Professional Documents
Culture Documents
CONSTRUCTION PROCUREMENT
CONTRACTS
BE 5402
Suranga Jayasena
1
Some Preliminaries
Value = Price
What is Price?
if
Price = Cost + Profit : for the seller/contractor
What is Value?
Various explanations
Value-in-use: what benefit provided to the buyer
Exchange value: how much of other goods given up
Value = price: market mechanism
?
4
In a Contract
A Contract
Value
&
Price
Contracts in Procurement
Contract Development
Contracts in Procurement
The focus is on
Validity of Contracts
Legal grounds for challenge
Judicial precedents
...
No
It is on what is agreed by the parties.
7
What is agreed
...defines
Rights and
Obligations
What is to be designed
What is to be built and
How much to be paid
Contract Classification
Classification by Reward
A design contract
A building/construction contract
A design and build contract
Broadly, either
Price Based, or
Cost Based
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12
Contracts in Procurement
Broadly Two
13
Measurement Contracts
14
15
16
Allowance
A fee: which needs to be agreed.
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18
Contracts in Procurement
19
Alternative Classification
20
(and no BoQ)
21
Performance Specification
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24
Contracts in Procurement
Schedule of Rates
25
Schedule of Prices
26
28
Contracts in Procurement
Contracts
Further Comments?
Reflections?
Summarizing?
32
Thank You
33