CONSTRUCTION METHODS AND PROJECT MANAGEMENT

Contracts and Specifications

PA – 1 (Homework)

1. What is a construction contract and specification?

A construction contract and specification is a document that outlines the information

and requirements needed for a construction project. It is a legal document which must be
agreed upon by all parties involved in the projects.

The contract defines the terms of work and scope for a project, while the specifications
provided may help decrease expenses, wasted time, and disagreements.

The agreement should have multiple sections of clauses that define the project's scope,
terms, and conditions, such as:

• What work should be done?

• When will the construction begin, and when will it end?

• Who will be involved in the construction process?

• What are the labour and material costs?

• How will the parties communicate with one another?

• What are the procedures for modifying the scope of work or other aspects of the
contract?

• How will disagreements be resolved?

The more details presented in the agreement, the higher the chance that the work will be
properly performed during construction.

Example of Contract and Specifications:

2. What is the importance of construction contract and specification?

A construction contract and specifications safeguard everyone engaged in a construction

project's legal and financial interests. Both the owner of the construction firm and the property
owner should begin a construction project with one.

Construction contracts and specifications is important because:

• Without a written contract and specifications, any arguments or miscommunication about

the project's work, timetable, lost or late payments, or other problems might escalate into
a significant legal struggle. The property owner and the contractor may incur costs due to
this.
• Having clear specifications makes coordinating and communicating more manageable for
all project participants. The time spent on requests for substitutes or explanations about
supplies or installation will be significantly reduced. A clear set of specifications may lead
to more accurate bids, which means fewer cost overruns.

3. What is the difference between lump sum and unit cost contracts?

A lump sum contract, also known as a fixed-price contract, is utilized when the timeline and
the scope of the job are clear, reviewed, and agreed upon. A lump sum contract streamlines
contract management through the entry of a single value for each item.

In comparison, specific amounts are covered under unit pricing contracts. For things that are
unitized, prices are predetermined. Owners may confirm that a fair price is being charged for work
via unit pricing contracts. It is simpler for contractors to agree with the owner to adjust scope
changes since the unit price can be changed up or down through a "change order".

4. What is a Bill of Quantities (BOQ)?

The bill of quantities (abbreviated 'BOQ' or 'BQ') is a document created by the cost consultant
(typically a quantity surveyor) that gives project-specific measured quantities of the items of work
defined by the drawings and specifications in the tender paperwork.

It refers to a list of the specific pay items of the Works under this Contract, including their
identification numbers, descriptions, units of measurement, and quantities, as well as their
corresponding unit and total bid costs.

Example of BOQ:
5. What is an As-Built Plan?

As-Built plans are drawings or models that accurately present the existing dimensions and
conditions of a building. In contrast to a design drawing depicting the desired or suggested layout
of the building, "As built" plans refer to the project's engineering plans as actually constructed and
completed under this contract, considering any changes and alterations as approved and
implemented. This is a crucial difference since a built structure rarely exactly matches the original
design drawings.

6. It is a document issued by the Procuring Entity, certifying that the Works have been
completed, including correction of all Defects, as of the end of the Contract Time with
approved time extensions, in accordance with the provisions of this Contract.

A Certificate of Completion is a document that, when signed by the Grantee, signifies

approval of the non-housing project as constructed. It may be provided by an engineer, or in the
absence of one, a construction contractor.

Example Certificate of Completion:

7. It is a document issued by the Procuring Entity, certifying that the Works have been
completed, including correction of all Defects, as of the end of the Defects Liability
Period, in accordance with the provisions of this Contract, and that, therefore, the
completed Works are accepted by the Procuring Entity.

The Certificate of Acceptance shall be issued by the Head of the Implementing Office after
the one-year Warranty Period and after all defects and failures, if any, shall have been repaired by
the Contractor to the satisfaction of the Project Engineer.

Example of Certificate of Acceptance:

8. What does NOA and NTP mean?

Notice of Award is a document given to the winning bidder/contractor, notifying them that
they are the ones picked to carry out the construction project. In contrast, a Notice to Proceed is a
document given to inform the contractor that they can now start with the construction process.

Example of Notice of Award:

Example of Notice to Proceed:

References:

Rodriguez, J. (2020, December 13). What is a construction contract agreement? LiveAbout.

Retrieved December 2022, from https://www.liveabout.com/contract-agreements-844530

Benarroche, A. (2022, November 8). What are construction contract specifications? Levelset.
Retrieved December 2022, from https://www.levelset.com/blog/construction-specifications/

https://www.vsu.edu.ph/images/PhilGEPS2014/INFRA-14-02/Contract%20-%20Isabel.pdf

Difference between lump sum and unit price. Support Home. (2019, February 5). Retrieved
December 2022, from
https://support.projectmates.com/support/solutions/articles/44000612825-what-is-the-
difference-between-lump-sum-and-unit-price-contracts-

Scribd. (2022, August). Bill of quantities boq. Scribd. Retrieved December 2022, from
https://www.scribd.com/document/458302507/Bill-of-quantities-BOQ

What are as-builts plans & Drawings. PPMCO. (2022, November 22). Retrieved December 2022,
from https://ppmco.net/what-is-an-as-built-plan/

https://marikina.gov.ph/webmarikina/image/downloadable-forms/Certificate-of-
Completion_building_original.pdf

Certificate of Construction Completion Definition. Law Insider. (n.d.). Retrieved December 2022,
from https://www.lawinsider.com/dictionary/certificate-of-construction-completion

https://dpwh.gov.ph/dpwh/sites/default/files/issuances/DO_053_S1994.pdf

https://dingalan.gov.ph/?page_id=6869#:~:text=Dear%20Sir%2C,100%20ONLY%20(P%20349
%2C088.73).

https://kydlgweb.ky.gov/Documents/CDBG_handbook/KY%20CDBG_6-
10_Sample%20Notice%20to%20Proceed.pdf