Although there is the odd deviant, obeying the law is important!

The Laws of Tendering

“Law is a bottomless pit; it is a cormorant,–a harpy that devours everything” – Jonathan Swift (1667-1745) prophesizes the current condition of Engineering Law and Ethics as taught at any major university.

For those of you engineers out there reading this blog, you too had to sit through a law course in your undergraduate career. If there is as much similarity between this writer, his old classmates, and the rest of the engineering demographic in the known universe as can be reasonably assumed, then engineering law and ethics was the class we all skipped in our desperate attempts to get a decent passing grade in concrete and steel. With that in mind, this article will cover the section of course notes on tendering that we burnt after the final exam, which perhaps is more interesting to all of us now that we have to be professional engineers while avoiding being sued by everyone under the sun.

What is a tender and how does it work?

Tender? Steam Tender? …Delicious Chicken Tenders?

Tendering, although a word which may make the more childish of us imagine “choo-choo” trains, is actually an important process which governs the course of every partnership between a contractor and an owner. Tenders begin when an owner decides to build something; the owner prepares design drawings, specifications, engineering reports, and a tender form which are released in a package for contractors to use as a means to bid for the job. When a contractor bids on a job, the submittal of their bid is the tender. The contractor’s tender consists of an estimate of material, labour, equipment, subcontractor, and local costs. The system is designed to work such that the contractors will submit their tenders by a deadline set by the owner, the owner will select the best tender, and the work will be carried out by that selected contractor. However, for those of us who managed to make it to at least one of the law classes, we were able to learn that things are never that simple…

The legalities of tendering

Submitting tenders, like joining the Stonecutters, becomes a legally binding contract

The legalities of the tendering process today are designed to promote competition and the fair awarding of contracts; three famous legal cases have helped develop and highlight the workings of this system.

Firstly, the 1981 case of R. v. Ron Engineering and Construction (Eastern) Ltd introduced the system of Contract A and Contract B. This case changed the concept of a submitted tender from an offer to a contract; there is now contractual obligation (Contract A) for the owner to fairly award the contract based on the criteria within the request for bids and that the contractors must satisfy the requirements of that request. Once the owner selects a winning bid, the contract moves forward for construction and becomes Contract B. In short, before this case was completed the owner could select whichever contract they liked best regardless of their biases or of how closely each contractor met the requirements of the request for bidding, which was very detrimental to the business of contractors who were unfairly neglected by the owner or who diligently met the rules of the request where the winner may have failed to meet criteria but then became a better choice for the owner.

The second case was in 1999; MJB. Enterprises v. Defence Construction Ltd defined Contract A’s as to only exist where the contractor’s tender complies with the entirety of the request. This requirement helps solidify the competitiveness of the bidding process because now all contractors must try to win the bid while strictly adhering to the constraints of the request. In addition, this case identified that the lowest bid contract of all compliant contracts may not be the best contract, and allows owners to select winning contracts based on what is truly the best bid as set out by the request.

The third case was Martel Building Ltd v. Canada in 2000, which found that although the owner must treat all bidders fairly, that fairness is derived by the definition of the request for bids. If the request for bids contains reservations such as accepting or rejecting any tender, not accepting the lowest bid, overlooking minor errors, adding or deleting items, or the right to selectively negotiate, then those are the rights that the owner must legally act in mind with; this is not to say privilege clauses allow an owner to do what they want, rather that they must be fair in the use of their privileges.

Claiming damages in tendering

If you lose a bid due to unfair or negligent practice, you’re not hooped yet

So now we’re professional engineers and just like in third grade soccer the team captain (owner) didn’t pick you (the contractor) first (winning bid). Well don’t get all teary-eyed yet, because if you thought you were your class’s David Beckham (winning bid) then maybe the team captain picked Johnny Slowrunner (undeserving bid) first only because they grew up on the same street (secret preferences); now you have rights to damages.

Damages can exist either contractually or in tort through the tendering process. Contractual damages exist where the contract agreement between the owner and the contractor is broken; in the case of tendering, if the owner broke a rule in their Contract A with a contractor, then that contractor could claim damages. Damages in tort exist where one of the parties is held liable for the damage suffered by the other party, due to a degree of owed care which was reasonably foreseeable and negligently dealt with.

The damages owed are a function of the contract and the amount. If the request for bids contains clauses with respect to damages, they will govern the awarding of damages, as all parties who submit tenders are agreeing to the terms of the request. Following the request clauses, the awarded damages will be a function of how much damage was suffered. For example, if a Contract A is broken by the owner where the contractor adhered to the bid rules, the contractor may be refunded their bid bond (their deposit), the cost of their bid preparation, or both. If a Contract A is broken by the owner to the extent that if it was not, the contractor would have been selected over a different bid which did win, that contractor may be rewarded their lost profits associated with the loss of Contract B.

Conclusion

Common class participation in Engineering Law and Ethics

The tendering process is now more fair and competitive; as long as your hard work obliges the rules of the tender as a contractor or you award tenders fairly and logically as an owner, you will be successful and will not get into trouble. Well then, no more law! NO MORE LAW! It’s been 3 hours and all of your classmates either went home on the last 10 minute break or are sound asleep, drooling, with their heads on their desks because it’s 10pm and you’re still on campus because they only teach law at night. Don’t fret though, this is your last paragraph and you’re still awake so now you get to read the line that you looked forward to for all of those 3 hours every week: “That is all for today, thank you!”

Citations

[1] Richler, Joel. (2002). Tender Law in Canada: Practical Implications. Blakes: Business is our signature. Retrieved Thursday, September 17, 2009, from http://www.blakes.com/english/view.asp?ID=289

[2] Miller, Deidre P.Eng. (NA). Tendering Issues. Law for Professional Engineers: Week , Course Notes.

Access Scaffold to Steel Structure

Initiatives for Women in Engineering and Construction

Woman, Science, and Engineering

More and more woman are trying to get started in science and engineering, since it’s easy to do and a great career to build. However, most people don’t know too much about engineering, or how to get started. Here’s some information on Woman in science and engineering that you’ll definitely want to know before you get started.

Woman Engineering Statistics

We in the industry have heard it again and again that there are less and less qualified workers on construction sites. The construction sector has seen a shortage of skilled labor across Canada [and the rest of North America] largely related to the retirement progression of the ‘baby boomers’, and the natural decrease in population stemming from decreasing birth rates. Employers recognize that recruiting nontraditional groups such as women is crucial as compensating shortage with Immigrants and temporary workers is just not enough. Statistics Canada recognizes 47% of workforce to be women in 2006, although only 4% are in construction and 12% are engineers.

Without a doubt, while skilled labor flourished at the peak of the ‘baby boomer’ era, there was no push or motivation for women to enter the construction industry at any level; employer, coalition groups, nor government. It was simply thought to be seen as a rugged workplace that women could never excel in.

Recently coalition groups such as the Canadian Coalition of Women in Engineering, Science, Trades and Technology (CCWESTT) have stepped up in awareness and initiative for women in engineering and construction. They have been a major player in recognizing benefits for businesses to increase female workforce.

Summary

If woman show an aptitude and are interested in the subject there is no reason why there cannot be more of them in engineering and science. Especially when women that are interested seem to consistently excel in schooling. CWSE stands for “Committee on Women in Science and Engineering” Its primary mandate is to “increase the participation of women in science, engineering, and medicine.” There are countless groups formed that have the same mission in mind. For example the North Eastern University college of Engineering have a program that is an all-day event for girls in high school. In 2009 this event takes place in October. Many of the colleges have created a specific educational course known as WIE (women in engineering).

Women that are considering perusing a career in engineering are encouraged to attend a WIE meeting. You will find the information presented truly inspiring. You will be able to meet and develop relationships with people in then industry. These contacts may become important mentors and references for the future.

Construction engineering is the ability to obtain construction operation through engineering. A Construction engineer’s work involves planning/scheduling, management of structures, and plays a big role on site. This work requires a wide range of knowledge and skills.

Construction Engineering Saves Time, Money and Maintains Deadlines

Planning

The planning and scheduling for a construction engineer is the most crucial to the success of a construction project. It involves understanding and delivering the requests of the client. In order to accomplish these requirements, the construction engineer requires a strong sense of comprehension whether it is verbal, in written form, illustration or documentation. Also, the planning includes budgeting and scheduling so that the project does not exceed the client’s budget, at the same time being able to comply with the client’s pre-requisite.

In order to provide a good cost estimation of the budget, the construction engineer needs to have a sense of the economics and to provide analysis of data sets. The data sets might include human behaviour as to knowing the trends of the current economy.

Scheduling

The key to a good plan is good scheduling. Scheduling may include a log to the progress of a project and predictions to the up-coming progress. It may also include what kind of obstacles might arise. This requires the construction engineer to have a high sense of 4-D visualization, which is visualization of the structure and how the structure will progress over time.

Structural Management

Another responsibility of a construction engineer is the management of structures. The structures an engineer manages include a large variety such as highways, bridges, dams, airports, railways, reservoirs, and any other kind of buildings. Within these structures, the engineer is responsible for the design and analysis of various details. These details may include the design of building layouts in relation to the site, conditions, concrete mix, hydraulic systems, and temporary structures. Some temporary structures may be a part of the main structure to aid in the construction project. In order to manage these details, the engineer may need to analyze the condition of the site through aerial photography, topographical information, blueprints and drawings.

Control

The role of the construction engineer on site is to ensure the control of the site whether it is progress, payments, and safety. The control of the progress is most crucial. To ensure that the progress is advancing according the schedule, your engineer will be monitoring the site whether it is the equipments or workers. It is construction engineering that will ensure equipment is repaired to a safe standard in order for the worker to work efficiently and safely.

Budgeting

Budgeting is also crucial to the progress since a project could be delayed due to the lack of funding and payments to progress claim. It is the responsibility of the construction engineer to solve or prevent problems. In order to solve these problems, it may require some math, science skills and critical thinking from the construction engineer.

In conclusion, construction engineering is to solve the problems in a construction project. Construction engineers use their skills and knowledge to accomplish the client’s needs and help produce the work required to be done through planning, critical thinking, and ensuring the quality of the resulting products.

There are three main reasons a construction engineer is important. The project team can save money, save time, and management can save on stress that may add the needed expense of aspirin.

How a Construction Engineer Benefits You

Saves Money

Construction Engineering Saves Time and Money

All three reasons are linked but should be discussed separately. This is because they may all affect the project in different ways. The most important reason to have a construction engineer is that, in the end, it will save the owner and the general contractor money. Many contractors believe that hiring an engineer will be costly, nothing is further from the truth. Many of the same contractors don’t understand that there are net gains in savings. Examples of this are “typical” temporary structures that do not require engineering are usually over designed. This is done to protect the manufacturer. If a construction engineer is hired many times the excess materials saved will exceed the cost of the engineering.

Saves Time

Time can also be saved by hiring a construction engineer. Many times with our experiences we are called on sites that have been shut down by an enforcing authority. At times the reasons are simple, like not having the required drawings for a scaffold structure that exceeds fifty feet in height and other times it is because the contractor is known to not follow the rules and the enforcing bodies check and review every structure and safety procedure on site. Having a construction engineer can quickly resolve problems involving technical inadequacies and job site closures can be reduced or avoided completely. This will save you time.

Peace of Mind

What price will you put on your peace of mind? If the answer is high then you want a construction engineer. The management team can feel more secure knowing that all structural aspects of construction have been looked after. Also all engineering components in conjunction with mechanical, electrical, structural, and architectural will be sorted out on site much quicker. Fewer conflicts will occur between mechanical, electrical, structural, and architectural drawings if one “construction engineer” reviews all the drawings.

In our experience many conflicts occur during utility connections. Other issues occur when the management team does not realize that many temporary structures require engineering.  Temporary structures may have to be approved by an engineer.

Examples: scaffolds, swing stages, shoring (horizontal or soil shoring, lateral, and vertical), formwork, pre-cast installation procedures and so on. Having a construction engineer will give management more time to focus on what they are hired to do.

Additional Benefits

Other benefits that a construction engineer brings to the table are professionalism. The construction site will look more professional in the eyes of the government enforcing body or any other construction enforcing body if the construction site is known to have a “construction engineer”. This will also reduce the chances of a site being shut down. AJW Engineering has helped many general contractors in situations where drawings, letters, reviews, and designs by a professional engineer are required for temporary structures where the on-site superintendents had no idea it was needed. Our quick on site response is beyond any other consulting firm. We always recommend that before getting into “nerve racking” situations that an Engineering firm be contacted to be part of the on-site construction team from the beginning to the end of the project!

Adding Value to each Project with VE

Getting the best value engineering is not always about cost savings. Let’s look at the dictionary meaning of value;

“to consider with respect to worth, excellence, usefulness, or importance.” Source

In construction engineering there are two parts to value;  function and costs. An engineer may suggest alternate methods to complete the task at hand that

A) Add more functionality at little to no extra cost. An example of this may apply to an owner of a building. Typically owners have to pay the cost of heating and power. An engineer can suggest ways to reduce the cost of both by using a more energy efficient design. This benefits the owner of the building and consumers (if owner rents or sells units)

B) Reduces the cost of a project without sacrificing any functions. An example of this is foundation thickness. If soil pressure testing checks out, concrete (foundation) thickness may be reduced. This can save money on the material purchased to pour the foundation.

It is a system of organized procedural decisions designed to deliver more value to the project. The beneficiaries of value engineering services are clients, contractors, owners or end consumers. It has been an accepted engineering review & analysis practice since the 1940’s. In the 40’s the original concept was developed by General Electric Company to cut back on costs in a time of war (World War 2). VE is the acronym for this procedure although VEA (value engineering analysis) is also a recognized term.

How Does VE Work?

VE is a way of thinking

By following a process that includes several steps, engineers developed techniques for value analysis and engineering. For example a modern day system includes 8 steps.

1. Preparation
2. Information
3. Analysis
4. Creation
5. Evaluation
6. Development
7. Presentation
8. Follow-up

The goal of VE is to optimize the overall value of a project. VE may result in redesign of an alternative where schematics may require revisions to the original design plan. In construction a contractor may also benefit from an optimum VE plan. The techniques of value analysis and engineering have common guidelines as shown above but an engineer may add their own spin on a VE assessment. There is certification available for VE’s and often virtual environments are used to conduct testing for a proposed VE plan. Once testing is completed a change proposal is submitted against the original design.

Value engineers use a value formula as part of the value management process. A reduction of construction cost is generally the aim of VE for construction contractors. Engineers explain it as “finding a second right answer”.

Every engineering consumer should know more about value engineering, especially if the business is looking for the best bang for your dollar. Researching to find out the facts about efficient design and build is necessary in order to optimize your bottom line. If you are a condominium building owner your building will be much more appealing to consumers once VE is in place.