Jekale

JekaleCM
CMConsultancy
Consultancy
January
January2012
2012

06/22/24 JCMC 1
 Part 1: Contract Part II: Formulations
1. Definition 1. Negotiations
2. Requirements 2. Contract Agreement
3. Purposes 3. Contract Document
4. Bases
5. Entitlement & Promises
6. Management Processes

Part III: Administration Part IV: Closing

1. Preparation & Startup 1. Acceptances & Completions
2. Implementation + QA 2. Outstanding issues settlement
3. Price + / - Time Variations 3. Closing of Accounts
4. Contract Evaluation
5. Extra Contractual Liability

06/22/24 JCMC 2
06/22/24 JCMC 3
 Six basic things to know about contracts
Defining Elements

Requirement to fulfill

Purposes to attend

Bases to establish

Basic Entitlements and Promises

Contract Management Processes

06/22/24 JCMC 4
06/22/24 JCMC 5
 Promises &
Capable Consideration Legal &
& Lawful Distinct

06/22/24 JCMC 6
 Capable &
Lawful

Parties entering into contract

shall be capable of contracting
Minor / Infant
Bankrupt
Aliens enemy
Non – Eligible
Mentally Disable

06/22/24 JCMC 7
 Legal & Distinct

Object of the contract shall be

sufficiently defined, possible
and lawful
Drawings
Bill of Quantity
Preambles
Technical Specification
Terms & Conditions

06/22/24 JCMC 8
 Promises &
considerations

To carry out and / or vary or

exchange and / or extinguish
something for a certain
Promises compensation Considerations
Constructing a building Payment
Constructing a road Other Benefits
Constructing a dam Exchanges
Demolishing a bridge Rewards

06/22/24 JCMC 9
 Offer &
Acceptance

Willingness to be bound by
specific terms set out &
indication of consent.
offer Acceptance
Form of Tender
Conditional Acceptance
Priced BoQs
Unconditional Acceptance
Bid Security
Alternative, if any

06/22/24 JCMC 10
 Standards ,If
any

Contract forms prescribed

by law.
Terms
Technical specifications
Forms, Formats, Schedules
Instructions

06/22/24 JCMC 11
 Intent &
Agreement

Consent of contracting
parties is necessary
Signature
Sealing (Optional for
Individuals)

06/22/24 JCMC 12
 Promises &
Capable Consideration Legal &
& Lawful Distinct

06/22/24 JCMC 13
 Four purposes to attend

• Rights
• Obligations
• Remedial Rights

06/22/24 JCMC 14
06/22/24 JCMC 15
 Contractual
Arrangements

Unilateral / Multilateral
optional / if contract
contract

Bilateral
contract

06/22/24 JCMC 16
 Delivery System

Force Account,
Finance/Build
Design Bid Build
Design Build Operate (BOT)
(DBB)
(DB) or Turnkey

Facility / Construction Alliance and

Management System Outsourcing

06/22/24 JCMC 17
 Total General
Contracting Contracting

Contracting
Method

Sub Special
Contracting Contracting

06/22/24 JCMC 18
 Bill of quantities /
Unit Rate contract

Hybrid
Lump Sum
Contract
Contract
Contract
Type
Item/Schedule Special
Rate Contract Contract

Cost plus Fixed /

Percentage /
Incentive Fee

06/22/24 JCMC 19
 Regulatory
Causes Description Employer Engineer Contractor
Body (RB)
The word “cost” shall include
1.4 &
Direct, Indirect & OH costs Obligation
8.1
whether on or off the site
Issuing decisions certificates & Rights Rights
2.1 Consent
orders Except a-i for a-i
Obligation
2.2 Supervision works Obligation
(final accp.)
Prior consent for assignment of
3 Right obligation
work
Prior consent for subletting of
4 Right obligation
work
Cost Due to contract document Remedial
5.2 Obligation Administer
ambiguity or discrepancy Rights
Provide notice when progress of
6.3 Right
work are disrupted
Delay and cost of delays due to
failure of the Engineer to issue Remedial
6.4
instruction, direction, order with Right
in reasonable time
06/22/24 JCMC 20
 Regulatory
Causes Description Employer Engineer Contractor
Body
Notification when error,
omission, fault, defects are
8.3 Obligation
discovered on the design &
specification
-Provide 10% performance Obligation
Bond within 30 days of receipt
10
of the letter of acceptance
-Cost of performance Bond Obligation
All necessary site inspection
11 Obligation
prior to tender submittal
Obligation
-Sufficiency of tender
12 Obligation Administer Remedial
-Not reasonably foreseen
right
during execution of work
obligation
Work execution in accordance
13 with the contract & to the Administer Obligation
satisfaction of the Engineer

06/22/24 JCMC 21
 Regulatory
Causes Description Employer Engineer Contractor
Body
-Submit program within 30 Obligation
days after letter of acceptance
-Approval of program Obligation Right
-Request Revised program Obligation
14
-Submit revised program within Obligation
30 days after request
-Approve revised work Obligation Right
program
15 Approval of Superintendent Obligation
Removal of non appropriate
16.2 Right obligation
superintendent
Proper setting out work in
17 relation to original points, lines Obligation
& levels.
Boreholes & Exploratory
Remedial
18 excavation if not included in Right
Right
the contract
Fencing, Lighting and
19 Obligation
Watching

06/22/24 JCMC 22
 Regulatory
Causes Description Employer Engineer Contractor
Body
Care of works until the date
20.1 Obligation
stated in the certificate
21, 22, To arrange necessary
Obligation
23 & 24 insurances
Remedy on contractors failure
25 Obligation
to arrange insurance
Comply with statutes etc. and
Obligation
26.1 indemnify the Employer
against penalties
Precautions to prevent
workman/any other person
27 obligation
from removing or damaging
any fossils, coin & articled
Work execution with in the
29 Obligation
contract permit
Extraordinary traffic for
30.1 execution of work shall be Obligation
reasonably prevented

06/22/24 JCMC 23
 Regulatory
Causes Description Employer Engineer Contractor
Body
-Extra ordinary traffic Obligation
notification
30.2 Administer
-Cost for the necessary works Remedial
for strength / protection Obligation Right
32 Keeping the site clear Obligation
Clearing the site after the
33 Obligation
completion of project

Arrangement for the Right /

34.1
engagement of labor Obligation

34.2 Supplying water Obligation

-Reporting any received claim
arising out of the execution of Obligation
works in respect of damage or
injury to highway
34.3
-Amount of damage due to Remedial
Obligation
execution of works Right
-Amount of damage due to
Remedial
contractor and certified by the Obligation
Rights
engineer
06/22/24 JCMC 24
 Regulatory
Causes Description Employer Engineer Contractor
Body

-Providing labor, material,

instrument that are required
36.1 for examining, measuring & Administer Obligation
tasting any work & quality.
Cost of sample & cost of test

37 Inspection of operations Right

Notification to engineer when
38.1 works are ready to examine Obligation
before covering up
Uncovering but found as per Right Remedial
38.2 the contract Right
Uncovering and found incorrect Right Obligation

Order in writing for the removal

39 Rights
of improper work & materials

Written order of the engineer

for suspension of the work, Remedial
40(1) Rights
Extra cost incurred by the Right
contractor (except a-d)
06/22/24 JCMC 25
 Regulatory
Causes Description Employer Engineer Contractor
Body

Commencement of work on
41 Obligation
site within agreed time

43 Definite time of completion Rights

Extension of time for Extra
work / additional work / other
44 Obligation Right
special circumstances within
twenty - eight days
seek consent for work at night
46 Right
or on rest days
Expedite progress if required
Remedial
45 by the Engineer but not Right
Rights
default by the contractor
Deduct Liquidated Damages
47.1 for delay from payments due Right
to Contractor
Give notice of substantial
48 Right
completion

06/22/24 JCMC 26
 Regulatory
Causes Description Employer Engineer Contractor
Body
Obligation /
Cost of repair at the expense
49.3 Remedial
of contractor
Right
50.1 Order for variation work Right
Fixing unit price for variation
52.1 Right
work
Plants and materials to remain
53 Obligation
onsite
54 Approval of material Right
Excess in qualities of work to
55 Obligation
be executed
To be paid the value of the
56 works determined by Rights
measurement
Nomination of sub contract Rights
59
Approval of sub contract Consent Right
Submission monthly statement Right /
60.1
for progress payment Obligation
06/22/24 JCMC 27
 Regulatory
Causes Description Employer Engineer Contractor
Body

Receive interim payments within

60.2 Rights
30 days

-with 30 days after the date of

issue of the maintenance
certificate, the contractor shall Obligation
submit a statement of final
account to the engineer
60.6
-with 30 days after receipt of
final account & information
required for verification final Obligation Right
certificate shall be issued to the
contractor
-Certifying remedies of defects Obligations
62 - maintenance certificate within
28 days of remedying of defects Obligations Right
Remedial
63 Default of contractor Administer
Right
Urgent remedial works when
64 Right
contractor failed to do so

06/22/24 JCMC 28
 Regulatory
Causes Description Employer Engineer Contractor
Body
65 Special risk Obligation

67 Settlement of Disputes Rights Administer Rights Administer

Remedial
69 Default of Employer Administer
Right
Cost Escalation Obligation Administer Remedial
70
Cost deflation Right Right
Warranty for defects for 10 Obligation
71
years

72 Taxation Obligation
-Use of Explosives and their
73 Obligation
costs

06/22/24 JCMC 29
 Negotiation
Closing of accounts
Contract agreement
Contract evaluation
Contract document

Contract Implementation
Change management
Claim & dispute management

06/22/24 JCMC 30
06/22/24 JCMC 31
 IF Contract Definite Contract
Offers to negotiate Unconditional Acceptance
Offers to receive offer Battle of forms
Subject to contract Setting Essential Terms

Negotiations

Offer Acceptance

Promises   Consideration

Contract Agreement
(Contract Document)

06/22/24 JCMC 32
 1. Alternatives included in the offer
N
eg
2. Employer’s issues raised for negotiations, if any ot
ia
3. Mobilization issues tio
ns
• Site layout or Camp construction Is
su
es
• Quarry, Borrow pits and Plant sites
• Mobilization advance disbursement schedule
• Subsequent Mobilization requirements, if any

4. Tender Documents discrepancies and gaps, if any

5. Programs: Works, Resources Deployment, Financial Disbursement and
Request schedules
6. Assignments and Subletting Issues
7. Submittals, Samples, Workshop drawings, etc
8. Necessary and relevant cooperative issues, if any

06/22/24 JCMC 33
1. Revise all terms & requirements in accordance with the negotiation results, or
2. Attach Minutes of Contract Negotiation and provide as priority in the contract
Co
agreement or in the Special Condition of Contract nt
ra
ct
3. Ensure the following contents are not left out: Ag
• Contract Signing Date
re
em
en
• Parties Contracting and their addresses tI
ss
• Construed parts of the contract and / or their priority ue
s
• Interpretation as per the Conditions of Contract
• Recitals on desirous works or services including project name and their
acceptance
• Consideration for the promises including such other sums and remedy of defects
as per the conditions of contract
• Signature (in the capacity of), Seal and Witnesses as applicable

4. Appendix to Contract Agreement (Serves as a summary only)

06/22/24 JCMC 34
 Sample Form for Contract Agreement
Sample Form for Contract Agreement
Form
Form of
of Agreement
Agreement 3.In Consideration of the payments to be
This
This Agreement
is
Agreement hereinafter
is made
made on
on the
hereinafter called
the ___
___ day
day of
called “the
of __
__ 20
“the Contract”
20 __
Contract”
__ between
between onon
made by
made by
3.Inthe
Consideration
Employer to
the Employer
of the
the payments
Contractortoas
to the Contractor
be
herebyas
Sa
Ag mp
hereinafter mentioned, the Contractor
the
the oneone part
part __________
__________ of of ________
________ hereinafterwithmentioned,
covenants the Employer the Contractor
to execute hereby
and
hereinafter
hereinafter called
called “the
“the Employer”
Employer” andand on
on the
the covenants
complete the with
Works the andEmployer
Remedyto any execute
defects and
re le
other
other part
part _______
_______ hereinafter
hereinafter called
called ‘the
‘the complete
therein the Works inand
in conformity all Remedy
respects anywithdefects
the em C
en ont
Contractor”
Contractor” // “the
“the Consultant”.
Consultant”. therein in
provisions conformity
of the Contract. in all respects with the
provisions
4.Theof the Contract.
Employer hereby covenants to pay
Whereas
Whereas thethe Employer
Employer is is desirous
desirous that
that certain
certain 4.TheinEmployer
the Contractor herebyofcovenants
consideration to pay
the Contract t F rac
works
works // services
services should
Contractor //
should be
be executed
executed by
Consultant,
by the
the
viz.
the of
Price Contractor
Pricethe
such otherin sum
of provisions
such other of
consideration
sum
as may become
theas
of thepayable
may become
Contract
at the payable
or t
Contractor
_________________
_________________ and
Consultant,
and hashas accepted
accepted the
viz.
the
under
under
and in thethe provisions
manner prescribed
Contract
of thebyContract
times
at the times
the Contract.
m
tender
tender for
for the
the execution
execution // implementation
implementation and
and and in the manner prescribed by the Contract.
completion
completion of of such
such works
works // services
services and
and the
the In Witness Whereof the parties hereto
remedying
remedying ofof any
any defects
defects therein.
therein. have caused In Witness Whereof
this Contract the partiestohereto
/ Agreement be
have incaused
signed this Contract
their respective places/ asAgreement
of the day, to
thebe
Now
Now this
this Agreement
Agreement witnesses
witnesses as
as follows:
follows: signed
month andinthe
their respective
year places
first above as of the day, the
written.
month and the year first above written.
1.In
1.In this
this Agreement
Agreement words
words andand expressions
expressions shall
shall
have
have the
the same
same meanings
meanings as as are
are respectively
respectively For and on behalf of the Employer
assigned
assigned to to them
them inin the
the conditions
conditions ofof contract
contract For and on behalf of the Employer
_________________ _______________
herein
herein after
after referred
referred to.
to. _________________
Signature _______________
Date
2.The Signature Date
2.The following
following documents
documents shall shall be
be deemed
deemed to to
form For and on behalf of the Contractor
form and
and be be read
read and
and construed
construed as as part
part of
of this
this For and on behalf of the Contractor
__________________ _______________
Agreement,
Agreement, viz:viz: __________________ _______________
Signature Date
•• The
The Letter
Letter ofof Acceptance
Acceptance Signature Date
•• The
The said
said Tender
Tender
•• The
The Conditions
Conditions of of Contract
Contract (I+II)
(I+II)
•• The
The Specifications
Specifications
•• The
The Drawings,
Drawings, and and
•• The
The Priced
Priced Bill
Bill of
of Quantities.
Quantities.

06/22/24 JCMC 35
 Conditions of Contract Pertinent Clauses Conditions
Conditions of Contract Pertinent Clauses Conditions

Sa ntra
Language of Contract Clause … English

Co
Language of Contract Clause … English

m ct
Applicable Law Clause … Ethiopian Law
Applicable Law Clause … Ethiopian Law

pl A
Mobilization Time Clause … … Cal. Days

e
Mobilization Time Clause … … Cal. Days

Ap gre
Contract Time Clause … … Cal. Days
Contract Time Clause … … Cal. Days

pe em
Maintenance Period Clause … … Cal. Days
Maintenance Period Clause … … Cal. Days

nd en
Liquidated damages
Liquidated damages

ix t F
Amount Clause … … per days of delay

to or
Amount Clause … … per days of delay
Limit Clause … … % of CP

th m
Limit Clause … … % of CP

e
Performance security Clause … … % of CP
Performance security Clause … … % of CP
Advance Payment Clause … … % of CP
Advance Payment Clause … … % of CP
Interim Certificate
Interim Certificate
Time Clause … … Cal. Days
Time Clause … … Cal. Days
Amount Clause … …
Amount Clause … …
Interest Rate Clause … Bank’s Selling Rate
Interest Rate Clause … Bank’s Selling Rate
Currency
Currency
Types Clause … …..
Types Clause … …..
Amount Clause … … % of CP
Amount Clause … … % of CP
Exchange Rate Current / Base
Exchange Rate Current / Base
Retention Amount Clause … … % of CP
Retention Amount Clause … … % of CP

06/22/24 JCMC 36
 1. Signed & Sealed Form of Contract Agreement with appendix if
necessary (See Slide No. …)

2. Signed & Sealed Minutes of Contract Negotiations, if any and

are not incorporated elsewhere

3. Signed & Sealed Form of Tender with appendix, if necessary

4. General & Particular Conditions of Contact

5. Scope of Requirements including

1. Terms of References, if any

2. Technical Specifications and Methods of Measurement

3. Price Bill of Quantities, Drawings and their Preambles if necessary

6. Necessary Contractual Forms, Formats & Schedules

06/22/24 JCMC 37
 Signed & Sealed Form of Tender
• General provisions such as
• Date, Tender Reference no., Name of Project, Number of Pages and to whom it
shall be addressed
• Declaration on
• No reservation or With reservation on tender documents
• Contract price considered as offer including currencies and proportions, if any
• Advance Payment Requirement including currencies and proportions, if any
• Discounts or Rebates offered and their methodology of applications
• Validity period of the offer
• Nationality of the offeror’s and any sub contractors
• Non existence of conflict of interest with contract administration entities
• Non debarring from public procurements or fulfilling all eligibility requirements
• This offer and the letter of acceptance formulated an if contract
• Acceptance of Dispute resolution mechanisms and name of institutions or
individuals as applicable
• Signature (in the capacity of) and Sealing

06/22/24 JCMC 38
 Sample Signed & Sealed Form of Tender
Date: [insert date] We have no conflict of interest in accordance with the ITB;
Procurement Ref. No.: [insert tender reference no]
Page [insert page no] of [insert total n0 of pages] pages Our firm, its affiliates or subsidiaries - including any subcontractors /
suppliers for any part of the contract - has not been debarred from
To: [insert complete name of Employer] participation in public procurement by the Government of the FDRE,
in accordance with the ITB ;
We, the undersigned, declare that:
We have read & understood the provisions on fraud and corruption
We have examined and have no reservations to the Bidding in the ITB and we undertake to abide by the Code of Ethical
Documents, including Addenda No.: [insert the number and Conduct for Bidders during the procurement process and the
issuing date of each Addenda]; execution of any resulting contract;

We offer to execute the [insert the name & procurement ref. no We understand that this bid, together with your written acceptance
of the Contract] in conformity with the Bidding Documents for thereof included in your notification of award, shall constitute a
the Contract Price of [insert amount in no & words] Ethiopian binding contract between us, until a formal contract is prepared and
Birr, excluding any discounts offered below; executed.

The advance payment required is …..…. Ethiopian Birr: We understand that you are not bound to accept the lowest
evaluated bid or any other bid that you may receive.
The discounts offered & the methodology for their application are:
………………… We accept / do not accept the appointment of [insert name of
……. proposed in the BDS] as the ………... and propose instead
Our bid shall be valid for a period of [specify the no of days that that [insert name] be appointed as ……. Whose fees and
the bid is valid for] calendar days from the date fixed for the bid biographical data are attached.
submission deadline in accordance with the ITB, & it shall remain
binding upon us & may be accepted at any time before the Signed: [insert signature]
expiration of that period; In the capacity of [insert legal capacity of person signing the
Bid]
We, including any subcontractors / suppliers for any part of the Name: [insert complete name of person signing the Bid]
contract, have nationality from the following eligible countries: Duly authorized to sign the bid for and on behalf of: [insert
[insert the nationality of the Bidder, including that of all complete name of Bidder]
parties that comprise the Bidder, if the Bidder is a JV, and Dated on ____ day of _________ , _____ [insert date of signing]
the nationality of each subcontractor and supplier]

06/22/24 JCMC 39
 Conditions of Contract
1. Standard & Particular Conditions of Contract is the administrative
law applicable to the contract which is legally enforcing the
contracting parties to their terms.
2. The special conditions are meant for those particular contexts
and requirements that can not be standardized and generalized
into common conditions of contract.
3. Clauses in both conditions of contract shall be the same.
4. Generally, conditions of contract cover:
a. Definitions and interpretations of terms used in the contract
b. Construed Contract document parts with priorities, supply of drawings,
supplementary documents
c. Obligations, Rights and Remedial Rights
d. Services / Goods / Works, their Measurement and Certifications
e. Alterations, Claims and Dispute Settlement.
Samples:
MWUD 1994, FIDIC 1999, Harmonized FIDIC 2006 and Other General and
Particular Conditions of Contract

06/22/24 JCMC 40
 Scope of Requirements
1. Standard & Particular Terms of References / Scope of works or
Services
2. Standard & Particular Technical Specifications including Methods
of Measurement & Manufacturers’ technical specifications
3. Drawings & Priced Bill of Quantities including BoQs’ technical
specification in short form & with preambles as applicable

Forms and Formats

1. Form of Contract Agreement and 1. Handing over site Format
Tender (See Slides No. … & …) 2. Change order / instruction format
2. Form of Tender, Contract or 3. Progress Reporting Formats
Performance and Defect Liability 4. Price Indices Formats
or Maintenance Security 5. Measurement & Payment Cert.
3. Form of Advance Payment Formats
Guaranty 6. Completion Cert. Format

06/22/24 JCMC 41
 Scope of Requirements

Schedules and Breakdowns

1. Work Schedules and Breakdowns
• Trades / Items of works, Day, Provisional and Temporary works
2. Organization Breakdowns
• Head office and Site
3. Resources Schedules and Breakdowns
• Workmen, Material and Equipment / machinery
4. Cost Breakdowns
5. Financial Schedules
• Cash flow and Payment

06/22/24 JCMC 42
 Af Co
1. Extrinsic evidence is not admissible for cases when

ter ntr
&

Ne act
• Blank to complete is left in the contract & requested for

go is
tia co
consideration during contract implementation

tio nc
ns lud
• Disregarded terms after negotiation is not part of the contract

Iss ed
• Subsequent conduct not in line with the contract

ue
s
2. Extrinsic evidence is admissible for cases when
• Factual background such as aim of the contract and evidence of the genesis
• Surrounding circumstances when the agreement was entered into
• When words and expressions are related to special customs or usage of the
business or locality in the contract
• When an agreed assumption in the contract determines the outcome of the
conduct of the contract such as third party instructions, approval, etc
• When contract conduct is dependent on an unfulfilled condition precedent had
taken place and the event has not occurred either at all or within the agreed time

06/22/24 JCMC 43
06/22/24 JCMC 44
 Preparation and Start up
1. Review the contract documents
• Identify Contractual Responsibilities of Stakeholders
• Determine and Understand the construction components of the project
• Identify Contract discrepancies
2. Review submitted / Prepare Work, Resources and
Financial programs
• Consider contract discrepancies (at least for in house planning)
• Determine Crew following the construction method selected
• Develop Organization Breakdowns
• Identify resources and financial sources
• Revise / Prepare Programs and get approval

06/22/24 JCMC 45
 Reviewing the Contract Documents

1. Identify Contractual Responsibilities of Stakeholders

(Slide Nos. 20-29)
• Review the terms of the contract conditions
• Review the terms of references
• Extract monitoring responsibilities
• Prepare monitoring responsibility summary sheet

06/22/24 JCMC 46
 Reviewing the contract document

2. Determine and Understand the construction

components of the project
• Review the contract drawings and technical specifications
• Develop Work breakdown structures
• Extract the construction methods and sequences of
operations
• Prepare overall construction methods and overall
sequences sheet

06/22/24 JCMC 47
 Reviewing the Contract Documents

3. Identify Contract Discrepancies

• Compare design or plan and actual site conditions
• Compare specification, bill of quantities and drawings
• Determine potential extra works, excess in quantities,
variations (additions and omissions)
• Determine potential design changes, cost overrun, time
overrun
• Communicate findings to Consultant and Employer
• Request clarifications and amendments, if necessary

06/22/24 JCMC 48
 Review submitted / Prepare programs
1. Consider contract discrepancies (at least for in house
planning)
• Determine when these discrepancies affect the program
• Assume how fast shall the response be on clarifications and
amendments
• Communicate your assessment on the impact of these
discrepancies

06/22/24 JCMC 49
 Review submitted / Prepare Programs
2. Determine Crew following the construction method
selected
• Define work components into self and sub contract
• Define sub contractors for sub contracts
• Define standard crews for use (MoWUD pre - norms, ERA
standard crews)
• Define Labor and Equipment requirements and their
productivities
• Determine schedules per crews

06/22/24 JCMC 50
 Review submitted / Prepare programs

3. Develop Organization Breakdowns

• Develop Site Organization structure
• Develop relationships with head office Organization
structure
• Develop new requirements at head office level, if necessary
and as applicable

06/22/24 JCMC 51
 Review submitted / Prepare programs

4. Identify resources and financial sources

• Determine type and quantity of resources
• Decide on Head office Vs Site Supplies
• Decide on Self purchase Vs Suppliers Credit for materials
• Decide on Owned Vs Rented Vs Leased options for
Equipments

06/22/24 JCMC 52
 Review submitted / Prepare programs

5. Revise / Prepare Programs and Get Approval

• Determine sequences of operations
• Determine resources requirements
• Prepare the program and get it approved
• Introduce and make known your program to all involved (a
continuous process)

06/22/24 JCMC 53
 Implementation and Quality Assurance
1. Carry out Obligations
2. Request Rights as early as possible
3. Demand and Obtain Remedial Rights

06/22/24 JCMC 54
 Implementation and Quality Assurance
1. Carry out Obligations
• Construction Methods, Resources and Works Approval on time
• Study Instructions and Orders; Process and Plan for
Implementation; Submit impact and Execute as per agreement
• Carry out works in accordance with the contractual conditions
and schedules of requirements
• Record, Supervise or Monitor and Evaluate progresses of
mobilizations, supply of resources and construction works
• Measure completed works
• Insure works, resources, sites and third parties

06/22/24 JCMC 55
 .

Implementation and Quality Assurance

2. Request Rights as early as possible

• Submit clarifications with possible interventions
• Request for joint assessment of critical issues
• Request payments

06/22/24 JCMC 56
 .

Implementation and Quality Assurance

3. Demand and Obtain Remedial Rights

• Carry out exhaustive effort to prevent causes for claims
• Notify intent to claim
• Submit substantiated claims when effect(s) occurred
• Use amicable settlement as much as possible for dispute
settlement

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 Price + / - Time Variation
1. Price Variations
• Excess in Quantities
• Variations
• Extra Works
• Cost Increases / Escalations
• Prolongations due to Disruptions / Suspensions
• Payment Delays

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 Price + / - Time Variation
2. Time Variations
• Initial Delays
• Interim Delays
• Final Delays

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 Time Variations
• Initial Delays
• Late handing over of Site
• Late assignment of Resident Engineer
• Late transfer of initial control points
• Incomplete contract documents to start the works
• Lack of access to Right of Ways
• Non clearance of obstructions
• Suspension prior to start of works
• Advance payment delays

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 Time Variations
• Interim Delays
• Late clarification
• Design changes causing variations if critical
• Requirement changes
• Extra works
• Disruptions
• Suspensions
• Payment delays

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 Time Variations
• Final Delays
• Late acceptance by the employer after completion of certificate

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 Seven important points to look into: Consultant perspective
1. The Contractor shares, in most cases, the Owner’s desire for a final product of high quality;
however, a contractor who becomes caught in an irreconcilable conflict between providing
that level of quality and realizing what he believes to be a reasonable profit will usually
choose to pursue the profit.
2. Construction is recognized as much an art as a science and that the attainment of something
less than perfection is accepted by the Owner and several Courts.
3. Contract Administrator of the consultant is not a party to the contract between the Owner and
the Contractor, but is a participant in the construction process to promote the successful
performance of projects in compliance with the contract.
4. Successful contract administrators will know and admit the limits of their knowledge and will
seek the assistance of experts in the interpretation and, if necessary, the legal enforcement
of the contract.
5. An overzealous contract administrator is a disservice to both the Owner and the Contractor
and himself.
6. It is clearly in the financial interest of the contractor that interim payments be maximized, and
It is clearly in the interest of the owner that such payments not exceed the value of work
completed; In this situation, the contract administrator shall determine what is critical for the
success of the project in the interests of fairness to both the owner and contractor.
7. Contract Administrator’s difficult task is to represent the owner’s interests effectively by
monitoring and influencing the activities of the contractor without jeopardizing those interests
by intruding upon prerogatives to the contractor.

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 Seven important points to look into: Contractor’s Perspectives
1. The Consultant shares, in most cases, the Owner’s desire for a final product of high quality;
however, uses contractors to cover his deficiencies to do so.
2. Consultants do not recognize construction as much an art as a science and that the
attainment of something less than perfection is not accepted for them.
3. Even though Contract Administrator of the consultant is not a party to the contract between
the Owner and the Contractor, it is a decisive party in the construction process and
substantially affects the successful performance of projects in compliance with the contract.
4. Consultant Contract administrators would not often like to admit the limits of their knowledge
and seek the assistance of experts in the interpretation and, if necessary, the legal
enforcement of the contract.
5. An overzealous contract administrator is a disservice to both the Owner and the Contractor
and himself.
6. It is clearly in the financial interest of the contractor that interim payments be maximized,
and It is clearly in the interest of the owner that such payments not exceed the value of work
completed; In this situation, the contract administrator shall determine what is critical for the
success of the project in the interests of fairness to both the owner and contractor.
7. Contract Administrator’s difficult task is to represent the owner’s interests effectively by
monitoring and influencing the activities of the contractor without jeopardizing those interests
by intruding upon prerogatives to the contractor.

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06/22/24 JCMC 65
 Acceptances and Completions

1. Provisional / Temporary Acceptances (Partial + Total)

2. Provisional / Temporary Completion Certificates
(Partial + Total)
3. Remedying of defects
4. Final Acceptance
5. Final Completion Certificates

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 Outstanding Issues Settlement

1. Temporary rates assigned

2. Defects or non completions valuations
3. Payments Withheld
4. Claim issues unsettled
5. Dispute issues unsettled

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 Closing of Accounts

1. Final Completion Certificate Issued

2. All Payments and Entitlements are due
3. Retentions, Bonds and Guarantees Released

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 Contract Evaluations

1. Evaluate Contracts Closed

2. Determine Lesson Learned
3. Propose Interventions

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 Extra Contractual Liabilities

1. Limitation of Actions
2. Professional fault
3. Warranty due by the contractor
4. Warranty in respect of defects of construction
5. Arbitration

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 Limitation of Action (Art. 1845 & 1846; Civil Code)
1. Unless Otherwise provided by law, actions for the performance of a
contract, actions based on the non – performance of a contract and
actions for the invalidation of a contract shall be barred if not brought
within 10 years.
2. The period of limitation shall run from the day when the obligation is due
or the rights under the contract could be exercised.

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 Professional fault (Art. 2031; Civil Code)
1. A person practicing a profession or a specific activity shall, in the
practice of such profession or activity, observe the rules governing that
practice.
2. He shall be liable where, due regard being had to scientific facts or the
accepted rules of the practice of his profession, he is guilty of
imprudence or of negligence constituting definite ignorance of his
duties.

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 Warranty due by the contractor (Art. 3039; Civil Code)
1. The Contractor shall guarantee during ten years from its delivery the
proper execution and the solidity of the work done by him.
2. He shall be liable during this period for such loss or deterioration of the
work as is due to a defect in its execution or to the nature of the soil on
which the work has been done.
3. Any provision shortening the period laid down in 1 above or excluding
the warranty due by the contractor shall be of no effect.

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 Warranty in respect of defects of construction
(Art. 3282; Civil Code & Clause 71 of SCC)
1. Unless Otherwise provided, the contractor shall be liable to the
administrative authorities for the defects of construction of the works
during 10 years from the day on which they have entered into
possession of the works.
2. The warranty shall not be due, however, in respect of the defects which
were apparent at the time of the final acceptance of works.
3. The warranty shall apply to such defects only as prevent the works from
being used for the purpose mentioned in the contract or as render such
use more onerous or less profitable.

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 Arbitration
(Art. 315 (2); Civil Procedural Code)
1. No Arbitration may take place in relation to
Administrative Contracts as defined in Art. 3132 of
the Civil Code or in any other case where it is
prohibited by law.

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