Contract Administration

The Consulting Engineer shall have the following responsibilities for the Construction Contract:

1. Act as Client’s Engineer for Contract Administration, maintain Project Construction Records
and issue correspondence, certificates, notices and instructions on behalf of the Client to the
Contractor as may be required by provisions of the Construction Contract documents.

2. Monitor Overall Programme Budget and Contract Costs, report to the Client if costs vary from
the plan and if Contract Changes jeopardize the possibility of completing a Construction
Contract within the budget, and prepare budget and cash flow projections for the contract each
2 months and submit it to the Client.

3. Review and certify Contractor’s progress payment requests, and accompanying support data
and schedules. Verify amounts due to the Contractor based on the Consulting Engineer’s on-
site observations and contract requirements. Certify in writing to the Client payments to be
made to the Contractor within (15) working days following receipt of the invoices. The
Consulting Engineer shall withhold payment for any work, which has been rejected, or any
work, which are not in compliance with the contract documents.

Note: Such certifications shall constitute a representation to the Client that work has
progressed to the point indicated and that to the best of the knowledge, information and belief
of the Consulting Engineer the work is in general accordance with the contract documents and
acceptable engineering practice “and such does not constitute a guarantee or warranty, either
expressed or implied” (These certifications are subject to adjustment should defective
materials or workmanship became evident prior to Final Acceptance).

4. Issue certification of Substantial Completion. Review and certify the request for Final
Payment submitted by the Construction Contractor to the Client at the completion of
construction, review the calculations for final payment to the Contractor accounting for all
guarantees and retainage in accordance with the actual work performed. A final report will be
submitted to the Client that to the best of the Consulting Engineer’s knowledge and belief the
work has been completed in an acceptable manner and recommending final payment and
release of retention sums.

5. Negotiate with Construction Contractor, as required and make recommendations to the Client
regarding costs for works not specified in the contract documents.

6. Determine the value of the works at the date of termination, in the event of the termination of
the contract.

7. The Consulting Engineer should clearly identify any Variation Orders as being issued under
one of the following categories:

 Variations, which alter, amend or delete items contained in the Contract and which
variations does not alter the Scope of Works and is not charged against contingencies
and which does not increase the Contract Value.

 Variations, which increase the Contract Value and requires the commitment of
additional funds.

 Variations which are charged against contingencies as follows:

The Consulting Engineer shall have the Client’s authority to issue variation orders
which result in the expenditure of up to a net value of 50% of the total Contingency
Sum contained within the Contract Value, provided that no one variation exceeds
10% of such authorised allowance.

Any Variation Order in excess of such 10% of the said authorised allowance shall
require the written approval of the Client prior to its issue.
8. Manage all claims activities and provide expert advice regarding the handling of the claims
made. The Consulting Engineer shall review Contractor’s claims and justifications for
extension of time or compensation for additional work or unusual conditions on an expedited
basis, and prepare a detailed written analysis and make recommendations to the Client for
consideration and approval. Final responses by the Consulting Engineer to the pertinent
contractor on each claim presented, shall constitute the “Consulting Engineer’s Decision”.

9. Review the Construction Contractor CPM construction schedule and monitor schedule
compliance. In the event that non compliance with the schedule is noted, instruct the timely
completion of the works, and inform the Client accordingly.

10. Receive and catalogue all samples, drawings, instructions, manuals, certifications and
correspondence submitted by the Construction Contractor.

11. Review, revise as necessary and obtain Client’s approval, of lists of recommended operating
spare parts and supplies, prepared by the contractor and instruct the Contractor as to those
items that they shall procure for the Project.

12. Prepare monthly progress reports setting forth in a narrative form the progress of the project
work during the reporting period. Include pertinent illustrative photos. See Submittals for
details.
Submittals:
Monthly Progress Report:

The Consulting Engineer shall submit five (5) copies of a monthly progress report to the Client, for the
Construction Contract, not later than the tenth working day of the following month, subject reports
shall, as a minimum, include the following:

1. An Executive summary of current activities. This shall include status of drawings approved
for construction and materials procurement, comments on the Contractor’s Quality Control
Programme, construction elements, safety programme, cash flow, variation orders, important
decisions, approvals issued, major meetings, and other significant activities.

2. Discussion of major problem areas, current or foreseen, together with recommendations for
resolving these problems and the schedules for their resolution.

3. Anticipated activities for the coming month.

4. A status report of the Consulting Engineer’s staff and Construction Contractor’s staff. The
report shall include arrivals and departure dates of key personnel, employment and
termination dates of personnel and a man-month summary indicating to date and projected
contract man-months per major task. The section of this report dealing with the engineering
staff shall include a comparison of the initial breakdown of tasks on a person month basis
(scheduled) with the actual accruals.

5. Presentation of progress accomplished versus progress scheduled in curve or bar chart form.
In addition, summary CPM schedule updates are to be included when appropriate. A
discussion is to be included for any significant actual or potential slippage in schedule and the
steps being taken to avoid delays or increase production.

6. Subject reports shall be supported as required, by statistical tables, charts, financial

information, selected photographs, or other information that will contribute to concise, yet
comprehensive report.

Monthly Financial Summary:

The Consulting Engineer, shall submit in three (3) copies a monthly cost report for the contract
showing contractual obligations, costs to date, variation orders issued, anticipated variation orders and
estimated cost to complete. Subject summary is to be distributed in same quantities as monthly
progress report except that it is not to be distributed to the Construction Contractor and it is to be
submitted separate from the Monthly Progress Report.

Final Report:

At the expiration of the pertinent Maintenance Period, the Consulting Engineer shall conduct a final
inspection and performance evaluation for the contract. The Consulting Engineer shall evaluate the
technical performance of the facilities and examine all works for completion and conformance to
contract requirements. Five (5) copies of final report shall be submitted which describe any deficiencies
noted in the facilities, includes a final inspection certificate and, if appropriate, recommends final
acceptance of the works.
Review of Contractor Submittals and Test Witnessing
The Consulting Engineer shall review and approve all submissions required from the contractor in
accordance with the contract. These shall include:

 Schedules
 Safety Procedures
 Shop Drawings
 Proposed List of Spares for Operation & Maintenance
 Operation & Maintenance Manuals
 As-Built Drawings

The Contractor will be required to retain the services of a consultant to prepare Operation &
Maintenance Manuals.

Technical Staff Requirements

The Consultant

The Consultant has to submit his own estimate for the technical staff required to complete the whole
work (Design & Supervision) in a form of schedule stating the title, the number required, the
experience (general & in similar projects), the total man month for each. The said schedule will be
subject to review and acceptance by the Client in case of Tender awarded.

Nomination of Personnel

The Consulting Engineer shall nominate suitably qualified and experienced personnel to supervise the
construction of the project works. The Consulting Engineer shall provide to the Client detailed
Curriculum Vitae of all personnel proposed for employment including copies of relevant certificates.

Approval of Personnel

Personnel to be employed by the Contractor and the Consulting Engineer shall be approved in writing
by the Client before the nominated person arrives in the UAE or prior to employment on this project if
the person concerned is already in the UAE. Approval does not relieve the Consulting Engineer of his
responsibilities or duties prescribed in this document. Personnel shall be replaced only with the written
approval of the Client.

Qualifications

All technical personnel must be graduates of recognised universities and / or registered professional
engineers or members of relevant technical societies.
Scope of Work
The intended design shall comprise but not limited to the following:

1. The Outline or Initial Design

The Preliminary Design and the Preliminary Cost Estimate
The Detailed Design and the Detailed Cost Estimate
The Detailed Drawings
The Specifications
The Bills of Quantities
The Prime Contract Documents …etc

2. Presentation of complete sets of Construction Tender Documents to be released to the prospective

tenderers and responding to all queries raised during tendering period.

3. Presentation of Tender Cost Estimate

4. Evaluation of Construction Tenders and to produce a recommendation report

Construction Supervision Works

The Consultant shall perform proper supervision of all construction activities to ensure that all the
works are being constructed in accordance with the design documents. The services to be provided
during construction shall include the following:

 Pre-Construction Activities

 Contract Administration

 Construction Monitoring

 Start Up, Operation & Maintenance

 Services as Required during Maintenance Period

Pre-Construction Activities
Project Familiarization

The Consulting Engineer shall thoroughly familiarise his staff with the documents comprising the
construction contract including the Instruction to Tenderers, addenda, and other documents necessary
to insure their understanding of the project works and the contract.

Pre-Construction Meeting

Prior to the initiation of the Construction activities the Consulting Engineer will hold a pre-construction
meeting with the prime Contractor. This meeting will cover procedural matters and specific project
requirements to minimize problems during construction. The Consulting Engineer will preside at the
meeting, keep minutes and arrange for the distribution of the minutes to the attendees.

Items to be covered shall include:

Introduction of Key Personnel and lines of authority

Quality Assurance Procedures and Quality Control Programme (QAP & QCP)
Correspondence Distribution
Shop Drawing Procedures
Maintaining Record Documents
Construction Schedules
Construction Milestones & Critical Work Sequencing
Variation Orders Procedures
Co-ordination with Client’s Organisation
Emergency Procedures & Telephone Numbers
Progress Meeting Schedules
Invoicing Procedures
Offices, Storage Areas, Security, Housekeeping etc.

Proper identification and understanding of key project procedures and guidelines and an understanding
of scheduling and milestones will help to insure construction progress in line with construction
schedule.

Notices to proceed and notices to commence

The Consulting Engineer shall prepare and issue notices to proceed with mobilization and notices to
commence work in accordance with applicable contract and items of this section.

A. Relative to Quality Control Programme

Prior to issuing any notice to proceed with mobilization, the Consulting Engineer shall certify that
in accordance with the contract the Contractor has submitted a Quality Assurance Programme
(QAP) for the work involved, which is acceptable to the Consulting Engineer.

B. Relative to Construction Risk Management Programme (CRMP)

Prior to issuing a Notice to Proceed, the Consulting Engineer shall certify that in accordance with
the Contract Risk Management Programme (CRMP) which meets the requirements of the contract
document.