MANAGEMENT OF

CONTRACTS
ANANDA RANASINGHE
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INTRODUCTION
KEY DOCUMENTS

CONDITIONS

OF

CONTRACT
CONTRACT AGREEMENT
CONTRACTORS
PROGRAMME
CONTEMPORARY
RECORDS:

DAILY RECORDS
CONTRACTORS

SITE

DIARY
ENGINEERS STAFF DIARY
PHOTOGRAPHS
SITE LETTERS AND
INSTRUCTIONS
PROGRESS
REPORTS/PROGRESS
MEETINGS
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PRESENTATION

OF CLAIMS

NOTIFICATION

OF CLAIM
EVIDENCE OF CAUSE AND
AFFFECT
ENGINEERS RESPONSE
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CONTRACT DOCUMENT
WHAT IS A CONTRACT?
RISK:

WHAT IS IT AND HOW IS

IT SHARED BY THE CONTRACT
DOCUMENT?
WHY IS RISK SHARED?
HOW IS A CLAIM INVOKED?
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CONTRACTORS PROGRAMME
WHAT ARE

LIQUIDATED (OR UN
LIQUIDATED) DAMAGES?
WHAT SHOULD A PROGRAMME
SHOW AND WHY?
WHO NEEDS IT ANYWAY?
PROGRAMME NEEDS TO BE
SUBMITTED WITHIN A SET TIMEWHY?
WHAT HAPPENS IF IT ISNT?
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PROGRAMME

NEEDS TO BE

APPROVED
WHY?
WHAT HAPPENS IF IT ISNT?
PROGRAMME NEEDS TO BE
UPDATED
WHY?
WHAT HAPPENS IF IT ISNT?
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CONTEMPORARY RECORDS
DAILY RECORDS (AGREED)
WHAT IS A DAILY RECORD?
WHAT SHOULD IT RECORD?
HOW IS IT AGREED?
HOW IS IT USEFUL?
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CONTRACTORS AND

ENGINEERS SITE DIARIES

WHAT GOES IN THE
CONTRACTORS DIARY?
WHO FILLS IT IN?
HOW IS IT USEFUL?
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PHOTOGRAPHS
WHAT SHOULD BE
PHOTOGRAPHED?
WHO TAKES AND KEEPS THE
PHOTOS?
SITE LETTERS AND
INSTRUCTIONS
WHAT SHOULD THEY SAY?
THE NEED TO REPLY
WHEN TO STOP

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PROGRESS REPORTS/PROGRESS
MEETINGS
WHAT IS A PROGRESS REPORT?
HOW IS IT USED AT A SITE
MEETING?
WHO PREPARES IT AND DOES IT
NEED TO BE AGREED?

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WHAT TO DO

IF THE REPORT IS
NOT AGREED?
WHAT ELSE TO RECORD AT A SITE
MEETING?
IS IT ENOUGH ONLY TO RECORD A
DELAY OR CLAIM AT A MEETING,
OR SHOULD BE IT CONFIRMED BY
A LETTER?
CLAIMS PRESENTATION
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CLAIMS CANNOT RESOLVE :

WRONG TENDER

SUM

LOW

RATES
MISINTERPRETATION OF
COMPLEXITY OF PROJECT
POOR SITE MANAGEMENT
INEFFICIENT USE OF PLANT AND
LABOUR
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FAILURE

TO NOTIFY CLAIMS
INEFFICIENT PROGRAMMING,
CRITICAL PATH ANALYSIS AND
FAILURE TO UPDATE THE
PROGRAMME REALISTICALLY
FAILURE TO EXPEDITE THE
WORKS EFFICIENTLY
LACK OF PROFESSIONAL SKILLS
E.G. QUANTITY SURVEYING,
FINANCIAL CONTROLS
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KEY POINTS IN THE

PREPARATION OF A CLAIM

PREPARATION OF A CLAIM
FIRST STEP: NOTIFICATION
BASIS OF THE CLAIM
CAUSE AND EFFECT
THE SUBMISSION:
PRESENTATION/DETAILED
PARTICULARS.
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ESSENTIAL DOCUMENTS:

PROGRAMME
ACTUAL PROGRESS
CORRESPONDENCE
SITE INSTRUCTIONS
SITE NOTES
DIARIES
CONTEMPORARY RECORDS
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STAGES IN SUBMISSION OF A
CLAIM

NOTIFICATION
SUBMISSION: (EXAMPLE
HEADINGS)
INTRODUCTION
BASIS OF CLAIM
DETAILS OF THE CLAIM
EVALUATION OF THE CLAIM
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FOR A CLAIM

TO BE SETTLED
QUICKLY AND AMICABLY IT
MUST BE BASED ON A CLEAR
UNDERSTANDING OF THE
CONDITIONS OF CONTRACT.
SPURIOUS CLAIMS NOT ONLY
WASTE TIME BUT REDUCE
THE CONTRACTS CREDIBILITY.
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CLAIMS CAN BE BASED ON THE CONDITIONS OF CONTRACT

COMMON LAW (NEGLIGENCE,
MISREPRESENTATION, BREACH
OF CONTRACT)
WITH RESPECT TO CONSTRUCTION
CLAIMS THERE ARE TWO
COMMON TYPES OF CLAIMS
MADE UNDER THE CONTRACT:
ADDITIONAL MONEY
ADDITIONAL TIME

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SUBMISSION OF A CLAIM FOR

ADDITIONAL MONEY UNDER
CLAUSE 53.1 OR ADDITIONAL TIME
UNDER CLAUSE 44:

GIVING NOTICE: A LETTER TO THE

ENGINEER GIVING NOTICE OF
THE CONTRACTORS INTENTION
TO CLAIM. THE LETTER SHOULD:

EXPLAIN THE CIRCUMSTANCES

GIVING RISE TO THE CLAIM
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EXPLAIN

WHY THE CONTRACTOR

CONSIDERS THE EMPLOYER TO
BE LIABLE.
STATE THE CLAUSE OF THE
CONDITIONS OF CONTRACT
UNDER WHICH THE CLAIM IS
BEING MADE.
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SUBMISSION OF CLAIM

RETURNING TO THE PREVIOUS

LIST OF SUGGESTED HEADINGS
FOR THE SUBMISSION:
INTRODUCTION
BASIS OF CLAIM
DETAILS OF THE CLAIM
EVALUATION OF THE CLAIM
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CLAIMS PRESENTATION
THIS SHOULD GIVE THE CONTRACT
PARTICULARS; NAMES OF
PARTIES; A DESCRIPTION OF
THE WORKS; DETAILS OF
TENDER; THE FORM OF
CONTRACT; THE TENDER SUM;
DATES FOR COMMENCEMENT
AND COMPLETION ETC.
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BASIS OF THE CLAIM

A STATEMENT GIVING THE

CONTRACTUAL REASONS FOR

BELIEVING THAT THE
EMPLOYER IS LIABLE FOR THE
EXTRA COSTS WITH
REFERENCE TO THE CLAUSE
UNDER WHICH THE CLAIM IS
MADE.
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DETAILS OF THE CLAIM

A STATE OF THE RELEVANT EVENTS
GIVING RISE TO THE CLAIM WHICH
SHOULD INCLUDE A STATEMENT OF
HOW CIRCUMSTANCES HAVE
CHANGED FROM THOSE THAT COULD
REASONABLY HAVE BEEN FORESEEN
AT THE TIME OF TENDER. THESE
DETAILS WILL INCLUDE REFERENCE
TO CONTEMPORARY RECORDS AND
OTHERS PREVIOUSLY DISCUSSED
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EVALUATION OF THE CLAIM

A DETAILED

CALCULATION OF
ENTITLEMENT CLAIMED WITH
REFERENCE TO RELEVANT
SUBSTANTIATING INFORMATION
SUCH AS RECORDS, INVOICES
ETC., WHICH RELATE TO SPECIFIC
FIGURES, AMOUNTS AND
PERCENTAGES USED IN THE
CALCULATION.

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APPENDICES
THIS

SHOULD CONTAIN COPIES

OF ALL THE RECORDS AND
SUPPORTING INFORMATION
REFERRED TO IN THE CLAIM
DETAILS AND EVALUATION.

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THANK YOU

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