CENG 4231 – Contract, Specification and Quantity Survey

CHAPETR I
General Introduction
Chapter Outline
1.1 Construction project
1.2 Construction industry
1.3 The main players in CI
1.4 Resources for CI
1.5 Stage in construction
1.6 Construction Project Management Process
1.7 Project life cycle
1.1 Construction project
A construction is a process of constructing something by man for one purpose or
another. It may be a road, bridge, a dam, a dwelling place, an airport, a commercial
building, etc.
In planning for the various types of construction, the methods of procuring
professional service, awarding construction contracts, and financing the
constructed facility can be quite different.
The broad spectrum of constructed facilities may be classified into different
categories.
Cont.…
A. Residential Housing Construction:

 Includes single-family houses, multi-family dwellings, and high rise apartments.

B. Institutional and Commercial Building Construction:

 Encompasses a great variety of project types and sizes, such as schools and universities,
medical clinics and hospitals, recreational facilities and sport stadium.

C. Specialized Industrial construction:

 Involves very large scale projects with a high degree of technological complexity, such as
oil refineries, steel mills, chemical processing plants and nuclear plants.
 1.2 Construction Industry
 Construction Industry is an industry which is involved in the
planning, execution and evaluation of all types of civil works.

 CI Categories:
Transport and Communication
Road, Railway, Airway, and Telecommunication related physical works.
Water and Energy Works
Hydropower development, transmission lines, wind power,
irrigation projects.
 Cont.…
Buildings and Other Physical Infrastructures

Construction Industry is among the leading industry in producing

employment and contributes to the overall national development.

It is the most important enabler for social, economic and political

development of countries.
 Nature of Construction Industry:

Requires big capital investment thus is highly affected by the economy of the
nation.

Construction is a team output and requires motivated and skilled workers.

Uniqueness of Construction Industry:

Fragmented Industry

Long production cycle

Transient organization nature

Unpredictable work load

 Subject to Environmental Impact

 1.3 The main players in the construction industry
Depending on the size, complexity, and purpose of a particular construction project, the
project team may include:

A client or an owner: Individuals, government, real estate developers etc.

Financial institutions or other investors that provide the funding Local planning and
code authorities.

 Consultants or Licensed architects and engineers who provide design work and
prepare construction documents.

 Contractors who provide construction services and install systems

Marketing or leasing agents

 Facility managers who are responsible for operating the facility.

 A. The Client:
The client is the initiator and owner of the project. Clients may be classified
as Public sector clients and private sector clients.

Some of the obligations of client are:-

Appointing of the engineer to administer the contract

Provision of the site

Provision of information, permits, and approvals

Providing funds and making payments in accordance with the contract

Participation in consultations with the engineer to agree matters on claims or

conflicts between parties.
Cont.….
B. The Consultant/Engineer:

The main role of the consultant is to interpret the client’s project requirement into a specific design.

The consultant transfers the wish of the owner into realizable form and makes the study, design and
possibly the supervision.

Some of the obligations of client are:-

As the employers agent:

• Administration of the contract – dealing with the procedures, provision of information and
interpretations, issuance of variations, approval of samples, etc.

• Cost accountancy and payments

Cont.….
• As a supervisor: The engineer must ensure that the work is being performed to fulfill
the contract documents.

• As a certifier: The engineer is required to certify or approve the payments that should
be paid by the employer to the contractor. Those payments should be made periodically,
mostly on monthly basis, and should depend on the quantity of works finished by the
contractor.

• As a determiner: The engineer must act as a mediator to help the parties towards
agreement in issues such as claims for reimbursement of costs or extension of time
Cont.….
C. The Contractor:
These are groups established mainly as commercial companies, contract to construct development projects.
The contractor is the one who performs the work.

1.Execution and completion of the works and remedying

2.Provision of:-

 Labor, materials, plant, and equipment needed

 Preparation of progress report

 Setting out of the works

 Measurement and/or assisting the engineer to do so

 Records of his personnel and equipment

 Sample of materials specified

 Testing and re-testing

Cont.….
Responsibility of contractors:

 Carry out a full site investigation prior to submission of tender,

 Submit tender,

Plan, Program, Control the construction process

Notify the consultant about delays, discrepancies,

Effect all payments to his employees, suppliers, subcontractors,

Rectify all defects on completion of works, etc.

Provide post occupancy repair & maintenance if required.

Cont.….
Banks: Banks provide the working capital contractors need to build the project. Banks
also provide bonds for bid and performance.
Suppliers: The quality of a construction project is very dependent on the quality of the
suppliers used by individual contractors.
Permitting Agencies: represent the interests of public safety.

They administer publicly funded construction projects, and they ensure private
construction projects comply with zoning laws and building codes.

• Public: The public is impacted by every construction activity.

Impacts are both good and bad.

 1.4 Resource for the construction industry
For most of the construction projects, the resources to look into are the
following;

Human Resources/Labor or Workmen

These include professional, skilled, semi skilled and unskilled laborers. Human resources can
be understood in two values: Capacity and Capability.

 Capacity - refers to the quantity of labor for the scope defined.

 Capability - refers to knowledge, technology know-how and skill as per the demands of
the scopes ability.
 Cont.…
For most of the construction projects, the resources to look into are the following;

Financial Resources / Fund

Usually funds are available from among Governmental institution, Private

institutions and Donors in the form of loan or assistance.

Information Resources

Physical Resources such as Materials, Equipment and Other Assets

Services and Management.

Cont.…
1.5 Stages in Construction
1.Inception and feasibility
 At this stage the owner puts his visions and wishes and with this as the
starting point, the various groups (professionals) try to conceptualize
the project and prepare a conceptual design.
 At this stage the owner will heirs a consultant to formally design and
develop the concept into a practicable project.
Cont.…
1.5 Stages in Construction

2.Planning and Design stage

 Planning is a function of devising the cause for future with a vision, formulated for the

future state of the organization or project.

 At this stage the consultant plans and designs the project based on the owner’s requirement

and the possible constraints.

Cont.…
1.5 Stages in Construction

3.Tendering stage:

• At this stage contractors are invited to offer their best technical and financial
offers as per the conditions and specifications depicted in the contract documents.
The bids are evaluated based on:

 Compliance with the contractual terms and conditions,

 Correction of bid prices,

 Detailed analysis.
Cont.…
1.5 Stages in Construction

4.Award of Contract

• After the negotiations have been successful, the contract will be awarded to the
successful contractor. The formal Steps might include:

 Write a letter of acceptance

 Write the letter to proceed with the works

 Performance bond: 10% a guarantee that he will do the job as per agreed
Cont.…
1.5 Stages in Construction

5.Construction Stage

 Here is where the actual execution of the works takes place as per
scheduled.

6.Commissioning and Acceptance

 Commissioning is a process whereby the contractor makes sure that all installed
mechanical or electrical parts are operational.

 During commissioning, therefore all such parts are run in the presence of the client or
his representative as per the conditions agreed.
Cont.…
1.5 Stages in Construction

7.Acceptance has to stages:

a.Provisional acceptance:

 In this acceptance, the client accepts the completed works on provisional

basis for a period one year.

 During this period all payments except the retention money are paid.
 Cont.…
1.5 Stages in Construction

b. Final acceptance:

 At this stage the owner completely accepts the works executed and the
retention money is released to the contractor.

 But if the client found out some construction default during this period, he
can oblige the contractor to work out that default or the client himself
worked it out from the retention money.

 The contractor is assumed to have completed his contractual obligation from

1.6 Construction Project Management Process
Project management is the Planning, Organizing, Monitoring and Controlling of all
aspects of a project, to achieve the project’s objective.
 1.7 Project Life Cycle
The project life cycle of a construction project may be viewed as a process through which a project is

implemented from cradle to grave.

24 Gemeda