Five Pillars of Contract Management

Many practitioners in the Construction Industry are unable to differentiate between Types of Contracts, Forms of Procurement, Types of Tendering, Forms of Contract or the different types of Bill of Quantities.

As a result, confusions arise and the contracting strategy selected may not be the most appropriate method selected for that particular tender or project.

The following bullet points hopefully are able to differentiate on the distinct features for each of the above-mentioned categories.

Ezani Rais bin Shaiks Salim (2010) has renamed those categories as the Five Pillars of Contract Management as follows:

Types of Construction Contracts
Lump Sum Contract
Unit Price Contract / Remeasurement Contract
Cost-Plus Contract / Prime Cost Contract / Cost Reimbursable Contract
Incentive Contract / Target Contract
Percentage of Construction Fee Contract

Conventional Routes of Procurement
Traditional Contracting (Design-Bid-Build)
Management Contracting
Design and Build
Partnering
Public-Private Partnership

Types of Tendering
Open Tendering
Selective Tendering
Negotiated Tendering

Types of Bill of Quantities
Trade Bill of Quantities
Elemental Bill of Quantities
Provisional Bill of Quantities
Specification and Schedule of Rates
Specified Bill of Quantities
Builder’s Bill
Operational Bill of Quantities

Examples of Standard Form of Contract (only publisher quoted)
The Joint Contracts Tribunal Limited (JCT)
Federation Internationale des Ingenieurs-Conseils Conditions of Contract (FIDIC)
The New Engineering Contract (NEC)
JKR Standard Form of Contract
PAM Contract

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Thank to Ezani Rais bin Shaiks Salim (2010).