Project Administration Handbook for Civil Engineering Works 2008 Edition AMENDMENT NO.

7/2009 (July)

CHAPTER 5

CONTRACT DOCUMENTS

CONTENTS
(a) New paragraphs Add the following new paragraphs after Para. 9.33:9.34 CONTRACT MEASURES FOR IMPLEMENTATION OF EMERGENCY COMMAND SYSTEM INDEPENDENT CHECKING OF THE DESIGN, ERECTION, USE AND REMOVAL OF TEMPORARY WORKS

9.35

(b) Para. 10

Add WITH FIRM BILLS OF QUANTITIES at the end of the title.

(c) Appendix 5.7

Amend NOT USED to UNDERTAKINGS BY CONTRACTOR ON THE USE OF GOVERNMENT DIGITAL MAP DATA. Amend NOT USED to CONFIRMATION BY CONTRACTOR ON CESSATION OF THE USE OF GOVERNMENT DIGITAL MAP DATA. Amend NOT USED to PARTICULAR SPECIFICATION FOR INDEPENDENT CHECKING OF THE DESIGN, ERECTION, USE AND REMOVAL OF TEMPORARY WORKS. Amend NOT USED to PRACTICE NOTE FOR THE USE OF LUMP SUM BILLS OF QUANTITIES CONTRACTS FOR CIVIL ENGINEERING WORKS. Amend NOT USED to AMENDMENTS TO THE STANDARD METHOD OF MEASUREMENT FOR CIVIL ENGINEERING WORKS (1992 EDITION).

(d) Appendix 5.10

(e) Appendix 5.11

(f) Appendix 5.12

(g) Appendix 5.13

Amendment No. 7/2009

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I. (h)

ABBREVIATION
Add the following meaning of abbreviation:Abbreviation OGCIO Term Office of the Government Chief Information Officer Standard Phraseology of [Bill of Quantities] Item Descriptions

SPID

PARAGRAPH 1.1
(i) Para. 2

SELECTION OF TYPE OF CONTRACT

Amend WBTC Nos. 17/95 and 17/95A promulgate to Paragraph 10 stipulates in the 1st sentence of the 2nd sub-paragraph. Amend WBTC No. 17/95 to Paragraph 10 in the 2nd sentence of the 2nd sub-paragraph.

(j) Para. 2

PARAGRAPH 6.1
(k) Para. 6.1

GENERAL SPECIFICATION
Replace the whole Paragraph 6.1 with the following (words in blue and bold):6.1 GENERAL SPECIFICATION (Ref. WBTC No. 18/92)

The latest edition of the General Specification for Civil Engineering Works (GS) and its amendments can be found on the CEDD website. The GS covers general requirements and may need varying degrees of amplification and modification to suit individual contracts, e.g. on the general description (major items only) of the Works, the list of Drawings, works by other contractors on the Site running concurrently with the Works under the contract. Amplifications and modifications to the GS should be made in the Particular Specification (PS), with the approval of an officer at D1 rank or above administering the contract. It is essential to ensure that the PS does not alter or conflict with the GCC or SCC. Copies of the GS need not be reproduced in contract and tender documents. The incorporation of the GS into the contract is effected by reference in the PS. If any amendments have been issued, the attention of the tenderers should be drawn to the specific websites where the amendments are available or the amendments should be incorporated in full in the tender documents.

(l) Para. 6.2(xiii)

Amend WBTC No. 3/97 to Paragraph 9.35 in the 1st sentence of the paragraph.

PARAGRAPH 7.1
(m) Title

GENERAL
Add (Ref.: WBTC No. 18/92, 21/93, 21/93A and 21/93B) at the end of the title.
Page 2 of 12

Amendment No. 7/2009

(n) Para. 2 and 3

Replace the 2nd and 3rd sub-paragraphs with the following (words in blue and bold):Provided that the construction works are measured according to the Standard Method of Measurement for Civil Engineering Works 1992 Edition (SMM) and conform to the General Specification for Civil Engineering Works 2006 Edition (GS), the BQ should be prepared in accordance with the SMM and the Standard Phraseology of [Bill of Quantities] Item Descriptions (SPID) as the standardized method for composing works-contract bill of quantity items. The latest edition of the SMM and its corrigenda can be found on the CEDD website. In the interest of uniformity the SMM shall be strictly followed for the measurement of items it covers. Only where this is not practical or where the SMM does not cover the item required should any amendment or additional to the SMM be made. Amendments or additions to the SMM should be made in the form of a Particular Preamble which shall follow the General Preambles in the contract documents and shall be submitted to an officer at D1 rank or above administering the contract for approval. It is not necessary to reproduce a copy of SMM in contract and tender documents. The incorporation of the SMM into the contract is effected by reference in the Particular Specification. Since it is a requirement of Clause 59(1) of the General Conditions of Contract for Civil Engineering Works, 1999 edition, that the Method of Measurement to be used in the contract is that which is stated on the Preamble to the Bills of Quantities, it is essential that the General Preambles detailed in Part IV of the SMM are included in every contract document. Due attention is drawn to the amendments made to SMM regarding the use of lump sum BQ contracts in Paragraph 7.4.2 and Paragraph 10. The quantities in the lump sum BQ contract must be measured accurately and regarded as firm, not subject to remeasurement. Where quantities cannot be measured accurately, the respective items in the BQ should be marked as provisional.

PARAGRAPH 7.4.2
(o) Para. 7.4.2

Provisional Quantities under a Lump Sum Contract with Firm BQ

Amend WBTC Nos. 17/95 and 17/95A to Paragraph 10 in the last sentence of the paragraph.

PARAGRAPH 8.4
(p) Para. 8.4

ELECTRONIC DRAWINGS
Replace the whole paragraph with the following (words in blue and bold):8.4 ELECTRONG DRAWINGS (Ref.: WBTC No. 7/2000 and ETWB TCW No. 7/2000A) If tender/contract drawings are available in electronic form, a

Amendment No. 7/2009

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tenderer/contractor may ask the Engineer designate/Engineer for the supply of additional copies of such tender/contract drawings in electronic form for the purpose of preparing/administrating his tender/contract. The charges for supplying electronic drawings are announced by DEVB periodically. The current charges as announced via SDEVs memo ref. (01TT1-01-1) in DEVB(W) 511/70/02 dated 7.8.2008 are as follows: (a) (b) Handling Charge - $28 per drawing Material Charge Unit Charge (HK$) $1.4 $1.3 $1.9

Material (i) 1.44MB Floppy Disc (ii) 700MB CD-ROM (iii) 4.7GB DVD+/-R

The electronic drawings should only include the data files. They should not include any executable programmes.

Before electronic drawings are issued, the tenderers/contractors should be asked to confirm their acceptance of the following terms of use on electronic drawings. (a) When electronic drawings are issued, the Engineer designate or the Engineer should advise the tenderer/contractor in writing that while every care has been taken to check the integrity of the electronic drawings, no guarantee can be given that the electronic drawings are free from computer viruses and that neither he nor the Employer will be responsible for any direct or consequential damage or losses resulting from any computer viruses that may be contained in the electronic drawings. The tenderer/contractor should also be advised that electronic drawings are issued only for the convenience of the tenderer/contractor and they do not form part of the tender/contract documents. There may be a loss of fidelity when the drawings are displayed on the tenderers/contractors system because the preservation of fidelity will depend on proper system settings. If there are discrepancies between the electronic drawings and the tender/contract drawings in hard copy format, the latter should prevail. The Employer and the Engineer or the Engineer designate will not accept any liability arising from any discrepancies between the electronic drawings and the tender/contract drawings.

(b)

Furthermore, If the electronic drawings contain digital map data supplied by the Lands Department, the Engineer designate or the Engineer shall require the tenderer or, as the case may be, the contractor to provide a duly signed undertaking in the form set out in Appendix 5.7 before these electronic drawings are issued.

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To assure authenticity, the Engineer designate or the Engineer shall digitally sign electronic drawings with the digital certificates issued by Certification Authorities approved by the Office of the Government Chief Information Officer (OGCIO) under the Electronic Transactions Ordinance (Cap. 553). If the tenderer/contractor has provided an undertaking on the use of Government digital map data, the Engineer designate or the Engineer shall check that the tenderer/contractor has executed and returned the "Confirmation by contractor on cessation of the use of Government digital map data" set out in Appendix 5.10 on the tenderer submitting its tender or the contractor having completed the relevant work.

PARAGRAPH 9.34
(q) New para. 9.34

CONTRACT MEASURES FOR IMPLEMENTATION OF EMERGENCY COMMAND SYSTEM

Add the following new paragraph after paragraph 9.33:9.34 CONTRACT MEASURES FOR IMPLEMENTATION OF EMERGENCY COMMAND SYSTEM

In August 2008, DEVB introduced the Emergency Command System (ECS) to deal with exceptional emergency incidents. To facilitate the implementation of the ECS, a set of contract measures was promulgated for incorporation into maintenance/term contracts. Please refer to Chapter 8 Paragraph 5.7 for the details of the ECS and the contract provisions.

PARAGRAPH 9.35

INDEPENDENT CHECKING OF THE DESIGN, ERECTION, USE AND REMOVAL OF TEMPORARY WORKS
Add the following new paragraph after paragraph 9.34 (words in blue and bold):9.35 INDEPENDENT CHECKING OF THE DESIGN, ERECTION, USE AND REMOVAL OF TEMPORARY WORKS (Ref.: WBTC No. 3/97) A Special Condition of Tender (SCT 3 promulgated under ETWB TCW No. 26/2004), Special Condition of Contract (SCC 26 promulgated under WBTC No. 18/2000), and a Particular Specification (PS) item (see Appendix 5.11) have been prepared to enable officers responsible for preparing tender documents to require the Contractor to provide for independent checking of the design, erection, use and removal of selected Temporary Works. SCC 26 promulgated under WBTC No. 18/2000 clarifies the Engineers' duty. The Engineer is required to examine the Contractor's design details concerning the design, erection, use and removal of the Temporary Works and shall satisfy himself that it contains no obvious deficiency and that the independent checking engineer has carried out his duties with reasonable skill and care in certifying that the

(r) New Para. 9.35

Amendment No. 7/2009

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Temporary Works have been properly and safely designed. The responsibility for the Temporary Works remains with the Contractor but no work shall be commenced until the Engineer has issued his consent in writing upon making such verification. Under the revised SCC, the Contractor is additionally required to provide to the Engineer certified method statements in connection with the erection, use and removal of the designed Temporary Works. The decision to incorporate any of the above documents i.e. SCT 3 promulgated under ETWB TCW No. 26/2004, SCC 26 promulgated under WBTC No. 18/2000 and the PS item (Appendix 5.11) in tender documents is a matter for the professional judgement of the Engineer and it is recognised that the type and complexity of Temporary Works to be used by the Contractor cannot always be accurately foreseen at the design stage. The following guidelines may be of assistance at tender documentation stage : (i) The above documents shall only be used where the design of the Temporary Works is the responsibility of the Contractor, and not the Engineer. Where no part of the Temporary Works is assessed as requiring the particular submission of drawings or calculations or design checking, none of the above documents need to be included in the tender documents. During construction the Engineer will be able to call for details under Clauses 7 and 16 of the General Conditions of Contract (GCC), but will have to pay for any additional independent checking, being beyond the scope of merely providing details. If the project designer wishes to examine tenderers' proposals for undertaking more complex or extensive Temporary Works at tender assessment stage, then use of SCT 3 promulgated under ETWB TCW No. 26/2004 may be considered together with SCC 26 promulgated under WBTC No. 18/2000. During construction, the Engineer will be able to call for more details under GCC 7 and 16. Use of the SCC 26 promulgated under WBTC No. 18/2000 and/or the PS item (Appendix 5.11) should be considered if it is thought likely the Temporary Works will be extremely complex or innovative, or the potential consequence of any failure is likely to be severe. Temporary cut or filled slopes and excavations and access platforms may require method statements. These can be called for under GCC 16. It is matter of judgement for the Engineer as when to require certificates for the erection, use or removal of Temporary Works.

(ii)

(iii)

(iv)

(v)

(vi)

Many failures of Temporary Works have been the result of insufficient consideration of ground conditions. The design of

Amendment No. 7/2009

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Temporary Works must take this into account. SCT 3 promulgated under ETWB TCW No. 26/2004 may be used independently of the PS item (Appendix 5.11) and SCC 26 promulgated under WBTC No. 18/2000. In respect to Temporary Works generally, designers may find the following publications useful : (i) Technical Report TRSC 4, issued by the Concrete Society and the Institution of Structural Engineers; provides useful guidance where Temporary Works are classified as falsework. BS5975:1982 (Code of Practice for Falsework). Appendix B in the Structures Design Manual for Highways and Railways for the design of protective measures for Temporary Works.

(ii) (iii)

Should the Engineer be dissatisfied with the independent checking engineer, the Engineer, having given reasonable notice of dissatisfaction, may order the dismissal and replacement of the independent checking engineer by the Contractor. Sub-clause (5) of GCC 7 affords basic protection to the Engineer from taking over responsibility for the Contractor's design of Temporary Works. Sub-clause (5) of SCC 26 promulgated under ETWB TCW No. 26/2004 limits the involvement of the Engineer to seeing that the required certificates are in place and examining the design of the Temporary Works for obvious defects. In addition, GCC 54(2)(d) gives the Engineer the right and the power to suspend any work discovered by the Engineer to be dangerous or potentially dangerous and the Engineer must do so. Sub-clauses (2) and (4) of GCC 7 further underline this power. For Contractor designed Temporary Works that do not involve an independent checking engineer, the Engineer can similarly make use of the GCC clauses referred to in the above 2 paragraphs, without taking up any of the design responsibility. The duty to suspend also applies.

PARAGRAPH 10

LUMP SUM CONTRACTS WITH FIRM BILLS OF QUANTITIES

Replace the whole paragraph with the following (words in blue and bold):10. LUMP SUM CONTRACTS WITH FIRM BILLS QUANTITIES (Ref. WBTC Nos. 17/95 and 17/95A) OF

(s) Paragraph 10

The Works Group Directors Meeting of September 1992 had decided that, wherever it is appropriate and feasible, civil engineering works contracts shall be tendered lump sum, rather than the usual
Amendment No. 7/2009 Page 7 of 12

remeasurement basis. A lump sum contract means a contract where the quantities are substantially measured firm and the final price to be paid is ascertained by adding to/deducting from the contractors accepted tender price the value of variations and other specified items (e.g. provisional quantities and contingency items). It is also customary for contracts for plant and equipment and for small construction works to be awarded as lump sum based on specifications and drawings (rather than quantities). This is outside the scope of this Handbook. Traditionally all civil engineering works are contracted on an estimated quantities and remeasurement basis. Certain individual items are measured and priced lump sum, but overwhelmingly the tendered rates are treated as a preliminary schedule of rates. Good financial management demands as much certainty as possible over the final cost of a contract. A lump sum approach will increase that certainty compared to total remeasurement. With increasing pressure on the time of engineers both pre and post contract (e.g. the introduction of Estimating using Risk Analysis (ERA), more thorough programme planning and reporting, site safety management) it is necessary to find ways of saving time elsewhere in the project development process. For remeasurement contracts under the civil engineering General Conditions of Contract the whole of the Works is measured more than once i.e. quantities are estimated at the pre-tender stage, followed by interim/final accurate measurement as work proceeds. It is also noted that in many cases the design of the Works is well advanced at tender stage and that substantial parts of the Works are unlikely to change in quantity between tender and final account (unless there is an error in the measurement or a variation to the design is necessary). In the circumstances described in above paragraph, time and effort can be saved if such contracts are awarded lump sum, thereby eliminating the need for total post contract remeasurement. It is recognised that more pre-tender effort is necessary to produce an advanced detailed design and accurate quantities for the tender, which requires tight management control to avoid delay in the start on site for contracts now in the detailed design stage. Before any tender document is finalised, the project engineer shall aim to ensure that the design is sufficiently completed so that there is no necessity for substantial post contract design changes/additional information. Whenever a substantial part of the Works is unlikely to change, the contract shall be prepared and awarded on the basis of lump sum (plus/minus variation etc.). For the purposes of the above paragraph, substantial is defined as when the value of the firm quantities exceeds 80% of the estimated value of the Works (not including Provisional, Contingency
Amendment No. 7/2009 Page 8 of 12

and Prime Cost Sums). Unless such circumstances exist, the tender shall not be called until the design work is so developed and finalised and the quantities that accurately represent that work are included in the Bills of Quantities. The quantities for those parts of the Works that cannot be fully designed shall be described as provisional and be remeasured in the usual way, as explained more fully in the attached Practice Note at Appendix 5.12. Contracts that fit the above paragraph situation but have to be fast-tracked for policy reasons, or the nature of the works/site precludes the design from reaching the required standard, can revert to remeasurement. Authority to fast-track is held by the Head of Department, whose written agreement shall be sought. Where given, the agreement to fast track or any other reason for not using lump sum, shall be attached to the tender report. The then Secretary for Works had directed that the responsibility for providing the quantities shall remain with Government. The quantities shall be measured in accordance with the appropriate SMM as required by GCC Clause 59, some requirements of which may not be appropriate for lump sum and shall be amended in accordance with Appendix 5.13. It is recognised that the change to quantities provided in accordance with the above paragraph has staffing implications and an appropriate lead-time for a substantial change-over to lump sum is necessary. Whenever the lump sum approach is used, an additional Note for Tenderers (see Standard Note to Tender (g) promulgated under ETWB TCW No. 26/2004) and a SCC (see standard SCC 21 promulgated under WBTC No. 18/2000) and the standard amendments to the SMM (at Appendix 5.13) shall be included in the Contract.

APPENDIX 5.7
(t) New Appendix 5.7

UNDERTAKINGS BY CONTRACTOR ON THE USE OF GOVERNMENT DIGITAL MAP DATA

Replace the appendix with the new Appendix 5.7 (attached)(words in blue and bold).

APPENDIX 5.10

CONFIRMATION BY CONTRACTOR ON CESSATION OF THE USE OF GOVERNMENT DIGITAL MAP DATA

Replace the appendix with the new Appendix 5.10 (attached)(words in blue and bold).

(u) New Appendix 5.10

APPENDIX 5.11

PARTICULAR SPECIFICATION FOR INDEPENDENT CHECKING OF THE DESIGN, ERECTION, USE AND REMOVAL OF TEMPORARY WORKS
Replace the appendix with the new Appendix 5.11 (attached)(words in blue and bold).
Page 9 of 12

(v) New Appendix 5.11

Amendment No. 7/2009

APPENDIX 5.12

PRACTICE NOTE FOR THE USE OF LUMP SUM BILLS OF QUANTITIES CONTRACTS FOR CIVIL ENGINEERING WORKS
Replace the appendix with the new Appendix 5.12 (attached)(words in blue and bold).

(w) New Appendix 5.12

APPENDIX 5.13

AMENDMENTS TO THE STANDARD METHOD OF MEASUREMENT FOR CIVIL ENGINEERING WORKS (1992 EDITION)
Replace the appendix with the new Appendix 5.13 (attached)(words in blue and bold).

(x) New Appendix 5.13

Amendment No. 7/2009

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CHAPTER 6

TENDER PROCEDURES
CONTENTS

(y) New paragraphs

Add the following new paragraph after Para. 11.7:11.8 CONTRACT RATE DATABASE SYSTEM

PARAGRAPH 4.1.1
(z) Para. 4.1.1(a)

Eligible Tenderers
Replace the table in the 1st paragraph with the following:Estimated Contract Sum Up to $ 30M Above $ 30M and up to $75M Above $ 75M Eligible Contractors Category Chosen according to the predominant nature of the works involved (may be more than one, see below) Group Group A, B Group B Group C

(aa)

Para. 4.1.1(a)

Replace the table in the 4th paragraph with the following:-

List/Group/ Status

Group Tender Limits

Group A Probationary

Any number of Group A contracts provided the total value of works in any one category does not exceed $30 million

Group B Probationary

Any number of Group A contracts and any number of Group B contracts provided the total value of the Group B works in any one category does not exceed $75 million

Group C Probationary

A maximum of two contracts exceeding $75 million in any one category provided the total value of Group C works in any one category does not exceed $220 million

Amendment No. 7/2009

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PARAGRAPH 11
(bb)New paragraph

MISCELLANEOUS

Add the following new paragraph after para. 11.7:11.8 CONTRACT RATE DATABASE SYSTEM

The Contract Rate Database System was launched by DEVB to provide a convenient access to contract rates of works contracts let by CEDD, DSD, HyD and WSD. The system comprises two different databases, one for civil engineering works and another for electrical and mechanical works. User manual of the system can be obtained through DEVB's intranet portal. A departmental coordinator in each of the said departments has been assigned to oversee the compilation of the databases. Project engineers of the said departments shall follow the guidelines of their respective departments to submit data files containing the unit rates of major items of awarded contracts to their departmental coordinators. The departmental coordinators shall consolidate and disseminate the data through the Contract Rate Database System.

Quality Management and Standards Unit Civil Engineering and Development Department 29 July 2009

Amendment No. 7/2009

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5.92 APPENDIX 5.7

2008 Edition

UNDERTAKINGS BY CONTRACTOR ON THE USE OF GOVERNMENT DIGITAL MAP DATA (Ref.: WBTC No. 7/2000) (Amendment No. 7/2009)
(Please complete in Block Letters)

To :
(Name of the Engineer/Engineer designate*)

In consideration of the Government of the Hong Kong Special Administrative Region ("Government") supplying additional copies of tender/contract* drawings in electronic form to us, we, _________________________________ agree to abide
(Name of contractor in full)

by the following conditions in the use of Government digital map data ("the data") supplied by the Land Information Centre which may be contained in the drawings provided by the Engineer/Engineer designate* (for preparation of a tender)* for Contract No. with (Name of Government Department in full) concerning
.
(Title of the Contract)

(i) (ii) (iii) (iv)

The data shall only be used in our computer systems or visual terminals assigned (for tendering)* for the above Contract. The data shall not be used for any purposes other than (tendering for)* the above Contract. The data shall not be distributed in part or in whole and in whatever forms and media to a third party. The data stored in our computer systems and storage media shall all be destroyed immediately after the completion of the tender/work for the above Contract and we undertake to advise in writing within seven days of so destroying the data by completing the standard form "Confirmation by contractor on cessation of the use of Government digital map data" and submit it to the Engineer/Engineer designate*.

2. We understand that our employees must observe and abide by the above conditions. If any of our employees are proved to have breached any of the above conditions, we undertake to compensate the Government for any loss or damage that the Government has suffered as a result of the said breach. Signed for and on behalf of the contractor Signature Name Designation Tel. No. Fax No. Date Company Address Company Chop *delete where inappropriate

5.98 APPENDIX 5.10

2008 Edition

CONFIRMATION BY CONTRACTOR ON CESSATION OF THE USE OF GOVERNMENT DIGITAL MAP DATA (Ref.: WBTC No. 7/2000) (Amendment No. 5/2008 & 7/2009)
(Please complete in Block Letters)

To :
(Name of the Engineer/Engineer designate*)

This is to advise that we, __________________________________, have ceased

(Name of contractor in full)

using the Government digital map data ("the data") from the electronic drawings provided by the Engineer/Engineer designate* with effect from __________________
(Date)

(for preparation of a tender)* for the Contract No. with______________________________concerning________________________________

(Name of Government Department in full)

____________________________________________________________
(Title of Project/Study)

We confirm that we are no longer in possession of the data or any part thereof in any media or in any form and that the data has been permanently erased and/or duly destroyed from our computer systems. Signed for and on behalf of the contractor

Signature Name Designation Tel. No. Fax No. Date Company Address Company Chop * delete where inappropriate

5.99 APPENDIX 5.11

2008 Edition

PARTICULAR SPECIFICATION FOR INDEPENDENT CHECKING OF THE DESIGN, ERECTION, USE AND REMOVAL OF TEMPORARY WORKS (Ref.: WBTC No. 3/97) (Amendment No. 5/2008 & 7/2009)

Particular Specification (1) Pursuant to SCC Clause , the design of the following Temporary Works shall be certified by the independent checking engineer -

(a) (b) (c)

................................................... ................................................... ...................................................

(2) In addition, method statements certified by the independent checking engineer shall be provided for the erection, use and removal of the following Temporary Works -

(a) (b) (c)

.................................................. .................................................. ..................................................

(3) Any Temporary Works erected in close proximity to traffic shall be protected against impact from vehicles by suitably designed protective measures. The Contractor shall design such protective measures with regard to the conditions prevailing on the Site and the effect of any such impact. Such protective measures are to be designed as part of the Temporary Works and included in any requirement for independent checking.

5.100 APPENDIX 5.12

2008 Edition

PRACTICE NOTE FOR THE USE OF LUMP SUM BILLS OF QUANTITIES CONTRACTS FOR CIVIL ENGINEERING WORKS (Ref.: WBTC No. 17/95) (Amendment No.
5/2008 & 7/2009)

1.

For pure lump sum contracts the Contractor undertakes to carry out a defined amount of work in return for an agreed price. Once the work is done, the price is paid. In our contracts the price is usually paid in stages, which may be subject to a price fluctuation clause. When it is not, it is described as a "fixed price" contract. The price is also adjusted for the effect of any variation ordered to the design of the Works and for adjustments for the Contingency Sum, any Provisional Sum, Prime Cost Sum etc. as stated in the Contract and for any error discovered in the quantities (if included). It is clear that when we use the term "lump sum" we do not mean it strictly in the way it is used in para. 1. When we let a contract based on Bills of Quantities we further complicate the issue, because it is almost certain that when we go to tender not every detail of the design will be finalised and these unfinalised details cannot be measured accurately (referred to as "firm" quantities/items). The term "lump sum" is therefore a convenient way to differentiate this approach from total remeasurement (and other contracts). Lump sum contracts with Bills of Quantities are priced on the basis of the drawings and specification, reduced by means of a standard method of measurement to a list of items which describe and measure the work included on the drawings and in the specification. Any item or section of work which cannot be accurately measured is covered by a provisional quantity or sum and measured as executed on completion of the item or section of work i.e. the value of the provisional item(s) or section(s) of work in the Bills is/are deducted from the Contract Sum and the value of the work executed is added. The "details" referred in para 3 can be substantial. For example, in the building industry the whole of the substructure and much of the external works may be described as provisional and are remeasured as done. This does not prevent the contract from being described and treated as lump sum of a substantial part of the Works can be measured accurately for inclusion in the Bills. The provisional quantities are included in the Bills wherever it is appropriate and sensible to do so. Individual items to be remeasured can be mixed in with the "firm" items, or a whole section can be shown separately and described as provisional. It is very important to clearly differentiate items of work that are not measured firm, by marking each item (or group of items) "provisional" and explaining the process of adjustment elsewhere in the Contract. (e.g. in the Preliminaries/Preambles).

2.

3.

4.

5.

6.

5.101 7.

2008 Edition

General Conditions of Contract (GCC) Clause 5 - Documents mutually explanatory, takes on more importance in lump sum contracts. The agreement is that the work to be done is accurately reflected in the Bills. Any failure to do so places an obligation on the Engineer to put it right. (See the reference in sub-clause (4) proviso (a) to GCC Clause 59, which is replaced by the standard SCC 21 promulgated under WBTC No. 18/2000 and para 10(a) following.) Any other discrepancy between the various contract documents must be sorted out as though it were a variation. It is for the Contractor to prove that a discrepancy or an error in measurement exists. Lump sum contracts often result in a heavier use of GCC Clause 60 - Variations. The provisional quantities are dealt with in the same way as estimated quantities in remeasurement contracts. The proviso to GCC Clause 61(1) i.e. the valuing of the "knock-on" effect of varied work on the unvaried, also takes on more importance in lump sum contracts. It is therefore very important to make sure that the design of the parts of the works measured as firm will not be subject to variations or lack detail that can produce an extension of time and disruption/prolongation claims. The measure and value of each variation ordered is collected together into a "bill of variations" the net total of which is added to or omitted from the Contract Sum (together with the effect of any remeasured items or sections, the Contingency Sum adjustment etc.). The measure and value must be completed by the Engineer (but not necessarily agreed with the Contractor) within the contractually stated period. [See the standard SCC 21 promulgated under WBTC No. 18/2000 covering GCC Clause 59(7)]. Most of the changes to the General Conditions of Contract introduced by the Special Conditions of Contract, bring the Civil Engineering version into line with the Building version, generally using the same wording. There are exceptions viz (a) Clause 50(1)(b)(v) - Whilst the wording is changed, the purpose remains the same i.e. an extension of time is only considered if the increase in quantity is produced by other than an error in or omission of firm quantities (e.g. provisional quantities are under-estimated) because the work shown on the Drawings and/or in the Specification does not change, and therefore there is no reason why the time for completion should change. With provisional quantities the work can increase and therefore such increases should be considered for an extension of time. If the work shown on the Drawings and/or in Specification changes, this is a variation. (See Annex 1 examples). Clause 59(3) - the words "work required by the (Engineer) to be carried out" do not appear in the SCC. This reflects differing procedures between the civil engineering and building approaches. (For the latter, Clause 5 would be operated by the Contractor.) This difference does not change the outcome, items of work shown on the Drawings or described in the Specification which are required to be measured under the rules of the SMM must be so measured.

8.

9.

10.

(b)

5.102 (c)

2008 Edition

Clause 59(4)(a) - includes an additional final sentence, again in order to assist the Engineer. Clause 59(6)(b) and (c) and (7) - describe the procedures applicable to civil engineering, but require the Engineer to complete (but not necessarily agree with the contractor) the final measure and valuation in respect of work required to be measured under Clause 59(3), within a 30-day period commencing on the date of issue of the maintenance certificate.

(d)

11.

GCC Clause 79(1) - Interim payments, are treated differently for lump sum contracts. No accurate measure of the work done at the applicable date is carried out. For interim payments the Engineer estimates the amount of work done (if possible in agreement with the Contractor) and values it. The Engineer also estimates the financial effect of all work done that has been varied under GCC Clause 60, though the Engineer should measure variations as soon as practicable in order to make a full and proper adjustment at the appropriate time i.e. when the varied work is executed/omitted. An estimate is not an inspired guess, it is a professional assessment.

5.103 Annex 1 to Appendix 5.12 Examples of assessments under GCC Clause 50(1)(b)(v)

2008 Edition

Scenario One :

The drawings show an assumed rockhead level based on which the provisional quantity of rock excavation is determined in the Bills of Quantity. Quantity based on assumed information in the drawing Provisional quantity listed in the Bills of Quantity Actual quantity remeasured on site 1000 units 200 units 1000 units

Situation 1

Intension

Total change in quantity is 800 (1000 - 200) units. No Extension of Time shall be provided due to this change.

Situation 2

Quantity based on assumed information in the drawing Provisional quantity listed in the Bills of Quantity Actual quantity remeasured on site

1000 units 1000 units 2000 units

Intension

Total change in quantity is 1000 (2000 - 1000) units. Extension of Time for this change shall be provided.

Situation 3

Quantity based on assumed information in the drawing Provisional quantity listed in the Bills of Quantity Actual quantity remeasured on site

1000 units 200 units 2000 units

Intension

Total change in quantity is 1800 (2000 -200) units. No extension of Time for the change from 200 to 1000. Extension of Time shall be provided for the change from 1000 to 2000.

Scenario Two

Specifications requires the formation for pavement and structures shall be compacted at completion. An item in the Bills of Quantity shall be provided according to the Standard Method of Measurement. Quantity implied from the Contract Quantity omitted in the Bills of Quantity Actual quantity remeasured on site No Extension of Time shall be provided. Quantity implied from the Contract Quantity described as firm quantity in the B of Q Errors discovered in the firm quantity 1000 units 200 units 800 units 1000 units 1000 units

Situation 1

Intension Situation 2

5.104 Intension Situation 3 No Extension of Time shall be provided. Quantity implied from the Specifications Quantity described as provisional quantity in the B of Q Actual quantity remeasured on site No Extension of Time shall be provided.

2008 Edition

1000 units 200 units 1000 units

Intension Scenario Three

Specification requires width of road reinstatement shall be the trench width plus minimum 300 mm or the full lane width as directed by the Engineer. Quantity implied from the Specification 1000 units Provisional quantity listed in the B of Q Actual quantity remeasured on site No Extension of Time. Quantity implied from the Specification 1000 units Provisional quantity listed in the B of Q Actual quantity remeasured on site unclear but minimum 1000 units 2000 units unclear but minimum 200 units 1000 units

Situation 1

Intension Situation 2

Intension

Extension of Time shall be provided for the change in quantity of 1000 units (2000 - 1000) Quantity implied from the Specification 1000 units Provisional quantity listed in the B of Q Actual quantity remeasured on site Unclear but minimum 200 units 2000 units

Situation 3

Intension

No Extension of Time for the change in quantity from 200 units to 1000 units. Extension of Time shall be provided for the change from 1000 units to 2000 units.

5.105 APPENDIX 5.13

2008 Edition

AMENDMENTS TO THE STANDARD METHOD OF MEASUREMENT FOR CIVIL ENGINEERING WORKS (1992 EDITION) (Ref.: WBTC No. 17/95A) (Amendment No. 5/2008 &
7/2009)

Para. 1(a) of Part I of the SMM shall be replaced by : "Bills of Quantities" means a list of items giving brief identifying descriptions and the quantities measured in accordance with this document in respect of the work to be performed. Para. 1(c) of Part I of the SMM shall be deleted. Para. 1 of Part II of the SMM shall be replaced by the following : "The Bills of Quantities are intended in the first instance to give information upon which tenders can be obtained. The quantities in the Bills of Quantities are firm except where described as provisional. When a contract has been entered into, measurement and valuation of the work required to be measured under the Contract performed shall be carried out by reference to the priced Bills of Quantities in the manner stated in the Contract." Para. 3 of Part III (Rules of Preparing Bills of Quantities) of the SMM shall be replaced by : Quantities 3(a) Unless required otherwise by the nature of the work or directed otherwise by a measurement rule in the Method of Measurement, the quantities shall accurately represent the work to be executed and shall be regarded as firm. Where quantities cannot be accurately measured, the respective item in the Bills of Quantities shall be marked as "provisional". The quantities shall be computed net from the Drawings or Specification, unless otherwise stated in the Contract, and no allowance shall be made for bulking, shrinkage or waste. Quantities may be rounded up or down where appropriate. Fractional quantities are not generally necessary but, where required, should not be given to more than one place of decimals.

(b)