Engineering general contracting is globally recognized as the most effective method for project execution. This model involves comprehensive contracting of design, procurement, construction, and project completion acceptance in accordance with contract agreements. It places full responsibility on the contractor for the quality, safety, schedule, and cost of the project. How can the application of this general contracting model be effectively strengthened in engineering? Continue reading to find out.
Strengthening Management in Four Key Areas
Design Management
Within the engineering general contracting framework, design work directly influences the functional use of the project, overall investment, construction schedule, and the practicality of on-site execution. Although design fees typically account for only 3% to 5% of the total cost, the economic viability of the design scheme significantly determines the project’s investment and subsequent construction timeline.
Planning Management
Planning management involves overseeing quality, output, and performance targets within a specified period, as well as managing production progress and related arrangements. It forms the foundation for effective engineering management.
In the engineering general contracting model, the general contractor should lead planning management, with other stakeholders aligning their plans accordingly. Planning management can be divided into three levels: schedule plans, resource plans, and work plans. Resource and work plans should be organized based on the schedule plan.
When implementing planning management, the general contractor must coordinate not only their own plans but also those of the owner, subcontractors, and suppliers. This includes managing drawing provisions, material and equipment approvals, funding arrangements, and critical inspections. This coordination allows the owner’s team to schedule work for relevant parties such as design units, supervision teams, and third-party testing agencies efficiently.
Contract Management
Contract management encompasses all processes related to contracts, including geological surveys, supervision, pile foundation construction (e.g., pipe piles, drilled piles, cement mixing piles), pile foundation testing (static load, low strain, core extraction), soil work (excavation, backfilling), civil defense doors and ventilation, general contracting for civil engineering, mechanical and electrical contracting, exterior decoration (stone, aluminum plates, coatings), installation of doors and windows, railings, solar energy systems, floodlighting, fire safety, intelligent systems, plumbing, electrical work, public area decoration, fire doors, entrance doors, indoor fine decoration, outdoor municipal pipelines, landscaping, community signage, amusement facilities, flower bowl ornaments, and project acceptance procedures.
One critical improvement needed in contract management is shifting from the traditional mindset of “construction based on drawings” to a “construction based on contracts” approach. Instead of neglecting the drawings, parties must study the responsibilities and rights outlined in contracts, determine the scope of work accordingly, and take action based on these agreements.
Construction Coordination
(1) Process Management: Engineers with multidisciplinary expertise coordinate zones and sections comprehensively, participate in inspections of concealed and critical processes, and ensure the preparation and implementation of plans for major subprojects.
(2) Public Resource Management: This includes managing temporary building layouts and mechanical equipment, with particular focus on vertical transportation equipment like tower cranes and construction elevators. Investing adequately in vertical transportation enhances operational conditions, improves efficiency, and accelerates progress. It is also essential to analyze the critical path positions of each trade and study process connections in detail.
Cost Control in Engineering General Contracting
Challenges in Engineering Cost Management
The shift in roles from construction units to general contractors has transferred project cost control leadership to the general contracting entity.
The expanded project scope under the general contracting model has altered the foundations for cost estimation.
Increased risks and management costs associated with general contracting have changed the composition of engineering costs.
Changes in contract pricing models have fundamentally transformed budgeting and settlement methods in cost control.
Cost Control Measures
Strict Contract Signing and Management
In EPC projects, effective contract management is crucial for cost control. General contractors must rigorously review contracts with both owners and subcontractors. During bidding, the scope and content of the general contract should be clearly defined. Subcontracts with subcontractors are critical for controlling costs during construction.
Before signing any contract, it is essential to thoroughly examine clauses related to scope, payment, price adjustments, engineering changes, progress, force majeure, claims, and dispute resolution. Ensuring these clauses are comprehensive and precise helps prevent loopholes that may cause excessive settlements, thereby maintaining control over project costs.
After contracts are signed, proper document management and dynamic contract execution analysis are necessary. Proactive measures should be taken based on these analyses to mitigate contract risks.
Enhance Management of Construction Changes and Approvals
Design changes are almost inevitable during construction. Cost control engineers should track costs throughout design, procurement, and construction stages, coordinating closely with procurement teams to minimize changes and optimize material use without affecting schedules.
Additionally, managing existing design changes or approvals requires thorough documentation, clear identification of responsible parties, and efforts to minimize financial losses for the general contractor.
Focus on Pricing of Concealed Works
Accurate quantification of concealed works is vital for cost control during construction because these elements cannot be easily verified once completed. Cost control engineers must maintain responsibility and diligence in recording pricing data for concealed works, conducting on-site measurements, inspections, and confirmations based on design drawings.
Examples include verifying specifications, length, and spacing of steel bars in reinforced concrete, pile foundation depth and concrete grade, and cushion layer height. This prevents over-reporting, false claims, and unnecessary cost increases.
Ensure Comprehensive Project Settlement Upon Completion
Relying solely on project completion data for settlement is insufficient. Cost control engineers should conduct on-site investigations to verify the accuracy and completeness of project data.
(1) Strict Control of Engineering Quantity Accounting
Only projects that meet subcontract requirements—such as adherence to design drawings, technical specs, contract documents, and complete quality acceptance materials—should be measured.
Pricing must adhere to scopes defined in subcontract agreements, ensuring compliance with contract documents throughout measurement.
Projects constructed or reworked outside contract scope due to subcontractor issues should not be measured.
(2) Careful Verification and Application of Unit Prices
Contract unit prices are generally used for settlement. Cost control engineers should verify that approved sub-items for prefabricated buildings align with drawing standards—component names, section forms, strength grades, etc.
They should also analyze the unit price composition to avoid duplication, such as double-counting iron parts in prefabricated components.
For newly added projects outside the original contract, unit prices are often based on similar sub-projects. Engineers should decompose original unit prices, compare work content with new projects, and establish accurate new unit prices. Verification of pricing methods and on-site data analysis are also essential.
(3) Material Price Difference Accounting
Contracts typically state that subcontractor-provided materials are not subject to market price adjustments. Provisional material prices and prices for newly added materials should be settled based on mutually agreed prices.
In special cases, thorough communication with subcontractors is required to verify brand, specifications, models, and quantities to establish fair prices. Material consumption calculations must follow quota standards.
(4) Rational Fee Collection
Fees should be based on the project’s construction contract or local engineering cost regulations. Attention should be given to the timeliness of fee documents, consistency with project administration, correct rate calculations, and appropriate fee bases.
Particular care is necessary for projects with reduced rates or prices to check for any decreases in changes or new projects during settlement.
Article source: Architectural Technology Magazine
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