The document contains 5 questions related to construction management. Question 1 asks about effects of key certificates issued during construction like Certificate of Substantial Completion, purposes of liquidated damages, and effects of Defects Correction Certificate. It also asks about purposes of forfeiture and default clauses. Question 2 defines bill of quantities and discusses its objectives, defines variations, and basis for valuation of variations. It also defines provisional sums and prime cost items. Question 3 discusses roles of client, contractor and engineer and limitations of engineer's representative. It also discusses circumstances that may frustrate a construction contract. Question 4 distinguishes between assurance and insurance, discusses liabilities for damages and purposes of retention and performance bonds. It also discusses care of works
This document outlines the modules and objectives of a National Diploma for Industrial Technician in Civil Engineering. The module focuses on administration and contractual procedures in civil engineering projects. The objectives are to develop an understanding of important administrative factors in civil engineering contracts, create awareness of contractual obligations of parties involved, and develop awareness of office and site procedures for civil engineering construction programs. The document details the various topics to be covered, including parties to a contract, types of contractual arrangements, contract documents and tender procedures, planning and execution of contracts, measurement, valuation, certification and payment procedures, claims, arbitration, insurance, bonds, safety, and public utilities.
This document discusses site possession under construction contracts. It defines site and possession, and outlines the contractor's rights and obligations regarding site possession. Some key points:
- The contractor has the right to enter, occupy, and use the site from the possession date until completion to carry out the works. Possession allows exclusive use of the site as needed to construct the works.
- The contractor must inspect the site before submitting their tender to understand site conditions. They are responsible for all information affecting their tender.
- The employer must give possession by the stated date to allow the contractor to start work. This is usually 2 weeks after contract award. The contractor must then commence and diligently proceed with the works to the
The document is a report summarizing the essential elements that must be included when preparing the final account for a construction project. It discusses adjustments that need to be made for variation works, remeasurement of provisional quantities, omission of prime cost and provisional sums, additional expenses claims, and loss and expense claims. It also explains the significance of omitting an item, like an entrance arch and guardhouse, from the tender document. This omission would require treating it as a variation with an Architect's Instruction and could delay the project.
The architect as contract administrator a legal perspective - presentation ...Zainab Zainordin
This document provides an overview of the architect's role as contract administrator from a legal perspective. It discusses the architect's scope of work under the building contract, their duty to act independently and impartially when certifying payments. The document analyzes specific clauses in the PAM 2006 building contract form regarding practical completion, defects liability, damages for non-completion, and emphasizes the importance of the architect exercising proper judgment when issuing certificates that can financially impact the contractor and employer. Key sources of construction law are also outlined.
This proposal is for a RM1.2 billion hotel and shopping complex project in Kuala Lumpur. The client wants full control of design and minimal changes to cost. The consultant recommends traditional procurement with two-stage selective tendering. For the contract, a lump sum contract is recommended using the PAM 2006 form as it provides the client control over design and ensures project is completed on time to avoid liquidated damages. The proposal discusses procurement options, advantages of traditional procurement, the tendering process, and justification for the contract recommendations to meet the client's requirements.
The document provides an overview of key points to consider for design and build contracts between a contractor and client. It discusses liability considerations for design, how to handle variations in scope, different payment structures, practical completion procedures, intellectual property rights, and ways to limit the contractor's liability such as through clear termination clauses and insurance requirements. The document aims to outline important contractual terms and risk allocation across the design, construction, and operations phases of a project.
This document discusses target cost contracts and how to effectively implement them using NEC3. It explains that target cost contracts aim to align parties' objectives by sharing risks and potential savings. Setting the initial target cost is important to incentivize contractors to find efficiencies. Maintaining the target cost as the project progresses is also essential. The payment mechanism and what costs are allowed or disallowed must be clearly defined to ensure the arrangement drives the right behaviors.
The document discusses setting up an effective contract administration system to document claims arising from changes, delays, and other issues on a construction project. It recommends identifying and ranking project risks, determining responsibility for risks, and outlining the evidence and documentation needed to prove entitlement to compensation. Effective documentation includes updated schedules, daily reports, correspondence, meeting minutes, and photos/videos. Quantifying impacts requires separating direct costs from disruption costs and analyzing effects on both changed and unchanged work.
This document outlines the modules and objectives of a National Diploma for Industrial Technician in Civil Engineering. The module focuses on administration and contractual procedures in civil engineering projects. The objectives are to develop an understanding of important administrative factors in civil engineering contracts, create awareness of contractual obligations of parties involved, and develop awareness of office and site procedures for civil engineering construction programs. The document details the various topics to be covered, including parties to a contract, types of contractual arrangements, contract documents and tender procedures, planning and execution of contracts, measurement, valuation, certification and payment procedures, claims, arbitration, insurance, bonds, safety, and public utilities.
This document discusses site possession under construction contracts. It defines site and possession, and outlines the contractor's rights and obligations regarding site possession. Some key points:
- The contractor has the right to enter, occupy, and use the site from the possession date until completion to carry out the works. Possession allows exclusive use of the site as needed to construct the works.
- The contractor must inspect the site before submitting their tender to understand site conditions. They are responsible for all information affecting their tender.
- The employer must give possession by the stated date to allow the contractor to start work. This is usually 2 weeks after contract award. The contractor must then commence and diligently proceed with the works to the
The document is a report summarizing the essential elements that must be included when preparing the final account for a construction project. It discusses adjustments that need to be made for variation works, remeasurement of provisional quantities, omission of prime cost and provisional sums, additional expenses claims, and loss and expense claims. It also explains the significance of omitting an item, like an entrance arch and guardhouse, from the tender document. This omission would require treating it as a variation with an Architect's Instruction and could delay the project.
The architect as contract administrator a legal perspective - presentation ...Zainab Zainordin
This document provides an overview of the architect's role as contract administrator from a legal perspective. It discusses the architect's scope of work under the building contract, their duty to act independently and impartially when certifying payments. The document analyzes specific clauses in the PAM 2006 building contract form regarding practical completion, defects liability, damages for non-completion, and emphasizes the importance of the architect exercising proper judgment when issuing certificates that can financially impact the contractor and employer. Key sources of construction law are also outlined.
This proposal is for a RM1.2 billion hotel and shopping complex project in Kuala Lumpur. The client wants full control of design and minimal changes to cost. The consultant recommends traditional procurement with two-stage selective tendering. For the contract, a lump sum contract is recommended using the PAM 2006 form as it provides the client control over design and ensures project is completed on time to avoid liquidated damages. The proposal discusses procurement options, advantages of traditional procurement, the tendering process, and justification for the contract recommendations to meet the client's requirements.
The document provides an overview of key points to consider for design and build contracts between a contractor and client. It discusses liability considerations for design, how to handle variations in scope, different payment structures, practical completion procedures, intellectual property rights, and ways to limit the contractor's liability such as through clear termination clauses and insurance requirements. The document aims to outline important contractual terms and risk allocation across the design, construction, and operations phases of a project.
This document discusses target cost contracts and how to effectively implement them using NEC3. It explains that target cost contracts aim to align parties' objectives by sharing risks and potential savings. Setting the initial target cost is important to incentivize contractors to find efficiencies. Maintaining the target cost as the project progresses is also essential. The payment mechanism and what costs are allowed or disallowed must be clearly defined to ensure the arrangement drives the right behaviors.
The document discusses setting up an effective contract administration system to document claims arising from changes, delays, and other issues on a construction project. It recommends identifying and ranking project risks, determining responsibility for risks, and outlining the evidence and documentation needed to prove entitlement to compensation. Effective documentation includes updated schedules, daily reports, correspondence, meeting minutes, and photos/videos. Quantifying impacts requires separating direct costs from disruption costs and analyzing effects on both changed and unchanged work.
This document discusses different types of construction contracts:
- Lump sum contracts specify a single price for completing a project. They provide incentives for efficiency but carry high risks for contractors.
- Unit price contracts base payment on quantities of work completed. They allow for changes but the final cost is unknown.
- Cost plus contracts reimburse contractors for all costs plus a fee. They provide flexibility but lack incentives for cost control.
The document is the tender and contract conditions for the construction of a building in Liwan, Dubai. It includes instructions to tenderers on submitting the tender, requirements for site visits, and clarification of contract documents. The tender must include supporting documents such as proof of a site visit and a tender bond. The employer reserves the right to accept or reject any part of the tender. The tenderer is responsible for understanding all project requirements and conditions. No changes can be made to the tender documents except for filling in blanks.
On Tuesday, March 14, construction law attorney Mike Madigan hosted the second installment of Kegler Brown's 2017 construction law webinar series. Mike discussed key provisions that play a significant role in how risk is divided when it comes to CM-at-Risk Agreements and GMP Amendments.
This document outlines a course on Procurement Management and Contract Administration. The course is offered at Madawalabu University and covers topics like tendering, types of contracts, bonds and insurances, and construction claims. It will be taught over one semester, with lectures, assignments, projects and exams. The instructor is Andualem Endris Yadeta and the course aims to provide students with knowledge of procurement processes and contract management in the construction industry.
1. The document discusses various types of construction project tenders and contracting methods. It defines tenders, quotations, earnest money deposits, liquidated damages, and contract documents.
2. Five common types of tenders are described: open, sealed, limited, single, and rate contracts. Contract classification includes lump-sum, cost plus, target, percentage rate (B1 system), and item rate (B2 system).
3. Key elements of contract documents are outlined, including tender notice information, general and special conditions, drawings, specifications, payment terms, completion time, penalties, and dispute resolution process.
This document defines key terms related to construction contracts and procurement. It explains that a contract is a mutual agreement between two or more parties to do work under certain terms and conditions. It also discusses the history of construction contracts and various risks involved, including unforeseen conditions, project delays, insolvency of parties, and conflicts over costs, time and quality. Finally, it states that construction contracts are meant to distribute duties, responsibilities and risks among project participants.
Presentation is trying to define the intent , content, methods and scope of arbitration and tendering and its implications for the architectural practice.
This document discusses IAS 11, which provides accounting standards for construction contracts. It defines key terms like construction contract and outlines the objectives of recognizing revenue and expenses over the duration of a contract based on the percentage of completion. It also addresses how to account for expected losses and incomplete contracts, and notes some differences between IAS 11, US GAAP, and UK GAAP standards. Contract accounts are used to track costs, revenue, and progress payments for construction projects.
The document discusses the tendering process for construction projects and the role of the architect. It explains that tendering involves inviting contractors to submit bids/offers for the work. The architect prepares tender documents, including drawings, specifications and a bill of quantities listing all work items. Contractors submit priced tenders in response. The architect then evaluates the tenders, checks for compliance, analyzes costs, selects a contractor and administers the construction contract. The bill of quantities provides measured work quantities for contractors to price, allowing for accurate, consistent bids to select the most efficient contractor.
Here are the key steps to find the rate analysis for excavation in a trench for foundation:
1. Identify the materials required - Not applicable as this is an excavation work.
2. Identify the types of labors/workers required - Mistri, Mazdoor, Coolies
3. Estimate the quantity of each type of labor - Numbers provided
4. Obtain the daily rate of each type of labor - Rates per day provided
5. Calculate the labor cost - By multiplying quantity and rate
6. Include any sundry expenses - Lump sum amount provided
7. Calculate the total cost of materials and labor
8. Add contractor's profit percentage over the total
This document discusses accounting for construction contracts under IAS 11. It defines a construction contract, explains how to recognize contract revenue and costs over time using the percentage of completion method when the outcome can be reliably measured. It also discusses how to account for fixed price and cost plus contracts, as well as loss making contracts, contract variations, claims, incentives and how to determine the stage of completion.
Construction Contracts: Basics of Contracts and Contract AdministrationGerald R. (Jerry) Genge
The CCDC 2 Stipulated Price Contract is the "go to" document for construction contracts. Learn the basic components and roles of eth parties to the contract.
This document discusses cost estimating methods for construction projects. It describes unit estimating and factor estimating as methods used to create approximate estimates early in a project's planning. Unit estimating uses a single cost factor like cost per square meter. Factor estimating divides the project into cost components and estimates each separately, like estimating room and amenity costs for a hostel project. Cost indexes use historical cost data from similar past projects to help with preliminary estimating. These methods provide early budget information before detailed design is complete.
Project Controls Expo, 18th Nov 2014 - "NEC3 Contracts – Managing Risk and Ch...Project Controls Expo
Traditionally many Contractors (and even Employers) see following the contract or being contractual as a very negative. The NEC3 suite of contracts command a different approach and this session will explore the benefits of being contractual, and how it will help both Parties to manage their project and understand exactly where they both are in terms of liability throughout their project. A key aspect of this is approach to the management of regular revised programmes, which compared to other forms of contract have a much higher contractual significance under NEC3.
The document outlines various clauses related to contract suspension, termination, variations, notices, payments, and safety for a construction project. Key points include:
- The company can suspend the contractor's work at any time for any reason by written notice specifying parts of work suspended and effective date.
- The contractor can suspend work if undisputed invoices are unpaid for over 45 days after providing notices.
- The company can terminate for convenience without payment or compensation to the contractor.
- The contractor must follow safety and health laws and prepare a safety plan for company approval.
Fidic comparison red yellow - silver bookHani Saad
1. The document compares three types of construction contracts - the Red Book, Yellow Book, and Silver Book.
2. The Red Book and Yellow Book contracts allocate some key risks like design errors to the employer. The Silver Book allocates most risks to the contractor.
3. The Red Book and Yellow Book contracts use an engineer appointed by the employer to administer the contract, while the Silver Book does not use an engineer and the employer directly administers the contract.
The contractor submitted their final accounts within 6 months of practical completion as required. The quantity surveyor assessed the application and prepared the final account. It included granting the contractor an extension of time and RM30,000 for additional insurance due to employer delays. Nominated subcontractors' accounts were added back with adjustments. The final contract value was RM71,582,500 with RM30,000 granted for loss and expenses and an extension of time granted.
Mobile devices are proliferating rapidly, with over 1 billion smartphones expected by 2015. This brings challenges for IT support as users expect support anytime, anywhere on their mobile devices. To meet rising user expectations, IT support must adapt by enabling more real-time, collaborative support through remote support technologies that allow support representatives and users to connect from outside the traditional office firewall. Support also needs to transition from being facilitators to enablers in order to effectively support users on their mobile devices.
This document discusses different types of construction contracts:
- Lump sum contracts specify a single price for completing a project. They provide incentives for efficiency but carry high risks for contractors.
- Unit price contracts base payment on quantities of work completed. They allow for changes but the final cost is unknown.
- Cost plus contracts reimburse contractors for all costs plus a fee. They provide flexibility but lack incentives for cost control.
The document is the tender and contract conditions for the construction of a building in Liwan, Dubai. It includes instructions to tenderers on submitting the tender, requirements for site visits, and clarification of contract documents. The tender must include supporting documents such as proof of a site visit and a tender bond. The employer reserves the right to accept or reject any part of the tender. The tenderer is responsible for understanding all project requirements and conditions. No changes can be made to the tender documents except for filling in blanks.
On Tuesday, March 14, construction law attorney Mike Madigan hosted the second installment of Kegler Brown's 2017 construction law webinar series. Mike discussed key provisions that play a significant role in how risk is divided when it comes to CM-at-Risk Agreements and GMP Amendments.
This document outlines a course on Procurement Management and Contract Administration. The course is offered at Madawalabu University and covers topics like tendering, types of contracts, bonds and insurances, and construction claims. It will be taught over one semester, with lectures, assignments, projects and exams. The instructor is Andualem Endris Yadeta and the course aims to provide students with knowledge of procurement processes and contract management in the construction industry.
1. The document discusses various types of construction project tenders and contracting methods. It defines tenders, quotations, earnest money deposits, liquidated damages, and contract documents.
2. Five common types of tenders are described: open, sealed, limited, single, and rate contracts. Contract classification includes lump-sum, cost plus, target, percentage rate (B1 system), and item rate (B2 system).
3. Key elements of contract documents are outlined, including tender notice information, general and special conditions, drawings, specifications, payment terms, completion time, penalties, and dispute resolution process.
This document defines key terms related to construction contracts and procurement. It explains that a contract is a mutual agreement between two or more parties to do work under certain terms and conditions. It also discusses the history of construction contracts and various risks involved, including unforeseen conditions, project delays, insolvency of parties, and conflicts over costs, time and quality. Finally, it states that construction contracts are meant to distribute duties, responsibilities and risks among project participants.
Presentation is trying to define the intent , content, methods and scope of arbitration and tendering and its implications for the architectural practice.
This document discusses IAS 11, which provides accounting standards for construction contracts. It defines key terms like construction contract and outlines the objectives of recognizing revenue and expenses over the duration of a contract based on the percentage of completion. It also addresses how to account for expected losses and incomplete contracts, and notes some differences between IAS 11, US GAAP, and UK GAAP standards. Contract accounts are used to track costs, revenue, and progress payments for construction projects.
The document discusses the tendering process for construction projects and the role of the architect. It explains that tendering involves inviting contractors to submit bids/offers for the work. The architect prepares tender documents, including drawings, specifications and a bill of quantities listing all work items. Contractors submit priced tenders in response. The architect then evaluates the tenders, checks for compliance, analyzes costs, selects a contractor and administers the construction contract. The bill of quantities provides measured work quantities for contractors to price, allowing for accurate, consistent bids to select the most efficient contractor.
Here are the key steps to find the rate analysis for excavation in a trench for foundation:
1. Identify the materials required - Not applicable as this is an excavation work.
2. Identify the types of labors/workers required - Mistri, Mazdoor, Coolies
3. Estimate the quantity of each type of labor - Numbers provided
4. Obtain the daily rate of each type of labor - Rates per day provided
5. Calculate the labor cost - By multiplying quantity and rate
6. Include any sundry expenses - Lump sum amount provided
7. Calculate the total cost of materials and labor
8. Add contractor's profit percentage over the total
This document discusses accounting for construction contracts under IAS 11. It defines a construction contract, explains how to recognize contract revenue and costs over time using the percentage of completion method when the outcome can be reliably measured. It also discusses how to account for fixed price and cost plus contracts, as well as loss making contracts, contract variations, claims, incentives and how to determine the stage of completion.
Construction Contracts: Basics of Contracts and Contract AdministrationGerald R. (Jerry) Genge
The CCDC 2 Stipulated Price Contract is the "go to" document for construction contracts. Learn the basic components and roles of eth parties to the contract.
This document discusses cost estimating methods for construction projects. It describes unit estimating and factor estimating as methods used to create approximate estimates early in a project's planning. Unit estimating uses a single cost factor like cost per square meter. Factor estimating divides the project into cost components and estimates each separately, like estimating room and amenity costs for a hostel project. Cost indexes use historical cost data from similar past projects to help with preliminary estimating. These methods provide early budget information before detailed design is complete.
Project Controls Expo, 18th Nov 2014 - "NEC3 Contracts – Managing Risk and Ch...Project Controls Expo
Traditionally many Contractors (and even Employers) see following the contract or being contractual as a very negative. The NEC3 suite of contracts command a different approach and this session will explore the benefits of being contractual, and how it will help both Parties to manage their project and understand exactly where they both are in terms of liability throughout their project. A key aspect of this is approach to the management of regular revised programmes, which compared to other forms of contract have a much higher contractual significance under NEC3.
The document outlines various clauses related to contract suspension, termination, variations, notices, payments, and safety for a construction project. Key points include:
- The company can suspend the contractor's work at any time for any reason by written notice specifying parts of work suspended and effective date.
- The contractor can suspend work if undisputed invoices are unpaid for over 45 days after providing notices.
- The company can terminate for convenience without payment or compensation to the contractor.
- The contractor must follow safety and health laws and prepare a safety plan for company approval.
Fidic comparison red yellow - silver bookHani Saad
1. The document compares three types of construction contracts - the Red Book, Yellow Book, and Silver Book.
2. The Red Book and Yellow Book contracts allocate some key risks like design errors to the employer. The Silver Book allocates most risks to the contractor.
3. The Red Book and Yellow Book contracts use an engineer appointed by the employer to administer the contract, while the Silver Book does not use an engineer and the employer directly administers the contract.
The contractor submitted their final accounts within 6 months of practical completion as required. The quantity surveyor assessed the application and prepared the final account. It included granting the contractor an extension of time and RM30,000 for additional insurance due to employer delays. Nominated subcontractors' accounts were added back with adjustments. The final contract value was RM71,582,500 with RM30,000 granted for loss and expenses and an extension of time granted.
Mobile devices are proliferating rapidly, with over 1 billion smartphones expected by 2015. This brings challenges for IT support as users expect support anytime, anywhere on their mobile devices. To meet rising user expectations, IT support must adapt by enabling more real-time, collaborative support through remote support technologies that allow support representatives and users to connect from outside the traditional office firewall. Support also needs to transition from being facilitators to enablers in order to effectively support users on their mobile devices.
This document discusses approaches for managing bring your own device (BYOD) programs. It recommends using Spiceworks mobile device management (MDM) software which allows IT to inventory, monitor, and manage devices running Android, iOS, and Windows Phone. The MDM software provides features like mobile application management, secure document sharing, remote help desk support, and a user self-service portal to help enforce compliance policies for BYOD programs. It also outlines upcoming updates to Spiceworks' MDM integration and mobile apps for iOS, Android, and HTML5 browsers to provide more mobile management capabilities.
Remote Support - Redskab til skærmdeling, eller en strategi for bedre service...TOPdesk
- Bomgar is a software company founded in 2003 that provides remote support and access solutions to over 10,000 customers in 65+ countries.
- Their flagship product, Bomgar Remote Support, allows customers to securely access, control, and troubleshoot remote desktops, servers, and mobile devices across all operating systems and network locations.
- Bomgar solutions help organizations consolidate disparate remote support tools, streamline support processes, improve security and increase productivity through features like integrated chat and collaboration.
Virtual vs. In-Person Professional Developmentnetc2012
by Cheryl Peters, Michelle Rodgers, Lela Vandenberg
In 2010, Michigan State University Extension conducted its annual statewide conference entirely online; in 2011 MSUE chose to deliver the annual conference both virtually and face-to-face. Similarly, in 2010, eXtension, conducted its first nationwide professional development conference also using Adobe Connect. In 2011, eXtension stayed with a totally virtual conference but modified the format for more focused discussion and participation. Both organizations have conducted extensive quantitative and qualitative evaluations. This session will focus on methodology and lessons learned by both presenters and participants.
Supporting your remote clients with bomgarGary Wilhelm
Remote support is one of the most cost effective ways to manage your incident management process. Learn what features within Bomgar led the School of Medicine’s Office of Information Systems, and the Carolina Institute for Developmental Disabilities to choose Bomgar as their remote support tool of choice. We will demo both typical and not-so-typical support sessions to give you an idea of the scope of the product which allows technician to remotely connect to Windows, Unix, Mac, Windows Mobile, Blackberry, and limited remote support for Android and iPhone devices.
Over the past decade, we've been asking our customers what made them choose Bomgar.
Through win/loss calls, surveys, PIVA (Post-Implementation Value Assessment) engagements, on-site visits and face-to-face conversations, we've learned a lot about what problems and challenges they wanted to solve with Bomgar.
We now have more than 10,000 customers across a wide variety of industries and countries. But their reasons for choosing us are remarkably similar. Maybe their top ten reasons will resonate with you.
Tips for effective administration of a construction contract and for reducing the risk of delay and change orders. Interplay between the contractors, the consultant and an owner.
This document discusses different types of construction contracts:
- Lump sum contracts specify a single price for completing a project. They provide incentives for efficiency but carry high risks for contractors.
- Unit price contracts base payment on actual quantities of work items. They allow for changes but the final cost is unknown.
- Cost plus contracts reimburse contractors for all costs plus a fee. They provide flexibility but lack incentives for cost control.
This document outlines an assignment for a practical scenario involving the construction of a district cooling plant project in the UAE. It provides context for the project, including details about the employer, main contractor, type of contract used, and scope of work. It then lists the requirements for the assignment, including describing the basis for contract selection, aspects of design liability, risk apportionment, potential unforeseen problems, and dispute resolution techniques. Guidance is provided on referencing legal principles and contract clauses. The maximum length for the response is 2,000 words.
The document discusses contractor claims for loss and expense in construction contracts. It addresses two questions:
1) There is no automatic right to recover loss and expense just because an extension of time is granted. Claims for time extensions and loss/expense are evaluated separately.
2) For a loss and expense claim, the contractor must demonstrate how the regular work progress was materially affected based on reasons stated in the contract. The contractor provides initial notice within 28 days and full particulars within another 28 days, otherwise the claim is waived.
The document also lists six common reasons for claims, such as late instructions, work postponements, and variations. It describes six typical claim types like standing time for plants/labor
The document discusses various types of claims that can arise in construction contracts, including contractual claims, ex-contractual claims, and common law claims. It provides details on negative claims, which contractors can submit to avoid payments like liquidated damages, and positive claims, which contractors can submit for additional payment. The document outlines factors to consider when originating, preparing, and presenting claims, such as referring to relevant documents, proving disruption, calculating prolongation costs, and including overhead and profit.
Standard form building contracts are commonly used for several reasons: they allow parties to understand their basic obligations upfront, provide consistent expectations, and allow contractors to price tenders precisely. Standard forms also provide precedent for resolving common issues.
Key contract documents include the articles of agreement, conditions of contract, drawings, bills of quantities, schedules of rates, and specifications. The articles of agreement contain key project details while the conditions regulate the parties' relationship and address events during construction. Drawings and bills of quantities describe the scope of work.
Payment provisions typically provide for progress payments certified by the architect or surveyor based on work valuations, with retention sums held back. Variations allow flexibility, though contractors may seek recovery
Cost estimates & contract documents ce224 pdfSaqib Imran
This document provides information on construction cost estimation and contracts. It begins with an introduction to cost estimation, outlining the key requirements and need for estimation such as determining feasibility, timelines, and controlling costs. It then discusses the procedures and data required for estimating, including drawings, specifications, and rates. The document also covers different types of construction contracts such as lump sum, item rate, percentage rate, and labour contracts. It defines what a contract is and outlines the key obligations of employers and contractors. Finally, it discusses the tendering process, including classification of tenders, tender documents, and a sample tender notice.
There are several types of construction contracts:
1. Separated contracts involve separate entities for design and construction, resulting in delays. Lump-sum and measurement contracts fall under this category.
2. Integrated contracts assign design and construction responsibilities to a single entity to streamline the process. Design-build, turnkey, and build-operate-transfer contracts integrate the roles.
3. Management contracts appoint a single contractor to plan, manage, and coordinate subcontractors for design and construction. Construction management contracts focus on coordination. Design-build-manage contracts assign all three roles.
4. Discretionary contracts like partnering and joint ventures involve collaboration between client and contractor or between multiple contractors to share
3.0 Common Types of Construction Contracts & Standard Conditions of Contract ...Praveen Premkumar
The document discusses common types of construction contracts and standard conditions of contract used in New Zealand. It outlines the most common types of construction contracts as lump sum, cost plus, re-measured, management, negotiated, selective tendering, and design and build. The standard conditions of contract commonly used in medium-sized projects in New Zealand are NZS 3910, NZS 3915, FIDIC, JCT, NZIA, and RMBF. The Construction Contracts Act of 2002 established requirements for timely payments between parties in the contractual chain. Standard conditions of contract provide clarity around responsibilities and obligations to help manage construction, completion, and disputes.
1. The document provides guidance for quantity surveyors on preparing final accounts, including valuing variations, handling claims, and agreeing on the final account figure.
2. It discusses the methodology for quantifying and assessing the rates for variations, as well as the importance of cost review meetings to discuss changes and claims with the contractor.
3. The document also covers topics like remeasuring quantities, evaluating extension of time and prolongation claims, handling nominated subcontracts, and following contractual clauses.
This document discusses variation and claims management in construction projects. It defines variation as changes to the original project scope, and notes that variations are common and can impact costs and schedules. Claims refer to demands for compensation due to disagreements. The document outlines various causes of variation, such as design changes and owner requests. It also describes the types of variations and claims, and stresses the importance of clear claims processes. Finally, it discusses the stages of claims management, including prevention, mitigation, pursuit and resolution of claims at different project phases.
The document discusses various topics related to construction contract procedures, including:
1. Traditional and alternative contract systems such as lump sum based on bill of quantities, drawings and specifications, PC with target cost, and turnkey contracts.
2. The main responsibilities of the contractor include performing the work, the contractor receiving progress payments, and the contractor having the right to payments from the main contract.
3. The differences between domestic subcontractors, nominated subcontractors, and nominated suppliers in terms of their responsibilities and payment processes.
AN EXAMPLE OF HOW PREPARING A CLAIM STEP BY STEP.pdfHamsathFarludeen
This document provides guidance on preparing construction contract claims and disputes. It discusses the components and format for a formal statement of claim, including an executive summary, introduction, contract representations, contractor's plan, actual conditions, impacts, entitlement, quantification, and appendix. The executive summary should describe the project, issue, what the contractor wants, and basis for entitlement. The introduction provides background on the parties, bid, project, and claim. The contract representations section establishes the owner's express and implied representations relied upon in the bid. The contractor's plan demonstrates how the contractor planned to perform based on the contract representations.
Contract management is the systematic process of creating, administering, and enforcing contracts between two or more parties. It ensures both parties fulfill their obligations as outlined in the agreement and minimizes potential risks.
This document discusses types of contracts used in highway projects and standard bidding documents.
It outlines various types of civil works and services contracts such as EPC, item rate, lump sum, and BOT contracts. It also discusses FIDIC conditions of contract which are widely used standard bidding documents around the world.
Standard bidding documents promote uniform understanding of responsibilities and risks for all parties. They also help with training. FIDIC conditions are prevalent in India for major infrastructure projects funded by international financing institutions.
Construction lawprint-final-update-21112017DarrenTofu
This document provides an analysis and recommendations regarding contractual disputes that have arisen on a construction project using the FIDIC Red Book 1999 conditions of contract. It identifies issues such as delays in site handover, late payments, workmen being pulled off site, and schedule delays. It examines the general responsibilities of the main contractor, conditions guiding payment, contractual programming, testing and defects, and dispute resolution methods. The document aims to advise the contractor on addressing payment delays, the potential to suspend work or terminate the contract, and resolving disputes in accordance with the contract terms.
This document provides an overview and comparison of standard construction contracts, specifically the JCT and NEC contracts commonly used in the UK. It outlines the key types of construction contracts including lump sum, cost plus, cost reimbursable, design-build, and turnkey. The document then compares aspects of the JCT and NEC contracts related to time, cost, and quality. Some similarities between the contracts are noted, such as provisions for stating project timelines and handling variations/changes. Key differences are also highlighted, such as the JCT's more subjective tests for compensation versus NEC's objective tests, and differing approaches to defects processes and notifications.
CFW NEC Management of change under the NEC3 Rae Davies
The document provides an overview and agenda for a presentation on supply chain development and management of change under the NEC3 construction contract. The presentation covers early warnings, compensation events, and some key points to note. It discusses the NEC3 suite of contracts, core clauses, defined terms, communication protocols, risk registers, programmes, and the early warning process. The early warning process involves notifying issues, instructing a risk reduction meeting to discuss mitigation actions, and updating the risk register.
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Recycled Concrete Aggregate in Construction Part III
Cbb512 examination november_2011
1. CBB512 Page 1
Question 1
a) Discuss the effects of the issuance of the Certificate of Substantial
Completion (ICE)/Practical Completion (FIDIC).
b) What is the purpose of Liquidated Damages (ICE)/ Delay Damages
(FIDIC)
c) Discuss the effects of the issuance of the Defects Correction
Certificate (ICE)/Performance Certificate (FIDIC).
d) Discuss the purpose of including the Forfeiture (surrender) Clause and
Default Certificate clause in the Conditions of Contract.
Question 2
a) Define the “Bill of Quantities” and briefly discuss its objectives (pre-
tender and post tender).
b) What are variations?
c) Discuss the basis of valuation of variations in Civil Engineering.
d) Define “Provisional Sums” and “Prime Cost Items” and discuss the
reason(s) for inserting them in the bill.
e) What is the purpose of the numbers zero (0) and nine (9) in the bill of
quantities Item Numbering Column.
.
Question 3
a) Discuss the principal/primary contractual roles of the client and contractor
under the conventional contractual arrangement.
b) Overwhelming literature indicates that the engineer has conflicting roles
under the conventional contractual arrangement.
With an aid of a well annotated diagram discuss this statement and outline
the roles of the engineer during a construction contract.
c) The engineer is represented by his/her representative at site level;
however, the powers of the representative are limited.
i) Discuss why it is important to limit the powers of the engineer’s
representative?
ii) Give any five (5) powers that can not be delegated to the
engineer’s representative
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2. CBB512 Page 2
d) Discuss circumstances that may “frustrate” the execution of a construction
contract.
Question 4
a) Discuss the difference between assurance and insurance.
b) A strong wind caused the collapse of false work (system of temporary
work that facilitates completion of permanent works) at Francistown
thereby damaging fresh concrete beams and columns.
i) Suggest with reasons which party is liable for making good the
damages.
ii) Outline reasons why Insurance Companies may not accept the
above-mentioned risk.
c) Describe the purpose of the following bonds:
i) Retention bond
ii) Performance bond
d) Discuss the contractual obligations of the (i) contractor and (ii) client in
respect to “Care of the Works” during Defects Liability Period of a
construction project.
Question 5
a) Discuss the value of a job description and person specification by
stating clearly their function to the employer and prospective
employee.
b) Discuss the relevance and importance of the subject of Human
Resource Management to an engineer.
c)
i) What is Motivation
ii) Why are managers concerned with motivation?
iii) Use the basic motivational model to discuss the underlying
concept of motivation.
End of Examination Questions
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3. CBB512 Page 3
Question 1
a)
Effects of Issuance of the Certificate of Substantial Completion
The contractor is released fromhis contractual obligations when is accepted
by the Engineer on behalf of the employer by issuing Certificate of
Substantial Completion
Signal the start of the Defects Correction Period
Requires the responsibility of the care of the works to pass from the
contractor to the employer (has to effect immediate insurance)
Releases the first half of the retention money
b) Liquidated Damages
The contractor’s obligation is to complete within the period of completion; if he fails
to do so, the employer will be entitled to damages for late completion. These
damages are liquidated, which means the employer and contractor have agreed in the
contract a sum of money which will represent the total damage to the employer,
should the contractor complete late.
c) Defects Correction Certificate –
At the end of the period of Defects Correction, the defects correction
certificate is issued.
It marks that works have been finally completed to the satisfaction of the
engineer
It signals the finish of the contract works and thereafter the contractor has
no obligations for further work under the contract
It heralds the release of the second tranche of the retention monies and also
permits the contractor to submit his Final Account, which has to be
delivered to the Engineer within three months
d) Forfeiture and Default Certificate Clauses
There has to be security where the employer has paid the contractor ‘on
account’ before completion of work
Security necessary to guard against liquidation or serious breaches of
contractual obligations
Security must entail the right of entering the site, taking over the partially
completed works, & finishing them without incurring additional liability in
so doing
Right of access must be immediate and without the need to prove default or
obtain agreement from any one else.
The engineer issues the Default Certificate if the contractor is in Default;
the engineer should have issued a warning before issuing the Default
Certificate.
Question 2
a) The bill of quantities is a list of items giving brief identifying descriptions and
estimated quantities of the works that shall be comprised in a contract.
It is a basic control document governing the cost of the work to the client and
the whole income to the contractor
It provides information on the best estimate of items and quantities of work to
enable contractors to offer a price to construct that quantity of work
When a contract has been entered into, it provides a basis for the evaluation of
work actually completed and the progressive payment of the contractorfor the
completed work using re-measured quantities of actually completed work.
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4. CBB512 Page 4
b) Variations are changes in the detailed requirement of work both for methods of
construction or quality of work. For instance, when a new standard has been
developed the engineer may issue a variation order to enhance the quality of works.
c) .
Where a variation is for similar work carried out under similar conditions
(similar means any factor that has a cost consideration), the bill rates will apply
Where work is not of similar character or not carried out under similar
conditions, the engineer must fix the rate using bill rates as far as possible.
d) .
Provisional sums are put into the bill by the consultant to allow for
contingencies that may arise, the extent of which are unforeseen and cannot be
assessed.
Prime cost. The consultant where particular items of equipment are required and
for which a price has already been negotiated includes the prices. In addition,
the main contractor adds his handling charge (provision of accommodation and
necessary services, labour, and profits).
e) The numbers (0) and (9) are reserved for particular uses; 0 is used where there is no
description required by division in the work classification, and 9 is used to identify a
division description which is not a standard one given in CESMM.
Question 3
a) The employer (general)
– Employer's obligations are restricted to paying sums of money certified by the
Engineer, change of contract scope, appointment and termination of parties
to the contract, agents, and third parties, and approval of bonds and
surities
• Contractor (General)
– The Contractor is an entity whose tenderhas been accepted (he is a second party
to the contract)
– The contractor is responsible for construction of the works and their security
until employer takes over
– Contractors’ general obligations are to construct, complete & maintain works,
supply everything required for works completion including problems with
availability & delivery of materials, and difficulties with nominated
subcontractors
b)
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5. CBB512 Page 5
In conventional Civil Engineering, the consulting engineer is responsible for
design and for construction. The engineer is responsible for supervision of
construction and for equitable supervision of the contract. Therefore he has a
dual role during construction, (i) contract supervision (ii) contract administration
when he has to act fairly between the interests of the parties as a ‘quasi
arbitrator’.
c)
i) The engineer’s representative power are limited so that he does not commit
the client’s budget and/oralter the contractor’s method of construction since
he would not have been involved in the formation of the contract.
ii)
Valuation of Variations
Certifying the final account
Award of extension of time
Issue of certificate of substantial completion
Issue of Defects Correction Certificate
Certification of the Contractor’s default
Settlement of disputes
d) Frustration is the occurrence of an event that will curtail fulfilment of the contractual
obligations of the parties (e.g. overflowing lake, inclement weather, earthquake,
tremors, etc)
Question 4
a) Insurance is a contract whereby the insurance company shall be make good the
insured’s damages resulting from an anticipated foreseeable risk - an insurer may not
have to pay insurance because the risk may not occur. An Assurance covers an event
that is bound to happen – the only question is when?
b)
i) The client - Some risks are uninsurable e.g. war, nuclear explosion, radiation
and contamination. Therefore these risks are categorised as excepted risks to be
borne by the employer.
ii) Insurance companies can not insure for unforeseeable risks because the
obliterating effects can not be estimated for purposes of determining the
premium.
c)
i) Instead of deducting retention money from each certificate, the employer is
given a bond by the contractor equal to the sumthat would have been retained.
Useful for the contractor’s cash flow, particularly where payments are not in his
own currency and the money would have to be borrowed. [Usually 3% to 5% of
the certificate value]
ii) Performance bond. A guarantee that the contractor will perform all his
obligations under the contract. [It is usually approximately 10% of the contract
sum
d) Effects of Certificate of Substantial Completion signal the start of Defects
Correction Period. The effect is that the responsibility for the care of the works
passes from the contractor to the employer (employer has to effect immediate
insurance). This does not mean that the client absorbs damages due to poor
workmanship or use of sub-standard material. ( which are basically secured by half
retention).
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6. CBB512 Page 6
Question 5
a) .
JOB DESCRIPTION outlines (i) Job Title (ii) Place of Jobholder (iii) Overall Purpose of
the Job (iv) Principal Accountabilities [Key Tasks or Duties] (v) Nature and Scope of the
Job
PESRON SPECIFICATION sets out the (i) Education (ii) qualifications (iii) Training,
Experience, Personal Attributes,& Competencies of prospective jobholders: the person
specification forms the basis for the Advertisement and the whole Selection Process.
b) .
Relevance of Human Resource Management to the Engineer:
i) Effective recruitment and selection at site level
ii) Team building; Group Dynamics, and Team Working; Effecting Appropriate
Leadership Styles
iii) Motivating the Workforce
iv) Training and Development of Personnel
v) Effective Communication Skills
c)
i) Motivation is concerned with why people chose a particular course of action in
preference to others, and why they continue a chosen course of action, often
over a long period, and in the face of difficulties and problems
ii) Organisations are concerned about the performance of its employees. To
maintain and improve the performance of an organisation, attention must be
given to the level of motivation of employees. Contemporary managers are
expected to encourage staff to direct their efforts towards the objectives of the
organisation (this shall take place within the culture of the organisation).
iii)
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