Dilla University

College of Engineering and Technology

School of Electrical
&
Computer Engineering
Course : Electrical Installation
Course Code: ECEg-4241
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Chapter-4
Contracting Electrical Installations

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 Outlines
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 Electrical Installation Contracting and Cost Estimation

 Contract Document Preparations

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 1.Electrical installation contracting


Introduction:
Contract: is a written agreement between or among two or more parties/bodies where by each
party/body promises to do or not to do something and agrees to terms(conditions and warranties)
set out in the contract.
The purposes of a contract are:
1.To describe scope of work.
2.To establish time frame.(short or long)
3.To establish cost and payment provisions.
4. To set forth obligations and relationships.
5. To manage multiple tasks.
6. To establish control mechanisms.
7. To minimize disputes.

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 Cont’d...

Types of contact:
1. Lump Sum Contract:
• In this type of contract, the contractor offers to do the whole work as shown in drawings
and described by specifications, for a total stipulated sum of money.
• It is more suitable for works for which contractors have prior construction experience.
• The experience enables the contractors to submit a more realistic bid.

2. Unit rate contract:

• Also called a schedule contract, in this the contractor undertakes the execution of work
on an item rate basis.
• The amount to be received by the contactor depends upon the quantities of various items
of work actually executed.
• Unit-price contracts are used for work where it is not possible to calculate the exact
quantity of materials that will be required.

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 Cont’d...

Contract Specifications:
Specification is defined as the designation or statement by which written instructions are given
distinguishing and/or limiting and describing the particular trade of work to be executed.
In short specification is a statement of particular instructions of how to execute some task.
The specifications should clearly specify:-
1. Design and drawing.
2. Materials/ Equipment to be used.
3. Construction/ Installation method.
4. Labour employment.
Specifications should be clear, concise, and brief descriptions of what is required to execute the
proposed trade of work.

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 Cont’d...
Specifications generally describe the following:-

• Type and quality of materials, equipment, and labour

• Methods of fabrication, installation and erection

• Standards, codes and tests

• Cost included, insurance and bonds

• Project records and site facilities.

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 Cont’d...
Two bodies participate in the construction of a building/ installation. These are:-
1.The main-contractor.
2.Sub-contractors.
•The main contractor employs another firm, called the sub-contractor, responsible to the main contractor.
•The main-contractor is responsible to the client.
A typical sequence of events is as follows:
1.The client approaches an electrician with a view to have, say, a hotel designed and built.
2.The electrician designs the building-installation and the design is approved by the client.
3.A specification and a bill of quantities are prepared.
4.The work is put out to tender, and eventually one is selected.
5.The electrician may nominate the sub-contractors

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Prepared By Instructor Aron G.
 Cost Estimation
Cost-Estimation:
Is the process of valuing on monetary expression, including the cost of all possible entrants
for the planning, implementing and monitoring stages of a satisfactory electrical
installation work or electrification project .
The cost-estimator:-
1. Must be well experienced in the practical side of the work.
2. Must know the specification of materials.
3. Must know latest market cost of materials.
4. Must know calculation of material and labor cost
5. Must also be knowledgeable of applicable rules and regulations.

NB: Consider the following additional factors also:

1.Allowance made for wastage ( Eg:- in cables, conduit, etc…).
2.Possible breakage and theft of materials.
3.Allowance made for retention and maintenance.
4.Allowance made for accommodation on the site, for work-shops, tools, etc.

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 Cont’d…
Purpose of Estimating and Costing:
1.To ensure that the money is not misused in the projects under implementation.
2.The time is saved i.e. the work is completed well in time as planned/allocated.
The following problems may come on the work started without estimating and
costing:-
It becomes very difficult to purchase necessary material in the absence of list of
material.
The money is misused by purchasing excess quantities of material from market
and the shortage of money cause the work interrupted.
Due to the above mentioned difficulties; the work may take more time for
completion and it can affect the other project which is related to the existing
project in hand.

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 Cont’d…
• For instance, for electrification of any building, estimating and costing is
necessary. The estimator will make complete planning of electrification
including designing of wiring, location of points and finally prepare a
complete estimating and costing report.
• After purchase of material according to the estimating and costing report, the
work should be completed under the supervision of some qualified
supervisor.

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 Contract Document Preparation
The main contract documents are:-
•Invitation to tender/bid
•Instruction to tender
•Form of tender
•The Agreement
•Condition of contract
•Specification
•Bill of Quantities
•Drawings
• Addenda and Appendix to tender.
The preparation of an accurate and complete electrical specification is the responsibility of
the electrical engineer and is an integral part of the project contract documentation.
The specification must be coordinated with the project electrical drawings and failure to do so
can result in significant costs and lost time for making corrections.
(See, Sample contract paper)

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 .
Questions ?
Thank you

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