JIMMA UNIVERSITY-(JU)

Under Graduate Program/BSc. in Architecture (Block Course)

ARCH -5042:5th Year, Semester-I- Architectural Practice & Management-3Cr
2020: Tibebu Assefa (PhD)
Department of Architecture
December 22, 2020

CHAPTER THREE
THE ARCHITECTS SERVICE
Comprehensive architectural and engineering services
A. Pre-investment study:
This comprises of investigation which proceed decision to go forward with specific
projects. This includes the study of investment priorities on feasibility of projects. E.g.,
feasibility study which include project finance , land acquisition; Preparation of
promotional design
B. Preparation service:
Technical and economical studies required to fully design a project and prepare it for
implementation . This consists of preparation of such plans , descriptions estimate and
other related documents including the following.
i. Preparation of sketch proposal: that is, location maps, site plans , floor plans
, elevations, in large scales and tentative cost estimate based on volumetric
and area unit prices with 15% contingency.
ii. Preliminary design : an architectural and engineering document regarding
a project which is necessary to approve basic design , approval from client
, BaTCoDA, municipality, etc.,
iii. Final design: comprising of all architectural and engineering documents
necessary to approve the final design and used for implementation
purpose. They include
a. All architectural and engineering drawings including the following:-
 Explanation of site conditions
 General conditions
 Special conditions
 Technical specifications

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  Bill of quantities
 List of drawings
 Material list
b. Tender document preparation
 Preparation of tender document in the required number of copies
 Preparation of advertisement in connection with invitation to bid
c. Tender administration : that is, opening , evaluation, award
 Participation in tender opening
 Participation in tender analysis and award recommendation
 Preparation of contract agreement.
C. Implementation service:
These services include construction supervision , construction project management i.e.,
checking of payment certificates prepared by contractor and interpretation of contract
document. The main purpose of construction supervision is to ensure that the architectural
and engineering works are executed strictly in accordance with the conditions of
contract. The supervision service include :
i. Visiting the construction site as per agreement
ii. Preparation of all necessary details
iii. Estimation and approval of all schedules provided by contractor.
iv. Checking & approving payment certificates.
v. Close quality control of materials & workmanship
vi. Preparation of progress reports and schedules
vii. Preparation of variation orders and materials test orders .
viii. Preparation of as built record drawings.
ix. Attending formal progress, meetings and reporting progress of work.
x. Conducting and supervising necessary tests and reporting to client in
connection with final acceptance.

D. Technical assistance services:

Comprises of a wide range of advisory services which include :
i. Technical analysis service such as

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  Availability and cost of raw materials , labour, size of market.
 Present and potential capacity for planning and implementation.
ii. Economic and financial analysis
Study of how to allocate, source resources among many competing uses i.e., value in
terms of opportunity cost to the economy in their best alternative uses

iii. Social analysis

 Analysis that deals with the impact of project on people. e.g., housing
relocation.
 Suitability of proposed project for the people it is intended to serve.
APPOINTEMENT OF CONSULTANTS
Some of the ways by which work comes into an architectural office are:-
a. Through personal friends or acquaintance or through their recommendation.
b. Through reputation because of previous work.
c. Through competition.
d. Through successful bidding on direct commission with fee negotiated.
e. Through public relations.
ARCHITECTURAL COMPITIONTIONS
There are normally two types of competitions. They are open and limited competitions.
1. Open competitions: where any office may participate. an advertisement of of competition
on the newspaper and explains details of where the conditions are obtained , deposits if
any, name of assessors, last day of submitting the drawings and reports etc.,
2. Limited competition: where competitions are either personally invited to participate or
are restricted to membership of a particular institute, society, sector nationality or from
among the shortlist of offices pre-qualified with certain criteria.
In any competition, it is preferable that a short list of firms be prepared since it is difficult
and time consuming to carry out a meaningful evaluation of numerous proposals.
To select a consultant, there are two basic types of selection procedures. These are,
i. Through technical evaluation
In this procedure, the technical competence of the firm will be evaluated. That is,
a) the firms general experience in the field of assignment b) the adequacy of

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 proposed work and approach in responding to the Terms Of Reference (TOR) and
c) The qualification and competence of the personnel proposed for the assignment.
ii. Through technical evaluation with price consideration.
In this, price must not dominate the selection process, nevertheless one may be able
to take advantage of cost saving.

PROPOSAL EVALUATION
The primary objective of evaluating proposals is to choose the firm which through the quality of
its proposal is deemed to be best qualified for the assignment. The evaluation process is carried
out by an evaluation committee. The firm that is ranked highest taking all factors into consideration
is invited to negotiate a contract to carry out the assignment. After completion of negotiation with
the selected firm, other firms on the short list are notified that they are unsuccessful.
TYPES OF CONTRACT
There are several basic types of contracts used for consulting services. These are, Man month ( or
timely based ) contract and Lump sum contract.
i. Man month contract: this type of contract is normally used for general planning and
feasibility study. Payments are made on agreed time based rates. It includes, salary,
social costs, overhead, fee or profit and allowance contingency to cover unforeseen and
price adjustment is considered.
ii. Lump sum contract: this is a contract payment based on agreed lump sum mainly
used on detailed engineering assignment. Payments are normally made against some
agreed time or progress schedule. It is negotiated on the basis of either estimated inputs
of personnel and other items or percentages. The lump sum is then fixed for the life of
the contract.
iii. Percentage contract: directly relate the cost of consulting services to project
construction costs. The contracts are negotiated on the basis of months for the work or
professional fee scale. This type of contract is common architectural assignment. This
is in effect open minded and may discourage innovative cost reducing designs.

Table-x: Project cost during the Dergue Regim

Project cost (ETB) Minimum design fee (%)

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 50,000 5.5

100,000 5

250000 4.5

500000 4

106 3.5

2.5x106 3

5x106 2.5

107 2

Source: PCP

iv. Cost plus fixed fee contract

Usually associated with preparation and commissioning work for industrial and process
engineering projects. The costs are that of personnel and materials expected to be
required. There is a fixed time schedule to complete the work.
Other additional provisions:
a. Price adjustments:-consisting contracts should include provision for price
adjustment to reflect personal salary increased due to changes in cost of living.
b. Contingency allowance: - allowance for unforeseen additional work ranges.

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 CHAPTER FOUR
SPECIFICATION & BILL OF QUANTITIES
4.1. Drawings and Specifications
Construction documents prepared by architects consist primarily of drawings & specifications .
These documents convey the owner’s and architects intentions to the contractors responsible for
constructing the project .If they are unclear or ambiguous the architect could be held responsible
for any resulting problems.
These drawings and specifications are documents used to translate the architectural concepts into
realities and since it is the architect’s responsibility to see to it the construction work is executed
in accordance with the contract documents, he must ensure that these documents are complete and
accurate.

CORRELATION BETWEEN DRAWINGS AND SPECIFICATIONS

Drawings and specifications must be compatible and consistent and avoid misinterpretation.
Drawings define physical relationship between materials, products and systems. They indicate
physical dimensions and locations of construction elements.
The purpose of specifications is to compliment the drawings. Specifications express requirements
in words and deal with quality, methods and technologies installation.
a. Drawings should generally show :
1. Extent , size, shape and location of component parts
2. Location of materials , equipment and fixture.
3. Details and overall dimensions
4. Interlation of materials , equipment and space
5. Schedule of finishes , windows and doors.
6. Identification of class of material and its location
7. Size of equipment
b. Specification should generally show :
1. Type and quality of materials
2. Quality of workmanship
3. Method of fabrication, installation and eraction.

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 4. Test and code of requirements
5. Gauges of manufacturers equipment
6. Allowances
7. Alternatives and options
CONSTRUCTION DRAWINGS
Drawings are prepared for the purpose of conveying information for people concerned with the
erection of the building. That is,
 To show how the design is to materialize
 To give contractors the exact information required. It must be neatly arranged, clear,
simple, clean, and free from repetitive details and unnecessary notes.
1. Logic
Drawings must be logically organized. Sheets which explain general information are
usually placed first in a set of drawings followed by guide maps, site plans, landscapes
drawings, architectural, structural, sanitary and electrical. Such arrangements makes it
easier for contractors to easily locate needed information.
2. Clarity
The purpose of drawings is to communicate to contractors and others information that is
important and hence present it clearly , accurately and at appropriate scales . If drawings
are not sufficiently complete , they will be unclear. If they are not adequately dimensioned
, are inaccurate or all drawn at inappropriate scale , they will also be unclear . Redundancy,
ambiguities and omissions must be avoided . Each item should be explained and drawn
fully and placed in the most logical location.
SPECIFICATIONS
The architects specification are written instructions distinguishing or limiting and describing
indetail any construction work to be undertaken.
The main purpose of specification is to supplement information shown in the architectural and
other related engineering drawings and cover that part of the work which is more easily expressed
in words than by drawings.
PURPOSE:
Generally speaking, specifications are written for the contractors to enable him to construct
manage and direct he construction. In addition it serves the following purpose.

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  For purchasing materials
 For supervising work
 For the subcontractors to understand scope of the work
 For manufacturers and suppliers to fabricate and install
SPECIFICATION SECTIONS:
Specification sections sometimes known as chapters are put in chronological development of the
actual construction process.The chapters include
1. General : preliminary and description of works
2. Excavation and earth work
3. Concrete work
4. Masonary work: stone brick, HCB,etc.,
5. Carpentry,joinery, and ironmongery
6. Roofing
7. Rendering and plastering
8. Metal work and glazing
9. Sanitary installation
10. Electrical work
11. Painting
12. Finishing of site work
CONTENTS OF SPECIFICATION PARAGRAPH
1. Materials or products description
2. Combination of materials e.g.,laying of bricks , pouring of concrete
3. Test required
4. Making good of defects , cleaning, patching and adjusting, etc.,
SPECIFICATION:
Language, format etc., see ACI specification manual.
SPECIFICATION TYPES:
There are several basic types of technical sepecifications and examples of each may be found in
any given project manual . soma are as listed below:
1. Proprietory specification: this calls for desired materials products systems and
equipment by their trade names and model numbers. They are relatively easy to prepare

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 since they rely on commercially available products. Such products are described in detail
in their manufacturers literature. There are two subdivisions of preprietory specification :
closed or sole source and open or equal.
Closed specifications require a particular brands or trade name and do not permit
substitution. They are intended for situation where one and only one product will provide
the desired result. Sole source specifications are not usually permitted on publically
funded projects where open competitive bidding is required.
2. Performance specification
It defines products or systems by describing desired end results which are performance oriented .
In such specifications, the precise make up of individual components on system is not described.
The method allows broad composition and maximum creative impact.
3. Reference specification
It refers to levels of quality established by recognized testing authorities. Architects specification
must clearly state which part of the referenced specifications one want to apply.
4. Descriptive specification
This is most detailed of all specifications. They describe all components of products, their
arrangement and methods of assembly.
5. Cash allowance specification
The architect directs bidders to set aside a specified amount of money to be applied to the
construction work at the architects direction. Cash allowance specifications are used when full
information on levels of quality has not be determined or is not available at the time bids are
solicited. Hard ware carpeting are often handled in this manner.
INTERPRETATION:
When two clauses in the specification conflict, the more specific clause will usually prevail over
the more general clause . hand written provisions will usually prevail over type written provisions.
When two drawings conflict, the more recent drawing will prevail. When different drawings are
prepared at the same time, large scale drawings will usually prevail over small scale general
drawings.
PROJECT COST ESTIMATION:

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In all kinds of building projects, it is important to know the estimated cost of construction
beforehand. If the estimated cost is greater than the money available. An attempt will be made to
reduce the cost by:
a. Reducing the amount (volume) of construction
b. Changing the specifications.
TYPES OF ENGINEERING COST ESTIMATES:
There are various types of estimate as noted below:
a. PRELIMINARY OR ROUGH COST ESTIMATE
This type of estimate is needed to investigate the financial position for administrative
purpose, before a prospective client can give approval for detailed and costly design work
to proceed. If such estimated prove too costly, project can even be abandoned with little
cost. Such estimates are made from practical knowledge and cost of previous similar work
with a certain percent contingency.
i. Preliminary cost estimate based on cost per functional unit.
Building use Estimated by

Hospital Birr/Bed

Dormitory Birr/student

Cinema Birr/Seat

Road Birr/Km

Sewerage Birr/Population head

Water supply Birr/population head

ii. Square method area estimate

An improvement upon the cost per functional unit method such estimates are
prepared on the basis of total estimated area of the building multiplied by the unit
area cost. The rate per square meter is deduced from the cost of similar buildings
in a given locality at a certain period of time.
iii. Cubical content estimate

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 This is approximate cost estimate deduced on the basis of cubical content. The
cubical content rate is found from the cost of similar building in the locality.The
estimate is believed to be more accurate than the floor area method. The b limitation
of the rough cost estimates are:
 It is difficult to obtain accurate rates of estimate
 It fails to take into account plan shape , room height and change in specifications.
Hence, it remains no more than a rough guide . However it is a quick and straight
forward method is meaningful to the client for budgeting control.
b. DETAILED OR ITEMIZED RATE OF ESTIMATE (BILL OF QUANTITIES
METHOD)
This is the most reliable and accurate method of estimate that is based on detailed drawings.
The quantities of items are carefully calculated from the drawings and the total cost worked
out from up to date market rate for finished items of work.
The purpose of the bill of quantities are:
i. To provide sufficient information on the quantities of work to be performed to
enable bids to be prepared efficiently and accurately.
ii. To provide bills of quantities for use in the periodic valuation of works executed.
In order to attain these objectives , works should be itemized in the bill of quantities in
sufficient detail to :
1. Distinguish between different losses of works.
2. Distinguish between works of the same nature but carried out in different location.
3. Other circumstances which give rise to different cost considerations.
FORMS OF BILL OF QUANTITIES
1. ELEMENTAL BILLS (CI/SFB) SYSTEM
The building structure is divided into elements that correspond to its functional parts. This
method takes longer time to write but billing can be started at earlier stage and more precise
or accurate estimation can be arrived
Sub structure Superstructure Services Fittings

(1-0) (2-) (3-) (4-) (5-) (6-) (7-) (8-)

Sub structure Primary Secondary Finish Services Installation Fixtures Equipment

10 20 30 40 50 60 70 80-

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 11 Site plan

21 31

12 External wall

23 32

13 Internal wall

23

14 Floors

24

-19 Stairs -39 -49 -59 -69 -79 -89

29

Cost

2. TRADE AND WORK SECTION BILLS

Aggregates the quantity of any one measured item with or without distinction as to its
position in the work or to its timing in the programme. The data required to prepare the
detailed estimate of the project are:
i. Complete and fully detailed and diminished drawings including schedules
ii. Detailed technical specification
iii. Reliable current unit price rates for various items of work
The quantities of the various items of work are the drawings and the cost prepared
according to current rates. This is done by dividing the whole work into different sections
as shown below
A. Sub structure
1.1.Excavation
1.2.Concrete work
1.3.Masonry work
B. Superstructure
2.1.Concrete work
2.2.Masonry work
2.3.Flooring
2.4.Roofing

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 2.5.Wood work / carpentry work
2.6.Metal work
2.7.Finishing
2.8.Electrical work
2.9.Sanitary work
2.10. Fixtures
The different items of work are described and quantified in a standard form known as
‘QUANTITY MEASURMENT FORM’ or ‘CERTIFICATE MEASURMENT’. The following
format is for A-4 size paper . You can draw based on the spacing indicated in the third raw. The
outer rectangle is the rim/edge of the paper. The top and bottom margin line is 20cm from the
corresponding edge.

25cm Item 20cm

Unit Sub
No. Description Unit Quantity Price Total Total

10cm 75cm 10cm 15cm 15cm 20cm 20cm

PROJECT COST ESTIMATE

Architects professional service often include preparation of construction cost estimates. However
their estimate are not guaranteed since many factors affect the construction cost and some are
beyond the control of the architect.
FACTORS AFFECTING COST
1. Legal and administrative requirement

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 General conditions affect the cost of the project e.g., if provisions for liquidated damages
are included in the contract , a contractor assesses that risk and include an allowance for
potential damages in his bid.
2. Complexity of the project and documentation
Large buildings usually cost less per unit area than small ones. Unit costs may drop
approximately 3% for each 10% reduction in the building perimeter. On the other hand
buildings taller than eight or ten stories or with greater floor to floor heights will be more
expensive per unit area than more conventional buildings. Complexity and lack of clarity
of construction documents may also affect cost.
3. Construction materials and methods
Quality of construction materials and workmanship is major determinant of construction
cost, for instance, a clean manufacturing facility for electronic component.
4. Location of a project
Labour and material costs vary with the location of a project . For instance, abundance
of timber makes wood framing less expensive than in areas where timber has to be
transported long distances. Supply of skilled labour may not be equally available in every
location. Weather also affects construction cost and may also affect choice of material.
5. Construction schedule
A short construction schedule may result in increased construction cost. Contractors
increases work crews and equipment or schedule over time work to meet imposed deadlines
unrealistically short construction periods may result in higher bid prices.

6. Bidding environment
The number of projects available for bidding on negotiation and the amount of competition
for those projects influence construction costs. Architects must stay abreast of the level
and type of activity in the local construction market. They may suggest accelerating or
delaying a bid a bid date to avoid a building environment in which many similar projects
are available to contractors. Owners usually benefit from lower prices if their projects are
bid when either similar work is scarce and contractors are consequently ‘hungry’.
OTHER ELEMENTS OF PROJECT COST

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 When an owner approaches an architect with a budget , it may either be a construction
budget or a project budget. The construction budget may be smaller by a significant
amount. The project budget may include :
 Land acquisition cost
 Consultants fee
 Costs for demolition of existing structures
 Costs for landscaping or site work
 Furniture or finishing cost
 Equipment cost
 Insurance
 Taxes and other fees before and during construction
 Contingencies for unforeseen conditions
FIXED LIMIT OF CONSTRUCTION COST
With a limited construction cost , the architect must have the power to decide the quality of
materials and equipment to be used and the appropriate method of construction. Even the scope
of the project may reasonably be adjusted by reducing the program or including (deductive
alternatives) in the bid package to stay within the fixed limit of the construction cost.
If an owner wants the certainity of the fixed limit , he must relinquish control of scope and quality
to the architect . Price , scope and quality are interdependent , fixing one means that the other two
must be allowed to vary.
CONSEQUENCES OF BIDS IN EXCESS OR A FIXED LIMIT OF CONSTRUCTION COST
There are four alternative courses of action the owner may take:
1. Waive the fixed limit and accept the bid amount
2. Rebid the project with in a reasonable time
3. Abandon the project and terminate the architects contract
4. Cooperate the architect to reduce the scope or quality of the project and rebid it in the
new form.
If the last alternative is selected an architect must, without charge modify the drawings and
specifications in a further attempt to meet the fixed limit.

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 CHAPTER SIX
TENDER ACTION
The primary objective of the procurement procedure is to secure
1. The purchase of necessary building material procurement of skilled labour and
constructon management.
2. To assume a properly completed project on time and at reasonable and economical cost
The selection of contractors include
a. Pre-qualification or examination of bidders (sometimes could be post qualification)
b. Determination of the method of award
c. Preparation, distribution and assembly of bid documents
d. Award of contracts
e. Determination of the system of contract
A. PRE-QUALIFICATION OF BIDDERS
Owners should be made to realize that architects can not force a contractor to build properly or
better than he is able on time. Hence care must be taken in the selection of bidders. However, it
is also difficult to eleiminate inexperienced or unqualified contractors without establishing in
advance pre-qualification procedure and even with the system of pre-qualification.It may be
possible to assess bidders financial situation and over all qualification and size of organization ,
but quality and efficiency can not be guaranteed.
Since sub contracting is a common practice , a system of pre qualification of main contractor only
will not provide a complete answer to better construction or lower cost when pre-qualification of
sub contractors is also done.
Pre qualification is often done by:-
a. Requesting ashort list from authoritative body.
b. Setting criteria and selecting .e.g., experience or post performance and capital or
asset etc.,

B. DETERMINATION OF METHOD OF AWARD

There are normally two systems
a. Competitive bidding
b. Direct selection or negotiation

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 Competitive bidding system(CBS) is also further divided into two: Local competitive
Bidding (LCB) and International Competitive Bidding (ICB). Bidders submit a sealed proposal
to excute the work for a specified sum with in a specified time . each bidder tries to offer a
lower price , which is to the benefit of the owner. This method assumes that the finished product
will be comparable and equal if done by anyone of the bidders and is the weakness of the
system. Therefore eligible bidders should be carefully screened . If the bidders do not have
comparable responsibility and confidence , poorer contractors will be in a better position and
accepting the lowest bid may be a sacrifice of quality and speed of construction ( post
qualification may also be done).
In direct selection and negotiation, private works and public contracts of vast size or
unusual complexity are some times awarded on the basis of direct selection and negotiation .
Such award is made on the basis of known abilities , responsibilities , quality and construction
time.

C. PREPARATION, DETERMINATION AND ASSEMBLY OF BID

DOCUMENTS(TENDER ADMINSTRATION)
1. Bid documents comprise of :
 Instruction to bidders
 General conditions of contract
 Special conditions of contract
 Technical specification
 Form of bid security
 Bill of quantities
 Schedule of supplementary information
 Form of agreement
 Form of performance security
 Drawings.
2. Invitation to bid
Announcement of bidding for the project must be published as a legal notice in one or more
designated newspaper. The advertisement for bid should contain

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  Name and location of the project
 Time and place of receiving bid
 Information whether the opening bid is public or private
 Nature and scope of the project including principal quantities and construction period
 Name and address of owner and consultant
 Location and requirements of obtaining contract documents . i.e., eligibility criteria, cost
of bid document, amount of bid security, date of bid submission, important bid
evaluation criteria (e.g., margin of preference for local contractors), provisions relating to
the owners right to accept or reject any or all bids, name and address of rescuing party
and date of issue.
3. Instruction or notice to bidders
Detailed information in connection with the preparation, submission and consideration of
proposal such as completion time , liquidated damages, the handling and return of bid deposits
and similar items relating to bidding and contract award.
4. Bid security (Proposal Bond)
Bidders should finish as part of their bid , a bid security in the amount of ( ~2% of estimate or
a lump sum from the consultants estimate. The bid security can be in the form of cash deposit,
certified check , a bank draft, an irrevocable letter of credit or a guarantee from a bank or
insurance bond shall be valid for normally 30 days beyond the end of the bid validity period.
Any bid accompanied by unacceptable bid security will be rejected as non-responsive. Bid
securities of unsuccessful bidders will be discharged when the winning bidder has signed the
agreement and furnished the required performance security.
The bid security may be fortified :-
1. If a bidder withdraw his bid during the period of bid validity or
2. In the case of a successful bidders, if he /she fails within a specified time limit to
a. Sign the agreement
b. Furnish the required performance security
5. Performance bond (Labor or material advance bond)
Performance bond insures the legal completion of the contract upon the default of the contractor.

6. Bid validity

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Bids shall remain valid and open for acceptance for a fixed period ( 90-180 days) after the date
of bid opening client may request for a specified extension in the period of validity. Bidders
may agree or refuse the request without forfeiting his bid security.
7. Addends or addendum
During the bidding period , the detailed review of the drawings and specifications by bidders
will inevitably reveal items requiring , clarification , correction or expansion. This is taken care
of by the insurance of the addenda copies of which are sent to all bidders.
An addenda supersedes or supplements the original drawings and specifications whenever there
is a conflict, No addenda is issued latter than the four days before the closing time of receipt of
bids.
8. Submission of bids
a. Bid conditions : bidders should submit two copies of document ( marked
original and copy). Bids have to be duly signed by the authorized person with
a copy of or a written power of attorney. Bids shall have no alterations,
erasures, and its altered should be initiated. Only one bid allowed by each
bidder. Bid envelope should have an outer and inner , the inner should state
‘don’t open before date’ and contain name and address of contractor.
b. Deadlines: bids must be received at the address and time set in the invitation
to bid . Any bid received late will be returned unopened to the bidder.
c. Modification and withdrawal of bids: bidders may modify or withdraw their
bid after bid submission bid prior to dead line for submission of bids marked
“Modification” or “Withdrawal”.
d. Bid opening and Evaluation: the bid will be open at the announced place and
date in the presence of bidders representatives. The bid committee will
register , codes, bid prices , and bid security and their things deemed
necessary. After the bid opening the information relating to the examination
evaluation, comparison and recommendation concerning award of contract
will be confidential until award to the successful bidder has been announced.
If the bid confirms to all the terms and conditions without material deviation
or revolution, It is considered responsive and will be checked if errors in
computation exist.

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 9. General and special conditions of contract
GENERAL CONDITIONS OF CONTRACT:Standard general conditions of
contract have been developed based on sound and accepted commercial and
contracting practices. One of these documents has been prepared by (FiDIC) and
comprises of two parts:
1. General conditions
2. Conditions of particular application
The advantages of adopting a standard condition of contract are:-
1. Ensures comprehensiveness in coverage
2. Save time and cost of bid preparation and review.
3. Ensures development of useful legal case history.
4. Ensures general acceptability of the provisions there in.
The standard general conditions are therefore retained and modification to the
general condition introduced in the ‘conditions of particular application’. The
condition of particular application shall prevail over the general condition and is an
amendment and addition to the general condition carrying the same clause number.
Examples of amended clauses:-
i. Performance security~10% of engineering estimate realized on final
acceptance.
ii. Third party insurance: a specified amount per occurrence in accordance to
local legislation on damages to persons and property.
iii. Liquidated damage: where timing is critical due to interference with other
activities. Commonly used amount is 18% per annum 1.5 % per month or
0,05% per day.
iv. Bonus : if contractor completes work , prior to time prescribed , client may
pay to contractor a limited bonus.
D. AWARD OF CONTRACT
The client may award the contract to the bidder whose bid has been determined to be substantially
responsive to the bidding documents and has offered the lowest evaluated bid price provided that
the bidder is believed to have the capability and resources to carry out the project effectively.

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Where the bidders responsibility has been determined by pre-qualification or direct invitation ,
the award should be made to the lowest bidder. Where bidders have not been screened the award
should be made to the lowest responsible bidder. Hence, post qualification may be necessary. In
all cases , the client reserves the right to accept or reject any or all bidders without insuring any
liability.
Before bid validity period expires , the client will notify the successful bidder with a letter of
acceptance and when he furnishes a performance security. The unsuccessful bidders will be
notified. The bid security of the successful bidders will be released when the bidder has signed
the agreement and furnished the required performance security and third party insurance.
The bid security may be forfeited:-
1. If the bidder withdraw his bid during the period of bid validity.
2. In the case of the successful bidder, if he fails with in the specified time limit to
a. Sign the agreement
b. Furnish the required securities or bonds.
E. TYPES OF CONTRACT
There are four main possible types of contracts that can be drawn between owner and contractor
a. Lump sum contract: Highly recommended for construction work of small nature
where the cost can be determined in advance. A contractor undertakes work for a pre
determined lump sum figure. Advantage :
a. Owner will know cost before any work starts
b. Owner can take advantage of low bid.
b. Cost plus percentage contract: contractor is reimbursed with his costs and paid
an established percentage of cost to cover his overhead expenses and profit. This
type is recommended for alteration work.
c. Cost plus a fixed fee contract: Contractor undertakes work for which he is to be
paid his costs plus a fixed fee to cover overhead and profit. Mainly used for alteration
work and believed to be better since the fee is fixed
Unit price contract: Contractor undertakes work for which he is compensated by
predetermined unit cost for unit work performed. This is mainly for large projects.

Prepared by Tibebu Assefa(PhD) Page 21 of 21