This document defines different types of construction contracts and summarizes their key aspects. It discusses lump sum, unit price, cost plus, and other contract types. For each type it provides an overview of how payment is determined, as well as advantages and disadvantages from the perspective of owners and contractors. The goal of different contract types is to appropriately allocate risk between owners and contractors for a given project scope, schedule and budget.
Types of Contract in Construction ManagementShahin MB
This document describes several types of construction contracts: lump-sum, cost plus fixed fee, cost plus bid fee, guaranteed maximum, negotiated, unit-price, design-build, and turn-key. Lump-sum contracts establish a fixed total price upfront, while cost plus contracts reimburse the contractor's costs plus a fixed or percentage-based fee. Guaranteed maximum contracts set a ceiling on costs. Negotiated, unit-price, design-build, and turn-key contracts vary in responsibilities and payment structures.
The document discusses Bills of Quantities (BOQ), which are schedules that categorize, detail, and quantify materials and costs for construction projects. A BOQ is an important communication tool between clients, consultants, and contractors that provides estimated costs, defines the scope of work, and establishes a basis for cost valuation and contract payments. It generally includes item descriptions, units, quantities, rates, and amounts in a tabular format. BOQs help standardize bidding, financial administration, and valuation of variations throughout the project lifecycle.
Contracts and Tenders
When two or more persons have common intention communicated to each other to create same obligation between them there is said to be an agreement. An agreement which is enforceable by law is a Contract.
A Tenders is called upon for executing certain specified work, or supplying specified materials; subjected to certain terms and conditions like rates, time limit, etc. It is an offer in written form: Legally speaking, it is an offer to receive an offer for the work, within the specified financial limits.
Check for more presentations at - www.archistudent.net
The document discusses the concepts of estimating, costing, technical sanction, administrative approval and budgetary provision as they relate to construction projects. It defines estimating as working out the approximate cost of a work by calculating quantities and costs, while costing determines the actual cost using measurement and abstract sheets. Technical sanction involves formal acceptance of the proposal and preliminary plans by competent authorities, and administrative approval provides budgetary provision for projects according to the 5-year plan after review.
The document provides an introduction to the role of quantity surveyors in construction projects. It discusses that quantity surveyors are responsible for financial aspects of construction and provide various services throughout a project, including preparing initial budgets and cost estimates, tender documents, valuations of work, and final accounts. It also describes the different stages of a project where quantity surveyors are involved, such as pre-tender, tender, and post-tender stages, and the tasks performed during each stage.
The document discusses various types of construction contracts including: lump sum contracts where the owner pays a specified amount upon completion; cost plus contracts where the owner pays the contractor's documented costs plus an additional fee; and integrated contracts where a single contractor is responsible for design and construction like design-build or turnkey contracts. Management contracts involve appointing a contractor to coordinate other subcontractors. Measurable and item rate contracts establish payment based on physical measurements or rates for units of work.
This document defines different types of construction contracts and summarizes their key aspects. It discusses lump sum, unit price, cost plus, and other contract types. For each type it provides an overview of how payment is determined, as well as advantages and disadvantages from the perspective of owners and contractors. The goal of different contract types is to appropriately allocate risk between owners and contractors for a given project scope, schedule and budget.
Types of Contract in Construction ManagementShahin MB
This document describes several types of construction contracts: lump-sum, cost plus fixed fee, cost plus bid fee, guaranteed maximum, negotiated, unit-price, design-build, and turn-key. Lump-sum contracts establish a fixed total price upfront, while cost plus contracts reimburse the contractor's costs plus a fixed or percentage-based fee. Guaranteed maximum contracts set a ceiling on costs. Negotiated, unit-price, design-build, and turn-key contracts vary in responsibilities and payment structures.
The document discusses Bills of Quantities (BOQ), which are schedules that categorize, detail, and quantify materials and costs for construction projects. A BOQ is an important communication tool between clients, consultants, and contractors that provides estimated costs, defines the scope of work, and establishes a basis for cost valuation and contract payments. It generally includes item descriptions, units, quantities, rates, and amounts in a tabular format. BOQs help standardize bidding, financial administration, and valuation of variations throughout the project lifecycle.
Contracts and Tenders
When two or more persons have common intention communicated to each other to create same obligation between them there is said to be an agreement. An agreement which is enforceable by law is a Contract.
A Tenders is called upon for executing certain specified work, or supplying specified materials; subjected to certain terms and conditions like rates, time limit, etc. It is an offer in written form: Legally speaking, it is an offer to receive an offer for the work, within the specified financial limits.
Check for more presentations at - www.archistudent.net
The document discusses the concepts of estimating, costing, technical sanction, administrative approval and budgetary provision as they relate to construction projects. It defines estimating as working out the approximate cost of a work by calculating quantities and costs, while costing determines the actual cost using measurement and abstract sheets. Technical sanction involves formal acceptance of the proposal and preliminary plans by competent authorities, and administrative approval provides budgetary provision for projects according to the 5-year plan after review.
The document provides an introduction to the role of quantity surveyors in construction projects. It discusses that quantity surveyors are responsible for financial aspects of construction and provide various services throughout a project, including preparing initial budgets and cost estimates, tender documents, valuations of work, and final accounts. It also describes the different stages of a project where quantity surveyors are involved, such as pre-tender, tender, and post-tender stages, and the tasks performed during each stage.
The document discusses various types of construction contracts including: lump sum contracts where the owner pays a specified amount upon completion; cost plus contracts where the owner pays the contractor's documented costs plus an additional fee; and integrated contracts where a single contractor is responsible for design and construction like design-build or turnkey contracts. Management contracts involve appointing a contractor to coordinate other subcontractors. Measurable and item rate contracts establish payment based on physical measurements or rates for units of work.
Contracts - Estimation, Costing and Valuation EngineeringShanmugasundaram N
Contract – Types of contracts – Formation of contract – Contract conditions – Contract for labour, material, design, construction – Drafting of contract documents based on IBRD / MORTH Standard bidding documents – Construction contracts – Contract problems – Arbitration and legal requirements.
Detailed specification of an item of work specifies the quantities of materials, proportion of mortar, workmanship, method of preparation & execution and method of measurement.
Detailed specifications of different items of works are prepared separately and describe what the work should be and these shall be executed and constructed.
The document is the tender and contract conditions for the construction of a building in Liwan, Dubai. It includes instructions to tenderers on submitting the tender, requirements for site visits, and clarification of contract documents. The tender must include supporting documents such as proof of a site visit and a tender bond. The employer reserves the right to accept or reject any part of the tender. The tenderer is responsible for understanding all project requirements and conditions. No changes can be made to the tender documents except for filling in blanks.
This document provides an analysis of rates for various civil engineering works including excavation, sand filling, brick masonry, concrete works, and reinforced cement concrete works. It includes calculations of quantities of materials required and rates analysis for a unit quantity (typically 1 cubic meter or 10 cubic meters) with breakdown of material and labor costs. Factors affecting rates and data required for rate analysis are also discussed.
This document discusses prefabrication in construction. Prefabrication involves assembling components of a structure in a factory then transporting them to the construction site. It has advantages like reduced cost, time, and waste and allows work during poor weather. Common prefabricated components include columns, beams, waffle floors/roofs which are cast and cured off-site then erected using cranes. While prefabrication offers benefits, it also has disadvantages like potential breakage during transport and need for specialized equipment and labor. The document concludes that partial prefabrication is well-suited for Indian conditions.
There are several types of construction contracts. Price-based contracts include lump sum contracts, where the contractor is paid a fixed price for the entire project, and unit price contracts, where payment is made based on rates for individual work units. Cost-based contracts include cost plus contracts, where the contractor is reimbursed for costs plus a fee or percentage, and guaranteed maximum price contracts, where the owner's liability is capped but the contractor can retain savings if the project costs less than estimated. The appropriate contract type depends on factors like project scope definition and risk allocation between owner and contractor.
The document discusses various topics related to construction contract procedures, including:
1. Traditional and alternative contract systems such as lump sum based on bill of quantities, drawings and specifications, PC with target cost, and turnkey contracts.
2. The main responsibilities of the contractor include performing the work, the contractor receiving progress payments, and the contractor having the right to payments from the main contract.
3. The differences between domestic subcontractors, nominated subcontractors, and nominated suppliers in terms of their responsibilities and payment processes.
This document provides specifications for different classes of buildings and roads. It defines specifications as describing the nature, materials, and workmanship for a construction project. Building specifications are classified as general or brief (covering foundation, walls, roofing, etc. for different classes) and detailed. It provides the general specifications for various components like foundation, walls, roofing, flooring and finishing for first, second, third and fourth class buildings. Road specifications include details for subgrade, soiling, intercoat, topcoat, brick edging and considerations for heavy traffic or weak subgrade.
Construction planning and management are closely related and involve executing construction plans using various management techniques. Modern technology is important for construction management, planning, equipment, contracts, safety, and earthquake management. Proper planning and management are necessary to complete construction on time and within budget. Effective construction planning and management involves organizing work, allocating resources, monitoring progress, and controlling costs and quality.
Project
A Project is defined as a temporary endeavour undertaken to create a unique product/service/results.
Product
The product in case of a construction project is the constructed facility such as a building, a bridge, a highway, a dam, a canal, a factory etc.
A lump sum contract is a legal agreement where a contractor agrees to complete an entire project for a fixed, pre-agreed price. The key aspects are that the focus is on completing the whole project, not individual tasks, and the client knows the total cost upfront. The main advantages are minimal risk and costs for the client, and predictable cash flows and overhead costs. The main disadvantages are it is not suitable for complicated or changing projects, and the contractor faces high risk if costs are underestimated. It differs from a cost plus contract, where the client pays all costs plus fees, and from a unit price contract, which covers multiple lump sum contracts for a multi-stage project.
The document discusses key concepts related to project cost estimation including:
1) Estimates are prepared before construction to anticipate probable costs by computing quantities and costs of materials, labor, and other expenses.
2) Drawings and specifications are used to estimate quantities of materials and work.
3) Rates for materials, labor, transportation and other costs are used to calculate unit costs for items.
4) Different types of estimates are prepared at various stages including preliminary, plinth area, cube rate, detailed, revised, and annual maintenance estimates.
The document discusses various types of construction contracts and tendering processes. It defines a tender as an invitation from an owner to contractors to execute work at a specified cost and time. There are different types of tenders including open, sealed, limited, and single tenders. Key aspects of the tendering process include tender forms, documents, notices, evaluation criteria, acceptance procedures, contract documents, deposits, and measurements. Different types of construction contracts are also summarized such as lump-sum, item rate, percentage rate, cost plus, and turn-key contracts.
Earnest money is a monetary deposit paid by bidders to show their sincerity and good faith in a project. It aims to prevent bidders from withdrawing their bids before the validity period ends. Standard earnest money amounts are 2% of the estimated project cost for works costing up to Rs. 10 crores, and 1% of estimated cost plus Rs. 20 lakhs for higher value projects. Earnest money is refunded once the contract is awarded, or forfeited if the bidder withdraws during the validity period. The document discusses earnest money definitions, forms, amounts, refund processes, and treatments under different scenarios.
This document discusses mechanized construction and the use of construction equipment. It covers several topics:
- The benefits of mechanized construction include completing work more quickly and at a larger scale.
- There are two types of construction projects - linear projects and fast-tracked projects, which have simultaneous design and construction.
- Deploying construction equipment can increase output, reduce costs, allow for precision, and alleviate manual labor issues.
- Equipment selection involves analyzing functions, capacities, costs, and limitations for the task. Renting equipment on an as-needed basis can be more cost effective than purchasing.
The document discusses different types of tenders and tender processes used in construction projects. It describes open, sealed, limited, single, and rate contract tenders. For each tender type, it provides details on who is invited to bid, level of publicity, and documents used. It also outlines the typical information provided in tender notices, the tender procedure, types of contracts like lump-sum and item rate, and documents involved like the contract bond. Security deposits required from contractors to protect the owner in case of default are also summarized.
Rates Analysis For Calculating Material and Labour for building works ALI HYDER GADHI
The document discusses the analysis of rates for construction items. It provides materials costs, labor costs, and calculations to determine the total rate per unit of different construction works. For example, it calculates that the rate of excavation work is Rs. 9857 per cubic meter based on labor and materials. It also provides an example of determining the materials required for a 10 square meter conglomerate floor with two layers of concrete.
This presentation summarizes the Line of Balance (LOB) project scheduling technique. LOB was developed in the 1940s/50s for repetitive construction projects like highways, pipelines, and buildings. It uses a simple diagram to show the location and timing of work crews for each task. The key steps are: 1) creating a logic diagram of tasks, 2) estimating task durations, 3) selecting a buffer time, and 4) calculating targets to meet deadlines. LOB helps optimize resource usage and identifies potential issues. It provides clear visibility into work progress and allows easy schedule updating for repetitive projects.
1. A tender is an invitation from an owner to contractors to bid on a construction project within a specified timeframe and cost. Tenders can be open, sealed, limited, or single and are classified based on bidding requirements and contractor selection.
2. The tender process involves preparing tender documents, publishing a notice inviting bids, submitting and evaluating bids, accepting a tender, and awarding a contract. Key information provided includes project details, completion timeline, earnest money deposits, and bid evaluation criteria.
3. For a contract to be valid, it requires a definite offer from the owner and acceptance from the contractor to complete the specified work, as defined in the contract documents signed by both parties.
Cost estimates & contract documents ce224 pdfSaqib Imran
This document provides information on construction cost estimation and contracts. It begins with an introduction to cost estimation, outlining the key requirements and need for estimation such as determining feasibility, timelines, and controlling costs. It then discusses the procedures and data required for estimating, including drawings, specifications, and rates. The document also covers different types of construction contracts such as lump sum, item rate, percentage rate, and labour contracts. It defines what a contract is and outlines the key obligations of employers and contractors. Finally, it discusses the tendering process, including classification of tenders, tender documents, and a sample tender notice.
Contracts - Estimation, Costing and Valuation EngineeringShanmugasundaram N
Contract – Types of contracts – Formation of contract – Contract conditions – Contract for labour, material, design, construction – Drafting of contract documents based on IBRD / MORTH Standard bidding documents – Construction contracts – Contract problems – Arbitration and legal requirements.
Detailed specification of an item of work specifies the quantities of materials, proportion of mortar, workmanship, method of preparation & execution and method of measurement.
Detailed specifications of different items of works are prepared separately and describe what the work should be and these shall be executed and constructed.
The document is the tender and contract conditions for the construction of a building in Liwan, Dubai. It includes instructions to tenderers on submitting the tender, requirements for site visits, and clarification of contract documents. The tender must include supporting documents such as proof of a site visit and a tender bond. The employer reserves the right to accept or reject any part of the tender. The tenderer is responsible for understanding all project requirements and conditions. No changes can be made to the tender documents except for filling in blanks.
This document provides an analysis of rates for various civil engineering works including excavation, sand filling, brick masonry, concrete works, and reinforced cement concrete works. It includes calculations of quantities of materials required and rates analysis for a unit quantity (typically 1 cubic meter or 10 cubic meters) with breakdown of material and labor costs. Factors affecting rates and data required for rate analysis are also discussed.
This document discusses prefabrication in construction. Prefabrication involves assembling components of a structure in a factory then transporting them to the construction site. It has advantages like reduced cost, time, and waste and allows work during poor weather. Common prefabricated components include columns, beams, waffle floors/roofs which are cast and cured off-site then erected using cranes. While prefabrication offers benefits, it also has disadvantages like potential breakage during transport and need for specialized equipment and labor. The document concludes that partial prefabrication is well-suited for Indian conditions.
There are several types of construction contracts. Price-based contracts include lump sum contracts, where the contractor is paid a fixed price for the entire project, and unit price contracts, where payment is made based on rates for individual work units. Cost-based contracts include cost plus contracts, where the contractor is reimbursed for costs plus a fee or percentage, and guaranteed maximum price contracts, where the owner's liability is capped but the contractor can retain savings if the project costs less than estimated. The appropriate contract type depends on factors like project scope definition and risk allocation between owner and contractor.
The document discusses various topics related to construction contract procedures, including:
1. Traditional and alternative contract systems such as lump sum based on bill of quantities, drawings and specifications, PC with target cost, and turnkey contracts.
2. The main responsibilities of the contractor include performing the work, the contractor receiving progress payments, and the contractor having the right to payments from the main contract.
3. The differences between domestic subcontractors, nominated subcontractors, and nominated suppliers in terms of their responsibilities and payment processes.
This document provides specifications for different classes of buildings and roads. It defines specifications as describing the nature, materials, and workmanship for a construction project. Building specifications are classified as general or brief (covering foundation, walls, roofing, etc. for different classes) and detailed. It provides the general specifications for various components like foundation, walls, roofing, flooring and finishing for first, second, third and fourth class buildings. Road specifications include details for subgrade, soiling, intercoat, topcoat, brick edging and considerations for heavy traffic or weak subgrade.
Construction planning and management are closely related and involve executing construction plans using various management techniques. Modern technology is important for construction management, planning, equipment, contracts, safety, and earthquake management. Proper planning and management are necessary to complete construction on time and within budget. Effective construction planning and management involves organizing work, allocating resources, monitoring progress, and controlling costs and quality.
Project
A Project is defined as a temporary endeavour undertaken to create a unique product/service/results.
Product
The product in case of a construction project is the constructed facility such as a building, a bridge, a highway, a dam, a canal, a factory etc.
A lump sum contract is a legal agreement where a contractor agrees to complete an entire project for a fixed, pre-agreed price. The key aspects are that the focus is on completing the whole project, not individual tasks, and the client knows the total cost upfront. The main advantages are minimal risk and costs for the client, and predictable cash flows and overhead costs. The main disadvantages are it is not suitable for complicated or changing projects, and the contractor faces high risk if costs are underestimated. It differs from a cost plus contract, where the client pays all costs plus fees, and from a unit price contract, which covers multiple lump sum contracts for a multi-stage project.
The document discusses key concepts related to project cost estimation including:
1) Estimates are prepared before construction to anticipate probable costs by computing quantities and costs of materials, labor, and other expenses.
2) Drawings and specifications are used to estimate quantities of materials and work.
3) Rates for materials, labor, transportation and other costs are used to calculate unit costs for items.
4) Different types of estimates are prepared at various stages including preliminary, plinth area, cube rate, detailed, revised, and annual maintenance estimates.
The document discusses various types of construction contracts and tendering processes. It defines a tender as an invitation from an owner to contractors to execute work at a specified cost and time. There are different types of tenders including open, sealed, limited, and single tenders. Key aspects of the tendering process include tender forms, documents, notices, evaluation criteria, acceptance procedures, contract documents, deposits, and measurements. Different types of construction contracts are also summarized such as lump-sum, item rate, percentage rate, cost plus, and turn-key contracts.
Earnest money is a monetary deposit paid by bidders to show their sincerity and good faith in a project. It aims to prevent bidders from withdrawing their bids before the validity period ends. Standard earnest money amounts are 2% of the estimated project cost for works costing up to Rs. 10 crores, and 1% of estimated cost plus Rs. 20 lakhs for higher value projects. Earnest money is refunded once the contract is awarded, or forfeited if the bidder withdraws during the validity period. The document discusses earnest money definitions, forms, amounts, refund processes, and treatments under different scenarios.
This document discusses mechanized construction and the use of construction equipment. It covers several topics:
- The benefits of mechanized construction include completing work more quickly and at a larger scale.
- There are two types of construction projects - linear projects and fast-tracked projects, which have simultaneous design and construction.
- Deploying construction equipment can increase output, reduce costs, allow for precision, and alleviate manual labor issues.
- Equipment selection involves analyzing functions, capacities, costs, and limitations for the task. Renting equipment on an as-needed basis can be more cost effective than purchasing.
The document discusses different types of tenders and tender processes used in construction projects. It describes open, sealed, limited, single, and rate contract tenders. For each tender type, it provides details on who is invited to bid, level of publicity, and documents used. It also outlines the typical information provided in tender notices, the tender procedure, types of contracts like lump-sum and item rate, and documents involved like the contract bond. Security deposits required from contractors to protect the owner in case of default are also summarized.
Rates Analysis For Calculating Material and Labour for building works ALI HYDER GADHI
The document discusses the analysis of rates for construction items. It provides materials costs, labor costs, and calculations to determine the total rate per unit of different construction works. For example, it calculates that the rate of excavation work is Rs. 9857 per cubic meter based on labor and materials. It also provides an example of determining the materials required for a 10 square meter conglomerate floor with two layers of concrete.
This presentation summarizes the Line of Balance (LOB) project scheduling technique. LOB was developed in the 1940s/50s for repetitive construction projects like highways, pipelines, and buildings. It uses a simple diagram to show the location and timing of work crews for each task. The key steps are: 1) creating a logic diagram of tasks, 2) estimating task durations, 3) selecting a buffer time, and 4) calculating targets to meet deadlines. LOB helps optimize resource usage and identifies potential issues. It provides clear visibility into work progress and allows easy schedule updating for repetitive projects.
1. A tender is an invitation from an owner to contractors to bid on a construction project within a specified timeframe and cost. Tenders can be open, sealed, limited, or single and are classified based on bidding requirements and contractor selection.
2. The tender process involves preparing tender documents, publishing a notice inviting bids, submitting and evaluating bids, accepting a tender, and awarding a contract. Key information provided includes project details, completion timeline, earnest money deposits, and bid evaluation criteria.
3. For a contract to be valid, it requires a definite offer from the owner and acceptance from the contractor to complete the specified work, as defined in the contract documents signed by both parties.
Cost estimates & contract documents ce224 pdfSaqib Imran
This document provides information on construction cost estimation and contracts. It begins with an introduction to cost estimation, outlining the key requirements and need for estimation such as determining feasibility, timelines, and controlling costs. It then discusses the procedures and data required for estimating, including drawings, specifications, and rates. The document also covers different types of construction contracts such as lump sum, item rate, percentage rate, and labour contracts. It defines what a contract is and outlines the key obligations of employers and contractors. Finally, it discusses the tendering process, including classification of tenders, tender documents, and a sample tender notice.
This document discusses various types of engineering contracts and their key terms and conditions. It begins by outlining the four main functions of engineering contracts: scope of work, period of performance, payment, and termination. It then describes different types of civil engineering contracts such as item rate, percentage rate, and lump sum contracts. Finally, it lists important contract terms and conditions like security deposits, compensation for delays, extensions, completion certificates, and measurements and payments.
Chapter-2 Construction Contract. Subject code:3160614ptxsulevrunda
This document describes 12 types of construction contracts: item rate, percentage rate, lump sum, all in, labor, materials supply, piece work, cost plus percentage rate, cost plus fixed fee, cost plus sliding fee, target, and BOT. Each type is defined, with item rate, percentage rate, and lump sum contracts explained in further detail regarding their advantages, disadvantages, and key aspects.
This document discusses different types of construction contracts:
- Lump sum contracts specify a single price for completing a project. They provide incentives for efficiency but carry high risks for contractors.
- Unit price contracts base payment on actual quantities of work items. They allow for changes but the final cost is unknown.
- Cost plus contracts reimburse contractors for all costs plus a fee. They provide flexibility but lack incentives for cost control.
This document discusses different types of construction contracts:
- Lump sum contracts specify a single price for completing a project. They provide incentives for efficiency but carry high risks for contractors.
- Unit price contracts base payment on quantities of work completed. They allow for changes but the final cost is unknown.
- Cost plus contracts reimburse contractors for all costs plus a fee. They provide flexibility but lack incentives for cost control.
The document discusses various types of construction contracts. It describes lump sum contracts, item rate contracts, labour contracts, and cost reimbursement contracts. It provides details on how each contract type works, including payment structures, risk allocation, and suitable applications for different contract types. Key factors like flexibility, incentives, and risk allocation are considered when choosing the appropriate construction contract.
1) The document discusses various aspects of a construction contract such as tender documents, tender process, acceptance of tenders, contract documents, conditions of contract, and termination of contract.
2) Key elements of tender documents are the notice inviting tenders, tender forms, schedules, specifications, drawings, conditions of contract, and other required information. The tender process involves opening and scrutinizing tenders, preparing a comparative statement, and accepting the tender.
3) The contract documents formalize the agreement between the owner and contractor and include details of the work, estimated cost, security deposit, completion period, specifications, drawings, conditions of contract and signatures of both parties. The contract lays out terms for execution,
The document discusses various aspects of the tendering process for construction projects, including:
1) Different types of tenders such as open, sealed, single, limited, and negotiated tenders.
2) Key documents involved in the tendering process such as the tender notice, tender form, and various envelopes used for submitting tenders.
3) Important considerations when evaluating tenders such as checking rates, scrutiny of documents, and preparation of a comparative statement to select the lowest bidder.
This document provides an overview of different types of construction contracts:
1. Item rate contracts or schedule contracts involve the contractor agreeing to carry out work based on unit prices for items in the bill of quantities. Payments are made based on measurements of completed work items.
2. Percentage rate contracts involve the contractor agreeing to carry out work for a fixed percentage over the actual cost of construction, which is tracked by the department.
3. Lump sum contracts involve the contractor agreeing to carry out all work shown in drawings and specifications for a fixed price.
4. Labour contracts involve the department supplying all materials, while the contractor supplies labour and completes the work according to specifications.
5. Other
This presentation includes:
1. What is tender and types of tender?
2. What is contract and types of contracts?
3. Process of inviting tender and awarding contract.
4. Important definitions:- EMD, SD, Bill of quantities, Quotation, etc.
These five types of construction contracts are widely used across the world. Get to about the lump-sum contract, unit-rate contract, cost-plus contract, time & material contract, and target cost contract. All the contract types are explained with their respective example, pros and cons.
The document discusses various types of construction contracts including lump sum, item rate, cost plus, and other common contract types. It provides details on key elements that define each type of contract such as payment structure, risk allocation, flexibility for changes, and incentives for contractor performance. Common terms are also defined, such as contractor, tendering process, and contract agreement components.
The document discusses various types of tenders used in construction projects. It describes open tenders, sealed tenders, limited tenders, single tenders, and rate contracts. It also discusses the tendering process, including preparing tender documents, issuing notices, submitting and evaluating tenders, and awarding contracts. Various contract types are outlined, such as lump-sum, cost-plus, item rate, percentage rate, and turn-key contracts. Key tendering concepts like earnest money deposits, security deposits, and liquidated damages are also summarized.
Final types of contracts- different types of contractsMohammedAlfayad2
The document discusses different types of construction contracts:
- Item rate contracts pay contractors based on actual quantities measured at agreed unit rates. This allows for variation in quantities but the total cost may change.
- Percentage rate contracts use estimated quantities but contractors bid a percentage above or below rates rather than individual rates, removing potential for unbalanced bids.
- Lump sum contracts require contractors to complete the entire scope for a fixed price, with provisions sometimes to adjust for changes.
This document outlines key aspects of contracts and tenders for civil engineering projects. It discusses the elements of a valid contract, different types of contracts like lumpsum, item rate, and percentage rate contracts. It also describes earnest money deposits, security deposits, departmental execution of works, tender types and forms, submission process, and dispute resolution through arbitration. Contracts must have lawful subject, competent parties, valid consideration, free consent, and comply with law. Tenders can be open, global, limited, or negotiated. Disputes are typically settled through arbitration involving appointment of arbitrators, case preparation, hearings, issuing an award, and filing the award.
This document is a construction contract between Al Noor Consultants and Zulifiqar Ahmed Architectural and Engineering Private Limited for the construction of a residential development project in Lahore, Pakistan. Key details include:
- The contractor will complete construction of 150 plots of land with houses, a mosque, school, park and infrastructure over 4 years.
- As a security, the client will sign over ownership of 8 plots to the contractor initially valued at Rs. 1200 per square foot for structures and Rs. 1000 per square foot for finishes.
- The contractor must complete the project by June 2021. Liquidated damages of 0.5% per day will be charged for delays beyond this date, up to
This document discusses various aspects of contract management for construction projects including methods of work execution, types of contracts, and the tendering process. It describes executing work through amanat (directly by the owner) or through contracts. It outlines various types of contracts like lump sum, unit price, cost reimbursable, design-build, and BOOT/BOT. Finally, it explains the tendering process which involves preparation, tender notice, tender document, conditions of contract, prequalification, evaluation, and selection/award.
This document discusses various types of construction contracts, including lump-sum, cost-plus percentage, cost-plus fixed fee, percentage rate, item rate, turnkey, cost-plus sliding scale of fees, negotiated, target, labor, joint venture, and BOT contracts. Each type is briefly defined and its key advantages and disadvantages are outlined. The document provides a high-level overview of common construction contracting methods.
The document discusses the types of contracts used in construction projects. It states that the material in the presentation is intended for educational purposes during the COVID-19 lockdown situation. Fair use of copyrighted material is permitted under accepted law. The contents are only intended for attendees of the class being conducted. It then defines contracts and describes various types of construction contracts like fixed-price contracts (lump sum, unit price), cost plus contracts, design and build contracts, construction management contracts, and other types like time and materials, supply, and build-operate-transfer contracts.
This is an overview of my career in Aircraft Design and Structures, which I am still trying to post on LinkedIn. Includes my BAE Systems Structural Test roles/ my BAE Systems key design roles and my current work on academic projects.
Sachpazis_Consolidation Settlement Calculation Program-The Python Code and th...Dr.Costas Sachpazis
Consolidation Settlement Calculation Program-The Python Code
By Professor Dr. Costas Sachpazis, Civil Engineer & Geologist
This program calculates the consolidation settlement for a foundation based on soil layer properties and foundation data. It allows users to input multiple soil layers and foundation characteristics to determine the total settlement.
Covid Management System Project Report.pdfKamal Acharya
CoVID-19 sprang up in Wuhan China in November 2019 and was declared a pandemic by the in January 2020 World Health Organization (WHO). Like the Spanish flu of 1918 that claimed millions of lives, the COVID-19 has caused the demise of thousands with China, Italy, Spain, USA and India having the highest statistics on infection and mortality rates. Regardless of existing sophisticated technologies and medical science, the spread has continued to surge high. With this COVID-19 Management System, organizations can respond virtually to the COVID-19 pandemic and protect, educate and care for citizens in the community in a quick and effective manner. This comprehensive solution not only helps in containing the virus but also proactively empowers both citizens and care providers to minimize the spread of the virus through targeted strategies and education.
Online train ticket booking system project.pdfKamal Acharya
Rail transport is one of the important modes of transport in India. Now a days we
see that there are railways that are present for the long as well as short distance
travelling which makes the life of the people easier. When compared to other
means of transport, a railway is the cheapest means of transport. The maintenance
of the railway database also plays a major role in the smooth running of this
system. The Online Train Ticket Management System will help in reserving the
tickets of the railways to travel from a particular source to the destination.
2. TYPES OF CONTRACT
1. Lump Sum Construction Contract
In this type the contractor bids a single fixed price for
overall activities in the project scope.
The contractor is responsible for estimating project costs
from drawings then adds overhead and his profit to
determine the price of the project.
All risks are assigned to the contractor, there isn’t any risk
carried by the owner.
The contractor has incentive in this contract as he is
rewarded for early finish and there is penalty for late finish.
This contract is ideal when the project scope is well defined at
the design stage because there is limited flexibility for
modifying the design during construction period.
3. 2.PIECE WORK CONTRACT
Contract for which only a rate is agreed upon without
reference to the total quantity of work to be done or
the quantity of work to be done within a given period
Advantages:
This direct relationship between the results of
labor and remuneration is a real advantage of the
piecework form of payment.
The employer’s interests are successfully met
because, without additional control, employees are
interested in increasing the company’s production.
Disadvantages:
1)Neglecting external factors.
2) Losing quality for the sake of quantity
4. 3. Unit Price contract
Contractor under takes the work at the unit rates agreed at the
time of the tender.
Payment made to contractor after measurement of work done
Ex: Maintenance of building, irrigation projects such as canal.
Merits:
1. Since work is distributed item wise there will no dispute between
contractor and owner
2. Drawing and Specs can be changed at any instant.
3. Bills paid after measurement of actual work. Hence economical.
Demerits:
1. Final cost can not be determined before completion of work.
2. Comparative statement of item rate tenders is more complicted
hence needs expert srutiny
5. 4. Cost plus percentage contract:
In this contractor gets paid actual cost of the building PLUS a fixed
percentage for his overhead expenses, services and profit.
Contractor procures the materials and other recourses and does all
the work required and maintains a proper account and he is paid
by the department or owner (cost + 10% Normally)
Merits:
1. The would be no chance of dispute for carrying out extra item of
works.
2. Contractor is free to take decision independently hence quick
completion is possible.
Demerits:
1. Final cost can not be determined before completion of work.
2. Quality of work may be poor.
3. Very difficult to determine the actual cost incurred by the
contractor.
6. 5. Labour contract:
In this contractor under takes only labour portion of the work.
All the necessary materials are supplied by the department or
owner.
Contractor gets paid for the labours only based on the
measurement of the works done.
Merits:
1. Materials stored by the department are used effectively.
2. Materials are supplied by the department hence quality can be
expected.
Demerits:
1. There may be delay in obtaining the materials by the department.
2. Large storage is required to store different materials.
3. Theft from stores, shortage of materials, accounting all the
materials are constant worries to the department or owner
7. 6. Negotiated contract:
When the work is awarded on the contract by
manual negotiation between the parties without
call of tenders it is said to be negotiated
contract. PWD Negotiated contracts are initiated
only under special circumstance
a) To obtain reasonable rates.
b) To meet the situation arising out of emergency.
Example: Construction of shelter for displaced
people, strengthening runway for national defence
8. Point of Differentiation Lump Sum Contract
Unit
Price Contract
Cost
Plus Contract
Piece
work Contract
Advantages with respect to
the contractor
Incentives for early finish Low risk No risk
Rewards for any
savings between
actual and target
cost
Disadvantages with respect
to the contractor
High risk
No incentives for
early finish
No incentives for
early finish
Share risk with
the owner
Advantages with respect to
the owner
No risk
Share risk with the
contractor
Can start project
without finishing
designs
Target cost is
defined at early
stagesTotal cost is defined at early
stages
Disadvantages with respect
to the owner
Contractor desire to
decrease costs may be to
detriment of quality
Total cost is
uncertain at early
stages
High risk
Share risk with
the contractor
Total cost is
uncertain at early
stages
Flexibility of design
changing
Limited flexibility
Has flexibility to
change design
More flexible to
design stages
Limited flexibility
9. General Condition of contract:
1. The rates agreed by the contractor should be inclusive of
transport,materials,labours,tools,plants and all other
necessary arrangements.
2. The contractor should deposit 10% of the cost of the work
as a security deposit the contractor may deposit the entire
amount at the beginning of the project or can be deducted
from the running bills contractor
3. The contractor should complete the work within specified
time otherwise he is liable for the penalty
4. The time may be extended by the department for the valid
reasons requested by the contractor
5. The cost of the material issued to the contractor
equipment given to the contractor shall be deducted from his
running bills
10. General Condition of contract:
6. The work has to be play according to the drawings, plan
specifications and order issued by the authority.
7. The contractor terminated for his bad work or
unsatisfactory progress and the part or full security deposit
may be forfeited.
8. the work shall be open for inspection.
9. extra items which are not included in the contract shall
be paid as per the current schedule of rates.
10. compensation to the workman shall be paid by the
contractor for any accident or damage.
11. All the taxes, royalties etc. Shall have to be paid by the
contractor whiche are included in the rates
11.
12. Contract Agreement:
Contract agreement is written document binding legally the
contractor and the department to follow the rules and
regulations.
All the pages of the agreement must be signed by both
parties.
Contract agreement must be containing following details.
1) Title page with name of the work and contract number.
2)Index page giving the content of the agreement the page
preferences
3) tender notice with description of work, location time,
period of completion etc
13. Contract Agreement (continued…):
4) bill of quantities and total cost of the work etc
5) schedule of issue of materials giving list of materials to be issued
with rate and place of issue
6) general specification during the classes and type of work.
7) detailed specification for the each item of work and materials.
8) complete Drawings with plan, elevation, site plan and other relevant
details.
9) condition of contract giving rate of labour, materials, tools and
plants, progress rate etc.
10) special conditions regarding nature of work, taxes, royalties, labour
and amenities etc
Contract Agreement:
14. Tender:
Tender is an offer in writing to execute some
specified work or to supply the materials at certain
prices within a fixed time under the certain
conditions of agreement between the contractor
and the owner
Necessity of tenders:
1. Lower bids may be obtained due to competition.
2. Contractors experience can be utilised.
3. Partiality, Personal interest,Prejudices,can be
avoided
15. Tender Form:
Tender form is a printed standard form of contract
giving standard conditions of contract, general rules
and directions for the contractors
1. General work description.
2. Estimated cost.
3. EMD(Earnest Money Deposit)
4. SD(Security Deposit)
5. Time allowed for the work from date of written
order to commence
6. Column for sign of contractor before submission
of tender and sign of officer by whom accepted
16. Tender Document:
Content of tender document
1) detailed specification of the work material should be
used.
2) A complete set of Drawings with detail of various parts.
3) general conditions of contract
4) special conditions of contract.
5) schedule of quantities the various terms of work.
Approximate qnty of work under each item of work.
6) the location of the work
7) the name of the division in which work is situated.
8) the rates of the Steel and cement if they are supplied
by the department.
17. Tender Document:
9) Hire charges for the lorries, plants to be levied when
issued from the department
10) condition regarding employment of the technical
personnel.
11) location of water location point and supply point of
power.
12) the period of completion of work and the time
required for each item of work.
13) the amount of earnest money deposit (EMD).
14) the name of authority that is accepting or rejecting
the tender.
15) conditions of penalty for slow progress and non
fulfilment of the condition of the contract.
16) resolution for the dispute.
18. Tender Notice:
After approval of tender
document by the concern
authority inviting tender has
to be published on the
notice board and all units
of the department and
advertisement in the press
and by the notice in English/
Hindi newspapers.
19. Following particulars should be written in the
tender notice:
1) name of the authority inviting the tender.
2) name of the work and it's location.
3) estimated cost of the work.
4) period and type of contract.
5) when and where the tender document should be
purchased.
6) tender schedule.
7) the amount of EMD and SD
8) open timing of the tender opening.
9) designation of the officer who accepts the
tender.
20. Preparing comparative statement of tender
Once after the tender opens comparative
statements should be prepared it serves the
rates of different builders normally lowest will
be a successful bidder hands become the
contractor
21. Scrutiny of tender:
Tender inviting authority should verify the terms
and conditions of the tender has been
obeyed are not or any special conditions are
special addendums added or not and
hence calculate the consequent deviations.
After the detailed scrutiny the tender document
along with comparative statement will be sent to
next higher authorities stating his observation
and recommendations.
22. Acceptance of Tender:
Based on the comparative statement usually the
lowest tender is accepted except In the case
where the lowest tender black mark in his work.
Tenderer whose rates are accepted is intimated
to sign the contract documents.
If he fail to sign the contract document within
specified time then his tender will be cancelled
and his EMD will be forfeited. Tender may be
allotted to the next lowest bidder.
23. Execution of contract agreement:
After acceptance of tender and contract
documents. contractor required to pay security
deposit before contract agreement is signed.
Earnest money deposit(EMD):
when the contractor submits the tender to any
work, he have to deposit some amount usually
2% of the estimated cost to the department as
the guarantee of tender.
When contractor refuses to take work after the
acceptance of tender then the EMD will be
forfeited. But EMD of all other Unsuccessful
bidders will be returned.
24. Security deposit (SD):
when tender is accepted the contractor has to deposit
10% of the project cost as a security deposit. This
amount includes EMD, contractor can pay the entire
amount or the it can be deducted from the running
bills.
Contractor should fulfil all the terms and conditions of
the tender specifications, quality of the work, within
specified time. if he fails to fulfil then security deposit
would be forfeited partially or fully
if he completes the work satisfactorily amount will be
refunded to the contractor after six months. during this
period there should not be any defects.
25. work order: for petty and small works
Site order book:
Within 10 days of acceptance of the work
order contractor should submit a site order
book subdivision assistant engineer in
triplicates. which should be machine
Numbered.
27. Advantages of e tendering
1. Reduced tender cycle-time.
2. Fast and accurate pre-qualification and
evaluation, which enables the automatic
rejection of suppliers that fail to meet the
tender specification.
3. Faster response to questions and points of
clarification during the tender period.
4. Reduction in the labour intensive tasks of
receipt, recording and distribution of tender
submissions.
28. Advantages of e tendering
4.Reduction in the labour intensive tasks of receipt,
recording and distribution of tender submissions.
5. Reduction of the paper trail on tendering
exercises, reducing costs to both councils and
Suppliers.
6.Improved audit trail increasing integrity and
transparency of the tendering process.
7. Improved quality of tender specification and
supplier response.
8. Provision of quality management information
29. Penalty on contractor:
slow progress: For slow progress contractor may be penalised
with 1% of the cost of the construction per week and should
not exceed 10% cost of contract.
damages: if contractor uses department equipment. repair or
replacement of equipment or plants should be done.
Termination of contract:
The executive Engineer or the competent authority is
empowered to terminate the contract in case of the
bankruptcy or default of contractor an amount up to 10%
estimated cost is forfeited if the contract is to be terminated a
notice to that effect has to be serves to the contractor.
30. Termination of contract:
The contract agreement may be terminated in the
following conditions:
Bankruptcy : If both or one of the parties become
bankrupt the contract may be terminated
since the work cannot be completed due to lack
of funds.
Breach of conditions : If one party fails to follow
the conditions mentioned in the contract
then the other party has every right to terminate
the contract and can also claim for damages done
to him through court of law or through arbitration
31. Agreement: Due to extraordinary circumstances
it may become necessary to terminate the
contract by mutual agreement. For example the
owner or contractor may expire and no other
person may be there to fulfil the agreement.
Completion of the work: If the work is
completed satisfactorily as per the conditions in
the agreement then also the contract is
terminated after making the final payment to
the contractor and releasing his security deposit.
32. MUSTER ROLL
muster roll is a record, in which names, particulars
and attendance of daily labourers, payable to-them
and the work done by them are recorded.
The advance for payment to the labour is issued on
the basis of muster roll and after disbursement of
wages and recording necessary certificates of
disbursement is kept as a voucher. In muster roll
form the record of the attendance of labourers,
payments and work done by them are recorded
33. Rules for preparing muster roll:
1 . One or more muster rolls can be used for the same work.
2. Muster rolls should never be prepared in duplicate for the
same work.
3. The presence of labour should be marked with a cross mark
(X) and the absence, with letter A
4. Labourers may be paid more than once a month depending
upon local conditions, but after
each payment, separate or new muster roll has to be opened.
5. The daily record of attendance and fines should be
recorded.
6. After the muster roll has been passed, payment should be
made as early as possible by the
sub-divisional officer in the presence of subordinate
concerned, who should certify to the
payment as "paid in my presence to the right person".
34. common irregularities in the master rolls:
1. The labourers employed on muster roll not grouped.
2. Muster rolls contain erasures and over writings.
3. Muster rolls not signed daily. Muster rolls should be
signed daily by the person who mark the
daily attendance.
4. Attendance is not marked daily. The attendance of the
muster roll labourer should be marked
daily.
35. common irregularities in the master rolls:
5. Discrepancy between the daily report and muster
roll. The details of labour given in daily labour
report and muster roll should tally. Any difference
between the two is highly objectionable.
6. Corrections not attested. Any correction made in
the muster roll should be attested with the
dated initials of the person who makes it.
7. Delay in passing the muster roll and its payment.
36. LABOUR REPORT
This report gives the following information's.
1) Category or class of labourers such as mason,
carpenter, etc.
2)Number of labourers employed in each
category.
3) Rates at which labourer employed.
4)Approximate amount of work done, etc.
37. MEASUREMENT BOOK(MB)
It is a book which records the measurement of all the works
and supply of materials for the purpose of payment.
all measurement books are serially numbered and pages of
each book are machine numbered. The register of
measurement book is maintained in Divisional Office showing
the serial number of each book, name of the Sub-Division to
which it is issued. The date of its issue and date of its return to
the divisional Office also will be recorded in the register. The
loss of measurement book is the serious matter which should
be reported to the higher officer and the person responsible
will be punished
38. Importance of MB
1)MB is initial record for all kinds of works.
2)MB are the basis for all kinds of account of
quantities.
3)MB must be accurate and kept carefully
39. Kinds of Measurement Books:
1) Ordinary measurement book.
2)Standard Measurement book
3)Check measurement Book
40. Kinds of Measurement Books:
1) Ordinary measurement book:
It is an initial record of all kinds of works which are susceptible to
measurements. In this book entries regarding the work done, supplies
made are recorded for the purpose of making payments
to the contractors.
2) Standard measurement book
In the department there are some buildings which are repaired
periodically and the quantities of various items of work remain same
from year to year. In such cases of repair works to save the trouble of
measuring them every time, it is convenient to maintain standard
measurement
books of such buildings. Thus the measurement book in which standard
measurements are recorded is known as standard measurement book.
preparation of estimate for periodical repairs, white washing, color
washing, etc. The standard measurement book is checked every year.
41. Kinds of Measurement Books:
Advantages of standard measurement book are:
1. It facilitate the preparation of estimates for repair work from
time to time.
2. It simplifies the preparation of the contractor's bill as it is not
necessary to take detailed measurement.
3. Check measurement book
42. Kinds of Measurement Books:
3)Check measurement Book
To check the measurements made by the Sectional Officer or
Junior Engineer a check measurement book is kept by the Sub
Divisional officer. Some portions of the measurement which are
recorded by section officer will be checked by AE and EE in
presence of Section officer. AEE checks 25%and EE can check 8-
50% of each subdivision in case of civil works
difference should not exceed 17%
Earth work 10%
repair 5%
if exceeded then it has to be escalated to the higher officer.
43. IRREGULARITES IN WRITING MEASUREMENT BOOK
1. Agreement number is not written on the top of the
measurements.
2. over writing and erasing original entry
3. Entries in the measurement book interpolated and corrected
and the amount of the bill is also changed after the original
preparation of the bill.
4. Blank spaces shouldn't be left in pagea
5. Entries in the measurement book are not recorded at the site of
work, but copied from some other record
6. Entries originally are made in pencil and inked over afterwards.
7. Full particulars of work are not given and the name of the work
does not tally with the sanctioned estimate.
8. Payments are made without the sub-divisional, officer's pay
order or the clerk's certificate of check.
44. IRREGULARITES IN WRITING MEASUREMENT BOOK
9. Percentage of checks by senior officers is inadequate.
10. Corrections are not attested.
11. Voucher number and date not indicated after making the
payment.
12. Index of the measurement book is not up to-date.
45. IRREGULARITES IN WRITING MEASUREMENT BOOK
9. Percentage of checks by senior officers is inadequate.
10. Corrections are not attested.
11. Voucher number and date not indicated after making the
payment.
12. Index of the measurement book is not up to-date.
PAYMENT OF BILLS
Bill: It is the account of work done or materials
supplied. It contains full particulars lika!
amount, amount due and agreement number is
also mentioned.
Voucher: It is a return document as a proof of
payment.
46. TYPES OF BILLS
Four types of bill forms are used depending upon the mode of
contract.
1. First and Final Bill
This form of bill is used for making payment to contractors both
for works done or supplies
received, when a single payment is made for a job or a contract
on its completion.
2. Running Account Bill
This form is used for contracts both for works executed on
piece-work system and for
received This bill is prepared for
1) Value of measured items of work
2) Value of authorized extra work on account of additional
works
47. TYPES OF BILLS
3. Lumpsum Contract Bill
In the Lumpsum contract method, a number of
intermediate payments.ie advance pay
are made in Lumpsum contract running-account bill
form before final payment.
ount bill-form before final payment is made.
4) Hand Receipt.
this is an simple voucher which is used for the small
and petty works
48. Mode of payments
1) Mobilization Advance- mobilise Resources
2) First and Final Payment- applicable for small
works
3)Final payment - Running account bill after
completion of work
4) intermediate Payment- after part work
completion
5) Advance - work has sufficient progress.
6) secured Advance - Divisional officer may sanction
advance at the rate of 70% of value of materials
which are brought to site
49. checking of Bills
before signing the bill the sub divisional officers or
AEE should check the following deduction have made
and compare bills .
1) Recovery of Advance payments.
2) Recovery in respect of department material used .
3) Hiring charges for department tools and plants.
4) The amount to be with held towards SD
5) Penalty and slow progress
6) Recovery towards empty bags not return.
50. checking of Bills
before signing the bill the sub divisional officers or
AEE should check the following deduction have made
and compare bills .
1) Recovery of Advance payments.
2) Recovery in respect of department material used .
3) Hiring charges for department tools and plants.
4) The amount to be with held towards SD
5) Penalty and slow progress
6) Recovery towards empty bags not return.
51. PASSING AND PAYMENT OF BILLS
-after checking bills arithmetic check, accuracy
and compare with contractors ledger
-memorandum of payment is made
-officer shall pass Bill on the basis of MB and
cross out it.
- the contractor is paid for the net ammount
and by cheque and acknowledgement taken for
Gross ammt
52. ESCALATION:
In case of Big projects, later stage of project may face price
increase in construction materials hence such statements
are included in tender document to escalate if the prices of
materials like cement, aggregate and steel etc goes up.
HINDRANCE REGISTER:
hindrance caused by contractor or owner or by third
parties and major forces are to be recorded in a register
called hindrance register.
This is the reliable document to decide on extension of
time .
53. Drawing Register:
This register maintained list out drawing relating to the
project.
COMPLETION REPORT
When a work is completed and the accounts have been
settled, a note below the final entries is made in red ink.
Work completed on ______ date and this note is signed by
divisional officer. with notes and orders
And Project competition certificate is issued in a standard
format .
54. Principles to be followed in PWD system
All transaction is, whether income or expenditure
have to be passed through certain specified heads
everything should be done with certain
procedures and rules and regulations responsibility
is laid on divisional officer. and should be under
certain heads of account.
1) Expenditure heads.
2) Revenue Heads
3) Remittance head
4) Debit or depository heads
55. IMPREST & TEMPORARY ADVANCE
Imprest is a standing advance of fixed sum of
money given to Sub- divisional to enable them
carry out day to day petty payments for proper
discharge of their duties either in cash or in the
form of voucher.( Without bills)
Temporary advances
These are granted to Sub-Divisional Officer for
making specific payments on bills or Muster rolls,
etc
56. CASH BOOK
The cash book is one of the most important
account records of the division.
It is maintained in form-1 for all cash
transactions for day-to-day, strictly in order of
occurrence.
The detailed instructions are available in the fly
leaf of the cash book.
The pages of the cash book are machine
numbered
57. CONTRACTOR'S LEDGER
For every contractor a separate Register is
maintained at sub divisional office in this ledger
all the details of the contractor and payments,
recoveries adjustments are noted in a prescribed
format.
58. Stores Management:
STORE : it is a place that keeps the materials in a
way by which the materials are well accounted
for, are maintained safe, and are available at the
time of requirement.
59. Stores Management:
STORE : it is a place that keeps the materials in a
way by which the materials are well accounted
for, are maintained safe, and are available at the
time of requirement.
Classification of stores
1)Stock or general stores
2)Tools and plants
3) Materials charged direct to work
4)Road metals
60. 1)stock or General Stores
Department keeps all the necessary construction
materials to avoid delay
61. Sub heads are
1) small stores : nails , screws nuts bolts etc
2) Building materials : cement brick steel etc
3) timber: teak wood etc
4) Metals : iron rolled, sections etc
5) fuel and lubricants coal petrol
6) Painter store: paints brush etc
7) House fittings
8) Miscellaneous store : pipes empty drums etc
9) Manufacture
62. 2) Tools and plants
1) General or ordinary tools and plants
2) Special tools and plants
Sub heads of Tools and plants:
1) Plants and machinery- fixed, movable,
locomotive, vehicles,road making
2) Tools -Fixed(lathe), saw drills etc
3) Scientific apparatus and instruments-pippet ,
thermometer, breakers, surveying instruments-
chain tape theodolite,total station etc
63. 2) Tools and plants
1) General or ordinary tools and plants
2) Special tools and plants
Sub heads of Tools and plants:
Furniture- office chair , office tables,waste
paper basket etc
Hospital equipment-furntures dentist chairs ,
xray plants etc
Live stock - bullock, horses etc
64. Maintenance of stores
Points to be considered for storages of materials
1) Combustible materials should be kept
separately to avoid fire accidents.
2) oil should be stored in seperate store over the
sand
3) petroleum should be stored in under ground
tanks.
65. Maintenance of stores
4) Textile material should be protected from
attack of insects
5)coal charcoal should be stored in bins
6)all iron and steel should be grouped as per size
7)Road metals are stores on level ground.
66. 8)canvas material should be exposed to sunlight
and dried often .
9)all wood items should be periodically examined
and preventive measures should be taken.
ISSUES:
The materials are issued from stocks for following
1)Either for direct use or for contractors use
2)For sale to contractor or to the other person
3) transfer to other stores within division
4)For dispatch to other departments
67. Indent:
issue of materials from stock should be made only
on the receipt of an indent in a quadruplicate
signed by divisional or sub divisional officer.entry
of materials should be made in all four copies of
indent.
One copy with store keeper himself
One copy returned to the indenting officers
Third and fourth copy sent to divisional officer
68. Invoice:
The invoice is available in tge standard format
which should be filled up when the materials are
to be supplied.It should be sent along with the
materials to the indenting officers for his
acknowledgements. Indenting officers should sign
and return it to the store keeper. Invoice should
be in triplicates
One original will be in invoice book
2 will be sent to divisional officer.
69. Bin card:
In stores, a number of materials are to be
handled. Details of information about the
stock position,drawel rate per month, when
the order of perticular material is placed are
all entered on bin card .
Specimen of Bin card:
70. Inspection of stores:
# Verification of materials should be made in the
presence of the authority responsible.
# Ending 31st March and 30th September in the
same manner as stated.
# Tools and plants, stocks should be done every six
months.