9/23/2014

Session Timetable
Week

KA21103
Contracting and Estimation
for
Civil Engineering

1
2
3
4
5
6
7
8
9
10
11
12
13

Topics
Course Description and Introduction to Contract
Project Participants
Contractual Relationship
Essential of Contract
Types of Construction Contract
Procurement and Contracting Method
The Bid and Award Process
Bond and Insurance
Contract Administration
Estimation
Test
Build-up Rate
Measurement of Quantity and Costing

By Ir Kwong Kok Zee

Evaluation
Assignments:
Tutorial/Quizzes:
Tests:
Final Exam:
Total:

Course Description
25%
10%
15%
50%
100%

Course Objectives
To introduce the students with the principles of
construction management fundamentals that is
primarily required in any Civil Engineering
construction. This course will cover the different
components of construction effort to define the nature in
the construction in the project. This course also outlines
some management method in the civil engineering
works such as the planning process, bidding process and
administration of contract. The course is also intended to
expose the students to taking off quantity, prepare bill of
quantity and subsequently estimate the cost of
construction

This course introduces the civil engineering

students to the construction contract
administrative and management, contractual
relationship, the bid and award process,
standard contract document, types of
construction contract, Contracting method,
construction contract procedure and guideline,
type and condition of contract, taking off
quantity and prepare the bill of quantity for
structure and civil works.

The outcomes
An ability to differentiate the type of
construction contracts.
An ability to describe the type of project
delivery in construction.
Able to apply the method of estimation in
construction projects.
An ability to analyze and interpret the
constructions data to estimate the cost
involved in construction projects.

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References

Chong, H. Y. and Lim, C. C. 2013. Introduction to Construction

Contract Administration: An Approach at the Fundamental
Level. Malaysia: Pearson.

Uzairi Haji Saidin. 2014. Aturcara Kontrak dan Taksiran. 6th Ed.
Malaysia: IBS Buku.

Patt, D. J. 2011. Fundamentals of Construction Estimating. USA:

Cengage Thomson.

Ahmad Abdullah and Khairuddin Abdul Rashid. 2006.

Pengukuran kuantiti bangunan (beserta contoh kerja
berdasarkan SMM 2). 2nd Ed. Petaling Jaya: Pearson.

Lecture 1:
Introduction to Contract

By Ir Kwong Kok Zee

Contract Description
Contract = Public agency or Private corporation, is
essentially the same.
Documents may change, but the elements of the
contracts are the same.
It requires a meeting of the minds and there must be
a service and consideration.
Construction Contract is defined as an agreement
between two parties that is enforceable by law. One
party must agree to perform work for the other
party and receive payment (consideration) for the
work.

The contract must be enforceable by law,

which for all practical purposes means the
contract must be for a service that is legal.
Oral contract are essentially impossible to
enforce in construction because of the lack of
evidence regarding the scope of the
agreement.
Written contracts eliminate problems by
removing any doubt about the agreed-on
terms.

Contract Criteria

Definition of Contract

A voluntary, deliberate, and legally binding agreement

between two or more competent parties. Contracts are
usually written but may be spoken or implied.
A contractual relationship is evidenced by an offer,
acceptance of the offer, and a valid (legal and valuable)
consideration.
Each party to a contract acquires rights and duties relative to
the rights and duties of the other parties. However, while all
parties may expect a fair benefit from the contract
(otherwise courts may set it aside as inequitable) it does not
follow that each party will benefit to an equal extent.

For the contract to be valid and enforceable by law, it must meet

certain criteria.
1.
2.

3.
4.
5.
6.

Must mutual agreement or a meeting of the mind.

Must be an offer. An offer can normally be withdrawn up until
the time it is accepted, except the bid documents used in public
works generally state that the bid may not be withdrawn once
submitted.
The offer must be accepted
There must be consideration for the service performed payment.
The subject matter of the contract must be lawful. A contract to
commit a crime is illegal and not enforceable.
The contract parties must have the legal capacity to enter a
contract. Contract is signed by representatives of both the
owner and contractor (must have the legal authority to sign).

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Importance of Contract

Purpose of Contract

To create the relationship between both parties in an official

written agreement which is clearly state all the conditions and
provisions.
To protect both property owner and contractor from liability.
Outline the expectations.
Establish the perimeters by the parties involved to performed a
certain task/activity by a specified date.
As an evidence (offer and accept),
As a written explanation of the detailed responsibilities of the
participating parties in the project.

Important: must UNDERSTAND to PREVENT disputes before

signing the contract!!!

To create a relationship between the client and the contractor.

Construction projects involve several parties owners, designers,
main contractors, sub-contractors, suppliers etc. Construction
projects have great risks.
The purposes are to allocate the duties, to recognize and allocate
the risk to different parties, to reduce the uncertain of the
projects and to allow the parties to plan for the project.
All construction program are implemented by the contractor and
to be based on client instruction.
Guarantee a quality construction project, on time, within
budget and safety.
Provide legal framework and promote fairness among the
participating parties.

Formation of A Contract
1.
2.
3.
4.

Offer
Acceptance
Intention to create legal relation
Consideration

Thank you