Indian Quantity Surveyors Association

Workshop on
T017 – Contract Practice

Kamal Paranawithana BSc(Hons), FInstLM, MRICS, ACIArb

Chairman, CPD Committee, RICS-UAE Board
Trained APC Chair / Assessor & SPR Assessor of RICS
Middle East Local Network Leader of College of Estate Management, UK
Review Committee Member of University of Vocational Technology, Sri Lanka
Market Sector Manager (QS) & Approved Contract Specialist of Halcrow International Partnership

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 Workshop agenda

APC ???
T017 - Contract Practice Competency
Some Practical questions
FIDIC Rainbow family
Some tips to become a successful APC candidates

2
 Workshop agenda

APC ???
T017 - Contract Practice Competency
Some practical questions
FIDIC Rainbow family
Some tips to become a successful APC candidates

3
 APC ???

About the APC

Competencies
What is QS?
Work elements

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 About APC
About the APC

Abstract from:
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 Competencies

Competencies:
Mandatory-M : 6L1, 3L2, 1L1= 10
Core - T : 6L3 = 6
Optional – M/T : 2L2 = 2

Levels :
Level 1: Knowing - Knowledge & understanding
Level 2: Doing - Application of knowledge & understanding
Level 3: Advising - Reasoned advice & depth of technical
knowledge

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What is QS?

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Work Elements

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 APC ???

About the APC

Competencies
What is QS?
Work elements

9
 Workshop agenda

APC ???
T017 - Contract Practice Competency
Some Practical questions
FIDIC Rainbow family
Some tips to become a successful APC candidates

10
 T017 - Contract Practice Competency

Overview on the “T017 - Contract Practice”

Work element V competency
Work element with T017 competency
Contract Selection
Contract Procedure - Establishing a contract
Contract Procedure - Contract mechanisms
Post contract cost control
Commercial management of contracts

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Overview on the “T017 - Contract Practice”

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 Work element V competency

Element Contract Practice (T017)

Estimating X
Cost planning X
Procurement X
Tendering X
Contract selection √
Contract Procedures √
Post contract cost control √
Commercial management √
of contracts
Quantification of works X
Construction technology X
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Work element with T017 competency

Work Element

Contract selection

Contract Procedures

Post contract cost control

Commercial management of
contracts

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 Contract Selection

Advice on the most appropriate form of

contract to be used:
JCT / NEC / GC Work / ICE / IChemE /FIDIC

Main contracts works in respect of:

Roles and responsibilities of the parties
Pricing options
Risk allocation – design
Client’s specific consideration on selection

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Contract Procedure - Establishing a contract

Basic Contract law

- LOI, LOA
Contract legislation
- current case-law
Standard forms of contract
Contract documentation
Third party rights
- legislation, collateral warrantees

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 Contract Procedure - Contract mechanisms

Roles of the parties under the contract

-parties involved, assignment / novation
Conflict avoidance and dispute resolution
Contractor designed works
Sub-contracting – Named / Nominated
Payment provisions
Change procedures
Bonds/ Parent company guarantees
Insurance
Retention – including retention bonds
Liquidated and ascertained damages
Claims – EOT, acceleration, loss and expanses
Early possession and phasing – sectional / partial
Termination of contract and insolvency
Contract completion
Final accounts
Defects / rectification
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 Post contract cost control

Managing change control procedure

- variation / varied works,
Expenditure of provisional and prime cost sum
Carrying out interim valuations
- advance payments, materials, fluctuations, retention
Managing risk
- insurances,
Dealing with claims / loss & expenses
Authentication of actual costs
Final accounts

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 Commercial management of contracts

Administration of sub-contract & supplier agreement

Managing contingency & risk
Preparation of information for internal / external audit
Forecasted final account projection

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Work element with T017 competency

Work Element

Contract selection

Contract Procedures

Post contract cost control

Commercial management of
contracts

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 Workshop agenda

APC ???
T017 - Contract Practice Competency
Some practical questions
FIDIC Rainbow family
Some tips to become a successful APC candidates

21
Some practical questions

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 Some practical questions

1. LOI / LOA?
2. Warrantee / guarantee?
3. Material on / off site?
4. Invoice / invoiced price?
5. Variation / varied works?
6. Defined / undefined provisional sum?
7. Under / over recovery of OH?
8. Delay / disruption?
9. Mitigation / acceleration?
10.LAD / penalty / damage?
11.Claim / disputes?
12.Amicable settlement in FIDIC4?
13.ADR/Arbitration/litigation?
14.Adjudication / statutory adjudication?
15.Expert / factual witness?
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 Workshop agenda

APC ???
T017 - Contract Practice Competency
Some practical questions
FIDIC Rainbow family
Some tips to become a successful APC candidates

24
 FIDIC Rainbow family

Red Book : for Construction for Building and Engineering

Works Designed by the Employer
Silver Book : Conditions of Contract for EPC/Turnkey Projects
Yellow Book : Plant and Design-Build for Electrical and
Mechanical Plant and for Building and Engineering Works
Designed by the Contractor
Green Book : The Short Form of Contract
Gold Book : Design, Build and Operate Projects
White Book : Client/Consultant Model Services Agreement
Blue- Green Book : Dredgers Contract (2006)

New:
Construction Contract MDB Harmonised Ed Model
Representative Agreement

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FIDIC Contract Continuity

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 Workshop agenda

APC ???
T017 - Contract Practice Competency
Some practical questions
FIDIC Rainbow family
Some tips to become a successful APC
candidates

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 Some tips to become a successful
APC candidates

Understand competencies
Learn in breath & depth
Gain sufficient exposure
Get-on with the critical analysis – 30%
Practice presentation
Improve concentration and listening skills
Understand the question before answering
Market yourselves to the APC panel
Trust the panel capabilities & professionalism
Gain panel confidence
Retain self confidence
Capitalise easy questions
Focus-on-the next when you face difficulty

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 Workshop agenda

APC ???
T017 - Contract Practice Competency
Some practical questions
FIDIC Rainbow family
Some tips to become a successful APC candidates

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Q&A

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 Wish you all the best for the APC !

Thank you

Kamal Paranawithana BSc(Hons), FInstLM, MRICS, ACIArb

Chairman, CPD Committee, RICS-UAE Board
Trained APC Chair / Assessor & Trained SPR Assessor of RICS
Middle East Local Network Leader of College of Estate Management, UK
Review Committee Member of University of Vocational Technology, Sri Lanka
Market Sector Manager (QS) & Approved Contract Specialist of Halcrow International Partnership

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