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Question 2
You are working as the project manager of a large international contractor.
Your company has just been awarded a contract by the Japanese Government to de-
commission and demolish a 1,000 MVA nuclear power station in Hokkaido Island, Japan. The
nuclear power plant has been in use since late 1970s, and must be de-commissioned as soon
possible in view of the recent meltdown disaster in Fukushima nuclear power plant after the
earthquake and tsunami in March 2011.
The project will include shutting down the nuclear power plant, disposal of the unused nuclear
materials and nuclear waste, decontamination the entire plant of radioactive materials,
dismantling the entire structure, levelling the ground, disposal of rubbish, and replanting with
grass, shrubs and trees at on the site.
The project is expected to take a total of three years to complete.
Due to the urgency and time constraints of the project, the resources will be sourced from the
following:
Technical Expertise: French supplier of the nuclear plant
Skilled and Unskilled Labour: From Philippines and China
Managers and Supervisors: From Japan and Malaysia
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Earth Moving Machineries: From Japan
The project has a tight deadline and the penalty for late completion is severe.
Describe how you would manage the contract to ensure that the project organisation and its
execution will lead to a win-win situation for both your company and your client (and the
owner). Use all the knowledge and techniques you have learnt from the Contract Management
module. Arrange your presentation in the following areas:
Ex-ante incentivisation and flexible, far-sighted ex-post governance
Standard forms of contracts and sources
Contract laws
Global management
Differences in culture, communication
(Approximately 4 marks for each of the 5 areas selected)
[TOTAL: 20 MARKS]
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1. PROJECT TITLETo de-commission and demolish a 1,000 MVA Tomari Nuclear Power Plant (NPP), in
Hokkaido Island, Japan.
2. PROJECT BACKGROUNDThe nuclear power plant has been in use since late 1989, and must be de-commissioned as
soon possible in view of the recent meltdown disaster in Fukushima Daiichi Nuclear Power
Plant after the earthquake and tsunami in 11th of March 2011, the Japanese government has
take a drastic step whereby any nuclear power plant reached the lifetime period of 30 to 40
years operations need to be shut down.
Photo 1: A View of Reactor 1, 2 and 3, Tomari Nuclear Power Plant,
Hokkaido Island, Japan (Wikipedia).
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Although Tomari Nuclear Power Plant (NPP), in Hokkaido Island, Japan has not reach it
lifetime period but its owner Hokkaido Electric Power Company had plan to decommission
and demolish the plant due to safety reason and protest from the people.
Photo 2: Arial View of Reactor 1, 2 and 3 of Tomari Nuclear
Power Plant, Hokkaido Island, Japan (Google Earth).
The Tomari Nuclear Power Plant is the only nuclear power plant in Hokkaido, Japan. It is
located in the town of Tomari in the Furuu District and managed by the Hokkaido Electric
Power Company. All of the reactors in this plant are Mitsubishi designs. The plant site totals
1,350,000 m2
(334 acres), with an additional 70,000 m2
of reclaimed land.
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Its geographical WGS84 coordinates are stated below;
43210N 1403045E, 43.03611N 140.5125E43210N 1403045E, 43.03611N 140.5125E
Tomari Nuclear Power Plant consists of three (3) reactors as tabulated below;
Unit Type Commission date Electric Power
Tomari - 1 Pressurized water
reactors June 22, 1989 579 MW
Tomari - 2Pressurized water
reactorsApril 12, 1991 579 MW
Tomari - 3 Pressurized waterreactors
December 22, 2009 912 MW
Figure 1: Tomari Nuclear Power Plant, Hokkaido Island, Japan Location Plan (Google Earth).
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3. PROJECT SCOPE
Since the Project brief only mentioned to de-commission and demolish a 1,000 MVA Tomari
Nuclear Power Plan, then I would assumed that we are only required to decommission Reactor
Tomari 3, other reactors will be done by other contractors. "Decommissioning" a nuclear
power plant can be defined as the cessation of operations and the withdrawal of the facility
from service, followed by its transformation into an out-of-service state and eventually, its
complete removal.
Decommissioning activities are intended to place the facility in a condition that provides for
the health and safety of the general public and the environment, while at the same time
protecting the health and safety of the decommissioning workers.
Decommissioning involves thus all the admisnistrative and technical operations allowing
withdrawing a facility from the list of licensed facilities.
The administrative operations concern particularly the elaboration of decommissioning plans
and the obtainment of authorisations and free release certificates for the facilities and the site.
The decommissioning process shall cover the following works;
Shutting down the nuclear power plant shall require necessary permit.
Disposal of the unused nuclear materials shall require necessary permit.
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Disposal of nuclear waste entire and place those high radioactive waste to safe
store yard.
Decontamination the entire plant of radioactive materials except for high
contaminated sections e.g. reactor building and vessel.
Dismantling the entire structure and place those high radioactive component to safe
store yard. Those cannot dismantle will be entomb.
Figure 2: Removal of other structures and to be kept at safe store yard
(Modified from Tomari I).
Entombment.
The fastest method to decommission a nuclear power plant. This option involves
encasing radioactive structures, systems and components in a long-lived substance,
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with Lead/Concrete. The encased plant would be appropriately maintained, and
surveillance would continue until the radioactivity decays to a level that permits
termination of the plants license, with little or no additional decontamination.
Figure 3: Entomb the Reactor Vessel (Modified from Tomari I).
.
Levelling the ground.
Disposal of rubbish.
Replanting with grass, shrubs and trees at on the site.
Project duration to be stated in the contract is three (3) years to complete. Man power
resources were identified;
i. Technical expert: French supplier of the nuclear plant.
ii. Skilled and unskilled labor: from Philippines and China.
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iii. Managers and Supervisors: from Japan and Malaysia.
iv. Earth moving machineries: from Japan.
4. EX-ANTE INCENTIVISATION AND FLEXIBLE, FAR-SIGHTED EX-POSTGOVERNANCE.
Ex ante incentivization
The ability of a contract to provide ex-ante incentivization is illustrate in Figure 4, and were
described by three parameters and they are the reward provides the motivation the contractor
to share the owners objectives and perform, the associated risk and the safeguard provided by
the owner to shield the contractor from the risk
Figure 4: A simple contractual schema for ex-ante incentivization
In ex-ante incentivization project management, if there is no risk, no need for any safeguard,
and the reward surely low. If there is risk, there may or may not be a safeguard. If there is no
safeguard, the contractor buys the risk from the owner, and a high reward may required. In the
RiskPresent High Incentive Medium Incentive
Absent Low IncentiveNO safeguard or
Incentive necessary
Absent Present
Safeguard
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other hand shall there is a safeguard but the owner underwrites the contractors risk, the
incentive can be lower.
In some cases the safeguard is only provided against extreme risk and for lower levels of
uncertainty, the contractor takes the risk, for extreme events, the client underwrites the risk.
This is the case for target price contracts, or where the contractor only claims for variations
over a certain size.
However, in these cases the reward is less shall there is no safeguard. Ex-ante incentivization
only can be adopted where the project conditions were entirely predictable throughout its life.
With that Im afraid this project contract management is not applicable in the
decommissioning of a nuclear power plant project as the risks are high and also unpredictable.
Flexible, Farsighted, Ex-post governance
If in the ex-ante incentivization the safeguard can only be given for all foreseen risks, ex-post
governance in the other hand if properly motivated, the projects participants should together
try to achieve clients common goal to complete the project within time, at estimated budget
and acceptable performance with safety and sustainability.
InFlexible, farsighted, ex post governance project contract management, it is opened to deal
with unforeseen circumstances. Williamson (1995) suggested this kind of project contract
management to provide four parameters which are the incentive intensity, the ease of making
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uncontested, bi-lateral adaptations, the reliance on monitoring and related administrative
controls, (transaction costs) and the reliance on court ordering.
In this contract incentive intensity where greater incentive intensity will elicit greater
performance and sustained effort from the contractor to achieve the projectr's objectives, and
greater flexibility in accepting changes to adapt the unforeseen circumstances. Bi-lateral
adaptation where the ability of the parties mutually to accept changes should be imposed with
collaboration, cooperation and cordial approach. Any Reliance on monitoring and
administrative controls will only incur additional cost on the client.Thus, incentive intensity
has a stronger impact on project costs than reducing control. If appropriate incentives are
chosen, there may be no need for monitoring and control procedures, with the contractor
working on their own.
Reliance on court ordering should be reduced as much as possible and the contract should
encourage client and contractor to settle their differences in ways other than settling them in
court. Shall involve with arbitration or litigation the project will become a conflict and all
parties will be in lose- lose situation. This adversarial approach should be replaced with trust.
Surely in decommissioning of a nuclear power plant shall involve and face a lot of uncertainty
and the risk are high e.g. possibility of explosion, high radioactive reading, fatality and many
more. Thus, farsighted post governance project contracts management are more likely to be
chosen in this project as it is able to face any new risks or uncertainty that may arise
throughout the project duration. It is able to deal with unforeseen events, whether adverse or
advantage. As the complexity and risk of this project is very high all parties should play their
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roles to achieve the project objectives. In order to encourage the contractor to do that client
should offer the contractor with incentive and to provide flexible, farsighted governance to
deal with incompleteness, but at minimum transaction costs
In a high risk, large, complex, multi-stage, expensive and a fast track project like this the risk
should be shared among the client and the contractor although it may not equally distributed.
This is important as the decommissioning of a nuclear power plant will involves in securing a
lot of works permit and authorities issues. The client should play their role to assist the
contractor in securing all these necessary work permits.
In my opinion the cost plus management contract where cost plus the incentives and the
contractor fees (c+if) should be applied for this project. The contractor is paid for their cost,
management fees with incentive for their contribution in solving the problems and completing
the given task. Basically in this type of project the risk to the contractor is in the product and
as well the work process.
5. STANDARD FORM OF CONTRACT AND SOURCES
Standard form of contract generally produced within a range of industries typically by
professional bodies serving those industries or by committee specifically set up for the
purpose. Therefore it is wisely to use the common standard form of contract shall they are in
the same industry as you are for one reason they have been tested compared to bespoke
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contract where while designing it you might left out some certain important conditions. It is
not easy to produce a standard form of contract as it requires a lot of effort and cannot
undertake lightly.
For example in 1998 the UKs Association for Project Manager published standard terms for
the appointment for a project manager took some two years to draft. The intention of standard
forms of contract is to provide a representative viewpoint of the industry which they serve. In
a modern contract strategy the standard form of contract should not be one sided. It should
share the risk equitably (in our case) between the client and the contractor.
In Malaysia we also have a few of our own version standard form of contract issued by
Pertubuhan Arkitek Malaysia (PAM) issuance of the PAM2006 (coming fast at the heels of
PAM1998), Construction Industry Development Board (CIDB) of Malaysias various forms
(CIDB2000, model terms for domestic sub-contracts, etc) IEM (The Institution of Engineers,
Malaysia) Conditions of Contract and Jabatan Kerja Raya (JKR) Malaysia issuance of
JKR203A edition 2007 where they indicate the perceived agreement that the source of
conflicts and disputes might be traced to the contract. Other well known international standard
forms of contract are also practiced in Malaysia especially by the international companies and
when a contract involved international contractors. Some of the common international
standard form of contract can be used in this contract and namely below;
FIDIC standard form of contract is very widely using in the construction industries. FIDIC
stands for Fdration Internationale Des Ingnieurs-Conseils in French or it mean The
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International Federation of Consulting Engineers, Its foundation started in 1913 by three
countries namely Belgium, France and Switzerland each wholly or partly francophone.
JCT standard forms of contract are also widely used in the construction and engineering
industries. JCT means Joint Contracts Tribunal, who produces standard forms of contract,
guidance notes and other standard documentation for use in the construction industry.
Established in 1931,
ICE the Institution of Civil Engineers founded on 2 January 1818, is an independent
professional association, based in central London, representing civil engineering. The majority
of its current members are British engineers, but it also has members in more than 150
countries around the world. NEC Engineering and Construction Contract is one of its
products.
In my opinion any type of international standard forms of contracts can be used in this
contract. The most important thing it should not be one sided and shares the risk equitably
between the client and the contractor. The usage of standard forms of contract would be highly
recommended especially in the field of construction in order to avoid ambiguity among
different standards adopted by each country. After all these international common standard
form of contract have been tested and used for quite many years and therefore their successful
are almost definite.
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The main issue of using the standard forms of contract is, clients are demonstrating that they
wish to abide by industry standards and not impose unfair terms that shift the balance of
power too much in their favor.
6. CONTRACT LAW
Normally the contract law to be used is the law of the country that the works is going to be
carried out. If a choice is given I would like to propose to use the international law or the
British Law as they are very established and tested in the past few centuries.
In standard contract there are four fundamental elements for a binding contract to be formed
between two companies and there are:
Offer Acceptance The intention to be legally bound Consideration
For this case study, it is assumed that the our company was awarded by the Hokkaido Electric
Power Company the owner of Tomari Nuke Plant a USD 1 billion worth of contract. This
constitutes an offer by the client and acceptance by the company by virtue of law. A tender
was called among short listed contractors.
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The contractor was quoted a USD 1 billion during the tender exercise. When the contractor
had successfully won the tender, the client will award the contract to the contractor (an offer).
When this offer being accepted it means an acceptance have been made. The contract
specifically stated that the contractor need to decommissioning the nuclear power plant by
carry out the shutting down the nuclear power plant, disposal of the unused nuclear materials,
disposal of nuclear waste, decontamination the entire plant of radioactive materials,
dismantling the entire structure and place those high radioactive component to safe store
yard, entombment, levelling the ground, disposal of rubbish and replanting with grass, shrubs
and trees at on the site. In this huge international contract the offer surely come with a letter of
award and followed by everybody signing the contract document, this means the project is
legally bound. The amount of contract worth USD 1 billion stated in the Letter of award is a
considered a consideration therefore the contract are legally bounded.
It is a norm when we carry out a project in foreign country we shall bounded to their law.
Therefore in this case the work in Japan shall be subject to Japan Contract Law. Japanese
contract law allows greater ambiguity than American contract law. A Japanese contract, for
instance, does not require clear statements of offer, acceptance, or consideration: most simply
begin with a declaration, e.g. "Company X and Company Y hereby enters into this following
agreement." Their contracts also tend to contain very little detail, with the parties working out
complications as they arise.
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Although normally Japanese contract is less detailed, Japan's tort system sees considerably
less activity than tort systems in Western Europe and North America. The reason for this is
that attorney's fees are based on the amount of damages sought in the suit, not the actual
damages won. Because Japan does not use juries, judges decide the outcome of cases, and are
usually not easy to sway emotionally. As a result, many individuals choose not to sue when
their odds of winning seem low, and when they do sue, they tend to sue for small amounts of
damages.
As we shall buy a lot of other materials from varies country e.g. lead metal panel from China,
concrete cement truck with from Germany, steel from Australia and many more we will also
requires to use their law especially shall any legal matter arises. This also goes on how the
payment term will be, and normally the suppliers will ask for the money before the do the
shipment. We also need to know whether the insurances for the shipment covered by the
supplier are door to door or until it reach the first port. This shall give a big impact to project
and not only on the cost but also the risk that we need to take.
7. GLOBAL MANAGEMENT
To manage a contract of this magnitude (about USD 1 Billion contract worth) with its myriad
of complexities pertaining to huge materials, different parties involved, high risk and lethal
activities, requires a lot of resources, various regulations and permit, personnel from different
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countries and continents and name all other difficulties, an contract management approach that
is aimed in achieving a cooperative organization is paramount for it success.
Companies that operate across the international borders need executives and managers who
understand cross-cultural customs and business practices and how to promote efficiency and
optimize profitability in that part of global environment. Many corporations purchase supplies
or sell products in other countries. A construction project in Japan might require buying the
materials from all over the worlds. The design works were to be carried out by the technical
expertise from head office in France while the contractor hailed from Malaysia, skilled and
unskilled workers from China and Philippines, managers and supervisors from Japan and
Malaysia and the earth moving machines are from Japan.
Global Management techniques are requires in order operating under these kinds of
conditions. The following are the issues that the contractor might face while carrying out this
project;
Obtaining permits to run a business or construction licence in Japan.
Complying with the rules for foreigners working in Japan.
Understanding the employment laws of Japan.
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Figure 5: Map of Hokkaido Showing Airport Locations, Roads/Highway and
Railway track Networking.
Understand the regulations for import and export construction of materials in and out
of Japan. For example the import tax for importing lead metal for radioactive
protection for China the biggest lead exporter in the world.
Logistics wise e.g. the distances of the job site to all the focal points, terrain of the
project site and the vicinity, transportation services by air, sea, land or train. This is
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important for delivery of materials for construction works e.g. sand, concrete,
reinforcement, lead panel and etc. Also required to export of radioactive waste and
radioactive structures for safe store. Import big truck carrying cement pump for
entombment construction.
Infrastructure matters e.g. road, ports, railway and airport for import and export
materials for construction works. Is going to be used for construction activities and
also for the workers and machineries to come to the jobsite.
Facilities such as equipment, telecommunication, electricity, internet and others.
Despite basic need for workers, telecommunication and internet are also very vital as
the resources are coming from various parts of the world therefore a lot of
coordination works need to be done. The telecommunication also important for
reporting and communicating as the design head office for the French technical
expertise are based in France. Surely they need to communicate often as complex
construction will face problem long the process.
Time zone and physical distance might contribute negative factors. Problem in
communication to HQ, suppliers and others. Workers might spent night time
contacting family and love one and might affect their sleep time.
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Photo 3: Good road and railway network are requires for transferring the radioactive
fuel assemblies and sections of the reactor vessel internals to thedry cask storage yard Safe Store area (Connecticut Yankee).
Government stability, whether the area are safe from riots, war and etc. Any issues on
the stability might incur the project cost and risk.
To understand the laws difference as we do not want to offence Japanese laws.
Sometime the law might differ and therefore we do not want to get trap.
Finances issues for example the currency stability in order for us to cost the currency
exchange rate, finance cost and the risk to the project.
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Resources consistency This is important as the company might need to mobilise some
resources e.g. machineries from other countries shall the back up here is in sufficient
of not consistent. Additional cost might incur as contractor might need to have these
machineries or equipment in house
Health and hygiene matters This is important in order for the company to take any
extra precaution to ensure the workers health and safeties are conserved.
Security Extra precaution must be considered shall the workplace or the safe store
yard is unsafe e.g. got pirate or gangs in the vicinity.
Supervision of workers that come from various places also requires good interpersonal
skills.
Project risk. The far the project location from the company head office will normally
add to higher the risk. This is due to logistic, communication and management of
resources and reporting.
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Photo 4: A truck carrying a cement pump that can extend nearly 200 feet is loaded onto an
Antonov 124 plane in Stuttgart, Germany. A few of them flown to Japan to help atstricken the Fukushima nuclear power plant.
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8. DIFFERENCES IN CULTURE, COMMUNICATION.
Differences in culture and communications are another two aspects that may ruin the
successful of global contract shall they have not been address properly.
Differences in culture
When talked about culture we cannot denied about the customs, the religion and the mind sets
as in a way they are somehow rather are interrelated.
Culture and attitude In order not to create culture confliction with the locals, their
way of life (Japanese people) should be understood. The things that we all accepted
well might not be accepted here. It also goes to the staff as the workers are coming
from various countries, background and races in order keep the harmony and cordial
working environment, optimise their productivity and interact well with locals, extra
effort are requires in order to avoid any complications.
Relevant festive season as the off days also need to be identified and considered in our
work schedule to avoid unnecessary lost of day work or productivity as some workers
they will not turn to work on this event with or without the company approval.
Behaviour. For some workers from different country they might not get along or surely
will have a conflict if they are requires to work side by side or work along each other.
A good management should anticipate this matter and split these workers to ensure
work can goes well and conflicts can be avoided.
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Religion is another sensitive issue. Some religion may have some restriction and
therefore all sensitive issues should be stopped from taking in into the jobsite and may
need to consider some festive season as off day.
Understanding the business culture of Japan might help us to manage the project in a
better manner. Japanese people not easy to trust somebody that they have just met. It is
a challenge that we need to take.
Understanding social customs of Japanese people will be an advantage to the project
other then we need to interact outside the workplace but quite a big number of
personnel and the suppliers are also Japanese people.
Communication
Project communication is a link which connects the major goals of a project: time schedule
quality expected cost estimated and safety requirement. Communication is important
because depending on the thoroughness, comprehensiveness and effectiveness of the
communication; the goals of the project would be perfect and as expected or not.
From this viewpoint, the objective of this report is to study on various factors impact to
communication in construction projects and how to improve the communication in
construction so that it can help and support the construction management team to get the
planned targets effectively and conveniently.
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One of the traits and probably the most important factor in all successful construction projects
is communication both internal and external. So, how the communication would be helpful for
construction targets? What effective measures and medium should be used in modern
construction now? What is the adverse way/manner in construction communication that
should be avoided and eliminated for ensuring smooth and as good as practice
performance/activities in construction?
Communication is the process by which information is exchanged between individuals through a
common system of symbols, signs, or behaviour. Communication is a two-way process: between the
sender and the receiver(s). Hence, it is important to consider the receiver not just as a passive recipient.
Proper communication is vital to the success of a project.
Most failures in communication can be traced to misunderstandings of the symbols that play an
important part in the process of human communication. This is mainly due to inadequacies in creating,
transmitting, and receiving these symbols, both written and spoken. In most companies, executives are
bombarded with information communicated to them through frequent meetings and dozens of weekly
status reports provided by every functional area of the business.
It is an undisputed fact that the quality and frequency of information moving down the organisational
chart is less consistent. Lack of quality assurance and control in engineering documentation creates the
opportunity for errors by those who use the documentation in their work. However, in the engineering
disciplines a great amount of communication within project teams involves symbols that are more
precise in their meaning compared to the management disciplines.
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Name: Mohd. Norizam Bin Md. Salleh
Matriculation No.: CGS 00534317
Intake: September 2010
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Basically a project is linked together by its system of communications. The role of the project manager
(PM) is similar to that of the central server in the local area network of a computer system. The PM is
responsible for the continuous and comprehensive flow of information to and from team members,
whilst focusing on communicating information and decisions that may influence the project team
work.
The project manager needs to maintain communication links with all project stakeholders. However,
certain stakeholders require direct and ongoing communication, they are:
Customers (owners, users).
Project team members.
General managers.
Functional managers.
Regulatory agencies.
Subcontractors.
Suppliers
Effective project communications ensure that the right information gets to the right person at the right
time in a cost-effective manner. Communication that is effective consists of:
An exchange of information.
A verbal or written message.
An act or instance of transmitting information.
A technique for expressing ideas effectively.
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Name: Mohd. Norizam Bin Md. Salleh
Matriculation No.: CGS 00534317
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A process by which meanings are exchanged between individuals through a common system of
symbols.
Most project managers communicate laterally, whereas line managers communicate vertically
downward to subordinates. Much of the day-to-day work on a project is accomplished by informal
exchanges of information among team members. Most project managers prefer to communicate
verbally and informally, one reason also being that formal communication can be costly.
Project communications includes distributing and channelling information on decisions made, work
authorisations, negotiations, and project reports. Project managers in excellent companies believe that
they spend as much as 90 percent of their time on internal interpersonal communication with members
of their team. Figure 4.3 illustrates the communication channels used by a typical project manager.
Figure 6: Communication channels used by Project Manager (OUM notes)
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Name: Mohd. Norizam Bin Md. Salleh
Matriculation No.: CGS 00534317
Intake: September 2010
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Project team members need to be proactive in initiating timely communication with other team
members and the project manager. Communications management is the formal or informal
process of conducting or supervising the exchange of information either upward, downward,
laterally or diagonally.
Communications management is vital for effective project performance. Project members
need to know and understand the action that is to be carried out on a project. It is important to
consider the following basic concepts of communication theory and practice:
Only one common language (English) to be used in the project.
Be as specific, simple, precise and clear as possible about the information to be
conveyed.
Know who the receiver is and what are the receivers expectations.
Design and develop the message with the receiver in mind, keeping in mind the
receivers role in the project.
Prompt & instant
Internal & external
Suitable & proper for any circumstance
Effective and productive
Timely and synchronous
Friendly and appropriate
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Name: Mohd. Norizam Bin Md. Salleh
Matriculation No.: CGS 00534317
Intake: September 2010
Assignment EMCM5103
Question 2 - Page 30 of 36
Communication is always an indispensable necessity and demand of individual, collectivity,
community, and organization. In construction and for construction projects, especially for big
project or trans-countries project, such regard becomes more and more important. It plays a
vital role for the link of all resources to create a collective and common force for the well-
performance of the project, hence bring benefits to every involved individual and team/group,
company, community and society.
Building an effective and powerful communication system for a construction project is not a
simple/easy work at all. It demands good background, expertise platform, life experienced and
a brain-storming as well as an open soul and inspiration; and of course subject to the
specificity, particularity and size of the desired construction project.
All manners and measures are settled for the ultimate goal: the success of the project - meant
benefits brought to the clients, contractors, supplier, all parties involved, community and
society.
The success of construction project also mean success in every phase of the project. Therefore
the communication plan or method applied to the project should be deployed and mobilized
effectively and productively through every stage of the construction project such as:
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Name: Mohd. Norizam Bin Md. Salleh
Matriculation No.: CGS 00534317
Intake: September 2010
Assignment EMCM5103
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Planning stage:
Quite understand the intention of the client; the purposes and functions of the project.
Deeply discuss and consult with the client for common understanding.
Collect experience from expert on each specific and particular disciplines of the
constructed project, to learn the best estimation on technique, technology, cost and
schedule.
Anticipate and evaluate the pros and cons for the project; and then exchange, dialogue
with the client and project team.
Create a harmonious team which will result in perfect teamwork consists of project
management, conceptual architects, quantity surveyors and the authorized
representatives of the client.
Design stage:
Clearly classify and discriminate sets of drawings: architectural, structural, mechanical,
electrical, plumbing, faade, curtain wall, interior, setting-out, schematics, plan and
section layout.
Collect and then select a qualified list of designers with the approval from the client.
Timely and validly update for revised set of drawings or bulletin so that any update of
drawings is always recorded, documented and controlled.
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Name: Mohd. Norizam Bin Md. Salleh
Matriculation No.: CGS 00534317
Intake: September 2010
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Construction stage:
All contractors, subcontractors, suppliers, installer, and others must conform to and
comply with a very clear, strong and powerful project procedure.
A very effective and valid method and means of communication is media. This will not
be interrupted and limited as much as expected on the variant, deformation or
distortion of the information transmitted to the destination.
Have an effective mechanism of sending, receiving and feed-back of information.
A very clear, transparent, friendly and open-minded mechanism for inter-
communicating between the client, project management and contractors, suppliers.
Instruction or notices should be prompt, timely, and accurate.
Close-out stage:
Clear instruction and schedule for contractors to hand-over.
Close coordination with the client for taking-over
Thorough checking for the compliance of local and international codes.
Documentation of all paper works for hand-over and take-over process.
External relations and communication:
To court, to win the popularity, especially for the supports from local authorities and
press, public opinion.
To strictly keep the security of adjacent community and environment.
Keep informing and communicating positively with press and media.
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Name: Mohd. Norizam Bin Md. Salleh
Matriculation No.: CGS 00534317
Intake: September 2010
Assignment EMCM5103
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To create opportunity and influence for any possible chance.
Always consider the very important role of external communication, public and media, and
especially the support from local authorities and community.
Important role of ICT and advanced technology:
Role of ICT information & communication technology plays important and efficient factors
in project communication. Telecom and Communication equipment/devices in a construction
project should be sufficient, redundant, back-up and standby and as advanced as possible.
Computers, servers and routers used in construction site, document control as well as project
management should be powerful and durable; sufficient to handle a lot of information coming
at the same time. And also be ready for a satellite leased lines for contingency.
For a very big project or trans-country/trans-border construction project, an intermediate
server and/or share-point; share-archive is recommended for convenience and help for inter-
communication.
Communication in construction project is the art of control, monitoring, verification, recording
and documentation. Obviously, a lot of factors affect to the process; positively and negatively
as well. This requires the project management to be smart to filter and identify what are the
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Name: Mohd. Norizam Bin Md. Salleh
Matriculation No.: CGS 00534317
Intake: September 2010
Assignment EMCM5103
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helpful and active things that bring the advantages and conveniences to the project
implementation.
Some common problems that may suffering due to many problems in communication
management. Are as follows;
1. Usually skipping communication management or just approaching it shallowly due to lack
of knowledge in this area.
2. Problems related to interpersonal communication (such as face-to-face meetings), intra-
group communication (such as interactions between team members) or inter-group
communication (such as interactions between main contractors and sub-contractors) occur
very frequently at many projects. Consequently, projects communication often breaks down
and projects are likely to be failed.
3. Unable to determine project stakeholders needs for information, unable to determine
communication channels in projects, insufficient interaction between project management and
team members or between main contractor and sub-contractors or within team members,
inappropriate communication media, etc.
4. Timing of distributing information, correct information to correct stake holders, wasting a
large amount of time and resources for unnecessary meetings, etc.
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Name: Mohd. Norizam Bin Md. Salleh
Matriculation No.: CGS 00534317
Intake: September 2010
Assignment EMCM5103
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5. Unable to combine verbal communication and non-verbal communication in order to
achieve targets.
6. Abusive using of bad emotional methods during interaction between project management
and team members such as fear and threats, aversive stimulation, etc.
It is important to understand the nature of the problems and to find ways to solve them in
order to be able to develop an effective communication management system in construction
projects. Mr. Nguyen Canh Toan made a study which objectives were to: (1) investigate the
communication interactions within construction project team so that communication problems
causing project interruption can be identified; and (2) propose recommendations on how to
improve communication management within construction project team.
In order to avoid similar communication problems, recommendations are given below:
1. Project Manager shall prepare project management plan including communication plan in
the beginning of the project.
2. Strictly following the communication plan. Incentives shall be provided to encourage
everybody to carry it out properly, and also treatments or even punishments for bad
behaviours.
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Name: Mohd. Norizam Bin Md. Salleh
Matriculation No.: CGS 00534317
Intake: September 2010
Assignment EMCM5103
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3. Document controller position must be stable as much as possible in order to ensure that the
information distribution process is in order.
4. In case of ISO certified company, Project Manager should give feedback to the companys
Quality Manager to add in personality test forms together with Job Application Assessment
Procedures forms. That will save Project Managers time whenever there is new job applicant
coming to job site for interviewing.
5. Using new information-conveying methods such as: web-based data distribution, e-meeting,
etc. in order for easy document control and timing of document distribution.
6. Organizing trainings for the team members in order for them to know how to use both
verbal and non-verbal communication effectively.
7. Outside activities such as playing football, parties, etc. are recommended to improve
relationships among team members and between the main contractor and subcontractors.