1. 1 CONTRACTING

2. 2 WHAT IS CONTRACTING ? CONTRACTING IS BASICALLY AN AGREEMENT BETWEEN TWO PARTIES, ONE CALLED THE CONTRACTING PARTY AND THE OTHER THE CONTRACTED PARTY OR THE CONTRACTOR, TO PERFORM A PREVIOUSLY DETERMINED SCOPE OF WORK FOR A PREVIOUSLY DETERMINED REMUNERATION WITH A CLEAR DISTRIBUTION OF RISK. CONTRACTING IS BASICALLY AN AGREEMENT BETWEEN TWO PARTIES, ONE CALLED THE CONTRACTING PARTY AND THE OTHER THE CONTRACTED PARTY OR THE CONTRACTOR, TO PERFORM A PREVIOUSLY DETERMINED SCOPE OF WORK FOR A PREVIOUSLY DETERMINED REMUNERATION WITH A CLEAR DISTRIBUTION OF RISK.

3. 3 ☺ INDEPENDENT ☺ PROFIT ORIENTED ☺ COMPETITIVE ☺ RISK TAKER ☺ UNCERTAINTY ☺ CHANGING PERSONNEL ☺ FLUCTUATING COSTS ABOUT THE CONTRACTORS

4. 4 ECONOMICAL ACTIVITY PERSONNEL AVAILABLE COMPETITION CUSTOMERS REQUIEMENT ORGANIZATION PROBLEMS WEATHER CONDITIONS FACTORS AFFECTING CONTRACTOR POTENTIAL

5. 5  WELL-TRAINED PERSONNEL  SOUND PROJECT SELECTION  COST CONTROL  PLANNING  PUBLIC RELATIONS  ALERTNESS  SOUND FINANCES SUCCESSFUL CONTRACTORS

6. 6 u GENERAL CONTRACTOR LARGE JOBS u GENERAL CONTRACTOR SMALL JOBS u GENERAL CONTRACTOR SPECIALIZED u PRIME CONTRACTORS HIGHLY SPECIALIZED u SUBCONTRACTORS CONTRACTORS CLASSIFICATION

7. 7 TYPES OF CONTRACTS

8. 8  LUMP SUM FIXED  LUMP SUM NOT FIXED  TURN KEY LUMP SUM  UNIT PRICE  GUARANTEED MAXIMUM FIXED PRICE CONTRACTS

9. 9  COST PLUS PERCENTAGE FEE  COST REIMBURSABLE FIXED FEE  COST REIMBURSABLE GUARANTEE MAXIMUM  COST PLUS GUARANTEE MAXIMUM  COST PLUS UPSET MAXIMUM COST REIMBURSABLE CONTRACTS

10. 10  ALL INCLUSIVE LABOR RATE  RATE INCLUDES: BASE PAY INSURANCE TAXES TOOLS SUPERVISION FIELD/HOME EXPENSES FEE  ACTUAL COST OF MATERIALS TIME AND MATERIALS CONTRACTS

11. 11 Build Operate Transfer

12. 12 ESTABLISH PREPARE PLAN OF ACTION SCREENING REQUEST CONTRACTING ACTIVITIES FINALIZE BID SLATE MGMT. APPROVAL CONTRACTORS DEVELOP RESPONSE BID SLATE MGMT. APPROVAL 1/2 321 PREPARE MGMT. SUBMITTAL MGMT. REVIEW SUBMIT 11 1 25242 PREPARE CONTRACT DRAFT REVISE CONTRACT DRAFT REVIEW CONTRACT DRAFT PREPARE JOB EX. MEETING RELEASE BID PACKAGE JOB EX. MEETING

13. 13 u COMMERCIAL PROPOSAL u TECHNICAL PROPOSAL BIDDING

14. 14 o GENERAL INSTRUCTIONS o GENERAL CONDITIONS o SPECIAL CONDITIONS o TECHNICAL SPECIFICATIONS o DRAWINGS AND SCHEDULES BID PACKAGE

15. 15 STIPULATED CONDITIONS JOB SPECIFICATIONS JOB SPECIFICATIONS LEVEL OF QUALITY LEVEL OF QUALITY SAFETY REQUIREMENTS SAFETY REQUIREMENTS COST CONTROL SERVICES COST CONTROL SERVICES REPORTING REQUIREMENTS REPORTING REQUIREMENTS LABOUR LAWS LABOUR LAWS

16. 16 INSTRUCTIONS TO BIDDERS PROJECT DESCRIPTION, PARTY INVOLVED AND SCHEDULES PROJECT DESCRIPTION, PARTY INVOLVED AND SCHEDULES TYPE OF CONTRACT TO BE FOLLOWED TYPE OF CONTRACT TO BE FOLLOWED DEADLINE FOR PROPOSAL SUBMISSION DEADLINE FOR PROPOSAL SUBMISSION NUMBER OF COPIES BY OFFER NUMBER OF COPIES BY OFFER SEALED PROPOSAL AND ONE-TIME OPENING AFTER DUE DATE SEALED PROPOSAL AND ONE-TIME OPENING AFTER DUE DATE PAYMENT ROUTINE PAYMENT ROUTINE PROCUREMENT NEEDS PROCUREMENT NEEDS GENERAL SAFETY REQUIREMENTS GENERAL SAFETY REQUIREMENTS INSPECTION REGULATIONS INSPECTION REGULATIONS BOND REQUIREMENTS BOND REQUIREMENTS

17. 17 GENERAL CONDITIONS DEFINITION AND INTERPRETATION DEFINITION AND INTERPRETATION CONTRACT DOCUMENTS CONTRACT DOCUMENTS RESPONSIBILITIES RESPONSIBILITIES DUTIES DUTIES PERFORMANCE BONDS PERFORMANCE BONDS SITE INSPECTION PROCEDURES SITE INSPECTION PROCEDURES PROJECT COST AND SCHEDULE CONTROLS PROJECT COST AND SCHEDULE CONTROLS SAFETY REGULATIONS SAFETY REGULATIONS COMPLIANCE WITH COMPANY BYLAWS COMPLIANCE WITH COMPANY BYLAWS PATENT RIGHTS AND ROYALTIES PATENT RIGHTS AND ROYALTIES

18. 18 (CONTINUED) GENERAL CONDITIONS (CONTINUED) HOLD OWNER HARMLESS CLAUSE HOLD OWNER HARMLESS CLAUSE CLEANLINESS REQUIREMENTS CLEANLINESS REQUIREMENTS LABOUR RELATIONS MATTERS LABOUR RELATIONS MATTERS QUANTITY ASSURANCE AND QUANTITY CONTROL CLAUSES QUANTITY ASSURANCE AND QUANTITY CONTROL CLAUSES PROJECT MODIFICATIONS AND CHANGES PROCEDURES PROJECT MODIFICATIONS AND CHANGES PROCEDURES UNIT RATES UNIT RATES OWNER RIGHTS OWNER RIGHTS CONTRACTOR DEFAULT CLAUSES CONTRACTOR DEFAULT CLAUSES

19. 19 U SPECIAL WORK HOURS u EXTENSIVE INSURANCE u IN-DEPTH RESPONSIBILITIES u EXTRA SAFETY u CONFIDENTIAL ISSUES u NATIONAL SECURITY SPECIAL CONDITIONS

20. 20 u WRITTEN DESCRIPTION u INTERFACE WITH DRAWINGS u INTERFACE WITH PROCUREMENT u WORK BREAKDOWN u ORGANIZATION BREAKDOWN TECHNICAL SPECIFICATIONS

21. 21 BIDDING DOCUMENTS CONTENT OF DOCUMENTS CONTENT OF DOCUMENTS CLARIFICATION OF DOCUMENTS CLARIFICATION OF DOCUMENTS AMENDMENT OF DOCUMENTS AMENDMENT OF DOCUMENTS

22. 22 PREPARATION OF BIDS LANGUAGE OF BIDS LANGUAGE OF BIDS DOCUMENTS COMPRISING THE BID DOCUMENTS COMPRISING THE BID BID PRICES BID PRICES CURRENCIES OF BID AND PAYMENT CURRENCIES OF BID AND PAYMENT BID VALIDITY AND SECURITY BID VALIDITY AND SECURITY ALTERNATIVE PROPOSALS BY BIDDERS ALTERNATIVE PROPOSALS BY BIDDERS FORMAT AND SIGNING OF BID FORMAT AND SIGNING OF BID

23. 23 SUBMISSION OF BIDS SETTING AND MARKING BIDS SETTING AND MARKING BIDS DEADLINE FOR SUBMISSION OF BIDS DEADLINE FOR SUBMISSION OF BIDS MODIFICATION AND WITHDRAWAL OF BIDS MODIFICATION AND WITHDRAWAL OF BIDS

24. 24 BID OPENING & EVALUATION BID OPENING BID OPENING PROCESS TO BE CONFIDENTIAL PROCESS TO BE CONFIDENTIAL CLARIFICATION OF BIDS CLARIFICATION OF BIDS DETERMINATION OF RESPONSIVENESS DETERMINATION OF RESPONSIVENESS CORRECTION OF ERRORS CORRECTION OF ERRORS CURRENCY FOR EVALUATION CURRENCY FOR EVALUATION

25. 25 AWARD OF CONTRACT AWARD CRITERIA AWARD CRITERIA NOTIFICATION OF AWARD AND SIGNING AGREEMENT NOTIFICATION OF AWARD AND SIGNING AGREEMENT PERFORMANCE SECURITY PERFORMANCE SECURITY ADVANCE PAYMENT AND SECURITY ADVANCE PAYMENT AND SECURITY

26. 26 DRAWINGS AND SCHEDULES BID DRAWINGS BID DRAWINGS AFC DRAWINGS AFC DRAWINGS AS-BUILT DRAWINGS AS-BUILT DRAWINGS BID ERRORS BID ERRORS BID OMISSIONS BID OMISSIONS ADDITIONS/DELETIONS ADDITIONS/DELETIONS SCHEDULES SCHEDULES

27. 27 PLANNING AND SCHEDULING LACK OF PROGRESS LACK OF PROGRESS PROJECT DESIGN CHANGES PROJECT DESIGN CHANGES MANPOWER ALLOCATION MANPOWER ALLOCATION ORIGINAL SCHEDULE UPDATES AND REVISIONS ORIGINAL SCHEDULE UPDATES AND REVISIONS REPORTING NEEDS FREQUENCY REPORTING NEEDS FREQUENCY MATERIAL PROCUREMENT INTERFACE MATERIAL PROCUREMENT INTERFACE TOOLS AND EQUIPMENT ALLOCATION TOOLS AND EQUIPMENT ALLOCATION

28. 28 GENERAL PREQUALIFICATIONS TYPE OF WORK TYPE OF WORK LOCATION OF WORK LOCATION OF WORK FINANCIAL INFORMATION FINANCIAL INFORMATION EQUIPMENT ANALYSIS EQUIPMENT ANALYSIS STAFFING LIST STAFFING LIST CURICULUM VITAE CURICULUM VITAE PREVIOUS EXPERIENCE PREVIOUS EXPERIENCE