For your information,

 On 26th august, Mr. Madhav informed us that, house opening ceremony date is fixed on 14 th
November.
 On 16th September there was labour problem and we had to change mason’s gang.
 From 17th September till 22nd October i.e. in 5 weeks we deployed multiple/additional
mason’s gang without worrying about our economical consequences and just to keep our
word. We completed all the balance masonry work (masonry, plastering and related works).
 During this period, we had paid Rs. 1,86,750.00 to mason’s teams. This works out to be
Rs.33.00/Sq.ft. Our budget for mason’s work was Rs. 95/Sq.ft. and now we have spent Rs.
157.00/Sq.ft. (This includes Rs.124/- per Sq.ft. paid to Moulali + Rs.33/- per Sq.ft. paid during
said 5 weeks.). We have never complained.
 In spite of numerous problems (between 16 th September to 22nd October) we took the work
in hand as challenge at personal level without bothering about our monetary losses and
completed the balance work.
 We don’t expect any appreciation but wish to convey that we would have easily given up the
idea of completion of work as the owner had fixed the date for house opening ceremony
and could have completed the work as per our own schedule to make it financially viable for
us.
 Various extra works were executed at site on your insistence have not been quantified and
no claim of additional bill has been settled so far.
 We have worked in good faith in light of our harmonious relations in the past. We have
never complained nor narrated losses incurred by us. We specifically wish to put on records
that the responsibility of arrangement of curing was of owner(s). However, we noticed at
initial period that the owner was not particular about making such arrangement. As
Engineers, we know the importance of curing, so we voluntarily arranged for curing till
completion of RCC frame, masonry work for all three floors and inside plaster work of
ground and first floor. It is to specifically inform that curing arrangement for external
plastering were very poor and damages surfacing in future due to improper curing will be
attributable to owner only.
 As regards to certain errors in plumbing work, we accept that there were human errors. We
have corrected errors in consultation with you. It is usual experience that certain errors
come to light when we start to use the building and it is generally opined that such errors
can be repaired.

Regarding dispute redressal

 We can resort to arbitration by either some 2+1 arbitration team or a person who is well
wisher to both the parties.
 Cost of arbitration has to be borne by both the parties equally. So also, both the parties have
to undertake to abide by arbitrator’s decision.
 Before the arbitration to be invoked, the arbitrator has considered following points;
1. We are qualified Engineers in civil works and have never had any bad intention during
the entire execution period.
2. An engineer was exclusively deployed on site to supervise the work.
 3. All alterations/changes were made as directed by owners (Betageri family). Betageri
family is particularly complaining about the plumbing work, which Is partially true.
4. Statement was made by the owners in front of Mr. Irrayya (Electrician, we had
employed) that “there was lack of supervision on our part”, which is not acceptable and
hurt us deeply.

Settlement options

Option 1: Each party will be responsible for its profit or loss.

Option 2: analyse the profit or loss of each party with the documentary evidence and
sufferer must be compensated by the other party. This decision can be done by arbitrator.

Bill of Quantity for Extra Work

Sl.N Name of work Unit Qty Rate Amount Total Remark
o Amount
1 Head Room Sq.ft. 190.00 330.00 62,700.00 62,700.00  
construction
2 Inside Wall Care-           In original
2 Coats budget, shibari
finishing and
direct paint was
considered.
A Ground Floor Sq.ft. 4325.00 6.90 29,843.00 98,481.00  
B First Floor Sq.ft. 4325.00 7.59 32,827.00
C Second Floor Sq.ft. 4325.00 8.28 35,811.00
3 Elevation Brick           In original
Masonry budget,
structural glazing
was considered.
A Ground Floor Sq.ft. 110.50 22.00 2,431.00 8,024.00  
B First Floor Sq.ft. 110.50 24.20 2,675.00
C Second Floor Sq.ft. 110.50 26.40 2,918.00
4 Elevation Brick           In original
Masonry Plaster budget,
structural glazing
was considered.
A Ground Floor Sq.ft. 221.00 16.50 3,647.00 12,035.00 Inside and
B First Floor Sq.ft. 221.00 18.15 4,012.00 outside
C Second Floor Sq.ft. 221.00 19.80 4,376.00 plastering work
5 Parapet wall Rft 396.00 14.00 5,544.00 5,544.00 No work on
along with terrace floor was
plaster considered.
6 Sump Tank Lumpsum 1.00 21286.50 21,287.00 21,287.00 Extra item
7 Debris Shifting of Tractor 3.00 550.00 1,650.00 1,650.00 Extra item
Sump
8 Curing Charges No. 7.00 8900.00 62,300.00 62,300.00 We had deployed
Mr.
Gurusiddappa.
9 Electrical extra         25,000.00  
points
 10 P.O.P portion         18,000.00 Initially not
wire work included in our
scope
11 Compound wall         7,257.00 Extra work
for front and
back side
12 Terrace dummy         1,350.00  
column
construction
13 RCC drop padadi         49,261.50  
14 Vertical padadi in         2,376.00  
front portion
15 Kadapa shelves         4,777.50  
fixing and
rounding
16 Add 5% %age 77,93,440.0 5.00% 3,89,672.0 3,89,672.00 1) Total
consultancy on 0 0 Estimated Cost=
Material Rs.
1,00,04,000.00/-
2) Labour Cost=
Rs.
22,13,351.00/-
3) Hence
Material cost =
Rs.
77,90,649.00/-
4) 5% of above
material cost
towards
consultancy fees
= Rs. 3,89,533/-
17 Labour Payment         -34,000.00 Out of originally
balance Amount agreed amount.
18 Levelling and         9,050.00 Shri
Back side Gurusiddappa
cleaning along was employed
with shifting for levelling and
debris cleaning back
side of house
               
  Total Amount: 7,35,715.00  
  Deduction Previously Paid Consultancy Charges: 80,000.00  
  Deduction for carpentry work (door frames and door shutters): 34,000.00 This work was
not done by us.
  Grand Total Amount: 6,21,715.00  

Option 3: Forget supervision charges and sum up the entire expenditure incurred by the us
based on the payment vouchers. Positive or negative cash impact to be borne by the owner.
Items of work Budgeted Extra Spent amount Balance to be -ve/+ve
amount expenditure paid
Masonry 5,27,440.00 3,45,640.00 8,73,080.00 3,45,640.00 -3,45,640.00 Due to increase
quantity of
padadi,
staircase
portion
masonry, etc.
Electrification 60,000.00 20,000.00 62,000.00 20,000.00 -20,000.00 Due to increase
in number of
electric points
Cantering & 4,99,680.00 23,820.00 5,23,500.00 23,820.00 -23,820.00 Sump tank,
shuttering double staging,
etc
Painting 66,624.00 40,876.00 1,07,500.00 40,876.00 -40,876.00 Wall care, POP
finishing etc.
Plumbing 54,000.00  - 47,808.00 -  6,192.00
Watchman/Curin 0.00  62,300.00 62,300.00  0.00 -62,300.00 Owner had not
g arranged for
proper curing
hence for the
well-being of
everybody we
arranged for
curing up to
masonry
complete,
plastering
partially
complete
Supervision 3,50,000.00  - 2,02,500.00 1,22,500.00 -1,22,500.00 Paid to staff
charges
Other works  - -  62,000.00 62,000.00 -62,000.00 Misc. other
extra works
Flooring 66,624.00 40,376.00 1,07,000.00 40,376.00 -40,376.00 Increase in
number of
toilet units, sill
granite fixing,
kadapa
cubboards
 Total =     20,47,688.00 6,55,212.00 -7,11,320.00