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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
1
Contract Documents
Dr. Mohammad S. El-Mashaleh
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
2
Contract documents
• It is a universal practice in construction for the contract to be formalized by written documents
• The basic purpose of a written contract is to define exactly and explicitly the rights and obligations of each party to it
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
3
FIDIC’s definition of Contract
Sub-Clause 1.1.1 [Contract]
• means the Contract Agreement, the Letter of Acceptance, the Letter of Tender, these Conditions, the Specifications, the Drawings, the Schedules, and the further documents (if any) which are listed in the Contract Agreement or in the Letter of Acceptance
End of Quote
©F
IDIC
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
4
The agreement
• Is made between the Employer and the Contractor
• Records those items agreed to by the Parties
• Constitutes legal evidence that a contract exists and forms the basis for its enforcement
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
5
• Form annexed to the Jordanian Particular Conditions
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
6
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
7
Letter of Acceptance as defined by FIDIC99
• Letter of Acceptance
• means the letter of formal acceptance, signed by the Employer, of the Letter of Tender, including any annexed memoranda comprising agreements between and signed by both Parties
©F
IDIC
99
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
8
• If there is no such letter of acceptance, the expression “Letter of Acceptance” means the Contract Agreement and the date issuing or receiving the Letter of Acceptance means the date of signing the Contract Agreement
End of Quote ©F
IDIC
99
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
9
• FIDIC suggests the following phrasing for Letter of Acceptance:– For and on behalf of ….., we accepted the
offer contained in your Letter of Tender dated …. to [design], execute and complete the above-named works and remedy any defects therein, for the Accepted Contract Amount of ….Unless and until a formal Agreement is prepared and executed, the Contract shall comprise the following documents:
[list of documents, with appropriate references /dates]
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
10
Letter of Tender as defined by FIDIC99
• Letter of Tender
• means the document entitled letter of tender, which was completed by the Contractor and includes the signed offer to the Employer for the Works
End of Quote
©F
IDIC
99
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
11
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
12
7
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
13
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
14
General Conditions
• Define the rights and obligations of the Parties (i.e., Employer, Engineer, Contractor)
• Describe the guidelines that will be used in the administration of the contract
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
15
• In the past, the Jordanian General Conditions were known as
)الشروط العامة(عقد المقاولة الموحد •
• Which was a slightly modified version of the famous FIDIC 87 Red Book: FIDIC Conditions of Contract for Works designed by the Employer
• In 2003, Jordan decided to adopt FIDIC 1999 Conditions of Contract
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
16
FIDIC General Conditions of Contract for Construction
• Organized in 20 Clauses
1. General provisions
2. The employer
3. The engineer
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
17
4. The contractor
5. Nominated subcontractors
6. Staff and labor
7. Plant, materials, and workmanship
8. Commencement, delays and suspension
9. Tests on completion
10.Employer’s taking over
11.Defects liability
12.Measurement and evaluation
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
18
13.Variation and adjustments
14.Contract price and payments
15.Termination by employer
16.Suspension and termination by contractor
17.Risks and responsibility
18. Insurance
19.Force majeure
20.Claims, disputes and arbitration
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
19
Particular (special) Conditions
• Used to “tailor” the General Conditions for:
• The local construction market
• Project at hand
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
20
• So, we utilize these Particular Conditions to:
(1) Modify the General Conditions
(2) Delete sub-clauses in the General Conditions
(3) Add sub-clauses to the General Conditions
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
21
Content of Particular Conditions
• Make use of the General Conditions format
• Clause 1: General provisions– Modify/add/delete
• Clause 2: The Employer• Clause 3: The Contractor • And so on ……..
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
22
FIDIC Priority of Documents
Sub-Clause 1.5 [Priority of Documents]
• The documents forming the Contract are to be taken as mutually explanatory of one another
©F
IDIC
99
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
23
• For the purposes of interpretation, the priority of the documents shall be in accordance with the following sequence
• The Contract Agreement (if any)
• The Letter of Acceptance
• The Letter of Tender
• The Particular Conditions
• These General Conditions
©F
IDIC
99
Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
24
(f) The Specifications
(g) The Drawings, and
(h) The Schedules and any other documents forming Part of the Contract
• If an ambiguity or discrepancy is found in the documents, the Engineer shall issue any necessary clarification or instruction
End of Quote
©F
IDIC
99
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Dept. of Civil Eng.Hashemite University
Construction Contracts AdministrationDr. Mohammad S. El-Mashaleh
25
Order of precedence within drawings (Hutchings, 1998)
• Figures govern over scaled dimensions
• Detailed drawings govern over general drawings
• Variation orders drawings govern over contract drawings
• Contract drawings govern over shop drawings
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