PRESENTATION ON

The Construction Contract

SUBMITTED TO: ENGR ASAD SULTAN

SUBMITTED BY: ABDUL REHMAN[BCTF18M028]

1
 What is a Construction Contract?

• An agreement between the owner and contractor

and is enforceable by law.
• Contractor is to perform a service for some
consideration or payment.
• The contract is comprised of many documents.
• The plans and specs are often referred to as the
contract documents and the contractor must
deliver the project in accordance with them.

2
 Contract Documents
• In a traditional project delivery method, the
contractor is typically not involved in the design or
production of the contract documents.
• Contract documents
consist of two major
components:
– Drawings (Plans) discuss
the quantity of the work
– Project Manual (Specs)
discuss the quality of the
work

3
 The Drawings
•The drawings are a graphical set of
directives prepared by the expressing the
wishes and desires of the owner.
•Today models have been reintroduced to
supplement drawings using 3D and 4D
(4D includes time/schedule) computer
modeling.
•Historically, drawings have been called
blueprints.
4
 Drawing Size
• Sets of drawings vary in size from a 3-4 sheets for a small house to
well over 100 sheets for large, magnificent structures.
• Note: A single drawing sheet is typically 24” x 36” to 36” x 48”, but
can be even larger; handling large sets of drawings can be very
difficult.
• One major advantage of CAD is the capability to manage drawing
electronically, morphing 40 pound sets of drawings into an electronic
file that can fit onto a light-weight CD-ROM.
• Organization of drawings helps the many drawing users quickly
navigate the drawings allowing them to find whatever information
they are looking for.
• Therefore, standard protocol has been established for organizing
drawing sets.
American National Standards 1In1stitute (ANSI)
Next Generation:
Reviewing drawings in
the cloud using software
like Blue beam. 5
 Organization of the Drawings
• The architect is in charge of creating the drawings,
but he/she does not work alone.
• Sub-consultants are hired, such as civil, mechanical,
electrical, and structural engineers, to produce civil,
mechanical, electrical, and structural plans.
• Drawing sets are therefore broken down into
sections that contain each discipline's drawings.
• Some projects may differ slightly, and even contain
additional sections but, following a cover sheet,
standard protocol call for these sections in this
order:
– Civil drawings
6
 Cover Sheet

• The cover sheet usually will provide general

information
about the project:
– Owner will be noted
– Geographical location
– Occupancy type
– Size
– Fire Resistance (I,II,III,IV,V)
– Sheet index
– Etc.
7
 Civil Drawings
• These drawings are usually prepared by
a civil engineer, and describes all worked
associated with the site.
• Site work includes such things as
grading, demolition, excavation, site
utilities, streets, curbs, and gutters and
their details.

8
 Architectural Drawings
• Prepared by the architect and constitute bulk of the
set.
• Describe overall aesthetics of the facility, including
project size, shape and appearance.
• Detailed information regarding dimensions,
Materials.
• Prepared by a structural engineer.
• Identify major components making up the structural
frame, such as columns, beams, and girders.
• Numbered S1, S2, S3, etc.

9
 Mechanical drawings
• Prepared by a mechanical engineer.
• Two major components: plumbing and heating, ventilating,
and air conditioning (HVAC).
• Plumbing drawings describe the installation of water, sewer,
and gas lines.
• HVAC drawings describe the installation of ductwork, air
handling units, compressors, and other climate control
equipment.
• Fire protection can also be included in the mechanical
drawings.
• Numbered P1, P2, P3, … M1, M2, M3, etc.

10
 Electrical Drawings

• Prepared by and electrical engineer.

• Includes all rough wiring, transformers, and panel
boxes.

11
 Types of Drawings

• To help the reader better understand

plans,
different drawings are incorporated each
describing more detail.
• The four basic types of drawings are
floor plans, elevations, sections, and
details.

12
 Plans
• Horizontal “cut” through building or bird’s eye
view.
• Several different plan views are incorporated
into the drawings, such as foundations plans,
floor plans, framing plans, and reflected
ceiling plans.
• Most plans are drawings to 1/4” scale, but
some large drawings are drawn to 1/8” scale

13
 Elevations
• Depict what the building would look
like when standing from the
outside and looking at the building.
• A separate elevation will be included
for all four sides of a building.
• The elevation is typically named for
the direction the exterior wall
faces.
14
 Sections
• Provide a deeper understanding of the
design at certain key spots of the
building.
• Represents a vertical “cut” through the
building from top to bottom.
• Often drawn in ½” scale, but sometimes
might be drawn in
¼” scale.
15
 Details
• Depict portions of a building
“blown up” in scale to help explain
finer
elements of design.
• They are drawn very large.
• Can explain such things as
connections, intersections, special
features, or tricky construction
details.
16
 Errors or Discrepancies in Drawings
• Discrepancies are very common in construction drawings.
• Often the drawings will give contradictory instructions.
• Clauses are generally written into the general conditions
addressing this problem.
• Typically the more-detailed drawing take precedence over
the more-general drawings.
– The book discusses and example where the foundation plans
indicate
a 24” wide 10” deep footing, but a section indicates 24” wide 8”
deep
footing, the section would take precedence and the footing would
need to be only 8” deep.
• Note: Specifications take precedence over the drawings
17
 The Project Manual
• It is the second part of the contract
documents: referred to as the specs.
• Provides written instruction to the builder.
• Typically contains four primary sections:
– Bidding documents
– General conditions
– Supplemental conditions
– Technical specifications

18
 Bidding Documents
• Advertisement or invitation to bid:
appears at the beginning of the project
manual and describes how the contractor
can get the work.
• Instruction to bidders: provides specific
instructions regarding the bidding process,
and includes:

19
 General Conditions
• The general conditions are one of the most
important documents associated with the
construction contract.
• Responsibilities of each of the parties are
clearly delineated and specific terms of the
contract are defined in this section.
• On page 101 of the text book is a list of
standard clauses often appear in the general
conditions.

20
 Supplemental Conditions
• These generally deal with conditions
that are project specific.
• They are considerations beyond the
scope of the standard general conditions
and serve as augmentation to the terms
laid out in the general conditions.

21
 Technical Specifications
• Make up the bulk of the project manual.
• Deal directly with construction, as
opposed to administrative aspects of the
other sections.
• Used in conjunction with the plans and
identify requirements related to labor,
materials,

22
 The Construction Specification Institute
(CSI)

• CSI was founded in 1948 and serves all

major disciplines involved in the design
and construction industry.
• Developed CSI Master Format which is
the standard format for construction
specifications.

23
 MaterFormat 1995
• The 1995 edition of Master Format has 16 divisions:
1. General Requirements
2. Site Requirements
3. Concrete
4. Masonry
5. Metals
6. Wood and Plastics
7. Thermal and Moisture Protection
8. Doors and Windows
9. Finishes
10. Specialties
11. Equipment
12. Furnishings
13. Special Construction
14. Conveying Systems
15. Mechanical (& Plumbing)
16. Electrical

24
 General Requirements Subgroup

• Div 00 - Procurement and Contracting

Requirements
• Div 01 – General Requirements.
• This divisions and subgroup pertain to
administrative aspects of the project.

25
 Contract Types
• The owner determines which type of contract the project will
follow.
• Four basic types of contracts:
– lump sum
– cost-plus-fee (a.k.a. Cost Plus or Time and Material)
– guaranteed maximum price (a.k.a. GMP)
– unit-price contracts
• All contain the standard sections described earlier
but differ in two fundamental ways:
– How the contractor’s price is quoted to the owner
– How risk is allocated to each of the parties

26
 Lump-Sum Contract
• Most common type of contract.
• Contractor agrees to complete the work
for a single, lump-sum fee.
• Contract assumes the plans and specs are
accurate. Errors or omissions in the contract
documents result in change orders.
• Change orders result in extra work and/or
extra time, both of which result in extra cost to
the owner.

27
 Cost-Plus-Fee Contract

• Also referred to as a time & materials

contract, the owner reimburses the
contractor for the labor and material costs
of the project plus a fixed fee or percentage
of the cost.
• Often used when scope is hard to define.
• Significant risks to the owner while it
guarantees the contractor a profit.

28
 Guaranteed Maximum Price Contract

• The guaranteed maximum price (GMP)

contract is a variation of the cost-plus-fee
contract, and is popular in design-build
delivery.
• Owner pays cost-plus-fee, but only up to
the GMP.
• Allows construction to start earlier since
a price can be guaranteed before the
plans are 100 % complete.
29
 Unit-Price Contract

• Used when work to be performed

cannot be accurately measured
ahead of time.
• Common for heavy civil and
highway type jobs.

30
31