CVL 245

CONSTRUCTION MANAGEMENT
LINE OF BALANCE AND LINEAR
SCHEDULING METHOD
`
 ADVANTAGES OF NETWORK
SCHEDULING
(a) Facilitates focusing attention on specific objectives
(b) The results of planning activities can be seen
(c) Mathematical computation for determining parameters such as early and late start and
finish dates can be easily carried out
(d) Activities on the critical path and those with float can be easily identified
(e) Facilitate identification of possible conflicts in the schedule of activities, in terms of
sharing of resources, etc.
(f) Facilitates drawing up of summaries, monitoring and review reports
(g) Provide an overall graphic master plan of a complex project, clearly showing job
interrelationships
(h) Helps in drawing up alternative plans of work
(i) Cost-time studies can be carried out and an optimum project duration
CONSTRUCTION CONTRACTS
 BIDDING PROCESS

•Startswith the owner inviting parties to

‘bid’ for a project and culminates in a
contract being signed between the owner
and a party identified to carry out the job
has been called the bidding process.
 Request for proposals
• By issuing a Request for Proposal, the buying
agency is asking interested vendors to submit
more than just the price they would charge to
complete the contract.
• An RFP requires vendors to offer suggestions or
ideas on how the work should be completed -
essentially, to provide consulting services in
addition to the actual work outlined in the
contract.
• RFP’s prompt vendors to create customized
proposals and encourage them to suggest
different approaches to the same project; the
more solutions a vendor can suggest, the more
they will stand out from their competitors
Invitation for bids
• An agency may choose to issue an Invitation for Bid
when they already have the information they need
about the specific product or service they require,
know exactly what the contract entails and how the
work will be completed, and are confident that all
requirements of the contract are clearly defined
before an IFB is issued.
• This also means that there can’t be any negotiations
about price, or services required by the contract.
Evaluating an IFB is not complex like an RFP, since
the only criteria that an agency has to look at is
pricing
 Types of Tendering

•OPEN TENDERING: Broadly advertised, open to all

qualified bidders, promotes transparency and
competition.
•SELECTIVE TENDERING: Invites bids from a
prequalified list of contractors, improving quality
control and efficiency.
•NEGOTIATED TENDERING: Direct negotiation
with one or more contractors, offering flexibility and
speed but potentially less competition.
Basis of bid evaluation
• Quality and Cost-Based Selection (QCBS) –Evaluation
based on the cost committed by the bidder and the
technical qualification of the bidder.
• QCBS is suitable for transport infrastructure projects,
where it is desirable that the bidders possess a certain
amount of technical skills and previous construction or
operational experience. For the roads and urban
transport sectors the project team should by default
consider the QCBS approach for selection.
•Two-Stage Evaluation
•Quality Emphasis
•Cost Consideration
Basis of bid evaluation
•Quality-Based Selection (QBS) –Evaluation
based on the technical qualification of the bidder
•Quality Based Selection (QBS) is suitable
specifically in situations where the technical
input required is highly specialized and the
concern for technical quality dominates the
concern for lowest cost.
•Selecting consultants or firms based on their
qualifications, expertise, and past performance
rather than on price
Basis of bid evaluation
•Least Cost Method (LCM) – Evaluation
based on the cost of the completed asset or
cost of service committed by the bidder
The Least Cost Method (LCM) is suitable
specifically in situations where the
requirement is basic or of a commodity
nature or is highly standardized, with
limited requisite technical input and
nothing to differentiate the quality of
competing developers
 What is a contract
• An agreement enforceable by law is contract
• It invariably follows aproposal from one party and an
acceptance by the other.
• Offer
• Defined as a “manifestation of interest”
• Whether written or oral, a legally binding offer must be
clear
• Acceptance
• A contract between two parties cannot be legally
binding unless there is a meeting of the minds
• Consideration
• Each party must have a rational reason for entering into
the contract
 Essentials of a valid contract
•1)Contract shall be made by parties
competent to contract
A person is competent to contract provided
•He is of age of majority according to the law to
which he is subject.
•He is of sound mind.(ability to make a rational
decision)
•He is not disqualified from contracting by any
law to which he is subject.
 Essentials of a valid contract
• 2) Contract shall be made by free consent of the
parties
• Two or persons are said to consent when they agrees
upon the same thing in the same sense. Consent is
said free when
• Not caused under influence.
• Not cause by threat.
• Not caused by misrepresentation.
• Not caused by mistake.
 Essentials of a valid contract
•3) There shall be a definite proposal and its
acceptance
•Terms of contract must be precise and definite
and there should be no room for ambiguity or
misconstruction therein.
•4) The offer and acceptance should relate to
something that is not prohibited by law.
•5)The offer and acceptance constitute an
agreement that when enforceable by law
becomes a contract.
 Owner – A/E Contract
for
Professional Services
(Design and Bid Plans and Specifications)

Advertisement for Bids

Contractor
Joint Venture Agreements

Bids

Owner-Contractor Construction
Contracts (Prime Contracts)

Surety Insurance Subcontractor Labour Purchase Order

Bonds Contracts Agreements Agreements Agreements

Typical Construction Industry Contract Documents

23
Bartholomew, S. H., Construction Contracting: Business and Legal Principles, Prentice Hall, Inc., 1998
 CONTRACT DOCUMENT
• The contract drawings
• The specifications
• The general conditions of contract (GCC)
• The special conditions of contract (SCC)
• The agreement
• The bill of quantities (BOQ) if applicable
 CONTRACT DOCUMENT
The contract drawings
a) site drawing
b) architectural drawings
c) Structural drawings
d) HVAC—heating, venting and air conditioning, and
other services drawings
e) electrical drawings
f) special details.
 CONTRACT DOCUMENT
The Specifications
1) Quality of materials
•Concrete Mix: “The concrete used in all structural elements shall be of grade
M25 or higher, as per IS 456:2000. The mix shall be designed by a qualified
structural engineer, ensuring a minimum compressive strength of 25 MPa at 28
days.”
•Bricks: “Bricks shall conform to IS 1077:1992 and shall be class I with a minimum
compressive strength of 3.5 MPa. The bricks must be well burnt, uniform in color,
and free from cracks.”
2) Quality of workmanship
Brickwork: “All brickwork must be carried out with uniform bonding and
alignment. The mortar joints shall be not more than 10 mm thick, and the
brickwork shall be cured for a minimum of 7 days. Any defective work shall be
corrected to the satisfaction of the site engineer.”
Plastering: “The plastering work shall be carried out using a 1:4 cement-sand mix
as per IS 1661:1972. The plaster surface should be smooth and free from trowel
marks, and curing must be done for at least 7 days.”
 CONTRACT DOCUMENT
The Specifications
3) Frequency of Testing
Example:
•Concrete: “Concrete samples shall be taken from each batch and tested for
compressive strength at 7 days and 28 days as per IS 456:2000. A minimum of
three samples shall be tested per 100 cubic meters of concrete.”
•Soil Testing: “Soil samples shall be tested for compaction and moisture content
as per IS 2720 (Part 7):1980. Tests shall be conducted at every 500 square meters
of embankment area.”
4. Approved Manufacturers
Example:
Cement: “Only cement from approved manufacturers such as ACC, Ultratech, or
Ambuja, complying with IS code, shall be used.”
Doors and Windows: “All doors and windows must be sourced from approved
manufacturers such as Fenesta or Everest, as per the specifications provided in IS
code
 CONTRACT DOCUMENT
The Specifications
5. Relevant Indian Standards Describing the Material
Example:
Steel Reinforcement: “All steel reinforcement shall conform to IS 1786:2008,
and only Fe 500 grade steel shall be used for structural reinforcement.”
Paints: “The paints used for exterior walls shall conform to IS code. The paint
system shall include a primer, undercoat, and topcoat, with specified colors and
finishes.”
6. Inspection and Installation Methods
Example:
Installation of Electrical Wiring: “Electrical wiring shall be installed as per IS
codes. All wiring must be concealed in conduit pipes, and connections must be
properly insulated. Inspection of the wiring installation will be conducted by the
electrical engineer before plastering.”
HVAC System Installation: “HVAC systems must be installed following the
guidelines in IS code. Installation includes proper alignment of ducts, secure
mounting of equipment, and leak testing. The HVAC system shall be inspected and
tested by a certified HVAC technician before commissioning.”
 GENERAL CONDITIONS OF CONTRACT
• The general conditions of contract are an essential part of the contract. The
term ‘general ’ implies that the document is a standard one used in all the
contracts entered by a party (the owner). Different owners such as CPWD, MES
and IOCL have evolved standard forms of general conditions
• The general conditions of the contract set out the responsibility and obligation
of parties to the contract. It spells out the scope and performance of the
contract, valuation and payment terms, arbitration and laws, labour
regulations, safety code, various forms used for the tender and required deeds
under the general conditions of the contract. It is advisable to use standard
general conditions of contract since most of these conditions have been tested
in court over a period of time.
• In India, for government jobs, CPWD conditions of contract are most widely
used, though there is a growing trend of use of FIDIC (Fédération
Internationale des Ingénieurs-Conseils, which translates to "The International
Federation of Consulting Engineers" in English) contract conditions in large
projects, especially those funded by World Bank (WB) and Asian Development
Bank (ADB).
 GENERAL CONDITIONS OF CONTRACT
Excerpt from CPWD GCC:
"Clause 1: Definitions and Interpretations
1.1 In these conditions of contract, the following words and expressions shall have
the meanings assigned to them:
**(a) 'Employer' means the Central Public Works Department (CPWD) or other
authorized authority as specified in the contract.
**(b) 'Contractor' means the individual or firm carrying out the work under the
contract.
1.2 Words imparting the singular only also include the plural and vice versa where
the context requires.
Clause 2: Performance Security
2.1 The Contractor shall, within 14 days of receipt of the Letter of Acceptance,
submit a Performance Security in the form of a bank guarantee or fixed deposit
receipt for an amount equivalent to 5% of the contract value.
2.2 The Performance Security shall be valid until the completion of the Defects
Liability Period, and its return shall be subject to the satisfactory completion of
the defects liability period."
 GENERAL CONDITIONS OF CONTRACT
Excerpt from FIDIC
Clause 12: Measurement and Evaluation
12.1 Method of Measurement: The Works shall be measured in accordance with
the method of measurement stated in the Contract Data. The measurement shall
be made by the Engineer, and the Contractor shall be provided with an opportunity
to be present during the measurement.
12.2 Valuation of Work: The Engineer shall assess the value of the Works executed
and of any variations. The Contractor shall be paid for the Work at the rates or
prices specified in the Contract, or if no such rates or prices are specified, at fair
rates to be agreed between the Employer and the Contractor.
Clause 20: Claims, Disputes, and Arbitration
20.1 Notice of Claim: If the Contractor wishes to make a claim for any extension of
time or additional payment, they must notify the Engineer within 28 days of the
event giving rise to the claim. The notice must include details of the claim and any
supporting documents.
20.2 Dispute Resolution: If the parties are unable to resolve a dispute through
negotiation, the dispute may be referred to adjudication, and if still unresolved, to
arbitration in accordance with the rules specified in the Contract.
FIDIC:It was founded in the year 1913 in Europe, and now has about 70 countries as
members. The secretariat is situated in Switzerland. The FIDIC form of contract has evolved
over a period. The contract conditions are equally suitable for use on domestic contracts.
. to 1999, FIDIC had three forms of building and engineering contracts—the Red Book
Prior
for civil engineering construction, the Yellow Book for electrical and mechanical works, and
the Orange Book for design and build contracts.
Balanced Risk Distribution: FIDIC contracts are designed to balance risks
between the parties. Responsibilities and risks are clearly allocated between the
employer (client) and the contractor, which helps minimise disputes and fosters a
cooperative project environment.
Engineer’s Role: The FIDIC contracts typically appoint an Engineer or Project
Manager who acts as an independent third party. This person is responsible for
administering the contract, including certifying payments, managing changes,
and resolving disputes. This role helps maintain neutrality and fairness
Flexibility for Changes: The contracts provide mechanisms for managing changes
or variations to the scope of work. These provisions allow for adjustments to the
contract price and time in response to changes in project requirements.
Dispute Resolution: FIDIC contracts provide mechanisms for dispute resolution,
including negotiation, mediation, and, if necessary, arbitration. The choice of
dispute resolution method can be specified in the contract, and FIDIC often refers
disputes to arbitration under the rules of an institution such as the International
Chamber of Commerce (ICC).
 SPECIAL CONDITIONS OF CONTRACT
Certain amendments/additions/deletions are made in general conditions of the contract in
order
. to make it suitable for a particular project. These amendments are contained in a
separate document called special conditions of contract (SCC). SCC may commonly address
the following issues depending on the requirement of a project:
• Materials provided by the owner
• Mobilization advance
• Start date of construction
• Requirement of various reports related to progress
Example:
• Time of Completion: The contractor is required to complete the work within 12 months
from the date of the commencement of work, with a provision for an extension of time
only under specific circumstances such as adverse weather conditions or delays caused
by changes in the scope of work.
• Defects Liability Period: The contractor must rectify any defects identified within 12
months from the date of completion. If defects are not corrected within the specified
period, the Employer has the right to carry out the necessary repairs and recover the
costs from the contractor.
• Security Deposit: The contractor is required to provide a security deposit of 5% of the
contract value, which will be deducted from the progress payments and refunded after
the completion of the defects liability period, subject to any deductions for damages or
deficiencies.
 BOQ:BILL OF QUANTITIES
The bill of quantities shows the net quantity to be executed in each item of work. Items are
.
classified into earthwork, anti-termite treatment, waterproofing, brickwork, concreting,
whitewashing and painting, flooring and finishing, doors and windows, structural steel,
aluminium works, stonework, etc.