Objectives of Construction Management

The Main objectives are:

i. Completing the works within estimated budget and specified time.

ii. Evolving a reputation of high quality workmans
iii. hip.
iv. Providing safe and satisfactory working conditions for all persons and workers.
v. Taking decisions at the lowest practical management level through delegation of
authority.
vi. Motivating people to give their best within their capacities.
vii. Creating an organization that works as a team.

1 Contract Documents

A Contract is an agreement of at least two parties with purpose of creating legal obligation
between the parties and capable of being enforced by the court of law.

Contract = offer + acceptance + consideration

1.1 Tendering Process

A Tender is an offer which incorporates the sum of money, time and other conditions required to
carry out the contract obligations in order to complete a project or a part of it consisting of
specified works.

Tendering will be started after the design complete and project budget must be approved

Is the process that is used to obtain offers leading to a contract between the client and the
contractor.

Purpose of Tendering Process

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  To select a suitable contractor at a time appropriate to the situation of the project.
 To obtain from the contractor selected at the proper time, an acceptable tender or
offer upon which a contract can be let.

The difference between a tender and a contract:

 A tender formally means an invitation to trade under the terms of offer.

 A contract is the term used for when the parties have reached agreement.

Activities involved in Tendering Process

1. Selection of the most preferable or appropriate contract procurement method.

2. Development of tender list

3. Preparation of tender documentation

4. Invitation / calling off tender

5. Preparation and submission of tenders

6. Receipt and opening of tenders

7. Evaluation of tenders

8. Acceptance of tender award or award of contract

Tendering Process (Client)

Stage 1: Preparation

 Final completion of drawings, specification, measurement / take-off process.

 Choose conditions of contract.
 Parties involved: architect, engineers, QS, client, project manager

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Figure 1:

Step 2:Approval to Tender

 Discussion and decision on type of tender to be used.

 Selection of tender:
o Open
o Selective
o Negotiate
 Parties involved: CLIENT, CONSULTANT, PROJECT MANAGER

Step 3: Documentation

Compilation of:

 Letter of invitation to tenderers

 Articles of agreement / conditions of contract
 Form of tender
 Form of tenderer’s details. i.e: contractor’s registration, organization
background, track record (past and present projects)
 Letter of acceptance
 Bank and insurance guarantee forms (performance bond)
 Bank and insurance guarantee forms (advance payments)
 Specifications
 Bills of quantities
 Relevant drawings

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Step 4: invitation

Based on selection of tendering methods

 Open / competitive / bid tender – produce tender notice

 Selective – shot listed contractors will be invited to tender if they wish
 Negotiated – only one contractor is approached- direct entry to project

Tender Notice

The Tender Notice is a brief description of the job being tendered which is to be published in
Newspapers and on the Internet. A tender notice will contain:

a. Name of the Project.

b. Name & Address of the Company floating the tender.

c. Name of work, materials or services.

d. Place of work location.

e. Approximate estimated cost of work (Rarely included)

f. Period of completion.

g. Date on which the Tender Document sale commences.

h. Date and time up to which tender documents can be obtained.

i. The cost of tender documents.

j. The date and time up to which the tenders to be submitted and are to be opened.

k. Specification.

l. Eligibility Criterion.

Step 5: Processing

Received tender submitted by contractor

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Tender assessment / evaluation

 Completed tenders are received

 Arithmetical check
 Reasonable tender sum
 Reasonable completion time
 Capabilities of tenderers under considerations

Tender recommendation / report – tender board

Step 6: Contract Award

 Pre-award meeting with contractors – validation of lowest complying bid

 Validate lowest bid - Pre-contract meeting with contractor for contract signing
 Approval by tender board / treasury /relevant authorities.

Tender Process (Contractor)

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Stage 1: Decision to tender

 Receipt of tender documents

 Pre-tender data sheet
 Decision to tender
 Consider implications of:

o Bonds

o Warranties

o Parent company

o Guarantees

 Funding

Stage 2: Determine Basis of tender

 Abstract materials and subcontractors

 Send out enquiries
 Consider construction methods / prepare method statement
 Design temporary works / consider alternatives
 Prepare outline programme
 Check major quantities
 Identify restrictions
 Visit site and compile site report
 Tender meeting (designating areas responsibilities)

Stage 3: Preparation of cost estimates

 Calculate recurrent rates using:

o Operational
o Unit rates
o Man-hours estimating
 Analyze and check subcontractors’ quotations

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  Price preliminaries / general items (in association with members of the team
 Prepare summary sheets

Stage 4: Commercial Appraisal

 Tender committee meeting part 1- Review:

o Method
o Programme
o Technical and commercial risks
o Cash flow and finance
o Use of own plant
o Competition
o Commercial opportunities
o Economic climate
o Check prelims against historical cost data

Stage 5: Conversion of Estimate tender

 Tender committee meeting – part 2

 Calculate ‘spread’ and add to estimate

Stage 6: Submission of Tender

 Submit in format required

 Organize delivery

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1.2 Contract Document
A contract document consists of the following:

a) Cover/ Title page:

Contains the project name, employer, contract No.

b) Invitation for bids

Contains a brief description of the project, time and date of tender closing and opening,tender
amount, pre tender site visit details (if applicable), where the tender can be purchased.

c) Form of tender
Contains the contractors rates, time within which to commence, security, period of tender
validity.

d) Instructions to tenderers

Contains

 Definitions of contract terms.

 Eligibility and qualification requirements.
 Cost of tendering.
 Site visit.
 Description of the documents contained in the tender.
 How enquiries will be handled.
 Prequalification requirements.
 Documents comprising bids.
 Currency of tender and payments.
 Tender validity.
 Tender security.
 Pre tender meetings.
 Submission of bids.
 Tender opening and evaluation.

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  Award of contract.-
e) Conditions of Contract: Part 1: Will define contract document governing the tender
(Federation international des Ingenieurs Conseils (FIDIC).
f) Conditions of Contracts Part 2: Will define any other conditions e.g
Employer, engineers duties, contract documents,security, site inspection, programmes,
cash flow estimates,afety and environmental issues, insurance, compliance, labour,
liquidated damages, defects liability,plant, measurements,
g) Specifications: of works and materials.
h) Drawings
i) Bill of quantities.
j) Standard forms: These include:
 Form of invitation for tenders.
 Form of tender.
 Letter of acceptance.
 Form of tender security Perfomance bank guarantee.
 Tender questionnaire: gives general information : Company details-name
,location, shareholding , directors, bankers
 Confidential Business questionnaire: will give info on: Plant and equipment, key
personnel, Schedule of works previously carried out, ongoing projects, financial
standings, litigation history.
k) Tender Addenda: any additions that may be included after the bid documents have been
isuued.

Specifications

These are the statements which describe the nature and class of works, materials to be used, labor
to be employed, method of work, precautions to be taken, and quality of workmanship. The cost
of work depends on the specifications. The drawing of a structure or a building shows the
arrangement of rooms and dimensions and also entails a brief description of different parts.

Purposes of specification:

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 I) Guide the bidder at the time of tendering for arriving at a fair price for the work
involved.
II) Provide guidance for execution and supervision of work and purchase of materials.
III) State the acceptance criteria for different items of work.

Types of specifications

a) Contract specifications
b) Guide specifications
c) Standard specifications
d) Manufacturer’s specifications

a) Contract specifications

These are the specifications prepared for a particular job to accompany the working
drawings. They are further classified as General and Detailed specifications.

General/Brief specifications give general ideas of the class and type of work in terms of
materials, quality and workmanship.

Detailed specifications provide a detailed explanation of each item as per schedule of

quantities, specifying the materials to be used including proportions, method of work, and
quality of workmanship required. The specifications are written in the same sequence in
which they were carried out.

b) Guide specifications

These are the specifications which provide a guideline for preparing contract specifications and
give a broad idea of about class and type of construction for a particular purpose.

c) Standard specifications

These are prepared for various materials for the guidance of all concerned with construction or
construction industry. They include methods of manufacture, code of practice, and methods of
tests.

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 d) Manufacturer’s specifications

These are the specification that manufacturers produce for the guidance of users. They may
include installation instructions and other guidelines for use and maintenance of products.

Classification of Civil Engineering Drawings

a) Tender Drawings
b) Contract Drawings
c) Working Drawings
d) Completion Drawings
a) Tender Drawings

This entails a set of Engineering Drawings that an engineer prepares after the project proposal
has been cleared and the formalities are over. The drawings with other tender documents, bill of
quantities and specifications describe the project scheme to the contractor so that he can price the
construction work. Tender Drawings present the first evidence of the project scheme regarding
type and quality of work involved.

b) Contract Drawings

These are the drawings that an engineer submits on detailed design after completion of tender
drawings. They may be the same as the tender drawings or be different where a contractor may
suggest modification on the original drawings. The drawings are usually printed on good quality
paper and provided with cloth backing to withstand handling and long storage.

c) Working Drawings

These are the drawings that fill the gaps in constructional details not reflected in the tender
drawings. They are used for working, manufacturing, constructing or building purposes and
hence represent the engineer’s final decisions and design details.

d) Completion Drawings

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These are also called ‘Record’ or ‘As-built’ drawings. During construction, there are various
variations, additions, or alterations due to unforeseen site conditions and advancement in
technology. These are recorded on a set of drawings called ‘Completion’, ‘Record’, or ‘As-built’
drawings. For large projects, the ‘Record’ drawings should be prepared simultaneously as the
work proceeds. For small works, ‘Record’ drawings may be prepared upon completion of the
work.

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