TENDERING, BIDDING & CONTRACT MANAGEMENT III powai.ppt

TENDERING, BIDDING TENDERING, BIDDING & CONTRACT & CONTRACT

MANAGEMENTMANAGEMENTBY ANAND GOSAVIBY ANAND GOSAVI

CONTRACTCONTRACT MANAGEMENT MANAGEMENT CYCLECYCLE

PROJECT FORMULATIONPROJECT FORMULATION PRE TENDERING ACTIVITIESPRE TENDERING ACTIVITIES AWARD OF WORKAWARD OF WORK EXECUTION OF WORKSEXECUTION OF WORKS COMPLETION & HANDING OVERCOMPLETION & HANDING OVER DEFECT LIABILITYDEFECT LIABILITY

PRETENDERING ACTIVITIESPRETENDERING ACTIVITIES

PROJECT FORMULATIONPROJECT FORMULATION APPOINMENT OF CONSULTANTS/ ARCHITECTSAPPOINMENT OF CONSULTANTS/ ARCHITECTS AGREEMENT FOR CONSULTANTSAGREEMENT FOR CONSULTANTS FINALISATION OF SPECIFICATIONS ,SCOPE OF FINALISATION OF SPECIFICATIONS ,SCOPE OF

WORKWORK BILL OF QUANTITIESBILL OF QUANTITIES PREQUALIFICATION OF CONTRACTORSPREQUALIFICATION OF CONTRACTORS PREQUALIFICATION DOCUMENT PREQUALIFICATION DOCUMENT EVALUATION OF PRE QUALIFICATION DOCUMENTEVALUATION OF PRE QUALIFICATION DOCUMENT FINLISATION & ENPANALMENT OF CONTRACTORSFINLISATION & ENPANALMENT OF CONTRACTORS

TYPES OF CONTRACSTYPES OF CONTRACS

PERCENTAGE RATE CONTRACTSPERCENTAGE RATE CONTRACTS ITEM RATE CONTRACTSITEM RATE CONTRACTS LUMP SUM CONTRACTSLUMP SUM CONTRACTS LUMP SUM TURNKEYCONTRACTS/ LUMP SUM TURNKEYCONTRACTS/

DESIGN BUILTDESIGN BUILT BOTBOT BOLTBOLT

ContentsContents

Percentage Rate/Item ratePercentage Rate/Item rate Tender noticeTender notice Detailed Tender noticeDetailed Tender notice Methodology of tender submission Methodology of tender submission General conditions of contractGeneral conditions of contract Special conditions of contractSpecial conditions of contract Agreement B1 form , clauses of contractAgreement B1 form , clauses of contract Bill of quanitiesBill of quanities SpecificationsSpecifications Drawings Drawings

% Rate contract: % Rate contract: Detail BOQ, Rates .Detail BOQ, Rates . Payments on basis of quantities executed.Payments on basis of quantities executed. Changes in drgs can be accommodated .Changes in drgs can be accommodated . Qty survey &payments is a hectic , time consuming Qty survey &payments is a hectic , time consuming

job.job. Variations have limitations.Variations have limitations. Easy initially but not suitable for mass housing Easy initially but not suitable for mass housing

projects.projects.

Item Rate Contract: Item Rate Contract: AsAs aboveabove RatesRates areare givengiven byby contractorcontractor, , variationvariation nono problemproblem RatesRates toto bebe balancedbalanced..

Lump sum/Design BuiltLump sum/Design Built

VOLUME I: - Conditions of ContractVOLUME I: - Conditions of Contract Tender noticeTender notice Detailed Tender NoticeDetailed Tender Notice Methodology of submissionMethodology of submission General conditions of contractsGeneral conditions of contracts Additional conditionsAdditional conditions Agreement ‘C’ forms, conditional clauses of contract.Agreement ‘C’ forms, conditional clauses of contract. Various proformaeVarious proformae VOLUME II: - Technical BriefsVOLUME II: - Technical Briefs SiteSite A) Architectural planningA) Architectural planning B) Architectural Aspects.B) Architectural Aspects. Structural Design CriteriaStructural Design Criteria On site / Off site design criteriaOn site / Off site design criteria General SpecificationsGeneral Specifications Scope of workScope of work MonitoringMonitoring Additional SpecificationsAdditional Specifications Detailed Drawings.Detailed Drawings. VOLUME III: - Financial offerVOLUME III: - Financial offer

C-Lump-sum: -C-Lump-sum: - In this type of contract the contractors are required to give fixed rate / fixed In this type of contract the contractors are required to give fixed rate / fixed

sum for execution of work complete in all respects i.e. according to drawings, sum for execution of work complete in all respects i.e. according to drawings, designs, specifications supplied to them with tender within specified time. designs, specifications supplied to them with tender within specified time. (Departmental schedule of rates for various items of works are also provided (Departmental schedule of rates for various items of works are also provided which regulates the payment of contractor in respect of items of works which regulates the payment of contractor in respect of items of works added / deleted.)added / deleted.)

In this type of contract the detailed planning, design & drawings for work In this type of contract the detailed planning, design & drawings for work along with the specifications should be ready & should be final.along with the specifications should be ready & should be final.

As the rate is paid on sqft basis the exact idea of work to be carried out along As the rate is paid on sqft basis the exact idea of work to be carried out along with the foundation requirements & site details should be ready before the with the foundation requirements & site details should be ready before the tender document is prepared.tender document is prepared.

Extensive detailing is required in tender document for technical specifications Extensive detailing is required in tender document for technical specifications & drawings.& drawings.

The schedule of payments detailing the part payment for each item of work, The schedule of payments detailing the part payment for each item of work, Portion executed is required to be prepared which cannot be standardized & Portion executed is required to be prepared which cannot be standardized & differs from work to work.differs from work to work.

Since the payments are not made on measurements of quantities the changes Since the payments are not made on measurements of quantities the changes in the drawings become very difficult, as their quantum cannot be judged in the drawings become very difficult, as their quantum cannot be judged readily.readily.

Since the payments are to be made on built up area basis detailed definition Since the payments are to be made on built up area basis detailed definition of built up area should be given. As to what shall be payable, as BUA for FSI of built up area should be given. As to what shall be payable, as BUA for FSI purposes often allows various concessions, which are required to be purposes often allows various concessions, which are required to be incorporated in payable, built up area like, machine room, lift well, pump incorporated in payable, built up area like, machine room, lift well, pump house etc.house etc.

In this type of contract the important thing is to judge exact quantum of the In this type of contract the important thing is to judge exact quantum of the work done by the contractor at a particular stage for payment of interim work done by the contractor at a particular stage for payment of interim running bills. In absence of proper judgment the case of excess payments running bills. In absence of proper judgment the case of excess payments have occurred in past. The reason may be casual approach in working out have occurred in past. The reason may be casual approach in working out quantum of work as no detailed measurements are records .It is therefore quantum of work as no detailed measurements are records .It is therefore necessary to work out the system for calculation for quantum of work & get it necessary to work out the system for calculation for quantum of work & get it approved from competent authority.approved from competent authority.

Lump sum Turnkey / Design & Built form: -Lump sum Turnkey / Design & Built form: - This type of the contract form is generally used mass housing This type of the contract form is generally used mass housing

projects, where the contractor apart from the execution of work projects, where the contractor apart from the execution of work also plan & design the work, i.e. client do not plan or design. also plan & design the work, i.e. client do not plan or design. This job is also done by the agency. However in this type of This job is also done by the agency. However in this type of contract client must be able to detail out our needs specifically contract client must be able to detail out our needs specifically in regards-in regards-

Architectural Planning Brief. 2) Architectural Aspects Architectural Planning Brief. 2) Architectural Aspects Requirements. 3) Structural Design Criteria 4) On / Off Site Requirements. 3) Structural Design Criteria 4) On / Off Site Infrastructure Design Criteria 5) General Specifications 6) Scope Infrastructure Design Criteria 5) General Specifications 6) Scope of work.of work.

In this type of contract generally the bids are invited from In this type of contract generally the bids are invited from selective agencies, which are prequalified for such types of selective agencies, which are prequalified for such types of projectsprojects

The bids are invited in three envelopes: -The bids are invited in three envelopes: - DocumentsDocuments Technical offer.Technical offer. Financial offer.Financial offer. The evaluation of technical Bid is Herculean task. The marks are The evaluation of technical Bid is Herculean task. The marks are

given for each stage / requirements detailed out in Bid & the given for each stage / requirements detailed out in Bid & the financial offers of only those who are found technically suitable financial offers of only those who are found technically suitable are opened. This type of contract eliminates the need of are opened. This type of contract eliminates the need of appointment of architect for planning portion.appointment of architect for planning portion.

The type of contract is easy to monitor since planning & The type of contract is easy to monitor since planning & requisite permissions are the responsibilities of the contractor & requisite permissions are the responsibilities of the contractor & are well defined.are well defined.

AWARD OF WORKSAWARD OF WORKS

SELECTING FORM & TYPE OF CONTRACTSELECTING FORM & TYPE OF CONTRACT NOTICE INVITING TENDERSNOTICE INVITING TENDERS FINALISATION OF TENDER DOCUMENTFINALISATION OF TENDER DOCUMENT PREBID MEETINGSPREBID MEETINGS TENDER OFFER WORKINGTENDER OFFER WORKING TENDER SUBMISSION &RECIEPTTENDER SUBMISSION &RECIEPT VALIDITY OF TENDERVALIDITY OF TENDER EVALUATION OF BIDSEVALUATION OF BIDS FINAL SELECTION OF CONTRACTORFINAL SELECTION OF CONTRACTOR

CONTRACT MANAGEMENT & CONTRACT MANAGEMENT & MONITORING OF MONITORING OF

CONTRACTCONTRACTSS MANAGING & ADMINISTERING CONTRACTS MANAGING & ADMINISTERING CONTRACTS THE THE EMPLOYEREMPLOYER, THE , THE ENGINEERENGINEER & THE & THE CONTRACTORCONTRACTOR PERFORMANCE SECURITYPERFORMANCE SECURITY VARIATIONSVARIATIONS AND AND DEVIATIONSDEVIATIONS TIME TIME FOR COMPLETION, FOR COMPLETION, DELAYDELAY IN COMPLETION IN COMPLETION PENULTY, PENULTY, LIQUIDETEDLIQUIDETED DAMAGES DAMAGES QUALITYQUALITY OF WORK, OF WORK, DEFECTS DEFECTS & MAINTENANCE& MAINTENANCE MEASUREMENTMEASUREMENT, , VALUATIONVALUATION & &PAYMENTPAYMENT InsuranceInsurance HANDING OVER SITEHANDING OVER SITE BREACH OF CONTRACTBREACH OF CONTRACT FORCE MAJUAREFORCE MAJUARE SUBCONTRACTORSSUBCONTRACTORS EscalationEscalation CLAIMSCLAIMS DISPUTES DISPUTES ARBITRATIONARBITRATION

LAW OF CONTRACTSLAW OF CONTRACTS

Importance of the Importance of the LawLaw of Contract of Contract Nature of ContractNature of Contract

Definition of Important Definition of Important TermsTerms Different Kinds of AgreementsDifferent Kinds of Agreements Kinds of ContractsKinds of Contracts

Agreement and Contract Distinguished Agreement and Contract Distinguished

Essential Elements of a Valid ContractEssential Elements of a Valid Contract An Agreement Becomes a ContractAn Agreement Becomes a Contract

Void and Void able ContractsVoid and Void able Contracts

FIDIC CONDITIONS OF FIDIC CONDITIONS OF CONTRACTCONTRACT

Conditions of Contract for Conditions of Contract for ConstructionConstruction for Building and Engineering Works for Building and Engineering Works

Nominated Nominated SubcontractorSubcontractor StaffStaff and Labour and Labour Plant, Plant, MaterialsMaterials and Workmanship and Workmanship

CommencementCommencement, Delays & Supervisions, Delays & SupervisionsTest Test onon Completion CompletionEmployer’s Employer’s TakingTaking Over Over

Defects LiabilityDefects LiabilityMeasurement and EvaluationMeasurement and EvaluationVariation and AdjustmentVariation and AdjustmentContract Price and PaymentContract Price and Payment

Termination by EmployerTermination by Employer Suspension & Termination by ContractorSuspension & Termination by Contractor

Risk & ResponsibilityRisk & ResponsibilityInsuranceInsurance

Force MajeureForce Majeure Claim, Disputes & ArbitrationClaim, Disputes & Arbitration

CONSTRUCTION CONSTRUCTION CLAIMSCLAIMS

IntroductionIntroduction Preparation and Presentation of Claims Preparation and Presentation of Claims Preparation of the Claim Preparation of the Claim Basis of ClaimBasis of Claim

Importance of Facts Importance of Facts Supporting Evidence Supporting Evidence Drafting of a Claim Drafting of a Claim IntroductionIntroductionGround of ClaimGround of ClaimSubstantiation of ClaimSubstantiation of Claim

Proving DamagesProving Damages Negotiating SettlementNegotiating Settlement Preparing before Start of NegotiationPreparing before Start of Negotiation

Timing for NegotiationTiming for NegotiationStrategy for NegotiationStrategy for NegotiationCommunication and Bargaining PositionCommunication and Bargaining Position

Alternative Disputes Resolution Methods Alternative Disputes Resolution Methods

ARBITRATION PROCEDUREARBITRATION PROCEDURE

IntroductionIntroduction Appointment of ArbitratorAppointment of Arbitrator Conduct of Arbitration after AppointmentConduct of Arbitration after Appointment Evidence and their Importance Evidence and their Importance Kind of Evidence Kind of Evidence Admissibility of Evidence Admissibility of Evidence Desirability of Reasoned Award Desirability of Reasoned Award Award of Interest by Arbitrator & Law RelatingAward of Interest by Arbitrator & Law Relating to Interest to Interest Making, Publishing and Implementation of AwardMaking, Publishing and Implementation of Award

CONTRACTUAL RISK MANAGEMENT CONTRACTUAL RISK MANAGEMENT IN CONSTRUCTION PROJECTSIN CONSTRUCTION PROJECTS

The Parties to the RiskThe Parties to the Risk The Employer (Client)The Employer (Client) The ContractorThe Contractor Consultant (the engineer)Consultant (the engineer) Delay in Drawing and Instructions Delay in Drawing and Instructions

by Clientby Client Errors in Client's Data/requirementErrors in Client's Data/requirement

Right of Access to the SiteRight of Access to the SiteClient's Claims Against ContractorClient's Claims Against Contractor

Setting Out ErrorsSetting Out ErrorsUnforeseeable Physical ConditionsUnforeseeable Physical Conditions

Completion TestCompletion Test

Rejection and Remedial WorkRejection and Remedial WorkDelay Caused by AuthoritiesDelay Caused by AuthoritiesRate of Progress of WorksRate of Progress of WorksDelay DamagesDelay DamagesTaking Over Parts of WorksTaking Over Parts of Works

Handling Over on CompletionHandling Over on CompletionExtension of Defects Notification Extension of Defects Notification PeriodPeriodFailure to Remedy DetectsFailure to Remedy DetectsComments on (xiv and xv)Comments on (xiv and xv)Delayed Tests and RetestingDelayed Tests and RetestingValue Engineering BenefitsValue Engineering Benefits

PricePrice Variation Procedure Variation ProcedureCharges in LegislationCharges in LegislationDelayed PaymentDelayed PaymentSuspension of WorkSuspension of WorkForce MajeureForce MajeureIndemnitiesIndemnities