Contract Administration, Cost Planning & Control

Contract Administration

- Contracts manager & the owner must be fully aware of the construction contract

- the construction manager plays a vital role in the implementation of the different

provisions of the construction contract

• Legally enforcceable

- Both parties voluntarily agreed

• Legally competentent parties

- At least 18 yrs old

- both parties are in good condition, health condition and the their mind is properly present

during the signing of the agreement

Stages of Contract

• Preparation. Period of negotiation and bargaining. Ends when both parties achieve

agreement

• Perfection. Revision and signing of contracts

• Consummation or death. Fulfillment of the terms agreed in the contract. Retention is

paid months after you completed the project

Construction Contract Document

Specifications Working Drawings Agreement/Contract

General Conditions. They would provide the specification of construction in full details

Special Provisions. If behind scheduling, the contractors will take over the project
Contents of an ideal Contract

• Liquidated damages. Penalty per day if you did not finish the project on time

• Contractor all risk insurance. For the workers

• Assignment. Includes sub-contractor for the project

• Government law. Building permit or development permit