PGP CM(PGCM 23)

ASSIGNMENT
ON

“CONSTRUCTION CONTRACTS AND

CONTRACTING”

(PGCM – 23)

NATIONAL INSTITUTE OF CONTRUCTION

MANAGEMENT & RESEARCH (NICMAR)
PUNE.

SCHOOL OF DISTANCE EDUCATION (SODE)

Submitted By:
Mr. Nilesh Sondigala
(PGP CM)
Reg.no.-217-03-11-50899-2193

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ASSIGNMENT:

Contract administration and monitoring is the most

important area of construction management. Contract administration
process should start right from the day work is assigned to the
company. Discuss any project contract currently in progress with your
company and how administration and monitoring is being done. Draw
the organization chart for this activity and explain all the function
carried out. Do you think the system is achieving results? Discuss.

Project Name:-- Four Laning of NH-4

Client: -- Govt of India

Location: -- Hubli- Haveri section Of NH-4 in Karnataka

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INDEX

1. INTRODUCTION………………………………………………………………. 4

2. PROJECT BACKGROUND…..………………………………………………. 4

3. SCOPE OF PROJECT………………………………………………………….. 5

4. SCOPE OF WORK……………………………………………………………… 6

5. SPECIFICATIONS FOR PAVEMENT CONSTRUCTION……..…………. 6

6. PROJECT BENEFITS……………………………………………..……………. 7

7. SALIENT FEATURES OF PROJECT………………………………………… 8

8. IMPORTANT DETAILS OF CONTRACTS, COST, TIME & TYPE……... 9

8.1 CONTRACTS………………………………………………………..… 9

8.2 CONTRACT AGREEMENT…………………………………….…… 10

8.3 COST…………………………………………………………………….. 11

8.4 IMPORTANT POINTS FRON CONTRACTOR’S PT OF VIEW… 11

9. PROJECT ORGANISATIONAL CHART WITH FUNCTIONS…………… 14

10. ARBITRATION…………………………………………………………………. 20

11. METHODS FOLLOWED FOR ADMINISTRATION/ MONITORING…… 21

12. RECOMMENDATIONS/ CONCLUSION……………………………………... 22

13. BIBLIOGRAPHY………………………………………………………………… 22

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1. INTRODUCTION
Contract management is the process that enables both
parties to a contract to meet their obligations in order to deliver
the objectives required from the contract. It also involves
building a good working relationship between customer and
provider. It continues throughout the life of a contract and
involves managing proactively to anticipate future needs as well
as reacting to situations that arise.

The central aim of contract management is to obtain the

services as agreed in the contract and achieve value for money.
This means optimizing the efficiency, effectiveness and
economy of the service or relationship described by the contract,
balancing costs against risks and actively managing the
customer–provider relationship. Contract management may also
involve aiming for continuous improvement in performance
over the life of the contract.

2. PROJECT BACKGROUND:
The development and up-gradation of National
Highway 4 which is a major National Highway in Western and
Southern India. NH 4 links four of the most populous Indian
cities - Mumbai, Pune, Bangalore and Chennai. NH 4 is
1,235 km (767 mi) in length and passes through the states
of Maharashtra, Karnataka, Andhra Pradesh and Tamil Nadu.

As part of Up gradation under Phase vii an existing 2

lane highway is required to be 4 laned from Hubli to Haveri
(NH-4) in the state of Karnataka is required to be constructed on
BOT (TOLL) Basis. The total length of the Project allotted to
M/s Afcons Apil JV is 64 km and consists of a four lane
highway at Hubli-Haveri section of NH-4 as part of NHDP
Golden Quadrilateral Project.

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3. SCOPE OF PROJECT:
The scope of the project shall mean and included, during
the construction period:

Construction of Project Highway on the site set forth and

as specified and in conformity with specifications.
Operation and maintenance of the project highway in
accordance with provisions of agreement.
Performance and fulfilment of all other obligation in
accordance with the provisions of the agreement and matters
incidental there to.

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4. SCOPE OF WORK:
The scope of work consists of providing four lane roads
with entry exit ramps from 340.00 km to 404.00 km with a
minimum clear vertical clearance of 5.5m from formation level
of existing bridges /roads/culverts. The scope of work also
includes, upgrading, widening, improving the existing roads
(NH-4/SH/local) roads near the entry exit rump locations with
suitable junctions drainage, cross drainage works , road safety
features, lighting etc, and 8 lane toll plaza with concrete
pavement, concrete retaining walls/ embankments for ramps,
drainage, restoration of embankment of river through which the
alignment is passing, fencing of row project highway, noise
barriers.

5. SPECIFICATIONS FOR PAVEMENT

CONSTRUCTION

The composition of the pavement for project road is as

follows:
a) Sub grade -500mm (Min CBR value 10%)
b) GSB (Grading 400.2)-300 mm in two layers (0-10%
passing 75 micron LL< 25 %;
c) WMM -250 mm in two layers

d) BM -75mm
e) DBM -110 mm in two layers
f) BC - 50mm

A typical pavement cross section of the NH-4 section is as

shown in figure below

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 Existing two- lane pavement will be widened by the same

treatment as that for new carriageway.
 Profile Correction of existing carriageway will be done by
bituminous macadam and strengthened by 5 cm thick by
Bituminous concrete as wearing course.

6. PROJECT BENEFITS:
The National Highways Developed Project (NHDP) has
great economic & social benefits which are summarized as
below-
a) Stimulate economic growth and reduce poverty in the
medium and long term
b) Rapid industrial development in the adjoining
c) Increase in job opportunities & norms
d) Benefits to trade especially in movement of perishable
goods
e) Faster and comfortable journeys by reduction in travel
time & traffic
f) Safer travel i.e. reduction in road accident congestion
g) Reduction in Vehicle Operating Cost and fuel
consumption
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h) Rise in land along the road and adjacent areas

i) All round development of areas
j) Reduced maintenance cost of road

7. SALIENT FEATURES OF PROJECT (NH4):

HUBLI-HAVERI SECTION OF NH-4

1. STARTING CHAINAGE Km- 340.00 (Hubli )

2. END CHAINAGE Km- 404.00 Near Haveri

3. LENGTH OF PACKAGE 64.000 kms

4. PROJECT COST 256.20 Crore

5. CONSTRUCTION 30 Months
PERIOD
6. NO. OF BRIDGES 15 Noz
(Excluding R.O.Bs and
Flyover)
7. NO. OF CULVERTS 43 Nos.

8. NO. OF Underpass 7 Nos.

9. NO. OF FLYOVER 2 Nos.

10. PROJECT REACH 6 kms

WHERE SERVICE
ROAD IS PROPOSED

The AFCONS JV is constructing the highway on a

BOT contract as part of which the the company has to
Design, Finance, Construct, Operate and Maintain the
Highway.
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8. IMPORTANT DETAILS OF CONTRACTS,

COST, TIME AND TYPE:
8.1 CONTRACTS

Contract Management Framework

There are three key players in the Contract Management

Framework:
a) Employer/Granting Agency (NHAI)
b) Concessionaire (AFCONS JV)
c) Independent Consultant (IE)

The inter relationship amongst these three key players is

depicted as follows:

Concessionaire
AFCONS JV

EMPLOYER
NHAI

Independent Consultant Construction

Consultant Design Contractors
(IE)

Consultant
Supervision

Hires
Reports To
Supervises

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 The Concessionaire has to supervise, monitor, direct and

control the activities of its EPC Contractor. The Concessionaire
has engaged an in-house team (CETL) as the Supervision
Consultant. The day to day supervision of construction work is
being done by the Supervision Consultant.
 The Design Consultant is responsible for detailed design and IC
reviews/concurs before GFC drawings can be issued.
 The NHAI appointed IE to act as the Independent Consultant
(IC). The object is to act independently and on behalf of NHAI.
Essentially the role is to oversee, monitor and review the
activities of the Concessionaire to ensure compliance with
Concession Agreement requirements.

8.2. CONTRACT AGREEMENT:

Subject to and in accordance with provisions the
agreement, the exclusive right license and authority during the
subsistence of the agreement to construct, operate, and maintain
the project for a period of 15 years commencing from the
appointed date.

a) Finance and construct the project highway

b) Manage operate and maintain the project highway
and regulate the use thereof by third parties.
c) Demand collect the appropriate fee from vehicles,
persons for using and project highway and any part
thereof and refuse entry of any vehicle if the fee due
is not paid.

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8.3. COST:
Subject to and on the terms and conditions of the
agreement the concessionaire shall at its cost expense procure,
finance for and undertake the design engineering, procurement,
construction, operation and maintenance of project highway and
observe, fulfill comply with:-

a) The concessionaire may procure at its cost an

expense and on its own the land that may be required by it
for additional facilities. Subject to the provisions the site
shall be made available by the authority to concessionaire
and during the concession period the concessionaire shall
protect the site from any and all occupations,
encroachments.
b) The concessionaire shall bear all the cost for any
special or temporary right of way required by it in
connection with the access to the site.

8.4 IMPORTANT POINTS FROM

CONTRACTORS POINT OF VIEW TO BE
MONITORED / RESOLVED

a) Notwithstanding anything to the contrary contained the

concessionaire shall ensure that the respective entities owning
the existing roads, right of way or utilities on under or above the
site are enabled by it to keep providing temporary or permanent
diversions. The concessionaire shall allow for laying telephone
line, water pipes, electric cable or other public utilities.
b) The concessionaire shall submit the authority the
detailed design, construction methodology, quality assurance
procedures and the procurement, engineering and construction
time schedule for completion of the project.
c) The concessionaire shall appoint its representative duly
authorised to deal with the authority.

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d) During the construction period, the concessionaire shall

furnish the authority a monthly report on the progress of the
works and shall promptly give such other relevant information
as may be required.
e) For determining that, the construction works confirm to
the specifications and standards. The authority shall require the
concessionaire to carry out or cause to be carry out tests at such
time and frequency and in such a manner as may be required in
the event that results of any test conducted any defects or
deficiencies in construction work, the concessionaire shall carry
out remedial measures and furnish a report to the authority.
f) During the construction period, the concessionaire shall
provide the authority for every calendar quarter, a video
recording, covering the status, progress of construction work in
that quarter. During the operation period, the concessionaire
shall operate and maintain the project highway in accordance
with the agreement and shall:
i. Permit safe, smooth and uninterrupted flow of
traffic on the project highway during normal
operating conditions.
ii. Collecting and appropriating fee.
iii. Minimising the disruption to traffic in the event of
accidents or other incidents affecting the safety and
use of project highway.
iv. Carrying out periodic preventive maintenance of the
project highway.
v. Undertaking major maintenance such as resurfacing
pavements, repairs to structures etc.
vi. Preventing with the assistance of enforcement
agencies, any encroachment on the project highway.
vii. Protection of environment and provision of
equipment and materials thereof

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viii. Maintaining a public relation unit to interface with

and attend to suggestions from users, government
agencies, media and other agencies.
ix. Complying with safety requirements in accordance
with safety requirements.

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9. PROJECT ORGANIZATIONAL CHART WITH

FUNCTIONS:
Following are the organizational chart with their function.

9.1) the Senior General Manager (CEO & COO)

The group head’s role would be the monitoring of the
designer’s output and activities, and taking responsibility for all
the work that is generated by the group.

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9.2) Area Manager

Interaction with contractors to detail out their
requirements, obtaining signoffs and overseeing the tendering
and negotiating process. Subsequently, during the execution
stage, he monitors the project for cost, quality, and schedules
and local administration.

9.3) The Project Manager (GM):

The project manager audits the project during the
drawing/design stage, for conformance to the stipulated process,
and for adherence to agreed schedules. Subsequently, during the
execution stage, he monitors the project for cost, quality, and
schedules. Following are the functions of General Manager.

a) Proper planning of every activity.

b) To make available all the requirements at the proper
time.
c) Getting approval for the various items from the
managing director.
d) Controlling all the Staff.
e) Taking decisions regarding consultant approval and
action to be done.
f) Coordinating with the staff and taking proper
feedback.

9.4) Deputy Project Manager (Civil)

For the civil work there are three fields to look after. In
highway section.
a) Highway department.
b) Structure Department.
c) Lab Department.
Following is the main function of DPM.

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a) To take time to time feedback from all three

department head and solving their problem by
which work being held.
b) To report the entire major problem to GM and
discuss on the problem and solve them as early as
possible.
c) Providing all the recourses at the site to complete
the work as early possible. Such as, equipments,
material and engineers.
d) To look after the Staff welfare to satisfy the
demands of Staff and to motivate the Staff.

9.5) Deputy Project Manager (Mechanical)

The main function of DPM mechanical is to organize the

routing maintenance of plant and machinery and repair
immediately the machinery or plant at the time of break downs
and given proper instructions to the Machinery Manager.
i. Provide maximum machinery in working condition.
ii. Fewer breaks down of plant.
iii. Proper functioning of plant to get major output
production throughout day

9.6) Construction Manager

The construction manager has some general

responsibilities which correspond with the job role. They are the
ones who help in the acquisition of land, the planning process,
obtain permits, hire workers, keep tabs on the progress of the
construction job and ensure that it is being completed in a
correct manner. They are the go-to person for most of the parties
involved with the entire Project. The construction manager is
also responsible for handling complaints or problems along the
way.

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9.7) Project Engineer (Highway):-

Main functions
a) Providing required technical data to execute work on the
site such as cross section of highway, RLs along the cross
section and longitudinal section, vertical curves and
horizontal curves details and offsets, super elevation and
extra widening details etc.
b) Utilize machinery and manpower with proper planning to
get maximum output in less time.

9.8) Project Engineer (Structure)

a) Providing required drawing of Structure details. And

working drawing at the site.
b) Providing all the activity program to the every engineer,
which indicate the activity get started and should be
completed within the time limit.
c) Provided proper bar bending schedule which is
convenient to employment and less wastage of steel.
d) Giving the requirement of materials to the store
department by proper planning of work such as
requirement of cement, steel aggregate sand and
admixture.

9.9) Site Engineer

a) Complete all the work which is assign by the Project

Engineer.
b) Giving time to time feed back to the in charge (Project
Engineer)
c) Making all the Bar bending Schedule and execute the
work accordingly with help of supervisor and skilled
labours in case of structure.
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d) Making all the level sheet and getting all the layer
checked by the consultants for approval of bed in case of
living way.
e) Making all the testing and work out the test result,
making all the design trial accordingly to instruction of ME
and finalize the mire design in case of quality.

9.10) Foreman/ Supervisor

These are non technical staff and they have to follow the
instruction of their in charges and doing work accordingly.

9.11) Material Engineer (Quality)

The main function is.

a) Testing of Materials and suggest to management
regarding good quality materials to be used in the project.
b) Taking source approval of all the materials from the
consultant such as. Approval of aggregate quarry,
approval of cement source, approval of steel source
approval of sand ghat. Etc.
c) Carry out all the main design of all concrete grades and all
bituminous work. Such as m15, m20, m30, m35, m40
DBM, BM, SDBC, BC. Etc.

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9.12) Store Department

The main functions are:

a) Which are the requirements coming from the
various departments such as highway. Structure,
quality and mechanical all the materials should be
purchase by the purchase officer and maintain in the
Store department.
b) All the inward and outward materials record is to be
maintained by the store department.
c) And time to time balance stock is to be get checked
few further placing of purchase order according to
the requirement of material at the site.

9.13) Safety Officer

Making safety working environment, safety all site worker

and staff, improving and applying all safety instruction on site is
the main work of this dept. Cleaning of site office maintains and
cleans all site awareness, cleaning of labor camp periodically,
making arrangement of good drinking water, good latrine / w.c.
Facility on site is the main work of health dept. Personnel
structure & reporting system - Safety engineer and Jr. Safety
engineer’s work as per site condition and safety supervisor help
to Jr.engineer.

9.14) Quantity Surveying officer

Checking of all drawing and specification regarding site,

estimating and surveying quantity of each work activity
separately, calculating material required quantity, labor required
quantity for each and every item is the main work of this dept.
Personnel structure & reporting system - Quantity estimation
engineer is the head of this dept. Jr. engineer will help to
estimation engineer. All basic plans and calculation Jr. engineer

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make and report to sr. engineer under supervision of estimation

engineer.

9.15) Store Keeper

Inspection of material and goods coming on site, intimate

or instruct to respective dept. (material ordered by) maintaining
material inward, outward registers making GRN, storing and
housing all material on site in proper place as per the site
condition and handover material to contractor as per their
requirement, keeping their records is the main work of store
dept. Personnel structure & reporting system - In this dept store
manager is the head of our site and storekeeper and store asst.
will help and report to store manager.

With all these functions of each authority we can maintain

a good administration and monitoring every level of working
we think that with this type of system we can achieving the
required result, because in this system we interlink, each level
with each other from top to bottom. And by this method we can
easily find out the any obstruction occurred in the organization.

10. ARBITRATION:
In case of any dispute occurrs with the client then the
management call for the arbitration, which is domestic forum of
resolution of dispute the cause of disputes could be due to the
contractor or the employer. The arbitrator resolves the disputes
between the employer and the contractor and his verdict is
legally enforceable arbitration is one of the quickest and
amicable means of dispute resolution.

Following are the various types of disputes in engineering

contracts.
 Giving timely possession of site.
 Making prompt payment.

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 Supplying correct instruction, drawing and design,

for carrying out the work.
 Not interfering with the progress of the works.
 Allowing contractor to carry out the whole of the
work.
These are the some methods by which disputes occurred
and some non-arbitration dispute resolve by the following
method, such as.
 By appeal at higher levels.
 By advisory committee.
 Empowered committees.
 Litigation of courts
With these method contractor resolves the disputes.

11) METHODS FOLLOWED FOR

ADMINISTRATION/MONITORING:
Methods followed for the proper administration and
monitoring of the project are as follows:
 Maintaining proper communication with the
concerning parties through telephones and letters.
 Making it very clear the duties of the contractor in
the tender document itself.
 Clearly specifying all the materials specifications in
the tender document.
 Timely site visits by architect/asstt. Architect to
monitor the construction work.
 Proper preparation of tender and working drawings.
 Demanding site progress reports weekly from the
contractor

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 Sending site visits report to the clients/owners for

their feedback.
 Asking for manufacturer's report, testing reports of
various materials used for construction from the
contractors.

12) CONCLUSION:

From all these elements of organization and scope of work

and type contract and with the management authority we can
achieve the success to complete the project with less time and
big profit.

13) BLIOGRAPHY/ READINGS:

1. Contract Management in Civil Works Project—V. A. Prakash

NICMAR Publication.

2. NCP23 (Construction Contract and contracting).

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