CE Law 5 Contract

CE LAWS,
ETHICS &
CONTRACTS
Engr. Norliela Linog-Beserial
CE Laws, Ethics & Contracts 2
INTRODUCTION
"Even the most rational approach to ethics is defenseless if there isn't
the will to do what is right."
- Alexander Solzhenitsyn (1918 - 2008)
INTRODUCTION TO
CIVIL ENGINEERING
CONTRACT DOCUMENTS
& TENDERING PROCEDURE
4
CONTRACT DOCUMENTS
The contract documents are all documents which, when combined,

forms the basis of the contract. A possible list of documents that
makeup the contract documents include:
1. Agreement 7. Schedules / Programme of

Works
2. General Conditions
8. Pricing Schedules or Cash
3. Special Conditions Flow Estimate
4. Bill of Quantities 9. Insurances
5. Drawings
6. Specifications
CONTRACT DOCUMENTS
Agreement - The agreement to be used by the contracting officer (owner) and

the contractor. The most essential part of the contract documents.
General Conditions - This contract document will define the obligations and
rights on how to execute the project.
Special Conditions - This is usually an extension of the contract and to the

general conditions. This part must specify specific conditions and clauses to each
particular project or job.
Bill of Quantities - This is formed by the list of diverse trades, and

materials included that form part of the construction. Sometimes this document
is not required by the contracting officer.
Drawings - All set of drawings that form part of the job to be performed.
These drawings are usually the latest drawings and must be received by the
contractor prior to the date of commencement. It must include all drawings
from consultants, and will constitute the entire project being contracted.
CE Laws, Ethics & Contracts
6
CONTRACT DOCUMENTS
Specifications - The technical requirement to complete, execute and/or

perform every little task or material being incorporated in the construction
projects. It will add intelligence to the construction drawings; specify
common standards, deviations accepted, materials accepted and the
required testing for all materials. Usually, specifications are composed by
referencing construction standards and codes.
Schedules / Programme of Works - The construction schedule is

an important piece of the document. In this part, the contracting
office will know how and when the project will be completed.
Sometimes, construction contracts will require updated schedules
throughout the construction progress, and might form part of the
monthly, or agreed term, application for payments.
CONTRACT DOCUMENTS 7
Insurances - This part will be an essential part to the contracting officer, since,
it will provide the guarantee to the owner that the contractor has the means
and the economic backup to perform the construction contract. It will
include specific types of coverage’s, required bonding, and all insurance
protections to the owner, the contractor and third parties.
Pricing Schedules or Cash Flow Estimate - Breakdown of all items

being incorporated in the construction project. This is usually the base of the
application for payment. It can be detailed per item or in a lump sum form,
not specifying individual items.
TENDERING PROCEDURE
The word Tender refers to a sealed bid or offer document submitted in response to
a request for tenders and containing detailed information on requirements and terms
associated with a potential contract at a specified cost.
The work Tenderer or Bidder refers to a person or company that puts forward or
submits a sealed bid containing an estimate of cost and other requirements.
Tendering Procedure presents a systematic approach for tendering and awarding
of contracts for construction projects. It is intended to assist the employer/engineer
to receive sound competitive tenders in accordance with the tender documents so that
they can be quickly and efficiently assessed.
FIDIC signs contract training collaboration agreement (Memorandum of Understanding,
MoU) with Philippine Department of Trade and Industry (DTI) to train government
engineers and other construction professionals in the use of FIDIC contracts.
The FIDIC Tendering Procedure provides the opportunity and incentive to contractors
to respond easily to invitations to tender for projects which they are qualified to
implement. The adoption of this procedure minimizes tendering costs and ensures that all
tenderers receive a fair and equal opportunity to submit their offers on a reasonable
and comparable basis.
TENDERING PROCEDURE
The procedure is related to FIDIC's Conditions of Contract for Works of Civil

Engineering Construction (Red Book)and Conditions of Contract for Electrical and
Mechanical Works (Yellow Book), but can be readily adapted to any acceptable contract
form.
Experience has shown that for projects involving international tendering,
prequalification is desirable since it enables the employer/engineer to establish the
competence of companies subsequently invited to tender. It is also in the interest of
contractors since, if prequalified, they will know that they are competing against a
limited number of other firms, all of whom possess the required competence and
capability.
The procedure is suitable for tendering for most international construction works, but
it may be adapted to suit the particular requirements occasioned by the size and
complexity of a project, and any special conditions imposed by the established
procedures of the employer or the financing institutions. It reflects good current
practice. FIDIC recommends its use by employers, engineers, contractors and others
involved in the international construction industry.
CE Law, Ethics & Contracts 10
TENDERING PROCEDURE
Post qualification is an assessment made by the Employer after the evaluation

of bids and immediately prior to award of contract, to ensure that the lowest-
evaluated, responsive, eligible bidder is qualified to perform the contract in
accordance with previously specified qualification requirements.
Prequalification is an assessment made by the Employer of the appropriate level

of experience and capacity of firms expressing interest (Expression of Interest)
in undertaking a particular contract, before inviting them to bid.
A responsible bidder is a contractor qualified on the basis of:

• is able to comply with the associated legal or regulatory requirements ∙ is able to deliver
according to the contract schedule
• has a history of satisfactory performance
• has good reputation regarding integrity
• has or can obtain necessary data, equipment, and facilities, and
• is otherwise eligible and qualified to receive award if its bid is chosen.
11
BREAKDOWN OF FIDIC TENDERING PROCEDURE
1.0 Project Strategy

• Establishment of Procurement Method and Form of Tendering
• Preparation of Programme
2.0 Prequalification of Tenderers

• Preparation of Prequalification Documents
• Invitation to Prequalify
• Issue and Submission of Prequalification Documents
• Analysis of Prequalification Applications
• Selection of Tenderers
• Notification of Applicants
3.0 Obtaining Tenders

• Preparation of Tender Documents
• Issue of Tender Documents
• Visit to Site by Tenderer
• Tenderers’ Queries
• Addenda to Tender Documents
• Submission and Receipt of Tenders
BREAKDOWN OF FIDIC TENDERING PROCEDURE
4.0 Opening of Tenders

• Opening of Tenders
5.0 Evaluation of Tenders
• Review of Tenders
• Tenders containing Deviations
• Adjudication of Tenders
• Issue of Letter of Acceptance
6.0 Award of Contract
• Issue of Letter of Acceptance

• Performance Security
• Preparation of Contract Agreement
• Notification of Unsuccessful Tenders
Assignment No. 4
• Give examples of modes of procurement and

standard contract documents used in government
projects
THANK YOU
End

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CE LAWS,

The contract documents are all documents which, when combined,

1. Agreement 7. Schedules / Programme of

Agreement - The agreement to be used by the contracting officer (owner) and

Special Conditions - This is usually an extension of the contract and to the

Bill of Quantities - This is formed by the list of diverse trades, and

Specifications - The technical requirement to complete, execute and/or

Schedules / Programme of Works - The construction schedule is

Pricing Schedules or Cash Flow Estimate - Breakdown of all items

The procedure is related to FIDIC's Conditions of Contract for Works of Civil

Post qualification is an assessment made by the Employer after the evaluation

Prequalification is an assessment made by the Employer of the appropriate level

A responsible bidder is a contractor qualified on the basis of:

1.0 Project Strategy

2.0 Prequalification of Tenderers

3.0 Obtaining Tenders

4.0 Opening of Tenders

5.0 Evaluation of Tenders

6.0 Award of Contract

• Issue of Letter of Acceptance

• Give examples of modes of procurement and

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