国际工程合同与合同管理C t t M tContract Management for International ConstructionZHANG SHUIBOF e b ,2006School of Management,TJU1Who am I?Zhang Shuibo, MCIOB P f S h l f M t TJUBA, MSC, PHD of construction managementProfessor, School of Management, TJU Experiences:Involved in international projects as contract manager in Central America Africa and Middle East Also involved in major domestic Central America, Africa and Middle East. Also involved in major domestic projects, such as Xiaolangdi, West-to-East Gas, ZhengXi Railway as contract consultantsContact me at:zhangshuibo@2国际工程合同与合同管理张水波博士讲稿Why do we take this course?Curriculum Requirement •Curriculum Requirement •Helps you find a good job •Good thinking style•Any other rewards ???3国际工程合同与合同管理张水波博士讲稿What is this course about? Discussion for warm-up:Construction project managementvsConstruction contract management:Commonalities and differences?C liti d diff?What about International construction Contract?4国际工程合同与合同管理张水波博士讲稿What is this course about? Discussion:Contract management: Domestic vs International?•Legal systems•Local Culture•Features of contractF t f t t•Any others???5国际工程合同与合同管理张水波博士讲稿Objectives to be Achieved✓Acquire General Knowledge of Contracts✓Familiarity with Typical Model ContractsF ili it ith T i l M d l C t t✓Learn how to analyze Contract Clauses Learn how to analyze Contract Clausesy g✓Mastery of Contract Management Skills6国际工程合同与合同管理张水波博士讲稿Contents to Be Learned1.Contracts for International Construction -IntroductionI d i2.Model Contracts: FIDIC, NEC, AIA, etc2Model Contracts:FIDIC NEC AIA etcy3.Analysis of Contract clauses4.How to Manage Contract7国际工程合同与合同管理张水波博士讲稿Books for Reference,1.FIDIC Conditions of Contract, 19992.何伯森张水波：国际工程合同管理，，中国建筑工业出版社，20053.张水波何伯森：FIDIC新版合同条件导读与解析，中国建筑工业出版社，2003，，8国际工程合同与合同管理张水波博士讲稿9国际工程合同与合同管理张水波博士讲稿Background to Contract Management Questions for Review•International Contracting Market?International Contracting Market?j•Contract in Relation to Project Controls?•Parties to the Contract?10国际工程合同与合同管理张水波博士讲稿Background to Contract Management International Contracting Market•What do you know about internationalcontracting market?g11国际工程合同与合同管理张水波博士讲稿Background to Contract Management Contract in Relation to Project ControlsInternalCost ControlTime ControlContr. Mngt Quality ControlHuman R.HSESExternal12国际工程合同与合同管理张水波博士讲稿Background to Contract Management Parties to the Contract•What are the participants in an international What are the participants in an internationalconstruction project?•And their relationships?13国际工程合同与合同管理张水波博士讲稿14国际工程合同与合同管理张水波博士讲稿Contracts: the big picture Question for ReviewDefinition of Contract ?•Definition of Contract?Western Definition Chinese Definition15国际工程合同与合同管理张水波博士讲稿Contracts: the big pictureDefining Contract for Int’l Construction?“Contracts that are signed and executed inInternational Construction Settings; byinternational, it is meant that major project“international”,it is meant that major projectparticipants come from different countries.”(He and Zhang, 2005)(H d Zh2005)16国际工程合同与合同管理张水波博士讲稿Contract: the big picture Typical Contents of Int’l Construction Contracts?1.General Provisions7.Quality Management2.The Employer3.The Engineer 8.Time Management9.Payment Management4.The Contractor5.Subcontractor 10.Risk and Insurance11.Variation and Claim6.Human Resource12.Dispute Resolution17国际工程合同与合同管理张水波博士讲稿Contract: the big picture Typical Contents of Int’l Construction Contracts?1.General Provisions7.Quality Management2.The Employer3.The Engineer 8.Time Management9.Payment Management4.The Contractor5.Subcontractor 10.Risk and Insurance11.Variation and Claim6.Human Resource12.Dispute Resolution18国际工程合同与合同管理张水波博士讲稿Contract: the big picture Discussion:•What are the features of InternationalConstruction Contract?•Why do we say contract is more important inI t ti l t ti?International construction?19国际工程合同与合同管理张水波博士讲稿20国际工程合同与合同管理张水波博士讲稿Project Delivery Systems: context Definition:“How the participants are organized to interact, transforming the owner’s goals and interact transforming the owner’s goals and objectives into a finished facility”(ASCE)During the construction process, the organizational relationships are closely related to their contractual relationships.are closely related to their contractual relationships21国际工程合同与合同管理张水波博士讲稿Project Delivery Systems: contextClassification of Project Delivery SystemsThere are a number of ways to classify project delivery systems; however the following systems are most recognized in construction:1.Design-Bid-Build2.CM / Management Contracting2CM/Management Contracting3.Design-Build / EPC Turnkey4.BOTO22国际工程合同与合同管理张水波博士讲稿Project Delivery Systems: context Project Structure under D-B-BO wnerA/EGeneralContractorSubco t acto Subco t acto Subco t actoSubcontractor Subcontractor SubcontractorContractual Relationship managerial Relationship23国际工程合同与合同管理张水波博士讲稿Project Delivery Systems: context Project Structure under Pure or Agency CMO wnerCMA/ETrade Trade TradeContractorContractor ContractorContractual Relationship managerial Relationship24国际工程合同与合同管理张水波博士讲稿Project Delivery Systems: context Project Structure under CM at RiskOwnerCMA/ETrade Trade TradeContractorContractor ContractorContractual Relationship managerial RelationshipContractual Relationship managerial Relationship25国际工程合同与合同管理张水波博士讲稿Project Delivery Systems: context Project Structure under Design-Build /EPCO wnerD-B/EPC EntityD B/EPCE titD/P ConstructionFunctions FunctionsSubcontractor Subcontractor SubcontractorContractual Relationship managerial Relationship26国际工程合同与合同管理张水波博士讲稿Project Delivery Systems: context Project Structure under BOT: Simplified RelationshipsShareholders LendersGrantor Credit agreement Shareholders’Concession agreementProject Offtake g agreement Company (Sponsor)Offtake Purchaser OperatorsO&M agreement Purchase agreement S l tC t ti t t ConstructionInput Supply agreement Construction contract 27国际工程合同与合同管理张水波博士讲稿ContractorSupplierProject Delivery Systems: context Design Constr ctOther variants:•Design-Construct •Design-Manage•EPC Turnkey•Package Deal•EPCM•BOO•BT•BOOT28国际工程合同与合同管理张水波博士讲稿Project Delivery Systems: context Discussion:•Advantages and disadvantages of each projectdelivery system?•Could you apply management theory in analyzingthe diversity of the delivery systems?th di it f th d li t?After-class Readings29国际工程合同与合同管理张水波博士讲稿30国际工程合同与合同管理张水波博士讲稿Types of Construction contractThere are three major contract types in terms of pricing mechanism:•Unit Price•Lump-sum Price•Cost plus fee31国际工程合同与合同管理张水波博士讲稿Types of Construction contractUnit Price Contract•Based estimated quantities of certain well-defined items of work ;•The estimated quantities usually in the form of BOQ;•BOQ complied by the Employer or his consulting engineers/design professionals;•Unit prices (rates)are those quoted by the contractor duringbidding.bidding32国际工程合同与合同管理张水波博士讲稿Types of Construction contractLump Sum Contract•Work scope based on description of project functions to beachieved as per the Contract;p• A firm and fixed contract price determined when signing;•Preferably used when projects can be fully specified, theoretically;Preferably used when projects can be fully specified theoretically;•Risk allocation being rather sensitive.33国际工程合同与合同管理张水波博士讲稿Types of Construction contractCost-plus-fee Contract•Price open-ended;•Defining what is contained in the cost elements;y,•Fee to be determined in various ways, as incentives34国际工程合同与合同管理张水波博士讲稿Types of Construction contract Discussion:•Suppose you are a consultant to the projectEmployer, which pricing mechanism do youEmployer which pricing mechanism do yourecommend to him?After-class ReadingsAft l R di35国际工程合同与合同管理张水波博士讲稿36国际工程合同与合同管理张水波博士讲稿Philosophy Behind ContractA good contract is, in addition to being legal, always guided by very fundamental philosophy:•Flexibility y•Clarity and simplicity•Stimulus to good managementAfter-class Readings37国际工程合同与合同管理张水波博士讲稿SummaryPart one-Introduction✓Contracts: the big picture✓Project Delivery Systems: context✓Types of Construction contractT pes of Construction contract✓Philosophy Behind Contract38国际工程合同与合同管理张水波博士讲稿Time for DiscussionAgain, remember your after-class readings!39国际工程合同与合同管理张水波博士讲稿40国际工程合同与合同管理张水波博士讲稿。