Contract

Administration
&
Supervision

April, 2013
 Contents

 Contract Administration
 Introduction
 Conditions of Works Contract
 Discussion
 Supervision
 Supervision Checklist
 Preparation of Payment Certificates
 Information in construction procedures
 Discussion
Contract Administration and Supervision April 2013
 Contract Administration

Contract Administration
Introduction
 Construction Contract Administration are activities
related to administering the contract for construction,
typically performed by the Engineer
 Construction contract administration involves the
activities necessary to effect and determine the
fulfillment of the contract requirements by the
parties

Contract Administration and Supervision April 2013

 Contract Administration
Introduction cont’d
Parties:
The owner/The Engineer/The contractor
Others involved in a project with one of the above:
 Subcontractors, Suppliers, Manufacturers,
 Consultants, who provide professional services to the
Engineer, contractor, or owner,
Testing laboratories and inspection agencies,
 Financial advisers and institutions that arrange for the
project financing,
Contract Administration and Supervision April 2013
 Contract Administration
Introduction cont’d
Attorneys, coordinate the legal and contractual issues
Insurance advisers and companies that provide risk
coverage to the owner, contractor, and Engineer
Bonding companies, which ensure the performance of
the contractor and subcontractors
Authorities and regulatory agencies which have
jurisdiction over the construction
All as ONE and work as a TEAM

Contract Administration and Supervision April 2013

 Contract Administration
Introduction cont’d
Benefits to Working as a Team
• Better communication and coordination
• Increased productivity
• Reduced project costs
• Earlier project completion
• Improved project team morale
• Fewer claims and delays
Always be aware that there are OBSTACLES

Contract Administration and Supervision April 2013

 Contract Administration
Introduction cont’d
Obstacles to Working as a Team
 Adversarial relationships/personalities
 Incomplete or inaccurate contract documents
 Unreasonable schedule requirements
 Unplanned number of changes to the project scope
 Labor issues
 Delays in product fabrication or delivery
 Poor communications
 Delays caused by ineffective management
Contract Administration and Supervision April 2013
 Contract Administration
Introduction cont’d
Contracting Requirements
 Conditions of the contract
 Revisions, clarifications, and modifications
 Specifications
 Drawings

Contract Administration and Supervision April 2013

 Contract Administration
Introduction cont’d
Construction Contract Administrator
o Be able to effectively represent interests of the parties
o Have good communications skills.
o Know the contents of the agreements.
o Know and understand the conditions of the contract
o Understand the codes and regulations that govern the
project.
o Be open-minded, fair, and responsive.

Contract Administration and Supervision April 2013

 Contract Administration
Conditions of Works Contract

Communications (6)
o Communications between parties that are referred to
in the Conditions shall be effective only when in
writing.
o A notice shall be effective only when it is delivered.

Contract Administration and Supervision April 2013

 Contract Administration
Conditions of… cont’d
oInsurance (13)
The Contractor shall provide insurance coverage for;
• Loss of or damage to the Works, Plant, and Materials;
• Loss of or damage to Equipment;
• Loss of or damage to property (except the Works,
Plant, Materials, and Equipment) in connection with
the Contract; and
• Personal injury or death.
 If not, the Employer may effect the insurance and
recover the premiums from payments of
Contractor or, if no payment is due, the payment
of the premiums shall be a debt due.
Contract Administration and Supervision April 2013
 Contract Administration
Conditions of… cont’d
oSafety (19)
The Contractor shall be responsible for the safety of all
activities on the Site.
oProgram (27)
• The Contractor shall submit to the Engineer an updated
Program at intervals no longer than the period stated in the
SCC.
• If not, the Engineer may withhold the amount stated in the
SCCt from the next payment certificate and continue to
withhold this amount until the next payment after the date
on whichContract
the overdue
AdministrationProgram has been submitted.
and Supervision April 2013
 Contract Administration
Conditions of… cont’d
oAcceleration (29)
oTests
If the Engineer instructs the Contractor to carry out a test not
specified in the Specification to check whether any work has
a Defect and the test shows that it does, the Contractor shall
pay for the test and any samples. If there is no Defect, the test
shall be a Compensation Event.

Contract Administration and Supervision April 2013

 Contract Administration
Conditions of… cont’d
Changes in BoQ (Admeasurements Contracts) (38.1)
 If the final quantity of the work done differs from the
quantity in the Bill of Quantities for the particular item by
more than 25 percent, provided the change exceeds 5
percent of the Initial Contract Price, the Engineer shall
adjust the rate to allow for the change.
 The Engineer shall not adjust rates from changes in
quantities if thereby the Initial Contract Price is exceeded
by more than 15 percent, except with the prior approval of
the Employer.
Contract Administration and Supervision April 2013
 Contract Administration
Conditions of… cont’d
Payment Certificates (42)
 The Engineer may exclude any item certified in a previous
certificate or reduce the proportion of any item previously
certified in any certificate in the light of later information.

Contract Administration and Supervision April 2013

 Contract Administration
Conditions of… cont’d
Compensation Events (44)
 The Employer does not give access to a part of the Site by
the Site Possession Date stated in the Contractor’s
approved work program.
 The Employer modifies the Schedule of Other Contractors
in a way that affects the work of the Contractor under the
Contract.
 The Engineer orders a delay or does not issue Drawings,
Specifications, or instructions required for execution of the
Works on time.
 The Engineer instructs the Contractor to uncover or to
carry out additional tests upon work, which is then found to
have no Defects.
 The Engineer unreasonably does not approve a subcontract
to be let.
Contract Administration and Supervision April 2013
 Contract Administration
Conditions of… cont’d
Compensation Events (44)
 Ground conditions are substantially more adverse
 The Engineer gives an instruction for dealing with an
unforeseen condition, caused by the Employer, or additional
work required for safety or other reasons.
 The advance payment is delayed.
 The effects on the Contractor of any of the Employer’s
Risks.
 The Engineer unreasonably delays issuing a Certificate of
Completion.
The Contractor shall not be entitled to compensation to the
extent that the Employer’s interests are adversely affected by
the Contractor’s not having given early warning or not
having cooperated with the Engineer.
Contract Administration and Supervision April 2013
 Contract Administration
Conditions of… cont’d
Price Adjustment (47)
 Only if provided for in the Special Conditions of Contract
 Cotract periods subjected to PA
 Advance payment Deductions
Liquidated Damages (49)
 If the Intended Completion Date is extended after
liquidated damages have been paid, the Engineer shall
correct any overpayment of liquidated damages by the
Contractor by adjusting the next payment certificate.

Contract Administration and Supervision April 2013

 Contract Administration
Conditions of… cont’d
Advance Payment (51)
 Unconditional Bank Guarantee
 Interest will not be charged on the advance payment
Termination (59)
 If the other party causes a fundamental breach of the
Contract
 The Contractor stops work for 28 days
 The Engineer instructs the Contractor to delay the progress
of the Works, and the instruction is not withdrawn within 28
days
Contract Administration and Supervision April 2013
 Contract Administration
Conditions of… cont’d
Termination (59)
 The Employer or the Contractor is made bankrupt or goes
into liquidation
 A payment certified by the Engineer is not paid by the
Employer to the Contractor within 90 days
 The Engineer gives Notice that failure to correct a
particular Defect is a fundamental breach of Contract and
the Contractor fails to correct it within a reasonable period
of time determined by the Engineer

Contract Administration and Supervision April 2013

 Contract Administration
Conditions of… cont’d
Termination (59)
 The Contractor does not maintain a Security, which is
required
 The Contractor has delayed the completion of the Works by
the number of days for which the maximum amount of
liquidated damages can be paid
 If the Contractor, in the judgment of the Employer has
engaged in corrupt, fraudulent, collusive or coercive
practices in competing for or in executing the work

Contract Administration and Supervision April 2013

 Supervision
Supervision
Introduction
Required to:
Control and Assure Quality
Track and Control Cost
Track and Control Time

Contract Administration and Supervision April 2013

 Supervision
Supervision Checklist
INVESTIGATION AND PREPARATION OF SITE
Check:
The site visually if underground utilities cross it.
 The site plan and layout of buildings and sewer system
specially concerning levels and soil condition
 The area to be cleared off and take measurements.
 Trees and bushes within the foundation to be cut and
rooted up
 Boarder lines are agreed with local municipality and
corner stones placed.
 Connection points for water & electricity are agreed upon
with local authorities.
 All necessary temporary drains are constructed to keep the
site free of water.
Contract Administration and Supervision April 2013
 Supervision
Supervision Checklist Cont’d
SETTING OUT
Check:
The setting out is done correctly with proper measuring
tape and accurate levelling instrument.
All measurements to confirm the accuracy and correct
locations of working areas are properly stated out.
The elevation reference point in accordance with the survey
map, and confirm.
 All bottom of trenches and floor levels are according to the
elevations shown on the drawings

Contract Administration and Supervision April 2013

 Supervision
Supervision Checklist
FOUNDATION TRENCH AND Cont’d
PIT EXCAVATION
Check:
Foundation drawings to correspond with the conditions on
site
Foundation depth, width, line and levels to correspond the
drawings.
Allowance for working space
Trench & pits to be clean from grass, bushes, pieces of
wood.
Trench & pits to be kept free of water .
Foundation engineer has accepted excavated foundation
depths.
The faces of excavation are retained with sheeting, time-
bearing, strutting and shoring to protect workmen and
prevent damage where necessary.
Contract Administration and Supervision April 2013
 Supervision
Supervision Checklist Cont’d
BACKFILLING
Check:
All external backfilling around foundation walls and behind
retaining walls shall be done with approved selected
materials
All organic materials, such as pieces of wood, roots, bushes
and black cotton soil are removed from all backfill
material.
All backfilling to be in layers and compacted to 95% of
MDD
Each layer to be well rammed and consolidated with the
addition of water as necessary to achieve the required
compaction.
Layer of fill for one time compaction does not exceed 20
cm.
 Any material which after repeated compaction does not
fulfil theContract
requirements is removed
Administration and Supervision and replaced.
April 2013
 Supervision
Supervision Checklist Cont’d
CONCRETE
Check:
All ingredients are of the type and quality specified.
Cement is stored in a dry and well ventilated store, if more
than six months old, is tested to satisfy the specified
requirements.
Sand to be clear of impurities like dust, mica and organic
matter.
Rejected samples of aggregates are removed from the site
within 24 hours.
Coarse aggregate to be free from impurities like clay, soft
thin elongated or laminated pieces and shall be free
from alkali and organic matter.

Contract Administration and Supervision April 2013

 Supervision
Supervision Checklist Cont’d
CONCRETE
Check:
Before any coarse aggregate is delivered to the site, the
quality is approved at the quarry by the designer
Gradation of coarse aggregate to comply with the
standard technical specification.
Water used for mixing concrete is clean and free from
injurious amounts of oil, acids, alkalise, organic
materials.
No Hand mixing for class I works
Before any casting starts at the site, test cubes of side
dimension 15x15x15 or cylinders of diameter 15cm and
length 30cm of wood or steel are made ready.
All reinforcement and form work are properly placed prior
to anyContract
concreting
Administration and Supervision April 2013
 Supervision
Supervision Checklist Cont’d
CONCRETE
Check:
Before any casting starts the consistency of fresh concrete
must be measured
All placing of concrete starts from one end and continue in
the same direction without any break
No concrete is dropped from a height exceeding 2 meters
If construction joints are necessary they are approved by
the designer
When concrete casting continues on a construction joint,
the joint is clean from foreign matter.

Contract Administration and Supervision April 2013

 Supervision
Supervision Checklist Cont’d
CONCRETE
Check:
The rigidity of the scaffolding and shuttering
The leak-tightness of joints between form work elements
Conformity of the dimensions of the form work with the
(drawings)
The cleanliness of the form work
The surface conditions of the reinforcement
The position and size of reinforcement
The rigidity of the reinforcement securing systems, and the
quality of the joints between bars.
Cover to reinforcement is correct.
Class of concrete, mix design and water cement ratio.
any casting starts the consistency of fresh concrete
Contract Administration and Supervision April 2013
 Supervision
Supervision Checklist Cont’d
STEEL REINFORCEMENT
Check:
Diam, length & shape is according to the drawings & spec
All bars with cracks or splits at the bend are not used for
construction
Should be clean and free from loose rust, grease, oil, etc
Bars are placed in position according to the drawings, and
firmly bound together
 Spacers or metal chairs are prepared and placed

Contract Administration and Supervision April 2013

 Supervision
Supervision Checklist Cont’d
HOLLOW CONCRETE BLOCK WALL
Check:
All blocks are manufactured in an approved special
hollow block machine and under shed
Hollow blocks and the walls are kept free from soil and
other kind of dirt during execution
All joints vertical and horizontal are well filled with
specified mortar
Walling is carried up with no portion more than 1000mm.
above adjacent wall at any one time.
That the joints and the walls are in plumb within 3m
The thickness of the joints do not exceed 15mm.

Contract Administration and Supervision April 2013

 Supervision
Supervision Checklist Cont’d
PLASTER AND POINTING
Check:
Before any plaster is applied, the wall is thoroughly
cleaned from dirt and dustl
All pointing if prescribed in done with cement mortar
All pointing in plumb and level

Contract Administration and Supervision April 2013

 Supervision
Supervision Checklist Cont’d
PAVIOR (TILES PAVIOR)
Check:
The mass concrete is completely free from standing water.
 In the mass concrete surface immediately before the
bedding is laid, a slurry of cement and water is brushed,
unless specified.
The bedding in of cement mortar is1:4, and the slump in
2-5cm and over, thickness is 2-3cm.
 When the bedding is hard enough the joints which shall
be 2-4mm wide are filled with cement mortar.
 Expansion joints are executed as indicated on drawings.
The floor under construction is protected for the first 14
days and kept wet and is protected against damage
Contract Administration and Supervision April 2013
 Supervision
Supervision Checklist Cont’d
CARPENTRY AND JOINERY
Check:
Timber is reasonably straight grained and obtained from
an approved sources.
Timber and assembled wood work are protected from rain
and sun
Fixed joinery is completely protected from damage until
the completion of the construction
Profile of sections is not modified from those shown on
drawings without approval
Door frames and window frames are fixed straight & in
plumb
Hinges, locks, latches and handles are of approved type
and properly fixed
Contract Administration and Supervision April 2013
 Supervision
Supervision Checklist Cont’d
PAINTING
Check:
The painting is done according to the manufacturer's
instructions
The paint is not diluted unless specified by the
manufacturer
All surface to be painted is absolutely dry and free from
defects before painting
The room is closed until the paint dries
All electrical appliances, iron and brass works are
removed before painting and properly refixed after
painting

Contract Administration and Supervision April 2013

 Supervision
Supervision Checklist Cont’d
PREPARATION OF PAYMENT CERTIFICATE
Payment certificate should be prepared on official formats
Payment certificates should be prepared in sufficient
copies as needed
The supervisor shall check payment against:
arithmetic error, contract prices, contract quantities,
contract time
actual measurement sheets, variation orders, supplementary
agreements, validity of performance bond, progress reports

Contract Administration and Supervision April 2013

 Supervision
Supervision Checklist Cont’d
INFORMATION ON CONSTRUCTION
PROCEDURES
Check a site book is kept for any construction work and the
following information is included:
dates on which excavation, concreting, stripping of form
work, back filling, site work has taken place.
acceptance of materials an components
results of tests and measurements
type of cement and aggregate
inspection and measurement reports of the positioning of
reinforcement.
important instruction received.
description of any incidents.
Contract Administration and Supervision April 2013
Points Of Discussion
1.Frequently raised issues and sources of
disagreement between the parties in CA
process
2.Major problems and causes in construction
supervision

Contract Administration and Supervision April 2013

 Thank You!!

Contract Administration and Supervision April 2013