Transcript S.S. RYE & L. WATERMAN, GENERAL CONTRACTORS, 2333, …

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?
S.A. RYE & L. WATERMAN, GENERAL CONTRACTORS,
2333, LINCOLN’S 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,
L. Watermain
5 February, 1977
73, Chestnut Drive,
Compton, New Jersey,
07632.
Messrs. S. A. Rye & L. Waterman, General Contractors,
2333, Lincoln’s 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
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
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
Bridge Construction
(a)
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
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
Programme (Clause 16)
1.
Programme shows Contractor’s 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 Contractor’s 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
Network Analysis
Student A
a2
a3
a3,b6
a,b,c
Complete project
together (2 hours)
b4
Student B
b2
a4,b5
b3
c5
A’s activities
1. Leave home in Tai Po at 9:00a.m.
2. Walk to railway station – 5 min.
3. Train to Tsim Sha Tsui – 30 min.
4. Meet B to buy materials – 10 min.
5. Bus to School – 15 min.
B’s activities
(1) Identify the critical paths
1. Leave home in Mongkok at 9:00a.m.
2. Take breakfast near home – 20 min.
3. Bus to Tsim Sha Tsui to meet A –
5 min.
4. Wait for A – 10 min.
5. Buy materials – 10 min.
6. Bus to School – 15 min.
(2) Identify the flow
C’s activities
Student C
c2
c3
c4
(3) What happen if B’s breakfast is delayed
by 10 min. ?
(4) What happen if A’s train is delayed
by 15 min. and C’s ferry is delayed
by 15 min. also?
1. Leave home in Central at 9:00a.m.
2. Walk to shop to buy equipment – 5
min.
3. Choose equipment – 15 min.
4. Take ferry to Tsim Sha Tsui – 20 min.
5. Bus to School – 10 min.
Programme (Clause 16)
1.
To submit within 14 days of acceptance of the tender
2.
Showing the sequence, method, timing...due allowance for
carrying out Specialist Works and works by utilities undertakings
3.
Contractor’s 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
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.
Possession of the Site (Clause 48)
2.
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 time…give 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
Possession of Site (Clause 48)
Appendix to Form of Tender
Time for completion 600 days
Portion
Primary
Pumping Station
Secondary
Pumping Station
Portion A
Portion B
Pumping Main
Portion D
Portion C
No. of days from
commencement
A
0
B
200
C
400
D
450
Particular Specification
The contractor shall not commence
the construction of primary pumping
station before the completion of
secondary pumping station
Variation (Clause 60)
1.
What is variation?
2.
Engineer’s 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
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
Variation (Clause 60)
(a)
Additions, omission...changes in quality, form, character...
(b)
Charges to any sequence, method or timing specified in the
contract
Variation (Clause 60)
Additional
Excavation
1
Estimated
Rock Level
1
1
1
3
10
Actual
Rock Level
3
10
Proposed Road
Proposed Road
Proposed Road
Valuation
Clause 61 (1)
(a)
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.
Bill of Quantities (Clause 59)
(1)
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
(2)
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
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?
Bill of Quantities (Clause 59)
Example
Quantity in Bill of Quantities
500,000m3
Actual Quantity
300,000m3
Rate
100m3
?
(a) What are included in the rate?
(i) labour
(ii) plant
(iii) Overhead
(b) What is the result of less quantities?