By Alan C. Twort, J Gordon Rees
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Additional resources for Civil Engineering Project Management, Fourth Edition
In this case the employer could obtain further security for his down payment by retaining ownership of the plant until he reimbursed his outlay on the plant. 3 Contractual risks arising during construction Among the most common risks encountered during the construction of a project by a civil engineering contractor under a standard type of construction contract, are the following: 1. 2. 3. 4. 5. 6. 7. 8. 9. Design errors, quantification errors. Design changes found necessary, or required by the employer.
3). But if open competitive tendering is used, the advantage of basing a partnering agreement on past successful working with a contractor may be lost. (e) ‘Term’ or ‘Serial’ contracting This comprises letting an ordinary construction contract for carrying out a series of works of an identical nature – re-surfacing roads, for example – for a Procedures for design and construction 27 given period of a year or longer. The terms of the contract set payment and other conditions for a series of similar works which are ordered from time to time as they are needed.
This is best suited to easily defined, relatively simple constructions, involving little below-ground work. However, some quite large above-ground constructions are paid for by lump sum. Sometimes a separate section of the bill for pricing allows for the foundation work of a building to be paid for ‘on measure’. In some kinds of civil engineering work the lump sum payment method can pose serious risks upon a contractor, causing him to add a substantial sum to his tender. This is particularly so for design-and-build or ‘turn-key’ projects where the contractor has to undertake detailed design as well as construction.