Thursday, 6 September 2012

CONTRACTS MANAGEMENT
ASSIGNMENT
Contract administration and monitoring is the most important area of construction management. Contract
administration process start right from the day work is assigned to the contract. Discuss any project
contract currently in progress with your company and how administration and monitoring is being done.
Draw the organization chart for the activity and explain all the function carried out. Do you think the
system is achieving results? Discuss.
The project under
study
Contract BC-44 : Construction of underpass at
airforce station, arjangarh on Qutub Minar-Gurgaon
corridor of Delhi MRTS Project.
Name of the company Delhi Metro Rail Corporation Ltd., New Delhi
Name of contractor -Not to Display-
Type of Contract Lump sum
Value of Contract -Not to Display-
The contract is of Lump sum contract. The price is
quoted on the basis of tender drawing issued at the time
of tender, detailed drawings are given during the
execution stage.
Time Schedule 8 Months
The agency shall submit with the tender Time
Schedule for completion of various portions of works.
This schedule is to be within the overall completion
period of 8 Months. The intermediate key-dates as
mentioned in clause 17.0 of Special conditions of
Contract are to be indicated specifically in the time
schedule and these will have to be achieved for each
station comprising the lot. The detailed programme in
the form of a quantified bar chart or CPM network shall
include all activities starting from design to completion
Scope of work in brief
General
The work content in this contract consists of Construction of underpass at Airforce Station, Arjangarh on
Qutub Minar-Gurgaon Metro Corridor of Phase-II Delhi MRTS Project. The work includes Earth work,
Rock excavation, RCC structural work drainage work and external development work etc. The work
includes RCC box type underpasss with entry & exit ramps on both side of RCC box. The underpass is to
be laid across the running Mehrauli-Gurgaon road connecting two campus of air force station
Arjangarh.The work is to be constructed and maintained as per relevant Codes, CPWD Specifications,
Special Specifications, drawings and/or as directed by the Engineer. The scope of works shall, inter-alia,
include the following but not be limited to:
1. Site clearance and dismantling of obstructions etc., before commencement of work all as
specified or as directed.
2. True and proper setting out and layout of the works, bench marks and provision of all
necessary labour, instruments and appliances in connection therewith all as specified or as
directed.
3. Excavation and Provision of building foundations including ramp portion as per detailed
structural drawings.
4. Provision of walls, columns, beams and slabs as per specification or as directed.
5. All aspects of quality assurance, including testing of various components of the work, as
specified or as directed.
6. Architectural works comprising brick work, concrete work, flooring work, veneering to
walls and columns, doors and windows, railing, and screen wall etc. as described in the detailed
schedule of quantities.
7. Development works comprising Excavation, leveling, road work in ramp, approaches to
ramp and it is vicinity as shown in the enclosed drawing in the campus for the Airforce station.
The road work include sub-grade preparation of sub-base /base coarse in the WBM, paving road,
drainage etc.
8. Cleaning of site and handing over of all the works, as specified or as directed.
9. Maintenance of the completed work during the period as directed.
10. Submission of completion i.e as built drawings and other related documents as specified.
11. Any other item of work as may be required to be carried out for completing the work
under this contract in all respect in accordance with the provisions of the contract and/ or to
ensure the structural stability and safety during and after construction.
Execution of works
The execution of structures and all other works in the scope of work and enclosed drawing will have to be
planned in such a manner that they do not obstruct or interfere with the existing roads/ railways, drain,
water supply, electrical lines and other utilities. Where work is required to be carried out at locations
adjacent to such roads/ railways, utilities, structures, monuments etc. suitable safety and protection
arrangements will have to be ensured for which nothing extra will be payable. It should be ensured that no
damage is caused to any such element and DMRC shall be indemnified against such damage at no extra
cost.
Interface Works
1. Co-ordination/co-operation with other contractors
2. Interface with Structural Contractor
3. Interface with E&M Works
4. Interface with Elevator/escalator contractor
5. Interface with False Ceiling Contractor
Traffic Management
The Contractor shall follow the approved traffic diversion plans in liaison with the civil contractor for
traffic management.
Important points form contractors point of view
Clause 9.0 of SCC, Quality Assurance Manual
The Contractor shall submit a detailed Quality Assurance Manual demonstrating the proposed method of
achieving the required quality standards of the Employer. The quality manual should address the quality
system as required by ISO 9001-1991.

Quality manual should clearly list out the procedures, activities, checks, standards and any such thing
such as schedule of tests, which he proposes to carry out during the progress of the works and are
necessary to comply with the quality objectives of the Employer.

Manual should also list the corporate policy adopted by the Contractors firm

No extra payment will be made for complying with the provisions of this clause and the cost of the work
under this element shall be deemed to be included in the Bill of Quantities

Sub-clause 4.15 and clause 7.5 of SCC, Safety, Health and Environment
The Contractor shall be responsible for total compliance of Safety, Health and Environmental Protection
safeguards as elaborated in combined Safety, Health, and Environmental Manual (SHE) of the Employer.

The Contractor shall provide all necessary access, assistance and facilities to enable the Engineer and
Employer to carry out surveillance to verify that the site safety and safety assurance plans are being
properly and fully implemented in accordance with the Contract.

No extra payment will be made for complying with the provisions of this clause and the cost of the work
under this element shall be deemed to be included in the Bill of Quantities.
1. Contractor may note that housekeeping at Work sites and safe surrounding are very
important. Mishandling of bentonite (like splashing of bentonite outside specified width of
barricading or non cleaning of tyres of dumpers and transit mixers before leaving the piling site
thereby making the road dirty is strictly prohibited. Noncompliance of same shall attract a
liquidated damage as follows:
1. On first observation Rs one lac
2. On second observation- Rs two lac
3. On third and each subsequent observations- Rs three lac
2. Penalties as provided in the conditions of contract on safety ,health and environment shall
be levied to the contractor for any violation to the provisions.
3. Sub-clause 4.12, Temporary Works
The Contractors proposals for erection of all ancillary and temporary works shall be in
conformity with the proposals submitted along with the tender and modifications thereto as
approved by the Engineer.
The Contractor shall submit drawings, supporting design calculations where called for by the
Engineer and other relevant details of all such works to the Engineer for approval at least one
month before he desires to commence such works. Approval by the Engineer of any such
proposal shall not relieve the Contractor of his responsibility for the sufficiency of such works.
No extra payment will be made for complying with the provisions of this clause and the cost of
the work under this element shall be deemed to be included in the Bill of Quantities.
4. Sub-clause 4.20 Right of Ways and facilities, 4.21 Avoidance of Interference and Safety
of Public and 4.32 Extraordinary Traffic
Existing roads and other public roads may be used by the Contractor at his risk and cost to carry
out construction activities, with prior approval of the competent authority.
The Contractors heavy construction traffic or tracked equipment shall not travel on any public
road or bridge, unless the Contractor has made arrangements with the authority concerned and
has obtained the approval of the Engineer to such arrangements. The Contractor shall include in
his price the cost of strengthening any such public road or bridge if he considers it would be
necessary
The Contractor shall repair any damage to the road or bear the cost thereof due to movement of
contractors plants and equipment, vehicles etc. to the specifications and satisfaction of road
authorities as well as of Engineer.
The Contractor shall plan transportation of construction materials to work site in accordance with
traffic regulations enforced by local traffic authorities from time to time and in such a way that
road accidents are avoided.
No claim whatsoever shall be entertained on this account. The transportation of certain
equipments and materials and launching may not be possible during day and may have to be
carried out within time schedule specified by traffic police.
No extra payment will be made for construction and maintenance of temporary haul roads if any
needed including any special protection or strengthening required and all cost of such works shall
be deemed to have been included in the costs of items in Bill of Quantities.
5. CARE OF THE WORKS
(1) Any error in the execution of work leading to redesign work shall be duly compensated by the
contractor as per the decision of Engineer. Any error attributable to the construction including
failure to locate underground utilities shall attract penalties.
(2) Unless otherwise by the Employers Representative all works shall be carried out in dry
conditions.
(3) The Works, including materials for use in the Works, shall be protected from damage due to
water. Water on the Site and water entering the Site shall be promptly removed by temporary
rainage or pumping system or by other methods capable of keeping the Works free of water Silt
and debris shall be removed by traps before the water is discharged and shall be disposed of at a
location or locations to which the Engineer has given his consent.
(4) The discharge points of the temporary systems shall be as per the consent of the Engineer. The
Contractor shall make all arrangements with and obtain the necessary approval from the relevant
authorities for discharging water to drains, watercourses etc. The relevant work shall not be
commenced until the approved arrangements for disposal of the water have been implemented.
(5) The methods used for keeping he Works free of water shall be such that settlement of, or
damage to, new and existing structures does not occur.
(6) Measures shall be taken to prevent flotation of new and existing structures.
6. PROTECTION OF THE WORKS FROM WEATHER
(1) Work shall not be carried out in weather conditions that may adversely affect the works unless
proper protection is provided to the satisfaction of the Engineer.
(2) Permanent Works, including materials for such Works, shall be protected from exposures of
weather conditions that may adversely affect such Permanent Works or materials.
(3) During construction of the Works storm restraint systems shall be provided where appropriate.
These systems shall ensure the security of the partially completed and on going stages of
construction in all weather conditions. Such storm restraint systems shall be installed s soon as
practicable and shall be compatible with the right of way, or other access around or through-out
the Site.
(4) The Contractor shall at all times programme and carry out the work duly ensuring protective
arrangement such that the Works can be made safe in the event of storms.
7. PROTECTION OF THE FINISHED WORK
(1) The finished Works shall be protected from any damage that could arise from any activities on
the adjacent site/works.
8. DAMAGE AND INTERFERENCE.
(1) Work shall be carried out in such a manner that there is no damage to or interference with:
(a) Watercourses or drainage systems;
(b) Utilities;
(c) Structures (including foundations), roads, including street fixtures, or other properties.
(d) Public or private vehicular or pedestrian access;
(e) Monuments, graves or burial grounds other than the extent that is necessary for them to be
removed or diverted to permit the execution of the Works. Heritage structures shall not be
damaged or disfigures on any account. The Contractor shall inform the Engineer as soon as
practicable of any items which are not stated in the Contract to be removed or diverted but which
the Contractor considers necessary to be removed or diverted to enable the Works to be carried
out. Such items shall not be removed or diverted until the consent of the Engineer to such
removal or diversion has been obtained.
(2) Items which are damaged or interfered with as a result of the Works and items which are
removed to enable the Works to be carried out shall be reinstated to the satisfaction of the
Engineer and to at least the same condition as existed before the Work started. Any claims by
Utility Agencies due to damage of utilities by the Contractor shall be borne by the Contractor.
9. STRUCTURES, ROADS AND OTHER PROPERTIES
(1) The Contractor shall immediately inform the Engineer of any damage to structures, roads or
other properties.
10. ACCESS
Alternative access shall be provided to all premises if interference with the existing access, public
or private is necessary to enable the Works to be carried out. The arrangements for the alternative
access shall be as agreed by the Engineer and the concerned agency. Unless agreed otherwise, the
permanent access shall be reinstated as soon as practicable after the work is complete and the
alternative access shall be removed immediately it is no longer required, and the ground surfaces
reinstated to the satisfaction of the Engineer. Proper signage and guidance shall be provided for
the traffic/users regarding diversions.
11. PROTECTION OF THE ADJACENT STRUCTURES AND WORKS
The Contractor shall take all necessary precautions to protect the structures or works being
carried out by others adjacent to and, for the time being within the Site from the effects of
vibrations, undermining and any other earth movements or the diversion of water flow arising
from its work.
PROJECT MONITORING
Clause 10.2 of General Conditions of Contract
Activities in the initial works programme would be arranged as per the Works Break Down Structure
(WBS) of the work developed by the contractor in consultation with and approved by the Engineer.
The contractor will prepare Construction Programme based on Computerized CPM network using the
Precedence Diagramming Method within 30 days of award for approval as Baseline Programme The
base line program shall clearly reflect interface and access dates for other civil/ system-wide contracts.
After the work has started, the Contractor shall deliver in the first week of every month to the Engineer an
update of the Construction Programme showing changes, if any, in planning or progress scheduling and
reflecting the progress of all the activities of the network and the project status as at the end of previous
month.
If the Contractor falls behind the approved Construction Programme by more than one month, he shall,
within fourteen days of the date of such information, submit for approval, a revision of the construction
programme showing the proposed measures, including augmentation of plant, labour and material
resources to complete the works on time.
Whenever the Contractor proposes to change the construction programme he shall immediately advise the
Engineer in writing and, if the Engineer considers the change a major one, the Contractor shall submit a
revised programme for approval.
Detailed Network Plan (Works Programme)
Detailed Network Plan shall be prepared by the Contractor for each and every activity within the same
time frame and in the same sequence as indicated in the master network plan. Activity at this level shall
not be more than 15 days duration, except for summary items like procurement/ mobilization etc.
The Contractor shall select a PC-based broad planning and control software on which the two networks
shall be implemented. Software selected shall be Microsoft Project, Version-2002 (MSP-2002) or higher
version. If any other compatible software is used, approval of the Engineer will be required. The
Contractor shall supply one original licensed copy of the software selected along with the Baseline
program network and detailed network plan free of cost and load it on the PC system of the Engineer so
that uniform monitoring of the project is done and any slippages are identified well in time and corrective
action taken.
The following reports, in agreed formats and frequency, shall be submitted by the Contractor at his own
cost
(a) Progress Reports
(b) Material Status Reports
(c) Equipment and Manpower Development Reports
(d) Inspection and Testing Report
Any other Report desired by the Employer or the Engineer
The Engineers monitoring team will have access to all the data/information of the Contractor, required
for the assessment of the progress and monitoring. If necessary, the monitoring team will visit the
Vendor/Contractors works in order to assess the status of critical activities.

Periodic Project Status Review Meetings will be held by the Employer or the Engineer. The Contractor
shall depute his Engineers/Managers at appropriate level as decided by the Engineer to attend the Review
Meetings.

Progress photographs of the major events shall be submitted by the Contractor along with the Progress
Reports.

The Contractor shall provide additional inputs whenever the PERT-CPM diagram indicates a possible
slippage in the completion schedule. Such additional inputs may require supplementing of equipment,
personnel, work in excess of the normal work per day, work in excess of the normal work per week or
other resources. Provisions under Sub-Clause 10.6.2 and 10.8.1 of General Conditions of Contract will be
applicable in cases of delays due to Contractor.
Contract Administration
It is done by the Chief Project Manager (CPM) with the team of deputy engineers (Dy CE), executive
engineers (XEN), and junior engineers (JE).

Powers are delegated by the CPM to his junior staff, who then supervise the work and take appropriate
actions.

There is a schedule of power also available which show the capacity of spending to get work done not
included in the tender of to change certain work or method. For special circumstances permission is
sought form the direction project or the Managing Director.
Conclusion and suggestion
The present form of contract agreement has developed in Delhi Metro Rail Corporation over a
period of time and it is successful. It is evident from the fact that the projects taken up by DMRC
are completed on/before time.

This in my opinion is partially because of the clauses added in the SCC for the better quality and
the SHE (safety, Health and Environment clauses).

But it is sometimes felt by the people administrating the contract that the contact in itself is too
time consuming if things start to go wrong. At many occasion a need is felt to bypass the
contract to shorten the time.

On analysis of the contract agreement it is found that it is lacking a key area i.e. incentive
clauses. Incentive clauses are important because pressure and fear (negative forms of
motivations) are not always effective. Although the Indian form of contract has achieved a no
lose situation but at the same time it is also a no win situation in many cases.

We need to include the positive motivation factor to shorten the project time. These clauses can
be made in a manner in which they will also reduce the project cost due to shortening of the
project time.

References:
- NICMAR publication lesson books on Construction Contract Management
- Contract Management in Civil Works Projects V.A. Prakash, NICMAR Publications
- Contract BC44, (procured strictly for academic purposes only) from Delhi Metro Rail
corporation Ltd.