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|Title||Impact of Conditions of Contract for Construction (FIDIC 99) on the Gaza Strip Contractor’s Cost Estimation|
Construction contract general condition clauses have a major influence on the likelihood and degree of project success. InPalestine, conditions of contract for construction (FIDIC 99) has been ratified by the Palestinian cabinet in October 2006 to represent the Palestinian unified conditions of contract for construction. This research aims at analyzing the conditions of contract for construction (FIDIC 99), extract associated responsibilities and risks and to develop a computer based system to help the Palestinian contractors in better estimation of the cost impact of conditions of contract for construction (FIDIC 99) when pricing a bid. The system should, in principle, estimate the cost impact of FIDIC 99 through estimation of responsibility and risk factors costs implied from FIDIC 99 clauses. Conditions of contract for construction (FIDIC 99) clauses were analyzed in order to extract associated responsibility and risk factors. A field survey, by a means of questionnaire, was conducted to investigate the local practice of estimation of cost implications of conditions of contract and to prioritize those responsibility and risk factors. The field survey reveals a significant weakness in estimating and managing responsibilities and risks, where the local contractors do not use formalized techniques for estimation of cost implications of these responsibilities and risks when pricing a bid. For this purpose, the researcher develops a system to help the Palestinian contractors in estimating the cost impact of adopting FIDIC 99 when pricing a bid. FIDIC 99 Cost Impact Estimating System (FCIES) calculates this cost impact by utilizing Visual Basic Applications (VBA) on Microsoft (MS) Excel. FCIES sums up total values of responsibility and risk factors. The responsibility factors values are introduced directly, while FCIES deals with risk factors by usingMonte Carlosimulation. The researcher hopes that contractors can bid more safely and in a practical way. It decreases the possibility of having a loss and increases the possibility of having a reasonable profit. FCIES evaluators are generally satisfied with its performance. FCIES could play an important role in cost estimation process under the conditions of contract for construction (FIDIC 99). The researcher recommends providing more time and effort in the front-end of a project and utilizing an experienced staff to estimate and manage liabilities and risks. The researcher invites the local contractors to use FCIES in order to get more accurate cost estimation. It is also recommended to offer training courses regarding conditions of contract for construction FIDIC 99.
|Publisher||the islamic university|
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