Today I will be writing about the terms which are frequently used in construction or project Management and are specified in General Condition of Contract (GCC) of Standard Bidding Document (SBD) with their legal meanings.
Accepted Contract Amount: It is the amount accepted by the bidder which is mentioned in the Letter of acceptance for the execution and completion of the project and remedying of any defect.
Activity Schedule: It is the schedule of activities which is prepared on the basis of milestone for the construction, installation, testing and commissioning of the work along with their price to access the lagging or leading of the project along with the effect of the variation and compensation events.
Compensation Events: These are those events, if happens during the construction period, the employer are responsible to pay the compensation to the contractors. The compensation event are well explained in the GCC clause number 50.
Bill of Quantities: Bill of Quantities are the list of items to do along with the respective price for the completion of work.
Completion Date: It is the actual date that is mentioned in the Bidding Document or as certified by the project Manager. The Taking Over Certificate is provided to the contractor after the completion date.
Contract: It is a binding legal document made in written between employer and the contractor to execute, complete and maintain the work.
Contractor: Contractor is the one whose bid is accepted by the employer to carry out the work as specified.
Contractor's Bid: It is the completed bidding document submitted by the contractor to the employer.
Contract Price: It is the accepted contract amount stated in the letter of acceptance.
Days: These are the calendar days and months are the calendar months.
Days Work:
Defect: Defect is the part of work not completed in accordance with the contract.
Defect Liability Certificate: It is the certificated issued by the Project Manager to the Contractor upon correction of defects.
Defect Liability Period: It is the period that start from the completion period and last long as specified in the document. The contractor is responsible for remedying defects during this period.
Drawing: It is the document that shows the information and calculations provided and approved by the project manager for the execution of the contract.
Employer: It is one of the party who employs the contractor to carry out the works.
Equipment: It is the machinery and vehicle used by the contractor for the execution of the work.
Force Majeure: It means any exceptional event or circumstance which is beyond a party's control.