ASSIGNMENT-Construction Contracts and Contracting

Embed Size (px)

Citation preview

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    1/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 1

    Project name

    INFRALINE TECHNOLOGIES, Noida

    The proposed project is to develop an Office Building by the name of INFRALINETECHNOLOGIES at Noida in the State of UP on a land measuring approximately 3

    acres situated at Sector 03, Noida.

    INFRALINE TECHNOLOGIES Towers comprises of three basements, ground floor

    and 8 floors > the Building complex comprises of organized open spaces, with

    summative built-up area of about 31,500 Sq. m. Amenities and facilities like

    elevators, power back-up, water supply and sanitation, fire-fighting, electronic

    security etc. will be centrally provided in the complex.

    Scope of work

    Scope of work for the office consists of Civil, Structure & finishing Works for sub &

    superstructure compromising of following Areas:

    Floor Area in Super Structure is 13,700 sq. m.

    Floor Area in Sub Structure (Basements) is 25,800 sq. m

    The scope of work shall comprise mainly of carrying out construction work for

    the proposed Office Complex (Ground + 8 story maximum + machine room & roof

    top water tank) and basement floor area (under tower only). The Contractor shall

    arrange all materials, labour & equipment as required for successful completion of

    the work.

    Work shall be executed as per C.P.W.D. specification, Quality Plan, BOQ Technical

    Specification attached to BOQ and as per approved drawings and direction of

    Engineer In-charge of Crossings Infrastructure Pvt. Ltd.

    The site shall be handed over to M/s. Anup Builders Pvt. Ltd. with complete

    excavation and laying of hard core surface.

    The Contractor shall be completing the entire work of the proposed office and

    handover the complete apartments as per the following broad specification:-

    1. Structure:Earthquake resistant structure duly vetted.

    2. External Finish:

    Semi Unitized Structural Curtain Glazing as required with texture paint

    3. Internal Finish:

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    2/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 2

    All internal walls shall be plastered & painted as per the decision made by

    architect.

    4. Flooring:

    Ceramic tile, IPS and Stone flooring as per specified in BOQ and drawings. .

    5. Doors/Windows:

    Wooden frames, Architraves, flush door shutters and fire doors as perspecifications.

    6. Electrical:

    All Electrical work should be in Compliance with requirements of technical

    specification.

    7. Water Supply:

    Underground and overhead water tanks with pumps for uninterrupted supply of

    water and for fire requirements.

    8. Water Proofing:

    Waterproofing of basements, all Terraces, Sunken areas, toilet areas, etc.

    9. Services:

    Provision of 4 nos. lift with complete machine room. All Plumbing, Sanitary and

    Electrical works as per specification inside the building and connection up to the

    Main Feeder/Ring Main. Storm Water and Sewerage line to be connected to

    main. Firefighting system inside the building with provision of fire hydrant in each

    floor with a sprinkler system.

    Important points and details of contract

    1. Type of contract

    ITEM R TE CONTR CT

    In an item rate type of contract the contractor agrees to carry out the work as per the

    drawings, bill of quantity (BOQ) and specifications in consideration to a payment to be

    made which would be entirely on measurements taken as the work proceeds, and at the

    unit price or the item price tendered by the contractor. The basis of contract is unit rate,

    certain reasonable variations are accepted by both parties.

    The Contract shall be an item rate Contract wherein the item rates are for the finished

    work as per the Contract Documents. The Contractor shall be entitled to payment, in

    Indian Rupees, of no more than the Contract Price as stated in the Letter of Award / Work

    Order, in consideration of the Work performed and completion of the Work. However, the

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    3/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 3

    Contract Price may be altered on account of a change order approved in advance by the

    Project Manager.

    The Contract Price shall include payment for the supply of all labour (including payment to

    his Sub-Contractors), equipment, materials, plant and machinery, tools, transportation,

    framework, scaffolding, construction of civil works and all applicable taxes including theWork Contract Tax (WCT), Service Tax, duties, octroi, levies, royalties, fees, insurance

    premiums, contributions towards employees benefits including ESI and PF and funds,

    distribution of power and water and all services and activities constituting the Scope of

    Work defined in the General Conditions of Contract.

    Suitability:

    The item rate contract is most commonly used for all types of engineering works

    financed by public or government bodies. This type of contract is suitable for works

    which can be split in to various items and quantities under each item can be estimated

    with accuracy.

    In this type contract, there is no need for detailed drawings at the time of allotting

    contract as in the case of lump sum contract. The detailed drawings can be prepared

    after the contract is awarded.

    Changes in drawings and quantities of individual items can be made as

    per requirement within agreed limits.

    The payment to the contractor is made on the actual work done by him at the agreed

    rates.

    2. Time schedulea) Time - is the essence of the contract:

    The time allowed for carrying out the Work as entered in the tender shall be strictly

    observed by the Contractor and shall be deemed to be of the essence of the

    Contract and shall be reckoned from the date of award of the Contract. The Work

    shall proceed with due diligence until Final Completion. The Contractor shall

    prepare a Construction Programme with time schedule keeping in view the

    completion period stipulated for specific portions of the Work and also the overall

    completion time and submit the same for the approval of the Project Manager. The

    Contractor shall comply with the time schedule as approved by the Project Manager.In the event of the Contractor failing to comply with the overall and individual

    milestones contained in the time schedules, he shall be liable to pay liquidated

    damages as provided for in this Contract.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    4/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 4

    b) Completion Period:

    The date of commencement of the Work shall be from the fifteenth day from the

    date of issue of letter of intent (LOI) and completion will be as mentioned in the

    schedule of fiscal aspects.

    The Milestone dates shall be as per the schedule attached. In case the

    Contractor fails to meet the above stipulated completion period, Contractor shall

    be liable to pay to the Owner / Project Manager, the liquidated damages. In

    addition to the overall time period, the Contractor shall provide access to Sub-

    contractors and Vendors, employed directly by the Owner / Project Manager.

    c) Causes of delay for which claims for extension of time may be considered;

    The Contractor shall be entitled to claim for extension of time, subject to the Conditions

    herein, should he be delayed or impeded in the execution of the Work by reason of thefollowing:

    Force Majeure;

    Delay in the receipt of constructionstatusdrawings from the Architect provided

    that, in the opinion of the Project Manager, the Contractor has made every effort

    and Endeavour to minimize the effect of such delays.

    Any change orders directed by the Project Manager, which in the opinion of the

    Project Manager entail the requirement of additional time for completion of the

    Work.

    Should any deletions or changes in the scope of the Work reduce the time required to

    complete the Work under the Contract, then the time savings accruing from such deletions

    may be considered by the Project Manager in offsetting the durations awarded for an

    extension of time.

    The work shall be carried out and completed strictly as per the following time schedule: -

    Completion of total structure: 18 months from LOA

    Total completion including finishing: 24 months from LOA.

    The activity wise time schedule shall be indicated in Milestone Chart to be

    submitted prior to issuance of Letter of Award. The Contractor shall strictly adhere to the

    time schedule of all activities as mutually agreed.

    Project Chart for Civil and Structural Work

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    5/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 5

    MAJOR MILESTONES DATES

    Award of Work / LOI D- Days

    Start of Construction D+ 15 Days

    Completion of Basement Structure D+ ----- Days

    Completion of Super Structure D+ ----- Days

    Contractor has to furnish the detailed construction programme based on the abovemilestone and also incorporating the activities of other services contractors, keeping inview the provisions under various clauses of contracts.Quantities given in the schedule (BOQ) are provisional. The quantity given in the BOQ

    may vary up to any extent. The Contractor will have no claim on account of variation ofquantities and shall be liable to carry out the quantity under variation as per item wise

    agreed rate. The overall variation limit of the contract value shall be 30%.

    3. Taxes, duties etc.

    As part of the Contract Price, the Contractor shall, in connection with the Work, include

    sales tax, octroi, all applicable duties, Service Tax, works contract tax, labour cess and

    any other taxes.

    4. Notices, fees, byelaws, regulations, etc.

    The Contractor shall comply with all applicable laws and Government Acts including the

    Byelaws or regulations of Central and / or Local Authorities relating to the Work in so far as

    labour, construction, fabrication and installation activities are concerned, and he shall

    obtain from the Central and / or Local Authorities all permissions and approvals required

    for the plying of trucks, construction machinery etc., and also for construction of temporary

    offices, labour camps, stores and other temporary structures in connection with the Work,

    and the Contractor shall give all notices and pay all fees and charges that are and that can

    be demanded by law there under. In the Contract Price for the Work, the Contractor shall

    allow for such compliance and work, and for the giving of all such notices, and shall

    include the payment of all such fees and charges.

    5. Licenses and permits

    The Contractor shall directly obtain all licenses and permits for the materials under

    Government control, and those required to be obtained by the Contractor for the execution

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    6/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 6

    of the Work. The Contract Price shall include all transportation charges and the other

    expenses that may be incurred in this connection.

    6. Royalties and patent rights

    All royalties or other sums payable by the contractor in respect of the supply and use of

    any patented articles, processes or inventions for the carrying out of the Work as

    described by or referred to in the Contract Documents, shall be deemed to have been

    included in the Contract Price. The contractor shall keep the Owner & Project Manager

    indemnified against all such demands as may arise on account of payment of royalties.

    7. Insurance

    The Contractor himself or through his Sub-contractor shall obtain and maintain insurance

    as under for the complete period of work:

    a. Contractor All Risk (CAR) Policy for cost of contract.

    b. Workmen Compensationc. Third Party & any other statutory obligation

    d. Labour License

    8. Labour regulations

    The Contractor shall, in respect of labour employed by him shall comply with the provision

    of labour legislation including latest requirement of all the Act, Law,

    the payment of minimum wages Act, ESIC, Employees Provident Fund and all other statut

    ory orders in relation to the execution of work. Contractor would have to submit registration

    copies in regard to E.S.I. & P.F. And also have to submit copies of contribution on this A/cfrom time to time.

    9. Setting out and site surveys

    The Contractor shall establish, maintain and assume responsibility for all bench marks and

    grid lines, and all other levels, lines, dimensions and grades that are necessary for the

    execution of the Work, in conformity with the Contract Documents. The Contractor shall

    establish his relation to the permanent benchmarks and boundary lines established at the

    Site. The Contractor shall verify and co-relate all the survey data available at the Site

    before commencing the Work and shall immediately report in writing any errors or

    inconsistencies to the Project Manager.

    10. Assignment and sub-letting

    The Contractor shall not assign this Contract. The Contractor may, however, sub-contract

    any part of the Work with the prior written consent of the Project Manager. As soon as

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    7/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 7

    practicable, but at least four weeks before awarding any Sub-Contract, the Contractor shall

    submit to the Project Manager in writing the names of the Sub-Contractors along with their

    profiles and work experience proposed for any part of the Work, for the approval of the

    Project Manager.

    11. Payments and secured advancePayments for executed work:

    a) Billing: The Contractor shall prepare measured bills as directed by the

    Project Manager (detailed measurement, abstract sheet, purchase bills,

    and other supporting documents) once per month and submit the same to

    the Project Manager in quadruplicate for checking and issue of interim

    certificate. Contractor shall also provide soft copy of the bills prepared on

    latest version of MS office software.

    b) Payment of Bills: Running Account Bills: The Contractor has to submitthe Running Account Bills in quadruplicate once in a month along with

    detailed measurements in serially machine numbered register, abstract

    sheets, deviation statement for ongoing and completed work, purchase

    bills, materials reconciliation statement and any specific instructions which

    may be given in this regard by the Project Manager shall also be adhered

    to by the Contractor.

    c) Running Bill Certification: The Contractor shall prepare and submit

    running bills to the Project Manager once a month throughout theConstruction period. Provided that amount of said billing exceeds the

    minimum value for the running bill stipulated in the Schedule of Fiscal

    Aspects annexed to these General Conditions of Contract.

    Running bills shall be presented along with soft copy in a format to be

    agreed in advance with the Project Manager and shall be supported by,

    detailed measurements item by item.

    Retention Money and Mobilization Advance shall be applied to interim

    billings as mentioned elsewhere in the general conditions of contract.

    Cost of materials if any issued by the Owner / Project Manager shall be

    recovered from the running bills at rates specified in the Contract

    Documents.

    Within 7 days of the receipt of Contractors running bill for payment, the

    Project Manager shall check and point out corrections, if any to be made in

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    8/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 8

    the bill. The Contractor shall correct the bill and resubmit the same to the

    Project Manager.

    Within 15-21 days of receipt of the corrected bill from the Contractor, the

    Project Manager/Architect shall check the bill and forward it to the Client for

    payment.

    The payment of running bills shall be made by the Owner /Project Manager

    within 7 days from receipt of the Project Managers approval certificate for

    payment.

    All running bills shall be accompanied with detailed material reconciliation

    statements for cement; steel and other Owner supplied materials.

    d) Retention Money:

    Deduction towards Retention Money shall be made at 10% of the value of

    Work as certified by the Project Manager during each running bill subject to

    a maximum of 10% of the contract value. 50% Retention money will bereleased after issue of Virtual Completion Certificate on submission of bank

    guarantee of the same amount and valid for the defects liability period

    including any extensions thereof.

    The balance 50% of retention money shall be returned after issue of Final

    Completion Certificate on completion of Defects Liability Period including

    any extensions thereof, provided that the building is then free of defects and

    the Contractor has rectified all defects identified by the Project Managers,

    Architects and Owner. The Retention Money shall not carry interest.

    e) Final Bill: The final bill shall be submitted by the Contractor within one month of the

    date fixed for Virtual Completion of the Work or of the date of the Virtual

    Completion Certificate whichever is later, issued by the Project Manager.

    The final bill will be certified by the Project Managers within 30 working days

    from the date of the bill submitted. The Contractor shall be paid by the

    Owner within 30 working days of receipt of the Project ManagersCertificate.

    The Contractor shall submit a list of the disputed items within thirty days

    from the disallowance thereof and if he fails to do this, his claim shall be

    deemed to have been fully waived and absolutely extinguished. No further

    claim shall be made by the Contractor after submission of the final bill andthese shall be deemed to have been waived and extinguished.

    f) Secured Advance (Materials): No Secured advance shall be payable.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    9/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 9

    12. Defect liability period

    Defect Liability Period of the Contract shall be 24 months from completion of the work

    under different phases. The Contractor during the said Defect Liability period shall be

    responsible to make good and remedy at his own expenses all defects pointed out by

    the Project Manager.

    13. Extra item

    In case any item not covered in the BOQ is required to be carried out, the rate

    for the same shall be derived from the nearest similar item available in the BOQ.Howev

    er, in case no such similar item of work exists in the BOQ, the rate for the same shall be

    derived as per market rate + 10% profit. Material and Labour component for such extra

    item shall be as per norms given in DAR. (Latest revision).

    14. Construction programme, schedules and progress reports

    Every contractor should furnish along with his tender an overall construction programmeutilizing a known CPM software package like Microsoft Project, latest version. The

    construction programme shall clearly show all the sequential activities of work required

    to be carried out from the commencement of the Work up to the Virtual Completion.

    Work associated with each of the packages, i.e., civil, water supply and sanitation,

    firefighting, elevators, HVAC and electrical works etc., shall be clearly identifiable.

    Every week, or sooner if required by the Project Manager, the approved programme

    charts shall be reviewed in relation to the actual progress of the Work, and shall be

    updated as necessary. If at any time it appears to the Project Manager that the actual

    progress of the Work does not conform to the approved programme, the Contractor

    shall produce, at its expense and without reimbursement therefor, a revised programmeshowing the modifications to the approved programme and the additional input of

    resources by the Contractor necessary to ensure completion of the Work within the time

    stipulated for completion.

    15. Drawings

    Contract Drawings duly signed by the Architect are diagrammatic but shall be followed

    as closely as actual construction permits. Any deviations made shall be in conformity

    with the direction of the Project Manager and with the prior approval of the Architect.

    Structural drawings shall take precedence over Architectural drawings, which in turn

    shall take precedence over services drawings in regard to all dimensions. TheContractor shall verify all dimensions at the Site and bring to the notice of the Project

    Manager discrepancies if any, the Project Manager's decision in this respect shall be

    final.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    10/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 10

    16. Work to be carried out by licensed persons/firms

    Technically competent persons or firms holding valid licenses shall only carry out any

    special service installations included in the scope of the Work.

    17. Inspection and testing of materialsThe Contractor shall, if so required, produce manufacturers' test certificates for any

    particular batch of materials supplied by him. The tests carried out shall be as per

    relevant Indian Standards and shall be carried out at Government approved test facility

    specified by the Project Manager.

    For checking setting out and testing materials at the Site the Contractor shall provide

    the following minimum testing equipment:

    Theodolites

    Automatic levels

    Steel tapes

    Weighing machines Spirit levels, plumb bobs

    Micro meters

    Thermometers

    Hydraulic testing machines

    Smoke test machines

    Complete concrete testing lab equipment

    Moisture meters

    Complete sets of sieves

    Oven.

    All such equipment shall be calibrated at specified frequency for accuracy at a Testing

    Facility approved by the Project Manager and calibration certificates will be submitted to

    the Project Manager.

    18. Reference drawings

    The Contractor shall maintain on site one set of all Drawings issued to him for

    reference.

    19. Shop drawings

    The Contractor shall submit, during the currency of the project, to the Project Managerfour (4) copies of all shop drawings for Architect approval. Shop drawings shall be

    submitted generally for the following:

    Construction and installation details for shuttering and formworks

    Structural Steelwork, especially joint details

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    11/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 11

    Metal Sheet Roofing: Laps, Ridges, Gutters, etc.

    Metal Sheet Cladding and structural glazing details.

    For specific areas requiring detailing as called for by the Project Manager /

    Architect.

    Manufacturer's and/or Contractor's fabrication drawings for equipment supplied

    by Contractor.

    All the shop drawings shall be prepared on computer through AutoCAD software. Within

    7 days after the issue of award of the contract and initial set of working drawings, the

    contractor shall furnish to the Project Manager, for the approval of the

    Architect/Consultant, four sets of detailed shop drawings of all equipment and materials

    as required by the Architect/ Project Manager.

    Shop drawings shall be submitted for approval sufficiently in advance of planneddelivery and installation of any materials to allow Architect/Consultant ample time for

    scrutiny. No claims for extension of time shall be entertained because of any delay in

    the work due to his failure to produce shop drawings at the right time, in accordance

    with the approved programme.

    Samples of all finishing materials like granite, tiles, paints; etc. other than materials so

    specified shall be submitted to the Project Manager prior to procurement. These will be

    submitted in triplicate for approval and retention by Project Manager and Architect and

    shall be kept in their site office for reference and verification till the completion of the

    Project.

    Within four weeks of approval of all the relevant shop drawings, the contractor shall

    submit four copies of a comprehensive variation in quantity statement, and itemized

    price list of recommended (by manufacturers) imported and local spare parts and tools

    covering all equipment and materials in this contract. The Project Manager shall make

    recommendation to Owner for acceptance of anticipated variation in contract amounts

    and also advise the Owner to initiate action for procurement of spare parts and tools at

    the completion of project.

    20. Completion drawings & standard measurement book (SMB)

    On completion of the Work, the Contractor shall submit three (3) complete sets of the

    site produced drawings and marked up prints of "AS BUILT" drawings verified and

    approved by the Architect to the Project Manager. These drawings shall include and

    show all the changes / deviations made from the working drawings during the course of

    construction and also the other details as called for by the Project Manager. During the

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    12/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 12

    execution of the Works a set of drawings shall be retained in the Contractors Site

    Offices for the exclusive purpose of recording changes made to the Work as the

    construction proceeds. The drawings shall be prepared on computer through AutoCAD

    Software and provided to the Project Manager on CD.

    Along with the completion drawings the Contractor shall also prepare and submit to theProject Manager the Standard Measurement Book (SMB) in the form of a bound book

    and a soft copy of the same. SMB shall incorporate the standard measurements of the

    items as per the completion / as-built drawings in modules finalized in consultation with

    the Project Manager.

    21. Testing of installations

    All water retaining structures and the basement rafts shall be tested as specified for the

    waterproof qualities, in the presence of the Project Manager. The Contractor shall also

    perform all such tests as may be necessary and required by the Project Manager to

    ensure quality of the executed works and by local authorities to meet Municipal andother bye-laws, regulations in force. The Contractor shall provide all labour, equipment,

    and materials etc., required for the performance of the tests.

    22. Site information

    All information, levels and dimensions given in the tender drawings relating to Site

    conditions are given in good faith; the Contractor shall, however, make his own

    independent inquiries and verify the same. Any claims for extras on account of any

    deviations or incorrectness of above referred information, levels etc. and shall be

    considered as inadmissible.

    The Contractor shall obtain all information relating to local regulations, by-laws and all

    regulations applicable to the work or applicable profession. Any claims in this regard

    shall be inadmissible.

    23. Site instruction file

    The Contractor shall maintain a Site instruction file at the Site office. All instructions

    received from the Project Manager / Architect relating to the Work shall be retained in

    the file.

    24. Photographs

    Besides submitting progress charts, reports, etc., the Contractor shall submit progress

    photographs as directed by Project Manager, every four weeks in triplicate along with

    negatives.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    13/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 13

    25. Professional integrity and team spirit

    It is the intent of the Owner and the Project Manager that this Project will be executed in

    a spirit of teamwork and full professional integrity. The Contractor shall fully co-operate

    with all agencies concerned to fulfill this objective.

    26. Quality assurance and control programme

    The Contractor shall establish an effective quality control system at the Site and

    implement the same through an independent team consisting of the Contractors

    Representative and qualified and experienced engineers and technical personnel to

    enforce quality control on all items of the Work and the Project at all stages.

    27. Contract drawings

    Drawings forming part of the Contract are listed in Annexure B. Further supplementary

    Drawings furnished by the Project Manager from time to time shall also be deemed to

    form part of the Contract.

    28. Entry to the site

    The Project Manager, at his discretion has the right to issue passes to control the

    admission of the Contractor, his agents, employees and work people to the Site of the

    Work or any part thereof. Passes shall be returned at any time on demand by the

    Project Manager.

    29. Fire precautions

    The Contractor shall take all precautions and preventive measures against fire hazards

    at the Site and shall assume full responsibility for the same.

    30. Performance bond

    The Contractor shall furnish a performance bond in the form of a bank guarantee from a

    scheduled bank approved by the Project Manager, for the value of 10%on the total

    value of contract within Ten (10) days of date of award of Work. The Bank Guarantee

    shall be in the approved format and valid till 90 days after the expiry of the Defects

    Liability Period including extensions thereof.

    31. Drilling, cutting etc.

    All cutting and drilling of walls or other elements of the building for the proper

    entry/installation of inserts, boxes, equipment, etc. shall be carried out using electrically

    operated tools only. Manual drilling, cutting, chiseling, etc. shall not be permitted. No

    structural member shall be cut or chased without the written permission of the Project

    Manager. Cutting and drilling of structural members shall be carried out using vibration

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    14/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 14

    free diamond wire sawing and diamond drilling only with prior permission from the

    Project Manager. The costs for procurement and using such equipment is deemed to

    be included in the Contract and no extra costs will be paid.

    32. Approval by statutory bodies

    COMMENCEMENT CERTIFICATE, NO OBJECTION CERTIFICATE AND

    OCCUPATION CERTIFICATE:

    The Project Manager will handle commencement Certificate, No Objection

    Certificate and Occupation Certificate if applicable for the permanent building

    works under this Contract.

    The contractor shall be responsible to obtain and retain with him at his own cost

    all other approvals from the statutory bodies pertaining to temporary structures to

    be constructed at site and required to facilitate performance of Contractorswork

    under the Contract till completion.

    Refusal by statutory authorities to issue completion / occupation certificate due to

    the Contractors failure to construct the building in accordance with the

    sanctioned plans and/or specifications shall render the Contractor liable for

    damages and in addition, render him liable to obtain such certificates at his cost.

    33. Labour wages

    The Contractor shall have no claim whatsoever, if on account of any rules and

    regulations or otherwise, he is required to pay wages in excess of fair wages called for

    under Clause 12.2 of General Conditions.

    34. Mobilisation advance

    5% of total value of contract awarded mobilization Advance shall be payable. In case

    settled at any later stage, The Mobilisation advance shall be proportionately recovered

    from contractorsrunning bills in such a manner so as to start recovery on prorata basis

    to the amounts from the 1st R.A Bill, so as to affect full recovery by completion of 80%

    contract value.

    35. Owner's, project managers & architect's offices & facilities

    The Contractor shall provide at all times for the duration of the Contract survey

    instruments for the exclusive use of Project Manager for carrying out of their duties inconnection with the Contract.

    Such instruments which must be approved by the Architect, shall include but not limited

    to the following:

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    15/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 15

    One theodolite & tripod capable of reading to 20 seconds

    One level with horizontal circle and tripod.

    Two metric levelling staffs not less than 3.5mtr high.

    One 100 meter rust less steel band, one 30 metre rust less steel tape & two 30metre linen tapes.

    An adequate number of ranging rods drop arrows, wooden setting-out pegs, etc.

    The Contractor shall be solely responsible for all such instruments and equipmentsand

    shall ensure that they are at all times in good repair and adjustment.

    36. Testing facilities at site

    The Contractor shall provide facilities/equipment to test the quality of material being

    used. The Contractor shall provide the minimum but not limited to the following facilities

    / equipment and trained staff at site at his own cost.

    Compression Testing Machine for concrete and bricks

    Slump testing apparatus.

    Sieve sets for testing of fine and coarse aggregate balance

    Cube moulds

    Balance

    Ovens

    Weighing Machine

    The Contractor shall get other tests carried out at his own cost at approved laboratory

    as per the directions of the Project Manager.

    37. Reports & checklists by contractor

    Contractor has to note that Project Manager is an ISO certified company and all

    reports, returns & checklists shall conform to ISO standards & procedures as

    informed to the Contractor by the Project Manager for time to time. Within 15 days of

    award of contract the contractor shall submit the draft formats for various reports andChecklists for the approval of the Project Manager. During progress of the Work the

    Contractor shall prepare and submit to the Project Manager various checklists, for

    having checked various Works at different stages of progress and reports as per the

    approved formats and at specified frequency.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    16/27

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    17/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 17

    Indian Institute Of Architects. The colour, texture etc., of the board shall be as per the

    Architect's instructions.

    39. Site barricading

    Site Boundary fencing of RCC posts and barbed wire angle posts with color coated

    profile galvanism/GI sheeting existing at site shall be maintained by the Contractor at

    his own cost till completion of the Project. However if it is required from the Contractor

    to replace / rectify the existing fencing for security purpose the same shall be done at

    Contractors own cost subject to approval of design from the Project Manager. The

    barricading shall be put in proper line and level and shall be painted as per the

    instructions of the Project Manager. Contractor shall at his own cost provide lockable

    gates at all the openings in the site barricading that may be required from time to time

    during progress of work. Contractor shall be required to provide appropriate rigid

    barricading within the site to ensure safety of men and material, at his own cost.

    40. Rate only items, non-tendered / extra items and quantitiesexceeding the tendered quantities

    The contractor shall immediately and before procurement and execution of the work

    obtain a written approval of the variation order from the Project Manager for the rate

    only item, non-tendered /extra items and quantities exceeding the tendered quantities.

    No payments will be entertained without the Project Managerswritten approval of the

    change / variation order. The onus shall be on the Contractor to obtain such prior written

    variation order from the Project Manager.

    41. Closing of all openings

    If the aluminum works are not completed and openings not sealed per the agreed

    milestones, the Contractor should immediately close all the openings with plywood and

    ensure that there is no water and debris ingress during the curing and external/internal

    plastering operations. The costs for procurement and installation will have to be borne

    by the Contractor at no extra cost and completed well in advance of the entry date of

    other contractors.

    42. Water and electricity

    Contractor shall make his own arrangement for electricity and water for construction

    purposes.

    The Contractor shall apply for the temporary connections for which all

    charges/expanses shall be borne by the contractor and shall be responsible for all

    connections, pumps, pipes, storage facilities and all other things necessary to distribute

    and use services from these distribution points. If the water is not in adequate quantities

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    18/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 18

    or unsuitable for construction purposes then the Contractor should make his own

    alternate arrangements.

    Temporary Electricity shall be arranged by the Contractor in adequate capacity either

    through DG or temporary electrical connection (for day & night use) at his own cost and

    shall be responsible for all connections, cabling, wiring, conduiting, panels and all otherthings necessary to distribute and use electricity from as may be required for his work.

    The Project Manger does not warrant supply of electricity. The Contractor shall bear all

    expenses for maintaining, running, load enhancement (if required) and billing charges.

    43. Associated civil works

    All civil works required for the storage of materials or the installation of equipments any

    other required for the contractor's functioning shall be the responsibility of the

    contractor.

    44. Performance guaranteeThe contractor shall carry out the work in accordance with the drawings, specifications,

    schedule and other documents forming part of the contract.

    The contractor shall be fully responsible for the performance of the works executed by

    him. All waterproofing works and termite proofing works executed by the contractor,

    shall be guaranteed for a minimum period of ten years from the date of final completion

    of Project. The guarantees on the approved format shall be submitted to the Project

    Manager along with the as-built documentation at the end of the project.

    45. Power requirement

    The contractor shall submit with their tender, their requirement of power for each of their

    equipment along with the number of equipment proposed for use at site.

    46. Escalation

    No escalation on Contract price / rates shall be applicable during the tenancy of the

    Contract period including extensions thereof.

    47. Dewatering and flooding control

    The Contractor is deemed to have allowed for any and all temporary dewatering, during

    the execution of his Work. Such work shall include but not necessarily be limited to thesafe disposal of the resulting water; removal, replacement and/ or recompaction of the

    water logged soils/surfaces; backfilling plugging of all temporary sumps, ditches,

    temporary materials and devices.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    19/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 19

    Contractor shall be deemed to have allowed for all costs associated with removal of

    flood waters and any associated sludge debris etc. from the basement level or any other

    part of the building so effected in the event of flooding due to heavy rains during his

    construction activities and after basement, superstructure work is completed until such

    time as Contractor has completed and handed over all his works under the Contract.

    48. Boundary walls

    Contractor shall protect and preserve existing boundary walls and fencings whether or

    not they are eventually to remain or to be removed or replace.

    Any removal of such boundaries shall be done in a planned way, with prior notification

    to, and approval of, the Project Manager. Any replacement boundary walls / fences, etc.

    shall be built soon after or concurrent with the removal, where this is practical and

    expedient, such that site integrity be maintained in so far as it is practical.

    Contractor is deemed to have allowed for all cost associated with any / all removal and

    replacement, where required, of all boundary walls. The materials of the existingboundary walls and fencings shall remain the property of the Owner / Project Manager

    and Contractor shall ensure to hand over the same in good condition to the Project

    Manager on completion of Project/ removal of the same.

    49. Protection / preservation of trees

    Contractor shall take all measures necessary to ensure the protection and preservation

    of existing trees within / outside the boundary of the site.

    50. Settlement of disputes / arbitration

    Arbitration means settlement of dispute between two parties involved; generallycontract

    or and owner. This settlement generally not by court of law but by a few persons having

    complete knowledge of that work and deputed by parties involved. These person

    or persons appointed to settle the dispute is called "Arbitrator". Arbitrator gives decision

    on the basis of evidences available; enquiries made and his own skills and knowledge.

    His decision accepted by both the parties and also incorporated in the decree of the

    court if required i.e. if earlier decision is not accepted by either of the parties and if

    matter is referred to court of law. Arbitrator has to take such decision which must be

    correct and accepted by both the parties. As such Arbitration is an expensive way of

    settling the dispute between owner and contractor. As far as possible matter is solved at

    very first or second level only. In extreme cases matter is referred to court. The judiciary

    procedure and law takes very long hence people to avoid it.

    All disputes and differences of any kind whatsoever arising out of or in connection with

    this Contract as also with regard to the implementation, meaning, interpretation or

    implications of the various clauses of the Contract and those of the Contract Documents

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    20/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 20

    or in respect of any other matter or thing arising out of or relating to the development

    and construction of the Project whether during the progress of the work or after their

    completion shall be communicated by the Contractor in writing to the Project Manager

    and all possible efforts would be made by the Parties to sort out and resolve all such

    matters of controversy, disputes and differences, amicably with due dispatch and

    effective priority.

    Decisions, directions and clarifications pertaining to measurements, drawings and

    certificates taken by the Architect M/s Sandeep Chawla and Associates (SCA) shall be

    final and binding on the Parties.

    All disputes and differences whatsoever, which shall at any time hereafter arise

    between the Parties hereto, touching or concerning this Agreement or its interpretation

    or effect or as to the rights, duties, obligations and liabilities of the Parties hereto or

    either of them under off by virtue of this Agreement or otherwise as to any other matter

    in any way connected with or arising out of or in relation to the subject matter of this

    Agreement shall be referred to the Arbitration in accordance with the provisions ofArbitration and Conciliation Act 1996. The Parties agree that the reference of the

    disputes and differences between the Parties would be made to the Sole Arbitrator, to

    be appointed by the Management Review Committee (MRC) constituted by the Owner

    and the Project Manager.

    The arbitration venue shall be at New Delhi. The procedure for the arbitration shall be

    determine by the Arbitrator. Costs of such arbitration shall be equally shared between

    the Owner and the Contractor. The Parties undertake to abide and remain bound by the

    award of the Arbitrator so rendered.

    The Contractor shall not, except with the consent in writing of the Owner and ProjectManager, in any way delay the carrying out of the Work by reason of such matter,

    question or dispute being referred to arbitration.

    Functional organization

    The Contractor shall at his cost provide and ensure continued effective supervision of

    the Work with the help of the ContractorsRepresentative, assisted by team of qualified,

    experienced and competent engineers, supervisors and adequate staff, to the

    satisfaction of the Project Manager for the entire duration of the Work. The Contractor

    shall submit his proposed site organization chart for the approval of the Project

    Manager.

    The ContractorsRepresentative shall be on the Site at all times as the Work and the

    Project progresses and shall be responsible for carrying out the Work to the true

    meaning of the Drawings, Specifications, Conditions of Contract, Schedule of Rates, the

    other Contract Documents, and instructions and directions of the Project Manager All

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    21/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 21

    key staff employed at the Site by the Contractor shall be considered essential to the

    performance of the Work and the Project Co-ordination Services, and all key staff shall

    be subject to the approval of the Project Manager. The Contractor shall at all times be

    fully responsible for the acts, omissions, defaults and neglect of all of his

    representatives, agents, servants, workmen and suppliers and those of his Sub-

    Contractors.

    A typical functional organization for a construction site management will consists

    of Project Manager, who is obviously a specialist and hold his place in the

    organization because of the specialist functions of management he performs. On

    technical side he will be assisted by Junior Engineers who are also specialists. They

    control the departmental heads, the Foreman.

    There may be Masonry Foreman, Carpentry Foreman, Electrical Foreman, Plumbing

    Foreman and General Foreman. Each of these Foreman, is a specialists and controlled

    the skilled workman who will actually do the work. For example, under the Masonry

    Foreman, there may be eight skilled masons who are again specialist and cannot bereplaced by anybody but mason. Same is the case with other Foreman, except in the

    case of General Foreman, under whom there will be no skilled workman but only

    general unskilled labour who will not do any specialist job.

    A similar type of organization can be devised for Architect office. This office is headed

    by the head of the organization called probably as Chief Architect. There may be two

    Senior Architect working under the Chief Architect.

    These will control the work of four Junior Architects. These will be directly involved in

    the preparation of architectural drawings for which they may take the assistance of

    draughtsmen. Thus it can be seen that each person in the hierarchy ofafunctional organization is specialists, whether he be a mason or carpenter or a

    Foreman or an Engineer.

    The size of the organization depends on the volume, complexity and the time periods of

    the various works being done. The construction team consists of owner, engineers/

    architects and contractor. The team is formed to co-operatively plan, design

    and execute a particular

    project. Theobjective of the team is to execute the owner's project in the best and moste

    conomical manner within the stipulated completion time. The owner forms the

    construction team to serve his interests through the services of both the contractor and

    engineers. The functions of the constituents of any construction team depend upon thescope and nature of the work.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    22/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 22

    Site organisation

    The organization for the construction firm has to be developed taking into account

    the general principles of organization and the special characteristics of the construction

    industry. The type of organization suitable for a small construction firm is simple line or

    line and staff type of organization.Authority

    Executive engineer

    1. To coordinate the work of various contractors and to check whether all necessary

    instructions have been provided to the contractors.

    2. To check the progress of work regularly and to arrange for rectification of faulty

    workmanship or inferior quality material.

    3. Clearing all bills related to construction work for which he is the final authority.

    4. To carry out technical audit and settlement of final contractual dues.

    Assistant Engineer:

    1. To check the specifications of construction jobs in regard to the quality of materials,

    method of workmanship.

    2. To plan and organize construction work in his section in order to avoid delay in the

    process of work.

    3. To keep a record of all measurements of work done and tests carried out at site.

    4. To report regularly to the executive engineer on all the above matters.

    Junior Engineer/Supervisor/Foremen:

    1. To supervise the execution of work at the site in their respective sections.

    2. To

    place indents of material well in advance to avoid delay in the progress of constructi

    on work.

    3. To control and provide technical guidance to workers.

    4. To check and test materials for quality and quantity.

    5. To measure the quantity of work done for the purpose of payment and progress.

    6. To report regularly to the assistant engineer on all matters related to site.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    23/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 23

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    24/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 24

    Role of Mistry/Skilled worker:

    This category include carpenters, steel fixers, machine operators, drivers, fitters, pipe

    jointers etc. They are usually recruited locally for their respective jobs. Their job is to

    keep the work going at the right speed and in the right manner intheir sections.

    Role of Labourers

    They are the ones who assist skilled workers and performed many unskilled jobs at the

    site. They expect the right payment and need to be given clear instructions

    regarding what to do.

    In contractor's site organization, key persons involved in a project.

    Important Duties/Role of Project Manager:

    1. To coordinate the entire construction work on site and with the head office.

    2. To direct and control the construction work on site

    3. To employ work force, hire machinery, engage sub-contractors and material

    suppliers with or without reference to head office depending on the size of

    the project, policy of the firm, distance from head office and also his standing within

    the firm.

    4. To organize, direct and control men working under him.

    5. To check the Progress of work regularly in orders to avoid delay in constructionwork.

    6. To call periodically joint meeting of several key personnel working at thesite to

    review progress and to issue instruction for speeding up work, if required. The duties

    of the resident engineer, Site engineer etc. and are similar to those of the executive

    Engineer, Assistant Engineer etc.

    The project management construction manpower planning is primarily concerned with

    estimating the worker's productivity, scheduling manpower employment, and structuring

    it into workers' team and work groups, with a view to economically match

    manpower supply with the task requirements. Completion of projects on schedule will

    be the completion of number of activities taken up prior to and after the award of the

    contract for construction. The construction planning has to be done in a thorough

    manner so that all problems likely to arise during design construction are identified. Both

    the client and contractor have to work in a spirit of give and take and try to

    accommodate each pother to the extent possible.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    25/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 25

    The project authority has to ensure that the contractor is provided with the site

    for construction and installation of infrastructure facilities and the required equipment,

    materials and construction drawings as per a pre-arranged schedule so that there are

    no chances of delays on that account.

    Although the clients are concerned with the delays in completing projects, they arenotable to take effective measures to address the problems. Even though continuous

    monitoring and follow up actions have led to the solution of some projects

    specific problems, the overall picture of delays remain unchanged.

    The project organizations having failed to improve the completion time despite

    numerous studies and action planned tended to live with the status quo as unavoidable.

    Making Staff Work as a way of organization life:

    An understanding of staff authority lays the foundation for an organizational way of life.Where staff are involved, their responsibility is to develop and maintain a climate of favo

    urable personal relations. Essentially, the task of staff is to make the responsible line

    managers "look good" and to help them do a better job. A staff person should not

    attempt to assume credit for an idea. Not only in this a sure way of alienating line

    teammates who do not like being shown up by a staff person, but operating managers

    who accept ideas actually bear responsibility for the implementation of the proposals.

    Companies also employ the assistance of professional firms, such as consultants to pro

    vide advice to line managers. A major reason for conflict in organizations is

    that people do not understand their assignment and those of their co-workers. No

    matter how well conceived an organization structure may be, people must understand it

    to make it work. Understanding is aided materially by the proper use of organization

    charts, accurate job descriptions, spelling

    outof authority and informational relationships, and introduction of specific goals for spe

    cific positions.

    Organizational conflict can be reduced by the use of organization charts and

    positiondescriptions. Organizing is improved by teaching its nature ans by recognizing t

    heinformal organization and the grapevine. Moreover effective enterprises develop and

    nurture an appropriate organization culture.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    26/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    PGPCM ,1stSem., NICMAR-SODE, Pune 26

    Methods followed for administration/monitoring

    Methods followed for the proper administration and monitoring of the project are as

    follows:

    a) Maintaining proper communication with the concerning parties through

    telephones and letters.

    b) Making it very clear the duties of the contractor in the tender document itself.

    c) Clearly specifying all the materials specifications in the tender document.

    d) Timely site visits by architect/assistant Architect to monitor the construction work.

    e) Proper preparation of tender and working drawings.

    f) Demanding site progress reports weekly from the contractor.

    g) Sending site visits report to the clients/owners for their feedback.

    h) Asking for manufacturer's report, testing reports of various materials used for co

    nstruction from the contractors.

    ConclusionFrom all these elements of organization and scope of work and type contract and with

    the management authority we can achieve the success to complete the project with less

    time and big profit.

    Public contract are required to be let in accordance with certain statutes. The

    performanceof construction work is done pursuant to contractual agreement. Although t

    here are numerous types of contracts, the contractor's obligation and initial concern is

    much more basic. With the proper understanding of the basic requirements for the

    formation of legal contract, the contractor will be better able to avoid pitfalls, lawsuits

    and liabilities. The essential contractual requirements are an offer, an acceptance of theoffer and consideration.

  • 8/10/2019 ASSIGNMENT-Construction Contracts and Contracting

    27/27

    CONSTRUCTION CONTRACTS AND CONTRACTING 2014

    Bibliography

    Contract Management in Civil Works Project- V. A. Prakash NICMAR

    Publication.

    NCP23 (Construction Contract and contracting).

    Construction Project Management: Theory and Practice- Jha Kumar Neeraj,

    Kumar Neeraj Jha

    FIDIC Contracts guide