GENERAL INFORMATION,

DEFINITIONS, AND TERMS

PUBLIC PRIVATE PARTNERSHIPS (PPP)

The procurement process for PPP projects

varies according to the model that is used.
PUBLIC PRIVATE PARTNERSHIPS (PPP)
Public Private Partnerships have developed
and continue to be developed in many forms
to suit the needs of particular sectors, e.g.
education, health, etc., and in some cases
subsectors, e.g. primary health care.
Pro Rata Pricing
Bill of quantities rates are composed of the
following:
Labour
Material
Plant
Profit and overheads.
Pro Rata Pricing (cont.)
The technique of pro rata pricing involves
disassembling a bill rate and substituting new
data in order to calculate a new rate that can
be used for pricing variations
 Agency. Department, Commission, or other
organization, constituted under laws, that
administers the work/Project.

Award. Agency acceptance of proposal.

Contractor. Individual or legal entity contracting

with the Agency to perform the work.

Engineer. The Chief Engineer of the Agency acting

directly or through an authorized representative
responsible for engineering and administrative
supervision of the contract.
Contract.
Written agreement between the Agency and the
Contractor detailing the obligations of each to
perform the prescribed work. The contract
includes the invitation for bids, addenda,
proposal, contract form, contract bonds, standard
specifications, supplemental specifications,
special provisions, standard plans, notice to
proceed, and change orders and supplemental
agreements that are required to complete the
work.
Acts of God.
Earthquake, tidal wave, tornado, hurricane, or
any other calamity, beyond the control of the
Agency and Contractor.
Addendum.
Contract revision developed between
advertising and opening proposals
.
Calendar Day. Every day shown on the
calendar, beginning and ending at midnight.

Change Order. Written order to the

Contractor detailing changes to the specified
work quantities or modifications within the
scope of the original contract.
 Contract Time.
Date by which work is to be completed, or
number of working days or
calendar days allowed to complete the contract.
Delay.
An event, action, force, or factor causing the
work to extend beyond the specified contract
time.
Specifications
Compilation of provisions and requirements to
perform prescribed work.
A. Standard Specifications. Book of specifications
approved for general application and repetitive
use
B. Supplemental Specifications. Approved
additions and revisions to the Standard
specifications
C. Special Provisions. Revisions to the Standard
and Supplemental Specifications applicable to an
individual project.
Measurement Units.
Specifications provide measurements in both
the inch-pound units and in the International
System of Units (abbreviated as SI, and known
commonly as the metric system).
Inch-pound units appear first, followed by
metric units inside parentheses.
The Agency will identify the system of measurements
that will be used on a particular project.
References
References. Section and Subsection titles and
headings provide reference only, not
interpretation
Abbreviations/ Acronyms
Interpret abbreviations and acronyms used in
the contract
Equipment
All machinery, tools, and apparatus, and the
fuels, lubricants, batteries, and other supplies
and parts needed to use, operate, and
maintain these items for use in constructing
and completing the work.
Extra Work.
Work within the intended scope of the
contract but beyond or varying from that
originally provided for, and that the Agency
later finds essential for the satisfactory
completion of the project.
Price risk

An amount included to reflect the estimated

increases in cost between the preparation of
the cost plan and the tender date.
Design risk

An amount included in the budget after

the elemental cost has been calculated,
based on the perceived risk that the design
may undergo changes that will impact on
the budget during Stages C and D.
Sub-contractors
Sub-contractors can be individuals or
firms who agree a contract with the
main contractor to complete a section of a
project.
Increasingly, much of the work attributed
to a general contractor is carried out by
sub-contractors
Advantages Sub-contractors
The main contractors liability to retain, on a
full time basis, all the specialists necessary for
day-to-day operations is reduced
Sub-contractors are used as and when
required, thereby reducing
overheads.
Disadvantages Sub-contractors
The disadvantages of employing sub-
contractors are:
Programming; some types of sub-
contractors may, on occasions, be difficult
to engage
Control and coordination of sub-
contractors, and
Quality of work.
 Contract Default
The Agency may declare the Contractor to
be in default if the Contractor;
Fails to begin work in the time specified.
Fails to perform the work with sufficient resources to
ensure the timely completion of the work.
Fails to meet contract work requirements or neglects
or refuses to remove and replace rejected materials or
unacceptable work.
Stops work.
Fails to resume stopped work after receiving notice
to proceed.
Becomes a party to fraud.
Escrow Account.
The account held by Agency/Client while an
agreement is being fulfilled.
Methods of Dispute
Resolution.
Methods of Dispute Resolution.
Dispute can be resolved in many ways , including;
Negotiation
Litigation.
Arbitration.
Mediation.
Dispute review boards.
Or any other novel mean.
Negotiation
Most disputes in construction have small
beginnings.
This is the time to resolve the dispute by
negotiation.
Both the parties having common objective
and some agreement may be achieved.
Litigation.

When negotiations fail to resolve the dispute.

There is no contractual guidance for dispute
resolution.
The parties do not agree on the validity of the
claim.
Court system is extremely inefficient.
Time-consuming.
Cost is very high.
 Alternative Dispute Resolution (ADR)
Techniques
Partnering; Participation in partnering must be
voluntary.
Mediation; Nonbinding method of dispute
resolution. A third party is appointed as mediator.
Arbitration; Most popular alternative to litigation.
Disputes Review Boards
Minitrials
 Responsive Bid. A bid meeting all
requirements of the invitation for bids.