1. CONSTRUCTION CONTRACTS DOCUEMENTS
BY LECTURER Maha Muhaisen
APPLIED CIVIL ENGINEERING DEPT

2. Lecture (4)

3. 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

4. 2-1 Instruction to bidders (cont’d)
See attached example for ITB.

5. 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

6. 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..

7. 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.

8. 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,

9. See attached file

10. Lecture (5)

11. CONSTRUCTION DOCUMENTS

12. 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

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

14. 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.

15. A 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.

16. 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.

17. 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

18. 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.

19. 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.

20. 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.

21. 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.

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