RISKS ASSOCIATED TO BE COVERED
Performance Risk, This is is mitigated and
managed through Daily progrees report and
weekely progress report and with complete
planning and monitoring Model.Contractors are
Providing Moblization Advance, this is covered asked and pushed on daily bases for the
under the Insurance bond or insurance gurantee performance and schedule planned variations.This
for 100% amount provided. is planned on Oracle Primavera P6 and Dash
Board Reporting.If any Contractor Failed to
complete in given timeframe a penality is imposed
as well as remaining part of the work can be
awarded to some else.
• A performance bond is a type of guarantee issued by a
surety company on behalf of a contractor. It ensures
that the contractor will complete a construction
project according to the contract terms. But what
SO, WHAT IS A happens if the contractor fails to deliver? The surety
PERFORMANCE company steps in and covers the cost of completing
BOND? the project or hiring a replacement contractor.
• These bonds are usually used for large construction or
government projects that might take a long time to
complete.
• It Excalate cost of the project upto 6-10% as Contractor must
pay premium for Performance Bond to Gurantee company.
• The application and underwriting process can be lengthy and it
effects the project start date usually.Banks and Insurance
companies have some time frame to issue a Performance Bond.
PROS AND • Financial Strain, Most of the Contractors will face difficulties in
CONS OF obtaining the performance bond irrespective of Extra Cost
payment, As Guranter needs some Collatral (In Case of Bank) or
PERFORMANCE Previous Out come results (In case of insurance)
GURANTEE • Designing and implementing these contracts can be difficult and
costly, as the parties need to agree on the definition,
measurement, and verification of the outcomes or results, as
well as the payment terms and conditions.
• Explaining the Default to Issuer.
Our projects are based on some material delivery from Client end
and providing of the Drawings on time.Once Default is made the
issuer will dig out the reason before setteling the payment.
EXPLAINING THE
DEFAULT TO Sometimes The material delivery from Our end can be late due to
any Govt issues, Strikes etc , in this case there will be default at the
end of client that issuer will consider.
ISSUER.
Change of Drawing during project will effect the terms of the
Gurantee/Bond and this will alter the scope of the project,Also there
are some extra works to be done not covered in the scope(Non
Schedule items), in such case explaining of the default to issuer will be
difficult and final decision will be taken by the arbitrator that is time
consuming.
HOW SAPPHIRE TEXTILE IS MITIGATING THE RISK BY SAVING
EXTRA COST AND EXTRA TIME OF THIS PRACTISE.
We are preparing a comprehensive plans that provides
the daily bases progress to the management and any
delays in daily perfomance is sricktly monitored and
controlled/covered in next few days.
A weekly reporting and dashboard reporting is
made to cover the performace laps.
Since our moblization advance is covered under
the bank/insurance gurantee, we can at any time
if seems there is expected default in the project
can terminate the contract that we mention in
the Contract and same can be awarded to any
contractor immediately.
Pre-Qualification of the Contractor for Every
Project.
CLAIMING A PERFORMANCE BOND
• Notice of Default
• The project owner must formally notify the surety of the contractor’s default, providing evidence
of the breach of contract.
• Investigation and Resolution
• The surety investigates the claim to determine its validity and then decides on the course of
action, which may involve financial compensation or arranging for project completion.
• Completion of the Project
• If the surety opts to complete the project, it may engage a new contractor to fulfill the remaining
contractual obligations.
PREQUALIFICATION OF CONTRACTORS
• Pre-qualification is an assessment made by the
STM, of the appropriate level of experience and
capacity of firms expressing interest in
undertaking a particular contract, before inviting
them to bid.
• GENERAL EXPERINCE
• PERSONAL CAPABILITIES
• EQUIPMENT
CONTRACTOR QUALIFICATION
• Contractors must undergo a rigorous prequalification process, where the surety
assesses their financial stability, experience, and past performance.
HOW THE SCHEDULE IS MONITORED.
SYSTEMATIC CONSTRUCTION SOLUTIONS
OFFICE RENOVATION WORK
Current Date 11-Oct-24
Planned Phase % Completes Phase
Planned Expected No of
Activity Planned Start Planned Finish UOM Labour Unit Total Manhour Planned % Actual % Variance Status
Duration Labour
Summary of Project 25-Aug-24 03-Dec-24 100 2,960.00 41.49% 54.32% 12.84% Ahead of Schedule
Finishes 15-Nov-24 03-Dec-24 18 376.00 0.00% 0.00% 0.00% On Schedule
Public Health 01-Oct-24 19-Nov-24 49 384.00 4.86% 4.00% -0.86% Behind Schedule
Electric Work 01-Nov-24 15-Nov-24 14 448.00 0.00% 3.51% 3.51% Ahead of Schedule
Civil Renovation work 12-Oct-24 20-Nov-24 39 328.00 0.00% 1.73% 1.73% Ahead of Schedule
Civil New Construction Work 25-Aug-24 20-Nov-24 87 1,424.00 36.62% 45.08% 8.46% Ahead of Schedule
Dismantling 25-Aug-24 02-Sep-24 9 L/S 6.00 8.00 48.00 100% 100% 0.00% Behind Schedule
Excavation 31-Aug-24 4-Sep-24 5 Cft 10.00 8.00 80.00 100% 100% 0.00% Behind Schedule
Termiite Prrofing 3-Sep-24 5-Sep-24 3 Sft 10.00 8.00 80.00 100% 100% 0.00% Behind Schedule
PCC 6-Sep-24 8-Sep-24 3 Cft 12.00 8.00 96.00 100% 100% 0.00% Behind Schedule
Brick work New Portion 9-Sep-24 22-Sep-24 14 Cft 14.00 8.00 112.00 100% 100% 0.00% Behind Schedule
Internal Brick work 7-Sep-24 17-Sep-24 11 Sft 10.00 8.00 80.00 100% 100% 0.00% Behind Schedule
Back Filling 13-Sep-24 17-Sep-24 5 Cft 10.00 8.00 80.00 100% 100% 0.00% Behind Schedule
Form Work Slab 23-Sep-24 28-Sep-24 6 Cft 14.00 8.00 112.00 100% 100% 0.00% Behind Schedule
Steel Fixing Slab 29-Sep-24 2-Oct-24 4 Kg 14.00 8.00 112.00 100% 100% 0.00% Behind Schedule
Poring Slab 3-Oct-24 5-Oct-24 3 Cft 14.00 8.00 112.00 100% 100% 0.00% Behind Schedule
AC Conduting 5-Oct-24 10-Oct-24 6 RFT 20.00 8.00 160.00 100% 100% 0.00% Behind Schedule
Plaster 10-Oct-24 17-Oct-24 8 Sft 12.00 8.00 96.00 12.50% 100% 87.50% Ahead of Schedule
PCC 18-Oct-24 22-Oct-24 5 Sft 8.00 8.00 64.00 0% 100% 100.00% Behind Schedule
Flooring 23-Oct-24 27-Oct-24 5 Sft 8.00 8.00 64.00 0% 100% 100.00% Behind Schedule
Water Proofing 22-Oct-24 27-Oct-24 6 Sft 8.00 8.00 64.00 0% 0% 0.00% Behind Schedule
Gutka Fixing 5-Nov-24 20-Nov-24 16 Sft 8.00 8.00 64.00 0% 60% 60.00% Behind Schedule
Civil Renovation work
Ceiling work 12-Oct-24 20-Oct-24 9 Sft 7.00 8.00 56.00 0% 0% 0.00% Behind Schedule
Tile Work 12-Oct-24 25-Oct-24 14 Sft 10.00 8.00 80.00 0% 40% 40.00% Behind Schedule
Paint work 15-Oct-24 30-Oct-24 16 Sft 12.00 8.00 96.00 0% 20% 20.00% Behind Schedule
Door & Wndows Fixing 5-Nov-24 10-Nov-24 6 Sft 6.00 8.00 48.00 0% 0% 0.00% Behind Schedule
Marble Sheet 10-Nov-24 20-Nov-24 11 Sft 6.00 8.00 48.00 0% 0% 0.00% Behind Schedule
Electric Work
Distribution Board 01-Nov-24 15-Nov-24 15 Nos 6.00 8.00 48.00 0% 100% 100.00% Behind Schedule
Wiring & Cables Fittings 01-Nov-24 15-Nov-24 15 Nos 10.00 8.00 80.00 0% 70% 70.00% Behind Schedule
Light Fittings 01-Nov-24 15-Nov-24 15 Nos 10.00 8.00 80.00 0% 0% 0.00% Behind Schedule
Telephone system 01-Nov-24 15-Nov-24 15 Nos 10.00 8.00 80.00 0% 0% 0.00% Behind Schedule
Computer wiring 01-Nov-24 15-Nov-24 15 Nos 10.00 8.00 80.00 0% 0% 0.00% Behind Schedule
Fire Alarm System 01-Nov-24 15-Nov-24 15 Nos 10.00 8.00 80.00 0% 0% 0.00% Behind Schedule
Public Health
Swerage work 01-Oct-24 08-Oct-24 8 Nos 8.00 8.00 64.00 100% 60% -40.00% Behind Schedule
