Unit 23 focuses on construction and built studies. Students learning this level 5 unit focus on the rules and regulations that govern the relationship between the client and contractor. They learn the value of time, quality and cost that are involved in the project.

This Unit Aims to help students understand the working knowledge of contracts, so they can manage project teams and lead them in compliance with the conditions of the contract. Student learning this unit learn the procedure to run and administer their projects by using contract terms and conditions agreed between two parties. Moreover, the student eases their way into the higher-level HND by developing fundamental knowledge and skills through this unit.

Unit 23 is a pivotal step towards learning the solid foundation of the construction field, especially for the students enrolled in the following programs.

• Business Management – for developing knowledge of commercial contracts and effective contract management practices.
• Procurement and Supply Chain Students – for understanding supplier agreements, purchasing processes, and contract administration.
• Operations Management Students – for managing contracts that support business operations and service delivery.
• Project Management Students – for planning, negotiating, and overseeing contracts throughout project lifecycles.
• Commercial Management Students – for learning how to manage contractual obligations, risks, and stakeholder relationships.

Advantages of Learning Contracts and Management

This Course helps students develop a comprehensive knowledge about the understanding of contract principles. Students also learn management practices through practical examples and apply them in their real-world practices, such as their modern business environments. This unit equips the students with specialised theoretical knowledge and practical skills.

By developing both practical and theoretical skills, students learn to negotiate, engage in administrative practices and monitor contracts while managing legal compliance as well. Students also learn the process of risk management, procurement process and commercial decisions making them handle the real-world scenarios with ease. Learn Unit 24 to become a successful contractor and to handle business relations on a commercial level.

Unit 23 Objectives

This Unit enables the student to deliver their utmost quality expertise in their in their careers by developing the following expert skills.

• It promotes the student to learn the understanding of contract principles and legal requirements on a commercial level.
• Helps the student develop practical skills that they apply in real-world scenarios such as negotiation and contracts, and also to monitor contract performance and ensure contract compliance.
• This unit also strengthens procurement, supplier and stakeholder management skills by applying learned ethical and professional practices and contract management.

Learning Outcomes of Unit 23

After complete the unit 23, students will have enough knowledge to discuss the matters involved in contracts and the interests of construction handling.

LO1: Discuss the requirements for a contract in meeting stakeholders’ interests

• Clients Requirements:
• Client requirements are essentiality analyzed to understand the core need of the project; while projecting this, the contractor has to pay complete attention to the statement of need and the scope of resources.
• The design has to be monitored by taking full responsibility for it; the contractor needs to undertake the design and also hire an external contractor who will analyse the liabilities and professional indemnity of the design.
• All this comprises alongside the performance bond of the guarantee delivered through the parent company; the contractor here analyses strategic briefs, level of risks, liability for overruns and delays and the performance specification via the use of building information.
• They also check the level of quality for the project and procurement route to assess the project constraints; moreover, the budgets are also analysed to avoid financial constraints and liability for cost overspends.
• Public body requirements:
• Contractors analyse the information modelling with value for money, all under the Public Contracts Regulation Act 2015 for both local and international agreements.
• A proper local council purchasing strategy has to be produced to induce engaged serial supply chain alongside the price benchmarking and cost targeting through a private finance initiative 2(PF2).
• Before conducting a project, proper pre-qualification questionnaires, Health and safety and environmental management considerations are to be made to avoid accident rates.
• Moreover, inducing fair work practices is also essential to eliminate waste and induce efficiency via government international trade agreements and public-private partnerships (PPP).

LO2: Determine the criteria for the selection of a contract

• Selection factors:
• Contractors have to instruct the workers to assess the time in terms of completing the project on time before the completion date.
• They also have to be mindful of the financial undertaking and the quality of the products used according to the risk assessment of the stakeholders, such as clients and the main contractor`s balance of risk.
• All tasks should be done according to the fixed or variable price with approved design, warranties and guarantees for workmanship.
• The payment options should also be according to the contract payment options available, such as monthly or phased.
• Contractors should exert control over the subcontractors and drive a proper measured cost according to the schedule of rates.
• Type of work to be undertaken:
• Contractors need to learn the basics of starting a project, and maintenance, capital works, size, value and complexity of the project all lie under it.
• Moreover, the knowledge and expertise of the employer has to be undertaken as well by being mindful of the client’s location both locally and internationally.

LO3: Analyse different types of contract and their application to the built environment

• The Joint Contracts Tribunal Suite of Contracts:
• Contractors analyse JCT with the standard building contract and the minor works building contracts 2011, both with quantities and without quantities.
• Traditional and Re-measured building contractors assess JCT Standards Building 2011 and JCT Measured Term Contract 2011.
• In design and build, the contractors use their JCT Design and Build Contract 2011 with approximate quantities.
• The partnering needs JCT-Constructing Excellence Contract 2011, PPC2000 (2013 edition).
• In construction management: JCT Construction Management Appointment 2011 and JCT Management Building Contract 2011.
• The New Engineering Contract suite:
• The contractor focuses on the following acts like New Engineering Contract (NEC3), Engineering Construction Contract (ECC) and options A to F.
• The following International Federation of Consulting Engineers contract suite (FIDIC)is essential for contractors to focus on conditions for contracts for works of civil engineering construction: The Red Book (1987).
• The contractors follow strict Electrical and Mechanical works to impose erection on the project according to The Yellow Book (1987)
• The application of conditions of contract for design-build and turnkey through The Orange Book (1995)
• Moreover, other contracts also hold their value and are equally essential for production, such as ICC Minor Works Version 2011, GC/Work series.

LO4: Select and prepare an appropriate form of contract for a specific project, specifying the terms and conditions

• Contract documents:
• The contract forms are analysed through the article of agreement so the clients align with the different forms of appendices in the contract.
• The forms of contracts, including construction and civil engineering projects, understand construction and supply chain with the other sub-contractors.
• Arrange tenders and information requirements to implement the main contract implications such as forms and agreement and other forms of contract conditions.
• Quality:
• The quality of the product has to be according to the standards of workmanship.
• No defective work process or products are required to be present while projecting the construction.
• The project is completed according to the precautions such as payment plans, insurance, testing, and risks.
• Time:
• The importance of time limits liability, possession of the products and extension of time to avoid delaying the contract period.
• Costs:
• Cost management is essential for every contract project to avoid loss, manage expenses and protect bonuses for early completion.

Assessment Criteria

LO1: Discuss the requirements for a contract in meeting stakeholders’ interests

• 1.1 Explore the contractual requirements of a project for a private client
• 1.2 Explain the contractual requirements for a public body for an infrastructure project
• 1.3 Contrast the contractual requirements of a public and a private stakeholder for a major project
• 1.4 Critically evaluate the contractual requirements for a public body in compliance with legislation

LO2: Determine the criteria for the selection of a contract

• 2.1 Assess how time, cost and quality affect the selection of a contract
• 2.2 Evaluate the ways in which time and quality affect the cost of a project
• 2.3 Analyse a project in terms of the selection criteria for a contract that satisfies the requirements of a client
• 2.4 Evaluate a project in terms of risk for all stakeholders

LO3: Analyse different types of contract and their application to the built environment

• 3.1 Analyse the factors that influence the selection of a contract used to control and manage a project
• 3.2 Compare forms of standard contracts in terms of meeting a balanced risk
• 3.3 Justify the selection of a contract in meeting the strategic values of a client

LO4: Select and prepare an appropriate form of contract for a specific project, specifying the terms and conditions

• 4.1 Revise a standard contract in meet the requirements of a client
• 4.2 Present the rationale for defining selected terms and conditions in the preparation of a contract
• 4.3 Compare the terms and conditions of similar contracts to meet clients’ requirements
• 4.4 Discuss how collaboration between contractors and subcontractors influences contractual arrangements
• 4.5 Justify the selection of a contract in meeting the strategic values of a client

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