The document discusses contract administration for construction projects. It defines what a contract is and outlines the key elements that must be present for a legally binding contract. It then discusses the role of contracts in construction projects to document obligations of parties and apportion risks. Common forms of construction contracts used in Kenya are also outlined, including the contract documents that make up each type of contract. The role of the construction contract administrator is defined as making timely decisions to enable project completion as outlined in the contract. Qualities of a good administrator and challenges faced in Kenya are also summarized.

1. BORAQS CANDIDATES
PREPARATION 2018
CONTRACT ADMINISTRATION
BY: QS AARON GITONGA

2. DIFFERENT
INTERESTS BUT
SHOULD PULL
TOGETHER IN
ONE
DIRECTION

3. END OF CONTRACT

4. WHAT IS A CONTRACT?
• BUSINESS DEFINITION: A CONTRACT IS A VOLUNTARY, DELIBERATE, AND LEGALLY BINDING
AGREEMENT BETWEEN TWO OR MORE COMPETENT PARTIES. CONTRACTS ARE USUALLY WRITTEN BUT
MAY BE SPOKEN OR IMPLIED.
• A BINDING CONTRACT SHOULD HAVE THE FOLLOWING:
I. AN OFFER
II. ACCEPTANCE OF THE OFFER
III. VALID CONSIDERATION (LEGAL AND VALUABLE)
IV. CONVERGENCE OF EXPECTATION
• IN CONSTRUCTION, MOST AND THE ENCOURAGED CONTRACTS ARE WRITTEN CONTRACTS.

5. WHAT IS THE ACTUAL ROLE OF THE
CONTRACT
• THE ROLE OF THE CONTRACT IS TO DOCUMENT THE ROLES OF AND
OBLIGATIONS OF THE CONTRACTING PARTIES AND APPORTION RISKS TO THE
PARTIES.
• THE IN CONSTRUCTION, CONTRACT GUIDES THE INTERACTIONS BETWEEN THE
PARTIES TO THE CONTRACT AND ENSURES THAT THEIR INTERESTS ARE
COVERED IN AN EQUITABLE WAY AND FURTHER ENSURES THAT THERE IS
SMOOTH EXECUTION OF A PROJECT.
• AS A CONTRACT ADMINISTRATOR, YOUR ROLE IS TO GUIDE THE CONTRACTING
PARTIES TO ENSURE THAT THEY FULFILL THEIR OBLIGATIONS AS PER THE
PROVISIONS OF THE CONTRACT.

6. WHY DO WE NEED A
CONTRACT FOR
CONSTRUCTION WORKS
• TYPICALLY A CONSTRUCTION CONTRACT HAS TWO PARTIES,
THE EMPLOYER AND THE CONTRACTOR. THE INTERESTS OF
THESE TWO PARTIES ARE DIFFERENT.
• THE EMPLOYER IS INTERESTED IN GETTING THE DESIRED
CONSTRUCTION PIECE OF THE HIGHEST QUALITY, AT THE
LOWEST COST AND WITHIN THE SHORTEST TIME.
• ON THE OTHER HAND, THE CONTRACTOR IS TYPICALLY
INTERESTED IN DELIVERING AN ACCEPTABLE PIECE OF
CONSTRUCTION EMPLOYING ALL POSSIBLE MEANS TO
MAXIMIZE THEIR PROFITS.
• THE MAIN DEFINITIONS OF A CONSTRUCTION PROJECT ARE
SCOPE/ SPECIFICATIONS, BUDGET AND TIME SCHEDULE.
THESE NEED TO BE CLEARLY DEFINED AND AGREED UPON BY
THE CONTRACTING PARTIES.

7. COMMON FORMS OF CONTRACT FOR
CONSTRUCTION WORKS IN KENYA
• THERE ARE THREE FORMS OF CONTRACT THAT ARE MOSTLY USED IN KENYA.
THESE ARE: -
I. AGREEMENT AND CONDITIONS OF CONTRACT FOR BUILDING WORKS – PUBLISHED
BY THE JOINT BUILDING COUNCIL, KENYA
II. PUBLIC PROCUREMENT OVERSIGHT AUTHORITY STANDARD FORM (PPOA)
III. FIDIC STANDARD FORMS OF CONTRACT

8. AS PER JBC (KENYA) CONDITIONS OF
CONTRACT; CONTRACT DOCUMENTS
COMPRISE OF:
• AGREEMENT AND CONDITIONS OF CONTRACT (GREEN BOOK, CURRENTLY
UNDER REVIEW)
• CONTRACT DRAWINGS
• CONTRACT BILLS OF QUANTITIES
• SPECIFICATIONS
• ANY ADDENDUMS TO THE PROVISIONS IN THE AGREEMENT AND CONDITIONS
OF CONTRACT

9. AS PER PPOA STANDARD FORM AND
CONDITIONS OF CONTRACT, CONTRACT
DOCUMENTS COMPRISE OF (IN ORDER OF
HIERARCHY):
• AGREEMENT CONTRACT DRAWINGS
• LETTER OF ACCEPTANCE
• CONTRACTOR’S TENDER
• APPENDIX TO CONDITIONS OF CONTRACT
• SPECIFICATIONS
• DRAWINGS
• BILLS OF QUANTITIES
• ANY OTHER DOCUMENTS LISTED IN THE APPENDIX TO CONDITIONS OF CONTRACT AS
FORMING PART OF THE CONTRACT

10. FIDIC FORMS OF CONTRACT
• FIDIC HAS BEEN IN EXISTENCE SINCE 1913 AND OVER TIME THEY HAVE
DEVELOPED SEVERAL FORMS OF CONTRACT. THE ONES THAT ARE POPULAR
CURRENTLY ARE:
FIDIC
contract Year released Notes
The (new) Red
Book
Released in 1999. The Red Book is suitable for contracts that
the majority of design rests with the
Employer.
The (new)
Yellow Book
Released in 1999. The Yellow Book is suitable for contracts that
the contractor has the majority of the design
responsibility.
The Silver Book Released in 1999. The Silver Book is for turnkey projects. This
contract places significant risks on the
contractor. The contractor is also responsible
for the majority of the design.
The Pink Book First published 2005 – an
amended version was
published 2006, with a further
edition in June 2010.
This is an adaptation of The Red Book created
to fit the purposes of Multilateral
Development Banks.
The Gold Book Released in 2008. This is FIDIC’s first Design-build and operate

11. AS PER FIDIC FORMS CONTRACT DOCUMENTS
COMPRISE OF:
(IN ORDER OF HIERARCHY)
• THE CONTRACT AGREEMENT
• THE LETTER OF ACCEPTANCE (THIS IS THE FORMAL ACCEPTANCE OF THE CONTRACTOR'S
TENDER AND MARKS THE FORMATION OF THE CONTRACT)
• THE LETTER OF TENDER
• PART II – THE CONDITIONS OF PARTICULAR APPLICATION
• PART I – GENERAL CONDITIONS OF CONTRACT
• THE SPECIFICATION AND DRAWINGS (RED BOOK), THE EMPLOYER’S REQUIREMENTS (YELLOW
BOOK), THE SCHEDULES (RED AND YELLOW BOOKS)
• FURTHER DOCUMENTS (IF ANY), LISTED IN THE CONTRACT AGREEMENT OR IN THE LETTER OF
ACCEPTANCE.

12. WHAT IS THE ROLE OF CONSTRUCTION
CONTRACT ADMINISTRATION?
• IN PLAIN TERMS, CONSTRUCTION CONTRACT ADMINISTRATION INVOLVES
MAKING DECISIONS AND THE TIMELY FLOW OF INFORMATION AND DECISIONS
TO ENABLE COMPLETION OF THE PROJECT AS REQUIRED BY THE CONTRACT
DOCUMENTS INCLUDING REVIEW AND OBSERVATION OF THE CONSTRUCTION
PROJECT.

13. WHAT ARE THE
FRUITS OF
SUCCESSFUL
CONTRACT
ADMINISTRATION
1. PROJECT THAT IS DELIVERED AS
PER THE PROVISIONS OF THE
CONTRACT AND AMENDMENTS
THEREIN.
2. ALL DISPUTES AND DIFFERENCES
ARISING DURING EXECUTION OF
THE PROJECT BEING SETTLED.
3. ALL PARTIES INVOLVED IN THE
EXECUTION OF THE WORKS
BEING COMPENSATED FOR THE
WORK DONE.

14. QUALITIES OF A GOOD CONTRACT
ADMINISTRATOR
• ABILITY TO INTERPRET PROVISIONS OF A CONTRACT CORRECTLY
• EXCELLENT PEOPLE SKILLS AND ABILITY TO INFLUENCE PEOPLE.
• EXCELLENT NEGOTIATION SKILLS
• DISPUTE RESOLUTION SKILLS ESPECIALLY MEDIATION
• PROBLEM SOLVING SKILLS AND ATTITUDE. SHOULD BE SOLUTION ORIENTED.
• FAST LEARNER
• EXCELLENT COMMUNICATION SKILLS
• KEENNESS TO DETAIL
NB: IT IS IMPORTANT TO EVALUATE YOURSELF BASED ON THE ABOVE AND
IMPROVE ON AREAS OF DEFICIENCY

15. CHALLENGES ENCOUNTERED BY CONTRACT
ADMINISTRATORS IN KENYA
• PARTIES TO THE CONTRACT NOT DISCLOSING USEFUL INFORMATION THAT HAS
IMPACT ON THE PERFORMANCE OF THE PROJECT.
• EMERGING PLAYERS THAT SPREAD THE RESPONSIBILITY OF CONTRACT
ADMINISTRATION.
• LACK OF LOCALIZED STANDARD FORMS OF CONTRACT THAT COVER THE
EMERGING FORMS OF CONTRACT ENGAGEMENTS E.G. DESIGN AND BUILD; BOOT
• IMPUNITY THAT LEADS TO OUTRIGHT DISREGARD OF CONTRACT PROVISIONS.
• CORRUPTION AND POOR PROFESSIONAL ETHICS