Project Administration Essentials: Contracts & Key Terms
Project Administrative Regulations
Here are some aspects regulated by the administrative basis of a project:
- Type of Contract
- Payment Terms
- General Terms and Conditions
- Teamwork Requirements
- Fines and Penalties
- Budget Allocation
- Site Visit Requirements
- Residence of Workers
Purpose of a Site Visit During Proposal Call
A site visit during the call for proposals serves to resolve questions regarding the site's topography for the project. This includes clarifying aspects related to access, available facilities, and services such as provisional water and power.
Essential Resources for Project Realization
According to the classification of resources, the following types are necessary for the realization of a project:
- Human Resources
- Financial Resources
- Material Resources
Key Project Management Definitions
Principal
The entity that entrusts work or employees.Offer
The proposal submitted by the bidder, adjusted to the basis provided in drawings and technical specifications of the tender clarification.Work Program
The chronological order of development for the various technical and administrative activities envisioned to implement the purpose of the tender within the stipulated timeframe.Direct Deal
A form of contract for the performance of work without competitive bidding. It involves agreeing with a contractor on prices, rules, and deadlines, which must adhere to relevant regulations.Assets of a Company
Corresponds to total assets (including cash) less current liabilities (debts due in less than a year) and long-term liabilities (debts due in more than one year), currency, and interest.Documents for a Technical Proposal
The following documents may form part of a technical proposal:
- List of Previous Works
- Work Program
- List of Machinery and Equipment
- List of Professionals Involved in the Work
- Monthly Program
- Performance Bond Investment
- Economic Capacity of the Company
- Organization Chart
Types of Warranties Required by the Principal
The principal may require the following types of warranties through the administrative basis of a project:
- Warranty for the Presentation of the Offer
- Warranty for the Completion of the Work Contract
Payment and Refund Procedures
The administrative proposal, as published, sets the stage for advance payments. The amount will vary by project and will be secured through a performance bond on behalf of the client for 100% of the advance.
The overall amount of the advance may not exceed 25% of the contract and is deducted from payments, contemplating its return.
Temporary Reception of Construction Works
Temporary reception is the act by which temporary work, study program, or bid services are received. Observations deemed relevant to the work done are made, and a timeframe is provided for addressing them.
Upon completion of the work established by the project documents, the contractor shall apply in writing for the temporary reception of the works.
The technical inspection will either comply with a request for temporary reception or, if incomplete jobs are found, ask the contractor to resolve the comments.