Course title: contract specification and

quantity surveying

Course Title: Contract Specification And Quantity Surveying

Contract Specification and Quantity Surveying ➔ 1

Course title: contract specification and quantity surveying
➢Course code: CENG5101
➢Contact hour: 3 hrs
➢Credit : 3
➢Instructor Name:

Contract Specification and Quantity Surveying

Course title: contract specification and quantity surveying
Chapter one:
Principles of contract law to civil Engineering
The principles shall be discussed under the following headings
1. Definition of contract
2. Essential of valid contract
3. Subject matter of contact
4. Termination of contact
5. Contract document
6. Contract administration

Contract Specification and Quantity Surveying 3

 Contract
Is ‘an agreement between two or more persons as between themselves to
create, vary or extinguish obligations of a proprietary nature.

A contract is an agreement enforceable by law.

The contract inevitably follows a proposal from one party and acceptance by
the other.

In the absence of the above elements of a contract, it becomes void

(canceled, or invalid) i.e. without a legal effect or voidable i.e. which can be
avoided by any of the parties to it.
Contract Specification and Quantity Surveying 4
 Contract Con’t

The term “contract” for civil engineering construction, means a written

understanding for execution of works or supply of materials and labor or
for the performance of any service.

Contract laws vary from one country to another country, and the law
governing a specific contract will be determined the place where the
contract was made or by the place of performance unless expressly
provided otherwise.
Contract Specification and Quantity Surveying 5
Contract Con’t

➢ A contract may takes place between

promoter (employer) and contractor,

between promoter and the Engineer.

Contract Specification and Quantity Surveying 6

 Contract Con’t
❖Duties of an Engineer
The engineer provides the technical aspect of design, specifications as well as translates the contract.
The engineer has to insure/protect for the promoter. This applies to all stages of the project i.e.
▪ Pre-feasibility stage,
▪ Estimate of capital cost,
▪ Notional/estimated time for construction,
▪ Feasibility reports,
▪ Preparation of tender document,
▪ Design, drawings and supervision the construction stage of the contract, maintenance of the works, settlement
of financial accounts and claims.
 Contract Con’t

❖Duties of an Engineer

He has to act impartially(independently) and fairly to each parties to the contract, that is to the
employer and the contractor.
✓The Engineer should have knowledge and experience of arbitration
✓The promoter alone responsible the payment of monies for the contractor and the Engineer
has certify the payment with in the terms of contract.

Contract Specification and Quantity Surveying 8

 Contract Con’t
ESSENCIALS OF VALID CONTRACT
➢The legal obligations to perform a contractual obligation only exist when the contract is valid,
the ff condition must eventually operate.
1. The contract shall be made by the parties legally competent to contract.
2. The contract shall be made by free consent/agreement of the parties
3. There shall be definite offer or proposal and its acceptance
4. That there shall be a valid consideration
5. That the subject matter of the contract shall be legal
The absence of these elements is sufficient to void a contract.
➔ Parties Competent To Contract: a person is competent to contract provided:
 He/she is of the age of major according to the law to which he/she subject.
 A person not major according to the law can break an agreement.
9
Contract Specification and Quantity Surveying 9
 Contract Con’t
 In government departments and organizations, competent or delegated authorities are
capable to make a contract. Subordinate authorities who have not been directed or authorized
by competent authority can not enter in to contract.

 He /she of the sound mind i.e. capable of understanding it and of forming a rational judgment
as to its effects upon his /her interest at the time when he/she performs the contract.

 He/she is not disqualified from contracting by any law to which he/she is subject.

 Free consent of the parties : two or more persons said to consent when they agree upon
the thing in the same sense.
Contract Specification and Quantity Surveying 10
 Contract Con’t
❖Consent is said free when:

It is not caused under influence i.e. the parties are not in a position to determine the
will of the other and uses that position to obtain an unfair advantage over the other.
It is not caused by the committing or treating to commit any act forbidden by the law
or the unlawful treating to detain(force) any person to inter in to an agreement.
It is not caused by fraud (cheat). Fraud is false representation of material fact made
with knowledge of its falsity. A contract induced by fraud is voidable.
It is not caused by misrepresentation, which may be an innocent(not guilty) or
guiltyless misrepresentation of fact which is mistake.

Contract Specification and Quantity Surveying 11

 Contract Con’t
It is not caused by mistake. Where both parties do an agreement under
mistake, the agreement is voidable.
❖Definite proposal and its acceptance:
The term contract must be precise and definite and there must be no room
for ambiguity or misconstruction therein.
When one person signifies or shows to another his willingness to do any thing
(here contract), he is said to make a proposal.
The communication of the proposal should complete and the acceptance also
must be absolute, unconditional and must be expressed in reasonable manner.

Contract Specification and Quantity Surveying 12 12

 Contract Con’t
The conditional acceptance terminates the offer. A contract does not exist until the offer is
accepted.
The valid consideration:
Consideration is defined as the act or forbearance(tolerance) of one party in return for an act,
forbearance, or promise of the other.
If the consideration is real and valuable, the requirements of the law of contracts are satisfied.
Unilateral promises, gratuitous (unnecessary) promises, and impossible promises usually are not
enforceable by contract law because of the absence of areal consideration.
Law full Subject Matter.
A contract shall be illegal and unenforceable if its subject matter is contrary to the law, if it violets
a state or federal law, or if it is against the established public policy.

Contract Specification and Quantity Surveying 13

 Contract Con’t
➢ Contracts involving crime, fraud, restraint of trade, collusion, and pure speculation or gambling are
typical examples of unlawful subject matter.
What should a contract satisfy to be enforceable in front of law?
➢ Offer and acceptance (Agreement)
➢ Competent parties (Legal capacity)
➢ Consent to be bound
➢ Consideration
➢ Legality of the object
➢ Formalities
Contract Specification and Quantity Surveying 14
 Offer and Acceptance Con’t

 Offer: An offer is an expression that one party is willing to be bound by specific terms which are
setout in the contract.
 According to the Civil Code, an offer or acceptance can be made:
➢ In writing or orally
➢ By signs normally in use
➢ By conduct of the parties

 A contract is complete when an offer by one party is accepted without

condition by the other party .
Contract Specification and Quantity Surveying 15
Offer and Acceptance Con’t

❖Termination of Offer:

 An offer remains open unless it is terminated. This could occur;

 Through refusal (rejection) or counter offers but not just a request for further information
✓ Death of offeror or offeree
✓ None acceptance within the offer time or after reasonable length of time
✓ Failure of a condition subject to which the offer was made
✓ Revocation/Cancellation of the offer (withdrawal of offer)

Contract Specification and Quantity Surveying 16

 Offer and Acceptance Con’t
❖Absolute - i.e. accepting all the terms of the offer
There must be an indication of consent - i.e. silence does not indicate acceptance
The acceptance must be communicated to the offeror
 It must be the offeree or his agent which communicates the acceptance

❖Offer and Acceptance in Construction:

✓Offer by contractor to do a job;
✓Acceptance by client to the terms of the offer.

✓The issues in negotiation should be included as offer by contractor!

Contract Specification and Quantity Surveying 17
 Types of Contracts Con’t
❖ Contract parties
Whether it is a public or private work, the three contracting parties, viz. Owner, Engineer and Contractor
are essential. The Owner can be an individual, a firm or a public body which initiates and finances the work.
The Engineer or a firm of Consulting Engineers is employed by the owner to advise him, to negotiate for him,
and to protect his interests.
Types of Contracts
o Contracts for the civil engineering works may be broadly classified as under:
1. Lump- sum contract
2. Item rate or unit price contract(BOQ Contract)
3. Cost plus fixed fee contract
4. Cost plus Fixed Percentage
5. Cost plus Variable Percentage
Contract Specification and Quantity Surveying 18
THANK YOU!

CENG 5203 – Introduction 19