CONSTRUCTION CONTRACTS AND CONTRACTING

2014

Project name
INFRALINE TECHNOLOGIES, Noida
The proposed project is to develop an Office Building by the name of INFRALINE
TECHNOLOGIES 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:

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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 per
specifications.
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 RATE CONTRACT
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

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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 the
Work 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 schedule
a) 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.

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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 Subcontractors 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 the
following:

Force Majeure;
Delay in the receipt of construction status drawings 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

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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

2014

Contractor has to furnish the detailed construction programme based on the above
milestone and also incorporating the activities of other services contractors, keeping in
view 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 of
quantities 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

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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 Compensation
c. 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/c
from 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

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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 advance

Payments 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 submit
the 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 the
Construction 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

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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 be
released 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 Managers Certificate.
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 and
these shall be deemed to have been waived and extinguished.

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

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12.

2014

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 programme
utilizing 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 programme
showing 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. The
Contractor 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.

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16.

2014

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 materials

The 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 Manager
four (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

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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 planned
delivery 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

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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 the
Project 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 and
other 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

conditions are given in good faith; the Contractor shall,
independent inquiries and verify the same. Any claims for
deviations or incorrectness of above referred information,
considered as inadmissible.

drawings relating to Site

however, make his own
extras on account of any
levels etc. and shall be

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.

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25.

2014

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

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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 Contractors work
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 contractors running 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 in
connection with the Contract.
Such instruments which must be approved by the Architect, shall include but not limited
to the following:

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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 30
metre 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 equipments and
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 and
Checklists 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.

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The Contractor shall file daily category-wise labour return. The report shall indicate
scheduled requirement against actual strength.

The Contractor shall prepare weekly reports of planned and actual progress of the
Work and the subsequent week's scheduled Work. These will also include material
procurement status.

These reports shall be submitted to Project Manager and Owners Representative and
shall be reviewed in weekly co-ordination meeting. The Contractor shall submit monthly
report along with monthly bills. Further progress charts and schedules shall be prepared
by the Contractor as directed by the Project Manager.
Contractor shall submit a safety procedure manual or Company policy on safety.
Complying with the SHE Plan and outlining its implementation by the Contractor and
including:
Quality Assurance and Control System (Sample format).
Realistic construction programme/schedule.
Contractor shall maintain and make available all the records pertaining to reports,
returns and checklist to the Project Manager during ISO audits (internal as well as
external) and make necessary corrections, additions and actions based upon the
findings / observations of the audits. It must be understood by the contractor that ISO
audits are very important to the Project Manager for renewal of ISO certificate, therefore
the contractor shall ensure that there is no laps on its part that may jeopardize the
certification of the Project Manager. Contractor shall follow and abide by all the
instructions that the Project Manager may impose from time to time.

38.

Name board

A name board shall be made and displayed by the Contractor at his own cost at the Site
at some approved place. The drawing of the Name Board shall be got approved from
the Project Manager. The contents of the board shall be as follows:Name of the Project.
Name of the Owner/Owners.
Project Manager/ Architects with their address.
Contracting Agency.
Other Contracting Agencies.
Care should be taken to see that the height of letters especially for the Architects should
not be more than 2" to abide by the code of professional conduct prescribed by the

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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 quantities

exceeding 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 Managers written 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

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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 other
things 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 guarantee

The 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 the
safe 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.

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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 existing
boundary 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

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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 of
Arbitration 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 Project
Manager, 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 Contractors Representative, 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 Contractors Representative 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

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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 SubContractors.
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 be
replaced 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 of
afunctional 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 the
scope and nature of the work.

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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.

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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 in
their 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 construction
work.
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.

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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 are
notable 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.

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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.

Conclusion
From 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 the
offer and consideration.

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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

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