B3 CE / 3 2019152006

SUMANDE, CEDRIX V.

I. Define the following:

1. Contract – are legal agreements between a business and an engineering company detailing
services promised, and payment for those services. It involves the following in a contract:

• Scope of work which is lays out what is expected of the contracted engineer. To be
completely clear, the company proposing the work should outline each task that is part of
the project and provide deadlines. They should also be clear about their vision for the
project and the end goal.
• Period of performance it gives the expected time frame for the project and a deadline for
total completion
• Payment is the outline of payments that will be received, as well as instructions for
invoicing
• Termination it involves when there is a convenience issues that prevent project progress or
completion or natural disaster would occur.
• Lump-Sum Contracts is a type of contract that requires the contractor to agree to perform
the specified work outlined in the contract for one fixed price.
• Measurement Contract it includes Bill of Quantities that can be found in project estimation.

2. Contract Price – it is the price contract, which is paid to a contractor upon completion, is used
any time a contract exists. Because a contract is an agreement to complete a certain type and
amount of work, the contract price is fully paid to a contractor when they have completed the job
which has been agreed upon.

3. Contractor – sometimes an organization or a person, hired by the client to carry out the work
that is required for the completion of a project. Contractors don’t always have the expertise or the
trades that are needed for completing all construction work by themselves. They are also in charge
of appointing subcontractors who would be able to complete some parts of the project.
4. Force majeure – it refers to unpredictable events beyond anyone’s reasonable control, which
hinder one or more of the parties involved from fulfilling the agreed terms in the contract. They
usually lead to delays and postponement, and in some cases even termination of the contract.

5. Bid / Tender – it is an invitation to bid for a project or accept a formal offer such as a takeover
bid. Tendering usually refers to the process whereby governments and financial institutions invite
bids for large projects that must be submitted within a finite deadline. The term also refers to the
process whereby shareholders submit their shapes or securities in response to takeover offer.

II. What are the essential elements of a contract?

1. Contractual Offer – encompasses the duties and responsibilities of each party but must also
demonstrate an exchange of value. That value can be money, or it can relate to a desired action or
outcome.

2. Contract Acceptance - Once the offer is presented, the offeree can decide whether to accept or
reject the proposal.

3. Signatory Awareness - They must recognize the contract exists and are freely agreeing to be bound
by that document’s obligations.

4. Contractual Consideration - consideration includes the value that has been agreed upon, whether
that be an action or an item.

5. Contractual Capacity - In simplest terms, an individual cannot sign away their rights.

6. Contract Legality - all contracts are subject to the laws of the jurisdiction in which they operate,
including any applicable federal, state, and local laws and ordinances.
III. What are the requirements of good specification?

A great specification not only accurately describes the work to be done, the materials and
products to be used – by product name and manufacturer identification number or reference – and
the acceptable standards of workmanship, it also provides enough detail for the main contractor or
subtrades to complete the construction without having to guess what is required. This is where the
quality of the information and its delivery become critical. Like any good technical document, a
specification should be clear, concise, correct and complete. It should present information in an
easy to follow and logical sequence, free from repetition or irrelevant information.

IV. How this pandemic situation affects contract?

In this pandemic, signing the contract has many things to do, from detailing documents and
agreeing to individual terms of a project. On regular days, the signing of a contract takes a long to
be decided upon because the clients would investigate and consult their private institution if the
project was worth it or not. In the contract process, the clients must agree to the terms and
conditions and have classification to ensure the project would finish on time and how much they
cost on completing the project. In terms of a contract, the signing must be formal and must align
with the legality of the documents that one person would hold upon completing the project. Due
to the pandemic that we have limited interaction, the contract signing is done by sending e-mail.
The meeting would be held virtually by zoom, google meet, or other media platforms. This brought
to an easy transaction for the clients and time-efficient with presenting documents even if there
was an easy way or even a long time to complete a contract signing. The most important is to have
a decent transaction with the clients, but we must abide by the law according to what we are
presenting to our clients to promote professionalism.