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Chapter 11: Execution of Work Civil, Architectural,


Interior, Landscape, etc

11.1 Stages of a Project.


1. Decision: To construct a Building, Carry out an Interior or Landscape a project.
2. Premises: Procurement of Land to build on, Premises to furnish, Site to carry on the
landscape.
3. Consultant: Appointment of an Architect, Interior Designer or a Landscape Consultant.
4. Design Finalization: Finalization of Building or Interior or Landscape Layout and Detailed
Design
5. Estimates and Budget: Specifications of Various items and Overall Estimates including
working drawings and detail drawings.
6. Appointment of Contractor: Appointing some agency to execute the work as per
requirement of client and vision of the Architect.
7. Quality Control: Assistance to contractor and Client to supervise the actual execution of
work, maintain quality against time and help in Billing.

In previous chapters, we have already discussed the first four points. Estimating and Budgeting
will be covered in a separate subject called Quantity Surveying and Estimating.

Appointment of Contractor: There are two basic methods.


1. Direct Assignment.
2. Tender Process.

11.2 Direct Assignment. A construction/Interior/Landscape job can be allotted by the


Owner directly known to him or on the recommendation of the Architect Consultant to a
Contractor or an agency. This appointment may be done on the basis of:
Reference: Suggestions from Friends and Relatives may be used as Reference.
Recommendation: The Architect or Structural Consultant may recommend an Agency to
the owner
Direct Approach from Contractors Side: The contractor may voluntarily approach the
owner with an offer to build e.g. A Contractor already constructing bungalows in a
plotted layout may approach all the adjacent plot owners or an Interior Contractor
carrying out the works for one Office in a Commercial building may approach any new
Owner who happens to buy an office space in the same building.
Advertisement: The owner can advertise in the local newspaper for a contractor.
Direct Approach from Owners Side: The owner may approach or select one of the
contractors doing similar work nearby.
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A Systems of Work in Direct Assignment


a. Job Work Basis: Scope and Nature of work explained and a lump sum price decided.
b. Departmental Basis: The owner organizes the Material and Labor i.e. Petty Contractors
on his own and pays for the same directly.
c. Percentage on Cost Basis: The contractor arranges for material and labor, paid by the
owner on certified bills by contractor and the Contractor charges a fixed percentage on
the total of material and labor.
d. Square Area Basis: Based on the specifications, the Contractor quotes a flat rate on
sq.mt or sq.feet of the built up area.
e. Annual/ Monthly Rate Contract Basis: Where a lump sum amount or rate per unit area
or % of over-all cost is fixed for a period of time.

B Advantages in Direct Assignment


1. This is a good system for minor works and saves a lot of time and hence money that
would have been incurred otherwise in a tendering process.
2. Owner takes full responsibility of work
3. There are less chances of dispute as there is a fixed mode of payment.

C Disadvantages in Direct Assignment


1. There is no comparison in Selection of contractor and hence a doubt as to the quality
and the economy.
2. There is no assurance of Quality, Reliability and timely delivery of works.
3. There are very few instances where legal paper work is done between the contractor
and owner and hence proves a risky proposition to the owner.

11.3 Tender Process.


Tender: A Tender is a Voluntary commercial offer made by a willing person or organization to
provide material and /or services in response to specific requirements expressed by another
person or organization on mutually accepted terms, conditions and stipulations: culminating in
a sealed and signed contract agreement and a mutually satisfactory achievement of the desired
objective within a specified duration of time.

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Contract: A Contract is a legal document that formally confirms in writing with a seal and
signature, an agreement that binds two parties in a firm commitment in accordance with
mutually accepted terms of reference, in respect of the scope, quality, duration and cost of the
construction project.

A TENDER NECESSARILY CULMINATES INTO A CONTRACT AGREEMENT BUT A CONTRACT


DOES NOT NECESSARILY REQUIRE A TENDERING SYSTEM OR PROCESS.

Tender Process: it is a vital process to convert an Architects Design into reality. Most Architects
may find this process a tedious one and not part of their creative journey; however the process
is unavoidable part of an Architects Professional Practice.

The process is an essential requirement for a contract between the Owner and
Contractor for major construction Projects.
The process is a Legally, Morally and Ethically Correct system for awarding construction
contract with Transparency.
The process is a Vital Project Management Tool for Architects in terms of Quality, Time
and Cost.
The process is a Culmination and Cumulative Application of every Architects
Education and Skills.

11.3.1 Essential Parts of a Tender:


1. Name and registered office of the Owner, Architect, Quantity Surveyor and other major
consultants.
2. Full details of work for which the tender is called, i.e.: location of site; and general
description of work and some indication of size, including specific requirements.
3. Letter of Invitation to the Contractor.
4. Pre-Tender Instructions to the Contractor.
5. Draft of Covering Letter for Submission of the Tender.
6. Draft of the Offer Letter from the Contractor.
7. Salient features of the Tender.
8. Special Conditions of Contract
9. Special Conditions of Safety and Security
10. Acceptable Brands/Make of Materials.
11. Particular Specifications.
12. Preamble, Mode of Measurement and Bill of Quantities.
13. The Specific time for Construction.
14. All known information that may affect the risks of the project.

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15. Any supporting information required from tenderers.


16. The person to provide additional information on behalf of the Principal.
17. Sufficient detail to avoid undue design and documentation work prior to the selection of a
tender, unless the Principal offers to pay.
18. The method and time of lodgment and, in the case of public opening of tenders, details as
to the time and place of public opening.
19. What provision is made for rise and fall in prices? Whether allowance has been made to
address significant movements in costs of consumables and materials due to global factors.
20. How liquidated damages and latent conditions are to be applied.
21. Industry standard conditions of tendering, with special conditions only where necessary.
22. Any special conditions or obligations under the contract that are not part of the standard
conditions.
23. Guidance to tenderers on the selection evaluation process.
24. Indicative timelines for the evaluation and acceptance of the tender.
25. Advice as to whether tenderers will be reimbursed for the reasonable cost of preparing
tenders for substantial design and construct projects.
26. Any test results associated with the project.
27. Architectural Drawings and Structural Drawings.

Primary Objective of the Tender Document is to give maximum information and clarity of
understanding about the project to the bidder contractor, before he quotes his rates for the
price of construction. Every condition or demand will have an impact on the price quoted.
Hence every clause that will affect the cost of works must be clearly presented.

Every word, sentence, grammar must be thoroughly checked to ensure that there is no
misunderstanding or ambiguity. Statements must be clear and Language must be simple.

The contents of the Tender Document and the drawings included in the tender become LEGAL
BINDING and commitment both for owner and contractor.

The Techno-Legal contents of the Tender become a part of the contract agreement which is to
be eventually signed by both the Owner and Contractor.

The Architect should ensure that the information in the Tender in the form of Specification,
Items, Quantities, Drawings are adequate and appropriate to interpret his design into Reality.
The Architect is the Arbitrator between the contractor and the Owner and hence must prepare
the Tender in a manner that

a. It protects and safe guards the client from being cheated in any manner w.r.t
cost, quality and time

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b. It allows the contractor adequate opportunity to carry out the work with a fair
and reasonable amount of profit.

11.3.2 Tender Principle Systems:

Tender Principle Systems

Open Tender Invited Tender

Unrestricted Open Bidding 2 Envelope Systems. By Specific Invitation By Pre-Requisite


(Open to all applicants) (Open to Eligible (Open to only Invited (Open to only
Applicants Only) Applicants) Prequalified
Applicants)

1. Un-Restricted Open Tender.


This is a system where offers are invited by public advertisement in newspaper from anybody
who may read it and respond without any restriction whatsoever. No eligibility criteria
prescribed and anybody can apply and submit a quotation for the work.

2. Two Envelope Open Tender.


This is a system where offers are invited by public advertisement in newspaper from anybody
who may read it and respond after he finds himself fitting in the eligibility criteria. The bidders
submit two envelopes, one containing the profile and proof of eligibility (often called as the
Qualitative Bid) and a second envelope containing the quotation and bid for the work (often
called as the Quantitative Bid).

3. Tender by Specific Invitation.


This is a system where a few contractors are shortlisted on the basis of predetermined eligibility
criteria decided by the owner and architect.
Only these are then specially invited to bid.

4. Tender by Pre-Qualification
This is a system where offers are invited by public advertisement in newspaper from anybody
who may read it and respond but only for those who have the necessary documents and
information to establish their credentials and eligibility to bid for the project.
These few apply, the applicants are then scrutinized and pre-qualified on the basis of
information received and only these selected pre-qualified contractors are then invited and

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given the quantitative bid to submit offers for the project. This is also known as the Double
Filter System.

Prequalification Process:
Prequalification is an objective assessment of the capacity of the bidders company to complete
the work required.
Prequalification ensures that only appropriately skilled and experienced entities, with suitable
management systems in place, are permitted to submit tenders for certain categories of
contract. This gives tenderers confidence that they will not be bidding against inexperienced
entities. The Owners can have confidence that tenders will be received from entities previously
vetted as financially and technically sound.
The Owner or Client publishes an advertisement in the Local Newspapers inviting applications
for Pre-qualification. The Public notice in local Newspapers establishes the required
transparency in the process of selection. Any former contractor or form can apply for pre-
qualification in response to the advertisement.
The purpose of shortlisting is to reduce the number of bidders to generally between three and
five. Bidding for a big project, especially a complex one, is a costly undertaking for a bidder.
Evaluating bids is also a time-consuming exercise for the Authority and its advisers. The aim of
the bidding process is to maximize competition, not the number of bidders. Just as the
presence of too few bidders results in poor competition, the presence of too many bidders on
the shortlist may reduce the interest of some in participating and cause good bidders to drop
out.
The public notice for prequalification could provide the following
1. Broad Details of the Project and Date and Time of Response. The wording of the brief
project description contained in the notice should be broad enough for it not to needed
to be subsequently changed (which might then require the process to start all over
again)
2. The Notice calls for only Information of the contractor and not the quotation of prices.
The information called for from the contractor is to establish his financial and technical
credentials to take up and complete the job and could be as follows
Company Profile Provide background information on your company in the following areas:
Organizational structure
Stability of organization
Senior management
General performance
Certified management systems.
Financial Capacity Prove your company's financial viability over both the short and long term.
Company Experience Provide details in the following areas:
Past and current projects
Contract completion
Project management

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Partnering/relationship management
Community/stakeholder engagement
Utilization of management systems
Traffic management
Technical Capacity Demonstrate technical capacity to undertake works in the nominated
prequalification categories i.e. experience in relevant work, evidence of
sufficient staff, appropriate plant and equipment.

All the above details could be asked in the form of a questionnaire or PROFORMA
3. Scrutiny Sheet. This is to be used in the process of evaluation and assessment of
confidential information required.
The Tenders are then issued only to the Pre-Qualified Agencies who are equally
competent of executing the work.
Demolition Tenders.
These are called for in case of demolition of existing buildings.
Demolition is done up-to Ground level or Road Level.
This includes demolition and removal of materials and carting away from the site of
Debris.
Tenderers are to take away all material away from the old building and in turn pay
specific amount to the Owner
Tenderer is required to deposit certain amount with the owner to ensure that he
completes the work in the given time and under the conditions stipulated.
It becomes imperative to take out insurance for accidents, workmens compensation,
third party risks, to the extent of damages to adjoining structures.
The contractor has to make arrangements to cut off existing water supply lines,
drainage lines, electric supply lines etc.

Types of a Tender: B-1Type, B-2Type, C-Tender (Lump Sum Tender)


1. B-1 Tender (Percentage Tender)
In this type of Tender the quotations are invited in the form of a percentage above or below a
pre-declared estimate of cost of the project. Along with the tender are given detailed drawings,
item specifications, item quantities, item rates and amounts. Also are given terms and
conditions of the contract.

2. B-2 Tender (Item Rate Tender)


In this type of Tender quotations are invited in the form of Item Rates per unit in a Schedule of
quantities. Along with is given the detailed Abstract.
3. C- Tender (Lump Sum Cost Tender)

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In this type of Tender the quotations are invited in the form of a lump-sum cost. This cost shall
be worked out by the bidder by calculations based on detailed working drawings, specifications,
terms and conditions of Contract which are provided to the bidders for their own working out
the quantities and estimation.
Comparison between the different types of Tenders
B-1 Percentage Tender B-2 Item Rate Tender Lump Sum Tender

Not Very Balanced. Final cost Balanced method. No undue Absolutely Imbalanced and
on completion is known right profit or advantage to resulting in excessive profit or
at the commencement of owner/employer. No undue disadvantage to either owner
work but whether loss to contractor. or contractor
advantageous to owner or
contractor not known.
Commencement of work Work is commenced only Work cannot be started
Immediately without waiting after Completion of all before all formalities like
for all formalities. formalities and acceptance of finalization of cost,
tender acceptance of Tender
agreement.
All details, elevations, All plans, specifications, All details, plans, sections,
sections, working drawings schedule of items are elevations, specifications of
need to be ready prior to prepared before inviting items are prepared up to the
commencement of work tenders. Sections Elevations last detail before inviting the
other details can be issued tenders
during progress of work.
Quality of materials and good Quality of materials and good Quality of materials and good
workmanship is standard and workmanship can be assured workmanship cannot be
at the cost of owner assured
economy.
Possibility of extra work is Possibility of extra work is less Possibility of extra work is
more more
Final cost at completion is not Final cost at completion is not Final cost at completion is
known in advance. known in advance. known before completion
Scope of contractor selection Scope of contractor selection Scope of contractor selection
is wide is wide is less
Variations in drawing can be Variations can be made as Variations require
made but if not controlled can final bill is based on actual considerable thinking as
increase cost of work measurement of work done contractor could ask for
exorbitant rates for new work
No time limit for completion Strictly adhered to time limits Strictly adhered to time limits

Less work load for architect Work load for consultants Work load for consultants
and Engineer. more before and during reduced as measurements do
execution of work not need to be taken.

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Pre- Tender Instructions to the Contractor must include the following


1. Identical Format and Procedure
2. Tender Document and Procedure
3. Project Site Visit is a Must
4. Submitted Tender must be without any Precondition.
5. No Acceptance of Incomplete and Improper Tender.
6. Tender has to be attested and sealed on each page
7. How and Where to Submit the Tender
8. Time Period for Decision and for Keeping the Tender Alive
9. Disclaimer to establish the Owners Right to Accept or Reject.

General Conditions of Contract must include information on the following


1. Type of Contract
2. Scope Intent and Essence of Contract
3. Access to the Project Site and Security.
4. Contract Document.
5. Contract Drawings
6. Architects Status and Instructions.
7. Clerk of Works Powers and Duties (as explained below)
8. Site and Setting Out Trees and Neighborhood
9. Treasures and Antiquities
10. Sample and Shop Drawings.
11. Licenses, Permits, Taxes and Levies.

Clerk of Works
A Clerk of works is a manager on a construction site who checks to see that the work is carried
out properly and that health and safety rules are being followed. He is appointed by the
Architect or Client on the Construction Site. He represents the Interests of the Client.
Depending on the Contract his salary is paid by the Client, Architect or Contractor.
As a clerk of works, or site inspector, he would oversee the quality and safety of work on a
construction site, making sure that building plans and specifications are being followed
correctly. He should have a good ability to pay attention to detail. He should have good
problem solving skills. He should have good knowledge of the construction industry and of
Building Regulations. He should have good written and oral communication skills. He should
also have an ability to meet targets.
His duties would include.
Performing regular inspections of the work on site and comparing completed work with
drawings and specifications

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Measuring and sampling building materials to check their quality


Recording results either on paper or a hand-held Personal Digital Assistant.
Identifying defects and suggesting ways to correct them
Liasoning with other construction staff, such as contractors, engineers and surveyors
Monitoring and reporting progress to Construction Managers, Architects and Clients
Supervising the workforce on the building site during a project.

Special Conditions of Contract: A few of them are as listed below.


1. Earnest Money Deposit. This is an initial money deposit enclosed with the tender and could
be in the form of a Cheque, D.D. payable at the place of the Owner, or even a Bank
Guarantee or even Cash. This is generally fixed at 1% of the estimated cost of works. It
shows the Contractors interest in getting and executing the job. The amount remains with
the Owner till the Contractor is selected and may be extended till the job is awarded. E.M.D
of the selected contractor is converted to a Security Deposit. E.M.D of Contractors whose
offers are rejected is given back. E.M.D does not bear interest and no one can claim interest
on same.
E.M.D is forfeited by
A Contractor whose Tender is selected but is unwilling or refuses to undertake the work
Delays payment of Security Deposit
A Contractor whose Tender is selected intentionally delays the commencement of work
The main Intention of E.M.D is to see that fair competition takes place and only Contractors
interested in executing the job bid for the Project.

2. Security Deposit Amount. This is generally 5% of the estimated amount of the project and
now contract cost. Selected contractor is asked to pay the S.D.A. The E.M.D already paid by
the Contractor will be adjusted towards the S.D.A. This is paid in Cash or even by Fixed
Deposit Receipts. This may be paid in Installments as follows, First Installment to be paid
before entering into the Contract and further installments to be deducted from every
consecutive R.A bill.
The Purpose of S.D.A is as follows
Contractor fulfills all terms and conditions of Contract
Carries out work to entire Satisfaction
Maintains expected progress of work
If the Contractor fails to comply with all conditions then S.D.A is forfeited. Contractor cannot
demand any interest on the S.D.A. This is returned to the Contractor after Deflects Liability
Period if the Contractor attends and cures Defects brought to his notice and within the
stipulated time allotted for attending the repairs. If Provision for Deduction of Retention Money
is made in the Tender the Security Deposit is returned along with the Final Bill.
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3. Retention Amount. Contractor shall deposit a fixed amount with owner as guarantee for
faith-full performance of terms of Contract. This amount can be paid in installment and or
be in the form of a deduction from every running bill since it is not possible to pay this
amount in one installment. This amount does not bear any interest and is kept with the
owner. This is generally 5% of the project cost. Deduction of Retention Amount from
running Bill is continued till the total amount is collected.
Retention Amount so collected is refunded to the contractor after virtual completion to the
extent of 50%. The Architect/P.M.C has to ensure that the contractor has fulfilled all terms and
conditions of contract, used proper material and delivered good workmanship when returning
this 50%. The balance amount is to be paid after Defects Liability Period. In case the contractor
is bankrupt, Trustees of the bankruptcy cannot lay any claim to the Retention Amount.

4. Mobilization Fund and Recovery. Construction of Large Projects requires some money or
Finance for preparatory works such as recruitment of labor, travel of staff, erection of
temporary structures, purchase of centering materials, insurance premiums, plant and
machinery etc. For these the contractor may be paid an advance which is called
Mobilization Fund. Maximum amount of this fund is 10 % of contract cost. It is paid in one
single installment or 2 or 3 installments within one month of award of work or after signing
of the contract. If paid in stages can be paid as follows
a. Stage 1 50% of M.F within one month of award of work.
b. Stage 2 Part paid on preparation of Works
c. Stage 3 Part paid on bringing plants and machinery.
This advance is recovered from every running bill as a certain percentage of the bill. Full
amount should be recovered before completion of 80 % of Work. It is advisable to advance this
amount free of interest.

5. Defects Liability Period. A defects liability period is a set period of time after a construction
project has been completed during which a contractor has the right to return to the site to
remedy defects. A typical defects liability period lasts for 12 months.
Any defect in the work must be brought to the notice of the Contractor either by the Owner or
Clerk of Works through the Architect who then issues a letter and also adds a stipulated time
within which this repair work must be carried out by the contractor after which it could be
carried out by an external agency.
Defects liability periods - also known as rectification provisions - can be of benefit to both
parties.
For the contractor, it is likely to be more economical and efficient for him to carry out remedial
works itself than to pay the costs of another contractor hired by the employer. From the
employer's perspective, he will not need to hire an alternative contractor to carry out the work,

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or to carry out the work itself and reclaim the cost. The employer will also not run the risk that
any warranties provided by the original contract may be affected by a third party carrying out
works on the site.
If there is a contractual right for the contractor to rectify defects, and the employer either does
not notify the contractor that rectification is needed or refuses access to the site, then the
employer may be in breach of contract. Case law illustrates, however, that the contractor will
not normally be 'let off the hook' if this happens. The employer will still have a claim for the
cost of rectifying the defects, but the claim is likely to be limited to the amount it would have
cost the original contractor to carry out the works. He will not be able to claim for remedial
works or working methods found not to be strictly necessary.
Employers should therefore give careful consideration to the provisions in the contract before
hiring a new contractor to carry out remedial works. This is especially important if the contract
stipulates that the employer must notify the original contractor that remedial works are needed
before it can make a claim for recovery of any costs of rectification.

6. Time Period Duration of Contract

7. Date of Commencement of Work

8. Date of Completion of Work


a. Sate of Virtual Completion
b. Official Certificate of Occupancy given by the Authority

9. Virtual Completion
a. Work is good enough for the owner to occupy the premises but not complete in all
respects of the contract. The Architect issues a certificate of Virtual Completion. The
Defects liability period begins from the time this certificate is issued
b. Certificate of Completion is issued by the Architect after the work is fully complete
as per Contract and to the satisfaction of Architect and Owner

10. Project Monitoring


The Clerk of works is appointed to monitor the Project, Nowadays P.M.C consultants are
appointed for monitoring the Project
a. Records. 1. A M.B i.e. Measurement Book is maintained. Measurement of
completed work is recorded on a daily basis. Similarly a 2.Material Book is
maintained to record the type, quality, date, quantity, person to check the material,
of Material received on site. 3. Labor Register to record the number of workers
working on site everyday

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b. Reports. A Report of the Program Schedule within 7 days from the signing of
contract about the construction schedule should be submitted. A Bar Chart, No of
Laborers, Workmen on site and their Qualification etc. should be part of this report.
In addition A Report of Schedule being maintained, Monthly Cash Flow statement
should be submitted. Weekly or Monthly Progress of work should be submitted.

11. Penalty Clause. Or Liquidated Damages. This is a clause which spells out what penalty the
contractor has to pay for delay in construction and not handing over the completed site on
time as per contract.

12. Bonus Clause. This clause is included to give the contractor an impetus to give good quality
of work against speed. If the contractor hands over the site before the time of completion
with good quality of work he is given a bonus whose terms are first discussed with the
Owner before including in the Tender.

13. Running Account Bill. This clause specifies the time and up to what amount can the
contractor make a Running Account Bill which is an accounting term for a periodic account
statement made by the contractor while the work is in progress.

14. Value and Period of Final Bill.

15. Material Advance Recovery. A clause that states the amount to be paid in advance for
Material and how this money is to be recovered by deductions in the subsequent Running
Account Bills

16. Ad Hoc Payments and Adjustments. This clause deals with advance payment made on a
discretionary basis and their recovery.

17. Prime Costs and Provisional Sums. Basic idea of prime cost is to anticipate savings in
material and allow the contractor to quote at a predetermined cost. Provisional Sum in
essence is an amount reserved or stated in advance to be taken as the cost of certain
materials which could vary in cost later. The difference is either paid to the contractor or
recovered from the contractor.

18. Basic Rates of Materials. The rate at which basic materials are bought by the contractor
from his suppliers in case of great variation during the period of contract

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19. Price Variation Clause. Sometimes during the period of Contract there is great variation in
the prices of certain items and if it can be proved that the variation is greater than a certain
percentage then prices may be revised.

20. Quantity Variation Clause. Sometimes some items could attract lower rates because of
their huge quantities and changing them could prove a loss to the Contractor. This clause
deals with this aspect and the provision made in case of variation beyond a certain value

21. Quality Variation Clause. This clause deals with the quality of construction which will be
valued and be under the discretion of the Architect. He may decide to get some items
demolished for their poor quality and redone, some poor quality work to be rectified, and
sometimes deduct from the rates for the poor quality of work done.

22. Validity of Quoted Rates. This clause deals with the time limit up to which the quoted rates
shall remain valid.

23. Escalation Clause. Escalation of rates shall be available to the contractor on an annual basis
based on consumer index declared by the government.

24. Extra Items Work. This clause deals with those items of work which are neither a part of the
contract, nor been anticipated so rates were not quoted but now need to be executed. The
clause will deal with how to arrive at valid rates for these items.

25. Provision of Site Office and other Facilities at site.

26. Water and Power Consumption on Site. This clause deals with the contractor making an
application for a metered water source at a point indicated in the site plan. He shall pay all
the fees in connection with such services and shall pay the supply authority for the same.

27. Steel and Cement Procurement Charges.

28. Conditions for Storage of Materials. The contractor shall provide erect and maintain proper
sheds for the storage of materials at site.

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29. Testing of Materials and of Executed Work. All materials and workmanship shall be subject
to testing and examination by the Architect. The Architect shall have the right to reject
defective material and ask for defective workmanship to be corrected. The contractor shall
promptly furnish without additional charges all reasonable facilities, labor and material
necessary for safe and convenient inspection and testing that may be required by the
Architect.

30. Subletting of Contract. The clause deals with the fact that the contractor shall not sublet
any work or part of the work without written consent of the Architect. If so allowed the
Sub-Contractor shall carry out the sub contract works in every aspect to the entire and
reasonable satisfaction of the Architect.

31. Taxation. Whether taxes like sales tax, octroi, service tax are to be included in the rates or
not.

32. Insurance and Risk Coverage for Laborers and Materials. The contractor shall be liable for
and shall indemnify the owner against any liability, loss, claim, or proceedings whatsoever
arising under any statue or common law in respect to Personal Injury or even Death. The
Insurance shall be paid by the Contractor and such policies and receipts shall be in the safe
custody of the Architect.

33. E.S.I., Provident Fund etc.

34. Professional Liability Insurance.

35. Arbitration. Arbitration is a technique for resolution of disputes outside of courts where the
parties to the dispute refer it to one or more persons whose decisions they may agree to or
be bound by. Accordingly one can have a sole Arbitrator or a Tribunal.

36. Delays in Construction Schedules.

37. Termination Clause and Conditions. In case of poor quality being delivered or inordinate
Delays occurring (not in keeping with the schedule submitted) the contract may be
terminated under certain conditions.

38. Handing Over and Winding Up.

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Patent and Latent Defects


Introduction: Defects in a building are those aspects of any work that are not in accordance
with the contract, with respect to either the specifications or the drawings or general
workmanship. These Defects are further classified as Patent or Latent

1. Patent Defects are those that can be detected by reasonable inspection, e.g. the line and
level of flooring or walls or plumbing works.
2. Latent Defects are those which cannot be discovered by reasonable inspection. for example
bad concrete used in foundation which may not become apparent until several years after
completion when settlement causes cracking in the building.
The moment a Latent Defect becomes apparent it becomes a Patent Defect.
Patent Defects: When a work is being carried out and on inspection some defect is noticed
then it should be brought to the contractors notice in a written communication, and he will
then rectify it within a reasonable time. Such Patent Defects should in any case be rectified
before the certificate of Practical Completion is issued. Issuing of such a certificate either on
insistence of the owner who may want to occupy the premises or on insistence of the
contractor who may be in need of final bill payment could prove a problem to the Contract
Administrator (The Architect or Project Manager) especially in cases of calculation of Liquidated
Damages. On Practical Completion Certificate being issued the owner can occupy the building
and that would be the initialization of the Defects Liability Period.
The client during the Defects Liability Period may bring to the notice of the Contract
Administrator any defects that arise who may then decide whether they are a breach of
contract or just maintenance issues. In case they are defects he may issue a notice to the
contractor who then has to address these issues within a reasonable time and make good the
defects. Since it is not the clients responsibility to detect defects (he not being a technical
person) every time a defect is detected by him, he should point out that this is not a
comprehensive list of defects.
At the end of Defects Liability Period the Contract Administrator prepares a schedule of all
defects which the contractor has to rectify within reasonable time limit before he is issued a
Certificate of Making Good Defects. This will result in the release of the remainder of the
Retention Amount and issue of Final Completion Certificate
If some Defects are noticed after the issue of Certificate of Making Good Defects but before
the Final Completion Certificate the contractor may be given opportunity to rectify the same
within reasonable time. If he does not do so it may be considered Breach of Contract. These
Defects may then be rectified by employing some other personnel and the cost will have to be
borne by the contractor. These costs may be deducted from the Retention Amount and a Final
Completion Certificate may then be issued.

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Latent Defects: It is the intrinsic nature of construction projects that many a times, faults or
Defects in Workmanship or Materials may not become apparent or readily detectable until
many years after completion of project and long after the end of the Defects Liability Period.
Such Defects are called Latent Defects.
Examples of Latent Defects are
1. Wrongly placed reinforcement allowing movement damage to the structure.
2. Under strength concrete used leading to cracks in the structure.
3. Defective Basement Tanking allowing water penetration.
4. Bad Water used in concreting leading to bad concrete and finally failure of Structure.
It is also a feature of construction projects that the life cycle of the building is many years and
the building during its life time has many owners who have had no involvement in the initial
construction but are liable to maintain the building.
After the Defects Liability Period is over the Owner cannot hold the Contractor responsible for
the defects that arise (as in the case of Latent Defects) and hence has to seek redress in an
action for Damages or Breach of Contract or for negligence especially under the Defective
Premises Act 1972 for Dwellings (Housing)
However Breach of Contract has a time bar of 6 years and for 12 years for a contract under seal.
Hence it is important to the owner that the contract be made under seal. Commercial fixes for
Latent Defects and for Successive Owners include Collateral Warranties, Guarantees, Building
Warranty Schemes and Latent Defects Insurance.

Illustrations:
1. In a tender for the interior works of an office, the specifications for the sofa frame work
mentioned teak wood. However the sofas were assembled at the workshop of the
contractor. The clerk of works did not supervise the frame work at the workshop. Two days
before handing over the site, the finished sofa sets were brought over and placed in
position. Nobody ever ascertained the quality of the wood used. Much after the defects
liability period was over the frame work of the sofa sets started yielding. Upon inspection it
was revealed that the wood used was of a similar density but not of the quality mentioned
in the specifications. A suit of Malpractice was filed against the contractor. Even the clerk of
works was mentioned as a party in this case.
2. In carrying various repair works for their building in a society, one of the items was
waterproofing of the terrace using chemicals for which the defects liability period was 12
months and the retention amount was 10 %. If there was a defect it would have been a
Latent Defect as it would manifest itself only after the rains. The works were carried out in
the month of October and the defects were seen only after the first few rains in the month

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of July, however well within the Defects Liability period. The contractor was asked to rectify
the water proofing as the leakages were noticed in the terrace slabs of two flats. The water
proofing could not be carried out in the rainy season and was carried out dutifully by the
contractor in a sunny spell of the rainy season. The rains after that in the same season did
not show any leakages in any of the older flats or in any new ones. Hence the retention
amount was released in the month of October after completion of one year which was the
defects liability period.

A few other terms to be discussed in regard to Tenders are as follows


I. A Contract Agreement: This is a written contract agreement duly signed by The
Contractor and Owner and may be witnessed by the architect stating the following
1. General Conditions of Contract
2. Special Conditions of Contract
3. Schedule of Works to be carried out
4. Drawings.
5. General Specifications of Works and Materials
6. Specifications and Abstract
The Following should also be contained as either part of General or Special Conditions.
 Subject of the Contract
 Basis of Agreement
 Scope of Performance / Extra Services
 Preliminary Works / Obligation of the Principal to participate
 Time Schedule
 Fee
 Terms of Payment
 Delay / Interruption / Obstruction of Execution of the Order
 Obligation of Secrecy
 Protection of Interest and Consultation of the Principal
 Power of Attorney
 Deposit and Surrender of Documents
 Copy Right
 Insurance
 Liability / Warranty

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 Revocation of Contract
 Set-off / Right of Retention
 Mediation / Legal Venue / Arbitration Agreement
 Final Provisions

II. Extension of time EOT in Construction contracts.


Construction contracts generally allow the construction period to be extended where there is a
delay that is not the contractor's fault. This is described as an extension of time (EOT).
When it becomes reasonably apparent that there is a delay, or that there is likely to be a delay
that could merit an extension of time, the contractor gives written notice to the contract
administrator or Architect or P.M.C identifying the relevant event that has caused the delay. If
the contract administrator accepts that the delay was caused by a relevant event, then they
may grant an extension of time and the completion date is adjusted.
Relevant events may include:
1. Variations.
2. Exceptionally adverse weather.
3. Civil commotion or terrorism.
4. Failure to provide information.
5. Delay on the part of a nominated sub-contractor.
6. Statutory undertakers work.
7. A delay in giving the contractor possession of the site.
8. Force majeure (such as an epidemic or an 'act of God').
9. Loss from a specified peril such as flood.
10. The supply of materials and goods by the client.
11. Strikes.
12. Changes in statutory requirements.
13. Delays in receiving permissions that the contractor has taken reasonable steps to avoid.
The contractor is required to prevent or mitigate the delay and any resulting loss, even where
the fault is not their own.
Assessing claims for an extension of time can be complicated and controversial. There may be
multiple or concurrent delays, some of which are the contractor's fault and some not. There are
many occasions where contractors contribute to delay themselves by their performance during
design periods, when producing drawings, mock ups and samples or in inter-facing with sub-
contractors.
Crucial in assessing applications for extension of time is the quality of the information provided
and records available.

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Claims should be judged against the actual progress of the works, not the programme, and
must demonstrate the link between the breach (cause) and the delay.
The contract administrator may review extensions of time after practical completion and
further adjust the completion date.
Mechanisms allowing extensions of time are not simply for the contractor's benefit. If there
was no such mechanism and a delay occurred which was not the contractors fault, and then
the contractor would no longer be required to complete the works by the completion date and
would only then have to complete the works in a 'reasonable' time. The client would lose any
right to liquidated damages.
Claims for extension of time can run alongside claims for loss and expense (relevant matters)
however, one need not necessarily lead to the other.

III. Scrutiny of Tenders: Should include the following


1. In a Qualitative Bid whether all documents are authentic, properly endorsed, References
should to be contacted and authenticated.
2. The cheque for E. M.D is properly drawn and words and figures match.
3. There is no precondition by the contractor
4. The quantitative bid must be scrutinized for the following
a. Rates quoted are same in words and figures
b. The arithmetic of rate x quantity is right
c. The arithmetic of totaling page wise and absolute total wise is right
d. No items that are quoted are too low or too high
e. No item is left unquoted for or Amount not worked out.
5. A comparative Statement should be made wherein a statement of all works with quoted
and total amounts of every contractor is put on one sheet marking least values in each item
and least totals of all items are clearly indicated.
6. In a percentage above or below Tender all arithmetic must be thoroughly checked
7. A Recommendation must be made based on Lowest Bid against Quality.
8. Scrutiny of Tenders must be a transparent affair in the sense the Tenders must be opened
on the date mentioned in the Tender Notice, Rates declared in open and so entered.

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IV. Pre Bid Conference: Prior to submitting filled in Tenders with quoted rates many
contractors would have queries which need to be addressed. These queries could be
answered some by the Architect, Some by the P.M.C, Some by the Owner. Handling these
queries could be a monumental job and hence Pre Bid Conference is held, the date of which
is probably mentioned either in the Tender Notice or Tender Form
A Pre Bid Conference would have the Contractors on one side whose queries have to be addressed
and answered by the Owners, Architects, and or P.M.C on the other side.
The queries could be with regard to
1. Material Specifications
2. Drawing Clarifications
3. Quantities Clarifications
4. Technical Specifications for Items
5. Special Construction Techniques
6. Payment Schedules
7. Taxation Mentioned
8. Requests about certain clauses which could be altered for the benefit of all
The Minutes of such a conference have to be recorded with respect to the following
a. Date, Time, Place of Meeting
b. Personal Attending From Owners Side
c. Contractors Attending the Meeting
d. Queries Raised and Answers Recorded
e. If a query is to be addressed later on , the date, time, and medium through which the answer or
clarification will reach the bidders
f. If any change is made in any General Condition or Special Condition of Contract it shall be
Recorded and amended clause shall be included in the Tender Bid

Chapter 11 Execution of Civil cum Architectural Work Compiled By Ar. Arthur Cutinho