Specification and bill

of quantity

Bezawork geremew
Course Objectives & Competences to be acquired

This course introduces students to the economic and

managerial processes extending from an architectural office to
the building site.

The course establishes coordinates of how the design

processes extends to the construction process (Building as a
process) and focuses on specification writing, the preparation
of BOQ, supervision, contract administration
Course content

❏ Preparation of Specifications and bills of

quantities
❏ Supervision
❏ Contract Administration
❏ Funding of construction projects
 Specification

Why do we need to specifie ?

What does it mean by specifie?
Preparation of Specifications and bills of quantities

Preparation of Specifications

Specifications ;” are that portion of the Contract

Documents consisting of the written requirements for
materials, equipment, systems, standards and
workmanship for the Work, and performance of related
services”. BY AIA
 Purpose of specifications

I. Guide the bidder at the time of tendering to arrive at a

reasonable cost for the work.
ii. Provide guidance for the execution of the work
iii. Guide contractor for the purchase of materials
iv. Serve as part of contract document to limit and
describe the rights and obligations of each contracting
parties.
 Purpose of specifications

v. Guide the bidder to identify his capacity to execute the

work
vi. Serve as fabrication and installation guide for
temporary and permanent works.
vii. Guide the contractor for purchase and/or hiring of
equipment.
viii. Serve the owner to know what she/he is intended to
receive.
 Purpose of specifications

ix. Serve for the manufacturers of construction materials,

equipment, tools etc. to grade, classify, and improve
qualities of their products.
x. Indicates method of testing and acceptance of final
products.
xi. Guide parameters for rejection of non-conforming
works.
 Purpose of specifications

Why do you we focus on guiding?

 Design document=Drawing +specification

Specification Drawing
• Type and quality of materials, equipment,
• Dimensions, extents, size, shape, and
labor or workmanship
location of component parts.
• Methods of fabrication, installation and
• Location of materials, machineries and
erection
fixtures.
• Standards, codes and costs
• Interaction of furniture, equipment and
• Allowance submittals and substitutions space.
• Cost included, insurance and bonds • Schedules of finishes, windows and
• Project record and site facility doors
 Specification types

1 .General specification; apply to 2.Technical specification ; apply

the work as whole to each of work
● Description of the site A. Material and Workmanship
● Reference to the contract drawings Specification
● Work or material to be provided by the B. Performance Specification.
owner/contractor
● Reference to external documents
● General site condition
● Architects site office and transportation
● Staff cases Quality control of materials
 Material and Workmanship Specification

● ASTM
● ACI
● CSI
● SABS
● IS
● BS
○ ETHIOPIAN STANDARDS [EBCS]
 Material and Workmanship Specification

Material Specifications
For some items may focus on the physical and or chemical
properties that can also be cross checked by tests and for
others the performance characteristics may be the governing
factors. In some cases, a composition of the two types may be
also applicable.
 Material and Workmanship Specification

Workmanship Specifications:
describes the desired results that need to be achieved in the works which
include;
▪ Specify the desired results as to the quality of workmanship
▪ State any detailed construction methods or procedures necessary for
the accomplishment of particular purposes.
▪ Stipulate any desired limitations or restrictions to be placed on the
contractor's methods in the interest of coordination of the work.
▪ Give any precautions necessary for the protection of the work or
adjacent property.
▪ Specify the methods of inspection and tests to which the work is to be
subjected
 Performance Specifications

Such types of specification, define the performance requirements for

machinery and plant operating equipment.
● Proprietary Specifications
● Performance Specifications
● Reference Specifications
● Descriptive Specifications
● Cash Allowance Specifications
Specifications; cases

Examples of specification problem

Tender specific problem
Quantity surveying

Specifications; cases
Specifications; cases
Bill of Quantity
● Quantity surveying
● Cost estimation
Quantity surveying
 Quantity surveying may cover

● Preparation of Specification •
● Taking measurements of civil works (Taking off quantities and
preparing BOQ)
● Preparation of approximate (preliminary) cost estimate at the
very early stage of the project
● Preparation of detail cost estimate at different stages (taking as
built measurements and preparing payment certificates or
approval of payment certificates prepared by taking
measurements)
● Valuation of property
 The purpose of quantity surveying

● To assist the client to have an accurate estimate

● To assist in the accurate preparation of tenders
● To give an accurate checklist of work accomplished
● To assist in the certification of payments
● To give insight into the required variation work amounts.
 quantity surveying

● Measurement of civil works

● The Process of Quantity Surveying.
 Measurement of civil works

Measurement of civil works includes the billing of each trade of work

either from drawings or the building itself for defining the extent of
works under each trade.
A. Principles of Measurement
B. units of Measurement
C. Degrees of accuracy in Measurement
 The Process of Quantity Surveying

Mensuration – the calculation of geometric quantities such as

length, area, and volume, from dimensions and angles that are
already known.

Girth (perimeter) computation –linear measurement.

In- to- in and out- to-out method

Centre line method –for symmetrical wall

 The Process of Quantity Surveying

There are four clearly defined steps in preparation of

Bill of Quantities:
A. Taking off
B. Squaring
C. Abstracting
D. Writing the final Bill of Quantity

Column 1: Timesing column

Column 2: Dimension column
Column 3: Squaring column
Column 4: Description column
The Process of Quantity Surveying
The Process of Quantity Surveying
Tasks in take off

• Describing the item

• Bracketing (relating the description to the quantity)
• Timising
• Dotting on (adding to the timising factor)
• The Ampersand (ditto)
• Waste calculations
• Deduction of items
• Correction of dimensions (nullifying)
 Basic principles of taking Off

• Drawings shall be fully understood and clearly detailed.

• Works, which cannot be measured accurately, shall be expressed as
provisional quantity (PQ) and will result in provisional sum (PS) and lump
sum (LS)
• There shall be the understanding that measurements are taken to the
nearest cm.
• Built items shall generally include all possible entrants like labor, materials
(including storing, loading, unloading and handling), fixing, use of plant and
equipment, wastage of materials, equipment; which will result in a better
process for establishing prices and profit.
• Prior knowledge of the regulations is necessary (For E.g. roofing is
measured in horizontal projection).
• Measurements of civil works shall be carried out in such a way that it can be
easily checked and audited.
Cost estimation
Purposes of Cost Estimation

❏ Determine actual cost per unit of item

❏ Identifying engineering estimate of the work for bidding purpose
❏ Work out economical use of materials, labor and equipment
❏ In cases of variations to determine the extra cost to be incurred
❏ When changes in cost due to legislation happens
❏ to work out the escalation in cost
Project Cost includes:

❏ Preliminary investigation (project appraisal costs)

❏ Design and supervision (consultancy cost)
❏ Construction works (contractor’s cost)
❏ Land owning cost, and
❏ Monitoring costs
 Information required for cost estimation :

❏ Correct information of the market price of the materials at the time

of need to be used as a basic price
❏ Correct information of the rates of various categories of skilled and
unskilled laborers as wage rates to be used for daily work rate
❏ Output of laborers per day for various types of items (productivity)
❏ Correct information of the rates of various categories of equipment
and tools as rental rates to be used for major items of rates
❏ Up-to-date knowledge of the construction methods
 Types of cost estimation

❏ Preliminary /approximate costing

❏ Detailed cost estimate (based on item rate)
 Preliminary /approximate costing

❏ Cost per functional unit

❏ Plinth area method cost per m2
❏ Cubical Content method –cost per m3
 Detailed cost estimate

❏ Total construction cost= direct cost+indirect cost

 indirect cost

❏ Head office overhead costs

❏ Site overhead costs;
❏ Risk Allowance
❏ Profit and Income Tax
 Direct cost

❏ Direct material costs

❏ Direct labor costs
❏ Direct equipment costs
❏ Subcontract costs
 Rate analysis Rate

Rate Analysis is the process of fixing cost per unit of measurement for
the different item of works.
Total cost per unit of work (TC): Direct cost (DC) + Indirect cost (IC)
➢ DC includes cost due to material (MC), cost due to labor (LC), cost
due to equipment (EC),
➢ IC covers overhead costs, and contractors’ profit
 Rate analysis Rate

Direct cost = material cost +equipment cost +labor cost

Material cost= cost of the material from market
Labor
 Rate analysis Rate

Labor
❏ Method
❏ Crew composition
❏ Output
❏ Utilization factor
❏ Indexed labor cost per unit
 Rate analysis Rate

EQUIPMENT
❏ Method/ Equipment selection
❏ Equipment required per unit
❏ Output
❏ Utilization factor
❏ Critical Resource
❏ Cost of equipment rental/ purchase
Rate analysis Rate
Contract and Contract
administration
 Contract

Contract is a written agreement between or among two or more parties

whereby each party promises to do or not to do something and agrees to
terms (conditions and Warranties) set out in the contract.
A construction contract is a product of an agreement between the
employer & the contractor & it is enforceable at law
not all agreements or promises are contracts
 Legal Definition

According to Article 1675 of the Civil Code of Ethiopia: “A contract is an

agreement whereby two or more persons as between themselves create,
vary or extinguish obligations of a proprietary nature
 The purposes of a contract in construction

Why Use Contracts in Construction?

• To describe scope of work
• To establish time frame
• To establish cost & payment provisions
• To set forth obligations & relationships
• To manage multiple risks
• To establish control mechanisms
• To minimize disputes
• To improve economic return on investment
 Legal Definition elements

Elements of a Contract According to Article 1678 (Elements of Contract)

of the Civil Code: No valid contract shall exist unless:
• The parties are capable of contracting and give their consent
sustainable at law.
• The object of the contract is sufficiently defined and is possible and
lawful.
• The contract is made in the form prescribed by law.
 Legal Definition elements

Elements of a Contract According to Article 1678 (Elements of Contract)

of the Civil Code: No valid contract shall exist unless:
• The parties are capable of contracting and give their consent
sustainable at law.
• The object of the contract is sufficiently defined and is possible and
lawful.
• The contract is made in the form prescribed by law.
 What contract need to fulfill

The following are the fundamental elements of contract.

A. Capacity of the contracting parties;
B. Consent of the contracting parties;
C. Object of the contract; and
D. Form of contract, if any;
E. Contract time
 Elements of contract

A. Capacity;
Capacity means competence to enter into a legally binding agreement.
Parties entering into an agreement or contract shall, therefore, be
capable of contracting
Legal capacity is of two types.
• Personal (Own) capacity; and
• Representative (Agent) capacity;
 Elements of contract

Capacity of persons is legally presumed unless the contrary is proved.

Persons could be:-
• Natural (physical) persons; or
• Juridical (legal) persons;

Who may not have (legal) capacity to enter into contract & bind
themselves?
About agent we need to check the power with respect to the project
stage?
 Elements of contract

B.Consent
Consent is a declared will of the individual to enter in to contract. It is the
willingness of the parties to enter in to a legally binding relation
• Offer; and
• Acceptance
Offers and acceptance made by
• Orally;
• In writing;
• By sign; By conduct; and
• By specially stipulated manner for acceptance.
 Elements of contract

C. Object of Contract
The object of contract is the very obligations of the contracting parties
• Obligation to do (perform);
• Obligation not to do; or
• Obligation to deliver;
 Elements of contract

D. Form
Form may mean types of contract
form is related with the validity & proof of the contract itself
 Elements of contract

Types of contract

A. Lump sum fixed price contract

B. Lump sum fixed price and escalation contract
C. Lump sum fixed price and schedule rate contract
D. Lump sum fixed price with escalation and schedule rate contract
E. Unit rate contract
F. Unit rate and escalation contract
G. Schedule rate contract
 Elements of contract

Types of contract

H. Schedule rate and escalation contract

I. Cost plus percentage of cost contract
J. Cost plus fixed fee contract
K. Cost plus percentage of cost with guaranteed maximum cost contract
L. Cost plus fixed fee with guaranteed maximum cost contract
M. Target cost incentive contract
 Elements of contract

E.contract time
The period of the contract should be specified clearly in the contract
Tender document (standard bidding document)
Tender document (standard bidding document)
 Tender document (standard bidding document)

The tender documents(standard bidding document or SBD) become contract

documents if completed by the prospective contractor, and finally agreed &
signed by the parties.
 Tender document (standard bidding document)

THREE PARTS OF THE DOCUMENT

I. The Legal Part
• The Contract Agreement;
• The (latest) Minutes of Meeting, if any;
• The Letter of Acceptance(Award);
• The Tender ( NB: Including the Appendix to Tender, if any);
• The Special Conditions of Contract;
• The General Conditions of Contract;
 Tender document (standard bidding document)

II. The Commercial Part

• The Performance Security Form;
• The Payment Security Form
• The Advance Payment Guarantee Form;
• The Bid Security Form;
• The Insurance Forms;
• The Retention Money Security Form; Others, if any
 Tender document (standard bidding document)

III. The Technical Part

▪ The Technical Specifications;
▪ The Drawing;
▪ The Bill of Quantities;
▪ Others, if any;
 Condition of contract

The condition of contract is a document that states the obligations and rights of the
parties and detail conditions under which the contract is to be carried out
In Ethiopia Construction Industry the following standard conditions of contracts are
commonly used:
▪ FIDIC (1987) – Condition of Contract
▪ PPA, Standard Bid Document
▪ MoWUD, Standard Condition of Contract (1994)
▪ BaTCoDA, Condition of Contract
JCT
¤AIA RIBA NEC
 Content Condition of contract

Some of the subjects to be defined in the conditions of contract are:-

● Definitions & interpretations
● Duty & responsibilities of the engineers
● Contract period
● Method of payment and periods
● Retention money
● Payment for materials on site
 Condition of contract

• Payment for variation orders

• Escalation (wages, cost of materials)
• Procedures on subcontracting
• Insurance & indemnities
• Liquidated damages
• Granting of extension time
• Conditions for contract termination
 characteristics of contract

Characteristics of a “good” contract document:

1.Carefully considered
2.Expressed clearly
3.Time-tested
4.Comprehensive
5.Fair
6.Balanced
7.Applicable to the elements of a construction projects
 Condition of contract

The Standard Conditions of Contract for the purpose of the procurement of Works
have been prepared for International Competitive Bidding (ICB) & National
Competitive Bidding (NCB), separately.
User’s Guide has been also prepared, separately, both for the ICB & the NCB. The
Conditions of Contract have been also prepared both in Amharic & English
language. The conditions of contract are based on Design-Bid-Build project
delivery system

The type of contract could be based on BOQ, in which case it becomes

measurement based. Or based on Activities Schedule, in which case it becomes
lump sum.
 Condition of contract

The documentation is divided into the following three parts,

i. Bidding Procedure;
ii. Schedule of Requirements; and
iii. Contract;
 Condition of contract

i. Bidding Procedure and Documentation

Section 1: Instruction to Tenderers (ITB);
• General;
• Bidding Documents;
• Preparation of Bids;
• Submission of Bids;
• Bid Opening & Evaluation;
• Award of Contract;
Section 2: Bid Data Sheet (BDS)
 Condition of contract

i. Bidding Procedure and Documentation

Section 3: Evaluation & Qualification Criteria (EQC)
• Average Annual Volume of Construction Work;
• Experience as Prime Contractor;
• Acquisition of essential Equipment( by way of ownership, hire or
lease);
• Personnel;
• Liquid Assets and/or Credit Facilities;
• The issue of Joint Venture; Countries
 Condition of contract

i. Bidding Procedure and Documentation

Section 4: Bidding Forms
• Bid Submission Form;
• Priced Schedules (BOQ or Schedule of Activities);
• Bid Security;
• Qualification Information;
Section 5: Eligible Countries
 Condition of contract

ii. Schedule of Requirements and Documentation

Section 6: Schedule of Requirements
• Scope of Works;
• Technical Specification;
• Drawings;
• Bill of Quantities or Activity Schedule;
 Condition of contract

iii. Contract and Contract Documentation

Section 7: General Conditions of Contract
• The GCC is composed of 62 Clauses.
• It contains the following parts.
• General; (Clause 1-Clause 26)
• Time Control; (Clause 27-Clause 32)
• Quality Control; (Clause 33-Clause 36)
• Cost Control; (Clause 37-Clause 54)
• Finishing the Contract; (Clause 55-Clause 62)
 Condition of contract

iii. Contract and Contract Documentation

Section 8: Special Conditions of Contract (SCC)
Section 9: Contract Forms • Which includes:
Agreement;
Performance Bank Guarantee; Performance Bond;
Advance Payment Guarantee;
 Contract administration

Contract administration
 Contract administration

Identifying contractual responsibilities of Stakeholders;

• Reviewing the Terms of Contract Documents
• Extract Monitoring Responsibilities
• Preparing Monitoring Responsibility Summary Sheets.
 Contract administration

TIME
Time is an extremely important issue in construction. Together with cost and
quality, it is a primary objective of project management, and a major criterion
by which the success of a project is judged.
We have five issues related to time in construction project
● Commencement
● Progress
● Completion
● After completion
○ Defect liability period
● Time extension
○ Liquidated damage
 Contract administration

Payment
The provisions relating to payment concern the way the contractor is paid by
the employer. The primary obligation upon the employer is to give the
contractor the sum of money which forms the consideration for the contract
Contract Price
Time of Payment
Guarantees and Bonds
Price Adjustment
Contract administration

Time of Payment
● Advance payment
○ Advance reimbursement schedule
● Interim payment
○ Previous payment
○ Advance repayment
○ Retention
● Final payment
● Retention
 Contract administration

Guarantees and Bonds

A bond or guarantee is an arrangement under which the performance of a contractual
duty owed by one person (A) to another (B) is backed up by a third party (C). What
happens is that C promises to pay B a sum of money if A fails to fulfill the relevant duty.
In this context A is commonly known as the principal debtor or simply principal; B is
called the beneficiary; and C is called the bondsman, surety or guarantor.
❏ Bid bond
❏ Performance bond
❏ Payment bond
❏ Advance payment bond
 Contract administration

❏ Claims and disputes

claim is a request for compensation for dealing with a situation
that differs materially from what was anticipated by the parties at
the time of entering into the contract.
❏ Variation
Variation work is the work that can be imposed with in the
contract documents. It is a change or alteration to the plans
or specifications for a number of reasons implicit in the
original agreement,
Supervision
 Supervision

Construction Inspection/supervision: the process

of ensuring Achievements of targets/ Objectives (cost,
time and quality) which has been set at the planning stage.
 Supervision importance

● Supervision is important to ensure that the structures or works being

executed are constructed according to Design, Specification, code
requirements as well as accepted practice.
● to ensure compliance with technical requirements, government
regulations and accepted levels of workmanship.
● Structures may be designed correctly, but if the actual construction
is carried out with faulty supervision, the intention of the design
works may not be accomplished, resulting in unsafe, and/or
unacceptable structures
 Supervision

If the work is executed with faulty supervision, it may result in

● Change in the intention of the designer
● Unsafe and/ or unacceptable structure
● Additional costs to the employer
● Unnecessary delay
● Poor quality of work, …etc
Supervisor skills

In exercising the duties of inspection, in addition to

the contractual role, the inspector is required to
developed and be competent in skills that will assist
him in effectively carrying out his duties.including
● Observation skills
● Technical skills or competence
● Interpersonal skills
 Supervisor skills

● Communication skills
● Negotiating
● Problem solving skills
○ Problem definition
○ Decision making, “ the right decision at the right time”
● Analytical skills
○ Looking at the big picture of the effect of the decision
 supervisor is accountable for

➢ Unauthorized absenteeism from site.

➢ Acceptance of un-checked works.
➢ Acceptance of materials that do not conform to specifications.
➢ Inclusion of un-executed works in payment certificates.
➢ Failure to make reports and to prepare measurements on the contractual
bases.
➢ Failure to fully carry out his duties as specified above and in accordance
with contract requirements.
Supervision and reporting format

different Reporting formats and documents

▪ Site Book
▪ Site Diary
▪ Correspondence letters
▪ Weekly Report
▪ Monthly Report
▪ Payment Certificate
Supervision and reporting format

different Reporting formats and documents

▪ Requisition for Material Testing
▪ Requisition for Drawings
▪ Work Order
▪ Resident Engineer’s Instruction
▪ Control and Approval form for different construction Stages
▪ Approved Variations
▪ Claims Filled