12 types of engineering contracts Flashcards
What is the difference between a main and sub contract?
main contract between principle and main contractor, subcontract between main contractor and subcontractor
What are the 3 common classifications for deciding the type of contract?
1 the method by which the contractor is selected
2 the method by which payment for the work under the contract is evaluated
3 the method by which responsibility for the technical and administrative aspects of the work is allocated
What are the 2 routes the principle can use when selecting a contractor?
1 competitive tendering
2 negotiated contract
What are the 2 basis used for payment of work?
1 price based
2 cost based
What are the 2 methods of price based work payment? and explain
1 lump sum - stipulated price contract- can be increased or decreased if there is change in the work scope
2 measure and value- pre-agreed unit rates, schedule of rates or priced BoQ needed
What are the 2 methods of cost based work payment? and explain
1 cost reimbursements - plus a fee
2 target cost- adjusted for any major changes in scope- any profit shared between principle and contractor
what are the 4 methods used to evaluate the cost reimbursement fee to contractor?
1 fixed sum
2 fixed sum with profit sharing or bonus
3 fixed fee with sliding- scale adjustment
4 % of costs
What are the implications of cost reimbursement payment?
1 allows early contractor involvement with low design level
2 final price depend on risk
3 efficiency of contractor affect cost to promoter
4 low financial charges
5 allow promoter involvement in project management
6 allows contractor to input to design
What are the key responsibilities that must be outlined in the contract?
1 project management and coordination 2 engineering design: conceptual, process, detailed, documentation 3 procurement and supervision 4 construction and supply/ installation 5 contract administration
What are the different types of contracts?
1 separate design and construction 2 design and construction 3 construction supply/ installation 4 management 5 construction management 6 design and management 7 turnkey
What are the implications of separate design and construction contract?
1 widespread use 2 experienced designers can be selected 3 normally used with measure and value 4 design usually completed before tender 5 management divided between parties 6 can lead to disputes
What does the promoter need to do for a design and construction contract?
appoint an engineer to provide scope of project through outline designs, design criteria, performance requirements
What is the contractors responsibility in the construction supply/ installation contract?
to carry out the work under the contract in accordance with design, specifications and other details
Who is a appointed in a management contract and what do they do?
a management contractor to manage the design, construction phases and contribute to the design itself
What are the implications of a management contract?
1 payment of management contractor is by fee, some times plus reimbursable costs
2 promoter pays contractor through management contractor
3 construction usually broken down into small packages with designs complete with high competition tender
4 designers must make more decisions early in design
5 promoter carries more risk- offset by high level of management control
6 some management contractors carry normal construction risks
What is a construction management contract?
the contract is directly between contractor and principle
What are the differences between a management and construction management contract?
1 construction management firm does not need to e a construction contractor
2 construction contracts have normal risk by promoter
3 construction management firm has no commercial professional conflicts of interest
4 construction manager is treated as a professional service provider + paid fee
What is a design and management contract?
they have responsibility for the detailed design
What are the similarities of a design and management contract and a management contract?
1 single point of contact for promoter
2 management of design and construction integrated
3 specifications must be defined early in design phase
4 time saved from design/ construction overlaps
5 likelihood of better design buildability
What are the contractors responsibilities in a turkey contract?
detailed design, procurement and construction- scope of design provided by separate designer
What are points to consider of a turkey contract?
1 payment may be staged lump sums or BoQ
2 full specification needed early in design stage
3 post contract promoters negotiating position is weak
4 pay need to cover cost of design by contractor in tender stage
5 checking the contractors work is likely to lead to disputes
6 promoters commissioning requirements must be in contract
What are the requirements for a simple contract?
1 intention 2 genuine consent 3 legality of purpose 4 legal capacity 5 offer and acceptance 6 valuable consideration
Give an example of when a lumpsum price based contract was used
the millennium stadium in wales
Give an example of when a target cost based contract was used
The queens ferry crossing