The essential of a description in a bill of quantities is that it should satisfy the requirements laid down in the Standard Method of Measurement – SMM. Technically, if any description fails to do, it can be considered incorrect. The various clauses in the SMM indicate the essentials of the description. But more information should…
Construction machinery/equipment – Renting vs. Purchasing equipment
The purchase of equipment represents a capital investment by the construction contractor. The contractor has to recover enough money to pay the ownership cost and operating costs of the equipment during its useful life. Together, he must make a profit on the investment. Therefore, any estimate must include the cost of equipment used on the…
Bid Evaluation – Domestic Preference
According to NPA* Guidelines / Sri Lanka Domestic preference is given to local contractors, to encourage the local contractors. Eligibility for Domestic Preference Application of the Preference Domestic Preference Category I – Bids offered by bidders eligible for domestic preference. Category II – Bids offered by others. *NPA – National Procurement Agency.
Mediation – in Construction Contracts
Mediation is an effective method of preventing, managing, and resolving conflicts. However, a mediation process requires more than the appointment of a high-profile individual to act as a third party. To be effective, opponents need to be convinced of the merits of mediation. Ad-hoc and poorly coordinated mediation efforts, even when launched with the best…
Arbitration in Construction contracts
Alternative Dispute Resolution – ADR ADR has been introduced to resolve disputes in construction contracts outside the Court system. It has come to play a very significant role in resolving disputes today. What does ADR mean? Any method of resolving disputes, other than those adopted by the courts of law as part of the system…
Decision to tender in construction contract
The decision to tender for a particular contract is mainly the responsibility of the senior management of the contracting firm. There are three possible stages during the estimating and tendering process where this decision must be made. The first is during the pre-selection stage if a pre-selection is carried out. This decision would be based…
Pre-Qualification – for Construction Contracts
Construction contracts are normally awarded to a qualified bidder who is having: – Appropriate capabilities; and – Other resources. This can be achieved in two ways: a) To verify whether the selected bidder possesses the required qualifications and experience before the contract award (post qualification); b) To ensure that bids are submitted only by firms…
The implication of the public procurement system to the economic growth and development of a country
Economists distinguish between growth, by which they mean more of the same – more goods and services; and development, growth with structural and technological change. An important feature of the development is seen when goods and services enter into markets. For example, when people have meals away from home and pay for restaurant services, the restaurant sector grows up…
VALUE FOR MONEY IN PROCUREMENT
Value for money is an audit examination designed to determine whether the organization in question is performing economically, efficiently, and effectively in its use of resources, operating procedures, and in pursuit of objectives. In the private sector, the economy, effectiveness, and efficiency of their services or products are reflected in the Balance Sheet and in…
Conditions of Contract – in Works Contracts
Definition of a Contract The term contract can be defined as an agreement that is enforceable by law. Works contracts are different from other contracts. Some of the special features of civil engineering works are:- 1. One-off projects – never the same, e.g. location, time. 2. Labour is transient and recruited on an ad-hoc basis….