This is the third presentation in this series of lectures on Estimating and Costing of Civil Engineering Works.In this lecture, we will be looking at
* How tenders are created
* What goes in an organization when a tender is created
* How to do the costing as a contractor
* What should go into the cost of the project
* Risk cover in construction project
The important aspects that have to be covered in a tender are covered here. The costing aspect from a contractual point of view and how to focus on contract costing with an objective to win the bid and also make a profit is covered. Contract risk management in a construction contract is explained with practical case studies.
It is aimed to help the follower of this video an understanding of why a particular aspect is addressed in tender documents.
Some of the concepts as the difference between a green field and a brown field project, how to think while doing the costing, how to work out the different heads while costing, introduction to e-tenders, preparing a tender, evaluation of tender submitted is given here.
It is hoped that a civil engineer, fresh out of college, will find this lecture helpful in understanding the working of the tendering departments - both from client-side and from the point of a contractor. This lecture intends to demonstrate the same with practical examples to make the concepts come to life.
The video lecture delivered based on this slide show is available on https://youtu.be/Xy7LzoP3Has
The previous slide shwo of this series can be found in https://www.youtube.com/redirect?q=https%3A%2F%2Fwww.slideshare.net%2FJohnSushilPackiaraj%2Flecture-series-on-civil-engineering-indian-contract-act-its-importance-to-engineering-contractsto-civil-enginei&redir_token=hlQ8e3nicsh68iznQAbjGYr3JKZ8MTU3OTgxMTcyNkAxNTc5NzI1MzI2&event=video_description&v=b04pgNXgZGg
The next slide show in this series can be found at https://youtu.be/66eAVGc-BeM
Do share your feedback and comments. Trust you find this useful.
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2. Recapitulation
• Aspects of Contract Administration
• Contract Document Management
• Issues in Contracts
• Causes of Disputes
3. Recapitulation
What is a Contract
• A written or spoken agreement, especially one concerning
employment, sales, or tenancy, that is intended to be enforceable by
law.
Essence or Contents of Indian Contracts Act
• An Offer
• Acceptance of Offer
• A Promise
• Consideration
• Agreement
• Promise + Consideration
• Contract
4. Recapitulation
When can a contract be signed?
• Lawful Intent
• Free Consent
• Person in the right mind
What is a Tender?
• Understanding the requirement
• Making an Offer
• Accepting an Offer and Closure
5. Recapitulation
• What are the types of Deposits?
• Cost of Tender document
• Earnest Money
• Security Deposit
• Performance Guarantee
• Forms in which these deposits can be made
• Foreclosure and Termination of Contract
• Closeout of Contract
9. Detailed Project Report
• Outcome of a FEED analysis
• Outcome of a Social Study
• Outcome of a Route Survey
• Outcome of a Survey of Economy
• Outcome of a Societal Need
• Outcome of a Person’s Vision
10. Detailed Project Report for Water Supply
• Location of the project
• Target Population or use
• Volume of water required
• Source of water
• Transport
• Energy Required
• Land to be Acquired
• Facility to be constructed
• Social and Economy Growth
projected
• Funding Sources
• Return on Investment
• Potential Investors
• Environmental Impact
• Possible displacement of people
• Alternate options
11. Executive Summary
• Project at a Glance
• Green or Brown Field
• Technical Details
• Economic Benefits
• Time Lines
• Consultants and Collaborators
• Opportunities
• Risks and Threats
12. Information of Project
• Background of Project
• Market Study
• FEED with processes and Layouts
• Plant and Machinery with training needs
• Project time line
• Financial Information with Breakup
• Break Even Analysis
• Projected Benefits
13. Details of Project
• Relative benefit of the chosen system
• Major technologies which will be used
• Scope of Work
• License and Technology Transfer Involved
• Routes and land acquisition
• Security Aspect
• Commercials
• Training and Operation Costs
14. Life cycle of contracting out a Project
• Need
• Benefits accrued
• Funding Sources
• Preparing Tender Document and Evaluation Strategy
• Inviting Tenders
• Awarding Job
• Monitoring and Controls
• Variations and Dispute resolution
19. Division of project cost heads
• Cost of land
• Cost of Engineering
• Civil
• Mechanical
• Electrical
• HVAC
• Process licensing
• Cost of equipment
• Cost of Tendering
• Cost of Legal permits
• Cost of Enabling works
• Cost of CSR activities
• Cost of local development
• Cost of Insurance and the like
• Cost of testing and hand over
• Cost of maintenance post
handover
20. Uses of Cost Estimates
• Initial budget and Feasibility
• Alternate concepts and designs
• Bid and Cost proposals
• Project bids
• Substantiate claims
21. Types of Cost Estimate
• Comparing with similar projects
• Detailed Cost Estimates
• Varies in magnitude based on the importance
• Risk Analysis
• Claim Settlement
22. Example of a construction cost
• Site Enabling
• Earthwork
• Foundation
• Substructure
• Superstructure
• Exterior Walling
• Roofing
• Electrical and Interior
