1. What is a Contract (a) Offer and acceptance

2. How many ways can a contract be formed

3. How long does a contract last?

How long does the obligation continue?

What is maintenance period?

4. What is meant by the terms of a Contract?

(a) writing

(a) Until completion

Contract

(b) Consideration

(c) Intention to create legal relationship

(b) Oral

(c) Conduct

(b) What is completion

S.A. RYE & L. WATERMAN, GENERAL CONTRACTORS, 2333, LINCOLN’S FIELD, COMPTON, NEW JERSEY, 07633.

2 February 1977,

Mr. R. Beale,73, Chestnut Drive,Compton, New Jersey, 07632.

Dear Sir:

Re: Proposed Double Garage, at 73, Chestnut Drive, Compton.

We have examined the site and the Drawing (No. A134) for this proposed building, and we hereby offer to provide all labor, materials, and other things required to construct the Double Garage as shown in the Drawing for the Sum of $6,205.00 (six thousand, two hundred and five dollars) to be paid by you in one payment to us on substantial completion of the work.

We are prepared to start the work on April 8, 1977 and to substantially complete it by April 30, 1977.

We thank you for this opportunity to make a proposal for this work and hope that you will find our offer acceptable.

Yours Truly,

L. Watermain

5 February, 1977 73, Chestnut Drive,

Compton, New Jersey,

07632.

Messrs. S. A. Rye & L. Waterman, General Contractors,

2333, Lincoln’s Field,

Compton, New Jersey, 07633.

Dear Sirs:

Re: The Proposed Double Garage at 73 Chestnut Drive, Compton.

I have received your letter dated February 2, 1977, and I accept your offer.

Please start work on April 8, 1977. In the meantime, I shall arrange for the site to be cleared.

Yours Truly,

R. Beale

Construction ContractTarget: To build a luxury house with a garden

Step 1 : (a) To employ an Architect

(b) (i) Design

(ii) Approved plans

(iii) Detailed drawings with Specification

Step 2 : (a) To call tenders

(b) (i) 40M

(ii) 38M

(iii) 30M not include materials

Step 3 : a contract with terms

(b) 1 April 05 – 1 April 06

(c) payment as measured

(d) L.D. = $1000/day

(a) 38M

Construction Contract

What happens during construction? (a) Very heavy rain affecting progress of work

(i) Clause 50

(b) Typhoon causing injury and damage

(i) Clause 21

(ii) Clause 22

(c) Architect sick

(i) Who is the Architect ?

(d) Cash flow problems

(i) Clause 88

(e) Wrong position of column

(i) Clause 23

(ii) Excepted Risks

(a) Piling changed into spread footing because of shallow rock level

Bridge Construction

(b) Part of the abutment modified to save time necessary for watermain diversion

(c) The Contractor proposed to change the size of reinforcement to facilitate concreting

(d) The ER approved the use of parapet which was subsequently found not complying with specification

(e) In (d), what is the position after the issue of maintenance certificate

Definition of Condition of Contract

1. Difference between C. of C. and Specification

2. Other documents

4. Important Clauses

(a) Right & entitlement and obligation & liability of Contractor

3. Simple definition

(b) Right & entitlement and obligation & liability of Employer

(c) Power and duties of Engineer

1. Programme shows Contractor’s intention of how to carry out and complete the Work

2. Programme is useful

3. Various types of programmes

Programme (Clause 16)

(a) As a good management tool

(i) Allocation of staff and resources

(ii) Identify and delays and mitigation measures

(iii) Revise working sequences

(b) To determine Contractor’s entitlement to EOT

(i) must show critical path

(ii) concurrent delays

(b) Sub-programmes e.g. utility sub-programme

(c) 3-month rolling programme (compatible with Master Programme)

(d) Executive summary programme

(a) Clause 16 Master Programme

a2 a3 a4,b5 a3,b6 a,b,c

b2 b3

c2 c3 c4

c5

b4

Student A

Student B

Student C

Complete project

together (2 hours)

(1) Identify the critical paths

Network Analysis

(2) Identify the flow

(3) What happen if B’s breakfast is delayed by 10 min. ?

(4) What happen if A’s train is delayed by 15 min. and C’s ferry is delayed by 15 min. also?

A’s activities1. Leave home in Tai Po at 9:00a.m.2. Walk to railway station – 5 min.3. Train to Tsim Sha Tsui – 30 min.4. Meet B to buy materials – 10 min.5. Bus to School – 15 min.

3. Bus to Tsim Sha Tsui to meet A – 5 min.

B’s activities1. Leave home in Mongkok at 9:00a.m.

2. Take breakfast near home – 20 min.

4. Wait for A – 10 min.5. Buy materials – 10 min.

6. Bus to School – 15 min.

C’s activities1. Leave home in Central at 9:00a.m.2. Walk to shop to buy equipment – 5 min.3. Choose equipment – 15 min.4. Take ferry to Tsim Sha Tsui – 20 min.5. Bus to School – 10 min.

1. To submit within 14 days of acceptance of the tender 2. Showing the sequence, method, timing...due allowance for

carrying out Specialist Works and works by utilities undertakings

3. Contractor’s arrangements for carrying out the works...and of Constructional Plant and Temporary Works which the Contractorintends to supply, use or construct...

Programme (Clause 16)

4. Submission of programme... shall not relieve the Contractor of any duty or responsibility under the Contract

1. Contract may prescribe

Possession of Site (Clause 48)

(b) to be given possession from time to time.

(c) order in which such Portion shall be made available.

(d) requirement in the Contract as to the order in which

works shall be executed.

(a) extent of Portion of the Site…

2. The Employer shall give...so much of the site... to proceed with theconstruction of the Works.

3. The Engineer is of the opinion that the contractor has been involved in additional payment. Works...material affected by failure...to give possession...Engineer certify

Possession of the Site (Clause 48)

(f) in accordance with the programme referred to Clause 16. (g) otherwise in accordance with such reasonable proposals…

The Contractor shall make to the Engineer.

(h) from time to time…give to the Contractor further part of the site

Possession of Site Possession of Site (Clause 48)(Clause 48)Appendix to Form of TenderTime for completion 600 days

Portion

No. of days from commencement

A

B

C

D

0

200

400

450

Particular SpecificationThe contractor shall not commence the construction of primary pumping station before the completion of secondary pumping station

Primary Pumping Station

Portion A

Portion D Portion C

Portion B

Pumping Main

Secondary Pumping Station

1. What is variation? 2. Engineer’s power to order

3. Effect of variation

4. What is the pitfall of specifying levels and/or gradient?

Variation (Clause 60)

(a) Changes/additions

(b) Omission

(c) Work shown in drawings but not in BQ

(a) Cost implication

(b) Time implication

(a) In cut slopes

(b) In pile toe levels

(c) In drainage plans

(1) Necessary for completion of the Works

(2) Power to order any variation that for any other reason shall in his opinion be desirable for or to achieve the satisfactory completion and functioning of the Works

Variation (Clause 60)

(a) Additions, omission...changes in quality, form, character...

(b) Charges to any sequence, method or timing specified in the contract

Variation (Clause 60)

Variation Variation (Clause 60)(Clause 60)

Proposed Road

10

3

11

11

3

10

Estimated Rock Level

Actual Rock Level

Additional Excavation

Proposed RoadProposed Road

ValuationClause 61 (1)

(a) Item of works omitted valued at rate set out in Contract

(b) Any work of same or similar character under same or similar condition valued at rates set out in Contract

(c) Any work not of the same or similar character nor carried out under same or similar condition, based on rate so far as may be reasonable

Proviso

If the nature or extent of VO shall be such that in the opinion of the Engineer, any rate in any item of work is by reason of such variation rendered unreasonable or inapplicable than a new rate shall be fixed by the Engineer, using contract rate as the basis.

Comparison with Clause 63(b) – Disruption to the progress of the Works.

(1) The Bill of Quantities shall be deemed to have been prepared and measurements shall be made according to the

procedures... in the Method of Measurement (2) The quantities... in the Bill of Quantities are estimated

quantities...

(4)(b) Actual quantity of units...be substantially greater or less than

that stated in the BQ...

(3) Any error in description in BQ or items omitted...Engineer shall

correct any such error or omission...shall certify

Bill of Quantities (Clause 59)

- such increase or decrease itself

- shall render the rate for such item unreasonable or not applicable

- in the opinion of Engineer

- the Engineer shall determine an appropriate increase or decrease of rate

(1) What triggers re-rating (a) Method of construction changed

(2) Which is the Key word?

Bill of Quantities (Clause 59)

(b) Economics of construction changed

(a) What are included in the rate?(a) What are included in the rate?

Bill of Quantities Bill of Quantities (Clause 59) (Clause 59)

Quantity in Bill of QuantitiesQuantity in Bill of Quantities Rate Rate 500,000m500,000m3 3 100m100m3 3

Actual QuantityActual Quantity ? ?300,000m300,000m3 3

(b) What is the result of less quantities?(b) What is the result of less quantities?

ExampleExample

(i) labour(i) labour

(ii) plant(ii) plant

(iii) Overhead(iii) Overhead