AdvancedTopic 103 of 112Civil & Structural
Contracts and tendering
Legal frameworks allocate risk and responsibility.
In depth
Procurement and contract types: lump sum, unit price, cost-plus, design-build, EPC, PPP. Standard forms (FIDIC, NEC, AIA) allocate risk. Tendering involves prequalification, bid evaluation, award, variations, claims and dispute resolution. Ethics and transparency are essential.
Key points
- Bid bond and performance bond
- Liquidated damages
- Extension of time
ExampleFIDIC Red Book is commonly used for employer-designed works.
Contracts allocate risk and responsibility among the client, designer and contractor, which strongly affects cost, delay and disputes.
What is Contracts and tendering?
Legal frameworks allocate risk and responsibility.
Why is it important to understand contracts and tendering?
Contracts allocate risk and responsibility among the client, designer and contractor, which strongly affects cost, delay and disputes.
What is a fixed-price contract?
A contract where the contractor takes most of the cost risk for the agreed scope, which gives the client cost certainty but may limit flexibility.
What is a tender?
A formal offer submitted by bidders in response to a client's invitation, usually compared on price and quality.
How is Contracts and tendering used in practice?
Typical applications include choosing a fixed-price contract for a simple building project, setting up a design and build contract for a bridge and specifying the liability for delays in a major infrastructure project.
What should I learn before Contracts and tendering?
Study "Estimating and costing" first (topic 102 of 112 in Civil & Structural). It covers the groundwork this topic builds on.
What are the key points of Contracts and tendering?
Bid bond and performance bond. Liquidated damages. Extension of time.
Can you give an example of Contracts and tendering?
FIDIC Red Book is commonly used for employer-designed works.
What comes after Contracts and tendering?
The next topic is "Construction equipment", which builds directly on this one.
How difficult is Contracts and tendering?
It is classed as Advanced in Civil & Structural (topic 103 of 112). It is an advanced topic. It assumes you are comfortable with the intermediate topics in Civil & Structural.