Contract

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Contract
1. What is a Contract
(a) Offer and acceptance
(b) Consideration
(c) Intention to create legal relationship

2. How many ways can a contract be formed

(a) writing
(b) Oral
(c) Conduct
3. How long does a contract last?
(a) Until completion
(b) What is completion
How long does the obligation continue?
What is maintenance period?
4. What is meant by the terms of a Contract?

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S.A. RYE L. WATERMAN, GENERAL CONTRACTORS,
2333, LINCOLNS FIELD, COMPTON, NEW JERSEY,
07633.

• 2 February 1977,
• Mr. R. Beale,
• 73, Chestnut Drive,
• Compton, New Jersey, 07632.
• Dear Sir
• Re Proposed Double Garage, at 73, Chestnut
  Drive, Compton.
• We have examined the site and the Drawing (No.
  A134) for this proposed building, and we hereby
  offer to provide all labor, materials, and other
  things required to construct the Double Garage as
  shown in the Drawing for the Sum of 6,205.00
  (six thousand, two hundred and five dollars) to
  be paid by you in one payment to us on
  substantial completion of the work.
• We are prepared to start the work on April 8,
  1977 and to substantially complete it by April
  30, 1977.
• We thank you for this opportunity to make a
  proposal for this work and hope that you will
  find our offer acceptable.
• 
  
  Yours Truly,
• 
  
  

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5 February, 1977
73,
Chestnut Drive,

Compton, New Jersey,
07632. Messrs. S. A. Rye L. Waterman,
General Contractors, 2333, Lincolns
Field, Compton, New Jersey, 07633. Dear Sirs
Re The Proposed Double Garage at 73
Chestnut Drive, Compton. I have received your
letter dated February 2, 1977, and I accept your
offer. Please start work on April 8, 1977. In
the meantime, I shall arrange for the site to be
cleared.

Yours Truly,




R. Beale


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Construction Contract
Target To build a luxury house with a garden
Step 1 (a) To employ an Architect
(b) (i) Design
(ii) Approved plans
(iii) Detailed drawings with
Specification
Step 2 (a) To call tenders
(b) (i) 40M
(ii) 38M
(iii) 30M not include materials
Step 3 a contract with terms
(a) 38M
(b) 1 April 05 1 April 06
(c) payment as measured
(d) L.D. 1000/day
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Construction Contract
What happens during construction?
(a) Very heavy rain affecting progress of work
(i) Clause 50
(b) Typhoon causing injury and damage
(i) Clause 21
(ii) Clause 22
(c) Architect sick
(i) Who is the Architect ?
(d) Cash flow problems
(i) Clause 88
(e) Wrong position of column
(i) Clause 23
(ii) Excepted Risks
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Bridge Construction

1. Piling changed into spread footing because of
   shallow rock level

(b) Part of the abutment modified to save time
necessary for watermain diversion
(c) The Contractor proposed to change the size of
reinforcement to facilitate concreting
(d) The ER approved the use of parapet which was
subsequently found not complying with
specification
(e) In (d), what is the position after the issue
of maintenance certificate
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Definition of Condition of Contract
1. Difference between C. of C. and Specification
2. Other documents
3. Simple definition
(a) Right entitlement and obligation
liability of Contractor
(b) Right entitlement and obligation
liability of Employer
(c) Power and duties of Engineer
4. Important Clauses
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Programme (Clause 16)

• 1. Programme shows Contractors intention of how
  to carry out and complete the Work

• 2. Programme is useful

(a) As a good management tool
(i) Allocation of staff and resources
(ii) Identify and delays and mitigation
measures
(iii) Revise working sequences
(b) To determine Contractors entitlement to
EOT
(i) must show critical path
(ii) concurrent delays
3. Various types of programmes
(a) Clause 16 Master Programme
(b) Sub-programmes e.g. utility sub-programme
(c) 3-month rolling programme (compatible with
Master Programme)
(d) Executive summary programme
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Network Analysis
(1) Identify the critical paths
(2) Identify the flow
(3) What happen if Bs breakfast is delayed
by 10 min. ?
(4) What happen if As train is delayed
by 15 min. and Cs ferry is delayed by 15
min. also?
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Programme (Clause 16)
1. To submit within 14 days of acceptance of the
tender

• Showing the sequence, method, timing...due
  allowance for
• carrying out Specialist Works and works by
  utilities undertakings

• Contractors arrangements for carrying out the
  works...and of
• Constructional Plant and Temporary Works which
  the Contractor
• intends to supply, use or construct...

• 4. Submission of programme... shall not relieve
  the Contractor of any duty or responsibility
  under the Contract

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Possession of Site (Clause 48)

• 1. Contract may prescribe

(a) extent of Portion of the Site
(b) to be given possession from time to time.

(c) order in which such Portion shall be made
available.
(d) requirement in the Contract as to the
order in which works shall be executed.

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Possession of the Site (Clause 48)

• The Employer shall give...so much of the site...
  to proceed with the
• construction of the Works.

(f) in accordance with the programme referred to
Clause 16.
(g) otherwise in accordance with such reasonable
proposals The Contractor shall make to the
Engineer.
(h) from time to timegive to the Contractor
further part of the site

• 3. The Engineer is of the opinion that the
  contractor has been
  involved in additional payment. Works...material
  affected by failure...to give
  possession...Engineer certify

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Possession of Site (Clause 48)
Appendix to Form of Tender Time for completion
600 days
No. of days from commencement
Portion
A B C D
0 200 400 450
Particular Specification The contractor shall not
commence the construction of primary pumping
station before the completion of secondary
pumping station
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Variation (Clause 60)

• 1. What is variation?

2. Engineers power to order
(a) Changes/additions
(b) Omission
(c) Work shown in drawings but not in BQ
3. Effect of variation
(a) Cost implication
(b) Time implication
4. What is the pitfall of specifying levels
and/or gradient?
(a) In cut slopes
(b) In pile toe levels
(c) In drainage plans
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Variation (Clause 60)

• (1) Necessary for completion of the Works

(2) Power to order any variation that for any
other reason shall in his

opinion be desirable for or to achieve the
satisfactory completion and functioning of the
Works
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Variation (Clause 60)

• (a) Additions, omission...changes in quality,
  form, character...

• Charges to any sequence, method or timing
  specified in the
• contract

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Variation (Clause 60)
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Valuation
Clause 61 (1)

1. Item of works omitted valued at rate set out in
   Contract

(b) Any work of same or similar character under
same or similar condition valued at rates set out
in Contract
(c) Any work not of the same or similar character
nor carried out under same or similar condition,
based on rate so far as may be reasonable
Proviso
If the nature or extent of VO shall be such that
in the opinion of the Engineer, any rate in any
item of work is by reason of such variation
rendered unreasonable or inapplicable than a new
rate shall be fixed by the Engineer, using
contract rate as the basis.
Comparison with Clause 63(b) Disruption to the
progress of the Works.
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Bill of Quantities (Clause 59)

• The Bill of Quantities shall be deemed to
  have been prepared
• and measurements shall be made according to
  the
• procedures... in the Method of
  Measurement

• The quantities... in the Bill of Quantities
  are estimated
• quantities...

• (3) Any error in description in BQ or
  items omitted...Engineer shall
• correct any such error or omission...shall
  certify

(4)(b) Actual quantity of units...be
substantially greater or less than that
stated in the BQ...
- in the opinion of Engineer
- such increase or decrease itself
- shall render the rate for such item
unreasonable or not applicable
- the Engineer shall determine an appropriate
increase or decrease of rate
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Bill of Quantities (Clause 59)

• (1) What triggers re-rating

(a) Method of construction changed
(b) Economics of construction changed
(2) Which is the Key word?
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Bill of Quantities (Clause 59)
Example
(a) What are included in the rate?
(i) labour
(ii) plant
(iii) Overhead
(b) What is the result of less quantities?