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…
Tag: Building Engineering
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.
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…
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….
BIDDING DOCUMENT for Works contracts
Purpose of the bidding document The most significant purposes of the Bidding Document are: i) To instruct bidders on the procedure for submission of bids (steps, what to do, when, etc.); ii) To describe works to be procured (specifications / BOQ, etc.); iii) To inform the bidders of criteria for evaluation (price & non-price factors);…
Service Contracts
Definition of a service contract A contract for pecuniary interest concluded in writing between a service provider and a contracting authority, i.e. client. Definition of a service A service is a work that is not part of an organization’s core business, i.e. its main function, but which needs to be provided to carry out the…
The Building Team
The Employer The employer is also called the client or building owner. He is the organization or person who commissions the construction project. The important thing is that employer is the person who pays the cost of the work. Much of the success of a building contract will depend on the employer and the motivation…
LIME – as a construction material
Lime was used throughout the world by ancient civilizations as a binding agent for brick and stone. The concept was brought to Britain in the first century AD by the Romans