UNIT II.

CONTRACTS
AND
SPECIFICATIONS
Abesamis, Cheasmin Mauve M.
Lazaro, Micaella DC.
Reyes, Shekinah May Grace A.
Torres, Jeimie T.
 What is a
CONTRACT?
 CONTRACT
DIFFERENTIATED
FROM AGREEMENT
STAGES OF CONTRACT
Every contract passes through three distinct stages, namely:

a. Preparation or Conception
b. Perfection or Birth
c. Consummation or Termination
CLASSIFICATION OF
CONTRACT
1. Express and Implied Contract
2. Unilateral and Bilateral Contract
3. Consensual and Real Contract
4. Executed and Executory Contract
5. Nominate and Innominate Contract
 PRINCIPLES
OF CONTRACT
PRINCIPLES OF AUTONOMY OF
CONTRACTS
FREEDOM IN CONTRACTS

The freedom to contract as guaranteed by the

Constitution is articulated by Article 1306 of the
Code which provides that “the contracting
parties may establish such stipulations, clauses,
terms, and conditions as they may deem
convenient, provided they are not contrary to
law, morals, good customs, public order, and
public policy.”
PRINCIPLES OF MUTUALITY
OF CONTRACTS
EQUALITY OF PARTIES UNDER THE CONTRACT

Article 1308 of the Civil Code of the Philippines

emphasizes the principle of mutuality of
contracts, providing that “The contract must
bind both contracting parties; its validity or
compliance cannot be left to the will of one of
them.”
PRINCIPLE OF RELATIVITY OF
CONTRACTS
PARTIES BOUND UNDER THE CONTRACT

Article 1311. Contracts take effect only between

the parties, their assigns and heirs, except in case
where the rights and obligations arising from the
contract are not transmissible by their nature, or
by stipulation or by provision of law. The heir is
not liable beyond the value of the property he
received from the decedent.
THE FOLLOWING CONTRACTS ARE
INEXISTENT AND VOID FROM THE
BEGINNING:
1. CONTRACTS CONTRARY TO THE LAW
2. CONTRACTS CONTRARY TO MORALS AND GOOD
CUSTOMS
3. CONTRACTS AGAINST PUBLIC ORDER AND PUBLIC
POLICY
PREPARING
THE
CONTRACT
Points to reckon in contract writing
Before drafting the contract, the engineer should
among others, be aware of the following:
a) the need of the client;
b) the terms and conditions desired including the
subject matter and considerations of the contract;
and
c) legality of the contemplated contract.
Parts of a Contract (Title of
Contract)
1. Title of Contract
The title of the contract is usually at the top of the
document and generally delivered from the agreement
or dictated by the parties to the contract or their
respective.
Parts of a Contract (Salutation)
2. Salutation

This part is merely placed for the purpose of style:

and usually to impress the parties and the public who
may glance or read the contract. Often this worded in
bold letters at the left top, reading: KNOW ALL MEN
BY THESE PRESENTS:
Parts of a Contract (The Body)
3. The Body

The body is that part which identifies the contracting

parties, whether natural or judicial persons, as well as
their intention to be bound on the objects and cause as
well as to the other terms and conditions, and usually
presented in the following order;
Parts of a Contract (The Body)
a) Introduction of the parties and the agreement
This part which is usually worded "This Agreement or
Contract of _______ entered into by and between Linda C. Hiron
and Jenesis L. Huillon, etc. "describe the parties and states what
the agreement is all about. In difficult and complicated multiparty
transactions or agreement, however, and to provide a better and
easier understanding of the identify and intention parties and what
the contract is, WHEREASES" are provided to serve as a
preamble to the contract. "
Parts of a Contract (The Body)
b) Terms and conditions
This specifies in detail the terms and conditions as intended by
the parties, usually covering the following:

b.1) the subject matter which may be determinate

things, rights, or services and the cause or consideration of
the contract.
Parts of a Contract (The Body)
b.2) the mechanics of what, where, when and how,
and why in some cases, and other details regarding the
object to be delivered or the services to be rendered, i.e.
construction of a house or installation of a machine. In
connection with engineering contracts, the more
technical ones are usually embodied in the specifications
as well as other documents like plan and design, which
are incorporated in the contract by reference, hence,
becoming part and parcel of the contract.
Parts of a Contract (The Body)
c) Dispositive Clause

This part usually reading "IN WITNESS WHEREOF, we have

hereunto set our signatures etc." is affirmation of the parties to be
bound by the contract.
Parts of a Contract (The Body)
d) Date and place of execution

The date and place of execution is the reference to when and

where the contract has been perfected. These are necessary for
purposes of prescription of actions upon the contact and to
determine jurisdiction and venue of the courts in the event of legal
dispute of the contract.
Parts of a Contract (Title of
Contract)
4. Signatures of the parties
The signatures of the parties or their legal representatives are
proofs of their consent and give binding effect thereto as without
the same the instrument would just be an ordinary writing. The
signature of the instrumental witnesses of the parties sometimes
appear therein, but unless required by law, i.e., wills and
testaments, the same may be dispensed with.
 NOTARIAL
ACKNOWLEDGEMEN
T
 The acknowledgement is not a part of the contract and may
be omitted in the document especially if the parties are
personally and intimately known to and trust each other. It is
called notarial acknowledgement because the parties
acknowledged their identity as parties to the contract, and the act
as their free act and deed before a Notary Public who signs and
affixes his seal on the contract after administering an oath or
affirmation, thus, converting it into a public instrument. He also
states the document, its number, the book number, page number
and series of what year, to facilitate its identification when
registered or filed in the Notarial Registry.
MATTERS USUALLY
EMBODIED IN
ENGINEERING
CONTRACTS
 Basic is the rule that the contracting parties may stipulate
on terms and conditions that they may deem fir and convenient
as long as they are not contrary to law, morals, customs, public
policy and policy order. Guided by this, the engineer preparing
the contract must always take note, among others, of the
following which are generally contained in many engineering
contracts:
1) Workmanship according to agreed plans and
specifications;
2) Materials which must be the agreed quantity and quality or
the average if none is specified or available in the market;
3) Responsibility on compliance with legal requirements, i.e.
licenses, permit and posting of legal abstracts in the
premises;
4) Control and supervision of the work by the engineer to
fairly insure the accomplishment of the project;
5) Bonds that must be put up to secure the performance
of the contract and other liabilities to which the
client-owner may be exposed;
6) Contract modifications of the contract;
7) Risk or additional cost or penalty by reason of
defective workmanship; and
8) Mode and conditions for payment.
OTHER ENGINEERING
DOCUMENTS
There are variety of documents that usually
complement an engineering transaction. Typical
examples of these, in addition to the contract, are:

a) Specifications proper;
b) Advertisements or invitation to bidders;
c) Proposals;
d) Plans and designs and performance bond.
SPECIFICATIONS
It is the act or process of making specific
through supplying particular details.
 CONCEPT OF
SPECIFICATION
It aims at decreasing the generality or vagueness
of something by determining or supplying some
characteristics that delimit it to a more precise
coverage.
 PURPOSE OF
SPECIFICATIONS
Bidders learn from the specifications not only
the information on the nature and amount of
work they will undertake, but also derive his
own ideas on the fairness of the party preparing
the specification.
 LANGUAGE OF
SPECIFICATIONS
In writing contracts and specifications the
language which may be in the official or
prevailing language in the locality should be
clear, accurate and exact.
REQUIREMENTS OF
GOOD SPECIFICATIONS
1. Should be clear.
2. Should be brief.
3. Should be definite.
4. Should be determinate.
5. Should not be ambiguous.
6. Should not be arbitrary.
7. Should be fair.
8. Should not be unnecessarily severe.
 TECHNICAL
SPECIFICATIONS
Knowing the nature of material, the machine and the
processes involved in each case as well as other
relevant factors like commercial and physical
constraints is a must for every engineer making a
technical specification.
In addition, engineers should be able to detail for appropriate
guidance and appreciation of the following:

1. The quantity, quality and characteristics of various materials to be used

including the possible lifetime of the material.
2. The usual and practicable methods of executing the work to be done at the
cheapest without sacrificing the ends to be achieved; and
3. The methods ordinarily employed in the manufacture of the product or the
machine and in the construction, operation and maintenance of the plant or
structure.

• Need of preparing an outline

• Restoring to published specification
• Simple and detailed specifications
• Modifying the requirements in the specification
• Use of standard materials and methods
• Standard specifications prescribed by technical societies
 TECHNICAL
SPECIFICATIONS:
MATERIALS AND
PROCESSES
Outlining technical specifications of
construction work. Construction work
nowadays is undertaken into trade lines
with each trade specifying in a particular
type of work with the workers therein
adequately unionized.
The following may serve as examples of the title of the trade divisions
taken from the specification of a hydroelectric plant.

1. COFFERDAMS, EARTHWORK
2. ERECTION AND MILLWRIGHT SERVICE
3. CONCRETE WORK
4. PAINTING
5. MASONRY
6. PLUMBING, DRAINAGE, PIPING AND SWAMP PUMPS
7. CARPENTRY AND HARDWARE
8. ELECTRIC WORK
9. METAL WINDOWS
10. VENTILATION
11. GLASS, GLAZING AND CAULKING
12. TAINTER GATE MOIST
13. SHEET-METAL WORK
14. PENTSTOCK HEAD GATES HOISTS
15. ROOFING AND ROOF INSULATION
16. EARTH DAM
17. STRUCTURE STEEL AND MISCELLANEOUS METALS
18. GRANTY CRANE
In a school building construction, the following may serve as examples of
title in each trade division.

1. EXCAVATION, FILLING, GRADING

2. CONCRETE CONSTRUCTION
3. MASONRY WORK
4. STRUCTURAL STEEL AND MISCELLANEOUS METALS
5. CARPENTRY AND MILLWORK
6. FINISH HARDWARE
7. ROOFING AND WATERPROOFING
8. SHEET-METAL WORK
9. LATHING AND PLASTERING
10. INSULATION AND ACOUSTIC TILE
11. RESILIENT FLOORING
12. CERAMIC TILE
13. PAINTING
14. GAS AND GLAZING
15. PLUMBING AND SEWERAGE
16. HEATING AND VENTILATING
17. ELECTRICAL WORK AND FIXTURES
Outlining trade technical
specifications. When all the works
for the project has been identified,
each of the trade technical
specifications should be prepared.
For guidance, the following will illustrate the various section titles of a heating,
ventilating and air-conditioning specification for a small building:

22. TRAPS AND STRAINERS

1. GENERAL CONDITION 23. REFRIGERATION CONDENSER
2. COOPERATION WITH OTHER CONTRACTORS
3. SCOPE OF THE WORK
24. ZONE-REHEAT CIRCULATOR PUMP AND
4. COORDINATION OF SUBCONTRACTORS TEMPERATURE CONTROL VALVE
5. MANUFACTURER’S NAME AND NUMBERS 25. BOILER
6. AIR-CONDITIONING PLENUM ROOM 26. WALL-FIN RADIATION, UNIT HEATERS, AND
7. HEATING, VENTILATING AND AIRCONDITIONING CONNECTORS
DRAWINGS 27. SMOKE BREECHING AND BAROMETIC
8. AIR-CONDITIONING FANS DRAFT-CONTROL DAMPER
9. AIR FILTERS
28. HOT-WATER TANK HEATER
10. DESCRIPTION OF THE SYSTEM
11. HEATING, COOLING AND REHEATING COILS
29. OIL BURNER
12. STEAM AND CONDENSE PIPING SYSTEM 30. TEMPEATURE CONTROLS
13. DUCK WORK 31. OIL TANK AND PIPING
14. REHAT PIPING SYSTEM 32. PIPE, DUCT, HOT-WATER TANK, AND
15. REGISTERS, GRILLS, AND CEILING OUTLETS BREECHING INSULATION
16. STEAM AND CONDENSE PIPE FITTINGS 33. VACUUM HEATING AND BOILER FEED PUMP
17. REGIRIGERATION CONDENSING UNITS 34. EXHAUST VENTILATION AND PUMPS
18. PIPE HANGERS AD SUPPORT
35. KICTHEN HOODS
19. REFRIGERATION PIPING AND ACCESSORIES
20. VALVES
36. CONNECTIONS WITH THE ELECTRICAL
21. REFRIGERATION SYSTEM TESTING AND TRADE
CHARGING 37. GUARANTEE
38. FINAL CLEAN-UP AND INSPECTION
DESIGNS AND SPECIFICATIONS
FOR ENGINEERING WORK
Before making a design of any plant or structure, a
thorough investigation and study should be made of
the nature of the materials which must be excavated
or moved, the foundation upon which the structure
must rest, and also of the materials through which
the tunnels, foundation piles, channels, caissons
etc., must be driven.
UNDESIRABLE
PRACTICE
A common practice now is to require the
contractor to assume all risks and
responsibilities concerning the character and
the relative amounts of different materials.
 BASIS TO
DESIGNS
In every technical endeavor, the
primary consideration is the
accomplishment of the objectives or
end at the least possible expense.
DESIGN AND
FALSE
ECONOMY
To design properly any structure or plant, the
designer must be familiar with the methods
which must be used in the construction.
 ESTIMATING THE
Before making STRUCTURE
a design of any plant or structure, a
thorough investigation and study should be made of
the nature of the materials which must be excavated
or moved, the foundation upon which the structure
must rest, and also of the materials through which
the tunnels, foundation piles, channels, caissons
etc., must be driven.