1. Karen Bradbury Monday 15.45 to 16.45 Contract Documentation Supplement

2. Which document provides which function? GenericFunctionUsual Contract Documentation What?Type of project Scope, shape, size Quality of work Specification Drawings Specification How much?Amount of workBill of quantities Where?LocationDrawings When?PaymentConditions of contract Who?Parties Responsibilities Agreement Conditions of contract How?ProceduresConditions of contract What if?Prior agreement on liabilities & procedures Conditions of contract Based on Stephen Wearne, “Civil Engineering Contracts” 1989, p. 26, Thomas Telford.

3. Conditions of Contract From Warwick undergraduate module on Construction Management, George Webb Set out the ‘rules’ by which Contract is run Show rights and obligations of the parties Set out action to be taken if issues arise Form legal basis of the Contract There are many standard forms, eg ICE, FIDIC, I Chem. E. NEC. Should not tamper with them!

4. Conditions of Contract Details of the parties and description of the Works; Employer's representative and their powers of instruction; Obligations (of Contractor and Employer) and sanctions for non-fulfilment; Time, Payment and claims for extra time and payment; Liabilities and Insurance; Quality of materials and workmanship (and, where appropriate, Design); Health and Safety; Disputes and Termination. From George Webb, lecturer on Warwick Undergraduate Construction Management module

5. Checks on Drawings Many risks can be reduced by studying the drawings. Suggested checks include: The drawings are complete and match the bill of quantities. Assess the likely requirements for the mechanical plant and scaffolding. Check access and working space and storage space for materials. Consider security. Is there a need to secure the area and/or hire security guards? Check the position of boundaries, access, and services. (Tebin, 2009)

6. Bond Bond - a Client may require a Contractor to provide a bond for the duration of the contract, which would become available to the client to meet any additional expenses that might result from a failure on the part of the contractor to meet his responsibilities. Such bonds are normally 10% of the contract value and are obtained from banks or insurance companies. From George Webb, lecturer on Warwick Undergraduate Construction Management module

7. Retentions Retentions - an amount, usually 5-10% held back from the sum due to a contractor, for payment at a later date. The amount will be specified in the Conditions of Contract. Retentions are usually released on the basis of half at the issue of the certificate of practical completion, the remainder at the issue of the final certificate or end of maintenance period. From George Webb, lecturer on Warwick Undergraduate Construction Management module

8. Liquidated Damages Liquidated damages - a sum detailed in the Conditions of Contract which is designed to cover the financial loss a client would face in the event of late completion. The sum usually stated as a weekly or occasionally daily rate is recovered from the Contractor. Must be a realistic figure. From George Webb, lecturer on Warwick Undergraduate Construction Management module

9. Collateral Warranties Collateral Warranties - an agreement which is added to the appointment between a consultant and his client to bind the consultant into an agreement with a third party such as a funding institution. From George Webb, lecturer on Warwick Undergraduate Construction Management module

10. Who Produces These? Form and conditions of contract – solicitor, lawyer, commercial manager Contract drawings – design consultant, employer’s advisor Bill of quantities – consultant, quantity surveyor Specifications - consultant

11. Traditional Complaints About Contract Documentation Missing information Late information Wrong Information Insufficient Detail Impracticable designs Inappropriate information Unclear information Not-firm/Provisional information Poorly arranged information Conflicting information Brook, M. (1998). Estimating and Tendering for Construction Work, 2nd Edition. Oxford: Butterworth-Heinemann pp. 36, 40 Poor work description Obscurity of specification clauses Amendments to standard forms of contract The attempts by consultants to cover inadequacies through the introduction of ‘all-embracing’ risk clauses Quah, L. K. (1992). Comparative variability in tender bids for refurbishment and new build work. Construction Management and Economics Volume 10, 263-269

12. What documents should be on site? Contract drawings Bills Of Quantities (unpriced) Descriptive schedules Master programme Additional drawings and details Risk assessment and register Contract CDM co-ordinator Permit to work Allan Ashworth “Contractual Procedures”, 2006, p. 137

13. Architect’s (Engineer’s) instructions (AI's/EI’s) - instructions issued by an Architect/Engineer, first verbally and then confirmed in writing to a site agent as work progresses on site and, as questions arise over details and specifications. Certificate of Practical Completion - a stage reached in the contract where the Client can take beneficial occupation. Clerk of Works - a person, usually with wide building experience, often resident on a site and acting on behalf of a Client, in inspecting work, quality of materials etc during the course of a contract. Contingencies - a sum set aside to cover the cost of any additional or unforeseen work which may be encountered once the project is proceeding on site. Contingencies are also used to pay for changes which a client may request or meet extra payments which the contractor may be entitled to. Extension of time - an extension of time to a contract period authorised by the Architect/Engineer for reasons of adverse weather conditions, an unusual number of variations etc. The reasons for which an extension of time may be granted are usually given in the Conditions of Contract. Contract Terms and Documents Source: George Webb, ES3D4/ES4D5 Construction Management module, University of Warwick, 2012c

14. Final Certificate - a certificate stating that the works are now complete and the client is due a full and final settlement to the contractor. Preliminaries - matters which feature at the beginning of a Bill of Quantities, which are relevant to the contractor in terms of his obligations and responsibilities and which will therefore influence his costings. These would include such items as names of Clients and Consultants, insurance requirements, length of contract, descriptions of the site in terms of its access, working areas and adjacent buildings etc, a detailed description of the work to be undertaken and the order in which it should be tackled. Prime cost sum - an amount included in a Bill of Quantities to cover a particular bit of work or supply of materials to be carried out by a nominated sub-contractor or supplier. Provisional sum - a sum included in a Bill of Quantities for work that is required but cannot be sufficiently designed or specified at the outset of the contract.eu Contract Terms and Documents Source: George Webb, ES3D4/ES4D5 Construction Management module, University of Warwick, 2012c

15. Schedule of rates - a list of works activities usually priced at a rate per unit for example, a price might be included for building in common brick at so much per square metre. Snagging - the term used to describe unsatisfactory work or small items of work still to be completed which are discussed/discovered during final site inspections. Sub-contractor - persons employed to undertake specialist work beyond the capacity or capabilities of the main contractor. Domestic SCs are employed directly by the main contractor. Nominated SCs are specialist firms selected by the Client or the Architect/Engineer, with whom the main Contractor must then work. Variations - changes in work authorised by the Architect/Engineer. Contract Terms and Documents Source: George Webb, ES3D4/ES4D5 Construction Management module, University of Warwick, 2012c