OWNER CONTRACTOR CONSTRUCTION AGREEMENT FORM

Parties’ details
 Employer’s name and address
 Contractor’s name and address

Works
Works required by employer

 Two story reinforced residential building (30’0”x70’0’x24’0’)

Identification of site

 Pan Chan Kyaung Street, Yangon

Procurement Method
 Traditional procurement method

Type of contract
 Minor works building contract with contractor’s design (Lumpsum contract)

Framework of Agreement
Traditional Procurement
↓

Works contain an element of

design by the Contractor
↓
A Bill of Quantities is required
↓

Works are of a complex nature

or involve a high degree of
building services or another
specialist works
↓
subcontractor(s) required
↓

Use Minor Works Building Contract

with contractor’s design
Contractor’s Designed portion

Bill Of Quantities

No Particular Qty Unit Rate Amount Total

  Material          

1 Cement 1504.48 Bag 5,800 8,725,962  

2 River Sand 80.51 Sud 15,000 1,207,637  

3 River Shingle Aggregate 50.68 Sud 65,000 3,293,880  

4 Brick 61552 No 100 6,155,172  

5 Broken Stone 14.08 Sud 20,000 281,663  

6 5 plywood ( 8’x4’ ) 181.32 Shts 20,000 3,626,317  

7 Julgle wood 20.46 Ton 650,000 13,300,092  

8 Nails and spikes 103.22 Viss 3,500 361,262  

9 MS Rod          

  18 mmØ 0.07 Ton 600,000 40,589  

  16 mmØ 11.75 Ton 600,000 7,049,067  

  12 mmØ 0.45 Ton 600,000 267,931  

  10 mmØ 4.39 Ton 600,000 2,634,918  

  6mmØ 2.31 Ton 600,000 1,383,128  

10 18G Binding Wire 379.19 Lb 972 368,655  

11 X-Met ( 100’ ) 73.15 Coil 1,666 121,875  

12 Pyinkadoe 2.79 Ton 1,300,000 3,625,043  

13 8”x1” PKD 0.29 Ton 1,300,000 375,315  

14 Doors & Windows Leaf          

  D – 1(Fully Panel Teak Door) 272.00 Sft 7,000 1,904,000  

  D – 2(Fully Panel Teak Door) 130.00 Sft 7,000 910,000  

  GP (Fix Glazed) 72.00 Sft 7,000 504,000  

  W – 1 (Fully Glazed) 528.00 Sft 6,500 3,432,000  

  W – 2 (Fully Glazed) 66.00 Sft 6,500 429,000  

  F – 1 (Fully Glazed) 36.00 Sft 6,500 234,000  

15 Sliding Bolt 0.00 Nos 12,000 0  

16 Door Lock 0.00 Nos 15,000 0  

17 4” Butt Hinges 0.00 Nos 500 0  

18 Hooks & Eyes 0.00 Nos 450 0  

19 Emulsion Paint 192.43 Gal 6,000 1,154,586  

20 Ready mixed Paint 8.72 Gal 15,000 130,862  

21 Paint Roller 48.11 No 1,500 72,162  

22 Sand Paper 96.22 Doz 4,200 404,105  

23 Putty Trowel 48.11 No 500 24,054  

24 Putty 144.79 Gal 6,000 868,731  

25 2-2”x2”x1/4” Angle Iron Roof Truss 3723.32 Rft 1,500 5,584,980  

26 4”x2” C-Channel Purlin 1008.00 Rft 1,200 1,209,600  

27 Purlin Cleat 0.00 No 250 0  

28 Purlin Nut 0.00 No 50 0  

29 Gusset Plate 0.00 No 2,400 0  

30 4-Angle Sheet -0.4mm 1254.00 Rft 1,300 1,630,200  

31 Roofing Screw 1019.36 No 50 50,968  

32 Ridge Cover 150.83 Rft 1,000 150,830  

33 Wall Tile 8”x12" 1673.09 Shts 400 669,236  

34 Floor Tile 8"x8" 687.79 Shts 450 309,504  

35 Floor Tile 12"x12" 3273.09 Shts 2,500 8,182,731  

36 White Cement 147.10 Lb 300 44,130  

 37 Bamboo 304.79 No 1,200 365,750  

38 Coinyarm 21.77 Viss 4,000 87,083  

39 (8'x4') Gypsum Board Ceiling Work. 2100.00 Sft 1,200 2,520,000  

Plastic Painting Work for Gypsum

40 2100.00 Sft 900 1,890,000  
Board Ceiling.

41 Iron Grill Hand Rail Work. 249.75 Sft 5,500 1,373,625  

42 Laminate Flooring Work. 2600.00 Sft 1,200 3,120,000  

Material Cost 90,074,642

  Labor          

1 Mason 570 Nos 12,000 6,841,480  

2 Carpenter 768 Nos 12,000 9,216,416  

3 Steel Fixer 379 Nos 12,000 4,550,253  

4 Painter 399 Nos 12,000 4,792,827  

5 Surveyor 0.47 Nos 12,000 5,609  

6 Worker 2509 Nos 6,500 16,311,028  

7 Labor Cost of Roof Truss 2508 Sft 1,000 2,508,000  

Labor Cost 44,225,612

Total Material & Labor Cost 134,300,254

Contract Specification
The following specifications are provided in Tendering Process
 Concrete
 Masonry works
 Plastering work
 Structural steel work
 Roofing works
  Carpentry and joinery
 Painting works
 Plumbing works

Contract Drawing Identification

The contract drawings are shown in ARCHIDRAWING.PDF and
STRUCTURALDRAWING.PDF.

Supplementary Provision
HEALTH AND SAFTEY
(1) The Contractor will comply at all times with the requirements of the Health and Safety at
Work Act 1974 and any other legislation or regulation relating to the health and safety of
persons.
(2) If during the performance of the Contract the health and safety of any person is
endangered then the Contractor shall cease work and take immediate steps to remedy that
situation.
(3) The Contractor shall inform the Employer or the Contract Administrator of all incidents
and/or accidents connected with the Contract and that occur during the performance of the
Contract.
Collaborative Working
Collaborative working means working smarter, not harder. It means integrating
customizable technology that offers the construction industry an effective way to reduce
inefficiencies and improve project outcomes. Providing facilities can improve worker’s
efficiency. Type of facilities are-

 Welcome facilities and entry control.
 Site offices.
 Meeting rooms.
 Training and induction facilities.
 Wheel washing facilities.
 Site canteen.
 Off-loading facilities.
 Laydown area.
 Temporary storage and storage areas.
 Sub-contractor facilities.
 Car parking.
 Waste management and recycling facilities.
 Fabrication facilities.
 Facilities for the construction of mock-ups for testing.
 Sanitary conveniences.
 Washing facilities.
 Drinking water.
 Changing rooms and lockers.

Contract Sum

Four Unit – Two-Story Residential Building

( 30'-0" x 70 '-0" x 24'-0" ) RCC Building

SUMMARY

Item Particular Total Amount Remark

1 Civil Work 134,300,254  

2 Electrical Work (8%) 10,744,020   

3 Water Supply & Sanitary Work (8%) 10,744020   

Total Amount 155,788,294  

Supervision Charges (3%) 4,673,648  

Transportation Charges (2%) 3,115,765  

Contingency Charges (5%) 7,789,414  

Commercial Tax (5%) 7,789,414  

 Grand Total Cost 179,1156,535  

179,1156,5
Total Amount (Ks.)
35

Building Area (Sq-ft) 4350

PAE Rate (Ks.) 41185.41

Schedule of work

Base Date
Traditionally the base date was set as the date of tender, however this was
sometimes found to give rise to uncertainty because of the complexity
and duration of tendering procedure. The usual practice now is to insert a date in
the contract linked to the date of the return of tenders.
The FIDIC suite of standard condition of contract, set the base date at 28 days before
the latest date for the submission of tender. The JCT suggests a date that is 10 days prior to
the date of the return of tenders.

Date of Completion
At least 4.5 months are needed from base date in order to complete the building.

Liquidated damages
The contract includes a clause making provision for the contractor to pay liquidated
damages. If the project is delayed by an event that impacts on the completion date, but is
not the fault of the contractor, then this may constitute a ‘relevant event’ for which
the contractor may be granted an extension of time.
If the contractor fails to complete the works or a section by the relevant completion
date, the Architect shall issue a certificate to that effect. If an extension of time is made
after the issue of such certificate, the extension shall cancel that certificate and the
Architect shall issue necessary issue a further certificate.
Contractor has agreed to build the building with the grand total cost that I have
mentioned above. As part of the agreement, he must put down 10% of total cost.

Rectification Period or Defect Liability Period

The defects liability period (now called the rectification period in Join Contract
Tribunal) begins upon certification of partial completion and typically lasts six to twelve
months.
During this period, the client reports any defects that arise to the contract
administrator or architect who decides whether they are defects or whether they are in
fact maintenance issues. If the contract administrator or architect   considers they
are defects, then they may issue instructions to the contractor to make them good within a
reasonable time.
At the end of the defect’s liability period, the contract administrator or architect 
prepares a schedule of defects, listing those defects that have not yet been rectified, and
agrees with the contractor the date by which they will be rectified. The contractor must in
any event rectify them within a reasonable time.
 When the contract administrator or architect considers all the items on the schedule
of defects have been rectified, they issue a certificate of making good defects. This has the
effect of releasing the remainder of any retention and results in the final certificate being
issued.

Payment System
 The slab or base stage: 15%
 Frame stage: 20%
 Lock up stage: 20%
 Fixing stage: 30%
 Practical completion stage: 10%
 5. Retained percentage – 5%
 6. Schedule of value – cost, labor, material.
 7. Work in place and material storage. Materials will be imported by classification
from decent sources. Different types of materials will have different storage
requirements in particular depending on whether they are durable or non-durable.
 8. Acceptance and final payment close out procedure – can be installed within 3
months after completion

Penultimate certificate for construction contracts

The JCT Building Contract includes provision for a ‘penultimate corticate’, which

signifies that there is no more work to value and triggers the final progress payment Once
issued, only the final certificate remains.

The due date for payment is 7 days after practical completion and the penultimate

certificate must be issued within 5 days of the due date. The final date for payment is 14
days from the due date.

 If the total retention was 10%, then 95% of the amount owed will become payable
once the penultimate certificate has been issued.

There will be no further payment until any defects that become apparent have been

rectified and the final certificate is issued. At this point the final payment will be made,
including the release of the remaining retention.

Insurance of the work

 JCT clause 5.4B is the best option to choose.

Clause 5.4B provides for a different insurance arrangement and is for use where
there are existing structures. As our building is being used by a tenant to carry out certain
fit-out works on one floor of a building and part of the necessary insurance arrangements
would involve ensuring that cover is in place in the event that a fire started due to the
Works and destroyed not only the Works but the building as well.

Under clause 5.4B rather than the contractor insuring the Works, the employer
arranges composite cover for the Works and for the existing structures. However, the
insurance cover in respect of existing structures is not on an all-risk’s basis (like the Works
insurance) but only applies to loss or damage due to a ‘Specified Peril’, for example, fire.

Personal injuries of employees will be covered by the contractor’s employer’s

liability contract, which is compulsory for all employers under the Insurance act. All firms
who employ staff are legally required to hold Employer’s liability insurance.

All employers must get employers’ liability insurance as soon as they become

an employer. The policy must cover them for at least £5 million and come from an
authorized insurer. Employers can check to see if their insurer is authorized by looking at
the by contacting the Financial Conduct Authority.

Personal injury or death, or loss or damage to property is covered by public liability

insurance. Common law claims for personal injury or death, or loss
or damage to property can be very significant and are unlimited. The cover provided does
not limit the contractor’s liability.