Project and Contract Management 1

CONTRACT:
A legal agreement between the two or more parties of a project is called
contract.

Normally there are three contracts in a construction project. The first

contract is between the client and the design consultant and the 2nd
contract is between the client and the contractor and the 3rd is between
the client and the supervision consultant.

FIDIC (Federation Internationale Des Ingenieurs-

Consiels):
FIDIC produces the standard forms of the contract for engineering
construction. FIDIC construction work is standard in the world. FIDIC
documents give the general conditions of the contract and the conditions
of particular application.

Standard forms of the contract are necessary to identify the roles and
responsibilities of the parties.

KINDS OF PROJECTS IN CIVIL ENGINEERING:

1) Design Projects

2) Supervision Projects

3) Construction Projects

RESOURCES IN PROJECT MANAGEMENT:

1) Manpower (skilled and unskilled labor, non-labor)

2) Material

3) Machinery
 4) Money

PARTIES OF A PROJECT:
1) Client / Owner / Employer :
Client is the financer or owner of the project. It is not necessary that
the client must be a technical person. The client will also have a
reasonable estimate of the total cost before the contract is signed.

Client or financer of the construction project can be:

1) Federal government

2) Provincial government

3) Private organization

Leading federal government clients in Pakistan include:

WAPDA ( Water And Power Development Authority )

NHA ( National Highway Authority)

Pakistan Railways

Civil Aviation Authority (CAA)

PIA ( Pakistan International Airline)

Leading provincial government clients include:

Communication and Works Department (C & W)

Irrigation and Power Department (I & P)

Planning and Development Department (P & D)

Leading private sector clients in Pakistan include:

Eden private limited

 Bahria private limited

EMAAR pak limited

Pace private limited

Tricon developers

Trident private limited etc.

2) Design Consultant :
Design consultants design the project. When the designs are
submitted by the design consultants these designs can be cross
checked by other agencies.

Leading design consultants in Pakistan are:

NESPAK ( National Engineering Services of PAKistan)

ACE (Associate Consultant Engineers)

REC (Republic Engineering Consultants)

Mod McDonald private limited

Noor Durrani and Associates

Nayer Ali Dada and Associates

AAA Associates

Indus Associates

3) Contractors :
Contractors make the construction. Contractors always need a bill of
quantities for preparing and comparing tenders.
 Note: When bidding of a project is being done, contractors or
other parties know that they must bid the lowest possible price to
be able to get the contract.

Leading contractors in Pakistan are:

DESCON engineering private limited

National Logistic Cell (NLC)

Frontier Works Organization (FWO)

ECO west international private limited

Saadullah Khan and Brothers (SKB) engineering and construction

Habib Rafiq private limited

Imperial construction company private limited

Khalid Rauf company private limited

4) Supervision Consultant :
The responsibility of the supervision consultant is to check either the
construction is being held under the required specifications or not. It is
basically supervision of the contractors.

All the companies giving the services of design consultancy are also giving
the services of the supervision consultancy.

Examples Of Construction Projects :

Construction of the flyover at canal crossing of Ferozpur road,
Lahore.

Client: Communication and Works department, government of Punjab

Design Consultant: NESPAK

Contractor: NLC

Supervision Consultant: NESPAK

 Construction of Lahore Sahiwaal section of N-5 using cold recycling
method

Client: NHA, government of Pakistan

Design Consultant: SMEC international

Contractor: SKB engineering construction

Supervision Consultant: SMEC international

Construction of PACE residential apartments at Gulberg Lahore.

Client: PACE private limited

Design Consultant: Noor Durrani and Associates (NDA)

Contractor: PACE Pakistan private limited

Supervision Consultant: NDA

Budget Distribution of a Construction project:

For Construction: 90% to 97% of the total project budget

For Design and Supervision: 3% to 10% of the total project budget

Contract Management:
The main aim of the contract management is to obtain the product as
agreed in the contract. It is vital to build a contract that identifies
clearly the obligations of contractor and the client or employer. The
contract must be built on a firm, formal and legal foundations, it should
be flexible to accommodate changes and variations etc.
 Steps of Contract management:
1) Pre-qualification of the design consultant

2) Tendering of design consultant

3) Tender documents , prequalification of contractor

4) Tendering of contractor

1) Pre-qualification of the design consultants :

To have the selection of those design consultant companies who are
capable of doing design work. Any client who wishes to initiate any project
is required to give a media advertisement titled as "pre-qualification of
design consultants" (preferably in newspaper). Then all the interested
design consultant companies submit their technical and financial reports
to the client within in the time mentioned in the advertisement. Then by
judging the technical and financial abilities of design consultant
companies, client will qualify some companies to take part in the
tendering process of the project. These companies which the client has
qualified will be called as "pre-qualified design consultant companies".

In this process the client will assess the design consultant companies on
two basis:

Technical Ability

Financial ability

Technical Abilities:

It includes:

i. Registration of the company

ii. Registration of the company with PEC

iii. Registration of the company with government and private client

iv. List of past works

v. List of present works in hand

vi. List of contacts of all present and past clients

vii. List of technical staff (engineer's staff)

viii. List of equipment and machinery ( for contractors only)

ix. List of registered office with telephone fax and email (company
should have its own office and it should be accessible to the post
office)

Note:

PEC is a body governing the engineering practice in the

country. It is a federal government council

Design consultants cannot do the construction because they

don't have the construction machineries.

Financial Ability:

It includes:

i. Bank reference certificate (a certificate given by the banks stating

that company has been successfully maintaining its accounts)

ii. Latest bank statements (these statements will show the successful
potential of the company and their inflow and outflow. These include
income tax registration statement, sales tax registration certificate,
national tax number (NTN), list of cost of all past and present
projects)

iii. Details of joint venture (joint venture: on large scale engineering

projects very often the specialty of the one specific company Is not
enough to handle whole project in both design as well as in
construction phase. If more than one companies are joined together
to participate in prequalification process, this joining of companies is
called joint venture)