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Construction/Procurement
Projects [Lack of Expertise or 'Fraud'] INTRODUCTION 1.0 All designers, be they engineers, architects or others, are required to provide their best endeavors and expertise in the quality of their professional services. This is one of their primary responsibilities and is so emphasized in their respective profession’s code of ethics. Thus the clients expect their appointed professionals to provide their best expertise and quality of service. They are also expected to ensure economies of cost in their designs. In short, the designs are expected to be efficient and cost effective while satisfying the intentions of the client and the objective of the project. BUDGET OF THE PROJECT2.0 The client gives his needs and his budget to the designer and other relevant professionals. The designer then creates the design within the constraints of the ‘limited funds’ and sometimes, the ‘unlimited wants’ of the client. The designer and other professionals use the client’s needs and budgetary guidelines together with the prescribed statutory approvals of relevant authorities, as input to finalize the design. DESIGN MANAGEMENT OR ‘TOTAL COST’ CONCEPT3.0 It is not specifically prescribed in the code of ethics of the professionals that the designs should be based on the ‘total cost’ concept. Designers would generally practice the ‘total cost’ concept in their designs. However, this may be limited in scope due to the client’s approved limited budget guidelines. These designs may include elements for minimum post construction service/maintenance costs. Designs that take into account the overall construction and post construction aspects cost of the project, can be referred to as ‘design management’. DESIGN DEFICIENCIES 4.0 The final approved design that is implemented may have satisfied the client and the statutory guidelines of regulatory authorities. It may be cost effective in respect of the initial construction cost but may not provide for cost savings in the post completion period. Thus it may not be the optimum design that is cost effective in its entirety. There may be some aspects of the design that may cause avoidable or higher costs in the post completion period. These could be referred to as ‘design deficiencies’. The ‘overlooked’ aspects in the design may have financial implications that may not surface until after the expiry of the defects liability period of the project. In some instances the costs would arise some years later. The only certainty is that the costs will arise. These costs generally refer to periodic service/maintenance or repairs that will be essential. These costs could have been avoided or minimized if they were taken into account in the early stages of design development. SOME EXAMPLES OF ‘DESIGN DEFICIENCIES’5.0 Some examples of higher/avoidable costs incurred periodically by every property owner [big or small] that could be attributed to ‘design deficiencies’ are listed below. [a] Difficulties in gaining access to service areas for periodical service and/or maintenance [e.g. plumbing, m & e installations, water tanks]. The problems could be due to fancy designs and without sufficient provisions for post completion needs of which the client may not have been made aware. [b] Water/waste pipes at angles without ‘traps’ or easy access for blockage removals. [c] PVC pipes installed for residential properties where the owner would want to install hot water facilities at some future time. It would need hacking, tile replacement, electrical wiring, etc., if done after delivery of property. [d] Two-phase wiring provided that has to be replaced with three-phase wiring when air-conditioners are to be installed. [e] Rainwater going to waste when it could have been channeled to storage containers for later use and savings. [f] Poor quality/minimum size specifications used [e.g. paint, untreated wood, plumbing pipes. electrical wiring,] specified or used that would result in earlier repairs and replacements. [g] Under specifications of works [e.g. reinforced concrete in concreting sections, roofing, flooring, brickworks] resulting in defects appearing/surfacing shortly after expiry of defects liability period. [h] Lack of proper facilities for washing and drying of laundry. Insufficient water storage tanks and outlets at different levels to cater for low pressure during water shortages. [i] Approved minimum number of power points installed that are not commensurate with present day lifestyle needs [e.g. computers, printers, TV sets, HI-FI sets, fans, air-conditioners, washing machines, microwave ovens, cookers, ventilators]. Consequently most owners commission additional electrical works or multiple use plugs that could be a fire hazard. [j] Balconies constructed which do not serve any purpose due to local climatic conditions and work styles. Subsequently balconies are incorporated into living space by renovations. In the meantime and where not incorporated as living space, the balconies used for hanging clothing for drying in the sun and used for storage purposes. 6.0 The above examples would denote that professionals who design properties for the public needs, the authorities who approve them and the developers who sell them, do not experience problems or have to bear the additional costs that could have been avoided or minimized, similar to those quoted above. The reason could be that they might belong to a status that never needed to occupy a property that was bought directly from the developers or they may have not needed to pay these avoidable/excessive costs from their own pocket or money was of ‘no object’. The examples quoted above are those that are often experienced by house owners. 7.0 Above examples list is not exhaustive, as it does not list the landslides and collapses that occur in infrastructure projects and are reported often by the media. It quotes those cases that are readily identifiable in any part of an urban township where the majority of house owners would have experienced it at some time or other. It also does not refer to individually designed properties where the owner specified ‘total design cost’ concept and the appointed designer had the expertise and did not have any financial constraints. CONTRIBUTING FACTORS FOR ESCALATING POST COMPLETION COSTS8.0 the main factors that contribute to the escalation of costs during the post completion period can be due to ‘design deficiencies’ and ‘weak supervision’ during construction. These may also be attributed to the client and the contractor. Factors are listed below: CLIENT
CONTRACTOR
PROFESSIONALS
[Other parties that may be perceived to be indirectly responsible are the regulatory authorities’ approvals and monitoring, combined with apparent ‘weak’ laws [penalties that are too small and non-deterrent] and their ineffective enforcement [when carried out]. CURRENT STATUS OF ‘DESIGN DEFICIENCIES’ 9.0 The media has been reporting this sad state of affairs since decades ago but with little improvement. The problems are highlighted every time there is a tragedy [Highland Towers Condominiums collapse and another buildings that collapsed in the same area]. However this is soon forgotten. It could be that memories are blinded by the glitter of the profits to be made. All the wise pronouncements and warnings will be repeated and orchestrated again by the experts and those in power. In the meantime, consequences of ‘deficient designs’ will continue to surface in defects and collapses of buildings and infrastructure facilities. ‘POSITIVE’ EFFECTS OF ‘DESIGN DEFICIENCIES’ ON THE ECONOMY[Destruction before Development] 10.0 The problems faced by property buyers have been attributed to designers, developers, contractors and regulatory authorities. This is due to the fact that most standard designed properties that are purchased from developers have generally proven to be not compatible to the needs of the users. Thus ‘development’ opportunities are provided in the designs by a need for subsequent ‘destruction’. This has created a new discipline and that is the ‘renovation’ industry that has spawned new businesses for others who include small and medium scale contractors, new designers, building materials manufacturers and suppliers, transporters, financial institutions, legal profession, and also additional revenue for the local authorities. CONCLUSION 11.0 It can be said that the ‘design deficiencies’ are not all bad as it creates new business and employment opportunities. In other words, it has been good for the economy. While [few] property owners pay, [many] services providers [benefit]. However, if the ‘design deficiencies’ are repeated then questions arise. Are the ‘design deficiencies’ due to?
‘LACK OF EXPERTISE’, ‘INEXPERIENCE’ OR ‘FRAUD’ OR IS IT THE RESULT OF ‘COLLUSION’ [WITH/WITHOUT REALIZATION] OF ALL INVOLVED PARTIES AND WITH FULL KNOWLEDGE AND SUPPORT OF THE ECONOMIC PLANNERS/AUTHORITIESRECOMMENDATIONS THE ONLY ADVICE THAT CAN BE GIVEN IS THAT: ‘LET THE BUYER BE AWARE & BEWARE’
OWNERS MUST FIND WAYS AND MEANS TO MINIMIZE COSTS/LOSSES BY ENSURING IN ADVANCE THAT NEEDS [AND SOME WANTS] ARE INCORPORATED IN THE DESIGN BEFORE IT IS APPROVED BY THE AUTHORITIES, PROJECT CONSTRUCTED AND DELIVERY TAKEN [WITH CERTIFICATE OF FITNESS]. ADEQUATE FACILITIES SHOULD BE INCORPORATED IN THE DESIGNS FOR POST COMPLETION MAINTENANCE
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GURSHARAN SINGH C.M.I.I.A. [Trainer
–Audit Officer] Tel. No. [H] 603-79808549 [H/P] 019-2927178E-mail: gursharan38@gmail.com, sharwant38@yahoo.comThe opinions, beliefs and viewpoints expressed by the various authors and forum participants on this web site do not necessarily reflect the opinions, beliefs and viewpoints of AuditNet® |