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Lect 1

This document discusses parties involved in construction projects and types of construction contracts. It describes the key parties as the client, consultant, engineer/architect, and contractor. It also outlines three main types of construction contracts: fixed price contracts where the scope and price are set; cost reimbursement contracts where the customer reimburses all actual costs plus profit; and time and material contracts where the customer pays for time and materials used within a set limit. The document provides details on the responsibilities of each party and characteristics of each contract type.

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28 views12 pages

Lect 1

This document discusses parties involved in construction projects and types of construction contracts. It describes the key parties as the client, consultant, engineer/architect, and contractor. It also outlines three main types of construction contracts: fixed price contracts where the scope and price are set; cost reimbursement contracts where the customer reimburses all actual costs plus profit; and time and material contracts where the customer pays for time and materials used within a set limit. The document provides details on the responsibilities of each party and characteristics of each contract type.

Uploaded by

ManikyaMayank
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 12

CVL 245

CONSTRUCTION MANAGEMENT

Dr. Arnab Banerjee


Department of Civil Engineering
Indian Institute of Technology Delhi
LECTURE 1 :

CONTENT

1. PARTIES INVOLVED IN A CONSTRUCTION


PROJECT

2. TYPES OF PROJECT

3. TYPES OF CONTRACT

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PARTIES INVOLVED IN A CONSTRUCTION
PROJECT
 Client
 Consultant
 Engineer/Architect
 Contractor
 Sub contractor

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CLIENT is an entity, individual or 
organisation  commissioning and funding
 the project, directly or indirectly.

A client is sometimes referred to as sponsor, cu


stomer, user etc.

Responsibility- defines the aesthetics and the f


unctional needs of the project

IIT DELHI 4
A Consultant is a completely independent and
a professional engineer and performs well
defined engineering services to his client

A
consultant must have a registration of the stat
e or the country to perform the engineering act
ivities.

Responsibility- assess risk or need and then def


ines performance requirement

IIT DELHI 5
An engineer combines the architectural plan with
structural design , keeping in mind the material
properties, load transfer mechanism etc. to create a
resilient and energy efficient structure

Responsibiities:
Setting goals and budget for a project.
May define performance specification or list products.

IIT DELHI 6
A person or organization hired by the
client to carryout the work required for
the project.

Responsibility- Selects a sub contractor based on the specif


ication and installation factor.
Finalizing the vendor based on location , quality and price.

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TYPES OF PROJECTS:

 Residential Construction Project

 Commercial Construction
 Industrial Construction Project

 Infrastructure Construction Project


 Institutional Construction
 Environmental projects

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What is a Contract?
The contract in the project management is an agreement
between the customer and the vendor for the project to be
executed by the vendor following the requirements of the
customer. 

TYPES OF CONTRACT:
 Fixed price contract
 Cost reimbursement contract

 Time and material contract

or unit price contracts

IIT DELHI 9
Fixed Price Contract:
 It is also called a lump sum contract.

 This type of contract is signed when the scope of work is fixed. The
vendor is supposed to complete the work within the stipulated time
and price. Therefore the vendors bear all the risks. There is no price
negotiation unless there are changes in the scope.

 The fixed-price contracts are of three categories,


I. Firm fixed price contract
II. Fixed price incentive fee contract
III. Fixed-Price with Economic Price Adjustment Contracts (FP-
EPA)

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Cost reimbursement contract:
 The cost-reimbursement contracts are the contracts that are
agreed by the buyer or the customer to reimburse all the
actual costs for the project incurred by the vendor. The
customer also provides a fee for the vendor’s profit. 

 There are 2 types of costs incurred by the vendors; those are


direct cost and indirect cost. The direct cost is the cost such as
resources salaries and equipment purchased for the use of the
project. The indirect costs are the costs that are administrative
and general overhead costs. 

IIT DELHI 11
Time and Material contract:
 This type is the contract that is in-between fixed price
and cost-reimbursable. The customer agrees to pay the
vendor all the time and materials used for the project
within a reasonable limit.

 It can be cost-reimbursable when the customer agrees to


pay the cost for all the genuine and legitimate expenses.
It can be more like a fixed price when the customer sets
the limit. 

IIT DELHI 12

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