Traditional Contracting

Dr. Rana Humayun Ihsan

 Traditional Contracting

 Design – bid – build:

 Owner
 Consultant (Architect/Engineers)
 Main Contractor
 Subcontractor
 Subcontractor Electrical
 Subcontractor Mechanical
 Subcontractor (if any)
 Traditional Contracting
 Main groups in construction projects:
 Owner—A person or an organization that initiates and sanctions a project. He or she
requests the need of the facility and is responsible for arranging the financial
resources for creation of the facility.
 Designer (A/E)—This consists of architects or engineers or consultants. They are
the owner’s appointed group accountable to convert the owner’s conception and
needs into the specific facility with detailed directions through drawings and
specifications within the economic objectives. They are responsible for the design of
the project and in certain cases supervision of the construction process.
 Contractor—A construction firm engaged by the owner to complete the specific
facility by providing the necessary staff, work force, materials, equipment, tool, and
other accessories to the satisfaction of the owner/end user in compliance with the
contract documents. The contractor is responsible for implementing the project
activities and to achieve owner’s objectives.
 Traditional Contracting

 Construction project life cycle:

 1. Conceptual design
 2. Schematic design
 3. Design development
 4. Construction
 5. Testing, commissioning, and handover
 Traditional Contracting

 Construction project life cycle:

 1. Conceptual design
 Identification of need and objectives (TOR or terms of reference)
 Identification of project team
 Data collection
 Identification of alternatives
 Time schedule
 Financial implications/resources
 Development of concept design
 Traditional Contracting

 Construction project lifecycle:

 Schematic design
 General scope of works/basic design
 Regulatory/authorities approval
 Schedule
 Budget
 Contract terms and conditions
 Traditional Contracting

 Construction project lifecycle:

 Design development
 Regulatory/authorities approval
 Contract documents and specifications
 Detailed plan
 Budget
 Estimated cash flow
 Contract documents
 Bidding and tender documents
 Traditional Contracting

 Construction project lifecycle:

 Construction
 Mobilization
 Execution of works
 Planning and scheduling
 Management of resources/procurement
 Monitoring and control
 Quality
 Inspection
 Traditional Contracting
 Construction project lifecycle:
 Testing, commissioning, and handover
 Testing
 Commissioning
 Regulatory/authorities approval
 As built drawings/records
 Technical manuals and documents
 Training of user’s personnel
 Hand over facility to owner/end user
 Move in plan
 Substantial completion
 Traditional Contracting

 Principles of Quality in Construction Projects:

 Meeting the customer’s need
 Customer satisfaction
 Fitness for use
 Conforming to requirements
 Degree of excellence at an acceptable price
 Traditional Contracting
 Principles of quality in construction projects:
 Principle 1 Owner, consultant, and contractor are fully
responsible for application of the quality management system to
meet the defined scope of work in the contract documents
 Principle 2 Consultant is responsible for providing owner’s
requirements explicitly and clearly defining in the contract
documents
 Principle 3 Method of payments (work progress, material,
equipment, etc.) to be clearly defined in the contract documents.
Rate analysis of bill of quantities (BOQ) or bill of materials
(BOM) item to be agreed before signing of contract
 Traditional Contracting

 Principles of quality in construction projects:

 Principle 4 Contract documents should include a clause to settle
the dispute arising during construction stage
 Principle 5 Contractor should study all the documents during
tendering/bidding stage and submit his or her proposal taking
into consideration all the requirements specified in the contract
documents
 Principle 6 Contractor shall follow an agreed upon quality
assurance and quality control plan; consultant shall be
responsible for overseeing the compliance with the contract
documents and specified standards
 Traditional Contracting

 Principles of quality in construction projects:

 Principle 7 Contractor is responsible for providing all the
resources, manpower, material, equipment, and so on to build the
facility as per specifications
 Principle 8 Contractor shall follow the submittal procedure
specified in the contract documents
 Principle 9 Each member of project team should participate in
all the functional areas to continuously improve the quality of
the project
 Traditional Contracting

 Principles of quality in construction projects:

 Principle 10 Contractor is responsible for constructing the
facility as specified and use the material, products, equipment,
and methods that satisfy the specified requirements
 Principle 11 Contractor to build the facility as stipulated in the
contract documents, plan, specifications within the budget and
on schedule to meet owner’s objectives
 Principle 12 Contractor should perform the works as per the
agreed upon construction program and handover the project as
per the contracted schedule
THANK YOU
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