Professional Documents
Culture Documents
Before we start
Contract What is your first experience with a Contract Who are we Essence of live contract For what Contractors are Roles of the Engineer, Engineers Rep and Other officers in Engineer and Employer
Out Line
Contract Payments, Types Authority Levels Types of Payment Definition of Variation Orders ICTAD Document to be refer for VO Authority for VO and contents of VO Valuation procedure for VO NWSDB procedure for VO Procurement Guile Lines
Who are we? - Engineers Representative A Person appointed from time to time by the Engineer under sub clause 5.1 (ICTAD/SBD/01)
Authority of Engineers Representative - Written authority delegated by the Engineer (Clause 5.2, ICTAD/SBD/01)
Types of Payment
Advance Payment IPC (monthly)
On Account Payments Need for even 0 IPC for price escalation
Final Accounts
On Account Payments
Authority for approval in NWSDB(General Manager)
Retention
Retention money is warranty for hidden defects during construction, including the 1-year defects liability period after project completion. Retention money is therefore released after the end of the 1-year defects liability period and when the certificate of acceptance is already issued. If the contractor wants the release of the retention money before the lapse of the 1-year defects liability period, replacement by the surety bond may be allowed.
Retention(clause 48)
The Employer shall retain from each payment due to the Contractor the proportion stated in the Contract Data subject to the limit of retention stated in the Contract data(clause 48.1, ICTAD/SBD/01).
When to release?
On Completion of the whole of the Works, first half the total amount retained shall be repaid to the contractor and second half when the Defects liability Period has passed(clause 48.2 ,ICTAD/SBD/01). Releasing against a Bond at the time of completion Reserving money to pay after D/L period
What happens when the quantity in the BOQ is not sufficient or no provision in the BOQ
Work needed to complete the entire scope(Remeasurements) Things that are nice to accompany( Variations) Things that improves the long-term sustainability(Variations) Price Escalation & others There is BOQ provision but needs engineers approval to proceed Provisional sums
Remember to refer contractual provisions
Definition of Variation
A Variation may be an addition, omission or
substitution to the design or specifications,
The Engineer, GM of NWSDB shall approve Net variation within 10% of the Contract Awarded Price. (Procurement Guide Lines).
statement prepared in accordance with a) and b) above to the CAO; HD/PD shall also submit all the documents required for the revision of TCE. b) If the net variation is within 15% of the Contract Award Price and CAO is satisfied with the HD/PD statement CAO may approve it; c) If the net variation is more than 15% of the Contract Award Price or the net variation is below 15% and CAO is not satisfied with the statement submitted by HD/PD, CAO shall refer it to a the appropriate PC assisted by the TEC; In this situation the appropriate PC shall be decide on the basis of increased amount of the contract price and not necessarily the PC relevant to the revised contract price.
Conclusion
Contract Payments, Types Authority Levels Types of Payment Definition of Variation Orders Valuation procedure for VO NWSDB procedure for VO Procurement Guile Lines
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