1. Advance Technician Diploma in Quantity Surveyor
Tendering an Estimating
M.Z.Ahamed zajath

2. Content Syllabus 71.11 - Method Of Contract/Contractual Arrangements
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3. Method of Contract/Contractual Arrangements
Lumpsum contract
Reimbursement/Reimburable/Cost plus contract
Design and Build contract
serial contract/Serial tender

4. Lampsum Contract Lump sum contract also known as fixed price contract
In Lump sum contract "the price for the entire scope of works are fixed"
Lumpsum Contract (Fixed Document) may come with BOQ and the lumpsum represents the total set out in the BOQ

5. When/Where lump sum contract use ?
Projects where scope of work is well-defined
Scope is unlikely to change and delays are unlikely to happen
Project with few bid item and short completion duration
Projects using Design-Build delivery
Eg : Bridge project,Mill/Resurface (without complex overbuild requirements)

6. Advantages Of Lump sum contract
The Final Price is known by the owner/client before the work commences (start)
The contractor has more incentive/chances to reduce his cost to increase the profit
The contractor hopes to complete the work as quick as possible to minimize overhead ,to maximize profit and to move to next work

7. Disadvantages of Lump sum contract
The L.S contract has very limited flexibility for design changes
The contractor carries much of risk (high risk contingency)
competent contractors (when tender) may decide not to bid to avoid high risk L.S contract

8. Cost Reimburable contract
Cost Reimburable contract also known as cost plus contract
this contract means that he method of payment to the contractor
this contract method suitable for complex project
This includes prime cost (cost of materials, plants and labor) and plus of fee and Administrative expenses (overhead)

9. Cost Reimburable contract cont..
Cost Reimburable contract can be devided into three type
Prime Cost + Fixed fee
Prime Cost + Percentage fee
Prime Cost + feeget fee / Cost + Fixed fee + profit sharing clauses

10. Advantages of Reimburable contract
Start Construction earlier without waiting for the whole set of of drawing and specifications
More Flexibility for owner to make changes
Draw the contractor expertise during design
profitable for contractor

11. Disadvantages of Reimburable contract
Owner doesn't know total price which may cause financial problems for him
Contractor pays less attention to cost control
No incentive to finish job quickly

12. Design and Build Contract
Where the Contractor undertakes both design work as well as the work of construction for the contract (Construction work)
Appropriate for medium to large project Eg: schools,Government buildings etc..
Contractor Responsible/Liable for
Faulty workmanship in construction
Any deficiencies in design

13. Advantages of Design and Build
Single point responsibility
The client only hire a contractor to undertake both design and construction work then the contractor is responsible for organizing and programming both activ ities
Saving in time/reduction of project time
Construction begin earlier before the design even completed

14. Advantages of Design and Build con
Fixed Amount
a fixed lump sum is already established onset, subject only to any employer changes
Easy line of Communication
The client has only one person to liaise with main contractor because the contractor is responsible for every thing

15. Disadvantages of Design and Build
Compromise in Quality of works and design
Higher Professional fee outlay
Employer's involvement less
High initial price/high risk

16. Serial Tender The project devided into several stage
Frist stage/project- awarded to a contractor using open or negotiated tendering
Next stages/project- awarded to the same contractor if succeeded in achieving client requirement in earlier stage ***
Appropriate for very large engineering project

17. Advantages of Serial tender
Achieve better quality with minimal cost
fewer set of documents are required
Contractors performance known
performance bond not required
Less time in assessing tenders

18. Disadvantages of Serial Tender
Mis opportunities (for new comers)
Less Formality (Make administration inquiries)
Less Accountability

19. Continue
Thank
You
M.Z.Ahamed zajath
Reference : Internet