This document discusses components of a contract and its execution. It defines a contract as a written or spoken agreement intended to be enforceable by law. The key parts of a contract are an offer, acceptance of the offer, a promise, and consideration. Other aspects covered include void, voidable, and valid contracts. The document also discusses contract administration and management. Major issues that can arise in contracts include variations, defects, delays, billing disputes, and cost overruns. Estimation involves adding measurements for every aspect and potential cause of disputes.

1. © J S Packiaraj www.jsp.net.in
TENDERING ESTIMATING
AND BIDDING
CLE6030
Winter 2019-20

2. Lecture 04
Components of a Contract and Execution
22-July-2019

3. Recapitulation
Importance of English
• An English professor wrote on the board: A woman without her man
is nothing.
The class was then asked to punctuate the sentence.
The men wrote: "A woman, without her man, is nothing."
The women wrote: "A woman: without her, man is nothing."

4. Recapitulation
Definition of Project
• A project is generally a non-recurring task having a definable
beginning and end, with a definite mission and has a set of objectives
and achievements. IS15883 (Part-1)
Aspects of a construction Project
• Conceiving an Idea
• Contracts and Tenders
• Winning and going beyond
• Risk Analysis

5. What is a Contract?

6. Contract is:
A written or spoken agreement,
especially one concerning
employment, sales, or tenancy, that
is intended to be enforceable by law.

7. Indian Contract Act
• General Principles of Law of Contract
• Contract Relating to Sale of Goods
• Special Contracts
• Indemnity
• Guarantee
• Bailment & Pledge
• Partnership

8. Parts of a Contract
• A Offer
• Acceptance of Offer
• A Promise
• Consideration
• Agreement
• Promise + Consideration
• Contract

9. Some other aspects
• Void Agreement
• Voidable Contract
• Void Contract
• Reciprocal Consideration

10. Acceptance
• No part acceptance
• Should be communicated
• Should be timely
• Cannot precede offer
• Silence is not acceptance
• It should be definite

11. Other Aspects
• Lawful intent
• Competent to contract
• Free Consent
• Agencies that can contract

12. Take Home Assignment
Watch the following lecture on Study of a Tender:
• https://www.youtube.com/watch?v=oTEU34eAr1A

13. Closure
• Amicable resolution of open points
• Gracefully exiting a project
• Letters of Appreciation for future
• Bank and legal aspects
• Getting repeat orders

14. Recapitulation
Stages of Tender
• Prequalification
• FEED
• Calling Tenders
• Bid Submission
• Evaluation of Bids
• Negotiation
• LOI and Work Order

15. Recapitulation
Preparation of Tender
• Finding Cost of Construction
• Finding Cost of Outsourcing
• Planning of Funding and Sources
• Working out the Cash Flow
• Identifying the work force

16. Contract Administration

17. Aspects of Contract Administration
• Preparing proper and accurate bid document
• Compliance to all local body and regulators
• Method statements for Quality compliance
• Maintaining Records and Standard forms
• Negotiating and processing change orders
• Have good Public Relations
• Claims analysis and processes
• Close out

18. Contract Document Management
• Scope clarity
• Budget information
• BIM / Conditions
• Specifications
• Contract Conditions
• Equipment and Resource information
• Billing and Measurement standards
• Making good of defects

19. Major aspects of Contract - issues
• Variations
• Defects
• Acceleration of Work
• Extension of Time
• Faulty billing by contractor
• Under-runs and Over-runs
• Cost of Delay (LD clause)
• Valuation of work

20. Cause of Disputes
• Acceleration
• Coordination
• Workmanship and quality
• Differing goals
• Delays
• Feasibility of Schedule
• Design and communication of intent
• Complexity of project

21. Where do we do the Estimation
Add measurement for every
Aspect and Cause for Dispute

22. Thank You