A critical analysis of contract management of construction project 工程管理英语论文.doc

工程管理专业英语working title: contract management of construction project class: name: number: working titlea critical analysis of contract management of construction projectpurpose of studycontract management is an important part of project management, engineering project management through the whole process, not only determine the price of the project construction period, objectives, the quality objectives, obligations and responsibilities, and contract management is other project management system of work instructions, and the engineering project management played the overall control function. in the fierce market competition, the construction enterprise in order to be able to win the bid to get at the low success, however low quoted price behind success is the management level of the enterprise competition. at the same time due to construction enterprise as a contractor often and in a relatively passive position in the whole process of construction of the project are often natural conditions and social factors, such as the unforeseen factors, lead to risk all may happen at any time, it is for the existence of the objective factors and uncertainty, construction enterprises must improve the level of management, enhance the contract management consciousness. no contract management is no management goal, no management goal will not project management system forming, of course, will be difficult to achieve .the project management profit objectives, and even cause project paralyzed, unable to operate.contract management is serviced for the goal of the project and the general target of the enterprise, to ensure to achieve them. specifically, contract management includes:(1) the whole project in the planned cost (investment), to complete the project within a predetermined range, meet the quality and function of predetermined requirements, implementation of the three objectives of the project.(2)使项目的实施过程顺利，合同争执较少，合同各方面能互相协调，都能够圆满地履行合同责任。(2) the implementation of the project smoothly, the contract dispute is less, the contract can coordinate with each other, are able to perform the contract responsibility successfully.(3)保证整个工程合同的签订和实施过程符合法律的要求。(3) to ensure that the entire project contract signing and implementation process meets the requirements of the law.(4)一个成功的合同管理，还要在工程结束时使双方都感到满意，最终业主按计划获得一个合格的工程，达到投资目的，对工程、对承包商、对双方的合作感到满意；承包商不但获得合理的价格和利润，还赢得了信誉，建立双方友好合作关系。这是企业经营管理和发展战略对合同管理的要求。(4) a successful contract management, but also at the end of the work that was satisfactory to both parties, the owners get a qualified project, achieve the investment objective, on the project, the contractor, feel the cooperation of both sides satisfied; the contractor not only obtain the reasonable price and profit, but also won a reputation, to establish the friendly and cooperative relations. this is the requirements what the enterprise management and the development strategy need the contract management to do.aimto use the theory to ensure the project can be carried out smoothlyobjectives1) objective macroscopically, the objective of the contractmanagement is to strengthen supervision and management of construction activities, maintain the market order，guaranteequalityandsafetyof the project，simulative constructionindustry healthdevelops, to provide a legal basis for everypartofa project，at the same time, willdefinitelyprovideuseful helptoconstructionindustrytotakeanactiveroleintheinternational standardizationactivities。 (1)standardize the market main body,market price and market transaction (2) improvementofmodernenterprise system (3) improvethecontract performanceratio (4) tryingtoexpandinto international markets.2) tasksthe maintask of constructioncontract managementis implemented to promote the project legal person responsibility system, bidding system, project supervisionsystem and contract managementsystem,and coordinate therelationship between four system” the specification of variouscontract style andformat,that between themain body of theconstruction market tradingactivities bycontract. (1) ensure to development construction (2) standardizethe procedures and mainbody (3) improve the level of contract management (4) avoidillegaland criminal.hypothesis key questionthe owner-contractor agreement formalizes the contract. it generally includes a description of the project and contract sum. other clauses pertaining to alternates accepted, completion date, bonus and penalty clauses, and any other items that should be amplified are included. therefore, the contract is the core of the project management, contract management throughout the whole process of project implementation, control and ensure the implementation of the whole project .in modern project, if has no contract sense then has no established aim, if has no contract management then it is difficult to form a system, it will not be able to achieve the objectives of the project. (1)problemaboutbreachofcontract. aclear contractcan reduce or evenavoid defaults. a contract is imbalance,starting from thecontract signingand contains adefault.the ownerspurpose istoget theproject according to the quality ofproducts. therefore, the owner should forecast default of contract, so as to avoid one-sided contract terms and othercauses of contractdefault,to the owner causeirreparable damage. the way of solving the defaultproblem isaddedstraintermsof the contract,cantake preventivemeasures and inspirethe contractortoperform the contract. (2)problemaboutcontract form. contract form in the tenderingdocument is very important.common phenomenon isthat the budgetpriceexceeds thebudget price; contract priceexceeds the budgetprice,settlement priceoverthe contract price.underthemodeofboq valuation,if boqis not accurateor flawis more, then it mayappear the phenomenon that contractsmore opening. how to control theopening ofthe contract?for small-scale projects and short duration projects can adopt thefixed price contract.(3)materialbargaining problem. materials and equipmentbargaining rangeshould beas few as possible, should be limited toa higher gradeon the market,pricebiddinglarge,and is not easy todetermine thematerials andequipment.material and equipment bargaining rangeinfluencethe size of the opening ofthe contract.for the majority ofordinarymaterials prices should be in thebiddingbythe competition among the biddersto confirm,but notconfirmedin the course of performanceorsettlement.when biddingand engineeringmaterials price differentialsinriskcategory,the owner shall undertake therisks of price decline, the contractor shall bear the riskof rising prices.the owners negotiate a pricetoo much,not onlyincreasing the materialequipmentbargaining workload,andincrease thedifficulty of cost control.whenthe two sideson the materialaspects ofbargainingdispute,it will affect theproject schedule andproject quality.of course,as far as possible toreducematerial and equipmentbargaining rangedoesnt meancompletely abolishedbargaining of material and equipment. (4)project risk. risk prediction, and risk managementshould be an importantpart. due to the level of project risk management lagand peoplesawareness of risk is weak,risk management ispart of the projectmanagement what is extremelyweak,mustpay high attention to it.with theformal implementation ofproject quantity list valuationstandard, aconsistent with theprojectinsurance and engineeringsecurity management of international insurance industryand surveyorsindustry has be imperative. in addition,contract management ofconstruction project should beconfirmed, identification,risk degreeofrisk managementand to determine therisk countermeasure,thus carries on the risk management of theproject effectively. outline methodologythe basic principles ofcontract management of construction project.(1)the contractmanagement should bebased on laws,contract management can beconducted and mustbeundertaken with the respect of the law that can ensurethe fundamental interests of the owners and promoteconstruction. there are two kinds oflaw is closely related tothe contract management of construction project,one kind isthe civil and commerciallawincludinglaw and contract law,one is theeconomic lawincludes the constructionmethod andthe bidding law. contract managementpersonnel should befamiliar with theselawsandbe able to skillfullyuse,toensure the legitimacyof the terms of the contract,in order toguarantee the validity of theclause. the interests of owners is therights and interests ofthe law of owners,if the terms of the contractis invaliddue to illegal,the fundamental interests of ownerisno guarantee.(2)the contract managementshould be based onthe actual situationof construction projectas the starting pointand the breakthrough point to ensure the construction quality, the progress,thecostof three goals successfullycompleted and put into use. contract management should makescientific contract managementplan according to the actual way of the construction project,developed by the strongerthe terms of the contract, and thegoal of the projectoperationin terms of quality,schedule,costshould beallprojectmanagementincludes contract management,theprogram,any contractorany terms of the contractshall bereflect and carry out theabove objectives,only n this way,contract managementwill play a importantrolein contract management of construction. (3)the contract managementshould be based on prevention,reduceor even avoid thedisputesand claims. preventionis one of the effectivemethods to control risk.the owner shouldconsidervariousrisksin the process of project management and try todevelop method in controlling risk and reflected in thespecificterms of the contract.at the same time,we shouldensure that the terms of the contractclear and concrete,to avoid ambiguity andvagueness.(4)record therights,obligations and responsibilities of each contractor in contract management. thisallowsthe constructionof any partytothe contract as the basis, has the rights,obligations andensure thecompletion and use of construction project. proposed contentsthe conceptof contract management of construction projectcontract management is related to planning, sign, performance, change, claim and dispute in the management, it is an important part of project management. to determine the relationship between rights of two parties the contracts characteristics the essence of contract is to standardize the market transactions, saving transaction costs. contract management includes:(1) particularity every bid of contract has particularity and can not be replaced(2) long-termbecause of structure is complex, workload is big, construction period is long, the contract time limit for performance is longer.(3) diversity and complexityonly two parties, but the main parties is more, the contract performance period is long, the amount is large, legal relationship is complex.(4) stringencysubject to strict supervision, sides must be legal person, contract must conform to national regulation, and the contract should be strictlytypes of agreement (1)lump-sum agreement (2)unit-price agreement (3)cost-plus-fee agreementin the lump-sum agreement, the contractor agrees to construct the project, in accordance with the contract documents, for a set price arrived at through competitive bidding or negotiation. the contractor agrees that the work will be satisfactorily completed regardless of the difficulties encountered .this type of agreement provides the owner advance knowledge of construction costs and requires the constructor to accept the bulk of the risk associated with the project.there are some disadvantages and risks placed upon the general contractor. the contractor must complete the work at a guaranteed price even though the costs were only estimated. because of the very nature and risks with the lump-sum price, it is important that the contractor be able to accurately understand the scope of the project work required at time of bidding. in the unit-price agreement the contractor bases the bid on estimated quantities of work and on completion of the work in accordance with the contract documents .the owner of the contracting agency typically provides the quantity takeoff. this type of contraction is most prevalent in road construction. it allows the contractor to spend most of their time working on pricing the labor and materials required for the project while checking for the most economical approach to handle the contraction process.under lump-sum contracts each contractor does a quantity takeoff, which considerably increases the chances for quantity errors and adds overhead to all the contractors. in cost-plus-fee agreements the contractor is reimbursed for the construction costs as defined in the agreement .however, the contractor is not reimbursed for all items, and a complete understanding of reimbursable and nom reimbursable items is required. this agreement is often used when speed, uniqueness of the project, and quality take precedence. this contract arrangement allows for construction to begin before all the drawings and specifications are completed, thus reducing the time required to complete the project. the contract should detail accounting requirements, record keeping, and purchasing procedures.cost-plus type contracts include a project budget developed by all members of the project team. percentage fee. the percentage fee allows the owner the opportunity to profit if prices go down and changes in the work may be readily made. the major disadvantage is that the fee increases with construction costs, so there is little incentive on the contractors part to keep costs low. fixed fee. the advantage of the fixed fee include the owners ability to reduce construction time by beginning construction before the drawings and specifications are completed, thus removing the temptation for the contractor to increase costs or cut quality while maintaining a professional status. among the disadvantages are that the exact cost of the project is not known in advance, extensive accounting is required, and that keeping costs low depends on the character and integrity of the contractor.fixed fee with guaranteed maximum costs. advantage of this fixed fee is that a guaranteed maximum cost is assured to the owner: it generally provides an incentive to contractor to keep the costs down since they share in any savings. again, the contractor assumes a professional status. sliding scale fee. the sliding scale fee provides an answer to the disadvantages of the percentage fee, because as the cost of the project increases, the percentage fee of construction decreases. the contractor is motivated to provide strong leadership so that the project will be completed swiftly at a low cost. disadvantages are that the cost cannot be predetermined, extensive changes may require modification of the scale, and extensive accounting is required.fixed fee with a bonus and penalty. with this type of fixed fee, the contractor is reimbursed the actual cost of construction plus a fee. a target cost estimate is set up and, if the cost is less than the target amount, the contractor receives a bonus of a percentage of the savings. if the cost goes over the target figure, there is a penalty.changes in contract it is standard practice that a construction contract gives the owner the right to make changes in the work within the general scope of the contract during the construction period. depending on the contract and its terms, such changes might involve additions to or deletions from the contract, modifications of the work, and changes in the methods or manner of work performance, changes in owner-provided materials or facilities, or even changes in contract time requirements. on a unit-price contract, changes are automatically tract, unless changed work involves items that were not included in the original contract, unless the changes are so extensive the contractor and owner is authorized by the contract to request adjustment in the unit prices affected, or unless an extension of