+Ques.

1 )
a) Comment on ‘Income Tax is payable on income & Service tax is on turn over’.
What are the exemption limits for an architect in Service tax?
b) Explain the implications of Consumer Protection Act on architectural practices.
c) What are the essential conditions for a contract, how it is different from
agreement?

INCOME TAX
1. The government of India imposes an income tax on taxable income of
all persons including individuals, Hindu Undivided Families (HUFs), companies, firms,
association of persons, body of individuals, local authority and any other artificial
judicial person.
2. Income tax is a key source of funds that the government uses to fund its activities and
serve the public.
3. Income tax is a tax payable, at enacted by the Union Budget (Finance Act) for every
Assessment Year, on the Total Income earned in the Previous Year by every Person.
4. The chargeability of income tax is based on the nature of income.

Net income range Net income range (For

Net income Net income
(Individual resident any other person Income
range (For range (For
(Age below 60 Yrs.) or excluding companies Tax
resident senior super senior
any NRI / HUF / AOP / and co-operative rates3
citizen1) citizen2)
BOI / AJP) societies)

Up to ₹250,000 Up to ₹300,000 Up to ₹500,000 Up to ₹200,000 NIL

₹300,001–
₹250,001–500,000 - ₹250,001–500,000 10%
500,000

₹500,001– ₹500,001–
₹500,001–1,000,000 ₹500,001–1,000,000 20%
1,000,000 1,000,000

Above Above
Above ₹1,000,000 Above ₹1,000,000 30%
₹1,000,000 ₹1,000,000

5. Income tax is levied on the following five kinds of income :

● Income from salaries

All income received as salary under employer-employee relationship is taxed under this head,
on due or receipt basis, whichever arises earlier

● Income from house property

Income under this head is taxable if the assessee is the owner of a property consisting of
building or land appurtenant thereto and is not used by him for his business or professional
purpose

● Profits and gains of business or profession

● Capital gains

A Capital asset is defined as a property of any kind held by an assessee such as real estate,
equity shares, bonds, jewellery, paintings, art etc. but does not include some items like any
stock-in-trade for businesses and personal effects.

● Income from other sources

This is a residual head, under this head income which does not meet criteria to go to other
heads is taxed. There are also some specific incomes which are to be always taxed under this
head.
1. Income by way of Dividends.

2. Income from horse races/lotteries.

3. Employees' contribution towards staff welfare scheme/ provident fund/

superannuation fund or any fund set up under the provisions of ESIC Act, received from
the employees by the employer.

4. Interest on securities (debentures, Government securities and bonds).

5. Any amount received from keyman insurance policy including the sum allocated by way
of bonus on such policy.

6. Gifts (subject to certain conditions and exemptions).

7. Interest on compensation/enhanced compensation.

8. Income from renting of other than house property.

9. Family pension received by family members after the death of the pensioner.
 10. Income by way of interest on other than securities.

SERVICE TAX
Service tax is a tax levied by the government on service providers on certain service
transactions, but is actually borne by the customers. It is categorized under Indirect Tax and
came into existence under the Finance Act, 1994.

A company’s yearly turnover is the total sales of goods or services during the year. Profit will
derive depending upon the cost of operations. Higher the turnover and lesser the cost or
expenses will show the profitability of the company.
According to the present law, the minimum turnover requirement for mandatory coverage
under the Service Tax provisions is Rs. 10 lac. An assesse is liable to get himself or his
organization registered under Service Tax as soon as his turnover reaches Rs. 9 lac. He has to
pay the service tax once his turnover reaches Rs. 10 lacs.
Exemption limits for architects services:
1. Exemption to Small Scale Service Providers:
exempts taxable services of aggregate value not exceeding Ten lakh* rupees in any financial
year from the whole of the service tax leviable.
2. Services to UN Agencies
3. Export of service
4. Exemption to services provided to a developer of SEZ or a unit of SEZ:
5. Exemption to value of goods & material sold by service provider
6. Exemption to taxable services provided by TBI and STEP: All taxable services, provided
by a Technology Business Incubator (TBI) or a Science and Technology Entrepreneurship
Park (STEP) recognized by the National Science and technology Entrepreneurship
Developme nt Board (NSTEDB) of the Department of Science and Technology, Govt. of
India
7. Exemption to taxable services provided by entrepreneurs located within the premises of
TBI or STEP
8. Exemption to services provided to Foreign Diplomatic Missions or Consular Post in India
9. Exemption to services provided for personal use of a family member of Diplomatic
Agent or Career Consular Officers posted in Foreign Diplomatic Mission/Consular Post in
India
Implications of Consumer Protection act on architectural practices:
The law mandates that the professionals should provide services to the consumers in a required
manner exercising duty of care and while doing so they should not commit any negligent act.
In order to protect the interest of the consumers against the breach of duty, the deficient
services have been defined by the statute and legal actions have been initiated on the erring
professionals. The services rendered by architects have also been covered by the relevant laws
of the country.

Essential conditions for a contract:

1. A contract is usually made between two parties (further division of parties is possible)
2. Offer
There must be a definite, clearly stated offer to do something. For example: A quotation by sub-
contractor to the main contractor and an offer to lease.

An offer will lapse:

a) when the time for acceptance expires;

b) if the offer is withdrawn before it is accepted; or
c) after a reasonable time in the circumstances (generally the greater the value of the contract, the
longer the life of the offer).

3. Acceptance
The offer must be accepted exactly as offered without conditions. If any new terms are suggested this is
regarded as a counter offer which can be accepted or rejected.

Acceptance can be given verbally, in writing, or inferred by action which clearly indicates acceptance
(performance of the contract). In any case, the acceptance must conform with the method prescribed by
the offerer for it to be effective.

4. Intention of legal consequences

A contract requires that the two parties intend to enter into a legally binding agreement. That is, the
parties entering into the contract must intend to create legal relations and must understand that the
agreement can be enforced by law.

5. Consideration
Consideration is what each party gives to the other as the agreed price for the other's promises. Usually
the consideration is the payment of money but it need not be; it can be anything of value including the
promise not to do something, or to refrain from exercising some right.

CONTRACT AGREEMENT

1 A formal arrangement between two or An arrangement (usually informal)

more party that, by its terms and between two or more parties that is not
elements, is enforceable by law. enforceable by law.

2 Validity based on mutual acceptance by Validity based on mutual acceptance by

both (or all) parties involved. both (or all) parties involved.

3 Can be oral also, except for some specific Need not be in writing
kinds of contracts, such as those involving
land or which cannot be completed within
one year.

4 Consideration is required Consideration not required

5 A contract is legally binding and its terms An agreement that lacks any of the
may be enforceable in a court of law. required elements of a contract has no
legal effect.

6 Every contract is an agreement Every agreement is not a contract

Ques. 2

a.) Explain IIA is a society whereas COA is a statutory body.

b.) Explain the role of IIA in promotion of architecture in india. Enlist the type of memberships
offered by IIA.
c.) Abbreviations of IIA,COA,CAA,Arcasia,ITPI,FIIA,AIIA,AITP
The Council of Architecture (COA) has been constituted by the Government of India under the provisions
of the Architects Act, 1972, enacted by the Parliament of India, which came into force on 1st September,
1972. The Act provides for registration of Architects, standards of education, recognized qualifications
and standards of practice to be complied with by the practicing architects. The Council of Architecture is
charged with the responsibility to regulate the education and practice of profession throughout India
besides maintaining the register of architects.

❑ The INDIAN INSTITUTE OF ARCHITECTS (IIA) is the national body of architects in our country.

❑ It was established in the year 1917 as “architectural students association” in Mumbai. It was
converted to IIA in the year 1929.

❑ The institute today has more than 20000 members.

❑ The institute has a major role

▪ In promoting the profession of architects by uniting and organizing in

fellowship the architects of India.

▪ To promote aesthetic, scientific and practical efficiency of the

profession.

❑ IIA Is represented on various NATIONAL AND INTERNATIONAL COMMITTEES connected with

art, architecture and the building industry is also actively associated with

a) International union of architects(UIA)

b) Commonwealth association of architects(CAA)

c) South asian association for regional co-operation of architects(SAARCH)

 d) Architects Regional Council, Asia, ARCASIA

AIMS AND OBJECTIVES :

❑ To organize and unite architects in India

❑ To promote the architectural profession

❑ To encourage growth of architectural education and to institute awards for teachers and
students

❑ To prescribe syllabus and conduct examinations for those who do not have access to formal
education in architecture

❑ To bring about necessary changes in laws relating to architectural practice

❑ To organize conferences, seminars, lectures etc. On matters relating to architecture and to

award medals, certificates, prizes etc.

❑ To co-ordinate activities relating to architecture with other minded bodies.

❑ To promote improvement of living standards and to increase awareness among the public
about architectural profession.

(2ND part KA ANSWER PEHLE WALE SE AAJAEGA)

CATEGORIES OF MEMBERSHIP :

IIA HAS SIX CLASSES OF MEMBERSHIP:-

a) HONORARY FELLOWS

b) FELLOW

c) ASSOCIATES

d) LICENTIATES

e) STUDENTS
 f) RETIRED MEMBERS

THE QUALIFICATION FOR THOSE MEMBERS ARE AS UNDER:

a) HONORARY FELLOW :

• Any individual who is not necessarily a qualified architect but has contributed to the growth of
architectural profession can be elected by the IIA council as honorary fellow.

• IIA fellows have either been administrators, writers, designers or persons connected with
architectural institutions.

b) FELLOW MEMBER :

• An associate member who has attained the age of 36 years and has either practiced
independently or in an architectural office and made a significant contribution to the
profession can be elected as A fellow.

• Fellows are expected to help and advise junior members of IIA in conducting their practice.

c) ASSOCIATE MEMBER :

• Any person who has attained the age of 21 and graduated from one of the institutions
registered with council of architecture can become an associate member of IIA on application.

• Those who pass IIA examinations are also eligible.

• An associate member after 7 years of independent practice or 10 years service in a responsible

position can apply for fellow membership.

d) LICENTIATE MEMBER :

• Any person who is registered with COA is eligible to apply for licentiate member.

• This member has all the privileges of an associate member except that he is not eligible to vote
on matters relating to change in IIA constitution and bye-laws.

• After serving as licentiate member for seven years, a member can apply for associate member.

• A licentiate member can use the suffix LIIA.

e)STUDENT MEMBER :

• A student enrolled in any one of the architectural institutions – can on application, become a
student member.

• A student member has limited priviliges of attending conferences, seminars, lectures etc. but
cannot attend general body meetings or participate in any election conducted by iia.

• He can seek the assistance of IIA in his academic problems and for seeking placement as
trainee in an architect’s office.

• A student member cannot use any suffix.

RETIRED MEMBER :

• Any fellow, associate or licentiate after attaining the age of 55 and on completely retiring from
service or profession can apply for this post.

• Such members are exempted from payment of annual membership subscription.

• They enjoy all the priviliges except that they are not eligible to seek election to any IIA post or
vote in such elections.

• If a retired member resumes active practice, he must notify IIA and resume payment of normal
subscription.

• A retired member can use the suffix MIIA(RETD.)

Abbreviations :
IIA : indian institute of architects

COA : council of architecture

CAA : common wealth association of architects

Arcasia : architects regional council asia

ITPI : institute of town planners india

FIIA :

AIIA :

AITP : association of information technology professionals

Ques. 3.

(c) The register includes the following particulars, namely :-

a The full name with date of birth, nationality and residential address of the architect ;

b. His q

ualification for registration, and the date on which he obtained that qualification and the authority
which conferred it ;

c. The date of his first admission to the register;

d. His professional address ; and

e. Such further particulars as may be prescribed by rules.

PROCESS OF REGISTRATION

1. (a) The Central Government, by notification in the Official Gazette, constitutea a Registration
Tribunal consisting of three persons who have, in the opinion of the Central Government, the
knowledge of, or experience in, architecture; and the Registrar appointed acts as Secretary of
the Tribunal.
(b) The Central Government by the same or a like notification, appoints a date on or before
which application for registration, will be accompanied by such fee as is prescribed by rules, is
be made to the Registration Tribunal.

(c) The Registration Tribunal examines every application received on or before the appointed
day and if it is satisfied that the applicant is qualified for registration under section 25, the entry
of the name of the applicant in the register is then directed

(d) Every person whose name is entered in the register shall be issued a certificate of
registration in such form as may be prescribed by rules.

2. (a) A person entitled on payment of fees as prescribed by rules to have his name entered in the
register, if he resides or carries on the profession of architect in India and --

● holds a recognised qualification, or

● does not hold such a qualification but, being a citizen of India, has been engaged
in practice as an architect for a period of not less than five years prior to the
date appointed .
 ● possesses such other qualifications as may be prescribed by rules :
Provided that no person other than a citizen of India is entitled to registration by virtue of a
qualification -

3. (a) After the date appointed for the receipt of applications for registration in the first
register of architects, all applications for registration are addressed to the Registrar of the Council and
should be accompanied by such fee as may be prescribed by rules.

(b) If upon such application the Registrar is of opinion that the applicant is entitled to have his name
entered in the register he enters thereon the name of the applicant :

4 (a) The Central Government may, by notification in the Official Gazette, direct that for the
retention of a name in the register after the 31st day of December of the year following the year in
which the name is first entered in the register, there shall be paid annually to the Council such renewal
fee as may be prescribed by rules and where such direction has been made, such renewal fee shall be
due to be paid before the first day of April of the year to which it relates.

(b) Where the renewal fee is not paid before the due date, the Registrar shall remove the
name of the defaulter from the register .

Ans.3(b)

The Council of Architecture (COA), an autonomous Statutory Body, constituted by the

Government of India, is charged with the responsibility of enforcing the Architects Act,
including Registration of Architects, regulating the Architectural Profession and Architectural
Education throughout India.

THE CONSTITUTION OF THE COUNCIL OF ARCHITECTURE

The Council consists of members nominated by the Central and State Governments, the All
India Council for Technical Education, the Institution of Engineers (India), the Institution of
Surveyors of India and members elected to represent the Indian Institute of Architects &
heads of Institutions imparting Architectural Education.

The Council shall consist of the following members, namely:-

a.five architects possessing recognized qualifications elected by the Indian Institute of

Architects from among its members;

b.two persons nominated by the All India Council for Technical Education established by the
Resolution of the Government of India in the late Ministry of Education No.F.16-10/44-E.III,
dated the 30th November, 1945;

c.five persons elected form among themselves by heads of architectural institutions in India
imparting full-time instruction for recognised qualifications;

d.the Chief Architects in the Ministries of the Central Government to which the Government
business relating to defence and railways has been allotted and head of the Architectural
Organization in the Central Public Works Department, ex officio;
e. one person nominated by the Central Government;

f. an architect from each State nominated by the Government of that state;

g.two persons nominated by the Institution of Engineers (India) from among its members;
and

h.one person nominated by the Institution of Surveyors of India from among its members.

The Members of the Council hold office for a term of three years, however, they are eligible
for re-election or re-nomination, but not exceeding three consecutive terms.

Fifteen members of the Council form a quorum, and all acts of the Council are decided by a
majority of the members present and voting.

The Council constitutes from among its members an Executive Committee, which consists of
the President, the Vice-President and five other members. The President and the Vice
President of the Council are the Chairman and Vice Chairman of the Executive Committee
and are elected by the members from among themselves and they hold office for a term of
three years.

The Council of Architecture is charged with the responsibility to regulate the education and practice of
profession throughout India besides maintaining the register of architects. For this purpose, the
Government of India has framed Rules and Council of Architecture has framed Regulations as provided
for in the Architects Act, with the approval of Government of India.

There are 280 institutions, which impart architectural education in India leading to recognized
qualifications. The standards of education being imparted in these institutions (constituent
colleges/departments of universities, deemed universities, affiliated colleges/schools, IITs, NITs and
autonomous institutions) is governed by Council of Architecture (Minimum Standards of Architectural
Education) Regulations, 1983, which set forth the requirement of eligibility for admission, course
duration, standards of staff & accommodation, course content, examination etc. These standards as
provided in the said Regulations are required to be maintained by the institutions. The COA oversees the
maintenance of the standards periodically by way of conducting inspections through Committees of
Experts. The COA is required to keep the Central Government informed of the standards being
maintained by the institutions and is empowered to make recommendations to the Government of India
with regard to recognition and de-recognition of a qualification
Ans 3(a)

The Council of Architecture (COA) has been constituted by the Government of India under the provisions
of the Architects Act, 1972, enacted by the Parliament of India, which came into force on 1st September,
1972. For this purpose, the Government of India has framed Rules and Council of Architecture has
framed Regulations as provided for in the Architects Act, with the approval of Government of India.

The registration with Council of Architecture entitles a person to practice the profession of architecture,
provided he holds a Certificate of Registration with up-to-date renewals. The registration also entitles a
person to use the title and style of Architect. The title and style of architect can also be used by a firm of
architects, of which all partners are registered with COA. Limited Companies, Private/Public Companies,
societies and other juridical persons are not entitled to use the title and style of architect nor are they
entitled to practice the profession of architecture. If any person falsely claims to be registered or
misuses title and style of architect, such acts tantamount to committing of a criminal offence, which is
punishable under section 36 or 37 (2) of the Architects Act, 1972.
Ques.4.
a. Explain in detail the process of Tendering and the role of Architect in the tendering process.
Explain the process of making Comparative analysis?
b. Explain BOQ in context of tender, how it is different from estimate. What is L-1 in tendering?
c. Differentiate between Earnest money and Security deposit. In what condition Earnest money
can be forfeited.
TENDER
Tender is an offer in writing to execute some specified work or to supply some specified articles
at certain rates, within a fixed time under certain conditions of contract and agreement,
between the contractor and the department or owner or party. The construction of work is
usually done by contract. Sealed tenders are invited and the work is usually entrusted to the
lowest tender. While inviting tenders the bill of quantities, detailed specification, conditions of
contract and plans and drawings are supplied on payment of the requisite cost to the
contractors who tender or quote their rates.
THE PROCESS OF TENDERING
1. Publication of the tender notice.
The tender notice shall specify at least the rules governing the lodging/submission and
presentation of tenders, the exclusion, selection and award criteria, and set out the
technical specifications.

2. Make the tender dossier available to interested subjects.

The instruction of the tender dossier must indicate at least the following:
● Name of the authorities inviting tender
● Name of work, and its location
● Estimated cost
● Time of completion
● Cost of complete set of tender forms and conditions
● Date, time and place of tender
● Amount of earnest money and security money
● Validity of tender
 3. Establish clear selection and award criteria. If an evaluation grid is established it should
be included in the tender dossier.

4. Establish the composition of the evaluation committee:

● 3 voting members minimum; odd number suggested
● one chairman
● one secretary
● an observer (optional).
All the members of the evaluation committee shall sign a declaration of impartiality and
confidentiality.
5. Opening session and evaluation.
When the tenders received are examined, the contract is awarded by conducting the selection
procedure (i.e. verification of the eligibility and of the financial, economic, technical and
professional capacity of tenderers) and the procurement procedure (i.e. comparison of
tenders), in accordance with the selection and award criteria. No negotiation is allowed.
6. Preparation of an evaluation report
7. Awarding of the contract: preparation of the contract award notice and letter for the
unsuccessful tenders
8. Signature of the contract, using the contract included in the tender dossier
9. Preparation of a tender report.

TYPES OF TENDERS
Open Tender:
Limited or Closed Tender /Selective Tender:
Single Tender:
Negotiated Tender:

THE ROLE OF ARCHITECT IN THE TENDERING PROCESS

The Architect's role does not end when the drawings are completed. Your architect is fully
trained to manage the entire building process, from design through the tendering and contract
process, to observe the construction phase and approving payments to the builder.
An architect is actually a very valuable professional throughout the tendering process. The
architect is the person that draws up the building plans and stipulates what the specifications
are. The more accurate the drawings and specifications, the more accurate the tender will be.
The drawings produced by the architect will allow different builders to quote on exactly the
same thing so that the client does not have to worry about hidden costs cropping up
throughout the building process.

PROCESS OF MAKING COMPARATIVE ANALYSIS

Comparative analysis involves ranking the tenders in relative order of merit against the
requirements of the Tender documents, evaluating each evaluation criterion and the overall
merit of each tender against all requirements.
The TEP should identify the required justification for all ranking judgments.
Evaluation criterion
Financial Appraisal
a financial overview of tender returns, will highlight large variance in pricing, possibly compare
prices against prices being quoted in other projects, compare prices against metered or
quantity rates from pricing guides as appropriate to the tender returns. It is information
gleaned from such an exercise that will be used by a Surveyor in any contract negotiation.

Value for Money

This of course may not be the lowest price submitted. What is important is that the tender
returns reflect current trends in the marketplace are commercially viable and show consistency
in pricing approach and expertise. The Surveyor will probably confirm labour rates with the
Contractor as this will help them in assessing "provisional items" that will be spent during the
project on site.
The duration of the contract may affect its perceived value for money, particularly if property
needs to be unoccupied during the works and alternative accommodation is required for
occupants.

Programme of works
Once the Surveyor/Clint/architect has established a recommended contractor or a shortlist the
next stage will be to seek a Programmed Works. This will establish competency in sequencing of
works and allowing sufficient time for sign off of various work stages on site.
The Programme of Works will assist the Surveyor/architect in establishing whether the project
will fall under the Construction Design & Management Regulations and advising the Client
whether they will need to notify the project to the Health & Safety Executive and appoint a
Planning Supervisor. Personal Knowledge
The Surveyor/architect has a duty to disclose any prior knowledge of working with any of the
Contractors and to state whether their work was satisfactory or not.
Health & Safety
The Surveyor/architect will need to consider whether the Contractor has submitted a Health
and Safety Plan for the works, the Health & Safety Policy of the company and relevant
insurances. Otherwise, establishing such facts will form part of the pre-start verification with
the contractor.
The architect Recommendation
The architect will provide the Client with his/her recommendation which may include practical
advise that the Client and/or the Surveyor inspects and benchmarks other sites where the
contractor has carried out work.
BILL OF QUANTITIES
It is a statement of the various items of work giving the description, quantities and units of
rates. It is prepared in a tubular form similar to the ‘Abstract of Estimated Cost’ of detailed
estimate, but the rate and amount columns are left blank (unfilled). When priced, that is , the
rates and the amounts are filled up and totaled, this gives the estimated cost. It is primarily
meant for inviting tender, and supplied to the contractor to fill up the rates and amounts
columns. On receipt of the tenders the rates and amounts are compared and decision about
entrusting the work is finalized.
ESTIMATE
Before undertaking the construction of a project it is necessary to know its probable cost which
is worked out by estimating. An estimate is a computation or calculation of the quantities
required and expenditure likely to be incurred in the construction of a work. The primarily
object of the estimate is to enable one to know beforehand, the cost of the work (building,
structure, etc.). The estimate is the probable cost of a work and is determined theoretically by
mathematical calculations based on the plans and drawing and current rates

L-1 IN TENDERING
In Limited Tenders, only pre-qualified or known bidders are allowed to participate. Limited
Tenders are not advertised in newspapers, as a result other bidder generally do not come to
know that such tender is floated. The Lowest Bidder or L1 generally wins the contract.
EARNEST MONEY
While submitting a tender the contractor is to deposit a certain amount, about 2% of
the estimated cost, with the department, as earnest money as guarantee of the tender. This
amount is for a check so that the contractor may not refuse to accept the work or run away
when his tender is accepted. In case the contractor refuses to take up the work his earnest
money is forfeited. Earnest money of the tender whose tender has not been accepted is
refundable. The amount of earnest money depends on the estimated cost of works and is as
follows :-
S.NO. EARNEST MONEY (RS.) ESTIMATED COST OF WORK
(RS.)
1 50 UPTO 2000
2 100 ABOVE 2000 TO 5000
3 200 ABOVE 5000 TO 10000

And RS.100 for every RS. 5000 or part thereof above RS.10000.
Earnest money should be in cash or cashable at any time. Earnest money may be in the form of
deposit in Treasury or State Bank or other approved Bank or Government security, or Savings
Certificate or Post Office, Savings Pass-Book or cash Certificate, pledged to the Executive
Engineer.
SECURITY MONEY
On acceptance of the tender, the contractor has to deposit 10 % of the tendered amount as
security money with the department which is inclusive of the earnest money already deposited.
This amount is kept as a check so that the contractor fulfils all the terms and conditions of the
contract and carries out the work satisfactorily according to the specifications and maintain
progress and completes the work in time. If the contractor fails to fulfil the terms of contract his
whole or part of the security money is forfeited by the department. The security money is
refunded to the contractor after the satisfactory completion of the whole work after a specified
time, usually after one rainy season or six months of the completion of the work.
Instead of collecting the whole of security money in one instalment before starting the work,
this can be collected gradually by deducting from the running account bill of the contractor.
Usually the earnest money is taken as part of the security money and the balance amount of
the security money is collected by deduction from the running account bill of the contractor at
10 % of every running bill, up to the extent of 10 % of the total cost of whole work.