MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION

(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Important Instructions to examiners:
1) The answers should be examined by key words and not as word-to-word as given in the
model answer scheme.
2) The model answer and the answer written by candidate may vary but the examiner may try to
assess the understanding level of the candidate.
3) The language errors such as grammatical, spelling errors should not be given more
Importance (Not applicable for subject English and Communication Skills.
4) While assessing figures, examiner may give credit for principal components indicated in the
figure. The figures drawn by candidate and model answer may vary. The examiner may give
credit for any equivalent figure drawn.
5) Credits may be given step wise for numerical problems. In some cases, the assumed
constant values may vary and there may be some difference in the candidate’s answers and
model answer.
6) In case of some questions credit may be given by judgement on part of examiner of relevant
answer based on candidate’s understanding.
7) For programming language papers, credit may be given to any other program based on
equivalent concept.
8) As per the policy decision of Maharashtra State Government, teaching in English/Marathi and
Bilingual (English + Marathi) medium is introduced at first year of AICTE diploma Programme
from academic year 2021-2022. Hence if the students in first year (first and second
semesters) write answers in Marathi or bilingual language (English +Marathi), the Examiner
shall consider the same and assess the answer based on matching of concepts with model
answer.

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.1 Attempt any FIVE of the following : (10)
a) State two object of contracts.
Ans. Object of contracts :
1. To execute the work by experienced persons. 1 2
2. To execute the work with most competitive rate. each
3. To do work as per specification. (any
4. To use latest machineries and techniques. two)
5. To have free hand for a supervisor to check the work done by
contractor without interference.
b) Define the term “Termination of Contracts”.
Ans. Termination of Contracts:
Termination of contract is regarded as a legal procedure to end a 2 2
contract before performance has been completed, with a reasonable
basis.
c) Define the term “Target Contract”.
Ans. Target Contract:
In this contract contractor is paid on the basis of actual cost of work 2 2
executed by him and agreed percentage of cost as his profit plus or

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.1 minus certain amount on the saving or excess against target cost.
d) State the necessity of tender.
Ans. Necessity of Tender:
1. To execute work as per specification and drawing. ½ 2
2. To complete the work within specified time. each
3. To supply materials and labours.
4. For transportation of materials.
e) State various account forms to be used in PWD for accounting.
Ans. The various account forms used in PWD :
1. Form 24: First and final bill.
2. Form 25: White – Running Account Bill A.
3. Form 26: White – Running Account Bill B. ½
4. Form 26: Yellow – Final Bill B. each 2
5. Form 27: White – Running Account Bill C. (any
6. Form 27: Yellow – Final Bill C. four)
7. Form 27 A: Running Account Bill D.
8. Form 27 B: Final Bill.
9. Measurement Book – Form No. 23.
10. Nominal Muster Roll – Form No. 21.
11. Imprest Cash – Form No. 2.
12. Cash Book – Form No. 7.
f) Define the term “Assessed Value”.
Ans. Assessed Value:
For the purpose of taxation, a property is assessed for its monetary 2 2
worth. This price is known as Assessed value.
g) Differentiate between Cost and Price.
Ans. Cost Price
It is the original cost of It is the amount of money paid 2 2
construction i.e. cost of to the seller by the purchaser of
labour and material. the property.

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.2 Attempt any THREE of the following: (12)
a) Draw organization structure of PWD. State functions of J.E.
Ans. Organization structure of PWD:

Government (PWD)

Secretary to Government 1

Chief Engineer

Superintending Superintending Superintending Superintending

Engineer(S.E) Engineer(S.E) Engineer(S.E) Engineer(S.E) 1

Circle-1 Circle-2 Circle-3 Circle-4

Executive Engineer

Assistant Executive Engineer

Sub Divisional Engineer(Assistant Engineer)

1 4
junior Engineer (Sectional officer)

Supervisors (Technical Assistant)

Skilled Workers Semiskilled Workers Unskilled Workers

Following are the functions of Junior Engineer (JE) :
1. To supervise the work in his charge.
2. Maintain attendance of daily work labours.
3. Taking measurement of all work in MB. ½

4. Prepares estimates for all types of works in his section. each

5. Preparation of bills – running and final bills for work in his (any

Charge. two)

6. Carry out field survey for proposed project.

7. Carry out half yearly check of all stores in his charge and
submit report to SDO.

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.2 b) Explain the term FIDIC contract.
Ans. FIDIC contract:
1. FIDIC standardizes contracts that are commonly used in the
global construction and engineering industry, primarily for
international construction projects, which have a higher value
and are authorised by many multilateral development banks.
2. FIDIC is well known for drafting standard forms of contract
(“FIDIC Model Contracts”) in the field of consulting
engineering industry worldwide and over the years, it has
consistently improved its contracts. 4 4
3. The main purpose of the FIDIC Model Contracts is to define
the contractual relationship between the parties and distribute
the risks fairly to the parties.
4. The FIDIC Model Contracts are drafted for a wide range of
projects. They are segregated by the colour given to the cover
of the document in which rules and regulations of the contracts
are mentioned.
c) Explain the use of Imprest cash and N.M.R.
Ans. Use of Imprest Cash:
1. In P.W.D individual officer are given a permanent advance of
Rs. 1000/- for the petty expenses and to make payment in 1
connection with government work. each
2. From this amount they can pay transport charges,
miscellaneous payment of materials .Accounting of these 4
works is known as imprest cash account.
Use of NMR:
1. It is used to mark the attendance of labour employed 1
departmentally. each
2. It can be used to make the payment of departmental labour. (any
3. To keep record of paid and unpaid wages. two)

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.2 d) State the different types of specification and explain any one type.
Ans. Following are the various types of specifications :
1. Brief specification.
2. Detailed specification.
2
3. Standard specification.
4. Manufacturer‟s specification.
1. Brief specification :
i. The general specifications used for estimating the
project are the brief specifications.
ii. General information for the quantities of materials, 4
nature and class of work is short and not with the
lengthy detailed specification. Note that brief
specification do not form the part of the contract
document.
iii. Though the information is short and not lengthy but the
general information should be known and understand.
OR
2. Detailed specification :
2
i. The specification in which detailed information of the each
(any
various quantities of materials, procedure of
one)
workmanship to be adopted, nature and class of work is
mentioned. Hence detailed specification form a part of
contract document.
ii. Detailed specification for a particular item specify the
following information :
a. Qualities of material.
b. Quantities of material and their proportions.
c. Method of doing work or procedure of work.
d. Test required on the constructional material or
on the finished items.
e. Type of equipments and machinery used.
f. Special tools and plants used.

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.2 d) In short, without the detailed specification for a particular item, the
Ans. tender documents and contract are incomplete and considered as
invalid.
OR
3. Standard specification:
i. Detailed specifications for various works are drawn up by an
engineering department and these specifications are printed
and used as a standard specification.
ii. Hence most of the items in works are made to standardized
specifications. Standard specification play a vital role that it
work as guide and also refer in the specification part of a
tender documents and thus avoids writing lengthy
specification.
iii. Note that whenever the standard specifications are accepted for
a particular work, then it should be observed carefully and
suitable modifications or necessary corrections are made
accordingly. Standard specifications must be periodically
revised so as to include some changes in techniques.
Specifications of items such as stone work, brickwork,
plastering, pointing, excavation, earthwork concreting etc.
becomes common in writing particulars of such items and
hence it is not required to write such common specification
again and again.
iv. Standard specifications are mostly referred because it saves the
time and there is no possibility of doing mistakes.
OR
4. Manufacturers specifications :
i. This type of specifications in which the properties of products
Such as strength, thickness, depth, elasticity, chemical
composition etc. are mentioned.
ii. Specifications of the products of the manufacturer like steel,
mild steel, tor steel, plain steel, cement, paints, valves etc. are

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.2 included under head of manufacturer‟s specification.
e) Describe the importance of specification in Civil Engineering
Work.
Ans. Following are the Importance of specification in Civil Engineering
Work:
1. The cost of a unit quantity of work is governed by its
specification.
1
2. Specification specifies method of doing work; thus specification 4
each
serves as a guide to the supervising staff.
(any
3. Contractor is paid only when the work is carried out according to
four)
the specification.
4. Any changes in specification changes the tendered rate.
5. Tender paper without specification is incomplete and invalid.

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.3 Attempt any THREE of the following: (12)
a) Explain the rate list method for carrying out work.
Ans. 1. This method is suitable for petty work costing 3000/ or below. As
the cost work is small the contracting firms are not interested in
carrying out work and advertisement in newspaper is not justified
for work of small magnitude.
2. For such petty work list of petty workers are kept in the office of
executive Engineer. When such work is to be executed the petty
workers are informed and asked to submit the rate list based on
approximate quantity of each item and specifications supplied to 4 4
them.
3. No of petty workers may be employed on one work at the same
time provided that the Cost of any individual work to be executed
does not exceed Rs. 3000/-.
4. The petty workers will quote rate and submit in sealed cover, the
lowest offer is accepted.
b) Explain term:-
i. Administrative Approval.
ii. Technical Sanction.
iii. Budget Provision.
iv. Expenditure Sanction.
Ans. i. Technical Sanction:
Technical sanction means the sanction of the detailed estimate,
design, rates and cost of work. It is sanctioned by competent
1
authority. The work is taken for the execution only after the
technical sanction. If the estimated amount exceed 10% of
administratively approved amount technical sanction is granted
only after obtaining revised administrative approval for work 4
technical sanction once given remains valid for 5 years.
ii. Administrative Approval:
For any work, it is necessary to take formal acceptance with
1
respect to cost and work is called as administrative approval. For

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q. 3 b) this department sends a proposal to government for taking up the
Ans. work. After considering all aspects like feasibility of project,
financial aspect, government accepts proposal is called
administrative approval.
iii. Budget Provision.
After the need of the project and its appraisal, a project report is
prepared in which materials, organizational setup and total cost
required for execution of project are mentions Then according to
5-year plan in the budget provision for such type of projects, and
finance is sanctioned after the administrative approval of the 1
project. The method adopted to have a proper and effective control
over the expenses and prod cost in an organization is called
budgeting. Budgeting helps in planning, controlling the various
activities. It also helps in preparing the programmes for
development and expansion of the project.
iv. Expenditure Sanction.
Expenditure sanction means concurrence of the government to the
expenditure proposed in case of various works of construction
initiated by government. Expenditure sanction is to be accorded by
ministry which ensures funds for the project work. Expenditure 1
sanction can be exceeded up to 10%, beyond which revised
sanction of expenditure sanction is to be taken. Expenditure
sanction is the allotment of money to meet the expenditure of
construction work initiated by the ministry of P.W.D. expenditure
sanction is accorded by finance ministry of state government.

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.3 c) State the requirement of valid contract and explain in brief.
Ans. Following are the requirement of valid contract:
1. Contract in writing: Contract should be in writing and should
be signed by both the parties i.e. owner and contractor.
2. Subject matter: The subject matter of agreement must be
legal and definite. It should be easy to understand not too
complex to understand and execute.
1
3. Can be enforced in court of law: All terms, conditions words
each
should be according to law. (any 4
4. Parties must be competent: The parties signing the contract four)
should be competent enough to carry out work.
5. Free consent of parties: Both parties must give their free
consent to do the work as per agreement contract.
6. Attested by witness: Contract should be attested by
responsible person or officer.
d) Define the following terms:-
i. Earnest Money.
ii. Validity period.
Ans. i. Earnest Money.
While submitting tender contractor has to deposit certain
amount about 1 to 2% of estimated cost with department. This 2
amount is termed as earnest money.
ii. Validity period. 4
It is a period within which the rates quoted by the contractor
are valid. Beyond this period the contractor either may agree 2
or he can refuse to accept the rates for executive the work. The
period starts after the tender is submitted.
Range-30 to 90 days.

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.4 Attempt any THREE of the following: (12)
a) Justify the importance of BOT contract on the basis of objective
and advantages.
Ans. Justification of importance of BOT contract on the basis of
objective and advantages:-
Objectives of B.O.T.
1. To develop infrastructures in an area when government does 1
not have sufficient funds for development of an area. each
2. To construct facilities like good roads, water supply schemes, (any
bridges, express highways in partnership with private sector. two)
3. To maintain roads, bridges, tunnels in good condition.
4. To provide facilities to the public at reasonable rates of toll
and taxes for the work completed on BOT basis. 4
Advantages of B.O.T.
1. Fast development of infrastructure is possible.
2. Public gets facility which they would not have got after so 1
many years. each
3. On completion of project, the expenditure incurred will be (any
collected by of toll and this amount is used for maintenance of two)
project.
4. Quality of work is good since public, private partnership is
there for construction of project.
b) Explain the term “right to reject one or all tenders”.
Ans. Rejecting the Lowest Tender:
The tender can be rejected under the following circumstances:
1. When the tender is not submitted in the particular form sold by
the department.
2. Earnest money required is not enclosed along with the tender.
3. When the tender is not signed by the contractor or by his 2 4
representative having power of attorney to sign the documents.
4. When the contractor has put some conditions which are not
acceptable to the department

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

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Model Answer Marks
No. Que. Marks
Q.4 b) 5. The lowest tenderer has become bankrupt, therefore no
Ans. sufficient amount to finance the work.
6. Bad reputation: The lowest tenderer might have earned bad
name in market. This may be due to non-co-operation, using
bad materials etc.
7. Lack of experience: The contractor may not be having the
necessary experience of the particular work to be executed.
8. Inadequate staff and equipment: The contractor may not be
having the qualified engineers on site and lack the special
construction equipment required for completion of work.
9. While rejecting the lowest tender one has to be more careful
and cautious. If the lowest tenderer goes to Court of Law, the
concerned authority who has rejected the tender should be In
position to prove in the Court of Law.
Rejecting all Tenders :
All the tenders can be rejected under the following conditions:
1. After the publication of tender notice, if it is found that the 2
changes in the designs are found essential.
2. If it is suspected that there is a collision among the contractors.
3. There is no competition for the work and minimum numbers of
tenders are not received.
4. The lowest tenderer has quoted very high rates than estimated
rate.
5. Unforeseen things happened.
c) Differentiate between Advance Payment and Final Payment.
Ans. Sr.No. Advance Payment Final Payment.
01 An amount paid in advance Payment is made at the
of the work done, by completion of work to the 1 4
contractor is called as contractor. each
advance payment.

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.4 Sr.No Advance Payment Final Payment.
02 Under special circumstances Quality of work done can
or a special case, the be checked before making
advance payment is made to payment
the contractor.
03 Cost of work done should Work is completed in
not be less than that of specified time.
advanced payment made to
the contractor.
04 It is applicable for all jobs. It is applicable for small
jobs.

d) Define and state use of indent and invoice. Rule out the form No-7
of indent and invoice.
Ans. Indent: Materials from the stock are issued on demand in a proper
form no.7 is termed as Indent which is prepared by Sub Divisional 1
Officer or Assistant Engineer. Indent form is in triplicate consist of
counter foil, indent and invoice; and is kept in a book serially
numbered. 4
Invoice: The counter foil and indent are filled by intending officer
and along with invoice, it is sent to issuing officer. The issuing officer
1
issues the material available in stores and then fills the invoice as
actual goods issued. He then returns the invoice to intending officer
who signs and returns the same to issuing officer as a token of
acknowledgement of the receipt of goods.

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.4 d) Form No-7 of indent:
Ans.
form no. 7- Indent for Stores form no. 7- Indent for Stores
Counterfoil Indent
Indent no. Indent no.
On …….. On ……..
Date ….. Date …..
Name
of Name of
Head work Head work 1
No. / No. /
Descript of with Descript of with
Quant Quanti
ion Acco name ion Accou name of
ity ty
unt of nt contract
contrac or
tor

The store should be delivered to The store should be delivered to

Intending Officer
Certificate of Supply
This indent has(not) been supplied with
in full……………. Delivered
Intending to……….on…….by……………dated
Officer …….
Supplying Officer

Form No-7 of Invoice.

form no. 7- Invoice
Invoice for stores Supplied
To…..
By……..
On Indent no.…….. Date……
Issued by the………………
Name of
1
work
Descripti No. / Head of with
on Quantity Account name of
contracto
r

Dated……..
Received… Supplying Officer
Dated….
Receiving Officer

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.5 Attempt any TWO of the following: (12)
a) Draft a tender notice for construction of Boy’s hostel building at
your polytechnic costing Rs. 5 Corers. Assume suitable
information if required.
Ans. Assumptions :
1. Authority inviting tender is Executive Engineer.
2. Situation at______.

Tender Notice
(Public Works Department)
No. : Date :
Sealed item rate tenders in form „B2‟ are invited by Executive
1
Engineer P.W.D. Division, _______ from registered contractors of
class III for following works.
Sr. Name of Esti- Earnest Security Time of
No. work mated money Deposit in comple-
cost in in Rs. Rs. tion
Rs. 3
1. Construction 5 5,00,000 25,00,000 22 months
of Boy‟s Corers (1%) (5%) (including 6
Hostel rainy
season)
Blank tender form at non-refundable cost of Rs._____/- (Rs.
_____/- if required by post) can be obtained from the office of 1
Executive Engineer (P.W.D.) Division, ______up to 4.00 p.m. during
working hours on all working days (Except Sundays and holidays)
from ………….. to ……………
Tenders will be received in office of Executive Engineer up to
3.00 pm on ……… and shall be opened on same day at 4.00 pm in 1
presence of contractors who may like to attend.
The right reserves to reject any or all tenders, without assigning
any reasons.
Sd/-
Executive Engineer
_______
b) Explain the detailed procedure of submission filled tender and
procedure of opening tender. (Two envelope system).

Ans. Procedure of submission filled tender:

The contractor is required to submit their tenders on or before the date
and time mentioned by department / authority in sealed envelope. 3 6
Tenders are submitted in envelopes marked as 1, 2 etc
1. Envelope 1:

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.5 Envelope 1 contains -
i. Earnest money deposit in the form indicated in the notice
of invitation to tender.
ii. Income tax clearance certificate.
iii. Solvency certificate from bank.
iv. Certificate of registration as contractor.
v. Details of technical personal as contractor.
vi. List of work of similar nature and magnitude carried out by
tenderer.
vii. Details of plants and machinery available.
viii. Complete details of work in hand at the time of submission
of Tender.
ix. Details about firm.
x. Covering letter to tender.
2. Envelope 2:
This envelop contain the priced tender form
3. Cover:
This envelop contains all above two envelopes and it is property
sealed and endorsed on outside face tender for name of project.
Procedure of opening tender:
Procedure of Opening Tender The tenders are opened on the date and
time mentioned in tender notice contractor or his representative shall
remain present during the opening of tender. Tender should preferably
be opened in the alphabetical order. The name of tenderer and total
amount quoted by him is read loudly so that each and even one should
know the amount.
3
1) The officer opening tender should enter total number of tender
received in the register of tender forms issued to the
contractor.
2) Officer prepare list of contractor or their representative present
of the time of opening the tender and get signature from them.
3) Tenders are opened in alphabetical order envelope 1 is opened

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Model Answer Marks
No. Que. Marks
Q.5 first to check earnest money deposit is as per prescribed format
or not.
4) If earnest money is not deposited tender is returned unopened
to concerned contractor.
5) After this envelope 2 is opened to check the document required
are submitted or not.
6) Lastly envelope 3 is opened and rate quoted by contractor is
read loudly, if any discrepancy observes it shall be rectified in
front of contractor or representative.
7) After this comparative statement is prepared.
8) The contractor whose tender is lowest is then informed in
writing about acceptance of his tender.
c) i. Explain necessity of Valuation.
ii. Differentiate between Depreciation and Obsolescence.
Ans. i. The various necessities of valuation are as follows:
1. Buying and selling the property.
2. Taxation.
3. Rent fixation.
1
4. Security of loans or mortgage. each
(any
5. Compulsory acquisition.
three)
6. Insurance.
7. Wealth tax and estate duty.
8. Assessment of stamp fees.
9. Gift tax.
10. Partition. 6
ii. Differentiate between Depreciation and Obsolescence.
Sr. Depreciation Obsolescence
No.
1. The physical loss in the The loss of the property 1
each
value of the property because of change in fashion,
caused by its use life, wear, style, new inventions,
tear and decay, is called as modern facilities etc. is
depreciation. called as obsolescence.

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q. 5 c)
Ans. Sr. Depreciation Obsolescence
No.
2. Depreciation depends upon Obsolescence do not depends
the age of the property. More upon the age of the property.
is the life; more will be the The reduction in the value of
depreciation. the property may be sudden.
3. Depreciation can be Obsolescence cannot be
determined by various calculated or determined by
methods. only method.

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 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
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Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.6 Attempt any TWO of the following: (12)
a) Suggest suitable value of property for sale. Area of plots=300
m2.Prevailing Rate of land=6000/-per m2 year of
2
construction.2008.Built up area of R.C.C building =100m .Present
cost of construction 10,000/- per m2.Assume life of construction 80
years and Rate of interest 6%.
Ans. Area of Plot=300m2.
Prevailing Rate of land=6000/-per m2. 1
Year of construction=2008.
Built up area =100m2.
Present cost of construction =10,000/- per m2.
Life of construction =80 years.
Rate of interest =6%.
Cost of Plot=300x6000
=Rs.18,00,000/-
Present cost of construction =100x10000 1
=Rs.10,00,000/-
Total Cost of plot and Building=18,00,000+10,00,000 6
=Rs.28,00,000/-
Assume expected return from land and building as 6%
Return expected on land and building = 6/100 x28,00,000/- 1
= Rs. 1,68,000/-
Let x be the gross rent per annum
Other outgoings = 20% of gross rent
=(20/100) x
= 0.2 x
Gross Income or rent = Outgoings + Net return
1
X = 0.2 x + 1,68,000
X = Rs. 2,10,000/-
Year Purchase= = =16.51
1
Year Purchase=16.51.
Capitalised Value=Net rent X Year Purchase.
=2,10,000 X 16.51 1
Capitalised Value=Rs.34,66,917/-

Page No. 19 / 22
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q. 6 a) Note:
Ans. (Assuming the following data the given problem is solved.
Expected return from land and building as 6%.
If the students assume the different values and try to solve the
problem should be considered and give appropriate marks.)
b) Draft a detailed specification for an item UCR masonry in CM
(1:6) in substructure.
Ans. The Detailed specification for UCR Masonry can be divided as
i) Materials ii) Mortar iii) Laying iv) Measurement
(i) Materials :
A. Stone :
a. Stone shall be hard, able to dress, sound, free from decay,
defect and weathering.
2
b. Stones with pores and defects shall be rejected.
c. Size of stone shall not be less than 150 mm in any direction.
d. Stones will be dressed and brought to required size and shape.
e. Stones with rounded surface shall not be used for the work
B. Sand or fine aggregate :
a. Sand or find aggregate needed for mortar shall be as per the
6
standard specification. Sand shall be well graded and sized, clean
and free from dust ,dirt, and organic matter foreign matter.
C. Cement :
a. Cement for mortar shall be as per the standard specification. It
shall be fresh shall be of uniform color and free from lumps. If
doubtful it shall be checked and subjected to tests and used
only after found satisfactory.
D. Water
a. Water fit for drinking purposes shall be used for construction
purpose.
(ii) Mortar :
Various ingredients of mortar shall be first mixed in prescribed 2
proportion of 1: 6 with measuring box and first mixed dry to have

Page No. 20 / 22
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q. 6 b) uniform colour on water tight platform and then mixed wet at least
Ans. three times by adding water evenly and gradually in appropriate
proportion as specified.
(iii) Laying :
a. The foundation trench shall be clean properly and sprinkled
with Water.
b. All the dressed stones shall be wetted thoroughly before laying
in stone work. The walls shall be carried up in line and truly
plumb.
c. Face stone shall not be narrower than that of its height shall
tail back and bond well into backing.
d. Stones shall be laid with break joint on the face for at least half 2
the height with those of courses above or below.
e. All joints after laying the stones shall be filled by mortar
completely and thickness of joint shall not more than 20 mm.
f. So as to prevent thick beds of joints and mortar, interstices
between stones shall be filled with stone chips and spalls.
g. Bond stones at least 450 mm long shall be given one for every
half sq.m face in the interior thickness of the walls.
h. Through stones (H) shall be approximately provided so as to
have the key bonding in between facing and backing.
i. The masonry wall shall be carried out together with a line and
truly plumb so as to have uniform height.
iv) Measurement of stone work :
Measurement of UCR masonry shall be taken in cu.m.

Page No. 21 / 22
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
Model Answer: Winter-2022
Subject: Contracts And Accounts Sub. Code: 22601
---------------------------------------------------------------------------------------------------------------

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q. 6 c) A person has invested Rs.50,00,000/-in land building expecting
6% rerurn.The cost of land Rs.20,00,000/-Assume
i. Cost of annual repairs to be Rs.10, 000/-.
ii. Management charges of Rs.5000/-per year.
iii. Other out goings at 20% of the gross rent.
Calculate the reasonable monthly rent if annual sinking fund
coefficient be 0.01.
Ans.
Total cost of land and building = Rs. 50,00,000/-
Cost of land = 20,00,000= Rs. 20,00,000/-
1
Cost of Building= 50,00,000-20,00,000=Rs.30,00,000/-
Return expected on land and building = 6/100 x50,00,000/-
= Rs. 3,00,000/-
Sinking Fund Installment for other=30,00,000 x0.01 1
=30,000/-
Management charges of Rs.5000/-per year.
Cost of annual repairs to be Rs.10,000/-
1 6
Net Rent=3,00,000+30,000+10,000+5,000=3,45,000/-
Let x be the gross rent per annum
Other outgoings = 20% of gross rent
1
=(20/100) x
= 0.2 x
Gross Income or rent = Outgoings + Net return
X = 0.2 x + 3,45,000 1
X = Rs. 4,31,250/-
Rent per month = (431250/12)
= Rs. 35937.5/-
1
Say Rs.35938/-

Page No. 22 / 22