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Construction Contract
This article refers to the contract of the main contractor to construct the works.
For agreements for the appointment of consultants, designers, site inspectorate,
Proyect managers, see the article…… .-
In a contract, rights and obligations are created by the act of agreement between
the parties to the contractual agreement.
Contract conditions set out the principal legal relationship between the parties to a
construction Proyect, determining the allocation risk, and consequently price.

Appointing consultants for building design and construction.

By appointments, it meant primarily the situation where the client contracts
designers, and/or consultants.
A situations where the client contracts contractors is described as the tender
progress or contracting, rather than appointments.
“Those that have a value exceeding the current threshold…. Wil be subject to …..
Appointment may be made by a process of: recommendation / research / review /
open or selective competition / an existing relationship or framework agreement .
Whatever the process of selecting potential consultant, agreeing the scope of
services and fee for the appointment will generally require that the client prepares
some form of “request for proposal”. This may include: a strategy brief,
assumptions, scope of services, guidance of fee, employer’s information,
warranties, details of resource and cv of staff along with summary of their relevant
experience, should seek hourly rates (costo - valor horario de mano de obra, solo
salario sin cargas sociales ni contribuciones patronales) to be applied to any work.
This benefits the client as it (ya que) will encourage the consultants to prepare their
proposal more carefully, and also demonstrate to them the client is serious about
the Proyect and is likely to treat them fairly.
Scope of services
There might otherwise be uncertainty about which consultant is responsible for
which aspects of the Proyect.
Procurement route
Procurement is the process of purchasing goods of services. There are many
different routes by which the design and construction of works can be procured.
Considerations are likely to include: speed, cost, quslity, risk, assets, financing,
A range of possible procurement routes, and short description of them are
presented below :
Admeasurement contract: (UNIT PRICE CONTRACT): rates are provided in the
contractor’s tender either as part of the bill of quantities, or within the schedule of
prices. Then the actual quantity of work carried out are measured and the rates
applied to those quantities. As a result, the quantities paid for may vary from the
original estimate (valoración, presupuesto)
Construction management: is a procurement route in which the works are
constructed by a different number of trade constructors. The construction manager
generally is appointed early in the design process.
Custom build: is variation of self-building.
Design and build: is a route in which the main contractor is appointed to design and
construct the works.
Emerging cost contract: is a management contract for works and services, often
applied over a certain period of time.
Fast track construction: overlaps task of design and construction to reduce the
overall proyect duration.
Furniture, fixture (fittings) and equipment: this might be procured separately to the
main construction contract.
Framework agreement: acuerdo marco ; a form of agreement for clients which
want to reduce timescale, learning curves, risks. Often used appointed to contracts
of services.
Guaranteed maximum price: (maximo precio garantizado) like design and build
contracts , a form of agreement with a contractor which it is agreed that the
contract sum will not exceed an specified maximum.
Lump sum contract: a single lump sum price for all the works is agreed before the
works begins. There ara mechanisms that allow the contract sum changes.
Management contract: (contrato de administracion o gestión ) is one where the
works are constructed by a number of contractors who are contracted to and
managed by a management contractor.
Measured term contracts: (Contrato de plazo establecido o medido o calculado),
are used where the client has a regular programme of works that they would like to
be undertaken by a single contractor (unico o privado contratante). for minor works
or maintenance work.
Measurement contract: (por unidad de medida) can be used where the design or
type of works can be described in reasonable detail, but the amount cannot. For
example excavation where the quatity required is difficult to assess until after the
works have begun.
Partnering: (participación, sociedad) are intended to enable full integration design
construction operation.
Prime cost / cost plus / reimbursement contract: (costo variable) coste y costas –
they are often used where an immediate start on site is required, for example
repair work. Tendering proceed base on an outline specification, drawings, and an
estimate of costs. The contractor is paid the prime cost and fee for overheads and
profits. Prime cost include the actual cost of labor, plant and materials
Prime contracting: (contratista primario / principal / preferencial) enters into a long-
term relationship for a supply chain to deliver one or more proyects.
Public procurement: adquiscion publica
Schedule of rates term contract: (planilla de precios vigente): in the absence of an
estimate, tenders quote a unit rate.
Self build : (auto edificación)
Single stage tender: oferta de una sola fase
Traditional contract (design –bid –build): diseño a cargo del cliente y constructor
solo se limita a construir. Traditional procurement route is a single stage
Two staged tender: oferta de doble etapa; it can be used to appoint the main
contractor early, or more commonly as mechanism for early appoint of a specialist
contractor, cladding contractor or a single consultant.
Others (DBOM / DCMF..):