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BOOK TITLE : IRREGULARITIES, FRAUDS AND THE NECESSITY OF TECHNICAL AUDITING IN CONSTRUCTION INDUSTRY

Published by Authorhouse.

TABLE OF CONTENTS

1. CONSTRUCTION IRREGULARITIES
1.2 OUT- SMARTING BY CONTRACTOR
1.3. OUT-SMARTING BY CONSULTANT/EMPLOYER
1.4. OUT-SMARTING BY CONSULTANT/CONTRACTOR
1.5. CHECK LIST

2. CONSTRUCTION FRAUDS

3. TECHNICAL AUDITING OF CONSTRUCTTION
3.1 INTRODUCTION
3.2 WHY TECHNICAL AUDITING IS REQUIRED
3.3 SCOPE OF TECHNICAL AUDITING
3.4 TECHNICAL AUDITING PROTOCOL
3.5 TECHNICAL AUDING PROTOCOL _ ANNEXURES
3.6 TYPICAL DUTIES OF A TECHNICAL AUDITOR
3.7 ROLES OF THE PROFESSIONAL INSTITUTIONS
3.7.1. MODEL COURSE FOR TECHNICAL AUDITORS
3.8 CONCLUSION

4. PROFILE OF THE AUTHOR

 

About the Book

The book deals with all aspects of the construction industry such as Irregularities,Frauds ,particularly the requirement of Technical Auditing, shall be of immense use for young Engineers, who may wish or decide to have interesting and rewarding careers as Quantity Surveyor/ Cost Engineer/Technical Auditor.

There is another professional reason to publish this book. The Author feels that there are openings for around One and Half million Technical Auditors per year by 2020 world wide, if the following reasonable assumptions are taken into consideration.

a) The construction out put to reach US $ 12 Trillion by 2020.
b) The majority of funds shall be by governments requiring mandatory Checks and
Balances.
c) The loss owing to irregularities,Frauds etc are estimated to be around 10%.If the
existing double auditing (Internal & External) by Accountants do not bring in 0.5%
savings on a regular basis ( 1/20 of the estimated),the system to be cancelled or
amended.
d) The Technical Auditing Industry shall be worth in excess of US $ One Trillion and
the total salaries of the Technical Auditors shall be US $ 50 – 100 Billion
e) All construction projects shall be subject to Technical Auditing by trained and
accredited Engineers.

The history of Technical Auditing companies has shown that the Client never loses in the event of Technical Auditing as the same bring Savings which is very much above than the amount spent.Therefore,the Savings generated by the Technical Auditors shall be more than their salaries,so, it is a win-win situation.

There is a necessity for the Professional Institutions, that are responsible for costing of the construction industry to give importance for the creation of suitable Technical Auditing Mechanism to mitigate waste and to provide unprecedented employment opportunities as Technical Auditors.


BOOK TITLE : : HOW TO WIN AND MANAGE CONSTRUCTION PROJECTS

Published by Authorhouse

TABLE OF CONTENTS

PREFACE 

1     INTRODUCTION
2.    TYPES AND CONDITIONS   OF CONTRACTS
3.    RISKS IN CONSTRUCTION
4.    ESTIMATION & TENDERING OF CONSTRUCTION PROJECTS 
5.    ADJUDICATION OF TENDER AND POST- TENDER NEGOTIATIONS  
6.    PLANNING, RECORD KEEPING, CORRECTIVE ACTIONS AND RECONCILLIATION 
7.    PRICING OF ADDITIONAL WORKS/VARIATIONS 
8.    CONSTRUCTION FRAUDS 
9.    CONSTRUCTION CLAIMS, PREPARATION AND NEGOTIATIONS 
10.  CONSTRUCTION DISPUTES, MECHANISMS FOR RESOLUTIONS
11.  CONCLUSION 
12   PROFILE OF THE AUTHOR 

 

About the book

The book explains in a nutshell the working of the Industry in a practical sense to a young Engineer,(who has already completed a course of study in an Engineering branch), be it the Conditions, Types, Risks, and ways and means of mitigating same, pricing both for tender and the finalisation of accounts, claims avoidance and pricing in the event of occurring ,the disputes and the Frauds etc. The book supplements what they have already studied and thus in a better position to secure/ handle their jobs.

There is another professional issue in publishing this book. I have to make explanation/substantiations for my statements regarding the two issues given below.

a) Once I made a presentation on the topic “Construction as an option to international Investors (the summarized version was published in Building Economics-AIQS Dec.2011) and I stated that in such cases the Quantity Surveyors can work as advisors to them and earn in excess of US $ 100,000/= a week,some Quantity Surveyors were sceptical or couldn’t comprehend and it became joke to them. My chapter on Tender Adjudication and Post- Tender negotiations answers this aspect.

b) I made another point that if someone could do Technical Auditing of a big project that would be enough for his entire life and quoted a Lawyer in Sri Lanka in the 1960’s who did only one case in his whole career. He earned so much that he never sited the Courts for the rest of his life. Again, some people were sceptical, couldn’t comprehend this. The case studies given under Construction Frauds shall give an indication regarding the possibilities of the amount of savings in Technical Auditing (if one is very smart enough) and going by the Industry standards (1/3 to Auditor & 2/3 to Client) shall clearly give an answer.


BOOK TITLE:   HOW TO BE SUCCESSFUL AT INTERVIEWS

Published by Notionpress,India

TABLE OF CONTENTS    

1. Brief notes about the Author
2. Preparation for the Interview
3. Facing Interviews
4. Position of Quantity Surveyor in a small or Medium size Organization
5. Tips for the preparation for Interviews Civil Engineers
6. Tips for good rules for negotiations for Quantity Surveyors and Civil Engineers
7. Tips for the preparation for Interviews for Accountants
8. Tips for the preparation for Interviews Sales and marketing positions
9. Tips for the preparation for Interviews for  Architects
10. Tips for the preparation of Receptionist/Document
11. Controller
Examples of successful interviews by the Author
Quantity Surveyor for Oman
Lecturer in Civil Engineering
Quantity Surveyor for Bahrain (Telephonic Interview)
Quantity Surveyor for Dubai
Interview to obtain Professional Membership
Commercial Manager for Dubai
12 . Profile of the Author

 

About the Book

I had faced many interviews for the position of Quantity Surveyor on and off for a period of over 20 years as I had the habit of working for a year in the Middle East and taking one year vacation,which required another interview for a job in a different company.
My interview experience is that, the subject matter is what interests the interviewer.The interviewer should be convinced that, this person has an edge over others,speaking what is required for the position(like a girl’s skirt-long enough to cover the subject & short enough to be attractive also) a new angle,another school of thought and should remember even after the interview.The best scenario is, the interviewer should learn something (professionally) from the person.I have been successful many times and continued my career the way I wanted.

In the good olden days,a University Degree carried lot of respect as one has to follow a 3 or 4 year full-time difficult course.Now Degrees are available on line, some just within one year with a production of few assignments,for which all required information are available in the internet.Further, such Degree awarding Institutions see to it that the same are recognized ,so at the end of the day all degrees are the same and hence these unlike old days do not produce jobs,but shall bring one to the interview.

The book is a production of my experience namely preparation,facing and six of my successful interviews,along with some tips for QSS.Definetly useful as interview is a norm now to get a job.

The best place  for this book would probably be Amazon as it’s global: http://www.amazon.com/How-To-Successful-Competitive-Interviews/dp/184903205X/ref=sr_1_1?ie=UTF8&qid=1362504569&sr=8-1&keywords=ameer+competitive

It will soon be available at Book World Dubai, and Kinokuniya. However, Barnes & Noble is equally as good for shipping to dubai: http://www.barnesandnoble.com/w/how-to-be-successful-at-competitive-interviews-alm-ameer/1114703440?ean=9781849032056


BOOK TITLE :     HANDBOOK FOR TECHNICAL AUDITORS OF THE CONSTRUCTION INDUSTRY

Publishe by Notionpress,India.

TABLE OF CONTENTS        

        
1    Introduction    
2    Construction Failures,During and After Completion    
    2.1. Disasters during construction    
    2.2. Disasters after completion    
    2.2.1    Hotel New World,Singapore Collapse
    2.2.2    Silver Bridge Collapse –United States of America
    2.2.3    Hyatt Regency Walkway Collapse
    2.2.4    Sampoong Department Atore Collapse-South Korea
    2.2.5    Bridge in Sichuan Province,China
    2.2.6    Roof Collapse of Sultan Mizan Zainal Abidin
        Stadium,Malaysia
    2.2.7    Berkeley Apartment Balcony collapse in California
3    Players, and Working of the Construction Industry    
    3.1. Construction Industry in General    
    3.2    Types of Contracts
    3.3    Contract Documentation
    3.4    Problematic areas in construction
4    Project Flow Chart    
5    General Criteria for Technical Auditors and Auditing    
    5.1    General Criteria for Technical Auditors
    5.2. General Auditing Procedures    
5.2.1        Planning
5.2.2        Performance
5.2.3        Evaluation
5.2.4        Documentation
5.2.5        Corrective Action
5.2.1        Planning
5.2.2        Performance
    5.2.3    Evaluation
    5.2.4    Documentation
    5.2.5.    Corrective Action
    5.2.6    Closeout
        
    5.3   International Auditing Practices    
6    Check List for Pre–Contract    
7    Auditors’ Report Regarding Pre-Contract    
8    Basic Technical Auditing Standards for Re-Measure Projects    
    8.1    General
    8.2    Main Reasons for contractor’s failures
    8.3.    Basic Technical Auditing Standards
    8.3.1.    General Requirements
    8.3 2.    Site Works
    8.3.3.    Concrete Works
    8.3.4.    Masonry
    8.3.5.    Metal Works
    8.3.6.    Woodworks
    8.3.7.    Thermal and Moisture Protection
    8.3.8.    Doors and Windows
    8.3.9.    Finishes
    8.3.10.    Mechanical Engineering Installations
    8.3.11.    Electrical Engineering Installations
    8.3.12.    Equipment
    8.3.13    Roofing
    8.3.14.    External Works
    8.3.15.    Provisional Sums
    8.3.16    Day works
    8.3.17.    Contractor Payments
    8.3.18.    Variations, Additional Works, Change Order
    8.3.19.    Hard landscaping
    8.3.20.    Soft Landscaping
    8.3.21.    Irrigation Systems
        
8.3.22.              Guarantees, Warrantees etc.                                           117        
        
Submission of Operation Manuals, spare parts,        
        
        Possibilities of equipment becoming obsolete or
        requiring major overhauls
    8.3.24.    Accessories
    8.3.25.    Furnishing
    8.3.26    Special construction
    8.3.27    Conveying systems
    8.3.28.    Extension of Time & Associated Costs
9    Check List for Post – Contract    
10    Auditor’s    Report Regarding Post- Contract
        
11. Final Auditors Report Including Lessons Learned         
        
    Future Improvements, if Any    
12    Proposed Global Construction Standards    
    12.1     Award of projects to Contractors and Consultants    
    12.2    Possibility of claiming damages from the Engineer for
        Professional negligence.
    12.3.    Payments for Consultants
        12.3.1   Ceiling on the Consultants amount
        12.3.2  Consultant fees for supervision
        12.3.3 Consultants passing on their responsibility to the Contractor
        12.3.4  Payments for Provisional   Sums
        12.3.5   Rates for repetitive work to be fixed
        12.3.6   Consultants should not be allowed to receive sale proceeds of tender documentation
        12.3.7   Consultant payment for non constructed project Consultant Payment Procedure
        12.3.8
    12.4.   Real time Technical Audit    
    12.5.  Specialized Sub Contractors Civil Works    
    12.6. Status of missing items    
        
Notice regarding slow down or stop work for Non-payment by the Client        
        
12.8    Contract discounts    
12.9    Use of Pro Rata    
12.1    Pricing of additional works    
12.11    Underground soil and other conditions    
12.12    Escalation Clauses in Contracts    
12.13    Rate Only Items in the Bill of Quantities    
12.14    Payment arrangement in the event Asphalt/concrete    
    Thickness is more than the tolerance limits    
12.15    Itemization of work in Maintenance contracts    
12.16    Deletion in a Lump Sum Fixed Price Contract    
12.17    Earthworks    
12.18    Programme of Work by Contractor    
12.19    Extension of Time    
12.2    Advance Payment    
12.21    Application of Penalties for delay by the Contractor.    
12.22    Stipulation of a particular Brand    
12.23    Maximum Penalty for delay by the Contractor    
12.24    Contractor was allowed to continue without key    
    Consultant supervision staff    
12.25   Insurance Guarantee instead of Performance Guarantee        
    by the Contractor    
12.26    Use the following mathematical formula with the only    
    Variable (purchase price) for changes in PC Rate    
12.27    Use of Day works    
12.28    Possibility of Bonus system for early completion by    
    the Contractor.    
12.29    Alternate Dispute Resolutions    
12.3    Payment arrangements to Domestic sub- Contractors    
    in relation to Interim payments for the main Contractor    
12.31    Use of Novation in sub- Contract agreement    
12.32    Decennial Liability in Construction Contract    
12.33    Ghost Cities and how to avoid same    
    12.33.1    Old Ghost Cities
    12.33.2    Modern Ghost Cities
        
12.34           Mega projects    
        
Single Source of Approval for Government        
        
    Construction projects    
12.36    Materials at site for the purpose of Interim payment    166
12.37    Interim Payments to Contractors    167
12.38    Use of PC Rates in Contracts    168
        
Data Base and use of same in the preparation of        
        
    Budget estimates    
12.4    Bank Guarantee for the second part of Retention    
12.41    Double payments for one item of work in Contract    
12.42    Tender Bonds in Contracts    
12.43    Risk Analysis for projects    
    12.43.1    Pre- Contract
    12.43.2    Post- Contract
12.44    Post-Tender negotiations in Contracts    
12.45    Steel calculation for projects    
12.46    “As Built Drawings” in Contracts    
12.47    Heavy wastage on foundations on constructions    
12.48    Maximum limit of volume of steel in concrete    
12.49    Design & Build Contract for Major projects    
12.5    Ex gracia in construction projects    
        
Effective Contract Price and procedure for        
        
    Overhead adjustment in the event of variation    
12.52    Preparation of Tender Document for Government project    
12.53    Preparation of ideal Contract document    
12.54    First Instance Court for Construction Claims    
        
Tenderers entitlement in the event of Cancellation of        
        
    Projects during the tender period or after submission of offers    
12.56    Adjustment for Bituminous content in Asphalt works    
12.57    Use of Construction Norms in Cost Plus Contracts    
12.58    What constitutes a Notice by the Contractor?    
12.59    Interim Payment arrangement for Time –Related Charges    
12.6    Insurance to be taken by the Employer for the Project    
12.61    Time bar Clauses in the Conditions of Contract    
12.62    Check list for Professional Transfers in the Construction Industry197    
    12.63    Front loading in competitive Tenders
    12.64    Ownership of Float in the Contractors’ Programmes
    12.65    Unnecessary work by Contract specialists
    12.66    Building Permits,licences for construction projects
    12.67    Close out of Construction Projects
    12.68    Precedence from construction failures
13    Conclusion    
14    Profile of the Author.    
About the book      

Construction auditing on government funded constructions is a requirement for mandatory check & balance of the expenditure of public funds, have been going on for a long time, may be a century. This auditing exercise is traditionally carried out by Financial Accountants. The governments world over started investing heavily on the infrastructure constructions in the 80’s and the print and visual media started highlighting massive corruptions in government funded constructions and were quite correctly seeking answers to for these wastages of public funds. To address such concerns, the Financial Auditing Institutions created a new system for construction known as Performance auditing. Although this concept of Performance auditing looked good on paper with good selected terminology, it has failed to deliver the results owing to the non-availability of proper technical skills on the part of the auditors and the absence of suitable measurements. This is allowed to continue for decades till to date. This can be considered as a historical mistake in the history of auditing. This raises a fundamental question, as to why the auditing on govt. construction failed as evidenced by the fact of world record loss on a regular basis on construction owing to frauds. So much so, that according to Transparency International the loss on Government construction has reached upwards of US $ 4 Trillion per year. That is US $ 7.61 million per minute now, with possibility of increase further in the future as global construction shall increase and there is no tangible system to correct this mess.

The facts are very clear even to an ordinary man on the street, let alone a professional. The government construction auditing or the Performance auditing as it is known now to be a Technical auditing and the same to be done by trained construction professionals with suitable technical auditing standards. There should be a union for such auditors for the profession to evolve to reach its intended purpose.

This is the ideal time as there is a general global willingness to punish corrupt officers as evidenced by tough govt. legislations followed by high profile cases in the United States, United Kingdom, Canada, China and others. The same is highlighted in the recent Position Paper (Volume 1, Issue 7-April 2015) by the Global Organisation of Parliamentarians Against Corruption (GOPAC).

This book shall serve as the beginning in that long process.

This book shall also serve as a reference book for all construction professionals both practicing and students pursuing construction related studies in the universities as it gives an insight of the working of construction industry and thereby creating an awareness regarding this record construction losses, thus contributing to bring a correction mechanism in the near future.