ASSIGNMENT

National Institute of Construction Management and Research

SODE OFFICE

NAME - Punyadeep Roy

REG. No. - 216-01-11-50558-2172

Course No. - PGCM 23

Course Title - Contracts Management

Assignment No. - 3

Date of Dispatch -

Last date of receipt -

Of Assignment at SODE office

ASSIGNMENT
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 Contract administration and monitoring is the most important area of

construction management. Contract administration process start right from the

day work is assigned to the contract. Discuss any project contract currently in

progress with your company and how administration and monitoring is being

done. Draw the organization chart for the activity and explain all the function

carried out. Do you think the system is achieving results? Discuss.

1. INTRODUCTION

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 The Indian contract Act, 1872, defines an agreement as Every promise and
every set of promises, forming the consideration for each other is an
agreement. An agreement enforceable by law is a contract. The essential
elements required for formation of a contract have been stated to be:
All agreements are contracts if they are made by the free consent of parties
competent to contract, for a lawful consideration and with lawful object, and are
not hereby expressly declared to be void.
Essential conditions required before the formation of legally valid and binding
contract are as follows:
The contract must be between at least two persons the person under an
obligation and another entitled to enforce the obligation:
The persons making the contract ought to be of sound mind when
contracting. A juristic person too can enter into an agreement:
Parties must be ad idem about the subject-matter of the contract and must
have understood it in the same sense while entering into the same:
There must be lawful consideration for doing the act: and here must exist
an intention of creating a legal relationship.
While entering into contract with the Government the requirements of
Article 299 of the constitution of India have to be complied with.

NAME OF PROJECT*

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Presently, I am working for XYZ India ltd., a Thermal Power Project situated in Tamil Nadu.

*Note: The project has been assumed to be hypothetical as I am working in a consultant

organization, and the assignment is from a contractor/engineer point of view.

CONTRACT BRIEF

A Contract has been awarded to ABC Limited for execution of Civil, Miscellaneous Structural
and Architectural Works for the Thermal Power Project in Tamil Nadu.

Being the Section in-charge for Main Plant work to be carried out, it was necessary for me to
read thoroughly and note down any special clause, terms of payments and details which could
become items of conflicts later. Yet I have already read the contract during tendering but now it
is the matter of more concern to read the contract carefully and if any discrepancies see them to
resolve it prior to start the work.

TERMS AND CONDITIONS OF CONTRACT

Instruction to Tender:

Construction of Civil works, Miscellaneous Structural

Name of Work works and Architectural Works of XYZ Thermal Power
Project.
Time of Completion 34 months
Mobilization Within 1.5 months after acceptance of Work order
Every stage of erection i.e. weekly ,fortnightly and
Program submission
monthly
Defect Liability Period 12 Months
Amount of Security
Deposit & Retention 5% of Contract value
Money
Rupees Two hundred twenty Crores Fifteen Lakh Thirty
Total contract price
Nine Thousand one Hundred Nineteen only.
Mobilization Advance 5% of Contract Value
Submission of Bills RA Bills on Monthly Basis

SCOPE AND SPECIAL TECHNICAL REQUIREMENTS

1.00.00

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INTENT OF SPECIFICATION

1.01.00

The intent of these specifications is for execution of Civil, Miscellaneous Structural and
Architectural Works XYZ Thermal Power Project, West Bengal. .

1.02.00

These Technical Specifications cover the technical requirements for the Supply/
Construction/ Fabrication and Erection/ Installation of complete Civil, Miscellaneous
Structural and Architectural Works. These Works shall have to be carried out both below and
above ground level.

1.03.00 The Technical Specification is intended for the general description of the works,
quality and workmanship. These Technical Specification are however, not intended to cover
the minute details of Works and Workmanship. The execution of Works and the Workmanship
shall be according to the description given in the schedule of items, Released for
Construction drawings and relevant Indian standard codes. In absence of relevant Indian
standards codes, the execution of Works and the

Workmanship shall be according to the best prevailing engineering practices and/ or to the
recommendations of relevant British and/ or American standards and/ or to the instructions of
Project Manager.

2.00.00

SCOPE OF WORK

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2.01.00

The Scope of Work under this Work Order shall include:

a. All Civil Works for construction of foundations for all equipments, buildings
and footings for supports of pipes, cables, racks, ducts etc. and other
miscellaneous items for the Power Project.
b. All Civil and Architectural Works for super structure of all buildings for the
Power Project.
Miscellaneous Structural steel Fabrication and Erection Works including Sandwich
Color Coated Metal Sheets in cladding and decking (wherever applicable) for all
equipment supports, superstructure of buildings, trestles, pipes and cable racks,
supporting structures etc. for the Power Project except for the following where the
scope is limited to only Civil and Architectural Works.

TECHNICAL SPECIFICATIONS

Scope and Special Technical Requirements

Main Power House i.e., T.G. Bay, Deaerator Bay, Control Tower,
Mill Bunker building including bunkers,
ESP/ VFD control room building,

Supply/ providing, mobilizing of all manpower, construction material, tools & tackles,
plants including batching plants (with digitalized display and with print out facility),
transit mixers, concrete pumps with boom placers, high pressure pumps along with
the required accessories and spares, dewatering, sheet piling, shoring, strutting
shuttering, scaffolding etc.
Structural steel, Reinforcement steel, Cement (OPC/ PPC), Fly-ash and other Items as
specifically indicated in the item description under the Bill of Quantities (Schedule I)
will be supplied by the Employer free of cost to the Contractor. However all activities
required for incorporating the Employer issued materials in the Works are in the scope
of the Contractor including taking delivery from the Employers Stores, handling and

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 transportation from the Employers Store to Contractors Store and from there to work
place, accounting, reconciliation etc. The Contractor may be required to mix Fly ash
to the extent of 20% to 25 % with OPC, subject to Mix Design Criteria. The Fly ash
will be supplied free of cost by the Employer for this purpose. All the expenses related
to mixing of Fly ash with cement along with necessary mechanical mixing
arrangement comprising of Silos, conveyors etc. will also be in the Contractors
scope.
2.02.00

The broad scope shall cover but not be limited to the following Civil, Miscellaneous
Structural Steel and Architectural Works:

a) Excavation for foundation, trenches, ducts & channels etc. in all types of soil/ rocks
including dewatering as necessary.
b) Plain & Reinforced concrete works in substructure and Superstructure at all elevation.
c) Fabrication and erection of Miscellaneous Structural steel Works.
d) Slab on grade level and base preparation with boulder/ stone fill.
e) Brick masonry work with cement mortar at all elevations and levels.
f) Cement plaster internal and external on walls, columns, ceilings, parapet, etc.
g) Backfilling in plinth, around the foundation/ excavation etc.
h) Providing steel doors, windows and ventilators including glazing complete.
i) Painting of steel, masonry and concrete surfaces including ceilings, walls, doors,
windows etc.
j) All types of floor finishes including granite marble, IPS, heavy duty ceramic /
terrazzo tiles, ironite etc. as per drawing.
k) Roof water proofing treatment.
l) Roof gutters and rain water down comer pipes.
m) Plinth protection and garland drains.
n) All sanitary and sewage fittings and plumbing work for water supply and sewerage
including sewage treatment.
o) Septic tank, soak pits and inspection chambers.
p) Aluminum glazed doors, windows and partitions.
q) Staircases and lift shafts including pit and machine room.
r) Erection/ Installation of Color pre-coated metallic cladding and Color pre-coated
decking sheet.

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 s) Construction of drains up to main drains.
t) All steel structures are to be painted before erection as per specifications/ schedule of
items.
u) All temporary staging/ enabling work for concrete/ steel work are to be designed by
the Contractor and the same are to be reviewed by consultant/ Employer before
erection.
v) All other miscellaneous Civil, Miscellaneous Structural steel and Architectural Works,
though not explicitly mentioned above but reasonably required to complete all Civil,
Miscellaneous Structural steel and Architectural Works of Thermal Power Project,
1980 MW.
2.03.00

The Civil, Miscellaneous Structural steel and Architectural Works covered in this package are
related, but not limited to the following systems, buildings, structures and facilities:

1) Main Power House i.e., T.G. Bay, Deaerator Bay, Control Tower including all
auxiliary equipment foundations (excluding Structural Steel Work and Sandwich
Colour Coated Metal Cladding Sheet in line with Clause 2.01.00 (B) above).
2) Mill Bunker building including bunkers foundations (excluding Structural Steel Work
and Colour Coated Metal Cladding Sheet in line with Clause 2.01.00 (B) above).
3) Machine foundations for TG, BFPs (Motor Driven & Turbine Driven), PA, FD & ID
fan, coal mills etc.
4) Service building
5) ARCW pump house/ Air Washer buildings
6) DG Set buildings including foundations of panels and equipments.
7) Transformer yard civil works i.e., Transformer Foundations, Fire Barrier Walls,
Central Oil Pits, Paving, Fencing, Gates, Trenches Drains, Bus Duct Support
Foundations, Rail Track along 'A' Row, etc.
8) Foundations for Mill reject system.
9) Foundation for Boiler, ESP & all other foundations in Boiler & ESP areas including
duct support foundations.
10) ESP control building including all equipment foundations pedestals, trenches etc in
the area foundations (excluding Structural Steel Work and Color Coated Metal
Cladding Sheet in line with Clause 2.01.00 (B) above).
11) Earthing Mat in Power Project.

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 12) Paving, drainage & sewerage.
13) Pipe/ cable support galleries & trestles including foundations, in Power Project.
14) Pipe/ cable trenches/ pedestals/ duct-banks in Power Project.
15) Hume pipe crossings.
16) Storm Water Pump House, Rain Water Harvesting.
17) Fuel Oil System including Fuel Oil Unloading Pump House, fuel oil tank foundations,
fuel oil pipe foundations, dyke wall, storage & unloading yard area, equipment
foundations, MCC room, oil pits, fencing, yard area, etc.
18) Fire Protection System including Fire Water Pump House, Fire Water Storage Tank
foundation, Foam Pump House, Fire Water Booster Pump House, Hydro Pneumatic
tank foundations, compressor foundations etc.
19) Ash Handling Plant, Ash Water Pump House, Ash Slurry Pump House, Compressor
House, Switch Gear, Control Building, Silos, Equipment Foundation, Pipe Supports,
etc.
20) CW System (excluding Piping) including CWPH & Fore bay, RCC channel, Switch
Gear Room, etc.
21) PT Plant, DM Plant Chlorination System, Effluent Treatment, including lining with
Acid Resistant bricks/ Tiles, epoxy lining, Clarified Water Pump House , Storage
Tank(s) etc.
22) Civil and Architectural Works for Coal Handling Plant including Conveyor Galleries,
Trestle, Transfer Points, Crusher House, Electric Rooms, Control Rooms, Floors,
Pump Houses for D.S. System, Stacker Reclaimer Foundation, Drive House, Wagon
Tippler, Track Hopper, Tunnel & Pent House Emergency Reclaim Hopper etc.,
(Excluding Structural Steel Work).
23) Station LP Piping.
24) Air Conditioning, Equipment Foundation, Control Room etc.
25) Ventilation & Evaporative Cooling Air Washer Room etc.
26) Compressed Air System including Compressor House, Compressor & Drier
Foundation, and Air Receiver Foundation Equipment Foundation & Pipe Pedestals
etc.
27) Elevators in TG Area, Boiler Area, Service Building, Administration Building, ESP/
VFD Building etc.
28) Switchyard including all Equipment Foundation Fencing, Switch Gear Room, Control
Room etc.
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 29) Security Office, Barracks, including Fencing & Gates within Plant Boundary for
different systems like Transformer Yards, Switch Yards etc.
30) Permanent O & M Stores
31) Dozer Maintenance Shed. Loco Shed with facility for diesel filling.
32) Fire Station building
33) CHP maintenance building
34) Hydrogen Storage building
35) ii) Canteen
36) Administration Building & Auditorium, Parking Sheds
37) Watch Towers
38) Raw Water Pump House
39) Permanent Color Coated Sheets for cladding & decking.
40) Condensate Polishing Unit
41) Ash Water Re-circulating System
42) Rain Water Harvesting Pond Any other Buildings, Facilities, Foundations and
Miscellaneous Structural works though not specifically covered but required to
complete the civil, miscellaneous structural and associated works in all respect.
2.04.00

The Works to be performed under these specifications shall also include:

a) Preparation of scheme of excavation and dewatering, bar bending schedule, staging

drawings, fabrication drawings including Bill of Materials, cutting plans, gratings
drawings, sheeting drawings, working drawings for finishes (e.g. flooring/ floor
pattern, doors, windows, ventilators, louvers, cladding, false ceiling, roofing, toilet
block, pantry block, glass and glazing including structural glazing, sewerage, rain
water down comers, partitions, gates, rolling shutters, sliding shutters, etc.), panel,
etc., and obtaining the approval of the Project Manager. Contractor's scope shall also
include preparation of Data sheet for all bought out items and obtaining the approval
of the same from Project Manager. Mix Design approval from a reputed Lab of the
nearby area.
b) Execution of the works according to Released for Construction Drawings issued by
Employer and fabrication drawings/ working drawings/ scheme drawings, etc.
prepared by the Contractor and approved by the Project Manager, procurement of all
bought out items as per approved Data sheet, including providing all labor,

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 supervision, materials, consumables, scaffolding, fuel, construction equipment, tools
and plants, supplies, transportation, all sampling, testing and quality Assurance,
providing necessary facilities and equipment to Project Manager for carrying out the
inspection and quality check, setting out layout and levels, safety measures
conforming the general environmental requirements, carrying out construction and
erection in a mechanized manner, storage, repair/ rectification/ maintenance until
handing over, data sheets, records, etc, complying with statutory provisions and
applicable laws, etc.
c) Covering all contingencies, overheads, taxes, duties, levies etc. excluding Excise Duty
and Service Tax.
d) Covering all incidental items not specifically mentioned but reasonably implied and
necessary for successful completion of the Works.
e) Providing supervision by specialist agencies, wherever required.
2.05.00

All work shall be performed in accordance with drawings released by the Project Manager,
technical specifications, schedule of items etc. and directions of the Project Manager. Item/
items of work though specified in the schedule of item but for which detailed specifications
are not given in the technical specifications, shall be performed as per the best available
industry practice.

2.06.00

In case of conflict between the stipulations contained in various sections of these

specification and stipulations of Indian standards, codes, etc., the more stringent requirements
of the two stipulations shall prevail.

NOTE -

In the event of delayed completion of the works under the scope of the contract as per completion
period due to the reasons attributes to the contractor, the contractor shall be liable to pay LD@1% of
the contract price of the respective unit which is delayed for each completed week of delay or part
there of subject to maximum of 10% of the contract price.
Contractor shall undertake to pay the LD rates stipulated above and the employer shall not be
required to prove actual loss or damage.
LD payable by the contractor shall be deducted by the employer from outstanding payments due to
the contractor.

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Performance Guarantee in Form of Bank Guarantee:

The contractor shall carry out the work in accordance with the drawings, Schedule of
Quantities, specification, and other documents forming part of the contract.
The contractor shall be fully responsible for the performance of the selected equipments
installed by him at required parameters and for the efficiency of the installation to
deliver the required end results.
The complete set of l drawings is available in the Architect/Consultants office and
reference may be made to same for any details or information. The contractor shall also
submit the bank guarantee of 10% of the total cost of as the performance guarantee.
Guarantee that the performance of various equipment individually, shall not be less than
the quoted capacity; also actual power consumption shall not exceed the quoted rating.
Bye-Laws and Regulations:

The installation shall be in conformity with the Bye-laws, Regulations and Standards of the
local authorities concerned, in so far as these become applicable to the installation. But if these
Specifications and Drawings call for a higher standard of materials and / or workmanship than
those required by any of the above regulations and standards, then these specifications and
drawings shall take precedence over the said regulations and standards. However, if the
drawings and specifications require something which violates the Bye-laws and Regulations,
then the Bye-laws and regulations shall govern the requirement of this installation.

Payments Terms:

a) 5% of the contract price plus service tax shall be paid as initial advance within 30
days of receipt of the following documents from the contractor:
b) Invoice of 5%of the contract price plus service taxes.
c) Advance bank guarantee of 5% of the contract price shall be valid till successful
completion of the entire work with claim period of one month beyond validity .the
advance bank guarantee shall be reducing on quarterly basis based on adjustment of
received bills.

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 d) Contract performance bank guarantee of 5% (CPBG) of the contract price shall be
valid till the completion of the entire works facilities with a claim period of one
month beyond validity
e) Acceptance of the contract.
f) 85% of the contract price plus service tax shall be released against monthly
progressive bills on prorate basis as per mutually agreed billing schedule .The
payment shall be released within 30 days after receipt of clear invoice from the
contractor subject to following :
g) Amount due to the employer payable by the contractor.
h) The previous payments made, if any.
i) Holds suggested by the project manager.
j) Statuary deductions (if any).
k) Reconciliation of material handled by contractor.
l) Other deductions, if any.

The payment certified through RA-bills shall be treated as the advance payments against
the final bills. The quantities of work certified by the RA-bills shall not be considered as
final and the same will not entitle the contractor to raise, whatsoever.

Enclosures to RA-Bills:

The RA Bills must be submitted along with the names of the labour employed for the
work salaries paid to them amount of pf deducted from the salary of the labour employers
contribution amounts deposited in RPFC for the labors and copy of the challans for the
amount deposited in RPFC till previous month ,duly certified by the project manager..

Taxes, Duties and Levies:

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 The above contract price is inclusive of all taxes, duties and levies including vat
applicable on services rendered by the contractor, except service tax, which shall be
applicable extra by the employer. The employer confirmed that the vat shall not be
deducted from the contractors bill.
Any statutory variation of Service Tax Rate during the scheduled completion period and
extended period, if any would be to the account of the employer.
If there is a delay in completion of works due to the reason attributable to the contractor
and if there is any statuary increase in duties taxes levies during the period of delays the
employer shall not be responsible for payments of such additional values.
As regards to income tax, surcharge withholding tax or any other corporate tax, the
employer shall not bear any tax liability whatsoever of the contractor, irrespective of the
mode of contracting. The contractor shall be liable and responsible for payments of all
such taxes.
Materials and Equipment:

All materials and equipment shall conform to the relevant Indian Standards and shall be of the
approved make and design. Makes shall be strictly in conformity with list of approved
manufacturers.

Manufacturers Instructions:

Where manufacturers have furnished specific instructions, relating to the materials and
equipment used in this project, covering points not specifically mentioned in these documents,
such instructions shall be followed in all cases.

Electrical Installation:

The electrical work related to Plumbing & fire fighting services, shall be carried out in full
knowledge of, and with the complete coordination of the contractor. The electrical installation
shall be in total conformity with the control wiring drawings prepared by the contractor and
approved by the Architect/PMC. All plumbing equipments shall be connected and tested in the
presence of an authorized representative of the contractor.

The Plumbing & fire fighting system shall be commissioned only after the contractor has
certified in writing that the electrical installation work for Plumbing & fire fighting services has
been thoroughly checked, tested and found to be totally satisfactory and in full conformity with

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the contract drawings, specifications and manufacturers instructions. It is to be clearly
understood that the final responsibility for the sufficiency, adequacy and conformity to the
contract requirements, of the electrical installation work for Plumbing & fire fighting services,
lies solely with the contractor.

Completion Period:

SCHEDULE FOR ACHIEVEMENT OF MILESTONES

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 Sl.
MILESTONES
No.
Readiness of Foundations of
Boiler-Turbine-Generator (BTG),
I)
along with its associated
auxiliaries - Unit - 1
Readiness of Foundations of
Boiler-Turbine-Generator (BTG),
II)
along with its associated
auxiliaries - Unit - 2
Readiness of Foundations of
Boiler-Turbine-Generator (BTG),
III)
along with its associated
auxiliaries - Unit - 3
Readiness of Foundations and its
IV) associated buildings for Ash
Handling Plant
V) Civil Works for Transformer Yard
Readiness of Foundations and its
VI) associated buildings for Coal
Handling Plant
Readiness of C W Pump House,
VII) its associated building and
Forebay
Readiness of Foundations and its
VIII) associated buildings for Switch
Yard
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COMPLETION %(age) OF THE
SCHEDULE CONTRACT PRICE
Within 16.5 Months from
15
the Effective Date.
Within 19.5 Months from
15
the Effective Date.
Within 22.5 Months from
15
the Effective Date.
Within 22.5 Months from
5
the Effective Date.
Within 24.5 Months from
5
the Effective Date.
Within 21.5 Months from
10
the Effective Date.
Within 21.5 Months from
5
the Effective Date.
Within 20 Months from the
10
Effective Date.
 Readiness of Foundations and its
Within 18 Months from the
IX) associated buildings for Water 5
Effective Date.
Treatment Plant

Balance of Works (all minor

Within 34 Months from the
X) works, architectural finishing, 15
Effective Date.
etc.)

Bonus Clause:

The employer informed that it would pay a bonus of Rs. 1 Cr for 1 month earlier completion of
the milestone i.e. ready for synchronization of the respective unit or 2.5 Cr for 2 months early
completion date of 34 months.

On Site Training:

Upon completion of all work and all tests, the Contractor shall furnish necessary operators,
labour and helpers for operating the entire installation for a period of thirty (30) working days
of twenty four (24) hours each, to enable the Owners staff to get acquainted with the operation
of the system. During this period, the contractor shall train the Owners representatives in the
operation, adjustments and maintenance of all equipment installed.

Maintenance during Defects Liability Period:

A. Complaints

The Contractor shall receive calls for any and all problems experienced in the operation of the
system under this contract, attend to these within 24 hours of receiving the complaints and shall
take steps to immediately correct any deficiencies that may exist.

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B. Repairs

All equipment that requires repairing shall be immediately serviced and repaired. Since the
period of Mechanical Maintenance runs for one year concurrently with the defects liability
period, all replacement parts and labour shall be supplied promptly free-of-charge to the
Owners.

Uptime Guarantee:

The contractor shall guarantee for the installed system an uptime of 98%. In case of shortfall in
any month during the defects liability period, the Defects Liability period shall get extended by
a month for every month having shortfall.

The Contractor shall provide log in the form of disks and bound printed comprehensive log
book containing tables for daily record of all temperatures, pressures, humidity, and power
consumption. Starting and stopping times for various equipments, daily services rendered for
the system alarms, maintenance and record of unusual observations etc. Contractor shall also
submit preventive maintenance schedule.

Partial Ordering:

Owners through the Architect/Consultants reserve the right to order equipment and material
from any and all alternates, and /or to order high side and /or low side equipment and materials
or parts thereof from one or more tenders.

Power Requirement:

The contractor shall submit with their tender, their requirement of power at each of their
equipment.

Item Rate Contract:

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The contract is item rate and quantities set out in the B.O.Q. are tentative. Contractors shall
quote for each item at the place given in the bill of quantities and price quoted. Work shall be
measured in actual and paid as per terms set out in contract.

Firm Rate:

The rate shall be firm and shall not be subjected to any variation in cost of materials, labour or
due to any other condition except ordered by the Architect and provided for in the Contract.
The description given in B.O.Q. shall include all items required to complete a particular item.
Anything not specifically stated shall not be taken as an exclusion from the same item. Any
claim for extra Item or variation on this ground shall not be accepted.

Rate to include:

The rates quoted in the tender shall include all charges for tools, plants, temporary water and
electric connections (if any), overhead reservoirs, sheds for material ( of the contractor and as
issued by the employer), hire charges if any, maintenance of all services and equipment
clearing the site etc. for the execution of the works. It shall also include all taxes such as sales
tax, Octroi, Excise, or any other duties of any public body or corporation (duly authorized to
collect)

Extra- Item/ Variations:

All additional items and variance from those given in B.O.Q. and accepted by the architect shall be
treated as extra items. These shall be expressly ordered by the E.I.C. in writing with prior approval of
the architect prior to start of work by the contractor. The Contractor shall be paid as per similar item in
B.O.Q. In absence, actual rate analysis shall be prepared considering market rates of labor and materials
with the contractor's overhead profit as 15 % added to such cost thus arrived. The contractor shall have
to produce vouchers to support the rate analysis. The architect reserves the right to call additional
quotations for material, labor/ workmanship if felt necessary and rates approved by the architect shall be
final. The architect's decision shall not be subjected to arbitration.

Compensation by extension of time only:

The contractor shall not be entitled to any compensation for any loss suffered by him on
account of delays may be, including delays arising out of modifications to the works entrusted
to him or in any sub-contract agencies connected there with or delays in awarding contracts for
other trades of the project or in commencement or completion of such works or in procuring

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government controlled or other building material or in obtaining water or power connections
for construction purposes or for any other reasons what so ever and the employer shall not be
liable for any claim in respect thereof. The employer does not accept any liability for any such
besides the tender amount, subject to such variation as are provided for herein. However the
Employer shall compensate for the loss of time suffered by the contractor, by extension of time
as approved by EIC.

Standards to be followed:

At various places throughout this specification and the B.O.Q., reference is made to the
standards, specifications and the bye-laws issued by the Indian Standard Institution and other
similar organizations. These references shall in every case be deemed to include the latest
edition or issue of such standards, specifications and bye-laws including the revisions,
amendments and addenda subsequently issued. Where materials are not specified and standards
exist in respect of such materials, then the materials shall in all respects comply with the
relevant and current I.S.I. In such cases where I.S.I. do not exist, the specified manufacturers'
specification shall be followed; in absence of all these, the architects' instructions shall be
followed.

Temporary Works:

The contractor is entirely responsible for the design, construction, and maintenance
and removal of all temporary works employed in carrying out the contract. Within a reasonable
time (and in any case not less than fifteen days) before he intends to commence construction of
any temporary works, the contractor shall submit full particulars including drawings of the
same, for the approval of the ETT. The ETT's approval will in no way relieve the contractor of
his responsibility for the safety of the works, operators, adjoining property, structures or
services and compliance with appropriate regulations and codes of practice. Temporary works
supporting adjoining buildings, property and public utilities and roads shall also be submitted
to the appropriate authority for their approval if requested/required.

The temporary works shall be designed and constructed in such a manner as to enable the
permanent structures to be built around them without detriment to their effectiveness and due
allowance will be deemed to have been made for all necessary adjustments thereto to enable the
works to proceed.

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Price Escalation:

The rates quoted by the contractor shall be firm for the entire duration of contract and no price
escalation shall be allowed; with the exception or adjustment towards difference in basic price
for cement and steel.

ORGANISATION CHART

First of all we had to prepare a site-organization chart, indicating number of people to be

involved on the job and duty of each individual at site.

The work mainly constituted of civil work, planning work and human resources work.

First of all we had a project manager, whose main responsibility is to arrange all input such as
material, labour, plant and equipment. This duty was given to me by my company. Thus other
duty was to coordinate with the representative of the client, get quality control carried out
from time to time, work acceptance, measurement taken and bills raised for payments.

There were fortnightly meetings arranged, where a representative from the clients side,
representative from Architects, Consultants, and Contractors along with their team members
were expected to be present and discuss the progress of the work at site. This was a platform
where, problems faced by us as regarding any delays etc. could be directly discussed in
presence of everyone. Besides these were minutes and became records for future claims
if any. Clarifications for extra-items and the price escalations if any were also discussed
during these meetings.

METHOD FOLLOWED FOR ADMINISTER AND MONITOR

Our company is a diversifying in various fields of industries where it needs to be

experiencing in EPC (Engineering, procurement and commission) contract for different
power plants. Generally the contract has two components, viz. Civil Engineering and Electro-

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Mechanical component. Civil works are out sourced under separate works contract to be
monitored by the Project Manager for the purpose. Electro-Mechanical contract is again
subdivided in to activities like procurement, out or in sourcing the activities.

The out sourced activities are monitored by effective communication through daily progress
report, instructions, orders, etc. Record generation for rising of bill and history is done by
maintaining assorted registers for material received, quantities executed, letters, office notes
and formal exchange of communications. For quality and timely work I have to visit the site
daily, to check the entries in the register and to pass on the instructions on the spot in case.
Very frequent visit to the site activity make them efficient, quality conscious and more
productive. The bills for the work executed are submitted by the out sourced agency to be
vetted and recommended by me for payment.

RECOMMENDATIONS / CONCLUSION

Development of mutual trust and confidence amongst the parties to the contracts and the
decision makers is a very vital tool to complete the contracted work successfully and also
keep away corruption, claims and disputes. The spirit and not the sentence of a contract are

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significantly important. Intentions should always over rule the language and text of a
contract. Engineers, Manager and Administrators should not be unduly punished for the error
of judgment if their intentions were bonafide. Complaints relating to corruption should also
be screened on these bases through a critical analysis of the past record of the officers
concerned. Wrong doers should definitely be punished but at the same time real performers
who are not corrupt but take hard but unpleasant decisions through a speaking order should
not be harassed and de-motivated. If this happens, even non-corrupt officers will feel like
becoming corrupt.

BIBLIOGRAPHY / READINGS

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 Engineering contracts procurement and construction, Techno Legal
Concepts and Issuesby B.J.VASAVADA (BE CIVIL, LLB, FIE, MWWA,
FIWWA)
Lesson Book - Construction Contracts and Contracting by School of
Distant Education NICMAR
Internet

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