CONTRACT

DOCUMENT
 contract document

o The contract documentation is all documents which, when combined, form

the basis of the contract, including all pre-tender, tender and contractual
documentation.
o A quote can also form part of the contract documentation.
o The contract documentation gives sufficient information, to be able to
complete the building works and meet the service delivery requirements
 the documents that make up the contract
documentation include:
o Before the work is given out on contract a bond is prepared, the following
document shall be attached to the bond which should be duly endorsed and
sealed.
o Title page
o Having the name of work, contract bond number etc.
o Index page
o Having the contents of the agreement with reference page.
o Tender notice
o Giving brief description of the work, estimated cost of work, date and
time of the tender, amount of earnest money and security money, time
of completion etc.
o Contract
o The binding document or agreement between you and the owner to
carry out the building work.
o The type of contract you use will depend on the size and complexity of
the project.
o Contract conditions
o Defines the legal rights and obligations, or the rules by which each party
(the architect and the owner) must comply
o Special contract conditions
o As the name suggests, special conditions that are an extension of the
general conditions and apply specifically to the project
o Bill of quantities
o A list of materials, parts and labor (and their costs) that are included in
the contract.
o The bill of quantities is helpful in valuing variations and assists in the
preparation of progress claims
o Drawings
o The architectural and structural plans of the building
o Specifications
o Set out the technical requirements of the work.
o They describe the project and requirements for materials and
workmanship, and add clarity to the drawings
o Other documents
o Including technical and pricing schedules.
o Special condition
o Depending on the nature of work, regarding taxes, royalties, accidents
etc.
o It is recommended that both the architect and the owner endorse complete
sets of all contractual documents, and that all documents are kept intact.
o One must also ensure that all contracts, including related plans,
specifications and directions, are kept for seven years from the date the
documents were put into writing.
 terms used in contract documents
o Beneficial Occupancy:
o The condition after Substantial Completion but prior to Final
Completion of the Project at which time the Project, or portion thereof,
is sufficiently complete and systems operational such that the Owner
could, after obtaining necessary approvals and certificates, occupy and
utilize the space for its intended use.
o Guarantees and warranties applicable to that portion of the Work begin
on the date the Owner accepts the Project, or a portion thereof, for such
Beneficial Occupancy, unless otherwise specified in the Supplemental
General Conditions or by separate agreement.
o Building Permit:
o The term building permit is any and all permits required to comply with
local and state building codes.
o Change Order:
o A document issued on or after the effective date of the Contract
Between Owner and Contractor which is agreed to by the Contractor
and approved by the Owner, and which authorizes an addition, deletion
or revision in the Work, including any adjustment in the Contract Price
and/or the Contract Completion Date.
o A Change Order once signed by all parties, with the exception of a
Unilateral Change Order that is only signed by the Owner, is
incorporated into and becomes a part of the Contract
o Contract Completion Date:
o The date by which the Work must be substantially complete.
o The Contract Completion Date is customarily established in the Notice
To Proceed, based on the Time for Completion.
o In some instances, however, the Contract contains a mandatory Contract
Completion Date, which shall be stated in the Invitation for Bid.
o Contract Price:
o The total compensation payable to the Contractor for performing the
Work, that is subjected to modification by change order.
o Defective:
o An adjective which, when modifying the word Work, refers to Work
that is unsatisfactory, faulty, deficient, does not conform to the Contract
Documents or does not meet the requirements of inspections, standards,
tests or approvals required by the Contract Documents, or Work that has
been damaged prior to the A/E’s recommendation of final payment
(unless responsibility for the protection thereof has been assumed by
Owner at Substantial Completion or Beneficial Occupancy)
o Final Completion Date:
o The date of the Owner’s acceptance of the Work from the Contractor
upon confirmation from the Architect/Engineer and the Contractor that
the Work is totally complete in accordance with the bye-laws
o Field Order:
o A written order which clarifies or explains the plans or specifications, or any
portion or detail thereof, without changing the design, the Contract Price,
the Time for Completion or the Contract Completion Date.
o Float:
o The excess time included in a construction schedule to accommodate such
items as inclement weather and associated delays, equipment failures, and
other such unscheduled events.
o It is the contingency time associated with a path or chain of activities and
represents the amount of time by which the early finish date of an activity
may be delayed without impacting the critical path and delaying the overall
completion of the Project.
o Any difference in time between the Contractor’s approved early completion
date and the Contract Completion Date shall be considered a part of the
Project float.
o Float, Free:
o The time (in days) by which an activity may be delayed or lengthened
without impacting upon the start day of any activity following in the
chain.
o Float, Total:
o The difference (in days) between the maximum time available within
which to perform an activity and the duration of an activity.
o It represents the time by which an activity may be delayed or lengthened
without impacting the Time for Completion or the Contract Completion
Date.
o Specifications:
o That part of the Contract Documents containing the written administrative
requirements and the technical descriptions of materials, equipment,
construction systems, standards, and workmanship which describe the
proposed Work in sufficient detail and provide sufficient information for the
Building Official to determine code compliance and for the Contractor to
perform the Work.
o Submittals:
o All shop, fabrication, setting and installation drawings, diagrams,
illustrations, schedules, samples, and other data required by the Contract
Documents which are specifically prepared by or for the Contractor to
illustrate some portion of the Work and all illustrations, brochures, standard
schedules, performance charts, instructions, diagrams and other information
prepared by a Supplier and submitted by the Contractor to illustrate material
or equipment conformance of some portion of the Work with the
requirements of the Contract Documents
o Substantial Completion:
o The condition when the Owner agrees that the Work, or a specific portion
thereof, is sufficiently complete, in accordance with the Contract
Documents, so that it can be utilized by the Owner for the purposes for
which it was intended.
o The Owner at its sole discretion may, after obtaining the necessary
approvals and certificates, take Beneficial Occupancy at this time or choose
to wait to occupy until after Final Completion is achieved.
o Time for Completion:
o The number of consecutive calendar days following the issuance of the
Notice to Proceed which the Contractor has to substantially complete all
Work required by the Contract.
o When the Notice to Proceed is issued, it states a Contract Completion Date,
which has been set by the Owner based on the Time for Completion.
o Underground Facilities:
o All pipelines, conduits, ducts, cables, wires, manholes, vaults, tanks,
tunnels or other such facilities or attachments, and any encasements
containing such facilities which are or have been installed underground
to furnish any of the following services or materials: electricity, gases,
steam, liquid petroleum products, telephone or other communications,
cable television, sewage and drainage removal, traffic or other control
systems or water.
o Unilateral Change Order:
o A Change Order from the Owner directing the Contractor to proceed
with work within the scope of the contract which may be undefined or
for which there is no agreement on the cost or time associated with the
work.
conditions of contract
o Rates for complete work including materials labor, transport
and all other agreements necessary.
o Contractor shall have to complete the work by specified date
and have to maintain a monthly progress.
o The cost of materials issued to the contractor shall be
detected from the first running bill.
o Work shall have to be done strictly in accordance with
specification, drawings and orders.
o Contract may be terminated for bad work, unsatisfactory
progress etc. and part or full security money may be
fortified.
o Extra items which are provided in the contract, shall be paid
as per current schedule of rates.
o All taxes ,royalties etc, shall have to be paid by the
contractor which are included in the rates.
o Labour camps shall have to be maintained and other
amenities to labour shall have to be provided.
o Contractors responsibility is to observe the rules, regulations
to the department and to complete the work according to the
plans designs and instructions and in time and not abandon
the work in the middle.
o Departments requirements is to see that the work is done as
per plans, specifications, designs etc. and progress of work is
maintained.