CONTRACTS DEFINITION OF CIVIL ENGINEERING

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CONTRACTS:

Contract is an agreement between two or more parties creating obligations that are enforceable or recognizable at law

It establishes an obligation of each party to fulfill what it is agreed to perform.

Obligations of the employer:

1. Appointing of the engineer to administer the contract
2. Provision of the site
3. Provision of information, permits, and approvals
4. Providing funds and making payments in accordance with the contract
5. Participation

Obligations of the Contractor: 

1. Execution and completion of the works and remedying any defects therein.

2. Provision of 
a. Labor, materials, plant, and equipment needed
b. Preparation of progress report
c. Works program for execution, and updating it whenever required
d. Setting out of the works
e. Measurement and/or assisting the engineer to do so
f. Records of his personnel and equipment
g. Sample of materials specified
h. Testing and re-testing
i. Temporary works
j. Facilities for other contractors working on the site

k. Keeping the site clean, and remove rubbish

3. The contractor is required to:
a. Sign the contract when he is called to do so
b. Obtain and submit securities, guarantees, and insurance policies
c. Ensure that his representatives will be available on site at all times
d. Prepare and submit the contractor’s document, including “as built drawings” and
manuals of operation and maintenance
e. Attend to the engineer’s instructions
f. Provide access to the employer’s personnel to enter the site
g. Prepare and submit payment statement and documentation
h. To uncover works for inspection when required
i. Rectify (Correct) defective works
j. Secure or compensate the employer against any claims
k. Submit notices to the engineer whenever he encounters circumstances that may cause future claims
l. Getting approval before assigning sub-contractors or partners of the works
m. Respond for consultation with the engineer


4. Comply with the applicable laws, labor law and other local regulations.

Role of the Engineer:

Usually the employer will enter into a consultancy agreement with the engineer to design and/or supervise the works.

The engineer shall have no authority to amend the contract.
Engineer role can be:

1. As the employer’s agent:

a. Administration of the contract – dealing with the procedures, provision of information and interpretations, issuance of variations, approval of samples, etc.

b. Cost accountancy and payments

2. As a supervisor:
The engineer must ensure that the work is being performed to fulfill the contract documents.

3. As a certifier:

The engineer is required to certify or approve the payments that should be paid by the employer to the contractor. Those payments should be made periodically, mostly on monthly basis, and should depend on the quantity of works finished by the contractor.

4. As a determiner:

The engineer must act as a mediator to help the parties towards agreement in issues such as claims for reimbursement of costs or extension of time 

5. Issuance of instructions and variations

Include: issuance of additional or modified drawings, actions in relation to defective works, issuance of clarifications, giving approval, and ordering variations.