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    Contract Award or Bid acceptance Letter

 

A contract award letter is sent to the provider whose solution, in terms of value, best addresses the requirements defined in the request for proposal (RFP). Contract Award Letter or Bid acceptance Letter is one of documents in Construction Bids procedure.

Contract Award or Bid acceptance Letter


A contract award letter is sent to the provider whose solution, in terms of value, best addresses the requirements defined in the request for proposal (RFP).


 
 | Author: Civil Engineer | Comments (0)
 Views: 1572 | Read more...
    Introduction to FIDIC

 

In the contract for international engineering projects, the function of Conditions of Contract is of greatest importance providing the rights, obligation and responsibility for the parties concerned in the Contract execution.

During the past half century, the International Federation of Consulting Engineers (FIDIC) has devoted itself to the compilation of management documents for all kinds of projects, among which the FIDIC Conditions of Contract are of the highest influence and are the most popular application.
 
 | Author: Civil Engineer | Comments (0)
 Views: 177 | Read more...
    The Target Cost Contract

 

One of the alternatives to the conventional construction contract which has many disavantages is the Target Cost Contract.

1. The Target Cost Contract Alternative

The Target Cost Contract


Introduction

Two major weaknesses of simple cost-reimbursable contracts are the lack of knowledge of financial commitment by the Employer and lack of incentive for the Contractor to control costs. Both may make it difficult for publicly accountable Employers to demonstrate that they are able to control their financial commitment. In addition, in sate organizations, there is an attitude that cost-reimbursable contracts are a last resort.
 
 | Author: Civil Engineer | Comments (0)
 Views: 163 | Read more...
    Construction Contract

 

The term Contract used in the Construction management can be defined as: “An agreement entered into by two parties under the terms of which one party agrees to perform a specific job for which the other party agrees to pay.

Definition of a construction contract

The term Contract used in the Construction management can be defined as: “An agreement entered into by two parties under the terms of which one party agrees to perform a specific job for which the other party agrees to pay. Contract documents attached to and/or stated in the agreement form integral parts of the contract”.

Essentials of Contract validity

* The parties to the contract must be competent, and legally capable of playing their intended part. The law can not enforce the agreement on someone who has not the legal capacity to enter into an agreement. This could be due to infancy, lunacy, drunkenness, or being restricted from entering into such agreement by a prior in date agreement or scope of authority.

* The subject matter of the contract must be lawful and definite in respect of requirements and duties of each party. For example a contract violating municipal regulation is not binding and is void in courts. Also uncertainty in respect of the what is wanted may result in the contract being not enforceable by law.
 
 | Author: Civil Engineer | Comments (0)
 Views: 157 | Read more...
    Conventional Construction Contracts

 

The conventional ad-measurement contract is one in which the Employer employs Consultants to design The Works and to supervise a Contractor in the performance of the Work.

1.1 Introduction to Conventional Construction Contract

The conventional ad-measurement contract is one in which the Employer employs Consultants to design The Works and to supervise a Contractor in the performance of the Work. The Contractor is selected on the basis of his suitability for the type of work and the competitiveness of his price relative to other Contractors. He enters into a contract with the Employer undertaking to perform the Works in accordance with the terms and conditions of the contract for an agreed price.

The Engineer, who is usually one of the Consultant’s team, acts as the Employer’s expert; as the Employer’s Manager (with delegated responsibilities); and as initial Arbiter between Employer and Contractor.

The conventional procedure goes along a path that requires development of sufficient information for Contractors to tender in competition against each other in respect to the whole scope of works that is the subject of the contract.
 
 | Author: Civil Engineer | Comments (0)
 Views: 161 | Read more...
    What is a Contractor?

 

Most commonly, the term ‘contractor‘ is used to describe an expert in the construction industry who hires skilled and unskilled workers to actually construct a financed project. A contractor must be licensed by an examining board before he or she can bid on the project.

This bid is based on the estimated cost of the building materials, the wages of subcontractors and laborers and the contractor’s fee for coordinating the project.

Although a contractor’s main concern is hiring qualified subcontractors (specialized craftsmen paid by the contractor), he or she may also perform some of the construction work as well. Most contractors develop good working relationships with other construction specialists, so they often hire the same specialized companies and workers for each contracted project. The contractor is ultimately responsible for the quality of the work performed by subcontractors, so it doesn’t always pay to hire unknown entities to cut down on expenses.
 
 | Author: Civil Engineer | Comments (0)
 Views: 1579 | Read more...

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