1_INTRODUCTION_TO_CONTRACT_SPECIFICATION_AND_QUANTITY_SURVEY.pptx

contract and specification

1. 12/6/2023 1

2. COLLEGE OF ENGINEERING TECHNOLOGY DEPARTEMENT OF CIVIL ENGINEERING CONTRACT, SPECIFICATION AND QUANTITY SURVEY GENERAL INTRODUCTION ON THE CONSTRUCTION INDUSTRY BY EDEN HALEFOM (M.SC) 12/6/2023 2

3. 1 . Construction Project A construction is a general term meaning the art and science to form objects, systems, or organizations, and comes from Latin word “ constructio ” It may be a road, bridge, a dam, a dwelling (shelter) place , an airport, a commercial building, etc. In planning for the various types of construction, the methods of procuring professional service, awarding construction contracts, and financing the constructed facility can be quite different . The broad spectrum of constructed facilities may be classified in to four major categories , each with its own characteristics 12/6/2023 3

4. A . RESIDENTIAL HOUSING CONSTRUCTION: Includes single-family houses, multi-family dwellings, and high rise apartments. The residential housing market is heavily affected by general economic conditions, tax laws, and the monetary and fiscal policy (government decision about taxation and spending's). B. INSTITUTIONAL AND COMMERCIAL BUILDING CONSTRUCTION: Encompasses a great variety of project types and sizes, such as schools and universities, medical clinics and hospitals, recreational facilities and sport stadiums, retail chain stores and large shopping centers , warehouses and light manufacturing plants, and skyscrapers for office and hotels. Because of the higher costs and great sophistication in comparison with residential housing , this market segment is shared by fewer competitors. 12/6/2023 4

5. C. SPECIALIZED INDUSTRIAL CONSTRUCTION Involves very large scale projects with a high degree of technological complexity, such as oil refineries, steel mills, chemical processing plants and nuclear plants.( salini impergilo and jaingsu C.S.C.S.) Long range demand forecasting is the most important factor since such projects are capital intensive and require considerable amount of planning and construction time . 12/6/2023 5

6. 12/6/2023 6 D. INFRASTRUCTURE AND HEAVY CONSTRUCTION Includes projects such as highways, mass transit systems, tunnels, bridges, pipelines, drainage systems and sewage treatment plants. Most of these projects are publicly owned and therefore financed by either through bonds, taxes, grants or aids. This category of construction is characterized by a high degree of mechanization. Construction Industry (CI) is an industry which is involved in the planning, execution and evaluation of all types of civil works .

7. Construction Industry can be categorized into three major sectors by their purpose i. Transport and Communication Sector - Road, Railway, Airway, and Telecommunication related physical works. ii. Water and Energy Works – Hydropower DAM development, transmission lines, wind power, irrigation projects. iii. Buildings and Other Physical Infrastructures- Apartments CI is among the leading industry in producing employment and contribute to the over all national development (growth injecting of the economy) CI is the most important enabler for social, economic and political development of countries. 12/6/2023 7 Specifically this fact is true for least developing countries like Ethiopia because construction projects are: Inter sectorial Demands huge capital budget

8. Nature of Construction Industry : Requires large capital investment thus is highly affected by the economy of the nation. Construction is a team output and requires motivated and skilled workers . Uniqueness of Construction Industry: Fragmented Industry Long production cycle Transient organization nature Unpredictable work load Subject to Environmental Impact 12/6/2023 8

9. Main Parties in Construction Project The practice of planning, designing, constructing, and operating a facility is most usually a collective effort of different groups of professionals and trades. Depending on the size, complexity, and purpose of a particular construction project, the project team may include: A client or an owner : Individuals, government, real estate developers etc. Financial institutions or other investors that provide the funding Local planning and code authorities Consultants or Licensed architects and engineers are who provide design work and prepare construction documents. Contractors are who provide construction services and install systems 12/6/2023 9

10. Main Parties in Construction Project 12/6/2023 10

11. I. Client The client is the most important party who is active from inception to completion and event to post-occupancy maintenance. Clients may be classified as Public sector clients and private sector A. Public sector clients Central Government Offices (Ministries ) Local Authorities (Regional or Town) Corporations B . Private sector clients These are private individuals & private companies 12/6/2023 11

12. I. Duty of the Client Demand for the product. For example for the building project: Availability and cost of land , Location & accessibility Price Required Infrastructure Legal constraints Current & future development Site preparation (right of way) Permits 12/6/2023 12

13. II. Consultant The main role of the consultant is to interpret the client’s project requirement into a specific design. The consultants’ team shall: Ascertain, interpret and formulate the client’s requirement into an understandable project . Design the project to match requirements and constraints (imposed by statutory obligations, technical feasibility, environnemental factor, site conditions, cost , etc.) Assess client’s cost limit to decide on materials & the like. Prepare contract documents. Supervise the project and inform the client the progress of the project (progress report) 12/6/2023 13

14. Approve payments Resolve contractual disputes Issue provisional and final acceptance certification II I . Contractor These are groups established commercial companies that bid and contract to construction contacts to construct different projects. RESPONSIBILITY OF CONTRACTORS Carry out a full site investigation prior to submission of tender, Submit tender, Plan, Program, Control the construction process. Notify the consultant about delays, discrepancies , Effect all payments to his employees, suppliers, subcontractors, Rectify all defects on completion of works, Provide post occupancy repair & maintenance if required. 12/6/2023 14 .

15. IV. PUBLIC SECTOR AGENCIES A. Statutory Authorities These bodies offer technical advice during design and construction in their respective areas.(building permit association) B. Municipalities and Government Authorities These bodies offer the basic Land permit and building permit.( land administration regulatory) 12/6/2023 15

16. 12/6/2023 16

17. 12/6/2023 17 Capacity - refers to the quantity of labor for the scope defined. Capability - refers to knowledge , technology know-how and skill as per the demands of the scopes ability.

18. 12/6/2023 18

19. D. PHYSICAL RESOURCES I. MATERIALS Material covers 55-70% of the total construction cost. II. EQUIPMENTS Though their initial cost is high using equipment's are far more better than using labor. III . OTHER ASSETS Physical Infrastructures and Owned Land are assets which can be collaterals for capital base enhancement and credit facilities and are useful to develop the scarce financial resources and getting into business access. 12/6/2023 19

20. E . SERVICE AND MANAGEMENT i. Service : Services such as acquisition of land, provisions of water supply, electric power, communication systems, etc., are very much necessary in the construction industry. ii. Management Management has come to employ a disciplined approach to the use of available resources. 12/6/2023 20

21. 5. Construction Project Management Process Project management is Planning, Organizing, Monitoring and Controlling of all aspects of a project, to achieve the project’s objective. 12/6/2023 21

22. 12/6/2023 22

23. 12/6/2023 23

24. 12/6/2023 24

25. 12/6/2023 25

26. 27 Introduction to the law of contract as applied to Civil Engineering constructions

27. What is a law? The Law is, a set of general statements aimed at regulating choices in possible human behavior that is defined or recognized , publicized and sanctioned or rewarded by the State. The Law generally performs its regulatory function by demanding its subjects/citizen to do something( permissive ) or by ordering not to do something( prohibitive ) Legal sanctions may come into picture where deviations from the Law in terms of the permissive or prohibitive provisions are committed by the subject or person against whom the Law is prescribed; 28

28. Legal sanctions The violation of the law or the breach of contract results remedies for the injured & liability against the one who violates the law or breaches the contract: Civil remedies (by courts : case brought by plaintiff ); Focuses in proprietary/financial compensations Penal sanctions (by courts : case followed by public prosecutor ); Results in deprivation of life/liberty or fine Administrative measures (by empowered bodies) Suspension of licenses, etc. 29

29. The legal system in Ethiopia The constitution Is the supreme law of the country Establishes that the parliament would act on other laws (proclamations) but not on the constitution itself It is not interpreted by the judiciary organ; it is rather interpreted by the House of Federation. 30

30. Key notes in legal system Ignorance of the law is not an excuse Legal supremacy (the rule of the law must be respected by all the scope applies to) Scope of application of law may vary based on: (Natural or legal) Persons , time , subject matter , territory 31

31. Key Laws relevant to Construction The Civil Code; Especially Contract and Obligation related The Commercial Code Law of Traders and Businesses Law of Business Organizations; Law of Bankruptcy & Scheme of Arrangement; Law of Carriage & Insurance Civil Procedural Code Criminal Code The Maritime Code Law of Finance Law of Taxation Environmental Impact Assessment Proclamation. Labor Law Procurement Laws; etc 32

32. The law of contract (Books IV & V of the Civil Code) 33

33. The Civil Code Was effective since 1960 and frequently being amended Drafted by consulting major continental Europe codes (France, Swiss, Greece, Italy) Egypt, and to some extent practices of common laws 34

34. The Civil Code Has five books Book I : deals with “persons” Book II: deals with “family succession” (replaced by a new version) Book III: Deals with “goods” Book IV : Deals with “obligations” Book V : deals with “ special contracts” 35

35. A contract Importance: Is an indispensable instrument for exchange of goods, services , works and money between persons Non-recognition and/or non-enforcement of contracts leads to anarchy / disorder /chaos and failure of transactions 36

36. Contract: Is ‘an agreement between two or more persons as between themselves to create, vary or extinguish obligations of a proprietary nature’ (art. 1675 of Civil Code- 1960) 37

37. Nature of contract Contracts can be of: (civil, commercial, industrial (labor relation), economic ( construction contract) or otherwise); May not involve Extra contractual liability 38

38. Formation of contract 39

39. Formation of a contract What should a contract satisfy to be enforceable in front of law? Competent parties (Legal capacity) Offer and acceptance (Agreement ) Consent to be bound Consideration Legality of the object Formalities 40

40. Offer and acceptance Offer : An offer is an expression that one party is willing to be bound by specific terms which are setout in the contract. According to the Civil Code, an offer or acceptance can be made:  In writing or orally By signs normally in use By conduct of the parties 41

41. Offer and acceptance A contract is complete when an offer by one party is accepted without condition by the other party No contractual offer in the case that a party declares to be obliged but without communicating this intention to the beneficiary of the declaration 42

42. Offer and acceptance Termination of offer: Through refusal (rejection) or counter offers but not just a request for further information Death of offerer or offeree None acceptance within the offer time or after reasonable length of time (end) 43

43. Special Contracts (Administrative Contract) 44

44. Administrative Contracts Is a contract to be signed between a public (government) authority & a private party; Not all such contracts qualify to be administrative, though Major types of such contracts of interest to construction are: Contract of Public Works ; (Article 3244-Article 3296) Contract of Supplies ; (Article 3297-Article 3206) 45

45. Administrative Contracts Definition : See Article 3132 for the definition of Administrative Contract under the Civil Code: A contract shall be deemed to be an administrative contract where: a) it is expressly qualified as such by the law or by the parties ; or b) it is connected with an activity of the public service and implies a permanent participation of the party contracting with the administrative authorities in the execution of such services; or c) it contains one or more provisions which could only have been inspired by urgent considerations of general interest extraneous to relations between private individuals. 46

46. Administrative Contracts By nature, in Administrative Contracts, the balance of the said contract is tilted towards the public authority ; for public interest Fore example: Termination of contract by public authorities for convenience ; (see Article 3180 of the Civil Code) the non-performance by the public authorities of their obligations shall not entitle the other (private contracting )party to fail to perform its obligations; (see Article 3177(1) of the Civil Code) the administrative authorities may… unilaterally impose …certain modifications of the contract…(see Article 3179 & Article 3283 of the Civil Code); the court may not order the administrative authorities to perform their obligation; (see Article 3194(1) of the Civil Code) etc. 47

47. To Administer this Contract… Compiled by: Instructor Tariku Dessu(M.Sc.in CEM) 48