SCHOOL OF CONSTRUCTION TECHNOLOGY &

MANAGEMENT

Addis Collage
MSc. in Construction Technology and Management program

Construction law assignment

Group members: Id no.

1. Zinash Zemedkun CMGSR/257/2015
2. Mitiku Tefera CMGSR/259/2015
3. Anteneh Bezabih CMGSR/281/2015

Submitted to: Int. Amlaku Melesse

 Construction Law Assignment

TABLE CONTENT
1 Prequalification criteria and selection procedure for consultancy services ............................. 2
1.1 General ............................................................................................................................. 2
1.2 prequalification criteria for consultancy services............................................................. 2
2 Content of contract documents and when we consider a breach of contract is exercised in
consultancy service. ........................................................................................................................ 5
2.1 Content of contract documents ......................................................................................... 5
2.2 a breach of contract is exercised in consultancy service. ................................................. 5
3 Phase of consultancy services.................................................................................................. 5
4 Very base rights and obligations of the contracting parties in consultancy services. ............. 6
5 To identify and discuss supervision related to tasks of the consultant from the applicable
condition application condition of construction contracts. ............................................................. 7
6 Liability of the Engineer consultant. ....................................................................................... 7
7 Subcontracting in consultancy services ................................................................................... 8
8 Termination in consultancy services ....................................................................................... 8
9 Claims and settlement of disputes in consultancy services. .................................................... 9

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 Construction Law Assignment

1 Prequalification criteria and selection procedure for

consultancy services
1.1 General
A construction consultant is a professional who provides expert advice and guidance to clients in
the construction industry. They help clients with construction-related issues, such as project
planning, design, budgeting, scheduling, and quality control. They may also provide specialized
services such as building code compliance, construction claims, and dispute resolution. The role
of a construction consultant can vary depending on the project and the specific needs of the client.
To do this assignment, there are several options available that are useful for achieving this
assignment as required. This are:
➢ Use standards adopted from ERA.
➢ PPA (2011)
➢ Condition of contract for consultancy services
➢ FIDIC
➢ others

1.2 prequalification criteria for consultancy services

during the selection process of consultancy service, the check list below includes but not limited
to:
1. Evaluation Methodology:
The methodology for the evaluation of proposals will be Quality and Cost Based Selection
(QCBS). Quality and Cost Based Selection (QCBS) uses a competitive process among short-listed
firms that considers both. The technical quality and the cost of the services proposed in the
selection of the Consultant.
Quality based selection (QBS): Quality Based Selection (QBS) is a selection process to determine
the most appropriately qualified Consultant, based on technical competitiveness, integrity,
professionalism etc. leading to a negotiated award of Consultancy services on a fair and
reasonable basis. QBS does not ignore the importance of cost, but endeavors to put this into
appropriate perspective within a quality discussion.
2. Technical Evaluation Criteria
Technical evaluation criteria are the criteria used to evaluate the technical aspects of a consultant's
qualifications for a construction project. These criteria may include:

✓ Adequacy of the proposed work plan and methodology

✓ . Qualifications and competence of the key personnel for the Assignment

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✓ Experience in region and language

✓ Specific experience of the bidder related to the assignment (30% of the
mark is allotted for experience in Sub-Saharan African Countries)
✓ the consultant's experience, qualifications, references, and past
performance.
✓ They may also include criteria related to the technical components of the
project itself, such as the construction methods, materials, and timelines

3. Financial Evaluation and Comparison of Proposals:

Financial evaluation and comparison of proposals during the selection of consultants in the
construction industry is a process of reviewing and comparing the financial aspects of proposals
submitted by different consultants to determine the best option for the project. The goal of this
process is to select a consultant that offers the best value for money and meets the project
requirements and budget constraints.
Here are the steps involved in financial evaluation and comparison of proposals during the
selection of consultants in the construction industry:
1. Define project requirements: The first step is to define the project requirements and establish
the criteria that will be used to evaluate the proposals. This includes the scope of work, budget,
timeline, and any other specific requirements.

2. Request for Proposals (RFP): The next step is to issue a Request for Proposal (RFP) to potential
consultants. The RFP should include the project requirements, evaluation criteria, and instructions
for submitting proposals.
3. Review of proposals: After receiving the proposals, a team of experts reviews and evaluates
them based on the criteria established in the RFP. The evaluation includes a detailed review of the
financial aspects of the proposals, such as the proposed budget, cost breakdown, and payment
schedule.
4. Comparison of proposals: The evaluated proposals are then compared to determine the best
option based on their financial aspects. This involves comparing the proposed budgets, cost
breakdowns, and payment schedules to determine which proposal offers the best value for money.
5. Selection of consultant: The final step is to select the consultant that offers the best value for
money and meets the project requirements. The decision is based on the results of the financial
evaluation and comparison of proposals.

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To determine financial scores for each proposal, the lowest priced proposal shall be given a
financial score of 100, and other proposals shall be given a score proportionate to this, by
application of the following formula:
Sf = 100 x Fm/F in which:
Sf =denotes the financial score of the proposal under consideration.
Fm=is the price of the lowest price proposal that passed the technical evaluation.
F =denotes the price of the proposal under consideration.
A= total score (S) will be determined for each proposal, by combining its technical (St) and
financial (Sf) scores using the following formula and weightings:
S = (St x T %) + (Sf x P %)
The weights given to the scores of the Technical and Financial Proposals are:
T = 80
P = 20
Proposals will be ranked and the proposal achieving the highest total score will be recommended
for contract award, subject to satisfactory negotiations.

4. Organization and Staffing

Consultant should propose the structure and composition of its team. In addition, should list the
main disciplines of the assignment, the key expert responsible, and proposed technical and support
staff.]
5. Governments Policy
Consultants should obey Government’s policy to require that Procuring Entities, as well as Bidders
and Suppliers under Government financed contracts; observe the highest standards of ethics during
the procurement and execution of contracts.

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2 Content of contract documents and when we consider a

breach of contract is exercised in consultancy service.
The content of contract documents and when a breach of contract is exercised in consultancy
services as per FIDIC will vary depending on the specific project and the applicable contract terms.
Generally, FIDIC provides for clauses in the contract documents that allow for both the definition
of services required and the potential remedies for non-performance or breach of such contracts.
This means that the parties involved must take time to carefully review the contract and fully
understand the associated project requirements and consequences of breaches.

2.1 Content of contract documents

❖ Agreement, including all appendices.
❖ Letter of Acceptance by the Public Body.
❖ The Special Conditions of Contract.
❖ The General Conditions of Contract
❖ Bid Submission Sheet with Annexes.
❖ Technical Proposal with technical specifications.
❖ The design documentation (drawings).
❖ For Unit-price contracts: The Bill of Quantities and Price Schedule (after correction of
arithmetical errors); For Lump-sum contracts: The Breakdown of the Lump-sum Price
(after correction of arithmetical errors).
❖ Any other document listed in the special condition of contract (SCC) as forming part of
the Contract.

2.2 a breach of contract is exercised in consultancy service.

Breach of contract in consultancy services occurs when one party fails to fulfil its obligations as
outlined in the contract agreement. This can happen in various ways, such as failing to deliver
the agreed-upon services, not meeting deadlines, or not adhering to the terms and conditions
outlined in the contract. To exercise a breach of contract, the non-breaching party must first
provide the breaching party with notice of the breach and an opportunity to cure the breach
(correct it). If the breach is not cured, the non-breaching party may take legal action, such as
filing a lawsuit, seeking damages, or terminating the contract. The specific steps to exercise a
breach of contract can vary depending on the jurisdiction and the terms of the contract itself.

3 Phase of consultancy services

❖ Pre-Design Phase: This includes feasibility studies, site selection, and
development of design criteria.

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❖ Design Phase: This includes conceptual design, schematic design, design

development, and final design.

❖ Procurement Phase: This includes procurement of construction contracts and

selection of contractors.

❖ Construction Phase: This includes construction supervision and site management,

construction inspection and testing.

❖ Closeout Phase: This includes final inspection, final documentation, and closeout
of the project.

❖ Note: The specific phases and their scope of work may vary depending on
the size and complexity of the project and the procurement method used.

4 Very base rights and obligations of the contracting parties

in consultancy services.
Basic rights and obligation of contracting parties depends on the particular contract
agreement but generally contracting parties have the right to:
❖ Access the project site.
❖ Access information on the procurement process and requirements of
procurements
❖ Right to participate in procurement process
❖ Be paid for service rendered according to the contract.
❖ Have Safe working environment.

Obliged to:

❖ Comply with roles and procedures of the contract agreement.

❖ Maintain confidentiality of the contact information and documents
❖ respect and abide by all laws and regulations of the government.
❖ pay any tax owned.

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5 To identify and discuss supervision related to tasks of the

consultant from the applicable condition application
condition of construction contracts.
❖ Project Planning and Scheduling: The consultant is responsible for preparing and
updating the project plan, including the development of a detailed project schedule, in
coordination with the project team.
❖ Design Supervision: The consultant is responsible for supervising the design team to
ensure that the design meets the client's requirements and complies with applicable codes
and regulations.
❖ Contract Administration: The consultant is responsible for administering the contract
between the client and the contractor, including reviewing, and approving invoices,
change orders, and claims.
❖ Site Inspection and Monitoring: The consultant is responsible for conducting regular site
inspections and monitoring the progress of the construction works to ensure compliance
with the contract documents.
❖ Quality Control: The consultant is responsible for establishing and maintaining a quality
control program to ensure that the construction works are performed in accordance with
the contract documents and meet the required standards.
❖ Health and Safety: The consultant is responsible for ensuring that the construction site is
safe and complies with all relevant health and safety regulations.
❖ Commissioning and Handover: The consultant is responsible for overseeing the
commissioning of the works and preparing the final handover report to the client.
These tasks will vary depending on the specific requirements of the contract document, but these
are some of the common supervision related tasks that a consultant may be responsible for.

6 Liability of the Engineer consultant.

An engineer consultant can be held liable for professional malpractice if they provide incorrect or
inadequate advice or designs that result in harm or damage to a client or a third party. In addition,
consultancy firms can be held liable for any damages or losses caused by their professional
negligence or breach of contract The extent of the liability depends on various factors such as the
terms of the contract, the jurisdiction, and the specific circumstances of the case. It's important for
consultancy firms to have proper liability insurance to protect themselves and their clients in the
event of a claim. In general, engineer consultants have a duty of care to provide services that are
fit for the purpose intended, and to use reasonable skill and care in the performance of their
services.

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7 Subcontracting in consultancy services

Sub-contracting in consultancy service is eligible if the consultant considers that it does not have
all the expertise for the assignment, it may obtain a full range of expertise by associating with
individual consultant(s) or other firms or entities or by sub-contracting as appropriate. In addition,
while bidding, the consultant must obtain the permission of the Procuring Entity (employer) to
enter into a Joint Venture with other firms not invited for this assignment, unless otherwise
specified in the Bid data sheet.

8 Termination in consultancy services

Termination in consultancy service refers to the process by which a consulting engagement is
ended. This can happen for various reasons, including completion of the project, mutual
agreement, lack of progress, breach of contract, or change in business needs. The exact process of
termination depends on the terms and conditions specified in the consulting agreement between
the parties involved. It usually involves formal notification, settling any outstanding payments,
and transferring ownership of deliverables, if applicable.
Depending on the contract agreement of the parties, termination process might be initiated by:
A. By the Employer (Procuring Entity)
The Procuring Entity may terminate this Contract, by not less than thirty (30) days’ written notice
of termination to the consultant, to be given after the occurrence of any of the events specified
therein the contract agreement.
If the consultant does not remedy a failure in the performance of its obligations under the Contract,
within thirty (30) days after being notified or within any further period as the Procuring Entity may
have subsequently approved in writing.
If the consultant (Supplier) become insolvent or bankrupt.
The Supplier fails to comply with any final decision reached because of dispute settlement
proceedings pursuant to contact document.
The Supplier, in the judgement of the Procuring Entity, has engaged in corrupt, fraudulent,
collusive, or coercive practices in competing for or in executing the Contract.
If, as the result of Force Majeure, the Supplier is unable to perform a material portion of the
Services for a period of not less than sixty (60) days; or
If the Procuring Entity, in its sole discretion, decides to terminate the Contract.
B. By the consultant (Supplier)

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The Supplier may terminate this Contract, by not less than thirty (30) days’ written notice to the
Procuring Entity, such notice to be given after the occurrence of any of the events specified therein
contract agreement:
If the Employer fails to pay any monies due to the Supplier pursuant to this Contract and not
subject to dispute pursuant to contract agreement, within forty-five (45) days after receiving
written notice from the Supplier that such payment is overdue.
If the Procuring Entity is in material breach of its obligations pursuant to the Contract and has not
remedied the same within forty-five days (or such longer period as the Supplier may have
subsequently approved in writing) following the receipt by the Procuring Entity of the Supplier’s
notice specifying such breach.
If, as the result of Force Majeure, the Supplier is unable to perform a material portion of the
Services for a period of not less than sixty (60) days; or
If the Procuring Entity fails to comply with any final decision reached because of dispute
settlement proceedings pursuant to the contract agreement.

9 Claims and settlement of disputes in consultancy services.

Claims and settlement dispute in a consultancy service usually involves a disagreement between
two or more parties about certain issues mostly about the amount of money owed for a certain
project. Such claims can arise from a breach of the contract, a misunderstanding or
miscommunication between parties, or a mistake on either side. It is important to try to resolve
such disputes amicably, as delays can increase the costs and result in expensive litigation.
Some modes of settlement of disputes are:

Amicable Settlement:
An amicable settlement is an agreement between two parties to resolve a dispute or
issue without having to go to court or enter a lengthy and costly dispute resolution process.
It is typically done through negotiations between the parties or through mediation. The
Parties shall use their best efforts to settle amicably all disputes arising out of or in
connection with this Contract or its interpretation.

Litigation Dispute Settlement:

Any dispute between the Parties as to matters arising pursuant to this Contract that
cannot be settled amicably within thirty (30) days after receipt by one Party of the other
Party’s request for such amicable settlement may be submitted by either Party for
settlement in accordance with the provisions specified in their contract. parties can take
their dispute to court, where judge or jury will make decision.

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