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    Lesson 2 Const. Contracts Overview - Roles of Parties

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    Mm
    The document discusses the various parties involved in construction projects including owners, consultants, contractors, suppliers, authorities, and manpower. It describes the roles and responsibilities of each party and explains why construction contracts are important for defining the work and responsibilities of all involved parties.

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    © All Rights Reserved
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    Lesson 2 Const. Contracts Overview - Roles of Parties

    Uploaded by

    Mm
    16 views20 pages
    The document discusses the various parties involved in construction projects including owners, consultants, contractors, suppliers, authorities, and manpower. It describes the roles and responsibilities of each party and explains why construction contracts are important for defining the work and responsibilities of all involved parties.

    Original Title

    Lesson 2 Const. Contracts Overview _ Roles of Parties

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    The document discusses the various parties involved in construction projects including owners, consultants, contractors, suppliers, authorities, and manpower. It describes the roles and responsibilities of each party and explains why construction contracts are important for defining the work and responsibilities of all involved parties.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    16 views20 pages

    Lesson 2 Const. Contracts Overview - Roles of Parties

    Uploaded by

    Mm
    The document discusses the various parties involved in construction projects including owners, consultants, contractors, suppliers, authorities, and manpower. It describes the roles and responsibilities of each party and explains why construction contracts are important for defining the work and responsibilities of all involved parties.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 20

    Overview of Construction

    Contracts
    Why do we need a contract for
    construction?

    1 2 3

    To define the work


    and the owner’s To define the
    To define the nature
    delegation of transfer of financial
    and extent of risk
    responsibilities to incentives to
    to various parties
    the various parties complete the work
    to complete
    the work
    Construction Contract

    Why is construction contract


    different from most other
    types of contracts?
    Construction Contracts
    Complexity of
    the project

    Duration of the A C Size of the


    project project

    Construction
    Contracts

    Change orders E D Changes in price


    Phases of a Construction Project

    Construction

    Initiation Pre-planning Planning & Design Tendering & Award Mobilization Construction Handover Occupancy

    CONSTRUCTION POST
    PRE-CONSTRUCTION STAGE STAGE CONSTRUCTION
    STAGE
    Parties Involved in Construction Projects

    • Generally, construction projects are fragmented i.e.


    many different parties are involved
     As a result, projects are difficult to coordinate; many
    disputes and delays

    Client

    Designer Contractor
    Parties Involved in Construction Projects

    • It is very important to have a smooth interaction


    and coordination between parties working on site
    so that the objectives of the project can be
    achieved.

    • In order to achieve this, the roles and duties of all


    parties and the relationships between them must
    be clearly defined

    • Within each party, there must also be some form


    of structure clearly defining hierarchies,
    authorities, control and communication systems in
    the site organization i.e. a site organization
    structure
    Parties Involved in Construction Projects

     Within each party, there must also be some form of structure


    clearly defining hierarchies, authorities, control and
    communication systems in the site organization i.e. a site
    organization structure

    owner
    authoritie financier
    s

    consultant
    s
    suppliers
    contractors
    manpowe
    r
     Parties Involved & Roles Cont’d

    Owner or Client
     The owner and end-user of the
    project.
     Roles:
     Define project objectives
     Provide project brief / data to
    consultants
     Provide funding for project
     Provide site for project
     Apply and obtain approval from
    authorities
     Parties Involved & Roles Cont’d
    Owner/client/stakeholder cont’d
     There are 2 categories of client:
    Public Sector - projects for the public,
    implemented by the government e.g. schools,
    hospitals, roads

    Private Sector – projects carried out by the


    private sector for commercial or private purposes
    e.g. Shopping Malls
     Parties Involved & Roles Cont’d

    Financiers
     These consist of:
     Banks
     Financial Institutions
     Credit Agencies
     Others
     Parties Involved & Roles Cont’d

    Authorities
     Formulate policies to ensure development of
    construction industry with respect to cost, safety,
    R&D and quality
     Impose regulations to be observed by the project
    to safeguard public and national interest.
     In KSA, how many categories?
     Which is most difficult to deal with?
     Parties Involved & Roles Cont’d

    Consultants
    Professionals from various disciplines such as:

     Architects
     Responsible for overall planning and design of a building project with respect to
    aesthetics and comfort (including space comfort)

     Engineers
     Responsible for engineering design and /or supervision of works on site
     Civil and Structural (C&S), Mechanical and Electrical (M & E)
     Quantity Surveyors
     Prepare Contract Documents including BQ
     Evaluate work progress and recommend for payments
     Parties Involved & Roles Cont’d

     Land Surveyors
     Carry out survey on land and produce survey plan

     Landscape Architects
     Responsible for design of landscape outside building

     Project Management Consultant


     Manage project on behalf of client if they cannot do so
     Coordinate with all appointed consultants on client behalf
     Parties Involved & Roles Cont’d

    Contractors
     Party which will build the project on
    site.
     Roles:
     Prepare program of works
     Prepare setting out of works on site
     Provide insurances and bonds for works
     Appoint sub-contractors and suppliers
     Construct project according to plan and
    specifications
     Make claims for work progress
     Parties Involved & Roles Cont’d
    Contractors cont’d
     3 categories:-
     Main contractor
    o Appointed by client
    o Only one main contractor for any one project
    o Bonded with client by an agreement
     Sub- Contractors (Domestic)
    o Appointed by main contractor
    o Bonded with main contractor through an agreement
     Nominated Sub- Contractors (NSC)
    o Appointed by client
    o For specialist works
     Parties Involved & Roles Cont’d
    Suppliers
    Suppliers of construction item (materials, plant and
    equipment) consists of:

     Nominated Supplier – appointed by client for certain items,


    quality assured
     Manufacturer– items purchased straight from factory
     Agents /distributors– items supplied by middlemen
     Importers – for items imported from overseas
     Parties Involved & Roles Cont’d

    Manpower
     One of the most important resource for
    implementing the project. Manpower consists of:

     Technologist: Provides technology in


    specific field e.g. testing, surveying

     Clerk of works: Gives assistance to


    engineers with regard to technical works e.g.
    site supervision, site testing, etc.

     Foreman: Leads, supervises and controls


    skilled and semi-skilled workers and laborers
     Parties Involved & Roles Cont’d

    Manpower Cont’d

     Skilled workers: Workers who already possess


    specific skills and able to work independently

     Semi-skilled workers: Assist skilled workers in


    carrying out works

     Laborers: Do not possess any skill and so


    cannot work independently. They require
    guidance from skilled workers or foreman
    LOGO

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