References References A b e y s e k a r a , W . K . V . M . , (1994). Condition of contract for minor works, their strengths and weaknesses. Construction project management national conference, Sri Lanka, pp. 86-113. A . D . B . P u b l i c a t i o n (1987). Hand book on problems in procumbent for projects financed by A.D.B. pp. 28-79 Bit te l , L.R. (1976). Right on time. MC.grow Hill Inc. New York. pp. 15 - 48 Bixson , P . J . (Dec. 1976). Property investment. Chartered Surveyor, Vol. 109(5). Chashan press Ltd. Buckingham shire, U.K. pp. 162. B r a n d o n , S .P . & F e r r y . D . J . (1991). Cost of planning of building. BSP professional books London, Edinburgh Boston, pp. 33-79. B r i t t o n , W . , D a v i d , K . & J o h n s o n , J . (1980). Modern method of valuation. Estate gezette Ltd., London. B r o a k e s , N . (Dec. 1977). Property development in U.K. Chartered Surveyor, Vol. 110(5). Cheshan press Ltd., Buckinghamshire, U.K. pp. 19- 21 C a d m a n , D . & Aus t i n i , L.(1981). Property development. E.&F.N. spon Ltd. U.S.A. pp. 27-126. C r e a v e s vs B a y i h a m Me ik l e a n d p a r t n e r s . (Date of court case not available.) D a v i d s o n , A . W . (1970). Parry's valuation tables & conversion tables. Estate gazette Ltd. London. 75 References D o n n e l y , J . H . & G i b s o n , J . L . (1984). Fundamentals of management. Business publication, INC. Piano, Texas, pp. 189-215. D u n c a n , A . J . (1965). Quality control & Industrial statistics. IRWIN, INC. Home wood, Illinois, U.S.A. G a j e n d r a n , T. (1995). Facilities management. Dissertation. Department of Building Economics, Univercity of Moratuwa. G u n a s e k a r a , M . (1994). Project management challenges in the local construction industry. Construction management national conference, Sri Lanka, pp. 41-48 G u n a s e k a r a , P . D . K . D . (1993). Project planning for better planning performance in construction projects. Dissertation. Department of Building Economics, University of Moratuwa. H a n s o n , B . L . (1966), Quality control. Practice Hall of India Pvt. Ltd. New Delhi pp. 1-256 H a r r i s , F & M C Caf fe r , R.(1989). Modern construction management. 3rd Ed, B.S.P. professional books Edinburgh, Bostan, Melbourne, pp. 19-42. H a r v e y , J . (1981) Urban Land Economics Mackyas of Chatham, Kent. U.K. H e t t i a r a c h c h i , J.N. (Jan/June 1997). Selection of a building site. Real estate review journal, Vol. 1. Institute of real estate and land economy, Sri Lanka, pp. 35-37 H e t t i a r a c h c h i , J.N. (1994). Viability of investment in multi- storyed buildings. Construction project management conference, Sri Lanka, pp. 150- 164 76 References H o y l e , E . (1982) . M o n e y and barking. Richard clay Ltd. London , pp. 49 - 52 I . C . T . A . D . p u b l i c a t i o n N o . S C A / 1 (Jan. 1989) . 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London , pp. 1 1 7 - 168 Tamilchevan, R. (1993) . Compensa t ion for the loss o f productivi ty in construction projects . Dissertat ion. Department o f Bui ld ing E c o n o m i c s , Univers i ty o f Mora tuwa . Udamulla, T. (1998) . Introduction to building construction industry. Fundamentals o f real estate. Sri Jayawardenepura Univers i ty , pp . 37- 45 Udayanjeewa, W.M.U.P. ( 1 9 9 4 / 1 9 9 5 ) . Manag ing risk. Quantity Surveyor , Department o f Bui ld ing economics , Univers i ty o f Mora tuwa . pp . 87-88 Weddikkara, C. ( 1 9 9 7 ) . Course hand out Department o f Bui ld ing E c o n o m i c s , Univers i ty o f Mora tuwa . Weerakoon, A.W.C. ( 1997 ) . T h e effects o f leadership style o f construction manager on project performance. Dissertat ion. Department o f Building E c o n o m i c s , Univers i ty o f Mora tuwa . 78 References W i c k r e m a r a c h c h i , N . Real estate valuat ion, Fundamentals o f Real Estate Journal, Sri Jayawardenapura Univers i ty , N u g e g o d a . pp. 6 0 - 7 1 . Rent Schedule Appendix - A Rent Schedule L oc at io n Fl oo r 1= < fa D es cr ip tio n E S 8 £ * Di st an ce K m World trade Center Colombo 01 First Seventh 64 418 Ultra Modern type Office Building -do- 162.50 162.50 0 0 • Ninth 874 -do- 162.50 0 Seventeenth 418 -do- 137.00 0 Eighteenth 874 -do- (This assessment is recenfly done by Govt. Valuers). 162.00 0 Social Service dept. D.S. Senanayaka Mawatha, Borella. G.F. -- Average Building 68.00 3.5 Y .M.B.A. Building Borella. G.F. -- New office building 87.50 3.5 153, Dharmapala Mawatha Colombo 03. G.F. First -- Modern New office building 110.00 (Average) 2.5 Postal Dept. 1 M Cross Street Pettah. G.F. } First } Second} Third } 2400 Office building 137.50 68.75 (Average) 1 Asst. No.73 W.D.A. Ramanayaka Mawatha, Colombo 02. G.F. 518 Modern type new office building 137.50 2 Asst. No. 108 W.D.A. Ramanayaka Mawatha, Colombo 02. First 364 -do- 137.50 2 Cool Air Garden, Office of Company Registrar D.R. Wijewardena Mawatha. G.F. First 400 400 Modern type office building (Not very new) , 137.50 1 156, Blondina Courts, Borella, Colombo 08. G.F. First Second 900 New building 125.00 3.5 Dharmapala Mawatha, Ceylinco Office. Colombo 03. -- -- - 125.00 2.5 (APPENDIX - A) 80 Rent Schedule Appendix - A it in n s it in n o Lo ca tic Fl oo r F .A .(m D es cr if R at em 2 w e e k D is ta nc K m Merchant's Tower Sixth 600 Ultra 165.00 Bank of Ceylon modern (Average 2 Colombo 03. Seventh 600 new office building Expected Rent) Valuation Dept. Colombo City office Maradana Road Colombo 10. Second -- Average building 100.00 2.5 Asst. No.435/3 Modern Kularatna Mawatha G.F. 18 type 110.00 2.5 Maradana. office building Seprime Trading Co. Modern Maradana. type office building 100.00 2.5 Asst. No. 297 Modern Union Place -- -- type 100.00 2.5 Colombo 02. Office building Asst. No. 90 Galle Road G.F. -- Office building 137.50 1.5 •* > (APPENDIX - A) 81 Project Details Appendix - B Project Details P R O J E C T - A (a) L o c a t i o n Colombo Fort (b) D e s c r i p t i o n Ultra modern fifteen storyed building (c) F l o o r A r e a 31000 Sq. m. (d) , L i m i t a t i o n o n L D Nil (e) A g r e e d L D Rs. 400,000.00 per day (f) C o n t r a c t S u m Rs. 3250,000,000.00 (g) C a l c u l a t e d L D u n d e r P r o p o s e S y s t e m (For first week) Rs. 4960,000.00 (h) L D p e r d a y Rs. 708,571.00 (i) P r o p o s e d L D - P r e s e n t L D (Per day) Rs. 308,571.00 P R O J E C T - B (a) L o c a t i o n Galle Road, Kollupitiya. (b) D e s c r i p t i o n Multi- storyed Ultra modernoffice building (c) F l o o r A r e a 25000 Sq. m. (d) L i m i t a t i o n on L D Up to 10% of contract sum. (e) A g r e e d L D Rs. 450,000.00 per day (f) C o n t r a c t S u m Rs. 501,000,000.00 (g) C a l c u l a t e d L D u n d e r P r o p o s e Sys t em (For first week) Rs. 3,750,000.00 (h) L D p e r day Rs.535,714.00 (i) P r o p o s e d L D - P r e s e n t L D (Per day) Rs.85,714.00 ( A P P E N D I X - B) 82 Project Details Appendix - B P R O J E C T - C (a) L o c a t i o n Union Place (b) D e s c r i p t i o n Mult i - s toryed Ultra modern type building (c) F l o o r A r e a 16322 Sq . M . (d) L i m i t a t i o n on L D U p to 5 % o f contract sum (e) A g r e e d L D R s . 7 5 , 9 1 4 . 0 0 per day (f) C o n t r a c t S u m R s . 142 ,339 ,339 .00 (g) C a l c u l a t e d L D u n d e r P r o p o s e Sys t em (For first w e e k ) R s . 2,040,250.00 (h) L D p e r d a y R s . 291 ,464 .00 (i) P r o p o s e d L D - P r e s e n t L D (Per day) Rs . 2 1 5 , 5 5 0 . 0 0 P R O J E C T D (a) L o c a t i o n D e Seram place , C o l o m b o 10 (b) D e s c r i p t i o n Mult i -storyed modern type building (c) F l o o r A r e a 4896 Sq. m. (d) L i m i t a t i o n on L D U p to 1 0 % of contract sum. (e) A g r e e d L D Rs . 18,780.00 per day (f) C o n t r a c t S u m R s . 7 5 , 1 1 9 , 7 5 9 . 0 0 (g) C a l c u l a t e d L D u n d e r P r o p o s e Sys tem (For first w e e k ) R s . 5 1 4,080.00 (h) L D p e r d a y Rs .73 ,440 .00 (i) P r o p o s e d L D - P r e s e n t L D (Per day) - Rs .54 ,660 .00 ( A P P E N D I X - B) 83 Project Details Appendix - P R O J E C T - E (a) L o c a t i o n Borella, Colombo 08. (b) D e s c r i p t i o n Multi -storyed modern building (c) F l o o r A r e a 1500 Sq. M. (d) L i m i t a t i o n on L D Up to 5 % of contract sum (e) ' A g r e e d L D Rs. 17,500.00 per day (f) C o n t r a c t S u m Rs.70,000,000.00 (g) C a l c u l a t e d L D u n d e r P r o p o s e Sys t em (For first week) Rs. 135,000.00 (h) L D p e r d a y Rs. 19,285.00 (i) P r o p o s e d L D - P r e s e n t L D (Per day) Rs.1785.00 84 ( A P P E N D I X - B) Professionals Opinion on Existing and Proposed LD Appendix - C Professional Opinion on Existing and Proposed LD P er so ns In te rv ie w Pr of es si on Existing LD L D Sh ou ld be C ur re nt B as is R ea so ns fo r de la y P er so ns In te rv ie w Pr of es si on R es . U nr s. L ow H ig h L D Sh ou ld be C ur re nt B as is R ea so ns fo r de la y 1 Cost/Cons - y y - L.T.C. ' / lOOO tO ' / 4 0 0 0 of C.S. Cont. r Q.S. - y y - L.T.C. -do- Com. 3 Eng. - y y - L.O.B. A.A. Cont. 4 Q.S. - y y - A.L. Not constant Consultant 5 Cost/cons. - y y - L.O.R. Viooo to ' / 4000 of C.S. Cont. 6 Q.S. - y y - L.O.R. A.A. Cont. 7 Arch - y y - A.L. Viooo to ' / 4 0 0 0 of C.S. Cont. 8 Q.S. - y y - L.O.B. -do- Cont. 9 Q.S. - y - L.T.C. Not constant Consultant Percentage 11 89 100 - - - cont. 89% consultant 11% Cos t / C o n s . - Cost Consultant L .O .B . - Loss of business Q . S . - Quantity surveyor A.L. - Actual Loss E n g . - Engineer L .O .R . - Loss of rent Arch. - Architect A.A. - Agreed Amount R e s . - Reasonable C . S . - Contract Sum U n r s . - Unreasonable C o n t . - Contractor L . T . C . - Loss to Client ( A p p e n d i x - C) 85 Questionnaire - 1 Appendix - D Questionnaire - 1 T i m e O v e r r u n a n d L i q u i d a t e d d a m a g e s T h e Detai ls furnished b e l o w wi l l be used for the purpose o f this project and wil l not be disc losed or used for any purpose other than this dissertation. H o w e v e r , the information in Part A wi l l not be incorporated in the report. P a r t A 1. N a m e Date 2. Designat ion 3. Off ic ia l Address 4. Nature o f w o r k undertaken ( 1 ) . Project Management (2). Consul tancy (3). Other Questionnaire -1 Appendix - D P a r t B 1. What are the c o m m o n factors you think that w o u l d course time overrun in construction project in Sri Lanka . a. c. d. e. 2. In your opinion w h o is the most responsible party for time overrun in a construction project. a. Cl ient - % b. Consultant - % c. Contractor - % d. Others - % Please expla in reasons for your answer . 3. Please list delays caused to projects in wh ich you w e r e engaged or k n o w n to y o u . Project Delay Reason for delay Basic of LD LD Reasonable Yes No Yes No ( A P P E N D I X - D) 87 Questionnaire - 1 Appendix - D Please g ive reason for your answer above . A n y Sugges t ions to improve the exist ing L D system used in Sri Lanka . W h o should determine the contract per iod and what should be the basis o f i t ? D o you suggest any guidelines to calculate actual delay o f a construction project fair by both parties to the contract ? D o y o u agree that client should be compensated for the actual loss caused to him due to time overrun ? Yes No If your answer is " N o " please g ive alternative method o f compensat ion, and explain w h y ? ( A P P E N D I X - D) Questionnaire - 2 Appendix - E Questionnaire - 2 D e r i v a t i o n of r e l e v a n t r e n t for m o d e r n office bu i ld ings The Details furnished below will be used for the purpose of this project and will not be disclosed or used for any purpose other than this report. However, the information in Part A will not be incorporated in the report. P a r t A 1. Name Date 4. Designation 5. Official Address 4. Nature of work attending (a). Valuation of real estate (b). Rental Assessment (c). Rating Valuations (d). Others - Specify P a r t B 1. Is there a stability in the rental market today, in Sri Lanka. Yes N o 2. Please give reason for your above answer. ( A P P E N D I X - E) 89 Questionnaire - 2 Appendix - E What are the factors that determine a rent for an ultra modern office building in the city of Colombo ? To what extent Sri Lankan economy influences rental market of the country ? What method do you recommend to arrive at the free market rent for an office building ? a. Comparison b. Investment c. Contractors Test d. Others specify 1 Please give reasons for your answer ? Could you give some rental comparisons for modern office buildings in Fort, Kollupitiya, Union Place, Maradana, Borella ? 90 ( A P P E N D I X - E) Questionnaire - 2 Appendix - E 7. From your experience can you suggest most appropriate rents for Ultra modern office buildings in the following areas. Area R e n t / m 2 / P M D e s c r i p t i o n Fort Modern office building Kollupitiya Modern office building Union Place Modern office building Maradana Modern office building Borella Modern office building 8. Do you think how long this pattern of rentals will be constant in the above areas ? 9. Would assessment of compensation on rent be realistic under valuation principles ? Yes N o 10. Please give reasons for your above answer. ( A P P E N D I X - E) 91 Questionnaire - 3 Appendix - F Questionnaire - 3 A s s e s s m e n t of C a p i t a l A p p l i c a t i o n T h e Deta i l s furnished be low wi l l be used for the purpose o f this project and wil l not be disc losed or used for any purpose other than this dissertation. H o w e v e r , the information in Part A wi l l not be incorporated in the report. P a r t A 1. N a m e Date 6. Designat ion 7. Off ic ia l Address 4. Nature o f w o r k attending (a). Project Management (b). Valuat ion of real estate (c) . Rating Assessments (d). Others - Specify 92 ( A P P E N D I X - F) Questionnaire - 3 Appendix - F P a r t B Specif ied A r e a under rev iew - (a) Fort (b) Kol lupi t iya , (c) Union Place (d) Maradana (e) Bore l la 1. Is there a stability in the rental market today, in Sri Lanka . Y e s N o Please comment on your decision 2. Genera l ly , what are the factors affecting the real estate market within the specified areas ? a. b . c. d. e. 93 ( A P P E N D I X - F) Questionnaire - 3 Appendix - F 3. D o you think that there is a capital appreciation in the property market today ? Yes N o 3.1 A r e there any deviations to your decis ion above regarding a specified area. Yes N o 3.2 . Please expla in your decis ion above . 4. Please g ive your opinion on capital appreciation o f real estate during last two years . Locat ion Capita l Apprec ia t i on Capi ta l Deprec ia t ion R e m a r k s Fort < Kollupi t iya Union Place Maradana Bore l la ( A P P E N D I X - F) 94 Persons Interviewed Appendix - G Questionnaire 1 Name Designation & Official Address 1. Mr. P.R.N. Fernando D.G.M. (Constancy) State Engineering Corporation Colombo 02. 2. ' Mr. R.G. Ranathunga Quantity Surveyor State Engineering Corporation Colombo 02. 3. Mr. S.M.V. Aruna Kumara Deputy Chief Engineer C.W.E.,D.R. Wijewardena Mawatha Colombo 10. 4. Mr. Shantha Fernando Quantity Surveyor Access Tower Project Colombo. 5. Mr. N.M. Jayathilaka Manager (Premises) Insurance Corporation Vauxhall Street, Colombo 02. 6. Mr. S. Weerasingha Quantity Surveyor Zublen (Central Bank Project) Colombo 01. 7. Mr. H. Ranasingha Architech State Engineering Corporation Colombo 02. 8. Mr. E.J . Ranajaya Quantity Surveyor State Engineering Corporation Colombo 02. 9. Mr. G.A. Ranaweera Technical Officer Civil Aviation Katunayaka. 10. Mr. Mahinda Gunawardena Quantity Surveyor LINK Engineering Colombo 02. 11. Mr. H.D. Chandrasena Consultant Borella, Colombo 08. (Former AGM Constancy, S.E.C Colombo 02) ( A P P E N D I X - G) 95 P E R S O N S I N T E R V I E W E D Persons Interviewed Appendix - H Questionnaire - 2 N a m e Des ignat ion & Official Address (A) Mr. V.M.S. Jayasiri Valuation Officer City Office, Valuation Department Maradana. (B) Mr. E.M.. Wickramanayaka Asst. Valuer City Office, Valuation Department Colombo 10. (C) Mr. P. Shanthirasekaran Senior Asst. Valuer State Valuation Department Maradana. (D) Mr. V . C . Udugampola Manager(Assets) C.W.E. Vauxhall Street Colombo 02. (E) Mr. B.T.P. Guruge Asst. Valuer State Valuation Department Maradana. (F) Mr. H.T.J.N. Fernando Valuation Officer State mortgage and Investment Bank Colombo 03. (G) Mr. M.B.R. Gunapala Valuation Officer State Valuation Department Colombo 10. (H) Mr. N.M. Jayathilaka Manager (Premises) Insurance Corporation Vauxhall Street, Colombo 02. (I) Mr. G.H.K. Wickramatilaka Chief Valuation Officer State Mortgage & Investment Bank Colombo 03. (J) Mr. L. Palihakkara Asst. Valuation Officer State Mortgage & Investment Bank Colombo 03. (K) Mr. J.K.T. Fonseka Valuation Officer State Valuation Department Maradana. (L) Mr. P.K.Y. Perera Senior Lecturer (Dept. of Estate management & Valuation) Sri Jayawardenapura University. ( A P P E N D I X - H) 96 P E R S O N S I N T E R V I E W E D Persons Interviewed Appendix - J 4.- P E R S O N S I N T E R V I E W E D Questionnaire - 3 Name Designation & Official Address (M) Mr. V.M.S. Jayasiri • Valuation Officer State Valuation Department Colombo 10. (N) Mr. R. Wickremanayaka Asst. Valuer State Valuation Department Colombo 10. (0) Mr. P. Shanthirasekaran Senior Asst. Valuer State Valuation Department Colombo 10. (P) Mr. Udugampola Manager (Premises) C.W.E Vauxhall Street, Colombo 02. (Q) Mr. B.T.P. Guruge Asst. Valuer State Valuation Department Colombo 10. (R) Mr. H.T.J.N. Fernando Valuation Officer State Valuation Department Colombo 10. (S) Mr. M.B.R. Gunapala Valuation Officer State Valuation Department Colombo 10. (T) Mr. G.H.K. Wickrematilaka Chief Valuation Officer State Mortgage and Investment Bank Colombo 03. (U) Mr. D.L. Palihakkara Asst. Valuation Officer State Mortgage and Investment Bank Colombo 03. (V) Mr. G.K.T. Fonseka Valuation Officer State Valuation Department Colombo 10. ( A P P E N D I X - J ) 97 Calculation of Liquidated & Ascertained Damages... Appendix - K Calculation of Liquidated & Ascertained Damages Typical Format C O N T R A C T C L I E N T C O N S U L T A N T C O S T S / W E K 1. S U P E R V I S O R Y S T A F F ( C u r r e n t Ra te s ) • A r c h i t e c t : Estimate h r s /wk x time charge o f R s /hr R s . • Q u a n t i t y S u r v e y o r Estimated h r s /wk x time charge o f R s /hr R s . • C o n s u l t a n t s (as a b o v e for each one) . Rs . • C l e r k of w o r k s W e e k l y Salary ( = Y e a r l y 152) R s . To t a l (1) R s . ( A P P E N D I X - K) 98 Calculation of Liquidated & Ascertained Damages... Appendix - K 2 . A D D I T I O N A L C O S T ( C u r r e n t Ra te s ) • Rent and/ or rates and/ or charges for present premises Rs . • Rent and/ or rates and/ or charges for alternative premises R s . • Cha rges for equipment R s . • M o v e m e n t o f equipment R s . • Addi t ional and/or continuing and/ or substitute staff Rs . • M o v e m e n t o f staff ( including travel expenses) R s . • A n y site charges wh ich are the responsibili ty o f the client R s . • Extra payments to direct employed trades R s . • Insurance Rs . T o t a l (2) R s . Source - Janakie 1995 99 Calculation of Liquidated & Ascertained Damages... Appendix - K E A.7 Cont. d INEREST C O S T S / W E E K interest payable on estimated capital expended up to the control comple t ion date, but from which no benefit is del ivered. Estimated expenditure taken as 80% o f contract sum and fees. Arch i t ec t ' s fees (90%)** R s . Quanti ty su rveyo r ' s fee (90%)** R s . Consul tant ' s fee (90%)** R s . Salary o f c lerk o f w o r k s ( R s . / w k x contract period) R s . Interest charges o f current rate o f per cent. Interest therefore = 8 0 % c a p i t a l e x p e n d e d x in t e re s t It is essential that all costs are additional i .e. they would not be incurred if the contract were comple ted on the contract complet ion date the headings g iven are examples only , eve ry j o b is different. Professional fees are taken as 90% of total because some professional work remains to be done after practical complet ion. 52 R s . Total (3) Rs . (APPENDIX - K) 100 Responsible Parties for Delays Appendix - L Responsible Parties for Delays RESPONSE No RESPONSIBLE PARTY CLIENT (02 NOS.) CONSULTA NT (04 NOS.) CONTRA CTOR (06 NOS.) ACADEMIC S (03 NOS) 1 Client * * * 2 Consultant ***** *** 3 Contractor ** *** *** ** 4 ' Beyond the control of the above parties * * NOTE: Some interviewees had given more than one response. S o u r c e - J a n a k i e 1995 ( A P P E N D I X - L ) 101 Prevention of Delays Appendix - M Prevention of Delays CONSULTANT • Organizing frequent Progress meeting • Proper documentation • On time drawings, Instruction, specification • Complete information • Proper consideration • Lesser variation • Careful contractor selection • Specify common materials in the market • Certification on time • Timely approval • Fixing reasonable time target C O N T R A C T O R Timely procurement of Sufficient labor plant and materials Proper programming Careful bidding Giving notices on time Obtain approvals Request further information Joint measurement Better co- operation Proper site organization Efficient controlling Sufficient cash flow Adequate communication Early commencement Refer historical data Prevention of Delays C L I E N T • Sufficient cash flow • Timely payment • Planned variations • nominated sub contractors • Better co-operation • Giving Procession of site on time • Minimum interruption to the contractor's program O T H E R • Liquidated damages • Bonus for early completion • Timely allocation of budget • Appoint a project manager Source - Janakie 1995 ( A P P E N D I X - M ) 102 Time performance of individual project Appendix N TIME PERFORMANCE OF INDIVIDUAL PROJECT • 25 157.14 I 25 • 77.42 I 75 • 77.27 I 200 • 276 100 200 300 400 500 % Time overrun 600 700 800 Source - Janakie 1995 (Append ix - N) 103