CE181 CE Law, Contracts & Ethics: Lecture - 4 Contract Document

CE181 CE Law, Contracts & Ethics
LECTURE - 4
CONTRACT DOCUMENT
AS A REQUIREMENT
IN ESTIMATING A GENERAL ENGINEERING PROJECT
Reynaldo S. Sitjar, Civil Engineer

LECTURE - 4
CONTRACT DOCUMENT
4.0 Estimating a General Engineering Project requires

fluency in the language and symbols used in construction
drawings and a familiarity with the various components
included in the “project manual”.
4.1 Overview of the contract documents:
PART 1 - WORKING DRAWINGS
PART 2 - PROJECT MANUAL

4.1.2 Project manual which includes:
A. Technical Specifications
B. Construction Contract
LECTURE - 4
CONTRACT DOCUMENT
4.2 Measurement and the quantification of trade

works is at the core of quantity surveying and has
long been the basis of the construction industry’s
tendering systems.
4.3 The traditional document used to show this

information is a trade bill of quantities (BQ, or
sometimes referred to as BOQ) prepared by a
project clients’ quantity surveyor.
LECTURE - 4
CONTRACT DOCUMENT
4.4 If a client wishes to include a BQ as a tender

document in order to obtain a lump‐sum price for
the works, the BQ and stated quantities will
become binding on the contractor and client if
included in the construction contract.
4.5 Once becoming a contractual document, the

stated quantities take priority and can only be
adjusted with a variation order authorized by the
client’s agent, or title named in the contract with
the authority to issue a variation.
LECTURE - 4
CONTRACT DOCUMENT
1. Classify the general specification of the project per Division.

2. Break down each scope of work into many parts possible.
3. Write down the specification, brand & cost for the material.
4. Use the round-up method for inexact figures.
5. Provide allowances for breakage, wastage, or slack.
6. Compute the materials, labor, and equipment separately.
7. The cost of labor vary significantly for each type of work
done.
8. Consider rental cost of equipment, if wih operator & fuel .
9. Consider all other non-salient components and do not
simply rely on the item - “overhead cost”.
10.Unless otherwise instructed, always include contingency
costs, profit or margin, VAT, and professional fees etc.
CONSTRUCTION QUANTITY SURVEYING
1. Materials Component
2. Labor Component
3. Tools & Equipment
4. Trade Contractor or SubContractor
5. Mark – up (30% of Total Direct Cost)

3% - Contingency Cost
12% - Value Added Tax
15% - Profit
NOTE:
1. Variations or Extra < 30% TOTAL CONTRACT AMOUNT
(if unitary rate is considered)
2. The importance of understanding variations and its impact is
therefore critical in order to successfully deliver a Project as well
as be fairly compensated.
ACTIVITY 4.1
SITUATION 4.1 Consider the plans on (Page A-3 and A-4 of

Estimating Bill of Material by Vicente A. Tagayun
Considering the total Poject Cost that you get from Lesson 3
a) What will be the composition of the 30% Mark-up?
b) If the contingency is 3%, how much is it in Philippine Peso?
c) If the Value Added Tax is 12%, how much is it in Philippine Peso?
d) If the Profit is 15%, how much is it in Philippine Peso?

4.0 ESTIMATING A GENERAL ENGINERING PROJECT
CONCLUSION
4.6 Cost Estimation Models are mathematical algorithms used

to estimate the cost of the project.
4.6.1 Understanding the various modifiers that apply to the

material, labor and, equipment components of the unit price
estimate.
4.6.2 This is based on the normal working conditions, during

regular business hours, and under average conditions.
4.6.3 Site visit is essential to good estimating practice;

determining the actual site condition. It is important in
estimating; knowing the available resources within the vicinity
vital for the competetive pricing of the project.
PART 1 – CONTRACT DOCUMENT
A GENERAL ENGINEERING PROJECT
1. The working drawings are the graphic representation or

illustration of the project, and comprise the lines, symbols,
and abbreviations printed on paper that represents the
owner’s wishes, as interpreted by the architect.
2. They convey quantitative information such as how many doors

and where they are located.
3. The technical specifications however, convey information that

is more qualitative in nature such as specifying the quality of
the materials and workmanship.
WORKING DRAWINGS
4. The completed drawings become a “set,” which incorporates

all adjustments, changes, and refinements made by the
architect or engineer as the final step in design development.
5. Working drawings should comply with all applicable building

codes, including any local ordinances having jurisdiction.
6. Drawings should include all the information needed to prepare

a detailed estimate and eventually build the project.
WORKING DRAWINGS
7. Drawings should include all the information needed to prepare

a detailed estimate and eventually build the project.
8. The set of working drawings consists of various disciplines,

including:
a) Architectural, showing the layout and its use of space;
b) Structural/engineering Design of the structure;
c) Mechanical Design;
d) Electrical Design
WORKING DRAWINGS
WORKING DRAWINGS
SITE DEVELOPMENT PLAN
WORKING DRAWINGS
FIRST FLOOR PLAN
WORKING DRAWINGS
SITE DEVELOPMENT PLAN
WORKING DRAWINGS
WORKING DRAWINGS
PART 2 – PROJECT MANUAL
CSI MasterFormat is
the most widely
accepted system
for arranging
construction
specifications and
estimates.
CONSTRUCTION SPECIFICATIONS
PART 2A - PROJECT MANUAL
GENERAL REQUIREMENT
Division 01 — General Requirements
BUILDING CONSTRUCTION
Division 02 — Existing Site Conditions
Division 03 — Concrete
Division 04 — Masonry
Division 05 — Metals
Division 06 — Wood, Plastics, and Composites
Division 07 — Thermal and Moisture Protection
Division 08 — Openings (Doors & Windows)
Division 09 — Finishes
Division 10 — Specialties
Division 11 — Equipment
Division 12 — Furnishings
Division 13 — Special Construction
Division 14 — Conveying Equipment
SERVICES
Division 21 — Fire Suppression
Division 22 — Plumbing
Division 23 — Heating Ventilation and Air Conditioning
Division 25 — Integrated Automation
Division 26 — Electrical
Division 27 — Communications
Division 28 — Electronic Safety and Security
SITEWORK
Division 31 — Earthwork
Division 32 — Exterior Improvements
Division 33 — Utilities
Division 34 — Transportation
Division 35 — Waterway and Marine
PROCESS EQUIPMENT
Division 40 — Process Integration

Division 41 — Materials and Equipment Handling
Division 42 — Heating, Cooling, and Drying Equipment
Division 43 — Fluid Handling, Purificationand Storage
Division 44 — Pollution and Waste Control Equipment
Division 45 — Industry-Specific Manufacturing Equipment
Division 46 — Water and Wastewater Equipment
Division 48 — Power Generation
PART 2A - CONCLUSION
Once the plans, construction specifications, and

contract have been documented and, if
appropriate, a site visit has been conducted, then
the quantity survey or takeoff can begin.
Prior to beginning the takeoff, it may be helpful to

review basic area and volume calculations,
covered in Lesson 2 since performing an accurate
quantity takeoff requires careful area calculations
and consistent use of units.
ACTIVITY 4.2
4.2.1 Why is it important to study the contract documents

prior to preparing a bid?
4.2.2 From Lesson 2 – Construction Cost Estimate page 32;

Enlist the each materials to its corresponding CSI
Masterformat Group Name and Division Number?
THANK YOU

CE181 CE Law, Contracts & Ethics: Lecture - 4 Contract Document

Uploaded by

Copyright:

Available Formats

CE181 CE Law, Contracts & Ethics: Lecture - 4 Contract Document

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CE181 CE Law, Contracts & Ethics: Lecture - 4 Contract Document

Uploaded by

Copyright:

Available Formats

CE181 CE Law, Contracts & Ethics

Reynaldo S. Sitjar, Civil Engineer

4.0 Estimating a General Engineering Project requires

4.1 Overview of the contract documents:

PART 1 - WORKING DRAWINGS

PART 2 - PROJECT MANUAL

4.2 Measurement and the quantification of trade

4.3 The traditional document used to show this

4.4 If a client wishes to include a BQ as a tender

4.5 Once becoming a contractual document, the

1. Classify the general specification of the project per Division.

5. Mark – up (30% of Total Direct Cost)

SITUATION 4.1 Consider the plans on (Page A-3 and A-4 of

a) What will be the composition of the 30% Mark-up?

b) If the contingency is 3%, how much is it in Philippine Peso?

c) If the Value Added Tax is 12%, how much is it in Philippine Peso?

d) If the Profit is 15%, how much is it in Philippine Peso?

4.6 Cost Estimation Models are mathematical algorithms used

4.6.1 Understanding the various modifiers that apply to the

4.6.2 This is based on the normal working conditions, during

4.6.3 Site visit is essential to good estimating practice;

1. The working drawings are the graphic representation or

2. They convey quantitative information such as how many doors

3. The technical specifications however, convey information that

4. The completed drawings become a “set,” which incorporates

5. Working drawings should comply with all applicable building

6. Drawings should include all the information needed to prepare

7. Drawings should include all the information needed to prepare

8. The set of working drawings consists of various disciplines,

Division 40 — Process Integration

Once the plans, construction specifications, and

Prior to beginning the takeoff, it may be helpful to

4.2.1 Why is it important to study the contract documents

4.2.2 From Lesson 2 – Construction Cost Estimate page 32;

You might also like