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ASSIGNMENT

PGPM – 14
CONTRACTS MANAGEMENT

V.RAMMOHAN.
(Reg.No.211-07-31-9614-2131)

National Institute of Construction Management &


Research
CONTENTS

1. NAME OF PROJECT Page - 1

2. SCOPE OF WORK Page - 1

3. IMPORTANT DETAILS OF CONTRACT, COST, Page - 1

TIME , TYPE, ETC.

4. IMPORTANT POINTS FROM CONTRACTOR’S POINT Page - 2

OF VIEW TO BE MONITORED/ RESOLVED

5. ORGANISATIONAL CHART WITH FUNCTIONS Page - 3

6. METHOD FOLLOWED FOR ADMINISTER AND MONITOR Page - 6

7. RECOMMENDATIONS/ CONCLUSION Page - 7

8. BIBLIOGRAPHY/ READINGS Page - 8


I. NAME OF PROJECT:

Augmentation of Chlorination facility at Nuclear Fuel complex, Hyderabad.

II. SCOPE OF WORK:

The project consists of construction of an industrial building with R.C. portal structure

admeasuring 50 M x 18.75 M x 21.25/ 15.5 M. The building should have asbestos-free, fiber

reinforced cement sheet roofing with supporting pre-cast R.C. purlins.

III. IMPORTANT DETAILS OF CONTRACT, COST, TIME, TYPE, ETC.:

The Contract is of item-rate based and was awarded after processing through

competitive bidding in the Public Tender under CPWD works procedure. The estimated cost of the

project was Rs.4.08 Crores and the completed cost of the project was Rs.4.75 Crores. The stipulated

duration of the project was 12 months but the final completion period of the project was 24 months.

In this Contract, payment for work done is made on the basis of the quantities of work

actually executed and measured, materials supplied and used by the contractor on the project, each

such quantity being multiplied by the Contractor’s corresponding unit rate given in his tender for that

item. In this type of contract, reasonable variations in the tender quantities of the work do not make

any substantial difference to the Contractor as he gets payment for the actual work at rates specified

in the tender.

For Contractor to submit this item-rate tender, he was provided with general

specifications, designs and drawings together with estimates of quantities so has to enable him to

assess the magnitude, character and difficulty of the work and the probable cost at which he can

execute it. The Contractor would be entitled to claim an adjustment in his compensation if the actual

work proves to be considerably different in specifications, quality and quantity from the data

presented to him at the time of invitation to tender. The main satisfaction is that he gets unit rates for

the quantities actually executed.


The only uncertainty to the employer in such contracts is that he will not be in a

position to know the actual cost of the job till its completion. But he has an advantage of an earlier

start of the work pending, complete detailing of entire work, along with the progress of construction.

At the same time both the Employer and the Contractor will have to keep the detailed accounts of

materials, equipment and work for purpose of making interim payments, and for Employer to watch

the progress of expenditure. Even in item-rate tenders, all items are not priced such as those for site

clearance, dewatering, shoring, grading and clearing of site after completion of foundations, etc.

IV. IMPORTANT POINTS FROM CONTRACTOR’S POINT OF VIEW TO BE


MONITORED / RESOLVED:

1. The building is situated amidst the intensive working-plant area with restricted physical and

administrative accessibility.

2. The exposure conditions are severe because of the chlorine fumes released by the adjacent

facilities and thus precautions were to be exercised for protecting the health of construction

labour under the guidelines of OHSAS 18001 - 2007.

3. The height of the building is 21.25M. at ridge level and 15.5M. at eve’s level with an

intermediate mezzanine at 5.6M. Lvl. A close monitoring of the manpower was required as

per safety precautions stipulated under OHSAS 18001 – 2007.

4. The building is spanned over a large width of 18.75M. without any intermediate supports.

5. M-35 grade of concrete with due anti-corrosive painting for the reinforcement and concrete

surfaces was implemented for the structure for corrosion resistance and corrosion monitoring

sensors were embedded at required points.

6. A 10T. Capacity electrically operated crane was to be installed at eve’s level for the major

length of the building with implementation of adequate safety guideline during construction

and for post-construction for operational and maintenance.

7. UPVC framed windows and FRP louvers were to be installed for openings to have the

protection from Chlorine fumes.


V. ORGANISATIONAL CHART WITH FUNCTIONS:

Organisation Chart from the Employer (Department)

Chief Executive

Head of Civil
Engineering
Division

Project Engineer

Site Engineer

Supervisor Supervisor

Chief Executive:

The Chief Executive gives the directive and is the final authority for approvals for the

Project for all the issues related to technical and financial matters. He also has the power to sanction

the financial approval for the resolved discrepancies, etc. which is amounting to the excess cost of

the project than the estimated cost.

Head of Civil Engineering Division:

The Head of Civil Engineering Division directs the Project Engineer to initiate the

Project. The Head (CED) releases the approval letters to the Contractor and Project Engineer to

commence the work. He is the final authority to approve and sign on the measurements for final

bills, etc. subsequent to the verification of the Project Engineer. He has the power to resolve any

interim discrepancies during the progress of the work.

Project Engineer:

Project Engineer is the main coordinator for the project between the Employer and the

Contractor. He is the person who does the planning of Schedule of Work Progress and monitors the

periodical progress of the work. He is involved in all the technical/ review meetings with the
Contractor during the execution of the Project. Contractor should address any discrepancy arises

during the execution of the Project to the Project Engineer only with due coordination of the Site

Engineer from the Department.

Site Engineer:

Site Engineer is the person deputed on the site for close monitoring of the progress of

the project. He communicates all the technical information to the representatives of the Contractor

working directly on site. He receives instructions from the Project Engineer and executes the project

under his guidance with the help of supervisors assisting him. He is responsible for timely recording

of the measurements of the works and calculating the quantities of items for running bills and final

bills. He coordinates with all concerned Divisions of the Department like Safety, Utilities, etc. for

obtaining the permits and the smooth coordination of the Site Execution of the Project. He is the

person responsible for the follow up with Contractor for daily progress of the work.

Supervisor:

Supervisor is the person monitors every activity of the site very closely and helps Site

Engineer in monitoring the Quality of Construction. He helps the Site Engineer in checking the

technical aspects of the Construction, taking the measurements of the items after the completion of

the work, etc. He has to keep the first hand information of all the activities that are taking place in the

site and keep a close watch on the Construction labour employed by the Contractor for the

implementation of the Safety Guide Lines, Quality Norms, etc.


Organisation Chart of the Contractor

Chairman

Project
Engineer

Site Site Safety


Engineer Engineer Engineer

Supervisor Supervisor Supervisor Supervisor

Chairman:

The Chairman of the Company is the Proprietor and reserves all the final rights of the

activities of the Company. He is the decision making authority in participation for the tenders and

quoting the rates for the concerned works. He does make the policy decision in a broader perspective

for the activities and the growth of the Company.

Project Engineer:

Project Engineer is the Key Coordinator between the Client and the Management of

the Company. He coordinates regularly with the Project Engineer from the Department (Employer /

Client) for all the activities pertaining to the progress of the Project. He is the person who

communicates all the matters to the client on behalf of the Contractor through their Project Engineer.

He is the sole responsible person for the progress and quality of construction of the Project. He has to

make periodical schedules and plan for the resources like material and man-power.
Site Engineer:

Site Engineer is the person deputed at Site for having a close monitoring of overall

activities of the Project and take all the precautionary measures for avoiding delay or hindrance to

the work. He does monitor the progress of the Project to proceed as per the schedule with committed

Quality.

Safety Engineer:

Safety Engineer is responsible for the safe progress of the construction as per the

guidelines of OHSAS 18001. He has to monitor day to day activities to go in compliance with safety

norms. He has to educate the Construction labour and all others concerned in this aspect and should

exercise the precautionary measures to avoid the accidents. He should monitor the usage of

“Personal Protective Equipment” by the construction personnel and should make the first-aid kit

available at site all the time. He should also make the arrangements for the exit in case of the

emergency.

Supervisors:

Supervisor receives the instructions from the Site Engineer and implements the same

in the site execution through the construction labour. He controls the construction labour and checks

the progress of the work directly and makes note of the daily progress and deviations and brings to

the notice of Site Engineer. He helps the Site Engineer in recording the measurements for the

preparation of the bills of quantities. He works as a communicator between the Site Engineer and the

labour.

VI. METHOD FOLLOWED FOR ADMINISTER AND MONITOR:

Contractor carried out the work as per the drawings, bills of quantities and

specifications in consideration of a payment to be made: entirely on measurements taken as the work

proceeds, and at the unit prices tendered by the contractor in the bill of quantities.

The work was monitored by the Department through periodical Bar-Charts and

review meetings for progress, stock control, man-power deployment, etc.


Bills of quantities were prepared, giving, as accurately as possible, the quantities of

each item of work to be executed and the contractor enters the unit rate against each item of work.

The basis of agreement is thus the unit rate of each item, certain reasonable variations in the

quantities being accepted by both parties.

The Project Engineer of the Contractor was preparing the bills periodically and

submitting the same to the Project Engineer of the Department. The Site Engineer (Department)

either accompanied the Site Engineer (Contractor) while the measurements were being taken or

checked the measurements and quantities afterwards in consultation with the Project Engineer

(Department). If no discrepancy found, the bills were recommended by the Project Engineer (Dept.)

for the payment. The amount recommended by the Project Engineer (Dept.) was the cost of the work

less the retention money and the cost of materials supplied to the contractor from the department if

any. If any item which was not included in the bill of quantities, occurs during the execution, it was

usually constructed by a combination of other items already in the bill, otherwise it was paid for as

an “Extra Item” at a specially analyzed rate.

VII. RECOMMENDATIONS/ CONCLUSION:

1. The allotted time for the project is inadequate due to its location and working environment

surrounding the site. This has resulted in taking the subsequent approvals of periodical

extensions of time. This has caused some inconvenience at times during the progress of the

work. This embarrassment could be avoided if the time period could be assessed reasonably.

2. There was a considerable delay in handing over the site to contractor due to the delay in

obtaining the Safety-Clearance from the Safety Engineering Division of the Department. This

could have been planned well in advance and avoided the delay.

3. The scope of the project was enhanced during the execution amounting to extra expenditure

and time-duration of the project which could have been foreseen much in advance by the

users.

4. Specifications of certain items were changed, for example the Asbestos roofing sheets, PVC

windows were substituted by the alternative materials during the progress of the work which
could not be envisaged during the preparation of the Tender Documents. This resulted in

working out “Extra Items” and extra duration of time for the project.

VIII. BIBLIOGRAPHY/ READINGS:

 Construction Contracts and Contracting -- compiled by SODE, NICMAR.

 Contract Management in Civil Works Projects – by V.A.Prakash , NICMAR Publication.

 Reference articles from Internet.

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