Contract Documents
Contract Documents
EACR/01760/2019
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SUPERVISORS
SIGNATURE DATE
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TABLE OF CONTENT
TYPES OF CONTRACT……………………………………………………..
CONTRACTUAL ARRANGEMENTS………………………………………
CONTRACT AGREEMENT…………………………………………………
WORK PROGRESS REPORT………………………………………………
VARIATION ORDER…………………………………………………………
SITE DIARIES………………………………………………………………..
REQUEST FOR INFORMATION…………………………………………..
WORK SCHEDULE………………………………………………………….
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TYPES OF CONTRACTS.
INTRODUCTION.
Construction contracts refer to documents that contain legally binding agreements for both the
owner and the builder allocating roles for each party on the delivery of the project. These
contracts are usually defined by the disbursement it’s going to be made and details other specific
terms, like duration quality, specifications and several other items.
This document entails the various types of contracts indicating their distinct characteristics and
reasons for choosing the most suitable form of contract for my proposed project.
Construction contracts are categorized into:
1. Price-based contracts.
Lump Sum/ Fixed Price Contract.
Admeasurement Contract.
Schedule of rates Contract.
2. Cost-based contracts.
Cost Plus Contracts.
3. Other contracts include:
Turnkey Contracts.
Design and Build Contracts.
Build Own Operate Transfer
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1. PRICE-BASED CONTRACTS.
B. ADMEASUREMENT CONTRACT.
In this type of contracting, items of work are specified in the Bills of Quantities or Schedule of
Rates. The contractor specifies the rates, which include the risk contingency, against each item of
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work. This type of contract offers the client an opportunity to introduce changes in the work
defined in the tender documents. The contractor can also claim an additional payment for any
changes in the work content of the contract therefore; the tender price is usually increased by
variations and claims.
There are three forms of admeasurement contract:
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An effort is required by the owner or owner’s representative to ‘track’ actual quantities
for the actual payment. The contractor also needs to keep track of the same.
C. SCHEDULE OF RATES.
It contains a schedule of work items priced by the contractor without quantities or inaccurate
quantities of work, possibly upper and lower probable limits. The client may supply a schedule
of unit rates covering each item of work and ask the contractors, when tendering, to state a
percentage above or below the given rates for which they would be prepared to execute the work.
The description of the items and the units of measurement are similar to those of a Bill of
Quantities. The contractor can quote separate rates for the labour equipment and materials used
for the works. It is mostly used for repair and maintenance works or for works that have an
urgency.
This form of contract depicts extreme difficulty in making a fair comparison between the figures
submitted by the various contractors, particularly where approximate quantities are not inserted
in the schedules, since there is no total figure available for comparison purposes and the unit
rates may fluctuate extensively between the various tenderers.
Merits.
The work can commence earlier than if a full Bill of Quantities has to be prepared.
Demerits.
There is usually no indication of the final price of the works.
It is very difficult to determine the contractor who submitted the most advantageous offer.
2. COST-BASED CONTRACTS.
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i. There is no risk of loss arising from changing prices, wrong estimates and
underestimated quotations. All agreed costs are recovered.
ii. It provides an automatic or ready escalation clause, so that the increase in cost is
automatically adjusted and recovered.
3. TURNKEY CONTRACTS.
This type of contract is one under which the contractor is responsible for both the design and
construction of a facility. This basic concept is that in this type of contract shall provide the
works ready for use at an greed price and by a fixed date.
b) Usually designs are oversized due to a lack of information available at the time when
the offer is being prepared, several tolerance factors are taken into consideration when
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referring to the capacity of the equipment and are factored into the assumed risks,
causing higher dimensions, because of higher prices in the equipment are presented in
the offer.
c) A higher cost is assumed due to the higher risk that comes with total responsibility,
there is less information to prepare proposals (compared to the “Design and
Construction” scheme) and therefore bidders assume more risks. The typical way to
counter the increased risk is by increasing the price.
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Demerits of Design and Build Contract.
a) Loss of control and reduced owner involvement in design.
b) Cost of tendering (to all parties).
c) Difficulty/time comparing different designs.
d) Cost of risks and contingencies.
e) Disputes tend to be larger and more complex.
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d) It also requires strong corporate governance where in the PPP relationship, the
public sector must stay involved with the supervision of the project during the
ownership phase to ensure it remains successful.
CONCLUSION.
Contracts are vital in construction work since they protect both the client and the contractor
executing the project. It is therefore important for a project to be implemented with the most
suitable type of contract as it will guide all the procedures and help in solving conflicts along the
way as its conditions should always be adhered to the latter.
RECOMMENDATION
The type of contract used in the project will be the lump sum contract (fixed fee) contract since
the client already has a detailed Bill of Quantities stipulating the exact cost of the project
therefore the contractor can work for a pre-agreed fixed sum of money. The payment will also be
done in intervals of set milestones where the Quantity Surveyor can value the work done by the
Contractor to allow for payment. Since it is a Public Project, the Lump Sum Contract does not
allow for major variations after the work has commenced therefore protecting the Client from
huge cost variations due to changes; this is also important for the Client since the Client will
borrow loans to fund the project, meaning the cost of the project needs to be known.
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REFERENCES.
1. Peter Baily, David Farmer, Barry Crocker, David Jessop & David Jones, 2008,
Procurement Principles and Management,10 th Edition, Pearson Education Ltd,
England.
2. Alan Turner, 1997, Building Procurement, Second Edition, Macmillan Press Ltd.
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CONTRACTUAL ARRANGEMENTS.
INTRODUCTION.
The construction procurement system is an organizational system that assigns specific
responsibilities and authority to people and organizations as well as defines the relationships of
the various elements in the construction of a project.
It is broadly classified into:
Traditional approach (conventional).
Non- Non-no-traditional approach (non-conventional).
A. TRADITIONAL APPROACH.
It is also known as the design-bid-build approach. At the design stage, the design team is
responsible for all the tasks involved at this stage and is under contractual obligation with the
client. At the construction stage, the contractor is responsible for all the tasks at this stage and is
also under contractual obligation with the client. This therefore means that the client is under two
contractual obligations for the entire duration of the project. The basis for this delivery method is
that the design is completed prior to the bidding and construction; changes are unlikely to occur
during construction and the time need not be shortened.
B. NON-TRADITIONAL APPROACH.
These refer to the emerging contemporary procurement systems in the construction industry. This
approach deals with shortcomings of the traditional approach which are ineffective coordination
and communication since the projects in the traditional approach are fragmented into two
mutually exclusive entities therefore issues such as buildability and lifecycle costing are not
adhered to; there has also been an increased size and complexity of modern the construction is
are affected by issues such as financial constraints have a political climate affect the project and
also new technology in the construction industry. It includes the following:
I. MANAGEMENT-ORIENTED APPROACH.
The client in this case involves the expertise of a construction manager or a managing contractor
early on in the project. The duties of the construction manager is to prepare the overall work
program, steer the work packages through the design stage, recommend contractors and secure
their smooth integration.
The management-oriented approach is divided into:
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It is also known as an agency construction management arrangement and the construction
manager here acts as an advisor to the client for a fee and the client engages a separate contractor
and design team. The construction manager assumes the little risk for only that which is related
to his advisory responsibilities as he is assumed to be part of the client’s staff.
ii. Management Contract.
It is also known as an ‘at risk’ construction management contract. The client enters into a
contract with the managing contractor who provides planning, management and coordination of
the construction although is not carrying out the actual construction work. The managing
contractor then contracts the work in the normal manner to contractors. The client is also under a
contractual obligation with the design consultants.
iii. Design and Management Contract.
The client enters into a contractual obligation with a prime contractor who is a design and
management contractor who takes the responsibility of managing the design phase. The initial
scope of the design phase is done by the client’s independent design firm just for the basis for the
invitation of tenders in order to select the suitable design and management contractor. The
selected design and management contractor is then responsible for the full design and he also
sub- subcontracts the work.
II. INTEGRATED CONTRACT APPROACH.
The client just executes a single contract with an organization that becomes responsible for both
the design and the construction of the project. The different approaches include:
a) Design- construct.
Also known as a document and construct contract. The client engages the services of the
consultants so as to produce scope drawings which is used as a basis for invitation of tenders.
After selecting the contractor, the design consultant’s contract with the client is transferred to the
contractor through the process of novation. The contractor henceforth is responsible for the
completion of the designs as well as actual construction work.
b) Design-build.
The design-build contractor is responsible for the full design as well as the construction of the
project. The client is under only one contractual arrangement.
Merits.
There is minimum client involvement.
Used for fast-track projects in order to reduce time.
Reduction of claims and litigations against clients.
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Useful in contracts that require specialized design or construction know-how or
where
the design is strongly influenced by the method of construction.
Demerits.
The cost of the project may be unknown until the end of the construction.
High risk to the contractor compared to the client which also translates to high cost to
the client.
The contractor may decide to compromise on quality so as to save on cost.
c) Turnkey Contract.
The client and the contractor agree on a fixed contract sum under which the contractor will take
responsibility for the entire project including project financing, land procurement as well as other
tasks necessary to actualize the project. The client only provides a brief describing the outcomes,
performance criteria as well and the standards he requires. The client has no participation in the
construction work. After the project is complete, the client inspects the work to determine
whether it meets his requirements and then hands over the cheque to the contractor who in turn
hands over the key to the client so that he can commence operation.
Merits.
It is possible to accelerate the project since construction can begin even before the design
process is completed.
It is possible to reduce and eliminate variations.
The client benefits from the skills of the contractor.
Demerits
The client has minimal input and control as he would otherwise exercise on the project
and its development.
The client must provide the contractor with a very accurate description of his brief.
Where several contractors propose different concepts, it may prove difficult to compare
prices and choose the best proposal.
Since the contractor assumes more risks, he may increase his bid price to correspond to
the risk.
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integrated approach. It includes partnering, alliancing, joint venture and the new engineering
contract.
CONCLUSION.
The type of contractual arrangement to be used in the project is the management-oriented
approach – a construction management contract. This is because the input of a construction
manager is required early on in the project to act as an advisor to the client. The introduction of a
construction manager brings forth good opportunities of cost savings as well as value
engineering by enhancing functional performance or value of the project while reducing the life
cycle costs since their expertise is involved early.
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REFERENCES
1. Potts, Keith (2008), Construction Cost Management: Learning from Case Studies;
Taylor & Francis.
2. The Joint Building Council, Kenya, 1999, Agreement and Conditions of Contract for
Building Works, April 1999 Edition
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CONTRACT DOCUMENTS
The various contract documents include:
Conception stage
Client’s brief
Letter of Intent
Procurement documents
Form of Tender
Performance bond
Instructions to Tenderers
Bank Guarantee
Specifications
Bill of Quantities
Appendix to Conditions of Contract
Tender opening report
Tender evaluation report
Letter of Award
Letter of Acceptance
Construction
Site diaries
Progress Reports
Payment Certificates
Request for Information (RFI)
Inspection Reports
Final Account Certificate
Schedule of Defects
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CONSTRUCTION SITE DIARY NO: 053
DATE:10th DECEMBER 2023
PROJECT: THE PROPOSED TUKENYA RECREATIONAL CENTER IN SOUTH C,
NAIROBI PLOT NO: LR.209;8726, NAIROBI COUNTY FOR TECHNICAL
UNIVERSITY OF KENYA.
Day Overview: Today was a productive day at the construction site. The weather conditions
were favorable, which allowed for smooth progress on various tasks. The team worked
efficiently and managed to complete several important milestones.
Weather Report: Clear skies, temperature ranging from 21℃, gentle breeze.
Accident Report: There was no accident reported on-site to the site safety officer.
Personnel:
A. MAIN CONTRACTOR’S WORKERS
B. SUBCONTRACTOR’S WORKERS
1. M.E.P SUBCONTRACTOR
Plumber(s) 7
Electrical Engineer(s) 1
Electricians 6
Unskilled workers 25
Total Workers 39
2. MASONRY SUBCONTRACTOR
Masonries 20
Foremen 5
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Unskilled Workers 25
Total Workers 50
3. FORMWORK SUBCONTRACTOR
Carpenters 16
Unskilled workers 16
Total workers 32
4. REINFORCEMENT SUBCONTRACTOR
Skilled Workers 20
Unskilled Workers 15
Work Done:
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1. Poured concrete slab for the east wing of the building.
2. Continued installation of plumbing and electrical conduits on the ground floor.
3. Erected scaffolding for the second floor.
4. Commenced installation of steel reinforcement for the central support columns.
5. Conducted quality checks on the recently installed primary plumbing connections.
6. Completed of ground floor Exterior Masonry Walling
Challenges:
A delay in the delivery of plywood caused a temporary halt in the interior wall framing. The
procurement team has been notified and is working to expedite the delivery.
Plans for Tomorrow:
1. Complete steel reinforcement installation for the central support columns.
2. Resume interior wall framing upon plywood delivery.
3. Begin pouring concrete for the west wing foundation.
4. Continue plumbing and electrical work on the ground floor.
Note: The progress made today aligns with the project timeline, and the team remains focused on
maintaining safety standards and meeting quality expectations. The site is in good order, and all
equipment has been securely stored for the night
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CONSTRUCTION SITE DIARY NO: 093
DATE:16th June 2024
PROJECT: THE PROPOSED TUKENYA RECREATIONAL CENTER IN SOUTH C,
NAIROBI PLOT NO: LR.209;8726, NAIROBI COUNTY FOR TECHNICAL
UNIVERSITY OF KENYA.
Day Overview: The day was a moderately productive day at the construction site. The weather
conditions were fairly favorable, which allowed for smooth progress on various tasks. The team
worked efficiently and managed to complete several important milestones despite of chilly
weather.
Weather Report: Cloudy skies, temperature ranging from, 18 ℃,
Accident Report: There was no accident reported on-site to the site safety officer.
Personnel:
C. MAIN CONTRACTOR’S WORKERS
D. SUBCONTRACTOR’S WORKERS
1. M.E.P SUBCONTRACTOR
Mechanical Engineer 1
Plumber(s) 18
Electrical Engineer(s) 1
Electrician 6
Unskilled workers 10
Total Workers 36
2. MASONRY SUBCONTRACTOR
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Masonries 20
Foremen 5
Unskilled Workers 25
Total Workers 50
3. PLASTER SUBCONTRACTOR
Skilled Workers 14
Plastering Supervisor 2
Unskilled Workers 12
Total Workers 28
Work Done:
1. Plastered the fraction of Second floor exterior Walls.
2. Started to fix window sills.
3. Continued to apply mortar mix on the third floor.
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4. Commenced on hacking the interior columns and beams
5. Conducted quality checks on the recently installed primary plumbing connections.
Challenges:
There was no other challenge encountered on site except the weather being chilly but the work
was carried out despite of harsh conditions.
Plans for Tomorrow:
1. Complete the plastering of second floor external wall.
2. Resume ground floor interior door framing upon door frames delivery.
3. Begin hacking of first floor slab.
4. Continue plumbing and electrical work on the first floor.
Note: The progress made today aligns with the project timeline, and the team remains focused on
maintaining safety standards and meeting quality expectations. The site is in good order, and all
equipment has been securely stored for the night
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CONSTRUCTION SITE DIARY NO: 158
DATE:10th MARCH 2025
PROJECT: THE PROPOSED TUKENYA RECREATIONAL CENTER IN SOUTH C,
NAIROBI PLOT NO: LR.209;8726, NAIROBI COUNTY FOR TECHNICAL
UNIVERSITY OF KENYA.
Day Overview: Today was a productive day at the construction site. The weather conditions
were favorable, which allowed for smooth progress on various tasks. The team worked
efficiently and managed to complete several important milestones.
Weather Report: Clear skies, temperature ranging from, 20-22 ℃,
Accident Report: There was no accident reported on-site to the site safety officer.
Personnel:
E. MAIN CONTRACTOR’S WORKERS
Total Workers 66
F. SUBCONTRACTOR’S WORKERS
1. M.E.P SUBCONTRACTOR
Mechanical Engineer 1
Plumber(s) 18
Electrical Engineer(s) 1
Electrician 6
Unskilled workers 10
Total Workers 36
2. FINISHES SUBCONTRACTOR
Painters 20
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Tiling Personnels 15
Carpenters 10
Unskilled Workers 25
Total Workers 70
3. LANDSCAPING SUBCONTRACTOR
Landscaping Architect(s) 2
Supervisor(s) 3
Unskilled Workers 22
Total Workers 27
Work Done:
1. Tiled the fraction of Fourth floor.
2. Started to paint Windows and railings.
3. Continued to apply plaster in the interior walls of fourth floor.
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4. Commenced on exterior landscaping
5. Conducted quality checks on the recently installed external drainage works
Challenges:
A delay in the delivery of glass glazing caused a halt in the grazing of windows and doord. The
procurement team has been notified and is working to expedite the delivery.
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PROGRESS WORK REPORT
PROGRESS REPORT AT 25 %
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Task Previous Current % of work Start date End date
Status Status Done
Site clearance NA 100% 20/09/2023 27/09/2023
Mass excavation to remove NA 100% 27/09/2023 15/10/2023
black cotton soil
Transportation of black NA 50% 10/10/2023
cotton soil out of site
Trench excavation NA 100% 18/10/2023 24/10/2023
Blinding NA 100% 25/10/2023 25/10/2023
Pit excavation NA 50% 19/10/2023 20/10/2023
Fmwk to fndn column NA 100% 29/10/2023 11/11/2023
Casting of fndtn column NA 30% 13/11/2023 13/11/2023
Fndtn wall NA 20% 23/11/2023 15/12/2023
Hardcore placement NA 50% 17/11/2023 23/12/2023
Blinding NA 100% 2/01/2024 5/01/2024
Slab NA 75% 7/01/2024
Sand 41 Tons
Ballast 53 Tons
MATERIALS IN STORE
MATERIAL QUANTITY
Sand 60 Tons
Ballast 53 Tons
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Hoop iron 31 Rolls
Excavator 1No
Batching plants 3No.
Dumper 2No.
PROBLEMS EFFECTS
1. On date 11/ 12/2023 it rained causing 1. Some of the materials were affected by
flood o site. flood causing greater wastage.
2. Bad communication of information 2. Differences among the team
among the team
FINANCIAL REPORT
Contract 580,400,000
Approved variation N/A
Revised contract amount N/A
Payment certified 150,000,000
Maximum retention to be held 10%
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PROGRESS WORK REPORT
PROGRESS REPORT AT 50 %
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PREVIOUS WORK
CURRENT TASKS
MATERIAL QUANTITY
Cement 130 Bags
Sand 30 Tons
Ballast 47 Tons
Building stones 4850 Pcs
Hoop iron 21 Rolls
Binding wire 21 Rolls
Timber poles 360 No.
Marine boards 22 No.
Reinforcement bars (for foundation) 5 Tons
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MATERIALS IN STORE
MATERIAL QUANTITY
Cement 100 Bags
Sand 40Tons
Ballast 20 Tons
Building stones 3250 Pcs
Hoop iron 35Rolls
Binding wire 36 Rolls
Timber poles 450 No.
Marine boards 22 No.
Reinforcement bars (for foundation) 5 Tons
Excavator 1No
Batching plants 3No.
Dumper 2No.
FINANCIAL REPORT
Contract 580,400,000
Approved variation 19,600,000
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PROGRESS WORK REPORT
PROGRESS REPORT AT 75 %
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Formwork on suspended 50% Complete 100% 23/02/2025 23/03/2025
slab
Reinforcement on 30% Complete 100% 25/03/2025 25/03/2025
suspended slab
Casting of suspended slab 30% Complete 100% 28/3/2025 02/04/2025
CURRENT TASKS
Sand 30 Tons
Ballast 47 Tons
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MATERIALS IN STORE
MATERIAL QUANTITY
Cement 100 Bags
Sand 40Tons
Ballast 20 Tons
Building stones 3250 Pcs
Hoop iron 35Rolls
Binding wire 36 Rolls
Timber poles 450 No.
Marine boards 22 No.
Reinforcement bars (for foundation) 5 Tons
Excavator 1No
Batching plants 3No.
Dumper 2No.
FINANCIAL REPORT
Contract 580,400,000
Approved variation 19,600,000
Revised contract amount 600,000,000
Payment certified 450,600,000
Maximum retention to be held 10%
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REQUEST FOR INFORMATION
PROJECT: THE PROPOSED TUKENYA RECREATIONAL CENTER IN SOUTH C
PLOT NO:LR.209;8726, NAIROBI COUNTY FOR TECHNICAL UNIVERSITY OF
KENYA
CONTRACTOR: Mountain Home RFI No. RFI/30/04/24
Construction Ltd
PROJECT MANAGER: Kamau Moses DATE: 30th May 2024
FROM CONTRACTOR:
COMMENTS:
Per the Contract General Conditions, the Contractor shall not proceed with additive or deductive
Work which has change order implications as a result of this RFI without prior written approval
from the Trustees.
C/C to:
Moses Kamau (Project Manager)
Moarch Architects (Architect)
Mosearch Quantity Surveying Company (Quantity Surveyor)
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REQUEST FOR INFORMATION
PROJECT: The Proposed Tukenya Recreational Center In South C Plot No: Lr.209;8726,
Nairobi County For Technical University Of Kenya
CONTRACTOR: Mountain Home RFI No. RFI/13/09/24
Construction Ltd
PROJECT MANAGER: Kamau Moses DATE: 13th October2024
FROM CONTRACTOR:
COMMENTS:
Per the Contract General Conditions, the Contractor shall not proceed with additive or deductive
Work which has change order implications as a result of this RFI without prior written approval
from the Trustees.
C/C to:
Moses Kamau (Project Manager)
Bin Bingwa ( Mechanica Engineer)
Moarch Architects (Architect)
Mosearch Quantity Surveying Company (Quantity Surveyor)
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DATE…22/09/2024………. Order No: ……0132/TUK…
VARIATION ORDER
You’re instructed to carry out the execution of the following variation on the above contract.
No objections will be tolerated unless through a letter to the PM from the date of issue to the
contractor
ADD
Change of external wall finish for the main building to light grey 10,000,000.00
Rough and tough finish.
OMMIT
Prepare and apply 3mm thick Double coat Plastic Emulsion Paint 2,500,000.00
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DATE…22/09/2024………. Order No: ……0187/TUK…
VARIATION ORDER
THE PROPOSED TUKENYA RECREATIONAL CENTER IN SOUTH C PLOT
NO:LR.209;8726, NAIROBI COUNTY FOR TECHNICAL UNIVERSITY OF KENYA
You’re instructed to carry out the execution of the following variation on the above contract.
No objections will be tolerated unless through a letter to the PM from the date of issue to the
contractor
ADD
Change of ceiling finish for the main building to gypsum ceiling 7,500,000.00
Change of Stairs steel railings for the main building to wooden 3,500,000.00
balustrades rails
OMMIT
Prepare and apply 3mm thick Double coat Plastic Emulsion Paint 2,700,000.00
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