CONTRACT ADMINISTRATION | Module 527/23/MO4 | ZNQF Level 5

STUDY NOTES

CONTRACT ADMINISTRATION
Module 527/23/MO4 | ZNQF Level 5 | 14 Credits | 140 Hours
National Diploma in Construction Engineering

MODULE OVERVIEW
Module Code 527/23/MO4
Module Title Contract Administration
ZNQF Level 5
Credits 14
Duration 140 Hours
Pre-requisite N/A
Based on Unit Standard: Contract Administration (Construction Engineering
Technician Qualification)

PURPOSE
This module describes the skills, knowledge and attitudes required by a Construction
Engineering Technician to administer contracts effectively. It covers interpreting working
drawings, marking building positions, and generating analysis reports. Contract
administration ensures work is monitored, disputes are resolved through proper arbitration,
and construction laws are adhered to.
Access is open to all target groups including unemployed youth, women and men wishing to
establish or improve SMEs in the construction industry.

LEARNING OUTCOMES AT A GLANCE

Identify the rights and responsibilities of the parties to a building construction

LO1
contract

Analyse the fundamental principles of an effective procedure for administering

LO2
construction contracts

Demonstrate a general knowledge of the mandatory contractual procedures for

LO3
administering the total project from inception to completion

LO1: Rights & Responsibilities of Contract Parties

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CONTRACT ADMINISTRATION | Module 527/23/MO4 | ZNQF Level 5

Assessment Criteria
• 1.1 Explain the roles and responsibilities of the contractor, subcontractor and the client
• 1.2 Describe the characteristics of a valid contract
• 1.3 Outline the essential documents of a contract

1.1 Roles & Responsibilities of Contract Parties

Elements of Management
• Define management and describe its related elements
• Explain the functions of management and management structures
• Explain the concepts of authority, responsibility and accountability

Structure & Operation of a Construction Organisation

• Explain the role played by the organisational chart/structure
• Explain the communication links within the structure

Conditions of Contract
• Discuss the various types of civil and building contracts
• Discuss the general conditions of contract in accordance with:
◦ Z.I.E. General Conditions of Contract (latest edition)
◦ I.C.E. Conditions of Contract
• Develop an appreciation of documents and references used by firms:
◦ Obtaining work and tendering
◦ Contract/project documents
◦ Project drawings
◦ Reference sources on site

1.2 Characteristics of a Valid Contract

Construction Planning & Contract Validity
• Explain the elements of a void contract
• Describe the process of litigation and its causes
• Outline dispute resolution mechanisms and causes
• Explain the procedure of arbitration and the personnel required to preside
• Identify potential sources of disputes in a contract
• Discuss the importance of planning and controlling to avoid contract termination

Elements of Planning & Control Parties Involved in Planning

• Defining scope and objectives • Client / Employer

• Scheduling and resource allocation • Main Contractor
• Cost control and monitoring • Subcontractors
• Progress reporting • Clerk of Works / Site Supervisor

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CONTRACT ADMINISTRATION | Module 527/23/MO4 | ZNQF Level 5

Programming Techniques to Know

Technique Notes
Bar Charts (Gantt) Visual tool showing tasks over time with start/finish dates. Most common in
construction scheduling.
Line of Balance Used for repetitive work (e.g. multi-storey buildings). Shows trade gangs
progressing through floors.
Network Analysis Critical Path Method - identifies the longest sequence of dependent tasks
(CPM) determining project duration.
Precedence Network Shows logical relationships between activities with nodes representing
Diagram tasks.
PERT Programme Evaluation and Review Technique - uses probabilistic time
estimates (optimistic, most likely, pessimistic).
Critical Path The sequence of project milestones with zero float; delays here extend the
overall project.

ASSESSMENT TASKS - LO1

1. Written/oral assessment on interpreting working drawings for domestic and industrial construction,
including: analysing drawings, verifying hidden details and generating analysis reports.
2. Practical assessment: site visit, interpret working drawings, trenching and positioning of openings,
focusing on identifying rights and responsibilities of contract parties.

LO2: Fundamental Principles of Contract Administration

Assessment Criteria
• 2.1 Draw a site layout
• 2.2 Draw a Gantt chart
• 2.3 Identify personnel who are party to a contract
• 2.4 Compile lists of materials and equipment for specified tasks/stages of construction

2.1 Site Layout Planning

A well-planned site layout is critical for efficiency, safety, and cost control. Key considerations include:

Factor Considerations
Accessibility Entry/exit routes for vehicles, pedestrians and emergency services.
Traffic Circulation Delivery routes, turning circles, and flow patterns to prevent congestion.
Crane Positioning Crane radius, height restrictions, and overlap considerations.
Material Storage Apply FIFO (First In, First Out) principle to minimise double handling and cost.
Site Security Perimeter fencing, access control and surveillance to prevent pilfering and
trespassing.

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CONTRACT ADMINISTRATION | Module 527/23/MO4 | ZNQF Level 5

Lighting Adequate lighting for safety and security throughout the site.
Site Accommodation Location of site offices, welfare facilities, toilets, and storage units.

KEY CONCEPT: FIFO

First In, First Out (FIFO) means materials delivered first should be used first. Proper FIFO reduces
double handling (moving materials more than once), which wastes labour time and money. Poor
material arrangement is a common cause of cost overruns on site.

2.2 Gantt Chart / Programming Techniques

A Gantt chart (bar chart) is the most widely used scheduling tool in construction. When drawing or
evaluating one:
• List all activities (work packages) in sequence
• Estimate durations for each activity
• Determine logical dependencies between activities
• Estimate START and FINISH dates for each activity
• Identify the Critical Path (activities with zero float)
Additional programming techniques also assessed: Line of Balance, Network Analysis (CPM),
Precedence Network Diagram, and PERT - see table in LO1.

2.3 Personnel Party to a Contract

Know the roles and responsibilities of each party:

Party Role / Responsibility

Client / Employer Commissions the project, provides funding, approves designs, and sets
requirements. Signs the main contract.
Main Contractor Executes the works as per contract documents. Manages resources,
subcontractors, programme and safety.
Subcontractors Carry out specialist or trade packages (e.g. electrical, plumbing). Contracted to
the main contractor.
Clerk of Works Resident inspector appointed by the client/architect to supervise quality and
compliance on site.

2.4 Materials, Plant & Equipment Management

Human Resources
• Recruitment and selection of operatives
• Induction and career development of subordinates
• Motivation of sub-ordinates
• Leadership relating to work team performance
• Handling grievances and disputes

Procurement & Use of Materials, Plant and Equipment

• Purchasing procedures (ordering, delivery, receiving)

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CONTRACT ADMINISTRATION | Module 527/23/MO4 | ZNQF Level 5

• Calculating quantities of materials, plant and equipment (including plant selection)

• Maintenance of plant and equipment
• Minimising waste on site
• Site security measures

ASSESSMENT TASKS - LO2

1. Written/oral assessment: interpreting working drawings, determining scope of works, interpreting
contract law, tort law, dispute resolution and arbitration.
2. Practical assessment: site visit, interpret drawings, carry out dispute resolution and enforce
construction laws.

LO3: Contractual Procedures — Inception to Completion

Assessment Criteria
• 3.1 Compile the requisite conditions of contract
• 3.2 Prepare relevant certificates during the course of the project
• 3.3 Identify laws used in contract administration

3.1 Conditions of Contract

Know the major contract forms used in Zimbabwe and internationally:

Contract Type Description / Key Points

Z.I.E. Conditions Zimbabwe Institution of Engineers General Conditions of Contract - the
primary contract standard for Zimbabwe construction projects.
I.C.E. Conditions Institution of Civil Engineers (UK) Conditions - widely referenced for civil
engineering works.
Civil Contracts Used for infrastructure and civil engineering projects (roads, dams, bridges).
Building Contracts Used for construction of buildings - domestic, commercial, industrial.

Essential Contract Documents & References

• Obtaining work and tendering documents
• Contract/project documents (Bills of Quantities, Specifications, Conditions)
• Project drawings (architectural, structural, services)
• Reference sources kept on site

3.2 Certificates During the Project

Certificate Type Description

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CONTRACT ADMINISTRATION | Module 527/23/MO4 | ZNQF Level 5

Interim Certificate Issued periodically (usually monthly) by the architect/engineer to authorise

progress payments to the contractor.
Insurance Certificate Proof that the required insurance policies are in place (e.g. all-risk, public
liability, employer's liability).
Surety Bond A guarantee from a third party (surety) that the contractor will fulfil
obligations. Protects the client.
Performance Bond Guarantees the contractor completes the work. Surety pays out if
contractor defaults.
Retention Bond Replaces cash retention held from interim payments; provides security for
defects rectification.
Final Certificate Issued at project completion after the defects liability period, certifying
final payment and handover.
Certificate of Occupation Confirms the building is fit for occupation and complies with building
regulations.

NJPC 2000 - KEY CLAUSES TO KNOW

The National Joint Practice Committee (NJPC) 2000 conditions address:
• Ownership of unfixed materials on site - materials paid for by the client become the client's
property even before being fixed.
• Ownership of materials off-site - materials stored off-site may become the client's property
once certified and paid for.

3.3 Laws Used in Contract Administration

Type of Law Definition & Relevance to Construction

Civil Law Governs disputes between private parties. Most construction contract disputes
fall under civil law.
Contract Law Governs the formation, performance and breach of contracts. Central to all
construction agreements.
Criminal Law Concerns offences against the state. Relevant where fraud, theft or safety
violations occur on site.
Law of Tort Covers civil wrongs causing harm (e.g. negligence, nuisance). Important for
claims arising from defective work or site accidents.

Key Contract Terms

Term Meaning
Defects Liability Period A set period after practical completion during which the contractor must
return and fix any defects that appear at no extra cost to the client.
Typically 6-12 months.
Fluctuation Provisions in a contract allowing the contract sum to be adjusted to
account for changes in labour and material costs over the contract
period.
Retention Money A percentage (usually 5-10%) withheld from interim payments as
security for the contractor completing the works and rectifying defects.
Released in stages.

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CONTRACT ADMINISTRATION | Module 527/23/MO4 | ZNQF Level 5

Risk Management Insurance Codes

Code Meaning / Context
ISR Industrial Special Risks - broad property insurance covering industrial and commercial
projects against a wide range of perils.
NR Noted Risk - a risk that has been identified and specifically noted on an insurance
policy, often as an exclusion or special condition.
SRI Site Risk Insurance / Special Risk Indemnity - insurance covering specific risks
associated with a construction site.
SRZ Specific Risk Zimbabwe - a risk classification or insurance designation specific to the
Zimbabwean insurance regulatory context.

ASSESSMENT TASKS - LO3

1. Written/oral assessment on interpreting working drawings, explaining procedures for administering
contracts, and generating analysis reports.
2. Practical assessment: site visit, interpret working drawings, trenching and position openings -
demonstrating knowledge of contractual procedures from inception to completion.

QUICK REVISION REFERENCE

Tools & Equipment Required for Assessment

Both written and practical assessments require familiarity with these site tools:

Measuring & Setting Out Levelling Excavation & Fixing

• Measuring tape • Dumpy level • Club hammer

• Builders line • Spirit level • Claw hammer
• Builders square • Plumb bob • Saws
• Pegs • Pick & shovel
• Spade

EXAM CHEAT SHEET

LO1: Know the roles of Client, Contractor, Subcontractor. Know elements of a void contract. Know
ZIE and ICE conditions. Understand arbitration vs litigation.
LO2: Be able to draw a site layout addressing all 7 factors. Draw a Gantt chart with start/finish dates
and critical path. Know all 5 programming techniques (Bar Chart, LOB, CPM, PND, PERT).
LO3: Know the 4 types of law (Civil, Contract, Criminal, Tort). Know the 7 certificate types. Define
Defects Liability Period, Fluctuation, Retention. Know ISR, NR, SRI, SRZ codes.

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