VALUATION

1. Valuation was introduced due to  -- Land Acquisition Act –

 for assessing value of land on market value  --
 for levying property tax by municipalities based on rateable value of property  --
for buying/selling property  --
2. Valuation necessity till property lives as a concept 
3. Valuation is a process by which value of an asset is estimated  -
4. It is not an exact science with mathematical accuracy  -
5. It is an expert opinion – supported by relevant fact and information impacting value of
asset 
6. Duty of the valuer to avoid undervaluing/ over-valuing property
7. It is a guess based on certain objective factors  -
8. Valuation depends upon–  --
 location,  --
 quality of construction,  --
 life of building  -
 current status of building  --
 type/nature of buildings- temporary/ permanent  --
 prevailing cost of land  --
 Cost of construction- plinth area rates  -
 demand and supply  -
9. Purpose of valuation  -
 cost indices - --
 Available data - —
 sound judgment, experience –
10. It is multi-disciplinary work involving knowledge of— Architecture, engineering,
mathematics, land, geography, materials etc.

EARNEST MONEY DEPOSIT

 It is the amount of money to be deposited along with the tender document to the
department by the contractors quoting a tender.
 This money is a guarantee against the refusal of any contractor to take up the work after the
acceptance of their tender.
 In case of refusal, this amount is forfeited. - EMD of contractors whose tenders are not
accepted will be refunded.
 1% - 2% of the estimated cost of work is the Earnest Money Deposit.
 Generally 2% of the estimated cost of work • in large projects, it may even be 1% of the
estimated cost or less
 For small works, if amount of earnest money is low, bidder’s seriousness will not be
there hence objective of earnest money will be lost. Hence, for smaller works, rate of
earnest money is higher
 For large works, amount of earnest money gets blocked for longer period and the
contractor ultimately loads it in the contract hence it is not advisable to block the financial
resources hence smaller rate is prescribed in case of large works
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RETENTION AMOUNT

 Retention is an important aspect of managing a construction project. ... The money held
back is the retention, typically 5-10% of the total contract Cost on a construction job,
 The owner will receive invoices each month from architects, engineers, and the general
contractor. The contractor should show the amount of work completed, and then request
payment for only 90-95% of that amount.
 The money held back is the retention, typically 5-10% of the total contract price.
 There are often two levels of retention on a project. The owner, will withhold retention
from the general contractor. The general contractor, in turn, withholds retention from
each of his subcontractors.
 When a contractor completes a project there are usually a few items that need fixing.
These items are compiled into a list called a punch list. To get retention release,
contractors have to complete their punch list as well.
 In other words, retention is a tool that allows a project owner to withhold some payment
to contractors until the entire project is complete and a certificate of completion or
certificate of occupancy has been granted by the local authorities.
 Once this completion has been granted, the owner typically has 30 days to release
retention amount to the contractor.

COMPONENTS OF TENDER DOCUMENTS

1. Various condition & terms of contract which are to be formulated while inviting tender for
a civil engineering work are:  The Notice Inviting Tenders (N.I.T) is a standard approved
form of a department  Tender form with standard conditions of contract (printed form) 
 Schedule of quantities of work to be done and materials, tools and plants to be supplied
by the department if any  Special terms and conditions  Complete specification of work
to be executed
2. 6.  One set of approved drawings where necessary  All the documents are signed by
the contractor page by page, forwarding letter head of a contractor with bank draft (or
other form of earnest money) are put in closed cover.  Then the cover is closed and
dropped in the tender box within the time limit for tender.  The name of the work and the
name of the contractor are mentioned on the cover.

CONDITIONS FOR ENJOYMENT OF EASEMENT

 An easement is a right which the owner or occupier of certain land possesses, as such,
for the beneficial enjoyment of that land, to do and continue to do something, or to
prevent and continue to prevent something being done, in or upon, or in respect of
certain other land not his own, .—
 The land for the beneficial enjoyment of which the right exists is called the dominant
heritage, and the owner or occupier thereof the dominant owner;
 the land on which the liability is imposed is called the servient heritage, and
 the owner or occupier thereof the servient owner.
 There must be a dominant and a servient tenement;
 The easement must accommodate the dominant tenement, that is, be connected with its
enjoyment and for its benefit;
 The dominant and servient owners must be different persons;
 The right claimed must be capable of forming the subject-matter of a grant;

DEMOLITION TENDER

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

TENDER NOTICE AND OPENING AND ACCEPTANCE O TENDER