1. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 1 Bölgesel Rekabet Edebilirlik Operasyonel Programı’nın Uygulanması için Kurumsal Kapasitenin Oluşturulmasına Yönelik Teknik Yardım Technical Assistance on Institutional Building for the Implementation of RCOP in Turkey Works Contract Management Training 09 October 2012

2. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 2 Agenda - 1  Introduction  Objective of the Training & Expectations of the participants  FIDIC Contracts  Parties  Terminology  Contracting schedules  Disbursement schedules  Insurance policy  Securities  Payment Certificates  Particular Conditions

3. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 3 Agenda - 2  Supervision Manuals  Progress Reports  Meetings  Document & Material Approvals  Taking Over Certificates  Performance Certificate

4. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 4 Introduction Trainer: – Gökhan Kaya – Architect, M.Sc. – 19 years of design, construction & consultancy experience – gokhan.kaya@ecorys.com.tr gokhan.kaya@ecorys.com.tr

5. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 5 FIDIC Contracts Contract : A contract writes the law that applies between the parties FIDIC : Fédération internationale des ingénieurs-conseils ( International Federation of Consulting Engineers ) Association of Turkish Consulting Engineers and Architects, member as of 1987, FIDIC Contracts ( New editions published in 1999 ): Conditions of Contract for Construction (Red Book) Conditions of Contract for Plant and Design-Build (for Electrical and mechanical Plant and for Building and Engineering Works designed by the Contractor (Yellow Book) Conditions of Contract for EPC Turnkey Projects (Silver Book) Short Form of Contract (Green Book) Orange Book, White Book (Client-Consultant), Gold Book (DBO), Tendering Procedure, etc..)

6. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 6 Background of the Red Book RIBA (Royal Institute of British Architects) Form, 1909- 1957 ICE (Institute of Civil Engineers) and (Federation of Civil Engineering Contractors in the United Kingdom) Form, (1945 - 1991) ACE (Association of Consulting Engineers in the UK, Export Group for the Construction Industries in the UK and with the approval of Institute of Civil Engineers) Form, 1956 Published first Conditions of Contract in 1957 (based on the ACE Form)

7. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 7 Background of the Red Book Second Edition of the Red Book, 1969, amended 1973 Third Edition of the Red Book, 1977 Fourth Edition of the Red Book, 1987 (reprinted in 1992 with further amendments, supplement to 4th edition in 1996) Fifth Edition of the Red Book, 1999

8. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 8 The first is intended for construction works where the Employer is responsible for the design, with an important role for the Engineer. RED Book is also called “Measurement Contract” Tenderers fill in their unit prices into the existing BoQs. Final amount is not fixed, payments are done based on the real amounts executed in RED Book Contracts. Employer carries the risk for contract amount increases ENGINEER is in charge of taking and preparing measurements RED Book Contracts

9. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 9 Conditions of Contract for Electrical and Mechanical Works including Erection on Site, 1963 Second edition, 1980 Third edition, 1987 Last version was published in 1999 Designs and drawings will be made by the Contractor Background of the Yellow Book

10. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 10 The conditions of contract are intended for situations when the Contractor is responsible for the design. Lump-Sum price contract. Payments are based on the percentages indicated in the Contract. Price increase and other risks are distributed amongst both parties. YELLOW Book Contracts

11. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 11 RED BOOK vs YELLOW BOOK -1 Conditions of Contract For Construction Employer designs Engineer, working for the Employer Bill of Quantities Payments based upon measurements Certification of payments by Engineer Conditions of Contract for Plant and Design-Build Contractor designs Engineer, working for the Employer Lump sum pricing Payments according to progress (%) Certification of payments by Engineer

12. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 12 RED BOOK vs YELLOW BOOK -2

13. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 13 PARTIES in FIDIC Contracts-1 (Project Organization & responsibilities ) (Project Organization & responsibilities ) PARTIES in FIDIC Contracts-1 (Project Organization & responsibilities ) (Project Organization & responsibilities ) Contracting Authority CA/OS ERA Engineer Contractor

14. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 14 PARTIES in FIDIC Contracts-2 EMPLOYER :person wanting the works to be performed = contracting authority (CA) The CONTRACTOR :person performing the works = winner of the tender The ENGINEER :person appointed by the employer to act as the engineer for the purposes of the contract = winner of the tender

15. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 15 TERMINOLOGY Commencement date: date of commencement of the works as decided by the Engineer (GC. 8.1) (see app. to tender for the date of access to site) Time for completion: time for completing the works calculated from the commencement date (GC. 8.2) Test on completion: tests as defined in the contract to be carried out before the works are taken over by the employer (GC.9) Taking over certificate: certificate issued by the engineer stating that the works have been taken over by the employer (GC. 10.1) Defect notification period: period for notifying defects starting from the date of issue of the taking over certificate and whose duration is defined in the appendix to tender (GC.11) and during which contractor must remedy the defects Performance certificate: certificate issued by the engineer to the contractor stating that works are complete (GC.11.9) = acceptance of the works after remedy of all defects

16. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 16 Contracting Execution periods Works: + X months construction + Y months commissioning (if any) + 12 months DNP

17. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 17 Disbursement Works: 10% Advance (+ 56 days, PC14.7 & see App. to Tender ) Each IPC (+ 77 days, PC 14.7) Retention (5%, GC14.3 - see App. to Tender) Final Payment (+ 77 days, PC 14.7)

18. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 18 Insurance Policy - 1 The Contractor shall take out insurance in both his own and the Employer’s name. The insurance shall be provided for compensation payable in EURO required to rectify the loss or damage incurred. Insurance for Works and Contractor’s Equipment (GC18.2) Insurance against injury to Persons and Damage to Property (GC18.3) Insurance for Contractor’s Personnel (GC18.4)

19. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 19 Insurance Policy – 2 (Appendix to Tender ) Periods for submission of insurance a) evidence of insurance b) relevant policies 18.1(a) 18.1(b) 14 days after Commencement Date 28 days after Commencement Date Insuring Party18.1The Contractor Amount of third party insurance 18.3 1,000,000 EUR per accident with the number of occurrences unlimited

20. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 20 Securities (Tender Guarantee) Advance Security ( see App. to tender) Performance Security (PC 4.2) Retention Security If any – given by the Contractor

21. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 21 Payment Certificates o Advance Payment, o Interim Payment, o Final Payment. - Pl. See Annexes 1 and 2

22. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 22 Particular Conditions  The Particular Conditions amend and complete the General Conditions governing the contract.  Unless the Particular Conditions provide otherwise, the General Conditions remain fully applicable.  No discrepancy between the Particular and General Conditions

23. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 23 Supervision Manual  Project Organization Chart and Responsibilities  Quality Plan  Procedures  DCC  Defects, Complaints and NCR  Corrective and Preventive Actions  HSE & QAC  Forms and Formats

24. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 24 Progress Reports  Recording actual progress of work against the Contractor ‟ s programme – start and finish dates for sub sections of work, as-constructed bar chart, photographs  Observing Contractor ‟ s operations for compliance with HSE & QAC  Assurance and Environmental Plans, notifying the Contractor in case of any breaches  Provide financial information

25. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 25 Meetings  Weekly Site Meetings,  Technical meetings,  HSE meetings,  Monthly Progress Meetings,  Ad-Hoc Meetings,  Steering Committee Meetings

26. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 26 Document & Material Approval  Formats should be agreed in advance  Comments need to be justified / verified  DCC is very important

27. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 27 Taking Over Certificate  A Taking-over Certificate is issued to the Contractor when the Employer is satisfied that the Works have been completed in accordance with the Contract and have successfully passed any tests on completion, identified in the technical specifications.  The date on which the Taking-over Certificate is issued, is also the commencement date for the Defects Notification Period.  14 days ( Delay Tests on Completion-cont., if contractor is prevent, application before-cont.)  After receiving this notice OS/CA writes a letter including “Taking Over Memorandum” to the ERA in order to establish a Taking Over Committee for carrying out the necessary taking over studies together with the Engineer and the Contractor.

28. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 28 Performance Certificate  Upon expiry of the maintenance period (Defect Notification Period), and when all defects or damage have been rectified, the OS/CA writes a letter including “Performance Memorandum” to ERA that maintenance period was finalized and a team is needed to establish for the Performance Certificate of the works.  If there is no Engineer on site, obligations of the Engineer shall be held by OS/CA and ERA.

29. This project is co-financed by the European Union and the Republic of Turkey REPUBLIC OF TURKEY MINISTRY OF SCIENCE, INDUSTRY AND TECHNOLOGY 29 Thank You