CONSTRUCTION CONTRACTS DOCUEMENTS BY LECTURER Maha Muhaisen APPLIED CIVIL ENGINEERING DEPT

Lecture (4)

2-1 Instruction to bidders It describe the scope of the bid, source of fund (if it is financed from other agency), fraudulent and fraud practices, eligible bidders, Eligible Materials, Equipment and Services, Clarification of Bidding Document, Site Visit, Pre-Bid Meeting, Amendment of Bidding Document

2-1 Instruction to bidders (cont’d) See attached example for ITB.

2-2 Bid Data Sheet (BDS) Definitions, Engineer’s Authority to Issue Variations, Performance Security, Inspection of Site, Program to Be Submitted, Cash Flow Estimate Bid Security, Minimum Amount of Third Party Insurance Time for Issue of the Notice to Commence, Time for Completion Amount of Liquidated Damages, Limit of Liquidated Damages Amount of Bonus for Early Completion, Limit of Bonus Defects Liability Period, Amount of Interim Payment Certificates Percentage of Retention, Limit of Retention Money, Amount of Advance Payment Start Repayment of Advance Payment, Monthly Recovery of Advance Payment Number of Copies of Statement of Completion and Final Statement Procedure for Settlement of Disputes Notice to Employer and Engineer Origin of Materials and Plant

2-3Evaluation and qualification This section contains all the criteria that the Employer shall use to evaluate bids and qualify Bidders if the bidding was not preceded by a prequalification exercise and post qualification is applied. In accordance with items specified in ITB, no other methods, criteria and factors shall be used. The Bidder shall provide all the information requested in the forms included in (Bidding Forms) section..

2-3Evaluation and qualification (con’d) 1- evaluation : describe the Adequacy of Technical Proposal, in case of Multiple Contracts, the conditions governs, Completion Time, 2- Qualification : describe the Eligibility, financial situation, staff, experience , equipments.

2-4 Bidding forms letter of bid (bid form) Form of bid security Technical proposal forms (personnel, equipment) Bidders qualification forms as bidders data, JV information, Historical Contract Non-Performance, Current Contract Commitments , Historical Financial Performance, Average Annual Turnover, General and specific Experience,

See attached file

Lecture (5)

CONSTRUCTION DOCUMENTS

CONSTRUCTION DOCUMENTS Contract documents (graphic and written) describe the proposed construction (the ‘Work’) that results from performing services, furnishing labor, and supplying and incorporating materials and equipment into the construction Contract Forms Conditions of the Contract Specifications & BOQ Drawings Addenda Change Orders

A. CONTRACT FORMS CONTRACT FORMS Agreement Performance Bond Payment Bond Certificates

B.CONDITIONS OF CONTRACT Define basic rights, responsibilities, and relationships of the parties involved in the construction project. 2 types: General Conditions and Supplementary Conditions GENERAL CONDITIONS General clauses that establish how the project is to be administered. Contain basic expressions of rights, duties, and limitations of the entities involved. Usually in the form of published standard documents that include principles common to most construction Contracts. SUPPLEMENTARY CONDITIONS Modify or supplement general conditions as need to provide for requirements specific to a project. They are not standardized documents and are prepared for specific project needs.

A.1 Agreement The written document signed by the owner and the contractor that is the legal instrument binding the parties to the contract. Defines the relationship and obligations between owner and contractor. The agreement is quite brief and appears to consist mostly of statements of fact, whereas the general conditions section deals primarily with matters that pertain generally to be construction work and the persons involved. In other words, the agreement appears to consist of statements and the general conditions appear to be terms, or conditions.

Agreement (cont’d) The agreement should contain: The names of contracting parties A brief description of the work A list of contract documents, including agreement, general conditions, drawings, and specifications. The contract sum, or amount (lump-sum contract) The procedures for payment The contract time, or dates for start and completion The signatures of contracting parties and witnesses International construction documents are also often based on industry-prepared standard forms.

AGREEMENT FORM SEE ATTACHED WORD FILE FOR EXAMPLES A number of organizations prepare recommended standard general conditions and associated forms. Such as: ENAA (Engineering Advancement Association of Japan) FIDIC (International Federation of Consulting Engineers) ICE (Institute of Civil Engineers, United Kingdom) JCT (Joint Contracts Tribunal) SEE ATTACHED WORD FILE FOR EXAMPLES

A.2 .Bonds / Guarantees FORMS 1- PERFORMANCE BOND / security The Contractor, upon receiving the Letter of Acceptance, shall obtain and provide to the Employer before signing the Contract, the Performance Guarantee in the value of ten percent of the Contract Sum, as a guarantee of the proper execution of the Works in accordance with the Contract. This guarantee shall be issued by a licensed bank or financial institution acceptable to the Employer. The guarantee shall be prepared in the form included in part B of these conditions. The obtaining of such guarantee shall in all respects be at the expense of the Contractor.The Performance Security shall be provided to the Employer no later than the date specified in the Letter of Acceptance and shall be issued in an amount specified in the PCC (particular conditions of contract), by a bank or surety acceptable to the Employer, and denominated in the types and proportions of the currencies in which the Contract Price is payable. The Performance Security shall be valid until a date 28 days from the date of issue of the Certificate of Completion in the case of a Bank Guarantee, and until one year from the date of issue of the Completion Certificate in the case of a Performance Bond. In general , it is 10% of contract value Defect liability CERTIFICATES Includes certificates of insurance, certificates of compliance with applicable laws and regulations.

Advanced payment bond Provide a guarantee that subcontractor, material suppliers, and others providing labor, material goods, and services to the project will be paid. The Employer shall make advance payment to the Contractor of the amounts stated in the PCC by the date stated in the PCC, against provision by the Contractor of an Unconditional Bank Guarantee in a form and by a bank acceptable to the Employer in amounts and currencies equal to the advance payment. The Guarantee shall remain effective until the advance payment has been repaid, but the amount of the Guarantee shall be progressively reduced by the amounts repaid by the Contractor. Interest shall not be charged on the advance payment.

Advanced payment bond (cont’d) The Contractor is to use the advance payment only to pay for Equipment, Plant, Materials, and mobilization expenses required specifically for execution of the Contract. The Contractor shall demonstrate that advance payment has been used in this way by supplying copies of invoices or other documents to the Project Manager. The advance payment shall be repaid by deducting proportionate amounts from payments otherwise due to the Contractor, following the schedule of completed percentages of the Works on a payment basis. No account shall be taken of the advance payment or its repayment in assessing valuations of work done, Variations, price adjustments, Compensation Events, Bonuses, or Liquidated Damages.

Defect liability Security After primary taking over, 5% guarantee is submitted to employer for defect liability, valid for 365 days or as stipulated in PCC.

INSURANCE Certificates Insurance for Works and Contractor’s Equipment, Insurance against Injury to Persons and Damage to Property , Insurance for Contractor’s Personnel