CIE 531 / EGM 501

Contract Administration

Lecture 9

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Construction Documents
 Bidding requirements
 Notice to Bidders
 Instruction to Bidders
 Proposal Form
 Contract Documents
 Contract Forms
 Conditions of the Contract
 Specifications
 Drawings
 Addenda
 Change Orders
 Agreement.

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Construction Documents
 Construction Documents are defined as the written and graphic documents prepared or
assembled by the Engineer for communicating the design of the project and administering
the contract for its construction.
 2 major groups

 1.Bidding Requirements

 Used to attract bidders & explains bidding process

 2.Contract Documents

 Legally enforceable requirements that become part of the contract

 Include all construction documents except bidding forms

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Construction Documents

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Bidding Requirements
 Bidding Requirements

 Bidding Requirements are used to attract bidders and explain the procedures to be
followed in preparing and submitting bids .
 Bidding requirements help bidders follow established procedures and submit bids that
will not be disqualified because of technicalities. They do not become part of the contract
documents
 Bidding documents

 All of the construction documents issued to bidders before the signing of an owner-
contractor agreement.

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Bid Package
 Documents available to the contractor and on which he must make
a decision to bid or not
 A set of plans and technical specifications, Proposal form, general conditions, special conditions,

Description of the project to be constructed

Bid Package is prepared by:

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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

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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

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Evaluation 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..

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Evaluation and qualification
 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 ,

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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

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Construction Documents

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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
A. Contract Forms
B. Conditions of the Contract
C. Specifications & BOQ
D. Drawings
E. Addenda
F. Change Orders

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A. Contract Forms
Contract Forms

 Agreement

 Performance Bond

 Payment Bond

 Certificates

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B. Conditions of Contract
 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.

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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

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Agreement
 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.

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Agreement Form
 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)

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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.

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Bonds / Guarantees Forms
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.

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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.
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Advanced payment bond
 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.

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Insurance Certificates

Insurance for Works and Contractor’s Equipment,

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General Conditions of contract

The conditions are intended to govern and regulate the

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Contents of GCC
 Definitions
 Contract documents
 Rights and responsibilities of owner
 Duties and authorities of engineer
 Rights and responsibilities of contractor
 Sub-contractor, Separate contractors
 Time
 Payments and completions
 Changes in the work
 Protection of persons and property
 Insurance and bond
 Disputes
 Termination of contract
 Miscellaneous provisions

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THANK YOU

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