WEEK 4

LEARNING OUTCOMES (CO1-PO1)

•Understand the contract document

•Understand how to prepare the bill of quantities

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What is contract document?

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General principle
• Each party must give something in return of
what is gained from the other party.
• It must be of some value, but need not be
adequate.
• In what forms? Thing, service, payment of
money, performance of work etc.

Consideration
Consideration
 Contract Document

 Can be defined as a legally binding

agreement between parties.
 In civil engineering works, the contract
document is normally an agreement to
have work done in return for a specified
sum of money.
 The client commissioning the work is
legally known as the ‘employer’ while the
party carrying out the work is legally
known as the ‘contractor’.

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Who is involve in the contract?
• The client commissioning the work is legally
known as the ‘employer’.
• The party carrying out the work is legally
known as the ‘contractor’.

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 General condition of
Form of contract
contract

Form of tender
Specification

Contract drawings Bill of quantities

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 It is a formal agreement between client and
contractor for the execution of the work accordance
with the other contract document.

Form of contract

Generally covered by the ‘Form of Agreement @ Contract’

incorporated in the General Condition of Contract for the use
in connection with works of civil engineering construction.

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 storage available Generally define the
to the contractor terms under which the
work is to be undertaken The relationship between
the client or employer
sequence of
construction

The engineer
access to General condition and the contractor
the work of contract

The powers
completion of the engineer
date

The terms
maintenance of payment

method of variation and

measurement valuation of variation
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 It describes in
detail the nature
quality and workmanship
details of any special responsibility required in the work
to be borne by the contractor

Specification

method to be
any detail which not covered in the adopted in the
General Condition of Contract execution of the work

borne – carried by the thing specified

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 Contract Drawings

These indicate the location, scope

and design complexity of the works
and show graphically the full extent of
what is required to be constructed.

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 A list of items giving brief
identifying descriptions

Bill of Quantity

unit of measurement and

estimated quantities of the
work comprised in a contract.

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Source: KAMALALDIN ABD. LATIF (2010) JKR. MALAYSIA

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 Form of Tender

It is a formal offer to execute the contract

works in accordance with the various contract
documents for the contract price or tender sum
and the contract period which the contractor is to
complete the works.
A performance bond is a surety bond issued by
an insurance company or a bank to guarantee
satisfactory completion of a project by a
contractor. Or retention money (5%)

For example, a contractor may cause a performance bond to be issued in

favor of a client for whom the contractor is constructing a building. If the
contractor fails to construct the building according to the specifications
laid out by the contract (most often due to the bankruptcy of the
contractor), the client is guaranteed compensation for any monetary loss
up to the amount of the performance bond.

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