Page 67 - Civil Engineering Project Management, Fourth Edition

Civil Engineering Project Management
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contractor that the decisions he makes are likely to be satisfactory, and given
independently and impartially.
In the most widely used conditions of contract, decisions made by the engin-
eer can be accepted by the parties to the contract; but, if either party should
so choose, the engineer’s decisions can be challenged and if need be taken to
external decision. This ability to challenge the engineer’s rulings can be seen as
supporting the effectiveness of his role (see Sections 8.2, 17.15 and 17.16).
Given efficient contract documents and completion of the designs before
construction starts, the appointment of an independent engineer to adminis-
ter the contract encourages contractors to submit their keenest prices. Many
contractors will seek out the reputation of such an engineer for his experience
and ability to apply fair dealing, and will adjust their prices accordingly. This
benefits both the employer and contractor since it gives assurance that their
interests will be protected. It also facilitates the resolution of any construc-
tional problems that arise, so that disputes arising over contractors’ claims are
rare. Few civil engineering contracts handled in this manner need settlement
by resort to arbitration or a court of law.
A project manager holds a different appointment from the independent
engineer described above. His appointment is designated under the relatively
recent ICE’s ECC form of contract described in Section 4.2(f). He may carry
out many similar duties as the engineer under the traditional form of contract,
but he is not fully independent. The specific content of the contract will define
the limit of his powers to act independently. Decisions made by the project
manager on matters that are subject to assent by the employer will commit the
employer, who will not be able to dispute them. From the contractor’s point
of view, the project manager’s decisions will be regarded as the employer’s;
so he may feel it necessary to increase his prices to cover the risk the employer
might tend to interpret the contract in his own favour. If the contractor is to
offer his lowest prices he has to be assured the terms of the contract will be
interpreted impartially; for this reason an adjudicator is appointed to whom
the contractor can take his disputes with the project manager.
The supervisor under the ECC has a role which is mostly restricted to
watching over construction and attending tests, etc. although he has some
powers to issue instructions and for correction of defects.
The resident engineer is the engineer’s representative on site under the ICE
conditions or an assistant of the engineer under FIDIC. He may be delegated
some of the engineer’s powers depending on his experience and the type of
work as well as the remoteness of the site from the engineer’s office. His main
role, however, is to ensure the works are carried out as required by the contract.

5.3 The contract documents

A contract is an agreement between two parties which they intend to be
legally binding with respect to the obligations of each party to the other and