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CHAPTER 4 The tendering for and negotiation of a contract

Practical Guide to Engineering Procurement and Construction Contracts


Page 46

CHAPTER 4

The tendering for and negotiation of a contract

4.1 Introduction

The Employer’s Requirements as described in the previous chapter form the documents that the Contractors will bid on. They specify the project’s requirements in terms of performance parameters for the project. In an EPC contract they may contain a few technical specifications, but these should be limited by the Owner as mistakes in such technical specifications may cause the project to not achieve the performance parameters and it will be very difficult in most cases to unravel whether or not the Contractor could and should have seen the mistake in the technical specifications, particularly if he could have and should have noticed the mistake in the tendering stage. Besides, if one hires a qualified Contractor to do the design, engineering and construction, then why would one provide technical specifications oneself? To assert important factors? Then list those factors in the Employer’s Requirements and use them to evaluate the Contractors’ tenders.

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