1.

UNIT 1:
INTRODUCTION TO
CONSTRUCTION
MANAGEMENT
Construction
1. To Understand Construction Management and Management
Project Management and their Importance in and Tenders
an Architect’s Professional Practice
2. To Understand the Different ways of Getting
Construction Carried out for your Project
3. To Understand Contracts, Tenders, Different
Kinds of Tenders and their Advantages and
Disadvantages
4. To Understand Prequalification, Empanelment
of Contractors and Procedures therein.
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Unit 1: Syllabus:
Introduction to Construction Management - Types and Systems of Tendering - Open and
Invited Tenders - Pre-Qualification and Empanelment procedures - Selection of Contractors

I would summarise this course of Professional Practice as Follows

Semester VII – Relationship between an Architect and his Client:
Semester VIII – How to manage Relationship between a Client and a Contractor:
1.1Importance of Construction Management
Construction is a vital process to convert an Architect’s Design into reality. Most Architects may find
this process a tedious one and not part of their creative journey specially the tendering and post
tendering Site Management process; however the process is an unavoidable part of an Architect’s
Professional Practice.
Let us once again look at the stages of an Architects service to his client in brief against the fees due
to him and draw some conclusions
Stage.1 Conceptual Design and Rough Estimate – 10% of fees
Stage.2 Preliminary Design and Estimate – 20%
Stage.3 a:Final Design Approval and Local Approval Drawings – 30%
Stage 3 b: Final Client’s approval necessary for construction Drawings making – 35%
Stage.4 Working Drawings, Specifications, Quantities take off etc. – 45%
Stage.5 Inviting Tenders, Receiving Tenders, Appointment of Contractors – 55%
Stage.6 a: Drawings necessary for Commencement of work – 65%
Stage.6 b: 1 to 5 – 20% to 80% to Virtual Completion of Work – 90%
Stage.7 Submitting Completion Report etc. – 100%
It can be easily seen that we as Architects receive only 35% of our fees up-to the Design Stage as
opposed to 65% i.e. major part of our fees is for the construction process. Though another way of
looking could be 55% is received for office work and 45% for site work. While it can be argued that
Design is a vital part of the Construction Process, and hence is the most important part of an
Architect’s Office work, the counter argument that deep knowledge of good construction practices,
Building technology, Services, Structures, Quantities take-off, Specification Writing, Tendering, Site
Management etc. should be as important to us. However neither do the academicians give these
subjects their due place nor do we as students accord them their due pedestal. Herein I am
lamenting the situation of our lack of interest and gathering of knowledge in these vital fields.
Herein I am citing the reasons for giving importance to Stages 4, 5, 6 and 7.
1.1.1 Preamble to Construction Management:
History: In the pre-modern times, almost up to the early 18th Century, building design and
construction was planned and executed by 'master-builders' or 'master-masons' who individually,
and often single-handedly, performed the duties of the Architect, the Engineer, and the Builder. In
all ancient civilisations - Greek, Roman, Egyptian and Indian - the contribution of such master-
builders like Phidias in Greece, Vitruvius in Rome, Imhotep in Egypt, and Ustad Ahmed Lahauri and
Mir Abdul Karim (builders of the Taj Mahal) resulted in everlasting monuments.

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Architecture of the early period, worldwide, was attributed to such master-builders who planned the
projects, designed the structure and details, chose the building materials and supervised and
monitored the craftsmen of the construction. All final decisions in respect of the project were taken
by these Masters. Even Sir Edwin Lutyens, in the last century, is renowned as the master-builder of
New Delhi - the Capital of India, and Le-Corbusier as the creator of Chandigarh.
20th Century Demands: In the 20th Century, however, Construction Technology rapidly evolved
with the use of sophisticated machinery and tools, the pace of introduction of new construction
materials also increased, and consequently, building construction projects became more and more
large in scale and volume, and complex in design and detail. It was no longer possible for any
individual Architect, Designer or Planner to 'manage' such large and complex projects in their own
personal capacity. As a result, 'Professional Management' soon emerged as a field of specialization in
all activities. Qualified 'Experts' trained in supervision, monitoring and control of Cost, Quality and
Time began to enter the field of Architecture and Engineering and Construction.
Need for Construction Management: Large building construction projects with huge capital
investments, a high level of technical complexity, and a rigid time-frame for completion and
commissioning, requires meticulous planning and co-ordination. In addition to efficient Finance
Management, corresponding Technical, Legal, Sales and Purchase, Human Resource and Time
Management became vital in the execution of such construction projects.
Every major building construction project today is strictly Time bound to deliver the expected return
on the investment, and legally bound to deliver superior construction quality and safety. Even large
Housing projects today have to be registered under the Real Estate Regulatory Act of 2016 which
legally requires the developer to abide by strict time schedules. Efficient Construction management,
therefore, has become vitally important.

1.1.2 Construction Management:

1. Construction Management is the process of planning, coordinating and providing monitoring
and controlling of a construction project. ... The stages are design, pre-construction,
procurement, build, and owner occupancy.
Construction Management (CM) is a professional service that uses specialized, project management
techniques to oversee the planning, design, and construction of a project, from its beginning to its
end.
Construction Management is both an art and a science, and is something that is usually quite hard to
do. It is hard because one has to look at a broad range of variables, and try and guess what effect
each variable will have on a construction project. For example, a construction manager in the middle
of a project will have to take into account the following.
• the weather,
• the availability of construction workers who may be sick or may not feel like showing up for
work,
• the fact that some materials are out of stock just when they are needed,
• the availability or non-availability of key equipment like cranes,
• changes made to the existing design by architects and clients the previous evening,
• juggling the work of 20 or more different trades at the same time,
• surprise discoveries of electrical cables below the ground that no-one knew about,
• inspections and permitting delays by government authorities

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It is the inter-relationships between all many variables and the effect they will have on the project
that creates complexity in construction management. Compounding these problems is the team
from the owners of the building, who often sits in plush offices far from the construction site, have
little understanding of the difficulties in building construction, and demand that the project be
finished before time.
It is these difficulties that make it both extremely challenging, as well as extremely rewarding if done
right.
Construction management is best done by people with a detailed knowledge of building
construction, such as civil engineers or architects. However some aspects of this work, such as
financial planning or procurement, can be done by people who do not have a construction
background. With enough training and experience, a layman can gain enough expertise to work as a
construction project manager.
Construction management can be performed by different agencies in a project. It can be done by the
contractors working on the project, by the owners of the project, by independent consultants hired
by the owners, by the designers of the project, or by the investors in a project. It is important to note
that each agency may have differing aims and motivations in a project. For example, a contractor
may want to increase the costs of the building, and an owner may want to decrease it. Independent
consultants may wish to delay the project, as they are paid a monthly fee to monitor it.
1.1.3 Fundamentals of Construction Management:
To understand Construction Management, it is essential to understand the basic fundamental
elements of building construction: THE "FIVE Ms" (The 5-M Theory)
Every construction project requires efficient administration of the FIVE "M"s -
1. Money
2. Manpower
3. Materials
4. Machinery
5. Management
1. Money Management:
Investment of Money is required for every building construction. This money may be invested by the
Owner / Developer out of his/her OWN resources OR the money may be borrowed as a LOAN from
Banks or other Financiers.
Investors in a project may be one or more, but ALL would be looking for a profitable RETURN on
their investment. It must be understood that the Commercial viability of any project depends upon a
fair return on the investment in a specific time span.
The Architects role in the Money Management of any project begins with the basic Design of the
project and Specification of the Materials and Finishes to suit the Owner/Client's budget. Achieving
economy in construction without compromising in the function, form or quality is the real challenge
before all Architects. Thereafter, when the construction commences on the project site, the
Architect is responsible for monitoring and controlling the project cost by curbing material wastage,
optimising time schedules, avoiding changes, eliminating extra items and preventing resultant cost
overruns.
2. Manpower Management:
All construction projects require human labour with various levels of qualifications, knowledge and
skills. From qualified and experienced Engineers to illiterate labour, the management of human
resources in construction is vitally important.
Deployment of human beings in construction projects carries a lot of risk and several legal and moral
issues about the safety and welfare of construction labour have to be addressed as an integral part

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of construction management. On a purely practical level, Construction Managers have to organise,

optimise and monitor the attendance and productivity of human labour, arrange for their financial
remuneration in proportion to their measured output, or on daily wage basis, or on a monthly
salaried basis for employed staff. Manpower management contributes significantly to construction
cost.
The Architects Role in Manpower Management on construction project sites involves monitoring
attendance and adherence to the Safety standards stipulated and specified in the Construction
Contract between the Owner and Contractor. The Architect also inspects and approves the hygiene
and welfare facilities in the labour colonies on site, and monitors compliance of legal welfare
provisions for labour like Insurance and PF. Resolving disputes on construction sites and functioning
as the first 'Arbitrator' is also a part of the Architects role in personnel management.
3. Materials Management:
Specification of building materials and monitoring the Quality and Quantity the materials used in
construction has a significant impact on both, the Cost and Quality of the project
Materials Management, therefore, is an important component of project Management and efficient
systems of material selection, procurement, delivery, storage and utilisation have to be developed
and established in all major building construction projects.
As a part of Materials Management, the Construction Manager on site has to ensure and record
timely deliveries of all building material, check and approve its quality, store the material securely as
per requirement, control and record the material consumption, place orders for continuing
procurement in time, and constantly monitor workmanship.
The Architects Role in Materials Management primarily begins with specification of the type, brand
and quality of every material to be used in the construction. Decisions in respect of the choice and
specification of building materials can seriously affect the COST, QUALITY and the TIME required for
construction. Hence this is one of the most important and challenging tasks for an Architect. During
the construction phase, the Architect has to inspect, accept and certify the QUALITY of all the
materials used in construction (or reject the same if found to be sub-standard in quality).The
Architect also checks and approves the storage of material on site, and monitors the wastage, if any.

4. Machinery Management:
Decisions to use of sophisticated construction tools and technologically advanced machinery for
improving the quality of construction, or for increasing the speed of construction, or for economising
the cost of construction, is essentially the prerogative of the Contractor / Builder. Procurement,
deployment and efficient use of construction machinery, along with the employment of skilled
manpower required to use and operate such machinery becomes an important activity in
construction management.
Today, with the advancements in technology, sophisticated Machinery is available for construction.
Tower Cranes, high capacity Dozers and Dumpers, Excavators and Pile Boring machines, Construction
Elevators, Stackers, Jib Cranes, Goliaths and Bob Cats, are today being extensively used in building
construction. In the near future, Robotics is likely to play a big role in construction for bricks / blocks
/ tile laying, plastering, flooring and various other construction activities, with minimal use of human
manpower. Skilled manpower is soon likely to be replaced by superior skilled machinery.
Architects Role in Machinery Management: Accepting and adopting the technologically developed
machinery for construction remains the decision of the Architect as per his Role and Responsibility
as the controller and monitor of the construction project. Technological advances in building
construction such as installation of efficient Building Management Systems (BMS), use of Pre-Cast /
Pre-Engineered Building technology, Use of high-tech machinery and Computerised tools for
construction, such as Total Station surveys, Laser Measuring Tools, Automated Excavation de-
watering, Mechanised Plastering, Floor laying, and use of efficient wood and steel hardware tools is
required to be approved and permitted by the Architect.

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5. General Management of Overall Construction:

Efficient Construction Management is required in every Building Construction project with very
specific end objectives:
a) The Construction Project has to be completed in a specific span of TIME.
b) The Construction Project has to be completed within a specific accepted COST.
c) The Construction Project has to be completed with acceptable construction QUALITY
Architects Role in Overall CONSTRUCTION: Since all three objectives are part of the primary Role
and Responsibility of the Architect, it is very important that every Architect acquaint himself / herself
of the means and methods of achieving these end objectives. Construction Management is also vital
for translating the Architects Design into a built reality on the construction site.

1.2Project Management.
Project Management would apply all the above and more to a Project. The main difference is the
level of authority. A CM oversees all construction activities. The project manager has greater
responsibility to the project, as he/she oversees more than the construction process. Therefore, a
project manager will often supervise a construction manager.
At the outset, a clear distinction needs to be made between the terms “PROJECT” Management and
“CONSTRUCTION” Management.
A “PMC” – or a PROJECT MANGEMENT CONSULTANT is a person or organisation who may be
engaged by the Client / Owner from a very early stage of a 'Project'
A Project Management Consultant or Agency is often appointed at the beginning of a development
project to assist the Owner / Developer for the following:
• Identification and assessment of commercial viability and investment potential,
• Identification, negotiation and Procurement of the required Land as per suitability,
• Arrangement of Finance for the project - including Negotiation with Banks,
• Appointment of the Architects, Planners, Designers and all other Consultants,
• Preparing a project Brief based upon surveys and research in potential assessment,
• Procurement of all official / legal permissions and sanctions from all Authorities,
• Value Engineering, selection, approval and procurement of all construction Materials.
• Evaluation and Appointment of Contractors and sub-contractors for construction
• Planning and Monitoring of the Construction schedules - setting of Time deadlines.
• Supervising and controlling construction Quality - jointly with the appointed Architect.
• Providing all legal and technical services to the Owner / Developer up to completion.

There is a growing trend worldwide to appoint Project Management Consultants for large projects
where the financial investment and complexity of construction is very high
1.3Construction Management and Project Management:
Essential Differences between the two i.e. Construction Management and Project Management
would be as Follows
1. CM looks after construction only: Construction managers will manage only the construction
portion of the product. The CM is an expert in building trades including electrical, carpentry,
plumbing and general construction. They oversee day-to-day operations from pre-
construction through the project punch list. Essentially, a CM is a project manager with a
specific area of knowledge.

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2. CM looks after the labour: A construction manager is involved in personnel management at

the construction site. The CM will ensure that materials are delivered on time, that tools are
available and that resources are properly allocated.
3. PM looks after all aspects: A project manager runs all aspects of the real estate project. This
includes everything from the initial planning, site selection and analysis, design,
procurement, construction and the physical move. Because the PM is responsible for the
project budget and schedule, it is beneficial to have an independent resource. The PM will
be keenly aware of anything that will extend the project schedule and inflate the project
budget and aims to mitigate those risks.
4. PM is into the Project right from the start: A project manager is brought on at the inception
of a real estate project and therefore has a comprehensive understanding of the client’s
goals. A project manager works very closely with the client to gain a comprehensive
understanding of all aspects of the real estate project. More than knowing what the client
needs out of their physical space, a project manager has the knowledge from the client to
understand the specific needs so that the end result is precisely what the client wants.
5. Level of Authority: The main difference is the level of authority. A CM oversees all
construction activities. A PM supervises the CM. The project manager has greater
responsibility to the project, as he/she oversees more than the construction process.
Therefore, a project manager will often supervise a construction manager.

Having understood the basics of Construction Management and Project Management let us now
proceed to how an Architect performs his role in the construction of the building/buildings he has
designed.
Architects role in General Construction Management: Professional Architectural work is always
divided into two distinct Phases and Places: In Office and on Site:
a. Phase-1: In the Architects Office:
Activities which an Architect does in the initial phase of every project happen in the Architect's
Office and Studio. These activities include Discussions with the Owner / Client, Architectural
Planning, Designing, Detailing, Specification, Quantity Surveying and Cost Estimation, Preparation of
drawings for approval and official sanctions, Tendering, appointment and execution of the
Construction Contract between the Owner and Contractor, etc., and preparation of Working
Drawings for construction purpose.
This first phase involves extensive discussions with the Client, Specialist Consultants, and colleagues
in the Office. Activities in this phase of a project require the Architect's skills in Designing, Detailing,
Specification, Quantity Surveying, and Estimation of Cost, and efficient administration and personnel
management of the Office. Upon completion of this first phase, the major activities of the Architect
move to the construction site.
b. Phase-2 : On the Construction Site :
The second phase of construction phase begins after the above stage when a Contractor is
appointed to build the Architect's Design. The Architect being largely responsible to ensure complete
the construction within a given span of TIME, with acceptable QUALITY, and within the COST
accepted by the Owner, has to periodically visit his construction sites to inspect, supervise, monitor
and control the construction. This Second stage of construction, therefore, requires the Architects
skills in efficiently MANAGING the construction phase, as above, to achieve the desired objectives

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Before moving ahead let me add a small note:

Why is the Construction Process Important to an Architect?
1. Best Promotion Technique for your firm: The Completed project is a testimony of your
Design Skills and how you brought them to Reality. A Completed project can serve as an example
of what your design skills complimented by your deep knowledge of Building Technology,
Services, Structures and Materials can achieve. You can showcase your building, show the same
to Potential clients and gain new ones.
2. End User Satisfaction: We had already talked about End User Conflict in the last semester,
wherein you are designing for a Client who is not the end user of your building. We need to
evaluate whether the end user who is occupying the building is satisfied in his human needs of
the building you designed for his wants. This end user will testify whether the systems of
services you installed, building technology and materials you used are really working for him the
way you intended them too. You can also take responses from these users and document them
3. Evaluating your own design skills: Remember when you started to Design you set some goals
and also achieved them in some part or percentage. The Construction Process complete will help
you to evaluate whether you have partly and to what extent managed to achieve those design
goals you set up for yourself
4. Documenting and Exhibiting: You can now document your building as a successfully
completed project. The well clicked (Good idea to employ a professional photographer)
Photographs can now adorn the walls of your Reception for your clients to see and feel good
about having retained the proper architect for their own work. The client being a non-technical
person is always in a state of quandary as to whether his decision of having employed you as the
architect for his job has been right or wrong. He will come to know of the same on occupying or
selling the building he has commissioned you for. His faith in you is reinforced by the completion
and occupation of a building that you have done for another client. In the initial phases of one’s
career this client faith building should be one of our main concerns.
5. Web Site Updating: We had also decided to launch our web site. This Site promotes our firm in
this Digital Age. The web site can be updated with the snaps of this new building and also end
user responses.

For carrying out any Construction a Contractor needs to be appointed.

1.4Appointment of Contractor: There are two basic methods.
1. Direct Assignment. 2. Tender Process.
1.3.1 Direct Assignment: A construction/Interior/Landscape job can be allotted by the
Owner directly known to him or on the recommendation of the Architect Consultant to a
Contractor or an agency.

Basis of Appointment: This appointment may be done on the basis of:
a. Reference: Suggestions from Friends and Relatives may be used as Reference.
b. Recommendation: The Architect or Structural Consultant may recommend an Agency to the
owner
c. Direct Approach from Contractor’s Side: The contractor may voluntarily approach the owner
with an offer to build e.g. A Contractor already constructing bungalows in a plotted layout may
approach all the adjacent plot owners or an Interior Contractor carrying out the works for one

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Office in a Commercial building may approach any new Owner who happens to buy an office
space in the same building.
d. Advertisement: The owner can advertise in the local newspaper for a contractor.
e. Direct Approach from Owner’s Side: The owner may approach or select one of the contractors
doing similar work nearby

Systems of Work in Direct Assignment:

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

Advantages in Direct Assignment

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

Disadvantages in Direct Assignment

a. There is no comparison in Selection of contractor and hence a doubt as to the quality and
the economy – This disadvantage can only be overcome by the process of Tendering.
b. There is no assurance of Quality, Reliability and timely delivery of works.
c. There are very few instances where legal paper work is done between the contractor and
owner and hence proves a risky proposition to the owner.

Most Architectural offices have a number of contractors empanelled with their firm for small jobs.
They may
1. Float an informal tender and allot a job
2. Fix up rates for various items and give jobs in rotation to the contractors
3. May ad-hoc allot a job based on the fact that a contractor is most suited for that kind of job
4. May have an internally modified procedure for allotting jobs.

Before we go into the next part that is Tenders, I would like to talk a little about Negotiated Deals
between a Client and Contractor (may be the Architect does help in getting such a deal finalised). I
have added this short note as many times in Corporate, Institutional works or even Government
works this system adopted.

Negotiated Deals or Contracts: Negotiated contracts are obtained by the employer inviting a
contractor of his choice to submit prices for a project. Usually this is for specialized work or when
particular equipment is needed as an extension of existing works, or for further work following a
previous contract.

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Sometimes negotiated deals can be used when there is a very tight deadline, or emergency works
are necessary. A negotiated deal has a good chance of being satisfactory because, more often than
not, it is based on previous satisfactory working together by the employer and the contractor.
When invited to quote the contractor submits his prices, and if there are any queries these are
discussed and usually settled without difficulty. Thus mistakes in pricing can be reduced, so that
both the Architect advising the employer and the contractor are confident that the job should be
completed to budget if no unforeseen troubles arise.
However, negotiated deals for public works are rare because the standing rules of public authorities
do not normally permit them. But a private employer or company not subject to restraints such as
those mentioned in the next section can always negotiate a contract, and many do so, particularly
for small jobs.
Even when a negotiated deal is adopted it is usual to prepare full contract documents so that the
contract is on a sound basis. Production of the documents also means they are available for open or
selective tendering should a negotiated contract fail, or should the chosen contractor be unable to
undertake the work

1.3.2 Tender Process:

Tender: A Tender is a Voluntary commercial offer made by a willing person or organization to
provide material and /or services in response to specific requirements expressed by another person
or organization on mutually accepted terms, conditions and stipulations: culminating in a sealed and
signed contract agreement and a mutually satisfactory achievement of the desired objective within a
specified duration of time.
Another Definition: It is an invitation from the owner to the contractor to execute some work at
specified cost in specified time. It is published in the form of tender notice in news-papers, notice
boards, etc. according to the cost of works
Contract: A Contract is a legal document that formally confirms in writing with a seal and signature,
an agreement that binds two parties in a firm commitment in accordance with mutually accepted
terms of reference, in respect of the scope, quality, duration and cost of the construction project.

A TENDER NECESSARILY CULMINATES INTO A CONTRACT AGREEMENT BUT A CONTRACT

DOES NOT NECESSARILY REQUIRE A TENDERING SYSTEM OR PROCESS.
Tender Process: it is a vital process to convert an Architect’s Design into reality. Most Architects
may find this process a tedious one and not part of their creative journey; however the process is
unavoidable part of an Architect’s Professional Practice.

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

1.3.3 What is the primary purpose of tendering?

The primary purpose of a Tender is to identify and appoint a suitable Contractor, Service provider or
Supplier. A Tender, as a generic term, is not necessarily used only for inviting commercial quotations
(or 'offers', or 'bids') for building construction as a ‘service’. The term 'Tender' is also commonly used

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to invite commercial offers for the ‘supply’ of any material, and, even for providing some services
other than construction.
Some important Features of the Tender Process are noted down below.
• Transparency: In the context of building construction –Tendering is the fair and transparent
process of inviting commercial or financial 'bids' or 'offers' in the form of a 'Quotations' from
various building Contractors for the purpose of Comparison, Evaluation, Selection and
Appointment for a construction project
• Minimum Number: In view of the above concept and objective, a minimum of THREE offers or
quotations are necessary to qualify as a 'Tender'. If less than three quotations are received in
response to the invitation, the Tender should be cancelled and recalled to establish fairness.
• Minimum Contents: A construction project 'Tender' therefore, usually refers to the Document/s
containing all the details of the building and development project, the terms of reference for
construction, and the conditions of the construction Contract.
The Tender document would also contain the detailed specifications and quantities of the
proposed construction and set the time frame for construction. Most construction Tenders also
include the drawings and details to assist the Contractor in clearly understanding the project for
competitive quotation.
• Best Offer: The financial offers received are then compared, evaluated and scrutinised to
identify and select the ‘BEST’ offer amongst the bids received, depending upon a pre-decided
selection criteria for the project.
• Advantages: Competitive Cost, Superior Quality of workmanship, and Efficiency in Time
management are generally the three most predominant criteria for the award of building
construction contracts.
• Lowest Quote? : It is, however, NOT necessary that the lowest quotation in terms of Cost to
the Owner would be selected as the 'best' offer. Superior quality of construction, or Speed and
Time requirement are also equally important criteria.
• Contractor Qualities: However, in the final evaluation of the Tendered bids, other
considerations such as Technical qualifications, years and type of Experience, Financial strength,
equipment and manpower, and overall reputation and track record of the Contractor are also
given due consideration and weightage for selection.
• Who is the Author: Construction work Tenders are usually drafted and prepared by the project
Architect in consultation with his Client /Owner, and other technical Consultants?
However, work Tenders may also be prepared and 'floated' ( issued ) by a professional Project
Management Consultants (PMC) in consultation with the Owner and the project Architect -
especially in case of large complex projects.
• Tender to Contract: Once a Tender is ‘awarded’ to a Contractor, the document, duly signed,
becomes a part of the legal CONTRACT between the Owner and the Contractor.

1.3.4 What is the Entire procedure of tendering?

1. Pre-tender Stage 1: Design Finalisation: The Design is Finalised, Estimate is Worked Out,
Specifications are Written and Quantity take off is done
2. Making the Tender Document: The Conditions of Contract are thought of and recorded,
General Material Specifications etc.. go into the making of the tender document.

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3. Tender Notice: A tender notice is published in the newspapers and contactors publicly
invited or Selected Contractors (short-listed through the 'Pre-Qualification' process ) are
informed of their pre-qualification and selection and invited by Letter to purchase the
Tender Documents from the Architect or the Owner. The Contractors and informed the last
date and time and place for returning the Tender documents with their Quotations.
4. “Pre-bid meeting" is called to clarify any doubts or queries from the Contractors participating
in the Tender process. A Pre-Bid meeting is generally called after giving the Contractors a week
or more time to study the Tenders thoroughly first. The decisions and replies given in such a Pre-
Bid Meeting are circulated to all the Contractors for the purpose of transparency and parity
5. Submission of Tender and E.M.D (may be optional): The Tender Document is required to
be returned by the Contractors with their QUOTATION of Rates and Amounts in the Bill of
Quantities (BoQ), and submitted to the Architect or the Owner in a Sealed Envelope. A formal
Receipt stating the Date and Time of receiving the Sealed Tender is given in acknowledgment
An Earnest Money Deposit (EMD) amount - approximately equal to 0.1 % of the estimated
project cost is required to be paid by the Contractor by Cheque or DD along with the Tender to
establish the authenticity of the offer. Tenders submitted without the E.M.D amount are NOT
accepted. The EMD Cheque is to be submitted separately outside the sealed envelope
containing the Tendered Quotation.
6. Tender Opening: After the given last date and time for submission of the Tenders, the sealed
Tenders are opened by the Architect in the presence of the Owners and at least two witnesses.
At the absolute discretion of the Architect and the Owner, the Contractors may or may not be
allowed to be present and witness the Tender Opening ritual event. The Quotation amounts are
read out, recorded and a Tender Opening Report is prepared and signed by the Architects,
Owners and all the present Witnesses
7. Scrutiny of Tenders: The Tenders are then taken by the Architect/Engineer for scrutiny and
verification for arithmetical and technical errors, and, after a thorough study and analysis of the
quoted Rates and Amounts, a Scrutiny Report is prepared for submission to the Owner. In this
Tender Scrutiny Report (TSR) the Architect generally recommends the selection of one
Contractor for AWARD of the construction Contract, or recommends further negotiation.
8. Post Tender Stage 1: Letter of Intent: The selected Contractor is then informed of his
selection by a Letter Of Intent (LOI) The Contractor is also informed that his EMD amount is
being accepted and he is asked to further deposit the difference between the EMD amount and
the initial Security Deposit to make up the 50 % component (which is approximately 2.50 % of
the total project cost) of the total 5 % Security Deposit.
9. Post Tender Stage 2: Award of Work: Upon receipt of the Initial 2.50 % Security.
Deposit amount, the Contractor is issued a Work Order (WO) - also sometimes known as
a 'Purchase' Order (PO) in Corporate terms - which declares and confirms the Award Of The
Contract. The Contractor is then invited to execute the Contract Agreement with the
Owner, and asked to begin 'mobilization' of his manpower, machinery and materials to start
the construction activities on the project site. A 'Mobilisation Advance', recoverable from his
subsequent RA Bills, may also be given to the Contractor to commence work on site.
10. Post Tender Stage 3: Start of Work: The Contractor may then proceed to clean and prepare
the project site for construction work, set up a Site Office, Labour Colony and make provisions

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for material storage, water storage and power supply, and, thereafter, begin excavation for
foundations after a formal 'Bhoomi Puja', or ground breaking ceremony, on the 'muhurat'

The terms like E.M.D, Letter of Intent, Security Deposit, Mobilisation Advance etc. are
explained in detail in Unit 2

For a successful exercise in CONSTRUCTION MANAGEMENT, it is necessary for an Architect to

understand the relationships triangle on a Construction.
So now let’s discuss the role of each of these in the entire process:
Owner: who owns the land and funds the project with the help of advisors and financiers. The
Owner decides the requirements of the project (the Design Brief) and approves the Estimates of
construction Costs provided by the Architect.

Role and Responsibilities of the Owner:

The Owner has to appoint an Architect for the Project

The Owner May also appoint other Consultants or Advisors.

The Owner has to have the Land for building construction and provide the Architects with all
legal Property Documents.

The Owner has to decide his Requirements (Brief) and communicate them to the Architect for
translating them into a Technical / Architectural Design

The Owner has to arrange for finance to pay for the Construction, and to pay the Fees of the
Architects and other Consultants / Advisors that he may appoint.

The Owner has to Pay for a Site Supervisor (Clerk of Works) for daily monitoring

Finally, With the technical help of the Architect, the Owner has to apply for legal permissions
from the Local Authorities and pay all the fees, taxes and charges required for approvals

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The Architect: who Plans and Designs the project in consultation with the Owner and allied
Technical Consultants, Specifies the materials, works out the Quantities, Estimates the
construction cost, procures official Approvals and Sanctions from the Authorities, and,
thereafter Supervises and Monitors the construction on site

Role and Responsibilities of the Architect:

An Architect is appointed by the Owners / Clients to Design And Technically translate their
dreams and desires into Architectural Drawings, Structural Engineering systems, Essential
Services, Quantities, Specifications, etc. and finally, into a Built Reality!

An Architect is also expected to Design buildings in accordance with Development Control Rules
and Assist the Owner / Client in obtaining official initial Building Permission and the final
Occupancy Certificate from the Local Municipal Authorities and to certify the Quality of the
construction and its fitness for Occupation by the Owner.

Finally, An Architect is supposed to assist the Owner / Client in Appointing a Contractor for
construction, and Monitoring and Supervising the Quality, Cost and Time of the construction

The Contractor: who quotes the price for construction, enters into a Contract with the Owner to
construct the project at a committed Cost, with required Quality and within a given span of Time, by
providing the Labour, Materials, Tools and Machinery and Technical expertise to construct the
building as per the Architects design

Role and Responsibilities of a Contractor:

A Contractor is so called because he undertakes to execute a building project ‘Under Legal
Contract’, sealed and signed with the Owner.

The Contractor is normally expected to be Qualified in Civil Engineering and should, ideally, have
adequate field experience of Construction Work

The Contract is a legally enforceable Agreement between the Owner and the Contractor to carry
out the construction work in return for some money.

The Contractor is expected to study the drawings, details, specifications and instructions and
Quote his rates / charges for construction.

He is also expected to study and understand the Terms of Contract stipulated by the Architect
on behalf of Owners, and strictly abide by them.

The Contractor is primarily responsible for the Speed, Quality and Cost of the project as per
Commitment in the Contract, under supervision of the Architect.

1.4Essential Parts of a Tender:

1. Name and registered office of the Owner, Architect, Quantity Surveyor and other major
consultants.
2. Full details of work for which the tender is called, i.e.: location of site; and general description
of work and some indication of size, including specific requirements.
3. Letter of Invitation to the Contractor.
4. Pre-Tender Instructions to the Contractor.
5. Draft of Covering Letter for Submission of the Tender.
6. Draft of the Offer Letter from the Contractor.
7. Salient features of the Tender.
8. Special Conditions of Contract
9. Special Conditions of Safety and Security
10. Acceptable Brands/Make of Materials.

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11. Particular Specifications.

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

Primary Objective of the Tender Document is to give maximum information and clarity of
understanding about the project to the bidder contractor, before he quotes his rates for the price of
construction. Every condition or demand will have an impact on the price quoted. Hence every
clause that will affect the cost of works must be clearly presented.
Every word, sentence, grammar must be thoroughly checked to ensure that there is no
misunderstanding or ambiguity. Statements must be clear and Language must be simple.
The contents of the Tender Document and the drawings included in the tender become LEGAL
BINDING and commitment both for owner and contractor.
The Techno-Legal contents of the Tender become a part of the contract agreement which is to be
eventually signed by both the Owner and Contractor.
The Architect should ensure that the information in the Tender in the form of Specification, Items,
Quantities, Drawings are adequate and appropriate to interpret his design into Reality.
The Architect is the Arbitrator between the contractor and the Owner and hence must prepare the
Tender in a manner that
• It protects and safe guards the client from being cheated in any manner w.r.t cost, quality
and time
• It allows the contractor adequate opportunity to carry out the work with a fair and
reasonable amount of profit.

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1.5Tender Principle Systems or Tender Types (Based on Participation by

Contractors)
1.5.1 Tender Principle Systems

Open Tender Invited Tender

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

(Open to all applicants) (Open to Eligible (Open to only Invited (Open to only
Applicants Only) Applicants) Prequalified
Applicants)
1. Un-Restricted Open Tender.
System: This is a system where offers are invited by public advertisement in newspaper from
anybody who may read it and respond without any restriction whatsoever. No eligibility criteria
prescribed and anybody can apply and submit a quotation for the work.
A bidding process that is open to all qualified bidders and where the sealed bids are opened in public
for scrutiny and are chosen on the basis of price and quality. This Procedure is also called
competitive tender or public tender.
Application and Advantages: In most public works, institutional works this is the most prevalent
system. It is easy to implement and widely acceptable. It is an extremely transparent system quite
difficult to corrupt
Disadvantages: Generally in this system the lowest bidder is assigned the contract and hence could
lead to low quality construction in absence of proper Supervision and Quality Control Measures.
Many Reputed Contractors refrain from bidding in such a System as they believe that would be
bidding against low quality construction contractors and would definitely be out bid. Filling of a
tender is a Costly and Zero Return Process (in case of not being awarded the contract). Hence many
bidders analyse a given situation of bidding before applying for the same.
From an Architect's point of view, Open Tendering becomes a nightmare for selection of a good and
reliable Contractor because, the inexperienced Contractors tend to quote very Low rates for
construction (just to GET the job), while the experienced Contractors quote fairly High to cover all
risks and provide more reliability. The dilemma before an Architect is, therefore, to choose between
COST and QUALITY
Opposed to an Open Tender is Limited or Restricted tendering, which is a procurement method that
limits the request for tenders to a select number of suppliers, contractors or service providers. This
method could be further classified as
2. Two Envelope Open Tender.
This is a system where offers are invited by public advertisement in newspaper from anybody who
may read it and respond after he finds himself fitting in the eligibility criteria. The bidders submit
two envelopes, one containing the profile and proof of eligibility (often called as the Qualitative Bid)
and a second envelope containing the quotation and bid for the work (often called as the
Quantitative Bid). The Envelope containing the Quantitative Bid is opened only of those bidders who
qualify in the Qualitative Bid. Those who do not qualify in the Qualitative Bid have their EMD
returned to them immediately.
Application and Advantages: Used in many public works where Quality is as important as lowest
cost. The Tenderers are assured that their bid will be compared with those Contractors who assure
of the same Quality or have similar experience. This system of Tendering offers a lesser risk to the
Owner

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Disadvantages: New Contractors may not be able to qualify for this type of Tender and hence young
blood and their enthusiasm are not given a chance.

3. Tender by Specific Invitation.

This is a system where a few contractors are shortlisted on the basis of predetermined eligibility
criteria decided by the owner and architect. Only these are then specially invited to bid.
While exercising powers of Predetermining or Inviting Specific Contractors, the following
conditions should be fulfilled.
• The minimum number of contractors to be borne on the approved list should not be less
than some predetermined number
• The approved list of contractors should be up-dated annually, without fail.
• Notwithstanding the provisions above, the Owner or Government may invite open tenders
in the following circumstances:-
 In the event of in-sufficient response to the tender from the contractors borne on the
approved list.
 When the work is of special nature and contractors with requisite experience are not
available on the approved list
 When ring formation is suspected.

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

Prequalification Process and Empanelment Procedures

Prequalification is an objective assessment of the capacity of the bidder’s company to complete the
work required.
Prequalification ensures that only appropriately skilled and experienced entities, with suitable
management systems in place, are permitted to submit tenders for certain categories of contract.
This gives tenderers confidence that they will not be bidding against inexperienced entities. The
Owners can have confidence that tenders will be received from entities previously vetted as
financially and technically sound.
The Owner or Client publishes an advertisement in the Local Newspapers inviting applications for
Pre-qualification. The Public notice in local Newspapers establishes the required transparency in the
process of selection. Any former contractor or form can apply for pre-qualification in response to the
advertisement.
The purpose of shortlisting is to reduce the number of bidders to generally between three and five.
Bidding for a big project, especially a complex one, is a costly undertaking for a bidder. Evaluating
bids is also a time-consuming exercise for the Authority and its advisers. The aim of the bidding
process is to maximize competition, not the number of bidders. Just as the presence of too few
bidders results in poor competition, the presence of too many bidders on the shortlist may reduce
the interest of some in participating and cause good bidders to drop out.
The public notice for prequalification could provide the following
1. Broad Details of the Project and Date and Time of Response. The wording of the brief project
description contained in the notice should be broad enough for it not to needed to be
subsequently changed (which might then require the process to start all over again)

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2. The Notice calls for only Information of the contractor and not the quotation of prices.
The information called for from the contractor is to establish his financial and technical
credentials to take up and complete the job and could be as follows
Company Profile Provide background information on your company in the following areas:
• Organizational structure
• Stability of organization
• Senior management
• General performance
• Certified management systems.
Financial Capacity Prove your company's financial viability over both the short and long term.
Company Experience Provide details in the following areas:
• Past and current projects
• Contract completion
• Project management
• Partnering/relationship management
• Community/stakeholder engagement
• Utilization of management systems
• Traffic management
Technical Capacity Demonstrate technical capacity to undertake works in the nominated
prequalification categories i.e. experience in relevant work, evidence of sufficient
staff, appropriate plant and equipment.
All the above details could be asked in the form of a questionnaire or PROFORMA
3. Scrutiny Sheet. This is to be used in the process of evaluation and assessment of confidential
information required.
The Tenders are then issued only to the Pre-Qualified Agencies who are equally competent of
executing the
work.
1.5.2 E-
Tendering - An
internet based
process wherein
the
complete tenderin
g process; from
advertising to
receiving and
submitting tender-
related
information are
done online. This
enables firms to be
more efficient as
paper-based
transactions are
reduced or eliminated, facilitating for a more speedy exchange of information.

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1.6B-1Type, B-2Type, C-Tender (Lump Sum Tender)

1. B-1 Tender (Percentage Tender)
Method: In this type of Tender the quotations are invited in the form of a percentage above or
below a pre-declared estimate of cost of the project. Along with the tender are given detailed
drawings, item specifications, item quantities, item rates and amounts. Also are given terms and
conditions of the contract. In this system the contractors are required to quote single percentage
either higher or lower at which he wants to execute the job. Here scrutiny of the tenders become
easier
Where Used: The B-1 (Percentage) Tender is popularly used in Government Projects which are
generally based on the District Schedule of Rates (commonly known as the DSR). It is very
advantageous in standard designs or in case of repetitive designs
D.S.R: The DSR is a document containing specifications of all construction Items of work along with
their Rates, provided every financial year for every administrative District. The DSR is published
every year by the State Government's Public Works Departments (PWD) for all Districts in the State.
In the DSR, every Item Specification and its Rate is identified by a specific Item Code Number. The
DSR is generally used for Tender preparation, Cost Estimation and Billing of all construction and
development projects of the PWD in every administrative District of every State.
The Government of India, through the Central Public Works Department (CPWD), also annually
publishes a Schedule of Item Specifications and Rates for use in all Central Government projects in
the country, and for projects in all Union Territories. Since all the construction Items in the Bill of
Quantities of a B-1 Tender is based upon the relevant DSR, the specifications and the rates are
provided to the Contractors in the Tender.
How does the Contractor Quote?: Every Contractor has to only check the given item quantities
and evaluate the given DSR rates with respect to his own overheads and costs, and with respect to
market fluctuations, and estimate his own project cost. This has to be given in terms of a Percentage
above or below the given estimate of cost in the Tender. Thus, some Contractors may quote a few
Percentage Below the given cost, while some may quote a few Percentage Above the given cost.
Advantage: For an Architect, the commercial scrutiny and assessment of a B-1 Tender is easy
because only the percentage above or below the given cost is to be compared. Most B-1 Tenders are
awarded to the contractor quoting the LOWEST percentage.
Disadvantage: The B-1 Tender has little scope for correction in the event of market price
fluctuations.

2. B-2 Tender (Item Rate Tender)

Method: In this type of Tender quotations are invited in the form of Item Rates per unit in a
Schedule of quantities. Along with the Tender is given the General Drawings, may be some special
conditions but a very detailed Abstract.
Where Used: It is used in many government contracts, also in cases where may be all details are
not finalised before making of tender and scope has to be left for variations and changes. It is
extensively used in private contracts.
How does the Contractor Quote?: Based on his own estimation of quantities, and analysis of
market rates for the given specifications, the Contractor then has to only fill in the Rates of Every
Item in the Tender, multiply the rates with the given Item quantity and quote the Item Amount in
the Bill of Quantities. The Contractor is NOT allowed to change the Item Quantities given in the BOQ
even if his own calculations may suggest any variation.
Advantage: The B-2 Tender is also popular amongst Architects on account of its flexibility in the
event of any change in the Item Specification, Quantity or even the Rate quoted by the Contractor in
certain circumstances. In such event, ONLY the specific Item quotation can be altered and modified
in the course of the project without affecting the other Items. Here the contractor gets the payment
depending on the rate at which he has quoted every item of the work.

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Disadvantage: It is rather difficult to scrutinise the tenders submitted by various bidders and the
system was hence modified and now a days for government works the department quotes the items
of work along with their quantities and the bidders are required to quote the percentages at which
he can execute the various items.
Upon receipt of the quotations, it is often an exhaustive task for an Architect ( or the Quantity
Surveyor / Engineer in the Architect's office ) to arithmetically check the multiplications of rates and
quantities and the amount totals, and thereafter to analyse the Rates quoted by every Contractor
and identify the very high and unreasonable rates and also the very low and impractical rates in the
overall evaluation of the quotations. This exercise is necessary to correctly evaluate the workability
of all Contractors quotes and eliminate Contractors who may have submitted grossly 'imbalanced'
quotations. The decision to award the work, therefore, may NOT necessarily be based upon being
L-1 (Lowest) in cost comparison, but also upon the quotation being rational & practical.

3. C- Tender (Lump Sum Cost Tender)

Method: In this type of Tender the quotations are invited in the form of a lump-sum cost. This cost
shall be worked out by the bidder by calculations based on detailed working drawings, specifications,
terms and conditions of Contract which are provided to the bidders for their own working out the
quantities and estimation.
Where Used: This system has to be adopted and almost a must in case of decorative works like
Traffic Islands, Construction of Sculptures and some parts of Landscape Jobs. It can also be used for
repetitive jobs like Government or Military Housing of standard Design. This Type of a Tender,
however, is suitable for small projects without a high level of complexity - such as home extensions,
repairs and rectifications, and minor building projects.
How does the Contractor Quote?: Every Contractor has to be provided with Complete Details of
the project - from precise Item Specifications, estimated Quantities, all Working Drawings and
Details, and all the Terms and Conditions of Contract, because the Contractor is expected to Quote a
single consolidated Lump-sum Amount for execution of the project. This exercise carries a great
RISK for the Contractor since he has to estimate the COST in precise terms, leaving No Scope for any
variation in quality, quantity or cost in the course of the project. As a result, most C-Type Tenders
are received with quotes fairly on the Higher side, since most Contractors cover the higher Risks in
their Lump-sum Amount quotation
Advantage: For an Architect, the evaluation of this Type of Tender is probably the easiest. The
Lowest Quotation is generally given the award of the Contract - because it is a firm and legal
Commitment from the Contractor to complete the project upon payment as per his lump-sum
quotation.
Disadvantage: The catch, in this Type of Tenders, is that No Change or variation is possible in
respect of the specifications, quantity, or quality specification of the project. The Architect also has
to provide Complete Details and precise specifications with detailed working drawings to the
Contractors for Quotation. These should include Detailed Working Drawings and Working Details,
Detailed Specifications and Quantities, Detailed Terms and Conditions of Contract especially where
contingency costs are involved. The contractor is likely to take advantage of any variation and ask for
an abnormal escalation in case of change minor or major.

1.7Selection of Contractor: For a successful implementation of an Architect's design, it is

very important to identify, select and appoint a good Contractor or a construction company.
A good Architectural design can be spoilt by an in-competent building Contractor by poor
quality of workmanship, and a good Contractor can create an outstanding building even with
a simple design. The selection and appointment of a good Contractor, therefore, is a vital
step in the design and construction process for any Architect

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1. Direct Assignment: We have already seen how a contractor is selected in the Direct Assignment
process. We shall not repeat the same here
2. Tender Process: The Contractor in this process is selected on basis of the scrutiny of tenders and
in some cases the Lowest Bidder is awarded the contract, in some cases the others may be
awarded the contract. Hence it is essential that one of the Tender Clauses mentions that the
Award of Contract is the decision of the Owner / Architect and cannot be challenged. Award of
3. Contract is the decision of the Owner / Architect and cannot be challenged.

B1 Type Tender B2 Type Tender C Type - Lump sum

Balance - Not Very Balanced - Final cost Balanced method - No undue Absolutely Imbalanced - This type
Whether on completion is known right at profit or advantage to could Result in excessive profit
Advantageous to the commencement of work but owner/employer. No undue loss or disadvantage to either owner
Client or whether advantageous to owner to contractor. or contractor
Contractor or contractor not known.

Scrutiny of Scrutiny of Tender is extremely Scrutiny of Tender is very Hardly any Scrutiny of Tender is
Tender easy and decision arrived at very difficult. For every item highest required to arrive at a decision
quickly and lowest rates are to marked,
abnormal differences are to be
studied etc. Decision making is
also difficult
Commencement Commencement of work Work is commenced only after Work cannot be started before
of work Immediately without waiting for Completion of all formalities and all formalities like finalization of
all formalities or as soon as acceptance of tender. Contract cost w.r.t to detailed working
working drawings are issued by has to be signed as each item drawings and specifications
the Architects rate is as important accepted also acceptance of
Tender agreement.

Detailed All details, elevations, sections,
Drawings working drawings need to be
ready prior to commencement of
work. Drawings will be needed
stagewize
All plans, specifications, All details, plans, sections,
schedule of items are prepared elevations, specifications of
before inviting tenders. Drawings items are prepared up to the last
will be needed stagewize detail before inviting the tenders

Extra Work Possibility of extra work is more Possibility of extra work is less. Possibility of extra work is more
If extra work is done too, the and changes done by owner are
issues are arithmetical and not taken care of by the tender
resolved easily system
Final Cost Final cost at completion is not Final cost at completion is not
If no major change occurs,
known in advance. known in advance. tendered cost and final cost is
same
Contractor Scope of Contractor Selection is Scope of Contractor Selection is Scope of Contractor Selection is
Selection wide as many would bid for this wide as many would bid for this less as many would not bid for
kind of tender kind of tender this kind of tender
Variation in Variations in drawing can be Variations can be made as final Variations require considerable
Drawing made but if not controlled can bill is based on actual thinking as contractor could ask
increase cost of work measurement of work done for exorbitant rates for new work
Work Load on Less Work Load More Work Load as each item to Extremely low work load as
Architects and be monitored quantity wize measurements need not
Engineers berecorded

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1.8Demolition Tender
These are called for in case of demolition of existing buildings.
• Demolition is done up-to Ground level or Road Level.
• This includes demolition and removal of materials and carting away from the site of Debris.
• Tenderers are to take away all material away from the old building and in turn pay specific
amount to the Owner
• Tenderer is required to deposit certain amount with the owner to ensure that he completes
the work in the given time and under the conditions stipulated.
• It becomes imperative to take out insurance for accidents, workmen’s compensation, third
party risks, to the extent of damages to adjoining structures.
• The contractor has to make arrangements to cut off existing water supply lines, drainage
lines, electric supply lines etc.

1.9Assignments or Suggested Questions:

1. Explain the need for Construction Management.

2. Discuss in brief the 5 Ms of Construction Management
3. Explain Project Management in Brief and what are the essential differences between
Construction Management and Project Management
4. Why is the Construction Process Important to an Architect?
5. Explain the process of Direct Assignment of a Contract to a Contractor, the systems of
work in Direct Assignment, and advantages and disadvantages.
6. Define Tender and explain the Primary Purpose of Tendering
7. Explain the features and or advantages of a Tendering Procedure
8. List and explain the various parts and procedure of Tendering
9. List the essential parts of a Tender
10. List the Tender Principle Systems.
11. Explain the System, Applications, Advantages and Disadvantages of the following tender
systems
a. Unrestricted Open Tender
b. Two Envelope Open Tender
c. Tender by Invitation
d. Tender by Pre- Qualification
12. Explain the process of empanelment of contractors
13. Explain the B1, B2 , C type tender systems with respect to the following points
1. Method

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2. Where used?
3. How does the Contractor Quote?
4. Advantage over other Tender Types
5. Disadvantage over other Tender Types
14. Compare between B1,B2, C Type tender with respect to the following Points
a. Scrutiny of Tender
b. Balance
c. Work Load For Architects
d. Commencement of Work
e. Detailed Drawings to be made
f. Extra Work
g. Final Cost
h. Contractor Selection
i. Variation in drawings and specifications.

15. Explain the Scrutiny of tenders especially with respect to Item Rate Tender.

16. Write a Short Note on Demolition Tenders

Unit 1 Introduction to Construction Management Compiled by Ar. Rajiv Raje @ Ar. Arthur Cutinho