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

Owner's Biggest Difficulties

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

1. Materials:

   • Late Delivery or Incorrect Budget : Problems in the supply of materials or errors in cost forecasting can delay the schedule and inflate the budget.
   • Incorrect Investment : Wrong financial allocations can compromise the quality and continuity of the project.
   • Insufficient Storage Area : The lack of adequate space to store materials can lead to damage or loss, in addition to complicating the logistics of the work.

2. Area:

   • Clearing the Construction Area : Obstacles in clearing the site to begin work, due to regulatory or administrative issues, are frequent.
   • Interferences in the Subsoil and Surface : Geological surprises or unmapped obstacles can paralyze construction and generate unforeseen costs.
   • Interferences with Third Parties : Interaction with other companies or adjacent projects can 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.
   • Strenuous Reviews : Continuous and time-consuming reviews of engineering plans delay the progress of works.

4. Price and Quantity:

   • Price Increases : Fluctuations in the materials market or changes in economic conditions can inflate the cost of the work.
   • Lack of Competitive Prices : Lack of competition or unfavorable agreements increases costs.
   • Insufficiency of Inputs : Shortages of essential resources can halt construction progress.

Owner's Degree of Mastery in Contract Management Routines

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

• Mobilization and Site : Efficiency in initial mobilization and construction site management is essential.
• QSMS (Quality, Safety, Environment and Health) : Maintaining high standards in these aspects is essential for the success of the project.
• Financial Resources : Effective management of financial resources guarantees the sustainability of the work.
• Measurement of Services : An accurate measurement of the services performed avoids 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 Fundamentals and Change Management : Well-defined strategies and the ability to manage changes are differentiators for successful contractual management.

Owner Ethos: Collaboration is Key

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

Good Practice: Inclusion of Indirects in the Spreadsheet

A recommended practice to mitigate problems in the management of civil works 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 restrictions imposed, adjusting mobilizations to the volume of works available.

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

Exact Analysis: Impact of Late Approval of Quantity Additives

The detailed analysis shows that delays in approving quantity amendments, necessary for adjustments to the contract, can cause deadline extensions and problems with the contractors' cash flow. Often, inspection teams do not focus on solving these problems, preferring to insist on complete mobilizations and the requirement for acceleration plans, without negotiating adequate deadlines.

This stance ends up forcing the contractor to adopt coercive measures, such as the suspension of extra shifts and delays in paying suppliers, which can further compromise the progress of the work.

Conclusion

The management of civil works in the steel and mining industry involves complex challenges, but with adequate planning, control over contractual routines and a collaborative approach, it is possible to minimize risks and ensure the success of the project. Implementing good practices and avoiding delays in approving quantity additions are essential steps to keep the work within the stipulated deadlines and budget.