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CONTRACTS GROUP 5

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Troy Alunday
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16 views

CONTRACTS GROUP 5

Uploaded by

Troy Alunday
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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✓ The Owner may make any variation of the form, quality, or

quantity of the Works that may, in his opinion, is urgent and


necessary, may order the Contractor to do the adjustment
subject to the following considerations:
❑ Increase or decrease the quantity or any work included in the
Contract.
❑ Delete any such work
❑ Change the character or quality or kind of any such work.
❑ Change the levels, position and dimensions of any part of the
Works.
❑ Execute additional work of any kind necessary for the
completion of the works
✓ If the Contract does not contain any rates and
prices applicable to the extra or additional work,
then suitable rates shall be agreed upon between
the Owner and the Contractor using any of the
following methods:
❑ Supplemental Bill of Quantities and schedule of
prices.
❑ Lump-sum amount
❑ Cost plus percentage
✓ The Owner shall have the right to suspend the Works wholly or
partly by written order for such period as may be deemed
necessary due to unfavorable weather conditions considered
to be unsuitable for the prosecution of the Works.
✓ The Contractor shall immediately comply with such order to
suspend the work wholly or partly as directed.
GC–39
UNAVOIDABLE DELAYS
 Should the cotractor be delayed in the completion of the Works by the act, neglect, or
default of the Owner or of any other contractor(s) engaged by the Owner in the same
and or adjoining project, or by any damage caused by fire or other calamity for which the
Contractor is not responsible, or by the combined action of workmen in no way not
caused by or resulting form neglect, default or collusion on th part of the Contractor, the
time herein set for completion and the time lost by reason of any for all of the causes
aforesaid, shall be extemnded or added to the contract time and shall be approved by
the Owner.
 However, no such extension shall be made unless a claim therefor is presented in writing to
the owner within 30 calnedar days after the occurrence of such delay. No claim for
damages resulting to from the delay caused by the act, neglect, or default of the Owner
will be entertained, except for corresponding extension of Contract.
GC–34 – EXTENSION OF CONTRACT TIME

 Should the amount of additional work of any kind or other special circumstances of any
kind whatsoever occur such as to fairly entitle the Contractor of the extension of Contract
Time for the completion of the Contract Works under this Contract, the Owner shall
determine the time for such extension.
 The owner shall not be bound to take into account any claim for an extension of time
unless the Contractor has, prior to the expiration of the Contract Time and within 30
calendar days after such work has been commenced or after the circumstances leading
to such claim have arisen.
 No extension of contract time whatsoever shall be granted to the Contractor due to
ordinary unfavorable weather conditions.
 Non availability of equipment or materials to be furnished by him
 Labor problems, and such other causes for which the Owner is not directly responsible. Or
when the affected activities do not fall within the so called CRITICAL PATH METHOD of the
approved PERT/CPM network. Or when the reason given to support the request for
extension was already considered in the determination of the Orginal Contract Time
during the conduct of detailed engineering.
WHAT IS PERT/CPM?

 PERT
- is Program Evaluation and Review Technique
is a control tool for difining the parts of construction job in a network form
 CPM
- is Critical Path Method
this is a tool used in planning, scheduling, and control of construction work
slidesmania.com

GENERAL
CONSTRUCTION METHODS AND

CONDITIONS
PROJECT MANAGEMENT

GC-41 Contractors Right to Terminate Contract


slidesmania.com

GC-41 Contractors Right


to Terminate Contract
● Contractor can give 15 days
notice to stop work or terminate
contract if it is completely
stopped for more than 3 months.
● If work is not resumed within 15
days, the contractor can
terminate the contract without
prejudice to other rights or
remedies.
slidesmania.com

GENERAL
CONSTRUCTION METHODS AND

CONDITIONS
PROJECT MANAGEMENT

GC-42 The Owner’s Right To Terminate Contract


slidesmania.com

GC-42 The Owner’s Right


To Terminate Contract
The Owner can terminate the Contract at anytime if
the Contractor does not show satisfactory progress in
the Works and has already incurred a negative
slippage of 15% or more regardless of weather or not
previous warning and notices for him to improve his
performance has been issued.
GC-43
TAKE OVER BY THE OWNER
OF CONTRACT WORK
OWNER may take over the work under contract if the
CONTRACTOR:
A. Fails to make satisfactory work progress or to comply
with orders of the owner.
B. Does not actually have a minimum essential equipment
on Project Site necessary to prosecute the work in
accordance with the approved construction schedule
required for the project,before 25% of the original
Contract Time expires .
C. Refuse or neglect to remove materials and perform new
work that has been rejected being defective and
unsuitable.
OWNER may take over the work under contract if the
CONTRACTOR:

D. Shall become INSOLVENT


E. Declared BANKRUPT
F. Shall make an ASSIGNMENT OF ALL HIS
PROPERTY for benefit of his creditors.
G. WILLFULLY violating any of the conditions, cavenants
and stipulations of the Contract.
In accordance with the existing rules
and regulations, OWNER shall have
the right, without judicial process
or action to:

1. Rescind the Contractor and


suspend further payments to the
Contractor.
2.Take over the works and complete
it, either by administration or by
contract with other qualified
contractors.
Upon reciept of notice, the Contractor shall vacate
the Project Site and deliver the works, or the part
specified in the said notice peaceably to the
supervising Architect or Engineer.
At the option of the Owner:

• All material, caisons, erection and such essential equipment


as may be needed for the construction of the project shall
remain on the Project Site until completed at rental, if any,
as the Owner may consider reasonable.
• Other materials and equipment that does not belong to the
Contractor but to others shall be retained and used in the
project at the cost of the failing contractor, or pay
reasonable rent for their use, chargeable against the
Contractor, or return them to the owners.
Damages which the Contractor and/or Sureties
may be liable:

***Note: A surety bond is a three-party agreement between a surety, a contractor, and an owner. The surety,
(typically an insurance company) promises to satisfy the contractor’s obligations if the contractor fails to perform
in accordance with the construction contract.
***Note:
Contract Price is the total amount agreed upon by two parties for a service or good.
Total Expenditure is the total amount of money that is spent on a product or service in a given time period
GC-44
PAYMENT FOR
TERMINATED
CONTRACT
Payment
for
Completed
Work:
CONTRACTOR IS PAID FOR
ALL COMPLETED WORK UP
TO TERMINATION DATE
AT CONTRACT RATES.
Conditions:

Partially Completed Materials/Goods: Construction Plant


Work: Payment for materials or Removal:
Payment for partially completed goods ordered and delivered Reasonable cost for removing
items as agreed upon by Owner to site for Permanent or Construction Plant and
and Contractor. Temporary Works. returning it to Contractor's
plant site.
Owner's Credits:

Any previous
Outstanding
payments made to
balances due to
Contractor for the
Contractor for
execution of the
advances.
Works.
GC-45 Final
Inspection
Completion
Notification
Contractor notifies Owner of
completion of Contract Works.
Preliminary Inspection
Conducted by supervising Architect or Engineer upon Contractor's notice.

o Satisfactory Work:
Final acceptance is recommended, subject to GC-54 Warranty for Defects.

o Unsatisfactory Work:
Contractor receives instructions for correction.
Correction and Re-inspection:
CONTRACTOR MUST PROMPTLY CORRECT ISSUES AND A RE -INSPECTION WILL BE CONDUCTED.
Notification of
Final
Acceptance:
Owner notifies Contractor of
final acceptance in writing
within ten (10) calendar days
or as soon as practicable.

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