PROJECT AND CONSTRUCTION MANAGEMENT SERVICES FOR KUWAIT PORT AUTHORITY FOR PROJECTS AT SHUAIBA PORT

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1 PROJECT AND CONSTRUCTION MANAGEMENT SERVICES FOR KUWAIT PORT AUTHORITY FOR PROJECTS AT SHUAIBA PORT

2 - INTRODUCTION 1.1. General. Kuwait Ports Authority (KPA) through the Ministry Of Finance (MOF) wishes to employ the services of a highly qualified Project and Construction Management firm/consultant, including staff of related disciplines to manage all projects undergoing in SHUAIBA PORT. The services that the Project and Construction Manager are required to provide includes, but is not limited to, those described specified herein. The services described or specified shall not be deemed to constitute a comprehensive specification having the effect of excluding services not specifically mentioned. The Project and Construction Manager is required to furnish all other services and expertise as may be necessary to fulfill the undertaking set out in this Terms of Reference including a PM and CM team, under the direction of Project and Construction Manager who shall provide overall direction and coordination Definitions and Interpretation. ١.٢.١ "KPA", The First Party", the Client" shall mean Kuwait Ports Authority, represented by the General Manager of Ports Authority. ١.٢.٢ "PM/CM", Consultant or "The Second Party" shall mean the project and the Construction management firm with whom "KPA" has made this contract, and includes the consultant's personal representatives, successors and assignees permitted by "KPA". ١.٢.٣ "A/E" or "The Design Consultant" or "The Supervision Consultant" shall mean the architect or the engineer (A/E) or the architectural or engineering firm with which "KPA" as entered or will enter into a separate contract and includes the designer's representative's successors and assignees permitted by "KPA" "The KPA's Representative" shall mean any person appointed by "KPA", as shall be notified in writing to the PM/CM, Consultant, to manage this contract

3 1.2.5 "Optional Works" shall mean projects which might not be developed by the PM/CM. The Project and Construction Management Firm should include the cost of managing this or these projects individually and separately, and should consider the Optional Works to the contract 1.3. Project Background. The Client, Kuwait Ports Authority, is a government organization, which monitors and controls all Commercial Ports in Kuwait, including the Design and the Construction developments in these ports. The "PM/CM," will have the following responsibilities The required project & construction management of projects in Port of Shuaiba Follow up on works related to "KPA", under pre-design/design stage of new projects assigned, or to be assigned for consultant's by "KPA" Writing the required Terms of Reference for future projects related to this port Period of Agreement. Starting from the date of enterprise, the period of the services shall be 36 calendar months GENERAL REQUIREMENT It is expected that the PM/CM, Consultant, will perform the entire Project and Construction Management Services to ensure that: a. Projects related to Construction Management (CM) ١. Overall construction will be completed as early as possible, in accordance with the latest approved schedules. ٢. The construction work is performed in conformity with the design requirements. ٣. The project budget is prepared and updated as required. ٤. The projects will be completed at total construction cost not more than than that offered by the selected bidders. b. Projects related to Project Management (PM) ١. The Scope of the project will be well defined. ٢. The project will be well designed by the Architect/ Engineer (A/E) Consultants. ٣. The project will be designed in accordance with recognized international and local standards and meet the requirements of various regulatory authorities

4 ٢.١.٢ Services, which the PM/CM, Consultant, is required to provide, shall include, but are not limited to, those described or specified herein (including those reflected in the PM/CM, Consultant's proposal which shall be incorporated, as appropriate into the Agreement by reference). ٢.١.٣ Unless otherwise required below, services normally and traditionally expected of or provided by A/E & Design and Supervision Consultant are specifically excluded from the scope of work of this contract. ٢.١.٤ All services shall be performed under direction of THE CLIENT. ٢.١.٥ The PM/CM, Consultant, will not be deemed to have failed to meet his contractual undertaking and will not be held responsible for: ١. Design deficiencies ٢. Defective or late completion of construction. Provided that the PM/CM Consultant has exercised due diligence to make reasonably certain that construction is performed in conformity with A/E's plans / specification, etc., makes reasonable efforts to keep the construction contractor on schedule and renders timely recommendations to THE CLIENT to implement corrective measures. ٢.١.٦ The PM/CM, Consultant, agrees to furnish skill and judgment, and to perform the services in the most expeditious and economical manner consistent with interests of THE CLIENT without the intention to confer any benefit from any third party. ٢.١.٧ Project schedule and Estimated Total cost: Upon a request from "KPA", PM/CM, Consultant, may obtain the time program of the project design and the estimated total design cost. The PM/CM, Consultant s technical and financial proposals for all the deliverables in the Terms of Reference should allow for the statuary authority approvals. ٢.١.٨ Specialists Design Review ١. Quality Assurance design- The PM/CM, Consultant, as part of his Design Management, will provide appropriate staff to ensure the quality of the design performed by the Individual A / E firms and the quality of designed product. ٢. Value Engineering (Optional) - Value Engineering will be provided by the designated consultants, for the specified projects. A VE workshop will be conducted by an independent VE Sub - KPA & A/E design team will participate in these workshops. 3. Productivity Review - The PM/CM, Consultant, as part of his design Management will review the productivity of each of the stages of A/E design for adherence to schedules The PM/CM, Consultant agrees to furnish skill and judgment and, to perform the services in the most expeditious and economical manner consistent with interests of THE CLIENT

5 The PM/CM, Consultant shall not have the right nor take such action resulting in any changes in contractual agreement between THE CLIENT, other A/E Consultants or construction contractors, such right is reserved solely for THE CLIENT PRE - CONSTRUCTION PHASE JOB - SITE FACILITIES. The PM/CM, Consultant shall check through the review of tender documents that provision is made for: ١. All of the temporary facilities necessary to enable the contractors to perform the work including coordination, site cleaning, site maintenance and site security, over and above that allowed for in separate construction contracts. ٢. All jobs-site facilities necessary to enable the A/E Consultant, the PM/CM, Consultant and THE CLIENTS' representative to perform their respective functions. The PM/CM, Consultant shall coordinate on-site requirements and include them in the general requirement of each package SOLICITATION OF BIDS ١. The PM/CM, Consultant, along with the A/E, shall prepare for THE CLIENT, invitation for bids for construction. ٢. The PM/CM, Consultant shall prepare all additional forms and provisions, required by applicable statutes, and Client's Procurement regulations, as will constitute invitations for bids suitable for reproduction and issuance by THE CLIENT. ٣. For construction contracts, the PM/CM, Consultant will conduct a prebid conference with prospective bidders. In the event questions are raised which require an interpretation of the bid documents or otherwise indicate a need for clarification or correction of document in question, the PM/CM, Consultant, along with the A/E, shall prepare an amendment to the invitation, suitable for issuance by THE CLIENT as Addenda. The amendment shall include revised Bill of Quantities as required. ٤. The PM/CM, Consultant shall review for the A/E's tender analysis report and provide THE CLIENT with assistance during selection. 2.3 CONSTRUCTION AND COMPLETION PHASE ADMINISTRATION AND MANAGEMENT OF CONSTRUCTION The PM/CM, Consultant, shall perform the following services and assist THE CLIENT in overall management of the project: - 5 -

6 ١. Administration of construction contract. ٢. Provide general direction to the A/E's supervision and inspection team. 3. Review and approve the schedule obtained from the contractor. Construction schedules. Submittal schedule. Procurement schedule. Cost schedule. Resource schedule. 4. Review and monitor the performance of the contractors with respect to his mobilization, construction methodology and systems, resource allocation and productivity, construction plant and equipment. 5. Processing of contractor's payment applications and preparation of payment certificates, in accordance with cost loaded schedule. 6. Arrange to ensure compliance by the contractor of contractual requirements and applicable statutes / laws. ٧. In the event of contractual defaults or lack of performance by the contractors and / or the supervision team and failure to improve despite previous written notifications by the PM/CM, Consultant, he shall then promptly submit written recommendation to THE CLIENT on the course of action to rectify the situation. ٨. Assist the supervision team and THE CLIENT during substantial completion stages of the construction contract and prepare schedule for completion of punch list activities. 9. Maintain complete project records and documents. The PM/CM, Consultant, at the completion of his services should hand over all project's files, records and documents to THE CLIENT MONITORING SUBMITTALS The PM/CM, Consultant, will monitor contractor s submittals and the A/E's activities concerning the timely processing of shop drawings, samples and other contractor s submittals. If submittals are not being timely received, and/or the review approval process is not being performed promptly, he shall ascertain the reasons therefore and take appropriate action to eliminate delays in processing. He shall notify THE CLIENT promptly of any delays or problems with respect to this activity SUBCONTRACTOR/MATERIAL VENDOR RECOMMENDATION. Whenever the contractor requires advance approval of proposed subcontractors or material vendors the PM/CM Consultant shall review the competitive - 6 -

7 proposals received by the contractor, scrutinize the prospective subcontractor's or supplier's qualifications and financial ability to complete the work (if applicable) and shall recommend to THE CLIENT appropriate action to be taken CONTRACT CHANGES. The PM/CM, Consultant, shall provide assistance to THE CLIENT in the administration of all changes / variation to the A/E and/or construction contracts, including but not limited to the following services: ١. The PM/CM, Consultant, shall recommend a change to a construction contract whenever a change appears to be necessary. Upon receipt of a change suggested by a separate contractor, or the A/E the PM/CM, Consultant, shall review the merit thereof and forward it to THE CLIENT with his recommendation. ٢. Whenever THE CLIENT so directs, the PM/CM Consultant, shall request a proposal from the contractor for performing a contemplated change, prepare a cost estimate, review applicable drawings and specifications (whether prepared by the A/E or by the contractor), estimate additional performance time that may be required. In the event a variation is approved, the PM/CM Consultant shall review the proposal received, and conduct negotiations with the concerned party and make recommendation to THE CLIENT on cost and time. All contemplated variations shall be estimated by the A/E and reviewed by the PM/CM, Consultant, to identify the extent of financial exposure as well as appropriate time extension

8 2.3.5 CLAIMS Whenever any claims arise under or out of construction contract awarded by THE CLIENT in furtherance of this project. The PM/CM, Consultant, shall diligently render all assistance which THE CLIENT may require. This assistance shall include the furnishing of reports with supporting information necessary to resolve the dispute or defend against the claims, participation in meetings or negotiation with the claimant or his authorized representative, appearance before the court of law and other assistance as may be appropriate MEETINGS AND CONFERENCES The PM/CM, Consultant, shall organize regular meetings and conferences to review progress, resolve outstanding issues and to take minutes at meeting, arrange written confirmation of such minutes by the participants; transcribe the minutes; and furnish copies of signed minutes to all participants. The PM/CM Consultant shall conduct all pre-bid conferences and pre-construction conferences with the successful bidder on construction contract. He shall also conduct job-site meetings with contractors and THE CLIENT, as necessary, to discuss such issues as procedures, progress, problems, schedules, and any other issues that may arise during the execution of the projects 2.4 PROJECT CONTROL SYSTEM (PCS) GENERAL ١. The PM/CM, Consultant, shall implement and utilize throughout thelife of this project, subsystem of the Project Control System (PCS) as required by THE CLIENT. The (PCS) should be implemented for both the design projects and the construction projects. ٢. The PM/CM, Consultant, shall utilize the latest Computer System to execute PCS computer programs and generate computer reports. The computer system proposed by the PM/CM, Consultant, shall be compatible with project management software such as PRIMAVERA & EXPEDITION. ٣. The PM/CM, Consultant, shall provide a PCS system with all the required legitimately owned authentic software and hardware to ensure: Full recording of events and project development data. Prompt and timely access to the project records by the Owner and his staff as appropriate for smooth progress of the works. Proper and continuous updating and safekeeping of the data against loss or damage for any reason. Software and hardware compatibility and providing data line etc., shall be the PM/CM, Consultant, responsibility. 4. All reports, documents and data to be provided shall represent an accurate assessment of the current status of the project and of the work remaining to be accomplished. The PM/CM, Consultant, shall provide accurate information identifying variances and problems to enable - 8 -

9 management decisions to be made in a timely manner and to furnish this information to THE CLIENT. 5. The PCS shall be described in terms of following major subsystems: Narrative Reporting Schedule Control Cost Control, and Financial Control NARRATIVE REPORTING SUBSYSTEM ١. The PCS Manager of the PM/CM, Consultant, shall prepare reports that provide information to effectively manage the project. ٢. The reporting Subsystem shall include descriptive narratives, to be issued on a monthly cycle. ٣. The PM/CM, Consultant, shall provide any other reports deemed necessary by THE CLIENT to support the decision making process, SCHEDULE CONTROL SUBSYSTEM. The operation of this subsystem shall provide but not be limited to network diagrams, schedule updates, computer generated schedules, and time related cost data necessary to plan and execute the planning, design, and the PM/CM Consultant's work within the time specified above. All network diagrams requested shall be precedence time - scaled diagrams. 1, Schedule. The PM/CM, Consultant, shall arrange to produce and furnish to THE CLIENT, at the required intervals, the following schedules: Master Schedule: Upon award of the contract, the PM/CM, Consultant, shall meet THE CLIENT and A/E to discuss and review the project master schedule in the management plan. He shall update, refine and/or revise the same within the overall designated time span of the project and furnish the master schedule to THE CLIENT within a period of 14 days from contract award. Upon approval by THE CLIENT this schedule shall serve as the framework for the subsequent development of all detailed schedules. Construction Schedule (Sub networks): During tender period the PM/CM, Consultant, shall prepare a construction schedule for work encompassed in the project. The schedule shall be sufficiently detailed so as to be suitable as a framework for contract completion by the successful bidder and shall establish milestones - 9 -

10 keyed to the overall master schedule. Adjustments to master schedule: Working with various construction sub-contractors/suppliers, the PM/CM Consultant, shall, if deemed necessary, revise, add or elaborate on original activities (within the overall time span of the project) to ensure complete understanding by all participants of activities to be accomplished and submit the same to THE CLIENT for approval. 2. Integrated and Current Schedule. The PM/CM, Consultant, shall provide, maintain and update monthly a current integrated schedule for project as follows: All initial planned design, pre-construction, construction and occupancy activities shall be contained in network format in a single computer database. Further data on above shall be incorporated into the computer database monthly, as they are developed. Changes in the planned sequence, interrelationships, or durations of any project activities which occur as a result of project detailed planning, variation order, design revisions, schedule recovery and other actions shall be incorporated into the computer data base monthly, as they are identified and approved by THE CLIENT. 3. Occupancy Schedule: During construction, the PM/CM Consultant, shall develop a detailed plan inclusive of punch lists, final inspections, maintenance training and turnover procedures, to be used for ensuring accomplishment of smooth phased transition from construction to occupancy COST CONTROL SUBSYSTEM. The operation of this subsystem shall include information and details to permit the PM/CM, Consultant, THE CLIENT and A/E to update the budget to reflect the latest information and adjust the project requirements. 2.5 PROJECT MANAGEMENT PLAN. ٢.٥.١ Project Management Plan: The PM/CM, Consultant, shall develop, a detailed Management Plan for accomplishing the services set forth in this contract. The plan shall further delineate and expand the applicable portions of the Management Plan included as part of the PM/CM Consultant s accepted proposal and shall provide the single comprehensive plan for the control, direction, coordination, communication, procedure and evaluation of the work performed during the various phases. The Management Plan shall be submitted as part of the PM/CM Consultant s proposal submittal. The plan will be updated periodically as the works progress

11 ٢.٥.٢ Contents of the Project Management Plan: The plan shall describe in detail the program of and requirements for executing the work planned for all projects, and the organizations participating in these. To achieve desirable uniformity in preparation and use, the plan shall include the sections and structures described below: ١. Project Definitions: The known characteristics of Projects shall be described in general terms, to provide the A/Es, and the contractors a basic understanding of the project. ٢. Project Objectives: The CLIENT Works schedule, budget, technical and other objectives for the projects shall be defined or updated. ٣. Project Strategy: A narrative description indicating the reasons for arriving at Project Strategy chosen by the PM/CM Consultant. ٤. Work Statement: A narrative description of program of work to be performed by the PM/CM Consultant, the A/Es, the contractors and the CLIENT. ٥. Organization Charts: Summary charts showing the interrelationships between the CLIENT, the PM/CM Consultant, the A/Es and the Contractors detailed charts, one each for PM/CM, Consultant, the A/E, the Contractor and the Owner, shall also be provided showing organizational elements participating in the projects. ٦. Duties: The duties of all PM/CM, Consultant staff personnel, shown on the organization chart, shall be described in detail. The duties of each organization element of the A/E and the Owner, shown on the organization chart, shall also be described

12 7. Linear Responsibility Charts: These charts shall display in matrix format the role of each position or category shown on the PM/CM, Consultant, A/E's and the client organization chart, and shall show detailed work items contained at the lowest level of indenture. By use of an appropriate graphic symbol, each of the following responsibilities shall be displayed for each work item: o Direct responsibility for executing the work. o Direct responsibility for supervising the completion of the work. o Technical responsibility for quality of the work produced. o o General management responsibility of the work and, Recipient of the work product. This relationship involves transfer of information and not coordination responsibility. 8. Schedules: o Tabulation of Major Milestone activities. o PCS Master Schedule or update thereto. o Construction Manager's Schedule, and o Detailed schedules for A/Es and Owner. 9. Written Procedures: For coordination the project activities among the PM/CM, Consultant, the A/Es, the Owner and the Contractor Approval of the Management Plan:. Work breakdown structures and detailed schedules of all Deliverable work items submitted for each phase or part of the projects will be reviewed by the Owner who shall have the right to approve or modify the price and / or schedule for performing each detailed deliverable work item.. The Management Plans updates will be reviewed by THE CLIENT who shall have the right to approve or modify the recommended plan.. The Project Construction Schedule shall be adjusted to reflect any changes necessitated by implementation of the above Management Plan Update. The PM/CM, Consultant, shall continuously update and revise the major aspects of Management Plan, which are necessary to maintain the Plan as viable management tool

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