CONTRACTS AND SPECIFICATIONS CONTRACT – an agreement between two or more parties which gives rise to rights and obligations which will be enforced according to the system of law applying to the contract. TYPES OF CONTRACTS LUMPSUM CONTRACT - The contractor agrees to carry all the work for a lumpsum amount of money. - the contractor is generally bound to complete the work for the agreed upon amount of payment irrespective of actual expenditure incurred in the project. LUMPSUM AND SCHEDULE CONTRACT - This contract is suitable when the number of items is limited or when it is possible to work out exact quantities of work out exact quantities of work to be executed. SCHEDULE CONTRACT OR ITEM RATE CONTRACT - the contractor carries out various work items based on their agreed upon unit price or rate. - the contractor initially quotes rates of individual items based on the bill of quantities (boq) as furnished by the client. LABOR CONTRACT - An agreement between an employee and employer on paid job, working conditions, and the rights and obligations of each the rights and obligations of each party. TARGET CONTRACT MATERIAL SUPPLY CONTRACT - An agreement by which a seller promises to supply all of the specified goods or services that a buyer needs over a certain time and at a fixed price, and the buyer agrees to purchase such goods or services exclusively from the seller during that time. PLACE WORK AGREEMENT CONTRACT DOCUMENT - contains the bidding and construction requirements, drawings and specification. Drawings (plans, blueprints) Physical, quantitative, visual description Organized by sequence of construction * General information and site work * Structural * Architectural * Plumbing * Heating, air conditioning, and ventilation (HVAC) * Electrical * Sections numbered separately * Sections begin with list of standard symbols and abbreviations * Each drawing page shows scale and approval signatures SPECIFICATIONS Includes the following - Title Page - Table of Contents - Agenda - Bidding Requirements - Invitation to Bid - Instructions to Bidders - Information Available to Bidders - Sample forms - Agreement - Bid form - Bid bond - Performance and Payment Bonds - Other Sample Forms - Conditions of the Contract - General Conditions - Supplementary Conditions - Schedule of Drawings - Technical Specifications (Divisions 1 through 16) WHO NEEDS SPECIFICATIONS? * Contractor/Estimator * Purchasing agent * Inspector * Owner * Subcontractors * Materials and equipment manufacturers PURPOSES OF SPECIFICATIONS: o To describe the quality of different materials required for construction work. o It enables the department, engineers, architect and contractor to define, procure and check the material's quality as per specifications. o To specify the quality of workmanship and method of doing the same. o Specifications are required to clarify the drawings. o Specifications are helpful to the contractor in filling the rates of various items in the tender. o Specifications of a work serves as a guide to the supervising staff of the owner as well as the contractor to execute the work to their satisfaction. o Specifications are necessary to verify and check the strength of materials for a work. o Specification is an essential contract document and is required for arbitration (dispute between the contractor and owner) and court cases. o Specification is necessary to specify the equipment, tools and plants to be engaged for a work and thus enables to procure then beforehand.
