CASE STUDIES

EXERCISE (1)

In the Bill of Quantities, it is mentioned that "Painting to walls shall be measured

net on the elevation, disregarding recesses, protrusions, etc.". In the
Specifications, it is mentioned that "Painting to walls shall be measured net on
the elevation."

A Contractor executed 10,000 sq.m. of wall painting in a project when measured

net on the elevation. However, if measured net on the elevation disregarding
recesses, protrusions, etc. the quantity is 8,000 sq.m.

What is the price to be paid for this item if:

a. The Bill of Quantities has less priority than the Specifications.

b. The Bill of Quantities and Specifications have the same priority.

EXERCISE (2)

A Contractor completed the finishing of (100sq.m.) of Walls of a meeting room

using solid oak wood paneling of 18mm thickness, which is priced at US$800 per
square meter. The method of installation of the paneling specified in the Contract
renders the paneling as permanently fixed (cannot be removed without
damaging the paneling).

When the work was inspected by the Engineer, it was discovered that there were
two power outlets on each of three walls of the meeting room as designed,
whereas the fourth wall had only one contrary to design which specifies two
outlets on that wall too.

The BOQ item for power outlets is priced at US$50 per outlet.

What is the appropriate remedy to this situation?

EXERCISE (3)

Identical change orders were issued to two Contractors, each performing the
same changed work. However, Contractor No. 2 was also a subcontractor of the
main Contractor (Contractor No. 1) on the first contract, so Contractor No. 2
performed the changed work in both instances. Contractor No. 1 requested a
price adjustment based on the quotation of his subcontractor, Contractor No. 2.
However, on his own contract, Contractor No. 2 settled with the Employer for an
adjustment substantially less than Contractor No. 1 had requested on the first
contract. Is this justified in principle?

EXERCISE (4)

A Contractor received a firm quotation from his supplier for a Type I

thermometer at a unit price of US$15. But, before the quotation expired, the
Employer changed the contract to call for a Type II thermometer instead, which
was available at a price of US$10. It was found that the cheapest market price
available for a Type I thermometer was US$20. How can the variation be priced?

EXERCISE (5)

A Contractor was misled by a subcontractor’s erroneous bid (not firm) into

allocating only US$20,000 to one item of work in the total job. The Employer
subsequently changed this item to a less expensive installation, costing only
US$17,000. The Employer was able to prove that it would have cost the
Contractor approximately US$30,000 (not US$20,000) to perform the original
item of work. What is the value of the variation?

EXERCISE (6)

A Contractor was delayed for reasons attributed to the Employer by a total

amount of (36) days.

However, during the same period, the Contractor was himself late without
justification for (32) days.

There was also a stoppage by Public Authorities for (6) days.

The Contractor finished the Works with an overall delay of (38) days.

The Delay Damages under Contract are US$2000 per day of unjustified delay.

The Contractor suffered extra cost due to the delay of US$2,500 per day of
delay.

What is the Delay Damages that the Employer is entitled to deduct from the
Contractor's entitlements?

What compensation is due to the Contractor?

Draw a bar chart to understand the case
Case Study 7 time extension
A contract for road construction was signed at a value of USD 1.6 million. Contract
duration was 14 months.

In month 9, the contractor was delayed by 5 months for lack of proper management and
resources. By the end of the 9th month, the client issued a new pavement design and
order to the contractor to add a second layer of asphalt in addition to curb stones and
sidewalks in the urban areas costing about USD 400,000. The quantity of asphalt in the
second layer would be equal to 75% of the quantity in the first layer. As a pre-condition,
the contractor is asked to submit a new work plan based on increase of resources for
the delayed items.

Based on the increased volume of works, the contractor claimed Extension of Time of
25% proportionate to the value of the Variation Order. He also claimed additional 2
weeks time to prepare for the mobilization for the execution of the new item of
curbstones.

Contractor’s initial Work plan

Month 1 2 3 4 5 6 7 8 9 10 11 12 13 1

Mobilisation  

Earth works                

Base course            

Asphalt (4.5 4.5

months)  ttot       months    

Curb stones and side walks        

     

How would you as the Project Manager address this situation.

The work schedule indicated that the asphalt works would start in month 7 and had not
been started and the asphalt production team would be working at less than half
capacity paving the asphalt in 4.5 months.
The 2nd layer of asphalt can start shortly after the 1st layer and can be completed 1 week
later.

Case Study 8 Change in Quantities

According to the Bidding Document , small works, Item 38.1  (Changes in the Contract Price)

”(a) If the final quantity of the work done differs from the quantity in the Bill of Quantities for the
particular item by more than 25 percent, provided the change exceeds 1 percent of the Initial
Contract Price, the Project Manager shall adjust the rate to allow for the change.”
 
A contractor (A Company) submitted a request to modify the unit price in BOQ item 13.04a
(Retaining Wall ), 13.04c ( Footing for Retaining  wall ) as in the table below

The  Initial Contract Price is 798828 Euro.

The initial prices for items 13.04 & 13,05 were far below the market price. 

As follows :
 
Item   Bill of Quantities     Final Quantities  done Variance
  uni Quantit Rat Total(Euro Quantit Rate Total(E  
t y e ) y Adjusted uro)
13.04 MC 650 70 45500 230 166.83 38370.90 7129.10
a
13.04 MC 760 65 49400 315 149.37 47051.55 2348.45
c
 
 
Q: Is the contractor entitled to compensation and if, how much?
Case Study 9 Qualification Criteria

You are preparing the Bidding Document for the procurement of 50 km 2-lane Rural Road
Project with a 800m bridge over a river

 The Intended Time for implementation 24 months.

 The estimated cost USD 25 million.
 The terrain is partly rocky
 The major schedules of the bill of quantities are below.
Bill No. 2: Earthworks
Item no. Description Unit Quantity Rate Amount

201 Excavate topsoil to maximum depth 25 cm m3 95,000

and stockpile for reuse, maximum haul
distance 1 km

202 Excavate topsoil to maximum depth 25–50 m3 15,000

cm, and dispose

203 —etc.—

206 Excavate fill material from cuttings or m3 258,000

approved borrow pits, haul up to 1 km,
deposit, shape, and compact to fill

207 Excavate rock in cuttings and dispose, any m3 25,000

depth

Total for Bill No. 2

(carried forward to Summary, p. )

Bill No. 3: Culverts and Bridges

Item no. Description Unit Quantity Rate Amount

301 Excavate in all materials other than rock m3 18,500

from ground level to underside of
foundations, maximum depth 5 m, and
dispose
 302 Excavate in all materials other than rock, m3 2,500
depth 5 m to 7.5 m

303 Provisional Item m3 500

As Item 302, depth 7.5 m to 10 m

304 —etc.—

311 Concrete class B in abutments m3 18,500

312 —etc.—

318 Mild steel reinforcement in abutments t 370

and piers up to 20 mm diameter

Total for Bill No. 3

(carried forward to Summary, p. )

Bill No. 4: Base Course and Asphalt

Item no. Description Unit Quantity Rate Amount

401 Supply, mix and compact base course m3 100,000

material 20 cm layer

402 Supply, lay and compact asphalt binder m3 30,000

403 Supply, lay and compact asphalt Wearing m3 20,000

Course

Questions
Q1. What Qualification Criteria would you recommend for this procurement, fill in the tables

2.2.1 History of non-
performing contracts
Non-performance of a contract did not occur within the last __ ( )
years prior to the deadline for application submission, based on all
information on fully settled disputes or litigation. A fully settled
dispute or litigation is one that has been resolved in accordance with
the Dispute Resolution Mechanism under the respective contract, and
where all appeal instances available to the bidder have been
exhausted.

2.2.2 Pending Litigation All pending litigation shall in total not represent more than _ percent
(____%) of the Bidder’s net worth and shall be treated as resolved
against the Bidder.
2.3.1 Historical Financial Submission of audited balance sheets or if not required by the law of
Performance the bidder’s country, other financial statements acceptable to the
Employer, for the last ____ [ ] years to demonstrate the current
soundness of the bidders financial position and its prospective long
term profitability.

(criterion 1)

(criterion 2)

_____________

2.3.2. Average Annual Minimum average annual turnover of __ million, calculated as total
Turnover certified payments received for contracts in progress or completed,
within the last years

2.3.3. Financial Resources The Bidder must demonstrate access to, or availability of, financial
resources such as liquid assets, unencumbered real assets, lines of
credit, and other financial means, other than any contractual advance
payments to meet:

(i) the following cash-flow requirement:

……………………USD …………………………

and

(ii) the overall cash flow requirements for this contract and its
concurrent commitments.

2.4.1 General Experience Experience under contracts in the role of contractor, subcontractor, or
management contractor for at least the last_ _______ [____] years
prior to the applications submission deadline, and with activity in at
least nine (9) months in each year.

2.4.2 Specific Experience (a)Participation as contractor, management contractor, or

subcontractor, in at least ___ _____ (__) contracts within the last __
______( ) years , each with a value of at least (__), that have been
successfully and substantially completed and that are similar to the
proposed Works. The similarity shall be based on the physical size,
complexity, methods/technology or other characteristics as described
in Section VI, Employer’s Requirements.

2.4.2 Specific Experience b) For the above or other contracts executed during the period
stipulated in 2.4.2(a) above, a minimum experience in the following
key activities:
2.5 Personnel
The Bidder must demonstrate that it will have the personnel for the key positions that
meet the following requirements:

Total Work
In Similar Works
Similar
Experience
No. Position
Experience
(years)
(years)

The Bidder shall provide details of the proposed personnel and their experience records
in the relevant Forms included in Section IV, Bidding Forms.

2.6 Equipment
The Bidder must demonstrate that it will have access to the key Contractor’s equipment
listed hereafter:

No. Equipment Type and Characteristics Minimum Number required