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Contract

1. What is a Contract. (a) Offer and acceptance. Contract. (b) Consideration. (c) Intention to create legal relationship. 2. How many ways can a contract be formed. (a) writing. (b) Oral. (c) Conduct. 3. How long does a contract last?.

charles-carney
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Contract

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  1. 1. What is a Contract (a) Offer and acceptance Contract (b) Consideration (c) Intention to create legal relationship 2. How many ways can a contract be formed (a) writing (b) Oral (c) Conduct 3. How long does a contract last? (a) Until completion (b) What is completion How long does the obligation continue? What is maintenance period? 4. What is meant by the terms of a Contract?

  2. S.A. RYE & L. WATERMAN, GENERAL CONTRACTORS, 2333, LINCOLN’S FIELD, COMPTON, NEW JERSEY, 07633. 2 February 1977, Mr. R. Beale, 73, Chestnut Drive, Compton, New Jersey, 07632. Dear Sir: Re: Proposed Double Garage, at 73, Chestnut Drive, Compton. We have examined the site and the Drawing (No. A134) for this proposed building, and we hereby offer to provide all labor, materials, and other things required to construct the Double Garage as shown in the Drawing for the Sum of $6,205.00 (six thousand, two hundred and five dollars) to be paid by you in one payment to us on substantial completion of the work. We are prepared to start the work on April 8, 1977 and to substantially complete it by April 30, 1977. We thank you for this opportunity to make a proposal for this work and hope that you will find our offer acceptable. Yours Truly, L. Watermain

  3. 5 February, 1977 73, Chestnut Drive, Compton, New Jersey, 07632. Messrs. S. A. Rye & L. Waterman, General Contractors, 2333, Lincoln’s Field, Compton, New Jersey, 07633. Dear Sirs: Re: The Proposed Double Garage at 73 Chestnut Drive, Compton. I have received your letter dated February 2, 1977, and I accept your offer. Please start work on April 8, 1977. In the meantime, I shall arrange for the site to be cleared. Yours Truly, R. Beale

  4. Target: To build a luxury house with a garden Construction Contract Step 1 : (a) To employ an Architect (b) (i) Design (ii) Approved plans (iii) Detailed drawings with Specification Step 2 : (a) To call tenders (b) (i) 40M (ii) 38M (iii) 30M not include materials Step 3 : a contract with terms (a) 38M (b) 1 April 05 – 1 April 06 (c) payment as measured (d) L.D. = $1000/day

  5. What happens during construction? Construction Contract (a) Very heavy rain affecting progress of work (i) Clause 50 (b) Typhoon causing injury and damage (i) Clause 21 (ii) Clause 22 (c) Architect sick (i) Who is the Architect ? (d) Cash flow problems (i) Clause 88 (e) Wrong position of column (i) Clause 23 (ii) Excepted Risks

  6. Bridge Construction • Piling changed into spread footing because of shallow rock level (b) Part of the abutment modified to save time necessary for watermain diversion (c) The Contractor proposed to change the size of reinforcement to facilitate concreting (d) The ER approved the use of parapet which was subsequently found not complying with specification (e) In (d), what is the position after the issue of maintenance certificate

  7. Definition of Condition of Contract 1. Difference between C. of C. and Specification 2. Other documents 3. Simple definition (a) Right & entitlement and obligation & liability of Contractor (b) Right & entitlement and obligation & liability of Employer (c) Power and duties of Engineer 4. Important Clauses

  8. 1. Programme shows Contractor’s intention of how to carry out and complete the Work Programme (Clause 16) 2. Programme is useful (a) As a good management tool (i) Allocation of staff and resources (ii) Identify and delays and mitigation measures (iii) Revise working sequences (b) To determine Contractor’s entitlement to EOT (i) must show critical path (ii) concurrent delays 3. Various types of programmes (a) Clause 16 Master Programme (b) Sub-programmes e.g. utility sub-programme (c) 3-month rolling programme (compatible with Master Programme) (d) Executive summary programme

  9. A’s activities 1. Leave home in Tai Po at 9:00a.m. 2. Walk to railway station – 5 min. Student A 3. Train to Tsim Sha Tsui – 30 min. 4. Meet B to buy materials – 10 min. 5. Bus to School – 15 min. Complete project together (2 hours) Student B B’s activities 1. Leave home in Mongkok at 9:00a.m. 2. Take breakfast near home – 20 min. Student C 3. Bus to Tsim Sha Tsui to meet A – 5 min. 4. Wait for A – 10 min. 5. Buy materials – 10 min. 6. Bus to School – 15 min. C’s activities 1. Leave home in Central at 9:00a.m. 2. Walk to shop to buy equipment – 5 min. 3. Choose equipment – 15 min. 4. Take ferry to Tsim Sha Tsui – 20 min. 5. Bus to School – 10 min. Network Analysis (1) Identify the critical paths (2) Identify the flow (3) What happen if B’s breakfast is delayed by 10 min. ? (4) What happen if A’s train is delayed by 15 min. and C’s ferry is delayed by 15 min. also?

  10. Programme(Clause 16) 1. To submit within 14 days of acceptance of the tender Showing the sequence, method, timing...due allowance for carrying out Specialist Works and works by utilities undertakings • Contractor’s arrangements for carrying out the works...and of • Constructional Plant and Temporary Works which the Contractor • intends to supply, use or construct... 4. Submission of programme... shall not relieve the Contractor of any duty or responsibility under the Contract

  11. Possession of Site (Clause 48) 1. Contract may prescribe (a) extent of Portion of the Site… (b) to be given possession from time to time. (c) order in which such Portion shall be made available. (d) requirement in the Contract as to the order in which works shall be executed.

  12. Possession of the Site (Clause 48) The Employer shall give...so much of the site... to proceed with the construction of the Works. (f) in accordance with the programme referred to Clause 16. (g) otherwise in accordance with such reasonable proposals… The Contractor shall make to the Engineer. (h) from time to time…give to the Contractor further part of the site 3. The Engineer is of the opinion that the contractor has been involved in additional payment. Works...material affected by failure...to give possession...Engineer certify

  13. Possession of Site (Clause 48) Appendix to Form of Tender Time for completion 600 days No. of days from commencement Portion A B C D 0 200 400 450 Particular Specification The contractor shall not commence the construction of primary pumping station before the completion of secondary pumping station

  14. 1. What is variation? Variation (Clause 60) 2. Engineer’s power to order (a) Changes/additions (b) Omission (c) Work shown in drawings but not in BQ 3. Effect of variation (a) Cost implication (b) Time implication 4. What is the pitfall of specifying levels and/or gradient? (a) In cut slopes (b) In pile toe levels (c) In drainage plans

  15. Variation (Clause 60) (1) Necessary for completion of the Works (2) Power to order any variation that for any other reason shall in his opinion be desirable for or to achieve the satisfactory completion and functioning of the Works

  16. Variation (Clause 60) (a) Additions, omission...changes in quality, form, character... • Charges to any sequence, method or timing specified in the • contract

  17. Variation (Clause 60)

  18. Valuation Clause 61 (1) • Item of works omitted valued at rate set out in Contract (b) Any work of same or similar character under same or similar condition valued at rates set out in Contract (c) Any work not of the same or similar character nor carried out under same or similar condition, based on rate so far as may be reasonable Proviso If the nature or extent of VO shall be such that in the opinion of the Engineer, any rate in any item of work is by reason of such variation rendered unreasonable or inapplicable than a new rate shall be fixed by the Engineer, using contract rate as the basis. Comparison with Clause 63(b) – Disruption to the progress of the Works.

  19. The Bill of Quantities shall be deemed to have been prepared and measurements shall be made according to the procedures... in the Method of Measurement Bill of Quantities (Clause 59) The quantities... in the Bill of Quantities are estimated quantities... (3) Any error in description in BQ or items omitted...Engineer shall • correct any such error or omission...shall certify (4)(b) Actual quantity of units...be substantially greater or less than that stated in the BQ... - in the opinion of Engineer - such increase or decrease itself - shall render the rate for such item unreasonable or not applicable - the Engineer shall determine an appropriate increase or decrease of rate

  20. Bill of Quantities (Clause 59) (1) What triggers re-rating (a) Method of construction changed (b) Economics of construction changed (2) Which is the Key word?

  21. Quantity in Bill of Quantities Rate • 500,000m3 100m3 • Actual Quantity ? • 300,000m3 Example Bill of Quantities (Clause 59) (a) What are included in the rate? (i) labour (ii) plant (iii) Overhead (b) What is the result of less quantities?

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