CONSTRUCTION

CONTRACTS DOCUEMENTS

BY

LECTURER
Maha Muhaisen

APPLIED CIVIL ENGINEERING DEPT

CONSTRUCTION
DOCUMENTS
 CONSTRUCTION
DOCUMENTS
Contract documents (graphic and written) describe the proposed
construction (the ‘Work’) that results from performing services, furnishing
labor, and supplying and incorporating materials and equipment into the
construction
A. Contract Forms
B. Conditions of the Contract
C. Specifications & BOQ
D. Drawings
E. Addenda
F. Change Orders
 A. CONTRACT FORMS
 CONTRACT FORMS

Acceptance Letter
Agreement
Performance Bond
Payment Bond
Certificates
 B.CONDITIONS OF CONTRACT
CONDITIONS OF CONTRACT
Define basic rights, responsibilities, and relationships of the parties involved in
the construction project.
2 types: General Conditions and Supplementary Conditions
GENERAL CONDITIONS
General clauses that establish how the project is to be administered.
Contain basic expressions of rights, duties, and limitations of the entities
involved.
Usually in the form of published standard documents that include principles
common to most construction Contracts.
SUPPLEMENTARY CONDITIONS
Modify or supplement general conditions as need to provide for
requirements specific to a project They are not standardized documents and
 A.1 Agreement
The written document signed by the owner and the
contractor that is the legal instrument binding the parties
to the contract.
Defines the relationship and obligations between owner
and contractor.
 The agreement is quite brief and appears to consist
mostly of statements of fact, whereas the general
conditions section deals primarily with matters that
pertain generally to be construction work and the
persons involved.
 In other words, the agreement appears to consist of
statements and the general conditions appear to be
t diti
 Acceptance letter
 Sent to contractor before the signing the contract
 Mention to the contractor offer, and assure the commitment of the
contractor
 The owner express his acceptance to the contractor offer as it was
in the form of bid offer, and ask the contractor to start preparation of
the legal and technical steps as it is stipulated in the contract.
 Signing the authorized signatory and then the contractor is invited to
submit performance security and signing the contract.
 See example of acceptance letter
 AGREEMENT
 The agreement should contain:
 The names of contracting parties
 A brief description of the work
 A list of contract documents, including agreement,
general conditions, drawings, and specifications.
 The contract sum, or amount (lump-sum contract)
 The procedures for payment
 The contract time, or dates for start and completion
 The signatures of contracting parties and witnesses
 International construction documents are also often
based on industry-prepared standard forms.
 AGREEMENT FORM
 A number of organizations prepare recommended
standard general conditions and associated forms. Such
as:
 ENAA (Engineering Advancement Association of

Japan)
 FIDIC (International Federation of Consulting

Engineers)
 ICE (Institute of Civil Engineers, United Kingdom)

 JCT (Joint Contracts Tribunal)

 SEE ATTACHED WORD FILE FOR

EXAMPLES
 A.2 .Bonds / Guarantees FORMS
1- PERFORMANCE BOND / security
The Contractor, upon receiving the Letter of Acceptance, shall obtain and provide to the
Employer before signing the Contract, the Performance Guarantee in the value of
ten percent of the Contract Sum, as a guarantee of the proper execution of the
Works in accordance with the Contract. This guarantee shall be issued by a
licensed bank or financial institution acceptable to the Employer. The guarantee
shall be prepared in the form included in part B of these conditions. The obtaining
of such guarantee shall in all respects be at the expense of the Contractor.The
Performance Security shall be provided to the Employer no later than the date
specified in the Letter of Acceptance and shall be issued in an amount specified in
the PCC (particular conditions of contract), by a bank or surety acceptable to the
Employer, and denominated in the types and proportions of the currencies in which
the Contract Price is payable.
The Performance Security shall be valid until a date 28 days from the date of issue of the
Certificate of Completion in the case of a Bank Guarantee, and until one year from
the date of issue of the Completion Certificate in the case of a Performance Bond.
 Advanced PAYMENT BOND
 Provide a guarantee that subcontractor, material suppliers, and
others providing labor, material goods, and services to the project
will be paid.
• The Employer shall make advance payment to the Contractor
of the amounts stated in the PCC by the date stated in the
PCC, against provision by the Contractor of an Unconditional
Bank Guarantee in a form and by a bank acceptable to the
Employer in amounts and currencies equal to the advance
payment. The Guarantee shall remain effective until the
advance payment has been repaid, but the amount of the
Guarantee shall be progressively reduced by the amounts
repaid by the Contractor. Interest shall not be charged on the
advance payment.
 • The Contractor is to use the advance payment only to pay for
Equipment, Plant, Materials, and mobilization expenses
required specifically for execution of the Contract. The
Contractor shall demonstrate that advance payment has
been used in this way by supplying copies of invoices or
other documents to the Project Manager.
 The advance payment shall be repaid by deducting
proportionate amounts from payments otherwise due to the
Contractor, following the schedule of completed percentages of
the Works on a payment basis. No account shall be taken of the
advance payment or its repayment in assessing valuations of
work done, Variations, price adjustments, Compensation Events,
Bonuses, or Liquidated Damages.
 Defect liability Security
 After primary taking over, 5% guarantee is
submitted to employer for defect liability,
valid for 365 days or as stipulated in PCC.
 INSURANCE Certificates
 Insurance for Works and Contractor’s Equipment,
 Insurance against Injury to Persons and Damage to
Property ,
 Insurance for Contractor’s Personnel
 Lecture (6), (7), (8)
 Conditions of the contract
 General Conditions of contract
 Theconditions are intended to govern and
regulate the obligation of formal contract.

 Although the headings and topics included

within different sets of GCC vary, there is a
certain similarity of subject matter
 Contents of GCC
 Definitions
 Contract documents
 Rights and responsibilities of owner
 Duties and authorities of engineer
 Rights and responsibilities of contractor
 Sub-contractor, Separate contractors
 Time
 Payments and completions
 Changes in the work
 Protection of persons and property
 Insurance and bond
 Disputes
 Termination of contract
 Miscellaneous provisions
 FIDIC , AN INTRODUCTION

 Founded in 1913
 Expanded in 1945 to include 40 national associations
 Published first Conditions of Contract in 1957
 In 2004 has 64 member associations
 Headquarters in Switzerland
 Web Site : www.fidic.org
 FIDIC , AN INTRODUCTION

 Pre 1957 – no internationally recognised

contract conditions
 First “red book” based on UK ICE
conditions
 FIDIC has international committees to
improve contracts
 Contract Documents 1999
 Conditions of Contract for Construction
(Red Book)
 Conditions of Contract for Plant & Design
Build (Yellow Book)
 Conditions of Contract for EPC Turnkey
Projects (Silver Book)
 Short Form of Contracts (Green Book)
 FIDIC Document Usage
Conditions of Contract for
Construction

 Works designed by Employer or Engineer

 Contractor Constructs in accordance with
designs provided
 May include some design elements
 FIDIC Document Usage
Conditions of Contract for, Plant & Design
Build

 Electrical
& Mechanical Plant
 May include building and engineering
 Design & Execution of works
 Contractor designs and constructs in
accordance with Employer’s Requirements
 Engineer Administers
 FIDIC Document Usage
Short Form of Contract

 Small capital value projects

 Simple content
 Contractor constructs to Employer’s
designs
 No “Particular Conditions”
 No “Impartial” Engineer
Typical sequence of Principal
Events during Contracts
 Typical sequence of Payment Events
envisaged in Clause 14(contract price
and payment)
14.3 Contractor 14.6 Employer 14.7 Employer
submits gives Contractor makes the
Statement to the notice of amount payment to the
Employer considered due Contractor

<56d
Each of the
monthly (or
otherwise)
interim <28d
payments

The final Employer verifies the draft final statement, Contractor

payment submits information
<42d

14.11 Contractor submits 14.11 Contractor 14.7 employer

draft final statement to the submits Final Statement makes payment
Employer and the 14.12 discharge
 Typical sequence of Dispute
Events envisaged in Clause 20

DAB: the persons so named in the contract or other persons

appointed under sub-clause (appointment of the dispute
adjudication board)
 FIDIC conditions of contract
1 GENERAL PROVISIONS
2 THE EMPLOYER .
3 THE ENGINEER
4 THE CONTRACTOR
5 NOMINATED SUBCONTRACTORS
6 STAFF AND LABOUR
7 PLANT, MATERIALS AND WORKMANSHIP
8 COMMENCEMENT, DELAYS AND SUSPENSION
9 TESTS ON COMPLETION
10 EMPLOYER’S TAKING OVER .
11 DEFECTS LIABILITY
12 MEASUREMENT AND EVALUATION
 FIDIC conditions of contract
(cont’d)
13 VARIATIONS AND ADJUSTMENTS
14 CONTRACT PRICE AND PAYMENT
15 TERMINATION BY EMPLOYER
16 SUSPENSION AND TERMINATION BY CONTRACTOR
17 RISK AND RESPONSIBILITY
18 INSURANCE
19 FORCE MAJEURE
20 CLAIMS, DISPUTES AND ARBITRATION
 FIDIC conditions of contract
1 GENERAL PROVISIONS
1.1 Definitions
1.2 Interpretation
1.3 Communications
1.4 Law and Language
1.5 Priority of Documents
1.6 Contract Agreement
1.7 Assignment
1.8 Care and Supply of Documents
1.9 Delayed Drawings or Instructions
1.10 Employer’s Use of Contractor’s Documents
1.11 Contractor’s Use of Employer’s Documents
1.12 Confidential Details
1.13 Compliance with Laws
1 14 J i t d S l Li bilit
 FIDIC conditions of contract cont’d
2 THE EMPLOYER .
2.1 Right of Access to the Site
2.2 Permits, Licenses or Approvals
2.3 Employer’s Personnel
2.4 Employer’s Financial Arrangements
2.5 Employer’s Claims

3 THE ENGINEER
3.1 Engineer’s Duties and Authority
3.2 Delegation by the Engineer
3.3 Instructions of the Engineer
3.4 Replacement of the Engineer
3.5 Determinations
 FIDIC conditions of contract cont’d
4 THE CONTRACTOR
4.1 Contractor’s General Obligations
4.2 Performance Security
4.3 Contractor’s Representative
4.4 Subcontractors
4.5 Assignment of Benefit of Subcontract
4.6 Co-operation
4.7 Setting Out
4.8 Safety Procedures
4.9 Quality Assurance
4.10 Site Data
4.11 Sufficiency of the Accepted Contract Amount
4.12 Unforeseeable Physical Conditions
4.13 Rights of Way and Facilities
4.14 Avoidance of Interference
4.15 Access Route
4.16 Transport of Goods
4.17 Contractor’s Equipment
4.18 Protection of the Environment
4.19 Electricity, Water and Gas
4.20 Employer’s Equipment and Free-Issue Material
4.21 Progress Reports
4.22 Security of the Site
4.23 Contractor’s Operations on Site
4.24 Fossils
5 NOMINATED SUBCONTRACTORS
5.1 Definition of “nominated Subcontractor”
5.2 Objection to Nomination
5.3 Payments to nominated Subcontractors
5.4 Evidence of Payments
6 STAFF AND LABOUR
6.1 Engagement of Staff and Labour
6.2 Rates of Wages and Conditions of Labour
6.3 Persons in the Service of Employer
6.4 Labour Laws
6.5 Working Hours
6.6 Facilities for Staff and Labour
6.7 Health and Safety
6.8 Contractor’s Superintendence
6.9 Contractor’s Personnel
6.10 Records of Contractor’s Personnel and Equipment
6.11 Disorderly Conduct
6.12 Foreign Personnel
6.13 Supply of Foodstuffs
6.14 Supply of Water
6.15 Measures against Insect and Pest Nuisance
6.16 Alcoholic Liquor or Drugs
6.17 Arms and Ammunition
6.18 Festival and Religious Customs
6.19 Funeral Arrangements
6.20 Prohibition of Forced or Compulsory Labor
6.21 Prohibition of Harmful Child Labour
6.22 Employment Records of Workers
7 PLANT, MATERIALS AND WORKMANSHIP
7.1 Manner of Execution
7.2 Samples
7.3 Inspection
7.4 Testing
7.5 Rejection
7.6 Remedial Work
7.7 Ownership of Plant and Materials
7.8 Royalties
8 COMMENCEMENT, DELAYS AND SUSPENSION
8.1 Commencement of Works
8.2 Time for Completion
8.3 Programme
8.4 Extension of Time for Completion
8.5 Delays Caused by Authorities
8.6 Rate of Progress
8.7 Delay Damages
8.8 Suspension of Work
8.9 Consequences of Suspension
8.10 Payment for Plant and Materials in Event of Suspension
8.11 Prolonged Suspension
8.12 Resumption of Work
9 TESTS ON COMPLETION
9.1 Contractor’s Obligations
9.2 Delayed Tests
9.3 Retesting
9.4 Failure to Pass Tests on Completion
10 EMPLOYER’S TAKING OVER
10.1 Taking Over of the Works and Sections
10.2 Taking Over of Parts of the Works
10.3 Interference with Tests on Completion
10.4 Surfaces Requiring Reinstatement
11 DEFECTS LIABILITY
11.1 Completion of Outstanding Work and Remedying Defects
11.2 Cost of Remedying Defects
11.3 Extension of Defects Notification Period
11.4 Failure to Remedy Defects
11.5 Removal of Defective Work
11.6 Further Tests
11.7 Right of Access
11.8 Contractor to Search
11.9 Performance Certificate
11.10 Unfulfilled Obligations
11.11 Clearance of Site
 12 MEASUREMENT AND EVALUATION .
 12.1 Works to be Measured
 12.2 Method of Measurement
 12.3 Evaluation
 12.4 Omissions
 13 VARIATIONS AND ADJUSTMENTS
 13.1 Right to Vary
 13.2 Value Engineering
 13.3 Variation Procedure
 13.4 Payment in Applicable Currencies
 13.5 Provisional Sums
 13.6 Daywork
 13.7 Adjustments for Changes in Legislation
 13.8 Adjustments for Changes in Cost
14 CONTRACT PRICE AND PAYMENT
14.1 The Contract Price
14.2 Advance Payment
14.3 Application for Interim Payment Certificates
14.4 Schedule of Payments
14.5 Plant and Materials intended for the Works
14.6 Issue of Interim Payment Certificates
14.7 Payment
14.8 Delayed Payment
14.9 Payment of Retention Money
14.10 Statement at Completion
14.11 Application for Final Payment Certificate
14.12 Discharge
14.13 Issue of Final Payment Certificate
14.14 Cessation of Employer’s Liability
14.15 Currencies of Payment
15 TERMINATION BY EMPLOYER
15.1 Notice to Correct
15.2 Termination by Employer
15.3 Valuation at Date of Termination
15.4 Payment after Termination
15.5 Employer’s Entitlement to Termination for Convenience
15.6 Corrupt or Fraudulent Practices
16 SUSPENSION AND TERMINATION BY CONTRACTOR
16.1 Contractor’s Entitlement to Suspend Work
16.2 Termination by Contractor
16.3 Cessation of Work and Removal of Contractor’s Equipment
16.4 Payment on Termination
17 RISK AND RESPONSIBILITY
17.1 Indemnities
17.2 Contractor’s Care of the Works
17.3 Employer’s Risks
17.4 Consequences of Employer’s Risks
17.5 Intellectual and Industrial Property Rights
17.6 Limitation of Liability
17.7 Use of Employer’s Accommodation/Facilities
18 INSURANCE
18.1 General Requirements for Insurances
18.2 Insurance for Works and Contractor’s Equipment
18.3 Insurance against Injury to Persons and Damage to Property
18.4 Insurance for Contractor’s Personnel
19 FORCE MAJEURE
19.1 Definition of Force Majeure
19.2 Notice of Force Majeure
19.3 Duty to Minimize Delay
19.4 Consequences of Force Majeure
19.5 Force Majeure Affecting Subcontractor
19.6 Optional Termination, Payment and Release
19.7 Release from Performance
20 CLAIMS, DISPUTES AND ARBITRATION
20.1 Contractor’s Claims
20.2 Appointment of the Dispute Board
20.3 Failure to Agree on the Composition of the Dispute Board
20.4 Obtaining Dispute Board’s Decision
20.5 Amicable Settlement
20.6 Arbitration
20.7 Failure to Comply with Dispute Board’s Decision
20.8 Expiry of Dispute Board’s Appointment
 1.1 Definitions
 1.1.1. Contract : include contract agreement, letter of acceptance,
letter of tender, specifications, drawings, schedules, tender,
appendix to tender, bill of quantities.
 1.1.2 parties and persons : party, employer, contractor, engineer,
contractor representative, employers' personnel, contractors
personnel, sub- contractor, DAB (dispute adjudication board), Fidic.
 1.1.3 Dates , tests, periods and completion include base date,
commencement date, time of completion, test on completion, taking
over certificate, defects notification period, performance certificate,
day
 1.1.4 money and payement: acceted contract amount, contract
price, cost, final , interim payement certificate, currency, provisional
sum, retension money,
 General conditions

 The following are main items that include

in the general conditions for the tender ( or
the construction contract.
 1 : definitions
 The main definitions that are included in and repeated in the articles
of general conditions, are:
 Employer : "Employer" The party named in the Contract as the
"FIRST PARTY" who will enter into contract with the Contractor for
the execution of the Works covered by the Contract, or any other
party authorized by the Employer to exercise the powers and
obligations of the First Party, provided that the Contractor will be
informed accordingly in writing .
 Contractor : "Contractor" - The person, company or joint venture
named as Second Party in the Contract whose Tender has been
accepted by the Employer and with whom the Employer has entered
into Contract, and includes the Contractors personal agents and his
legal successors
 Engineer" - The Consulting office, or Engineering office or Engineer
or any other technical body appointed from time to time by the
Employer to exercise in whole or in part the powers of the Engineer
in accordance with the Conditions of the Contract provided that the
Contractor shall be accordingly notified in writing.
 Article 1 : definitions
 "Engineers Representative" - Any resident engineer, or clerk of
works appointed by the Engineer from time to time
 "Contract" - The documents constituting these Conditions (Parts I
and II), the Specification, the Drawings, the Bill of Quantities, the
Tender, the Letter of Acceptance, the Contract Agreement, and
such further documents as may be expressly incorporated in the
Letter of Acceptance or Contract Agreement (if completed).
 "Contract Sum" - The sum stated in the Letter of Acceptance as
payable to the Contractor for the execution and completion of the
Works and the remedying of any defects therein in accordance with
the provisions of the Contract, subject to such additions thereto or
deductions therefrom as may be made under the provisions of the
Contract.
 Equipment is the Contractor’s machinery and vehicles brought
temporarily to the Site to construct the Works.
 "Site" - The land and other places provided by the Employer or
designated as such where the Works are to be executed, and any
other places specifically designated in the Contract as forming part
of the Site.
 approval (written approval)
 time (calendar / working days)
 2. Engineer's Duties and
Authority
 a) The Engineer shall carry out the duties specified in the
Contract .
 b) The Engineer shall exercise the authority specified in or
necessarily to be implied from the Contract .
 Provided, that the Engineer shall obtain the specific approval of
the Employer, in compliance with the terms of his appointment, and
after submitting his recommendations to the Employer in writing, in
the following matters :
 (i) "issuing variation orders";
 (ii) "deciding on the extension of Time for Completion and applying
the Liquidated Damages Clause";
 (iii) "approving the appointment of Subcontractors";
 (iv) "notifying the Contractor on suspension of Works";(and any
other matters as may be set out in Part II of these conditions).
 (c) Except as expressly stated in the Contract, the Engineer shall
have no authority to relieve the Contractor of any of his obligations
under the Contract
 Engineer's Representative
 The Engineer's Representative shall be
appointed by and be responsible to the
Engineer and shall carry out such duties of
watching and supervising the execution
and workmanship of the Works and to test
and examine any materials to be used or
workshop employed in connection with the
Works. He shall exercise such authority as
may be delegated to him by the Engineer
 Engineer's Authority to Delegate
 The Engineer may from time to time delegate to the
Engineer's Representative any of the duties and authorities
vested in the Engineer and he may at any time revoke such
delegation. Any such delegation or revocation shall be in
writing and shall not take effect until a copy thereof has
been delivered to the Employer and the Contractor .
 Any communication given by the Engineer's
Representative to the Contractor in accordance with such
delegation shall have the same effect as though it had been
given by the Engineer
 Provided that :
 (a) any failure of the Engineer's Representative to
disapprove any work, materials or Plant shall not prejudice
the authority of the Engineer to disapprove such work,
material or Plant and to give instructions for the rectification
thereof;
 (b) if the Contractor questions any communication of the
Engineers Representative, he may refer the matter to the
Engineer who shall confirm, reverse or vary the contents of
such communication .
 3. Contractor’s General
Obligations
 The Contractor shall design (to the extent specified in the
Contract), execute and complete the Works in accordance with
the Contract and with the Engineer’s instructions, and shall
remedy any defects in the Works.
 The Contractor shall provide the Plant and Contractor’s
Documents specified in the Contract, and all Contractor’s
Personnel, Goods, consumables and other things and services,
whether of a temporary or permanent nature, required in and
for this design, execution, completion and remedying of defects.
 The Contractor shall be responsible for the adequacy, stability
and safety of all Site operations and of all methods of
construction. Except to the extent specified in the Contract, the
Contractor (i) shall be responsible for all Contractor’s
Documents, Temporary Works, and such design of each item of
Plant and Materials as is required for the item to be in
accordance with the Contract, and (ii) shall not otherwise be
responsible for the design or specification of the Permanent
Works.
 Contractor’s General
Obligations
 The Contractor shall, whenever required by the
Engineer, submit details of the arrangements and
methods which the Contractor proposes to adopt for the
execution of the Works. No significant alteration to these
arrangements and methods shall be made without this
having previously been notified to the Engineer.
 If the Contract specifies that the Contractor shall design
any part of the Permanent Works, then unless otherwise
stated in the Particular Conditions:
 (a) the Contractor shall submit to the Engineer the
Contractor’s Documents for this part in accordance with
the procedures specified in the Contract;
 (b) these Contractor’s Documents shall be in accordance
with the Specification and Drawings, shall be written in
the language for communications