction Institute of Canada (CSC) has generated the specification master format.format.

  It contains of 16 divisions and has been developed to contain 49divisions It contains of 16 divisions and has been developed to contain 49divisions covering all aspects and different disciplines might be occurred in the building covering all aspects and different disciplines might be occurred in the building construction.construction.

  Many international institutes as for example AGA, NSPE, etc have adopted the Many international institutes as for example AGA, NSPE, etc have adopted the Specification Master Format.Specification Master Format.

Cont.Cont.

3.4-3.4- Causes, Effects and Controls of Contract Causes, Effects and Controls of Contract Document Discrepancies:Document Discrepancies:

As mentioned in the previous sections the contract As mentioned in the previous sections the contract documents of typical construction project consist of the documents of typical construction project consist of the Agreements itself, the General Conditions, Technical Agreements itself, the General Conditions, Technical Specifications, and Drawings, in addition to the Specifications, and Drawings, in addition to the provisions that are covered by reference to other provisions that are covered by reference to other documents. Unfortunately, but it’s the real fact contract documents. Unfortunately, but it’s the real fact contract documents often fail to adequately describe, define or documents often fail to adequately describe, define or delineate the work to be performed. This generates delineate the work to be performed. This generates what we call work disputes.what we call work disputes.

Cont.Cont.

Many of the Architect-Engineer firms do not Many of the Architect-Engineer firms do not repeat the same data on both documents. As repeat the same data on both documents. As for example things shown in technical for example things shown in technical specifications are not shown in drawings and specifications are not shown in drawings and vise versa. And this is to avoid the conflict vise versa. And this is to avoid the conflict might be raised due to changes may be might be raised due to changes may be occurred in one of the documents.occurred in one of the documents.

  As generally well known, in case of any As generally well known, in case of any discrepancy between the drawings and discrepancy between the drawings and technical specification the latest takes the technical specification the latest takes the precedence unless stated the opposite.precedence unless stated the opposite.

Cont.Cont.

Conflicts between the various clauses in the Conflicts between the various clauses in the specifications are the cause of much trouble in specifications are the cause of much trouble in construction work.construction work.

  As a result of a conflict, it would be possible for a As a result of a conflict, it would be possible for a contractor to claim to miss conflict so as to furnish or contractor to claim to miss conflict so as to furnish or perform the cheaper, resulting in site work dispute perform the cheaper, resulting in site work dispute between owner or his representative and the contractor. between owner or his representative and the contractor. As any modification from the original design for an As any modification from the original design for an activity already executed will be leading to the activity already executed will be leading to the contractor’s right to claim for additional compensation contractor’s right to claim for additional compensation to comply or implements the modifications.to comply or implements the modifications.

Cont.Cont.

After reviewing the literature, it can be easily After reviewing the literature, it can be easily ready to summarize and define the study ready to summarize and define the study targets and formulate the questions, basically targets and formulate the questions, basically it’s requires to investigate three areas, it’s requires to investigate three areas, namely, causes, effects and controls and to namely, causes, effects and controls and to find out these discrepancies and how it’s find out these discrepancies and how it’s treated by the Royal Commission building treated by the Royal Commission building contractors.contractors.

Cont.Cont.

3.-3.-            Discrepancies Causes:Discrepancies Causes:  

Below is a list of the major causes of discrepancy in contract Below is a list of the major causes of discrepancy in contract documents:documents:

   11--          Change one document and fail to change the other.Change one document and fail to change the other. 2-2-          Repetition of information in more than one document.Repetition of information in more than one document. 3-3-   Lack of specifics in specifications and sufficient details in Lack of specifics in specifications and sufficient details in

drawings.drawings. 4-4-          Specifications are not well prepared.Specifications are not well prepared. 5-5-          Lack of specification writer experience.Lack of specification writer experience. 6-6-          Human errors.Human errors. 7-7-          Typographical errors.Typographical errors.

8-8- Lack of coordination.Lack of coordination.

Cont.Cont.

33          Discrepancies Effects:Discrepancies Effects:  

There are numerous effects of discrepancy in contract documents; some of these There are numerous effects of discrepancy in contract documents; some of these effects are commonly encountered as listed below:effects are commonly encountered as listed below:

   1-1-                                  Initiation of a change order.Initiation of a change order. 2-2-                                  Decrease in productivity.Decrease in productivity. 3-3-                                  Delay in completion schedule.Delay in completion schedule. 4-4-                                  Dispute between owner and the contractor.Dispute between owner and the contractor. 5-5-                                  Decrease in quality.Decrease in quality. 6-6-                                  Increase in project cost.Increase in project cost. 7-7-                                  Delay in materials and tools.Delay in materials and tools. 8-8-                                  Work on hold.Work on hold. 9-9-                                  Increase in overhead expenses.Increase in overhead expenses. 10-10-                          Delay in payment.Delay in payment.

11-11- Demolition and re-work. Demolition and re-work.

Cont.Cont.

33 Discrepancies Controls:  

This item highlights the common control procedures used to minimize the This item highlights the common control procedures used to minimize the effects of discrepancy in contract document.effects of discrepancy in contract document.Listed as below:Listed as below:

1-1-                  Providing adequate budget for specification drafting.Providing adequate budget for specification drafting. 2-2-      Work only with a set of carefully prepared and coordinated front-end Work only with a set of carefully prepared and coordinated front-end

document. document. 3-3-                Qualified specification engineers shall control the sets of project Qualified specification engineers shall control the sets of project

specifications.specifications. 4-4-             Master specification document shall be used to create a set of job Master specification document shall be used to create a set of job

specification. specification. 5-5-                  Update the master specification at least annually.Update the master specification at least annually.

6-6- Legal and construction management personnel shall review Legal and construction management personnel shall review changes to changes to documents. documents.

4-4- Questionnaire SurveyQuestionnaire Survey

4.1-4.1- Questionnaire Design:Questionnaire Design:

The questionnaire design has been set out The questionnaire design has been set out taking into consideration the study objectives taking into consideration the study objectives and to highlight the causes, effects and control and to highlight the causes, effects and control for the discrepancies occurring in the contract for the discrepancies occurring in the contract documents related to the Royal Commission documents related to the Royal Commission contractors, the main target of the case study.contractors, the main target of the case study.

Cont. Cont.

4.14.1.1-4.14.1.1- Content of the Questionnaire:Content of the Questionnaire:

The questionnaire is divided into five sections:The questionnaire is divided into five sections:   1-1-               The first section includes instructions to respondent defining the key term The first section includes instructions to respondent defining the key term

in in the study and providing respondents with instructions on completing the the study and providing respondents with instructions on completing the questionnaire.questionnaire.

2-2-       The second section contains general information about the respondents The second section contains general information about the respondents such such as contact address, company size, etc. plus their expertise in the field of as contact address, company size, etc. plus their expertise in the field of

construction industry.construction industry. 3-3-       The third section addresses the causes of discrepancies, by defining a list of The third section addresses the causes of discrepancies, by defining a list of

major causes.major causes. 4-4-                The fourth section addresses the possible effects of discrepancies.The fourth section addresses the possible effects of discrepancies. 5-5-               And the last fifth section addresses the normally adopted controls of And the last fifth section addresses the normally adopted controls of

discrepancies.discrepancies.NB: Samples of the section forms will be seen in the following section of RESULTS AND NB: Samples of the section forms will be seen in the following section of RESULTS AND

FINDINGS.FINDINGS.

Cont.Cont.

4.1.2-4.1.2- The Statistical Sample:The Statistical Sample:

Two restrictions were imposed on the selection process Two restrictions were imposed on the selection process of respondents:of respondents:

   1-1-                  Restricted to Royal Commission, JUBAIL.Restricted to Royal Commission, JUBAIL. 2-2-             Restricted to building projects (excluding Restricted to building projects (excluding

industrial, industrial, highways and other types of construction).highways and other types of construction).  

The size of the sample required was determined on the The size of the sample required was determined on the basis of statistical principles for this type of exploratory basis of statistical principles for this type of exploratory research. For such research, sample size was research. For such research, sample size was determined as follows (Farooq, 1997):determined as follows (Farooq, 1997):

Cont.Cont.

No=(PxQ)/VNo=(PxQ)/V22 (1)(1)

N=No / [1+(No/N’)]N=No / [1+(No/N’)] (2)(2) Where:Where:No :No : First estimate of sample sizeFirst estimate of sample size PP :: The proportion of the characteristic being measured in the target The proportion of the characteristic being measured in the target

population. population. QQ :: Complement of ‘P’ or ‘1-P. Complement of ‘P’ or ‘1-P. VV :: The maximum standard error allowed. The maximum standard error allowed. NN :: The population size. The population size. N’N’ :: The sample size. The sample size.

To maximize N, P is set at 0.5. the target population N is 16 for contractors. To To maximize N, P is set at 0.5. the target population N is 16 for contractors. To account for more error in qualitative answers of this questionnaire, maximum account for more error in qualitative answers of this questionnaire, maximum standard error V is set at 10% or 0.1. Substituting in equations 1 and 2 above, standard error V is set at 10% or 0.1. Substituting in equations 1 and 2 above, minimum required sample is calculated to be 9.76. This means that minimum minimum required sample is calculated to be 9.76. This means that minimum sample size is 10. sample size is 10.

Cont.Cont.

4.1.3-4.1.3- Gathering Data:Gathering Data:

Questionnaires have been carried to the Questionnaires have been carried to the contractors, as the latest to fax back to the contractors, as the latest to fax back to the researcher after responding to the questionnaire researcher after responding to the questionnaire forms. The response was poor and visiting the forms. The response was poor and visiting the contractor’s site offices, which was the perfect contractor’s site offices, which was the perfect method to collect the data, has followed up method to collect the data, has followed up another data collecting. After one month there another data collecting. After one month there was a response from twelve contractors.was a response from twelve contractors.

Cont.Cont.

4.1.4-4.1.4- Scoring:Scoring:

The main sections of the questionnaire on causes, effects and controls use The main sections of the questionnaire on causes, effects and controls use basically an ordinal scale. This ordinal scale does not offer in its qualitative 5-basically an ordinal scale. This ordinal scale does not offer in its qualitative 5-point scale a direct quantitative comparison between its intervals. This scale point scale a direct quantitative comparison between its intervals. This scale will be transformed into an interval scale by assigning a weight to each will be transformed into an interval scale by assigning a weight to each interval. Therefore if we think of intervals from ‘NEVER’ to ‘VERY OFTEN’ as an interval. Therefore if we think of intervals from ‘NEVER’ to ‘VERY OFTEN’ as an interval scale from zero to 100, this can lead to transformation which will interval scale from zero to 100, this can lead to transformation which will enable carrying out the required parametric statistics.enable carrying out the required parametric statistics.

  The questions in section 2 of the questionnaire are either ordinal scale, The questions in section 2 of the questionnaire are either ordinal scale, nominal or ratio scale. Ordinal scale questions will be transformed into nominal or ratio scale. Ordinal scale questions will be transformed into interval scale as above. Ratio and interval scale questions will be used directly interval scale as above. Ratio and interval scale questions will be used directly in the analysis.in the analysis.

No scoring will be used for questions in section 2 of the questionnaire, since No scoring will be used for questions in section 2 of the questionnaire, since this section contains general information and characteristics of the market.this section contains general information and characteristics of the market.

Cont.Cont.

Sections 3, 4 &5 on causes, effect and controls respectively will be scored Sections 3, 4 &5 on causes, effect and controls respectively will be scored as follows to come up with an Index to indicate the prevalence:as follows to come up with an Index to indicate the prevalence:

VERY OFTENVERY OFTEN = = 100100 OFTENOFTEN == 7575 SOMETIMESSOMETIMES == 5050

                  SELDOMSELDOM == 2525NEVERNEVER == 00

Prevalence Index of each causes, effects or controls will be calculated as Prevalence Index of each causes, effects or controls will be calculated as follows:follows:IIci=100X1 + IIci=100X1 + 75X2 + 50X3 + 25X4 + 0X5 / (X1+X2+X3+X4+X5)75X2 + 50X3 + 25X4 + 0X5 / (X1+X2+X3+X4+X5)

Cont.Cont.

Where:Where:  IIci:IIci: Importance Index (C1 denotes cause 1 in this Importance Index (C1 denotes cause 1 in this

case)case)X1X1:: Number of respondent answering (VERY OFTEN)Number of respondent answering (VERY OFTEN)X2X2:: Number of respondent answering (OFTEN)Number of respondent answering (OFTEN)X3X3:: Number of respondent answering (SOMETIMES)Number of respondent answering (SOMETIMES)X4X4:: Number of respondent answering (SELDOM)Number of respondent answering (SELDOM)X5X5:: Number of respondent answering (NEVER)Number of respondent answering (NEVER)  

Causes, effects and controls will be ranked on the basis of Causes, effects and controls will be ranked on the basis of their indexes with the first rank assigned to the highest their indexes with the first rank assigned to the highest index.index.

5-5- Results and FindingsResults and Findings

In the analysis of obtained data, the same order used in the In the analysis of obtained data, the same order used in the questionnaire will be followed. Refer to the previous section questionnaire will be followed. Refer to the previous section concerning the explanation of each of the sections under the concerning the explanation of each of the sections under the questionnaire list.questionnaire list.

5.1-5.1- General Information and Industry General Information and Industry Characteristics:Characteristics:

The distributions of size and level of experience for contractors are shown on The distributions of size and level of experience for contractors are shown on below tables’ 5.1.1 & 5.1.2. Size of companies are categorized according to the below tables’ 5.1.1 & 5.1.2. Size of companies are categorized according to the number of employees as follows:number of employees as follows:

Very Large (more than 1000 employees)Very Large (more than 1000 employees) Large (between 500 and 1000 employees)Large (between 500 and 1000 employees) Medium (between 200 and 500 employees)Medium (between 200 and 500 employees) Small (less than 200 employees)Small (less than 200 employees)

Cont.Cont.

Table 5.1.1: Size of ContractorsTable 5.1.1: Size of Contractors

No. of EmployeesNo. of Employees No. of ContractorsNo. of Contractors

<200<200 00

200-500200-500 22

500-1000500-1000 66

>1000>1000 44

Cont.Cont.

Table 5.1.1 shows that 83% of the contractors have more Table 5.1.1 shows that 83% of the contractors have more than 500 employees and non less than 200 employees.than 500 employees and non less than 200 employees.

  The level of experience among participating contractors and The level of experience among participating contractors and consultants are classified as follows:consultants are classified as follows:

1.1. Very Long (more than 15 years)Very Long (more than 15 years) 2.2. Long (between 10 and 15 yearsLong (between 10 and 15 years 3.3. Short (between 5 and 10 years)Short (between 5 and 10 years) 4.4. Very Short (less than 5 years)Very Short (less than 5 years)

Cont.Cont.

Table 5.1.2: Contractors Years of ExperienceTable 5.1.2: Contractors Years of Experience

Over 66% of the contractors reported over 15 years of experience. None of Over 66% of the contractors reported over 15 years of experience. None of the contractors participating in the survey has experience less than 5 years.the contractors participating in the survey has experience less than 5 years.

Years of ExperienceYears of Experience No. of ContractorsNo. of Contractors

<5<5 00

5-105-10 00

10-1510-15 44

>15>15 88

Cont.Cont.

5.2-5.2- Causes of Discrepancy:Causes of Discrepancy: Table 5.2.1 below lists the results of responses of contractors on the causes of discrepancy:Table 5.2.1 below lists the results of responses of contractors on the causes of discrepancy:Table 5.2.1: Prevalence Index (PI) of CausesTable 5.2.1: Prevalence Index (PI) of Causes

Cause of Cause of DiscrepancyDiscrepancy

No. of RespondentNo. of Respondent PIPIVery Very OftenOften

OftenOften Some Some TimesTimes

SeldoSeldomm

NeverNever

1-Changing one document 1-Changing one document and fail to change the otherand fail to change the other

00 55 66 11 00 58.3358.33

2-Repetition of information in 2-Repetition of information in more than one more than one document/dwg.document/dwg.

00 44 66 22 00 54.1754.17

3-Lack of specifics in specs & 3-Lack of specifics in specs & sufficient details in drawings.sufficient details in drawings.

11 22 88 11 00 56.2556.25

4-Specifications are not well 4-Specifications are not well prepared.prepared.

00 00 1212 00 00 50.0050.00

5-Lack of specification writer 5-Lack of specification writer experience.experience.

00 00 44 88 00 33.3333.33

6-Human Errors6-Human Errors 00 00 88 44 00 41.6741.677-Typographical errors7-Typographical errors 00 00 88 44 00 41.7641.768-The lack of coordination 8-The lack of coordination between contractor & between contractor & consultant or other consultant or other contractorscontractors

22 11 22 77 00 45.8345.83

Cont.Cont.

The results in table 5.2.1 are depicted graphically (see below). It’s apparent that The results in table 5.2.1 are depicted graphically (see below). It’s apparent that the contractors rank cause no. 1 ‘changing one document and fail to change the the contractors rank cause no. 1 ‘changing one document and fail to change the other’ as the prime cause of discrepancy in the building construction.other’ as the prime cause of discrepancy in the building construction.

0

10

20

30

40

50

60

Cause1

Cause2

Cause3

Cause4

Cause5

Cause6

Cause7

Cause8

Cont.Cont.

The ranking of the discrepancy causes is as follows:The ranking of the discrepancy causes is as follows:  1.1. Changing one document and fail to change the other.Changing one document and fail to change the other.2.2. Lack of specifics in specifications and sufficient details in Lack of specifics in specifications and sufficient details in

drawings.drawings.3.3. Repetition of information in more than one document / Repetition of information in more than one document /

drawing.drawing.4.4. Specifications are not well prepared.Specifications are not well prepared.5.5. The lack of coordination between contractor and The lack of coordination between contractor and

consultant or other contractors.consultant or other contractors.6.6. Human errors.Human errors.7.7. Typographical errors.Typographical errors.8.8. The lack of specification writer experienceThe lack of specification writer experience

Cont.Cont.

5.3-5.3- Effects of Discrepancy:Effects of Discrepancy:

Table 5.3.1 below summarizes the results of responses of the Table 5.3.1 below summarizes the results of responses of the contractors participated in the survey on the effect of contractors participated in the survey on the effect of discrepancy on the building projects. discrepancy on the building projects.

Cont.Cont.

Table 5.3.1: Prevalence Index (PI) of EffectsTable 5.3.1: Prevalence Index (PI) of Effects Cause of Cause of DiscrepancyDiscrepancy

No. of RespondentNo. of Respondent PIPIVery Very OftenOften

OftenOften Some Some TimesTimes

SeldoSeldomm

NeverNever

1-Initiate a change order1-Initiate a change order 00 22 44 66 00 41.6741.672-Decrease in productivity of 2-Decrease in productivity of workersworkers

00 11 77 44 00 43.7543.75

3-Delay in completion 3-Delay in completion scheduleschedule

22 44 44 22 00 62.5062.50

4-Disputes between owner 4-Disputes between owner and contractorand contractor

00 33 44 55 00 45.8345.83

5-Decrease in quality of work5-Decrease in quality of work 00 00 66 22 44 29.1729.176-Increase in cost of project6-Increase in cost of project 22 00 88 22 00 54.1754.177-Delay of materials and tools7-Delay of materials and tools 44 11 11 66 00 56.2556.258-Hold on work in other areas8-Hold on work in other areas 22 22 22 66 00 50.0050.009-Increase in overhead 9-Increase in overhead expensesexpenses

22 22 66 22 00 58.3358.33

10-Delays in payment10-Delays in payment 22 22 66 00 22 54.1754.1711-Demolition and re-work11-Demolition and re-work 00 22 44 44 22 37.5037.50

Cont.Cont.

Prevalence of Discrepancy EffectPrevalence of Discrepancy Effect

010203040506070

Effect1

Effect2

Effect3

Effect4

Effect5

Effect6

Effect7

Effect8

Effect9

Effect10

Effect11

Cont.Cont.

The ranking of discrepancy effects in the building projects listed in the The ranking of discrepancy effects in the building projects listed in the descending order is;descending order is;

  1.1. Delay incompletion schedule.Delay incompletion schedule.2.2. Increase in overhead expenses.Increase in overhead expenses.3.3. Delay of material and tools.Delay of material and tools.4.4. Increase in cost of the project.Increase in cost of the project.5.5. Delays in payment.Delays in payment.6.6. Hold on work in other areas.Hold on work in other areas.7.7. Disputes between owner and contractor.Disputes between owner and contractor.8.8. Decrease in productivity of workers.Decrease in productivity of workers.9.9. Initiate a change order.Initiate a change order.10.10. Demolition and re-work.Demolition and re-work.11.11. Decrease in quality of work.Decrease in quality of work.

Cont.Cont.

5.4-5.4- Controls of Discrepancy:Controls of Discrepancy: Table 5.4.1 shows the summary of the results of survey responses from the Table 5.4.1 shows the summary of the results of survey responses from the contractors participated in the survey. contractors participated in the survey.

Table 5.4.1: Prevalence Index (PI) of EffectsTable 5.4.1: Prevalence Index (PI) of Effects Cause of Cause of DiscrepancyDiscrepancy

No. of RespondentNo. of Respondent PIPIVery Very OftenOften

OftenOften Some Some TimesTimes

SeldoSeldomm

NeverNever

1-Provide adequate budget for 1-Provide adequate budget for drafting specificationsdrafting specifications

88 22 22 00 00 87.5087.50

2-Work only w/ a set of 2-Work only w/ a set of carefully prepared carefully prepared &coordinated front-end &coordinated front-end documentsdocuments

66 44 22 00 00 83.3383.33

3-Place the control of each set 3-Place the control of each set of project specs in the hand of of project specs in the hand of a single qualified engineera single qualified engineer

66 22 44 00 00 79.1779.17

4-Use only a copy of master 4-Use only a copy of master specs documents to create a specs documents to create a set of job specs. Don’t use old set of job specs. Don’t use old one.one.

66 44 22 00 00 83.3383.33

5-Update the master specs at 5-Update the master specs at least annually.least annually.

44 22 44 22 00 66.6766.67

6-Project engineer should not 6-Project engineer should not edit the front-end documentsedit the front-end documents

66 22 22 22 00 75.0075.00

Cont.Cont.

Prevalence of Discrepancy Controls:Prevalence of Discrepancy Controls:

The ranking of the controls utilized by contractors to safeguard against occurrence of The ranking of the controls utilized by contractors to safeguard against occurrence of discrepancy or to minimize their impacts if they occur is as follows:discrepancy or to minimize their impacts if they occur is as follows:

  1.1. Provide adequate budget for drafting specifications.Provide adequate budget for drafting specifications.2.2. Work only with a set of carefully prepared and coordinated front-end document.Work only with a set of carefully prepared and coordinated front-end document.3.3. Use only a copy of master specification documents to create a set of job specification. Use only a copy of master specification documents to create a set of job specification.

Don’t use a previous job specification documents.Don’t use a previous job specification documents.4.4. Place the control of each set of project specification in the hands of a single qualified Place the control of each set of project specification in the hands of a single qualified

specification engineer.specification engineer.5.5. Project engineers should not edit the front-end documents.Project engineers should not edit the front-end documents.6.6. Update the master specification at least annually.Update the master specification at least annually.

0

20

40

60

80

100

Control 1 Control 2 Control 3 Control 4 Control 5 Control 6

Cont.Cont.

5.5-5.5- Comments from Respondents:Comments from Respondents: The following comments are made by contractors on the The following comments are made by contractors on the

questionnaire forms and are documented here for reference. The questionnaire forms and are documented here for reference. The comments are documented here as written on the forms with slight comments are documented here as written on the forms with slight correction if necessary.correction if necessary.

1.1. As an additional cause of discrepancy, it has been noticed that the As an additional cause of discrepancy, it has been noticed that the technical specification sections are developed and issued in the early technical specification sections are developed and issued in the early stage of the Royal Commission establishment and are still being stage of the Royal Commission establishment and are still being included without modifying them. They shall be modified taking into included without modifying them. They shall be modified taking into consideration the development of the local industry, manufacturer consideration the development of the local industry, manufacturer and other international standards (other than American).and other international standards (other than American).

2.2. Asking for materials that are not in the specification is an additional Asking for materials that are not in the specification is an additional cause of discrepancy.cause of discrepancy.

3.3. As an effect of discrepancy, contractor is forced to bear the additional As an effect of discrepancy, contractor is forced to bear the additional correction effort of the discrepancy.correction effort of the discrepancy.

6-6- Conclusion and Conclusion and RecommendationsRecommendations

The cause of discrepancies in contract documents and their effects are influenced by The cause of discrepancies in contract documents and their effects are influenced by numerous interrelated factors. As the objective of this study as stated before is to numerous interrelated factors. As the objective of this study as stated before is to highlight the cause and effect of such discrepancy and the controls for that, which are highlight the cause and effect of such discrepancy and the controls for that, which are adopted by the Royal Commission building projects at JUBAIL Industrial City.adopted by the Royal Commission building projects at JUBAIL Industrial City.

Based on the field survey conducted and the results presented, the following can be Based on the field survey conducted and the results presented, the following can be concluded:concluded:

   1-1-            The contractors involved in the Royal Commission are large in size and most of them The contractors involved in the Royal Commission are large in size and most of them

reported over 15 years of experience.reported over 15 years of experience. 2-2-            Failing to change of documents when one is changed and the lack of specifics and Failing to change of documents when one is changed and the lack of specifics and

sufficient details in the specification and drawings are the two main causes of sufficient details in the specification and drawings are the two main causes of contract documents discrepancy. As lack of specification writer experience is contract documents discrepancy. As lack of specification writer experience is

the the least important cause.least important cause. 3-3-         Delay in completion the project schedule and the increase in project overhead Delay in completion the project schedule and the increase in project overhead

expenses is the two main effects for discrepancy. As the decrease in work expenses is the two main effects for discrepancy. As the decrease in work quality quality and demolition and re-work scored lower and are less prevalent.and demolition and re-work scored lower and are less prevalent.4-4- Finally providing adequate budget for drafting specifications ranked the first Finally providing adequate budget for drafting specifications ranked the first among among controls update. As updating the master specification at least annually ranked controls update. As updating the master specification at least annually ranked last.last.

Cont.Cont.

Based on the findings of this research with the Based on the findings of this research with the main conclusion listed previously, it’s main conclusion listed previously, it’s recommended to avoid the repetition of recommended to avoid the repetition of information since it is the common source of information since it is the common source of errors and contract documents conflict errors and contract documents conflict causing. The requirements should not be causing. The requirements should not be repeated after it’s once stated. Similarly a repeated after it’s once stated. Similarly a cross check shall be conducted once there are cross check shall be conducted once there are revisions made in the drawings.revisions made in the drawings.

7-7- ReferencesReferences

This term paper has been conducted on the basis of a This term paper has been conducted on the basis of a Master of Engineering Report and presented by Ahmad Master of Engineering Report and presented by Ahmad Said Al-Khamis and dated May 2003.Said Al-Khamis and dated May 2003.

  Noting that, such Masters report has been referred to Noting that, such Masters report has been referred to many resources / references and has been supervised by many resources / references and has been supervised by Dr. Saadi Assaf who has been advised for the Dr. Saadi Assaf who has been advised for the questionnaire forms layout and content.questionnaire forms layout and content.

  In addition, the questionnaire has been conducted at In addition, the questionnaire has been conducted at almost 16 numbers of Royal Commission contractors who almost 16 numbers of Royal Commission contractors who have responded properly to the questionnaire forms.have responded properly to the questionnaire forms.

Thank youThank youQ&AQ&A