Contracts and Specifications Flashcards
This is a written undertaking regarding agreements that are enforceable by law
Contracts
What are the 4 parts of Bidding and Contract Awards
- Bid Process
- Bid Analysis
- Award Process
- Insurance & Bonding
Inclusions of Bid Process
Bid package
Invitation to bid
Instruction to bidders
Inclusions of Bid Analysis
Bid Form
Bid Leveling
Construction Contracts:
10 Contract Elements
Offer and Agreement
Intention to create legal relationship
Lawful considerations
Capacity of parties
free consent
legality of the subject
certainty
possibility of performance
void agreements
writing registration and legal formalities
In this type of contract, the contractor offers to do the whole work as shown in drawings and described by specifications, for a total stipulated sum of money.
Lump Sum Contract
Also called a schedule contract, in this contract, the contractor undertakes the execution of work on an item rate basis.
Item Rate Contract
In this type of contract the contractor offers to do a particular work at a fixed sum within a specified lime as per plans and detailed specifications.
Lump Sum and Scheduled Contract
Cost plus fixed fee contract is desirable when the scope and nature of the work can at least be broadly defined.
Cost Plus Fixed Fee Contract
In this type of contract, instead of awarding the work on a lump sum or item rate basis, it is given on a certain percentage over the actual cost of construction.
Cost Plus Percentage of Cost Contract
There are certain contracts which are used at different occasions.
Special Contracts
is an integrated contract in which all works pertaining to various disciplines such as civil, electrical, mechanical etc. are in a single contract called the main contract.
Turnkey Contract
two or more related jobs, each of which could form a separate contract are combined in a single contract.
Package Contract
In this type of contract, negotiation across the table takes place between the representatives of the owner and the main contractor for the project cost and other conditions of contract.
Negotiated Contract
In this type of contract, new or additional work is awarded to the contractor on the basis of the agreed terms and conditions of an existing contract.
Continuing Contract
Such contracts provide goods and services at specified intervals or as on when required by the owner.
Running Contract
In this type of contract, several firms combined their assets , plan and personnel to undertake such a project.
Joint Venture Contract
This is a third-party contract to build and then operate an asset (e.g dam, bridge, road) for a specific amount of time for a fee and then transfer the asset back to the contracting company or entity (usually a government entity).
Build - Operate – Transfer (BOT) Contract
BOOT is similar to BOT except that rather than receiving a fee for operating it. It receives the net income from the asset as if it owned it.
Build – Own –Operate –Transfer (BOOT) Contract
consists of the contract agreement (on non-judicial stamp paper of prescribed value) and the following set of documents, each page of which is signed both by the owner and the contractor.
Contract documents
Give the parts of a Contract Documents
Cover title Page
Notice Inviting Tender
Tender Form
Schedule of Issue of Materials
Drawings
Specifications
Conditions of Contract
are statements which describe the nature and class of work, materials to be used, labour to be employed, method of work, precautions to be taken, quality of workmanship etc.
Specifications
The specifications prepared for a particular job to accompany the working drawings are contract specifications.
Contract Specification
Types of Specifications
General specifications
Detailed specifications
These specifications provide a guideline for preparing contract specifications and give a broad idea about class and type of construction for a particular purpose.
Guide Specifications
Manufacturers prepare specifications of their products for the guidance of users. These specifications also include installation instructions and other guidelines for use and maintenance of products. These specifications are generally provided in the form of manuals. Clear understanding of specifications plays a vital role in the successful completion of a construction project.
Manufacturer’s Specifications
are detailed documents that outline the structure, layout, and components of a building project.
construction plans and specifications
Types of Construction Specification
*Prescriptive Specification
*Performance Specification
*Proprietary Specification
provides details on the types of materials and installations needed to complete a project. Additionally, it also describe how to measure installations to ensure that they were up to project quality and standards.
Prescriptive Specification
is a document that describes the operational requirements when work or a product is installed. Fundamentally, the performance specifications should describe to the contractor what is needed for the final product and how it should essentially function once completed.
performance specification
used if only one specific product can be used for an installation. This is commonly used when equipment or machinery requires only one certain material that indicates performance.
proprietary specification
Key components of construction plans and specifications
Site Plans
Floor Plans
Elevation
Sections
Detail Drawings
Blueprints
Specifications
Scale
Legend
As-Built Drawings
is the process of managing and organizing tasks that need to be completed during construction. It involves cooperation between all parties involved, such as homeowners, builders, contractors, and suppliers.
contract administration
Important Conditions of Contracts Connected with Contractual Problems:
Time of Completion
Delay and Extension of Time
Penalty
Compensation for in completion of work
liquidated damages
debatable agency
valuation of variations
settlement of disputes
forces of nature and natural disasters
price escalation
termination of contract
is a document that provides regular updates on a construction project’s status.
Progress Report
Contents of Progress Report
Project information
executive su,mmary
work completed
work in progress
work scheduled
issues and delays
health and safety
photographic evidence
comments and recommendations
payment
different types of payments mode on construction projects
Progress payments
Final payments
Change Orders
Lump Sum Payments
These are payments made at regular intervals throughout the project.
Progress Payments
This payment is made after the project is completed.
Final Payments
These are additional payments requested when there are alterations or modifications to the original scope of work.
Change Order
contract price is a set amount.
Lump Sum Payments
