MODULE 5
[Link] Raghavan E.S. [Link](Digital), FIIA, AIIID, ABLF
Associate Professor,
School of Architecture (V-SPARC)
• Understanding contracts
• Articles of Agreement
• Terms and Conditions, Bills of Quantities Specifications
• Special conditions
• New trends in project formulation
• Different types of execution( BOT, DBOT, etc.),
• Process of execution-expression of interest
• Request for proposal
• Mode of bid evaluation
• Award of work.
Understanding Contracts:
The contract consists of the
General Conditions, the
Supplementary Conditions, the
Specifications, the Drawings,
the Bill of Quantities, the
Tender, the Letter of
Acceptance, and the Contract
Agreement.
Contract document
A contract document is the most important in connection with carrying out the
building construction.
• It is necessary to have a contract in some form or other.
• The forms of contract in Government and Private will be different.
• It differs as per the conditions and requirements of each client.
Contents of contract documents
• Tender Notice or Letter of Invitation
• Copy of Work Order to the Contractor
• Letter of Offer (sent by the contractor / financial bid)
• Articles of Agreement
• General Conditions of Contract
• Appendix (forms & certificates)
• Specifications of Work and Material
• Bill of Quantities
• Contract Drawings
Tender Notice or Letter of Invitation- Tender means an offer to carry out work, that is prescribed or to supply or
purchase goods of prefixed specifications at a price to be quoted to the tenderer.
Letter of offer - This letter is drafted by the architect’s office. The contractor is supposed to read it carefully and sign it as
a mark of total agreement to it. The contractor shall make no change in the text of the letter.
Articles of agreement
• It is a written memorandum of the terms of an agreement between two parties – The Client and the Contractor.
• It is a common practice for persons to enter into articles of agreement before starting construction at the site.
• This article will be part of the whole contract signed between the Client (or Architect) and the Contractor.
• This Article will be considered as a preparatory to the execution of a formal action, whereby it is stipulated that one
of the parties shall convey to the other certain expectations and standards - draft an agreement to set mutual
responsibilities and scope of association.
Payment terms Detail the total agreed amount of the contract and stages of completion or milestone. Will emphasize the
workload and penalties for delays in the completion of the project. The penalty could range from 2% to 10% depending
upon the construction stage and time it has taken.
Schedule of Payment
• This section would contain details about the percentage of payment to be paid to the contractor on approval of their
running bills or stage completion bills.
• This section of the contract document would also contain the amount of payment that would be released and the
percentage of the amount that would be withheld as a security deposit or retention amount.
• The running bill would be checked and approved by the architect who would be the in-charge of the project and site.
Hence the role of the architect should be mentioned in the contract and tender documents.
Project Time Line and Milestone Chart
• The contractor’s scope of work would be aligned with the project management
schedule or architect’s construction management time frame.
• The contractor would abide by the schedule and specifications mentioned in the
drawings, BoQ (Bill of Quantity), and contract document.
• This section would also contain PERT (program (or Project) Evaluation and Review
Technique) and CPM (Critical Path Method) charts.
Bill of Quantities
• The bill of quantities (BoQ) is a document prepared by the Quantity Surveyor that provides project-specific
measured quantities of the items of work identified by the drawings and specifications in the tender
documentation.
• The quantities may be measured in number, length, area, volume, weight, or time.
• Preparing a bill of quantities requires that the design is complete and a specification has been prepared.
• This information can assist with tender negotiations.
• The priced bill of quantities will also assist with the agreement of the contract sum with the successful
tender. Provide a schedule of rates assisting with the valuation of variations. Provide a basis for the valuation of
interim payments. Provide a basis for the preparation of the final account.
• The bill of quantities is issued to tenderers for them to prepare a price for carrying out the works.
• The bill of quantities assists tenderers in the calculation of construction costs for their tender, and, as it means all
tendering contractors will be pricing the same quantities (rather than taking off quantities from the drawings and
specifications themselves), it also provides a fair and accurate system for tendering.
• The contractor tenders against the bill of quantities, stating their price for each item.
• This priced bill of quantities constitutes the tenderer's offer.
• As the offer is built up of prescribed items, it is possible to compare both the overall price and individual items directly
with other tender offers, allowing a detailed assessment of which aspects of a tender may offer good or poor value.
NEW TRENDS IN PROJECT EXECUTION
• Construction Management: The construction manager is responsible for coordinating the work of multiple
prime construction contracts and for overseeing quality control.
• Construction management services may be handled by the architect of record or as a professional service by
another architect.
• For architects seeking a way to control the construction process to maintain their professional relationships
with their clients, providing construction management (CM) as an architectural service is a viable project
delivery method.
• For architects seeking a way to control the construction process to maintain their professional relationships
with their clients, providing construction management (CM) as an architectural service is a viable project
delivery method.
Why a Client May Need These Services
• To have single-point accountability
• To maximize return on capital investment
• To save time and money
• To increase project quality Knowledge and Skills
Required
• Strong administrative and management skills
• Knowledge of business and contracts 56
• Knowledge of construction materials and
methods
• Field supervisory experience
• Good communication and negotiation skills
• Ability to prepare detailed cost estimates
• Ability to develop detailed schedules
Representative Process Tasks
• Review of the project program
• Advising project architect on pertinent project issues
• Preparing time schedules
• Preparing budgets and cost estimates
• Oversee bidding and preparation of construction contracts
• Supervising the construction phase of work
• Overseeing project closeout
• Coordinating the work of project participants
PERT : Project Evaluation Review Technique
• A PERT chart is a graphic representation of a project’s schedule, showing the sequence of tasks, which
tasks can be performed simultaneously, and the critical path of tasks that must be completed on time for the
project to meet its completion deadline.
• The chart can be constructed with various attributes, such as earliest and latest start dates for each task,
earliest and latest finish dates for each task, and slack time between tasks.
• A PERT chart can document an entire project or a key phase of a project. The chart allows a team to avoid
unrealistic timetables and schedule expectations, to help identify and shorten tasks that are bottlenecks, and
to focus attention on the most critical tasks.
When to use it:
Because it is primarily a project-management tools, a PERT chart is most useful for planning and tracking entire
projects or for scheduling and tracking the implementation phase of a planning or improvement effort.
1. Identify the first task that must be completed. Place the appropriate card at the extreme left of the working
surface.
2. Identify any other tasks that can be started simultaneously with task #1. Align these tasks either above or
below task #1 on the working surface.
3. Identify the next task that must be completed. Select a task that must wait to begin until task #1(or a task
that starts simultaneously with task #1) is completed.
4. Place the appropriate card to the right of the card showing the preceding task. Identify any other tasks that
can be started simultaneously with the task
1. #2. Align these tasks either above or below task #2 on the working surface.
2. Continue this process until all component tasks are sequenced. Identify task durations. Using the knowledge
of team members, reach a consensus on the most likely amount of time each task will require for completion.
Duration time is usually considered to be the elapsed time for the task, rather than the actual number of
hours/days spent doing the work.
3. Document this duration time on the appropriate task cards. Construct the PERT chart.
4. Number each task, draw connecting arrows, and add task characteristics such as duration, anticipated start
date, and anticipated end date. Determine the critical path.
5. The project’s critical path includes those tasks that must be started or completed on time to avoid delays to
the total project. Critical paths are typically displayed in red.
Method 1: Activity on the node
In this diagram, the activities are written inside the boxes and are linked by arrows. These arrows may or may
not have the number of days to complete the task written on them.
Method 2: Activity on the arrow
In this diagram, the actual activities to be carried out are written on the arrows. The activities are set out
numerically which allows for sub-events to happen in between.
Gaps are left between the numbers in the nodes (circles) to allow the sub-events to fit in. On large building sites,
these numbers may count in 20s 50s or even 100s, whilst on smaller jobs these could be actual days within the
construction program.
The more common method in use is method 2 - activity on the arrow. Each of the numbered nodes (the circles)
represents an activity that has been completed while each arrow represents an activity that has taken place.