FACULTY OF BUILT ENVIRONMENT (FOBE)

BTQS3024 CONTRACT MANAGEMENT TUTORIAL 1

WEEK 1 (2020) - ANSWER

Please answer the following question based on the information from the lecture notes, reference
books or journals.

1. Discuss the functions of contract management in ensuring the smooth completion of a

construction project.

Answer:
Ensure the efficient and effective delivery
Maximize value for money.
Focus on activities during contract execution/implementation.
Slide 13, week 1a.

2. Briefly discuss the phases and objective in contract management.

Answer
Figure 1 – upstream and downstream phase, slide 14, week 1a.
Objective: time + quality + price, slide 15, week 1a.

3. According to Contract Act 1950, what are those 6 elements of legal contract?

Answer
• Offer
• Acceptance
• Consent
• Competency
• Consideration
• Legality

4. Briefly explain six (6) elements of a legally binding contract.

Answer
• Offer – an offer by 1 side, submission tender is an offer, slide 21, week 1a
• Acceptance – accept offer made, unconditional or counter offer, slide22, week
1a
• Consent – approval to enter contract, slide 23, week 1a
• Competency – not a minor age 18 and above, slide 24, week1a.
• Consideration – exchange of value,
• Legality – lawful contract, not immoral, slide 26, week 1a.

5. As a project manager of a housing project development, you are required to prepare a

briefing on the contracting process for the housing project. Briefly explain the required
principle of contracting process in the construction project.

Answer
1

Principle of good contract governance, slide 20 + 21, week 1b.

Page
 FACULTY OF BUILT ENVIRONMENT (FOBE)

BTQS3024 CONTRACT MANAGEMENT TUTORIAL 1

WEEK 1 (2020) - ANSWER

6. Discuss the roles and responsibilities of the 2 main parties in a construction contract.
Answer
Employer/Client/Owner – slide 4, week 1b
Contractor – slide 5, week 1b.

7. Describe the categories of professional consultants in a construction project.

Answer
Design Team
Non-design team.

8. Name 5 type of standard form of contract in Malaysia.

Answer
PAM 2006/2018, PWD 203A (2010), CIDB (2000), IEM CE (2011), Fidic.

9. Advice client what are the suitable contract strategy to ensure the success
implementation of a project.
Answer
• To protect rights of contracting parties.
• To ensure parties deliver their commitments.
• To ensure
1. Delivery on time
2. Right quality
3. Within budget
Slide 23, week 1b

10. In all the conditions of contract, what are those similar conditions.
Answer
Instructions
Variations
Valuations
EOT,
Loss/expense,
Dispute resolution.

11. As contract administration, kindly outline the content of the following:

a.) tender documents
b.) contract documents.
Answer
Tender document –
Form of tender, Conditions of Contract, Supplementary Conditions of Contract,
Condition of Tendering, Special condition of tendering, Specification & Preambles, Bills
of Quantities, Summary of Tender & Appendices

Contract document –
Correspondence forming part of Contract, Form of tender, Conditions of Contract,
Supplementary Conditions of Contract, Condition of Tendering, Special condition of
2

tendering, Specification & Preambles, Bills of Quantities, Summary of Tender &

Page

Appendices