:AACE CERTIFICATION 2009-2010:

Hi all, weekend is coming then the time to submit 3rd blogs.
This week is a busy week for me,

I have deal on several problems within my on-going project in the last 2 weeks. And I try to inline with what I got from the AACE class at Mahakam, some is applicable directly, but some of it (I am not saying impossible) but considerably need time to change, ‘cause it related to changing the organization behavior.
I have one I think I would share to the team as follow:

I am interest to Dr. PDG email Oct 21, about the word “..... Because contractors often start work with no contracts in Asia, does not mean that is a “Best Practice”. I got the lesson learn on similar thing happen in my project just 2 weeks ago. The contract gets the contract already and we start the kick of meeting to coordinate the execution. Regarding the project is conveyor structural refurbishment which is needed to repair during operation, there is a number consideration regarding the risk of doing the work with conveyor online need to consider. Base on our construction’s risk assessment, we need to have propping support to the conveyor structure prior to installation scaffolding and access (the propping required to compensate additional load from the scaffolding and access). We agree that project team need to have AGREEMENT to the propping method first, prior to fabrication and installation.

Then design team do calculation for the propping, and come with the 1st prototype. But in contrary, the contractor supervisor, in order to take an advantage in the schedule, initiate fabrication of 1st prototype without notice to the project team.

The 1st prototype is being assessed by construction engineer and project team then final decision is we will to precede the 1st prototype, instead during the scaffolding access with difference approach. The contractor supervisor is in the meeting and looks in trouble...

The week after, looking to the progress claim report from contractor, the contractor charging me the 1st prototype propping fabrication, and he said the work has finish, so, (based the EV) worth for the payment.
I am arguing to them that I am will not proceed the payment, because the contractor supervisor doing lazy thing to fabricate the 1st prototype before the AGREEMENT; and their argumentation in EV is not valid since what their work (earned) is out of AGREEMENT. The supervisor walks away from my office and say that he want to discuss with their management.

My LESSON LEARNS:
We can see how risky to do work beyond the AGREEMENT. The agreement is a commitment which needs to deliver to the client. The client will rely on those commitments written in the AGREEMENT. And progress count by EV is only the AGREED scope.

To whom, in the real as an owner or contractor, often doing the work in advance (It is a smart way too but, does not mean is a “Best Practice) need to be ready to the consequence (or RISK) of taking those initiative.
I will say it a personal call, but I think should carefully asses the RISK by doing it to the business. If you fail to estimate the risk, it would be wasting our resources/effort.

In the future market competition, which is the margin is very low, doing above behavior is too risky for business.

B/R,Farid