Contract Management

CONTRACT MANAGEMENT THEORY

Chapter 1 – Civil Engineering Contracts

What is a Civil Engineering Contract?

When the promoter requires the construction of a facility, he will appoint consultants / contractor to carry out the project. The promoter makes a request for a service the consultants/contractor makes an offer to provide the service to fulfil the request. Once the promoter accepts the offer and the appointment to deliver the service is accepted by the contractor / consultant, then a contract exists between the parties.

Who are the main parties to the Civil Engineering Contract?

• Promoter

• Engineer

• Contractor

How is a Contract reached / list the typical steps in concluding a contract?

Steps 1 to 10

• Define scope of work

• Prepare rfp / request for proposal

• Select 3 consultants

• Issue rfp in writing to the consultants

• Conduct an information session with the consultants

• Receive and evaluate proposals

• Prepare and submit an adjudication report to the promoter

• Issue a letter of appointment to the consultant

• Perform a contract or project kick-off meeting

Explain the difference between the 3 types of standard conditions of contract in RSA?

• GCC 1990 / General conditions of contract for works of civil engineering construction 1990, 6th edition and written for a BOQ type of contract.

• COLTO / General Conditions of contract for road and bridge works for state road authorities, 1998 edition and written for a BOQ type of contract

• FIDIC / General conditions of contract – for international contracts, comprise of 2 parts; 1) general conditions and 2) particular conditions, IPCs are based by applying rates and prices in BOQ. disputes are decided by board of adjudicators.

• NEC / New engineering contract for construction for plain English, very flexible, clarity and simplicity, based on project management principals, adjudicator is appointed up front. The risk allocation is comprehensive and differs from GCC and Fidic.

What are the requirements / list of key issues that need to be addresses in the conditions of contract?

A number of key issues need to be addressed by