CHAPTER -I

INTRODUCTION

1
CONCEPT OF CONTRACT LABOUR MANAGEMENT

Contract of Labour Management is an emerging area in most of the organizations. In the

Industrial world, it is almost necessary for any employer not to avail any services of contract
workers. However, due to compliance issues, safety and security issues, accidents etc. the
entire contract labour management process is becoming a complex subject as engaged nearly
13 contractors till date and has an it enabled contractor’s cell. The contract labour management
system is one such effort to ensure the contract labour engaged, as well as to strive towards
100% security.

This project was conducted mainly to examine the gaps in the Act in Electricals Company
whether it provision the purpose of the contractor in accordance with the act. Rule for Industry
Owner It is obligatory on the part of the principle owner to seek registration under section 7 of
the act. The act makes it obligatory on the part of every contractor not to undertake any work
through contract labour without obtaining the valid license. Duties to be maintain prescribed in
register and records are.

(a) Muster roll

(b) Register of wages

(c) Register of deduction

(d) Register of overtime

(e) Register of fin

(f) Register of advances

(g) Wage slip.

APPLICABLE RULES AND ACT

 Contract Labour (regulation & abolition) act 1970

 Maharashtra contract Labour (regulation & abolition) act 1970
 The payment of bonus act 1965
 Industrial dispute act 1947
 Maharashtra factories rule 1950
 Payment of gratuity act 1972
 Employee provident fund and miscellaneous provident act 1952.
 Employee state insurance act 1948
 Minimum wages act 1948

2
  Payment of wages act 1936.

Basic Introduction of The Act:

Contract Labour (Regulation & Abolition) Act 1970

An act regulates the employment of contract labour in certain established and to provide for
the abolition in certain circumstances and for matters connected there with.

This Act was passed to prevent the exploitation of contract labour but also introduce better
conditions of work where contract labour is justified.

It is extended to whole of India. It shall come into force on such date as the Central
Government may by notification in the Official Gazette.

It is applied to every establishment in which twenty or more workmen are employed or were
employed on any day of the preceding twelve months as Contract Labour.

Maharashtra contract labour (regulation & abolition) rules 1972

Maharashtra Contract Labour was made after the Contract Labour (Regulation Abolition) rules
after the Act for the labour prosperity was intended. In exercise of the power convened under
sub clause (b) clause –v of sub rules (2) of rule -25 of the Maharashtra Contract Labour
(Regulation Abolition) rules 1972 the Commission of Labour, Maharashtra Mumbai hereby
specify the following rates of wages, holidays hours of work and condition of service for the
workmen employed in the establishment of following category of principle employer.

NEEDS OF THE STUDY

3
Managing contract labor involves several important needs to ensure smooth operations and
compliance with regulations:

 Recruitment and Onboarding: Efficiently sourcing, vetting, and onboarding

contract workers to fill specific roles or projects.
 Compliance: Ensuring compliance with labor laws, including wage and hour
regulations, safety standards, and tax requirements.
 Contract Negotiation: Negotiating clear and fair contracts that outline the terms of
employment, including pay rates, duration, and scope of work.
 Training and Development: Providing necessary training and support to contract
workers to ensure they can perform their duties effectively and safely.
 Performance Management: Monitoring and evaluating the performance of
contract workers, providing feedback, and addressing any issues or concerns.
 Safety and Health: Maintaining a safe work environment for all workers, including
contract labor, and ensuring compliance with health and safety regulations.
 Communication: Establishing clear channels of communication between contractors,
management, and other employees to facilitate collaboration and address any issues
promptly.
 Payroll and Benefits: Managing payroll processes, including tracking hours worked,
calculating wages, and administering benefits as required by law or contract terms.
 Relationship Management: Building and maintaining positive relationships with
contract workers and the agencies or vendors that supply them.
 Risk Management: Identifying and mitigating risks associated with using contract
labor, such as legal liabilities or disruptions to operations.

Addressing these needs effectively helps organizations leverage contract labor efficiently while
minimizing risks and ensuring compliance with regulations.

4
 OBJECTIVES OF THE STUDY

The objectives of contract labour management typically include:

 Efficient resource utilization: Ensure optimal utilization of contract labour to meet

project demands while minimizing costs.
 Compliance with regulations: Ensure adherence to labor laws, regulations, and
contractual agreements to avoid legal issues and maintain ethical standards.
 Safety and risk management: Implement safety protocols and risk management
practices to protect contract workers from hazards and minimize workplace accidents.
 Quality control: Maintain quality standards by overseeing the performance of
contract workers and ensuring their work meets specifications.
 Productivity enhancement: Implement strategies to enhance productivity among
contract workers through training, supervision, and performance management.
 Relationship management: Foster positive relationships with contracted laborers
and their agencies to ensure smooth operations and resolve conflicts effectively.
 Cost control: Monitor and control costs associated with contract labor, including
wages, benefits, and administrative expenses, to optimize budget allocation.
 Flexibility and scalability: Utilize contract labor to provide flexibility in staffing levels
and scale operations up or down according to business needs.

Overall, effective contract labour management aims to balance cost, compliance, quality, and
productivity to achieve organizational objectives.

5
METHODOLOGY OF THE STUDY
 Recruitment: Identify labor needs, advertise positions, screen applicants, and select
suitable candidates.
 Contract negotiation: Define terms, conditions, and expectations for the labor
contract.
 Onboarding: Orient new contract workers to company policies, procedures, and
safety protocols.
 Assignments: Allocate tasks, projects, or shifts to contract labor based on skills and
availability.
 Supervision: Provide oversight, guidance, and support to contract workers to ensure
productivity and quality.
 Performance evaluation: Assess contract workers' performance regularly and
provide feedback for improvement.
 Compliance: Ensure compliance with labor laws, regulations, and contractual
agreements.
 Payment: Process and disburse payments to contract workers in accordance with
agreed-upon terms.
 Termination: Manage the end of contract agreements, including final payments and
offboarding procedures.

LIMITATIONS OF THE STUDY

 Lack of job security for contract workers
 Limited access to benefits such as healthcare and retirement plans
 Lower wages compared to permanent employees in some cases
 Limited opportunities for career advancement or training
 Dependency on the contract provider for job placement and assignments
 Uncertainty regarding the duration of employment
 Less cohesive workplace culture and sense of belonging

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 Potential for exploitation or unfair treatment by employers

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 CHAPTER -II

INDUSTRY PROFILE
The present study reports profile of construction industry in India. It points that construction
industry is one of the oldest industries providing ample employment to the people from village
level to metropolitan cities. The size of construction industry ranges from small company
owned by one or two individuals to a large industry employing thousands of people.

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In the present work inherent nature of construction industry have been discussed and
concluded that it is infrastructure or capital formation industry, which directly and indirectly
uses capital goods and all other types of resources.

It has been also highlighted that government agencies have direct interference in construction
activity right from acquisition of land to commissioning of the project.

To face the temporal variation of feast and famine state of construction industry emphasis on
systematized management has been suggested.

Like any other business, failure of construction companies is also very common. This issue has
also been overviewed. Incompetence, lack of experience, newness, smallness and financial
handicap are the few reasons cited for such failures.

It has been concluded that lessons should be learnt from failures as success is never final and
failure is never fatal. It is the courage of management that counts. At last, it is not failure but
low aim is a crime.

Historically construction industry is one of the oldest and largest industry in unorganized sector
providing ample employment to the people. Before the independence, the construction activity
in India was confined to building of dwellings, religious places like mosques and temples etc. at
individual and community level, with the use of traditional techniques, which are still being
used in developing countries like India. The Taj Mahal and Lal Quila are the legendry example of
competence of Indian talent in the field of construction. However very authentic record of the
construction operation of these buildings are not available today. The history of systematized or
organized construction practice in India can be traced back to around 1847 AD when Lord
Dalhousie established the Public Works Department, called PWD, today, to construct civil
engineering structure which included road, small dams, canals etc. The department worked
successfully for 100 years. In 1947, the independent India decided to launch a mammoth
multipurpose river valley project, called Bhakra Nangal Project on the river Sutlej in the North
West India for irrigation and power generation at a cost of Rs.7750 lakhs in 1952 which
amounts today approximately more than Rs.100,000 crore in first five year plan in which 50% of
capital outlay was allotted to construction of civil works.[5] The construction of Bhakra Dam
was taken by irrigation wing of PWD of Punjab with the help of technical knowhow from foreign
help on cost plus basis. This can be considered as a major breakthrough in the field of
construction by India as there were no big construction companies available at that time to take
up such stupendous job and more over network analysis like Construction Planning Method /
also known as Critical Path Method (CPM) and Programmed Evaluation & Review Technique
(PERT) had not taken formal shape. The evolution of Indian construction industry has followed
the same general pattern as happened in other countries, initially founded by the government

9
and slowly taken over by small and big enterprises. During execution of Bhakra Nangal dam
Indian government realized need of professional competence in the field of construction and
the first professional consultancy company National Industrial Development Corporation (N I D
C) was established in the public sector in 1954 .Subsequently a number of specialty companies
in design and Construction came into existence like Indian Railways Construction Limited
(IRCON),National Building Construction Corporation (N B C C),Rail India Transport and
Engineering Services (R I T E S),Engineers India Limited(E I L) and in private M N Dastur & Co.
Hindustan Construction Company are the name worth to be mentioned. In late sixties
government allowed foreign collaborations in these services. The guidelines for such
collaboration were prepared and issued in 1968 with binding that local consultant would be the
principal contractor in such collaborations .The objective behind such binding was to develop
indigenous design capabilities comparable to in flown foreign technology and skills. The
outcome of this strategy was establishment of joint ventures in India.

Construction and National Economy:

By just using common sense it can be inferred that economic plans of any country are prepared
to improve any particular sector of economy. Improvement or emphasis on any particular
sector may or may not need help of other sectors like construction. A microscopic study of
economy, irrespective of its state i.e. primary, secondary or tertiary, reveals that development
of most of the sectors need help of construction. In nutshell, a gap between demand and supply
is necessary for the development of a particular sector. Thus, it can be said that any attention to
optimize construction activity will lead to reduction in waste of material, saving of energy and
saving of time. This will certainly lead to reduction in cost over runs of other projects. Thus,
construction sector is directly or indirectly influencing the overall economy of the country. The
pattern of Indian economy of last fifty years shows that construction work amounts to around
40% of development investment .Approximately 16% of Indian working population depends on
construction for its living .The construction industry creates immobile assets worth over
Rs.20000 crore by employing more than 3 crore people .It enhances nation’s GDP by 5% and
gross capital formation of 78%.It is expected that total capital expenditure of state and center
will be approaching Rs.802087 crores during the period 2011-12. This amount indicates an
enhancement of Rs.658500 crore from the figure of Rs. 143587 in 1999-2000.In the 21st
century there has been an increase in the share of the construction sector in GDP and capital
formation. The GDP from construction at factored cost or at current prices increased to Rs.
174571 crores (12.02 % of the total GDP) in 2004 -05 from Rs.16238 crores (10.39% of the total
GDP in period 2000-01. The increasing involvement of the private sector in infrastructure
development through public private partnership and the strategy like Build Own Transfer (BOT)
can be cited as the main factor for such increase in GDP. However, there is always scope for
more active participation from private sector in this direction through investment. There are

10
around 200 firms from corporate sector, working in Indian construction industry. The number
of registered class A contractors is around 120000 working for local development authority,
state departments and central government bodies like CPWD. The number of small contractors
and petty contractors working as sub-contractors for principal contractors are enormous. So
there is ample scope for expansion of construction industry at micro as well as at macro level in
form of infrastructure development.

NATIONAL ECONOMY
Construction industry has some peculiar characteristics like any other industry. Firstly, it is a
capital-intensive industry involving current and future outlays of funds with the expectation of a
stream of benefits extending far into the future.

Secondly, construction project takes a long duration to complete e.g. the Bhakra Dam took
fifteen years for its completion (1950-1965) and they also have a long gestation period.

Thirdly, the useful life of construction project of national importance is very long usually more
than 60 years for most of the major constructions.

Fourthly, in construction project, products and services are combined together. In construction,
product is fixed and machine and men move, contrary to assembly line production in which
product moves.

Fifthly, a large construction needs a large land area. Acquisition of such land leads to payment
of compensation to the owners of the land, which has legal and political over tones. In some
cases, like construction of dam, it needs rehabilitation of nearby villages. Such problems usually
do not occur with the other industries.

Sixthly, cost benefit analysis of public infrastructure created by construction activity such as
roads, bridges and dams cannot be done with traditional concept of profit maximization alone.
Special economic tools like Social Cost Benefit Analysis (SCBA) and principles of welfare
economics are essential for the valuation of such assets.

Seventhly, two construction projects are not identical in every respect. Thus, construction
project can be considered as a job work of a large magnitude contrary to any other
manufacturing unit producing products at mass scale by a single machine.

Eighthly, the human resource working in construction forms a temporary organization for the
project at the site and disperses in different directions as soon as the project is over.

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Ninthly, experience of generations plays a vital role as most of the construction material
directly used after quarrying are the natural material and performance or relative merit of such
material takes a long time for its pronouncement, the time may be in decades.

Tenthly, death of workers during the execution phase of project is very common, so safety and
precaution are primary concerns.

Constructions and National Development:

For any developing country like India, development of infrastructure is the prerequisite for the
economic progress of the country. To achieve this objective optimized construction is the need
of the hour as capital is a scarce resource

Types of Construction:
Total construction work can be divided into two broad categories viz. public and private. The
public projects i.e. whose direct beneficiary will be the public, is usually handled by the
government, of course govt. get it done by any contractor or by construction company by
awarding the work through bids and tenders. It is public money or any financial aid or loan from
agencies like World Bank, that is spent. Dams, Bridges, Canals, Metro Rail, Power Projects,
DUDA, SUDA are typical examples of public projects.

Private projects like house of an individual or construction of a factory, a nursing home, hotel or
project in which taxpayer’s money is not involved can be categorized as a private project.
Frankly speaking profit motive is always there in most of the private projects. In private
projects, capital outlays are less as compared to public projects.

Secondly in Indian working environment one cannot afford delay in private projects but cost
over runs and delays in public projects are an everyday phenomenon in India.

Consumers of Construction Industry:

Following are the consumers of construction industry:

An Individual

Group Housing Societies

Centre, State, Local Government and Development Authorities.

Corporate Sector

Other countries at international level.

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Main Organs of Construction Industry:
There are three main organs of construction industry other than the consumer.

The Owner

The Consultant

The Contractor

The Owner:
Civil Engineering Projects are usually cost intensive. Usually, the investor does feasibility study
in advance. Any investor or promoter is worried about two things. Firstly, investor is worried
about the rate of return. Secondly the patterns of cash flow. The ideal situation will be high and
early return. i.e. on what date what amount is required and from where the same will be
arranged. The owner or promoter may be an individual, a government authority, a government
department, a corporate house etc.

The Consultant:
In Civil Engineering Projects, Architect, Engineer, Project Manager and Chartered Accountant
usually form the panel of consultants. These persons advise the owner on the basis of their
knowledge, experience, and know how. It is generally believed that any person who has
experience and knowledge can give advice on a particular problem of his field.

The Contractor:
In Civil Engineering Project, contractor translates the blue print into reality with the help of
work force and material. The practice of contractor ship in civil engineering is perhaps as old as
civil engineering itself. A poorly written contract agreement is always a good cause of bone of
contention. In contracts, one should always seek the help of a legal expert. This is imperative
that owner himself should enhance his knowledge on the subjects like laws of contract,
negotiable instrument act and consumer protection act etc.

Business Opportunity in Construction Industry:

Construction of infrastructure like road network, canals, urban development, extension and
renovation of existing facility are few activities through which capital formation takes place in
most of the countries of the world. So, there is always ample opportunity for construction from
village level to international level for the construction companies, depending upon size and
ability and experience of the company.

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Failures of Construction Company:
Any construction activity starts from scratch and passes through various intricate processes and
finally project ends in a built-up facility or reaches to startup phase of the project and finally
project becomes operational. Like other business in construction business also, there are many
slips between cup and lip. The failure of construction business is a subject of analytical inquiry
and a matter of concern. So many investigators have examined the issue. A few are being
reported here

Dun & Bradstreet (1985-1994) have studied the failure of Construction Company for many
years (10 years). They list the following reasons for the failures.

 Incompetence
 Unbalanced experience
 Lack of managerial experience
 Lack of experience in particular line
 Neglect
 Fraud
 Disaster
 Reasons unknown

The first four items listed in above list account for over 90 percent of the failures. This fact
exhibits that financial success of Construction Company depends almost entirely upon the
quality of its management. Sometimes prolonged work, poor profit margin, lack of proper
accounting procedure can be cited as reason for the failure. If we club all these reasons, it
points towards poor management.

Recently Kale and Arditi (1998) have done a thorough investigation in this direction. They
conclude that newness, adolescence and smallness are three major factors, which are
responsible for failure of construction companies

There is no dearth of literature on the success stories of various companies. Unfortunately,

success is a public celebration and failure is a private funeral. So, for a new entrepreneur, it is
better to learn from failures rather than from success stories

In this regard scholar is of the view that foundation of right stepping stone always rests on
wrong footprints. These wrong footprints are sometimes called experience. In a nutshell a new
entrepreneur should know DONTS first rather than DOS. It is the first step to run the
construction business.

Conclusion

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Today, due to increased competition and the capital, which is scarce, large constructions like
metro rail, infrastructure development, high-rise building cannot be handled without the use of
modern construction equipment and modern construction management techniques to reduce
time and to maintain higher standards of construction quality. On one hand, it is necessary to
use modern machinery and latest construction management tools to optimize the construction
activity to improve the physical productivity of fixed and variable factors of production. It does
not mean that will leave thousands of labourers and other human resource jobless. It is an
irrational thinking as it is well said that ‘tomorrow will take its own course’.

Meticulous management of the finances is necessary for the exponential growth of the
company.

At last, any productive activity serves the society so is with the construction activity. In broader
sense every individual of the country will get benefit of increased productivity directly or
indirectly through the created individual assets or public infrastructure.

COMPANY PROFILE
Pavithra Constructions is a reputable construction company dedicated to delivering high-quality
projects in a timely and cost-effective manner. With a commitment to excellence and
innovation, we strive to exceed client expectations and contribute positively to the
communities in which we operate.

Mission Statement:

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Our mission is to build enduring relationships with our clients, employees, and stakeholders by
consistently delivering exceptional construction services that enhance the built environment
and create value for all involved parties.

Services:
Residential Construction: From single-family homes to multi-unit developments, Pavithra
Constructions has the expertise to bring your residential projects to life with precision and care.

Commercial Construction: Our team specializes in constructing commercial properties,

including offices, retail spaces, and mixed-use developments, tailored to meet the unique needs
of our clients.

Industrial Construction: With a focus on efficiency and functionality, we provide

comprehensive construction solutions for industrial facilities, warehouses, and manufacturing
plants.

Infrastructure Development: Pavithra Constructions is involved in infrastructure projects

ranging from roads and bridges to water treatment facilities, contributing to the growth and
development of communities.

Core Values:
Quality: We are committed to delivering the highest standards of quality in every project we
undertake, ensuring durability, safety, and client satisfaction.

Integrity: Honesty, transparency, and ethical behavior are the foundation of our business
practices, guiding our interactions with clients, partners, and employees.

Innovation: We embrace innovation and continuously seek new technologies and

methodologies to improve efficiency, sustainability, and project outcomes.

Safety: The well-being of our employees and stakeholders is paramount, and we maintain
rigorous safety protocols to create a secure working environment on every project site.

Team:
Our team consists of experienced professionals with diverse backgrounds in engineering,
construction management, architecture, and project development. Their expertise, coupled
with a collaborative approach, enables us to successfully execute projects of varying scale and
complexity.

Regulatory Bodies Related with Construction:

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Regulatory bodies related with any business can be classified into two broad categories viz.
general and specific.

Income Tax, Labour Court, Labour Union, Electricity Board are the departments with which
every business organization has to deal, fall in general category. So, every business organization
should be well versed with the rules, regulation, written and unwritten laws of these
departments.

The regulatory bodies specific to construction at local level are following: (1) Local Development
Authority, (2) Pollution Control Board, (3) Water Works and Conservancy, (4) Local Police.

Local Development Authority:

It is the first regulatory body, which is encountered in any construction. Most of the rules,
regulations and byelaws of development authorities of province of Uttar Pradesh are given in
the book “Regulation of Building Operation in Uttar Pradesh. This very book every construction
manager should have and should always keep himself in touch with the office of the
development authority for the awareness of day-to-day changes in the working and rules and
regulation of the authority.

In fact, rules, regulation and bye laws are framed to provide healthy living but sometimes these
laws are one sided i.e. in favor of government only. Thus, it is advisable that rules should not be
violated in ordinary circumstances.

However, there is always a provision for the compounding. This is to be weighed by the owners
i.e. gain or loss on an unauthorized construction.

Pollution Control Board (PCB):

Now a days regulation regarding environmental pollution have become very stringent in India
to, like in advanced countries. Sometimes large projects like construction of power plant,
multipurpose river valley project is stopped or even abandoned due to environmental
considerations. Most common projects that have been in trouble in the recent past include
Tehri Dam in Uttaranchal and Narmada in Madhya Pradesh.

Clearance from PCB is also necessary for construction of a factory or fabrication of a processing
plant. The days are over when effluents were directly discharged into the river. There is no
harm in conforming to PCB norms but sometimes these regulations are difficult to obey and

17
PCB acts as a hassle. Planners are advised to incorporate PCB recommendation right from site
selection to project formulation.

Water Works and Conservancy:

If construction is to be done in urban area, then very first question comes to mind is what will
be the source of water during construction. If municipal water supply is used, municipality
charges additional tariff on it. So, it is advisable that first and foremost job of construction
manager is to get a water pump installed and inform the municipality that public water is not
being used for construction.

The second thing in case of projects like hotel and apartment is the disposal of wastewater and
night soil. It is obligatory upon liaison officer of the construction company or construction
manager to initiate the issue for the permission of connection of sewer of the building to the
municipal sewer.

Local Police:

Local police play an important role in any construction project in India because development
authorities always take the help of police to meet their objectives or in case of mishappening
on the site local police has to be taken into confidence. It is obligatory on the part of
construction manager to maintain good relations with local police station and police officers of
that area. Of course, maintenance of such relations, always lead to additional expenditure on
the construction company.

Management in Construction:

Based on work experience, it has been observed that most of the construction contractors
manage their business in a very unorganized manner. This ultimately leads to failure of
business. The numbers of small and medium size companies’ failures are much more.

Construction industry has been characterized as weak inefficient, nebulous, backward and slow
to incorporate changing conditions. In a nutshell majority of construction companies are poor
absorber of management knowledge. The explanation given for it may be as under.

Every construction project is unique in itself and does not need very strict technical
standardization. An operation in construction work involves many skills and talent, mostly of
non-repetitive nature. Remote location of the project, poor means of transportation and
varying productivity of labour are some factors, which are beyond the contractor’s control.
Thus, construction business is volatile in nature with many ups and downs.

18
Any construction activity is basically a manufacturing process. So, the decision-making people
are very few. Any delay in on-the-spot decisions, increases the cost and hampers the progress
of construction. Such complexities lead to a managerial challenge. It does not mean
management problems of construction are entirely different from other management
problems.

Like any other industry, construction industry is also experiencing cutthroat competition.
Products and services of construction industry also face temporal variation in demand and
supply.

Such conditions necessitate the learning of managerial practice specific to construction. Today
skilled management is necessary for the survival of construction industry. This maxim has not
received adequate attention in construction firms in India. The result is high incidence of failure.

Arditi et.al. (2000) found budgetary and macroeconomic issues as main reason. Kivrak and
Arslan (2008) have examined the critical factors causing the failure of construction companies
through a survey conducted on forty medium and small size construction companies of Turkey.
They have inferred lack of experience and country’s economic condition as influential factor for
the failure.

In scholar’s opinion financial handicap is perhaps the root cause of failure, which is always
associated with new companies. It may be concluded that in simple terms, if any one fails in any
business, i.e. he could not understand the economics or intricacies or commerce of that
business.

The Construction Managers:

The construction manager is the most critical resource in implementation phase of the project.
He is supposed to discharge basic functions like organizing, staffing, directing, planning and
controlling. A good performance of construction manager is necessary for the growth,
development and success of Construction Company.

Although the managers do not normally, carry out the construction work with their own hand,
Yet they are responsible for keeping the project on schedule within the cost limits. They should

19
have telescopic as well as microscopic vision on each and every step of construction operation,
right from preliminary estimates and various types of costs to the final inspection and payment.

In managing any construction project, personality of construction manager plays a vital role.
This very trait can never be ignored. Mustapha and Naoum (1998) have investigated factors,
which influence effectiveness of site managers. They are of strong opinion that personal
variables as a whole have an impact on effectiveness of site managers.

The construction manager should also be capable of handling crisis and contingencies at site.
Crisis and contingency do arise at construction site. Managers should be well equipped to deal
with such emergencies. To deal with such contingencies collective effort is needed. Loosemore
(1998) has identified effective responsibility and teamwork is the basic managerial tool to
handle the crisis.

Need for Professional Competence:

If a company or contractor is ignorant about his legal rights, entitlements and not vigilant, he
will get partial success and will have to be contented with few chips of fruit produced by his
hard labour and larger chunk will go to the owner who will seldom volunteer a helping hand.

So, there is an intense need to instill competence in the management of this valued industry.
Introducing a comprehensive course of study, containing all the relevant aspects of
construction management and by writing good books and doing research work, covering all
aspects of the problem, can fill this gap.

Since construction activities are carried out mostly at the construction site, which are usually far
flung from main cities, the academician/authors, and the faculty may not be aware of the
practical difficulties and nuances of construction management. These might be the reason that
construction management has not received due place in the institutes, universities, colleges
and in many management books.

Application of present paper:

This research work will be useful to individual owner, consultant and contractor as well.

If a young entrepreneur decides to enter in construction business he is being told in advance

about the pros and cons of construction industry. If he plans his business and manages the
construction work himself, by employing his own construction team and purchasing the
material himself, he will certainly flourish.

20
If the entrepreneur who is conversant with the nuances of construction management practice,
can extract maximum from the contractor by applying the knowledge discussed herein, with
not much difficulty and solving their problem in time without being deceived or cheated by
anyone.

Consultants can use the present work for optimizing the project during conception, definition
and planning phase of the project.

At last, the maximum benefited is the contractor who feels the beat (profit) of the heart of
construction project i.e. construction phase.

The construction business is vital and responsible for developing and maintaining our
infrastructure. Without civil contractors, the construction industry would grind to a halt.

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. In addition to construction services, contractors may also provide
engineering and project management services.

Construction projects can be large and complex, so it’s essential to have an experienced and
knowledgeable contractor about the construction process. Civil contractors typically have
experience in various construction disciplines, including project management, engineering, and
architectural design.

Construction is a notoriously risky business, so it’s essential to have a contractor willing to take
on the risk. Contractors are typically responsible for the entire construction process, from start
to finish. This means that they are responsible for managing the construction site, coordinating
with subcontractors, and ensuring that the project is completed on time and within budget.

Civil construction is a fundamental aspect of infrastructure development, encompassing the

design, building, and maintenance of physical and naturally built environments. This sector
includes projects like roads, bridges, dams, and buildings, each requiring specialized expertise.
The role of a civil contractor is central in this process, as they are responsible for the execution
and oversight of these construction projects.

A civil contractors list typically includes companies and individuals who have expertise in
various aspects of construction. For instance, construction contractors in Pune are known for
their work in urban development and large-scale construction projects. The civil contractor
work involves not just the physical aspect of building but also managing logistics, resources, and
workforce.

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Civil contractors are responsible for the planning, coordinating, and executing of construction
projects. They work closely with clients to develop project plans, identify construction materials
and methods, and oversee the construction process from start to finish. Civil contractors also
ensure that projects are completed on time and within budget.

A civil contractor will also be responsible for ensuring that all safety regulations are followed
and that the quality of the finished product meets all specifications.

There are many differences between civil contractors and construction companies. A civil
contractor is a professional who provides construction services for both public and private
sector clients. A construction company is a business that offers construction services to clients.
Construction companies may also offer other project management, engineering, and financing.

The most notable difference is that civil contractors typically specialize in a particular type of
construction, such as roads, bridges, or sewers. On the other hand, construction companies
may build anything from homes to office buildings.

Construction contractors are also usually smaller than construction companies. This means they
are nimbler and can often get the job done faster. They also tend to be more focused on
customer service since they have to compete with other firms for business.

Overall, construction contractors play an essential role in the construction business. They
provide a vital service that helps to keep our infrastructure in good shape.

There are many different types of civil contractors, each with its area of expertise. Here are
some of the most common:

Excavation Contractors: These contractors are responsible for excavating the site where the
construction occurs. This includes clearing the land, removing any trees or other obstacles, and
preparing the ground for construction.

Concrete Contractors: These contractors are responsible for pouring and finishing concrete on
the construction site. This includes creating foundations, floors, walls, and other structures
made from concrete.

Masonry Contractors: These contractors are responsible for laying bricks, stones, and other
masonry materials on the construction site. This includes creating walls, chimneys, fireplaces,
and other structures made from masonry materials.

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Roofing Contractors: These contractors are responsible for installing roofs on the construction
site. This includes putting on shingles, tiles, metal roofing, or other materials to create a
waterproof barrier over the structure.

As the world progresses, the construction business is booming. Whether it’s a new office block
in a city or a housing development in the suburbs, construction projects are everywhere. And
contractors play a vital role in making these projects happen.

Civil contractors are responsible for the coordination and management of construction projects.
They work with architects, engineers, and other professionals to ensure that projects are
completed on time, within budget, and to the required standard.

Construction contractors must have excellent communication and negotiation skills, as they’ll
often be required to liaise with multiple stakeholders on a project. They must also be able to
think on their feet and solve problems quickly, as construction can be a chaotic and
unpredictable environment.

If you’re interested in a career in construction, working as a civil contractor could be the perfect
role.

There are many benefits to working with a civil contractor in the construction business. Civil
contractors are typically very experienced and knowledgeable in construction, from foundation
work to utilities and everything in between.

This means that they can often provide significant cost savings and efficiencies for construction
projects. In addition, contractors typically have a strong network of subcontractors and
suppliers, which can be extremely helpful in ensuring that construction projects are completed
on time and within budget.

To find a reputable civil contractor

You should take a few things into account when hiring a civil contractor. Here are a few tips:

 Get referrals from people you trust. If someone you know has had a good experience
with a civil contractor, they’re likely to be reputable.
 Check out online reviews. A quick Google search for civil contractors near me will reveal
any red flags about a potential contractor.

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  Make sure they’re licensed and insured. This protects you in case anything goes wrong
during the construction process.
 Get an estimate in writing. This will help you compare prices and make sure you’re
getting a fair deal.

When we talk about what civil contractor means, it’s about a professional or a company that
undertakes contracts to construct or repair buildings, roads, or other structures. The civil
contractor salary varies depending on experience, location, and the scale of projects they
handle. For those interested in this field, understanding how to become a civil contractor is
crucial. It usually involves gaining experience in construction, understanding the legal and
regulatory aspects, and often obtaining a license.

The civil construction business involves companies and professionals specializing in building and
maintaining infrastructure like roads, bridges, dams, and buildings. It combines engineering
principles with project management skills to create physical structures in the public and private
sectors.

Civil works refer to the design, construction, and maintenance of infrastructure projects,
including but not limited to transportation systems, public utilities, and urban developments.
It’s a broad term that encompasses all types of civil engineering tasks.

Commitment to Excellence

Pavithra constructions is committed to excellence in every aspect of our operations. From the
initial consultation to the final walkthrough, we ensure that every project reflects our
dedication to our clients’ satisfaction, environmental responsibility, and the highest standards
of quality. Join us as we continue to build a better future, one project at a time.

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 CHAPTER -III

Theoretical framework
A Contract Labour Management System is a tool used by companies to manage their contract
labour workforce. This type of software provides features for tracking employee data, time and
attendance, overtime, project allocation, invoicing, and more. It is a web-based system, which
means that it can be accessed from any device with an internet connection.

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One of the primary benefits of using a Contract Labour Management System is the ability to
monitor employee hours, overtime, headcount and expenses. This information is crucial for
companies that need to track their project costs and ensure that their workforce is being used
efficiently. With the help of Contract Labor Management Tools, companies can also streamline
their payroll process and reduce errors.

Workforce Management Software is another important component of a Contract Labour

Management System. This type of software is used to manage employee schedules, vacation
time, and other important information. By using Workforce Management Software, companies
can ensure that their contract labour workforce is available when needed and that they are
working the appropriate number of hours.

Another benefit of using a Contract Labour Management System is that it can help companies
comply with labour laws and regulations. By tracking employee hours and expenses, companies
can ensure that they are paying their workers fairly and that they are following all applicable
labour laws. This is especially important for companies that operate in multiple jurisdictions,
where labour laws can vary.

Overall, a Contract Labour Management System is an essential tool for companies that rely on
contract labour. By using Contract Labor Management Tools and Workforce Management
Software, companies can manage their workforce more efficiently, reduce costs, and ensure
compliance with labour laws. Additionally, by using a web-based system, companies can access
their data from anywhere, making it easier to manage their workforce on the go.

TYPES OF LABOUR
(a) Skilled

(b) Semi-skilled

(c) UN skilled.

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 (a) Skilled labor: skilled work is that which includes skilled acquired through experience on the
jobs or through training as apprentice in technical or vocational institution and the performance
of which calls for initiation accuracy and judgment.

(b) Semi-skilled: semi - skilled work is that which involves some degree of skill acquired through
experience on the job and which can able of being performed under supervision and guidance
of a skilled employee.

(c) UN skilled: unskilled work is that which involves simple operations requiring little or no
skilled or experience on the job.

The Significance and Challenges of Contract Labor

Contract labor, a prevalent aspect of modern economies, plays a crucial role in various
industries worldwide. This essay delves into the significance and challenges associated with
contract labor, shedding light on its impact on businesses, workers, and society as a whole.

Significance:

Flexibility: Contract labor offers businesses flexibility in adjusting their workforce

according to fluctuating demands. This flexibility enables companies to scale their
operations efficiently, minimizing costs during periods of low activity and
maximizing productivity during peak times.

Specialized Skills: Contract labor often brings specialized skills and expertise to
projects, allowing businesses to access talent not available in their permanent
workforce. This access to specialized skills enhances innovation, competitiveness,
and the overall quality of work delivered by organizations.

Cost-Effectiveness: Employing contract labor can be more cost-effective for

businesses than hiring full-time employees. Contract workers typically do not
receive the same benefits and protections as permanent employees, reducing
labor costs for businesses.

Risk Mitigation: Contract labor helps mitigate risks associated with economic
uncertainty, regulatory changes, and market fluctuations. By relying on temporary

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workers, businesses can adapt quickly to changing circumstances without the
long-term commitments associated with permanent employment.

Challenges:

Job Insecurity: Contract workers often face job insecurity due to the temporary
nature of their employment. They may experience frequent job transitions,
uncertain income streams, and limited access to benefits such as health
insurance, retirement plans, and job training programs.

Lack of Protections: Contract laborers typically have fewer legal protections and
rights compared to permanent employees. They may be vulnerable to
exploitation, workplace discrimination, and unfair labor practices, leading to
issues such as wage theft, unsafe working conditions, and limited avenues for
recourse.

Fragmented Workforce: Relying heavily on contract labor can fragment the

workforce and weaken organizational cohesion. A workforce composed of both
permanent and temporary workers may experience communication challenges,
morale issues, and difficulties in fostering a sense of belonging and loyalty among
employees.

Regulatory Compliance: Managing contract labor entails navigating complex legal

and regulatory frameworks governing employment relationships. Businesses must
ensure compliance with labor laws, tax regulations, and contractual obligations,
which can be time-consuming and resource-intensive.
Contract labour is defined as workers who engage through an intermediary and there exists a
triangular relationship between the user enterprises, the contractor [including the sub-
contractor] and the workers. There are millions of workers involved in contract labour and they
generally belong to the unorganized sector, have very little bargaining power and also engage in
hazardous occupations risking their health and safety. They are also often denied the minimum
wage and have little or no security of employment.

The contract labour system is prevalent in various economic activities in sectors like: public,
private, organized, unorganized, home-based, primary manufactirung and service sectors.

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Further, the courts have taken different stand after analyzing the different cases, in some
Contract Labour has engrossed in the work place and in some cases, it has been done away
with. Section 2 (1)(a) of the 1986 Act, talks about the Jurisdiction of the Central and State
Government under the definition of “Appropriate Government” and also it also talks about the
requirement for the establishments of the contract labour which needs to be set up and
established. In accordance to the establishment, all basic facilities of convenience need to be
provided to the workers and if anyone is found violating the provisions of the act, then the
punishment is imprisonment for a maximum term of 3months and a fine of Rs. 1000/-

Liberalization and privatization of the Indian economy have been started with a perspective to
enhance competitiveness of Indian business and for great association. It is visualized that
expanding presentation of the Indian economy to the world and fare augmentations might go
about as a motor for general development. In this way employment generation ought to
consider the linkage of quality of work and benefit on one hand and employment choices on
the other.

Contract management or contract administration is the management of contracts made with

customers, vendors, partners, or employees. Contract management includes negotiating the
terms and conditions in contracts and ensuring compliance with the terms and conditions, as
well as documenting and agreeing on any changes or amendments that may arise during its
implementation or execution. It can be summarized as the process of systematically and
efficiently managing contract creation, execution, and analysis for the purpose of maximizing
financial and operational performance and minimizing risk.

Common commercial contracts include purchase orders, sales invoices, utility contracts, letters
of engagement for the appointment of consultants and professionals, and construction
contracts. Complex contracts are often necessary for construction projects, goods or services
that are highly regulated, goods or services with detailed technical specifications, intellectual
property (IP) agreements, outsourcing and international trade. Most larger contracts require
the effective use of contract management software to aid administration among multiple
parties.

A study published in 2007 found that for "42% of enterprises ... the top driver for
improvements in the management of contracts [was] the pressure to better assess and mitigate
risks" and additionally, "nearly 65% of enterprises report that contract lifecycle management
(CLM) has improved exposure to financial and legal risk".

A contract is a written or oral legally-binding agreement between the parties identified in the
agreement to fulfill the terms and conditions outlined in the agreement. A prerequisite
requirement for the enforcement of a contract, amongst other things, is the condition that the

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parties to the contract accept the terms of the claimed contract. Historically, this was most
commonly achieved through signature or performance, but in many jurisdictions - especially
with the advance of electronic commerce - the forms of acceptance have expanded to include
various forms of electronic signature.

Contracts can be of many types, e.g. sales contracts (including leases), purchasing contracts,
partnership agreements, trade agreements, and intellectual property agreements.

1. A sales contract is a contract between a company (the seller) and a customer where the
company agrees to sell products and/or services and the customer in return is obligated
to pay for the product/services bought.
2. A purchasing contract is a contract between a company (the buyer) and a supplier who
is promising to sell products and/or services within agreed terms and conditions. The
company (buyer) in return is obligated to acknowledge the goods / or service and pay
for liability created. When the purchasing contract is between a retailer and
manufacturer, the contract also includes conditions for processing returned items.
However, due to the cost of reverse logistics, retailers often dispose of returns rather
than sending them the back to the vendor.
3. A partnership agreement may be a contract which formally establishes the terms of a
partnership between two legal entities such that they regard each other as 'partners' in
a commercial arrangement. However, such expressions may also be merely a means to
reflect the desire of the contracting parties to act 'as if' both are in a partnership with
common goals. Therefore, it might not be the common law arrangement of a
partnership which by definition creates fiduciary duties and which also has 'joint and
several' liabilities.

Contract management activities

The business-standard contract management model, as employed by many organizations in the
United States, typically exercises purview over the following business disciplines.

o Authorizing and negotiation.

o Baseline management.
o Commitment management.
o Communication management.
o Contract visibility and awareness.
o Document management.
o Growth (for sales-side contracts).
o Contract compliance/governance.

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Phases of contract management
Contract management can be divided into three phases:

o pre-contract phase
o contract execution phase
o post-award phase (often referred to as contract compliance/governance), including
contract termination.

In the post-award or "downstream" phase, some organizations have a contract management

team, others may require operational managers to include the management of contracts within
their role. The Chartered Institute of Procurement & Supply (CIPS) suggests that the
requirement for dedicated contract management depends on contract value, contract length,
complexity of services and level of risk, although in the initial stages of a contract, the
assessment of risk and the implementation of core contract management processes may be
appropriate tasks for a dedicated contract manager. CIPS also notes that in some cases the
procurement team may have an extended role in maintaining contract management.
Contracting for services may be more complex than supply-only contracts and therefore require
closer management.

Contract variation
There may be occasions during the post-award phase when what is agreed in a contract needs
to be changed later on. A number of bases may be used to support a subsequent change, so
that the whole contract remains enforceable under the new arrangement.

A change may be based on:

a) A mutual agreement of both parties to vary the contract, outside the framework of the
existing contract. This would be an independent basis for changing the contract.
b) A unilateral decision to vary the contract, contemplated and allowed for by the existing
contract. This would normally have notice periods for fairness and often the right of the
other, especially in consumer contracts, to cease the contractual relationship. Any one-
way imposition of change should be contractually justified, otherwise it may be
interpreted as a repudiation of the original contract, enabling the other party to
terminate the contract and seek damages.
c) A bilateral decision to vary the contracting, within the variation or change control
process outlined in the existing contract. These are often called change control
provisions.

Contract compliance/governance

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During the post-award phase, it is important to ensure that contract conditions and terms are
met, but it is also critical to take a closer look for items such as unrecorded liabilities, under-
reported revenue or overpayments. If these items are overlooked, the margin may be
negatively impacted. A contract compliance audit will often commence with an opportunity
review to identify the highest risk areas. Having a dedicated contract compliance (and/or
governance) program in place has been shown to result in a typical recovery of 2-4% and
sometimes as high as 20%.

Current thinking about contract management in complex relationships is shifting from a

compliance “management” to a “governance” perspective, with the focus on creating a
governance structure in which the parties have a vested interest in managing what are often
highly complex contractual arrangements in a more collaborative, aligned, flexible, and credible
way. In 1979, Nobel laureate Oliver Williamson wrote that the governance structure is the
“framework within which the integrity of a transaction is decided”. He further added that
“because contracts are varied and complex, governance structures vary with the nature of the
transaction”.

Current thinking about contract management in complex relationships is shifting from a

compliance “management” to a “governance” perspective, with the focus on creating a
governance structure in which the parties have a vested interest in managing what are often
highly complex contractual arrangements in a more collaborative, aligned, flexible, and credible
way. In 1979, Nobel laureate Oliver Williamson wrote that the governance structure is the
“framework within which the integrity of a transaction is decided”. He further added that
“because contracts are varied and complex, governance structures vary with the nature of the
transaction”.

A collaborative governance framework has four components:

1. A relationship management structure (how the parties work together to make both day-
to-day operational decisions as well as strategic decisions)
2. A joint performance and transformation management process designed to track the
overall performance of the partnership
3. An exit management plan as a controlling mechanism to encourage the organizations to
make ethical, proactive changes for the mutual benefit of all the parties.
4. Compliance to special concerns and regulations, which include the more traditional
components of contract compliance

Contracts and trust

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Another dimension of contract management relates to the interplay between contracts and
trust. In particular, management scholars have discussed the nature of the relationship
between contract and trust development. On the one hand, some have argued that contracts
and trust would substitute each other; that is, the use of one mechanism decreases the
advantages of the other. On the other hand, others suggest contract and trust complement
each other; that is, the use of one increases the benefits of using the other mechanism.

Public sector contract management

In the UK public sector, concerns were raised by the House of Commons Public Accounts
Committee in 2009 regarding resourcing and training in relation to contract management. The
committee reported that Contract management standards were published in 2014 by the
Crown Commercial Service, and have been updated periodically.[19] These standards were
developed as a result of a 2013 "Cross Government Review of Major Contracts", commissioned
by the Cabinet Office to assess the management of major contracts held by the companies G4S
and Serco, and led by Bill Crothers, the government's Chief Procurement Officer. Having
highlighted previous failings, by September 2014 the UK's National Audit Office (NAO) felt that
the government was "starting to improve how it manages its contracts", but important
improvement work remained to be done. In December 2016 the NAO re-published a good
practice contract management framework which had been first published in 2008 with the help
of the Office of Government Commerce, then part of HM Treasury. The NAO "believed", based
on practitioner feedback, that this framework was "one of the best references for the basic
tasks necessary for good contract management".

As of April 2021, the UK government has in place a "Contract Management Capability

Programme" aiming to develop the skills of government staff involved in contract management
roles.

In the United States, the National Contract Management Association and the National
Association of Government Contractors offer certification in the skills required for government
contract management.

The Contract Labour (Regulation and Abolition) Act, 1970 provides for regulation of the
employment of contract labour and its abolition under certain circumstances.

It covers every establishment in which 20 or more workmen are employed on any day of the
preceding 12 months as ‘contract labour’ and every contractor who employs or who employed
on any day of the preceding 12 months, 20 or more contract employee. It does not apply to
establishments where the work is of intermittent and casual nature unless work performed is
more than 120 days and 60 days in a year respectively (Section 1). The Act provides for setting

33
up of Central and State Advisory Contract Labour Boards by the Central and State Governments
to advise the respective Governments on matters arising out of the administration of the Act
(Section 3 & 4). The establishments covered under the Act are required to be registered as
principal employers with the appropriate authorities. Every contractor is required to obtain a
license and not to undertake or execute any work through contract labour, except under and in
accordance with the license issued in that behalf by the licensing officer. The license granted is
subject to conditions relating to hours of work, fixation of wages and other essential amenities
in respect of contract as prescribed in the rules (Section 7 & 12).

The Act has laid down certain amenities to be provided by the contractor to the contract labour
for establishment of Canteens and rest rooms; arrangements for sufficient supply of
wholesome drinking water, latrines and urinals, washing facilities and first aid facilities have
been made obligatory. In case of failure on the part of the contractor to provide these facilities,
the Principal Employer is liable to provide the same (Section 16, 17, 18, 19 and 20).

Many organizations have contract employees. Such organizations, who are the principal
employers, need to ensure that they adhere to the statutory compliances. Compliance with
labour law and industrial law has accumulated tremendous momentum for the last couple of
years. Compliance for contractors under the Contract Labour (Regulation and Abolition) Act,
1970 (CLRA) is more challenging because in case the contractor fails to adhere to the law a
principal employer is accountable. From a risk management perspective, this area is salient
considering the legal implications and reputational risks attached to non-compliance.
Moreover, one needs to be adept to understand the labour laws, requiring additional
managerial attention over and above the routine internal audit function.

The organization of the Chief Labour Commissioner (Central) also known as Central Industrial
Relations Machinery is an apex organization in the country responsible for maintaining
harmonious industrial relations mainly in the sphere of central Government. In pursuance of
the recommendation of the Royal Commission on Labour in India, the organization was set up
in April, 1945 by combining the former organizations of the conciliation Officer (Railways),
Supervisor of Railway Labour and the Labour Welfare Advisor. It was then charged mainly with
duties of prevention and settlement of industrial disputes, enforcement of labour laws and to
promote welfare of workers in the industrial establishments falling within the sphere of the
Central Government. It started with a small complement of staff comprising Chief Labour
Commissioner(C) at New Delhi, 3 Regional Labour Commissioners at Bombay, Kolkata & Lahore,
8 Conciliation Officers and 18 Labour Inspectors. The Conciliation Officers and Labour Inspector
were re-designated as Assistant Labour Commissioner (C) and Labour Enforcement Officer (C).
The organization was further augmented gradually consequent upon increase in the number of
labour legislations in the post-independence period, increased industrial activity in the country

34
and growing responsibilities of the organization by establishing regional offices at Kanpur,
Dhanbad, Madras, Asansol, Ajmer, Hyderabad, Bhubaneshwar and an office of Dy.CLC(C) at
Dhanbad.

In order to secure better conciliation, preventive mediation and more effective enforcement of
labour laws, a scheme to further strengthening of the Central Industrial Relations Machinery
was approved under the sixth five-year plan. As a result, three more regions with headquarters
at Guwahati, Chandigarh and Bangalore were created during 1981-82. Three more new regions
with Headquarters at Ahmedabad, New Delhi and Cochin were created under the seventh five-
year plan in 1987-88. Two new regions Dehradun and Raipur with headquarters at Uttaranchal
and Chhattisgarh respectively were created in the year 2005 by reallocating officers and staff
within the existing strength of the officers and staff. Contract Labour Management (CLM) is an
important process in any enterprise. Contracting helps in improving the bottom-line while
keeping the liabilities limited.

Today, it is almost unavoidable for any principal employer not to avail services of contract
workers. However, due to compliance, safety & security issues, accidents, periodic medical
check-ups etc., the entire contract management process becomes a complex subject for the
departments like HR, security & facilities etc. SAVIOR contractor labour management module is
a comprehensive software with features designed specifically for your business. The module
comes complete with specific contractor names and dates of expiry of the contracts.

The Contract Labour Management System (CLM) developed by SAVIOR is based on Biometric
Fingerprint Technology where all the labour are registered with their Fingerprint and other
details which can be used for verification as well. Only the authorized labour will enter the
premises based on the quota defined. This will help the company in a big way to manage the
data of all the labour to avoid any fraud, get proper manpower as required and manage them
efficiently through the system.

Contract labour management system is a web-based system for employers to have a better
check and control over their contractors and the labour under them. With our contract labour
management system, organizations are able to implement security norms that help create a
safe & secure work environment.

Addressing compliance issues proactively is crucial for organizations, surpassing the traditional
post-mortem approach. To meet the stringent requirements of Labour Law and the Factories
Act, many organizations opt for conventional solutions like attendance systems and
consultants. Unfortunately, this often results in a reactive handling of non-compliance issues.

35
Labour work stands out by offering Real-Time Compliance Management, enabling organizations
to prevent non-compliances before any damage occurs. By implementing turnstile locking in
real-time, Labour work ensures immediate restriction of entry in the event of non-compliance.
Various compliances related to Labour Law and the Factories Act can be seamlessly enforced
using this innovative system, and so does safety training. In addition to its real-time capabilities,
Labour works promotes proactive communication by allowing organizations to send advanced
Email/SMS notices about potential non-compliance issues. This feature empowers contractors
to take corrective action promptly, mitigating risks before they escalate, just as it does with
Emergency assembly point. However, should corrective measures not be implemented in a
timely manner, Labour work offers the functionality to block entry, effectively preventing non-
compliances.

Safety is a paramount concern for organizations today. While it may be impossible to prevent
every untoward incident, preparedness and continuous training pave the way for a secure
working environment. Training can be imparted in various ways, but the traditional classroom
approach to safety training tends to become monotonous and can prove inefficient due to
corner-cutting, and the same is true for Scrum’s Emergency Assembly Point.

With the Safety Training construction, organizations can adopt a 360-degree approach to safety
training. This ensures that all stakeholders receive training tailored to their risk exposure and
aligned with the overall impact on the risk mitigation plan. This approach is particularly
beneficial during the "Change Behavior Phase" and "Evaluation Phase" of Behavior Based Safety
(BBS), contributing to enhanced safety awareness. Labour Management System offers similar
help when it comes to handling labors, reducing immense physical labour.

Labour management involves the strategic planning, allocation, and supervision of a workforce
to meet organizational goals. Its significance lies in optimizing productivity, resource utilization,
and employee satisfaction. Introducing a Safety Training as part of labour management
initiatives reinforces safety protocols, enhances training efficiency, and contributes to a safer
and more compliant working environment.

Effectively managing compliance within a business involves three key phases: identification,
implementation, and monitoring. Identification entails recognizing relevant regulations and
standards. Implementation involves integrating compliance measures into operations.
Monitoring includes regular assessments and audits to ensure ongoing adherence. Utilizing a
Safety Training Kiosk assists in seamlessly implementing and monitoring compliance, especially
in areas related to workforce safety and training.

A Contract Labour Management System (CLMS) is a comprehensive solution that oversees the
engagement, deployment, and compliance of contract labor. Its pivotal role in organizational

36
governance lies in ensuring transparency, regulatory adherence, and efficient management of
contract workforce, promoting compliance with labor laws and organizational policies. The
Smart Assembly Point further streamlines the evacuation process, enhancing overall safety
governance.

The Contract Labour Management System (CLMS) boasts distinctive features like automated
onboarding/offboarding, real-time attendance tracking, and compliance monitoring. Its
functionalities encompass contract worker profiling, scheduling, and robust reporting, providing
organizations with a centralized platform for efficient contract labor management. The Smart
Assembly Point is a key element, ensuring safety and security in tandem with CLMS
functionalities.

Contract labour management software mitigates risks and ensures ongoing compliance by
automating regulatory checks, managing contract labor documentation, and providing real-time
compliance insights. The software's integrated features, coupled with the Smart Assembly
Point, contribute to a proactive risk management approach, ensuring that organizations adhere
to labor regulations and industry standards consistently.

Yes, contract labour management software is designed to be highly customizable, allowing

businesses to tailor the system according to their unique needs and requirements. This
flexibility ensures that the software aligns seamlessly with specific business processes,
enhancing efficiency and effectiveness.

The contract labour management system plays a crucial role in streamlining compliance
processes by automating tasks, providing real-time insights, and integrating with the Visitor
Management System. This results in significant time and resource savings as compliance
workflows become more efficient, reducing manual efforts and ensuring regulatory adherence.

Contract labour management software leverages robust data analytics and reporting tools to
identify compliance trends and areas for improvement. By analyzing data related to contractor
activities, the software enhances decision-making. Integration with the Visitor Management
System further ensures comprehensive insights, allowing businesses to proactively address
compliance challenges and continuously improve their processes.

The contract labour management system plays a vital role in ensuring compliance by providing
a centralized platform that aligns with regulatory standards across diverse industries and
geographical regions. Its flexibility and adaptability allow businesses to implement and adhere
to specific compliance requirements, fostering a comprehensive and globally compliant
approach.

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Yes, businesses utilizing Real-Time Compliance Management software benefit from additional
support services, including technical assistance and troubleshooting. The software provider
typically offers comprehensive support to address any technical issues, ensuring smooth
implementation, continuous functionality, and prompt resolution of potential challenges.

The contract labour management system aligns with current industry standards and best
practices in compliance management by incorporating the latest advancements and adhering to
regulatory requirements. Its integration with the Visitor Management System ensures that
businesses stay current with industry standards, fostering a proactive approach to compliance
and upholding best practices in workforce management.

A strong understanding of contract management is essential to successful commercial

outcomes for your business and an important part of your professional skillset.

Part of your role as a project manager will probably involve managing contracts with your
clients, contractors or other third parties. This guide aims to equip you with fundamental
contract management knowledge so you can start to confidently oversee contracts for your
organization.

Put simply, contract management is the process of managing legally-binding agreements with
customers, employees, vendors, or contractors from creation to execution.

As a project manager, contract management is one of the key project management skills you’ll
need in your toolbox. But contract management doesn’t travel alone. It goes hand in hand with
contract administration.

Technically, contract management refers to activities carried out after a contract is signed to
ensure that the parties perform their obligations under the agreement. In contrast, contract
administration is the work done before a contract is signed. For simplicity, we won’t distinguish
between the two in this article.

Effective contract management can be time-consuming. Often only larger organizations employ
dedicated contract managers. However, as project contracts become increasingly complex,
contract management has become a vital part of project success. As a project manager, you
might be responsible for overseeing the contract process from beginning to end. This could
include establishing a business case, then creating, executing, and optimizing your
organization’s contracts

Effective contract management helps ensure you successfully deliver the agreed project
outcomes while achieving commercial success.

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Like with project management itself, the ability to influence a successful outcome in contract
management is greatest at the beginning of the process and it diminishes with time.

“The contract is a record of the agreement between the parties, so getting it right at the start is
critical. If there is one catchword to bear in mind when preparing a contract, it is ‘clarity’.
Ambiguity, vagaries, and unstated assumptions are fertile ground for dispute.”

Contract management strategy

When embarking on a new contract, the first step is to put a strategy in place so that everyone
involved understands the goals of the process. A successful strategy should cover:

 the financial returns or other benefits brought to the business upon successful
completion of the contract;
 what the organization expects from a supplier in terms of deliverables, responsiveness,
and any other factors;
 what obligations your organization has to the third party;
 how you’ll address disputes; and
 importantly, risk allocation.

The strategy is high-level and focuses on achieving efficiency and cost-effectiveness. For the
nitty-gritty details specific to the contract you’re working on, you’ll also want to put a contract
management plan in place.

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CHAPTER -IV

Findings

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 At Pavithra constructions, I have observed that there was no child labour in the plant as
many of the contact workers have been working for more than a year and many of them
were married and many have been educated.

 The workers are free to leave the job after they finish it, they were not asked to deposit any
money for employment and the contractor does not ask them to pay back any money after
the labour receives the wages. From the above observations it was clear that there is no
forced labour.

 The contractor is providing them with the necessary personal protection equipment like
helmet, safety shoes etc.

 It is also observed that the workers were aware of the risk in the job.

 Every worker has been taking necessary precautions for carrying out all kind of hazardous
jobs.

SUGGESTIONS

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 As a large amount of physical work has to be carried out by the contract labour, it is
necessary that they have to be given importance and provided with the improper
facilities that are required.

 Basing on the survey the contract labour was not provided with proper sanitation
facilities. My suggestion is to provide proper sanitation facilities, which will lead to still
better working environment.

 As the workers have the ESI facilities, they are to be medically checked periodically.

 It is necessary to know that the worker is in a healthy condition so that he will be

suitable to carry on with his work well.

 The contract workers are also part of the organization operations so the organization
must proper working conditions and take steps for their safety & welfare.

 The contract labour should be offered festival bonus by the management.

CONCLUSIONS

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 In the present competitive world, many organizations are trying to get rid of the contract
labour, as they have to provide necessary statutory facilities. On the other band Pavithra
constructions is putting a lot of effort to maintain the contract Jabour; by giving them all the
necessary facilities. The reason being that contract labour is comparatively cheaper and can be
employed when they need arises. The organization can cut down its expenses by going for
contract labour. In Pavithra constructions, contract labours are mainly efficiently. Taken good
care and their services are utilized productively.

The nutshell on the survey of contract labour management is that Pavithra constructions is
taking good care of the contract labour through their respective contractor. Pavithra
constructions is a leading base metal producer and exceptional in its technological versatility
coupled with vertical integration in several metals is a constituent unit of USE b 2 million
Sterlite group. under the umbrella of Vedanta Resources placed. It is the only company in the
country covering the entire filed from exploration, mining and concentrating to Refined zinc
and lead metals, chemicals and then marketing. The management was cager to hear about the
various facilities provided to then by their contractor. The survey has given a very crystal.

The conclusion of contract labor management at Pavithra Constructions involves ensuring clear
terms and conditions for both parties, efficient communication channels, compliance with labor
laws, regular monitoring of performance and progress, timely payments, and resolving any
disputes swiftly to maintain a harmonious working relationship.

BIBLIOGRAPHY

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 REFERENCE BOOKS
 "Managing Contracted Services in the Nonprofit Agency: Administrative, Ethical, and
Political Issues" by Jeffrey L. Brudney and J. Steven Ott
 "The Contracting Organization: A Strategic Guide to Outsourcing" by Dave Griffiths and
Neil M. Small
 "Strategic Sourcing in the New Economy: Harnessing the Potential of Sourcing Business
Models for Modern Procurement" by Bonnie Keith and Kate Vitasek
 "Contract and Risk Management for Supply Chain Management Professionals" by Robert
J. Trent

WEBSITES
 www.contractlabourmanagement.com
 www.contractlabourwikipidea.com

Journals
 Human capital
 Human resources management
 Labour economics

Questionnaire

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. How many earning members are there in your family?
a) only one b) two c) three d) four

2.Do you get weekly off in 7day period?

a) Yes b) No

3. How long back have you been medically examined?

a) 30days b) 2months c) 3months d) 1year

4. Do you find any difficulty to get portable water?

a) Yes b) No

5. how many hours do you work every day?

a) 8 hrs. b) 9hrs c) 10hrs d) 11 hrs.

6. In case you work on more than working hours, do you get

over time pay?
a) Yes b) No

7. How much wage you get if you work for 26 days?

a) 70% b) 75% c) 80% d)90%

8. Have you deposited money for employment?

a) Yes b) No

9. Up to which level have you studied?

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 a) 10th b) Intermediate c) Degree d) uneducated

10. What do you expect from your contractor to provide for

you?
a) more facilities b) bonuses c) long term contract
d) well management

11. Do you get any refuses to pay from contractor in your

working days?
a) Yes b) No

12. Do you have union to this contract?

a) Yes b) No

13. Did your contractor maintain attendance about labour?

a) Yes b) No

14. Did you get labour license?

a) Yes b) No

15. Do you eligible for pension scheme under this contract?

a) Yes b) No

16. Did you get insurance policy from this organization?

a) Yes b) No

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17. Did you verify contract labour gate entry management
process?
a) Yes b) No

18. Do you take necessary precautions for carrying out any

critical jobs?
a) Yes b) No

19. Does your contractor ask you to pay back some amount after
you receive your wage?
a) Yes b) No

20. Did you satisfy with your contractor management system?

a) Yes b) No

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