Method Statement in Construction Contracts

Every project is unique, in particular, construction projects. There are many methods applied to accomplish functioning of individual installations included in the whole project. Building services like Mechanical, Electric, and Plumbing (MEP) work have given more importance than other disciplines dealt with. It's because of complexity and alternate methods available to accomplish the same output. While executing individual installations - also known as tasks - construction team have to adopt suitable methods submitted as an integral part of Tender. Most of the project managers or representatives of client keen to look Method Statement of critical and important tasks. We will look into what is Method Statement and what is the importance a Method Statement brings to a construction project.

Method Statement in Construction Contracts

What Is Method Statement?

Method Statement is a descriptive document, that explains execution methods and procedures of an individual tasks involved in a project, often listed in a project tender as annexure. A well written method statement explains how the work carried out, involvement of labor & other staffs, plant & machinery, time required, and output expected. For more clarity of the description, method statement must contain sketches, small drawings, schemes and charts to avoid misconceptions from both client and contractor.

Analysis of Alternative Methods

Method Statements for a particular task may be different if it has been collected from different contractors but final outcome should be the same. One contractor may use more labors while other took more plants or sometimes, method of doing the work itself in different manner. Analysis of alternative methods of a particular task also become a concern for the contractors who would really consider the active involvement in the project that outpour considerable amount of reduction in the overall project cost, keeping quality or output either same or higher as originally intended. This analysis should be transformed as part of the said method statement.

Confidentiality of Method Statement

Method statement submitted as a part of tender submission may hide some of the major steps and detailing to keep contractor's technical know-how confidential. In such cases, it will only be an extract of actual method statement that submitted, if they become success in the tender process. Hence, client should be notified as the detailed method statement will be submitted once tender has been awarded to the contractor. This way, the method statement in the contract should become an obligation on the contractor that must follow in either way, physically or legally.

If an alternate method statement is approved for construction, it becomes a specified method to accomplish the said task and the contractor should be entitled to get a variation order and its payment as proposed, provided and subjected the cancellation of original construction method stipulated in the contract for the same task.

Method Statement Helps Detailed Job Planning

Job planning process should carry out prior construction. In this stage, planning department depend method statement for coordinating and executing each task consuming optimized labor, material, plants and time. With the help of method statement, constructability analysis can be done from various angles, thus forecasting required resources optimized.

Method Statement Proves Contractor's Understanding of Execution Challenges

Even an experienced contractor may fail if project complexity is in extreme end to the execution team. This kind of project vulnerability may expect by consultant of the client, so that in the tendering stage itself, consultant insists method statement for overcoming the vulnerable tasks. Here method statement helps finding solutions for execution challenges in order to avoid clashes between client and contractor.

Appropriateness of Method Statement

Method Statement can be made during tender preparation or as a request come from client before finalizing tender. Whatever the situations, both party has to make sure the risk involved in the Method Statement submitted by contractor and received by client. Some of the questions to be raised when it is considered:

Whether it has been considered appropriate resources? What about the equipment to be used or involved for? Whether the price tag will be enough to accomplish the task pointed by method statement? If these questions are answered clearly by both the parties, the risk involved in particular task can be avoided.

What Are the Major Items Included in a Typical Method Statement?

Role of Method statement in a project depends on task that to be executed. Hence the detailing are varying project to project and task to task. Here, major contents a typical method statement included shown.

  1. Introduction and Scope
  2. Applicable Project Specification
  3. Drawings
  4. Location of Activity
  5. Operation
  6. Responsibility
  7. Equipment Requirements
  8. Health and Safety
  9. Inspection and Test Plan

Last Modified: 18-Jan-2019