Building Contracts
Building Contracts
1. GENERAL CONDITIONS
• Contract Documents: List of documents that form the contract, including drawings,
specifications, and addenda.
• Change Orders: Procedures for making changes to the scope of work, including
documentation and approval processes.
• Payment Terms: Schedule and conditions for payments, including retainage and final
payment.
• Termination: Conditions under which the contract may be terminated by either party.
• Insurance and Bonds: Requirements for liability insurance, workers' compensation, and
performance bonds.
• Site Description: Overview of the site, including size, topography, and existing structures.
3. SCOPE OF WORK
• Site preparation
• Foundation work
• Structural framing
• Roofing
• Interior finishes
4. TEMPORARY FACILITIES
1. FIELD OFFICE
2. STORAGE
4. TEMPORARY FENCE/BARRICADES
• Specifications: Type of fencing (e.g., chain link, wood) and height requirements.
5. SANITARY FACILITIES
• Source: Details on how power will be sourced (e.g., generator, utility connection).
• Additional Contract Time: Extra time granted to the contractor to complete the work due to
unforeseen circumstances or changes in the project scope.
• Adjusted Original Contract Price: The original contract price modified by approved change
orders or adjustments due to unforeseen conditions.
• Architect: A licensed professional responsible for the design and oversight of the
construction project.
• Bidder/Tender: An individual or company that submits a bid or tender for the project.
• Calendar Days: Days counted consecutively, including weekends and holidays, used to
measure contract time.
• Construction Plant: Equipment and machinery used in the construction process, such as
cranes, excavators, and concrete mixers.
• Contract/Contract Documents: The entire set of documents that define the agreement
between the owner and contractor, including the contract agreement, drawings,
specifications, and conditions of contract.
• Contract Price: The total amount agreed upon for the completion of the work as specified
in the contract.
• Contract Time Extension: An extension of the time allowed for completing the work,
typically due to delays caused by the owner or unforeseen circumstances.
• Contract Work/Works: The construction and related activities that the contractor is
obligated to perform under the contract.
• Contractor: The individual or company responsible for executing the construction work as
per the contract.
• Deed of Assignment: A legal document that transfers rights or obligations from one party to
another, often used to assign contract rights to a third party.
• Drawings/Plans: Detailed graphical representations of the project, including architectural,
structural, and engineering drawings.
• The Engineer: The individual or entity appointed by the owner to oversee the project and
ensure compliance with the contract documents.
• Extra Work: Work that is not included in the original scope of the contract but is necessary
for the completion of the project, often requiring a change order.
• Force Majeure: Unforeseeable circumstances that prevent a party from fulfilling the
contract, such as natural disasters, war, or pandemics.
• Owner: The individual or entity that owns the project and enters into the contract with the
contractor.
• Month: A period of time defined as 30 calendar days unless otherwise specified in the
contract.
• Original Contract Price: The initial agreed-upon price for the contract work before any
adjustments.
• Original Contract Time: The initial duration specified for completing the work, typically
measured in calendar days.
• Performance Bond: A type of surety bond that guarantees the contractor will complete the
project according to the contract terms.
• Permanent Works: The parts of the construction that are intended to remain in place after
completion, such as buildings, roads, and utilities.
• Site/Project Site: The physical location where the construction work is to be performed.
• Slippage: The delay in the project schedule, often measured in days, due to various factors
affecting progress.
• Sureties: Entities that provide bonds to guarantee the performance of the contractor,
ensuring that obligations are met.
CONTRACT DOCUMENTS
1. CONTRACT AGREEMENT
• Definition: The formal document that outlines the terms and conditions agreed
upon by the owner and the contractor. It serves as the primary legal agreement
governing the project.
2. CONDITIONS OF CONTRACT
• Definition: A section of the contract that outlines the general and specific
conditions under which the contract will be executed. This includes rights,
responsibilities, and obligations of both parties.
3. DRAWINGS/PLANS
4. SPECIFICATIONS
5. INVITATION TO BID/TENDER
6. INSTRUCTION TO BIDDERS
• Definition: A document that provides detailed instructions on how to prepare and
submit bids, including requirements for bid security, submission formats, and
deadlines.
7. ADDENDA
• Definition: Documents issued after the original contract documents that modify,
clarify, or add to the original contract. Addenda are typically issued in response to
questions from bidders or changes in project scope.
• Example: An addendum that changes the specifications for roofing materials after
the initial bid documents have been released, extending the deadline for bid
submissions.
• Definition: The official document that bidders complete and submit as their
proposal for the project. It often includes various annexes that provide additional
information or requirements.
• Example: A form that includes sections for the bidder's name, project price, and a
list of subcontractors, along with annexes such as a schedule of values and a list of
previous projects completed by the bidder.