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Construction Contracts - 1st Edition - ISBN: 9780976511359, 9780127999739

Construction Contracts

1st Edition

Author: Edward Whitticks
Paperback ISBN: 9780976511359
eBook ISBN: 9780127999739
Imprint: Gulf Publishing Company
Published Date: 1st December 2005
Page Count: 305
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In this superb new volume, Edward Whitticks has charted the course for anyone working with contracts and dispute control in oil and gas, one of the most volatile industries in the world. His practical, straightforward approach will move you step by step through the process of contractual negotiations, bids and closeouts. For anyone working in the oil and gas industry today, finding your way through the maze of contract management seems more cutthroat and challenging than ever before. In Construction Contracts, Edward Whitticks dispels the myth that “there has to be a winner and a loser” in contractual management and dispute control. As a desktop companion for project managers and engineers, contract administrators, cost scheduling engineers and others engaged in the field of refinery, pipeline and petrochemical construction, this book covers the entire contract process.

Table of Contents


Chapter 1: Client Policy and Practice

1.1 Introduction

1.2 The Fundamental Contract Document

1.3 Invitations to Bid

1.4 Lump Sum Contracting Preferred

1.5 Lump Sum Plus Unit Rates

1.6 Unit Rate Only

1.7 Reimbursable Cost Contracts Where Necessary

1.8 Cost Plus a Percentage Fee

1.9 Start Cost Reimbursable with Later Conversion to Lump Sum

1.10 Provisional Contract Price Agreement

1.11 Target Cost (Shared Overrun or Underrun)

1.12 Partnering

1.13 Prime Contracts

1.14 Professional Services Contracts

1.15 Short Form Contracts

1.16 Incentive Plans

1.17 Policy on Claims

1.18 Quality and “Intent” of Contracts

1.19 Field Administration of Contracts

1.20 Planning Policies

1.21 Integration

1.22 Governmental Policies and Influences–The “Third Party”

Chapter 2: The Bid Package

2.1 Preparation by the Client’s Team

2.2 Errors and Omissions

2.3 What Type of Contract?

2.4 Job Explanation Meeting

2.5 Site Visit

2.6 Bid Package Worksheets

Chapter 3: Bid Preparation

3.1 Bidders’ Responses to the Invitation to Tender

3.2 Articles of Agreement or General Terms and Conditions

3.3 Scope of Work

3.4 Has It Been Done Before?

3.5 Changes to the Scope of Work

3.6 Schedule

3.7 Compensation

3.8 Materials

3.9 Specifications and Drawings

3.10 As Built Documentation

3.11 Bid Preparation in General: Alternative Proposals

3.12 Subcontractors

Chapter 4: Evaluation

4.1 Reception and Examination of the Bids

4.2 The Bid Clarification Meeting

4.3 Low Bidding

4.4 Bids Above the Company Estimate

4.5 Unit Rates for Work Variations

4.6 General Observations

Chapter 5: Procedures

5.1 Client’s Procedures

5.2 Project Coordination Procedures (A Typical Client Issue)

5.3 Contractor’s Procedures: The Work Procedure

Chapter 6: Contracts Management

6.1 The Contract Manager

6.2 The Contract Engineer

6.3 The Client’s Team

6.4 Distribution of the Contract

6.5 Execution

6.6 Mobilization

6.7 The Kick-off Meeting

6.8 Indemnity and Insurance

6.9 Liquidated Damages

6.10 Progress Reporting

6.11 Contractor Scheduling Requirements

6.12 The Change Order

6.13 The Negative Change Order

6.14 The Change Order Closeout Form

6.15 The Work Order

6.16 The Amendment

6.17 The Short Form Contract

6.18 Completion and Acceptance

6.19 Mechanical Completion

6.20 Substantial Completion

6.21 Standardization

6.22 Contract Management Policy

6.23 The Contract

6.24 Contract Documents

6.25 Conclusion on Model Contracts and Procedure Standardization

6.26 Conflict of Interest

6.27 The Diplomatic Brush-off

Chapter 7: Claims

7.1 Construction Claims

7.2 A Claim by Any Other Name

7.3 The Breeding Ground–Source of Claims before Contract Award

7.4 After Contract Award

7.5 Types of Construction Claims

7.6 Claim Review

7.7 Contractor Tenacity in Claims Promotion

7.8 Change Order and Claims Meetings

7.9 Contractor’s Claims Preparation and Presentation

7.10 Claim Preparation–The Claims Consultant

7.11 Arbitration

7.12 Negotiation Meetings

7.13 Computer-Aided Quantification of Delay and Disruption Costs

Chapter 8: Payments and Contract Closeout

8.1 Invoicing and Verification

8.2 Work Breakdown Structure

8.3 Measurement of Progress

8.4 Retention

8.5 Warranty Period

8.6 Contract Closeout

8.7 Contract Closeout Checklist

8.8 Contract Closeout Report

Chapter 9: Workshop Exercises

9.1 Vagaries in Contract Language–Claim 1 Installation of Pipelines in a Tunnel

9.2 Contract Intent–Claim 2

9.3 Direct and Consequential Costs–Claim 3

9.4 Extra Work Dispute–Claim 4

9.5 The Great Asphalt Robbery–Claim 5

9.6 The Reimbursable Cost Offshore Bonanza–Claim 6

9.7 The “Life” of the Contract–Claim 7 Caused by: Disagreement over Hourly Labor Rates

9.8 Unproven Technology–Claim 8 Caused by: Lump Sum Format Without Preengineering

Chapter 10: Manuals and Models

10.1 The Quality Manual

10.2 The Project Proposal

10.3 The Project Record Book

10.4 The Construction Control Plan

10.5 Appendix 1 Model Contract Document

10.6 Appendix 2 Contract Amendments

10.7 Appendix 3 Model Change Order Contract Change Order

10.8 Appendix 4 Model Work Order Contract Work Order

10.9 Appendix 5 Model Short Form Contract

Glossary of Terms



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© Gulf Publishing Company 2006
1st December 2005
Gulf Publishing Company
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About the Author

Edward Whitticks

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