Construc)on

Management-Project Implementa)on
Tendering :-The points to be kept in view in issue, receipt & acceptance of tender documents are enumerated below:- No)ces invi)ng Applica)ons for issue of Tenders- Published in News papers & Indian Trade Journal. In addi)on, published in respec)ve web sites !on other than of tender ( normally Selec)on of Contractors for issue through tender selec)on CommiIee). Rejec)on of Applica)on for issue of tender is done by the accep)ng ocer. Issue of Tender documents on payment(mostly) Period of submission of Tenders etc is specied in tender document

Construc)on Management-Project Implementa)on (Contd)

Tenders accompanied with Earnest Money is to be submiIed by the contractors on or before specied date & )me given in tender Documents. Tender scru)ny & acceptance of tenders Re-tender of Tender ( If required) Dispatch of Acceptance leIer
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Legal Requirements, Types of Contracts

Deni)on of Contract :- Every set of promises forming considera)on for each other is an agreement An agreement which is enforceable by law is a Contract An agreement if made with free consent of par)es competent to contract , for a lawful considera)on & with a lawful object is a contract. Legal Requirements:- Par)es - Existence of two or more par)es. Par)es to be competent Considera)on- Promise or set of promises made Other Requirements- like must not be in restraint of legal proceedings, uncertain meaning of contract Act etc.
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Legal Requirements, Types of Contracts (Contd)

Contract Voidable at Incep)on-- When Consent caused by- Fraud Coercion Mis-representa)on Undue Inuences Contract Voidable by subsequent default When Oer of performance not accepted One party prevents performance of reciprocal promise When A party fails to perform at the )me xed
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Types of Contracts
Lumpsum Contracts:- Based on Bills of Quan))es (BQ) Based on pre-pricing Based on Drawings & Specica)ons Sale of Buildings for demoli)on, removal & clearance of site Piece work for specic job Contracts for Specialist consultancy services
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Types of Contracts(Contd)
Mseasurement Contracts Item rate Contracts Term Contract for ar!cers Work(TC) Percentage rate Contract Rate contract for supply of stores, materials & furniture Contract for handling & conveyance of stores Piece-work Contract Agreement for appointment of auc!oneers for disposal of surplus buildings
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Prepara)on of Tender Documents- Important Provisions

Devia)on limit Schedule of Minimum fair wages Schedule of Supplementary Rates Appoin)ng authority for appoin)ng Arbitrators Instruc)ons to Tenderers Correct pre-pricing ( Contracts based on Pre- priced Schedule) Contd
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Prepara)on of Tender Documents- Important Provisions (Contd)

Correct Quan))es (in Item rate Contracts) Issue of Stores, T & P on hire to Contractors Hire of Transport Materials obtained from Demoli)on of Buildings. schedule of supplementary rates General Condi)ons of Contract(IAFW-2249) Special condi)ons(including yard s)cks ) Par)cular Specica)on List of Drawings applicable
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Categories Of Persons & Bodies who are par)es to Contract

Individuals Partnerships-An associa)on of two or more individuals formed for doing Business Limited Companies-Associa)ons of individuals registered under Companies Act Corpora)ons other than Limited Companies- Associa)ons of individuals incorporated under statutes such as Trade Union Act, Co-opera)ve socie)es Act & Socie)es Registra)on Act
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Earnest Money Deposit (EMD)

EMD is also known as Bid Security. To safeguard against a bidders withdrawing/altering its bid during the bid validity period in the case of adver)sed or limited tender Enquiry , EMD is obtained from the bidders , except those who are registered w ith Department concern. An amount of EMD is normally 2 to 5% of es)mated cost. EMD is accepted as D/D, Fixed deposit, Bankers cheque or Bank Guarantee. Valid for a period of 45days beyond nal tender validity period.
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Performance Security
To ensure due performance of the contract , Performance Security is obtained from successful Bidder, awarded the contract. An amount is 5 to 10% of value of contract. Normally remain valid for a period of 60 days , beyond date of comple)on of over all contractual obliga)on. The security is forfeited & credited , in the event of Breach of contract.
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