10 industry-changes the coming decade must experience
The last decade has seen significant changes in the construction industry in India. Whilst there has been technological advancement in the construction works, some aspects of the industry still remain incompetent and ultimately impact the project outcomes in terms of the cost, time and quality. We, as Project Managers, are the first to experience the effects of such project in-competencies.
The last decade has seen significant changes in the construction industry in India. Whilst there has been technological advancement in the construction works, some aspects of the industry still remain incompetent and ultimately impact the project outcomes in terms of the cost, time and quality. We, as Project Managers, are the first to experience the effects of such project in-competencies.
Every
project is distinct in its own respect. However, we may note that there
are a few common issues with all of them. These issues if tackled in an
efficient and organized manner may reduce a lot of our grief. The
construction industries across the developed nations have a robust
system which safeguards its participants in all respects. And whilst the
Indian construction industry has not advanced to that stage, we remain
hopeful that we can catch-up with the developed nations in a decade’s
time.
Here are some of the key changes we would like to see in the industry:
1. Standard Contracts
Use
of standardized contact forms for engagement of consultants,
contractors and sub-contractors. The benefit of standardized contracts
is that they are not biased towards the Client / the contractor and give
fair terms of engagement to the parties involved. Indian Standards for
construction contracts should be established similar to the FIDIC,
Australian Standards, etc. Government agencies should make it mandatory
to utilize such standard contract for all government funded projects.
2. Payment Regulations
Non-payment
or late payment is a very common complaint in the construction
projects, which sometimes results in delays and disputes between the
parties involved. The government should formulate Regulations/Acts that
can formalize the payment cycles and provide respite and formal channels
of claiming the outstanding dues. Such cases should be handled by
independent, government accredited bodies to expedite such claims and
not follow the regular judiciary process which takes years to get a
hearing on the case.
One such example is the ‘Security of Payments Act’ followed in Australia.
3. Occupational Health & Safety (OH&S)
Whilst
the industry has seen a tremendous improvement on this front over the
last decade, there is a lot more to be achieved. OH&S not just
relates to wearing hard hats and safety vest but involves every aspect
in which an occupational hazard can be avoided. OH&S is both generic
and specific to the industry. The government should make it mandatory
for all construction industry personnel to undertake a general induction
on OH&S and issue certificates or license for the same. In addition
to this, site OH&S induction should be made mandatory for every
person entering the site.
4. Hazardous Waste Management
An
issue that is highly talked about, yet, the most ignored when it comes
to construction industry is Waste Management. In addition to air and
water pollution, there are other more toxic pollutants that affect the
environment and people exposed to it. One example is asbestos-health
effects of prolonged exposure to asbestos are known to cause cancer.
While asbestos is banned for use in European Union, Australia, Hong
Kong, Japan, and New Zealand, its use is still prevalent in India. The
government should make efforts to eliminate the use of asbestos in
construction and also regulate the disposal of asbestos in a safe
manner.
5. Formal training for construction trades
Tradesmen
in Indian construction industry often inherit the skills or learn by
experience working on sites, which is not always a bad way to learn.
However, the trade skills need to be recognized as vocational subjects
in universities and formal training on best practices should be provided
to the aspiring candidates. This will not only set standards to the
trade but also recognize the trades as respectable and skilled
professions. Skilled personnel on projects will reduce the amount of
defects considerably.
6. Construction quality benchmarks
Quality
often seems to be a variable factor with different contractors. It
would be beneficial to set some standard benchmarks for the class of
finishes. For example, concrete finish when used as a super-structure
and when used as exposed concrete will be different. However, a standard
guide which outlines the parameters of the different classes of
concrete will greatly assist the designers and contractors to specify
finishes.
7. Work Methods
India
has a huge reserve of inexpensive manual labour, which is largely used
in the construction industry. The use of machinery in construction, to
some extent has been directly influenced by the availability of cheap
labour in the country. While the last decade has seen some changes in
this perspective, there are more aspects that can be adopted in the work
methods. For example, use of plastering machines, use of stairform for
staircase construction, permanent form systems for cores, etc.
8. Municipal approvals process
One
of the most tentative/ uncertain events in the project schedule is the
municipal approvals, which obviously impacts the overall project
duration and ultimately cost. It would be ideal if the local
municipalities regulate the approval process with definite timelines and
provide transparency on the application status. Special approval
authorities should be established for major projects, thus minimizing
the work load on the regular approvals in municipalities.
9. Independent Certification
Once
the initial project approvals are received for the project, ongoing
approvals like the Commencement Certificates, Occupation Certificate,
etc. are dependent on the visit from the municipal officer to the site
and then the officer processing the necessary paperwork. This is a time
consuming process and most of the municipalities are understaffed to
undertake these visits.
In
most developed nations, the same function is undertaken by an
Independent Certifier, who is authorized by the municipal authorities
and appointed by the Client. The introduction of independent certifier
in the process reduces the already understaffed and overworked
municipalities and also makes the process of certification quicker for
the project team. This concept would greatly benefit in the Indian
context.
10. Understanding professional indemnity
It’s
a usual practice for service providers in the construction industry,
who provide professional advice, to cover themselves by the professional
indemnity insurance. Professional indemnity insurance covers the
service provider from bearing the full cost for defending negligence
claims made by the client.
Whilst
we all understand the intent and extent of our professional indemnity,
we as Project Managers, often find ourselves crossing boundaries.
Example – It is often found that Project Managers end up providing
sketches of architectural details at site. With all good intentions, it
is provided in order to avoid delays; however are we covered for it?
Does our professional indemnity insurance cover design services if we
are project managers? The answer is no, unless you are a
multi-disciplinary company. In case of a mishap resulting from the
professional advice of individual Project Manager, the company would be
liable for the negligence claims.
Industry
professionals and companies need to appreciate their professional
limits and instill these limits as corporate guidelines.
