The document outlines the key details of a contract for the construction of an earth dam and concrete spillway near Surat City, India to address water scarcity. It describes the stages of the contract including pre-contract planning, the contract stage involving roles and responsibilities, and the post-contract maintenance stage. Some key aspects covered include the unit price contract type, contractor selection process, scope of work, quality control measures, activity scheduling and approvals required. Procedures for payments, variations, dispute resolution and retention amounts are also provided.
2. Construction Contract for Earth Dam with
Concrete Spillway
Stakeholders - Government of Gujarat, Contractor and Third Parties
EARTH DAM
SPILLWAY
Ex. Concrete Spillway in Sarovar Dam
Narmada River, India
3. Background
● Drinking Water Scarcity in SuratCity, Gujarat, India
● Increase in demand of Water supply because of increasing
Human Growth (2.4 Million Inhabitants)
● Funding Agency - Government of Gujarat
● Climate - Tropical Climate with 4 Month Rainy Season
● Deadline to Project Completion - 1 Year
4. Stages in Contract
For Earth Dam nearby Surat City, Gujarat, India
1. Pre-Contract
1. Contract
1. After-Contract
Location of Dam in India
5. Pre-Contract Stage
1. Type of Contract
2. Scope of work
3. Technical (Bird- eye) specifications
4. Tender Procedures
5. Selection / Pre-selection of Contractors
6. Securities, Sureties and Insurances
6. Contract Stage
1. Roles: Client / Employer / Engineer/ Contractors
2. Procedures and payments
3. Variations, alterations, time aspects
4. Quality control
5. Progress of work
6. Activity schedule
7. Approval and certification
8. ● Based on FIDIC Contract Guide : the “Conditions of Contract for
Construction” (CONS)
● Type of contract: A Unit Price contract
Unit Price Contract Advantage
1. Saving the heavy cost of preparing many bills of quantities by the
contractors
2. Fair basis for competition
3. In comparing with lump-sum contract, changes in contract
documents can be made easily by the owner, lower risk for
Contractor
Type of Contract
9. ● Problem Statement: A complex storage and conveyance water
supply system to face A Town’s water shortage.
● The Goals of the Agreement are to build the main parts of the
water supply infrastructures, which are the Multipurpose Earth
Dam or reservoir and its Concrete Spillway, under a
subcontracting agreement between the Main contractor and
subcontractor.
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Scope of Work
10. ● Earth Compaction
● Earthquake check (dynamic efforts)
● Flood Control 200 year return
● Compacted Earth with a clay (impervious) nucleus.
● Storage capacity
● Elevation of the Crown
● Death Volume
● Quality and characteristics of the foundation rocks have to be
considered as competent or need to be improved by concrete (high
resistance) injection, and / or any other proper soil improvement
technique, under previous agreement with Engineer.
10
Specifications
11. Tender Procedures
Tender
Preparation
Prequalification
Obtaining
Tender
JANUARY 2017
Opening &
Evaluating
Tender
Establishment of
project strategy
· Preparation of tender
documents
· Issue of tender documents
· Visit to site by tenderers
· Tenderers’ queries
· Addenda to tender documents
· Submission and receipt of
tenderers
· Preparation of prequalification
document
· Invitation to prequalify
· Issue & submission of
prequalification documents
· Analysis of prequalification
applications
· Selection of tenderers
· Notification of applicants
· Opening of tenders
· Review of tenders
· Tenders containing deviations
· Adjudication of all tenders
· Award of contract
· Issue letter of acceptance
· Performance security
· Preparation of contract
agreement
· Notification of unsuccessful
tenderers
12. Selection/Pre-selection of Contractor
➔ Big or medium sized firm
➔ Experiences in DAM Construction with the
Basic Ability of at least USD. 10,000,000
➔ Provide 9 experts qualified in DAM
construction
➔ Certificate and license in Construction service
(DAM Construction)
➔ Qualification capabilities of Technical
supporting staffs
➔ Certificate of financial support from bank for
at least USD 10.000.000
➔ Provide equipment/facilities to carry out the
work
➔ No criminal record or black listed
13. Selection/Pre-selection of Contractor
Prequalifications Tendering
Criteria:
1. Financial
2. Experience
3. Technical capability
Criteria:
1. Technical (50%)
a. Methodology indicators
b. Technical Specifications
c. Time Management
d. Equipment and Plant
e. Key Personnel
1. Price Bid (50%)
Average price bid
Short List
Passing Grade: 70
Passing
Grade: 75
14. Subcontractors Selection Procedures
Selection Method : Nominated Subcontractors
Scope of Work : Construction of concrete spillway
Employer
● Nominates/select the
subcontractor
● Retain some control over
the selection without
directly involved in
detailed contractual
arrangements
Tender Process
Separate tender process with
main contractor (different
qualification)
Advantages
Employer more
confident about the
quality of the
subcontractor
15. Securities, Sureties and Insurance
● Earnest Money Deposit (USD 100000)
● Security Deposit (10% of cost put in Tender)
● Furnish Bid Bond as a Surety
● Contractor is responsible for Insurance of Civil Works
and Workers
16. ● Client/Employer: Government of Gujarat
◦Responsibility: To maintain harmony with the contractual agreement, makes
payments, and holds the legal representation.
● Engineer: The Engineer takes care of interpretation of the design, the measuring of
quantities, approval of payments, variations or changes in the work as well as changes
in time, additionally the engineer is expected to offer a first layer of dispute resolution.
● Engineer’s Representative - The Engineer’s Representative is a person assigned by the
Engineer that is installed in site.
◦Responsibility: His main role is to monitor work’s progress on a day to day basis.
● Consultant -A competent person assigned by the Engineer
◦ Responsibility: Assume different task of the Engineer without affecting his/her role
Roles of the Client, Employer and Consultant
17. Procedure and Payments (a)
● Letter of Acceptance
● A Time Concession of twenty days is provided for the mobilization period.
● Program. Forecasts the way and the date in which works will be done, making
clear references to special works.
● Certificate of Completion / Certificate of Maintenance.
● Formal completion of work takes place.
● The contractor still responsible for correcting defects, required by the
Engineer.
● This responsibility will be hold valid for a period of five year.
● Maintenance Certificate
18. ● Contractor’s Deduction Account can be used to pay for
repairment, that only if the contractor fails to do it and shows
no will to assume the responsibility in a reasonable time period
● Retention Money.The Client will retain the equivalent of
5 % of the Total Value
● Certificate of Completion / 50% Retention Money-back.
● Maintenance period 50 %
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Procedure and Payments (b)
19. ● Regular Payments .
● Regular payments are going to be done under the
modality of Percentage of the value of the Work.
● A monthly basis.
● Engineer validated
● Deductions Certificate of payment
● In situs meeting.
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Procedure and Payments (c)
20. Variation and Time Aspect
Reasons for variation
➔ Non-availability of specified materials
➔ Changes in conditions
➔ Unexpected events
★ Must not exceed ±10% of the Contract Sum
Time management
● The monitoring and progress assessment shall base on the
schedule of work agreed.
● Security fund of the contractor will be taken when the work
delays prooved clear reasons.
21. Quality Control (QC)
“ The Quality Control is operational technic and activities that are
use to satisfy the quality requirement ”
Benefits
➢ Helps to reach the project goal
➢ Supervise that the project executed properly
➢ Ensure quality, functioning, and standard conformity of
materials, equipment and system
➢ Enhances safety on the site
➢ Make sure the regulation are followed
22. Quality Control (Continued)
Quality Control is assisted by Professional Engineer
Two kinds of Quality Control in this project :
1. Quality Control Supervision
2. Quality Control Construction
23. Quality Control Construction
● Impervious material
○ Moisture Content and Density
● Pervious material
○ Permeability, Shear Strength and Gradation
24. Quality Control Supervision
❖ Personnel
- Inspector at each site
- Inspector report the supervision to the engineer
❖ Laboratory Facility
- One laboratory soil to carry out the soil test
- Parameters : density, gradation and water content
- The soil must not exceed an incremental height of 1.6 m above previous level
❖ Geological Features
- Photograph and drawing
❖ Record and Report
- Daily record
- Monthly and Final Report
27. Approval and Certification
● Prior to use the contractor and subcontractor must notify the
engineer of all material and equipment intended to use.
● The engineer must prepare a guidelines to test and evaluate
the material intended to be used.
● All material to be used must be new unless is stipulated in
standard specification permit
● The material which approved to be unfit must not be used in
the construction.
28. Settlement of Disputes
● Tender is Governed by the Local Law and shall be
subject to jurisdiction of State Court
● Dispute in interpretation of any condition shall be
referred to mutually appointed Arbitrator
● The award of Arbitrator shall be final and binding on the
part hereto
29. Retention & Maintenance
1. Maintenance Liability - 5 years after Construction
2. Govt. will retain 5% of Total Contract Sum for 1 year
3. For smooth transfer, Contractor shall provide
manufacturer’s Manual and Train Government Officials
