CENTRING CONTRACT Loan Project

PROJECT REPORT ON CENTRING CONTRACT
1. INTRODUCTION TO CONSTRUCTION INDUSTRY

Construction is the process of constructing a building or infrastructure.
Construction differs from manufacturing in that manufacturing typically
involves mass production of similar items without a designated purchaser, while
construction typically takes place on location for a known client. Construction
as an industry comprises six to nine percent of the gross domestic product of
developed countries. Construction starts with planning, design, and financing; it
continues until the project is built and ready for use.
Large-scale construction requires collaboration across multiple
disciplines. A project manager normally manages the budget on the job, and a
construction manager, design engineer, construction engineer or architect
supervises it. Those involved with the design and execution must consider
zoning requirements, environmental impact of the job, scheduling, budgeting,
construction-site safety, availability and transportation of building materials,
logistics, and inconvenience to the public caused by construction delays and
bidding. Large construction projects are sometimes referred to as megaprojects.
In general, there are three sectors of construction: buildings,

infrastructure and industrial.
 Building construction is usually further divided into residential and non-

residential (commercial/institutional).
 Infrastructure is often called heavy civil or heavy engineering that includes
large public works, dams, bridges, highways, railways, water or wastewater
and utility distribution.
 Industrial construction includes refineries, process chemical, power
generation, mills and manufacturing plants.
2. INTRODUCTION TO CENTRING
Centring, centre, centering, or center is a type of false work: the

temporary structure upon which the stones of an arch or vault are laid during
construction. Centering is a formwork which supports the horizontal surface
such as beam, slab bottoms. Until the keystone is inserted an arch has no
strength and needs the centring to keep the voussoirs in their correct relative
positions. A simple centring without a truss is called a common centring. A
cross piece connecting centring frames is called a lag or bolst.
Centring is normally made of wood timbers, a relatively straightforward

structure in a simple arch or vault; but with more complex shapes involving
double curvature, such as a dome or the bottle-shaped flue in a Norman-period
kitchen, clay or sand bound by a weak lime mortar would be used. Shaping
could be done by eye, perhaps with the help of a template, then stones or bricks
laid against it. On larger works like a 19th-century pottery kiln this was
impractical. The structure would be built round a post acting as a datum, and
each course of stonework would be set at a distance from the datum. When the
centring is removed (as in "striking the centring"), pointing and other finishing
continues.
Shuttering or form work is the term used for temporary timber, plywood,
metal or other material used to provide support to wet concrete mix till it gets
strength for self support. It provides supports to horizontal, vertical and inclined
surfaces or also provides support to cast concrete according to required shape
and size. The form work also produces desired finish concrete surface.
Shuttering or form work should be strong enough to support the weight of

wet concrete mix and the pressure for placing and compacting concrete inside or
on the top of form work/shuttering. It should be rigid to prevent any deflection
in surface after laying cement concrete and be also sufficient tight to prevent
loss of water and mortar form cement concrete. Shuttering should be easy in
handling, erection at site and easy to remove when cement concrete is sufficient
hard.
Steel plates for Steel Shuttering
Generally there are three types of shuttering.

 Steel Shuttering
 Wooden Planks Shuttering
 Temporary Brick Masonry Shuttering
Recommended Period for Removal of Shuttering
 48 hours for sides of foundations, columns, beams and walls.
 7 days for underside of slab up to 4.5 meter span
 14 days for underside of slab, beams, arches above 4.5 meter up to 6

meter span.
 21 days for underside of beams arches above 6 meter span and up to 9

meter span.
 28 days for underside of beams arches above 9 meter span.
Defects Found In Shuttering/Form Work
 The supports of form work are not in plumb and are not cross braced.
 The ground supports of ballies are poor and therefore settle the form
work.
 There is insufficient thickness of shuttering plates/planks unable to bear

lateral pressure imposed by wet concrete especially in columns.
 Shuttering plates are not cleaned and oiled or oiled with dirty oil.
 There are many insufficient and loose connections in centering and

shuttering.
 The form work is removed before time. The work is not planned and
designed properly.
 In case of beam shuttering proper provision for retaining side is not made.
Hence the side of beam is not in proper line.
 The shuttering is poorly made with cracked and warped timber planks
having lots of holes and knots.
 Through bolts for RCC walls form work for an underground tank is used.
Later these holes made by bolts are not plugged.
 ‘Ballies’ are resting on bricks or brick pillars
 Ballies are not in one piece. Small ballies are used and these are not
properly jointed. Also no additional cross bracing is provided at the joint.
 The supports under shuttering plates are not properly tight.
 The earth work under supports is not properly compacted before starting
shuttering work.
 The bottom of ‘ballies’ are in wedge shape, not having proper base.
3. DEMAND
Construction industry is one of the largest industries and supports

infrastructural growth of a growing country like India. Centring work being a
part of such industry will have everlasting demand for work orders as most of
the medium and small construction owners prefer to outsource the centring
work to other such contractors. The promoter having a good experience in the
field proposes to purchase various machines and tools for taking contracts to
earn a good income.
4. ABOUT THE PROMOTER

Name :
Sex :
Permanent Address :
P.Puliampatti, Erode (Dt)-638459.
Nationality : Indian
Working Experience : 8years as supervisor with various

Centring contractors
5. FINANCIAL ASPECTS:
(A) Fixed Capital
(i) Land & Building:
Built-up area: 200 sq. ft. for warehouse and office : Own building
(ii) Machinery & Equipments
Sl. Rate Qty Value
Machinery Description
No. (Rs.) Nos. (In Rs.)
Bosch GSH 16-30 Professional Demolition
1. 56,500 1 56,500
Hammer Ph65 (16kg)
2. Bosch 11Kg Demolition Hammer GSH 11E 23,250 2 46,500
Bosch GBH 2-22 E Professional Rotary
3. 11,730 3 35,190
Hammer
4. Bosch GSH500 - 5 KG Chipping Hammer 12,500 2 25,000
5. Bosch GSB 16 RE - 16mm Corded Drill 5,750 4 23,000

Bosch GWS 10-125 Professional Angle
6. 5,900 4 23,600
Grinder, 11000 Rpm
Bosch GWS 26-180 LVI Professional Angle
7. 20,700 1 20,700
Grinder
8. Bosch GDC 120 Professional Marble Cutter 4,650 2 9,300
9. Bosch GCO 14-24j Professional Chop Saws 12,700 4 50,800
10. Bosch GCM 10 MX Professional Mitre Saw 28,400 2 56,800
11. Bosch Arc 200 Welding Machine 6,950 4 27,800

Marco Weld Single Phase 250AMP ARC
12. 13,500 1 13,500
Inverter Welding Machine
13. Hand tools 7,500 2 sets 15,000
Total 4,03,690/-
Say 4,03,700/-
(iii) Other Fixed Assets

i. Erection and installation Nil
ii. Office Furniture 5,000
iii. Pre-operative expenses 5,000
Total: 10,000/-
Total Fixed Capital: 4,13,700/-
(B) Working Capital (per month)

(i) Staff & Labour (Per Month):
Sl. Rate Amount

Personnel No.
No. (In Rs.) (In Rs.)
1. Manager/Proprietor 1 10000 10,000/-
2. Accounts Officer 1 6000 6,000/-
3. Site supervisor 2 8000 16,000/-
4. Electrician 1 6000 6,000/-
5. Skilled Workers 6 8000 48,000/-
6. Unskilled Workers 4 5000 20,000/-
Total: 1,06,000/-
Perquisites @ 20% on the total salary 21,200/-
Grand Total 1,27,200/-
(ii) Utilities: (Per Month)
1. Electricity 500/-
2. Water charges 500/-
Total: - 1,000/-
(iii) Other Contingent Expense (Per Month):
1. Rent Nil
2. Postage & Stationery 500/-
3. Repair and maintenance 2,000/-
4. Transport /Traveling charges 2,000/-
5. Telephone Bills 800/-
6. Miscellaneous Expenses 1,200/-
Total: 6,500/-
(iv) Total Recurring expenses (per month):
i. Staff & Labour 1,27,200/-

ii. Utilities 1,000/-
iii. Other contingent expenses 6,500/-
Total: 1,34,700/-
(C) TOTAL CAPITAL INVESTMENT:
1. Machinery & Equipment 4,13,700/-
2. Working Capital 1,34,700/-
Total: 5,48,400/-
(D) MEANS OF FINANCE:
Total Project Cost 5,48,400/-
Promoter contribution 73,400/-
Finance required from the Bank 4,75,000/-
6. INCOME ASSESSMENT:
(1) Cost of Business (Per Annum)
1. Recurring Expenses 16,16,400/-
2. Depreciation on Machinery @ 10% 40,370/-

Depreciation on Office Furniture &
3. 1,000/-
other fixed assets @ 20%
4. Interest on Total Investment @ 12% 65,808/-
Total: 17,23,578/-
Say 17,23,600/-
(2) Turn Over (per year)
Description Value (Rs.)
Income by centring contracts, building reworks, flooring

21,00,000/-
works, etc.
(3) Net Profit (per year)
Sales Value (-) Cost of Production
21,00,000/- (-) 17,23,600/- = Rs.3,76,400/-
(4) Net Profit Ratio:
Net profit X 100 3,76,400 X 100 = 17.92%

Turn Over/Annum 21,00,000
(5) Rate of Return on Investment:
(Net Profit/Total Capital Investment)

Annual Profit X 100 3,76,400 X 100 = 68.64%
Total Capital Investment 5,48,400
(6) Break Even Point/Analysis:
Fixed Cost (Per Annum):
1. Rent Rs. Nil
2. Depreciation Rs. 41,370/-
3. Interest on Capital Investment Rs. 65,808/-
4. 40% of Wages of Staff & Labour Rs. 6,10,560/-
5. 40% of other contingent expenses Rs. 36,000/-
Total Fixed Cost: Rs. 7,53,738/-
Total Fixed Cost:(Say) Rs. 7,53,700/-
Break Even Point:
Fixed Cost X 100 7,53,700/- X 100 = 66.69%

Fixed Cost + Annual Profit 7,53,700/- + 3,76,400/-
7. REPAYMENT SCHEDULE
Repayment of loan Rs.5.00 lakh (Rs.4.75 lakh) will be repayable in
5years with 60 instalments. The rate of interest has been calculated @ 12.50%
per annum however the rate of interest may vary while implementing the
project.
(Rs. in lakhs)
Total Total
Year Months Principle Instalment Interest
Interest repayment
1 12 0.73 1.28 0.55 0.55 0.73
2 12 0.83 1.28 0.45 1.00 1.56
3 12 0.94 1.28 0.34 1.34 2.50
4 12 1.06 1.28 0.22 1.56 3.56
5 12 1.19 1.28 0.09 1.65 4.75

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PROJECT REPORT ON CENTRING CONTRACT

1. INTRODUCTION TO CONSTRUCTION INDUSTRY

In general, there are three sectors of construction: buildings,

 Building construction is usually further divided into residential and non-

Centring, centre, centering, or center is a type of false work: the

Centring is normally made of wood timbers, a relatively straightforward

Shuttering or form work should be strong enough to support the weight of

Steel plates for Steel Shuttering

Generally there are three types of shuttering.

 48 hours for sides of foundations, columns, beams and walls.

 7 days for underside of slab up to 4.5 meter span

 14 days for underside of slab, beams, arches above 4.5 meter up to 6

 21 days for underside of beams arches above 6 meter span and up to 9

 28 days for underside of beams arches above 9 meter span.

Defects Found In Shuttering/Form Work

 There is insufficient thickness of shuttering plates/planks unable to bear

 There are many insufficient and loose connections in centering and

 ‘Ballies’ are resting on bricks or brick pillars

 The supports under shuttering plates are not properly tight.

Construction industry is one of the largest industries and supports

4. ABOUT THE PROMOTER

Working Experience : 8years as supervisor with various

5. Bosch GSB 16 RE - 16mm Corded Drill 5,750 4 23,000

9. Bosch GCO 14-24j Professional Chop Saws 12,700 4 50,800

10. Bosch GCM 10 MX Professional Mitre Saw 28,400 2 56,800

11. Bosch Arc 200 Welding Machine 6,950 4 27,800

(iii) Other Fixed Assets

ii. Office Furniture 5,000

iii. Pre-operative expenses 5,000

Total Fixed Capital: 4,13,700/-

(B) Working Capital (per month)

Sl. Rate Amount

(ii) Utilities: (Per Month)

(iii) Other Contingent Expense (Per Month):

(iv) Total Recurring expenses (per month):

i. Staff & Labour 1,27,200/-

(C) TOTAL CAPITAL INVESTMENT:

1. Machinery & Equipment 4,13,700/-

2. Working Capital 1,34,700/-

(D) MEANS OF FINANCE:

Total Project Cost 5,48,400/-

Promoter contribution 73,400/-

Finance required from the Bank 4,75,000/-

1. Recurring Expenses 16,16,400/-

2. Depreciation on Machinery @ 10% 40,370/-

(2) Turn Over (per year)

Description Value (Rs.)

Income by centring contracts, building reworks, flooring

(3) Net Profit (per year)

Sales Value (-) Cost of Production

21,00,000/- (-) 17,23,600/- = Rs.3,76,400/-

(4) Net Profit Ratio:

Net profit X 100 3,76,400 X 100 = 17.92%

(Net Profit/Total Capital Investment)

(6) Break Even Point/Analysis:

Fixed Cost (Per Annum):

1. Rent Rs. Nil

2. Depreciation Rs. 41,370/-

3. Interest on Capital Investment Rs. 65,808/-

4. 40% of Wages of Staff & Labour Rs. 6,10,560/-