Winter2016

CIG 901 Construction Contracts and Project Administration

Construction Contracts
and Project Administration
Tutorial 1
Dr. Ayman Nassar
Eng. Noha Demerdash Saber
Department of Civil Engineering

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Winter2016

CIG 901 Construction Contracts and Project Administration

Outline

Importance of Contracts
Definition of Construction Contract
Parties in the construction project
Stages of the construction Project
Laws that govern the use of Contracts

Assignment

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Winter2016

CIG 901 Construction Contracts and Project Administration

Why we need to study Contracts?

1. Contracts provide a description of responsibilities.
2. Contracts bind parties to their duties.

3. Contracts can establish a time frame for duties.

4. Contracts can secure payment.
5. Contracts provide recourse when the relationship falters.

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Winter2016

CIG 901 Construction Contracts and Project Administration

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Definition of Construction Contract

An agreement to carry out construction

operations(contractor obligation) in
exchange of paid amount(owner obligation.

Winter2016

CIG 901 Construction Contracts and Project Administration

Elements of Contract Civil Law

1. The Agreement )(

2. The Object (consideration) )(

3. The Cause )(
4. The Form (if required) )(

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CIG 901 Construction Contracts and Project Administration

Conditions of Validity of
Civil Law Contract
1. Legal Capacity )(
2. Perfect Consent )(

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CIG 901 Construction Contracts and Project Administration

Defects of consent are:

1. Fraud )(

2. Mistake )(
3. Duress (Undue Influence) )(
4. Exploitation )(

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CIG 901 Construction Contracts and Project Administration

Who are the parties in a

construction project?
Main project parties:
Employer/Owner.
Consultant )usually named as Engineer(.
Contractor.

Supporting parties(not in every project):

Sub-Contractor.
Employer Agent / Project Manager.
Funder

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CIG 901 Construction Contracts and Project Administration

What are the stages of the

construction project?
The parties who involved in signing the contract are different
according to the type of contract and this depend on the nature of
the project and according to the project stage.

Project stages:
Planning
Tender
Tender preparation
Tender Evaluation

Contract Award
Buying
Construction

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Winter2016

CIG 901 Construction Contracts and Project Administration

What are the laws that govern the

contract?
Legal System
Common Law

Developed by judges through decisions of courts

More flexible than statutory law
Common law courts are not absolutely bound by precedent
Evolves through a series of gradual steps

Civil Law
Laws are written into a collection.
Judges must follow the Written collection

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CIG 901 Construction Contracts and Project Administration

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What are the laws that govern the

contract?
In Egypt
Civil Law
Administrative Law
Type of law that governs the contracts where the government is one
of its parties.

Winter2016

CIG 901 Construction Contracts and Project Administration

Assignment #1

Project Stage

Planning

Tender

Contract Award

Buying

Construction

Presence of Contract

Parties involved

Main Obligations

Remarks

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