Standard Form of Contract for Maintenance and Renovation Works

Members may note that the Institute published the Standard Form of Contract for Maintenance and Renovation Works in 2013. This work was the joint effort of two Divisions – the Building Surveying Division, which initiated the task and provided technical input, and the Quantity Surveying Division, which drafted the document from scratch. In order to help the general public understand the Standard Form of Contract, the HKIS plans to publish the Chinese version of the document soon.

Prior to the publication of the Standard Form of Contract, most building consultants adopted the Standard Form of Building Contract with amendments to suit the nature of maintenance and renovation works. In the event that no professional quantity surveying firm was hired for the projects, we found that most of the Special Conditions of Contract and other front parts of the tender documents were poorly drafted, which caused conflicts over the interpretation of the contract clauses. Both Divisions considered that the Institute should draft a new Standard Form of Contract that is suitable for use in major maintenance and renovation works. It should be noted that the document does not contain any provision for nominated sub-contract, as the nature of works seldom requires the services of specialist contractors. The document was drafted in such a manner that it is comparatively simple to read and contains good and equitable practices.

It is hoped that the Standard Form of Contract will be used as a standard document by all building consultants involved in maintenance and renovation work. As it is relatively simple to read, clients/building owners should be able to better understand their contractual rights and obligations. On the other hand, contractors should be less exposed to ambiguous harsh terms and be able to offer better prices and end products.

Practice Notes

The QSD launched six Practice Notes in October 2012 covering the following core subjects:

• Tendering
• Cost Control and Financial Statements
• Valuation of Interim Payment Certificates
• Valuation of Variations
• Contractual Claims
• Settlement of Final Accounts

These Practice Notes were prepared jointly with the Association of Consultant Quantity Surveyors (ACQS) and the Hong Kong Construction Association (HKCA). They encourage practitioners to apply a consistent and professional standard of service to their work.

The Practice Notes have been available in both hard and soft copy for some time. However, many members are still not aware of the availability of such useful guidelines for reference and retention. Full members are encouraged to pick up a free set of six Practice Notes booklets from the Institute’s Secretariat Office for further reference. It is a very good set of guidelines for practitioners, particularly younger surveyors, to consult.

The Subcommittee on Professional Practice/Practice Notes of the Council is now working on another set of three Practice Notes on the subject of “Procurement,” “Pre-contract Estimate and Cost Plan,” and “Dispute Avoidance and Management”. In addition, it is translating the previously issued Practice Notes into Chinese for the Institute’s Mainland members. An announcement will be made in due course indicating when the above documents will be available.