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Contract 5 A

The document outlines the key aspects of contract management in construction projects, focusing on change management, claim analysis, and the FIDIC variation procedure. It details the processes for handling changes, variations, and claims, emphasizing the importance of documentation and communication among stakeholders. The content serves as a guide for understanding contract lifecycle, risk allocation, and dispute resolution within construction contracts.

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Abdelrahman Mohamed
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6 views13 pages

Contract 5 A

The document outlines the key aspects of contract management in construction projects, focusing on change management, claim analysis, and the FIDIC variation procedure. It details the processes for handling changes, variations, and claims, emphasizing the importance of documentation and communication among stakeholders. The content serves as a guide for understanding contract lifecycle, risk allocation, and dispute resolution within construction contracts.

Uploaded by

Abdelrahman Mohamed
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Contract Management

in Construction Projects – 5a
Prepared by:
Engr. Mohamed Maged, PMP

Admin of:
https://www.facebook.com/Prof.Planner
Syllabus: Program of Study 2

• Contract definition • What’s FIDIC


• Contract lifecycle • Example of red book 1999
• Make or Buy Analysis • Risk allocation vs Value and
• Types of contracts benefits
• Contract content and priorities • Change management
• Business case and Stakeholders • Claim analysis
• Drafting and Negotiation • Dispute resolution
• Trust and Fairness • Finally: Study & Practice
Contract Management in Construction Projects
(Lecture 05)
- Change Management - Claim Analysis
- Change Vs Proposal - Types of Claims in FIDIC
- Change Impact - Claim Submittal
- Change Management - Record…Record…Record
- Variation flow chart - Root Cause Analysis
- CLAIM PROCEDURE - Contract Termination
3
Proposal &
4
Change

in FIDIC clause 13.3:


Variation Procedure
If the Engineer requests
a proposal…..

in PMBOK:
Change Control, and
Claim Administration
Change Impact
5

November 20,
2016
Management of
6
Change

Changes may be requested by any


stakeholder involved with the project.
Although changes may be initiated verbally,
they should be recorded in written form and
entered into the change management
and/or configuration management system.
Change requests are subject to the process
specified in the change control and
configuration control systems. Those change
request processes may require information
on estimated time impacts and
estimated cost impacts.
Issue & Variance
7

Issue. A point or matter in question or in dispute, or


a point or matter that is not settled and is under
discussion or over which there are opposing views
or disagreements.
Variation. An actual condition that is different from
the expected condition that is contained in the
baseline plan.

Claim. A request, demand, or assertion of rights by


a seller against a buyer, or vice versa, for
consideration, compensation, or payment under
the terms of a legally binding contract, such as for
a disputed change.
Variation &
8
Claims in FIDIC

November 20,
2016
13.3 Variation
9
Procedure

If the Engineer requests a proposal, prior to instructing a Variation, the Contractor shall respond in writing
as soon as practicable, either by giving reasons why he cannot comply (if this is the case) or by
submitting:
(a) a description of the proposed work to be performed and a programme for its execution,
(b) the Contractor’s proposal for any necessary modifications to the programme according to Sub-
Clause 8.3 [Programme] and to the Time for Completion, and
(c) the Contractor’s proposal for evaluation of the Variation.

The Engineer shall, as soon as practicable after receiving such proposal (under SubClause 13.2 [Value
Engineering] or otherwise), respond with approval, disapproval or comments. The Contractor shall not
delay any work whilst awaiting a response.
Each instruction to execute a Variation, with any requirements for the recording of Costs, shall be issued
by the Engineer to the Contractor, who shall acknowledge receipt.
Each Variation shall be evaluated in accordance with Clause 12 [Measurement and Evaluation], unless
the Engineer instructs or approves otherwise in accordance with this Clause.
CLAUSE 13:VARIATIONS AND ADJUSTMENTS
10
Engineer may initiate a variation as
( instruction or request for proposal)

NO Contractor cannot
Contractor Engineer cancels,
readily Notice
accept to execute confirms or
the variation? obtain the Goods
vary the instruction
required
Yes for the Variation

Contractor submits the following:


a. Description of the proposed work to be performed and a program for its execution
b. Proposal for any necessary modifications to the program according to Sub-Clause
8.3 [Programme] and to the Time for Completion
c. Proposal for evaluation of the Variation
Approves
Engineer Issues VO
Disapproves
Issues instructions and requirements,
November 20,
variation will be evaluated in accordance 2016
with Clause 12[Measurement and Evaluation]
3rd Assignment -
11
optional

- Find Clauses refer to Variation &


Evaluation. EOT CLAIMS
REASONS -
RELATED
‫ والتغير في كميات‬،‫ مقارنة مسؤولية التصميم‬-
،‫ من حيث النسبة‬78 ‫ مادة‬89 ‫البنود مع القانون‬ CONTRACT
.‫ وانواع التعويض‬،‫وتحسب من ماذا‬ CLAUSES

12.3 FIDIC 99

52.3 FIDIC 87
incorporated by reference to clause….‫االحالة‬
Phases of
12
Change/ Event

Variation
Proposal
V.O.

Claim Dispute
Thank You

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