Consultancy in Engineering Contracts
3- Consultancy in Engineering Contracts and Contract Restoration:
We will not be exaggerating if we say that any agreement between parties shouldn’t be fixed for along period but it must be managed and reconsidered for some of its clauses. Sometimes the contract should be formulated according to new data. We provide the constantly to restore the contract or agreement in the field of any engineering contract or agreement, especially contracting.
The contracting agreements are always in a need for this service because it is a matters that are not constantly but it is evolving in an environment or system that is always in a change.
We provide technical support services for contracts and engineering claims in a way that enables the company, authority, or person to deal agreement in a clearer and more effective way to achieve the goals.
We are Always Ready to Assist Our Clients in
Consultancy in Engineering Contracts and Contract Restoration
Most important international forms for contracting:
I. FIDIC forms (the most famous forms) which are issued by (FIDIC) “International Federation of Consulting Engineers”.
II. The forms which are issued by the” Corps Engineers USA”.
III. The international contract-RIBA- forms which are issued by “Royal Institute of British Architects”.
IV. We are hoping in helping Arabic Countries to issue a form and a system for contracting.
V. We will continue our efforts to reach flexible forms for contracting which is compatible with Arabic culture.
Claims:
The contractor should allocate someone who specializes in the method of formulating and following up his own claims. The consulting engineer should be appointed by the (stakeholder) and accordingly, as an expertise, he should examine these claims.
Some of these claims:
- Delay in implementation.
- Disagreements in interpretation of specifications.
- Disagreements regarding the appointment of subcontractors.
- Disagreements regarding extending the project period.
- Disputes regarding the owner’s (and the consulting engineer’s) delay in performing his obligations:
- Or regarding handing over the site to the contractor.
- Or regarding obtaining licenses.
- Or regarding bringing materials that the owner has committed to.
- Or regarding the completion of the original or modified drawings.
- Or regarding the delay in giving approvals and responses to the contractor’s requests.
- Or other matters.
The contracting agreement has its own characteristic features:
- It is an agreement for something (a project). The condition of this project changes by the time.
- The status of each party of the agreement vary according to several parameters. Based on that an assessment for each party status has to be done accordingly, new situations to be reconsidered. Based on that an assessment for each party status has to be done accordingly, new situations to be reconsidered.
- Variations & claims are significant thing which is associated with contracting agreement.
- There are different types of contracting agreement:
(Some examples of these types):
- Turnkey job agreement.
- Lump sum prices agreement.
- Bill of quantity agreement.
- Cost plus agreement.
- Design and built agreement.
Standardization of Contracts & Contracts Forms:
- The famous contracting forms all over the world is
- FIDIC forms which issued by the (FIDIC) International Federation of Consulting Engineers.
The (FIDIC) has different books:
Red Book: For building and engineering works designed by the employer. It explains general conditions and particular conditions. It gives sample forms.
Green Book: For short form of contracts. It explains agreement, general conditions, rules for adjudication and notes for guidance.
Yellow Book: For plant and design-build. This book for electrical and mechanical plant and for building and engineering works, designer by the contractor. It explains general conditions guidance for the preparation of particular conditions forms of letter of tender contract agreement and dispute adjudication agreement.
Silver Book: Which deal the contracts of turnkey projects, discussing the condition of contracts.
- The “US Engineering Corps” forms which is issued and famous in USA.
- In UK ““Royal Institute of British Architects” issued the forms RIBA.
In Contracting Field, the Contract Mostly, by the Time, Needs Restoration:
- The project often begins with an idea, but if the project’s owner finds the body of his project on the ground, new ideas appear to him, and here the desire for changes begins that is legitimate, but based on this matter, some rights have to be given to the other party, which often requires renewal of the contract or to put some additional clauses concerning that.
- The agreement of the project is to be drafted before the project, as the progress of the project both stakeholders may be getting some new ideas which let them intend to restore contract.
- The client is often, not an engineering specialist, so when he finds the project in nature developed, he finds something new, realistic, closer and better for his uses and purposes, and this calls for changes.
- Expected errors in some drawings or some errors in implementing the drawings or any other errors that require new conditions and a change in the contract or in some of the terms of the contract or in some of its clauses. This is normal in contracting, and there must be flexibility in contracting contracts to accommodate these complexities.
- Contracting contracts must have a lot of flexibility and awareness in their formulation for the benefit of both parties to the contract.
- The contracting contract must be drafted by someone who has long experience in contracting work, with the ability to draft, and the ability to delve into understanding the details of the contracting contract and the details of contracting work and its parameters.
- Redrafting the contracting contract is important, or say preparing contract annexes for additional orders or changes that are required and repeated throughout the duration of the contract’s implementation.
The Change Order:
Construction contracts, with very few exceptions, include a clause that gives the client the right, at any time, to make variations in the character, quality, or quantity of the work that the client feels necessary. Having signed the contract, the contractor must carry out such work. There are a few exceptions to this rule; one of them being a request from
the client to perform work patently outside the general scope of the contract. In most client organizations, all such variations are made by means of a work order, a change order, or an amendment.
The Contract:
We suggest the contract to be in parts:
Part I:
Articles of Agreement—the permanent and general part of the contract, otherwise known as the General Conditions or “The General Terms and Conditions”.
Part II:
Scope of Work
Part III:
Master Schedule—the timetable for the work with milestone dates and critical path.
Part IV:
Compensation—details of contractor’s remuneration and in some cases, unit rates, and bill of quantity.
Part V:
Material—details of client furnished materials and materiel, if applicable
Part VI:
Specifications.
Part VII:
Drawings—list of numbers.
In spite the contracting activity seems not complicated it is of high professionality, so actions and reactions have to be according precise policy.
