ASSIGNMENT NICMAR/CODE OFFICE

Course No.: NCP-23

Course Title: Construction Contracts and

Contracting

Assignment No. :03

Date of Dispatch: 23rd May 2014

PROJECT NAME: PLUMERIA GARDEN GREATER NOIDA U.P.

SCOPE OF WORK :

Scope of work for the proposed Multi Storied Housing Complex with basement
below the tower shall broadly comprise of the following:
Areas:

Floor Area in Super Structure is 365559.97 sq.ft.

Floor Area in Basement is 25115.42 sq.ft.
Area of Raft is 30675.57 sq.ft.
The scope of work shall comprise mainly of carrying out construction work for the proposed
multi storied residential complex (Ground + 14 story maximum + machine room & roof top
water tank) covering approx. 365559.97sq.ft. of Super structure
floor area and approx. 25115.42 sq.ft. of basement floor area (under tower only).
The Contractor shall arrange all materials, labour & equipments as required for successful
completion of the work. Work shall be executed as per C.P.W.D. specification, Quality Plan,
BOQ Technical Specification attached to BOQ and as per approved drawings and direction of
Engineer In-charge of Crossings Infrastructure Pvt. Ltd. The site shall be handed over to M/s.
ABC Developers Pvt. Ltd. with complete excavation and laying of hard core surface. The Contractor
shall be completing the entire work of the proposed housing complex and handover the complete
apartments as per the following broad specification:Structure: Earthquake resistant structure duly vetted.
External Finish: Most Modern & Elegant finish with texture paint.

Internal Finish: All internal walls shall be plastered & painted in off white shade with oil
bound distemper & ceilings in white. Plaster of Paris punning &Cornices is to be done in
Drawing/Dining room and Bedrooms.
Flooring: Drawing/Dining/Kitchen to have vitrified Tiles. Bedrooms to have wooden
laminated flooring. Ceramic Tiles Flooring in toilets and balconies.
Doors/Windows: All external doors and windows are to be of UPVC/aluminium glazing. All
Internal and main entrance door frames in mirandi wood with Skin Moulded main door and
all internal with Flush door shutters duly Painted.
Hardware: All shutter hinges in steel. All internal and main entrance door frames with
aluminium powder coated fittings with mortice lock in bedrooms. All external doors and
windows with aluminium fittings.
Kitchen: Granite working platform with 2 ft. high glazed ceramic tiles above itwith stainless
steel sink. Independent RO system.
Electrical: All copper wiring in P.V.C. concealed conduit. Provision for adequate light and
power points as well as telephone & TV outlets with Modular Switches and protective
M.C.Bs.8
Water Supply: Underground and overhead water tanks with pumps for uninterrupted
supply of water.
Toilets: Provision for Hot & Cold water system without Geyser. Glazed tiles in pleasing
colours on walls up to door level. European W.Cs, washbasins &cisterns in white shade of
Standard make. Chrome plated fittings of standard make.

Water Proofing: Waterproofing of basements, all Terraces and toilet areas. Toilets and
Kitchen Sink areas to have false ceiling.
Services: Provision of 2 nos. lift/tower with complete machine room. ii) All Plumbing,
Sanitary and Electrical works as per specification inside the building and connection up to
the Main Feeder/Ring Main. iii) Storm Water and Sewerage line to be connected to main
feeder near the tower. iv) Fire fighting system inside the building with provision of fire
hydrant in each floor for all towers but no sprinkler system

TYPE OF CONTRACT:
Item Rate Contract: Also called a schedule contract, in this contract, the contractor
undertakes the execution of work on an item rate basis. The amount to be received by the
contractor depends upon the quantities of various items of work actually executed. The
payment of the contractor is made on the basis of detailed measurements of different items
of work actually done by him.
Suitability: The item rate contract is most commonly used for all types of engineering works
financed by public or government bodies. This type of contract is suitable for works which
can be split in to various items and quantities under each item can be estimated with
accuracy.

 In this type contract, there is no need for detailed drawings at the time of allotting
contract as in the case of lump sum contract. The detailed drawings can be prepared after
the contract is awarded.
Changes in drawings and quantities of individual items can be made as per requirement
within agreed limits.
The payment to the contractor is made on the actual work done by him at the agreed
rates.
Contract Data Sheet
Sr.

Clause Ref No.

Description

The Contract Data

No.
1

Company

Project Manager

Mobilisation Advance

Insurance

CAR Policy

10%

For amount of Rs.

.Validity .. Months

Workmens Compensation Policy

For amount of
Rs.Validity ..
Months

Third Party Insurance

For amount of
Rs.Validity ..
Months

Any other Insurance Cover

For amount of
Rs.Validity ..
Months

Time for Completion and Programme of

Work

10

Commencement of work

After days from

the date of the
Notice to so on

11

Material to be supplied by the Company

12

Tools, Plants and Equipment supplied by

the Company

13

Supply of Water & Electrical Power

1.5% OF THE R.A

BILLS

TIME SCHEDULE:
The time allowed for execution of the work indicated at scope of work shall be the essence
of the contract.
The work shall be carried out and completed strictly as per the following time schedule: Completion of total structure: 18 months from LOA
Total completion including finishing: 24 months from LOA

1.1.1 The activity wise time schedule shall be indicated in Bar Chart to be submitted prior to issuance
of Letter of Award. The Contractor shall strictly adhere to the time schedule of all activities as
mutually agreed.
1.1.2 Quantities given in the schedule (BOQ) are provisional. The quantity given in the BOQ may vary
up to any extent. The Contractor will have no claim on account of variation of quantities and shall be
liable to carry out the quantity under variation as per his item wise agreed rate. The overall variation
limit of the contract value shall be 30%.
1.1.3 The rates for all items covered under the BOQ or any other items which may crop up during the
execution are for all leads, lifts and heights.
2.0 The rates as agreed between XYZ Pvt. Ltd. And M/s.ABC Developers Pvt. Ltd. shall remain firm
and valid for a period of 30months beyond which the same shall be reviewed.
3.0 PAYMENT OF RUNNING ACCOUNT (RA) BILLS:
The Contractor shall submit monthly RA Bills by 1st of every month along with supported
measurement sheets. 70% of the certified amount shall be paid within 10 days and balance shall be
paid within 20 days of the certification of bill. The minimum value of interim Running Account Bills
shall not be less then Rs. 25 lacs. 5%security deposit shall be deducted from each Running Account
Bills. The cumulative amount of Security Deposit deducted from RA Bills shall not exceed Rs. 100
lacs.50% of security deposit so deducted shall be released within three months of virtual completion
of the work which would be certified by the Engineer-in-Charge and the Architect. Balance 50% shall
be released after completion of defect liability period of 12 months. The Contractor shall furnish
guarantee for anti-termite treatment towards satisfactory performance for a minimum 10 years
from the date of final completion of the works on an approved Performa.
4.0 ADVANCES

4.1 Types of advances Subject to the conditions provided herein, the Contractor may avail of the
following advances for the execution of the Works:
a. Mobilization advance
b. Advance against materials at site.
4.2 Mobilisation Advance
4.2.1 For completing preliminaries such as construction of site office, hiring of accommodation,
labour hutments, arranging electricity and water supply and movement of staff, labour plant and
machinery, an advance specified in the Contract Data and as required by the Contractor shall be
payable against a Bank Guarantee of a Scheduled Bank duly approved by the Company for an
equivalent amount of advance in a format acceptable to the Company
.4.2.2 Such advance shall be given only after the Contractor has submitted the Performance Security
and executed the formal Contract and the Company is rightly entitled to check that this Mobilization
Advance is utilized for the the purpose envisaged in the Contract
4.2.3 Recovery of Mobilisation Advance
Recovery of mobilization advance shall be made by deduction from the contractors bills
commencing after the first 10% (Ten percent) of the gross value of work duly certified is executed
and paid, on pro-rata percentage basis calculated @ 15% of the gross value of certified work billed
beyond 10% of the completed work in such a way that the entire advance is recovered by the
time80% (eighty percent) of gross value of contract is executed and paid. The Bank guarantee for the
advance shall be initially for the full amount and valid for a period of ________months beyond the
period of defect liability .period, and be kept renewed from time to time to cover the balance
amount and likely period of complete recovery.
4.3 Advances against Material at Site

Advance on account of main non-perishable construction materials required for incorporation in the
permanent Works, shall be paid on request of the Contractor after these materials are brought to
site, against an Indemnity Bond duly executed. The Indemnity Bond will be furnished in a Form
acceptable and approved by the Company. The advance shall be limited to 75% of the actual value of
the materials or the value as assessed by the Project Manager and the total advance on account of
construction materials at a time shall be limited to 3% (three percent)of original Contract Value or
likely average consumption of such materials for three months whichever is less and at any time the
total outstanding advance against material at site shall not exceed four percent of the original
contract value. The valuation of the average consumption of such main construction materials shall
be approved by the
Project Manager. For the purpose of valuation of the aforesaid materials, all incidental charges such
as packing, handling, freight, transportation, storage, etc shall be excluded. The Contractor shall be
bound to store the materials at the site of work earmarked for this purpose and shall not remove
them from the site or use them for any purposes other than execution of the Works. If any material
is rendered surplus, the Company shall not take over such materials, and the Contractor shall
remove the same from the site of work within 7 days from the date of completion of the Works.
4.4 Written Request for advance
Advance as admissible under the Contract, shall be payable only after the Contractor makes a
written request for the same to the Company. The amount payable shall be the amount applied for
by the Contractor, subject however to the conditions and limitations given herein
5.0DEFECT LIABILITY PERIOD:
Defect Liability Period of the Contract shall be 24 months from completion of the work under
different phases. The Contractor during the said Defect Liability period shall be responsible to make
good and remedy at his own expenses all defects pointed out by the Engineer-in-Charge.

6.0EXTRA ITEM:
In case any item not covered in the BOQ is required to be carried out, the rate for the same shall be
derived from the nearest similar item available in the BOQ. However, in case no such similar item of
work exists in the BOQ, the rate for the same shall be derived as per market rate + 10% profit.
Material and Labour component for such extra item shall be as per norms given in DAR. (Latest
revision)
7.0 The WCT shall be borne by the Contractor. The Contractor will be required to get himself
registered with the sales tax department before commencing the work. As per the existing law,
under the relevant clauses for the Work Contract Tax, the Contractor shall be able to get the road
permit and C form which shall be issued by the concerned authorities in his name without any tax
liability. You have to submit copy of registration in regard to service tax.8.0T.D.S. shall be applicable
as per Governing rules of Income Tax Act. All taxes will be applicable as per rules.
9.0PROGRESS REPORTS AND REVIEW:
The Contractor shall submit monthly progress report by 7thof next month and shall attend
fortnightly progress review meeting at site.
10.0 The Contractor shall deploy one Project Manager (BE in Civil Engg. with 12-15yrs. experience)
and at least 2 experienced Engineers (5-7 yrs. experience) required Supervisors, Foreman etc. for
execution of the work. You have to submit registration copies in regard to E.S.I. & P.F. And also have
to submit copies of contribution on this A/c from time to time.,
11.0 The Contractor shall deploy all resources (Labour, machine, equipment and materials etc.) to
maintain the required rate of progress and of quality to ensure workmanship of the degree specified
and to the satisfaction of the Engineer-in-Charge/Project Manager of the Owner.12.0The Contractor
shall make all arrangements for Electricity and water supply required for the construction work at his
own cost and shall also provide required D.G. Sets

13.0Insurance:
The Contractor himself or through his Sub-contractor shall obtained maintain insurance as under for
the complete period of work:
a)Contractor All Risk (CAR) Policy for cost of contract.
b)Workmen Compensation)Third Party & any other statutory obligation)Labour License
14.0 The Contractor shall, in respect of labour employed by him shall comply with the provision of
labour legislation including latest requirement of all the Act, Law, the payment of minimum wages
Act, ESIC, Employees Provident Fund and all other statutory orders in relation to the execution of
work. You have to submit registration copies in regard to E.S.I. & P.F. And also have to submit copies
of contribution on this A/c from time to time.
15.0 Quality Assurance and Quality Control: The works shall conform to high standard of design and
workmanship. The Owner/Architect shall be free to carry out tests as may be decided from time to
time. Materials not meeting the prescribed criteria shall be rejected and the same shall be removed
from the site immediately at the cost of the Contractor.
16.0 Safety: The Contractor shall throughout the execution and completion of work shall arrange
and ensure all safety measures as per the safety code of CPWD. The Contractor will indemnify XYZ
Pvt. Ltd. from any consequence arising due to failure in respect of noncompliance of safety code.
17.0 The Contractor shall take care and provide all safety measures to avoid any accident at site.
However, in case of any accident occurring at site, the Contractor shall be solely responsible to take
care of any eventuality arising out of any accident.
18.0 All individuals (staff and workers) at site shall wear safety helmets with chinstraps. Persons
working at height shall be secured by safety belts and provision of net at lower level.
19.0 Arbitration:

All disputes of any kind whatever arising during the progress of work or after their completion, shall
be settled by the Arbitrator appointed by the Owner under the provision of Arbitration and
Conciliation Act, 1996 as amended from time to time including provisions in force at the time the
reference is made and their decision shall be final without any appeal. The venue of
Arbitration/jurisdiction shall be Ghaziabad only.
20.0 During progress of work if any defects of whatsoever nature are found by Architect/engineers,
the same shall have to be rectified within 3 days of intimation. If any building material brought to
the site, does not meet the specifications of CPWD, the same shall have to be removed immediately
from the site. In case any legal dispute arises out of this contract, the same shall be settled in
Ghaziabad Courts.
21.0 DRAWINGS:
Drawings duly signed by the Architect / Consultants are diagrammatic but shall be followed as
closely as actual construction permits. Any deviations made shall be inconformity with the direction
and approval of the Owner. Architectural drawings shall take precedence over Structural drawings,
which in turn shall take precedence over services drawings in regard to all dimensions. The
Contractor shall verify all dimensions at the Site and bring to the notice of the Owner. For
discrepancies if any, the Owners decision in this respect shall be final.
22.0 WORK TO BE CARRIED OUT BY LICENSED PERSONS/FIRMS:
Technically competent persons or firms holding valid licenses shall only carry out any special service
installations included in the scope of the Work.
INSPECTION AND TESTING OF MATERIALS;
The Contractor shall, if so required, produce manufacturers' test certificates for any particular batch
of materials supplied by him. The tests carried out shall be as per relevant Indian Standards and shall

be carried out at Government approved test facility. For checking setting out and testing materials at
the Site the Contractor shall provide the following minimum apparatus/ testing equipment:
Theodolites
Automatic levels
Steel tapes
Weighing machines
Spirit levels, plumb bob
Micro meters
Thermometers
Hydraulic testing machines
Smoke test machines
Complete concrete testing lab equipment
Moisture meters
complete sets of sieves
Oven.
Slump Testing Apparatus
Cube Moulds
Balance all such equipment shall be calibrated at specified frequency for accuracy at a Testing
Facility approved by the Owner. The Contractor shall get other tests carried out at his own cost at
approved laboratory as per the directions of the Owner.

22.0 REFERENCE DRAWINGS:

The Contractor shall maintain on site one set of all drawing issued to him for reference.
SHOP DRAWINGS:

The Contractor shall submit, during the currency of the project, to the Owner, four (4) copies of all
shop drawings for his approval. Shop drawings shall be submitted generally for the following:
Construction and installation details for shuttering and formworks Structural Steelwork, especially
joint details.
Metal Sheet Roofing: Laps, Ridges, Gutters etc.
Metal Sheet Cladding and structural glazing details.
For specific areas requiring detailing as called for by the Project Manager /Architect.
Manufacturer's and/or Sub Contractor's fabrication drawings for equipment supplied by the
Contractor. Samples of all finishing materials like Tiles (vitrified and ceramic), marble, paints, HDF
skin door shutters, door locks, switches, CP fittings, chinaware, bath tubs, stainless steel sinks etc.
shall be submitted for approval prior to procurement. These will be submitted in triplicate for
approval and retention by the Owner and Architect and shall be kept in their site office for reference
and verification till the completion of the Project.
COMPLETION DRAWINGS & STANDARD MEASUREMENT BOOK (SMB):
On completion of the Work, the Contractor shall submit three (3) complete sets of the site produced
drawings and marked up prints of "AS BUILT" drawings verified and approved by the Architect to the
Owner. These drawings shall include and show all the changes / deviations made from the working
drawings during the course of construction and also the other details as called for. During the
execution of the Works a set of drawings shall be retained in the Contractors Site Offices for the
exclusive purpose of recording changes made to the Work as the construction proceeds. The
drawings shall be prepared on computer through AutoCAD Software. Along with the completion
drawings the Contractor shall also prepare and submit to the Owner the Standard Measurement
Book (SMB) in the form of a bound book and a soft copy of the same. SMB shall incorporate the

standard measurements of the items as per the completion /as built drawings in modules finalized in
consultation with the Owner
23.0 CONTRACT DRAWINGS:
Drawings issued/to be issued shall also firm part of the contract.
24.0FIRE PRECAUTIONS:
The Contractor shall take all precautions and preventive measures against fire hazards at the Site
and shall assume full responsibility for the same.
25.0DRILLING, CUTTING ETC.:
All cutting and drilling of walls or other elements of the building for the proper entry/installation of
inserts, boxes, equipment, etc. shall be carried out using electrically operated tools only. Manual
drilling, cutting, chiseling, etc. shall not be permitted. Cutting and drilling of structural members shall
be carried out using vibration free diamond wire sawing and diamond drilling only with prior
permission. The cost for procurement and using such equipment is deemed to be included in the
Contract and no extra costs will be paid.
26.0APPROVAL BY STATUTORY BODIES:
The Owner will handle Commencement Certificate, No Objection Certificate and Occupation
Certificate if applicable for the permanent building works under this Contract.The Contractor shall be
responsible for providing required notices to authorities and to obtain and retain with him at his
own cost all other approvals/permissions from the statutory bodies, (Labour, ESI, PF, Tax Deptts.
etc.) and any other approval/permissions required to facilitate performance of the Contractors work
under the Contract till completion.
27.0REPORTS & CHECKLISTS BY SUB CONTRACTOR:

The Contractor has to note that the Owner follows the ISO procedures and all reports, returns &
checklists shall conform to ISO standards & procedures. During progress of the Work the Contractor
shall prepare and submit to the Owner various checklists, for having checked various Works at
different stages of progress and reports as per the approved formats and at specified frequency.
The Contractor shall file daily category-wise labour return. The report shall indicate scheduled
requirement against actual strength. The Contractor shall prepare weekly reports of planned and
actual progress of the Work and the subsequent week's scheduled Work. These will also include
material procurement status. These reports shall be submitted to the Owner and shall be reviewed
in co-ordination meeting.
The Contractor shall submit monthly report along with monthly bills. Further progress charts and
schedules shall be prepared by the Contractor as directed by the Owner.
The Contractor shall submit a safety procedure manual or Company policy on safety. Complying with
the SHE Plan and outlining its implementation by the Contractor and including:
Quality Assurance and Control System (Sample format). Realistic construction programme/schedule.
The Contractor shall maintain and make available all the records pertaining to reports, returns and
checklist to the Owner during audits(internal as well as external) and make necessary corrections,
additions and actions based upon the findings / observations of the audits.
SITE BARRICADING: Site Boundary fencing of RCC posts and barbed wire and random rubble stone
masonry boundary wall existing at site shall be maintained by the Contractor at his own cost till
completion of the Project. However if it is required for the Contractor to replace / rectify the existing
fencing/ boundary wall for security purpose the same shall be done at Contractors own cost subject
to approval of design. The Contractor for safety reason shall provide the GI sheet barricading around
the excavated pits and his work area, which shall be put in proper line and level and shall be painted.
The Contractor shall at his own cost provide lockable gates at all the openings in the site barricading,

boundary wall, access roads that may be required from time to time during progress of work. The
Contractor shall be required to provide appropriate barricading within the site to ensure safety of
men and material, at his own cost.
Site Boundary fencing of RCC posts and barbed wire and random rubble stone masonry boundary
wall existing at site shall be maintained by the Contractor at his own cost till completion of the
Project. However if it is required for the Contractor to replace / rectify the existing fencing/
boundary wall for security purpose the same shall be done at Contractors own cost subject to
approval of design. The Contractor for safety reason shall provide the GI sheet barricading around
the excavated pits and his work area, which shall be put in proper line and level and shall be painted.
The Contractor shall at his own cost provide lockable gates at all the openings in the site barricading,
boundary wall, access roads that may be required from time to time during progress of work. The
Contractor shall be required to provide appropriate barricading within the site to ensure safety of
men and material, at his own cost.
RATE ONLY ITEMS/ EXTRA ITEMS AND QUANTITIES EXCEEDING THE TENDERED QUANTITIES: The
Contractor shall immediately and before procurement and execution of the work obtain a written
approval of the variation order from the Owner for the rate only item, extra items and quantities
exceeding the BOQ. No payments will be entertained without the Owners written approval of the
change / variation order. The onus shall be upon the Contractor to obtain such prior written
variation order. The allowed percentage is 10% towards CP &Overhead.
28.0 WATER AND ELECTRICITY:
The Contractor shall make his own arrangement for electricity and water for construction purposes
/ labour hutments. The electricity required for Construction Work shall be arranged by the
Contractor from the authorities and/ or generators at his own cost. The Contractor shall be
responsible for all distribution points as may be required for the Work. The Contractor shall also

make arrangement for alternative standby services at his own cost in the form of additional
Generators of adequate capacity (day & night) so that there is no delay in progress of Work as per
construction schedule submitted by him. The Contractor shall prepare schematic distribution
diagrams of distribution of electricity and water for construction purposes and get them approved.
The distribution at site shall be in accordance with the approved scheme. The Contractor shall
ensure incorporation and strict implementation of all safety parameters, equipment, instruments
and directions given by the Owner from time to time in this regard. The Contractor shall install the
temporary distribution lines for water and electricity ensuring that work of other Contractor is not
interrupted or hampered. Incase during the course of construction these lines foul or interrupt or
hamper the work of other Contractor, the Contractor shall remove and relocate the service lines and
relocate the same at his own cost. All Fees for power and Water connection for construction
purposes shall be borne by the Contractor.
29.0ASSOCIATED CIVIL WORKS:
All civil works required for the storage of materials or the installation of equipments for the
Contractor's functioning shall be the responsibility of the Contractor.
30.0GUARANTEE TO PERFORM
The Contractor shall carry out the work in accordance with the drawings, specifications, schedule
and other documents forming part of the contract. The Contractor shall be fully responsible for the
performance of the works executed by him. All waterproofing works and termite proofing works
executed by the Contractor, shall be guaranteed for a minimum period of ten years from the date of
final completion of Project.. The guarantees on the approved format shall be submitted to the
Owner along with the as-built documentation at the end of the project.
31.0ESCALATION:

Rates as mutually agreed shall remain firm & valid for a period of 30 months beyond which the rates
shall be reviewed for price adjustments if any.
32.0DEWATERING AND FLOODING CONTROL:
The Contractor is deemed to have allowed for any and all temporary dewatering, during the
execution of his Work. Such work shall include but not necessarily be limited to the safe disposal of
the resulting water; removal, replacement and/or re-compaction of the water logged soils/surfaces;
backfilling plugging of all temporary sumps, ditches, temporary materials and devices. The
Contractor shall be deemed to have allowed for all costs associated with removal of flood waters
and any associated sludge debris etc. from the basement level or any other part of the building so
effected in the event of flooding due to heavy rains during his construction activities and after
basement, superstructure work is completed until such time as the Contractor has completed and
handed over all his works under the Contract.
33.0 PROTECTION / PRESERVATION OF TREES:
The Contractor shall take all measures necessary to ensure the protection and preservation of
existing trees within / outside the boundary of the site. The Contractor shall be responsible of any
damage / casualty to the trees happing as a result of his working at site and for any action, claim,
penalty or expenses imposed by the forest / any other department / authority. No claim / payment
shall be payable to the Contractor on this account.
Functional Organization:
A typical functional organization for a construction site management will consists of Site Engineer,
who is obviously a specialist and hold his place in the organization because of the specialist functions
of management he performs. On technical side he will be assisted by Junior Engineers who are also
specialists. They control the departmental heads, the Foreman. There may be Masonry Foreman,
Carpentry Foreman, Electrical Foreman, Plumbing Foreman and General Foreman. Each of these

Foreman, is a specialists and controlled the skilled workman who will actually do the work. For
example, under the Masonry Foreman, there may be eight skilled masons who are again specialist
and cannot be replaced by anybody but mason. Same is the case with other Foreman, except in the
case of General Foreman, under whom there will be no skilled workman but only general unskilled
labour who will not do any specialist job. A similar type of organization can be devised for Architect
office. This office is headed by the head of the organization called probably as Chief Architect. There
may be two Senior Architect working under the Chief Architect. These will control the work of four
Junior Architects. These will be directly involved in the preparation of architectural drawings for
which they may take the assistance of draughts men. Thus it can be seen that each person in the
hierarchy of a functional organization is specialists, whether he be a mason or carpenter or a
Foreman or an Engineer. The size of the organization depends on the volume, complexity and the
time periods of the various works being done. The construction team consists of owner, engineers/
architects and contractor. The team is formed to co-operatively plan, design and execute a particular
project. The objective of the team is to execute the owner's project in the best and most economical
manner within the stipulated completion time. The owner forms the construction team to serve his
interests through the services of both the contractor and engineers. The functions of the
constituents of any construction team depend upon the scope and nature of the work.
Site organization: The organization for the construction firm has to be developed taking into account
the general principles of organization and the special characteristics of the construction industry.
The type of organization suitable for a small construction firm is simple line or line and staff type of
organization. The engineer in charge at the exercises full authority and is responsible for the
execution and progress of work. Under him are few section officers or foremen who get the work
executed. After having decided the organizational structure in a construction company, the next step
is to spell out the task, power and responsibility of all its functionaries. Telling an accountant that he
is to look after the accounts work or telling the foreman that he is to super wise the daily wage
workers at site is not enough. Specific job detailing that is what is to be done by whom, at what time

and how it is to be done is the starting point of site organization. Site organization in simple terms,
means how to organise the construction activity on site. A typical site organization for a division,
headed by an executive engineer is shown here:-

EE
AE Civil
Works

AE PHE
Works

JE 1

AE Electrical
Works
JE 2

Foreman 1

Foreman 2

Labourers

Authority:
Executive Engineer:
1. To coordinate the work of various contractors and to check whether all necessary
instructions have been provided to the contractors.
2. To check the progress of work regularly and to arrange for rectification of faulty
workmanship or inferior quality material.

3. Clearing all bills related to construction work for which he is the final authority.
4. To carry out technical audit and settlement of final contractual dues.
Assistant Engineer:
1. To check the specifications of construction jobs in regard to the quality of materials,
method of workmanship.
2. to plan and organize construction work in his section in order to avoid delay in the
process of work.
3. To keep a record of all measurements of work done and tests carried out at site
4. .To report regularly to the executive engineer on all the above matters.
Junior Engineer/Supervisor/Foremen:
1. To supervise the execution of work at the site in their respective sections.
2. To place indents of material well in advance to avoid delay in the progress of
construction work.
3. To control and provide technical guidance to workers.
4. To check and test materials for quality and quantity.
5. To measure the quantity of work done for the purpose of payment and progress.
6. To report regularly to the assistant engineer on all matters related to site.
Role of Mistry/Skilled worker:
This category include carpenters, steel fixers, machine operators, drivers, fitters, pipe
jointers etc. They are usually recruited locally for their respective jobs. Their job is to keep
the work going at the right speed and in the right manner in their sections.

Role of Labourers:
They are the ones who assist skilled workers and performed many unskilled jobs mat the
site. They expect the right payment and need to be given clear instructions regarding what
to do.
Important Duties/Role of Project Manager :
1. To coordinate the entire construction work on site and with the headoffice.
2. To direct and control the construction work on site.
3. To employ work force, hire machinery, engage sub-contractors and material
suppliers with or without reference to head office depending on the size of the
project, policy of the firm, distance from head office and also his standing within the
firm.
4. To organize, direct and control men working under him.
5. To check the Progress of work regularly in orders to avoid delay in construction
work.
6. To call periodically joint meeting of several key personnel working at the site to
review progress and to issue instruction for speeding up work, if required. The duties
of the resident engineer, Site engineer etc. and are similar to those of the executive
Engineer, Assistant Engineer etc. The project management construction manpower
planning is primarily concerned with estimating the worker's productivity, scheduling
manpower employment, and structuring it into workers' team and work groups, with
a view to economically match manpower supply with the task requirements.
Completion of projects on schedule will be the completion of number of activities
taken up prior to and after the award of the contract for construction. The

construction planning has to be done in a thorough manner so that all problems

likely to arise during design construction are identified. Both the client and
contractor have to work in a spirit of give and take and try to accommodate each
other to the extent possible.
The project authority has to ensure that the contractor is provided with the site for
construction and installation of infrastructure facilities and the required equipment,
materials and construction drawings as per a pre- arranged schedule so that there are
no chances of delays on that account. Although the clients are concerned with the
delays in completing projects, they are notable to take effective measures to address the
problems. Even though continuous monitoring and follow up actions have led to the
solution of some projects specific problems, the overall picture of delays remain
unchanged. The project organizations having failed to improve the completion time
despite numerous studies and action planned tended to live with the status quo as
unavoidable.

Making Staff Work as a way of organization life:

An understanding of staff authority lays the foundation for an organizational way of life.
Where staffs are involved, their responsibility is to develop and maintain a climate of
favorable personal relations. Essentially, the task of staff is to make the responsible line
managers "look good" and to help them do a better job. A staff person should not
attempt to assume credit for an idea. Not only in this a sure way of alienating line
teammates who do not like being shown up by a staff person, but operating managers
who accept ideas actually bear responsibility for the implementation of the proposals.

Companies also employ the assistance of professional firms, such as consultants to

provide advice to line managers. A major reason for conflict in organizations is that
people do not understand their assignment and those of their coworkers. No matter
how well conceived an organization structure may be, people must understand it to
make it work. Understanding is aided materially by the proper use of organization
charts, accurate job descriptions, spelling ou tof authority and informational
relationships, and introduction of specific goals for specific positions .Organizational
conflict can be reduced by the use of organization charts and position descriptions.
Organizing is improved by teaching its nature and by recognizing the informal
organization and the grapevine. Moreover effective enterprises develop and nurture an
appropriate organization culture.
Arbitration:
Arbitration means settlement of dispute between two parties involved; generally
contractor and owner. This settlement generally not by court of law but by a few
persons having complete knowledge of that work and deputed by parties involved.
these person or persons appointed to settle the dispute is called "Arbitrator". Arbitrator
gives decision on the basis of evidences available; enquiries made and his own skills and
knowledge. His decision accepted by both the parties and also incorporated in the
decree of the court if required i.e. if earlier decision is not accepted by either of the
parties and if matter is referred to court of law. Arbitrator has to take such decision
which must be correct and accepted by both the parties. As such Arbitration is an
expensive way of settling the dispute between owner and contractor. As far as possible
matter is solved at very first or second level only. In extreme cases matter is referred to

court. The judiciary procedure and law takes very long hence people to avoid it. The
communication of proposals, the acceptance of proposals and the revocation of
proposals and acceptance, respectively are deemed to be made by any act or omission
of the party proposing, accepting or revoking by which he intends to communicate such
proposal, acceptance or revocation, or which has the effect of communicating it.
Communication is complete is as follows:
1. Communication of a proposal is complete when it comes to the knowledge of the
person to whom it is made.
2. Communication of an acceptance is complete when it comes to the knowledge of
the Proposer.
3. Communication of a revocation is complete when it comes to the knowledge of the
person against whom it is made.
Acceptance by performing conditions or receiving consideration:
Performance of the condition of the proposal, for the acceptance of any consideration
for a reciprocal promise which may be offered with a proposal, is an acceptance of the
proposal. All agreements are contracts if they are made by the free consent of parties
competent to contract, for a lawful consideration and with a lawful object, and are not
hereby expressly declared to be void. The consideration or object of an agreement is
lawful, unless it is forbidden by law, or -is of such nature that, if permitted it would
defeat the provisions of any law or is fraudulent or -the court regards it as immoral, or
opposed to public policy. In each of the above cases, the consideration or object of

agreement is said be unlawful. Every agreement of which the object or consideration is

unlawful is void.
CONCLUSION:
Public contract are required to be let in accordance with certain statutes. The
performance of construction work is done pursuant to contractual agreement. Although
there are numerous types of contracts, the contractor's obligation and initial concern is
much more basic. With the proper understanding of the basic requirements for the
formation of legal contract, the contractor will be better able to avoid pitfalls, lawsuits
and liabilities. The essential contractual requirements are an offer, an acceptance of the
offer and consideration.