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Contract Documents

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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Contract documents

• It is a universal practice in construction


for the contract to be formalized by a
written document

• The basic purpose of a written contract


is to define exactly and explicitly the
rights and obligations of each party to it
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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• The usual construction contract consists
of a number of different documents.
Exactly which documents constitute the
construction contract is variable

• Here is a suggested list that constitute


most construction contracts:
1.Agreement
2.General conditions
3.Particular (special) conditions

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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4. Specifications
5. Drawings
6. Addenda
7. Bid bond
8. Performance bond
9. Invitation to bid
10. Instruction to bidders

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
٤

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• FIDIC in Sub-Clause 1.1.1 defines the
Contract as

Sub-Clause 1.1.1 [Contract]©FIDIC1999

• means the Contract Agreement, the Letter of


Acceptance, the Letter of Tender, these
Conditions, the Specifications, the Drawings,
the Schedules, and the further documents (if
any) which are listed in the Contract
Agreement or in the Letter of Acceptance
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
٥

The agreement

• Definition
– Document that represents and reflects the
legal contract between parties and is
traditionally made between the owner and
the contractor

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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• Purpose
– To record in written form those items
agreed to by the owner and the contractor

– Constitutes legal evidence that a contract


exists and forms the basis for its
enforcement

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
٩

General conditions

• Definition
– A document used to define the
responsibilities of the parties affected by
the contract and describe the guidelines
that will be used in the administration of the
contract

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
١٠

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FIDIC general conditions
1. General provisions
2. The employer
3. The engineer
4. The contractor
5. Nominated subcontractors
6. Staff and labor
7. Plant, materials, and workmanship
8. Commencement, delays and suspension
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
١١

9. Tests on completion
10. Employer’s taking over
11. Defects liability
12. Measurement and evaluation
13. Variation and adjustments
14. Contract price and payments
15. Termination by employer
16. Suspension and termination by contractor
17. Risks and responsibility
18. Insurance
19. Force majeure
20. Claims, disputes and arbitration
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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General conditions standard forms

• Have many advantages:


– They have become familiar to contractors,
owners, and engineers, who clearly
understand their meanings and implications
– Many of the provisions have already been
tested in courts
– Standardization has done much to eliminate
disagreements among owners, contractors,
and architects
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
١٣

Particular (special) conditions


• Are extensions of the general conditions
• Contain the special legal requirements of
the contract that apply solely to the project
at hand
• Used to:
1. Modify the general conditions
2. To affect deletions from the general conditions
3. To make additions to the general conditions

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
١٤

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Content of particular conditions

• Utilize general conditions format


• Clause 1: General provisions
– Make necessary changes:
modify/add/delete
• Clause 2: The Employer
• Clause 3: The Engineer
• And so on……………
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
١٥

Order of precedence of contract


documents
• Also called: priority of contract documents

• The general conditions usually specify the order of


precedence

• However, when a conflict exists, contract documents


are given preference in the following order:
1. Agreement
2. Specifications
3. Drawings

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
١٦

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Order of precedence within
specifications
• Within the specifications, the order of
precedence is as follows:
1. Variation orders
2. Agreement
3. Addenda
4. Contractor’s bid or proposal

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
١٧

Order of precedence within drawings

• Within drawings, the order of precedence is


as follows:
1. Figures govern over scaled dimensions
2. Detail drawings govern over general drawings
3. Variation orders drawings govern over contract
drawings
4. Contract drawings govern over standard
drawings
5. Contract drawings govern over shop drawings
Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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FIDIC Priority of Documents

Sub-Clause 1.5 [Priority of Documents]

• The documents forming the Contract


are to be taken as mutually
explanatory of one another

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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• For the purposes of interpretation, the


priority of the documents shall be in
accordance with the following sequence

• The Contract Agreement (if any)

• The Letter of Acceptance

• The Letter of Tender

• The Particular Conditions

• These General Conditions


Contracts & Specs
Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
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(f) The Specifications

(g) The Drawings, and

(h) The Schedules and any other documents


forming Part of the Contract

• If an ambiguity or discrepancy is found in


the documents, the Engineer shall issue
any necessary clarification or instruction

Contracts & Specs


Dept. of Civil Eng. Spring 2008
Hashemite University Dr. M. El-Mashaleh
٢١

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