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Types Of Civil Engineering Contracts:
1 Bill of Quantities Contract:

 This type of contract which includes a BOQ (bill of quantities)
priced by the contractor is the most commonly used form of
contract for civil engineering works. This is also known as “Item
rate contract” in this contract the tender cost as low as possible
because there is maximum competition among the contractors.
2 Scheduled Contract:
In this type of contract, the client refers to a schedule of unit
rates covering each item of work and ask the contractors, when
tendering, to quote a percentage above or below the given
scheduled rates;
 when it is above, it is called premium; and
 when below, it is called rebate or discount
When a contract includes both scheduled and non-scheduled
items then the contractors are asked to quote an overall
premium on the total cost of scheduled items but, as regards
the nonscheduled items are concerned, the contractor will
mention the item-rates and no extra premium would be
permissible.
3 Lump Sum Contract:
 In a Lump Sum Contract, the contractor undertakes to execute
certain specified works for a fixed amount of money.
 The nature and extent of the work are normally indicated on
drawings.
 The nature of materials and workmanship are described in
specifications. But no BOQ is provided.
4 Labour Contract:
 This is a contract where labour is provided by the contractor
but all the materials are supplied by the client.
 It is suitable for those cases where an employer is in a
position to buy large quantities of materials at favorable prices.
 The advantage is that the speed of work will be increased but,
at the same time, there will be more wastage of materials.
 Labour rates for the scheduled items are also given in the
schedule of rates published by the competent authority.
5 Cost Plus Percentage Contract:
 In the cost-plus percentage contract, the accounts are
properly maintained by the contractors showing the actual
expenditure on the work.
 This is supported by proper receipts and invoices (bills, cash
memos, etc.).
 The profit of the contractor is decided as a negotiated
percentage, which may vary from 10 to 25% of the actual cost
of contract.
6 Cost Plus Fixed Profit Contract:
 This is similar to the previous type of contract with the
difference that the amount of profit is fixed and will not vary
with increase or decrease of actual cost of the work. Proper
maintenance of accounts by the contractor is must. However, in
this category, the contractor will try to complete the work as
early as possible.
 Cost plus percentage and cost-plus fixed profit contractors are
together called ‘Reimbursement contracts”.
7 Package Deal Contract:
 If a contracting firm is well-reputed and provides both design
and construction facilities, the project as a whole may be
awarded to this firm; the agreement become a “Package Deal
Contract”.
 Special type of buildings such as hotels, picture houses,
shopping plazas, etc., may be built on the basis of package deal
contract. However, the success of such a contract mostly
depends upon the reputation and understanding of the firm
with the client.
8 Serial Contract:
 If a contractor is already working on certain contracts at a
construction site and later on more works are planned on the
same site, these works may be awarded to the same contractor.
 Generally, at the same rates, depending upon his previous
performance. This becomes a serial contract.
Tendering:
 “Standard” means a level of quality or excellence that is
accepted as the norm or by which actual attainments are
judged.
 “Tender” means an offer in writing by a tenderer to supply at
a price goods, services or works, pursuant to an invitation to
tender.
 “Tender Documents” means the documents provided by the
procuring agency to tenderers as a basis for preparation of their
tenders.
 “Standard Tender Documents” means the documents
prepared in a level of quality determined by the authority for
the purpose of customization and providing them to tenderers
as a basis for preparation of their tenders.
Standard Tender Documents: (Why Standard Documents?)
 Applicable Law: To avoid misinterpretation of obligations.
 Suppliers Bidding Strategy: Supplier proposing a low price
only to win the contract and seek variances once the contract is
signed.
 Change of ownership of management: 1The company sold to
a third party.2 The level of trust and or evaluated capability may
change.
 Changed circumstances Example: Drastic economic changes
beyond the control of the parties.
 Currency fluctuation: 1 May affect cash flow of the parties.
2 May result to non-performance.
 Delays: The supplier not able to avail goods, in time at
required place.
 Dominance: Purchaser or supplier dictating terms to either
party.
 Incomplete or incorrect specifications
 Language: Parties all thinking “falsely” that they understand
what was intended.
Arrangement Of Sections:
General arrangement of the standard tender documents:
 The cover (To be customized by procuring agencies)
 Introduction (Information about the document)
 Section I: Invitation to tender
 Section II: Instructions to tenderers
 Section III –General conditions of contract
 Section IV –Special conditions of contract
 Section V –Technical Specifications/Scope of Works /TOR
 Section VI –Schedule of Requirements
 Section VII-Price Schedule
 Section VIII –Standard Forms
Benefits of Standard Tender Documents:
a. Promotes harmonization and standardization of procurement
practices.
b. Facilitates a uniform understanding among practitioners and
end-users of the their rights and obligations.
c. Promotes increased capacity by promulgating best practices
and facilitating predictability in procurement proceedings.
d. Enhances and promotes transparency.
e. Clarity of tender requirements-provides information that
enables procuring entities to achieve value for money in a
procurement process.
f. Helps to avoid/minimizes cost overruns/variation orders
g. Avoids/minimizes disputes in Contract Administration-
delayed projects.
h. Flexibility-Allows PE to customize the bid documents and
state all conditions of the tender.
I. Helps to minimize risk in public procurement.
j. Ensures award to lowest evaluated bidder.

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Types Of Civil Engineering Contracts:

1 Bill of Quantities Contract:

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