CONTRACT Flashcards
The party who has ordered the work to be done. In other forms of contract, this party may be referred to as ‘the Client’ or ‘the Owner’.
Employer
The party who is responsible for completing the work
Contractor
a. The party responsible for administering the Contract.
b. In other forms of contract, this party may be referred to as ‘the Architect’, ‘the Supervising Officer’ or ‘the Project Manager’.
Engineer
a. The person responsible for reviewing a claim or response and producing a determination, defense or response to the submitted document.
Reviewer
The various documents including the letter of award, the agreement, contract conditions, the specifications, the drawings and any further document listed in the agreement or letter of award which together form the contract between the parties.
Contract
a breakdown of the work required into a list of planned activities showing the times and dates when they are intended to happen or be done, in the form of a bar chart.
In some parts of the world, this is customarily referred to as a ‘schedule’.
Programme
a. A sum of money, which shall be paid by the Contractor to the Employer in the case of failure to complete the Project by the Time for Completion.
b. Some contracts deduct such monies under provisions of ‘liquidated damages’ or ‘penalties
Delay Damages
refer to monetary values.
Currency
The contract documents will typically comprise the following:
a. The agreement
b. The particular conditions of contract
c. The general conditions of contract
d. The specification
e. The drawings
f. The bills of quantities
g. Other documents
The Contractor, prior to signing the Contract, shall furnish a _______ equal to ___ of the Contract amount for the faithful performance of his work and ____ bond covering Contractor’s obligations arising from the Contract to its workers, subcontractors and suppliers
Performance Bond, 15%, 15%
a separate explanatory statement intended to clarify, amend or supplement a document, drawing etc.
Addendum
in contract administration, construction work ordered by the client after the contract has been awarded, not included in the contract and for which the contractor is paid separately.
Additional Work
refers to the notice published by the Owner or the invitation issued to prospective bidders, giving information as to the nature of the proposed project, conditions for the issuance of Contract documents, date of bidding, and information that would give the Contractor a general idea of the magnitude and extent of the project.
Advertisement or Invitation Bid
is the term used to describe the agreement signed by the Owner and the Contractor excluding the Contract Documents which are attached thereto.
Agreement
the tender, or proposal, or quotation, or offer of a bidder to perform the work described in the Contract which in form and substance complies with the Instruction to Bidders.
Bid
refers to any acceptable form of bond accompanying the Bid submitted by the bidder as a guarantee that the bidder will enter into the Contract with the Owner for the construction of the Work, if the Contract is awarded to him
Bid Bond
collectively refer to all documents provided or made available to prospective bidders which include the Invitation to Bid and a copy of the Contract which the winning bidders would be required to sign with the Owner
Bid Documents
is a document containing additional information on Bid Documents issued to bidders before date of bidding.
Bid Bulletin
in contract administration, an instruction from the client or client’s representative that implements a change in the nature or extent of constructed work.
Change Order
are the documents attached to the Agreement identified therein as Contract Documents, including all additions, deletions and modifications incorporated therein.
Contract Documents
are the documents attached to the Agreement identified therein as Contract Documents, including all additions, deletions and modifications incorporated therein.
Contract Documents
are the documents attached to the Agreement identified therein as Contract Documents, including all additions, deletions and modifications incorporated therein.
Contract Documents
are the documents attached to the Agreement identified therein as Contract Documents, including all additions, deletions and modifications incorporated therein.
Contract Documents
handover date; the on which work on a building under construction or repair is due to be completed, as written in the building contract
Completion Date
a document issued at the end of the defects liability period certifying that all defects have been made good or repaired.
Completion of Defects Certificate
means all expenditures properly incurred or to be incurred, whether on or off the site, including overhead and other charges properly allocable thereto but does not include any allowance for profit.
Cost
in contract management, a request by a contractor for payment in circumstances where he has no legal right to reimbursement.
Ex-Gratia Application
refers to the payment of the final progress billing and all approved claims including but not limited to variations in the work, Contract Price adjustments and/or escalation, acceleration of work, and others.
Final Payment
a document that authorizes payment to the contractor of the final account, an approval that the terms of the contract have been met
Final Certificate
an increase or decrease in the prices of labour, materials or plant from those specified in the tender, allowed for in the building contract.
Fluctuation
a method of calculating the amount to be added to or deducted from a contract sum due to changes in the costs of labour, plant and materials during construction using a price variation formula.
Formula Price
Adjustment
a variation of price contract in which prices are amended according to previously agreed terms.
Formula variation of price contract
a method of payment for additional construction work on the basis of hourly rates of labour, materials and plant.
Daywork
is the approved form of security furnished by the Contractor and his Surety as a guarantee of the quality of the materials provided, the equipment installed, and the workmanship performed by the Contractor
Guarantee Bond
refers to the list of instructions regarding the manner bids are to be prepared and the conditions for the award of the Contract.
Instruction to Bidders
is the approved form of security furnished by the Contractor and his Surety as a guarantee of good faith on the part of the Contractor to faithfully comply with the Contract in respect of its obligations arising therefrom to its workers, subcontractors, and suppliers.
Payment Bond
the approved form of security furnished by the Contractor and his Surety as a guarantee of good faith on the part of the Contractor to execute the Work in accordance with the Contract.
Performance Bond
is an outline specification enumerating the type or trade names of materials required to be used by the Contractor for the Work.
Schedule of Materials and Finishes
are the written or printed description of the work to be done describing qualities of the material to be used, the equipment to be installed and the mode of construction.
Specifications
is the person, firm or corporation which issues the bond required of the Contractor
Surety
is the least formal of the three and the smallest commitment for the requestor. Rfis are designed to collect information from a vendor with no commitment to engage in any particular project and it is likely that minimal or no project details would be provided.
Request for Information (RFI)
