Professional Practice in architecture

1.DEFINE ARCHITECTURAL PROFESSION. EXPLAIN BRIEFLY THE TYPES OF ARCHITECTURAL

ORGANIZATIONS.

The architectural profession means the occupation of the architect who renders specialized, expert and
personal services to the society. It involves designing of the buildings and evolve solutions to the complex
problems of the human spaces related to socio-economical and environmental contexts. Architects also
command the development of building projects. He also coordinates with other professionals like designers,
engineers, surveyors and remain responsible to clients for their services and get a legitimate fee/ charges at
the end as a response(profit) to the service provided.

The types of architectural firms are:

 Single proprietorship firm
 Partnership firm
 Limited company
 Large-scale consulting company
 Very large offices
 Freelancing
 Builders and developers

 Single proprietorship
The principal will be solely responsible for all the decisions for running the offices, bringing in projects
ensures preparations, progress and completion of project.
He will be issuing the certificates.
He can employee assistants but has to give directions to others in all directions.
This type of firm is suitable for small size and medium size projects.
For large size projects the principal has to have reliable team for execution.
Success of the project depends on the team and he may not have any control on the presentation.
Advantages
 As the proprietorship one can enjoy freedom in design and management
 Take fast decisions
 Rectify the mistake and execute project quality
Disadvantages
 As to bear all loses
 Take up blame for mistakes
 Liabilities for action, for lack of discharging his duties and supervision
 Partnership firm
Generally there will be 2 partners but there can be more no. of partners.
An agreement is prepared between the partners to establish and run the firm under designated name and
style.
The agreement also states duties and responsibilities of partners sharing of profit and loses.
Liabilities along with the procedure for one or more partners to leave partnership.
The partners can be from same professional background or different so they can give varied service.
Partners can be architect, structural engineer, electrical engineer or a managemental specialist.
Partnership is useful in sharing spaces, infrastructure, tax benefit, create better image to attract larger
projects.
Advantages
 Sharing the responsibilities
 Ability to organize large organizations of employees
 Can take greater risk
 Can operate from multiple location
 Can offer more service under one roof
Disadvantages
 Slowing in taking decisions because there are more members to take decisions
 Communication gap among the workers or employees
 Quality of work can suffer due to difference of opinions/ ideas
 Problem due to mismanagement
 Limited Company
The company will have board of directors
This needed when the office grows from medium scale to large scale outfit
Board of directors can be both technical and non-technical
Advantages
 This type of firm can offer multiple services, can have multiple offices and specialization.
 Responsibilities are shared
 Can avoid tax benefits
 Directors will be collectively responsible for mistakes
 Young architects can reach higher position of responsibilities
 Handel large scale projects
Disadvantages
 Individual responsibility can be less
 Decision making can be slow
 Lower level of involvement
 Quality can suffer
 Many levels of decision making can be involved
 Creativity is affected due to lack of appreciation
 Experimentation is difficult.
 This type of organization will be rigid
 Large scale consulting company
 Consulting corporation which take up turnkey projects (project that can be sold to a buyer’s as a complete
product). Providing all types of services needed for the project.
 They operate globally.
 Capable of taking large scale projects due to their access to the best available technology and human
resources
Ex: townships, high raised buildings, recreation complexes
 The survival depends on their level of efficiency
 Investment is heavy
 Very large offices
They have corporate status in organization.
They focus on separate specialization and offer service in the specialized area like city planning, urban design,
landscape, interior design, project management, structural design, etc.
This is so in large cities due to the changing demands of markets/clients.
Separate units/departments are formed within the firm for each of the specializations.
Subsidiary firms can also be formed so that they can take up outside projects too, this method is used to save
income tax.
These firm can reach transnational so that the firm have multiple offices all around the globe.
The target of the projects needs to be done in limited time.
 Freelancing
Not a type of organization
Operates as consultancy to other architects and several offices simultaneous from his own premises (home)
Advantages
 Can work at his/her own pace
 Gets recognition
 Large scope or freedom in creativity
 Risks are low and loses can be minimized
 Can choose and select projects of their own interest
Disadvantages
 High level of expertise is needed
 Should maintain good quality work
 If the person got any illness in health it will be problem to deliver the project on scheduled time.

 Architect as a builder or developer

It’s strictly not architectural practice and it is not classified so by the profession.
This type of practice is not recognized or encouraged by COA and IIA, such practice is prohibited

2.WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF PROPRIETORSHIP FIRM.

Advantages:

 It is the easiest and simplest mode of architectural consultancy firm.

 The architect being the sole proprietor can enjoy freedom in design, office management, profits, fame etc.
 The architect can take fast decisions, rectify mistakes and execute them.
 It is suitable for small and medium size projects.
 The architect can provide complete attention to the particular project he is personally handling.
 The architect has freedom to whenever remove an associate from being his firm member.
Disadvantages:

 The architect is solely responsible for all the decisions involved in running the office.
 The architect shall have to bear all losses and less freedom if the project is of big scale.
 Indecision may delay the projects and when he is ill the work may suffer.
 The architect has to always depend on a reliable team as he alone cannot extend personal attention all the
time.
 The architect is liable to be sued for lack of discharging his duties and supervision.

3.MENTION THE ADVANTAGES AND DISADVANTAGES OF FREELANCING IN ARCHITECTURE.

Advantages:
 An architect can work for several offices simultaneously from his own premises.
 It provides greater satisfaction and allows to work in own pace to meet deadlines.
 Provides recognition and there is large scope for freedom and creativity.
 The problems of running an office and heavy investments are avoided.
 The risks are low and losses can be minimized.
 The architect can employ his associates only when required.
 Work is done on job basis. many choices are available while selecting a project.

Disadvantages:
 Requires high level of expertise in the field of work.
 Requires good rapport with other professionals to obtain the projects.
 Requires the ability to maintain continuous delivery of good quality work
 Ill health can affect the delivery schedules and delay of work
 A young architect cannot aspire to take freelancing immediately after graduation as it requires greater
management skills and experience.

4.ENUMERATE THE ADVANTAGES AND DISADVANTAGES OF LIMITED COMPANY.

Limited company

Advantages:

 It can raise capital, can offer multiple services, can have multiple offices, can employ a range of people with
diversified specializations, can have access to latest technology and management services through high
investments.
 There can be subsidiaries under the main company offering specialist services with directors being same or
different, with better facilities the firm can compete for large projects both in private and public sector.
 Responsibilities are shared generally, but can be specific in different areas; can avail tax benefits and
concessions.
 The directors apart from services can avail bonuses and perquisites and losses do not directly affect them as
in other types of firms.
 The directors will be collectively responsible for any mistakes.
 A young Architect can reach higher positions of responsibility, and gets chance to handle large scale
projects.
 The company operates from an independent premises to establish business identity.

Disadvantages:

 In this type, individual responsibility can be less. Hence, blame can be passed on to others; can become
bureaucratic, decision-making can be slow and low level of involvement can be present in employees when
incentives are absent.
 Quality can suffer, as many levels of decision-making is involved, individual identity as Architect/designer
will be absent.
 This can affect creativity, and individuals contribution may not receive enough recognition.
 An Architect may lose identity, hence not suitable for individualistic minded designers, experimentation
becomes difficult as the company goals are more important than that of an individual’s own.
 This type of organization will be rigid.

5.LIST THE GUIDELINES FOR CONDUCTING ARCHITECTURAL COMPETITIONS.

The following guidelines are drawn up to safeguard the interests of client and competitors and to ensure the
selection of design is based on merit and it satisfies clients requirements:

1. Eligibility to compete- architects registered with COA

2. Firms in which at least one partner/Director is a registered architect.
3. Students of a teaching institution with qualifying examination recognized by COA.
4. Staff member of that institution should not be sole assessor.(max one in three jury)
5. Clients, assessors, associates, employees are not allowed to participate in the competitions.

6.DEFINE ARCHITECTURAL COMPETITIONS. LIST THE PURPOSES/ADVANTAGES OF

ARCHITECTURAL COMPETITIONS.

An architectural competition is a type of design competition in which an organisation that intends on

constructing a new building invites students and architects to submit their design proposals. The
winning design is usually chosen by an Independent panel of design professionals, engineers and
government authorities. They are conducted mainly to generate new ideas for the design and allow
emerging designers the opportunity to gain exposure.

 They provide choices to a client to select the best viable project of high standards with a variety of
approaches.
 They provide client the opportunity to select a particular idea and concept fitting his specific requirements.
 They explore hidden talent among younger architects.
 They safeguard the interests of both the client and the architect.
 They help to get entries judged by the professionally qualified architects.

7.EXPLAIN GENERAL DUTIES AND RESPONSIBILITIES OF AN ARCHITECT.

Every architect in practice or employment is subjected to the provisions of central civil services rules of 1964.

 The architect shall ensure his professional activities do not conflict with his general responsibility
towards the quality of environment and future welfare of the society.
 To provide high standard professional service and to best of his abilities.
 Apply his skills to the creative, economic development of his country.
 To work impartially towards administration of a building project.
 Promote advancement of architecture through high standard education, research, training and practice.
 Observe and uphold the conditions of engagement of COA.
 Recognize and respect professional contribution of his employees, associates, consultants.
 To provide his employees with suitable working environment and compensate them fairly.
 Not to sub-commission to another architect without client’s agreement.
 Not to give or take discounts, commissions, gifts or other inducements for introduction of clients.
 Compete fairly with other architects.
 Not to take a partner who is disqualified or removed from registration in COA as per section 29/30
under architects act 1972.
 Shall not advertise his name in his professional services for advertisements or publicity.
 Having agreements with consultants with regard to their work period, functions and fees.

8.LIST TYPES OF ARCHITECTURAL COMPETITIONS.

1. project competition: to find the best solution for a building project and to appoint the author as architect
for thework.
2. Competitions of ideas: to throw light upon certain aspects of architectural and town planning problems.
Winner may not be commissioned to carry out the project. Students can also participate at client’s
discretion.
3. Combination of both: adopted under certain circumstances.

9.EXPLAIN THE CLASSIFICATIONS OF ARCHITECTURAL COMPETITIONS.

1.Open competitions: all eligible architects are invited to participate through an advertisement.
2.Limited competitions: about 5-8 reputed architects selected by the client on the advice of board of
assessors are invited to participate. Award is given to such participants.
3.Special competitions: for projects involving town planning and design problems, use of industrial
components and participations of developers are neccessary. Participation is limited to professionals. Field of
expertise is made to be known in the advertisements.
10. DIFFERENTIATE BETWEEN PROPRIETORSHIP AND PARTNERSHIP.
BASIS SOLE PROPRIETORSHIP PARTNERSHIP
Minimal legal formalities, easiest Registration is compulsory,
FORMATION
formation formation slightly difficult
Single owner Two or more and up to
MEMBERS
10persons
CAPITAL Limited finance but not Comparatively more finance and
CONTRIBUTION obligatory determined by members
Unlimited responsibility by Limited civil responsibility of
LIABILITY OF DUTIES
owner member
Either personal property or Need not always be financial
INVESTMENT
financial assets
1 vote per member Decisions made independently by
VOTING SYSTEM
owner
DECISION MAKING Faster and independent Slower and collective
PROFIT GAIN solely Distributed among partners

CREDIBILITY Less credible More credible

11. EXPLAIN THE PROCEDURE TO CONDUCT ARCHITECTURAL COMPETITIONS.

Step-by-step procedure to conduct architectural competition

 Client decides to go in for a competition for a particular project and makes his intention known to Council of
Architecture (COA).
 The President, COA suggests a panel of registered Architects experienced in such type of projects for
appointment as assessors.
 Client constitutes Board of Assessors on the advice of COA before the competition is announced.
 Where appropriate and necessary, the client in consultation with Senior Architect Assessor (SAA), Board of
Assessors may appoint one or more Technical Advisors.
 The client prepares competition brief in consultation with Senior Architect Assessor (SAA).
 Wide publicity is given through media.
 Intending competitors apply for registration form.
 Clarification if asked will be given to all competitors.
 Designs along with declaration submitted by competitors is received by the client.
 Award: May at their discretion, adopt promoter’s choice. They may suggest not more than three designs of
equal merit.
 Client submits a copy of signed report of jury to COA.
 Client discusses design and related issues with the author(s).
 Selection of author of winning designs as Architect for the project is made by the client.
 All designs are exhibited at least for one week.
 Prize money and number of prizes is related to size of project, work involved and expenses for the
competition.
 All designs except the winning design returned to competitors.
 Winning Design is returned to the author on his appointment as Architect for the project or within 6 months
 whichever is earlier.

12. DISCUSS THE PRINCIPAL REQUIREMENTS OF ARCHITECTURAL COMPETITIONS.

Principal requirements of architectural competitions:

1. Particulars relating to time table, registration fees, prize monies/honoraria, board of assessors, the
programme of forming a part of competition conditions shall be within the framework of COA regulations.

2. Competition condition shall clearly give;

 Conditions based on COA guidelines
 Type of Competition
 Purpose of competition and intention of promoter
 Nature of the problem to be solved
 Practical and mandatory conditions to be met by the competitors
 Number, nature, scale and dimensions of the documents, plan and/or models
 Estimates in the prescribed form
 Prizes and names of assessors
 Anonymity of competition designs
 English as language for conducting the competition

3. Board of Assessors
 Smallest odd number not exceeding 7
 Architects registered with COA shall be in majority by at least one
 Client’s nominees shall not exceed 2

4. Prizes Honoraria
Amount and number of prizes for the open competition amount of premium or honorarium to each
competition, in a limited competition, and in the second stage of a two-stage competition shall be given in
competition conditions and in the media announcements.

5. Copyright and right of ownership

Each competitor retains his copyright and right of reproduction for his design.

6. Exhibition of entries
Competition design including disqualified designs shall be exhibited for at least one week free of charge.

13. DISCUSS THE CONDITIONS OF ENGAGEMENT.

These are the conditions, rules, terms of the services which one must agree to abide in-order to use a service.
Responsibilities:
To study clients needs and to advise, to prepare, to direct, supervise works and to coordinate design.
Employment of consultants shall be at architect’s discretion in agreement with the client.
The architect may also nominate specialist subcontractors.
The architect must have the authority of his client before initiating any stages of his duties.

Remuneration:
It is the duty of a member to uphold the scale of of professional charges adopted by COA.
Where work done by a client results in the omission of part of the normal service, reduction in fees may be
made through written agreement.

Liability of architect:
The liability of the architect does not cover the costs other than those for reinstatement of the works.
Liability for consequential damages is excluded.
The liability of the architect expires after two years from thedate of completion of the relevant part of the job
assigned.
The architect does not guarantee the works of any contractors.
The architect has no liability for any part of work which is not designed by him or constructed under his
supervision.

Termination of engagement:
An engagement entered between the architect and the client may be terminated at any time by either party
on the expiry of reasonable notice(3months) in accordance with the provisions made in the agreement.

Copyrights:
Copyrights in all the drawings and in the work executed will remain the sole property of the architect under
the provision of copyrights act.

Interpretation:
Any question arising out of conditions of engagement and scale of professional fees may be referred by the
architect to the IIA for advice any time.

Successors and assignments:

The client and architect binds himself, his partners, successors, legal representatives and assign to the
other party to the agreement.

Disputes:
Any differences in the agreement between the parties be referred to IIA/COA.

Arbitration:
Where any difference or dispute arising out shall be referred to arbitration agreed upon between the
parties, the appointment of an arbitrator will be done at the request of either party by the president
of COA.

14. WRITE A NOTE ON QUANTUM MERIT.

Quantum meruit is a Latin term meaning ‘the amount deserved’ or ‘what the job is worth’. It is used to refer to
a claim for a reasonable sum, such as when a contractor seeks payment for work which has not been
determined by a contract. If there is a contract that entitles one party to receive an agreed or reasonable sum
from the other then the law of contract applies and a claim for quantum meruit cannot be used.

A claim may arise in circumstances, including:

 Where there is a quasi-contract (e.g. where some contractual terms have been agreed but price has not).
 Where no price has been fixed.
 Where there is work done that falls outside the contract.
 Where there is work done under a void or unenforceable contract.
 The contractor must demonstrate that the employer requested, either expressly or impliedly, the work to be
done, or freely accepted it. However, in practice, it can prove difficult for the contractor to prove the exact
amount of their entitlement under the principle of quantum meruit.

There are no stipulations as to how the reasonable sum is to be assessed as circumstances often differ. The
assessment of a claim for quantum meruit in the absence of a contract will differ from the assessment of a
reasonable sum to be paid within a contractual framework. Where work done outside an existing contract
gives rise to a quantum meruit claim, the contractor should be paid at a fair commercial rate rather than as
though it had been performed under the contract (which may be a different rate).

Evidence that can prove useful to a claim includes:

 Any abortive negotiations relating to price.

 The prices in a related contract.
 Calculations based on the net cost of labour and materials.
 Expert opinions regarding what constitutes a reasonable sum.

15. LIST THE FACTORS CONSIDERED FOR THE MISMANAGEMENT OF OFFICE.

Mismanagement of architect’s office:

 Architect being unable to encourage and bring out performance through his team members.
 Being a professional, architect’s failure in carrying out well of his responsibilities.
 Architect lacking professional knowledge resulting in less efficient contribution as an individual.
 The Architect not ensuring coordination of activities of key players, viz. other consultants, contractor(s),
client, regulatory authorities, sub-contractors and vendors.
 Not following the duty of organizing his team to meet the design requirements.
 Not analyzing the strengths, weaknesses, opportunities the project offers and threats/problems which can
affect the execution of the project.
 No proper course of action to coordinate factors of cost, labour, time and technology and site execution to
achieve the target.
 No alternative strategies which are required to be prepared, so that in case plan A fails, plans B and C are
ready.
 Reasons beyond architect’s control like natural and man made disasters.

16. EXPLAIN BRIEFLY ABOUT ARCHITECTS OFFICE AND OFFICE MANAGEMENT IN

ARCHITECTURE.
Architect office is a place where records are prepared, handled and preserved for future reference. It is the
administrative centre of the business where relevant records are preserved for the purpose of efficient
management of the organisation. Mangement involves the functions of administration, communication, safety,
coodination, planning, cost reductions and public relations apart from achieving the project goals.

Necessities for office management:

 Improve upon existing information system.

 Reduce amount of paper work. Usage of computers in al possible areas.
 Encourage creative thinking and employee participation.
 Improve and maintain public relations.
 Attract, acquire and retain talent.
 Endeavor for cost efficient office service.
 Decentralise as many functions as possible.
 Achieve greater productivity through incentives.
 Incorporate ideas of employees in all areas of productivity.

17. EXPLAIN THE DUTIES AND LIABILITIES OF AN ARCHITECT TOWARDS CONTRACT

(i) The Architect is liable if he fails to exercise all reasonable skill, care and diligence in the discharge of his
duties under agreed conditions.
(ii) The liability of the Architect does not cover costs other than those for the reinstatement of the works. All
 liability for consequential damages is excluded.
(iii) The liability of the Architect expires after two years from the date of completion of relevant part of the
work.
(iv) The Architect does not guarantee the work of any Contractor.
(v) The architect has no liability whatsoever for any part of the works not designed by him or not under his
responsibility or which have not been constructed under his supervision.
(vi) The Architect has no liability whatsoever for any damage resulting from any act of contractors or
suppliers which is not in accordance with the contract documents or the Architect’s instructions.
(vii) The Architect has no liability whatsoever for any violation of legal provisions or rights of third parties
unless these provisions or rights have been specially brought to the notice of the architect by the Client
in writing.

18. DISCUSS THE DUTIES AND LIABILITIES OF ARCHITECT TOWARDS THE CLIENT.

Responsibility:
 Prepare drawings
 Co-ordinate design
 Appointment of consultants
 Site supervision
 Intimating client on changes made at site regarding the materials and taking approval for the same.
 Resident architect
Payment

 Payment of fees:
 Scale of charges as per COA terms and conditions agreed between client and architect.
 Reduction of payment for omission of work.
 Addition of payments for additional works.

Copyright:
 All drawings remain as the property of an architect.

Mode of payment:
 Stage wise payment as per council of architecture norms.

Resolution of dispute:
 Any difference arising out of conditions of engagement, professional fees and charges.
 Appointment of an arbitrator (a person nominated at the request of either parties by president of COA/IIA.

Termination of the contract:

 Ending of the contract successfully within agreed time.

19. EXPLAIN THE DUTIES AND LIABILITIES OF AN ARCHITECT TOWARDS THE STATUTORY
BODIES.
 Approval of plans by local, municipal’co-operation authorities. Ex:BDA,BBMP.
 Design and execution of work as per building bye-laws and regulations.
 Neccessary clearances from various departments:
 Airport authority of India for clearance of building height
 Water supply. Ex:BWSSB
 Electricity board. Ex: BESCOM
 Environment clearance. (Ministry of environment and forests, Pollution control board)
 Fire and safety department.

20. WRITE A NOTE ON LATENT AND PATENT DEFECTS.

Latent defects:
latent defects are those which could only have been identified after the issue of the final certificate.
For latent defects of materials, other than those due to faulty specification such as wrong fixing of slabs
resulting in uneven levels later or workmanship, the architect is not liable to his client, but the contractor is
liable to his owner. For latent defects of design, specification, the contractor is not liable to the owner, but the
architect is liable to his client, if it can be proved that there was negligence or incompetence on the architect’s
part.

Patent defects:
Patent defects are those which should have been identified before the issue of final certificate. The Architect is
liable to his client for patent defects which he should have noticed in the course of his supervision but which
he failed to notice or failed to instruct whose list is generally sent to the contractor at the end of defect liability
period. Even though the liability of architect expires after two years of completion of every part of the building,
he should check all the all the items of work of execution before carrying out his final bill.

21. DEFINE ARBITRATION EXPLAIN THE TYPES OF ARBITRATION

22.
It is the most popular mode of settlement of disputes relating to building and engineering contracts. Most
construction contracts provide for arbitration. Imparting justice with speed and least expense is the primary
purpose of arbitration. Arbitration means the determination of disputes by the decision of one or more
person called arbitrators

Types;
foreign arbitration:
It is conducted in a place outside such as foreign countries, resulting award is a “foreign award”

adhoc arbitration:
It is agreed to and arranged by the parties themselves without recourse to an institution proceedings
conducted by an arbitrartor as per agreement between the parties.

institution arbitration
It is conducted under rules laid by an arbitral organisation specialized conducted by arbitral institutes which
have framed special rules to meet specific requirements such as disputes in commodities, construction,
technology

statutory arbitration
It is conducted in accordance with provision of special acts like Indian electric city act 1910, land acquisition
act of 1894 act etc

domestic arbitration
It takes place in India and subject matter of the contract , the disputes and procedure for arbitration are all
governed by Indian law and subjected to Indian jurisdiction.

International arbitration
when at least one of the parties involve is a NRI outside India or the subject matter of dispute is abroad it is
applicable to Indian or foreign law.

23. EXPLAIN DUTIES AND POWER OF AN ARBITRATOR

1.To accept the appointment in writing

2.To study the submission to arbitration (which sets out the substance of the dispute ) including
A] legal right of the parties of arbitration
B]Verification that the dispute is within the scope of those rights and of the submission made

3.To act in concert with the other arbitrators if more than one appointed
4.To give proper notice of meetings
5.To hears all a parties and witnesses in the presence of both parties
6.To take evidence under oath
7.To avoid communicating in private with any party or any of their witnesses
8.Administers oath to the parties
9.State a special case for the opinion o the court on any question of law involved
10.Makeup the award conditional or in the alternative
11.Correct in an award any mistake or error arising from any accidental slip
12.To set the procedure, mode of presentation by parties, time and place of meeting as required.

24. WRITE A NOTE ON UMPIRE IN ARBITRATION?

Umpire: A person chosen to decide a question in a controversy that has been submitted to
ARBITRATION but has not been resolved because the arbitrators cannot reach agreement, or
one who has been chosen to be a permanent arbitrator for the duration of a collective
bargaining agreement.

Roles and functions:

 to consider any and all evidence offered by the parties which the panel deems necessary to an
understanding and determination of the dispute;

 to request the department to issue subpoenas to compel the attendance of witnesses and
the production of documents, papers and records relevant to the dispute;

 to request the department to forward a copy of all written testimony and documentary evidence
to an independent technical expert certified by the national institute of automotive excellence.

 to regulate the course of the hearings and the conduct of the parties and their counsel therein;

 to hold conferences for simplification of the issues or for other purposes;

 to schedule vehicle inspections, if deemed necessary, at such facility as the arbitrators determine;

 to continue the arbitration hearing to a subsequent date if a party requests a continuance before
hearing, or at the initial hearing or if the panel determines that additional information is necessary in
order for the panel to render a fair and accurate decision.

 to reopen the hearing at will or upon motion of either party for good cause shown at any time before
the decision is rendered; and

 to permit a deposition to be taken of a witness who cannot be subpoenaed or is unable to attend the
hearing upon the application of a party and for use as evidence, in the manner and upon the terms
designated by the arbitrators.

 Arbitrators shall maintain their impartiality throughout the course of the arbitration proceedings.

 An arbitrator shall not be assigned to an arbitration panel if he or she has any relationship to either
party to the dispute to be decided by that panel.

25. EXPLAIN THE PROCEDURE OF ARBITRATION?

Arbitration is conducted in the light of various provisions contained in the arbitration act;

o The parties are treated with equality and each shall be given full opportunity to present his case.
o The parties are free to agree on the procedure to be adopted by the arbitral tribunal
o The parties are free to agree on place of arbitration and language to be used
o Arbitration proceedings commence from the date of receipt of request for arbitration
by the respondent.
o Applicant shall state the facts supporting his claims, issue involved and remedy sought.the
respondent shall give defence in respect of these claims
o Arbitration tribunal shall decide on oral documentary evidence
o Experts may be appointed by arbitration tribunal to report on specific issues
o Assistance of the court may be sought for taking evidence
o Decision is by majority of tribunal members
o Award is in writing and duly signed by arbitrators
o It is a reasoned award unless otherwise agreed to by parties

26. EXPLAIN THE PROCESS OF APPOINTING AN ARBITRATOR?

o A person of any nationality may be an arbitrator, unless otherwise agreed by the parties.
o the parties are free to agree on a procedure for appointing the arbitrator or arbitrators.
o Failing any agreement in an arbitration with three arbitrators, each party shall appoint one
arbitrator, and the two appointed arbitrators shall appoint the third arbitrator who shall act as the
presiding arbitrator.
o If the appointment procedure applies and –
(a) a party fails to appoint an arbitrator within thirty days from the receipt of a request to do so from
the other party; or
(b) the two appointed arbitrators fail to agree on the third arbitrator within thirty days from the date
their appointment, the appointment shall be made, upon request of a party, by the Chief Justice or
any person or institution designated by him.
o Failing any agreement in an arbitration with a sole arbitrator, if the parties fail to agree on the
arbitrator within thirty days from receipt of a request by one partly from the other party to so
agree the appointment shall be made, upon request of a party, by the Chief Justice or any person or
institution designated by him.
A decision on a matter entrusted to the Chief Justice or the person or institution designated by him is final
The Chief Justice may make such scheme as he may deem appropriate for dealing with matters entrusted
by to him.
Where more than one request has been made under sub-section to the Chief Justices of different
High Courts or their designates, the Chief Justice or his designate to whom the request has been
first made under the relevant sub-section shall alone be competent to decide on the request.

27. MENTION THE ADVANTAGES OF ARBITRATION OVER LITIGATION.

28. DEFINE AN AWARD. MENTION THE FACTORS CONSIDERED TO DECLARE AWARD.

Award:
It is a written decision given by the arbitrators on issues referred to them on completion of arbitration
proceedings.
Factors considered to declare an award:
 The award must be within the scope of submission to arbitration, which limits the powers of arbitrators to
the substance therein.
 A good award should be made within the prescribed or reasonable time.
 An good award must be unambiguous, unconditional, complete and final.
 The judgement and decision that of the arbitrator only and no one else’s.
 Arbitration awards must not be set aside by courts except under legal misconduct.
 The court should not act as an appeal court and act neutral to declare a good & valid award.

29. DEFINE TENDER. EXPLAIN THE TYPES OF TENDER AND SUITABILITY.

Tender or a quotation is a written offer to execute a work or to supply materials required for
construction of a facility within a stipulated time under specified conditions of a tender.

TENDERS BASED ON ECONOMIC CLASSIFICATION

 Tenders based on measurement (item rate and % rate)

 Lump sum tenders
 cost plus fee tenders
 Turnkey tenders
 Tenders based on Build-own-operate and transfer (BOOT) concept.
 Tenders based on Labour component and miscellaneous material required for the work.

Tenders based on measurement (item rate and % rate):

The tender form contains all items of work included in bill of quantities excluding lump sum items and
those items which are to be executed through another agency.
In percentage rate tender, the owner gives both rates and quantities and amount. The contractor
quotes % above or at par or % below the estimated cost.

Lump sum tenders:

The tenderer quotes a fixed price. However, if the quote is varied, it involves contractual problems and
methodology to arrive at the rates for addition, deletion and alterations would be necessary and it is to
be built in the tender document. This is to facilitate release of interim and final payments.

Cost plus fee tenders:

Cost plus percent of total cost with ceiling cost + fixed fee cost + incentive fee

Tenders based on turnkey concept: in this type of contract, contractor takes full responsibility for
the design, construction, commissioning of the facilities. The scope of the facility is described in
detail and a fixed lump sum price is paid to the contractor.

Tenders based on BOOT(build-own-operate-transfer)

It is adopted for infrastructure projects like highways, bridges, airports, water supply and sewerage
projects. Private sector is involved in these projects. The entrepreneur invests, builds and maintains
these structures. He collects a toll for a specific period from public based on approved tariff rates.

Tenders based on DFBOOT(design-finance-build-own-operate-transfer)

This is a concession contract. The project is based on the granting of a concession by the principal,
usually a government to a entrepreneur.An entrepreneur is responsible for the design, financing,
construction, operating and maintaining the facility over a period of concession from public sectors.
The facility is fully operated and then finally transferred by the private sector to the public sector once
the principal cost is met.

Daywork:
This method of execution is good for small works, which cannot be measured or valued such as
decorative work, carpentry. Payment for the same shall be decided on the basis of site observation
plus reasonable profit.

Tenders based on demolition:

This involves demolition of existing buildings completely and removal of the debris safely away
from the site. The contractor takes away all the materials that are salvaged from the building and
pays for the same to the owner.

30. EXPLAIN THE FOLLOWING: I] SECURITY DEPOSIT II] EMD III] RETENTION
AMOUNT(10M)

SECURITY DEPOSIT
Once the tender is accepted , the selected Contractors should deposit 10% of the total cost of work as security
deposit with the department. This amount includes the earnest money of already deposited. The contractor
may deposit the entire amount at the beginning of the work or it may be deducted from the running bill of the
contractor.
The contractor should fulfill all the conditions of contract and carryout the work satisfactorily according to the
specification and complete the work in time If the contractor fails to satisfy terms of agreement, then the part
or complete amount of security money will be forfeited. If he completes the work as per the conditions of
agreement with in the specified time, the security deposit will be refunded to the contractor. This amount will
be refunded six months after the completion of the work. Any defects noticed during this observation period is
to be rectified by the contractor at his cost.

EARNEST MONEY DEPOSIT (E.M.D)

when the contractor submits the tender for a work he has to deposit some amount usually at 2% of the
estimated cost to the department as a guarantee of the tender. If the contractor refuses to take up the work
when his tender accepted, his earnest money is forfeited. But the earnest money of all the contractors whose
tenders have not been accepted will be return to the respective contractors. The earnest money may be in
cash or fixed deposit in bank , cash certificate, bank guarantee like saving certificate, etc.

RETENTION AMOUNT
Retention amount is described as the sum of money held by the employer as a safeguard for any defective or
non-conforming work by the contractor. Retention amount safeguards the employer by defects which can
occur during the defects liability period if the contractor doesn't response according to the contract terms.

Purpose of retention amount:

The purpose of retention money is, in significant part, to provide security, in the form of a source of funds,
against the contractor's failure to complete any work outstanding when the works are taken over and to
remedy any defects or damage and in respect of any other liability of the contractor to the employer. In
general, retention money provides protection to the employer. Retention money gives the idea of importance
of completing the signed project as per it's terms and designs. With such retention held, the contractor takes
the responsibility to complete the construction project as per the design and quality stated in the initial
contract.

Amount and limit of retention amount:

The percentage to be applied to the contract value of the works executed to calculate the amount to be
retained is 5% to 10% of the contract sum.

31. EXPLAIN THE CONTENTS OF THE TENDER DOCUMENTS. OR EXPLAIN ESSENTIAL

CHARACTERISTICS OF TENDER NOTICE.
 Brief press notice
 NIT in the elaborate form.
 General conditions of the contract.
 Layout plan, location of the work- division in which location is situated.
 Nearest railway/ road link.
 Availability of materials in the vicinity.
 The notice inviting tenders must be of standard approved form of a department.
 Schedule of quantities of work to be done and materials, tools and plants to be supplied by the the
hdepartment.
 One set of detailed and sanctioned architectural and structural drawings wherever necessary.
 Mode of payment of work.
 Detailed specifications or reference to standard specifications for each item of work.
 Insistence of income tax, GST clearance certificate.
 Amount of SD to paid from running bills.
 Penalty conditions for slow progress and delays in the work.


32. LIST OUT THE INFORMATION TO BE GIVEN IN TENDER NOTICE.

33.
Notice inviting Tenders must be clear, brief, and should contain the following salient points.
 Brief description of the work on pursue of items and contractor will decide whether to tender
for this work or not by considering type of work, value of work, time given for completion,
location, present work load on hand.
 Estimated cost put to tender.
 Period of completion of the work.
 Earnest money deposit.
 Cost of tender documents.
 Eligibility criteria for tendering.
 Production of documents for obtaining blank tender.
 Last date of issue of blank tender forms.
 Place and period of issue of documents.
 Last date for receipt of tenders and places of submission.
 Client reserves a right to reject/accept any tender without assigning any reason.

34. EXPLAIN PROCEDURE FOR CALLING/INVITATION OF TENDERS.

Notice inviting tender:( same as above)

Collecting tender documents:

It includes compilation of :
 Form of tender.
 Articles of contact guidelines and conditions.
 Notice invitation for tenders.
 Manpower organizational structure.
 Schedule of rates
 Tender summary
 Bank and insurance guarantee.

Receipt of tender documents:

This is done at a specified place and time as per tender notice. A committee is assigned to check all details like
number of tenders, EMD, Bank guarantee signature, documents etc and records them in a register to be signed
by all bidders/ representatives.

Opening of tenders
Before opening all received tenders, a list along with deposit is made in the architect’s office.
In cases where tenders have not enclosed required amount of cheque, endorsement to that effect should be
made on their envelopes.
After having the list prepared, the work may be opened for the scrutiny.
In limited tenders, findings are prepared as to whom and why the work may be given with accordance to
neccessary recommendations and sent to the client for the approval.

Scrutiny/Evaluation of tender
In the scrutiny of the tenders, no contractor should change or cancel any conditions specified in the tender
documents.
Those tenders which are comparatively low to the estimated cost may be rejected with the understanding
that such tenders may fall for substandard materials and workmanship, delays of the project etc.
Although it is obligatory on the part of the client to accept architect’s recommendation, yet he has liberty to
give his work to any contractor of his choice.
Acceptance of the tender
The tender shall be accepted within prescribed time limit and once tender is accepted along with contract
being signed, the deposits of unsuccessful contractors shall be returned by cheques with a forwarding note.
In case the received cheques are not deposited in the bank for collection, the same may be returned to the
concerned contractor.

Issue of work order

In case of open tenders, before the issue of the work order to the selected contractor, the architect shall
investigate the financial credibility, general behaviour, capacity to organise the work and executions of
previous works of similar nature of the related tender.
He shall then obtain a written confirmation from the client concern for issuing of the work order.
The contractor shall be informed that his tender is accepted subject to the conditions that he will sign.
Once the tender is accepted by him, he shall not withdraw, if he does so, his EMD will be forfeited.

35. DEFINE WORK ORDER AND EXPLAIN TENDER ACCEPTANCE LETTER.

Work order
It is official mandate given to selected contractor/ bidder within the validity period, before its issue clear site
statutory clearances and funds to be available.
This type of agreement is used for petty works. In this case no formal agreement is drawn up with the
contractor as in the case of piece work, when the work is awarded by work order. It can be used in situations
where it is not possible to call tenders for petty works. Sometimes in work order time limit with in which the
work is to be completed can be specified. Contractors are usually selected by taking quotations. Payment is
made on the measurement of work and 10% of the bill amount is deducted from the running account bill as
security deposit and which will be refunded in the final payment on the satisfactory completion of work.

Points to be incorporated in work order:

(1) Tendered amount in case of item rate tenders or percentage above/below the estimated cost in case of
percentage tenders. Lump sum amount in case of lump sum contracts or turnkey contracts.
(2) Reference to:
(i) Letters exchanged with the tenderer subsequent to receipt of tenders.
(ii) Summary of negotiations.
(iii) Letter enclosed with the tenders indicating conditions or any stipulation.

Acceptance of Tender
It is the letter / telex / telegram / fax / e-mail or any memorandum communicating to the Bidder the
acceptance of its Tender. It is the letter or memorandum from the Corporation communicating to the tenderer
related to the acceptance of his tender.

An ideal tender acceptance letter must include the following:

 Name, registration number of the contract.
 Date of commencement of the contract.
 Terms, conditions and Specifications of the tender agreement
 Final accepted Price of the contract
 Details of the project supervisor and managers.
 Details of initial payments, SD, EMD.
 Request for attachments of supplier details.
 Benefits and facilities provided if any.
 Closing date of the contract.

36. EXPLAIN BRIEFLY LUMP SUM TENDER.(10M)

Answer unavailable for 10m :(

37. EXPLAIN THE METHODS OF INVITATION OF TENDERS.

Options available to the owner in inviting bids for execution of works is based on one of the following
methods/ processes:
Public tenders:
For government works, these tenders are invited from registered contractors.
A stipulation is made in the tender notice regarding work experience, financial solvency and annual
turnover in addition to registration.
His reputation is also taken into consideration before the award of the contract.

Limited tender:
In this method, tender notice is sent to some selected contractors of repute and no press notice is issued.
The lowest tenderer maybe called for negotiations.
The number of contractors in the select list is generally not too small to avoid formation of cartel.
This method is adopted in specific works of private sector and emergency works in the government sector.

Single tender:
In response to notice of inviting tenders only one tender is received.
It is adopted for small value works or the works from the manufacturer where choice is not available in the
market.

Nomination:
Selection of a contractor by nomination is adopted for works of small magnitude and emergency works.
The rates are negotiated keeping in view the trend of prevailing market rates.
In private sector, this method is adopted to select a reputed contractor who can provide special
construction skills which are not easily available.

E-Tendering:

Award of the tender is to the lowest evaluated tenderer after negotiations.

It involves the negotiations with a few or all tenderers in which negotiated bid is kept confidential but
known to client only.

38. DEFINE CONTRACT. EXPLAIN THE VARIOUS TYPES OF CONTRACT AND THEIR
SUITABILITY.

Contract:
The word contract is derived from the Latin word contractor meaning drawing together.An agreement
enforceable by law is called a contract [Sec 2 (h)] of the Indian Contract Act, 1872.

When two or more persons have a common intention communicated to each other to create some obligation
between them, there is said to be an agreement. An agreement which is enforceable by law is a
contract...(CPWD)
An agreement between two or more parties which is intended to be enforceable at law and is constituted by
acceptance by one party of an offer made by the other party to do or abstain from doing that act.
Contractor is the person or firm to do any type of contract.

Types of contract:
 Piece work contract
 Item rate or unit price contract
 Lump sum contract
 Cost plus percentage contract
 Combination of lump sum and schedule of rates contract
 Labour contract

Piece work contract

It is an agreement by which the worker agrees to execute the different items of work on mutually agreed rates.
The agreement contains different items of works to be carried out with proper description and rates for unit
quantity of work. The contractors agree to execute a specific work at stipulated rates, without reference to
total quantity or time taken. Small works which do not require engineering skill for execution like earth work
excavation, maintenance work, patch work and whitewashing may be carried through this type of contract.

Merits:
a) lt is the best suited for small works and the work which will not require the engineering skill.
b) Work may be completed very quickly.
e) It is the economical as the workers takes up the small works with their wages a little margin over it.
d) Where the works are small and spread out, piece work contract works out to be cheaper and quicker.

Demerits
A) The time is not considered so the workers can take their own time to complete the job so that rate of
progress of work will reduce.
B) The department has to arrange detailed and closed supervision and checking the piece worker who does
not have professional skill.

Lump sum contract

In this contract, the contractor agrees to execute a complete work in all respects for a specific amount within a
specified time. The plans, drawings and specifications of all items will not be given and contractor will have to
complete the work as per plan and specification within contract period. On completion of the work, no
measurements will be taken by the department. The contractor will be paid the fixed amount as agreed by
checking the whole work in comparing with plan,drawing and specification.

Merits:
A] reduction in cost of construction due to competition of contractors.
B] The amount to be spent on the work is known accurately well in advance.
C] The contractor try to complete the work early as it is advantageous for him.

Demerits:
A] it is very difficult to make the changes in drawings and plans during the construction.
B] If the specifications and drawing are not clear, may lead to defective construction.

Item rate or unit price contract

In this contract the contractor under takes the execution of work at unit rates agreed at the time of tender. The
payment is made to the contractor by detailed measurement of the works in projects, maintenance of
buildings, irrigation projects etc.

Merits:

A] since the work is distributed there as item wise, there will be no disputes between the owner and
contractor.
B] Drawing and specifications can be changed at any instant at any time.
C] Finalisation of bill is done by taking the measurement of work done by the contractor which proves to be
economical.

Cost plus percentage contract:

In this contract the contractor is paid the actual cost of the building plus a fixed percentage for his overhead
expenses, services and profit. The contractor procures the materials and arranges the labourers at his own
cost keeping the proper account and he is paid by the department or owner the whole cost together with
certain percentage, normally 10% as his profit.

Merits
A) There is no chance of dispute for carrying out any extra item required.
B) The contractor can take the decision independently and the work can be completed quickly.
C) There is no major difference of opinion with the contractor and owner.

Demerits
a] The final cost can not be determined before the completion of the work.
bi The quality of work may be poor.
c} It is very difficult to calculate actual cost incurred by the contractor.The department/owner has to keep a
check over labour, material cost and quality of work.
 Labour contract
in this contract the contractor under takes only the labour portion of the work. All the necessary materials are
supplied to the site by the department or owner and contractor arranges his own laborers and get the work
done as per the specifications. The contractor is paid for the labour only on the actual quantities of the work
done measured under the item rate basis.

Merits
A) The materials stored by the department are thus utilized.
b) Since materials are supplied by department, better progress and standard quality can be maintained.

Demerits
a) There may be delay in obtaining the materials by the department.
b) A large storage area is required to store the different kinds of materials a constant guarding , etc. are
essential.
C) theft from store, shortage of materials, accounting responsible for all equipment are constant worries for a
department.

Negotiated contract
When work is awarded on contract by manual negotiation between the parties without call for tenders, it is
said to be a negotiated contract. In PWD, the contractors are negotiated only in special circumstances such as;
A] to obtain reasonable rates.
B] To meet the situation arising out of emergency such as construction of shelters for displaced persons,
strengthening runway for national defence etc at short notice.

39. EXPLAIN BRIEFLY SCALE OF CHARGES AND SCHEDULE OF PAYMENTS.

SCALE OF CHARGES
PROJECT SCOPE OF WORK FEES

Comprehensive architectural It includes architectural services as For single block of housing

services conditions of engagement. and site up to 0.5ht will
charge 5% of the work
assigned.
All projects under housing It includes site development For site more than 0.5ht and
up to 2.5ht fees chargeable is
minimum of 3.5%
Repetition of building blocks in Excludes landscape, interiors, 1. For site 2.5-5ht = 2.5%
the campus graphic design, project branding, charge
signage 2. Fore site more than 5ht=
2%.

Repetition of building at the --------------------||------------------------- Individual houses= 7.5%

different site
Site development --------------------||------------------------- 5% of work assigned
Architectural conservation, --------------------||------------------------- 2.5%of work assigned
restoration, addition of
alterations
Interiors, graphic design, signage As per interior architecture details 7.5% of the work assigned
Landscape architecture As per conditions of engagement for 7.5% of the work assigned
landscape
Site visits Visit by an architect in connection Air/AC first class, all boarding
with the project and lodging expenses along
with local transport

Advisory consultancy
Documentation & communication
of contractor bill
Verification and certification of
contractor bill
1000/- extra than local
charges for outstation
charges
One time basic consultation fee 4000/- for local and 5000/-
for outstation.
Applicable/ professional fee 10% of professional charges
Progress of work on the site, 1% of the project
measurement of work certified by
site supervisor or project manager
to check the work done is in
accordance to conditions of
contract, drawings and
specifications

SCHEDULE OF PAYMENT:
STAGE OF CONSTRUCTION SCALE OF FEE
Retainer: 5% of the total fee payable
on appointment/ signing of agreement/ accepting the offer.
Stage 1: 10% of the total fee payable
on submitting the conceptual design and rough estimate.
Stage 2: 20% of the total fee payable
on submitting preliminary schemes and estimate. (-) fee paid @ stage 1
Stage 3: 30% of the total fee payable
Drawings for clients/ statutory approvals (-) fee paid @ stage 1 & 2
Stage 4: 45% of the total fee payable
Working drawings and tender documents (-) fee paid up to stage 3
Stage 5: 55% of the total fee payable
Inviting, analysing, receiving tenders and appointment of (-) fee paid up to stage 4
contractors
Stage 6: 65% of the total fee payable
Construction (-) fee paid in previous
stages+
Charges for each stages of
completion of construction
works;
(i) On completion of 20% of
the – 70% of the total
payable
(ii) On completion of 40% of
the – 75% of the total
payable
(iii) On completion of 60%
of the – 80% of the total
fees
(iv) On completion of 80%
of the – 85% of the total
fees
(v) On Virtual Completion –
90% of the total fees
payable less the payment
already made at the
Previous stages.
 Stage 7: 100% of the total fee
Completion payable

40. WRITE A SHORT NOTE ON A]DEFECT LIABILITY PERIOD B]LIQUIDATED DAMAGES

C] UNLIQUIDATED DAMAGES.

Defect liability period(maintenance period)

Contractor is liable to rectify the defects during this period. It is a precondition for the releasing of
security deposit. For building works, this period maybe one year or more. For waterproofing works, it
may be upto five years or more. Employers should 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.

Liquidated damages
Liquidated damages clauses are used in many types of construction contracts,
A liquidated damages clause (or an agreed damages clause), is a provision in a contract that fixes the sum
payable as damages for a party's breach.

The Principal function of a liquidated damages clause is to quantify the damages payable in the event of
breach
of the contract. The clause will only be relevant once liability is proven or admitted.

In an action for breach of contract, to recover damages beyond nominal damages, damage must either be
proven or admitted. The advantage of a liquidated damages clause is that there is no need to prove the actual
loss, because the clause stipulates a pre-assessment or pre-estimation of damages.

Some of the advantages of including a liquidated damages clause in a contract are that it:
 provides certainty to the parties
 facilitates the recovery of damages by avoiding the requirement of proof of loss
 simplifies the dispute resolution procedure
 may induce performance of the contract.

Unliquidated damages

Unliquidated damages are a type of damages awarded as a result of a contract breach. They differ from other
forms of damages in that they are determined through court proceedings and not predetermined in contracts.
The main purpose of unliquidated damages is that they enable a party suffering from a breach of contract to
claim compensation for unforeseen losses. However, certain requirements must be met before such damages
are awarded.

Advantage:
It is beneficial to include a provision for unliquidated damages in a contract because it allows the client to
recover losses that were difficult to estimate or foresee before the contract was breached.
Disadvantages:
 The amount of unliquidated damages that a plaintiff is entitled to cannot be ascertained through a
mathematical calculation or formula. The only thing that is established is the plaintiff's right to claim
compensation.
 It obligates the client to prove his or her actual losses when a breach occurs, which can be a complicated
process. It also means that the contractor will not have any liability.
 The client is required to prove that losses are not “remote” but a natural result of the contract breach.

41. EXPLAIN THE IMPORTANCE OF CONTRACT DOCUMENT/ AGREEMENT.

Construction Contract Agreement
This is the principal agreement between the construction contractor and the private property owner or the
contracting officer for a business. It's the essential component of the bundle of various contract
documents—the main document to which most of the other documents attach or refer.

The contact agreement must contain the following details

1. Title page with name of work and contact number.
2. Index page giving the contents of agreement with page references.
3. Tender notice with description of work, location time, period of completion etc.
4. Bill of quantities and total cost of work.
5. Schedule of issue of materials giving list of materials to be issued to the contractor with rate and place of
issue.
6. General specifications giving the clauses and type of work.
7. Detailed specification for each item of work and materials.
8. Complete drawings with plan, elevations, site plan and other relevant detailed drawings- all fully
dimensioned.
9. Conditions of contract giving rate of labour, materials, tools, plants, progress rate etc.
10. Special conditions regarding nature of work, taxes, royalties, labour amenities etc.

42. DISCUSS ABOUT TYPES OF CERTIFICATES, PAYMENTS FOR SCRUTINY WORKS AND
ACTUAL MEASUREMENTS.
CERTIFICATES TO BE ISSUED BY THE ARCHITECT (IIA CONTRACT FORM)

General conditions of contract adopted by the Indian Institute of Architects

stipulate the issue of the following certificates by the architects at various
stages during execution of work.
1) Certificate for nominated sub-contractor (Clause 26)
2) Stipulated date of completion of sub-contractor’s work (Clause 31[1])
3) Interim certificate stating the amount due to the contractor (Clause 31-1)
4) Refund of half of retention amount on virtual completion of work (Clause 31-4B)
5) Final certificate (Clause 31-6)
6) Recovery towards rectification of defects by the owner when the contractor fails to rectify (Clause 57-2)
7) Stipulated date of completion (Clause 41)
8) Virtual completion (Clause 42-1)
9) Completion of making good defects (Clause 42-4)
10) Loss and/or expense (Clause 43-1 E)
11) Direct loss on determination (Clause 43-1 E)
12) Penultimate certificate

Payments of scrutiny works and actual measurements:

It is the Check for correct measurement of quantities, it can be stage-wise payment.It is a good practice to
stagger the dates for receipt and scrutiny of bills submitted by the contractors, sub-contractors, and vendors
to avoid crowding of bills in accounts section. Accounts section should peruse the contract agreement before
taking up scrutiny of bills.

It is done when;
(a) If the quantities are based on detailed measurements, arithmetical check is necessary to ensure that
correct quantities are incorporated in the bill.
(b) If it is a stage payment without recording detailed measurement, stipulation in the agreement is to be
perused. A certificate of an Architect/Engineer to the effect that particular stage of progress is achieved.
(c) If it is a payment for work done, but not measured, it will be an advance payment and a certificate from
architect/engineer is necessary stating that value of work done is not less than the value
of bill. It is essential to recover the entire advance in the next measured bill.
(d) If the bill is for payment of advance only, whether a provision exists in the agreement or not is to be
verified.

43. DISCUSS BRIEFLY THE ‘APPENDIX’ OF A CONTRACT DOCUMENT.

Appendix referred to in general conditions of contract:
The Architect is required to fill in particular stipulation in the following clauses as applicable to each tendered
work.
37.1. defects liability period: 12 months
31.5. period of final measurement and valuation: 3months
38.1. date of commencement
Date of completion
41.0. agreed liquidated damages
31.1. value of work for interim certificate
31.3. retention percentages
Limit of retention land
31.6. instalment after virtual completion
31.1. period of honoring certificate: 15 days
Rate of interest for delayed payment 7%.

44. DISCUSS THE ROLE OF CLERKS OF WORKS IN CONTRACT.(10M)

Clerk Of Works
Clerk of Works is an essential part of the site team who ensures the highest standard of quality on the
construction project. A Clerk of Works, also known as Site Inspectors, Quality Assessors or NEC Supervisors, is
there to inspect the construction works throughout the duration of construction.

A Clerk of Works provides an independent assessment of the works undertaken, checking the quality of the
build, M&E, structural and architectural works. They produce regular reports and a dialogue with the design
team. Reports include a site diary; photographic evidence; progression of the works against the programme;
site meeting information and highlight any potential risks.

Clerk of Works can be appointed directly by the end-client or sub-let through a project team member and can
attend the site on a full or part-time basis depending on project requirements.

Their role typically consists of:

 Checking all critical stages to ensure that the quality meets both the specification and the expectation of the
end user.
 Highlighting potential specification design issues for comments before they affect construction and
programme.
 Checking for component clashes.
 Giving a view on completion dates as work progress.
 Auditing workforce attendance if required.
 Reporting any unresolved concerns.

45. EXPLAIN THE ACTIVITIES CONSIDERED FOR AWARD OF CONTRACT.

On award of contract the following activities merit consideration:

(i) Obtain programme for execution of work (Bar chart or Network Chart)
(ii) Conduct periodic progressive meeting with client and contracts
(iii) Set time schedule for procurement of material
(iv) Deploy site staff for measurements of work done
(v) Approve sub-contractors and vendors
(vi) Focus on quality assurance and safety matters
(vii) Progress as per the programme. Compare fiscal progress with financial progress.
(viii) Analyze causes for cost and time overrun &suggest methods to overcome them or minimise them.
(ix) Certify payments interim and final
(x) Settle disputes amicably
(xi) Consultants should serve as a catalyst between client and contractor and ensure progress.

46. DISCUSS THE GENERAL CONDITIONS OF A CONTRACT.

General conditions of contract:

The following are the general conditions of the contract:

1. The rates agreed by the contractor should be for complete work including transportation, materials, labours,
tools, plants etc.
2. The contractor should deposit 10% of the cost of the work as the security deposit. The contractor may
deposit the entire amount at the beginning of the work or it may be deducted from the running bill of the
contractor.
3. The contractor should complete the work within the specified time otherwise liable for penalty.
4. The cost of the materials or equipment issued to the contractor shall be deducted from his running bill.
5. The work has to be done strictly according to the drawings and specifications issued by the authority.
6. The contractor may be terminated if unsatisfactory progress of work and part of security deposit will be
forfeited.
7. The work shall be open for inspection.
8. Compensation to the workmen shall be paid by the contractor for any accidents or damages.
9. The contract time may be extended by the department only on valid reasons requested by the contractor.
10. Extra items which is not included in the contract list must be paid as per schedule of rates.

47. DEFINE VALUATION. LIST THE PURPOSES OF VALUATION.

Valuation is the technique of estimation or determining the fair price or the value of the property such as
building a factory, other engineering structures of various types, land etc.
By valuation the present value is defined. The present value of property may be decided by its selling price, or
income or rent it may fetch. The value of the property depends on its structure, life, maintenance, location,
bank interest, etc.

Fiscal Purposes
1. Levy of property tax by local bodies.
2. To fix stamp duty for registration by the state government.
3. Levy of direct and indirect taxes by Central Government—(wealth tax and capital gains tax).
4. To ascertain the cost of construction (to check disproportionate assets) by Income Tax department.

Non-fiscal Purposes
1. For real estate purposes—Purchase for occupation, development or sale, speculation and for auction.
2. For partition among partners or family members.
3. To mortgage property as collateral security to obtain loans from banks and financial institutions.
4. For rent fixation under Rent Control Act.
5. For probate of wills in courts—Obtaining court orders for minors.
6. To grant compensation under Acquisition Act.
7. To assess loss in respect of insured properties due to natural calamities or fire.
8. For getting visa.
9. For Bank Guarantee, Security, Deposit and Earnest Money Deposit.
10. For valuation of disproportionate assets.

48. EXPLAIN BRIEFLY THE METHODS OF VALUATION

Land and Building Method

This method contemplates determination of fair market value of land and depreciated value of building. By
adding these two components, value of the property is determined. This method is useful in all normal
property valuation eases having no apparent restrictions on full enjoyment of the property.

(i) Measure plinth area of the building as per IS386I-I975.

(ii) Adopt plinth area rates of CPWD or state PWD and transform the rates by suitable adjustment For
valuation date, location and variation in specification.
(iii) Ascertain age of building and estimate total life of the building. Assume 10% as salvage value. Compute
depreciation by adopting straight line method.
(iv) Value of building component = Plinth area X Adjusted plinth area rate (-) Depreciation.
(v) Add suitable percentage for services.
(vi) Add market value of land component.
Thus, value of property is assessed. |{iv} + (v) + (vi)|

Valuation of land component

In urban areas, land constitutes important component values of immovable property. Land is evaluated on the
basis of orientation, shape & size of the plot, roads around the plot, surrounding, location.

Valuation of Flats [Composite Rate Method]

The term composite rate indicates the rate per unit area of the building in an apartment system along with the
proportionate share of undivided land. This method is followed in valuation of residential flats and
commercial complexes. Composite rate has two components, proportionate land component and the building
component. While comparing valuation of apartments, besides locality and land value, amenities provided by
the developer and specfications adopted are to be considered.

Development Potential Method

In this method, the potentiality of the land for immediate future development is considered to estimate die
present fair market value. This method of valuation is adopted to value large extents of vacant land in the
outskirts of cities and towns. It is also adopted when comparable sale instances of large extents of land are not
available but sale of small plots are available.

Rent Capitalization Method

This is the most appropriate method to determine value of tenanted properties, where the tenants enjoy
protection under rent control laws against eviction and enhancement of rents. In such cases the property
value can he split into two pans. One pan relates to right of occupation by the tenants and this is not a legally
saleable part. The other part relates to ownership of encumbered property which includes the right to receive
rents remaining with the landlord.

Profit Capitalization Method

This method is invariably applicable to single use commercial properties such as cinema theatres, hotels,
marriage halls and other properties, used in business ventures. This method deals with working out gross
profits and expenses in the form of outgoings. Reasonable deduction of 10 to 15% for the entrepreneur's skill
and efforts is also accounted.

Cost Approach-Market Approach-Income Approach

Cost approach is applied primarily with regard to service property which are not frequently exchanged in the
market or do not generate revenue by themselves. It is also useful on new or special purpose properties. the
logic behind cost approach is that a prudent investor would pay no more For property than cost of producing
a substitute property with the same utility.
49. EXPLAIN BRIEFLY ON DEPRECIATION
Depreciation means decline in value of becoming less in worth. An asset depreciates during its economic life
due to the following factors.
 Wear and tear due to constant use.
 Physical collapse due to age and exposure to elements.
 Obsolescence is loss of usefulness due to availability of fresh or more different type of products serving the
same purpose.
 Structural decay for buildings there will be very little depreciation during the first 5 years of construction.
 Decay
Depreciation is therefore, a premium for existence in the sense that decay cannot be avoided. Besides usual
wear and tear caused by the normal working and any asset, its use is liable to certain amount of deterioration
despite care and attention given on its maintenance and preservation. While some of the decay may be
possible to be controlled, it cannot altogether be avoided. This s taken as depreciation.

The following 3 methods may be considered to work out depreciation. They are
(1) Straight line method
(2) Sinking fund method
(3) Reducing balance method

50. WRITE A NOTE ON DEPRECIATION AND SINKING FUND

Depreciation method
This method implies that the amount written off as depreciation should be kept aside and invested in readily
saleable securities. The securities accumulate and when the life of asset expires, the securities are sold and
with the sale proceeds a new asset is purchased. The rate of interest which is easily calculated from sinking
fund tables.
Methods of calculating depreciation are as follows:
 Straight line method
 Constant percentage method
 Sinking fund method
 Quantity survey method

Sinking fund method.

The owner of the property will set aside a small sum every year during the life of the building. A period of one
year is assumed for rebuilding and the income lost during the period of rebuilding is also considered. Sinking
Fund Contributions are invested in risk free securities. The rate of interest adopted for dinking fund is decided
in background of yield on gilt edged securities.
Sinking fund consists of 2 components.
1) Annual deposits of reckoned depreciation
2) Compound interest on depreciation reserve.
The sinking fund with accrued compound interest should be sufficient to meet 9/10th cost of the replacement
(balance 10% accounts for salvage value) plus income lost during the period of replacement.

In this the depreciation is assumed of the property is assumed to be equal to the annual sinking fund for
that year.

Depreciation = annual sinking fund + interest on the sinking fund for that year.
If,
A, Annual sinking fund
b, c. d etc = interest on the sinking fund for the subsequent years.
C = original cost.

In this method of depreciation a depreciation fund equal to actual loss in the value of the asset is
estimated for each year.

This amount is inverted outside the business in a separate account sinking fund investment account and
interest will be earned on the fund.

The sinking fund will rise year by year.

The amount invested at the end of every year with a compound interest rate ‘r’ will accumulate to total
depreciation over the useful life ‘n’ years (i.e. to initial cost – salvage value)

If x is the annual sinking fund then

x[1+r]n-1+ x[1+r]n-2+ x[1+r]n-3+….+ x[1+r]n-n
Gives total depreciation.
Series sums to [{(1+r)n-1}/r]
Annual sinking fund = {initial cost – salvage value][r/[{( x[1+r]n-1}]