Contract Module Part 1 - Planning Engineer Est. · Contract Module Part 1 . CONTRACT MODULE CONSTRUCTION CLAIMS MANAGEMENT EOT DELAYS ANALYSIS ... ( Fidic Contract Forms , NEC Form

Presented by :

Hany Ismail, MSc, PMP

CONSTRUCTION CLAIMS MANAGEMENT

&

EOT DELAYS ANALYSIS

Contract Module

Part 1

CONTRACT MODULE


EOT DELAYS ANALYSIS

WWW.PLANNINGENGINEER.NET

CONTRACT IS ONE OF THE MOST IMPORTANT REFERENCES

AND DOCUMENTS FOR ANY CLAIM , YOU HAVE TO REFER

FOR EVERY ENTITLEMENT YOU ASKING FOR IN YOUR CLAIM

WITH THE CONTRACT REFERENCE AND ITS CLAUSE.

IN CONTRACT MODULE AND ITS LECTURES WE WILL FOCUS

ON SOME OF THE MOST IMPORTANT CONCEPTS AND

ESSENTIAL INFORMATION , YOU HAVE TO KNOW DURING

YOUR CLAIM PREPARATION FORM THE CONTRACT

ADMINISTRATION POINT OF VIEW.

http://www.planningengineer.net/

PART 1

INTRODUCTION ABOUT CONTACTS &

CONTRACTS TYPES


EOT DELAYS ANALYSIS



Construction Claims Management ( Contract Module – Part 1 )

Agenda • Introduction

• Construction Industry Parties

• What is Contract ?

• Contract Strategy

• Contract Need

• Contract Documents

• Contract Documents Priorities

• Construction Contract Forms

• Contracting Process

• Types of Contract

• Conditions of Contract

• Legal Laws WWW.PLANNINGENGINEER.NET




Construction Industry Parties

The key parties involved in most construction projects

and considers what each of their roles are and how

they are linked to one another i.e. the contracts that are

entered into between them.

Employer

Contractor

Professional Team ( Engineer )

Sub-Contractors

Employer's Agent/Project Manager

Funder / Sponsor




Construction Industry Parties

The relationship between all the parties differs

according to the contract type ,form and conditions.

Contractor

Engineer

Employer




What is a Contract

A contract is defined as: “An agreement made

between two or more parties which is enforceable by

law to provide something in return for something

else from a second party".

The two parties are expected to perform the various

obligations they have undertaken, as expressed in a

mutually agreed set of contract documents.




Contract Strategy

Contract strategy means selecting organizational

and contractual policies required for the execution

of a specific project.

The development of the contract strategy comprises

a complete assessment of the choices available for

the management of design and construction to

maximize the probability of achieving project

objectives.




Contract Strategy

A proper contract strategy for a project involves Four

key decisions:

Setting the project objectives and constraints.

Selecting a proper project delivery method.

Selecting a proper contract form / type.

Contract administration practices.




Do you think …

All Agreements are Contracts ??




Competent (legal standing) Parties

For an agreement to be a contract, there must be two or

more competent parties. In order to be considered

competent, a part must have a certain legal standing.

Proper Subject Matter

For the subject matter of a contract to be proper, the first

requirement is that it was be clearly defined as to the

rights and obligations of each party. Second, the

purpose of the contract must not violate the law.




Consideration

There must be a lawful and valuable consideration given

to both parties. A consideration often called "Something

for Something." A consideration must, also, be possible.

Agreement

For valid contract, there must be a mutual agreement.

An agreement is considered to have been reached

when an offer made by one party is accepted by the

second party. Both parties must wish and intend their

bargain to be enforceable by law.




Proper Form

The terms of a contract must be written so that both

parties are very sure of what their rights and

responsibilities are.

Consent (agreement) of the Parties

The agreement must be free from Misrepresentation or

Duress (by force) , ..etc.




Contract Need

Contracts provide a description of responsibilities and

liabilities.

Contracts bind parties to their duties.

Contracts can establish a time frame for duties.

Contracts can secure payment.

Contracts can provide resources.




What are the …

Contract Documents??




Contract Documents

The contract is defined by the contract documents,

which are developed from the tender documents.

Contract

Documents

Agreement Form

General Conditions

Special Conditions

Additional




Contract Documents

1- Contract Agreement.

Which represent the final agreement document that is signed by both

parties and contains the full detailed information about them.

2- Letter of Tender.

Letter of Tender is the letter which is completed by the contractor and

contains the signed offer to the Employer.

3- Letter of Acceptance.

Letter of Acceptance” is the letter sent from the Employer to the

contractor including any annexed attached agreed between both parties.

If the Letter of Acceptance is not available it will be referred to the

Contract Agreement and related dates.




Contract Documents

4- Conditions of Contract.

1. Special Conditions.

2. General Conditions

Which represents the rights and obligations for both parties

5- Specifications.

Which should contain a detailed description on design and material used

in execution.

6- Drawings.

Which Indicates to the drawings specified in the Specification Document

and any drawing modifications written by the Consultant.




Contract Documents

7- Programme

Means the document(s) entitled schedules, completed by the

Contractor and submitted with the Letter of Tender, as included in

the Contract. Such document may include the Bill of Quantities,

data, lists, and schedules of rates and/or prices.




Contract Documents Power??




Contract Documents - Priorities

In the Case of any differences arising between the contract

documents, What is the order of documents power?

For Example :

1.The Contract Agreement 5.Drawings

2. Letter of Acceptance 6. Specifications

3. The Particular Conditions 7.B.O.Q

4. The General Conditions




Construction Contract Forms

They are forms guide the drafting of documents on civil

engineering and construction projects for the purpose of

obtaining tenders, awarding and administering Contracts.

As such they legally define the responsibilities and duties

of Employers (who commission work) and Contractors

(who carry out work) in the Works Information such as

( Fidic Contract Forms , NEC Form , …etc.).




Contracting Process

Prepare Tender Documents

Identify Project

Prepare Scope

Select Contract

Invite Tenders

Tender Meetings

Tender Evaluation

Place Contract




Types of Contracts

Contract

Cost based

Cost Plus

Target Cost

Price based

Unit Price

Lump Sum


Unit Price contract

Construction Claims Management & EOT Delay Analysis – Part 1

Contract Value: Tender price is usually increased by

variations and claims.

Payment : Payment is paid monthly for all work

completed during the month or any duration agreed .

Design Changes : Offers a facility for the client to

introduce changes in the work defined in the tender

documents.

Additional Payments : Additional payments for any

changes in the work content of the contract.

Unit Price contract



Using : This contract is best suitable for repetitive

works.

Variations : Not limited

Additional Payments : For variations or quantity

increase of the items in the BOQ


Lump-sum contract



Contract Value: Single tendered price is given for the

completion of specified work by a certain date.

Payment : May be staged at intervals on the completion.

Design Changes : Contract has a very limited flexibility

for design changes.

Contract Final Price : Final price is known at tender.

Contractor Risk : High Level of Risk.

Employer Risks : Low Level of Risks, transfer risks to

the contractors.


Lump-sum contract



Using : This contract may be used for a turn key

construction

Important Risk : An important risk t the client is that of

not receiving competitive bids from desirable

contractors who may avoid a high-risk lump-sum

contract.

Variations : limited variations are expected

Additional Payments : For variations Only.




Construction Claims Reference

to the Contract




Construction Claims

• A construction claim is a request for payment or

time extension to which the contractor considers

him/herself entitled under the contract conditions

and terms . There are three types under which

claims are required:

Extension of time only.

Additional cost.

Both extensions of time and additional cost.




Legal systems

Legal Systems

Civil Law

(القانون المكتوب )

Common Law

(السوابق القضائية)




Egypt Applicable Law

Egypt Applicable Law

Civil Law

(« القانون المدنى»القانون الخاص )

Administrative Law

(« القانون اإلدارى»القانون العام )

Law 89 and its Amendments

Law 119 year 2008 ( (قانون البناء الموحد

Arbitration Law (Law 27 year 1997)

قانون )

(التحكيم





Thank You …

Contact InfoWWW.PLANNINGENGINEER.NET

[email protected]

Mobile : +20 1277767728 /PlanningEngineerDotNet

We hope you enjoy our lecture today

Hope to receive your feedback and recommendations

/groups/4809645

