CONSTRUCTION CONTRACTS PRIME CONTRACTS Format and Major Components CHAPTER - 4

STANDARD FORMS-OF-CONTRACT American Institute of Architects (AIA) Contracts –Standard form of Agreement Between Owner and Contractor –Most widely used form for fixed-price building construction works in USA. FIDIC - International Federation of Consulting Engineers – act.asphttp://www1.fidic.org/resources/contracts/which_contr act.asp

Conditions of Contract for Construction, which are recommended for building or engineering works designed by the Employer or by his representative, the Engineer. Under the usual arrangements for this type of contract, the Contractor constructs the works in accordance with a design provided by the Employer. However, the works may include some elements of Contractor-designed civil, mechanical, electrical and/or construction works. These Conditions of Contract are recommended for engineering and building work of relatively small capital value. However, depending on the type of work and the circumstances, the Conditions may be suitable for contracts of considerably greater value. They are considered most likely to be suitable for fairly simple or repetitive work or work of short duration without the need for specialist sub-contracts. This form may also be suitable for contracts which include, or wholly comprise, contractor-designed civil engineering, building, mechanical and/or electrical works.

Conditions of Contract for Plant and Design-Build, which are recommended for the provision of electrical and/or mechanical plant, and for the design and execution of building or engineering works. Under the usual arrangements for this type of contract, the Contractor designs and provides, in accordance with the Employer’s requirements, plant and/or other works; which may include any combination of civil, mechanical, electrical and/or construction works Conditions of Contract for EPC Turnkey Projects, which are recommended where one entity takes total responsibility for the design and execution of an engineering project. Under the usual arrangements for this type of contract, the entity carries out all the Engineering, Procurement and Construction: providing a fully- equipped facility, ready for operation (at the "turn of the key"). This type of contract is usually negotiated between the parties.

The purpose of these guidelines is to present the commonly used methods of consultant selection, to explain the respective procedures and to combine them all in one compact document, as well as to emphasize and explain FIDIC's policies on the subject of selection. The terms of the Client Consultant Model Services agreement (The White Book) have been prepared by FIDIC and are recommended for general use for the purposes of pre-investment and feasibility studies, designs and administration of construction and project management, where proposals for such services are invited on an international basis: They are equally adaptable for domestic agreements.

Sub-consultancy Agreement

STANDARD FORMS OF CONTRACT-INDIA CPWD MES State PWD Model Standard Contract For Domestic Construction – CIDC ONE-OF-A-KIND CONTRACTS –Created for a particular project –Little about them is standard or traditional

TYPICAL DOCUMENTS COMPRISING THE CONTRACT Bidding documents consisting of the Invitation to Bid, the Instruction to Bidders, and the Bid Form General Conditions of Contract Special Conditions of Contract Specifications Drawings Reports of investigations of physical conditions

BIDDING DOCUMENTS Normally begins with an advertisement –Identifies the project for which bids are desired –The owner –Time and place of bid opening –Instructions to potential bidders on how to obtain a full set of contract documents Invitation for Bids (IFB) or Request for Proposals (RFP) –IFB used when bidders must strictly confirm to drawing and specs. –RFP when bidders may propose variations for the project

IFB or RFP typically include: –A description of the contract work –The identity of the owner –The place, date, and precise time of the bid opening –The penal sum of the required bonds (bid bond, performance bond etc.) –A description of the drawings and specs, their cost, and where they may be obtained –Rules regarding withdrawal, modifications, late bids etc. BIDDING DOCUMENTS

Instructions to Bidders Bid Form –Bidders complete this document, sign, seal and turn it in –Constitutes the “offer” –To constitute a responsive bid, the bid form must be completely filled, signed and sealed in accordance with the IFB or RFP and Instructions to Bidders

BIDDING DOCUMENTS Bid Forms Contents –A definitive statement of the general terms and conditions of the offer –The format of the commercial terms applying to the offer –Supplementary information that the owner may want to know about the bidder –Requirement for public projects –Bid security

GENERAL CONDITIONS OF CONTRACT Very definitive statements, clause by clause, of all general terms and conditions that will govern the performance of the contract work The general concept of this section is to include all clauses that will remain the same, contract after contract, changing very infrequently

SPECIAL CONDITIONS OF CONTRACT Also known as Supplementary Conditions Project specific matters Those that are either site specific or in some other way apply only to the specific contract

SPECIFICATIONS The technical requirements for each division of work in the contract will be completely detailed in specifications Conforms to Uniform Construction Index or Master spec format Should be carefully drafted so that both parties to the contract have a mutual understanding of the precise technical requirements

DRAWINGS Complement the specifications Should be sufficiently clear to adequately show exactly what is to be built Certain features may be shown in fairly general terms, requiring the contractor to prepare the detailed drawings In fixed-priced bids should be adequately sufficient and clear

REPORTS OF INVESTIGATION OF PHYSICAL CONDITIONS Often concern the geotechnical aspects of subsurface conditions Usually appear in the form of written evaluations and soil boring logs Other examples are weather records, stream flow hydrographs etc. Is such material to be considered part of the contract documents? Owners often use disclaimers, to escape liability