The management of civil works in sectors such as steelmaking and mining faces complex challenges that demand rigorous and well-planned administration. This article explores the main difficulties faced by project owners, especially regarding contract management, and offers best practices to mitigate these challenges.

Biggest Challenges for the Owner

In the context of civil works, owners face significant difficulties that can be categorized into four main areas:

1. Materials:

   • Delivery Delay or Incorrect Budget : Problems with the supply of materials or errors in cost forecasting can delay the schedule and inflate the budget.
   • Incorrect Investment : Misguided financial allocations can compromise the quality and continuity of the project.
   • Insufficient Storage Area : A lack of adequate space to store materials can lead to damage or loss, as well as hinder the logistics of the construction project.

2. Area:

   • Site Clearance : Obstacles to site clearance for the start of construction, due to regulatory or administrative issues, are frequent.
   • Subsurface and Surface Interferences : Geological surprises or unmapped obstacles can paralyze construction and generate unforeseen costs.
   • Interference with Third Parties : Interaction with other companies or adjacent projects may cause conflicts and delays.

3. Project:

   • Incomplete Engineering : Poorly developed projects, with incomplete engineering, compromise the execution of the work.
   • Incompatibility between Engineering Disciplines : Lack of coordination between different areas of engineering results in technical conflicts.
   • Exhausting Revisions : Continuous and lengthy revisions of engineering plans delay the progress of the works.

4. Price and Quantity:

   • Price Increases : Fluctuations in the materials market or changes in economic conditions can inflate the cost of construction.
   • Lack of Competitive Prices : The absence of competition or unfavorable agreements raises costs.
   • Insufficient Inputs : A shortage of essential resources can disrupt construction progress.

Level of Owner Proficiency in Contract Management Routines

Another crucial point is the owner's control over contract management routines. This control is determined by several factors, such as:

• Mobilization and Construction Site : Efficiency in initial mobilization and construction site management is fundamental.
• QHSE (Quality, Health, Safety and Environment) : Maintaining high standards in these areas is essential for the success of the project.
• Financial Resources : Effective management of financial resources ensures the sustainability of the project.
• Measuring Services : Accurate measurement of services performed prevents conflicts and subsequent contractual adjustments.
• Macro Planning and Conflict Management : Large-scale planning and the ability to resolve conflicts are essential to keeping the project on track.
• Strategic Foundations and Change Management : Well-defined strategies and the ability to manage change are key differentiators for successful contract management.

Owner Ethos: Collaboration is Key

The owner's ethos, that is, their collaborative or non-collaborative stance, can have a significant impact on the progress of the work. A moderately collaborative owner, as indicated in the graph, may face more challenges and obstacles than those who adopt a proactive and cooperative stance.

Best Practice: Including Indirect Costs in the Spreadsheet

A recommended practice for mitigating problems in civil works management is the inclusion of indirect costs in the planning spreadsheet. This approach has proven effective in preventing delays and unexpected financial burdens. Furthermore, contractors have adapted their operations to the imposed constraints, adjusting mobilizations to the available work volume.

Clarifying doubts during the bidding phase regarding the release of areas and projects significantly contributes to avoiding problems during the execution of the work.

Exact Analysis: Impact of Late Approval of Quantity Additives

Detailed analysis shows that delays in approving quantity addenda, necessary for contract adjustments, can cause deadline extensions and cash flow problems for contractors. Often, inspection teams do not focus on solving these problems, preferring to insist on full mobilizations and demanding acceleration plans, without negotiating appropriate deadlines.

This stance ultimately forces the contractor to adopt coercive measures, such as suspending overtime shifts and delaying payments to suppliers, which can further compromise the progress of the project.

Conclusion

Managing civil works in the steel and mining industries involves complex challenges, but with proper planning, mastery of contractual procedures, and a collaborative approach, it's possible to minimize risks and ensure project success. Implementing best practices and avoiding delays in the approval of quantity addenda are essential steps to keep the project on schedule and within budget.