Page 64 - Civil Engineering Project Management, Fourth Edition

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Contract conditions used for civil engineering work
the contractor is responsible for proper construction. The contract can be on
the basis of cost plus a percentage fee (rarely used) or cost plus a fixed fee, or
a target cost. Payment terms have to define which costs are reimbursable and
which are covered by any lump sum payments. Payment is made on the basis
of the estimated expenditure for the forthcoming month, subject to adjust-
ment of the preceding month’s payment according to the actual expenditure
incurred. This amounts to payment in advance. A project manager adminis-
ters the contract but he does not have a fully independent status, although he
is required to act impartially in some matters. The purchaser is responsible for
the actions of the project manager and cannot dispute his decisions. These
I Chem E conditions have been used occasionally for certain civil engineering
works, primarily because they form a framework on which to base a cost
reimbursement contract.

4.6 Other associated conditions

ACE Forms of Agreement

The Association of Consulting Engineers produces a series of forms of agree-
ment suitable for the employment of a consultant or other person to carry out
studies, design, construction supervision or management of various types.
These agreements are compatible with the standard ICE forms of contract but
are also intended for use alongside any of the major forms of construction con-
tract setting out the obligations and liabilities of the consultant and defining
his duties. Other forms of agreement are also available for project management,
planning supervisor (CDM Regulations), designer to a D&C contractor and for
sub-consultants.

CECA Sub-contract forms

The Civil Engineering Contractors Association produces a standard form of
sub-contract for use with the standard ICE forms. Several versions are avail-
able to use with particular main contract conditions, such as ICE 7th edition
and D&C. These sub-contract forms are generally known in the industry as
the ‘Blue Form’ and care must be taken to identify which blue form applies to
any specific sub-contract. Forms are also available for use with GCWorks 1.
The sub-contractor is deemed to have full knowledge of the main contract
and many provisions such as for payment, claims and variations are intended
to reflect the terms of the main contract. Mechanisms for dealing with dis-
putes also reflect the standard ICE conditions and provision is made for these
to be dealt with jointly where the matter in dispute affects both contracts.