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…
Tag: Building Engineering
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
Glass – as construction material
The term glass refers to materials, usually blends of metallic oxides, mainly silica, which do not crystallize when cooled from the liquid to the solid state. It is the non-crystalline or amorphous structure of glass that gives rise to its transparency
Case Law – if the Contract Administrator is not acting impartially
The Engineer/Architect/Contract Administrator is not acting impartially if he allows the employer to interfere with his independent judgment when issuing certificates.
Case Law – Omissions
Under many standard contract conditions, there is a provision permitting the contract administrator to initiate any variation to the works.
Case Law – Power needed to issue variations
Legally a variation can be defined as an agreement between parties supported by consideration to change some terms of the contract between them.
Case Law – Is it a Variation or Not?
In a construction contract, it may be in the form of a change to the original design, quality, or quantity of the works set out in the original scope of works under the contract.
Variations
Variations can be defined as changes to the design, quality, or quantity of the works set out in the original scope of works under the contract. Therefore, normally it will result in either increase or decrease from the contract sum.