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CONSTRUCTION CONTRACTS

DOCUEMENTS

BY

LECTURER
Esraa Hejjeh

Alain University
2-1 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
2-1 Instruction to bidders (cont’d)
 See attached example for ITB.
2-2 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
2-3Evaluation 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..
2-3Evaluation and qualification (con’d)

 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 , equipments.
2-4 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 Non-Performance, Current Contract
Commitments , Historical Financial Performance, Average
Annual Turnover, General and specific Experience,
CONSTRUCTION DOCUMENTS
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
A. CONTRACT FORMS
 CONTRACT FORMS

Agreement
Performance Bond
Payment Bond
Certificates
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.
A.1 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 fact, whereas the general conditions
section deals primarily with matters that pertain generally
to be construction work and the persons involved.
 In other words, the agreement appears to consist of
statements and the general conditions appear to be terms,
or conditions.
Agreement (cont’d)
 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.
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)

 SEE ATTACHED WORD FILE FOR


EXAMPLES
A.2 .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.
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
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.
Advanced payment bond (cont’d)
 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.
Defect liability Security
 After primary taking over, 5% guarantee
is submitted to employer for defect
liability, valid for 365 days or as stipulated
in PCC.
INSURANCE Certificates
 Insurance for Works and Contractor’s Equipment,
 Insurance against Injury to Persons and Damage to
Property ,
 Insurance for Contractor’s Personnel

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