CONTRACT

Question 1

The party who has ordered the work to be done. In other forms of contract, this party may be referred to as ‘the Client’ or ‘the Owner’.

Answer 1

Employer

Question 2

The party who is responsible for completing the work

Answer 2

Contractor

Question 3

a. The party responsible for administering the Contract.
b. In other forms of contract, this party may be referred to as ‘the Architect’, ‘the Supervising Officer’ or ‘the Project Manager’.

Answer 3

Engineer

Question 4

a. The person responsible for reviewing a claim or response and producing a determination, defense or response to the submitted document.

Answer 4

Reviewer

Question 5

The various documents including the letter of award, the agreement, contract conditions, the specifications, the drawings and any further document listed in the agreement or letter of award which together form the contract between the parties.

Answer 5

Contract

Question 6

a breakdown of the work required into a list of planned activities showing the times and dates when they are intended to happen or be done, in the form of a bar chart.

In some parts of the world, this is customarily referred to as a ‘schedule’.

Answer 6

Programme

Question 7

a. A sum of money, which shall be paid by the Contractor to the Employer in the case of failure to complete the Project by the Time for Completion.
b. Some contracts deduct such monies under provisions of ‘liquidated damages’ or ‘penalties

Answer 7

Delay Damages

Question 8

refer to monetary values.

Answer 8

Currency

Question 9

The contract documents will typically comprise the following:

Answer 9

a. The agreement
b. The particular conditions of contract
c. The general conditions of contract
d. The specification
e. The drawings
f. The bills of quantities
g. Other documents

Question 10

The Contractor, prior to signing the Contract, shall furnish a _______ equal to ___ of the Contract amount for the faithful performance of his work and ____ bond covering Contractor’s obligations arising from the Contract to its workers, subcontractors and suppliers

Answer 10

Performance Bond, 15%, 15%

Question 11

a separate explanatory statement intended to clarify, amend or supplement a document, drawing etc.

Answer 11

Addendum

Question 12

in contract administration, construction work ordered by the client after the contract has been awarded, not included in the contract and for which the contractor is paid separately.

Answer 12

Additional Work

Question 13

refers to the notice published by the Owner or the invitation issued to prospective bidders, giving information as to the nature of the proposed project, conditions for the issuance of Contract documents, date of bidding, and information that would give the Contractor a general idea of the magnitude and extent of the project.

Answer 13

Advertisement or Invitation Bid

Question 14

is the term used to describe the agreement signed by the Owner and the Contractor excluding the Contract Documents which are attached thereto.

Answer 14

Agreement

Question 15

the tender, or proposal, or quotation, or offer of a bidder to perform the work described in the Contract which in form and substance complies with the Instruction to Bidders.

Answer 15

Bid

Question 16

refers to any acceptable form of bond accompanying the Bid submitted by the bidder as a guarantee that the bidder will enter into the Contract with the Owner for the construction of the Work, if the Contract is awarded to him

Answer 16

Bid Bond

Question 17

collectively refer to all documents provided or made available to prospective bidders which include the Invitation to Bid and a copy of the Contract which the winning bidders would be required to sign with the Owner

Answer 17

Bid Documents

Question 18

is a document containing additional information on Bid Documents issued to bidders before date of bidding.

Answer 18

Bid Bulletin

Question 19

in contract administration, an instruction from the client or client’s representative that implements a change in the nature or extent of constructed work.

Answer 19

Change Order

Question 20

are the documents attached to the Agreement identified therein as Contract Documents, including all additions, deletions and modifications incorporated therein.

Answer 20

Contract Documents

Question 20

are the documents attached to the Agreement identified therein as Contract Documents, including all additions, deletions and modifications incorporated therein.

Answer 20

Contract Documents

Question 21

are the documents attached to the Agreement identified therein as Contract Documents, including all additions, deletions and modifications incorporated therein.

Answer 21

Contract Documents

Question 21

are the documents attached to the Agreement identified therein as Contract Documents, including all additions, deletions and modifications incorporated therein.

Answer 21

Contract Documents

Question 22

handover date; the on which work on a building under construction or repair is due to be completed, as written in the building contract

Answer 22

Completion Date

Question 23

a document issued at the end of the defects liability period certifying that all defects have been made good or repaired.

Answer 23

Completion of Defects Certificate

Question 24

means all expenditures properly incurred or to be incurred, whether on or off the site, including overhead and other charges properly allocable thereto but does not include any allowance for profit.

Answer 24

Cost

Question 25

in contract management, a request by a contractor for payment in circumstances where he has no legal right to reimbursement.

Answer 25

Ex-Gratia Application

Question 26

refers to the payment of the final progress billing and all approved claims including but not limited to variations in the work, Contract Price adjustments and/or escalation, acceleration of work, and others.

Answer 26

Final Payment

Question 27

a document that authorizes payment to the contractor of the final account, an approval that the terms of the contract have been met

Answer 27

Final Certificate

Question 28

an increase or decrease in the prices of labour, materials or plant from those specified in the tender, allowed for in the building contract.

Answer 28

Fluctuation

Question 29

a method of calculating the amount to be added to or deducted from a contract sum due to changes in the costs of labour, plant and materials during construction using a price variation formula.

Answer 29

Formula Price Adjustment

Question 30

a variation of price contract in which prices are amended according to previously agreed terms.

Answer 30

Formula variation of price contract

Question 31

a method of payment for additional construction work on the basis of hourly rates of labour, materials and plant.

Answer 31

Daywork

Question 32

is the approved form of security furnished by the Contractor and his Surety as a guarantee of the quality of the materials provided, the equipment installed, and the workmanship performed by the Contractor

Answer 32

Guarantee Bond

Question 33

refers to the list of instructions regarding the manner bids are to be prepared and the conditions for the award of the Contract.

Answer 33

Instruction to Bidders

Question 34

is the approved form of security furnished by the Contractor and his Surety as a guarantee of good faith on the part of the Contractor to faithfully comply with the Contract in respect of its obligations arising therefrom to its workers, subcontractors, and suppliers.

Answer 34

Payment Bond

Question 35

the approved form of security furnished by the Contractor and his Surety as a guarantee of good faith on the part of the Contractor to execute the Work in accordance with the Contract.

Answer 35

Performance Bond

Question 36

is an outline specification enumerating the type or trade names of materials required to be used by the Contractor for the Work.

Answer 36

Schedule of Materials and Finishes

Question 37

are the written or printed description of the work to be done describing qualities of the material to be used, the equipment to be installed and the mode of construction.

Answer 37

Specifications

Question 38

is the person, firm or corporation which issues the bond required of the Contractor

Answer 38

Surety

Question 39

is the least formal of the three and the smallest commitment for the requestor. Rfis are designed to collect information from a vendor with no commitment to engage in any particular project and it is likely that minimal or no project details would be provided.

Answer 39

Request for Information (RFI)