IUE INSAM

SPECIALTY: CIVIL ENGINEERING TECHNOLOGY

COURSE: CONSTRUCTION TECHNOLOGY

LECTURER Mr. Akum Oben

LECTURE 5

CONSTRUCTION CONTRACTS AND THEIR DOCUMENTS

Contracts in construction industry may be grouped in two categories.
- Competitive bid contracts.
- Negotiated contracts
A) Competitive Bid Contracts
It involves inviting multiple contractors to anticipate for the work. Competitive bidding is done by
way of tenders, request for proposal (RFP), request for quotation (RFQ)
Includes the following types:
a.) Unit Price Contracts
The bid is based on the price per unit of work on of material.
Total cost = Estimated quantity x Unit price in the bid. Estimated quantity is taken from
prepared bill of quantities, measured from the contract drawings. When the work is completed, the
quantities are replaced by the measurements of the actual quantity of the work the contractor·
carried out.
Advantages:
i) The payment to the contractor can be calculated easily according to the amount of work
he did.
ii) The method gives freedom to alter the work of construction
iii) All tenderers are priced on exactly the same basis and their tenders may have minimal

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 variation
iv) Plans and specifications do not need to be completed in detail. But this method has a
disadvantage which is the employer doesn't know the exact cost of the work until it is
completed.
b.) Lump-Sum Contracts
Bidding is done on a total amount of the works and services required by the plans and
specifications. The specification and drawings need to be completed in every detail before a lump-
sum offer is called for. A bill of quantities may even be provided, not for pricing, but to list out
every operation he must do, thus assisting him to calculate his tender.
Advantages:
i) It avoids a lot of detailed accounting and measuring work
ii) Owner does know the exact cost of the work to him.
iii) The work is a straightforward job for the contractor and he will try to complete it as early
as possible in order to increase his profit.
Disadvantages:
i) Alteration of design or addition during construction by employer or engineer causes
troubles.
ii) Plans and specifications must be comprehensive and must show complete details which
require a lot of lime and money.
iii) Contractor has interested to use cheaper labour and materials.

B) Negotiated Contracts (Cost + Contracts)

Price of the work is not definitely fixed.
Price = cost+ profit
Here profit is a professional fee and is subjected to negotiation and bidding. They are used in such
cases where:
- The complete plans and specifications are not available - There is uncertainty to exact cost of the
construction
- There are possible wishes to change the work during the construction
- Work efficiency is required in the case of emergency
Types of Negotiated Contracts
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 a.) Cost + Percentage of Cost
It is forbidden in some countries, because has great disadvantages such as;
- Contractor will tend to pull up the cost of the work in order to get more money from the same
work.
- Owner has a great risk.
b.) Cost + Fixed Fee Contract
To avoid the disadvantage of cost+ percentage of cost contract, this type a contract is used. It is
used in war and in private building constructions; for which an accurate bidding estimate is difficult
to be prepared.
Disadvantages
Owner has the risk of the construction - Contract has not any incentive for the contractor to
minimize the cost.
c.) The cost + Fixed Fee + Contract with a Profit-Sharing Clause
There is increase in the contractor's profit if the contractor decreases the cost of the
construction. Contractor may get 25 to 50% of the saving he makes.
d.) Contracts Based on Cost + Sliding Scales of Fees
Contractor's fee changes proportionally to the actual cost of the work in accordance with a
sliding scale of fixed fee. He gets increasing fee with decreasing of construction costs and vice
versa. A minimum fee is guaranteed to him.
e.) Cost+ Guaranteed Ceiling Price Contract
The contractor guaranties that the construction will not exceed a certain maximum. He cannot
receive the compensation for the exceeding amount. These contracts require exact plans and
specifications for the establishment of a reasonable ceiling prices.

Documents of the Contract

A contract describes comprehensively what the works are and how payment is to be made. The
works are often quite complex, involving the contractor in many different operations and requiring
him to buy several items and materials and to employ a wide variety of men and machinery. The
construction contracts bind’s the contractor to construct the work and the employer to pay the
contractor for them. As such, the contract itself comprises a number of documents as including:

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a) Contract drawing:
It pictorially shows the works to be built, their dimensions and level, etc.
b) Specification:
Describes in words the work to be built, the quality of materials, workmanship to be used and
method of testing etc.
c) Bill of quantities:
Gives the expected measure of each operation of construction as calculated from the drawings.
d) General conditions of Contract:
Defines the liabilities, responsibilities, and powers of the employer, contractor and engineer. And
also cover the method of payments, insurance, liability of parties to the contract.
e) Tender:
Tender is the signed financial offer of the contractor to construct the works according with (a, b,
c, d) above
f) Letters of Explanation:
They cover the matters which are agreed between the parties of the contract to elucidate their
intentions.
g) Legal Agreements:
Which are signed by-parties, owner and contractor, confirming their intentions as defined by all
foregoing documents.

Elements in Construction Contracts

Competitive Bid Contracts
There is no any standard type of contract for all phase of engineering work. But certain articles can
be more or less standardized. All contracts contain:
a.) Introduction: Where stating date of agreement and the parties there to.
b) Articles: Which may be written in the following order:
1.) Consideration of work to be done and price
2.) Time (beginning and end of the work)
3.) Liquidated damages

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4.) Required security
5.) Payment of the contractor
6.) Definition of terms
7.) Responsibility and right of the owner during the construction
8.) Responsibility and right of the contractor during the construction
9.) Duties and authority of the engineer
10.) Progress and control of the work
11.) Insurance, safety and sanitary requirements
12.) Provision relating to subcontract
13.) Changes in the work
14.) Termination of the contract

c.) Final concluding paragraph: Signature of parties and witness.

Negotiated Contracts Selecting the Contractor

Here the contractor is an agent of the owner and there is a confidential relation between them.
Therefore, the selection of the contractor is very important. The following characteristics must be
observed during the selection of the contractor.
a) Previous experience in the particular type of work.
b) Reputation for fairness and excellence in performance
c) Quality and experience of personnel
d) Record in management and coordination of the work of subcontracts
e) Available working capital
f) Available plant and equipment
g) Normal volume of work per year.
h) Incomplete work in progress
i) Available work capacity

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Terms of Contract·
1- Definition of the scope of the work, its estimated cost and the contractor's fee.
2- Time for completion
3- Control of the work, responsibilities of the owner, engineer and the contractor.
4- Definition of the reimbursable direct costs and overhead costs
5- Labor and material
6- Provisions for plant, rental or purchase or maintenance of equipment and the overhaul of the
equipment at the end of the job.
7- Subcontractors
8- Method of compensation
9- ·Changes
10- Termination
11- Accounting method and control of costs

Specifications
While the drawings show extend and quantity of the work, the specifications defines the quality
and standards of it.
Specifications are prepared by an engineer while contracts are prepared by lawyers.
Specifications are supposed to be specific and not general. In a satisfactory specification, the
following characteristics should be covered.
a) Balanced Composition:
The specification should contain all the requirements consistent with the result desired.
b) Definite requirements:
There must be directions, not suggestions that may lead to uncertainty. Do not use indefinite
expressions like "Reasonable" or "Best Quality" and define the days as "working days" or "calendar
days". Everything has to be specified.
c) Accuracy:
Non-accurate and misleading information will not take place in the specifications. Repetitions in
text are sources of error.
d) Practicability:
Use standard sizes and patterns as much as possible. The impracticable requirements let the

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contractor to add an extra safety factor to protect him.
e) Prevention of conflicting requirements:
They are sources of error.
f) Fairness:
Do not impose harsh and unfair conditions and do not cancel difficulties from him. The risks
increase the cost of the construction.

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 SAFETY PROCEDURES FOR LIFTING

Introduction

Lifting operations are inherent to many construction works. They can be performed manually or
using lifting equipment. Both manual lifting and mechanical lifting operations can put construction
workers at great risk of injury or health disorders or disability.

Definitions of Lifting Operation

A lifting operation is an operation concerned with the raising and lowering of a load. A load is the
item or items being lifted. A lifting operation may be performed manually or using lifting
equipment. Manual lifting, holding, putting down, carrying or moving is often referred to as manual
handling of loads.

Lifting operations in construction occur during transportation of material from the storage place to
the place where it is being used, and during the processing of materials. A load includes any
material or people that are lifted or lowered by lifting equipment.

Lifting equipment in construction

Lifting equipment includes any equipment or machinery used at work for lifting or lowering loads
or people. There is a wide range of lifting equipment in the construction industry. Typical examples
are:

1. A hoist: is a device used for lifting or lowering a load by means of a drum or lift-wheel
around which rope or chain wraps. It may be manually operated or electrically.
2. A crane: is used to lift and lower heavy materials and to move them horizontally. Different
types that can be found in construction are:
❖ A tower crane: is a balance crane that consists of the same basic parts. Fixed to the ground
on a concrete slab, tower cranes offer height and high lifting capacity. The base is then
attached to the mast which gives the crane its height. The mast is attached to the slewing
unit (gear and motor) that allows the crane to rotate.

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 ❖ Telescopic crane: has a boom that consists of a number of tubes fitted one inside the
other. A powered mechanism extends or retracts the tubes to increase or decrease the
total length of the boom. These types of booms are highly adaptable, are often truck
mounted and used for short term construction projects.
❖ A mobile crane: is a cable-controlled crane mounted on crawlers or rubber-tired carriers
or a hydraulic-powered crane with a telescoping boom mounted on truck-type carriers
or as self-propelled models. They are designed to easily transport to a site and use with
different types of load and cargo with little or no setup or assembly.
❖ All terrain crane: is a mobile, truck mounted crane with the necessary equipment to
travel at speed on public roads, and on rough terrain at the job site using all-wheel and
crab steering.
❖ A crawler crane: is a crane mounted on an undercarriage with a set of tracks (also called
crawlers) that provide stability and mobility. They need little set-up and can travel with
a load but are very heavy and cannot easily be moved from one job site to another.
3. A power shovel: is a bucket-equipped machine, usually electrically powered, used for
digging and loading earth or fragmented rock and for mineral extraction conveyor systems.
4. A fork lift truck: is a powered industrial truck with hydraulic lift system and forks to pick
up and transport materials.
5. Lifting equipment for lifting people:
❖ An aerial work platform, elevating work platform, or mobile elevating work
platform: is a mechanical device used to provide temporary access for people or
equipment to inaccessible areas, usually at height. There are distinct types of
mechanized access platforms and the individual types may also be known as a "cherry
picker" or a "scissor lift". They can be vehicle-mounted, self-propelled or trailer-
mounted.
❖ A passenger lift or passenger hoist or construction elevator: is commonly used on
large scale construction projects, such as high-rise buildings to transport persons.

Lifting accessories

Lifting accessories means a component or equipment not attached to the lifting machinery,
allowing the load to be held, which is placed between the machinery and the load or on the load

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itself, or which is intended to constitute an integral part of the load. These accessories include
amongst others chains, ropes, slings, shackles, eyebolts, lifting/runway beams, lifting frames and
vacuum lifting devices.

The load

The load includes any material and people (or any combination of these) that is lifted by the lifting
equipment. Loads are often provided with permanent or semi-permanent fixed or attached points
for lifting. In most cases, these are considered to be part of the load. Examples of loads include:

• Loose bulk materials

• Sacks, bags, pallets
• Discrete items (such as a large concrete block)
• Machinery and any permanently attached lifting eyes
• A skip and the lugs fixed to its side.

Risks associated with lifting operations

a.) Risks of manual lifting

Examples of jobs in the construction with manual lifting tasks are: scaffolding, bricklaying and
processing plasterboard.

Manual lifting tasks with high loads or frequencies may induce disorders e.g back pain. Manual
lifting tasks can also lead to accidents such as cuts or fractures.

What makes manual lifting hazardous?

There are several risk factors that may increase the occurrence of injury from manual lifting. These
factors are related to the different characteristics of the load, the task and organisation of the work,
the work environment and the worker

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Load risk factors

• Too heavy or if the load is large, it is not possible to follow the basic rules for lifting and
carrying — to keep the load as close to the body as possible; thus, the muscles will get tired
more rapidly; moreover, the shape or size may obscure the worker’s view, thus increasing
the risk of falling.
• Unbalanced or unstable objects or if the contents can move make it difficult to hold the
center of gravity of the load close to the middle of body; this leads to uneven loading of
muscles and fatigue; moreover, loads containing liquid can lead to an uneven distribution
and sudden movements of the load can make the worker lose their balance and fall
• Difficult to grasp: this can result in the object slipping and causing an accident; loads with
sharp edges or with dangerous materials can injure workers. Gloves usually make the
grasping more difficult than with bare hands. Providing the objects with handles or using
aids for gripping reduces the load on the worker.

Organization of work Risk Factors

• Awkward postures or movements, e.g. a bent and/or twisted trunk, raised arms, bent wrists,
over-reaching
• A high frequency or repetition with insufficient recovery periods;
• A high rate of work, which cannot be influenced by the worker
• Unstable loads or loads handled with the body in an unstable posture.

Work Environment Risk Factors

• Insufficient room, in particular vertically, to carry out the activity; this may lead to awkward
postures
• Uneven floors, thus presenting tripping hazards, is unstable or is slippery in relation to
the worker's footwear
• Bad position of the load or work place design, causing reaching with the arms, bending or
twisting the trunk and elevated arms yield high muscular force

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 • Variations floor levels or in working surface, requiring the load to be manipulated on
different levels
• Unsuitable temperature, humidity or ventilation, making workers feel tired; sweat makes it
hard to hold tools, meaning that more force must be used; cold can make hands numb,
making it hard to grip
• Insufficient lighting, increasing the risk of accidents, or force workers into awkward
positions to see clearly what they are doing.

Individual characteristics

Such as:

• Lack of experience, training and familiarity with the job

• Age: the risk of low back disorders increases with age and with the number of years at work
• Physical dimensions and capacity such as height, weight and strength
• Prior history of musculoskeletal disorders, in particular back disorders.

Manual handling of heavy loads can cause injuries if the load suddenly hits the worker or causes
slipping or falling.

b.) Hazards of using lifting equipment

The hazards: associated with the use of lifting equipment in construction are:

• Hazards related to the loads, e.g. crushing due to impact of moving objects or loads falling
from vehicles because they are not slinged properly or the wrong type of slings were used
• Hazards from moving vehicles or collapsing structures, i.e. cranes falling over because of
improper fixation or strong wind, unsafe loads, loads exceeding the safe weight limits,
trapping/crushing risk in the use of MEWPs while working at height, falling from height ,
limbs or bodies caught in machinery
• falling from lifting platforms or being crushed when the platform moves
• musculoskeletal hazards related to force exertions, poor working postures and/or repetitive
work

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 • hazards related to poor environment that may interfere with communication between
workers or concentration needed for the task (noise) or cause sweaty, slippery objects (heat,
poor ventilation)
• Contact with overhead electrical cables.

Possible causes of these hazards may be: poor mechanical design (breaks in use, not powerful
enough, components fracture or malfunction), poor workplace design, malfunction of the ystem,
not using the proper equipment for the purpose or misuse (not using as designed, e.g. the load was
too heavy), loads insecurely attached, poor maintenance (breaks or emits noxious gases) or untidy
workplace, human error when operating machines or erecting scaffolding.

Ensuring safe and healthy lifting operations

General requirements

All employers have legal duties to fulfil to prevent harm to workers. The most important directives
regarding lifting operations and lifting equipment in construction are:

Risk assessment of lifting operations

Employers are required to assess the health and safety risks that their employees face and to reduce
these risks to an acceptable level. Generally, an effective risk assessment should comprise the
following steps:

• Identify hazards and those at risk

Think about the work that is done and identify what might cause or increase the risk of work related
disorders. Involve the employees in this process. With respect to lifting operations and lifting
equipment the risk assessment should focus on the risk factors that have been described before.
Think about everyone who may be hurt by each hazard. This means not just employees, but also,
self-employed persons, and members of the public. Specific attention should be paid
to young and older workers. Consider the causes of the identified hazards.

• Evaluate and prioritize the risks

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Evaluate the risk for each hazard, which means calculating the probability of harm to occur and
how severe the health effect may be. Prioritize the risks based on the exposure, the probability and
the severity of the effect.

• Decide on preventive action

If health risks do exist develop a plan of action for risk reduction. Check whether the hazard can
be removed completely, whether the risk can be controlled, if protective measures can be taken to
protect the whole workforce or if personal protective equipment is needed to protect workers if a
risk that cannot be adequately controlled by collective preventive measures.

• Take action

Prioritize preventive and protective measures and specify short and long term actions. Specifying
who does what and when, when a task is to be completed and the means allocated to implement
the measures.

• Monitor the risks, and review preventive measures.

Evaluate, on a regular basis, to see if the risk has been reduced to an acceptable level and if new
risks have emerged. Decide if further action should be taken.

Specific tools are available for risk assessment at constructions sites, of manual handling

Preventing Occupational Safety and Health (OSH) hazards at the pre-build phase

Health and safety should be designed into constructions, before, during and after the building
phase. Architects should be made aware of the potential hazards of their design and improvements
that can be made by avoiding the need for manual handling. Contractors, clients, and suppliers can
encourage good practice standards to be fully implemented. The risks to construction workers can
be avoided before work starts on site by:

• Putting in place a purchasing policy for machinery and work equipment, for example,
buying equipment that meets the essential health and safety requirements

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 • Setting health and safety requirements in tender specifications (meeting national legislation
as a minimum)
• Planning the work process to minimize the number of workers who could be harmed
• Starting control activities before getting to site, e.g. by planning, training, site induction
and maintenance activities
• Ensuring all persons, including managers, are trained and able to carry out their work
without risk to the safety or health of themselves or other workers. The drivers and operators
of vehicles and earth-moving or materials-handling equipment should be trained
and physically fit.

Risk reduction of manual lifting

It requires employers to use the appropriate means to:

• Avoid the need for manual handling of loads by workers;

• Take the appropriate organizational measures to reduce the risk if manual handling cannot
be avoided;
• Ensure that workers receive adequate information on the weight of a load, the center of
gravity or the heaviest side when a package is unevenly loaded; and
• Ensure proper training and precise information on how to handle loads correctly.
• Risk elimination — consider whether manual lifting operations can be avoided, for example
by using powered or mechanical handling equipment. The use of a crane on site enables it
to be always available for use, such as taking delivery of materials.
• Risk reduction by technical measures: if manual lifting cannot be avoided, consider if lifting
loads can be reduced, e.g. by using light materials or supplying materials in smaller bags.
If that is not the case consider if lifting equipment can be used and which device would be
preferable with respect to safety and health aspects and costs. Ensure that the lifting
equipment is ergonomically well designed and well maintained.
• Risk reduction by workplace measures: improve workplace conditions to reduce the risk,
e.g. by planning the storage of building material close to the place where it is being used
and by keeping the work site clean and without obstacles to reduce the risk of slip injuries

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 during manual handling. Ensure that materials that need to be lifted manually are positioned
in a way that limited bending or reaching is needed.
• Risk reduction by organisational measures such as reducing the physical task demands such
as frequency and duration of manual lifting operations, e.g. by introducing job rotation and
the introduction of breaks.
• Inform the workers to increase their awareness of risk factors present, how to recognize and
avoid unsafe working conditions and the consequences of not avoiding them. Furthermore,
workers have to be trained in using the safe and healthy working methods.

Requirements when using lifting equipment

The employer is responsible for ensuring that lifting operations within his scope of work are carried
out safely and must identify one person to be in control of the lifting operation. The employer shall
ensure that every lifting operation involving lifting equipment/accessories is properly planned by
a competent person, appropriately supervised and carried out in a safe manner. To ensure this, he
should:

• Nominate a competent person who is suitably trained and experienced to ensure safe lifting
operations
• Provide adequate resources to enable lifting operations to be carried out safely
• Ensure that all appointees i.e. supervisors, crane operators and operatives with duties under
this procedure are properly trained, licensed, competent and aware of those duties
• Confirm by regular monitoring that lifting procedures are being properly implemented.

Planning the lifting task

Before performing a lifting operation, the workers should plan and prepare for the task. They should
make sure that they know where they are going, that the area is clear of obstacles and they have a
good grip on the load. This includes training of the workers on how to handle loads correctly: their
hands, the load and any handles should not be not slippery. If they are lifting with someone else,
they should both know what they are doing before they start. For a safe performance of a manual
handling task they should put their feet around the load, with the body over it, i.e. as close as
possible to the load. The lift should be performed using the leg muscles and with straight back. The

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load should be as close as possible to your body. Lift and carry the load is done with straight
downward turned arms.

Requirements for lifting equipment

The employer shall ensure that lifting equipment provided for use at work is safe, i.e. that it is:

• Sufficiently strong, stable and suitable for the proposed use.

• Positioned or installed to prevent the risk of injury, e.g. from the equipment or the load
falling or striking people
• Visibly marked with any appropriate information to be taken into account for its safe use,
e.g. safe working loads. Accessories, e.g. slings, clamps etc., should be similarly marked
• Where equipment is used for lifting people it is marked accordingly, and it should be safe
for such a purpose, e.g. all necessary precautions have been taken to eliminate or reduce
any risk.

Using mobile lifting equipment

Before using mobile lifting equipment, the following safety precautions should be taken:

• The working environment: Routes should be leveled, marked and planned in such a way as
to avoid potential hazards such as overhead power lines and steeply sloping ground. Where
possible a one-way system should be used. Speed limits should be required and clearly
displayed, they should be reduced for adverse site conditions and for areas near work in
progress. The working environment should be kept clean and tidy, with floors and access
routes clear of obstacles. Good lighting levels are needed to ensure that all potential
hazards, e.g. obstructions and spills can be clearly seen.
• Check machines on fuel, oil, and water levels, water, fuel, and hydraulic lines for leaks, the
condition of the tracks or tires, the condition of attachment cutting edges and teeth, visibility
from the cab, windows, mirrors and lights, worn or slippery surfaces, etc.
• If vehicles drive backwards when the driver’s rear view is obscured, the help of another
worker is required. If no one is available, the driver must walk round to the rear of the
vehicle themselves to see that all is clear and give a sound signal before starting to reverse.

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 Additionally, these vehicles should use an audible warning device such as a horn when
driving in reverse.
• A crane operator should always move loads according to the established code of signals,
and use a signaller. Hand signals are preferred and commonly used. A signaller may be
required by law if the operator's view of the intended path of travel is obstructed. The
assistance of a trained and authorized signaller should be available when the view of the
driver or operator is restricted. The signaler must be in clear view of the operator, have a
clear view of the load and equipment and keep other persons out of the machine’s operating
area.
• Drivers and their assistants should wear safety shoes during loading and unloading.

Requirements for lifting of personnel

• Lifting of construction personnel shall be avoided unless it is the least risk option. Personnel
transfer by lifting is not permitted in hours of darkness unless specifically approved by the
site manager and supported by thorough risk assessment and assessment of alternatives.
• The equipment used for lifting personnel for work and for personnel transfer shall be
specifically designed, certified and clearly marked as suitable for personnel lifting and
should not be used for any other purposes. Using lifting equipment which has not been
specifically designed for lifting people should only occur in exceptional circumstances, e.g.
for rescue purposes.
• All personnel lifts shall be classed as non-routine lifts and be subject to stringent planning
and controls, risk assessment and written authorization by the site manager. Before the lift,
the person in charge of the lift shall sign to confirm all involved personnel have been trained
and understand the lift plan and the risks involved. Pick up/set down areas shall be of an
adequate size and free from hazards affecting access and egress from the carrier.
Environmental and other limits for personnel lifts shall be set out in the lift plan with clarity
on where they differ from limits for other lifting. In case of any changes in job scope or
conditions, the job shall be made safe and stopped, risks re-assessed and a pre-job meeting
executed before the job is restarted. Examples of such changes include weather conditions,
day or night operations or changes in personnel or equipment involved.

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 • Equipment for lifting people shall be fitted with two distinct mechanisms for preventing the
load from falling, one of which shall be self-acting/fail safe. Any free-fall possibility should
be locked out.
• Personnel lifts shall only be conducted where there is line of sight (full visibility) between
the equipment operator and signaler, and between the signaller and the person being lifted.
• A rescue plan shall be prepared for all personnel lifts as part of the lift plan. All equipment
required to implement the rescue plan shall be readily available prior to and during the lift.
Rescue plans shall be practiced at regular intervals

Maintenance and inspection

Accidents may happen because lifting equipment is not inspected and maintained regularly. All
equipment should be thoroughly examined prior to it being put into service and after there has been
any major alteration that could affect its operation. Lifting equipment may need to be thoroughly
examined at intervals laid down in an examination scheme drawn up by a competent person, taking
into account the manufacturer’s recommendations and national regulations. All examinations must
be undertaken by a competent person who is sufficiently independent and impartial in order that
an objective decision can be made.

What needs to be examined depends on the professional judgment of the competent person
undertaking the examination. For most common lifting equipment and accessories, there are
standard procedures and criteria. Methods include a visual examination and functional checks,
measurements of wear, traditional non-destructive testing and load testing.

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