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) 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 contract management is to strengthen supervision and management of construction activities, maintain the market order，guarantee quality and safety of the project，simulative construction industry  health develops, To provide a legal basis for every part of a project，at the same time, will definitely provide useful help to construction industry to take an active role in the international standardization activities。 (1)Standardize the market main body, market price and market transaction (2) Improvement of modern enterprise system (3) Improve the contract performance ratio (4) Trying to expand into international markets.2) TasksThe main task of construction contract management is implemented to promote the project legal person responsibility system, bidding system, project supervision system and contract management system, and coordinate the relationship between "four system” the specification of various contract style and format, that between the main body of the construction market trading activities by contract. (1) Ensure to development construction (2) Standardize the procedures and main body (3) Improve the level of contract management (4) Avoid illegal and 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)Problem about breach of contract. A clear contract can reduce or even avoid defaults. A contract is imbalance, starting from the contract signing and contains a default. The owners purpose is to get the project according to the quality of products.  Therefore, the owner should forecast default of contract, so as to avoid one-sided contract terms and other causes of contract default, to the owner cause irreparable damage. The way of solving the default problem is added strain terms of the contract, can take preventive measures and inspire the contractor to perform the contract. (2)Problem about contract form. Contract form in the tendering document is very important. Common phenomenon is that the budget price exceeds the budget price; contract price exceeds the budget price, settlement price over the contract price. Under the mode of BOQ valuation, if BOQ is not accurate or flaw is more, then it may appear the phenomenon that contracts more opening.  How to control the opening of the contract? For small-scale projects and short duration projects can adopt the fixed price contract.(3)Material bargaining problem. Materials and equipment bargaining range should be as few as possible, should be limited to a higher grade on the market, price bidding large, and is not easy to determine the materials and equipment. Material and equipment bargaining range influence the size of the opening of the contract. For the majority of ordinary materials prices should be in the bidding by the competition among the bidders to confirm, but not confirmed in the course of performance or settlement. When bidding and engineering materials price differentials in risk category, the owner shall undertake the risks of price decline, the contractor shall bear the risk of rising prices. The owners negotiate a price too much, not only increasing the material equipment bargaining workload, and increase the difficulty of cost control. When the two sides on the material aspects of bargaining dispute, it will affect the project schedule and project quality. Of course, as far as possible to reduce material and equipment bargaining range doesn't mean completely abolished bargaining of material and equipment. (4)Project risk. Risk prediction, and risk management should be an important part.  Due to the level of project risk management lag and people's awareness of risk is weak, risk management is part of the project management what is extremely weak, must pay high attention to it. With the formal implementation of project quantity list valuation standard, a consistent with the project insurance and engineering security management of international insurance industry and surveyors industry has be imperative. In addition, contract management of construction project should be confirmed, identification, risk degree of risk management and to determine the risk countermeasure, thus carries on the risk management of the project effectively. Outline methodologyThe basic principles of contract management of construction project.(1)The contract management should be based on laws, contract management can be conducted and must be undertaken with the respect of the law that can ensure the fundamental interests of the owners and promote construction. There are two kinds of law is closely related to the contract management of construction project, one kind is the civil and commercial law including law and contract law, one is the economic law includes the construction method and the Bidding Law. Contract management personnel should be familiar with these laws and be able to skillfully use, to ensure the legitimacy of the terms of the contract, in order to guarantee the validity of the clause. The interests of owners is the rights and interests of the law of owners, if the terms of the contract is invalid due to illegal, the fundamental interests of owner is no guarantee.(2) The contract management should be based on the actual situation of construction project as the starting point and the breakthrough point to ensure the construction quality, the progress, the cost of three goals successfully completed and put into use. Contract management should make scientific contract management plan according to the actual way of the construction project, developed by the stronger the terms of the contract, and the goal of the project operation in terms of quality, schedule, cost should be all project management includes contract management, the program, any contract or any terms of the contract shall be reflect and carry out the above objectives,  only n this way ,contract management will play a important role in contract management of construction. (3) The contract management should be based on prevention, reduce or even avoid the disputes and claims. Prevention is one of the effective methods to control risk. The owner should consider various risks in the process of project management and try to develop method in controlling risk and reflected in the specific terms of the contract. At the same time, we should ensure that the terms of the contract clear and concrete, to avoid ambiguity and vagueness.(4) Record the rights, obligations and responsibilities of each contractor in contract management. This allows the construction of any party to the contract as the basis, has the rights, obligations and ensure the completion and use of construction project. Proposed contentsThe concept of 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.待添加的隐藏文字内容3 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 c