World University of Bangladesh

Professional Practices and Communication

Code No: CE 1101

Lecture Notes

Program : B.Sc. in Civil Engineering

Compiled by
Engr. Rabindra Ranjan Saha,PEng
Associate Professor and
Ex Head
Department of Civil Engineering.

Book references:
(1) ‘Communication and Professional Practice’-College of
continuing Education (http://www.dal.ca/faclty/cce/programs/home-inspection/courses/...)
(2) PPR-2003/PPR-2008 and PP Act 2006 and 2012
(3) Guide lines for infrastructure Development-2004
(Public –Private –Partnership (PPP)
(4) CPTU: Tender Documents-2012
(5) Project Managemt - web sites
(6) Bovee / Thill’s Excellence in Business
Communication, 10th edition

Date: 27-06-2018

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 World University of Bangladesh

Professional Practices and Communication

INDEX
Sl.No. Contents Page No.
1. Project 4
2. Project Cycle 6
3. Development Project Proposal(DPP) 8
4. Report 13
5. Procurement and Procurement Related Definitions 16
6. Logical Stages/ Steps for Public Procurement 22
7. Methods of Procurement 22
8. Electronic Government Procurement (e-GP) 25
9. Preparation of tender document for submission 30
10. Tender/Bid Evaluation 31
11. Specification 37
12 Project Evaluation 39
13. Engineering Ethics 41
14. Industrial and Labor Relations 44
15. Labor Welfare 53
16. Communication 57
17. Communication Cycle 60
18. Examples of written communication 63
19 Assignments for Practices 67

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 Lecture Plan
Course Title: Professional Practices and Communication; Course Code: CE 1101
(A) Mid Term Examination
Lecture -1
Project , classification, acceptability, project cycle and Different phases of project
Lecture-2
Development Project Proposal(DPP), Major parts of DPP, Purposes of DPP,RDPP,,
Condition of RDPP, DPP approval, Extension of implementation period of DPP, Cost
Estimate preparation, Report, How to write a report? Example of different types of report
Lecture-3
Procurement: definitions, logical steps, procurement relations, concession contract,
methods of procurement, STD.
Lecture -4
e-GP, Preparation of STD for submission, Tender Opening Committee, Tender
Evaluation Committee, Functions of TEC, Tender Evaluation Report, Price adjustment
factors.
Lecture-5
Specifications: Definitions : Work specifications and its use, example, project evaluation
and types. Ethics of Engineers: fundamental principles.
Lecture-6
Ethics: Fundamental canons,-different types
(B) Final Examination (Mid Term + Final)
Lecture -7
Industrial& labor relations : definitions, employment and unemployment,(mathematical
evaluation) Necessity of employers’ organization.
Lecture – 8
Components of worker pay packets, collective bargaining, disciplines: punishment,
termination.
Lecture -9
Industrial Relations: definitions, importance, objectives, actors of IR
Lecture-10
Labor welfare: definitions, objectives, classification, wages component and fringe
benefit.
Lecture-11
Employee grievances, procedure, communication. Methods of communication.
Lecture-12
Communications: Methods of transmission, types of communication, Basic rules(7 Cs).
Route of written communication: types of letter and examples.

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 Professional Practices and Communication

Professional Practices and Communication course focuses on the standards of

practices and code of Ethics of the profession in order to meet or exceed minimum
levels of performance and assure public confidence. The course also demonstrates
and understanding of the need to comply with applicable laws and regulations,
contracts and business practices as they relate to the home inspection profession.
Objectives of this course
Comply with the standards of practice and Code of Ethics of the profession in
order to meet or exceed minimum levels of performance and assure public
confidence. Disclose the limitations of the inspection process to ensure that the
client has realistic expectations and a clear understanding of the limitations for the
purpose of risk management.
Communicate effectively with the client orally and in writing to ensure
understanding of the results of an inspection. Report and communicate effectively
to the appropriate parties, health and safety concerns found during an inspection, as
well as their degree of immediacy, in order to protect persons and property.
Demonstrate an understanding of the need to comply with applicable laws and
regulations, contracts and business practices as they relate to the home inspection
profession.
To acquire knowledge about the procurement and procurement process and also to
know the methods of procurement.
Professional practices in case of engineering is to develop and maintenance the
infrastructures and communication deals with the tendering for procurement.
PROJECT
The word project comes from the Latin word projectum from the Latin verb
proicere, "before an action" which in turn comes from pro-, which denotes
precedence, something that comes before something else in time (paralleling the
Greek πρό) and iacere, "to do". The word "project" thus actually originally meant
"before an action".
A project in business and science is typically defined as a collaborative enterprise,
frequently involving research or design, that is carefully planned to achieve a
particular aim. Projects can be further defined as temporary rather than permanent
social systems that are constituted by teams within or across organizations to
accomplish particular tasks under time constraints.
Engineering project
Engineering projects are, in many countries, specifically defined by legislation,
which requires that such projects should be carried out by registered engineers
and/or registered engineering companies. That is, companies with license to carry

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out such works as design and construction of buildings, power plants, industrial
facilities, installation and erection of electrical grid networks, transportation
infrastructure and the like.
The scope of the project is specified in a contract between the owner and the
engineering and construction parties. As a rule, an engineering project is broken
down into design and construction phases. The outputs of the design process are
drawings, calculations, and all other design documentation necessary to carry out
the next phase. The next phase would normally be sending the project plans to a
developer who will then help construct the plans (construction phase).
Project: Project means pre set job to implement. A project consists of a set of pre
determined activities arranged in a logical manner. Those activities are planned
and designed according to available resources. After planning and designing, the
activities are executed to achieve the expected results in the form of goods, works
and services.
According to James P. Lewis- Project is a one time job that has defined starting
and ending time/dates clearly specified objectives or scope of work to be
performed and dismantled once the project is completed. According to J. M.
Juran: Project is a problem for solution.
Project is a problem: A civil engineering project consists of a lot of activities
starting from taking possession of land to the completion and functioning.
Materials collection, completion of all allied works, etc. all these activities together
can be called problem.
Scheduled for : The activities are (i) planning, (ii) design as per requirement (iii)
resources (iv) fund (vi) time : all these together can be defined as scheduled for
execution.
Solution: means implementation after completion of scheduling, work started and
finished with completion for functioning/operation.
From the above citing one can define that ‘a project is a problem scheduled for
solution’.
Classification of project
Depending on the basis (i) ownership (ii) funding (iii) nature and service – a
project may classified as
(1) Based on ownership
(2) Based on funding &
(3) Based on Nature & service
Examples are:
(1) Based on ownership projects are
(a) Government project
(b) Semi government project
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 (c) Private project
(d) Private limited company project
(e) Multi National project
(f) Public Private Partnership project/concession
contract project(PPP)
(2) Based on funding projects are
(a) Fully government project
(b) Foreign aided project
(c) Joint venture project (government and foreign jointly
funded project
(d) Fully Private funded project
(e) Government-Private joint venture project
(3) Based on nature and service projects are
(a) Education sector project
(b) Social projector project
(c) Local government project
(d) Agriculture sector project
(e) Water resources sector project
(f) Navigational sector projector
(g) Industrial sector project
(h) Communication sector project.
Acceptability of project
i. Profitable marketing
ii. Appropriate technology is available
iii. Affordable management
iv. Financially viable
v. Economically sound
vi. Socially acceptable
vii. Environment friendly
viii. Sustainable
Project Cycle
The genesis of a project is the idea or concept. The end products are the desired
work/goods/services. There are several definite activities that need to take place in
the process of developing the idea into works/goods/services. The whole process
from the project inception to actual implementation to deliver from the project
inception to actual implementation to deliver goods/works/services makes what is
called or known as project cycle.
Phases of project Cycle:
1. Pre-investment phase (at nominal cost):
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 i. Project identification
ii. Project formulation/preparation
iii. Project appraisal and selection
iv. Primary resource scheduling
2. Investment phases (major cost incurred at this phase):
i. Detail planning and designing and resource scheduling
ii. Implementation and execution
iii. Monitoring
iv. Ongoing evaluation
v. Completion

Suggestions and Recommendation

for similar nature project

Conception,
Identification &
Formulation

Appraisal and
Completion, Operation & Selection
Functioning

Project Management

Planning &
Designing
Monitoring

Implementation with
Ongoing Review and Evaluation effective supervision

Figure-1: Project Implementation Cycle

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 3. Post investment phases (at operation/running cost):-
i. Project operation and functioning(for short period)
ii. Project evaluation and feedback.

(4) Closure Phase

In this last stage, the project manager must ensure that the project is brought to its
proper completion. The closure phase is characterized by a written formal project
review report containing the following components:
I. a formal acceptance of the final product by the client
II. Weighted Critical Measurements (matching the initial requirements
specified by the client with the final delivered product)
III. Rewarding the team
IV. A list of lessons learned
V. Releasing project resources and
VI. A formal project closure notification to higher management

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Development Project Proposal (DPP):-
Development project proposal is a document of a proposed project proposal
formulated or prepared in a prescribed standard format by Planning Commission.
A DPP contains project details such as project background, objectives, project cost,
funds and time scheduling.
DPP is called in three ways:
- When DPP is under preparation it is called Development Project Proforma
- When DPP is submitted for approval it is called Development Project
Proposal
- When DPP is approved it is called Development Project Profile/Papers.
Major Parts of DPP
Two parts:-
Part-A : Project summary contains such as (1)Project title (2) Sponsoring
Ministry (3) objectives (4) location of the project (5) Estimated cost(6) Source
of fund (7) Economic and financial viability analysis(NPV, BCR, EIRR and
FIRR) (8) Project implementation period (8) Log frame. (9) Project
Management set up.
Part – B: Project details contains components of the project such as (1)
Background, objectives, priority, rational, linkages, targets and Outputs
/outcomes of the project including findings of feasibility study/survey
(2) specifications/design of major components (3) effect/impact and specific
mitigation measures (4) comparative cost of major items(5)procurement plan.
Purposes of DPP :
1. To prepare the DPP in uniform and standard format keeping similarity with
national and international systems. This will help to examine the DPP of
different projects in easy way.
2. It is easy to know the total volume of development work in a fiscal year.
Similar sector wise development project can easily be compared as well as
cost estimate.
3. Easily government can fix the priority Development projects according to
budget allocation.
4. Problem of the project during implementation can easily solve by providing
exclusive monitoring/suggestions from the government.
5. People can know the development work around.
6. Lessons learnt from different similar projects.
Extension of implementation period of DPP

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Procedures for approval of extension of implementation period for Investment
/Development project:

(1) Subject to recommendation of IMED/PC, honorable minister /adviser /state

minister of controlling ministry can approve once for up to one year time.
(2) If extension of time needed more than one year or any 2 nd time extension, the
matter should be processed by the ministry/division at least 3 months ahead of
expiry date. The proposal should be send simultaneously to IMED and
Planning Commission.
(3) On receipt of recommendation of IMED within 20 working days, member of
the concerned wing/sector of Planning Commission will provide their opinion
to the concerned Ministry/Division within 30 working days.

(4) On special/unavoidable circumstances if 3rd time extension of time is needed

the process will be as is mentioned in (2). But in this case honorable minister
/adviser/state minister of Planning Commission will provide approval.

Revision of Development Project Proforma (RDPP)

A development project is prepared generally considering all the items. But during
implementation it has become necessary to include some items which were not
included in the original estimate or the work volume increases due to unavoidable
circumstances which leads the original DPP to revise. Original DPP requires
revision when cost increases 10 %.
Conditions of RDPP
There are three levels to revise DPP according to its merit:
1. Conditions from Line/controlling Ministry
a. if the variation of cost is ±10%
b. if there is change of mode of funding
c. if there is change of objectives
d. if there is change of transport facilities
e. if new item is included
f. if there is recommendation from DPEC (Departmental project
evaluation Committee)
2. Conditions from Planning Commission
a. If the cost variation is ±20% or if the total project cost ≤ 250
million Tk.
b. If there is change of mode of financing
c. If there is change of objectives
d. If there is change of transport facilities
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 e. If new item is included
f. All 2nd revision.

3. Conditions from ECNEC (Executive Committee of the National

Economic Council)

a. All revisions which are beyond the scope of controlling ministry

and Planning Commission(PC)
b. Recommendation of DPEC and PC

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 ESTIMATE

The statement of materials and cost of the project is estimate. The estimate is of
two types :
(1) Materials estimate : The statement of a project which illustrates the quantity
of materials is called material estimate.
(2) Cost estimate
The financial statement of a project is called cost estimate. It is the life line of the
DPP. The cost estimate should be prepared correctly, judicially and wisely with the
application of sound engineering knowledge. The more correctly it is prepared, the
less difficulty is being faced during implementation of the project.

Types of cost estimate

Cost estimate is generally two types:-
(i) Rough estimate /Assessment
(ii) Final detail estimate

(i) Rough cost estimate:

It is prepared on the basis of primary architectural drawing. The unit rate of items
is inserted from the approved government ‘Schedule of Rates’. If it is not available,
existing market unit rate is used for the preparation of cost estimate. The rough
estimate is used in preparing DPP.

(ii) Final detail cost estimate:

It is prepared on the basis of approved architectural and structural design and

drawings. The unit rate of works is taken on the basis of prevailing market rate.
The final detail estimate is used in preparing tender documents and used as Bill of
Quantities (BQ) of the approved tender.

The procedure, preparation and approval of estimate for semi govt. autonomous
and corporations are different than govt.’s procedure. Approval accorded as per
financial delegation of power laid down for those organizations.

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Example of preparation of Rough estimate (Prepared by BRTC, BUET):

Name of Project: Hydraulic and Morphological study for the selection of a site for
construction of ferry ghat alternative to Nagarbari/Notakhola.

Consultant: Department of Water Resources Engineering, BRTC, BUET.

Client : Bangladesh Inland Water Transport Authority (BIWTA).

Sl. Item Quantity Rate in Tk. Total cost

Mo. in lac Tk.
1. Land acquisition 3 acres 1,50,000.0 4.50
2. Land development by dredging fill transported soil
(i) Dredge fill soil 55540 m3 94.00 52.20
(ii) Transported soil 9800 m3 132.00 12.93
(iii) Dyke construction 8650 m3 50.00 12.93
3. Parking Yard(Capacity 100 vehicles) 3500 m2 385.00 13.40
4. Slope protection 7200 m2 440.00 31.68
5. Other terminal facilities, passenger shed, Driver
restroom, restaurant, office, police barrack, staff 1000 m2 5500.00 55.00
barrack, pilot house, serial room, toilet complex, prayer
room, booking counter, etc. :
6. a. Ferry ghat.
i. High water level, double Ro-Ro ghat-2 nos. 810 m2 1540.00 12.47
2 × 45 m × 9 m = 810 m2
ii. Mid water level double Ro-Ro ghat – 2 nos. 1080 m2 1540.00 16.63
2 × 60 m × 9 m = 1080 m2
iii. Low water level double Ro-Ro ghat-2 nos. 1494 m2 1540.00 23.00
2 × 83 m × 9 m = 1494 m2
b. Repair maintenance of 2 nos. Ferry ghats for 2 years 2 gats 20,000.00 40.00
@ Tk.20.00 lac per year
7. Electricity and water supply L.S L.S. 10.00
8. Internal fencing 550 m2 1100.00 6.05
9. Security wall 600 m2 605.00 3.63
10. Tube well (Shallow) 4 Nos. 5000.00 0.20
11. Drainage
i. Surface drain 800 m 550.00 4.40
ii. Sewerage line, septic tank, soak pit, L.S. - 4.00
inspection, etc.
12. Internal Road/path 2000 m2 500.00 10.00
13. Basin area dredging 40000 m3 75.00 30.00
14. Furniture L.S. - 2.00
Sub-Total = 336.41
15. Overhead (2.5%) 8.41
16. Contingency (2.5%) 8.41
Grand total= 353.23

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 Report

What is report?
(i) Report is a pen picture of the subject for which it is written
(ii) A report contains information in abstract form for the subject from someone
for someone who wants to use that information.

One can get preliminary knowledge about the subjects going through a well written
report.

Types of report:
Depending on the subject matter there are many types of report, Some of them are
as follows:

(1) Technical/Engineering report

(2) Business report
(3) Law report
(4) Inquiry report
(5) Crime report
(6) Educational report

Types of technical/Engineering report:

Engineering report: Reports written about engineering works or engineering
project is called engineering report. Engineering report is of two types:

(1) Descriptive :
(i) Report for cost estimate/DPP
(ii) Inspection report(IR)
(iii) Tender evaluation report(TER)
(iv) Inquiry report(IqR)
(2) Informative:
(i) Progress report(PR)
(ii) Monitoring report(MR)
(iii) Construction materials report (CMR)
(iv) Project completion report(PCR)

How to write a report?

In general the language of the report should be written in simple and easy and
understandable sentences. There should use of technical term where necessary .

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A good report for cost estimate of DPP will give the answer of the following
questions:
(1) For whom the project will be implemented?
(2) By whom the project will be implemented?
(3) What facilities the project will provide?
(4) What cost the project will require?
(5) What time will be required to implement the project?

Example of an Ideal Report:

Construction of 5-storied residential building having floor area 280 sqm in each
floor (2 unit each 140 sqm) at Ansar and VDP Academy, Shafipur, Gazipur.

Report

The office of the Director General, Ansar & VDP has requested the ministry of
public works to prepare a cost estimate for constructing the new residential
building at Ansar & VDP Academy, Shafipur, Gaziur, vide their memo
No.ANS/VDP/CE/BUDT/2007/08/03, Dated 15 June 2007. The building will be 5
storied residential building having 280 sqm areas in each floor (2 units each of 140
sqm).
The requiring body has informed that they have received a budget allocation from
ministry to construct new residential building for their senior officers’
accommodation as they have not enough residential arrangement since long.
Department of Architecture will design and prepare the architectural drawing,
public works department (PWD) will prepare the structural design of the building
following approved Architectural drawing and structural designs and then PWD
will construct the proposed building.

As per requirement, Department of Architecture has designed drawing and the

requiring body has kindly approved the Architectural drawing vide their memo
No.-DOA/ANS & VDP/CE/2007-08/15, Dated 30 July 2007. Accordingly
structural design has been prepared by PWD.

The residential building will be constructed on 10 katha land having 280 sqm area
in each floor having two units, 140 sqm area each. Each unit will consist of three
bed rooms with attached toilet, drawing room, dining room, common toilet,
kitchen, servant bed & toilet, finishing items will be of standard one. Moreover,
garage, internal RCC road, surface drain, underground water reservoir and
boundary wall will be provided in the compound. A 250 KVA electrical sub-
station will be provided as per present government rules. A 150 KVA generator
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and a passenger lift having capacity 6 passengers will be provided. There will be a
green open space in front of the building. Necessary other facilities will be
provided as per requirement.

The building will be load bearing brick wall foundation, the external surface of
brick wall will be made of fire color ceramic facing bricks. The windows will be
made of thai- aluminium glass framed and 6mm colored glass with standard related
accessories. Main doors and other exterior doors will be single leaf made of teak
wood. Internal partition doors will be single leaf made of teak veneered partex,
floor finishing will be of 1st class mosaic and tiles, electrical and sanitary fitting
and fixtures will be of standard one.

The cost estimate of the building as well as other facilities has been prepared as per
existing PWD Schedule of Rates and rates of items those are not available in PWD
schedule have been prepared as per existing market price. The total estimated cost
stands to Tk 2,95,97,424.78 (Two crores ninety five lacs ninety seven thousand
four hundred twenty four and paisa seventy eight only) including departmental
and other charges.

The proposed date of starting the construction works will be October 2007 and
completion date will be September 2008 as per proposed implementing program
provided fund is released as per financial schedule.

Approval of this cost estimate and release of fund as per financing schedule is
solicited to implement the proposed building work with in proposed time schedule.

Sd/
Executive Engineer
Gazipur PWD Division
Gazipur

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 Procurement
PPR-2008/PPA- 2006, PPP-2004

The Government of the Peoples’ Republic of Bangladesh considers it necessary to

regulate and improve the way in which the public procurement of goods, Works
and services are undertaken. In order to improve the procurement system, the
government has introduced the public procurement Regulation 2003(PPR
2003)/Public Procurement Act 2006(PPA-2006) which has been revised in 2008
and introduced Public Procurement Regulations 2008(PPR-2008). The Public
Procurement Rules-2008 has been issued by the Government of the Peoples’
Republic of Bangladesh, Ministry of Shipping, Implementation Monitoring
and Evaluation Division(IMED), Central Procurement Technical Unit(CPTU)
Notification, Dated the 24th January 2008

S,R,O No.21-Law/2008 in- exercise of powers conferred under section 70 of the

public procurement Act-2006 (Act 24 of 2006). The Government is pleased to
make the following Rules, namely-

Preliminary

1. Short title and commencement

(1) These Rules may be called the Public Procurement Rules-2008

(2) They shall be effective on the date of coming into force of public
Procurement Rules-2008
2. Definitions- In these Rules, unless there is anything repugnant to the subject of
context-
(1) Act’ means the public procurement Act, 2006 (Act 24 of 2006).

(2) Administrative Authority’ means the concerned Procuring Entity.

Head of the procuring Entity(HOPE) and Secretary of the
Ministry or Division respectively

(3) ‘Code of Ethics’ means the set of conditions and provisions which a
person shall abide by while participating in public procurement.

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(4) Completion Date’ means the date of completion of works as certified
by the project manager

(5) Conflict of Interest’ means any situation where personal or business

interest of any person in a public procurement transaction would
adversely affect the interest of a procuring Entity in achieving
economy, efficiency, transparency/ fairness and equal treatment of
Tenders /Proposal.

(6) Consultant’ means a person or firm under contract with a procuring

Entity for providing intellectual and professional services.

(7) Contract price’ is the price stated in the notification of Award and
thereafter as adjusted in accordance with the provisions of the
contract.

(8) CPTU’ means the Central Procurement of Technical Unit, established

by the Implementation Monitoring Evaluation Division of the
Ministry of Planning for carrying out the purposes of the Act. And
these Rules.

(9) Day works’ means works carried out following the instructions of the
procuring Entity of the authorized project manager and is paid for on
the basis of time spent by the contractor’s workers and equipment at
the rates specified in the bill of quantities (BQQ) in addition to
payments for associated materials and plant

(10) Defect ‘is any part of the works not completed in accordance with the
contract.

(11) Defects Correction Certificate ‘is the certificate issued by project

manager upon correction of defects by the contractor.

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(12) Defects Liability Period ‘is the period mentioned in the standard
document for rectification of defects if arises after the completion of
the project and calculated from the completion date.
(13) Delegated Procurements ‘means a procurement undertaken by
specialized procuring Entity on behalf of a Ministry, Division and
Department of Directorate when the beneficiary entity delegates the
task to such procuring Entity.

(14) Force Majeure’ means an event or situation beyond the control of the
contractor, a supplier or consultant that is not foreseeable, is
unavoidable, and not due to negligence or lack of care on the part of
the contractor, such events may include but not be limited to act of the
God in the sovereign capacity, wars or revolutions, fires, floods,
epidemics, quarantine restrictions and freight embargoes.

(15) Framework Contract ‘means a contract, effective foe a given period

of time between one of more procuring Entities and one of more
suppliers establishing the terms governing the procurement of goods
and related services with regard to price and where appropriate the
quantity of quantities envisaged.

(16) Goods’ means raw materials, products and equipment and objects in
solid liquid or gaseous form, electricity and related services if the
value of such services does not exceed that of the goods themselves.

(17) Intended Completion Date’ is the date on which it is intended that

the contractor shall complete the works as specified in the contract
and may be revised only by the project Manager by issuing an
extension of time or an acceleration order.

(18) Multiple Dropping’ means submitting tenders to more than one place
as designated by the procuring entity.

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(19) Opening Committee’ means Tender Opening Committee (TOC) or a
Proposal Opening Committee (POC) constituted under Section 6 of
the Act.

(20) Pre-Qualification ‘means a procedure for demonstrating

qualifications as pre-condition for being invited tender.

(21) Primary place’ means the office of the procuring Entity where all
Tenders shall be taken to from secondary places or received and
opened.

(22) Procurement’ means the purchasing or hiring of goods or acquisition

of goods through purchasing and hiring and the execution of works
and performance of services by any contractual means.

(23) Project Manager’ is the person named in the contract or any other
competent person appointed by the procuring Entity and notified to
the contractor who is responsible for supervising the execution of the
works and administering the contract.

(24) Public Funds’ means any funds allocated to a procuring Entity under
Government budget or loan, grants and credits placed at the disposal
of a procuring Entity through the Government by the development
partners or foreign states or organizations.

(25) Public Procurement’ means procurement using public funds.

(26) Secondary Place’ means the other place(s) designated by the

procuring Entity in exceptional cases, where tenders can be dropped
but not opened.

(27) Short list’ means a list of applicants deemed suitable to be invited to

submit proposals for intellectual and professional services following
the evaluation of expressions of interest.

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(28) Supplier’ means a person/corporate body under contract with a
procuring Entity for the supply of goods and related services under the
Act.

(29) Tender or Proposal’ depending on the context , means a tender or a

proposal submitted by a tenderer or consultant for delivery of goods,
works or services to a procuring Entity in response to an Invitation for
tender or a Request for Proposal and for the purposes of the Act,
Tender also include quotation.

(30) Tender document or Request for Proposal document’ means the

document provided by a procuring Entity to a tenderer or a consultant
as a basis for preparation of its tender or proposal.

(31) Works’ means all works associated with the construction,

reconstruction, site preparation, demolition, repair, maintenance or
renovation of railways, roads and highways or a building, an
infrastructure or structure or an installation or any construction work
relating to excavation, installation of equipment and materials,
decoration, as well as physical services ancillary works, if the value of
those services does not exceed that of the works themselves.

(32) CPTU ‘means the Central Procurement Technical Unit in the

Implementation Monitoring and Evaluation Division (IMED) of the
Ministry of Planning.

(33) Enlistment ‘means persons and/or firms who are registered by a

procuring Entity as qualified potential teachers, maintained on a list
and who are eligible to participate in tender for procurement of Goods
and related services and/or procurement works and physical services
under Restricted Tendering Method. The list and the qualifications of
such persons and/or firms are reviewed and updated on an annual
basis (Defined in the Procedures)

(34) Ethics ‘ means the moral principles and rules of conduct that shall be
followed and that are applicable to all personnel of a procuring Entity
involved in public procurement. However, these shall also be

21
 applicable for applicants, tenderers, suppliers, contractors and
consultants who are expected to observe the highest standard of ethics
during the implementation of procurement proceedings and the
execution of subsequent contracts.

(35) Post- qualification is a process undertaken by a procuring entity at

the end of the tender evaluation stage to check that the successful
tender meets the qualification on the basis of which it was pre-
qualified and or qualification requirements set out in the tender
document. Such checks may include physical verification of site
and/or plant.

(36) Procuring Entity means Ministries, Divisions,

Departments/Directorate and /or local Government agencies (e.g. City
Corporations, Municipalities, etc.), Corporations, Autonomous, Semi-
Autonomous bodies or other units or sub-divisions thereof to the
extent that they use public funds for procurement. The units and/or
sub-divisions also include development projects and programmed. In
such entity an individual or group of individuals, assigned by the
Head of a Procuring Entity(HoPE) or an officer authorized by
him/her, undertakes the issue, receipt and evaluation of tenders and
subsequent award of contracts under the delegation of financial
powers.

(37) Quotation means the simplified form of obtaining priced offers from
a selected number of suitable tenderers in response to a direct request
by a procuring entity in order to procure low-value, off-the –shelf,
standardized goods and related services and/or works and physical
services.

22
 Logical Stages/Steps for Public Procurement
1. Inclusion in Annual Procurement Plan
2. Framing of detail cost estimate and having its approval from competent
authority.
3. Preparation of tender document
4. Invitation for tender(IFT) and issuing/selling of tender documents to
tenderers and holding pre-mid meeting where applicable
5. Formation of Tender Evaluation Committee(TEC)
6. Receiving and opening of tenders
7. Evaluation of tenders by TEC.
8. Approval of tenders by approving authority.
9. Awarding and signing of contract.
10. Payment of mobilization advance where applicable.
11. Execution of works.
12. Supervision of works
13. Preparing and making of running bills
14. Final inspection of works and correcting defect if there is any.
15. Preparation and payment of final bills.
16. Preparation of project completion report (PCR).
17. Making/handling over of the project to requiring body.
Methods of procurement
There are 7(seven) methods of procurement. They are as follows:
1. Open Tendering Method(OTM)
2. Limited Tendering Method(LTM)
3. Direct Procuring Method(DPM)
4. Expression of Interest(EOI)
5. Request for Quotation(RFQ)
6. Two Stage Tendering Method(TSTM)
7. Concession Contract Method(CCM)/Public Private Partnership
(PPP) Method

23
1. Open Tendering Method (OTM)
Open Tendering Method can use for all kinds of procurement. Generally use this
method for big procurement. For appointment of national and international
tenderer this method is used. Foreign tenderer can individually participate or they
may form joint venture with local tenderer.
Among all the tendering methods, OTM is the most preferred method. The reasons
are as follows:

 Invitation for Tender (IFT) is widely published in the important

daily Bengali and English news papers.
 Sufficient time (≥ 28 days)is given for preparation and submission
of tenders.
 The value of procurement is unlimited.
 Anybody /organization who has required qualification can compete
the tender.
 All the processes from selling of tenders to the award of contract are
very much transparent. So there is little scope for irregularities and
as such as avoidable of any sort of complain.

2. Restricted Tendering Method (RTM)/Limited Tendering Method (LTM)

Conditions for RTM/LTM :

 The procurement must be special nature for which there are limited
number of contractors/suppliers
 The value of procurement is limited to 30 lacs for works and 15 lacs
for goods. The time of procurement is very short (14 days).

Procedures:

 A panel of contractors/suppliers to be selected at the beginning of

the year. The list shall have to be revised at the end of the river. Bad
performers will have to be deleted and new good performers will
have to be included.
 The contractors enlisted in the panel will compete in the LTM.
 For works not less than 14 days will be allowed for appointment and
submission of tenders. For goods it will be 7 days.
24
  Time for awarding notification and signing the contract after
approval will be 21 days.
 Tender security is not mandatory but preferable.

3. Direct Procuring Method (DPM)

Generally proprietary items of goods are procured by DPM. Proprietary items are
those items whose prices have been fixed by the Government Procurement of such
goods through tendering will cost extra as well as will take more time.

4. Expression of Interest (EOI)

For selection of consultant for performing the feasibility study and design of
infrastructure before appointment of contractor, this method is used. In this method
a panel of potential interested person/firm is selected.

5. Request for Quotations Method (RFQ)

For small and urgent requirement of works/goods/services Quotations are
taken/collected from genuine contractors/suppliers. The lowest and workable one
is selected for performing the procurement.

6. Two Stage Tendering Method (TSTM)

Two Stage Tendering Method is used for the following types of procurement:

1. When the procurement is large, complicated and of special nature.

The PE (Procuring Entity) has no clear idea about the procurement.
2. When PE has no requisite manpower having expertise to prepare
tender documents.
3. The procuring period is very short. PE has no sufficient manpower/
expertise to prepare tender document in short time.

The name itself indicates that this type of tendering method has two stages. They
are as follows:

Stage-1
The PE gives the preliminary idea of the procurement. The tenderers prepare and
submit the drawing, design and BOQ as details as possible satisfying the

25
requirements. At first stage all the tenders are examined and a short list is prepared
with the tenders which nearly satisfy the requirements.
Time for preparation and submission of proposal is 42 days from the date of
publication of advertisement in the News paper.
Stage-2
From the short listed tenderers financial offers are invited allowing or suggesting
minor modification of the documents submitted at first stage, the lowest tenderer is
selected conducting usual processes. Time for preparation and submission of
financial offer is 21 days.

Two Envelope System

Tenders are invited in two envelopes. In one envelope technical offer is submitted
and in another envelope financial offer is submitted. First technical offers are
opened. Those who qualify in technical offer their financial offers are opened.
Among them the lowest tender is selected conducting usual process.

Electronic Government Procurement (e-GP) is the application of an efficient

high quality management framework to public sector procurement, facilitated
through online information and processes. E-GP has the potential to strengthen the
accountability, transparency, efficiency and effectiveness of this sensitive high
value government function.

e-Government procurement (e-GP) as the collaborative use of Information and

communications Technology (especially the Internet) by government agencies and
other actors of procurement community in conducting all activities of Government
Procurement Process Cycle (GPPC) for the acquisition of goods, works, and
consultancy services with enhanced efficiency in procurement management.
e-GP System is a web based system which encompasses the total procurement
lifecycle and records the all procurement activities. The purpose of this system is
to maintain complete and up-to-date Public Procurement System activities of all
public agencies as well as provide tender opportunities to all potential tenderers
from Bangladesh and abroad.
Central Procurement Technical Unit (CPTU), IMED, Ministry of Planning is
developing the e-GP System using the cutting edge technology and global
expertise complying with the Public Procurement Act 2006 and Public
Procurement Rules 2008. Bangladesh e-Government Procurement (e-GP) system
consists of a comprehensive set of interlinked modules. These modules are:

26
1. Centralized Registration (Contractors/Suppliers/Consultants, Procuring
Entities and other actors of e-GP)
2. Workflow management System
3. e-Tendering (e-Publishing/e-Advertisement, e-Lodgement, e-Evaluation, e-
Contract award)
4. e-Contract management System (e-CMS)
5. e-Payments
6. Procurement Management Information Systems (PROMIS)
7. System and Security Administration
8. Handling Errors and Exceptions
9. Application Usability & Help

27
3.3 Benefits of e-Government Procurement
World wide, some 20 countries have already developed e-GP to a significant extent
over the past 10 years. Another twenty or so countries are in the process of
planning for e GP or are in the early implementation phase. The Bangladesh
government procurement usually makes up between 10 and 20% of GDP.
The benefits achieved include:
 a reduction in the cost of the procurement process for both government and
the private sector
 improved process transparency, credibility, consistency and integrity
 improved accountability for procurement outputs and outcomes
 assisting the conduct of international trade and commerce.

8.Concession Contract Method/PPP:

‘means a contract with combined public and private financing for the provision and
operation of public utilities and other public services, e.g. construction and
commissioning of water treatment plant including distribution of water supply.
Such type of contract Government provides the following facilities:

1. Provide land for the project.

2. Facilities for utility service connections
3. Ensure sale of products/services
Private organization provides all the resources, such as money, manpower,
materials, machineries and management.

Forms of concession contract: There are different forms of concession

contract:
1. Build Own Operate(BOO)
2. Build Operate Transfer(BOT)
3. Build Own Operate Transfer(BOOT)

1.Build Own Operate(BOO)

For which a private contractor builds, owns and operates a new facility at its risk.
The Government or public authorities usually provide revenue guarantees through
long-term contract for the purchase of the product/services provided by the
contractor.
2. Build Operate Transfer(BOT)
For which a private contractor builds, and operates a new facility and then transfers
ownership to the Government or Public authorities at the end of the concession

28
period. The Government or public authorities usually provide revenue guarantees
through long-term contract for the purchase of the product/services provided by the
contractor. There is usually a portion in the original contract for the contractor to
purchase the facility.

3. Build Own Operate Transfer (BOOT)

For which a private contractor builds, owns and operates a new facility and then
transfers ownership to the Government or public authorities at the end of the
concession period. The Government or public authorities usually provide revenue
guarantees through long-term contract for the purchase of the product/services
provided by the contractor. And shall purchase the facility at the end of the
concession period or allow the contractor to continue to own and operate it, but not
necessarily with the previous revenue guarantees. In such cases, a separate contract
may be made at the end of the first concession period.

Standard Tender Document (STD)

STD is a pre set document prepared by CPTU where all the conditions are included
according to Public Procurement Regulations to invite tender. For all kinds of
procurement STD is used. The STD has 7(seven) chapters. They are (1)Instruction
to Tenderer (ITT) (2) General conditions of contract (3) Tender data Sheet (4)
Particular Conditions of Contract(PCC) (5)Specifications (6) Bill of
Quantities(BOQ) (7) Drawings and other Formats /Forms.
Procuring Entity is responsible for the preparation of the tender document
following Standard Tender Documents prepared and issued by CPTU. Procuring
Entity during preparation of tender documents, keep close collaboration with the
beneficiary and end users.
The tender document shall furnish all information necessary for a potential
tenderer to prepare a tender for goods or works and proposal for services. The
details and complexity of the information required may vary with the nature of the
proposed tender package. The tender document shall include:

(a) Instructions for preparation and submission of tenders

(b) Information concerns the last date and place(s) for receipt of tenders
including the date, hour and place of the tender opening with an
announcement that the tenderer or their representative(s) may attend the
tender opening.
(c) Tender submission sheet and sample formats for tender security,
performance security and manufacture’s authorization where applicable.
(d) The number of copies to be submitted with the original tender.

29
 (e) Conditions of contract, general and particular.
(f) Specification of requirements, including time limit for delivery or
completion.
(g) Evidence to be provided by the tenderer to demonstrates its qualification
for purposes of post-qualification verifications to be conducted by the
procuring entity.
(h) The period for which the tender shall remain valid.
(i) The criteria to be taken into account in the evaluation of tenders and
award of contract and the way in which those criteria shall be evaluated.
(j) A requirement that a tenderer shall, in the form specified in the tender
documents, pledge not to engage in any corrupt, fraudulent, collusive or
coercive practices of the kind referred to in Regulation 15(Corrupt,
Fraudulent, Collusive or Coercive practices).
(k) A statement to the effect that the procuring entity may reject all tenders at
any time prior to the acceptance of a tender (Regulation 14; Rejection of
all tenders, proposals and quotations).
(l) A provision for holding a pre-tender meeting with potential tenderers,
where appropriate, in order to provide clarification on the conditions of
the tender documents, and
(m) a notification in the Tender Data Sheet concerning the process to be
followed by a tenderer if it wishes to make any complaint arising under
Regulation 50 (Right to complain) and Regulation 51(Complaints to the
administrative).

In addition the tender document where appropriate shall define the texts, standard
and methods that shall be used to judge the compliance of the goods/equipment to
be delivered or work to be performed, with technical specification. Any drawings
included in the document shall be consistent with the text of the technical
specification.
All prospective tender shall be provided the same information and be assured of
equal opportunities to obtain additional information promptly upon request.
Procuring Entities shall provide reasonable time to work/project sites for visits by
potential tenders. For work or complex supply contracts, particularly for those
requiring refurbishing existing work or equipment, Procuring Entity may arrange
pre-tender meeting with the potential tenders where they can seek clarifications.
Minutes of the pre-tender meeting shall be supplied to the prospective tenders even
those who do not attend the meeting.

Any additional information and/or correction of errors in the tender documents,

which are identified as a result of this meeting shall be calculated to all tender in
30
the form of an addendum to the tender document, that shall have a date and a issue
number, the addendum must be circulated allowing sufficient time before the
deadline for the receipts of tenders to enable to take appropriate actions, if
necessary, the deadline for tender submission shall be extended.

Preparation of tender Document for submission

1. Purchasing of tender documents

2. Pre-work before filling the tender documents. Such as site visit of
project site.
3. Collection of required documents.

Preparation and submission of tender

1. To study the instructions to tenderer (ITT) minutely and prepare a

check list.
2. To fill up the tender papers correctly according to ITT using the check
list.
3. To quote the rates with judgment and to prepare analysis where it is
needed.
4. To sign each and every page of the tender documents by authorized
person
5. To check whether the tender paper have been correctly filled up.
6. To enclose required supporting papers including tender security.
7. To seal the original and duplication tender papers enclosing them into
appropriate envelopes/packets
8. To write the name of the procurement at upper right side of the
envelope and name of the tenderer at the upper left of the envelope.
9. Finally to submit the tender at defined place on or before schedule
time.

Formation of Tender Opening Committee (TOC)

TOC will consist of three members. One member will be from TEC, one member
from Procuring Entity (PE) and one member from other organization preferably is
from requiring body/Line Ministry.
The format is as follows:

1. Chairman-1
2. Member-1
3. Member Secretary-1
31
(A) Facilities provided to TOC

1. PE will arrange the meeting of TOC

2. Office/place of opening tenders should be befitting with all necessary
furniture and related facilities.

(B) Particular Functions of TOC

1. TOC will open the tenders at the place, date and time as mentioned in
IFT in presence of the tenderers or their authorized representatives who
like to remain present.

2. TOC will ensure the compliance with the following:

(i) Tenders will be opened within three( one hour in case of e-

GP) hours after last date and time of submission of tenders.
Tenders will be opened in presence of the tenderers or their
representatives (if any) who like to remain present.
(ii) After opening the tenders, the following information from the
tenders must be read out:

(a) Name of the tenderers and address

(b) Tender withdrawal, substitution and correction
(if any).
(c) Tendered (quoted) price.
(d) Discount (if any)
3. Late submitted tender will not be received and returned unopened.
4. If any information as mentioned above is not read out or if not written
in tender opening sheet (TOS) then the tender will not be considered in
TEC.
5. TOC members will sign TOS
6. Tenderers/authorized person present will sign the attendance sheet.
7. After completion of opening works the tenders should be sent to PE
office in safe custody.

32
Form of Tender Opening Sheet

Office of the………….
Address………………………
Name of Tender ..........................................................................................
Date of Opening Tender :………………….
Place and Time of opening :……….
Estimated cost :............................
Sl Name of Tenderers with Tender withdrawal, Tendered Discount Remarks
No. address substitution and (quoted) price. (if any)
correction (if any).

1
2
3

Signature of the committee members Signature of the tenderer/

1. Representative (if any)
2. 1. …………… 2…………………
3.

Tender/Bid Evaluation
Tenders are evaluated to select the lowest workable tender from among the
responsive tenders. Tenders are evaluated by Tender Evaluation Committee (TEC)
as per rules and regulations laid down in the tender documents.
Formation of TEC
The procedures for the formation of TEC are as follows:
1. The HOPE or his authorized person will appoint the members of the
TEC.
2. The number of members will not be less than 5(five) or more than
7(seven)
3. Two members will from other organizations that have requisite
expertise.
4. One member preferably is appointed from requiring body/line ministry.
5. Member may be appointed from professional bodies or universities.
6. TEC must be formed before receiving of tenders.
7. Once TEC is formed cannot be dismantled until the tender is finally
disposed of.
8. TEC member cannot be changed or removed without valid reasons as
per PPR/PPA
9. TEC members will get honorarium in attending meetings.

33
Functions of TEC
The functions of TEC are as follows:

1. Tenders will be evaluated by TEC according to the instructions laid

down in the tenders to select the lowest workable tenderer.
2. TEC will follow the following procedures for evaluating the tenders:

a. 1st step- The TEC will consider tender responsive that conforms
in all respects to the requirements of the tender document without
material deviation, reservation or omission. They will prepare a
list with the responsive/ successive tenders and then select 1st
successive lowest tender.
b. All members present in the meeting will sign the tender
evaluation sheet mentioning name and designation.
c. Any member can give note of descent.
d. TEC chairman will place the evaluation report with the note of
descent (if any) to the approving authority.
e. The approving authority will take the final decision. If needed
they can take expert opinion in this matter forming an expert
committee.

3. TEC can consider any responsive tender, if it contains a minor

deviation which does not affect financial character of the tender.
4. TEC chairman can ask for any clarification in writing. The matter will
be kept secret.
5. For any minor arithmetical correction the matter should be informed to
the concerned tenderer at the earliest in writing.
6. The lowest tender will be recommended for approval or any other
action as deem fit to the approving authority.
7. TEC member will sign and submit a ‘prescribed declaration form’
individually as well as jointly mentioning that h/they have no
connection what so ever with any of the tenders in any form.

Tender Evaluation Report (TER)

TER is an important document in public procurement. In case of e-GP TER is
automatically generated. This should be correctly and nicely prepared. This report
is forwarded to the approval authority for taking final decision about the tender.
The TER contents should be as follows:
1. The tender documents along IFT
2. Tender opening sheet(TOS)
34
 3. Comparative Statement
4. Ranking
5. TEC meeting minutes
6. Declaration of TEC member both individually and jointly and
7. Copy of papers floated to web site.

Contractual Obligations /Provisions

After approval of tender by the competent authority the selected tenderer is

awarded letter of consent for signing the contract. Once the contract is signed
between employer and the contractor, all the terms and conditions of the tender
documents turn into contractual obligations/provisions. The contractor and the
employer have to abide by the contractual obligations/provisions.
There are two types of contractual provisions according to PPR-2003/2008.

1. General conditions of contract(GCC)

2. Particular conditions of contract(PCC)

In addition of those, there is another type of contractual provisions called special

terms and conditions (STC), special terms and conditions differ from department to
department as well as nature of procurement.

Price adjustment factor

Before introduction of PPR-2003 and subsequently PPA 2006 and very recently
PPA 2008, contract between the employer and contractor would have been signed
according to form No.2911. According to form No.2911, once the contract would
be signed, there was no scope of enhancement of rates whatever would be the
situation. As a result whenever rates of materials would increase abnormally, the
contractor would abandon the work accepting the forfeiture of the Earnest Money
(E/N). Re-tendering would require time. Sometimes the lowest rate of retender
would have been much higher than that of the lowest tender contracted before.
Secondly, if the contractor would not abandon the work to save the good will of
the firm there would have the intention of using inferior quality of material as well
as to delay the completion of work. In both the cases, there would have the
financial loss to the employer considering all related works.

To overcome the above difficulties PPR-2003 and then PPR-2008 has made a
provision to enhance the rates of materials on certain conditions. The provision
provides a factor called Price Adjustment Factor. In other words the factor
35
for enhancement of contracted rates of materials on certain conditions is
called Price Adjustment Factor (PAF).The adjusted contract price is then
calculated by multiplying the contract unit price with the price adjustment factor
(PAF). The formula indicated below is an algebraic expression:

Adjusted contract unit price = Contract unit price × PAF

P = A + B(Im/lo)

Where, P is the adjustment factor

A and B are coefficients specified in the PCC
The value of coefficients are mentioned below:-
A - Coefficient ≥ 0.85 ≤0.90
B - Coefficient ≥ 0.10 ≤ 0.15

A + B = 1.0 (always)
Im – Index during the month the work has been executed
i.e Price of material at the time of execution (to be
collected from Bangladesh Bureau of Standards (BBS)
Io - Index prevailing twenty eight days prior to the deadline
for submission of tender. i.e. price of material before 28
days of receiving tenders(to be collected from
Bangladesh Bureau of Standards (BBS) published on
monthly basis)

In case not available, then other countries or authorities of the sources

mentioned in Appendix of the Tender may be used.

Conditions of applicability of PAF

1. Project implementation period must be > 18 months.

2. It must be written in Particular Conditions of Contract (PCC).

Example-1
The contracted value of ongoing construction work is BDT 50 crores. But the rate of
reinforcement item increased abnormally due to force majeure for which the contractor
was given PAF over contract unit rate of that item. Determine the contract unit rate of
reinforcement item if Im = 5550.00 BDT and Io = 5000.00 BDT. Adjusted Contracted unit

36
Rate is 4500.00 BDT per mton and also calculate the increment percent. Use usual
values of the coefficients.

Solution:
We know,
Price Adjustment Factor, PAF = A+B(Im/Io)
Assume , A = 0.90 and B = 0.10
PAF = 0.90 + 0.10 (5500/5000)
= 1.01
Adjusted unit price = Contract unit Rate × PAF
BDT 4500.00 = Contract unit Rate × 1.01
Contract unit Rate = BDT 4500.00/1.01 = BDT 4455.45 and
Increment = 1.01-1 = 0.01= 1% Ans

Example:2
The contract value of ongoing construction work is BDT 50 crores. But the rate of
reinforcement item increased abnormally due to force majeure for which the contractor
was given PAF over contract unit rate for that item. The contract unit rate of
reinforcement item is BDT 45000.00 if Im = BDT 6550.00 and Io = BDT 6000.00.
Determine Adjusted Unit Rate. Use usual values of the coefficients

Solution:
Given, contract unit = BDT 45000
Im = BDT 6550.00 &
Io = BDT6000.00

To be determined, Adjusted Unit Rate .

We know,
Adjusted unit price = Contract unit Rate × PAF .............. Eq-1
Price Adjustment Factor, PAF = A+B (Im/Io)

Assume , A = 0.90 and B = 0.10

PAF = 0.90 + 0.10 (6500/6000) =
= 1.008
Putting the value in the Eq-1

Adjusted unit price = Contract unit Rate × 1.008 = 4500 × 1.008 = 4536.00 BDT

37
 Specifications
Technique of specification writing

Technique means method or way of doing or performing act(s) in an intelligent

way to have something as expected.

Speciation means – the details describing the design, materials, tools and plants
etc. used to make a thing or to deliver goods or services. In other words –
specification means a total understandable description of what is or are required to
be done to make a thing and or to have goods or services.

Specification of works:

1. Technical specification describes the technicality to be adopted of doing

the work using prescribed equipments and machineries where needed.

2. Materials specification describes the description of materials to be used.

The physical and Engineering specifications :

a. Physical specification-size. Shape, color and other physical

specification.
b. Engineering specification-describes the engineering
properties of the materials such as compressive strength,
tensile strength, durability, etc.

Use of specification of works:

1. Short description-For preparing cost estimate for using in

DPP.
2. Detail description-For preparing the BOQ of tender
documents.

Materials

All the building structures are composed of different types of building materials or
construction materials. It is very essential for an engineer or contractor to become
conversant thoroughly with these building materials of appropriate or standard
specification.

38
First class bricks

Specifications of first class bricks according to BDS 208 are as follows:

1. Bricks shall be of uniform color, shape and size having sharp

rectangular sides and edges and parallel faces.
2. Bricks shall be sound, hard and well burnt homogeneous in texture
and free from flaws and cracks.
3. Bricks shall emit a clear metallic sound when struck with a small
hammer or another brick.
4. A first class brick should not absorb more than 1/6‫ ״‬of its weight
when immersed in water for 24 hours.
5. A first class brick should not break when struck against another
brick or when dropped at T-position on the hard ground from a
height of 3 to 4 ft.
6. Standard dimensions of bricks shall be 240 mm ×115 mm×70 mm.
7. Allowable variations in dimensions shall be:

a. In length not more than 6 mm

b. In breadth not more than 5 mm
c. In height not more than 1.5 mm

8. Unit weight of brick shall be 1100 kg/cum

9. Compressive strength of full bricks should not be less than 3000psi
and for half bricks it should not be less than 4000 psi

Supply of Ordinary Portland cement

(i) All cement for concreting work shall be supplied by the contractor. Unless
otherwise permitted by the Engineer, the cement to be used shall be ordinary
Portland Type-1, conforming to the standard physical requirements of setting time,
fineness and compressive strength mentioned in the specifications ASTM C150,
BS 12 BDS 612 BNBC 2.4.7; 5.2.1; BDS 2.32 or its equivalent must conform to
the requirements.

(ii) Prior to use of the cements from storage areas the contractor shall carry out an
inspection of the stored cement and shall satisfy himself that the cement is of
approved quality and in a condition suitable for concrete mixes required by this
specification.

39
(iii)Bagged or bulk cement which has partially set or which contains lumps of
caked cement shall be rejected. The use of cement reclaimed from discarded or
used bags shall not be permitted.

(iv) No cement shall be used in the work that, in the option of the Engineer, will
result in a concrete of quality lower than that required by the specifications.

Tests for cement :

Item Test Item Test Method Requirement

No. limits
1. Compressive strength of hydraulic 3 days ASTM C109 12.4 Mpa
cement mortars using 2 inch or 50
mm cube specimens. 7 days 19.3Mpa
Initial ASTM C191 More than45
2. Time of setting of hydraulic cement minutes
by Vacate needle
Final Less than 375
min.
3. Fineness of port land cement by air ASTM C204 Minimum 280
permeability apparatus m2/kg

Project Evaluation

Project evaluation is an important planning tool. Project evaluation means

thorough examination and analysis of project activities at different stages to find
out or suggest remedial measures if there is any problem or bottleneck at any
stages of project implementation. Project evaluation has three stages as outlined
below:

Stage-1: Pre- Evaluation

Pre evaluation means evaluation of project activities before implementation
of project starts .Rather it means evaluation of project during project
formulation and preparation. At this stage each and every activities of the
project is examined and analyzed in detail whether any activity would face
any problem during implementation. If there is any such activity, the activity
is redefined, deplaned and redesigned. In this way the formulation of the
project is finalized.
Stage-2 : Ongoing Evaluation
This type of evaluation is done during implementation stage of the project. If
there arises any problem during implementation stages, ways and means are

40
 found out to solve the problem. Ongoing evaluation requires experience in
execution of such type of project. Ongoing evaluation demands quick
solution of any problem. Otherwise implementation of the project will be
delayed and cost may also increase.

Stage-3 :Post-Evaluation /Feedback

This type of evaluation is done after implementation of the project and
during operation or functioning of this project. If there is any difficulty in
operation or functioning of this project, the activity is partly or fully redone
to satisfy the situation as far as possible. It also prepares the feedback for
similar nature project. Feedback study helps to prepare and implementation
of similar nature project. That is why sometime post-evaluation is also called
feedback evaluation.

Professional ethics
Professional ethics encompass the personal, organizational and corporate standards
of behavior expected of professionals. Professionals and those working in
acknowledged professions, exercise specialists knowledge and skill. How the use
of this knowledge should be governed when providing as service to the public can
be considered a moral issue and is termed professionals ethics.
Professionals are capable of making judgments, applying their skills and reaching
informed decisions in situations that the general public cannot, because they have
not received the relevant training. One of the earliest examples of professionals
ethics is the Hippocratic oath to which medical doctors still adhere to this day.
Some professional organizations may define their ethical approach in terms of a
number of discrete components which are as follows:

1. Honesty
2. Integrity
3. Transparency
4. Accountability
5. Confidentiality
6. Objectively
7. Respectfulness
8. Obedience to Law
9. Loyalty

41
Engineering Ethics

Definition of ethics
Ethics means rules of behavior, the moral principles that govern or influence a
person’s behavior in his day to day life. Ethics teaches what is right and what is
wrong and teaches to do right thing. Values which guide how we ought to behave
are called moral values. Such values include respect, honesty, frames,
responsibility, simplicity etc. These are reflected in ones activity and behavior.

Attaining and Maintaining Ethics

Attaining and maintaining ethics in personal/family life as well as social, service

life and in business is very important. It is not easy to acquire and maintain. It
requires strong will/determination and discipline.

Acquiring ethical values and maintaining the same depend on many factors. Some
are as follows:

1. Educational back ground, both normal and informal

2. Family back ground, past and present.
3. Institutional (service/business) environment.
4. Encouragement and recognition from family/society/state.
5. Strong determination and will.
6. Sense of dignity and honor.
7. Religious teaching and virtual/observance, and
8. Most importantly, the company one keeps in one’s personal life.
Once a teaching, thinking, ideology and idea imprinted on mind, it is not easy to
remove or erase. It requires tremendous effort and will power to change it. It
should bear in mind that who maintains ethics get heavenly feelings in his body
and mind. He leads a respectful life in society too.
Engineering Ethics
Engineering ethics is the field of applied ethics and system of moral principles that
apply to the practice of engineering. The field examines and sets the obligations by
engineers to society, to their clients, and to the profession.
In the United States , the National Society of Professional engineers released 1946
its Canons of Ethics for Engineers and Rules of Professional Conduct, which
evolved to the current Code of Ethics, adopted in 1964.Currently, bribery and
political corruption is being addressed very directly by several professional

42
societies and business groups around the world. However, new issues have arisen,
such as off shoring, sustainable development and environmental protection, that
the profession has having to consider and address.
Fundamental Principles of Engineering Ethics
Engineers uphold and advance the integrity, honor and dignity of the engineering
profession:
1. Using their knowledge and skill for enhancement of human welfare and
the environment.
2. Being honest and impartial and serving with fidelity the public, their
employers and clients.
3. Striving to increase the competence and prestige of the engineering
profession and
4. Supporting the professional and technical societies of their disciplines

Fundamental Canons
Many engineering professional societies have prepared codes of ethics. The
general principles of the codes of ethics are largely similar across the various
engineering societies and chattering authorities of the world which further extend
to the code and publish specific guidance. In United States, the National Society of
Professional Engineers released 1946 its 7(seven) Canons of Ethics for Engineers
These seven fundamental canons for ethics of engineers are follows:-
1. Engineers shall hold paramount safety, health and welfare of the public
and shall strive to comply with the principles of sustainable development
in the performance of their professional duties.
2. Engineers shall perform services only in areas of their competence.
3. Engineers shall issue public statements only in an objective and truthful
manner.
4. Engineers shall act in professional matters for each employer or client as
faithful agents or trustees and shall avoid conflicts of interest.
5. Engineers shall build their professional reputation on the merit of their
services and shall not compete unfairly with others.

6. Engineers shall act in such a manner as to uphold and enhance the honor,
integrity and dignity of the engineering profession and shall act with zero
tolerance for bribery, fraud and corruption.

43
 7. Engineers shall continue their professional development throughout their
careers, and shall provide opportunities for the professional development
of those engineers under their supervision.
Responsibility of Engineers
The engineer recognizes that the greatest merit is the work and exercises his
profession committed to serving society, attending to the welfare and progress of
the majority. By transforming nature for the benefit of mankind, the engineer must
increase his awareness of the world as the abode of man, his interest in the
universe as a guarantee of overcoming his spirit, and knowledge of reality to make
the world fairer and happier. The engineer should reject any paper that is intended
to harm the general interest, thus avoiding a situation that might be hazardous or
threatening to the environment, life, health, or other rights of human beings. It is an
inescapable duty of the engineer to uphold the prestige of the profession, to ensure
its proper discharge, and to maintain a professional demeanor rooted in ability,
honesty, fortitude, temperance, magnanimity, modesty, honesty, and justice; with
the consciousness of individual well-being subordinate to the social good. The
engineer and his employer must ensure the continuous improvement of his
knowledge, particularly of his profession, disseminate his knowledge, share his
experience, provide opportunities for education and training of workers, provide
recognition, moral and material support to the school where he studied, thus
returning the benefits and opportunities he and his employer have received. It is the
responsibility of the engineer to carry out his work efficiently and to support the
law. In particular, he must ensure compliance with the standards of worker
protection as provide by the law. As a professional, the engineer is expected to
commit himself to high standards of conduct.
Conduct
There are several other ethical issues that engineers may face. Some have to do
with technical practice, but many others have to do with broader considerations of
business conduct. These include
 Relationship with clients, consultants, competitors, and
contractors
 Ensuring legal compliance by clients, client’s contractors, and
others
 Bribery and kickbacks, which also may include: gifts, meals,
services, and entertainment
 Treatment of confidential or proprietary information
 Consideration of the employer’s assets
 Outside employment/activities

44
 Industrial and labor Relations
Industrial and labor relation
Industrial relation in its wider meaning is a set of functional interdependence
involving historical, economic, social psychological, demographic, technological,
occupational, political and legal variations.
The theme of the IR revolves around three partners of the IR system namely
employers, employees and the government.
A number of factors such as social, economic and political have influence on IR in
any country.
In earlier days, workers hired as the principle of demand and supply governed IR.
It explains the nature of relationship that exists between the labor and the
management which is based on union and employer relations. It is also associated
with the collective bargaining between employer and trade union in relation to
wages and service conditions. According to employer, industrial relation is the
relation of employer and employee. Besides these the relationship between (a)
different unions (b) govt. and unions and (c) employer and govt. can also be
termed as industrial relations.

Importance of Industrial relations

A country’s economic development depends on industrial development. So
industrial relations are very much important. The importance of industrial relations
are as follows:

(i) Development of industrial sector: The development of industrial sector

depends on the good industrial relations. Good industrial relation means
harmonious relation among the workers, employees and other concerns.

(ii) Establishment of peace in industrial sector: A good industrial relation

is used to create an environment which is quite conducive for peaceful co-
existence.

(iii) Increase of productivity: Good industrial relation is a prerequisite for

increasing productivity.

(iv) Ensuring good working condition: Industrial relations help to establish

good working condition in the industry.

45
 (v) Establishment of good wage structure: Wage is a sensitive issue to
workers. They always demand higher wages for their services. But the
employers usually do not pay wages according to their demand. Through
discussion both the employers and employees try to reach an equitable
settlement and thus a good wages structure is established.

(vi) Helping in sharing profit: Sharing of profit is a vital issue for workers
as employers do not agree to pay their proper share to workers so they go
on strike. In this regard industrial relation helps and finds out and an
amicable settlement for sharing of profit with the management.

(vii) Developing moral of working: A good industrial relation develops the

morale of the employees; moral plays an important role to maintain peace
and discipline within the organization.

(viii) Maintaining balance of freedom: There is a significant difference in

degree of freedom between employer and employee. The collective
bargaining system is one of the process through which industrial relation
tries to reduce the gap.

(ix) Individual development and satisfaction: Industrial relation is a good

help to individual satisfaction and development.

(x) Reducing cost of production: Industrial relations recognize the worker

as an active participant to the production. This induces the workers to do
their work attentively, and thus reducing the cost of production.

Objectives of IR
The main objective of industrial relation is to establish cordial relationship between
employer and the employees. The objectives of the IR are as follows:

1. To maintain harmonious relationship between the employer and the

employee
2. To establish discipline among the workers.
3. To maintain good working environment within the organization

46
 4. To accomplish maximum work with minimum expenditure.
5. To find out dominant reasons of industrial dispute and find out their
remedies.
6. To establish good relation with workers for creating good and favorable
working condition.
7. To establish higher mutual cooperation and good will in the production
process and overall business performance.
8. To ensure industrial peace through mutual trust confidence
9. To establish and protect industrial democracy for participatory
management.
10. To enhance productivity through reducing absenteeism and labor
turnover.
11. To stop strike, lock-out, etc. by fulfilling the legal demand of workers.

Different actors of IR
There are three actors or parties concerned with the industrial relations. They are:

1) The employer: The employer is a vital party in case of industrial relations.

In fact the management represents the employer in an industry or
organization. Most of the employers think that the workmen want more and
more wages and want to do less and less work. This attitude leads the
employer to pay less to the employees; workers are not only the means of
production, but also a human being. They should be well treated as far as
possible.

2) The employee: The trade union is considered as a key factor to the

industrial relations. It is an association of workers where they can negotiate
with the employer. They can also create pressure on the employer to fulfill
their demand and to ensure the healthy condition of factories or work places
and to arrange the hours of work favorably. When all these demand are
fulfilled, they are greatly satisfied. As a result, they avoid unnecessary strike
and try to work with their best effort.

3) The Government: The govt. is the active party among the three parties of
industrial relations. It formulates policies to meet various problems which
are raised by the above two parties. Besides this, the govt. takes necessary
steps to reduce the conflict between the management and the trade union. By
this way, the govt. plays a great role in establishing a cordial relationship
between the employer and the employee.

47
Industrial Workers
There can be no study of industrial relations without an analysis of industrial
workers, who are the prime movers of commerce and industry. Now days an
industrial worker is more adjusted to his work than his predecessor.

Unemployment
When a person is able to work and wants to work but does not get employment
then he is said to unemployed. Unemployment is the macroeconomic problem that
affects people most directly and severely. Remaining unemployed is both mental
and physical distress. The effect of unemployment touches every member of the
everyday some workers lose or quit their jobs and some unemployed workers get
jobs. This perpetual ebb and flow determines the part of the labour force that is
unemployed.
The labour force dynamics determines the natural rate of unemployment. Let us
assume
L = Total labor force.
E = Number of employed labor force.
U = Number of unemployed labor force.

L = E + U …………………………………… (1)

Hence unemployment rate may be defined as U/L with usual meaning of U and L.
The following cycle determines the unemployment rate:

s = Rate of job separation

f = Rate of job finding

Job Separation
(s)

Employment Unemployed
(E) (U)

Job Finding
(f)

48
Together the rate of job separation and job finding determines the rate of
unemployment. When the number of people finding the job equals the number of
people losing jobs, then it is called the steady rate of labour market. Then the
steady rate condition is

f U = s E ………………………………… (2)

From equation-(1), E = L –U …………………………………(3)

Putting (3) in (2), f U= s(L-U )……………………………… (4)

Solving (4)
The rate of unemployment
U/L= s/(s + f) …………………………..... (5)

From the above (5) it is observed that the steady rate of unemployment U/L
depends on the rate of job separation s and job finding f. The higher the rate of job
separation, the higher the unemployment rate, the higher the rate of job findings
the lower the rate of unemployment.

From equation -(1), U = L-E ………………………………(6)

Putting (6) in (2), sE = f(L-E ) …………………………..(7)

Solving (4), the rate of unemployment

E/L = f/(s +f) ………………………….(8)

From the above equation (8), the steady state rate of employment E/L depends on
the rate of job separation s and job finding f. The higher the rate of job finding, the
higher the employment rate the higher the rate of job findings the lower the rate of
unemployment.

Example : In an industry 20000 labors work. The job finding rate and job separation
rate of that industry are 60% & 45% respectively. Determine the unemployment rate of
the industry.

Trade Unions
Trade unions are a major component of the modern industrial relations system. A
trade union of workers in an organization formed by workers to protect their
interests improves their working conditions, etc. All trade unions have objectives

49
or goals to achieve, which are contained in their constitution and each has its own
strategy to reach their goals.
Trade Unions came into being for a variety of purposes. They realized that if they
bargained as individuals, the employer would have a better leverage, for an
individual would not matter as much as a group in terms of the running of the
enterprise. Also, an individual may not be able to organize and defend his interests
as well as a group can.
Necessity of employer’s organization
The need for employer’s organization as stated by Mr. Naval Tata is for
a. The development of healthy and stable industrial relations.
b. To promote collective bargaining at different levels
c. To bring a unified employer’s view point on the issues of industrial
relations to the government in a concerted manner and
d. To represent in the meeting of ILC (International Law Commission) and
SLC (Students Loan Company) boards in conformity with tripartite
approach to labor matters.
Employer’s organization comes into being as a result of the information of the ILO
and the growing strength of the trade unions.
Employer’s organization is formed by businessmen to promote their own economic
interests. They are also called non-profit organization because non part of their
income can be distributed to its members the employers’ organization have certain
social responsibilities that

(i) Their stand should be consistent with the social objective of the
community/country.
(ii) They should along with their gains, keep in view the needs of the
developing economy, the requirements of planned growth and
importance of maintained of piece in industry, of promoting national
integration.
Other components of workers pay packet
A worker also receives a variety of other cash and noncash benefits, as a result of
his being an employee of an organization. They are called perquisites or fringe
benefits many of them are not directly related to the work or output of the
particular job. These perquisites are :
 Compensatory city allowance
 House rent allowance

50
  Leave travel concession
 Medical benefits
 Provident fund
 Gratuity

(a sum of money paid to an employee at the end of a period of employment.

"an end-of-contract gratuity of 20% of the total pay received")

 Pension fund
 Group linked insurance scheme-superannuation (monthly payment due
to pension) benefits
 Accident and death compensation while on duty in addition to other
schemes through the firm own insurance plan
 Leave with pay
 Education allowances
Other perquisites include:
 Food subsidy
 Transport subsidy
 House construction loan

These perquisites are a cost to the employer for which the wage corner does not do
any specific work. There are variations in the quantum, type and cost of fringe
benefits from one industry to another, from one region to another and from one
sector to another.
Collective Bargaining
Initially, individual employees negotiated directly with a potential employer on the
wages they would receive for the service provided. With the growth of population,
however, and the pace of industrialization, large numbers of people entered the
labor market. This brought about several changes. Individual employers and
employees did not find in convenient any more to negotiate individually.
Employers also found it more convenient to deal with a group rather than
individuals
This led to the phenomenon to collective bargaining, concept first identities by
Sidney and Beatrice Webb in Britain and also by Gompers in the USA.
The growth of collective bargaining was linked to the growth of trade unions of
employees at first and of employers later.

51
The pattern of growth of collective bargaining in some countries began from local
bargaining at plant level to region-cum-industry level and finally to national level
bargaining.
The ILO workers Manual defines collective bargaining as
Negotiation about working conditions and terms of employment between an employer, a
group of employers or one of more employers’ organization, on the one hand, and one or
more representative workers’ organization on the other with a view to reaching
agreement

The process is collective because issues relating to terms and conditions of

employment are solved by representatives of employees and employers in groups
rather than as individuals. The term bargaining refers to evolving an agreement
using methods like negotiations, discussions, exchange of facts and ideas, rather
than confrontation. The process of collective bargaining is bipartitions in nature,
i.e. the negotiations are between the employers and employees, without a third
party’s intervention. The objective of the collective bargaining is to come to an
agreement. The process of collective bargaining is that divergent viewpoints are
put forth by the parties concerned, and through negotiations, a settlement is arrived
at.

Discipline
Discipline is very essential for a healthy industrial atmosphere and the achievement
of organizational goal, an acceptable performance from subordinates in an
organization depends on their willingness to carry out instruction and the orders of
their superiors, to abide by the rules of conduct and maintain satisfactory standards
of work.
The term discipline can be interpreted variously. It means compliance with the
accepted order or proper appreciation of the hierarchical-superior-subordinate-
relationship. It is sometimes understood as a sort of check or restraint on the liberty
of an individual. It is a training which rectifies, modifies, strengthens or improves
individual’s behavior. It is adherence to establish norms and regulations.

Punishment
The standing orders may specify various forms of punishment for misconduct.
Depending on the gravity of the misconduct, the past records of the employee and
the judgment of the management, appropriate punishment is a warded. The
alternative forms of punishment are

1. Dismissal
2. Discharge
52
 3. Discharge simplicities
4. Suspension
5. Demotion to a lower grade
6. Withholding of increments
7. Fine
8. Warning

On the above, dismissal, discharge and suspension may be categorized as major

punishments while awarding of a fine, warning are regarded as minor punishments.
A fine or warning is a minor disciplinary punishment; the fine hits the pay packet
and the warning note goes on the employee’s personal record, which may be
considered at the time of promotion or transfer as a negative input. Stoppage of an
increment is a monetary control in addition to the warning and shame it carries
with it.

Termination
The service of an employee can be terminated by way of

 Discharge
 Discharge simplicities
 Dismissal

53
 Labor Welfare
Labor welfare is an important facet of industrial relations, the extra dimension,
giving satisfaction to the worker in a way which evens good wage cannon. With
the growth of industrialization and mechanization, it has acquired added
importance.
Labor welfare, though it has been proved to contribute to efficiency in production,
is expensive. Now a day’s welfare has been generally accepted by employers. The
state only intervenes to widen the area of applicability. It is now accepted that it is
a social right. ILO is dealing with the welfare of labors all over the world.

International Labour Organization (ILO)

ILO is a United Nations agency dealing with labor issues, particularly international
labour standards, social protection, and work opportunities for all 185 of the 193
UN member states are members of the ILO.

In 1969, the organization received the Nobel Peace Prize for improving peace
among classes, pursuing justice for workers, and providing technical assistance to
other developing nations. The ILO registers complaints against entities that are
violating international rules; however, it does not impose sanctions on
governments.
ILO building in Geneva
Through July 2011, the ILO has adopted 189
conventions.If these conventions are ratified
by enough governments, they become in force. However,
When a convention comes into force, it creates
a legal obligation for ratifying nations to apply
its provisions.
In 1998, the 86th International Labour
Conference adopted the Declaration on
Fundamental Principles and Rights at Work.
This declaration contains four fundamental policies:

1. The right of workers to associate freely and bargain collectively;

2. The end of forced and compulsory labour;
3. The end of child labour; and
4. The end of unfair discrimination among workers.

The ILO asserts that its members have an obligation to work towards fully
respecting these principles, embodied in relevant ILO Conventions. The ILO

54
Conventions which embody the fundamental principles have now been ratified by
most member states.

Membership
ILO member states, as of 2013, 185 of the 193 member states of the United
Nations are members of the ILO. The UN member states which are not members of
the ILO are Andorra, Bhutan, Liechtenstein, Micronesia, Monaco, Nauru, North
Korea and Tonga.

In a resolution in 1947, the ILO (International Labor Organization) defined

labor welfare as such services, facilities and amenities as adequate canteens, rest
and recreation facilities, arrangements for travel to and from work, and for
accommodation of workers employed at a distance from their houses, and such
other services, amenities and facilities as contribute to improve the conditions
under which workers are employed.
Objectives of labor welfare
There could be multiple objectives in having a labor welfare programmed. The
concern for improving the lot of the workers, a philosophy of humanitarianism or
what is now termed as internal social responsibility, a feeling of concern, of caring
by providing some of life’s basic amenities, besides the basic pay packet.
The welfare package by taking care of the basis of living, frees the worker to
devote his time and attention to the organizations task and thus enhance efficiency
and output.
Labor welfare
It is useful to consider welfare benefits under two basic categories, viz, intra-molar
and extra –molar. The following categorization is used by ILO:
Intra-molar Extra-molar
Drinking water Social insurance (gratuity, pension, PF,
Toilets etc.)
Washing facilities Benevolent fund
Occupational safety Maternity benefits
Uniforms and protective clothing Health and medical facilities
Shift allowance Educational facilities
Canteen Housing facilities
Recreational facilities
Leave travel facilities
Vocational training
Transport to and from place to work.

55
Classification of labor welfare

1. Statutory (consider/required)
2. Voluntary
3. Mutual
Wages
The determination of an employee’s wage in organizational sector is governed by a
variety of factors. Some factors are controlled by the employer and some by the
obligations/rules imposed upon him by outside.

Wages influencing variables

There are two types of variables. They are
1. Variables from employer’s side
a. Philosophy or management towards wage
b. Internal pricing through job evaluation
c. Capacity to pay
2. Variables from outside
a. Collective bargaining(Union push)
b. Government, Laws and wage board
c. Local area going rate
d. Tribunal courts.
Wage components
1. Basic wage
2. Dearness allowance(DA)
3. Over time(OT)
4. Bonus
5. Fringe benefits

Fringe benefits
In addition to basic pay and allowances a worker also receives a variety of other
cash and non- cash benefits as a result of his being an employee of an organization.
They are called fringe benefits. They are :

a. City allowance (where applicable)

b. House rent allowance (variable)
c. Medical allowance
d. Provident fund
56
 e. Pension
f. gratuity
g. Accident/death compensation
h. Leave with pay
i. Education allowance for children.

There are other benefits also:

 Food subsidy
 Transport subsidy
 House construction loan on staff on staff interest

Employee Grievances
In their working lives, employees occasionally have reason to be uncomfortable
disappointed or aggrieved either about certain management decisions, practices or
service conditions. In the present day social context, especially in democratic
systems, it is accepted that employees should able to express their dissatisfaction ,
whether it be minor irritation, a serious problem or a difference of opinion with the
supervisor over terms and conditions(TOR) of the contract or in the absence of a
negotiated collective contract between management and union.

The grievance procedure

There are several substantive reasons for having formal grievance procedure,
grievance mechanisms operate on the basis of setting and establishing facts by
rising probing question such as Whom? Why? When? Where? And what? The
facts are collected and analyzed before an impractical decision is reached. The
process could cover one or several leaves in the organization including reference to
outside institutions.

Employee grievances:
1. Promotions
2. Amenities
3. Continuity of service
4. Compensation
5. Disciplinary action
6. Fines
7. Increments
8. Leaves
9. Medical benefits
10.Nature of job
11.Payment
57
 12.Acting/ In charge promotion

Real Estate Business in Bangladesh

INTRODUCTION
Real Estate and Construction Industry play an important role for sustainable development of a
country. The construction industry is an important sector for physical expansion and economic
development of the country. This sector is well linked with human settlements, employment and
environment it is recognized that the health of the Real Estate Development sector is the
barometer of the national economy.

Real Estate Development in private sector in this country started in pre-liberation days when
Eastern Housing Ltd. In the mid-60 undertook land development project known as “Pallabi
Project” for housing purpose in the Mirpur area of Dhaka city. Due to the absence of an
appropriate urbanization policy, urban growth and urban development is basically Dhaka
centered.

Now-a- days the population of Dhaka city has been increased at high rates, but the are has been
increased at low rates. There is no magical solution to the present or future housing problem of
the city. Government has made lands available for modern housing by earth filling low-laying
areas of Dhanmodi, Mhammadpur, Mokhali, Cantonment, Gulshan, Banani, Baridhara, Uttara,
Mirpur, etc by his own initiative.

Learning from this experience of Government or utilizing this technology in 80s of the last
century various Real Estate Developer companies were established. People want to have their
house near their working place. They expect that their loving place will be calm, quiet and
peaceful, so looking at demands the people “The Bengal One Creation Ltd.” Has developed
several projects .

History of Real Estate Business

Real estate business, especially apartment project was started in the late 70s in
Dhaka city. Ispahani Group is the pioneer in this sector. But early 80s with the
inception of Eastern Housing Limited, the business started flourishing. Now this is
a booming sector of the economy, more than 350 real estate developers are now
active in this business.

WHAT IS REAL ESTATE?

Real Estate is a name given to the commodity ‘reality’ which includes not only
land but also all human improvements placed on the land.

58
In other words, the name given to the business engaged in by those persons who conduct
commercial transactions in real estate.

The basic component of reality as a commodity is land. It means not only the
surface of the earth but also the property rights and interests that attach to
ownership of reality, including subsurface minerals. Thus the real estate means
acquirement of land and building which is called inherent right. The men who are
the owner, user, maker, financier or marketer of the property have some rights to
the property.

SIGNIFICANCE OF REAL ESTATE IN BANGLADESH

A realistic as well as accurate approach for the assessment of housing demand

would be by taking into account the prevailing income distribution available for
financing shelters. Professor M. Shahjahan Mina in his recent paper, “Urban
Housing Problem in Bangladesh” has shown that there was an unmet demand of
175562 housing unit in 1973 and we would need to replace at 3609813 housing
units in 1985. Mr. Giasuddin Ahmed in his recent paper “Housing deficit in
Bangladesh.” Has shown that the housing unit would be deficit annually about 50
lacs . If we accept broadly the estimate prepared by Prof. M. Shahjahan Mina and
Mr. Giasuddin in Ahmed the question arises as to the strategy, which needs to be
adopted to implement a sound housing policy. So from the above scenario we can
easily perceive the importance of the real estate developers in our country.

So particularly the main reasons of mushrooming of this business are rapid

increase in urban population, scarcity of open space in the important areas of the
city, and purchasing land building construction decrease in bank interest rate, rent
becoming alternate return from investment.

INCREASING POPULATION GROWTH RATE AND HOUSING NEED:

Bangladesh, the 8th most populated country in the world, is over burden with its
huge population and alarming growth rate. It has been projected that total
population of Bangladesh would reach 141 million by year 2000 with urban
population of 37 million i.e.; 26% of the total population. The total population size
of Bangladesh was 111.4 million in 1991 and it stood at 129.25 million in 2001.
The population density of the country in the two reference years was 720 and 832
per square kilometer. Bangladesh is one of the most densely populated countries in
the world and it is estimated that the population of the Country will nearly double
by 2050. The number of households in 2001 was 25.36 million, of which 19.44
million were in rural areas and 5.92 million in urban areas. The average size of a
59
household was 4.8. The male-female ratio was 103.8. In 1991, the child-women
ratio was 742 and the dependency ratio 102. The growth rate of the population was
much lower than 1% during the period between 1801 and 1931. Records showed a
relatively high growth rate in 1941. This could be the result of a gross over
enumeration of population pushed politically by both Hindu and Muslim religious
groups. Also, there was a negative growth of population during 1941-1951, caused
by large-scale migration after the independence of Pakistan. The population growth
rate was considerably higher after 1951. The rate was 1.93% during I95I-1961,
2.61% during 1961-1974, 2.35% during1974-1981,and1.48%during1991-2010

1.59% (2002 EST.)

Birth rate: 25.12 births/1,000 population (2010 EST.)

Death rate: 8.47 deaths/1,000 population (2010 EST.)

Net migration rate: -0.75 migrant(s)/1,000 population (2002 EST.)

Year 1801 1851 1901 1921 1941 1961 1981 2010

Population 4.5 0.3 8.9 3.3 2.0 0.8 9.9 29.5

Source- Population, 1801-2010 (in million)

Housing Sector Characteristics of Bangladesh

Total number of dwelling unit: □ Bangladesh 19,020,489. □ Rural 15,474,566.
□Urban 3,545.923

Par capita floor space:□ Bangladesh 54.9 sq.ft □ Rural 53.5 sq.ft □ Urban 62.3
sq.ft

Occupancy level in 1991: □ 5.48 PP/dwelling unit

Proportion permanent structures in 1991: □ Rural 21 percent □Urban 46

percent

Proportion pf rental units in 1993 □ Rural 5% □ Urban 40% □ Dhaka 65%

With a population of approximately 124 million people and a land area of 147,570
square Kilometers, the gross density of the country is around 860 people per square
kilometer, amongst the highest in the world. In the older parts of Dhaka there are

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500 dwellings per hector and in urban slum areas there are more than 2000 persons
per acre in single story Housing. While overall population growth has decreased
considerably to 1.6 percent per year, the urban growth rate continues to be high
(although decreasing compared to previous decades) and is estimated at
approximately 4.2 percent per annum.

Table-1 Rate of household formation by locality, 1960-2010

Locality 1960-1973 1973-1981 1981 -2010

Bangladesh 2.1 2.1 2.6
Rural l.$ 1.3 2.0
Urban 6.2 8.9 I 5.7

PRESENT CONDITION OF REAL ESTATE BUSINESS:

With the passage of time, new concept evolves hence new business formed accordingly.
Bangladesh is not an expectation of that. As population grows geometrically, more and more
people need shelter to fulfill their basic need. It is an impossible task for the government and
general people to solve the task alone. And this need give the birth of real estate business.

During 1970s there were fewer than 5 company engaged in real estate business. In 1988 it
become 42 working only in Dhaka and now in 2017 there are more than 1073 companies
engaged in this business who are the members of REHAB

Now in Bangladesh real estate is one of the most promising and progressive business trends. Its
growth rate is increasing day by day and therefore contribution to GDP is also rise remarkably.

REHAB ACTIVITIES

Real Estate Housing Association of Bangladesh (REHAB)

REHAB organizes its major annual event, REHAB Housing Fair, each year in
Bangladesh for the members, financial institution, building material providers and
above all, the potential clients. Due to the political turmoil in the country, REHAB
was unable to hold the Housing Fair planned for November 06. However, the
grand, yearly event will now be held in the third week of February, 2007. Besides,
REHAB had already organized a few Housing Fair in New York and London
during the past years. These fairs proved to be vary rewarding for the REHAB
members from the business point of view, and these also served to enhance its
reputation. With the requesting support and encouragement from its members and
other stake holders, REHAB will continue to uphold the sprite with its was
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conceived that of providing shelters with modern amenities for the citizens of
Bangladesh and render social service to our society.

PRESENT SCENARIO:

REHAB is the only recognize organization for real estate development in

Bangladesh. Most of the Developers operating in the country are
members of the association. REHAB is a class A member of the FBCCI.
In recent years, REHAB has played a pioneering role in drafting the new
Building Rule 2006, which has already come into effect since the
beginning of this year. The Rule, known as ‘Dhaka Mohan agar Imaret Nirman
Bidhimala2006’ was formulated keeping in view the rapid growth of Dhaka city.
To this effect, series of meeting and seminars were held and finally the
Government was persuaded to approve the formation of the’ Nagar Unnayn
Committee’ comprising of experts and officials from all related Government
department under the chairmanship of the secretary, Ministry, of Public works. The
“Nagar Unnayan Committee” started functioning from December 06. Besides,
REHAB has also developed the code of conduct for its members. The code of
conduct is a policy guideline to ensure the interest of our members and valued
clients so that the name and fame of REHAB continues to flourish in our society.

FORMATION OF REHAB:

With the number of companies increasing gradually, various problems and

difficulties concerning the grousing sector cropped up, which required proper
attention. To solve these problems and to protect the interests of all property
developers, it was necessary to from an association for the unhindered evolution of
the real estate sector. Accordingly, in 1991, with only 11 members, the Real Estate
Housing Association of Bangladesh was formed. The objective if REHAB was to
promote the real estate development in the private in Bangladesh.

REHAB SECRETARIARIAT:

REHAB has its own office premises (2100 sft.) in the NationalPlaza situated in a
beautiful location just opposite to Pan Pacific Sonargaon Hotel and adjacent to
Sundarban Hotel. Address of REHAB Secretariat:

Real Estate Housing Association of Bangladesh (REHAB)

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 NationalPlaza: 6th Floor, 1/G Free School Street, Sonargaon Road
Dhaka -1205. Bangladesh

Services provide
REHAB has a strong Secretariat with high professional and technical staffs and
outsourcers consultants. Some of the services of REHAB secretariat are outlined
below:

● Contribute and participate in the planning and policy making of

Housing Sector.
● Development public awareness for highlighting the objective of
REHAB is
to protect the interest of the customer and development as well.
● To provide support to the Foreign Investment to invest directly in the
Real Estate
Sector of Bangladesh and in its linkage industries on a joint venture
basis.
● Press and publication
● Customer service
● Social welfare
● Conduct seminar and training
● Organize Housing Fairs in Bangladesh and abroad.

PROBLEMS OF REAL ESTATE BUSINESS:

The task of marketing is not an easy one, mainly for such fixed asset, which cannot
be replaced, again, now we are living in a very fast changing world. The demand
of the people is also changing frequently and the result is a difficult position for
every company to meet the changing customer demand. In case of marketing and
other function the company’s marketing each department faces the following
problems:

1. Lack of customer faith:

2. Lack of knowledge of customer regarding house:
3. Failure in Commitment:
4. Political Instability:
5. Natural climate:
6. Competitors:
7. Government Apathy:

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 8. Bureaucratic Retard ness:
9. Lack of implementation of plan:

Communication

Definition of Communication
Communication is the activity of conveying information through the exchange of
thoughts, messages, or information, as by speech, visuals, signals, writing, or
behavior. It is the meaningful exchange of information between two and a group of
person.

One definition of communication is “any act by which one person gives to or

receives from another person’s information about that person's needs, desires,
perceptions, knowledge, or affective states. Communication may be intentional or
unintentional, may involve conventional or unconventional signals, may take
linguistic or nonlinguistic forms, and may occur through spoken or other modes.”

Communication requires a sender, a message and a recipient, although the receiver

doesn't have to be present or aware of the sender's intent to communicate at the
time of communication; thus communication can occur across vast distances in
time and space. Communication requires that the communicating parties share an
area of communicative commonality. The communication process is complete
once the receiver has understood the message of the sender.

Basic elements of communication

1. Communicator/Sender: The person/organization who sends the message

2. Communicates/Receiver: The person/organization who receives the
message.
3. Transmission: The way of transmits message
4. Message: The idea/ information/statement
5. Response : The action in the form of compliance with action or reply.

Method of transmission
 In writing through mail or messenger
 Over telephone
 Internate, e-mail, fax, etc.
 Tele-conference

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  Video conferencing
 Through post office
 Face to face meeting

ypes of communication

There are two types of communication. They are (1) Human communication and
(2) Business communication.

(1) Human communications are of different types:

a. Verbal /oral communication
b. Non verbal communication
c. Report writing
d. Liability
e. The step- by-step home inspection.
(2) Business communication

The communication that promotes a product, service, or organization; relays

information within a business; or functions as an official statement from a
company is called business communication.

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Methods of business communication
There are several methods of business communication, including:

 Web-based communication-for better and improved communication,

anything anywhere.
 Video-conferencing which allow people in different locations to hold
interactive
 e-mails which provide an instantaneous medium of written
communication worldwide.
 Reports- important in documenting the activities of any department.
 Presentations-very popular method of communication in all types of
organizations, usually involving audiovisual material, like copies of
reports, or material prepared in M.S(Microsoft) Power Point or Adobe
Flash
 Telephoned meetings, which allow for long distance speech.
 Forum Boards, which allow people to intensity post information at a
centralized locations.
 Face to face meetings which are personal and should be succeeded by a
written follow up
 Suggestion box, it is mainly for upward communication as because some
people may hesitate to communicate to the management directly so they
can give suggestion by drafting suggestion in suggestion box.
Basic rules /characteristic of any write up
There are seven basic rules to be followed in writing any message /write up .
Sometimes they are called seven C’s, they are as follows:
1. Correct
2. Clear
3. Complete
4. Concise
5. Consistent
6. Conclusive
7. Courtesy
Route of written communication

1. Upward junior officials write to senior officials.

2. Downward Senior officials write to the junior officials
3. Parallel or Horizontal Correspondence between two officials of same

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 status.
Nature of official letter

There are three types of letter generally used in official works.

(i) Typical official letter

(ii) Demy official letter (DO)
(iii) Personal letter

(i) Typical official letter: Normal official correspondence is made writing

typical official letter. Reminders are also written in this format.

(ii) Demy official letter (DO) : DO letter is written by minister to minister or

secretary to secretary or chairman to chairman to expedite the action sought
for through earlier typical official letters. The name of the receiver is written
by the sender by his own hand writing.

(iii) Personal letter: Personal letter is written for personal reasons such as leave,
help, etc. by the subordinates to the controlling officers.

Examples of communication
Communication cycle
Main article: Models of communication

Shannon and Weaver Model of Communication

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Communication major dimensions scheme

Communication code scheme

68
Linear Communication Model

Interactional Model of Communication

Transactional Model of Communication

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Examples of written communications
Example-1: Upward communication
Bangladesh Inland Water Transport Authority
Office of Executive Engineer
Dhaka Division,
Dhaka Inland River Port,Sadarghat
Dhaka-1000
Memo No:EE-23/Buri/351 Date: 30-01-2010
To
Superintending Engineer
Dhaka Circle, BIWTA
BIWTA Bhaban, 7th floor
141-143 Motijheel C/A
Dhaka-1000
Subject: Construction of Port facilities in order to prevent unauthorized
encroachment of the Buriganga River and its foreshore land.

This is to inform your honor that the project as mentioned above under subject has started in
July, 2006 and scheduled to be completed on December, 2010. The progress of the work was
unsatisfactory as per time schedule and not commensurating with the program as submitted in
the last year. Moreover, the progress of the work has slowed down since July, 2009. The matter
was brought to the notice of the contractor repeatedly both in writing and verbally, but no fruitful
result.

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In this circumstances as cited above, his honor is requested to instruct the contractor to expedite
the progress of the work so that the same could be completed within the schedule time.
Sd/
Md.Sajedur Rahman
Executive Engineer
Dhaka Division,
Dhaka Inland River Port
BWTA, Sadarghat
Dhaka 1000

Memo No:EE-23/Buri/351(2) Date: 30-01-2010

Copy to
(1) Additional Chief Engineer, Dhaka zone, BIWTA
(2) Assistant Engineer, Project, Dhaka Division, BIWTA. He is instructed to take the
necessary actions to expedite the progress of the work.
Sd/
Executive Engineer
Dhaka Division
Dhaka Inland River Port
Example-2: Downward Communication

Government of the Peoples’ Republic of Bangladesh

Office of the Sub Divisional Engineer
Dhanmondi PWD Sub Division
Dhanmondi R/A, Dhaka

Memo No:-PWD/N-5/225 Date: 15-01-2010

To
Mr. Shamsul Alam
SAE in charge of supervision of
Construction of officers Qtr.

Subject: Negligence in duty

In spite of repeated instructions both in writing and verbally, you are not supervising the work
properly and regularly. As a result quality as well as progress of work is suffering much.
Under the circumstances stated above you are once again instructed to remain at work site
fulltime and take necessary steps to expedite the progress of the work and maintain the quality of
the work failing which the matter will be taken to notice of the higher authority for taking
necessary action.

Hope, you will understand the merit of the letter and do the needful accordingly.

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 Sd/
(M.A.Mannan)
Sub Divisional Engineer
Dhanmondi PWD Sub Division
Dhanmondi R/A, Dhaka

Memo No:-PWD/N-5/225(1) Date: 15-01-2010

C.C for information and necessary action to:

(1) Executive Engineer, PWD Division-II, Segun Bagicha, Dhaka

Sd/
Sub Divisional Engineer
Dhanmondi PWD Sub Division
Dhanmondi R/A, Dhaka

Example-3: Parallel Communication

Government of the Peoples’ Republic of Bangladesh

Office of the Executive Engineer
PWD Division-II
Segun Bagicha, Dhaka

Memo No:-PWD/W-7/725 Date: 13-01-2010

To
M/S Alam & Brothers
65, Kakrail Road
Kakrail, Dhaka

Subject: Construction of officers Quarter, Road No-7, Dhanmondi R/A, Dhaka

Ref: SDE’s office Memo No. PWD/SW-1/452, Dated: 10-01-2010.

It has been known from the SDE’s Memo No.-PWD/SW-1/452, Dated:10-01-2010 that the
progress of the work has slowed down. They are paying no attention to the SDE’s request. It is
very unfortunate for a reputed construction firm like them.
However, they are requested to expedite the progress of work bringing sufficient construction
materials and engaging large number of workers failing which action will be taken as per terms
and conditions of the contract.
Hope, they will well understand the spirit of the letter and act accordingly.

Sd/
Osman Gani

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 Executive Engineer
PWD Division-II
Segun Bagicha, Dhaka

Memo No:-PWD/W-7/725(2) Date: 15-01-2010

C.C for information and necessary action to:

(1) Superintending Engineer, PWD Circle-I, Segun Bagicha, Dhaka

(2) The Sub Divisional Engineer, Dhanmondi PWD Sub Division, Dhanmondi, Dhaka.

Sd/
Executive Engineer
PWD Division-II
Segun Bagicha, Dhaka

Example-4: Business communication

SARM ASSOCIATES LIMITED

CONSULTING ENGINEERS, ARCJITECTS AND PLANNERS

Memo No:-288/252/2008 November 30, 2008

To
The Project Director
Construction of Port facilities in order to
prevent unauthorized encroachment of the
Buriganga River and its foreshore land.
BIWTA, Dhaka

Subject : Construction of Port facilities in order to prevent unauthorized encroachment

of the Buriganga River and its foreshore land.

- Submission of DRAFT FINAL REPORT

Ref. : Contract Agreement, Dated: 28-05-2008 between BIWTA and SARM

Dear Sir,

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In pursuance of Appendix II: Reporting Requirement of the Contract Agreement of the subject
project, we are pleased to submit herewith DRAFT FINAL REPORT in 20 copies for favor of
your review and comments.

After receiving your comments we shall submit the Final Report incorporating the comments as
required.

Thanking you,

Yours sincerely,

Sd/
(Syed Afsar Hussain)
Director
Enclo: As stated

Islam Chamber (10th floor), 125/A, Motijheel Commercial Area, G.P.O. Box No. 755,
Dhaka-1000, Bangladesh.

Assignments for practices

1. What is a Project according to James P.Lewis?
2. What is Project Cycle? What is a Project according to J.M. Juran?
3. Write the flow diagram for implementation of project
4. Define cost estimate and name the different types of cost estimate.
5. Write the flow diagram for steps of approving an cost estimate.
6. What is an ideal report? Write the different types of ideal report.
7. Define concession contract.
8. Name the different forms of concession contract.
9. What is Procurement?
10. There are how many methods of Procurement? Name them.
11. What are the different methods of tendering? Write the reasons why OTM
is the most preferred method.
12. What is TEC? Write the formation of TEC with its function.
13. What is project evaluation? There are how many stages for the evaluation
of tender? Describe post stage of tender evaluation.

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14. What is price adjustment factor and what are the conditions for the
application of price adjustment factor?
15. Write short notes on –(i) DPP (ii) Procuring Entity (iii) BOT

16. The tendered price of an item of a contract is BDT.6000.00 and the value
of Im is BDT.6350.00 and Io is BDT.5250.00. What will be the adjusted
price of that item? Also find out the percent of increment.
17. Define technical specification with its uses?
18. Prepare a technical specification for the
(i) first class bricks according to BDS 208.

(ii) cement

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