Contract Administration

Contract administration is the management of the contract between the employer, or client, and
the building contractor.
Contract administration formally starts when the building contractor is hired to deliver the building
project and associated works

What is Contract?
A contract is a legally binding or valid agreement between two parties.

Elements of contract:
1. Offer and acceptance.
2. An intention between the parties to create binding relations
3. Consideration to be paid for the promise made
4. Legal capacity of the parties to act
5. Genuine consent of the parties
6. Legality of the agreement
An agreement that lacks one or more of the elements listed above is not a valid contract

CONSTRUCTION / BUILDING CONTRACT:

A Contract between an Owner (Client) and a Building Contractor, setting forth the terms under
which construction is to be carried out, the basis of remuneration, the time scale, and the penal-
ties, if any, (for failure to comply with terms of the Contract) is termed as a Building/Construction
Contract.

Main elements of Construction / Building contract

1. The Contract or Agreement letter.
2. General Conditions of the Contract – these define the legal rights and obligations of the par-
ties; another way of describing the general conditions is as the rules by which each party will
operate in performing their obligations as set down under the Contract.
3. Special conditions of Contract – these are an extension to the general conditions and apply
specifically and individually to each project/Contract.
4. Bill of quantities – it lists quantities of the various items and the material to be included in the
Contract. It can also be used as the basis for valuation of variations and assists the preparation of
progress claims. The extent to which the Owner warrants the completeness of a bill of quantities
or a schedule of rates depends upon the terms of the Contract.
5. All drawings required in building the structure (contract plans including Architectural and
Structural). These include drawings from relevant Consultants.
6. All Specifications – sets out the technical requirements of the work It describes the project and
adds clarity to its drawings; describes the requirements for materials and workmanship.
7. All other documents considered necessary, for example, Schedule or Annexure to the Contract
completed, all technical schedules, all pricing schedules.

ROLE OF CONTRACT IN PROJECTS

What is a Project?
Project is a temporary endeavor undertaken to create a unique product (such as a building,
conservation of structure, laying a pipeline etc.). The temporary nature of a project indicates a
defined beginning and end. The end is reached when project objective have been achieved or
when the project is terminated because its objective cannot be met.
When client wish to hire the services of other agencies to do full or part of project, he offers for
bid. The successful bidder enter into a contract with the client. Project may have many contracts
PHASES OF PROJECTS
1. Initiation
2. Planning
3. Execution
4. Monitoring and Control
5. Closure

CONTROLLING PROJECTS:
A contract administrator’s role only starts when a building contract is in place between the em-
ployers and the contractor. The contract administrator is responsible for a variety of services from
the time the contract starts to the time it ends.

IMPORTANT CONDITIONS OF CONTRACT:

1)Time of completion
The Contractor is required to complete the work within the agreed time of completion which
is specified in a suitable unit of time (year, month, week etc) depending upon the nature and
scope of work. The contractor is also required to maintain a proportionate progress of work.

2)Delay and Extension Time:

Delay in completion of work not attributed to the Extension Time: contractor should be brought to
the notice of the owner by the contractor in writing, within the time specified in the contract, for
seeking extension of time. The owner will satisfy himself that the delay is not on account of a lapse
on the part of the contractor before granting suitable extension of time.

3)Penalty:
It is a fine imposed on the contractor for non- fulfillment of his contractual obligations such as
failure to maintain required progress of work, delay in completion, poor quality or work, bad work-
manship etc.
Compensation for The contractor is liable to pay compensation to the delay in completion
owner for delay attributed to him in completion of work. The amount of compensation may be
stated as a percentage of the estimated cost of work for each unit of time delay. The maximum
of work: limit of compensation may be 10% of the contract price.

4)Liquidated Damages:
It is a fixed stipulated sum payable by the contractor on account of penalty for delays and does
not bear any relationship to the real damage to the owner. It is generally high and fixed per day
for excess period over the specified in the contract for completing the work.

5)Valuation of Variations:
The valuation of variations is based on change orders issued in writing by the owner. Generally,
the variation in individual items of work should not be more than 25% and variation in total cost
should not exceed 10%.

6)Settlement of Disputes:
Efforts should be made to resolve disputes amicably between the owner and the contractor
through mutual discussions and negotiations. Arbitration clause may be incorporated in the con-
tract to settle disputes not resolved through mutual discussions and negotiations.

7)Forces of Nature and Natural Disasters:

Natural disasters along with occurrence of riots, civil commotion, revolt etc. are beyond the
control of the contractor and may lead to financial and time loss. The contractor should obtain
an insurance policy for such risks as can be covered by insurance. In the event of financial or
time loss, the contractor can claim financial compensation from the owner for risks which are not
insurable and an extension of time for all such risks.
8) Termination of Contract:
The owner can terminate the contract in the event of default or bankruptcy of the contractor
and may impose penalty as per the contract agreement. Default on the part of the contractor
includes abandoning the work,failure to maintain required progress, non-observance of rues /
instructions etc. for which the owner may rescind the contract and impose penalty upto 10% of
the estimated cost of work. Due notice must be served
on the contractor before termination of the contract.

9) Price Escalation:
During execution of the work, labor wages and material prices may increase as a result of in-
flation. The contract conditions should therefore, include on appropriate clause for payment of
escalation to the contractor. The compensation for escalation is normally worked out at quarterly
intervals with respect to the cost of work executed during that period.

Billing & Bill Checking

The prime purpose of the Bill of Quantities (BOQ) is to enable all contractors tendering for a con-
tract to price on exactly the same information. So, billing shall be based on Bill of Quantities
(BOQ) to enable all contractors to follow a contract to price to get paid for the work done
Role of billing engineer in construction is about preparing bills for payments and performing the
estimation of quantities along with order of materials.

The payment to the contractors for works are made on the basis of measurements recorded in
the measurement books. When the work or supply is completed or sufficiently progressed, the de-
tailed measurements are taken usually by the supervisor and recorded in the measurement book
and an abstract of quantities are prepared and the cost is calculated at the rate of the contract
agreement. From the abstract of quantity and the rate, a bill is prepared for payment.

Billing must be done in skillful way with the planning, monitoring, analysis of all the work related to
payments based on BOQ. For Non-BOQ items, analysis of rates to be done before raising bills

1. Bill and Voucher

Bill: Bill is the account of work done or supply of materials made and includes the particulars
and quantities of work done or material supplied and amount due. Reference to the agreement
number, order number are also given in the bill.
Voucher: Voucher is a written document with details which is kept in record as a proof of pay-
ment. For any payment, a bill is prepared and payment is made on the bill, duly checked and
acknowledged by the payee, by signature or revenue stamp as required and after payment is
made, bill becomes voucher which is kept in record.

2. Types of Bills
The various standard forms of bills and vouchers are used for payment, according to the nature
of works. White forms are used for running bills and Yellow forms are used for final bills. Companies
have their own system of coding the bills.

2. Types of Bills
• First and Final bill
• Running account Bill
• Lump sum contract Bil
• Hand receipt
a) First and Final Bill: This form is used for making payment to the contractor both for
works and suppliers, when a single payment is to be made on the completion of the
whole work or supply as final payment. This type of bill is generally adopted for petty works
or split up works in projects.

b) Running Account Bill: Used for advance payment without any measurement. It may
be used for running bill payment for advance for unmeasured work only or combination
of unmeasured work and measured work or if ‘on account’ payment is to be made but
an advance payment already made for the same work is outstanding.

c) Lump Sum Contract Bill: In the L.S. contract methods, a number ofintermediate pay-
ments are made in L.S. contract running account bill form before final payment is made.
Intermediate payment is made for
(i) value of measure up items of work executed forming part of the contract.
(ii) value of authorized extra work done on account of additions or modifications in the
work executed supported by details in either case. In the final L.S. bill, the full amount as
entered in the contract is paid adding the amount of authorized extras and deducting
authorized omission and the intermediate payments already made.

d) Hand Receipt: Hand receipt is a simple form of voucher intended to be used for small
miscellaneous payments and advances for which none of the above forms is suitable.
The purpose of payment and the designation of the officer making payment duly sup-
ported by measurement book entry should be furnished on the hand receipt No agree-
ment is necessary for payments made through Hand receipt form.

3. Types of Payments
a) First and Final Payment
b) Running on Interim or ‘on account’ payment.
c) Final payment
d) Advance payment
e) Secured Advance payment

a) First and Final Payment: The term indicates a single payment made for a job or con-
tract on its completion. In this case the payment finished by one payment after the com-
pletion of the work. This is usually applicable for small work.
b) Running or interim ‘on account’ payment: This means payment made on a running
account to a contractor for works done or supplies made by him, duly measured and
entered in measurement book. This is effected when only a part of the whole work or sup-
ply has been done and the work or supply is in progress. During the progress of the work,
the contractor is paid from time to time.
c) Final Payment: This is the last payment made to a contractor on a running account,
on completion of this contract and the full settlement of the account.
d) Advance Payment: This means the payment made on a running account to a con-
tractor for work done by him but not measured. Advance payment is not generally made
to the contractor, but may be made under special circumstances when the work is suf-
ficiently progressed, but measurement cannot be taken for certain valid reasons. The
value of work done shall not be less than the advance proposed. Detailed measurements
shall be taken as soon as possible and advance payment adjusted in the final bill.
e) Secured Advance Payment: This payment is made on the security of materials brought
4. Preparation, Examination and Payment of Bills

The bills for payment shall be prepared with respect to the measurements recorded in the
measurement book. All entries in the measurement book with regard to the description and
quantities of work or supplies made are checked. Arithmetical calculations of the contents or
area are verified. When, the bill is on running account then it is compared with the quantities
etc. with the previous bill.

It is checked whether deduction in respect of the following have been properly made.
a) Recovery for advance payment
b) Recovery in respect of departmental materials issued to the contractors.
c) Hire charges for departmental materials issued to the contractors.
d) Amount to be withheld towards security deposit.
e) Recovery towards penalty for slow progress, non-return of temporary issue of materials etc.

In case of final bills, the field officers should certify about the due fulfillment of contract and
satisfactory completion of work. The memorandum of payment is then made. The compe-
tent officer records a formal pay order specifying both in words and figures the net amount
payable. However, the contractor is required to acknowledge the gross amount payable
inclusive of recoveries proposes in the bill. The number and date of the voucher for payment
will be entered in the measurement book.

Building Commissioning & Handover

Completion of the works and handover to
the occupier marks the point of transition in
to occupancy. It is the fitted-out space being
handed over and accepted by the occupier
and owner as completed in accordance with
the requirements.

Building Commissioning:
Building Commissioning is the professional practice that ensures buildings are delivered
according to the Owner's Project Requirements (OPR). Buildings that are properly commis-
sioned typically have fewer change orders, tend to be more energy efficient, and have
lower operation and maintenance cost.

Ensuring the building systems are operating as intended and Owner/Operators have the
information and training they need. It is the Owner/Operator’s way of making sure that the
project’s energy related systems are installed, calibrated and performing according to
the project requirements.

A commissioned building provides optimized energy efficiency, indoor air quality, occu-
pant comfort and sets the stage for reduced operation and maintenance costs
The level and depth of commissioning required is determined by the size of the project
and by the needs defined in the owner’s project requirements.

Systems to be commissioned throughout the building process, and in which operators

should be trained, include:
• Lighting and Controls
• Life safety system (fire alarm, sprinklers, etc.)
• Air and water balancing
• HVAC systems

Pre-Handover Meeting
Areas of Concern:
The General Contractor and the Owner/Operator must coordinate on critical tasks prior to
project completion

An early, focused review of the status of all critical activities and project requirements
leading to completion and occupancy will help ensure a successful handover. At 60 days
from the expected substantial completion date, a building pre-handover meeting should
occur. Both the Development
Team (Prime Consultant, General Contractor, Development Consultant / Project Manager
and the operations team (Owner/Operator of the project) should attend and review the
status of the following:

1. Utility and service connections

2. Commissioning activities
3. Items on the occupancy permit application checklist
4. Closeout documents:
5.Operating and maintenance manuals
6. As-built drawings
7. Commissioning documents

Contract Closeout Requirements

The handover of the site to the client takes place once the contract administrator has
confirmed that the works defined in the contract are complete. However, it should be
planned well in advance, and any special requirements included in appointment docu-
ments and contracts.

Confirming the works as complete and fit for occupation should involve all key stakehold-
ers. In this regard, confirming that sustainability requirements have been met, e.g. features
included and commissioned, and construction measures evidenced, will be part of the
wider review of completed quality against the scope of works

Requirements and Responsible Parties:

It is the General Contractor’s responsibility to prepare the O&M Manuals.
Instructions in the manuals must be user-friendly to effectively guide the Owner/Operator
in the proper operation and maintenance of building systems, materials, finishes, compo-
nents and equipment.

1. Consultant/Project Manager:
Plan and coordinate the activities of the General Contractor, Prime
Consultant and Owner/Operator so complete O&M manuals are available at handover.
2. Consultants:
❑ Review the General Contractor’s draft table of contents and submit comments to the
General Contractor within 15 calendar days
❑ Review the complete O&M manuals to ensure completeness and accuracy, and pro-
vide written comments to the General Contractor within 30 calendar days
❑ Ensure that an appropriate deficiency holdback is applied to the
General Contractor’s payment until approved O&M manuals have been submitted to the
Owner/Operator

3. General Contractor:
❑ Engage experienced and qualified staff or consultants to prepare the
O&M manuals
❑ Submit a draft table of contents at the pre-handover meeting (60 calendar days prior
to expected substantial completion) for approval by the design consultants, Owner/Oper-
ator and commissioning authority
❑ Prepare the O&M manuals in accordance with the approved table of contents and
submit the complete O&M manuals to the Prime
Consultant and Owner / Operator with the application for substantial completion

4. Owner/Operator
❑ Review the O&M manuals submitted by the General Contractor and inform the consul-
tant if any information is missing, or clarification required, within 15 business days

Without as-built drawings at the time of handover, the Owner/Operator will not have the
reference drawings they need to troubleshoot or resolve building issues.
The General Contractor must submit to the Owner/Operator two copies of white prints and
electronic PDF and CAD drawing files

Without as-built drawings at the time of handover, the Owner/Operator will not have the
reference drawings they need to troubleshoot or resolve building issues. The General
Contractor must submit to the Owner/Operator two copies of white prints and electronic
PDF and CAD drawing files

Requirements and Responsible Parties:

1. Prime Consultant:
❑ Review the accuracy and completeness of the as-built drawings prepared by the Gen-
eral Contractor and ensure these comply with the requirements of the contract
❑ Finalize the as-built drawings promptly to meet the General Contractor’s obligation to
the Owner/Operator

2. General Contractor:
❑ At 75% completion, coordinate with the Prime Consultant to initiate the preparation of
the as-built drawings
❑ Submit complete as-built drawings to the Prime Consultant and BC Housing with the
application for substantial completion
❑ Submit complete and approved as-built drawings to the Owner / Operator no later than
30 calendar days after substantial completion
❑ Ensure that an appropriate amount is held back from the progress billings until com-
plete and approved as-built drawings have been received.
Training and Orientation

The Development Team and Commissioning Agent (if applicable) are responsible for training and
providing an orientation to the Owner / Operator’s maintenance staff. The training session should
incorporate all building systems and should match the staff’s level of expertise.

1. Commissioning Agent and/or General Contractor:

❑ Conduct a walkthrough for general Owner/Operator staff
❑ Lead a training session with the Owner/Operator’s maintenance staff.
Ensure the Owner/Operator’s needs are met and questions are answered. Ensure all necessary
sub-trades are present to assist with training. Answer questions as they arise
❑ Digitally record the training session if possible
2. Consultant/Project Manager:
❑ Coordinate the training session, ensuring all necessary parties are present

The Development Team and Commissioning Agent (if applicable) should begin the building
commissioning process prior to occupancy, at or before substantial completion.

1. Commissioning Agent and/or General Contractor:

❑ Begin commissioning the building. Ensure all systems are performing to their manufactur-
er-specified standards and connections among systems are properly set up (including the direct
digital control system, if applicable)
2. Consultant/Project Manager:
❑ Ensure that building commissioning is taking place before orat the same time as substantial
completion. Confirm the final building handover meeting and training dates and topics

Substantial Completion
The construction contract is
SUBSTANTIALLY COMPLETE when the Prime Consultant issues a certificate of completion for the
work as a whole, and the building is ready to use for the purpose intended.

Responsible Parties:
1. Prime Consultant:
❑ Conduct deficiency inspections to determine if the General Contractor’s application is valid
and to assess the value of the deficiencies
❑ Prepare a deficiency list that incorporates all deficiencies noted by the project sub-consultants,
Owner/Operator and BC Housing
❑ Carefully evaluate the cost of deficiencies to ensure the deficiency hold back is adequate to
complete the remaining and deficient work to the satisfaction of the Prime Consultant and the
Owner/Operator
❑ If the application is valid, issue the certificate of completion to the
General Contractor and Owner/Operator no later than 10 calendar days from the General Con-
tractor’s application for substantial performance

2. General Contractor:
❑ Upon substantial performance of the work, submit a list and estimate of deficiencies to the
Prime Consultant with the application for substantial performance
❑ Immediately following the issuance of the certificate of completion, establish a reasonable
date for correcting deficiencies and inform the
Owner/Operator in writing of the date
3. Owner / Operator:
❑ Upon the General Contractor’s request for certification of substantial performance, conduct
inspections with the Prime Consultant and General Contractor to identify deficiencies

Construction Deficiencies

After substantial completion, the General Contractor should correct all deficiencies identified by
the Prime Consultant, the Owner/Operator

1. Prime Consultant:
❑ Review and provide written sign-off on correction of deficiencies to confirm compliance with the
contract documents
❑ Establish a deficiency hold back in the amount of twice the value of the deficiencies when certi-
fying progress payment at substantial completion
❑ Avoid certifying partial release of the deficiency hold back, unless for seasonal deficiencies

2. Consultant / Project Manager:

❑ To avoid deficiencies from escalating as the project approaches completion, work with the De-
velopment Team to implement a quality-control process to ensure the standards called for in the
contract are met and deficiencies are identified and corrected promptly

3. General Contractor:
Correct the deficiencies to the satisfaction of the Prime Consultant and Owner/Operator, accord-
ing to the agreed-upon schedule.

4. Owner / Operator:
❑ To differentiate General Contractor deficiencies from tenant or Owner/Operator damage,
agree with the General Contractor on a process for addressing damage to the premises during
Owner/Operator or tenant move-in
❑ Discuss the General Contractor’s performance issues and appropriate action with Project Man-
ager
❑ At the completion of the project, inform the bonding company of major issues regarding the
General Contractor’s performance

Occupancy Permit
The occupancy permit is issued when the municipality has deemed the building to be complete
and ready to use for its intended purpose. Obtaining the occupancy permit involves the work
of numerous parties, including all the consultants, the General Contractor, subcontractors and
authorities having jurisdiction over the project. This requires careful planning and coordination by
the Development Team to enable the
Owner/Operator to meet their target occupancy date.

1. Prime Consultant:
❑ Review the key activities and timelines leading to building occupancy and timelines in the over-
all development schedule so that these can be managed to meet the target occupancy date
❑ Consider a pre-occupancy inspection (or dry run) with the Prime Consultant and the city/munici-
pal staff to identify issues that might affect final occupancy approval
❑ Communicate promptly on issues that could delay occupancy and recommend remedial ac-
tion to bring the project back on track
Building Handover Meeting

A building handover meeting should take place to formalize the handover of the project from
the General Contractor to the
Owner/Operator and to address specific issues that the Owner/Operator may face as they begin
operating and maintaining their building.
All stakeholders attend the building handover meeting. The Development Consultant / Project
Manager, General Contractor, Prime Consultant, Owner/Operator representatives including those
responsible for building operations should all be present at the meeting

Building Handover Meeting

The purpose of the meeting is to accomplish the following:
❑ Handover the occupancy permit or other approvals from the statutory authorities
❑ Handover building keys to the Owner/Operator
❑ Handover project closeout documents, such as as-built drawings and O&M manuals
❑ Confirm the status of Owner/Operator’s training on building systems
❑ Confirm the status of building commissioning activities
❑ Equipment test certificates for lifts, escalators, lifting equipment, cradle systems, air-condition-
ing etc.
❑ Confirm transfer of utility bills from the General Contractor to the
Owner/Operator
❑ Establish a procedure for addressing defects noted during the warranty period

Defect Liability Period

A defects liability period is a set period of time after a construction project has been completed
during which a contractor has the right to return to the site to remedy defects.
A typical defects liability period lasts for 12 months.
❑ Defects liability periods will only arise if they are included in the contract.
❑ Contractors do not have the automatic right to return to the site to fix any defects.
❑ Employers should give careful consideration to the wording and requirements of defects recti-
fication provisions where they are considering hiring another contractor to fix the original contrac-
tor’s mistakes.

Release of Retention Money

At the end of the defects liability period contractor must submit a notice to the owner / operator
who is obliged to inspect the works within the period specified in order to determine whether any
defects are present. If any defects are identified, the owner / operator is obliged to provide the
contractor with a defects list, which have arisen during the defects liability period and which the
contractor must rectify in order to achieve final completion of the works.
With these, the contractor’s liabilities and obligations in relation to a subcontractor’s defects
comes to an end and ………..any remaining portion of the subcontractor’s defects period is
agreed and assumed by the employer
Certificate of final completion constitutes conclusive evidence as to the sufficiency of the works
and that the contractors obligations have been fulfilled other than latent defects.
Conflicts

Conflicts on the construction site are a common occurrence. Disputes and disagreements are
going to arise when you have multiple parties such as general contractors, owners, architects,
subcontractors working together to complete a project. These stakeholders have different opin-
ions and interpretations on how things are supposed to be done. Those differing opinions often
lead to conflicts.

Disputes in construction frequently result in protracted negotiations, broken contracts, contract

revisions, design changes and even litigation.

-Poor contract administration:, meaning the employer, contractor or subcontractor fails to un-
derstand and/or comply with contractual obligations
-Errors and omission in design: which means projects are out of compliance, fail to meet speci-
fications or just don’t match stakeholder expectations
-Double meaning in specifications:, meaning specs were not clear in the first place
-Sloppy quality standards: that fail to catch and correct mistakes on a reasonable timeline
-Lack of communication: between owners, investors, contractors, subcontractors and laborers

Ways to Resolve Disputes Quickly and Avoid Litigation

1. Acknowledge the conflict

The conflict has to be acknowledged before it can be managed and resolved. The tendency is
for people to ignore the first signs of conflict, perhaps as it seems trivial, or is difficult to differenti-
ate from the normal, healthy debate that teams can thrive on. If you are concerned about the
conflict in your team, discuss it with other members. Once the team recognizes the issue, it can
start the process of resolution.

2. Act fast
When problems arise, it’s important to start the resolution process sooner rather than later. The
longer you wait, the more expensive and time consuming conflicts become.
Plus, each day that passes is more time for each party to cement their point of view and be-
come more intractable. As soon as you recognize a problem, you should call a meeting, talk to
the parties involved, review contracts for details, just do something.

3. Get to the core of the issue

Disputes in construction are often unclear at first look. At times it can seem like a “he said” “she
said” ordeal. Nonetheless, construction disputes hardly arise out of nothing. Alternatively, it may
seem like a cut- and-dry case of so-and-so’s fault, when really it isn’t. First, find out why there is
a disagreement, then make sure both parties “agree” on at least the core issue before moving
forward with a solution.

4. Get parties to listen to one another

Throughout the process, mediate to ensure both parties listen to one another so that they can
take that greater understanding forward into the future. Be firm about interruptions; everyone
must hear the other out. No one party should dictate a resolution; rather, everyone should get a
say. This builds trust and helps to avoid a redux in future.

5. Don’t allow parties to play the blame game

When conflicts arise, it’s not always a matter of one party being right and the other one being
wrong. Sometimes the best solution is somewhere in the middle and you may have to give a
little to get a little.
Construction is all about cooperation and collaboration. Taking the “my way or the highway” ap-
proach is a quick way to kill a good working relationship and will hurt your business in the long run
6. Keep conflicts on a professional level
This is admittedly hard to do sometimes, especially when issues hit at the core of professional re-
sponsibility or personal character. Still, don’t let teams get too heated. Avoid any personal issues
and conflicts by always bringing it back to work. Should a member involved in the conflict bring
the conversation to a personal place, ask them to move on or even step away until they cool
down for a period of time.

7. Consider a compromise or collaborate to problem solve

There are two effective strategies when it comes to resolving disputes in construction: compro-
mise and problem solve. The first means parties give up or give in until they meet in the middle,
while the second means parties work together to find an alternative solution. While there’s no one
right away, determine which will bring the quickest and cleanest end to the conflict.

8. Be clear in your communications

Poor communication on the jobsite often leads to conflicts. Make sure that expectations are
clearly communicated to everyone on the project. Keeping everyone on the same page and
up to date with any changes or alterations being made to the project or schedule.

9. Resolve it with the team

Everyone involved must agree to cooperate in to resolve the conflict. This means putting the
team first, and may involve setting aside your opinion or ideas for the time being. The people
involved need to talk about the issue and discuss their strong feelings

10. View litigation as the last resort

Make sure you know if you have a dispute resolution clause in your contract. Always follow the
right process determined in your contract before doing anything rash

Resolving conflicts doesn’t always result in a win-win situation for all involved. It’s important that
once a resolution has been decided upon, everyone involved gets an explanation and is clear
on what is expected moving forward. They might not always agree with the decision, but provid-
ing a reasonable explanation following up will go a long way in accepting the decision.
Institutionalized Conflict Avoidance
1. Build Teamwork
Teamwork is not only essential for a successful project, but it’s also critical to avoid disputes in
construction.

2. Use Advanced Software

Cutting-edge software, such as that which enables Building Information Modelling (BIM) substan-
tially improves the process from the beginning, allowing everyone to provide input earlier on and
providing better visualization. This results in better outcomes, less rework and fewer disputes.

3. Engage in Formal Conflict Resolution Training

If conflicts appear to be an issue constantly, maybe it’s time to invest conflict resolution training.
This puts a formalized approach to conflicts and educates workers on how they can better han-
dle themselves in the that you don’t always have to come up with a resolution approach spot.

4. Set Quality Standards

Standard procedures, processes, workflows, machines and equipment devices ensure teams are
working from the same platform, so there is less concern over quality. With better quality control,
there’s less likely to be issues down the road.

5. Invest in Third-Party Reviews

A third-party reviewer is someone who is not involved in any part of the design, procurement,
fabrication, construction or installation process. They can be included either to consult, inspect or
even look over conflicts, should they arise. A third party involvement establishes a middle ground
is examining the quality of construction so things can be fairly judged with little dispute over the
decision.

Arbitration

Arbitration is a process in which a dispute is submitted to an impartial outsider who makes a de-
cision which is usually binding on both the parties
A procedure in which a dispute is submitted, by agreement of the parties, to one or more arbi-
trators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a
private dispute resolution procedure instead of going to court.

The Basics:
❑ The arbitrator enforces his own point of view on the contending parties and the opinions of the
participants are not given any predominance.
❑ Arbitration is a judicial process
❑ The award of the arbitrator is binding and rests on equity and justice, i.e., there is no scope for
compromise
Duties of Arbitrator:
❑ To administer oath to the parties and witness appearing
❑ To act judicially and impartially
❑ To put necessary interrogatories to any party to the dispute
❑ To determine by and to whom the costs of reference and the award shall be paid
❑ To award interest
❑ To fix amount, mode and time of payment

Advantages of Arbitration:

1. Fairness
There is an element of fairness that prevails in the arbitration process from the very inception. The
parties have a say in the selection of arbitrators, the parties are heard individually in an arbitration
proceeding and even more importantly, the very establishment of the process of arbitration is on
the basis of the fact that the parties decide to settle their disputes amicably.

2. Preserves time
The process of arbitration preserves time loss of not only the parties but also saves the time of the
court. Most of the civil cases take a lot of time to be resolved by the courts. Often a generation
lapses before the completion of the arbitration process. The emergence of the processes of al-
ternative dispute resolution had been to reduce the time of the adjudication process. In addition
to it, there is a requirement to resolve commercial disputes in the fastest way possible.

3. Cost effective
The time saved In the process of arbitration also saves the money involved in the process. Com-
pared to adjudication the costs involved in the arbitration is minimal. The quality of it being cost
effective is one of the reasons that the parties prefer using arbitration as a means to resolve their
disputes

4. Confidentiality
Another factor leading to the popularity of the process is the importance given to the confiden-
tial information involved in the process. During the term of the process, it is kept in mind that the
confidentiality of the parties is not tampered with. The recent amendment to the Arbitration and
Conciliation Act in the year 2019 in India makes the parties in the arbitration duty-bound to keep
the utmost confidentiality of the process.

5. Binding
The decision made at the end of the arbitration process draws a sense of culmination because
of several factors such as the agreement between the parties, the inclusion of legality, the non-
appealable conditions of the arbitral award, etc.
Therefore arbitration is preferred over most of the other forms of ADR because it provides a sense
of surety. Furthermore, the arbitral awards are enforceable which makes arbitration a binding
process.
STATUTORY CONSIDERATIONS IN ARCHITECTURE

Need for a Building Code of Practice

Building codes are a series of ordinances enacted by a state or local governmental entity, establishing min
mum requirements that must be met in the construction and maintenance of buildings.

This is an introduction to various building codes in professional practice emphasizing the importance of
codes and regulations to protect public health, safety and welfare and to ensure compliance with the local
authority.

PURPOSE OF CODES

 Ensure public health and safety throughout a building.

 Most have come into play “after the fact” as a learning
experience from a major tragedy.
 They are primarily concerned with Construction requirements
 Hazardous materials or equipment used in the building
 75% of all codes and standards deal with fire
 Energy conservation
 Accessibility

What is building code?

A building code is a document containing standardized requirement for the

design & construction of most types of building.
Codes regulate building construction & building use in order to protect the
health, safety & welfare of the occupant.
Codes express all aspects of construction including structural integrity, fire
resistance, safe exists, lighting, electrical, energy conservation, plumbing,
sanitary facilities, ventilation, seismic design & correct use of construction
materials.
Building codes classify standard by use & apply different standards to each
classification. For example, schools & office buildings are in separate
occupancy category with different performance requirement.

The government establishes requirements and standards to protect people from unsafe living and working
conditions which resulted in a recommendation that a NATIONAL BUILDING CODE be prepared to unify
the building regulations throughout the country.

The codes includes various aspect for regulation on design & construction:

For Planning Building/Development work

For Structural Design
For Constructional aspects
For Building Services (HVAC, electrical, Acoustics, lifts etc.)
Plumbing Services (Water supply, Sewerage, Drainage, waste
management)
Landscaping, signs and outdoor display structures
What is National Building Code?

The National Building Code of India (NBC), (a comprehensive building Code), is a national instrument pro-
viding guidelines for regulating the building construction activities across the
country.
It serves as a Model Code for adoption by all agencies involved in building construction works be they Public
Works Departments, other government construction departments, local bodies or private construction agen-
cies.

The Code mainly contains administrative regulations, development control rules and general building re-
quirements; fire safety requirements; stipulations regarding materials, structural design and construction
(including safety); and building and plumbing services.
The National Building Code was first published in 1970 at the instance of Planning Commission and then
revised in 1983. Thereafter three major amendments were issued, two in 1987 and the third in 1997.

History & Overview :

The Bureau of Indian Standards was established with the objective of harmonious development of standard-
ization activity in India.
This Bureau, Under the Bureau of Indian Standards Act, 1986, established Indian Standards, by a process of
consultation involving consumers, manufacturers, Government and regulatory bodies, technologists, scien-
tists and testing laboratories through duly constituted committees.

The first version of the NATIONAL BUILDING CODE was published in 1970. Since the publication in 1970
version of the NATIONAL BUILDING CODE a large number of comments and useful suggestions for modi-
fications and additions to different parts and sections of the code were received.

OVERVIEW of NATIONAL BUILDING CODE OF INDIA 2016

Schedule (referred to under Article 243W) added by the Constitution (74th Amendment) Act, 1992 w.e.f
01.06.1993),
1. Urban planning including town planning.
2. Regulation of land use and construction of buildings
3. Planning for economic and social development
4. Roads and bridges
5. Water supply for domestic, industrial and commercial purposes.
6. Public health , sanitation conservancy and solid waste
7. Fire services
8. Urban forestry, protection of the environment and promotion of ecological aspects.
9. Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
10. Slum improvement and upgradation
11. Urban poverty alleviation.
12. Provision of urban amenities and facilities such as parks, gardens, playgrounds.
13. Promotion of cultural, educational and aesthetic aspects.
14. Burials and burial grounds; cremations, cremation grounds; and electric crematoriums.
15. Cattle ponds; prevention of cruelty to animals.
16. Vital statistics including registration of births and deaths.
17. Public amenities including street lighting, parking lots, bus stops and public conveniences.
18. Regulation of slaughter houses and tanneries.
AUTHORITIES HAVING JURISDICTION

1) Municipal Corporation
2) Municipality
3) Notified Area Committee
4) Town Area Committee
5) Cantonment Board
6) Township
7) Port Trust
8) Special Purpose Agency like:
▪ Town improvement trusts.
▪ Urban development authorities.
▪ Water supply and sewerage boards.
▪ Housing boards.
▪ Pollution control boards.
▪ Electricity supply boards.
▪ City transport boards.

INSTRUMENTS FOR BUILDING REGULATION

Town and Country Planning Act/ Development Act

Master Plan, Zonal Plans and Layout Plans
Municipality/Municipal Corporation Act
Building Bye Laws

AUTHORITIES FOR ADDITIONAL CLEARANCES THAT MAY BE REQUIRED

Salient Features of NBC 2016

PROFESSIONAL PRACTICE II: NATIONAL BUILDING CODE Salient Features of NBC 2016

Substantial improvements over previous editions incorporated,particularly for

Ensuring structurally safe and disaster resistant buildings
Accessibility of buildings and built environment for persons with disabilities and the elderly
Fire safety of modern complex and high rise buildings
Use of new/innovative building materials and technologies
Ensuring speedier construction through prefab technology
Installation of modern plumbing and building services
Ensuring IT enabled buildings
Sustainability and conducive outdoor built environment
Management of constructed building assets and facilities

•Expected to be extensively used by,

the local bodies for framing and revamping the existing local building byelaws
the Govt and private construction agencies in their construction activities
the building professionals like architects, engineers, structural engineers, town planners, building services
engineers and consultants in the design of building and built environment
building material suppliers and technology providers
research institutions for their research purposes
faculty and students of academic institutions for imparting technical education to architectural and engi-
neering students by using the Code as part of their curriculum
Salient Features of NBC 2016

PROFESSIONAL PRACTICE II: NATIONAL BUILDING CODE Salient Features of NBC 2016

Substantial improvements over previous editions incorporated,particularly for

Ensuring structurally safe and disaster resistant buildings
Accessibility of buildings and built environment for persons with disabilities and the elderly
Fire safety of modern complex and high rise buildings
Use of new/innovative building materials and technologies
Ensuring speedier construction through prefab technology
Installation of modern plumbing and building services
Ensuring IT enabled buildings
Sustainability and conducive outdoor built environment
Management of constructed building assets and facilities

•Expected to be extensively used by,

the local bodies for framing and revamping the existing local building byelaws
the Govt and private construction agencies in their construction activities
the building professionals like architects, engineers, structural engineers, town planners, building services
engineers and consultants in the design of building and built environment
building material suppliers and technology providers
research institutions for their research purposes
faculty and students of academic institutions for imparting technical education to architectural and engi-
neering students by using the Code as part of their curriculum

PART 1 : DEFINITIONS

It lists the terms appearing in all the parts/sections of the National Building Code of India. However, some
common definitions are reproduced in this part also.

PART 2: ADMINISTRATION

It covers the administrative aspects of the Code, such as:

❖Applicability of the Code
❖Organization of building department for enforcement of the Code
❖Procedure for obtaining development and building permits
❖Responsibility of the owner and all professionals involved in the
planning, design and construction of the building.

PART 3: DEVELOPMENT CONTROL RULES AND GENERAL BUILDING REQUIREMENTS

It covers :
The development control rules and general building requirements for proper planning and design at the
layout and building level to
ensure health safety, public safety and desired quality of life.
Provides provisions for covered area, plinth area, FAR, amenities, land use classification, height/ size of
rooms, kitchens etc.

PART 4 : FIRE AND LIFE SAFETY

It covers the requirements for fire prevention, life safety in relation to fire, and fire protection of buildings.
The code specifies planning and construction features and fire protection features for all occupancies that are
necessary to minimize danger to life and property.
PART 5: BUILDING MATERIALS

It covers the requirements of building materials and components, and criteria for accepting new or alterna-
tive building materials and components.

PART 6 : STRUCTURAL DESIGN

This part through its seven sections provides for:

❖structural adequacy of buildings to deal with both internal and
external environment, and
❖provide guidance to engineers/ structural engineers for varied
usage of material/ technology types for building design.

PART 7 : CONSTRUCTIONAL PRACTICES AND SAFETY

It covers the constructional practices in buildings;

storage, stacking and handling of materials and
safety of personnel during construction operations for all
elements of a building and demolition of buildings.

PART 8 : BUILDING SERVICES (Mechanical & Electrical)

This part through its five elaborate sections on utilities provides

detailed guidance to concerned professionals / utility engineers for
meeting necessary functional requirements in buildings.

PART 9 : BUILDING SERVICES (Sanitary & Plumbing)

This part through its two sections gives detailed guidance to

concerned professionals/ plumbing engineers with regard to
plumbing and other related requirements in buildings.

PART 10 : Landscape Planning and Design Signs and Outdoor Display

It covers requirements of landscape planning and design with the

view to promoting quality of outdoor built environment and
protection of land and its resources.
The requirements with regard to public safety, structural safety and
fire safety of all signs (advertisements) and outdoor display
structures including the overall aesthetical aspects of imposition of
signs and outdoor display structures in the outdoor built
environment.
MULTI DISCIPLINARY TEAM OF BUILDING PROFESSIONALS

Each team to be multi disciplinary team of need based professionals, depending upon type, size, magnitude,
complexity in the project; such as:

Part 0 Integrated Approach

Updated provisions for association of need based professionals and agencies to
ensure proper discharge of responsibilities for accomplishment of building project.
Inclusion of professionals such as geotechnical engineers , ICT engineer
sustainability specialist a ccessibility specialist and ot her subject specialist(s).
Further reinforcement of the various considerations to be taken care of by the
design teams, project/construction management team, and operation and
maintenance team, considering the present day requirements and expectations
from buildings and built environment.

STRUCTURED APPROACH
Stages in Building Permit Process
1. Submission of application by owner along with
-Building plan
-Service plan
-Specifications
-Structural design sufficiency certificate by engineer/
structural engineer and owner
-Certificate of engagement of builder/constructor (
-Certificate of supervision by architect/engineer

2. Verification of building plans and specifications by the Authority with

respect to building byelaws
3. Sanction by the Authority including approvals from statutory authorities
-Two stage approval for vulnerable buildings
4. Construction activity
5.Step wise inspection by local authority
6. Completion of construction activity
7. Notice of completion by owner along with
-Certification for execution of work as per structural safety
requirements by engineer/ structural engineer
8.Inspection by Authority
9.Issue of Occupancy Permit by Authority.
PART 2 :ADMINISTRATION

It covers the administrative aspects of the Code, such as applicability of the Code, organization of building
department for enforcement of the Code, procedure for obtaining development and building permits, and
responsibility of the owner and all professionals involved in the planning, design and construction of the
building.

Organization of Building Department for enforcement of the Code

Qualifications & competence of registered professionals (Annex A)
Responsibilities of owner and professionals involved
Twelve Standard Forms
Form for first application to develop, erect, re erect or to make alteration in any place in a building
Form for certificate for structural design sufficiency
Form for engagement of builder/constructor
Form for supervision
Form for sanction or refusal of development/building permit
Form for notice for commencement
Form for certificate for sub surface investigation
Form for certificate for completed structural design work as per structural safety requirements
Form for certificate for supervision of execution of work
Form for certificate for completed work by builder/constructor
Form for completion certificate
Form for occupancy permit

Major Modifications in Part 2 Administration

Ease of doing business through detailed and updated provision for streamlining
the approval process in respect of different agencies in the form of an
integrated approval process through single window approach , thereby
avoiding separate clearances from various authorities.
Updated provision on computerization of approval process
Reinforcement of the provisions on the mechanism of ensuring certification of
structural safety of buildings by the competent professional and peer review of
design of buildings.
Fixation of responsibility for geotechnical engineer and contractor , where
involved in a building construction project.

PART 3 : DEVELOPMENT CONTROL RULES AND GENERAL BUILDING REQUIREMENTS

This Part deals with the development control rules and general building requirements to ensure health and
safety of the public.

-Land use classification and uses permitted

-Cluster planning approach and provisions for housing
-Inclusion of detailed town planning norms for various amenities
such as:
Telephone, telegraph, postal
and banking facilities
Educational facilities
Sports activity
Health care facilities
Shopping
Socio cultural facilities
Religious
Distribution services
Electrical substation
Police, Civil Defence & Home Guards
Transport
Fire services
Cremation/Burial Ground, etc
-Parking norms for metro & mega cities
-Special requirements for low income housing in urban areas
-Special requirements for rural habitat planning
-Special requirements for development planning in hilly areas
-Provision for buildings & facilities for persons with disabilities
and the elderly
modification of land use classification
Modification of planning norms for various amenities provided in a city/town
and also inclusion of provisions for new amenities.
Barrier free built environment : Comprehensive updated provisions for
accessibility in buildings and built environment for persons with disabilities
and the elderly by adopting universal design principles
Provisions on new planning and development norms, such as, Transferable
Development Rights TDR and Accommodation reservation AR
Foreword of this part also refers to Transit Oriented Development ( TOD)

Updated requirements for fire tender movement keeping in view

availability of more equipped fire tenders of higher capacity.
Provisions for underground or multi storeyed parking as also
mechanized parking of vehicles.
Updated provisions on basements keeping in view the latest
developments.
New provisions for solar energy utilization
Updation of special requirements for low income housing and for
development planning in hilly areas
Incorporation of requirements for upcoming buildings on podium for
ensuring fire and life safety in such buildings.

PART 4 : FIRE AND LIFE SAFETY

Approach towards Fire and Life safety

FIRE PREVENTION
LIFE SAFETY
FIRE PROTECTION
LIFE SAFETY

 Exit requirements
 Occupant load
 Egress components
 Exit capacities and
arrangement
 No. of exits
 Max. travel distance
 Doorways, corridors &
passageways
 Staircases pressurization
 Ramps
 Compartmentation
 Smoke control
 Illumination/escape lighting
 Fire detection & alarm
system
 Fire fighting shaft

FIRE PROTECTION

Fire Fighting Installation

Fire extinguisher
First aid hose reel
Wet riser
Down comers
Yard hydrant
Automatic sprinkler system
Manually operated electric fire
alarm system
Automatic detection and alarm
system
Underground static water
storage tank
Terrace tank over respective
tower terrace
Pump near underground tank
Pump at terrace tank level
Dry riser (for hilly areas or
industrial areas)
Fire protection requirements for
high rise buildings
Fire drill & evacuation procedures
Part 4 : Fire and Life Safety

FIRE PREVENTION
◆ Table 1 on fire resistance ratings of structural and non-structural elements has been updated.
◆ Detailed provisions on fire separating walls, fire separating floors and fire partitions
◆ Separate comprehensive clause on electrical power supply distribution for fire and life safety
systems
◆ Detailed provisions on air conditioning systems towards safety and smoke control integration
◆ Glass façade requirements have been detailed towards fire protection and
smoke exhaust aspects
◆ Comprehensive clause on Fire Command Centre (FCC)
Erstwhile Table 23 on minimum requirements for fire fighting installations
(now Table 7 ) comprehensively
Detailed provisions have been included on fire water storage , fire pump
room , sprinkler system and various alternative fire suppression systems .
Detailed provisions on the concept of progressive evacuation in case of
hospital buildings.
Provisions on refuge area have been updated including for D 6 occupancy
and introduced for apartment buildings of height 60 m and above
Provisions specific to atrium , commercial kitchen and car parking
facilities
Provisions specific to Metro Stations and Metro Railways

LIFE SAFETY
◆ Components of means of egress - exit access, exit and exit discharge
◆ Table on capacity factors - modified based on the aspect of width per person approach used
globally
◆ Requirement for displaying the occupancy load for assembly buildings and call centres.
◆ Well integrated provisions on firefighting shaft to access the floor on fire and also allows
egress/evacuation of the occupants with simultaneous use of refuge area.
◆ Updated provisions on compartmentation with fire barrier and its passive fire safety
requirements for respective occupancies.

CATEGORIES OF MATERIALS

 ALUMINIUM AND OTHER LIGHT  GYPSUM BUILDING MATERIALS

METALS AND THEIR ALLOYS  LIGNOCELLULOSIC BUILDING MATERIALS
 BITUMEN AND TAR PRODUCTS (including timber, bamboo and Products thereof)
 BUILDER’S HARDWARES  PAINTS AND ALLIED PRODUCTS
 BUILDING CHEMICALS  POLYMERS, PLASTIC AND GEOSYNTHETICS/
 BUILDING LIMES GEOTEXTILES
 CEMENT AND CONCRETE (including concrete  SANITARY APPLIANCES AND WATER FITTINGS
reinforcement)  STEEL
 CEMEMT MATRIX PRODUCTS  STONES
 CLAY PRODUCTS FOR BUILDING  STRUCTURAL SECTIONS
 CONDUCTORS AND CABLES
 DOORS AND WINDOWS  THERMAL INSULATION MATERIALS
 ELECTRICAL WIRING FITTINGS AND ACCESSORIES  THREADED FASTENERS AND RIVETS
 FILLERS, STOPPERS AND PUTTIES  UNIT WEIGHTS OF BUILDING MATERIALS
 FLOOR COVERING, ROOFING AND OTHER FINISHES WATERPROOFING AND DAMP PROOFING
 GLASS MATERIALS
 WELDING ELECTRODES AND WIRES
 WIRE ROPES AND WIRE PRODUCTS
NEW / ALTERNATIVE BUILDING MATERIALS
◼ Suitability for End Application
◼ Strength Properties
◼ Durability
◼ Fire Resistivity
◼ Thermal Properties
◼ Acoustical Properties
◼ Ease of Working/Handling
◼ Energy Conservation/Environment Sustainability

Part 5 : Building Materials

Updated provisions for ensuring utilization of number of
new/alternative building materials to provide for innovation in the
field of building construction.
Examples of some potential new/alternative materials
New clause giving broad aspects relating to sustainable materials
Categories reclassified for ease of reference.
2016 Wind Map

2016 Seismic
Zoning Map
Part 6/Sec 3B Bamboo
 Updated design provisions for
• bamboo trusses, and
• bamboo foundations.
 Inclusion of provisions relating to use of
• bamboo as reinforcement in concrete,
• bamboo based materials/panel products as walling/roofing material, and

• reconstituted wood from de-structured boo.

Part 6/Sec 4 Masonry

Inclusion of provisions relating to

•reinforced masonry ,
•confined masonry building construction, and
•masonry wall construction using rat trap bond

New provisions related to durability criteria for selection of masonry

mortars.
Stabilized soil blocks have been included as masonry unit.
Number of storeys of masonry construction has been limited to 4, in line
with the seismic design standards.

New Chapter Part 6/Sec 8 : Glass and Glazing

This new chapter on structural use of glass covers

•different types of glass, their requirements and associated glazing materials;
•selection and application of glass in buildings,
•provision for glazing w.r.t . their effect on energy , visual (light) and solar
environments in the building;
•selection of glass in buildings, subject to wind loading , seismic loading and
special considerations for fire rated glass and related materials;
•provisions for the selection and manifestation of glass in buildings, subject to
safety with respect to human impact of the occupants; and
•provisions relating to selection, design, fabrication and installation of glazing
systems
Part 8/Sec1 Lighting and Natural Ventilation

Updated provisions relating to efficient artificial light source and

luminaires and photocontrols for artificial lights.
Inclusion of modern lighting techniques such as LED and induction
light vis à vis their energy consumption.
Reference to SP 41:1987 for obtaining coefficient utilization for
determination of luminous flux has been included.
Enabling provisions for lighting shelves and light pipes have been
included.
The provisions related to thermal comfort clause have been
elaborated including therein indices such as effective temperature,
adaptive thermal comfort along with elaborations on tropical
summer index.
Design guidelines for natural ventilation have been elaborated with
illustrations.
Provisions related to determination of rate of ventilation
particularly on combined effect of wind and thermal actions have
been elaborated.
Provision on colour rendering has been included in line with that in
SP 72 : 2010 ‘National Lighting Code 2010’.

Part 8/Sec 3 Air conditioning, Heating and Mechanical Ventilation

Modified provisions on refrigerants for air conditioning to include new

refrigerants with zero ODP and ultra low GWP including natural
refrigerants.
Inclusion of other available options of HVAC such as, VRF system, inverter
technology, district cooling system, and hybrid central plant using chilled
beams, radiant floor components, geo thermal cooling and heating, etc.
Thrust on envelope optimization using energy modelling , day lighting
simulation , solar shade analysis and wind modelling software to optimize
the air conditioning load.
Indoor design conditions for comfort HVAC now based on adaptive comfort
conditions for the specific climatic zone.
Updated provisions on HVAC requirements for data centres and healthcare
facilities and inclusion of such requirements for underground metro stations
Incorporation of refrigeration for cold stores
Inclusion of most efficient strategies for winter heating, using reverse cycle
operation , solar heating systems, electric heat pump, and ground source heat
pump.
Coverage of modern system of mechanical ventilation for industries,
commercial kitchen, underground car parking, and for open tunnels
connecting underground metro stations.
Updated provisions on building automation system to include the latest
practices for web based monitoring and control of performance parameters.

Part 8/Sec 4 Acoustics, Sound Insulation and Noise Control

Updated provisions on sound insulation and noise control measures in

buildings.
New clause on construction noise
The provision relating to noise control in open plan schools has been
deleted, owing to the changed scenario.
Reverberation times of classrooms and assembly halls in schools have
been modified.
Requirement of insulation (Rw ) for walls or partitions between rooms in
hospitals have been modified.
Recommended maximum reverberation time for very large offices and
for canteens have been modified.

Part 8/Sec 5A Lifts

Inclusion of requirements for high speed lifts and lifts for tall
buildings including elaboration of lifts for fire fighting and
emergency evacuation and inclusion of considerations for machine
room less (MRL)
Updation of preliminary design provisions for lifts to cover the
requirements for various building functions.
Inclusion of provisions for seismic resistance aspects in lifts.

Part 8/Sec 5B Escalators and Moving Walks

This new chapter on escalators and moving walks covers all aspects
relating to their
•Planning;
•Installation;
•Operation, maintenance; and
•Inspection for ensuring safe movement of people with satisfactory performance.

PART 9 : PLUMBING SERVICES

Section 1 Water Supply

Section 2 Drainage and Sanitation
Section 3 Solid Waste Management New
Section 4 Gas Supply
Part 9/Sec 1 Water Supply

Water supply requirements for buildings based on estimated

occupancy in the chosen type of building.
Updation of water requirements for non residential buildings with
separate domestic and flushing requirements
Updation of number of various water supply fixture unit and
probable simultaneous demand , with demand values up to 10,000
fixture units.
Updated provisions for water supply distribution systems in multi
storeyed buildings with illustrations therefor.
Inclusion of provisions relating to swimming pools .

Part 9/Sec 2 Drainage and Sanitation

Various additional requirements relating to layout of drainage and

sanitation system have been added.
Inclusion of provisions on venting system for high rise buildings .
Updation of number of various drainage fixture unit .
Revised sizes of rainwater pipes for efficient roof drainage.
Updated provisions on rainwater harvesting and artificial ground water recharge.

Part 9/Sec 3 Solid Waste Management

This new chapter on solid waste management covers

•various solid waste management systems,
•assessment of per capita solid waste quantities, and
•treatment of solid waste within the building, building complexes
and their built environments.

References to latest applicable statutory Rules and Regulations

have been included.
An informative Annex relating to municipal solid waste generation
has been included, covering quantity, type, description and sources
of solid waste generation.
An Annex relating to treatment of food waste has also been
included.

PART 10 : LANDSCAPE DEVELOPMENT, SIGNS AND OUTDOOR

DISPLAY STRUCTURES

Section 1 Landscape Planning, Design and

Development
Section 2 Signs and Outdoor Display Structures
Part 10/Sec 1 and 2

Updated provisions on landscape planning, design and development and

signs and outdoor display structures.
New clause on landscape site planning requirements.
A new clause relating to roof landscape has been added.
New provisions related to materials and finishes plan have been included
as part of the landscape development documents required for statutory
approvals.
Part 10/Sec 2 has been linked with Part 3 of the Code for ensuring
appropriate controls of signs as applicable for the purpose of accessibility
for persons with disabilities

Part 11 : Approach to Sustainability

Updation of the new Part 11 ‘Approach to Sustainability’ which was added to NBC 2005 through its Amend-
ment No. 1 for covering guidelines for making buildings and built environment energy
efficient and environmentally compatible.
Covers all aspects of energy conservation such as electrical energy conservation, water conservation, use of
low embodied energy materials, renewable energy utilization, etc.
The chapter is intended to help in meeting relevant sustainable development goals (SDG) laid down by the
United Nations .
CONCLUSION

Codes set the minimum criteria. You can follow stricter

requirements at any time.
They are not always perfectly clear. When two requirements
are similar, go with the strictest requirement
Not all of them will apply to every design situation.
Work with the code official to resolve discrepancies
EASEMENTS

What it means?

An easement is a part of your land that can be used without your consent, such as by utility companies.
An easement is an interest in a real estate property or parcel of land. If you grant someone an easement, you
are giving them the right to use your property in some way, without giving them actual ownership over it.

Right of easement is basically a form of PRIVILEGE the integral part of which is to do an act or prevent cer-
tain acts on some other land for enjoyment of one’s own land.

The concept of easement has been defined under SECTION 4 of The Indian Easements Act, 1882.

Dominant & Servient Heritage

The land for the beneficial enjoyment of

which the right exists is called the
DOMINANT HERITAGE , and the owner or
occupier thereof the dominant owner; the
land on which the liability is imposed is
called the SERVIENT HERITAGE , and the
owner or occupier thereof the servient owner

What it means?
Various easement rights

Natural rights with restriction

Customary rights
Easement of access to air
Easement of right of way
Easement of right to discharge rainwater
Easement of right to sunlight
Easement regarding pollution of air
Easement relating to water
Easement of support

Disturbance of easement
Any type of interference for peaceful enjoyment of easement rights acquired by the dominant
owner is called disturbance

Role of Architect in protecting interest of client

Building Byelaws

What is building Bye Laws

It is the strict rules which must be obeyed by everyone. If everyone makes buildings without obeying any
rules then there will be problems of:

1. Irregular and narrow roads

2. Frequent traffic
3. Problem of parking
4. Health problems due to pollution
5. Poor light and ventilation
6. No proper planning of gardens, play grounds, etc.
7. Problems regarding services like water supply, drainage, telephone, gas, electricity etc.
8. Noise nuisance in education, hospitals, court etc.

PurposE of Bye Laws

1. Provide suitable areas for selected activities

2. Avoid problem of traffic
3. Develop town in systematic manner
4. Provide safety against diseases
5. Provide well lighted and ventilated houses
6. Provide safety against diseases
7. Assure basic services like water supply,
8. drainage, electricity, gas, telephone lines, etc

Who prepares the bye laws?

❖ Considering the local situations and the actual requirements
of local people the local authority prepares certain rules for the buildings and for the
development of the town.
❖ These rules are submitted to the government for approval.
❖ This rules after the approval of the government becomes
bye laws.
Characteristic of Bye Laws

❖The rules must be specific, clear and the language of rules

should be grammatically correct.
❖Terms used should be defined clearly so that there must be one and only one meaning of the term.
❖Due to some special conditions and requirements, some bye- laws differ from the bye-laws of other
places.
❖Even though in a single town Bye-law of single town is not applicable at the other area.
❖It can be modified by government if required.

Zones

❖ Town/City is divided into different areas is called zones

❖ Location of a zone depends upon the suitability for specific activities
❖ Local authority decides number and types of zones
considering the necessity of town.
Following are the some of zones:
Residential: Residential buildings, gardens, play grounds, schools,
offices are allowed. Industries, hospitals, wholesale markets are
not allowed
Commercial: Cinema, retail shops, town halls, restaurants, bank,
offices, shopping centers are allowed. Hospitals and Industries are
not allowed
Industrial Ordinary: Light industries, Workshops, printing press,
small factories are allowed. Heavy, Obnoxious and hazardous
industries are not allowed
Hazardous Industrial: All types of industries allowed Residential
buildings are totally not allowed
Educational: School, collages, sports complex allowed. Other than
education activities are not allowed

Some Key terms of the Building Bye Laws

Built Up Area- “Area of all floors above or below the ground”

Details to be included:
Basement
Building Structure
Ramps under roof
Covered services area
Covered swimming pool

Details not to be included:

Any facilities not having roof

Carpet Area
V
Net usable area within building
To calculate carpet area deduct following areas from plinth area:
❖ Lift well
❖ Thickness of wall
❖ Vertical shafts for services
❖ Any cut-out in floor plate
Floor Space Index (FSI) or Floor Area Ratio (FAR)

Real Estate Bill

Establishment of Real Estate Regulatory Authority (RERA) in 2016

It is a Centralized Regulatory Body which will have powers equal to Quasi Courts “ and will regulated all
matters related to real estate development & growth in India.

Each & Every real estate project, developers & real Estate agents in India has been “ Compulsorily “ have to
be registered as per well drafted procedures with RERA.
Developers or Agents will not able to offer any real estate project or products to customers & investors with-
out registering themselves & the said project or product

Exemption from Registration with RERA

Real Estate Project which already had got Completion Certificate

(CC)
❖ Real Estate project covering area Below 500 sq. mtrs or Having Apartment less than 8. ( However
State Government can make changes & further reduce area or no. of units in their special rights )
❖ Redevelopment , repairs or Renovation project where there is no new allotment of an apartment or
plot as the case may be and do not involve marketing or advertisement.

Penalty for Non Registration:

Real Estate Developers, projects & Agents will be charged Penalty in tune of amount equal to 10% of project
cost or imprisonment of 3 years or Both depending upon case to case basis.

Functions & Duties of Promoter under the Bill

❖Compulsory Declaration of Entire project details ( Either

Apartment , Townships, or Plotting ) such as plans, promoters history, completed projects, On Going
projects, Technical & Commercial Details of project on offer for each and every project while
registering projects with RERA
❖Not to accept any deposit’s or advances from Customers before
entering into ‘ Agreement for Sale’
❖No Advertisement or Publishing of Marketing Material or issuance of Prospectus or Electronic Media
Marketing of real estate project without registration of the project with RERA
Arrangement for Insurance of Land / Property Title True & Fair declaration about title of land has to be
made, if Land is under JV or any other arrangement where Land title includes any body other than Promot-
ers had to be clearly mentioned along with there respective NOC’s . After all these declarations promoters
also have to arrange for Insurance of Land / Property Title with authorized Insurer / Competent Authority.
❖Compulsorily sale on “ Carpet Area “ Basis only. – Total Abolition of
Built Up , Super Built , Flower Bed concepts. Formulas & Definition of
Carpet Area Calculation clearly mentioned under the Bill.
❖Adherence to Sanctioned Plan & Project Specification ( either Apartments or Plotting schemes ) –
Promoters are not to make any change in the sanctioned plan. The change can only be made if it is
related to Safety & Security of the project & occupants with permission from RERA or Central
Appellant Authority. If the change request found to be an commercial beneficial to promoter,
promoter will face heavy fines or imprisonment
❖Obligation of Timely Delivery of the Project – Promoter has to stick to
project delivery schedule. Failure of which will make customers to receive penalty in form of
amount equal to same percentage which customer may have to pay for delayed payment to promoters
❖Liability for Structural Defects & Workmanship – Promoters are liable for any structural defects
or defects arise out of poor workmanship for the period of first five year from the date of
delivery of the project to customer .
❖Arrangement for ESCROW Account : Promoters have to open Special
ESCROW account with certified banks for each and every project.
Promoter has to deposit 70% of amount’s collected from customer in form of advances, EMI’s or
installments in the said ESCROW A/c . The said ESCROW a/c has to be used for the specified projects
only.
❖No Diversion of Funds : Promoters will not able to divert funds of one project to another ( It is
the amount deposited in ESCROW A/c) in any given circumstances. However Promoters are free to use
30% share of amount collected from customers which is not deposited in ESCROW A/c at the own
discretion.
❖No change of Title :- Promoters are not entitled to change of title either
of Land or Project without permission from RERA & Consent of existing
Allotters
❖Restricted Third Party Transfer or Ownership Transfer : Promoters are not entitled to sale or
change the ownership of the project to another promoters unless and until consent from existing
allotters and approval of the same from RERA
❖Promoters are responsible for obtaining OC’s & Maintenance till possession to Society : Promoters
are entitles to get Occupation Certificate & are also responsible for all expenses including
maintenance till he/she transfers project to Society of Allottee’s

Important Highlights of Real Estate Bill, 2016

Establishment of Central Advisory Council (CAC)

Real Estate ( Development & Regulation ) Bill, 2016 makes arrangement for establishment of Central Adviso-
ry Council. CAC will act a mentor of Real Estate Industry & will be responsible for smooth operation in Real
Estate Industry in India.

Establishment of Real Estate Appellate Tribunal (REAT)

The Bill arranges for Real Estate Appellate Tribunal which will act as Tribunal for any dispute under the said
bill. This Tribunal will have power of “ Quasi Court”

Offence & Penalties for Promoters:

1. Failure to Register ( Sale without registration ) :- Fine up to 10%

of Project Cost
2. Failure to compile with orders passed by RERA :- Imprisonment of 3 Year and / Or Fine up to 10
% of Project Cost
3. False Declaration about Project / Promoters :- Fine up to 5% of
project cost
Offence & Penalties for Real Estate Agent

1. Failure to Register :- Fine up to 5% of Unit cost sold and / or

Imprisonment of 1 year
2. Selling of Unregistered Project :- Fine up to 5% of Unit cost sold
and / or Imprisonment of 1 year

Offence & Penalties for Allottee’s / Customer

1. Failure to compile with orders passed by RERA :- Fine up to 5%

of Unit cost sold and / or Imprisonment of 1 year
2. Deliberate Purchase in Unregistered Project :- Same as above
6. Award based on an agreement
Arbitration is often a result of an absolute agreement between the parties as no win-win situation
can occur until the parties are not in agreement with each other.

7. Informal process
In the process of arbitration, the selection of the arbitrator is based on the choice of the parties.
The setting during the time of the procedure is informal and is suitable for discussion. Unlike, the
courtroom where a level of formality has to be maintained arbitration allows the friendly ex-
change of words without much mannerisms to be followed.

8. Prevention of hostility
Since the process of arbitration includes within its scope discussion and solving the issue at hand
amicably, therefore hostility is prevented. Unlike, the process of the court, where there are open
argumentation and hurling of accusations, arbitration incites amicable discussion.

10. Control
The parties in a dispute have greater control over the process of arbitration than that of any other
dispute resolution process this is because of the fact that the from the starting the parties are in a
position of control. The parties are directly involved in the decision- making process through their
consent to the agreement.

Disadvantages of Arbitration:

1) There is a small scope of appeal in the arbitration award. The very fact that there is less scope
of appeal in awards is one of the most glaring disadvantages of arbitration. whenever there is a
problem with the award, there would be no scope of appealor correction.
2) There are varied guidelines of arbitration and it is very difficult to choose among those guide-
lines. Similarly, there are a number of institutions providing the facility of arbitration, it becomes
very difficult to choose among the organizations.
3) In some countries, there are different statutes for domestic and international arbitration. This
makes it difficult to ascertain the applicability of the laws relating to international arbitration.
4) If arbitration is binding, both sides give up their right to an appeal that means there is no real
opportunity to correct what one party may feel is an erroneous arbitration decision
5) If the matter is complicated but the amount of money involved is modest, then the arbitrator’s
fee may make arbitration uneconomical, that means there is no real opportunity to correct what
one party may feel is an erroneous arbitration decision

1. Arbitration is consensual
Arbitration can only take place if both parties have agreed to it. In the case of future disputes aris-
ing under a contract, the parties insert an arbitration clause in the relevant contract. An existing
dispute can be referred to arbitration by means of a submission agreement between the parties.
In contrast to mediation, a party cannot unilaterally withdraw from arbitration.

2. Arbitration Agreement
Arbitration agreement means an agreement by the parties to submit to arbitration all or certain
disputes which have arisen or which may arise between them in respect of a defined legal rela-
tionship, whether contractual or not.
It may be in the form of an arbitration clause in a contract or in the form of a separate agree-
ment
PROPERTY VALUE

What it means?

Valuation is a technique of determining the fair price of property of any

structure. Normally valuation is done for getting present price of property

Classification of Value : Market Value :

Market value refers to the current or most recently-quoted price for a
market-traded security. It can also refer to the most probable price an asset,
like a house, would fetch on the open market
Fair Market Value :
In its simplest sense, fair market value (FMV) is the price that an asset
would sell for on the open market. Fair market value has come to represent
the price of an asset under the following usual set of conditions: prospective
buyers and sellers are reasonably knowledgeable about the asset,
behaving in their own best interest, free of undue pressure to trade, and
given a reasonable time period for completing the transaction
Guideline Value :
Guideline Value is the Value of a Property fixed by the Government.
Property buyers can not register below the Guideline Value
Book Value :
An asset's book value is equal to its carrying value on the balance sheet,
and companies calculate it netting the asset against its accumulated
depreciation.
Salvage Value :
Salvage value is the estimated resale value of an asset at the end of its
useful life. It is subtracted from the cost of a fixed asset to determine the
amount of the asset cost that will be depreciated
Scrap Value :
Scrap value is the worth of a physical asset's individual components when
the asset itself is deemed no longer usable
Insurance Value :
The maximum amount an insurance company will pay if an insured asset is
deemed a total loss. The asset's insured value can either be its replacement
cost or its market value, depending on the insurance policy.
Potential Value :
It is an inherent value which may go on increasing due to passage of time or
some other factor which will fetch more return
Distress Value :
Distressed value of a property is that being sold by the lender where the
borrower is in distress and no longer able to continue with the burden of the
mortgage payments and/or tax bill on the property
Speculative Value :
When the property is purchased so as to sell the same at a profit after some
duration, the price paid is known as Speculative Value
Monopoly Value :
In a developed Colony, the value of the plot goes on increasing when number
of the available plots goes on decreasing. The
fancy price demanded by the Vendor for the remaining plots is known as
Monopoly Value
Replacement Value :
The term replacement cost or replacement value refers to the amount that an
entity would have to pay to replace an asset at the present time, according to
its current worth
Depreciation Value :
Depreciation of property value is the decrease or dip in the
selling value of your home. This is calculated as the 'factor' product of the
total value of the property with the age of construction
Auction Value :
When a property sells at auction value prices, it means the price the item is
being auctioned for. Generally, this amount is higher than market price, which
means that the seller gets to make a profit.
Revisionary Value :
The value of property at the expiration of a certain time period. For example,
it is the full value of the land obtainable after the specified period is over (i.e.,
after the expiry of the life of building.
Liquidation Value :
Liquidation value is the likely price of an asset when it is allowed insufficient
time to sell on the open market, thereby reducing its exposure to potential
buyers. Liquidation value is typically lower than fair market value
Purpose of Valuation:
The main purpose of valuation are as follows:
1. Buying or Selling Property
When it is required to buy or sell a property, its valuation is required.
2. Taxation
To assess the tax of a property, its valuation is required. Taxes may be
municipal tax, wealth tax, Property tax etc, and all the taxes are fixed on the
valuation of the property.
3. Rent Function
In order to determine the rent of a property, valuation is required. Rent is
usually fixed on the certain percentage of the amount of valuation which is 6%
to 10% of valuation.
4. Security of loans or Mortgage
When loans are taken against the security of the property, its valuation is
required.
5. Compulsory acquisition
Whenever a property is acquired by law; compensation is paid to the owner.
To determine the amount of compensation, valuation of the property is
required.
Depreciation:
Depreciation is the process used to deduct the costs of buying and improving
a rental property. Rather than taking one large deduction in the year you buy
(or improve) the property, depreciation distributes the deduction across the
useful life of the property.
A property depreciates due to the following:
1. Wear & tear due to constant use
2. Physical depreciation due to age
3. Obsolescence; more efficient products are serving the purpose 4. Structural
deterioration of buildings
Methods to calculate depreciation:
1. Straight line method
2. Sinking fund method
3. Reducing balance method

1. Straight line method

The straight-line method of depreciation

assumes a constant rate of depreciation. It
calculates how much a specific asset
depreciates in one year, and then depreciates
the asset by that amount every year after that.

How to calculate straight-line depreciation

You need three numbers to calculate straight-line depreciation for a fixed asset:
1. The total purchase price of the asset (the cost of the asset including
shipping, taxes, installation fees, etc.)

2. Its scrap or salvage value of the asset (the price you think you can sell it
for at the end of its useful life)

3. The useful life of the asset (how many years you think it will last)

To calculate the straight-line depreciation rate for your asset, simply subtract
the salvage value from the asset cost to get total depreciation, then divide
that by useful life to get annual depreciation:
annual depreciation = (purchase price - salvage value) / useful life
2. Sinking fund method
Sinking fund method is a method of calculating depreciation for an asset in
which apart from calculating depreciation, it also keeps aside a fund for
replacing the asset at the end of its useful life.
This method is used when the assets that need to be replaced are of high cost.
To avoid paying for the replacement of assets at a time, companies maintain a
sinking fund that will help them recover the cost of the asset while also
accounting for its depreciation.
How Sinking Fund functions:
Sinking fund functions as an account where the company stores funds in
anticipation that it will become dysfunctional after a certain point of time.
Instead of expenditure that will arise at a time which can cause a significant
impact on company’s profit, it is better that such an expense can be anticipated
and the funds for replacement of such an asset can be made wisely.
3. Reducing Balance method
The reducing balance method is an accelerated depreciation system of
recording larger depreciation expenses during the earlier years of an asset's
useful life and recording smaller depreciation expenses during the asset's later
years.
The reducing balance method of depreciation is most useful when an asset has
higher utility or productivity at the start of its useful life, as it results in
depreciation expenses that reflect the assets' productivity, functionality, and
capacity to generate revenue.
The reducing-balance method, also known as the declining- balance method, in
the initial years of an asset’s “service.” As with the straight-line method, you
apply the same depreciation rate each year to what’s called the “adjusted
basis” of your property. But unlike straight-line, with the reducing-balance
method, you’ll be depreciating a different amount each year as the balance
diminishes.
Computing Valuation:
Methods Valuation:
1. Land & building method
2. Composite rate method
3. Development potential method 4. Rent capitalization method
5. Profit capitalization method
6. Market-Rent-Profit method

1. Land & building method

By this method, the value of the land and the value of Building are assessed
separately and added to get the present value of the property. Depreciation is
calculated either by straight line method or applying Linear method. This
method is useful in all normal property valuation where tenants do not have
any statutory protection and can be evicted when required.
2. Composite rate method
The rate per unit area of the building in an apartment system along with
proportionate share of undivided land. This method is followed in valuation of
residential flats & commercial complexes.
Locality, land value & amenities provided by the developer and specifications
adopted are to be considered.
3. Development potential method
In this method, the potentiality of the land for immediate future development
is considered to estimate the present market fair value. This method of
valuation is adopted to value large extents of vacant land in the outskirts of
cities and towns.
Objective of this method is to advise a builder or developer at what price he
can buy large undeveloped piece of land.
4. Rent capitalization method
This is the most appropriate method to determine value of tenanted
properties, where the tenants enjoy protection under rent control laws against
eviction and enhancement of rents.
In such cases the property value can be split into two parts. One part relates
to right of occupation by the tenants, which is not a legally saleable part. The
other part relates to ownership of encumbered property which includes the
right to receive rents remaining with the landlord.
5. Profit capitalization method
This method is invariably applicable to single commercial properties such as
cinema theatres, hotels, marriage halls and other properties, used in business
ventures.
This method deals with working out gross profits and expenses in the form of
outgoings. The net profit thus obtained, is capitalized to assess the value of the
property.
6. Market-Rent-Profit method
It is applied primarily with regard to service property which are not frequently
exchanged in the market or do not generate revenue by themselves.
The logic behind this approach is that a prudent investor would pay no more for
property than cost of producing a substitute property with same utility.
REAL ESTATE LAW
Land law is also known as the law of real property. It relates to the
acquisition, protection and conflicts of people's rights, legal and equitable, in
land
A government can restrict what a person does with their property. Laws that
restrict the use of
real property are called zoning laws. For example, a government can restrict
the use of a property to residential, commercial or industrial uses.

Transfer of Property Act, 1882:

This Act is a Central act and provides general principles of movable and
immovable property, such as sale, exchange, mortgage, lease and gift of
property, part performance and lis pendens.
TENURE OF PROPERTY:
Tenure of a property relates to Land Laws and Land ownership
TYPES OF TENURE:
1. Free hold property 2. Lease hold property
1. Free hold property
Freehold property can be defined as any estate which is "free from hold" of
any entity besides the owner. Hence, the owner of such an estate enjoys free
ownership for perpetuity and can use the land for any purposes however in
accordance with the local regulations.
2. Lease hold property
In a Leasehold Property, the asset is typically property such as a building or space in a
building. The lessee contracts with the lessor for the right to use the property in
exchange for a series of scheduled payments over the term of the lease. Renting space
in an office building for a company's use or renting a building to be used for a retail
store are two examples of a commercial leasehold arrangement.
Tenure:
In common law systems, land tenure is the legal regime in which land is owned
by an individual, who is said to "hold" the land. It determines who can use land,
for how long and under what conditions.
Lessor & Lessee:
A lessor is the owner of an asset that is leased, or rented, to another party,
known as the lessee. Lessors and lessees enter into a binding contract,
known as the lease agreement, that spells out the terms of their arrangement.
Reversion:
It indicates the right to reposess the property at the end of lease period.
Premium:
It is the lumpsum consideration paid for transfer of rights in a property
Life Lease:
A life lease can be for the life of the tenant, for a specific term (e.g. 50 years),
and some have no specified termination date. Under
a life lease, a tenant pays an entrance fee for a rental unit. The tenant also
pays rent each month to cover maintenance and other expenses. On the death
of the lessee the property reverts to lessor.
Covenant:
It is an agreement or a promise, creating an obligation that a particular property
has a covenant on the title whereby one party, (the purchaser) pledges or
agrees to abide by a certain rule to the other (usually the vendor) or between
the lessor & lessee
Occupation Lease:
The whole property including land and building is given on lease with
consideration of periodic payment. Duration of lease is short 5,7,14,21 years.
Building Lease:
A long-term lease allowing for building work or improvements on existing
buildings. Building leases are granted in situations where the tenant wants to
invest money in improving the land or property in a way that has been agreed
with the ground lessor so that both parties may benefit from the investment.
What Is The Difference Between Rent and Lease?
Rent refers to the regular payment of tenancy, which expires after the duration
of a month and at the end of which it is automatically renewed. The specification
regarding the number of days the renewal is, understandably a month unless
the landlord specifies changes in the rental agreement.
Lease, on the other hand, refers to the conveying of land or property to another
for a specified term or period of time. Once agreed to make periodic payments
as suitable to the landlord, (six months or more) the lessee need not worry
about changing any clauses until such a time arrives when the lease needs to
renewed.
LABOUR LAW
In building and other construction works more than eight million workers are
engaged throughout the country.
The scenario of construction laborers in India:
Informal / unorganised sector covers 92% of the total work force in India. About
50% of the construction industrial workers belonged to informal / unorganised
sector.
Workers in construction industry are hired as and when required and are
retrenched on completion of work. Workers remain idle till they find new work at
construction site.
In the absence of adequate statutory provisions to get the requisite information
regarding the number and nature of accidents was quite difficult and due to this
to fix responsibility or to take corrective measures was not an easy job.
Although the provisions of certain Central Acts were applicable to the building
and other construction workers yet a need was felt for a comprehensive Central
Legislation for regulating the safety, welfare and other conditions of service

The Employer & Construction Labourer:

Construction Employer means any person, company, contractor, subcontractor,
or entity located or engaged in construction work on the Reservation including
new construction, remodeling, repair, or maintenance of structures,
infrastructure, equipment and support facilities
Skilled laborer refers to workers who possess abilities, training and safety-
minded expertise within their industry. They bring proven experience and
knowledge to jobsites and construction businesses.
An unskilled laborer refers to a worker who lacks technical training, on the job
training and expertise within a trade. These individuals are, of course, typically
safety trained on jobsites. Though unskilled labor jobs are important, they
represent a part of the construction workforce with limited skills. The demand for
unskilled laborers has decreased due automation and technology that shakes
up the workforce by performing some low-skill jobs more efficiently than
humans.
Construction labour law:
1. The Building and Other Construction Workers (Regulation of Employment
and Conditions of Service) Act, 1996, (BOCW Act or BOCWA).

2. The Building and Other Construction Workers’ Welfare Cess Act (Cess
Act).

Understanding these laws and what they mean

The act ensures the safety and welfare of these workers and their families.
Benefits include pension, education and maternity assistance, loans for
purchase of tools, and accident and medical expenses.
Under the Workmen’s Compensation Act, 1923, section 3 of the Act provides for
the liability of an employer to pay compensation to the employee which
includes:
If personal injury is caused to a workman by accident, arising out of and in the
course of his employment, the employer shall be liable to pay compensation
under the provisions of Chapter II of the Act
The employer shall not be liable to compensate for the following:
• In respect of any injury which does not result in the total or partial
disablement of the workman.

• In respect of an accident which is directly attributable to –

• The workman was under the influence of drinks or drugs, or

• The wilful disobedience of the workman to the orders for the

purpose of securing his safety, or

• The willful removal or disregard by the workman of any safety

guard or devices for the purpose of securing the safety of workmen.

All such statutes stand for the good running of a business organization as well
as for building up healthy relation among the employer and employee as well.
Hence, both of them must be aware of their rights and responsibilities and not to
violate the said statutes for their personal gains.
Registration of establishments
The employer of an establishment to which this Act applies and to which this Act
may be applicable at any time is required to make an application in the
prescribed form with prescribed fee for the registration of his establishment
within a period of sixty days of the commencement of the Act or within sixty
days from the date on which this Act becomes applicable to the establishment.
In case, any change occurs in the ownership or management or other
prescribed particulars in respect of such establishment, the particulars
regarding such change shall be intimated by the employer to the registering
officer within thirty days of such change in such form as may be prescribed.
Revocation of registration
The registration of any establishment has been obtained by misrepresentation
or suppression of any material fact or that the provisions of this Act are not
being complied with in relation to any work carried on by such establishment, or
that for any other reason the registration has become useless or ineffective and,
therefore, requires to be revoked, he may, after giving an opportunity to the
employer of the establishment to be heard, revoke the registration.
Wages of construction laborers in India:
There are two methods of making wage payments to labourers:
• Time rate system
• Piece rate system

1. Time rate system

Under this method of wage payment, the workers are paid the wages on the
basis of time. In this system of wage payment, the workers are paid the wages
on the basis of time as, per hour, per day, per week, per fortnight or per month
etc. This system does not consider the production of the employees during this
time.
2. Piece rate system
Under this system of wage payment, the workers are paid the wages on the
basis of quantity and quality of work performed by them. Under this system, the
rates of wages are determined according to quantity and quality of work and the
workers are paid according to these rates.
The laws governing contract labor
Contract Labour Act:
This act adheres to state-based rules and varies from state to state with respect
to the threshold headcount for its applicability. In Karnataka, for instance, if the
principal employer employs 20 indirect employees, he is to ensure that a
registered certificate is procured under the Contract Labour Act. This is the
basic premise of the Act. It also mentions benefits, such as drinking water,
proper urinals, etc., and the maintenance of the register under the Contract
Labour Act. In case you do not meet the requisite number of employees, all
records and registers under the Minimum Wages Act/Payment of Wages Act are
to be maintained.
PF & ESI Act:
Social security benefits such as provident fund must be provided to all
“employees/workers who are engaged on contractual / casual / daily wages
basis” since there is no distinction between a person employed on permanent,
temporary, contractual, or casual basis
All employees of a covered unit, whose monthly incomes (excluding overtime,
bonus, leave encashment) does not exceed Rs. 21,000 per month, are eligible
to avail benefits under the Scheme. Employees earning daily average wage up
to Rs. 176 are exempted from ESIC contribution.
HEALTH AND SAFETY AT SITE

Not only does construction site safety decrease the risk of injuries to the public,
but it also reduces the risk of work-related injuries and accidents.
Nearly a quarter of all work-related fatalities occur in the construction industry,
and many more injuries that do not lead to death occur as well.
The Building and other Construction workers (Regulation of Employment
and conditions of Service) Act, 1996
The Building and other Construction workers (Regulation of Employment
and conditions of Service) Central Rules, 1998
Salient features of the Safety & Health Provisions
Objectives
❖To regulate the employment & conditions of Service
❖To provide for Safety, Health & Welfare measures
❖To give the Building & Construction workers Social Security
Applicability
Every establishment which employs or had employed ten or more workers
directly or through a Contractor / Subcontractor (undertaking to produce a given
result or supplying building workers for any work of the establishment, excluding
supply of goods or articles of manufacture)
Responsibilities of Employer
❖It shall be the duty of every employer to comply with requirements of rules
❖Employer shall not permit an employee to do anything not in accordance with
the generally accepted principles of standard safe operating practices
connected with building and other construction work
❖Employer will not allow lifting appliances, lifting gear, lifting device, transport
equipment, vehicles or any other device or equipment to be used by the building
workers which does not comply with provision of rules
❖Employer shall maintain the latrines, urinals, washing facilities and canteen in
a clean and hygienic condition
SAFETY AND HEALTH
GENERAL PROVISIONS

Excessive noise, vibration etc.

An employer shall ensure that adequate
measures are taken to protect building
workers against the harmful effects of
excessive noise or vibration

Fire protection
❖An employer shall ensure that site is provided with fire extinguishing
equipment sufficient to extinguish any probable fire
❖Number of trained persons required to operate the fire extinguishing
equipment
❖Fire extinguishers shall be properly maintained and inspected at regular
intervals of not more than one year
❖Every launch or boat or other craft used for transport of building workers and
the cabin of every lifting appliances including mobile crane, adequate number of
portable fire-extinguishing equipment of suitable type shall be provided
Emergency Action Plan
❖Where more than 500 building workers are employed emergency action plan
to handle the emergencies is prepared and submitted for the approval of the
Director General
Dust, gases, fumes etc.
❖An employer shall prevent concentration of dust, gases or fumes by providing
suitable means to control their concentration within the permissible limit so that
they may not cause injury or pose health hazard to building worker
Corrosive substances
❖Corrosive substances, including alkalis and acids, shall be stored in such a
manner that it does not endanger the building worker
❖Suitable protective equipment shall be provided during handling or use of
such substances
❖In the case of spillage of such substances on the building worker, immediate
remedial measures shall be taken by the employer

Eye protection
❖Suitable personal protective equipment for the protection of eyes shall be
provided
❖Building worker engaged in operations like welding, cutting, chipping, grinding
or similar operations which may cause hazard to his eyes shall use such eye
protection

Head protection and other protective apparel

❖Every building worker required to pass through or work within the areas where
there is hazard of his being struck by falling objects or materials shall be
provided with Safety helmets in accordance with national standards
❖Every building worker required to work in water or in wet concrete or in other
similar work, shall be provided with suitable water-proof boots
Electrical Hazards
❖Before commencement of work, adequate measures shall be taken to prevent
any worker from coming into physical contact with any electrical equipment or
apparatus, machines or live electrical circuit which may cause electrical hazard
during the course of his employment
❖Suitable warning signs shall be displayed and maintained at conspicuous
places in Hindi and in a local language understood by the majority of the
building workers
• Where exact location of underground power line is not known, the building
worker using jack hammer, crow bars or other hand-tools, shall be provided
with insulated protective gloves and foot wear in accordance with national
standards
• All electrical appliances and current carrying equipment shall be adequately
earthed
Vehicular Traffic
• All vehicles used at construction site shall comply with the requirements of
Motor Vehicles Act, 1988 (59 of 1988) and the rules made thereunder
• The driver of a vehicle of any class or description shall hold a valid driving
licence under the Motor Vehicles Act, 1988 (59 of 1988)
• All temporary electrical installations are provided with earth- leakage circuit
breakers

LIFTING APPLIANCES AND GEAR

Test and periodical examination of lifting appliances
❖All lifting appliances shall be tested and examined by a competent person
before being taken into use for the first time or after it has undergone any
alteration or repairs liable to affect its strength or stability or after erection on
construction site and also once at least in every one year
Competent person
❖“Competent person” means a person so approved by Government, who
belongs to a testing establishment in India, possessing adequate qualification,
experience and skill for the purpose of testing, examination or annealing and
certification of lifting appliances, lifting gears, wire ropes or pressure plant or
equipment
Identification and marking of safe working load
❖Every lifting appliance and loose gear is clearly marked for its safe working
load and identification by stamping or other suitable means
❖Safe working load shall be marked in plain figures or letters upon the sling or
upon a tablet or ring of durable material attached securely
Operation of lifting appliances
❖Every crane driver or lifting operator posses adequate skill and training in the
operation of the particular lifting appliance
❖No person under eighteen years of age shall be in control of any lifting
appliance
❖Operation of lifting appliances is governed by signals; in conformity with
relevant national standards
Register of periodical test, examination and certificate
• Employer shall ensure that register in specified form shall be maintained and
particulars of such test and examination of lifting appliances shall be entered
in register
• Certificate in prescribed form shall be obtained from competent person for
winches, derricks, cranes, hoists, loose gear, wire ropes

SAFETY ORGANISATION
Safety committee
• Establishments, wherein 500 or more building workers are ordinarily
employed, safety committee shall be constituted by employer represented by
equal number of representative of employer and building worker
• Safety committee shall meet at regular intervals at least once in a month and
shall be chaired by person having overall control over affairs of site
Safety officer
❖Establishment wherein 500 or more building worker are employed, employer
shall appoint safety officer
❖Safety officer may be assisted by suitable and adequate staff

Reporting of accident
❖Notice of any accident on the construction site which either causes loss of life
or disables a building worker from working for a period of forty eight hours or
more immediately following the accident, shall forthwith be sent to
➢Regional Labour commissioner (Central) board with which the building worker
involved in accident was registered as a beneficiary
➢Director general and next in kin or other relative
❖Notice of accident at construction site which causes loss of life or disables
such building worker from work for more than ten days following the accident
shall also be sent to:
➢Office incharge of nearest police station ➢district magistrate
MEDICAL FACILITIES
Medical examination of building workers
• Building worker who is employed for a work involving risk or hazards as the
Director General considers appropriate shall be medically examined
• Every operator of a crane, winch or other lifting appliances, transport
equipment or vehicle shall be medically examined and again periodically
• No building worker shall be charged for medical examination Record of such
medical examination shall be maintained
Ambulance Van
An ambulance van shall be provided or an arrangement shall be made with a
nearby hospital for providing such ambulance van for transportation of serious
cases of accident or sickness of the building workers to the hospital promptly
and such van is maintained in good repair and is equipped with standard
facilities
First-aid
• Sufficient number of first-aid boxes or cupboards shall be provided and
maintained
• The box should be distinctly marked “First-aid” and shall be equipped with
specified articles
• Trained first-aider shall be engaged at site

WELFARE
Latrines and urinal accommodation
❖Adequate number of Latrines and urinals to be provided at construction site
❖Conveniently situated and accessible to building workers at all times
❖Adequately lighted and shall be maintained in clean and sanitary condition
❖Those connected with flush sewage system shall comply with requirement of
public health authorities
Canteens
❖In every place wherein not less than 250 workers are employed, the employer
shall provide adequate canteen in specified manner
❖Canteen shall consist of dining hall with sufficient furniture, kitchen, store-
room, pantry and washing places
❖Sufficiently lighted at all times when any person has access to it
❖Premises shall be maintained in clean and sanitary condition
Drinking Water
Employer shall ensure sufficient supply of wholesome drinking water
All such points shall be legibly marked “Drinking Water” in a language
understood by a majority of the persons
No such point shall be situated within six metres of any washing place, urinal or
latrine

PENLTIES
Penalty for contravention of provisions regarding safety measures
• Whoever contravenes the provisions of any rules shall be punishable with
imprisonment for a term which may extend to three months, or with fine which
may extend to two thousand rupees, or with both
• If any person who has been convicted of any offence punishable is again
guilty of an offence, he shall be punishable on a subsequent conviction with
imprisonment upto six months or with fine upto two thousand rupees or with
both