Professional Documents
Culture Documents
Forms of Contract Unit-price or item-rate:- rates per unit of each item of construction. (measure
& value contract-most of the public works are carried out under this form)
Termination of Contract
Cost-plus or percentage:-
• Disadvantage- final cost, inferior work, illegal for public bodies, checking
contractor’s account
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Types of contracts
Responsibilities
• Labor contract
• Package deal contract-design and cost estimate by contractors
• Demolition contract • Engineer
• Negotiated contract • Contractor
• Schedule of prices contracts • Owner
• Money to be deposited with tender document (1-2%) • Initial investment for several articles like centering, labor,
– Only interested and competitive parties may take part. travel of staff, erection of temporary structures, etc.
– For punishment if contractor has quoted false information.
Security Deposit
• Money to be deposited after the award of tender (@ 5%)
– Deposit for loans.
– For punishment if contractor executes the work not in line
with tender document.
Tenders
Acceptance
• It is an offer in writing for executing certain specified work or
for supplying specified materials subject to certain terms and • Tender with least cost
conditions like rates, time limit, etc.
• If party fails to accept the tender with security deposit owner
may consult to second lowest party.
• Classification
– Open or public Revocation of Tender
•By owner
– Selected or limited
•By Contractor
– Negotiated
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Unbalanced Tender
Tender Form
• Price • Itemized contract- contractor may quote less rates for several items
and more rates for few items, wherein total cost remains
• Earnest Money unaffected.
• Security Deposit
• Use of equipments & organisation-less for few equipments owned
• Time Limit by contractor and higher cost for hired equipments
• Tender Validity
• Miscellaneous • Working capital- high cost for few items which are likely to get
completed in early stage for generating working capital
• Loss in terms of amount per day of delay in the form of • Title, Owner, Brief description of work, issue of tender form,
liquidated damage. receiving the tender, type of contract, Earnest money &
• Owner may lose his right if security deposit, plan and specification, award of contract,
– Act of owner signature.
– Certificate of engineer
– Clause of extension
– Original contractor termination
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Conditions of Contract
• Inspection and testing of materials
• Facilities for other contractors
• Time limit and rate of progress
• Nominated sub-contractors
• Sanitary arrangements
• Insurance of works, materials, construction plant, etc.
• Damage to persons or property
• Use of intoxicants
• Work at night or on holidays
• Services required for the contractor’s purposes
• Temporary works
• Prevention of nuisance
• Pollution of streams
• Controlled materials
• Documents mutually explanatory
• First aid