NGHNDQS0942

2016
Contractual procedure
ASSIGNMENT
DASUN ISHARA MAHABADUGE
NG/HNDQS/09/42 |
Contractual procedures
Acknowledgement
I would like to express my deepest appreciation to all those who provided me the possibility to
complete this report. A special gratitude I give to my Contractual Procedure lecturer Major
(Eng.) Vajira Edirisinghe, whose contribution in stimulating suggestions and encouragement
helped me to finish the report successfully.
Furthermore I would like to thanks to Finance CO. LTD who gave the tender documents to
complete this assessment.
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Contents
Task 01 .......................................................................................................................................................... 3
Introduction ................................................................................................................................................... 3
1.1 Parties involved ....................................................................................................................................... 4
Describe the roles and contractual responsibilities of the parties ................................................................. 4
1.2 Process.................................................................................................................................................... 7
1.2 Procument selection ................................................................................................................................ 8
1.4 Contractual Arrangements .................................................................................................................... 10
Compare the main contractual arrangements of the contract ...................................................................... 10
1.5 Procument and Contractual issues ........................................................................................................ 12
1.5.2. Describe how those procurement issues are addressed using the form of contract of the contract. . 14
1.5.3 Differentiate international methods of procurement, Outlining their advantages and disadvantages
.................................................................................................................................................................... 18
1.6 Time, Cost and Quality Management ................................................................................................... 26
1.6.1 Compare the project’s planned programme schedule with the actual. Evaluate the implication of
begin ahead of the programme or behind the scheduled time for completion of the contract. ................... 26
1.6.2 Compare the project costs in the context of pre-contract, tender and final account stages of the
contract........................................................................................................................................................ 28
1.6.3. Describe how quality is defined and the measures that are available within this contract to assume
its compliance. ............................................................................................................................................ 29
1.6.4. Analyze other clauses making reference to form of contract for their interpretation. ...................... 31
1.7 Other Stakeholders ............................................................................................................................ 33
1.7.1 List the different organizations involved in the construction industry and evaluate the purpose and
activities of them on this contract. .............................................................................................................. 33
1.7.2 Analyze the contractual differences between nominated and other types of contractors and evaluate
the forms of contracts regarding suppliers. ................................................................................................. 35
Task 2 .......................................................................................................................................................... 38
Describe the needs of clients in both public and private sectors. ................................................................ 38
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Task 01
Introduction
Our project is the Proposed Housing Scheme at Seeduwa village Seeduwa. In this project these
are the basic details of the construction project.
 Scope and duration of the project

Construction of house (9 calendar month)
 The Location
Seeduwa
 The principle parties involved

Client
ASST. General Manager
THE FINANCE CO.LTD,
REAL ESTATE DIVISION,
NO.97,
HYDRE PARKCORNR,
COLOMBO 2
Consultant
T.SENAKA PEIRIES A.IA. (S/L)
CHARTED ARCHITECT,
10A, MALLIKA MAWATHA,
TEMPLER ROAD, MT.LAVINIA
Contractor
CSK ENTERPRISES (PVT) LTD
236/4, JUBILEE POST,
KOTTE ROAD,
NUGUGODA
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 Initial contract sum

Rs. 2,122,789.83
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 Finale contract sum

Rs. 2,210,947.80
 Procurement method
Traditional method
 Form of contract - SBD 02
1.1 Parties involved
Describe the roles and contractual responsibilities of the parties
Client
Client is the primary part in this procedure. Since each venture is begins with a need of
undertaking. At the point when discussing the customers part. Principle attributes of his part are
 Being in charge of the execution of the task from the underlying thought to usage
 choosing the players required in all phases from outline through development to long
haul administration
 Ensuring that the necessities of building clients/clients are met
 Ensuring that the pertinent authorizations are secured (arranging and so forth) in
organization with the experts selected to the task
 May likewise be agent and possible proprietor
It justifies saying that in various advantage trade develops the piece of client may in like manner
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be part. Endeavors can have unmistakable accomplices and funders each of whom will have
various essentials for being required amid the time spent change and advancement. It may be
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valuable to expressly consider the recommendations for the endeavor of who handle the parts of
"Client" and "Supervisor" at the improvement stage.
The client has a key part in the process since they will name directs, endorse work to happen,
agree costs and timetable and agent specialists to the endeavor. Some expects will have a
gathering affiliation or social event as the client however may encounter issues with the piece of
Employer as a result of its liabilities.
Range or structures toward the end of advancement, there ought to be a specific trade on who
will handle the Client and Employer parts in the midst of the system.
Consultant
Consultant is working in the organization board in the development. Consultant might be a

designer or an architect. Some expert groups have every one of them. Counting engineers
draftsmen cost advisor. There's an assertion amongst specialist and the proprietor which contains
obligations of the expert.
Consultant is the aide of the development venture. In the event that customer doesn't have much
involvement in development field. Specialist is the stand out he can trust. There are couple of
things a customer will anticipate from an expert.
• Inspecting the contractual worker
• Develop the configuration with temporary worker
• Preparing the delicate records and other authoritative reports
• Contract organization.
Contractor
Contractor is the person who manages a construction and the person who employs new workers.
He’s the one who controls the construction and the person who owns the constructing business.
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There are such a large number of obligations of a contractor. He holds the responsibility of
finishing the work before the given time. So he needs to manage his laborers furthermore he is
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the person who arranging how to bring out the task through all guidelines and directions. He
generally ought to consider about those laws and directions which relevant to development
ventures.
Quantity surveyor
The quantity surveyor is the individual in charge of making sense of exactly what a development
venture is going to cost. They have different parts as well, particularly ensuring that development
expenses and generation are overseen as effectively as could reasonably be expected.
 Keep the project on time

 Keep the project ongoing with the budget
 Managing the all financial records of the site
 Ensuring that development expenses and creation are overseen as proficiently as could
reasonably be expected
Site engineer
A site engineer is in charge of utilizing their structural building foundation to arrange and direct
different development endeavors in a wide range of territories of this field. They will apply civil
engineering standards to guarantee that structures are built in the most secure, sturdiest way.
 Supervising all workers and junior officers

 Checking drawings and keep the work ongoing
 Analyze the areas to apply engineering methods
 Preparing record drawings and technical reports
 Quality control
Project manager
The role of the project manager encompasses many activities including:
 Planning and Defining Scope

 Activity Planning and Sequencing
 Resource Planning
 Developing Schedules
 Time Estimating
 Cost Estimating
 Developing a Budget
 Documentation
 Creating Charts and Schedules
 Risk Analysis
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1.2 Process
Determine the sequence of events of this contract from design to construction process to
meet the requirements of the client
Design / pre construction stage
Making a design Brief selecting the consultants
After get the prerequisites of the customer, Architecture must affirm the necessities before
outlining and next stride is recognizable proof of the acquisition strategy and its methods that
appropriate to the venture.
Design concept implementation of design brief
Planning of reasonable configuration - It implies as indicated by the customer's necessities

engineering will outline an applied outline of the building. Before entering the arrangement of
drawings must survey the acquisition course that chose one is reasonable for that.
Design development
Improvement of applied plan and changing the outline as indicated by the customer's
prerequisites done in this stage. Submitting set of compositional drawings is done in this Design
Development stage.
Technical design
Specialized drawings are produced by building drawings. Specialized drawings mean auxiliary
drawing of the building, plumbing arranges, electrical plans and fire wellbeing arranges.
Production information
In this stage must get approval from the municipal council and the other authorities.
Tender document
In this stage preparing the BOQ and other tender documents, selecting appropriate tender type
and calling for tenders are done.
Mobilization
This mean hand over the project to the particular client.

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Construction stage
Construction stage has two main processes
1. Substructure
In the substructure following events are done in a sequence
 Site investigation
 Site clearance
 Excavation
 Formwork
 Laying of foundation
2. Superstructure
In the superstructure following events are done
 Form work
 Structural frame
 Walls
 Installation of doors and windows
 Installation of building services
 Roof slab
 Steel roof frame
 Roofing
 Ceiling
 Roof plumbing
1.2 Procument selection

Analyze the Selection of procument method depending on different project variables of the
project
In the early stages of the project, the Client should be developing the Procurement Strategy for
the project in consultation with the PM and the Design Team. This decision requires to be made
in consideration of the objectives of the project, and will vary from project to project.
There are 3 types of procument routes in construction industry.

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1. Traditional
2. Design and build
3. Turnkey
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Risk distribution
Whilst investigating the most appropriate Procurement Strategy for the projects the Client must
consult with the PM and Design Team. They will have invaluable input and expertise to make in
making the final decision.
Different project variable
In the early stages of the project, the Client should be developing the Procurement Strategy for
the project in consultation with the PM and the Design Team. This decision requires to be made
in consideration of the objectives of the project. When the selecting a procument route there
some facts to consider. As following:
 Project Size
 Client Type
 Time
 Cost
 Quality
 Accountability
 Certain of Project Objectives
 Market Conditions
 Risk.
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 Asset ownership.
 Financing
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In this project (Proposed Housing Scheme at Seeduwa Village Seeduwa) the client has selected
traditional procument route to complete the project. In this method client has to appoint a design
team and initiates with construction process.
The design is completed fully before the tender process commences. It affords the Client a great
deal of control over the quality, specification and cost, however the timescale is lengthened to
achieve the completion of the design, and the Client maintains the risk in terms of the
Consultants Design and any unforeseen items e.g. ground conditions, as well as failing to benefit
from the contractors’ input on build ability by appointing the Contractor once the design is
completed.
As the contractor has no responsibility for the design, the Client is responsible for any mistakes
or omissions in the design. Although, some risk is shared with the contractor the majority of risk
is taken on by Client and the success of Design Team and the contractor.
1.4 Contractual Arrangements
Compare the main contractual arrangements of the contract
Open Tendering
In open tendering anyone allows to submit a tender to supply required goods or services. That
the contract is being tendered generally an advert will be placed giving notice. To submit a
tender offering an equal opportunity to any organization. This sort of pre-qualification processes
not the same as selective tendering.
Selective Tendering
According to the Selective Tendering only invited suppliers can be submitted their tenders. There
is a pre- selected list which is called by the client. When the selected list preparing by the
particular client consider about the size nature and complexity required. They might then be
asked if they would be interested in tendering for the contact, and then based on the responses
received. Finally client will select a tender by considering the price and quality and negotiations
entered into.
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Negotiated tenders
In negotiated tendering process client and consultant considered and decided which contractors
are the best suits for types of construction work. Trusted contractors invited to bid for
construction project by mail or direct contact. After get their bid determine contractors keenness
and possible contribution to the construction team. Negotiated tenders mostly use to maintenance
project or incomplete projects.
Serial tendering
This types of tender contractor using to submit costs for carrying out work usually not against a
particular project but against sample Bills of Quantity, Works Schedule, or price for a sample
structure in the knowledge that others of a similar nature will be undertaken. The rates given in
such documents will form the basis of costing for future work undertaken, which will be
measured and valued by both parties to the contract.
The most common types of construction contracts used in the construction industry include:
1. Unit price contract – This contract type is based on anticipated quantities of items which are
counted in the project in addition to their unit prices. The final price of the project depends
upon the quantities required to carry out the work. Generally, this contract is suitable only
for construction and supplier projects which involve accurate identification of different types
of items, but not their numbers, in the contract documents.
2. Lump sum contract – Under this contract type, the engineer or contractor agrees to perform
the specified and described project for a fixed price. This type of contract is also referred to
as a “Fixed Price Contract” and is very often used in engineering contracts. A Lump Sum or
Fixed Price contract is appropriate where scope and schedule of the project are defined
sufficiently thus allowing the contractor or engineer to estimate the costs of the project.
3. Cost plus contract – The cost plus contract is an agreement which involves the buyer’s
consent to pay the complete cost for material and labor in addition to the amount for
contractor overhead and profit. This contract type is favored where the scope of work is
highly uncertain or indeterminate in addition to the types of labor, material, and equipment
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being similarly uncertain in nature.
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4. Incentive contracts – The incentive contracts feature compensation based on the contracting
and/or engineering performance in accord with an agreed target – schedule, quality, and
budget. Incentive contracts commonly fall into one of two common categories: Fixed Price
Incentive Contracts and Cost Reimbursement Incentive Contracts.
5. Percentage of construction contracts- This contract type is common for engineering contracts.
The compensation involved in these contracts is based on a percentage of the cost of
construction.
In this Proposed Housing Scheme at Seeduwa village Seeduwa Consultant is Mr.
T.SENAKA PEIRIES and Contractor CSK ENTERPRISES (PVT) LTD. Selective
tendering is the process used in this project.
1.5 Procument and Contractual issues
1.5.1. Explain and evaluate the issues associated with procument and contractual
procedures of the contract.
Using procurement method it will speed up the delivery of the project by merging activities.
Procurement system is an organizational system that assigns specific authorities &
responsibilities to people & organization. It also defines the different elements in the
construction of a project. The procurement methods play a major role in defining as well as
shaping contractual and work relationships between parties involved.
In this project they used traditional procurement method & lump sum contract type proposed
housing scheme.
When considering about the procurement methods, so that the procurement types cover various
aspects such as,
 How are the funds to be obtained

 How is design to be carried out
 How is construction/production to be arranged

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Who is to have the managerial role to oversee or supervise the project

 Who is to use the finished building/product
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These aspects can’t be controlled when we not manage the project. Before selecting an
appropriate procurement method the Clients must analyze their objectives of the project and
based on their needs the procurement choice might differ. So that issues can be arise when we
not manage these aspects.
Before arising the issues the parties who are involve in a project must be consider about the,
 The nature of the project

 The scope of the works
 Measure of control by the Client
 Accountability
 Start and completion times
 Assessment of risks
(Ashworth, 2013)
There are some sources can be identify to arise the issues in procurement methods.
 project size
Small size projects are not really suited to the more elaborate forms of contractual
agreements, since such procedures are likely to be too difficult & not cost effective.
 costs inclusive of the design
Open tendering will generally secure for the client the lowest possible price from a
contractor. This is the evidence that competition helps to reduce costs through
efficiency & lowers the price to the client.
 time from brief to handover
The time available will also influence the type of construction technique which might
be used. The majority of the employers, once they have made the decision to build,
want the project to be completed as quickly as possible.
 Accountability
Accountability is interlinked with finance and an emphasis on paying the smallest price
for the completed project. Accountability factors to be consider such as, contractor
selection, contractual procedure, value of money.
 design, function and aesthetics
 quality assurance
 organization and responsibility
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 project complexity
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Use of evaluate the issues in procurement & contractual procedure.
 To establish a clear strategic direction

 To deliver best value by reducing budget expenditure and providing more for less as part
of continuous review and improvement
 Increase the proportion of the Council’s spend against contracted and approved suppliers
RISKS& ISSUES ASSOCIATED WITH PROCUREMENT
− Claims and payments made on early accomplishments were bloated; the contractor
eventually abandoned the project
− Unnecessary work items
− Incorrect deductions of retention from progress payments due to failure to validate
conformance with project schedule
− Advance payment not recouped or not fully recouped
− Bidding Documents were not issued according to the required schedule
− Contract awarded to a contractor who failed to pay taxes
− Not allowed enough time for procurement procedures when developing project
Especially in this contract based on the measure & pay method so Payment is made for
quantities of work completed and measured during the month. These contracts are based
on drawings & prices. The contractor can claim additional payment for any changes in the
work content. So Tender price is usually increased by variations and claims.
1.5.2. Describe how those procurement issues are addressed using the form of contract of
the contract.
Contract management
The purpose of contract management is to ensure that all parties to the contract fully meet their
respective obligations as efficiently and effectively as possible, delivering the business and
operational outputs required from the contract and providing value for money. It also protects the
rights of the parties and ensures required performance when circumstances change.
The key clauses in any construction contract are those which impact on:
 Time
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 Cost
 Quality
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The clients of the construction industry are primarily concerned with quality, time and cost and
yet the majority of construction projects are procured on the basis of only two of these parameters,
namely time and cost.
Time cost quality in traditional procurement method
Time/Certainty of Time
 Not the fastest of methods.
 Desirable to have all information at the tender stage.
 Consider two stages or negotiated tendering.
Certainty of cost
 Certainty in cost before commitment to build.
 Clear accountability and cost monitoring at all stages.
Quality
 Comprehensive design sets out quality standards Contractor is wholly responsible for
achieving quality on site
Under the terms of the particular contract, the construction manager was described as being the
only person on the project with access to all of the information and the various programmes. He
was the only available person who could make an accurate report to the Client at any one time, of
both the current status of the Project and the likely effects both on timing and on costs.
The contractor's main obligation under any construction contract is of course the construction and
completion of the works within the specified time for completion and in accordance with the
contract. Its other obligations under the Red and Yellow Books include:
 Fitness for purpose – ensuring that its design will meet the employer's requirements.
 Design responsibility.
 Carrying out the works in a proper and workmanlike manner with properly equipped facilities and
non-hazardous materials.
 Providing those facilities and choosing those materials.
 Responsibility for method of working.

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The contractor also has an obligation to perform certain administrative and other functions to
facilitate performance, including providing information needed for the execution and completion
of the works and the issuing of notices including for events increasing cost or completion time.
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The effective administration of a FIDIC construction contract is essential to ensure that time and
money claims are protected. It is important to write notices in clear and unequivocal terms – do
not hint or insinuate. Keeping effective records will assist contractors and employers to prove their
entitlements and enable both parties to accurately ascertain their positions in the event that a
dispute arises.
Contractor's claims
A key obligation under the Red and Yellow Books is the requirement to serve notice in respect of
a claim for an extension of time or additional payment. The contractor must give notice of its
intention to claim as soon as possible and no later than 28 days after the contractor becomes aware,
or should have become aware, of an event. It must then submit its fully detailed claim within 42
days of becoming aware of an event or circumstance that gives rise to a claim.
Variations and adjustments
Using the Red and Yellow Books, a variation for changes to the works can arise by:
 An employer's instruction.
 An employer's request for a proposal.
 A contractor's 'value engineering' proposal.
Variations may have an adverse impact on the contract or on the guarantees in place for the project,
for example through a reduction in the safety or suitability of the works. This should be monitored
and flagged up immediately. A contractor could have liability even where it is simply following
the engineer's instructions.
A contractor is obliged to comply with the employer's request for a variation unless it cannot
readily obtain the necessary goods required for that variation.
Delay and extension of time
The contractor will be liable for damages if the actual completion date of the works occurs after
the agreed completion date unless the delay is caused by a matter for which an extension of time
is available and the contractor complies with the notice and other requirements under the contract.
The contractor may be entitled to an extension of time where there is:
 A variation or additional work instructed.

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 Exceptionally adverse weather.
 Unforeseeable shortages in the availability of personnel or goods.
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 Delay caused by the employer.
 A cause of delay under any other clause in the contract.
 Unforeseeable delay caused by complying with public authority procedures.
The contractor must strictly comply with the notice requirements under the contract, including
giving all necessary information required in relation to the claim. Note that minutes of a meeting
or a contractor's progress report are unlikely to constitute proper notice.
The importance of record-keeping
Keeping adequate records is essential to:
 Establish entitlements to money and time.
 Defend subcontractor claims.
 Comply with the contract's reporting obligations.
Decide at the outset how and what records should be kept, ensuring of course that this also
complies with the contract.
Compare with the procurement method used for this project & advice on changes which will make
the contract more efficient.
In this construction project parties are agreed to proceed with the lump sum contract in traditional
procurement method. The contractor undertakes to carry out a defined amount of work in return
for an agreed sum. This can be a fixed amount not subject to recalculation, in which case there
would be no opportunity for the employer to make variations. Lump sum contracts might be less
appropriate where speed is important, or where the nature of the works is not well defined. Other
forms of contract that might be more appropriate include measurement contracts (used where the
works can be described in reasonable detail, but the amount cannot), cost reimbursement
contracts (used where the nature of the works cannot be properly defined at the outset, often used
where an immediate start on site is required).
Disputes under FIDIC Red and Yellow Book contracts should be referred to a Dispute
Adjudication Board (DAB). A DAB can be created at the start of the project or when a dispute
occurs. It is an informal process which encourages party involvement and recognizes the need for
speed. The contracts provide that a DAB's decision will become final and binding 28 days after it
is issued if the parties do not give a notice of dissatisfaction.
Where a notice of dissatisfaction is given, the parties are obliged to attempt the amicable settlement
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of their disputes.
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1.5.3 Differentiate international methods of procurement, Outlining their advantages and

disadvantages
What is Procurement?
Procurement describes the merging of activities undertaken by the client to obtain a

building.
Procurement Methods Can be classified as:
1) Traditional procurement (Separated & corporate system)

2) Design & Build procurement (Integrated system)
3) Management procurement
Traditional Procurement Method
In the traditional approach, the employer accepts that design work will generally separate from
construction, consultants are appointed for design and cost control, and the contractor is
responsible for carrying out the works. This responsibility extends to all workmanship and
materials, and includes all work by subcontractors and suppliers. The contractor is usually
appointed by competitive tendering on complete information, but may if necessary be appointed
earlier by negotiation on the basis of partial or notional information.
There are three types of contract under the traditional procurement method:
1. Lump sum contracts - where the contract sum is determined before construction starts, and the
amount is entered in the agreement.
2. Measurement contracts – where the contract sum is accurately known on completion and after
re-measurement to some agreed basis.
3. Cost reimbursement – where the contract sum is arrived at on the basis of the actual costs of
labour, plant and materials, to which is added a fee to cover overheads and profit
Lump Sum Contract
The contractor undertakes to carry out a defined amount of work in return for an agreed sum.
This can be a fixed amount not subject to recalculation, in which case there would be no
opportunity for the employer to make variations. The sum is likely to be subject to limited
fluctuations, usually to cover tax etc changes not foreseeable at the time of tendering. The sum
may be subject to fluctuations in the cost of labour, plant and materials – the so called
fluctuations provision. Recovery may be use of a formula, or by checking invoices.
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Advantages
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− Less financial risk to Employer.
− High financial risk to Contractor.
− Minimum supervision related to quality & schedule.
− Contractor is motivated for earlier completion and better performance.
Disadvantages
− Changes are difficult and costly.
− Design to be finalized prior to bidding.
− Each project is unique.
− Bidding is expensive & lengthy.
− Contractor may include high uncertainty within each Schedule of Value item.
Measurement contracts
Measurement contracts are also referred to as ‘re-measurement contracts’. This is where the
work which the contractor undertakes to do cannot for some good reason be accurately measured
before tendering. The presumption is that it has been substantially designed, and that reasonably
accurate picture of the amount and quality of what is required is given to the tenderer. Probably
the most effective measurement contracts, involving least risk is to the employer, are those based
on drawings’ with approximate quantities.
Advantages
− Early project start possible.
− Flexibility, changes can be adopted as the project is carried out.
− Complete design definition not required.
− Suitable for competitive bidding.

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Disadvantages
− Final cost can be different from the contract sum
− Can lead for conflict
− Additional site staff needed for quality control
Cost reimbursement
These are sometimes referred to as ‘Cost Plus’ contracts. The contractor undertakes to carryout
an indeterminate amount of work on the basis that they are paid the prime or actual cost of
labour, plant, and materials. In addition, the contractor receives an agreed fee to cover
management, overheads and profit.
Hybrids of the cost reimbursement contracts include:
 Cost-plus percentage fee – the fee charged is directly related to the prime cost. It is usually
a flat rate percentage, but it can also be on a sliding scale. However, the contractor has no
real incentive to work at maximum efficiency, and this variant is only likely to be
considered where the requirements are particularly indeterminate precontract.
 Cost-plus fixed fee – The fee to be charged is tendered by the contractor. This is appropriate
provided that the amount and type of work is largely foreseeable. The contractor has an
incentive to work efficiently so as to remain within the agreed fee.
 Cost-plus fluctuating fee – The fee varies in proportion to the difference between the
estimated cost and the actual prime cost. The assumption is that as the latter cost increases,
the contractor’s supposed inefficiency will result in a fee which decreases. This approach
depends upon there being a realistic chance of ascertaining the amount and type of work at
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Key points to consider with traditional procurement
 A traditional lump sum contract requires the production of a complete set of documents
before tenders are invited. Adequate time must be allowed for this.
 The traditional procurement method assumes that design will be appointed by consultants,
and it does not generally imply that the contractor has any design obligations. If this is to
be the case, express terms should be included in the contract.
 As the employer appoints consultants to provide advice on all matters of design and cost,
they thereby retain total control over the design and quality required.
 The contractor depends heavily upon the necessary information and instructions from the
architect being issued on time. There is a risk of claims if they are delayed.
 The employer decides which specialist firms the contractor is to use, although the
contractor may require certain safeguards relating to performance.
 All matters of valuation and payment are the responsibility of the employer’s consultants.
 If it is impossible to define precisely the quantity or nature of some of the work, it is still
possible to adopt a traditional method on the basis of approximate quantities, provisional
sums, or cost reimbursement. However, this is less than a perfect solution: the fuller and
more accurate the information, the nearer to the relative safety of the lump sum approach.
Traditional Procurement Method
Advantages Disadvantages
 Liability due to competitive  The process will take more time to

selection produce the full contract
documentation required
 At the award of the contract price  Comparing to the other procurement

certainty types, the overall project duration
can be longer
 If there are any variations to the  The Contractor cannot input any
contracts, they are comparatively ideas into the design or in to the
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easy to organize and manage planning of the project
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 Low Tender Price  Risk of design errors lies with the client
Design & Build procurement
Design and Build comes in various forms but is typified by the contractor taking both design
and construction responsibility. In integrated D&B contracting the contractor develops the design
and constructs the building based on a set of requirements provided by the employer. In contrast,
novated D&B contracting is closer to the traditional model in so far as the employer's design
team develops the design but is then novated to the contractor who takes the design
responsibility and then constructs the building. "Turnkey" or EPC contracts are a type of D&B
contract but Turnkey and D&B are not synonymous.
Design and construct methods offer certainty on the contract sum and bring cost benefits. The
close integration of design and construction methods and the relative freedom of the contractor to
use their purchasing power and market knowledge most effectively can provide a client with a
competitive price.
A number of variations of design and construct exist, which include
 Direct – in this case no competition is obtained in tenders. Some appraisal of the possible
competitors may be made before tendering but only one tender is obtained.
 Competitive – tenders are obtained from documents that are prepared to enable several
contractors to offer competition in designs and in prices.
 Develop and construct – consultants design the building required to a partial stage, often
referred to as ‘scope design’, then competitive tenders are obtained from a select list of
contractors to develop and complete the design and construct the building. The amount of
consultant design can vary depending on the client’s needs.
 Package deal – this method is often used where the contractors competing will use a
significant part of their own or another proprietary building system or they will be
constructing variations of a repetitive theme. There is limited scope for innovation when
this method is used. Some contractors may offer to find a site, to sell, mortgage or lease
their product, obtain approvals etc. at a risk to themselves or at a charge to the client.
 Novation – sometimes referred to a design, novate and construct. This is where the
contractor takes over from the client a previous contract for the design work, completes
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the design and constructs the work.
Key points to consider with design and construct procurement
HND in QS 22
 In design and construct contracts, in theory, there is usually a single point of responsibility.
The employer therefore has the advantage of only on firm to deal with – and one firm to
blame if things go wrong. In practice, the employer’s requirements are detailed to the extent
that the contractor’s design contribution, and liability, is diminished.
 The employer lacks control over the detailed design; however, this might be acceptable
where broad lines of the scheme are satisfactory and the detail relatively less important.
 Construction work can be started early as a great deal of detailed design can proceed in
parallel. However, it is mainly the contractor who benefits from this operational flexibility.
 Responsibility for completing on time rests wholly with the contractor. There should be no
risk of claims because of the allegations that information from the employer is late. This
obligation on the contractor to be responsible for the flow of their necessary information is
one of the most attractive features of design and construct.
 There is greater certainty of cost, even to the extent that, if required, responsibility for
investigating site and subsoil conditions can be made entirely the contractor’s. Any changes
in the employer’s requirements can affect the contract sum, however, and are likely to
prove costly.
 It is always advisable to ask for information about who the contractor intends using as a
designer. Adequate professional indemnity insurance should always be a requirement.
 The employer should be advised to appoint consultants to provide advice on the preparation
of the requirements; it is important that adequate time is allowed for this to be done
adequately.
Design & Build procurement
 Advantage of dealing with one  To the standard contracts that are

single organization available, design responsibility is
limited
 Before construction begins, price

certainty can be obtained
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HND in QS 23
 To the concept design and

frequently before the detailed
designs are complete, client is
required to commit towards them at
an early stage
 The project time can be reduced due

to the overlapping of design and  Client’s reduced ability to control
construction activities design
 Contractor can input his ideas in to

the design and planning and thereby  Difficulty in evaluation
enhanced constructability for the
relevant project
 Use of a guaranteed maximum price  Client changes to project scope can be

with a savings option split can expensive
stimulate innovation and reduce time
and cost;
Management procurement
Several variants of management procurement forms exist, which include;
 Management contracting,
 Construction management
 Design and manage.
There are some subtle differences between these procurement methods. In the case of
management contracting, the contractor has direct contractual links with all the works
contractors and is responsible for all construction work. In construction management, a
contractor is paid a fee to professionally manage, develop a programmed and coordinate the
design and construction activities, and to facilitate collaboration to improve the project’s
constructability.
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HND in QS 24
Management contracting
The client appoints an independent professional team, and also a management contractor. Their
involvement at pre-construction stages will be as adviser to the team, and during construction
they will be responsible for executing the works using direct works contracts. With this type of
contract it is possible to make an early start on-site and achieve early completion. Because of its
flexibility, it allows the client to change the design during construction because drawings and
matters of detail can be adjusted and finalized as the work proceeds.
Construction management
The management contractor is selected after a careful selection process and is paid a
management fee. The basic difference is that works contracts, although arranged and
administered by the management contractor, are direct between the client and works contractor.
Design and manage
A design and manage strategy is similar to management contracting. Under a design and manage
contract, the contractor is paid a fee and assumes responsibility, not only for works contractors,
but also for the design team.
The common variations of design and manage are
Contractor – a project design and management organization designs and manages the work,
generally for a fee and delivers the project by employing works contractors as its subcontractors
to design/or construct.
Consultant – a project designer/manager is the client’s agent, who designs and manages the
work, obtains subcontract tenders from works contractors who then each enter into a direct
contract with the client.
Management procurement
 Reduced project duration  Client risk is high
 Early involvement  Commitment prior to full design
 Accommodates later design decision  Close time and information control

required
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HND in QS 25
 Flexibility for changes in design  Informed and proactive client is

required
 Roles, risks and responsibilities for  Client loses direct control of design
all parties are clear quality which is influenced by the
constructors
1.6 Time, Cost and Quality Management
1.6.1 Compare the project’s planned programme schedule with the actual. Evaluate the
implication of begin ahead of the programme or behind the scheduled time for completion
of the contract.
Time, Cost and Quality
Time - Time, in development, is broke down to its littlest details. The measure of time required
to finish every last part of an undertaking is analyzed. When investigation has occurred, those
segments are separated significantly advance into the time required to do every assignment.
Clearly from every one of this we can assess the span of the venture and also the faculty and gear
required.
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Cost - Resources dependably cost cash so the two are exchangeable from various perspectives.
When we discuss the expense of a task, we are discussing what should be connected or relegated
HND in QS 26
to working as far as cash and exertion with a specific end goal to get things going. This can be
assets like labor, hardware and materials. These could be claimed straightforwardly by the
manufacturer, or be as contractual workers and outer suppliers.
Quality – There are numerous segments to quality anyway one especially imperative one is the
extent of an undertaking (frequently called the Scope of Work or Specifications). This is an
unmistakable, particular proclamation with respect to what has been consented to be
performed/accomplished in building your new home. At the end of the day - the agreement,
determinations and the drawings that we have singed.
Getting a task right is an exercise in careful control. Time, expense and quality tend to pull in
various headings, and all have diverse dangers, however a fruitful venture needs to strike the
right harmony between each of the three.
On building projects in particular, the three factors mean:
1. The nature of the working for prompt practical needs, and use for the duration of its
life.
2. The time required for the working to be planned, manufactured, fitted out and
prepared for occupation.
3. The expense of the development, materials and all related costs incorporating cost
being used.
Accomplishing the right adjust of value, time and cost for the task is critical to the achievement
of the undertaking. The harmony between these three components will shift as indicated by the
specific necessities of the venture, and their effect on each other will be pretty much as
interesting to the task's circumstances.
As the task group, they should remember a thought of the different situations that could emerge
if time, quality or expense were to be organized over the other two. Should the need emerge;
these situations would then be investigated further.
At the point when discussing this anticipate proposed housing scheme for the client Finance Co
.Ltd for is a task of “CSK enterprises PVT Ltd” who is a decent organization for building
developments, Repairs and upkeep.
Fixed price contract
The altered value contract is a lawful understanding between the venture association and a
substance to give products or administrations to the undertaking at a concurred on cost. The
agreement ordinarily points of interest the nature of the products or administrations, the planning
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expected to bolster the undertaking, and the cost for conveying merchandise or administrations.
There are a few varieties of the settled value contract. For items and merchandise and
HND in QS 27
administrations where the extent of work is clear and not liable to change, the altered value
contract offers an anticipated expense. The obligation regarding overseeing
1.6.2 Compare the project costs in the context of pre-contract, tender and final account
stages of the contract.
In the event that we not have a decent spending plan, boss can't pass judgment on contract
proposition, spending plan will constantly helpful for boss for getting a thought regarding the
development and oversee cash furthermore it will imperative for temporary worker for deal with
their benefit and everything.
Along these lines, project spending plan is constantly acquainted with undertaking extension,
plan and the expense of the task.
Setting a doubtful spending plan can mean task fizzles, is sick fitting or wasteful. Development
parties need to guarantee to oversee venture costs deliberately. The money related requirements
may change amid an undertaking – ensure venture group continue top of the accounts at all
phases of configuration advancement.
Parties they should set a blueprint spending plan, use cost benchmarks to set up beginning
costing, make note of variables and comprehend the ramifications of capital expenses. At that
point can oversee venture cost so effectively. By drawing together data from over the
development business, cost benchmarks build up run of the mill costs per square meter. These
are upgraded every year to reflect changes in expenses. Taken a toll benchmarks are valuable
from the get-go to decide the possible expense of the task you are arranging.
In this development CSK enterprises have officially arranged the task spending plan in
preliminaries as site leeway to entire the fittings and completions to the house.
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HND in QS 28
1.6.3. Describe how quality is defined and the measures that are available within this
contract to assume its compliance.
How quality is defined and measures
The measures those are available within this contract to assume its compliance.
 Functionality
 Impact
 Building quality
What is functionality?
A clear understanding of the functional and physical requirements of a project is essential to

ensuring its success. A client's intent to develop a project is derived from a need, a purpose or
mission, and a desired result.
There are 3 main type in functionality
 Space
 Access
 Uses
What is impact?
Construction has long been recognized as one of the most resource-hungry and therefore least
sustainable industries in the world. However we continue to depend on buildings of all kinds –
homes, offices, hospitals, shops, cultural centers and more. Despite increasing awareness of the
need to develop a more sustainable approach within the construction industry, this proved
difficult without a reliable method of evaluating and comparing the environmental impacts of
different construction materials.
There are 4 main type of impact
 Urban and social integration

 Internal environment
 Form & material
 Character & innovation
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What is building quality?
HND in QS 29
Construction projects are a balance between cost, time and quality. It is possible to have high
quality and low cost, but at the expense of time, and conversely to have high quality and a fast
project, but at a cost. If both time and money are restricted, then quality is likely to suffer. High
quality is not always the primary objective for the client; time or cost may be more important. It
is only realistic to specify a very high standard of quality if the budget is available to achieve that
standard.
There are 3 main type of building quality
 Performance
 Engineering
 Construction
How time, cost and quality have been balanced in the contract.
Time, quality and cost
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HND in QS 30
How time, cost and quality balance in the contract
Quality
The quality of the building for immediate functional needs, and use throughout its life
Time
The time needed for the building to be designed, built, fitted out and ready for occupation
Cost
The cost of the construction, materials and all related expenses including cost in use
1.6.4. Analyze other clauses making reference to form of contract for their interpretation.
The key to the success of the project is achieving the right balance of time, cost and quality. The
balance between these three factors will vary according to the particular requirements of the
project and their impact on each other will be just as unique to the project’s circumstances.
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HND in QS 31
As the client of the project he will need to keep in mind an idea of the various scenarios that
could arise if time, quality or cost were to be prioritized over the other two. Should the need
arise, these scenarios would then be explored further and with others in the project team if
appropriate in order to arrive at informed decisions based on reasoned weighing of the relative
risk involved.
For instance, client may have to think the project will complete the particular deadline or is it
more worthwhile in the case of the project to adopt a longer programed in order to save on cost
or improve in quality? Remember that missed deadlines can sometimes add to contractor costs,
and may mean client have to compromise in the cost of materials, which will in turn affect
quality.
Good project and delivery teams must support to client in any balancing of time, quality and
cost. A good design team should be able to work within a reasonable, set budget the discipline of
limited budget can actually stimulate creativity and innovation. And sound financial management
often goes hand in hand with delivering a high quality project to deadline.
In assessing the cost of a project, must consider the costs over the entire life of the building
rather than just the design and construction costs. This is known as whole life costing. A
successful building project will attempt to meet the needs of a building over is entire lifetime.
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HND in QS 32
1.7 Other Stakeholders
1.7.1 List the different organizations involved in the construction industry and evaluate the
purpose and activities of them on this contract.
In a development project there are a few gatherings required in the finishing of the task. These
gatherings can be from either general society area or the private segment. The key gatherings are
the customer, temporary worker and specialist.
Customer is the individual who is at first contributing the cash to give the contractual worker to
fire up all the work and if the customer is neglecting to give cash the specialist may give the cash
or the temporary worker will pay the cash to begin the task and get them from the customer
before long. These are the underlying partners.
A task can't continue without satisfactory financing, and the expense of giving sufficient
financing can be entirely vast. Hence thoughtfulness regarding venture account is an imperative
of task administration perspectives. Account is additionally a worry to alternate associations
required in a task, for example, the general contractual worker and material suppliers. Unless a
proprietor promptly and totally takes care of the expenses brought about by every member these
associations face financing issues of their own. At the point when discussing each development
as a primary partners there have customer who chiefly speak to their cash to the development,
temporary worker and the advisor.
For a development organization as another partner's private or open banks and insurance
agencies they will give the cash or credits to continue the development.
At the point when an undertaking is recompensed, the general population and private gatherings
make another privately owned business to oversee and trade stores for the venture. These assets
are utilized to start and run the venture. For a development venture after the building is
completely operational if the privately owned businesses made an assertions for the upkeep of
the working over a period.
Finally according to our project the other stake holders are privet bank sector insurance
companies and the end users of it the general users the public people who annually pays tax
and indirectly they are also stakeholders because the money that government spend is
collected by the taxes that the people pays.
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HND in QS 33
Municipal Council
Taking permit and consent for the development, taking endorsements to the arrangements must
do through Municipal Council. Additionally municipal chamber gathering the development
wastage from the site.
National Water Board (NWSDB)
In this agreement took water supply through NWSDB to the entire building.
Ceylon Electricity Board (CEB)
CEB will disseminate the power to the Whole building
Sri Lanka Telecom (SLT)
For telecom administration customer professed to utilize SLT
Banks and Insurance Cooperation
Regularly after culmination of the building ordinarily building will protect in some protection
participation if any flame or any normal peril brought on to the building it will guarantee it.
Additionally banks likewise including with the building development so typically customers
taking advances from a bank and contributing so bank additionally including with this.
Law firms
In the event that any lawful circumstances happened Law firms are required.
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HND in QS 34
1.7.2 Analyze the contractual differences between nominated and other types of contractors
and evaluate the forms of contracts regarding suppliers.
 Domestic sub-contractor
 Nominated sub-contractor
 Named sub-contractor
Domestic Sub-Contractor
A Domestic Sub-contractual worker is chosen and connected with straightforwardly by

the fundamental temporary worker to do a specific exchange, this will mostly incorporate
standard exchanges, for example, bricklayers, roofers, ground specialists, handymen,
electrical and plasterers. They might be work just or supply and alter. In all cases they
should be endorsed by the designer. The modeler has the full power to dismiss any
subcontractor asked for by the temporary worker. The agreement does not perceive the
principle temporary workers own subcontractors any work completed by these is taken as
though it were done by the primary contractual worker.
Nominated Sub-Contractor
A Nominated subcontractor is picked by the designer customer or specialist to do certain

parts of the work. They are designated on the consumption of a PS or PC entirety
incorporated into the agreement bills. The selected subcontractor goes into an agreement
with the primary contractual worker yet there might be a security guarantee between the
designated subcontractor and the customer. The principle temporary worker has no
obligation to convey our work that is planned to be done by a designated subcontractor
Named Sub-Contractor
A named sub-contractual worker will regularly be looked over a rundown of

subcontractors gave by the draftsman. The modeler may furnish the temporary worker
with a rundown of no less than three subcontractors to browse for doing specific parts
under the JCT 05 standard or moderate building contracts. The fundamental temporary
worker may with endorsement from the planner add subcontractors to the rundown. In
spite of the fact that the subcontractor is named they are a local subcontractor under the
agreement.
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HND in QS 35
Difference between Nominated Sub-Contractor and Domestic Sub-Contractor
Assigned sub-contractual worker somebody the Employer has told the temporary worker
he should utilize. The customer will have generally arranged the terms and cost and
entered a PC total into the delicate Bill of Quantities, which you include attendances,
benefit and so forth to again normally in a different Bill thing. There are frequently sure
commitments that the Employer stays in charge of, for example, program, yet this totally
relies on upon what is composed in the agreement.
Local or direct are presumably the same thing as an illustration a sub-contractual worker
the principle temporary worker utilizes without reference to the Employer with respect
terms and cost. There might be particular conditions for their job, for example, Employer
endorsement and the fuse of particular terms required under the principle contract. The
fundamental contractual worker assumes full liability for the execution of a residential
sub-temporary worker and includes benefit and so forth to the rates of work that the sub-
contract based worker completes similarly as whatever other rate.
Contrast between Nominated Sub-Contractor and Named Sub-Contractor
Named sub-contractual worker delegated by the customer and named sub-temporary workers
principally designated by the significant contractual worker.
Named sub-contractual worker primarily contracts with the fundamental temporary worker to
supply or alter any materials or products or execute work framing part of the primary contract.
Be that as it may, named sub-contractual worker is delegated for unique works like pipes,
electrical, and so forth for named subcontractor's installments will done by the significant
temporary worker and selected sub contractual worker's installments will done by the customers
straightly.
Forms of contracts regarding suppliers
Fixed price contract
The altered value contract is a lawful understanding between the venture association and a
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substance to give products or administrations to the undertaking at a concurred on cost. The

agreement ordinarily points of interest the nature of the products or administrations, the planning
HND in QS 36
expected to bolster the undertaking, and the cost for conveying merchandise or administrations.
There are a few varieties of the settled value contract. For items and merchandise and
administrations where the extent of work is clear and not liable to change, the altered value
contract offers an anticipated expense. The obligation regarding overseeing
The work to address the issues of the venture is centered around the temporary worker. The task
group tracks the quality and timetable advancement to guarantee the contractual workers will
meet the venture needs.
Unit value contract
In a unit value get, the work to be performed is broken into different parts, typically by
development exchange. This agreement sort depends on expected amounts of things which are
included the undertaking notwithstanding their unit costs. The last cost of the task relies on the
amounts required to do the work. For instance painting is regularly done on a square foot
premise. Unit value contracts are from time to time utilized for a whole real development extend
yet they are oftentimes utilized for concurrences with subcontractors which include exact
recognizable proof of various sorts of things, yet not their numbers in the agreement archives.
They are likewise frequently utilized for support and repair work.
Cost plus contract
The expense in addition to contract is an assertion which includes the purchaser's agree to pay
the complete expense for material and work notwithstanding the sum for temporary worker
overhead and benefit. This agreement sort is favored where the extent of work is exceptionally
questionable or vague notwithstanding the sorts of work, material, and gear being comparably
dubious in nature. Here, the temporary worker's benefit is set at an altered sum. In the event that
genuine expenses are lower than the assessment, the proprietor keeps the reserve funds. On the
off chance that genuine expenses are higher than the assessment, the proprietor must pay the
extra sum. The upside of an expense in addition to contract is that as a rule the task will bring
about the building that was imagined regardless of the possibility that costs run high. The
developer is less inclined to compromise or contend for less costly materials.
Incentive contract
Motivation contracts are frequently utilized when there is some vulnerability in the expense of
the work, distinction when an item is being worked to one of a kind details, and does not use off-
the-rack segments. This is regular in contracts including test programs or new innovation or
procedures. Taken a toll based impetus contracts set up an objective value, target benefit and a
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most extreme expense. A recipe is incorporated to designate any invade of the objective expense
HND in QS 37
between the purchaser and temporary worker. Once the greatest expense has been achieved, the
contractual worker subtracts any extra invades from his benefit, or charge.
Task 2
Describe the needs of clients in both public and private sectors.
Client
Every construction project begins with a bright idea from a client

that is then elaborated on and executed by a team of designers,
architects, quantity surveyors and the engineers. Only once
individual objectives, goals and parameters are defined can the
project commences. Key to managing a diverse team of service
providers successfully is to be upfront with them regarding the variable priorities and
expectations of the respective client. Understanding that every client is unique will guide the
approach of all participants before any ground is broken.
There are 2 main types of clients.
1. Public clients
2. Private clients
Public clients
Public client base includes Central Government, Local Authorities, The National Health Service,
Police Stations, Transport, Colleges/Universities, Chemists/Pharmacies, and Doctor
Surgery/Health Centers.
Public limited companies
A public limited company, such as a bank, is one that trades on the stock exchange and is owned
by its shareholders. A bank could have hundreds of branches that all need to be maintained and
looked after and upgraded by refurbishment from time to time.
It is also likely to have a large headquarters in a major city, which will need similar work doing.
The Government the Government can issue work at three different levels: through local councils,
devolved administrations (Welsh Assembly and Scottish Parliament), and central government.
Local councils have duties to construct and maintain services. They can issue work such as the
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following: constructing schools maintaining highways replacing window maintaining houses
HND in QS 38
carrying out building works on council properties. Devolved administrations can instruct major
capital works such as the new parliament buildings or infrastructure works.
Central government departments, such as the Ministry of Defense (MOD), or bodies such as the
Highways Agency or National Health Service, purchase a great deal of construction services,
usually using intermediate companies who specialize in managing large building projects.
Client Needs in Constructions
In Order to ensure a successful choice of building procurement system (constructions) the clients
brief must be clear, comprehensive and contain Accountability (Public sector), Quality at the
right place and right price. Speedy constructions, new designed building, maximum tax benefits
Government
The Government can issue work at three different levels: through local councils, devolved
administrations (Welsh Assembly and Scottish Parliament), and central government. Local
councils have duties to construct and maintain services. They can issue work such as the
following.
 constructing schools
 maintaining highways
 replacing windows
 maintaining houses
 carrying out building works on council properties

Devolved administrations can instruct major capital works such as the new parliament buildings
or infrastructure works. Central government departments, such as the Ministry of Defense
(MOD), or bodies such as the Highways Agency or National Health Service, purchase a great
deal of construction services, usually using intermediate companies who specialize in managing
large building projects.
Private clients
Private sector client base includes Banks and Building Societies, Airports, Railways, Retail
Establishments, Embassies, Supermarkets, Ticket Offices, Customer Service Desks, Bakers,
Butchers, Shoe Shops, International Distributors. Private clients are sole traders or domestic
clients who would like to have a house building altered, extended or maintained. They enter into
private agreements with a builder to undertake the work.
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The private sector is the part of the economy that is not state controlled, and is run by individuals
and companies for profit. The private sector encompasses all for-profit businesses that are not
owned or operated by the government
HND in QS 39
Commercial
A commercial client is a factory or business that needs to undertake building works in order to
produce a product or process. For example, a fast food company needs an outlet to sell its
products from. The outlet usually has to be built quickly, and to be maintenance-free and
adaptable. Small industrial factory units are commercial buildings that provide products and
services. Commercial client would similarly have to follow environmental and safety regulations
regarding planning and building. Their cost of construction pays by their own money or business
money.
Our client
Our client is private client. When we are doing any construction project it will better thing.
 No need to wait until providing money as government project.
 We don’t want get approvals from different department as government project.
 When decision making private client is the major person.
 Can do our job well as our own ideas.
 As contractors we have very good working environment with private clients.
 And also we no need to afraid about project delays with political reasons as government
projects.
Conclusion
There are so many parties involved in a construction project. We mentioned the roles &
responsibilities of the contractor, consultant, Project manager, Quantity surveyor, Civil Engineer.
Then we described the sequence of events of a construction project from design to construction.
Before start the construction we have to select the suitable procurement method. This contract is
based on the traditional procurement method.
There are so many contractual arrangements in a contract. We explained those contractual

arrangements according to this project.
When doing the contract according to the traditional method we could identify some problems
such as Claims and payments made on early accomplishments were bloated; the contractor
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eventually abandoned the project, unnecessary work items, incorrect deductions of retention
HND in QS 40
from progress payments due to failure to validate conformance with project schedule. To avoid
those issues we proposed some changes to the contract.
Then we compare the project costs in the context of pre – contract, tender and final account
Stages of the contract as well as Compare the project’s planned programme schedule with the
actual. After that we described how quality is defined and the measures that are available within
this contract to assume its compliance. Analyze other clauses making reference to form of
contract for their interpretation.
Then we explained the different organizations involved in a construction industry& also

explained their services. Then we described the contractual difference between nominated &
other type of contractors.
Finally we discussed needs of clients in both public and private sectors& give effective
judgments based on this housing scheme project.
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2016

 Scope and duration of the project

 The principle parties involved

 Initial contract sum

 Finale contract sum

 Form of contract - SBD 02

1.1 Parties involved

Describe the roles and contractual responsibilities of the parties

 Ensuring that the necessities of building clients/clients are met

 May likewise be agent and possible proprietor

Consultant is working in the organization board in the development. Consultant might be a

• Inspecting the contractual worker

• Develop the configuration with temporary worker

• Preparing the delicate records and other authoritative reports

 Keep the project on time

 Supervising all workers and junior officers

The role of the project manager encompasses many activities including:

 Planning and Defining Scope

Design / pre construction stage

Making a design Brief selecting the consultants

Design concept implementation of design brief

Planning of reasonable configuration - It implies as indicated by the customer's necessities

This mean hand over the project to the particular client.

Construction stage has two main processes

1.2 Procument selection

There are 3 types of procument routes in construction industry.

Different project variable

1.4 Contractual Arrangements

Compare the main contractual arrangements of the contract

being similarly uncertain in nature.

1.5 Procument and Contractual issues

 How are the funds to be obtained

Who is to have the managerial role to oversee or supervise the project

 The nature of the project

Use of evaluate the issues in procurement & contractual procedure.

 To establish a clear strategic direction

RISKS& ISSUES ASSOCIATED WITH PROCUREMENT

 Providing those facilities and choosing those materials.

 Responsibility for method of working.

Variations and adjustments

 An employer's request for a proposal.

 A contractor's 'value engineering' proposal.

Delay and extension of time

 A variation or additional work instructed.

 Exceptionally adverse weather.

 Unforeseeable shortages in the availability of personnel or goods.

 Delay caused by the employer.

 A cause of delay under any other clause in the contract.

 Unforeseeable delay caused by complying with public authority procedures.

The importance of record-keeping

Keeping adequate records is essential to:

 Establish entitlements to money and time.

 Defend subcontractor claims.

 Comply with the contract's reporting obligations.

1.5.3 Differentiate international methods of procurement, Outlining their advantages and

Procurement describes the merging of activities undertaken by the client to obtain a

Procurement Methods Can be classified as:

1) Traditional procurement (Separated & corporate system)

Traditional Procurement Method

Lump Sum Contract

− Less financial risk to Employer.

− High financial risk to Contractor.

− Minimum supervision related to quality & schedule.