ASSIGNMENT

ESTIMATION AND QUANTITY SURVEYING

SUBMITTED TO: NINGTHOUJAM

JIBANCHAND SUBMITTED BY: MD.SAWAN HUSSAIN

ASSISTANT PROFESSOR 7TH SEMESTER,CIVIL ENGINEERING

DEPARTMENT OF CIVIL ENGINEERING REGD.NO.:20180100310

MANIPUR TECHNICAL UNIVERSITY MANIPUR TECHNICAL UNIVERSITY

Q1. What is contract? Who are contractor and what are their required
qualifications?

Ans: An agreement enforceable by law is Contract. The term contract, so far as

Public Works Department is concerned, means a written undertaking for execution
of works or supply of materials or for the performance of any service connected
therewith duly accepted and registered by the competent authority on behalf of the
Union or State Government.

The term Contractors mean Private individuals Partnership firm, Public or Private
Limited concerns who have made such an undertaking for the execution of works,
supply of materials or for service concerned therewith with the respective
Government.

The contractors should have an engineering organisation competent to deal with

works entrusted to them. Contractors at (i) for Sanitary installations and Water
Supply,(ii) For Electrical and Air conditioning must possess valid Plumbing and
Electrical Licences respectively. Each of them is expected to have the machinery and
equipment required for job. Their qualifications are further adjudged from (i) their
professional ability to understand and implement the contractual obligations and
subsidiary instruction given by the Engineer-in-charge of the Department, (ii) their
financial resources, (iii) their capacity to control labour, particularly by way of
regular payment of fair wages and observance of Labour Regulations, (iv) and their
zeal for maintaining reputation and integrity.

Q2. What are the essentials of a contract? Explain them.

Ans: Essential of Contracts are following particulars by those all agreements must be
made in ordered to constitute a valid contract.

1. That the contract shall be made by parties competent to contract ;

2. That the contract shall be made by free consent of the parties ;
3. That share shall be a definite proposal and its acceptance ;
4. That the contract shall be made so that the considerations and objects are lawful.
5. That the meaning shall be certain.

1. Parties Competent to Contract :- A person is competent to contract provided (a)

He is the age of majority according to the law to which he is subject. A person
who is not major according to law can break an agreement . No contract hall be
made by a subordinate authority who has not been directed or authorised to do
so.
2. Free Consent of the parties :- Two or more person are said to consent when they
agreed upon the same thing in the same sense. Consent is said free when
(a) It is not caused by under influence. The relation between the two parties
performing a contract are not such that one of the parties is in a position to
dominate the will of the other and uses that position to obtain an unfair
advantage over the other.
(b) It is not caused by committing or threatening to commit any act forbidden
by Indian penal code, or the unlawful detaining or threatening to detain
any person to enter into an agreement.
(c) It is not caused by fraud.
(d) It is not caused by misrepresentation.
(e) It is not caused by mistake. Where both the parties to an agreement are
under a mistake, the agreement is unavoidable.
3. Definite proposal and its acceptance :- Terms of contract must be precise and
definite and must be no room for ambiguity or misconstruction therein. When
one person signifies to another his willingness to do anything( here contract), he
is said to make a proposal. The communication of a proposal is complete, when
its comes to the knowledge of the person to whom it is made. The acceptance
must be absolute, unqualified be expressed in some usual and reasonable
manner. Acceptance is made performing conditions or receiving conditions.
4. The consideration or objects are lawful :- The consideration or object of an
agreement is said to be unlawful if forbidden by law or fraudulent or of such
nature that, if permitted it would defeat the provisions of any law or involves or
implies injury to the person or property of another or opposed by public policy
or regards as immoral by the court.
5. That the meaning shall be certain :- Agreement, the meaning of which shall be
certain or capable of being made certain.

Q3. Explain briefly the different types of engineering contract.

Ans: Following are the different types of contracts for execution of civil Engineering
Works.

1. Item rate contract,

2. Percentage rate contract,
3. Lump-Sum contract,
4. Labour contract,
5. Material supply contract,
6. Piece Work Agreement,
7. Cost plus percentage rate contract,
8. Cost plus fixed fee contract,
9. Cost plus sliding or fluctuating fee-Scale contract,
10. Target contract.

1. Item rate contract is also known as Unit-price contract or schedule contract :-

For item rate contracts, contractors are required to quote rates for individual items of
work on the basis of schedule of quantities furnished by the department. The
schedule indicates full nomenclature of the items as per sanction estimate, estimated
quantities and unit therein. While filling up the rates the contractors are required to
express the amount is figures and words and also to work out the cost against item.
The final total of the amount tendered for the work is also drawn up by them. This
type of contract is followed by Central Public works and Railway departments.

2. Percentage rate contract :-

In this form of the contract department draw up the schedule of items according to
the description of items sanctioned in the estimate with quantities, rates unknit and
amount shown therein. Thus the department fix up the items rates of the tenders(so
called as “item rate tender”). The contractors are required to offer to carry out the
work at per with he rate shown in the specific price schedule or percentage above or
below the rates indicated in the schedule of items of work attached to the tender. The
percentage above or below or at per tendered by the contractor apply on the overall
amount of quantities.

3. Lump-sum Contract :-

In this form of contract(P.W.D Form 12) the contractors are required to quote a fixed
sum for execution of a work complete in all respect i.e according to the drawing,
designs and specifications supplied to them with the tender within the specified
time.

The departmental schedule of rates for various items of works are also
provided which regulates the payment to the contractor in respect of the items of
works involved for any additions and alterations not covered by the original works.

4. Labour contract :-

This is a contract where the contractor quotes rates for item work exclusive of the
element of materials where supplied by the Department free of cost.

5. Materials supply contract or contracts for the supply of materials :-

In this form the contractors have to offer their rates for supply of the required
quantity of materials of exclusive of all local taxes, carriage and delivery to the
specified stores within the time fixed in the tender. This form of contract is generally
used when purchase of materials, viz., Bricks, stone ships, furniture, pipes and
specials are involved. All materials received should be examined and counted or
measured, as the case may be when delivery is taken.

6. Piece Work Agreement :-

The piece work agreement is that for which only a rate is agreed upon without
reference to the total quantity of work to be done or the quantity of work to be done
within a given period.

7. Cost Plus percentage rate contract :-

In the tendering work on a “Cost plus” basis the contractor is paid the actual cost of
the work, plus an agreed percentage addition to allow for profit. This type of
contract is generally adopted when conditions are such that labour and materials
rates are liable to fluctuate.

8. Cost Plus fixed fee contract :-

In this type of contract the contractor is paid by the owner an agreed fixed lump sum
amount over and above the actual cost of the work. This fixed fee shall cover
overheads and profit to the contractor.

9. Cost plus sliding or Fee scale contract :-

In this type of contract the contractor is paid by the owner the actual cost of
construction plus an amount of fee inversely variable according to the increase or
decrease the estimated cost agreed first by both the parties. Thus higher the actual
cost lower will be the value of fee and vice versa.

10. Target Contract :-

This is the type of contract where the contractor is paid on a cost-plus percentage
basis for work performed under this contract, and in addition he receives a
percentage plus or minus on saving or excess effected against either a prior agreed
estimate of total cost or a target value arrived at by measuring the work on
completion and valuing prior agreed rates.

Q4. Discuss the advantages and disadvantages of the following engineering

contract
i. Item rate contract
ii. Labour contract
iii. Materials supply contract
iv. Cost plus percentage rate contract
v. Target contract
 Ans:- Item rate contract

Advantages:

i. This form of contract ensures a more detailed analysis of cost by the contractor
and as such is more scientific.
ii. Since the contractor are to write of their individual rates of individual items in
figures as well as in words, it is not easy to form a ring during submission of
tender and allot a work to one of the contractors without competition.
iii. The contractors works out the rates of all items of the schedule in order to put in
the tender.

Disadvantages :-

i. The basis of this type of contract is the item wise rate offered by a contractor. But
the item wise amount which is calculated by the contractor by multiplying the
quantity of each item with the rate may be incorrect.
ii. Comparative statement of item rate tenders is more elaborates and
comprehensive and intelligent security is required.

Labour contract :-

Advantages:-

i. The materials stored by the Government are thus utilised.

ii. The increase in the cost of the work is checked inspite of any rise in the price of
such materials in the market.

Disadvantages :-

i. A large storage area is required to store the different kinds of materials and
constant guarding, etc are essential.
ii. Thefting from store, shortage of materials, difficulty during handing over storage
charge accounting all materials are constant troubles for a department.

Material supply contract:-

Advantages:-

i. Payment of this type of contract can be made promptly, and so the contractors try
to make the supply order even at less profit, resulting low cost of the materials.
ii. As the supply of materials does not worried due to loss materials, breakage,
damarage charges during transit.

Disadvantages:-
 i. Constant control for quality of materials to be received at several batches at
different times is required.
ii. During submission of tender intending contractors may form a ring to get the
supply order at a higher rare at different turns.

Cost plus percentage rate contract :-

Advantages:-

i. It has the merit that contracts can quickly be drawn up and agreed and also work
of an urgent nature put in hand without delay.
ii. This type of contract is suitable when work can not be executed by other type of
contracts at a competitive rate due to uncertainty and fluctuation in the market
rates of labour and materials.

Disadvantages:-

i. Close supervision and checking of delivery notes and involves which it involves
makes it unsuitable for works where the necessary staff is not available.
ii. It is to be the contractor’s advantage to make the cost as high as possible by
wasting material and employing inefficient workmen, as the contractor takes
little risk and his profit is assured.

Target contract :-

Advantages:-

i. The contractor is encouraged to use his skill and experience in keeping the cost as
low as possible .

Disadvantages:-

The contractor may show higher cost of construction and thus he gains more amount
even covering the penalty due to excess expenditure.

Q5. What is tender and tender form? What are the various terms and conditions
which should be included in a tender document in an engineering contract?

Ans: Tender: Tender is a written offer submitted by the contractors in pursuance of

the notification given, to execute certain work or supply of some specified articles or
transport of materials at certain rates with the terms and conditions laid down in the
tender documents.

Tender Form: Tender form is a printed standard form of contract giving standard
conditions of contract, general rules and directions for guidance of contractors. There
is also a memorandum for giving (i) General description of work, (ii) Estimated cost,
 (iii) Earnest money, (iv) Security deposit, (v) Columns for signature of contractor
before submission of tender, signature of witness to contractor’s signature and
signature of the officer by whom accepted.

Term and Condition:

I. Site Order Book: The contractor shall within ten days of the receipt of the
written order to take up work, supply at his own cost, one site order to the Sub
Divisional Officer / Assistant Engineer concerned.
II. Work Program: The contractor shall have to submit within three days from
written order to commence the work to the Engineer-in- charge a fully detailed
program showing the methods of construction, plant and temporary works he
proposes to employ for the construction of the works together with specified
sequence of operation for the purpose and time schedule of each such
operation in which the several portions of the work shall be completed.
III. Precaution and co-operation with other contractors: All precautions must be
taken to guard against chance of injury or accident to the occupants, users or
workers. The contractors must protect and support all utility service like water
pipe line, electric or telephone cable lines, gas line etc. fouling within his works
as per direction of the Engineer-in-charge.
IV. Idle Labour : No claim for idle labour would be entertained under any
circumstances.
V. Arrangement of land for storing or stacking of materials and spoils :- The
contractor should make his own arrangement for stocking and storing space
within the project site for materials in connection with the work.

Q6. What is Tender notice? Explain in short.

Ans: The tender notice or Notice Inviting Tender(NIT) papers are very important
documents on which call of tenders and subsequent agreement’s with the
contractors are based. It contains essential information in a standard printed from
such as name of the work and its location, estimated cost works, earnest money to be
deposited, last date of sell of tender papers, last date, time and place of receipt of
tender paper etc, time of completion, accepting authority etc.

Q7. What is valuation? Differentiate between value and cost.

Ans: Valuation is the art of assessing of present fair value of a property at a stated
time. Valuation of anything is an estimate of the value of that thing in terms of
money. It only attempts at suggesting the fair prices. It is based on certain facts and
indication and only after a judicious processing of such facts and indications we can
suggest the value or fair price of the property.
Difference between value and cost:

Cost means the actual cost of construction where as value means the present market
value or fair sale value which may not be the same to the cost of construction. Value
depend on supply and demand where and costs is a constant amount requires for
the construction. For and example, suppose a persons has constructed a nice out-
house at a desert place according to his liking at a cost of Rs 80,000/-. But just after
that he wants to sale the property which has a little value to the others choice and he
gets a maximum offers of Rs 40,000/-. The owner was about to sale his property, but
just at that time a plan becomes sanctioned to developed a big industry adjoining to
the area and subsequent growth of population starts. So due to demand the out-
house becomes valuable and he sales a price Rs.1,25,000/-. So, the value of the varies
from Rs. 40,000/-to Rs. 1,25,000/- but the cost remains same Rs. 80,000/-. Therefore,
value depends on amount on demand and supply where cost is a constant amount.

Q8. What is the required qualification of a Valuer? What are the functions of a
Valuer.

Ans: Qualifications of a valuer :

A valuer is an expert who can work out the market value of a property based on
scientific analysis and instance4s of sales. A good valuer is an engineer or architect
who must posses sound knowledge of the following subjects

1. Estimating and costing

2. Surveying and Levelling.
3. Planning and designing.
4. Experience in construction works.
5. Building bye-laws of the local bodies.
6. Law of easements.
7. Law of contract.
8. Land Acquisition and Town planning act.
9. Arbitration
10. Fire insurance
11. Central and local Government’s taxation.
12. Money market and rate of interest.
13. Zonal importancy of land and buildings.
14. Writing reports.

The function of a valuer is to determine the market value of a property in order to

help his client and also the courts when enquired for the same.

Functions of the valuer:

1. Purchase for investment or for occupation.
2. Tax fixation.
3. Sale.
4. Rent Fixation.
5. Insurance premium.
6. Mortgage value.
7. Compulsory Acquisition.
8. Speculation.
9. Betterment charges.
10. Auction bids.
11. Wealth tax.
12. Gift tax.
13. Probate.
14. Estate duty.
15. To determine the amount of court fee stamp.