Professional Documents
Culture Documents
CONTRACTS
CONTRACTUAL PROCESS
01.
MANAGEMENT
AND
GENERAL
INTRODUCTION
Construction projects can be broadly classified into the following categories;
.01 Simple buildings including housing
.02 Complex developments e.g.
Houses low and high rise can be defined by the functions they are
intended to be utilised for.
Industrial
Office blocks
Hotel buildings
Hospital buildings
Teaching buildings
Prisons
Service provision
Churches,
mosques,
temples,
clubs etc.
Every Developer is motivated by the desire to maximise on;
(i) Delivery of quality building
(ii) Maximise on profit realised at the end of the project.
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synagogues,
BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
02.
AND
GENERAL
03.
Design Team
Local Communities
CONTRACT FORMULATION
A building Contract is formulated after the Developer invites contractors to
make offers to undertake some works.
The Contract/Tender Documents are;
(a) Instructions to Tenderers
(b) Form of Tender and Qualification Information
(c) Conditions of Contract
(d) Specifications
(e) Drawings
(f) Bills of Quantities
(g) Form of Securities
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
04.
AND
GENERAL
Therefore;
Sand:
Ballast:
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
Loaders of cement
Loaders of sand
Loaders of ballast
Placers of concrete
Shs.
Shs.
Shs.
Shs.
7,274.00
1,150.00
590.00
675.00
SUB-TOTAL
Add Profit 10%
Shs.
Shs.
9,689.00
970.00
Shs.
Shs.
10,659.00
1,706.00
SHS.
12,365.00
TOTAL
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
The Design Team (If uncooperative team, the Tenderer will price high)
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
05.
AND
GENERAL
CONSTRUCTION INPUTS
There are various inputs (materials, plant, labour and financial) that the
contractor is required to put into building projects. The quantum of each input
depends largely on the projects;
Size
Complexity
Location
Financing
Politics
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
Sourcing of financing
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
Bankruptcy
abandonment
In both cases, the Client will retender and pay CURRENT PRICES IN THE
MARKET.
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
06.
AND
GENERAL
(B)
be or make unstable
(C)
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
07.
AND
GENERAL
Duties which shall include all customs and excise charges, tariffs, taxes
and other duties imposed by statutory or other authority.
(ii)
(iii)
(iv)
In early 1993, and due to varied factors, our Kenya Shilling fell from
Kshs.35.00 = U.S.$1.00 to Kshs.85.00 = U.S.$1.00 i.e. by 143% fall.
Due to the import component of our building materials and other products
indirectly used in construction industry e.g. plant and fuel the cost of such
inputs had to rise as well by a factor related to import component of each
product.
Materials inputs are classified into two categories Locally available and
imported.
Most of materials used in this country have some element of import
component
(even
it
means
petroleum
and
machines
involved
in
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
Value:
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
(B)
(C)
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
(E)
(F)
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
Cement
Sand
Aggregate
Steel
H.T. Square twisted
Round mild bars
Fabric mesh reinforcement
Structural steel
Concrete blocks
Solid
Hollow
Building stone
Clay products
G.C.I. sheeting
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
Timber
Softwood
Hardwood
Blockboard
Paint
Emulsion
Enamel
Labour
80% )
( Non-J.B.C. items
60%
20% )
11.5%
9%
Preliminaries
6%
Overheads
8%
Profit
5.5%
TOTAL
100%
This is after excluding specialist services which are executed by others and not
subject to Fluctuations.
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
Lifts
Sanitary fittings
Above items have very high IMPORT COMPONENT and the items are
excluded because either there is not enough data available to enable
smooth management of price changes or such items are tendered for just
about when needed for installation or fluctuations is INCORPORATED in
the tender.
The criteria used when deciding what to include or exclude is;(i)
(ii)
(iii)
(iv)
BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
SOURCES OF PRICES
The Joint Building Council collects prices from various manufacturers and
suppliers and meets monthly (PRICING SUB-COMMITTEE) to update the
monthly price list and it is important to indicate the basis of the prices so
included.
KABCEC collects the price lists, the JBC also collects price lists and any
other interested person within the industry may provide the JBC with
pricing data e.g. Developers, Consultants and even price control/price
regulatory bodies.
e.g.
Cement
Paint
Ballast
Timber
Saddolin
Orbit Enterprises
National Concrete
Timsales
Wood Makers
The source so chosen must be reliable and has a fairly large share of
the market.
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
Kshs.
48.00
Transport
Kshs.
15.00
Kshs.
3.00
Kshs.
66.00
Kshs.
10.56
Kshs.
76.56
TOTAL
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
shs.60/32 per Kg
January 2008
shs.67/28 per Kg
February 2008
shs.78/88 per Kg
April 2008
shs.84/10 per Kg
September 2008
shs.83/23 per Kg
November 2008
shs.76/40 per Kg
December 2008
shs.69/41 per Kg
July 2009
shs.69/30 per Kg
August 2009
shs.75/40 per Kg
August 2010
shs.75/40 per Kg
February 2011
shs.92/80 per Kg
December 2012
shs.80/93 per Kg
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
contractual so long as the base data is established at Tender stage and all
other changes so agreed just like the materials Fluctuations.
The detailed calculations of all contractual (Tender based) Fluctuations
(materials, labour and currency) are worked out interparties between the
Architect and the Contractor or at the direction of the Architect between the
Quantity Surveyor and the Contractor.
Reimbursement is as per certificate (on certificate basis) as events take place.
Materials not included in the Tender Fluctuations list do not attract
Fluctuations even when incorporated in the subsequent lists.
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
THESE
PROJECTS
NEEDED
SPECIAL
ATTENTION
TO
MITIGATE
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BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
BUILDING
CONTRACTS
MANAGEMENT
CONTRACTUAL PROCESS CTD
AND
GENERAL
Prepared by:
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