11

CONTRACTING

22

WHAT IS CONTRACTING ?WHAT IS CONTRACTING ?

CONTRACTING IS BASICALLY AN AGREEMENT BETWEEN CONTRACTING IS BASICALLY AN AGREEMENT BETWEEN TWO PARTIES, ONE CALLED THE CONTRACTING PARTY TWO PARTIES, ONE CALLED THE CONTRACTING PARTY AND THE OTHER THE CONTRACTED PARTY OR THE AND THE OTHER THE CONTRACTED PARTY OR THE CONTRACTOR, TO PERFORM A PREVIOUSLY CONTRACTOR, TO PERFORM A PREVIOUSLY DETERMINED SCOPE OF WORK FOR A PREVIOUSLY DETERMINED SCOPE OF WORK FOR A PREVIOUSLY DETERMINED REMUNERATION WITH A CLEAR DETERMINED REMUNERATION WITH A CLEAR DISTRIBUTION OF RISKDISTRIBUTION OF RISK . .

33

☺ INDEPENDENT

☺ PROFIT ORIENTED

☺ COMPETITIVE

☺ RISK TAKER

☺ UNCERTAINTY

☺ CHANGING PERSONNEL

☺ FLUCTUATING COSTS

ABOUT THE CONTRACTORS

44

ECONOMICAL ACTIVITY

PERSONNEL AVAILABLE

COMPETITION

CUSTOMERS REQUIEMENT

ORGANIZATION PROBLEMS

WEATHER CONDITIONS

FACTORS AFFECTINGCONTRACTOR POTENTIAL

55

WELL-TRAINED PERSONNEL

SOUND PROJECT SELECTION

COST CONTROL

PLANNING

PUBLIC RELATIONS

ALERTNESS

SOUND FINANCES

SUCCESSFUL CONTRACTORS

66

GENERAL CONTRACTOR LARGE JOBS

GENERAL CONTRACTOR SMALL JOBS

GENERAL CONTRACTOR SPECIALIZED

PRIME CONTRACTORS HIGHLY SPECIALIZED

SUBCONTRACTORS

CONTRACTORS CLASSIFICATION

77

TYPESOF

CONTRACTS

88

LUMP SUM FIXEDLUMP SUM NOT FIXEDTURN KEY LUMP SUMUNIT PRICEGUARANTEED MAXIMUM

FIXED PRICE CONTRACTS

99

COST PLUS PERCENTAGE FEE

COST REIMBURSABLE FIXED FEE

COST REIMBURSABLE GUARANTEE MAXIMUM

COST PLUS GUARANTEE MAXIMUM

COST PLUS UPSET MAXIMUM

COST REIMBURSABLECONTRACTS

1010

ALL INCLUSIVE LABOR RATERATE INCLUDES: BASE PAY INSURANCE TAXES TOOLS SUPERVISION FIELD/HOME EXPENSES FEE

ACTUAL COST OF MATERIALS

TIME AND MATERIALSCONTRACTS

1111

Build Operate Build Operate TransferTransfer

1212

ESTABLISH PREPARE

PLAN OFACTION

SCREENINGREQUEST

CONTRACTING ACTIVITIES

FINALIZEBID SLATE

MGMT.APPROVAL

CONTRACTORSDEVELOP

RESPONSE

BID SLATEMGMT.

APPROVAL

1/2 1/2 3 2 1

PREPAREMGMT.

SUBMITTALMGMT.

REVIEWSUBMIT

1 1

1

25 2 4 2

PREPARECONTRACTDRAFT

REVISECONTRACTDRAFT

REVIEW CONTRACTDRAFT

PREPAREJOB EX.

MEETING

RELEASEBID

PACKAGE

JOBEX.

MEETING

1313

u COMMERCIAL PROPOSALu TECHNICAL PROPOSAL

BIDDING

1414

o GENERAL INSTRUCTIONSo GENERAL CONDITIONS

o SPECIAL CONDITIONS

o TECHNICAL SPECIFICATIONS

o DRAWINGS AND SCHEDULES

BID PACKAGE

1515

STIPULATED CONDITIONS

JOB SPECIFICATIONSJOB SPECIFICATIONS LEVEL OF QUALITYLEVEL OF QUALITY SAFETY REQUIREMENTSSAFETY REQUIREMENTS COST CONTROL SERVICESCOST CONTROL SERVICES REPORTING REQUIREMENTSREPORTING REQUIREMENTS LABOUR LAWSLABOUR LAWS

1616

INSTRUCTIONS TO BIDDERS

PROJECT DESCRIPTION, PARTY INVOLVED AND SCHEDULESPROJECT DESCRIPTION, PARTY INVOLVED AND SCHEDULES TYPE OF CONTRACT TO BE FOLLOWEDTYPE OF CONTRACT TO BE FOLLOWED DEADLINE FOR PROPOSAL SUBMISSIONDEADLINE FOR PROPOSAL SUBMISSION NUMBER OF COPIES BY OFFERNUMBER OF COPIES BY OFFER SEALED PROPOSAL AND ONE-TIME OPENING AFTER DUE DATESEALED PROPOSAL AND ONE-TIME OPENING AFTER DUE DATE PAYMENT ROUTINEPAYMENT ROUTINE PROCUREMENT NEEDSPROCUREMENT NEEDS GENERAL SAFETY REQUIREMENTSGENERAL SAFETY REQUIREMENTS INSPECTION REGULATIONSINSPECTION REGULATIONS BOND REQUIREMENTSBOND REQUIREMENTS

1717

GENERAL CONDITIONS

DEFINITION AND INTERPRETATIONDEFINITION AND INTERPRETATION CONTRACT DOCUMENTSCONTRACT DOCUMENTS RESPONSIBILITIESRESPONSIBILITIES DUTIESDUTIES PERFORMANCE BONDSPERFORMANCE BONDS SITE INSPECTION PROCEDURESSITE INSPECTION PROCEDURES PROJECT COST AND SCHEDULE CONTROLSPROJECT COST AND SCHEDULE CONTROLS SAFETY REGULATIONSSAFETY REGULATIONS COMPLIANCE WITH COMPANY BYLAWSCOMPLIANCE WITH COMPANY BYLAWS PATENT RIGHTS AND ROYALTIESPATENT RIGHTS AND ROYALTIES

1818

GENERAL CONDITIONS(CONTINUED)(CONTINUED)

HOLD OWNER HARMLESS CLAUSEHOLD OWNER HARMLESS CLAUSE CLEANLINESS REQUIREMENTSCLEANLINESS REQUIREMENTS LABOUR RELATIONS MATTERSLABOUR RELATIONS MATTERS QUANTITY ASSURANCE AND QUANTITY CONTROL QUANTITY ASSURANCE AND QUANTITY CONTROL

CLAUSESCLAUSES PROJECT MODIFICATIONS AND CHANGES PROCEDURESPROJECT MODIFICATIONS AND CHANGES PROCEDURES UNIT RATESUNIT RATES OWNER RIGHTSOWNER RIGHTS CONTRACTOR DEFAULT CLAUSESCONTRACTOR DEFAULT CLAUSES

1919

SPECIAL WORK HOURS

EXTENSIVE INSURANCE

IN-DEPTH RESPONSIBILITIES

EXTRA SAFETY

CONFIDENTIAL ISSUES

NATIONAL SECURITY

SPECIAL CONDITIONS

2020

WRITTEN DESCRIPTION

INTERFACE WITH DRAWINGS

INTERFACE WITH PROCUREMENT

WORK BREAKDOWN

ORGANIZATION BREAKDOWN

TECHNICAL SPECIFICATIONS

2121

BIDDING DOCUMENTS

CONTENT OF DOCUMENTSCONTENT OF DOCUMENTS

CLARIFICATION OF DOCUMENTSCLARIFICATION OF DOCUMENTS

AMENDMENT OF DOCUMENTSAMENDMENT OF DOCUMENTS

2222

PREPARATION OF BIDS

LANGUAGE OF BIDSLANGUAGE OF BIDS DOCUMENTS COMPRISING THE BIDDOCUMENTS COMPRISING THE BID BID PRICESBID PRICES CURRENCIES OF BID AND PAYMENTCURRENCIES OF BID AND PAYMENT BID VALIDITY AND SECURITYBID VALIDITY AND SECURITY ALTERNATIVE PROPOSALS BY BIDDERSALTERNATIVE PROPOSALS BY BIDDERS FORMAT AND SIGNING OF BIDFORMAT AND SIGNING OF BID

2323

SUBMISSION OF BIDS

SETTING AND MARKING BIDSSETTING AND MARKING BIDS

DEADLINE FOR SUBMISSION OF BIDSDEADLINE FOR SUBMISSION OF BIDS

MODIFICATION AND WITHDRAWAL OF BIDSMODIFICATION AND WITHDRAWAL OF BIDS

2424

BID OPENING & EVALUATION

BID OPENINGBID OPENING PROCESS TO BE CONFIDENTIALPROCESS TO BE CONFIDENTIAL CLARIFICATION OF BIDSCLARIFICATION OF BIDS DETERMINATION OF RESPONSIVENESSDETERMINATION OF RESPONSIVENESS CORRECTION OF ERRORSCORRECTION OF ERRORS CURRENCY FOR EVALUATIONCURRENCY FOR EVALUATION

2525

AWARD OF CONTRACT

AWARD CRITERIAAWARD CRITERIA NOTIFICATION OF AWARD AND SIGNING NOTIFICATION OF AWARD AND SIGNING

AGREEMENTAGREEMENT PERFORMANCE SECURITYPERFORMANCE SECURITY ADVANCE PAYMENT AND SECURITYADVANCE PAYMENT AND SECURITY

2626

DRAWINGS AND SCHEDULES BID DRAWINGSBID DRAWINGS AFC DRAWINGSAFC DRAWINGS AS-BUILT DRAWINGSAS-BUILT DRAWINGS BID ERRORSBID ERRORS BID OMISSIONSBID OMISSIONS ADDITIONS/DELETIONSADDITIONS/DELETIONS SCHEDULESSCHEDULES

2727

PLANNING AND SCHEDULING

LACK OF PROGRESSLACK OF PROGRESS PROJECT DESIGN CHANGESPROJECT DESIGN CHANGES MANPOWER ALLOCATIONMANPOWER ALLOCATION ORIGINAL SCHEDULE UPDATES AND REVISIONSORIGINAL SCHEDULE UPDATES AND REVISIONS REPORTING NEEDS FREQUENCYREPORTING NEEDS FREQUENCY MATERIAL PROCUREMENT INTERFACEMATERIAL PROCUREMENT INTERFACE TOOLS AND EQUIPMENT ALLOCATIONTOOLS AND EQUIPMENT ALLOCATION

2828

GENERAL PREQUALIFICATIONS

TYPE OF WORKTYPE OF WORK LOCATION OF WORKLOCATION OF WORK FINANCIAL INFORMATIONFINANCIAL INFORMATION EQUIPMENT ANALYSISEQUIPMENT ANALYSIS STAFFING LIST STAFFING LIST CURICULUM VITAECURICULUM VITAE PREVIOUS EXPERIENCEPREVIOUS EXPERIENCE