NOTES TO REFER FOR

PROFESSIONAL PRACTICE
2 ND YEAR RACHANA SANSAD COLLEGE DIPLOMA COURSE.

OFFER LETTER: An architect makes a design proposal to the client as per the clientss requirement. Once the basic layouts are approved, the client then asks the architect to quote his professional fees to further take up the project as a whole. At this time the architect prepares a proposal for his professional fees for the same. This draft is known as the offer letter. It is issued by the architect to the client. It is also attached with a desired payment schedule pertaining to the fee installments. OFFER LETTER To Mr.______ (clients name) Company Address _______ Ref: - Offer Letter Dear Sir, I thank you for enquiring with our firm and giving us an opportunity to make a proposal for Interior Design Consultancy and Project Management for your corporate office at _____ (site location). I would humbly like to convey to you that our professional fee for the said project shall be 10% of the total cost + applicable taxes. Date:- ________

Our scope of work shall be as follows:1. Site Analysis 2. Schematic layout & Conceptual drawings 3. Service layouts & working drawings 4. Preparing BOQ & determining detailed scope of work for all agencies involved 5. Time scheduling 6. Arranging for agency cost estimate & coordinating with them. 7. Site supervision, quality check & material selection 8. Bill certification 9. Successful & satisfactory handover. I request you to confirm our appointment as interior design consultants and project managers for the said work along with an appointment letter and commencement advance as per mentioned in the payment schedule. Kindly issue a cheque in favour of ________ (Architects company name). Thank you Yours truly

Tender : Tender is an offer in writing for executing certain specifiC work, or for supply of specified material subject to certain terms and conditions like rates, quality, quantity, time limit etc. Prior to inviting of tenders, it is the duty of an Architect / I.D to see that, 1) 2) 3) All the plans, specifications and details are not only clear and correct, but without any ambiguity. Bill of quantities should be as accurate as possible. Special conditions/clauses if any should be thoroughly checked so that not a single item is overlooked.

Types of invitation of tenders. (1) Tender by private invitation: An Architect maintains a panel of contractors or consultants known to him or whom he has worked with in the past. Depending on the scope and nature or work, the architect chooses one or two contractors to bid for a particular project. He does not advertise in the media in such cases. Such selection of tenderers is termed as invitation of private method or Tender by private invitation. Merits: (a) Quality of work is assured. (b) Since the contractor is known to the architect, he is confident about the contractors ability to understand the detailed drawings and produce the work accordingly. Hence frequent sites visits or monitoring is minimized. (c) There are minimum chances of dispute over unit rates or cost since the Architect and the contractor already have a successful past record of working together. (d) The Architect is aware of the contractors market credibility and financial strength. Hence minimum risk is involved. Demerits: (a) Since the same known contractors are repeated by the Architect, the possibility of getting in contact with a fresh, able and a competent contractor gets eliminated (b) There is a possibility that the bidding contractors may quote higher than the usual market rates since there is hardly any competition to beat.

(c) The contractor may lack in professional approach since he will be working in comfortable and known setup again. (d) The quality of work may get affected because the contractor has nothing to prove since he is already on the Architects panel. (2) Tender by Public Invitation. An Architect calls for tenderers for a particular job by the means of advertising publicly. Such invitation of tenders are advertised mainly through newspapers and other media like local cable operators, TV or internet websites. In this case the Architect does not restrict himself to his maintained panel of contractors, instead prefers to call for bidders through public advertises. Merits: (a) There is a definite opportunity for the Architect to get in contact with a genuine, talented and reputed contractor and vice versa. This could lead to many successful ventures in future for both of them. (b) The contractors approach is thoroughly professional towards the project since he has to make the best out of the given opportunity to get more work in future from the Architect or client. (c) The rates quoted by the contractor are extremely competent since he has to beat a lot of competition to bag the project. (d) The contractor is extremely thorough with his billing and related documents since he is working with the Architect and the client for the first time. Demerits: (a) Since the Architect is working with the contractor for the first time, comfort and compatibility in terms of repot and understanding of detailed drawings is not guaranteed. This may lead to non achievement of the desired end product. (b) Since the contractor has quoted extremely competent rates to bag the project, there is a possibility of him using inferior quality of material to maximize his profit margins. (c) The Architect and the contractor are new to each others style of working, hence If they do not remain cordial during the project span, there is a possibility of the project quality getting affected hugely.

(I)

EARNEST MONEY (EM) It can be defined as an initial deposit which is sent by the contractor to the owner along with the tender in order to show the genuineness of the contractor. The amount of earnest money varies from 1% to 2% of the estimated cost of the project. This amount remains in the safe custody of the designer/Architect till the work is allotted to a particular contractor who will be asked to deposit further sum towards security deposits. The main purpose of the earnest money is to see that a fair competition takes place for the project. The earnest money is forfeited in favour of the Owner in case the contractor refuses to enter into a contract after his tender has been accepted. It is accepted in the form of cash, cheque and at times in the form of negotiable Govt. securities.

(II)

SECURITY DEPOSIT (SD) When the tender of a particular contractor is accepted, he is asked to deposit a further amount with the owner varying from 2% to 5% of the estimated cost of the project and is known as Security Deposit. This amount of SD includes the EM already deposited by the contractor. It is paid in the form of cash or cheque and at time in the form of negotiable Govt. securities. This amount is kept as a check so that the contractor fulfills all the terms and conditions of the contract, carries out the work to entire satisfaction and maintains proper progress of work. If he fails in the same, this whole or part of the security deposit is forfeited. It doesn't carry any interest and is returned to the contractor after his defect liability period is over.

(III)

TENDER NOTICE The purpose of advertisement is to inform all the interested contractors to give their offers for the specified work. It can be termed as an invitation to offer.

Essential Characteristics of a Tender Notice 1) 2) 3) 4) Tender Notice must mention the name of the owner, the place, nature and the extent of work, and the estimated cost. It must mention amount of earnest money and tender fees. Minimum time of returning the tender by the contractors should be atleast 15 to 20 days from the date of the issue of the same. The place of delivery of tenders by the contractors should be specified.

5)

The Contractor should be asked to inspect the site prior to filling of the tender, so that he can ascertain well in advance the working conditions the nature of soil for the foundation etc.

Letter for calling Tender / Tender Notice

To, Mr._________( contractors name) Add: ______________________ Re: Invitation for tender. Dear Sir,

Date:_________

Sealed tenders are invited from contractors of repute for the Renovation of 6 residential flats at Juhu for Purnima Co-operative Housing Society Ltd. The approximate cost of work is Rs. 50 Lacs and the last date of submitting the tender is 25.05.2012 before 5.30 p.m. Tender form can be had from the office of the undersigned from 05.05.2012 on payment of tender fees of Rs. 200/(non-refundable). Copies of drawings can be inspected at the office during office hours or can be had from the office on payment of Rs. 500 per flat (non-refundable). A tender must be accompanied with an earnest money of Rs. 6000/-. The Architect or the Owner is not bound to accept the lowest tender or assign any reason for the same. Yours sincerely, ____________( Architects name) _________( Name or firm and add)

Tender document The tender forms or documents which are issued to the various contractors must be complete in every respect and must contain all the relevant details, of the works. Each tender form must contain the following. 1) 2) 3) 4) 5) Special notice issued either in the name of the owner or in the name of the contractor. Tender acceptance letter from the contractor. Articles of agreement with special conditions of the contract. General specification. Bill of quantities in case of item rate tender and special conditions and specification of works in case of lumpsum tender.

Difference between Tender and a Contract. What is estimation. Tender : Tender is an offer in writing for executing certain specified work or supplying specified materials subject to certain terms and conditions such as time limit, rates etc. Whereas a Contract is an agreement under which a contractor undertakes the execution of a certain work for a specified payment from the employer. It must be preceded by an offer in writing (Tender) or an oral one. A 'Tender' filled by a contractor, after being accepted by an employer becomes a contractor's contract with the employer. Opening of Tenders 1) In presence of client, designer or any other committee members. Contractors are generally not asked to be present in case of opening by private invitation. Contractors should bring the tender deposit amount (Cheques preferred). In absence of the client, the tenders can be opened by the designer himself. He has to scrutinize and submit them to the client with his recommendation and a thorough reason for choosing anyone. Tender deposits should be deposited in a separate account of the firm called as "agency account" fee should be deposited in "trading account".

2) 3)

4)

5)

Public tender are to be opened in presence of client, designer and tenderers.

Criteria's for Selection Contractor 1) 2) 3) 4) 5) 6) Financial Stability and man power setup. Organization Skills Market Credit Previous works executed and certificates to that effect from Architects. Works in hand of present. Behaviour and Temperament.

Terms and Conditions included by the contractor while quoting for particular piece of work. 1) 2) 3) Quantities mentioned in the BOQ are for estimation purpose only and may vary with final actual quantities. BOQ is subject to deviation during execution on account of changes in design, material or site condition. BMC & Soc. permissions pertaining to the job shall be obtained by the owner / client for which contractor wont be responsible. In case the contractor uses him sources to settle BMC issues then the same shall be charged additionally. Final billing shall be done on actual quantities and measurement sheet provided. The same shall be checked and certified by both the parties involved. The submitted rates are unit rates and it is assumed that the said rate are agreeable to the client and contractor. The rates for each item of work are calculated assuming certain quality and quantity of work the same shall be applicable for any addition work. The contractor will not be held responsible for any delay due to lack of time by payments or any natural calamities or social / political instability. The Contractor shall submit an estimate for any unforeseen cost involved during execution and it will be executed only after receiving a

4)

5)

6)

7)

written approval from the client. The same shall be bill and settled additionally as per the agreed rates.

Work Order Letter: It is an official letter issued by the Architect or the owner depending on the person through whom the payment is routed to the contractor to confirm his appointment for a particular project or piece of work for which the contractor has filled a tender. He is called for completing the further formalities pertaining to payments and documents before commencing the work.

Work Order Letter

Date :________ To, Mr.___________(Contractor's Name) _____________ (Company's Name & add) Subject: Appointment for execution of proposed Interior work at address of site owned by ______Client's name. Dear Sir, With ref. to your item rate tender for the above mentioned work date (date of tender submission). We have be directed by our client to inform you that he has accepted the same and as such your appointment as the contractor for the above work is hereby confirmed. We shall be thankful to you if you will kindly commence the work after signing the contract with the owner. The contract will be kept ready for necessary execution after 8 days from the date hereof and shall thank you to attend our office for the same when our client is present. yours truly, _________(Designer's Name).

Tender Acceptance Letter/ Letter of acceptance: The tenderer agrees on the special or general terms and conditions mentioned in the tender documents. He also agrees to the tender fee, EM, SD and other payment and document formalities along with clauses if any. He has to confirm his acceptance in writing for the above mentioned formalities to the owner/ Architect by issuing them a letter confirming his acceptance. This letter is termed as letter of acceptance or tender acceptance letter. Tender Acceptance Letter/ Letter of acceptance To, Mr.______(Designer's Name) ______(Company name & Add) Re : Dear Sir, I/We, the undersigned having carefully gone through and clearly understood the plans, specs, articles of agreement with special conditions for the above mentioned work do hereby tender to execute and complete the whole of the work strictly in accordance with the said plans, specifications etc. at the rates set out in the priced bill of quantities or as given in the special spec. of works attached hereto. I/We agree to complete the whole of the work within the time limit specified by you. I/We am/are sending you herewith an earnest money deposit of Rs. ___________ by cash/cheque which amount is not to bear any interest and I do herby agree that the same can be forfeited by you in the event of you accepting my tender and I fail to execute the contract when called upon to do so. It is understood that the lowest or any tender will not necessarily be accepted and that you or the owner are not bound to assign any reasons for the same. I agree to keep our offer open for 2 months from the date hereof. Yours faithfully, Mr.____(contractors name) ______( company name & add) Acceptance letter for proposed Interior work at ____ (site location) for Mr.____(Owner's Name)

Date:_________

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Schedule of Quantities Schedule of quantities form a part of the contract documents. It indicates the intent of the work, material specifications, finishes, and quality of labour and approximate quantity of each item of the work without any unit or lump sum rates for the same. It forms a uniform platform for tenderers to quote. When rates are incorporated therein, it assumes the form of contract bill, part of contract document. The contract bill creates a base for comparison for allotment of work. Any discrepancy in it will not vitiate the contract, but to be treated as variation subject to compliance of conditions of variation clause. Schedule of Rates A contractor submits a list of unit or lump sum rates to the clients or the Architect for general or a particular piece of work. These rates could comprise of labour + material or only labour. In case of a particular piece or work, these rates are based on drawings or specification given to by the Architect. Such listing of rates for general or a particular piece of work can be termed as schedule of rates. These rates are subject to certain terms and conditions. Payment Certificates 1) These certificates are simply a statement of facts which show the approximate value of the work done or the contract price of the materials delivered on site. It is merely a ministerial work which does not call for a final opinion requiring exercise of judgment and skill. They are issued by the Architect to the contractor. The architect verifies and certifies the quantity and quality of work claimed by the contractor in his running bills and then issues a certificate for release of payment from the client to the contractor. The architect justified to deduct any or the entire amount from the running bill if the work claimed in the bill is not satisfactory or not as per agreed or desired specifications. These are issued during the progress of the works strictly in compliance with conditions of the contract, special period of honouring certificates, stages of payments, value of materials and goods supplied to what extent to be included, maximum limit of retention fund etc. Designer cannot be sued for certifying less amount than due to the contractor. These are binding or conclusive certificates and that their issuing guarantees that the work executed are proper. Payments made under this certificate are provisional and are subject to adjustment or to readjustments at the end of the contract.

2)

3)

4) 5) 6)

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7) 8) 9)

After issue of this certificate, the materials cannot be removed from the site. Issue of this certificate waives the rights of the employer of claiming damages on account of delay from the contractor. Retention money is required to be considered while issuing the interim certificates.

Extension of Time The Architect or Interior Designer can grant necessary extension of time on being applied by the contractor, when work is delayed due to any one or more of the following grounds. The contractor is not liable to take any penalty in case of delay due to the following 1) 2) 3) 4) 5) By unavoidable circumstances like riots or transport strikes etc. Exceptionally inclement weather. Loss or damage due to fire, storm, floods, earthquakes etc. as in insurance clause. By delay on the part of nominated sub-contractor or nominated supplier. By delay on the part of agencies employed by the employer.

Estimation It is a forecast of the cost of the project prior to the commencement of the job. It calls for skill, experience, foresight and good judgment besides one having a good knowledge of cost of materials and labour relating to construction work. The essence of estimating the cost of a work lies in the fact that the actual cost of proposed work after completion should not differ by more than 15% from its approximate cost provided all the factors including cost of labour and materials taken into consideration while framing the approximate estimate remain unaltered.

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Methods of Estimating 1) 2) 3) 4) Detailed or itemwise estimate. Estimate on carpet area basis. Estimate on unit basis. Estimate on cubic content basis.

Methods of Estimation for labor work. 1) 2) 3) 4) Item wise unit rate method. Lump sum cost per piece of work. Day Work Percentage basis

Duties of a designer towards his client. A designer must thoroughly know his moral responsibilities/duties towards his client. 1) 2) 3) To study the requirements of a client in detail. To prepare accurate drawings and explain them properly to the client. To take the approval of the client for the drawings and prepare an estimate for the same based on the approved designs and raw and finishing materials. Act as the guardian of the client's pocket by making sure that the rates quoted by the contractor are fair and reasonable. Visit the site timely during execution and check the quality of work, implementation of his drawings in appropriate manner to achive the desired result. Help the client in selection of raw and finishing materials. Complete the work in the decided time limit and budget.

4) 5)

6) 7)

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Duties towards contractor 1) 2) 3) 4) 5) 6) Issue him the mobilization fund for purchasing material and arranging labour. Keep a count and quality check of the purchased materials. Ensure that all the drawings, finishes, details and specifications are clearly understood by the contactor before commencing the work. Visiting the site timely and attending to contractors queries if any. Accepting running bill from him as the work progresses and issuing payment timely certificates Keeping a check on quality of labour during the execution process and helping him achieve the completion deadline.

Work prospects for a professional Interior designer (1) By getting further education i.e masters degree or any further specialization a designer can upgrade & prepare himself for teaching fulltime or part time in a design school. (2) He can work as a design head with a retail store and offer his services to their customers or the retailer himself. (3) He can practice as a freelancer for individual clients. (4) He can take up design build assignments & set up his own firm. (5) He can work with a professional design firm and grow in their setup itself. (6) He can setup his retail store for own modular & customized kitchens/ furniture/ furnishings/ artifacts or any related products.

Mode of Measurement The meaning of the word 'Mode' is the way or path. Mode of measurements means the way of taking the measurements i.e. volume i.e. L x B x H, Area i.e. L x B or linear dimensions that is running length.

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Unit of measurement It is a unit for that mode of measurement i.e. Sq.MT / SFT = Cu.MT/CFT = RMT/RFT = Area Vol. Running length

Code of Conduct for interior designer. For smooth functioning of a profession, a code of professional conduct is established by its practitioners. It is important that all the practitioners of that profession, know, understand and adhere to it. Similar codes of conduct are implemented for the field of Interior Designing. Codes of conduct for ID are : 1) A designer cannot undertake any type of execution of work or sale of furniture or any other items. This indulgence will not allow him to justify his core profession of design. A designer is remunerated solely by his professional fees payable by his client/employer. A designer must not accept any work which involves giving or accepting of discounts or commission or gifts from the contractor or suppliers / vendors. A designer must not advertise / offer his services by means of circulars, nor may he make paid announcements in the press except that for professional appointments required / change of address / change of telephone / fax etc. The recommended font size to display the company or individuals name is maximum 10 cm in ht. The designer, if employed in a firm, must try to avoid undertaking jobs privately. A designer, if employed in a firm must not steal the job from the office by way of contacting the client or on a request from the client.

2) 3)

4)

5) 6)

Rate Analysis It is a study of financial involvement of mat. labour implements etc. which formulate item rate of a particular, item of work.

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Cost of Mat. Labour transport, contractor's profit are worked out separately for each of the items and then added so as to give an idea of its rate. This process of analysing the rates of various constituents and from there working out the rate for an item of work is known as "Rate Analysis". Essentials of rate analysis. 1) 2) 3) Knowledge of Material and Labour. Output by workmen. Construction techniques used.

Factors affecting Rate analysis 1) 2) 3) 4) Cost. of Mat. and Lab. or equipments of any. Locality. Size of work. Profit of Contractors.

Types of Tenders 1) Item rate tenders Offer to execute the work based on unit rates for each item of work. Quantities for each item of work are mentioned in the BOQ. The contactor is required to fill in the rates for the same. based on specifications and quantities given in the BOQ. He is paid on the actual final measurement of work executed at the rates quoted by him in the tender. Minimum amount of risk for contractor hence quality of work is ensured. Variation of 10.15% is acceptable during the execution span due to change in design, specification etc. 2) Schedule of Rates with % up and down It is also known as basic rates with rise and fall. In this case a BOQ duly priced is given to each of the tenderers and they are aced to quote only the percentages above or below the priced 50 Rates at which they are prepared to execute the work.

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All other facts as given for the Item rate tender will hold good in case as well. This type of tender is suitable for repair works.

3)

Lumpsum Tender In this case a contractor undertakes to carryout the work as shown on the plans and BOQ with supply of material and labour for a fixed lumpsum or a fixed rate per cubic, running or sq.ft./mt. of work.

The payment terms are as per mentioned in the contract. Essentials 1) 2) 3) 4) 5) 6) 7) Quantity and quality should commencement of work. be clearly known prior to the

Construction details should be specified in the drawings. Raw and finishing material should be agreed prior. Site conditions should be known to the contractor commencement. Completion dead should be know. Variation up to 5% is acceptable. Job value is not decided on the basis of measurements except for additions and omissions. prior to

Such tenders are not suitable for 1) 2) Unknown site conditions. Repair work. (4) Lumpsum Plus % Tender Its the same as LS tender except that if the contractor completes the work before specified date, he gets a bonus in terms of % of the cost of project. (5) Construction + % Tender / Cost + fee method

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Expenditure incurred by Contractor + % as profit for his professional services. Fee is fixed at a certain % of cost of work. Suitable for private or even public works Contractor acts like a project mgr.

(6) Const + Fixed fee Tender As name suggests his fee includes 1) His Profit, 2) PMC & Admin., 3) Visits & Travel, 4) Legal Expenses.

(7) Cost + Fixed Fee with Bonus and Penalty Estimated Cost of Project Fee Bonus & Penalty Case (I) Actual Cost Fee (5%) Bonus @ 30% on Case (II) Actual Cost 2,30,000/So 30% of 30,000/- to be deducted from fee Fee (10,000/-) (9,000/-) deducted Contractor receives only Rs. 1,000/Labour Tender Supply of Labour and tools. Percentage / Lumpsum / Item rate. 1,80,000/9,000/20,000/2,00,000/5% (10,000) 30% of the saving or excess amount.

6,000/-

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