< Previous58 MASTER BUILDERS JOURNAL #118 Feature BY JAMES LIM I n today’s construction design, the base slab or the raft foundation of a building is often designed with waterproofing admixture with the intention to waterproof the base slab against ingress of ground water. The use of waterproofing admixture is seemingly a trend now as structural engineers prefer admixture over the traditional membrane system. In order for it to work, the concrete has to be perfectly placed, vibrated properly so that a honeycomb and crack-free concrete is produced at the end of day. However, the reality often gives a different outlook of this concept of admixture waterproofing system because it fails to address the natural occurrence of cracks in concrete structures. Whether it is based on pore blocking or formation of crystals that are only visible under the microscope, the truth is that the journey down this path is not so smooth sailing after all when cracks start to develop. All the so-called self-heal mechanism of the admixture in the concrete will quickly evolve into a discussion of crack mapping and repair methodology, not to mention who will be bearing the cost of the cracks repair. When cracks start to develop, coupled with high water table of our ground condition, it does not take long for us to realise that the basement slab will soon become wet. Water ingress from the ground is almost inevitable in this scenario and there is only one way out from here. The objective has become clear that the project manager of the job site is now looking at the best way to seal those cracks so that the leaking cracks will not leak again. This might sound like a daunting task for a project manager, as now he has to look for money to perform this task. Main contractors will probably agree that injection grouting is the way to solve these problems relating to water ingress at the basement slab. Structural engineers prefer the cracks to be sealed with epoxy resin as it gives strength and good bond but majority of the epoxy resin in the market caters for dry crack condition. Epoxy resin is good for dry cracks normally found in intermediate floor slab. In the case of a base slab, epoxy resin will not be effective to seal against ingress of water from the ground. So a polyurethane (PU) based injection resin is preferred. Having said that, the majority of the polyurethane resin in our market consists mostly of the foaming type of PU resin (1K) and this normally comes in a single-pack water reacting resin. Water acts as the catalyst to start the reaction when the PU resin is injected into the wet cracks, creating a foam that is filled with air bubbles. The foaming PU resin is normally formulated with a foaming factor between 20 to 40x. The higher the foaming factor, the lighter the foam, as there are more air bubbles within the foam structure. As it is a foam, it does not come with strength and the foam can easily break or shrink over time. The German injection methodology treats this type of injection with the PU foam as a temporary seal. So if you were to get a recurring leak after the injection, the PU foam has either shrunk or failed to resist the water pressure, thus allowing water to escape through the cracks again. If someone says that PU does not work, that basically means he has had bad experience with foaming PU resin. What’s next if you have lost faith in PU injection? It is perhaps time to look at dual component PU technology. The formulation of a two-component (2K) PU resin allow the mixed resin to achieve a compressive strength of up to 80MPa which was previously not possible with 1K PU. A 2K PU resin will set after mixing the two separate components together without the presence of water. This is an important criteria of a good resin as not all parts of the wet cracks are wet and the PU resin will still set inside the crack if it finds a dry patch. The PU resin in the dry section will set just like an epoxy resin, giving it good bond and compressive strength. Unlike foaming PU, the resin will not set in locations without the presence of water because water is required to catalyse the PU resin to start the foam reaction. There are really no real advantages of using foaming PU resin to seal any wet cracks once you understand the chemistry of a foaming resin. The only reason why foaming resin is widely used is due to the cost factor, as the resin is much cheaper compared to a 2K resin. But does it really save money for the project manager? The project manager shall look at the overall cost of the injection repair when it comes to wet crack repair rather than ask for a per point injection rate from the specialist contractor. Allowing your applicator to quote you based on a per point basis type of injection contract is like signing on a blank cheque and allowing your applicator to fill in the amount. Can you imagine the damages this concept can do to your project’s bottom line? In conclusion, concrete admixture alone is insufficient to prevent water ingress as a result of crack formation. Perhaps then, it is time to switch to a two- component injection resin system for a permanent fix. James Lim, director of CRT Specialist (M) Sdn Bhd has vast experience and technical expertise in the repair of wet cracks and sealing of pressure relief valve at basement structures. He is involved in many key concrete repair and waterproofing projects in Malaysia. Wet crack repair is becoming an integral part of concrete design to manage cracks that are prone to water seepage, especially in the lowest basement slab where water pressure is high. Wet Crack Injections in Basement Slabs ExplainedFeature BY CRYSTAL WONG WAI CHIN & SOH ZHEN NING T he novel coronavirus outbreak in China has rattled international trade and caused severe disruptions to the global supply chains. On 30 January 2020, the World Health Organisation declared that the epidemic constituted a public health emergency of international concern. 1 During this critical period, companies may face various difficulties in fulfilling their existing contractual obligations, due to disruptions caused by the suspension of business operations and trade restrictions across the world. Force majeure clauses, which are often (and mistakenly) overlooked as ‘standard boilerplate’ in commercial contracts, are likely to be brought into sharp focus over the coming weeks and months. Recently, we have been engaged in several important discussions with clients on the pressing question of whether the coronavirus epidemic falls within the operation of a force majeure clause so as to delay or absolve their liabilities. The scope of force majeure provisions in common law jurisdictions, including Malaysia, is dependent on the exact words of the clause, unlike civil law jurisdictions where force majeure is usually afforded a specific legal meaning by the civil code. 2 Accordingly, whether delays or disruptions from the coronavirus epidemic are specifically covered as a force majeure event turns on the interpretation of the relevant wording in the contract. Terms such as ‘epidemic’, ‘outbreak of diseases’ and ‘quarantine’ spelt out in contracts would likely constitute a force majeure event. The same may be said for ‘Acts of God’, ‘Acts of Government’ or by general wording such as ‘other circumstance beyond the parties’ control’. However, even if the novel coronavirus constitutes a force majeure event, other considerations must be taken into account: Foreseeability: Events which could have been reasonably provided against, avoided or overcome will be excluded. In light of the recent outbreaks of various strains of flu, such as the 2003 SARS outbreak, it may be argued that the coronavirus epidemic was not an unforeseeable event. However, the scale of cities being locked down, with the consequent severe disruption to global supply chains, restriction in the free movement of personnel and shortage of labour, is unprecedented. Courts may therefore accept that the current coronavirus outbreak differs from earlier epidemics and does not constitute a foreseeable contingency, where no reasonable steps could have been taken to avoid its occurrence. As reported in the New York Times on 4 February 2020, the coronavirus is ‘isolating a major urban transit hub larger than New York City’. 3 Causal link and impact: The event must have prevented or hindered parties from performing the contract. In addition, it must be the only effective cause of default by a party seeking to rely on the force majeure provision. If there are other competing causes hindering the performance of the contract, the defaulting party may not be able to rely on the force majeure provision. Mitigation: Defaulting parties are usually under a duty to show it has taken reasonable steps to prevent, or at least mitigate, the effects of the coronavirus epidemic. Notice requirements: Parties seeking relief for force majeure should endeavour to comply with the prescribed notice requirements or process under the provisions of the contract. Failure to do so may result in the affected party not being able to rely on the force majeure provision. Consequences: The consequences of invoking the force majeure clause depend on what is provided in the contract. At the very least, the clause should hold all parties safe from liability for non- performance. Common types of relief would include: (i) termination of contract; (ii) suspension of contractual obligations; (iii) exclusion of liability for late or non- performance; (iv) extension of time for performance; and (v) renegotiation of contractual terms. As disruptions continue and the epidemic’s impact remains uncertain, companies would well be advised to review applicable force majeure provisions under their contracts so as to ascertain whether the repercussions of the outbreak may constitute a force majeure event together with any notice requirements in the clause. References 1 World Health Organisation, ‘Statement on the second meeting of the International Health Regulations (2005) Emergency Committee regarding the outbreak of novel coronavirus (2019-nCoV)’ < https://www.who.int/ news-room/detail/30-01-2020-statement- on-the-second-meeting-of-the-international- health-regulations-(2005)-emergency- committee-regarding-the-outbreak-of- novel-coronavirus-(2019-ncov)> accessed 11 February 2020. 2 See French Civil Code, Articles 1218 and 1351; UAE Civil Code, Article 273. 3 Michael Levenson, ‘Scale of China’s Wuhan Shutdown Is Believed To Be Without Precedent’ New York Times (22 January 2020) < https:// www.nytimes.com/2020/01/22/world/ asia/coronavirus-quarantines-history.html> accessed 11 February 2020. This article is reproduced from LHAG Update (11 February 2020) with the kind permission of Lee Hishammuddin Allen & Gledhill, Advocates & Solicitors, Kuala Lumpur, Malaysia. The Coronavirus Epidemic: Does it Count as Force Majeure? This article discusses force majeure clauses in contracts governed by Malaysian law. Crystal Wong Wai Chin and Soh Zhen Ning is a Partner and Pupil- in-Chambers respectively at Lee Hishammuddin Allen & Gledhill – Energy, Infrastructure & Projects and International Arbitration Practice. 60 MASTER BUILDERS JOURNAL #118Feature COVID-19 Practical Tips to Managing Construction Contract Risks 1 2 3 4 5 1 Review Contract Terms Identify impacts on: • Key access dates • Scheduled commercial operations date • Completion date Identify potential delays due to: • decrease in access to labour and construction materials • late delivery of machineries and equipment • testing and commissioning of plant • ability to comply with performance guarantee 2 Respect Notice Requirement and Time Limit • Submit contemporaneous notice of the occurrence of force majeure with particular consequences of the event • Project team to arrange for re-computation of project timelines and milestones • Specific attention would have to be paid to the calculation of “Business Days” and “Working Days” 3 Execute Mitigation Efforts To consider: • whether an alternative contractor or supplier can be engaged • whether sub-contractors can perform works which main contractor is unable to perform • the impact on availability of migrant labour Parties should also review existing insurance policies. 4 Ensure Proper Record Keeping Record keeping methods may include: • Periodic reports on progress of force majeure event and any changes in ability to perform • Submission of plans to address consequences of event Records are essential to: • Enable review of any delay analysis • Support the adequacy of mitigation actions/measures • Substantiate additional works carried out, e.g. additional sanitisation 5 Comply with Local Laws • Employers must ensure safe place and system of work • Ensure all medical and travel advice are followed • Reasonable precautionary measures are taken • Look out for directives and sector specific regulations issued by government agencies • NB. Any failure to comply may result in liability and penalties on the employer/owner For any queries, please contact partners Dato’ Nitin Nadkarni (nn@lh-ag.com) and Crystal Wong Wai Chin (wwc@lh-ag.com) 61 MASTER BUILDERS JOURNAL #11862 MASTER BUILDERS JOURNAL #118 Feature BY HT ONG D elays are common in construction projects and often result in claims and disputes between the contracting parties, be it between the employer and contractor at main contract level or contractor and sub-contractor at sub- contract level. These delays may stem from defaults by a contracting party and/ or its representative or from events which are beyond their control and thus, may cause a time overrun on the project completion date. If the delays are those which the defaulting party is liable for or non-excusable delays, then damages may be imposed by the innocent party. On the contrary, if the delays are excusable ones, then any claim for extension of time, including compensation, if any, will require an assessment to determine its entitlement under the contract between the contracting parties. Any proper and detailed extension of time claim and its assessment will invariably necessitate delay analysis, which is an investigative and analytical approach to establish the delay cause/s and assess their effect/s using the appropriate Delay Analysis method. There are many such methods available, but the widely used and common ones can be narrowed down to six delay analysis methods (SCL Delay and Disruption Protocol, 2017). In this article, BK Entrusty aims to provide a brief understanding of the delay analysis approach and its criteria and methods commonly adopted in the construction industry with the following article contents: 1. Introduction 2. What is Delay Analysis? 3. Delay Analysis Methods 4. Advantages and Disadvantages of Delay Analysis Methods 5. Delay Analysis – Which Method Preferred? 6. Conclusion What is Delay Analysis? Delay Analysis is an investigative and analytical approach to establish the delay cause/s and assess their effect/s, usually through reviewing contemporaneous project documents such as works programme, records, minutes, etc. and analysing them using the appropriate delay analysis method. Where necessary, the relevant project team members may be involved in assisting the investigation, data collection and analysis. As delay analysis can be a complicated and time-consuming process, a delay analyst/expert is usually engaged to undertake the aforesaid tasks. He/she is usually equipped with extensive knowledge and experience in construction projects, in particular project scheduling/programming and work sequencing, to undertake the investigation and analytical task using the appropriate method/s, usually with the aid of related scheduling software. Delay Analysis Methods Depending on the contracting party/ ies, a delay analyst engagement may be either to justify the extension of time claim or to assess its entitlement, accordingly. SCL (2017) recommends that the contracting parties should attempt as far as possible to deal with the delay events as the construction works proceed rather than taking a ‘wait and see’ stand. However, most delay claims and assessments are often with multiple delay activities or events, making the analysis rather complex and time consuming, even with the aid of computerised programming software like Microsoft Projects or Primavera. For further reading and explanation on planning and programming, kindly refer to BK Entrusty’s two published articles, namely The Need for Planning and Programming In Construction, published in Master Builders Journal 2012 (2nd Quarter) and The Proper Preparation and Use of Works Programme in Construction, published in Master Journal 2012 (3rd Quarter). Unfortunately, the reality is that delay claims are often not properly assessed contemporaneously and/ or progressively, or fairly and reasonably during the project duration. Consequently, delay disputes are prevalent after project completion or sometimes even result in a termination of contract. In such an unfortunate situation, a delay expert is often engaged to undertake comprehensive forensic delay analysis for the disputing parties in the dispute resolution proceedings. The six delay analysis methods commonly used in the construction industry (SCL Delay and Disruption Protocol, 2017) are briefly described as follows: A) Impacted As-Planned Analysis SCL (2017) states that this method involves introducing delay event sub-network into a logic-linked base- line programme and its recalculation using CPM programming software in order to determine the prospective Part One article on ‘Delay Analysis – Which Method Preferred?’ from a series of construction contract and management articles on areas related to project, commercial, contracts, risks, quality, value and the like. Construction Contract & Management Issues63 MASTER BUILDERS JOURNAL #118 Feature impact these events have on the predicted contract completion dates shown within baseline programme. In short, this method forecasts the delay effect on contract completion date by inserting delay activities or events into the baseline pro- gramme to determine the impact of those delays. This method is suitable when there is insufficient as-built progress information in order to understand what actually happened and the delay events are relatively straightforward, occurring at or near the construction project commencement. Whilst this is a simple inexpensive method which can be used in extension of time assessment, it does not consider actual progress and its impact. Hence there is a need to ensure that the baseline programme activities and sequences are realistic and logical. B) Time Impact Analysis SCL (2017) states that this method involves introducing delay event sub-network into a logic-linked baseline programme and recalculation of this updated programme using CPM programming software in order to determine the prospective impact the delay event would have on the then predicted completion dates. In short, the impact of delay activities is determined by inserting the delay event into an updated schedule, which represents the progress up to the point when the delay event occurred. This method of delay analysis is similar to the Impacted As- Planned method, as delays are being impacted on the baseline programme. However, instead of using the baseline programme, it requires updating or use of a revised programme to the point before the delay events occur so as to be able to make a contemporaneous assessment for extension of time. But it does not deal with what happens with subsequent delays for the remainder of the project. Further, the projected delay impact may be distorted by any changes such as mitigation/acceleration incorporated into the revised programme. C) Time Slice Window Analysis SCL (2017) states that this method involves the progress of the works is divided into time slices... slices are typically carried out at monthly interval. The series of time slice programmes reveals the contemporaneous or actual critical path in each time slice period as the works progressed and the critical delay status at the end of each time slice, thus allowing the analyst to conclude the extent of actual critical delay incurred with each window. Thereafter, the analyst investigates the project records to determine what events might have caused the identified critical delay in each time slice period. This method is a ‘window’ analysis method, based on updated baseline or revised programmes showing actual work progress at various defined intervals or time slices, typically monthly, using scheduling software, thus making it a reliable analysis with comprehensive planning and delay information. This method is consistent with the effect and FIGURE 1 Impacted As-Planned Method As-planned programme Delay events recorded Impacted delay events on as-planned programme FIGURE 2 Time Impact Analysis Method Original programme Updated programme showing remaining works schedule Recorded delay event Impacted delay event on updated programme64 MASTER BUILDERS JOURNAL #118 Feature cause approach and enables the determination of contemporaneous actual critical path and the effect of a delay event within each window, retrospectively. FIGURE 3 Time Slice Window Analysis Method Updated programme at start of window Updated programme at end of window Delay cause identified via programme and justified by available records StartEnd FIGURE 4 As-Planned vs As-Built Windows Analysis Method Window AWindow B As-planned programme Comparing planned and actual programme to identify the delays Recorded as-built information D) As Planned vs. As-Built Windows Analysis SCL (2017) states that this method re- quires the duration of works is broken down into windows… framed by revised contemporaneous programmes, con- temporaneously updated programmes, milestones or significant events. The an- alyst determines the contemporaneous or actual critical path in each window by a common-sense and practical anal- ysis of the available facts. This is another ‘window’ analysis method mostly adopted if the current programme updates are too few or not realistic, thus preventing them to be used for the Time Slice Windows Analysis. Therefore, as-built dates are obtained through the relevant project site personnel and/or reviewing proj- ect records, diaries, photographs, etc. These dates are then compared with the baseline programme to determine critical delays and their impact/caus- es. This analysis method is consistent with the effect and cause approach as it determines the critical path con- temporaneously and the effect of the delay events retrospectively. In the next issue of the MBAM Journal, BK Entrusty will continue with Final Part of this article, entitled ‘Delay Analysis – Which Method Preferred?’ BK Asia Pacific is group of companies incorporated in the Asia Pacific Region providing a comprehensive network of project management, commercial and contract management services to the international construction industry, with offices in China (Hong Kong, Macau and Shanghai), Malaysia, Philippines, Singapore and Vietnam. Entrusty Group is a multidisciplinary group of companies which comprises Entrusty Management Sdn Bhd, Entrusty Consultancy Sdn Bhd, BKAsiaPacific (Malaysia) Sdn Bhd, Pro-Value Management Sdn Bhd, International Master Trainers Sdn Bhd, Agensi Pekerjaan Proforce Sdn Bhd, and Entrusty International Pte Ltd, which provide comprehensive consultancy, advisory and management services in project, commercial, contracts, construction, facilities, risks, quality and value management, cost management, executive search/personnel recruitment and training/ seminars/workshops to various industries. BK Entrusty provides 30 minutes of free consultancy (with prior appointment) to MBAM members. For further details, visit www.bkasiapacific.com and www.entrusty.com. For enquiries, please contact Sr. HT Ong, Tel: 6(03)-7982 2123 Email: htong@ entrusty.com or htong@bkasiapacific.com66 MASTER BUILDERS JOURNAL #118 Feature BY SR LIM KOK SANG Whilst consumers are reaping the benefits brought about by recent advances in technology, organisations across industries are scrambling to adapt to changes brought about by disruptive ones. In response to this, the National Policy on Industry 4.0 was launched on 31 October 2018 to drive digital transformation of the manufacturing and related services sectors in Malaysia. Envisioning a New Construction Industry — Humanising Realities Industry 4.0 & The Construction Industry Professor Klaus Schwab, the founder and executive chairman of the World Economic Forum, describes the Fourth Industrial Revolution (Industry 4.0) as a world where we can move between digital domains and offline reality with the use of connected technology to enable and manage our lives (Min, et al, 2018). The construction industry is apparently lagging far behind other industries based on the MGI Industry Digitisation Index. And what digital transformation means to each construction organisation differs significantly. Some think it is the application of software solutions that will disrupt how they operate or make money, some perceive it to be the deployment of digital technologies to impress the clients with enhanced experience in artificial realities (such as virtual reality, augmented reality, mixed reality and immersive reality), and the remainder choose to ignore it altogether. Whatever the perception and reaction, digital technologies are already changing the dynamics in many industries, breaking existing value chains, changing business models and shifting profit pools. Among the digital technological advances, Artificial Intelligence and Artificial Reality are arguably ones which are making the biggest impact on the construction industry and on humanity in general now. The MGI Industry Digitisation Index 1 Based on a set of metrics to assess digitisation of assets (8 metrics); see technical appendix for full list of metrics and explanation of methodology. 2 Compound annual growth rate. 1 Knowledge-intensive sectors that are highly digitised across most dimensions 2 Capital-intensive sectors with the potential to further digitise their physical assets 3 Service sectors with long tail of small firms having room to digitise customer transactions 4 B2B sectors with the potential to digitally engage and interact with their customers 5 Labour-intensive sectors with the potential to provide digital tools to their workforce 6 Quasi-public and/or highly localised sectors that lag across most dimensions SOURCE: BEA; BLS; US Census; IDC; Gartner; McKinsey social technology survey; McKinsey Payments Map; LiveChat customer satisfaction report; Appbrain; US contact centre decision-makers guide; eMarketer; Bluewolf; Computer Economics; industry expert interviews; McKinsey Global Institute analysis 2015 or latest available data Digital leaders within relatively undigitized sectors Relatively low digitization Relatively high digitization67 MASTER BUILDERS JOURNAL #118 Feature progressed from being just a ‘cinema of the future’ to a formidable alternative reality competing against reality. With the advancement of Artificial Reality, the perceived value of real things and virtual things are shifting. Virtual marketplaces such as Steam Community Market are hugely popular and lucrative where gamers trade. People are now so impressed with their experience in the virtual world where they can be whoever and whatever they fancy, they are using real money to purchase virtual items. Even murders and suicides are committed by obsessed gamers who have lost touch of reality. However, despite the meteoric rise of Building Information Modelling The Rise of Artificial Intelligence With Artificial Intelligence that some say is the next electricity, many tasks humans are traditionally paid to do are beginning to be automated, changing the day-to-day nature of majority of jobs. Tasks which are logic, principles and rules-based, like those carried out by construction professionals are not spared and ripe for automation. Tasks such as quantity extraction, designing the structure of a building and routing of services pipes are already either partly or fully automated. In fact, Artificial Intelligence is also used: in the covid 19 coronavirus fight to track, screen priority cases, and effectively forecast the development of the epidemic in real time in China; and as the first in Asia, in the process of meting out a sentence by a Sabah court. Artificial Reality vs Reality Since ‘Sensorama’ created by Morton Leonard Heilig, Artificial Reality has (BIM) in recent years, Artificial Reality technology is still under-utilised in the construction industry. Virtual Design and Construction (VDC) is a technique that uses Artificial Reality technology to simulate the whole design and construction process. By designing and constructing a building virtually before actually doing it can help teeth out any issues which are usually significantly more expensive to deal with if materialise during construction phase. Alas, it is still not commonly used in the construction industry due to various reasons, including high initial cost of adoption, lack of political will and outdated legislative constraints. The New Virtual Construction Industry Digital technologies are poised to create an alternative reality, rendering human activities increasingly obsolete in the real world. Instead of capitalising on the digital technologies to build better, faster and smarter, the construction industry that builds our reality is lagging behind other industries on the The future is already here — it’s just not very evenly distributed WILLIAM GIBSON, FATHER OF CYBERSPACE “ ”Next >