Professional Practice

Contract

Ar. Kalpeshkumar Patel

 Contract
Contract
Contract is a written or spoken agreement, especially one concerning employment,
sales, or tenancy, that is intended to be enforceable by law.
 Contract
Five Elements of Contract

1. An Offer
Tender Offer by Contractor

2. Acceptance
Work Order

3. Contract parties / Members

Architect is not party to contract. The architect has to draft the contract properly.
Two parties to the contract are the Owner and the Contractor.
In case of Trust or Institute Chairman or President of the Trust can represent the Trust
as owner.

4. Lawful Considerations
Considerations offered in the contract shall be lawful. Consideration means payment
in cash or kind for the work done. In a building contract, the contractor agrees to
construct a building for which the owner agrees to pay him the contract amount.
 Contract
Five Elements of Contract

5. Lawful Object
In case of the building contract, to construct a building is the object of the contract,
and it shall be lawful. The plans of the building is approved by the concerned
Authorities.
The land on which it is proposed to be constructed shall be owned by the person who
is party to the contract.

Witness to Contract
While signing a contract document, the signature of a witness is also necessary.
Responsibility of a witness is restricted to identify a person. The witness shall know
the person who is signing the contract.

Indian Stamp Act of 1899 –

Under the Act, a contract shall be executed on a stamp paper or appropriate value , as
prescribed by the rules under the act, from time to time.
Value of stamp paper is related to the contract amount.
 Contract Document
A contract document is the most important document in connection with carrying out
of the building construction.
It is necessary to have a contract in some form or other.
It could be only verbal one or it may consist simply of tender and letter of acceptance.
But better the Form, the fewer are the difficulties in carrying out the work.
The forms of contract in the Government Departments are different. If you are
working in any Government Department, you will have to adopt that form of contract,
which is used in the department.

A contract document shall consist the following papers

1. Copy of Public Notice or Copy of Letter of Invitation
2. Copy of Work Order
3.1. Letter of Offer by Contractor
3.2. Articles of Agreement
3.3 General Conditions of Contract
3.4. Appendix
4. Specifications of work and material , reference to standard specifications, Special or
additional conditions drawn up by the Architect for that particular job.
5. Bill of Quantities ( Contract Bill) - the same is referred as schedule of Rate as the
item rates are written on it, which is approved and accepted by the owner.
6. Contract Drawings – Drawings sufficient to indicate the work to be carried out.
 Contract Document
Signing of Contract –
• Contract document shall be properly understood by both the parties to contract
before signing it.
• It is for the architect to explain the contents of the contract.
• Both the owner and the Contractor agree to give authority to properly administer
the Building Contract and also accept the architect’s supervision on the work.
• The contractor agrees to carry out the construction under the architect’s guidance
and supervision, as per the terms and conditions of the contract.
 Types of Tender and Contract
1. Item Rate Tender / Contract
This is a type most commonly used for big as well as small building projects.
After finalising the working drawings, quantities of all possible items of work are
worked out. A bill of quantities is prepared mentioning quantities of each item against
an abstract of an item. This BOQ is then issued to contractor through Tender or
Invitation for filling in item rates.
Rate of Item is the commitment in this form of Tender / Contract

Advantage
This gives freedom to the owner and his architect to change the details of work during
the construction, as he has a liberty to increase or decrease the quantities of any item
of work, with out violating the contract.

Disadvantage
Uncertainty of the final amount of the cost of construction. Usually, it is observed that
there is a difference in the contract amount i.e estimate and the final bill of the
contractor
In this form of contract, it is also expected of an architect’s office to check the
measurements of work done on site from time to time.
 Types of Tender and Contract
2. Lump Sum Tender / Contract
• This method is more suitable where the owner requires a fixed commitment of
investment f or construction of a project. There is less change of cost overrun like
Item rate contract.
• This is suitable for the construction of buildings of a simple nature and with no
possibilities of additions or alterations during the course of construction.
• Work to be carried out should be very clearly shown by means of Working
Drawings
• Specifications of both materials and work shall be included in contract. A list of
finishes such as floor finish, plaster finish , paints etc. clearly indicated in drawings
and specification. List of approved materials and make.
• Plumbing and Sanitary Fittings – size, colour and the make of the sanitary fittings.
• Where municipal sewerage lines are not available to the site, a septic tank shall
be constructed.
• Electrical Installation
• Water Supply
Thank You