TOPIC :- Management

Management is how businesses organize and direct workflow, operations, and

employees to meet company goals. The primary goal of management is to create
an environment that lets employees work efficiently and productively. A solid
organizational structure serves as a guide for workers and establishes the tone and
focus of their work. This discipline involves the planning and execution of
construction projects while managing the project operations. Students are
exposed to management principles in addition to technical knowledge necessary
for successful project completion.
Professional practice -
Professional practice is where a student is required to extend knowledge and
skills within a practical environment. It is often required to be undertaken as a
part of their university studies.

Rights and responsibilities of owner –

The owner usually warrants the adequacy of the plans and specifications on
many projects and, therefore, bears the responsibility for any defects or
deficiencies in them. Such defects can exist in many forms, but tend to fall into
the two categories: product and time.
Engineer –
Civil engineering graduates who pursue a career in engineering management
can expect to find a wide range of opportunities in various sectors such as
construction, infrastructure, transportation, and environmental engineering.

Contractor –
A civil contractor is a professional who provides construction services for both
public and private sector clients. Civil contractors typically work on
infrastructure projects such as roads, bridges, dams, and canals.
 Types of Contracts –

1. Item rate contract

• This is also known as Unit price contract.

• In this contract, contractor quotes his rates for per unit of each item of
construction.
• Bill of quantities is prepared as accurately as possible.
• Certain reasonable variations in the quantities being accepted by both the
parties.
• Most of the public works are carried out under this form of the contract.

2. Percentage rate contract

• Department draws up the schedule of items according to the description of items

sanctioned in the estimate with the quantities, units, rates and amounts shown
therein.
• Department fix up the rates of different items in tender.
• Contractors are offered to carry out the work as per the rates shown in bill of
quantities of tender or percentage above or below the rates indicated in the bill.
• There is no possibility of tampering or manipulating with the rates by
contractor.
• As contractors are not required to quote their own rates for an individual items,
the overwriting and erasing of rates can be avoided.

3. All in contract

• Its a rare form of contract but considered first because, the owner ceases to be
the promoter and delegates a large firm or consortium/association to perform
both, design and construction.
• This type of contract is suitable for some exceptional works and is rarely
adopted for normal works.
• The work most suited for this type of contract are industrial facilities where
firms are in market with their patented processing plants.

4. Labour contract

• When the owner is in the position to purchase the required materials himself,
then he invites tenders only for the labour work.
• The contractor put up their rates for the labour per unit execution of each item.
• These rates includes the use of contractor’s plant and equipment, all necessary
false-work, contractor’s supervision and contractor’s profit.
• The overall responsibility of the work is of the contractor.
• Owner has to see that the necessary materials are brought on site as per
required.
• The Owner has also to keep watch that there no wastage of materials.
• Usually, the work done in this contract is of superior quality since materials of
better quality are used and there is no mischief in the proportion of mortar,
concrete, etc.
 5. Lump – Sum contract

• It is the oldest type of contract and is still popular in some countries.

• Contractors are required to quote a fixed sum for execution of a work in all
respects (according to drawing, design and specifications supplied to them with
the tender within the required time).
• Schedule Of Rates (SOR) is also provided to the contractors to workout the cost
of extra items.
• No payment can be recovered by the contractor until the whole is completed.
• There is no intermediate payment is made to the contractor.

6. Cost Plus Percentage Rate Contract

• In this type of contract, the contractor is paid the actual cost of the work plus an
agreed percentage in addition to allow for profit.
• An agreement is prepared with all the conditions of contract in advance.
• Contractor arranges material and labour at his cost and keeps proper accounting.
• Contractor is paid by the owner the whole cost together with some agreed
percentage.
• This kind of contracts are generally adopted when when the conditions are such
that the labour and material costs are liable to fluctuate.
• It has a merit that the contracts can quickly be drawn up and agreed and also
work of an urgent nature put in hand and completed without any delay.

7. Cost Plus Fixed Fee Contract

• The contractor is paid by the owner with an agreed fixed lump sum amount over
and above the actual cost of the work.
• Fee doesn’t vary with the cost of the work as in case of cost plus percentage rate
contract.
 8. Cost plus fluctuating/sliding fee contract

• The contractor is paid the actual cost by the owner of contract plus an amount of
fee inversely variable according to the increase or decrease of estimated cost
agreed first by both the parties.
• Higher the actual cost, lower will be the value of fee.
• The contractor shall not try to increase the actual cost of the work as in case of
‘cost plus percentage rates’ or shall not be indifferent to in case of ‘cost plus
fixed fee contract’ because the interest of contractor is totally involved with
variations in the actual cost.
• The actual cost is thus lower and lower so both the owner and contractor will be
benefited.

9. Target Contract

• The contractor is paid on a cost plus percentage basis of work performed under
this contract, and in addition he receive a percentage plus or minus on saving of
excess effected against the agreed estimate of total cost.

10. Build-Operate-Transfer (BOT)

• The contractor undertakes the design, finance, construct, operate and maintain
the works for a concession in considerations of the exercise or to enjoy the
rights, powers, benefits, privilege, authorities and entitlements including the
amount receivable from the collection of charges levied on the beneficiaries
who use the work and in some cases annuity payment each year.
• For example, in case of a road or bridge, the contractor constructs the structure
and is entitled to collect toll from the road user for the concession period.
 11. Turn key contract

• It sometimes happens that the owner contemplating a construction project

desires to deal with only one party for all services, both engineering and
construction, in connection with the work.
• offers are invited from specialised contractors for all planning, design,
specifications, estimations, construction and supervision under one contract on
competitive basis.

12. Negotiated contract

• When work is awarded on contract by mutual negotiation between the parties

without call of tender.
• The parties selected being always reliable and financially sound, it ensures
uninterrupted work with less chance of dispute.

13. Sub-contract

• Its an agreement between two contractors (the sub contractor and the main
contractor), in which the sub contractor undertakes to carry out for the main
contractor a particular portion of the work which main contractor has
undertaken from the owner.
• The main contractor is responsible for the contract, product and payment of his
subcontractor.
• The owner’s claims for damages are to be made against the main contractor.
• No claims for damage can be done against the owner by the subcontractor.