QUANTITY SURVEYING AND

ESTIMATION
LECTURE 5

Contract Documents

GENERAL PROVISIONS OR GENERAL

CONDITIONS
1.
2.
3.
4.
5.
6.
7.
8.
9.

Nature and interpretation of contract

Delays and default
Acceptance
Copyrights and patents
Disputes and arbitration
Liability with respect to claims
Changes and amendments
Termination
Notices
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SPECIAL PROVISIONS OR SPECIAL

CONDITIONS
1.
2.

3.
4.

5.
6.
7.

8.
9.
10.

11.
12.

Work and services to be executed by the Contractor

Equipment, materials, supplies, services and
personnel to be provided by the Contractor
Schedule of performance
Authorizations and permits
Levies, duties, taxes, etc.
Statement of accounts and/or invoices of Contractor
Overpayments
Remuneration and method of payment
Revision of prices
Bonus for early completion and penalties
Certificates of completion of works
Period of maintenance

SPECIAL PROVISIONS OR SPECIAL

CONDITIONS
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.

Completion of period of maintenance

Supervision of works
Construction site logbook
Organization of the construction site
Particulars to be supplied
Presence of the Contractor on the construction site
Insurances at the cost of the Contractor
Clearance of site on completion
Patent rights and royalties
Inspection of site
Designation of the Organization's Resident
Engineer

STATEMENTS OF WORK, SERVICES AND

TECHNICAL SPECIFICATIONS
Statements of work and services contain the
scope of the work including description of the site for
work, soil characteristics determined by the
reconnaissance soil survey carried out at the site,
geological characteristics, meteorological features
needed for the construction works and the operation
of the project.
Technical
specifications
contain
detailed
descriptions of all workmanship, services and
materials as well as testing methods which are
required to complete a project in accordance with the
drawings and specifications.

TECHNICAL SPECIFICATIONS

Specification of work is required to describe the quality and

different materials needed for a construction work and is one of
the essential contract documents.
Contractor can prepare a program to procure the materials
required for a project as well as enabling the Owner's
representative to check the quality of materials, confirming the
specifications and thereby avoiding any dispute with the
Contractor.
A guide both to the Contractor and the Engineer in order to
execute the work to their satisfaction. Specifies the scope of
work and services provided by the Contractor to the Engineer
as well as the workmanship, including the method of
performing the work.
Tender documents without specifications of works are baseless
To test the quality of materials
Specification is an essential contract document and is required
for Arbitration or court cases.

APPROPRIATE DISPUTE RESOLUTION (ADR)

ADR comprises of:

Arbitration,
Mediation,
Conciliation and
Negotiation.

These time proven processes are the alternatives to

seeking settlement of disputes through the courts. The
courts are backlogged with waits often measured in
years. People with disputes to settle want to do so
quickly, and then get on with their lives. ADR can in
most cases be the answer to the dilemma.
Construction contracts and many statutes now contain
requirements that disputes arising be settled using ADR.

APPROPRIATE DISPUTE RESOLUTION (ADR)

Some of the benefits of using ADR :

Can be completed quickly

Schedules to suit the parties
Generally less costly than proceeding through to a court
trial.
Confidentiality - ADR settlements are a private matter
between the parties, and there is no public record.
ADR is generally voluntary, except where it is required
by contract or by statute.
It is rare for ADR settlements to be appealed to the
courts
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ARBITRATION (THE ARBITRATOR DECIDES)

Arbitration is a dispute resolution process where the

opposing parties select or appoint an individual called an
Arbitrator. Upon appointment, the Arbitrator will
arrange the process to hear and consider the evidence,
review arguments and afterwards will publish an award
in which the items of dispute are decided.
In some cases the Arbitrator can conduct the
arbitration on documents evidence only. When published
the Arbitrator's decisions are final and binding on the
parties. It is rare for an arbitration to be appealed to the
courts. An arbitration may comprise a sole Arbitrator, or
may be a panel of Arbitrators.
Costs of the arbitration are disposed of in the
Arbitrator's award, unless the parties have some
agreement to the contrary.
There 41 rules of Arbitration as PEC document

MEDIATION (THE PARTIES DECIDE)

A dispute resolution process in which the parties freely

choose to participate, an disputes are settled solely by
the parties, without interference. The Mediator is
selected by the parties and once selected, the Mediator
will arrange the mediation process. The Mediator makes
no decisions, instead he/she acts as a facilitator only to
assist the parties to understand the dispute, provide
structured discussion and to help the parties to reach a
dispute settlement agreement.
If the parties can't reach a settlement agreement, they
are free to pursue other options. The parties generally
decide in advance how they will contribute to the cost of
the mediation. Mediation is a very important form of
ADR, particularly if the parties wish to preserve their
relationship.

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CONCILIATION
Conciliation is a less frequently used form of ADR,
and can be described as similar to mediation. The
Conciliator's role is to guide the parties to a
settlement.
The parties must decide in advance whether they
will be bound by the Conciliator's recommendations
for settlement or not.
The parties generally share equally in the cost of
the conciliation.

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RULES OF CONCILIATION (PEC)

Rule 1: Application of rules
Rule 2 (Commencement of Process)

A written invitation to the other part from party who

wants to initiate conciliation on a particular disputes
Conciliation procedure begins once invitation is
accepted.
No conciliation in case of rejection.
If the party does not receive a reply within 15 days
from the date on which he send the invitation, he
may elect to treat this as a rejection.

Rule 3 (number of conciliators)

Should be one conciliator unless the parties agree

that there shall be odd number(s) of conciliators.

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RULES OF CONCILIATION (PEC)

Rule 4: Appointments of conciliator

With one conciliator, the parities shall endeavor to
reach agreement on the name of a sole conciliator.
With three conciliator, each party appoints one
conciliator. the parities shall endeavor to reach
agreement on the name of a 3rd conciliator.
Professional Engineers (PE)

Rule 5: submission of statements to Conciliator

Rule 6: representation and assistance
Rule 7: role of conciliator
Rule 8: administrative assistance
Rule 9: Communication between C and P

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RULES OF CONCILIATION (PEC)

Rule 10: Disclosure of information

Rule 11: Cooperation of parties with C
Rule 12: Suggestion by parties for settlement of dispute
Rule 13: Settlement agreement
Rule 14: Confidentiality
Rule 15: Termination of Conciliation Proceedings
Rule 16: Resort to Arbitral or Judicial Proceedings
Rule 17: Costs
Rule 18: Deposits
Rule 19: Role of Conciliator in other proceedings
Rule 20: Admissibility of Evidence in other proceedings
Rule 21: Time period for conciliation

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NEGOTIATION

Negotiation is a less structured form of ADR. The

facilitator's role is to keep the parties talking and
bargaining. The parties may be individuals or teams.
The facilitator keeps record of party positions, and points
of agreement they reach as discussions proceed.
The process can be lengthy, as in labor or sports
negotiation. The facilitator will prepare a memorandum
of agreement containing all of the points agreed.
The parties can formalize the memorandum of
agreement by inserting a condition that will be binding.
The parties generally share equally in the cost. On any
matters unresolved, the parties are free to pursue other
options.

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PENALTY
It is a sort of fine for non-fulfillment of terms of
contract.
Usually for following reasons

Not maintaining the progress

For delay in completion
For bad work, etc.

It may be fixed-sum per day, or a certain

percentage of the estimated cost up to 10%.

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COMPENSATION FOR DELAY IN

COMPLETION
An amount equal to 1% of the estimated cost of
the work or such smaller amount that the
competent authority may decide for every day
that the work remains un-commenced or
unfinished after the due date.
Maximum limit is 10%.

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DAMAGES

Liquidated damages

Also referred as ascertained damages

Amount decided during the formation of contract for the
compensation of the late performance for the injured
party.
It is a fixed stipulated sum of penalty by the contractor.
It is usually exorbitant and fixed per day for the excess
period taken the completion of the work than that
specified in the contract.

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DAMAGES

Un-liquidated damages

Damages that are sufficiently uncertain may be

referred to as un-liquidated damages
This is also known as ordinary damages having relation
with the actual damage done.
It will increase/decrease according to damage for the
non-completion of the work within due date.
When damages are not predetermined/assessed in
advance, then the amount recoverable is said to be 'at
large' (to be agreed or determined by a court or tribunal
in the event of breach).
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QUESTIONS?

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