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Project Management Ch4

PROJECT MANAGEMENT TOPIC 4: CONTRACT DOCUMENTS 4.1 INTRODUCTION Contract Documents are the documents in which the scope and the requirements of a project are comprehensively laid down. The different types of Contract are discussed in the last chapter. Whichever type of Contract is adopted the obligations and the responsibilities of the parties to the Contract, have to be defined in the Documents in a clear unambiguous form so as to enable the Contractor to assess his risks and responsibilities

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169 views

Project Management Ch4

PROJECT MANAGEMENT TOPIC 4: CONTRACT DOCUMENTS 4.1 INTRODUCTION Contract Documents are the documents in which the scope and the requirements of a project are comprehensively laid down. The different types of Contract are discussed in the last chapter. Whichever type of Contract is adopted the obligations and the responsibilities of the parties to the Contract, have to be defined in the Documents in a clear unambiguous form so as to enable the Contractor to assess his risks and responsibilities

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ltai_lai
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PROJECT MANAGEMENT TOPIC 4: CONTRACT DOCUMENTS

4.1 INTRODUCTION
Contract Documents are the documents in which the scope and the requirements of a project are comprehensively laid down. The different types of Contract are discussed in the last chapter. Whichever type of Contract is adopted the obligations and the responsibilities of the parties to the Contract, have to be defined in the Documents in a clear unambiguous form so as to enable the Contractor to assess his risks and responsibilities and price for the Works required to be carried out by him in a realistic manner. In these documents the obligations and responsibilities of the parties to the Contract as well as the Architect's/Engineer's powers, duties and functions which flow from such a Contract are defined. The smooth operation of a Contract depends largely on the clarity and adequacy of the Contract Documents. The Tender/Contract Document adopted for Measurement Contract based on approximate Bill of Quantities will comprise of the following elements: (1) Instruction to Tenderers (2) Form of Tender and Appendix (3) Form of Agreement (4) Form of Bond (5) Conditions of Contract (6) Special Conditions of Contract (7) Specifications (8) Bill of Quantities (9) Day work Schedule (10) Contract Drawings If the type of contract is not based on the Bill of Quantities basis, but based on Drawings & Specifications, Schedule of Rates, or Prime Cost then some of the elements set out above will not be required. A Fixed Price Contract based on Drawings & Specifications does not normally contain a Bill of Quantities. However, in order to cope with possible variations to the Works covered by the Contract a Schedule of Basic Rates is sometimes called for from the Contractor to determine the value of such variation.

Revised March 2006

PROJECT MANAGEMENT TOPIC 4: CONTRACT DOCUMENTS


The Tender Documents issued to prospective Tenderers are in effect pro forma Contract Documents. They are provided in advance in a prescribe form. When a Tenderer fills in the blanks in these documents and sends them to the Employer it is an offer. If the tender (offer) is accepted by the Employer, these documents together with any amendments, modifications and amplifications that are agreed upon before the final acceptance of the tender become the Contract Documents governing the performance of the object or objects expressed in the Contract.

4.2 Instruction to Tenderers


The instruction to Tenderers is usually the first section included in the bound volumes of the Tender Documents. The purpose of this section is to ensure that all Tenders are properly prepared and delivered so that they may be evaluated on an equal basis. These Instructions will vary on every project but some of the more usual and important items to be included would be as follows: (a) (b) (c) Instructions on filling in Tender forms. Data to accompany Tenders, e.g. documents to be submitted with tender, programme, letter of capacity (for open tender) etc. Admissibility of alternative designs. Instructions on whether tender on alternative designs will be considered and, if so, the conditions under which they may be submitted. Validity Period and Price Variations. Delivery of Tenders, e.g. the place, date and due time for delivery of Tenders. Special Conditions: Notes on access and any unusual site conditions should be stated. Instructions on completion of the Bills of Quantities, Schedule of Rates and the requirement for Tender Bond, if any, should be stated.

(e) (f) (g) (h)

Revised March 2006

PROJECT MANAGEMENT TOPIC 4: CONTRACT DOCUMENTS 4.3 Form of Tender


The Form of Tender is the part of the document the tenderer is required to make an offer to execute the Works by filling in the tender sum and company information with signatures. We, the undersigned, hereby tender and offer to design, supply, install, test and commission all the works specified herein together with one year of maintenance period for the lump sum price _____________________________________________________________________ ($) _______________ . The Form of Tender is accompanied by an Appendix which forms part of the Tender. In the Appendix figures which need to be inserted under the various clauses in the Conditions of Contract are filled in.

4.4 Form of Agreement


The Form of Agreement is the formal document confirming the existence of a Contract between the Employer and the Contractor. In the execution of large contracts it is general for the Employer to insist that formal agreements are executed.

4.5 Form of Bond


The Form of Bond is the legal document by which the Contractor. It is a performance bond for the Contract in a sum usually not exceeding 10 per cent of the Tender Sum.

4.6 Conditions of Contract


The Conditions of Contract define the terms under which the Works are to be executed and maintained and set forth obligations and liabilities of the parties to the Contract. For the private sector, the commonly use standard format is the lump sum contract or measurement contract called Articles and Conditions of Building Contract prepared by the Singapore of Institute Architects (SIA). For the public sector the standard conditions of contract by BCA is used.

4.7 Special Conditions of Contract


The standard Conditions of Contract is drafted to suite the general situation. It is impossible for the standard Conditions of Contract to cover all. There may be conditions in the standard Conditions of Contract that the Employer wants to change. The Special Conditions of Contract are essentially those which have to be added to suit a particular situation. All these additional conditions and revised conditions will be stated in a document called Special Conditions of Contract. It supersedes the clauses in the standard Conditions of Contract

Revised March 2006

PROJECT MANAGEMENT TOPIC 4: CONTRACT DOCUMENTS 4.8 Specifications


The scope of works together with the general and technical requirements of a project is described in the Specification. This can be a very detail document that describes the standard and quality of materials and workmanship of different types of work in the project.

4.9 Bill of Quantities


A Bill of Quantities is a complete list of work items with descriptions with the required quantities to complete the building under the Contract. The document becomes priced when the Tenderers invited to do so insert rates against these items of work. The product of the rate and quantity of each item will be the cost of that item. The sum of all items will used to compute the contract sum.

4.10 Daywork Schedule


The Conditions of Contract empower the Architect to order additional work or substituted work to be executed on a daywork basis if in his opinion it is considered necessary or desirable to do so. The Conditions of Contract stipulate that the Contractor shall be paid for work ordered to be carried out on daywork basis under a Daywork Schedule included in a Bill of Quantities. It is a list of rates for the skilled workers of different trades and unskilled labourers.

4.11 Contract Drawings


The Contract Drawings are the drawings on which the Works are to be carried out on which the Contract price is based. 'Drawings' as those referred to in the Specification and any modifications of such drawings as may from time to time be furnished or approved in writing by the Architect/Engineer.

Revised March 2006

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