Addis Ababa Science and Technology University

College of Architecture and Civil Engineering

Contract, Specification and Quantity Survey
(CEng5202)
Chapter One
General Introduction on the Construction
Industry

Habtamu E.
August 2022
CONTENTS
 Construction Project

 Construction Industry

 Life Cycle of Construction Project

 Main Parties in Construction Project

 Resource for Construction Industry

 Construction Management Process

 The Ethiopian Construction Industry

 Historical Aspect

 Current Status of the Industry

 Challenges in the sector

 Task of Quantity Surveyor

1. Construction Project
 A construction is a process of constructing something by man for one
purpose or another. It may be a road, bridge, a dam, a dwelling place,
an airport, a commercial building, etc.
 In planning for the various types of construction, the methods of
procuring professional service, awarding construction contracts, and
financing the constructed facility can be quite different.
 The broad spectrum of constructed facilities may be classified into four
major categories, each with its own characteristics:
A. Residential Housing Construction:
 Includes single-family houses, multi-family dwellings, and high
rise apartments.
 The residential housing market is heavily affected by general
economic conditions, tax laws, and the monetary and fiscal policy.

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1. Construction Project
B. Institutional and Commercial Building Construction:
 Encompasses a great variety of project types and sizes, such as
schools and universities, medical clinics and hospitals, recreational
facilities and sport stadiums, retail chain stores and large shopping
centers, warehouses and light manufacturing plants, and
skyscrapers for office and hotels.
 Because of the higher costs and great sophistication in
comparison with residential housing , this market segment is
shared by fewer competitors.
C. Specialized Industrial construction:
 Involves very large scale projects with a high degree of
technological complexity, such as oil refineries, steel mills,
chemical processing plants and nuclear plants.

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1. Construction Project
C. Specialized Industrial construction:
 Long range demand forecasting is the most important factor since
such projects are capital intensive and require considerable
amount of planning and construction time.
D. Infrastructure and heavy construction:
 Includes projects such as highways, mass transit systems, tunnels,
bridges, pipelines, drainage systems and sewage treatment plants.
 Most of these projects are publicly owned and therefore financed
by either through bonds, taxes, grants or aids.
 This category of construction is characterised by a high degree of
mechanisation.

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2. Construction Industry
 Construction Industry (CI) is an industry which is involved in the
planning, execution and evaluation of all types of civil works.
 Construction Industry can be categorized into three major sectors:
i. Transport and Communication Sector - Road, Railway,
Airway, and Telecommunication related physical works.
ii. Water and Energy Works – Hydropower development,
transmission lines, wind power, irrigation projects.
iii. Buildings and Other Physical Infrastructures.
 CI is among the leading industry in producing employment and
contribute to the over all national development.
 CI is the most important enabler for social, economic and political
development of countries.

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2. Construction Industry
 CI specially in developing countries like Ethiopia consumes much
of the national capital budget.
World Total 3.41 Trillion $ 1. US $819 B (8.2%)
Asia 1,113 Billion $ 2. Japan $618 B (13.9%)
Europe 1,017 Billion $ 3. Germany $253 B (11.4%)
North America 885 Billion $ 4. China $181 B (17.0%)
Latin America 241 Billion $ 5. UK $109 B (7.7%)
Middle East 101 Billion $ Ethiopia $ 402 M(59.8%)
Africa 56 Billion $

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2. Construction Industry
 CI – is the most important enabler for social, economic and political
development of countries.
 Specifically this fact is true for least developing countries like
Ethiopia because projects are:
 Inter-sectoral
 Demands huge capital budget

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 2. Construction Industry
 Inter-sectoral relationship

Sectors Building Other Civil Works

Agriculture Offices, Storages, Equipment Irrigation Schemes, Rural Access Roads
Shades
Education Offices, Stores Class rooms, Internal and External Roads and
Libraries, Laboratories, etc Installations
Energy Offices, Storages, Garages Hydro Power Schemes, Electricity &
Power Stations and lines
Industry& Factories, Offices, Workshops, Internal and External Installations
Commerce Storages
Health Offices, Clinics, , Hospitals Internal and External Roads& Installations
Transportation & Offices, Storages, Stations Airports, Roads, Telecommunication lines
Communication
Water Resources Offices, Storages Water supply & sewerage distribution
lines, Treatment plants
Defense Offices, camps, Training Defense Schemes
centers
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 2. Construction Industry
 Demand Huge Capital Budget
Sectors 1997/98 1998/99 1999/2000 2000/01 2001/02
Economic 2581.7(89%) 2437.3(85.1%) 3496.6(90.7%) 2263.8(85.2%) 2254.8(79.5%)
Sectors: -
Ethiopian Road 99.4(32.7%) 1447.9(49.8%) 2344.7(60.8%) 1090.1(41%) 1594.1(56.2%)
Authority
Ethiopian Civil 265.7(8.7%) 397.3(13.7%) 344.4(8.9%) 411.8(15.5%) 31.8(1.1%)
Aviation Authority

Ministry of Water 90(3%) 84(3%) 82(2%) 315(2%) 143(5%)

Resource
Social Sectors 215.0(7.1%) 246.0(8.5%) 142.3(3.7%) 249.2(9.4%) 242.1(8.5%)

Ministry of 165.1(5.4%) 196.5(6.8%) 116.6(3.0%) 177.5(6.7%) 198.6(7%)

Education
Total 96.10% 93.60% 94.40% 94.60% 88.00%
Public 42.00% 62.40% 66.90% 59.80% 60.20%
Construction
Projects
Annual Average 58.20%
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2. Construction Industry
 Nature of Construction Industry:
 Requires big capital investment thus is highly affected by the
economy of the nation.
 Construction is a team output and requires motivated
and skilled workers.
 Uniqueness of Construction Industry:
 Fragmented Industry
 Long production cycle
 Transient organization nature
 Unpredictable work load
 Subject to Environmental Impact

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 3. The Life Cycle of Construction Project
 The project life cycle of a construction project may be viewed as a
process through which a project is implemented from cradle to grave.
Market Definition of project
demand or objectives and scope
perceived
needs

Disposal of Conceptual
Facility planning and
feasibility study
Fulfillment
Conceptual plan or
of useful life
preliminary design
Operation and
Design and
maintenance engineering

Acceptance of facility Plans and specifications

Start up for Procurement
occupancy and
construction

Completion of
construction 12
4. Main Parties in Construction Project
 The practice of planning, designing, constructing, and operating a
facility is most usually a collective effort of different groups of
professionals and trades.
 Depending on the size, complexity, and purpose of a particular
construction project, the project team may include:
 A client or an owner: Individuals, government, real estate
developers etc.
 Financial institutions or other investors that provide the funding
 Local planning and code authorities
 Consultants or Licensed architects and engineers who provide
design work and prepare construction documents
 Contractors who provide construction services and install systems
 Marketing or leasing agents
 Facility managers who are responsible for operating the facility.
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4. Main Parties in Construction Project

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4. Main Parties in Construction Project
I. Client
 The client is the most important party who is active from inception to
completion and event to post-occupancy maintenance.
 Clients may be classified as Public sector clients and Private sector
clients.

A. Public sector clients

 Central Government Offices (Ministries)
 Local Authorities (Regional or Town)
 Public Corporations

B. Private sector clients

 These are private individuals & private companies.

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4. Main Parties in Construction Project

Duty of the Client

 Demand for the product. For example for the building project:
 Availability and cost of land,
 Location & accessibility
 Required Infrastructure
 Legal constraints
 Current & future development
 Soil characteristics of land
 Site preparation (right of way)
 Permits

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4. Main Parties in Construction Project
II. Consultant
 The main role of the consultant is to interpret the client’s project
requirement into a specific design.
 The consultants’ team shall:
 Ascertain, interpret and formulate the client’s requirement into an
understandable project.
 Design the project to much requirements and constraints
(imposed by statutory obligations, technical feasibility,
environmental factors, site conditions, cost, etc)
 Assess client’s cost limit to decide on materials & the like.
 Prepare contract documents.
 Supervise the project and constantly inform the client on the
progress
 Approve payments
 Resolve contractual disputes
 Issue provisional and final acceptance certification
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4. Main Parties in Construction Project
III. Contractor
 These are groups established mainly as commercial companies, that
contract to construct development projects.
 Responsibility of contractors:

 Carry out a full site investigation prior to submission of tender,

 Submit tender,
 Plan, Program, Control the construction process.
 Notify the consultant about delays, discrepancies,
 Effect all payments to his employees, suppliers, subcontractors,
 Rectify all defects on completion of works, etc
 Provide post occupancy repair & maintenance if required.

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4. Main Parties in Construction Project
IV. Public Sector Agencies

A. Statutory Authorities
 These bodies offer technical advice during design and
construction in their respective areas.
 E.g. EEPCO, AAWSA, Fire Authority - requires meeting their
specific requirements. Thus early information to these
authorities is required.

B. Municipalities and Government Authorities

 These bodies offer the basic Land permit and building permit.

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5. Resource for the construction Industry
 The following resources are vital for construction industry:

 Human Resources (Labor or Workmen)

 Financial Resources ( Fund)
 Information Resources
 Physical Resources ( Materials, Equipment and Other Assets)
 Services and Management
A. Human Resource (Labour or Workmen)
 These include professional, skilled, semi skilled and unskilled
laborers.
 Human resources can be understood in two values: Capacity and
Capability.
 Capacity - refers to the quantity of labor for the scope
defined.
 Capability - refers to knowledge, technology know-how and
skill as per the demands of the scopes ability.
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5. Resource for the construction Industry
A. Human Resource (Labour or Workmen)

 Construction Managers need to be capable of:

 Communication- Inter-personal, group interaction-skills
 Problem solving / Conflict resolution / Negotiation Skills
 Facilitating / Decision- making Skills
 Writing skills for Proposals / Reports / ToRs / MoUs; and
 Hard Skills- Planning, Implementing, Leading and Monitoring
tools.
B. Financial Resources (Fund)

 Usually funds are available from among Governmental institution,

Private institutions and Donors in the form of loan or assistance.
C. Information Resources

 Information can be understood in two terms: data whether processed

or not; and its technology.

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5. Resource for the construction Industry
D. Physical Resources

i. Materials
 Material covers 55-70% of the total construction cost.
ii. Equipments
 Though their initial cost is high using equipments are far more better
than using labor.
iii. Other assets
 Physical Infrastructures and Owned Land are assets which can be
collaterals for capital base enhancement and credit facilities and are
useful to develop the scarce financial resources and getting into
business access.

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5. Resource for the construction Industry
E. Service and Management
i. Service
 Services such as acquisition of land, provisions of water supply,
electric power, communication systems, etc., are very much
necessary in the construction industry.
ii. Management
 Management has come to employ a disciplined approach to the use
of available resources.

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6. Construction Project Management Process
 Project management is the Planning, Organizing, Monitoring and
Controlling of all aspects of a project, to achieve the project’s
objective.

Project Project Scope Project Time

Integration
Management Management
Management

Project Human
Project Cost Project quality
Resource
management management
management

Project Project
Project Risk
Communication Procurement
Management
Management Management
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 6. Construction Project Management Process

1. Project Integration 2. Project Scope 3. Project Time

Management Management Management

• Develop Project • Scope Planning • Activity Definition

Charter • Scope Definition • Activity Sequencing
• Develop Preliminary • Create WBS • Activity Resource
Project Scope
Management • Scope Verification Estimating
• Scope Control • Activity Duration
• Develop Project
Estimating
Management Plan
• Direct and Manage • Schedule
Project Execution Development
• Monitor and Control • Schedule Control
Project Work
• Integrated Change
Control
• Close Project

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 6. Construction Project Management Process

4. Project Cost 5. Project Quality 6. Project Human

Management Management Resource
Management
• Cost Estimating • Quality Planning • Human Resource
• Cost Budgeting • Perform Quality Planning
• Cost Control Assurance • Acquire Project
• Perform Quality Team
Control • Develop Project
Team
• Manage Project
Team

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 6. Construction Project Management Process

7. Project 9. Project
8. Project Risk Procurement
Communication
Management Management
Management
• Communications • Risk Management • Plan Purchase and
Planning Planning Acquisition
• Information • Risk Identification • Plan Contracting
Distribution • Quantitative Risk • Request Seller
• Performance Analysis Responses
Reporting • Select Sellers
• Risk Response
• Manage Stakeholders Planning • Contract
• Risk Monitoring and Administration
Control • Contract Closure

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7. The Ethiopian Construction Industry
7.1 Historical Aspect: The Construction Development
 Between 200 B.C. and 260 A.D. the Romans built many
bridges.
 Then after palaces and religious dominions are built such as the
pyramids, the palace at Versailles, and the Taj Mahal.
 Previous monarchies had contributed to the development of
constructions in Ethiopia.
 Especially King Lalibella constructed Rock Hewn churches
which are big in size of superb architecture in the 13th century.
 The ruins of the ancient Aksumite Civilization built most
impressive monuments are the monolithic obelisks, royal
tombs and the palace ruins dating to the 6th and 7th centuries
AD.

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7. The Ethiopian Construction Industry
7.1 Historical Aspect: The Construction Development
 Historic chronicles of the 17th and 18th centuries showed that there
were a number of small roads, palaces and river improvement
works.
 The Adal Sultanate, Sheikh Sof Omar, Atse Fasil, Atse Theodros
and Atse Menilik were noted for their major contributions.
 Modern construction however had started during the region of
Emperor Menilik II (The road from Asmara to Addis Ababa).
 Italy during its invasion (1936-1941) had also contributed to the
development of the construction industry. It had constructed about
6000km of roads.
 After Italian invasion, the first Ministry called “Ministry of
Communication and Public Works’’ was established during the
Imperial regime.

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7. The Ethiopian Construction Industry
7.1 Historical Aspect: The Construction Development
 The construction development can be reviewed into five distinct
periods based on the historical paradigm shifts in the construction
industry in Ethiopia:
i. Pre 1968: Foreign Companies dominated construction
Industry.
ii. 1968-1982: Emergence of Small scale Domestic construction
companies,
iii. 1982-1987: Parastatal companies dominated Construction
Industry,
iv. 1987-1991: Fragmentation between Design services &
Construction works,
v. 1991-2001 Parastatal Domination legally abolished.

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 7. The Ethiopian Construction Industry
7.1 Historical Aspect: The Construction Development

I. Pre 1968: Foreign Companies II. 1968 – 1982: Emergence of

dominated construction Small Scale Domestic Construction
Industry companies

• The construction industry was • This period was recognized by the

dominated by foreign contractors. then Imperial government together
• Most civil works were procured under with foreign financiers’ commitment
International Competitive Bidding and initiative towards building the
(ICB). capacity of the construction industry.
• Public Institution including Ministry • Conductive proclamations for the
for Public Works (MoPW) and the construction industry were
Imperial Highway Authority (IHA- promulgated.
1951) were established. • BERTA Construction Plc., National
Engineers Plc., Ethiopian Building
and Road construction, Ethiopian
Earthmoving Equipment were
established.
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 7. The Ethiopian Construction Industry
7.1 Historical Aspect: The Construction Development
III. 1982-1987: Parastatal IV. 1987 – 1991: Fragmentation
Companies Dominated between Design and
Construction Industry Construction
• Confiscation of developing domestic • The period was characterized by the
private construction companies and establishment of consultancy offices
became under state control in 1982. for the design and contract
• This led the promotion of state-owned administration services as
construction companies aggressively. independent entities.
• Number of state-owned construction • The Design Bid Build procurement
enterprises were established under the method had its roots well founded
defunct MoC: under this period.
• EBCA, ETCA, BNCE, BtCE, • Small scale private consultants and
NE&C, BERTA Construction. contractors emerged due to the change
• Competitive construction industry of economic policy.
was crippled. • Building Design Enterprise (BDE in
1985) and Transport Construction
Design Enterprise (TCDE in 1986)
were established.
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7. The Ethiopian Construction Industry
7.1 Historical Aspect: The Construction Development

V. 1991-2001: Parastatal Dominated construction Industry was

Legally Abolished

• Local and foreign private investors were allowed to participate in all areas of
construction activities
• State-owned construction and consulting companies were reorganized as
autonomous enterprises for subsequent privatization
• Regional governments established their bureaus for works & urban
development
• Direct awards to state-owned construction companies were minimized to
create competitive environment which was an encouraging development
• A new ministry called Ministry of Works and Urban Development
(MoWUD) was established.
• Ethiopian Building Codes and Standards (EBCS 1 – EBCS 11), 1995 was
formulated
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7. The Ethiopian Construction Industry
7.2 Current status of the construction sector
 Current status of the construction industry is distinguished by:
i. Lack of clear developmental objectives for the industry;
ii. Inadequate co-ordination of planning between the industry and
infrastructure programs in the various sectors of the economy;
iii. Heavy dependence on foreign resources such as materials,
equipment and expertise, which continue to be supplied to a
major extent by foreign consultants and contractors;
iv. Transport bottlenecks to the distribution of construction
materials and equipment;
v. Control of the construction sector by small-to-medium sized firms
and parastatal construction enterprises operating at low levels of
capacity and with inadequate working capital;
vi. inadequate and ineffective organizations representing the
interests of contractors, consultants and engineers;
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7. The Ethiopian Construction Industry
7.2 Current status of the construction sector
vii. inadequate numbers of suitably qualified and experienced
personnel, at all levels: engineers, technicians, mechanics,
operators and foremen etc.;
viii. inadequate relevant local construction regulations and standards
ix. inadequate consideration given to the use of local resources
(including community participation in labor-based works); and
x. little consideration given to the concept or cost of maintenance as
a component of investment costs.

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7. The Ethiopian Construction Industry
7.2 Current status of the construction sector
 The general state of the domestic construction industry in Ethiopia is
characterized by the following five major deficiencies:
I. An inadequate capital base;
II. Old and limited numbers of equipment;
III. Low levels of equipment availability and utilization;
IV. Deficiencies in technical, managerial, financial and
entrepreneurial skills; and
V. Insufficient and ineffective use of labor-based construction
and maintenance technology.

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7. The Ethiopian Construction Industry
7.3 Challenges in the construction sector
 Some of the major challenges faced in the Ethiopian construction
industry are:
Lack of equipment and material
Obstacles posed by government regulations
Scarcity of finance
Big projects off-limits to domestic firms
Inefficient custom and clearance
Lack of skilled labor
Construction project delays: Delays are endemic to
construction projects in Ethiopia.

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• Quantity Surveying –the process of calculating the
quantities and cost of works required for a project.

o Purpose of QS :
 Quantity of Material
 Tools & Equipment required
 Workers to be employed
 Schedule & Programs
 To fix up completion period
 To invite tenders
 For Valuation of an existing Bld.
Before you put yourself to the position of Quantity
Surveyor, make sure that:
• Construction and construction methods,
• laws relating to construction projects and accounting,
in order to provide cost and financial advice.
• You should know all mathematical formulas to
calculate Perimeter, Area, Volume and Weight
• You should know how to read Drawings
• You should know construction procedures
• You should know market price of materials, Rental of
Equipment and wages of labor
Tasks of Quantity Surveyor
• As a quantity surveyor, you may be required to perform the
following tasks.
I. Calculating the Amount of works in a construction project by
using applicable Mathematical formula
• Works in a construction project are measured in five units;
m, m2, m3, kg and Pc.
II. Estimating the probable cost of executing the works that have
already been calculated
• The total cost of a project is the sum of Direct Cost,
Indirect Cost and Profit.
III. Preparing Bill of Quantities and specifications
IV. Evaluating and approving/Rejecting payment requests
V. Handling Claims
• Time extension and Rate revision are some of the
major reasons for claims.
VI. Recording and documentation
VII. Evaluating variations
VIII. Preparing schedules
IX. Undertaking cost analysis for repair and maintenance
of Structures;
X. Advising on procurement strategy;
XI. Writing detailed progress reports;
XII. Ensuring projects are completed on budget and to
schedule;
Inputs to conduct Quantity Survey

I. Drawings:
• A complete set of Drawings is necessary
• Architectural working drawings
• Structural drawings
• Sanitary drawings
• Electrical drawings
• Other drawings (electro mechanical &
landscape)
II. Break down manuals
• Material breakdown
• Labor Breakdown
• Equipment (machinery) breakdown
THANK YOU!

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