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CIVL202 Construction Engineering I

CIVL202 Construction Engineering I. Tutorial 3 T1 Mon 11:00 – 11:50 T2 Wed 09:00 – 09:50. Tutorial Outlines. Performance Bond Payment Bond Cost and Requirement for Bonds Acceptance Period Award of Contract Contract Agreement Time extensions Rework Change Orders. Performance Bond.

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CIVL202 Construction Engineering I

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  1. CIVL202Construction Engineering I Tutorial 3 T1 Mon 11:00 – 11:50 T2 Wed 09:00 – 09:50

  2. Tutorial Outlines • Performance Bond • Payment Bond • Cost and Requirement for Bonds • Acceptance Period • Award of Contract • Contract Agreement • Time extensions • Rework • Change Orders

  3. Performance Bond • Definition: A bond that protect the owner against default on the part of the contractor in performing the project as required • Issued after award of contract • Issued to pay for the damage to the owner • Damage: time or money

  4. Payment Bond • Definition: protects the owner against any unpaid charges as a result of contractor’s default • Issued after award of contract • Issued as a kind of short-term financing for a contractor with financial difficulties

  5. Cost and Requirement for Bonds • Bonding capacity • Definition: The amount that a bonding or surety company is prepared to put at risk in the bonds that it writes for the construction professional. • Multiple of the net quick asset • Usually, the more reliable the contractor, the greater value the multiple is

  6. Acceptance Period • Objective: to protect the bidders • Prior to bid opening, bidders can withdraw without any penalties, but bidders cannot withdraw after bid opening • After bid opening, there is an acceptance period of 60-90 days • If the owner do not act within the acceptance period, the bidder can withdraw and adjust the bids

  7. Award of Contract • Notification of award • Time extensions • Damage for failure to complete the project on time • Duration • If there are barriers to restrict the entry of construction site, letter of intent will be sent

  8. Contract Agreement • Formalized to sign a contract agreement • Covers drawings, general conditions, supplementary conditions, technical specifications, addenda

  9. Time Extension • Claims for delays led by circumstances beyond contractor’s control, e.g. by owner, owner’s agent, acts of God • Large percentage of delays are related to design-related problems

  10. Rework • Definition: Carry out the same job more than one time • Can be caused by: site activities, ineffectiveness of prior project phase

  11. Change Orders • Changes during construction lead to alteration of original contract document • Can be caused by poorly scoped or prepared contract document or changed conditions of the project • Changed conditions: e.g. undetected subsurface conditions or any other conditions which are not detected during design phase

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