1.

ESTIMATION AND RATE ANALYSIS

Content:
1. Estimation-Method, Procedure & factors affecting estimation
2. Rate Analysis- Concepts , Factors affecting Rate analysis (RA)
3. Unit mode of Measurements (IS code and IIA norms)
ESTIMATION:
a) It helps in working out the approximate cost of the building or a project before the work is taken in order to ascertain the financial implications
involved and to know whether in can be completed according to given specifications within certain financial limits or requires modification or
dropping of the proposal altogether depending upon the available financial resources.
b) If forms a basis for “Cost planning”
c) It is useful in framing the tenders for the works and to check the contractors works during and after the execution for the purpose of interim and
final certificate.
d) Requirement of controlled materials like cement and steel can be estimated for making applications to the controlling authorities.
e) Clients can be advised on:
1) Fixation of standard rent.
2) Cover note for fire insurance and claim for damages in case of fire to a building.
3) Reasonableness of the amount claimed in the arbitration proceedings.
4) Valuations of owner occupied properties on “Land and building basis” for sale, purchase, mortgage, general government purpose etc.

PROCEDURE OF ESTIMATING OR METHOD OF ESTIMATING.

Estimating involves the following operations
1. Preparing detailed Estimate.
2. Calculating the rate of each unit of work
3. Preparing abstract of estimate

MATERIAL REQUIRED FOR FRAMING AN ESTIMATE:

a) Set of plans complete in Every aspect and fully dimensioned with the section.
b) Detailed specifications about the materials to be used, their proportions and the method of execution of the work.
c) A schedule of rates of all the items of construction work.

FACTORS AFFECTING CONSTRUCTION COST ESTIMATION

• Similar Construction Projects.
• Construction Material Costs.
• Labor Wage Rates.
• Construction Site Conditions.
• Inflation Factor.
• Project Schedule.
• Quality of Plans & Specifications.
• Reputation of Engineer.
METHODS OF ESTIMATING:
1.PLINTH AREA ESTIMATE –
Plinth area estimate can be achieved by multiplying the values of plinth length, plinth width & plinth area rate. Here the plinth area is referred as,
external plinth area of the building at floor level. Simply it can be also stated as the roof covered area of a building. Plinth area rate is derived by
dividing the total cost of a previously constructed building by plinth area of the previously constructed building.

Plinth area estimate = Plinth area X plinth area rate.

Plinth area = plinth length X plinth width
Plinth area rate = Total cost of a previously built building / Total plinth area of that building.

There are some restrictions in calculating the plinth area of a building and some area have to include or exclude when calculating. Among that, areas
which can include are,
Floor area with area of walls at floor level excluding the offsets of the building, internal shafts of sanitary fittings within 2m2, lifts, air conditioning
ducts, area of porch at floor level (cantilever part can’t be included), area of barsati – a room on the terrace or roof top with veranda outside.
Areas which can’t include are,
Area of lofts, open balconies / un enclosed balconies, fascia, towers which project above terrace level, louvers & vertical sun breakers.
Documents such as line plan with complete specifications & costs for services such as water, electricity should be attached with estimate.

Types of Estimates:
Area of walls at floor level.
Internal shafts of sanitary installations not exceeding 2.0 sqm, lifts, air-conditioning ducts etc.,
Area of barsati at terrace level: Barsati means any covered space open on one side, constructed on one side, constructed on terraced roof which is
used as shelter during rainy season.
Porches of non-cantilever type.

Areas which are not to include

Area of lofts.
Unenclosed balconies.
Architectural bands, cornices etc.,
Domes, towers projecting above terrace level.
Box louvers and vertical sun breakers.
2. CUBIC CONTENT ESTIMATE –
This type of estimate done by multiplying the volume of the building by the unit cubic rate achieved from the previously (also recent) estimate. This
type of estimate is a little bit more accurate than above mentioned methods and mostly suitable for multi storied buildings. Here the cost of
corbelling (corbel – a piece of stone, wood, brick, or other building material, projecting from the face of a wall and generally used to support a
cornice or arch), cornice and other works like that are neglected.

Cubic content estimate = Volume of the building X unit cubic rate (known value)
volume of the building = plinth area (length X breadth of the proposed building) X height of the building (floor to roof top)
unit cubic rate = total cost of the previously built building / total volume of that building

3) UNIT BASE METHOD:

According to this method the cost of structure is determined by multiplying the total number of units with unit rate of each item. In case schools and
colleges, the unit considered to be as ‘one student’ and in case of hospital, the unit is ‘one bed’.
The unit rate is calculated by dividing the actual expenditure incurred or cost of similar building in the nearby locality by the number of units.

4) ITEMWISE ESTIMATION METHOD:

The Approximate cost of the project in this case is worked out item by item, taking in to consideration the cost of the labor, materials, equipment,
overhead charges, profits etc. It is usually prepared prior to inviting tender or the project goes to technical sanction after the necessary administrative
Approval. It id suitable for all types of work including buildings, bridges, culvert, sewers, chimneys etc.
2.RATE ANALYSIS:
It is the study of the financial role played by various constituents like labor, material, implements etc. which formulate an item of construction work &
as such the cost of the materials, labor, transportation charges, contractors profit are worked upon separately for each of the items and then added
together so as to give so as to give an idea of its rate. This process of analyzing the rates of various constituents and from there working out the rate
of an item is known as “Rate Analysis”.

Essentials for Rate analysis:

a) Good knowledge of construction work and familiarity with the trade and technical terms.
b) Cost of materials, labors, implements etc.
c) Out put by the workmen.

Factors affecting the Rate of an item:

a) Cost of materials and equipment's.
b) Cost of labor.
c) Locality and situation.
d) Size of work
e) Height at which the work is to be executed.
f) Profit of the Contractors.

3. COST PLANNING:
Cost planning as the name suggest is a system wherein in expenditure in any project is planned within the predetermined sum .
The operation of cost planning has three stages:
a) Establishing target cost
b) Cost plan
c) Cost checking.

Objectives of Cost Planning

To find out cost
To keep within budget
Close gap between budget estimate and Contractor’s tender
Efficient design process
Value for money
Helping the client decide how it wants to allocate the budget to the various parts of the project.
The operation of cost planning has three stages:
a) Establishing target cost
b) Cost plan
c) Cost checking.

The first stage consists of establishing a target cost before commencement of cost planning process. This is usually done by like superficial
estimation, cube area estimation or item wise estimate etc. This is the foundation of cost planning and if the estimate is un realistic , the brakes of
the cost planning will become the process of setting up of the target cost or estimated cost which represents architect/engineers expenditure and
clients financial liabilities.

The Second stage consists of Cost plan where in a definite program is set up about spending the finance on different ‘Elements” of the building or the
project. For this purpose the building is split up in number of Elements whose approximate quantities can be ascertained from the sketch plan .

The Elements usually adopted are:

a) Work up to plinth lvl With Open R.C.C foundation
b) R.C.C framework above plinth lvl
c) External walls
d) Internal walls
e) External plaster
f) Internal plaster
g) Doors and windows
h) Drainage work
i) Plumbing work
j) Electric installation work
k) Amenities, fittings and fixtures
l) Compound wall, pavement etc

The Third stage consists of cost checking which means finding out whether the expenditure set out on various elements have been a planned out
and if not, what are the reasons for deviations. This stage comes during the execution of works, the main purpose behind is to make the ultimate
amount payable on completion of project equal to the target amount.
3.UNIT MODE OF MEASUREMENTS (IS CODE AND IIA NORMS)

Table below shows units of measurement of various items of civil engineering works based on IS 1200.
Note:
•SQM = Square meter
•CUM = Cubic meter
•RM = Running meter

Units of
Sl. No. Particulars of item Units of payment
measurement

1 Earthwork

1. Earthwork in
CUM Per CUM
excavation

2. Earthwork in
filling in foundation CUM Per CUM
trenches

3. Earth work in
CUM Per CUM
filling in plinth
2 Concrete
4 Brick work
1. Lime concrete in
CUM Per CUM
foundation
1. Brickwork in
CUM Per CUM
2. Cement concrete in foundation
CUM Per CUM
lintels

3. RCC in slab CUM Per CUM 2. Brickwork in

CUM Per CUM
plinth
4. Cement concrete or
CUM Per CUM
RCC in chujja, sunshade 3. Brickwork in
CUM Per CUM
super structure

5. Lean concrete in roof

terracing (thickness SQM Per SQM
4. Thin
specified) SQM Per SQM
partition walls

6. Cement concrete
CUM Per CUM
bed 5. Brickwork in
CUM Per SQM
arches
7. Reinforced concrete
sunshade (specified CUM Per CUM 6. Reinforced
CUM Per CUM
width and height) brickwork

Damp proof course

3 (DPC) – thickness SQM Per SQM
mentioned
 7 Steel work
5 Stone work

1. Stone masonry CUM Per CUM 1. Steel reinforcement bars etc. in RCC
Quintal Per Quintal
and reinforced brick work
6 Wood work

1. Doors and
windows frames or 2. Bending, binding of steel
CUM Per CUM Quintal Per quintal
chaukhats, rafters, reinforcement
beams

2. Shutters of 3. Rivets, bolts and nuts, anchor bolts,

doors and windows Quintal Per quintal
SQM Per SQM lewis bolts, holding down bolts
(thickness
specified)

4. Iron hold fasts – –

3. Doors and
windows fittings
(like hinges, tower Each Per Each 5. Iron railing (height and types
– –
bolts, sliding bolts, specified)
handles)
6. Iron grills SQM Per SQM
8 Roofing 10 Flooring
1. RCC and RB slab roof (excluding
CUM Per CUM 1. 25mm cement
steel)
concrete over 75mm
2. Lean concrete roof over and lime concrete floor SQM Per SQM
inclusive of tiles or brick or stone SQM Per SQM (including lean
slab etc. (thickness specified) concrete)

3. Centering and shuttering 2. 25mm or 40mm

SQM Per SQM
formwork cement concrete SQM Per SQM
4. AC sheet roofing SQM Per SQM floor
9 Plastering, points and finishing 3. Doors and window
1. Plastering – cement or lime sills (CC or cement SQM Per SQM
mortar (thickness and proportion SQM Per SQM mortar plain)
specified)
2. Pointing SQM Per SQM Rain water pipe /
11 RM Per RM
plain pipe
3. White washing, color washing,
cement washing, (number of coats SQM Per SQM 12 Steel wooden truss Each Per each
specified)
13 Glass panels (supply) SQM Per SQM
4. Distempering (number of coats
SQM Per SQM Fixing of glass panels
specified) 14 inch Per inch
or cleaning
5. Painting, varnishing (number of
SQM Per SQM
coats specified)
2. ARCHITECTS ROLE AND OFFICE STRUCTURE
IN OFFICE
ARCHITECT RESPONSIBILITY TOWARDS HIS EMPLOYEES:
1.provide their employees with suitable working environment, compensate them fairly and facilitate their professional
development.

2. recognize and respect the professional contribution of his employees,

3.provide their associates with suitable working environment, compensate them fairly and facilitate their professional
development,

4.recognize and respect the professional contribution of his associates,

5.recognize and respect the professional contribution of the consultants

6. Be Inspired

7. Provide Relevant Tools (The No-Fear Approach)

8. Praise When Earned, Criticize When Earned

9. Set Clear Boundaries, But Be Engaged

10. State Goals Clearly

11. Encourage Imagination

12. Articulate Studio Culture

3. LIABILITIES IN PROFESSION(BY ARCHITECT)
CONTENTS:
1) To Client
2) Under building contract (context 11A from building contract)
3) Competent Authority
4) Bring a member of professional bodies (IIA, COA) etc
5) Under Consume protection Act -1986
6) Under RERA-2016
7) Supplementary guidelines of COA.
Duties and liabilities to client
Duties and liabilities under building contract
4. COUNCIL OF ARCHITECTS ACT 72-EXTENT AND APPLICATION
CONTENT:
1) Extent and application and qualification for registration
2) Misuse of title “architect”
3) Code-Conducts , ethics and norms prescribed under professional ethics code of conduct
4) Code and standards of COA for undertaking various professional services and scale of charges.

ARCHITECS ACT OF 1972

a) An act to provide for registration of architects and for matters connected herewith.
b) It has come in to force from 31st may 1972 and extends to the whole of india.

QUALIFICATION FOR REGISTRATION & MISUSE OF TITLE ARCHITECT:

Any person desirous of carrying on the profession of 'Architect' must have registered himself with Council of Architecture. For the purpose of registration,
one must possess the requisite qualification as appended to the Architects Act, after having undergone the education in accordance with the Council of
Architecture (Minimum Standards of Architectural Education) Regulations, 1983. The registration with Council of Architecture entitles a person to practice
the profession of architecture, provided he holds a Certificate of Registration with up-to-date renewals. The registration also entitles a person to use the title
and style of Architect. The title and style of architect can also be used by a firm of architects, of which all partners are registered with COA. Limited
Companies, Private/Public Companies, societies and other juridical persons are not entitled to use the title and style of architect nor are they entitled to
practice the profession of architecture. If any person falsely claims to be registered or misuses title and style of architect, such acts tantamount to committing
of a criminal offence, which is punishable under section 36 or 37 (2) of the Architects Act, 1972.
INTRODUCTION:
PROFESSIONAL BODIES FOR ARCHITECTURE:
 (co-ordination)

(co-ordination)

(co-ordination)
(co-ordination)
(co-ordination)
ARCHITECTS ROLE:
1 Taking Client's instructions and preparation of design brief.
2 Site evaluation, analysis and impact of existing and / or proposed development on its immediate environs.
3 Design and site development.
4 Structural design.
5 Sanitary, plumbing, drainage, water supply and sewerage design.
6 Electrical, electronic, communication systems and design.
7 Heating, ventilation and air conditioning design (HVAC) and other mechanical systems.
8 Elevators, escalators, etc.
9 Fire detection, Fire protection and Security systems etc.
10 Periodic inspection and evaluation of Construction works.

. SCHEDULE OF SERVICES :
The Architect shall, after taking instructions from the Client, render the following services:

CONCEPT DESIGN [STAGE 1] :

2.01 Ascertain Client's requirements, examine site constraints & potential ; and prepare a design brief for Client's approval.
2.02 Prepare report on site evaluation, state of existing buildings, if any ; and analysis and impact of existing and/ or proposed development on its
immediate environs.
2.03 Prepare drawings and documents to enable the Client to get done the detailed survey and soil investigation at the site of the project.
2.04 Furnish report on measures required to be taken to mitigate the adverse impact, if any, of the existing and / or proposed development on its
immediate environs.
2.05 Prepare conceptual designs with reference to requirements given and prepare rough estimate of cost on area basis.

PRELIMINARY DESIGN AND DRAWINGS [STAGE 2] :

2.06 Modify the conceptual designs incorporating required changes and prepare the preliminary drawings, sketches, study model, etc., for the Client's
approval along with preliminary estimate of cost on area basis.
DRAWINGS FOR CLIENT'S/ STATUTORY APPROVALS [STAGE 3] :
2.07 Prepare drawings necessary for Client's/ statutory approvals and ensure compliance with codes, standards and legislation, as applicable and
assist the Client in obtaining the statutory approvals thereof, if required.
WORKING DRAWINGS AND TENDER DOCUMENTS [STAGE 4] :
2.08 Prepare working drawings, specifications and schedule of quantities sufficient to prepare estimate of cost and tender documents including code
of practice covering aspects like mode of measurement, method of payments, quality control procedures on materials & works and other conditions
of contract.
APPOINTMENT OF CONTRACTORS [STAGE 5] :

2.09 Invite, receive and analyse tenders; advise Client on appointment of contractors.

CONSTRUCTION [STAGE 6] :
2.10 Prepare and issue working drawings and details for proper execution of works during construction.
2.11 Approve samples of various elements and components.
2.12 Check and approve shop drawings submitted by the contractor/ vendors.
2.13 Visit the site of work, at intervals mutually agreed upon, to inspect and evaluate the Construction Works and where necessary clarify any
decision, offer interpretation of the drawings/specifications, attend conferences and meetings to ensure that the project proceeds generally in
accordance with the conditions of contract and keep the Client informed and render advice on actions, if required.
2.14 In order to ensure that the work at site proceeds in accordance with the contract documents/ drawings and to exercise time and quality
controls, the day-to-day supervision will be carried out by a Construction Manager (Clerk of Works/ Site Supervisor or Construction Management
Agency in case of a large and complex project), who shall work under the guidance and direction of the Architect and shall be appointed and paid by
the Client.
2.15 Issue Certificate of Virtual Completion of works.

COMPLETION [STAGE 7] :
2.16 Prepare and submit completion reports and drawings for the project as required and assist the Client in obtaining "Completion/ Occupancy
Certificate" from statutory authorities, wherever required.
2.17 Issue two sets of as built drawings including services and structures.
CLIENT'S ROLE AND RESPONSIBILITIES :
The Client shall discharge all his obligations connected with the project and engagement of the Architect as follows:
8.01 To provide detailed requirements of the project.
8.02 To provide property lease/ ownership documents.
8.03 To provide a site plan, to a suitable scale, showing boundaries, contours at suitable intervals, existing physical features including any existing
roads, paths, trees, existing structures, existing service and utility lines and such lines to which the proposed service can be connected. In case such
information is not readily available, the Client shall arrange for the survey/ collection of necessary information and pay for the same.
8.04 To furnish reports on soil conditions and test as required by the Architect or pay for the preparation of the same.
8.05 To furnish specific conditions/ Statutory stipulations/ Codes of Practice/Schedule of rates, etc., desired to be followed.
8.06 To pay all the fees, levies, security deposits and expenses in respect of statutory sanction.
8.07 To give effect to the professional advice of the Architect and cause no changes in the drawings and documents without the consent of the
Architect.
8.08 To honour Architect's bills within one month of its submission.
8.09 To appoint a Construction Manager (Clerk of Works/ Site Supervisor or Construction Management Agency in case of a large and complex project)
as per the Architect's advice.

QUANTUM MERUIT

“QUANTUM MERUIT” is a Latin word , the Essence of which is the reasonable remuneration in proportion to the benefits received by the defending
party. It comes in to operation as soon as the oral contract between the two parties come to an end and is also applicable in case of partial services.
a) Evaluation of the architectural inspiration for finding a solution to a particular problem
b) Experience and standing of the architect
c) Nature of work done , drawing, interviews , correspondence etc.

After taking in to consideration all the above facts , the remuneration payable to the architect in such cases as decided by the court is said to be fees
on quantum meruit basis. It is the right whereby a reasonable remuneration is required to be paid for the work done, where there is no contract or
no price has been fixed for the work. It will be applicable when the contract becomes void due to mistake, fraud and for other resaons.
5. Legal Aspects-Arbitration
Contents:
1.Concept
2.Advantages
3.Qualification criteria for arbitrators appointment
4. Application of arbitration procedure/obligations u/IIA form of building contracts.
5.Types of arbitration.
THE ARBITRATION AND CONCILIATION ACT, 1996
An Act to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral
awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto.

ARBITRATION:
It is a method of Settling the disputes and differences between two or more parties whereby they appoint one or more persons to adjudicate upon the
said disputes and differences hat have arisen or that may hereafter arise and agree to abide by the decision of the said one or more persons
nominated for the purpose of adjudication.

ARBITRATOR:
He is the person to whom the disputes and differences are referred as necessary adjudication. If there are more than one arbitrator, they are known
as “Joint arbitrator” and if there is only one arbitrator appointed for the purpose , he is known as sole arbitrator. Unless a specific provision is made for
two or more arbitrator, the reference will ne to sole arbitrator.

RIGHTS TO ARBITRATION: APPOINTMENT OF ARBITRATOR & ARBITRAL TRIBUNAL:

1) The Parties are free to determine the number of arbitrators provided such numbers is not an even number. The purpose of Providing odd number of
arbitrator is to finalize the outcome by a majority decision in case unanimous decision is not forthcoming.
2) In case of sole arbitrator the appointment will be by agreement of the parties. In case of disagreement, the appointment will be made by the Chief
justice or his designate. This Sole arbitrator alone by himself will constitute Arbitral tribunal.
3) In an arbitration with 3 arbitrators, each part to appoint one arbitrator and the two appointed arbitrators shall appoint the third arbitrator. This third
arbitrator to act as the Presiding Arbitrator. All the three arbitrators will constitute the Arbitral Tribunal headed by the Presidential Arbitrator.

QUALIFICATION CRITERIA FOR ARBITRATORS APPOINTMENT:

1)He must be an expert in particular branch of profession to which the dispute relates.
2) He must be honest, disinterested and independent of the parties.
3) He must not be bias mind , having ill feeling against any of the parties.
4) He cannot be a witness of an arbitrator in the same dispute, a disqualification.
5) As per conditions no 56 of IIA, form of contract the arbitrators have to be Fellow of Indian institute of Architects, which forms prime qualifications
for being appointed as arbitrators if the IIA form of contract forms a cementing aspect between the contractors and clients.
ADVANTAGES OF ARBITRATION:
1.Person usually experts in the field are appointed and as such decisions will be fair and refined and not involving any element of guess work.
2. Legal formalities are cut short and decision can be reached in shorter time.
3. Savings in cost
4. Time , date and place of meeting can be arranged so as to suit the convenience of all concerned.
5. Privacy as earing is not public.
6. The arbitrator can view the subject at any convenience time.
7. Finality if the reward.

POWERS AND DUTIES OF TRIBUNAL:(ROLE OF ARCHITECT)

1.The Foundation of the arbitration has been based on fairness and impartiality of the arbitral tribunal, the members of the said tribunal is not to have
interest direct or indirect in the subject matter of dispute.

2. If the appointed arbitrator is lacking in some qualification as per agreement.(like cl.56 of the IIA form of contract puts a condition on the arbitrator
to be a Fellow Member of IIA, and appointed person is not) , the parties must be informed about it.

3. To conduct arbitration proceedings with equal treatment to both the parties, giving full opportunities, sufficient advance notice of hearings, order
on inspection of document , goods or other property as also not disregarding the principles of natural justice.

4. Can call for deposit amount towards the case of Arbitral Tribunal from both the parties in equal parts.

5. To decide its own jurisdiction and seeks reports of experts on issues pertaining to specialized discipline,

6. Seek assistance of the court In taking evidence if necessary.

7.To hear the parties patiently on all issues at dispute till termination without exceeding the scope of authority setout.

8. Issue orders for interim measures of protection.

9.Not to give any decision according to what the tribunal thinks just or reasonable. It has to decide according to law expert when the parties have
expressly authorized to do so.

10. Make, Declare as publish interim award , final award without undue delay, showing the outcome including the burden of cost of arbitration and
incidental cost and in what proportion to be borne by the parties.
TYPES OF ARBITRATION:.
A) Arbitration : based on arbitration clause in the contract:
It arises in case if arbitration of the contract whereby present or future disputes are referred to the adjudication if the tribunal disputes. No suit is filed
in this case and the arbitral award takes the form of the decree of the court.

B) Arbitration: With the Intervention of a court where there is no suit pending.

Where the disputes and differences have arisen between the parties to which the arbitration agreement applies, the parties have a dual choice:
a) Appoint arbitral tribunal and get an award , if not,
b) One of parties may apply to the appropriate judicial authority with the original arbitration agreement or duly certified copy therof, the judicial
authority will refer the parties to arbitration.

C) Arbitration in suits:
In case of suit pending in court, all the interested parties at any time before the judgment is pronounced , agree that the disputes
and differences be settled by arbitration and the judicial authority will refer the parties to arbitration.

The act deals with a number of categories of arbitration like:

1) Domestic arbitration
2) International arbitration
3) Foreign arbitration
4) Institutional arbitration
5) Statutory arbitration.
ARBITRAL AWARD:
It is the decision given by the arbitral tribunal after careful investigation of the case submitted to the adjudication. It conveys the findings of the
tribunal and its findings on both the parties.

Essentials:
a) The award must be made without undue delay as otherwise the arbitrators mandate can be terminated.
b) The award as a rule must be in writing and to be signed by the members of the arbitral tribunal and signatures attested.
c) The award must be self explanatory with any ambiguity and must show nature of adjudication whether unanimous or by majority. The decision by
majority will form a binding force in case unanimous decision is not possible.
d) The award to be made on a stamp paper of Rs 100 value.
e) After the tribunal award is made , a signed copy to be supplied to each of the party.
f) The arbitral award is to state its date and place of arbitration, claim adjudication in terms of money contents, interest on amount awarded or part
thereof at such rate as it deems reasonable for the period or part of period from the date on which cause of action arose to the date of making of
the award.
g) The award must provide interest on the awarded amount from the date of award to the date of payment.
h) The arbitral award must provide for legal cost , cost of arbitration ad other incidental expenses and the manner in which the cost to be shard and
paid.
i) The arbitral award has to be reasoned one unless both the parties agree for non reasoned award.
6. Legal Aspects-Easement
Content:
1. Concept- Acquisition/ modes of acquiring Easement.
2. Extinction of Easement-Revised of Easement
3. Different types of Easement for property (with illustrations)
EASEMENTS:
As easement is right which the owner or occupier of certain land possesses , as such , for the beneficial enjoyment of the land:
1.To do and continue to do something: or
2. To Prevent and to continue to prevent something from being done; in or upon, or in respect of certain other land not his own.
CHARACTERISTICS OF EASEMENT.
1. Owner or Occupier of Land is necessary.
2. The Right to do and continue to do something, or prevent and continue to prevent something being done, in or upon or in
respect of certain other land not his own must be vested in the owner or occupier.
3. The Right should be for the beneficial enjoyment of the Dominant heritage(Owner)Since it is attached to land and as such
it is transferred automatically with the sale of land and separate agreement is not necessary.

A=Owner of PQRS : access not possible

Q
Without passing over B’s plot RSTV p

A-sells to ‘C”
A=owner &
sells to ‘c’
The Right of passing over the land of ‘B” R S
Is automatically transferred to ‘C’ provided
Right of way has been enjoyed by ‘A’ as an
easement, it is the easement of necessity. B=owner
T V

4.Servient heritage in or upon which the right of Dominant Heritage has to be exercised must belong to Dominant owner that is
both lands must have different owners. This is the right over somebody else’s land and the owner can not enjoy easement over
hos own land.
7. Legal Aspects-Land Acquisition
Content:
1. Concept-
2. Principles Underlying Procedure of Acquisition
LAND ACQUISITION:
Land acquisition is India refers to the process by which union or a State Government in India acquires a Private Land for the purpose of
Industrialization, development of infrastructural facilities or Urbanization of the private land , and Provides compensation to the affected land owners
and their rehabilitation and resettlement.

BASIC PRINCIPLES OF LAND AQUISITION:

a) Land or Property is required for the public purpose.
b) Sale by the owner is compulsory and that there is no option in the same.
c) Owner to get market value as against sentimental or Monopoly value.
d) Property is acquired free of all encumbrances.
e) In addition to market value, the owner will be entitled to extra 30% compensation on the value of such land for compulsory acquisition which is
known as “Solatium”

PROCEDURE FOR ACQUISITION OF LAND:

1. INVESTIGATION:
a) Land required by local authority/company puts an application to revenue authority with a copy of plan showing survey Nos:, purpose of
acquisition, and reason to why this particular site has been selected .It must also contain the provision made for the cost of acquisition
proceedings.
b) The application must contain the fact that the local authority/company did try to purchase the land by negotiations which did not materialize for
some reason and hence the need for acquisition proceedings.
c) After the Govt. is fully satisfied under land acquisition rules , a least area is selected with relevant facts , it will issue a notification, as per act of
state Govt Gazatee, that the particular land is required for public purpose.
d) A collector is appointed from revenue department, to see the proceedings. The revenue authority fixes a date for determining the market value
of property. Once notification is issued , the owner of the land is prohibited from carrying out any work or do any alternations. If the owner does
any thing no compensation will be given by purchasing authority.
2. OBJECTION AND CONFIRMATION:
1) Notice for acquisition of the particular land will be served to all the persons interested in land, inviting their objections to the said acquisition with in
30 days from the date of notification.
The Objection will be valid as under”
a) Purpose for the land is proposed for acquisition is not a public purpose.
b) The land is not suitable for the said purpose.
c) The land selected for acquisition is less suitable than other piece of land.
d) That the area under acquisition is excessive.
e) That the acquisition will destroy or impair the amenity of historical or artistic monuments and places of public resort or will take away important
public rights of way or other conveniences or will desecrate religious buildings graveyards and the like.

2) After hearing from parties , the collector will submit report to govt. with his observations and if all fine the govt. will declare land for acquisition , on
other hand , if the objection from owners are upheld (part property taken), the govt an cancel the notification.

3) After the publication of the notification, land Acquisition officer is appointed. (LAO).

3. CLAIM AND VALUE:

The LAO will issue notices to all parties interested in acquisition, including the occupants, to file their claim reports. He will conduct the necessary
inquiries which are not judicial ones ,and his reward is merely an offer unless the parties accept the same.
The claim filed before LAO must contain;
a) Names of the claimants and co sharer if any, with their shares, a written declaration, is required to that affect.
b) Documents of profits
c) Rents or profits of last 3 years
d) Valuation report of an architect or engineer together with the documentary evidence in support of the same.
e) Whether area given in notice issued by collector is acceptable or not.

The market value of the land can be determined by one of the following methods:
a) The actual price of actual property under acquisition provided that there is no material time lag between the date of transaction and date of
notification . Rise and fall in the value of land during that period will have to be accounted for.
b) By comparing land under acquisition with instances of sale in the neighborhood of comparable properties after making due allowances for all
relevant factors which affect the value.
c) Development method of valuation depending upon circumstances of case.
8. Legal Aspects-Valuation
Content:
1. Concept-
2. Purpose of Valuation
3. Factors affecting valuation
4. Different “values “ defined for property
5. Methods of valuation
VALUATION: BASIC TERMINOLOGY
COST • The term cost is used to indicate the actual amount incurred in
producing a commodity. • Cost means the original cost of construction and
can be known after accounting all day-to-day expenditure from the very
planning stage till the construction is completed. • The expenditures or
charges represented directly in the commodity produced are called the
prime costs. • Other expenditures or charges like rent, management,
services, salaries, depreciation, etc. represented indirectly in the production
of the commodity are called the supplementary costs.

Value • Value means its worth or utility. • Value varies from time to time and
depends largely on the supply of that particular type of property and the
extent of the demand for it • The cost of the construction of a building may
have no relation to the value of the same if sold in the open market. • The
value of the property within a short time may be more like double than
construction when there are more buyers . • The value depends upon ->It’s
utility -> scarcity -> events

Price • The term price is used to indicate the cost of the commodity plus
profit of the manufacturer. Price = Cost + Profit • As labour and capital are
required to produce a commodity, • The manufacturer is entitled to have
some reward over and above the cost of commodity. • The price of a
commodity is determined by the supply and demand conditions prevailing in
the market for that particular commodity and as such , a commodity may be
sold above or below its cost of production
PURPOSE OF VALUATION:
1) Purpose for investment or for Occupation
2) Sale
3) Mortgage
4) Rent Fixation
5) Land Acquisition
6) Betterment charges
7) Auction bids
8) Probate
9) Speculation
10) Insurance
11) Capital gains
12) Wealth tax
13) Stamp duty
14) Gift Tax
15) General court purpose in order to determine the amount of Court Fee, Stamp in a suit etc.
The purpose of valuation plays a big part in determining the Market value of the property. Hence it is most essential that the purpose of valuation
should be known in advance as the values will defer with different purposes for which they are acquired.
DIFFERENT VALUES DEFINED FOR PROPERTY:
1) Assessed value: The value of the property which is recorded in the register of the local authority and used for the purpose
of determining the amount of property taxes to be collected from the owner of property.
2) Book Value: It is also known as book cost which shows original investment of the company on its assets, including
properties and machineries less depreciation for the period passed.
3) Salvage value: Value of machinery realized on sale when its useful span of life is over but it has not become useless.
4) Scrap value or Junk value: Value of machinery realized when it becomes absolutely useless except form sale as junk. It also
applies to built properties which have outlived their useful life span and in such cases the value of old materials of such
buildings less cost of demolition will represent the scrap value .It is also known as Demolition value.
5) Replacement value: It indicates the value of building or portions thereof if these to be replaced in the form of acceptable
substitutes , at the current market rates.
6) Earning value: it is the Present value of the property which will start yielding an income in future.
7) Potential value: The land has got an inherent value which may go on increasing due to passage of time or due to some
alternative use fetching more return. The inherent value is known as “Potential value”.
It includes the following:
1) Beneficial present use of land
2) Future usefulness
3) Special suitability for a definite purpose.
4) Better layout.

8) Distress value: When a property is sold over lower price than that which can be obtained for it in an open market , it is said
to have “Distress value”.
It may be due to following reasons:
1) Financial difficulties of vendor.
2) Indirect profit to vendor or purchaser.
3) Part consideration paid otherwise.
4) Panic due to war and riots.

9) Speculative value: When the property is purchased so as to sell the same at a profit after a short duration, the price paid is
known as Speculative value and the chief aim behind the purchase is not that of development so as to earn rent but that of
speculation.

10) Monopoly value: Following the law of supply and demand as the number of available plots in a locality goes on decreasing,
the value of the land goes on increasing and a time comes when very few plots remain in the market. The fancy price demanded
by the vendor for those few remaining plots will be known as “Monopoly Value”.

11) Sentimental value: The fancy price which is demanded by the vendor when he attaches sentimental value to his property is
known as “Sentimental value” having no relationship with Market value.

12) Accommodation Land and Accommodation value: The land on the outskirts of the land for the purpose of playgrounds,
gardens etc. is known as Accommodation land. It has greater value than that of agricultural land and less than that of building
land.
At times small strips of land cannot be developed independently and as such the same will not find prudent purchasers in the
open market. The owners of the adjoining land are the only people who can benefit from it as the value of the land will be less
than market value. Such price offered is known as Accommodation value.
FACTORS AFFECTING VALUATION:
1) SUPPLY AND DEMAND: Rise in population due to influx or by multiplication will result in heavy demand for Housing and to
satisfy the said demand more land is required. If sufficient land is not available to satisfy the demand fully, the same may
result in the increase in the value of land.

2) COST OF REPLACEMENT: When a built up property is available for sale with vacant possession for the beneficial occupation
of purchaser, he will always consider the cost of replacement of the same building at present.

3) OCCUPATIONAL VALUE: When a property is required for the purpose of residential occupation, the price paid is generally
more than its market value arrived at by rental method. It has been observed that a built up property, part vacant , will
fetch a good price even if the premium for the vacant portion is taken in to consideration. In the purchase of such a
property , the returns forms a secondary consideration.

4) INTEREST & SECURITY OF CAPITAL: Every person expects some reward in return if he allows the use of his capital. This
reward is known as Interest.

5) RENT RESTRICTION ACT: The Value of Property depends upon its annual rental and in case of an old let out prior to 1940
the same is not allowed to be increased under the Rent Act except for permitted increases.

6) ABNORMAL CONDITIONS: The value of the properties may go down due to abnormal conditions like war, riots, or due to
insecure conditions.

7) TOWN PLANNING ACT: Due to declaration of Town planning scheme in a particular area whereby the said area is proposed
to be provided with all civic amenities like roads, gardens,, drainage, etc the value of open plots in that locality will go up.
METHODS OF VALUATION:
9. TENDER
CONTENTS:
1.Procedure –Criteria's for different kind of tenders
2. Duties/ Obligation of architect for procedure of tender
3. Concepts of Tender Documents- EMD, SD, RMD, Mobilization fund
1. Concept:

A “Tender” is nothing but an offer made by one party to another for execution of specified work at a specified cost
In keeping with all the terms and conditions set there in the tender document including the extent of the work
shown in the plans. IT remains floating till the time it receives a seal of acceptance either by the employer and /or his
architect/engineer and thereafter forms a binding contract.
1.2. Tender Documents:
The tender documents occupy important position not only from the view point of contractors and employers, but
also to the architects. They find their place in the contract documents with required modifications if any. The tender
documents are to comprise the following.

1. Tender Notice
2. Special Notice
3. Letter of order
4. Special conditions
5. Form of contract with conditions
6. General specifications
7. One set of building plans
8. One set of R.C.C plans
9. Bill of quantities (BOQ)
1.2.1 TENDER NOTICE

a) Tender Notice must mention the name of the owner, the place , the nature of work , extent of work and the estimated cost.
b) It must mention amount of Earnest Money and Tender Fees.
c) Minimum time of returning the tender by the contractor should be at least 15-20 days from the date of issue of tender.
d) The place of Delivery of tenders by the contactors should be specified.
e) The contractors should be requested to inspect the site prior to filling of the tender , so that they ascertain well in advance the working
conditions of the nature of soil.
f) Lastly the architec.t/Engineer have to be very careful in inviting the tenders in time, as the delay in the sum may prove to be dangerous
both for clients as well as for architects.
1.2. Tender Documents:
1.3. methods of calling tender:
1.4. Tender Scrutiny:
3. NATURE OF TENDER CAN BE CLASSIFIED AS UNDER:
1) a) Item rate tender:
The contractor is paid in the measurement of the work executed at the rates quoted by him in the tender. In act
the rates of the item are the part of the contract and the approximate quantities are not.
Its a balanced method of execution and not risky for contractor and hence quality of workmanship will be assured.
Reasonable variations can be made in the plans and also in the quantities. Its suitable to all types of work like
buildings, bridges, culverts, sewer lines roads, etc.

b) Schedule of rates with percentage up or down

It is also known as basic rates with rise and fall clause. It is modified for of item rate tender. In this case a bill of
quantities duly priced is given each of the tenders and they are asked to quote only the percentages above or below
the prices schedule of rates, at which they are prepared to execute the work.

2) a) Lump sum tender

The contractor undertakes to carry out the work as per plan and described specifications till completion.
Supplying all the materials and labors for fixed lump sump or at a fixed cubic or square meter of work. Payment will be
from time to time if specified or if not then at the completion of the work.

Essential characteristics:
1.Plans with all details and elevations to be clear for which the work is to be carried out.
2. Work to be described in details in the specifications with special conditions, if any.
3.Time for completion of work should be specified.
4.If contractor id not given part payments it should be specified in advance .
5. Site shall be accessible to contractors so that he can ascertain the nature of soil, cost of foundation & other relevant
work conditions.
6.No serious variations are contemplated.
7. Contract amount is not decided on the basis of measurement except for additions and omissions.
Advantages:
1.Total cost of construction is known in advance .
2. The contractor will try to complete work as early as possible so as to have good margin of profit.
3. Work load of the engineer and architect is reduced, as no detailed measurements are required to be taken for each
Item of the work executed.

Disadvantages:
1.More and more of extra works
2.Design is likely to be adversely affected with variations.
3. Quality of work is not guaranteed.
4. Contains more element of speculation and risky form of tender.

Suitable for additions and alternations to an existing building , works of repair to a building, works under water like
foundations for bridges culverts etc and not suitable for All building works, laying of main services, General drainage
and plumbing, Road works.

b)Lump sump percentage tender

Its same as Lump sum tender except that if the contractor completes the work before the due date , he is usually
granted certain bonus in terms of percentage of the cost of the project.

3) a) Cost plus percentage or “cost plus fee tender”

The expenditure incurred by the contractor is paid by the owner as agreed and over the above he is paid certain
percentage as profit for his professional services. At times such tenders are invited from a few contractors,
asking them to name the price at which they will execute the work and fees that they expect for the same.The fees are
usually fixed at a certain percentage of the cost of work.
Suitable for public and private works. No time limit for completion of work. Owner will be entitled to discounts rebates
and refunds.
 b)Cost plus fixed fee tender
A modified form of Cos plus fixed fee where in the contactor is given a fixed fee irrespective of the cost of the work
and as such , he becomes a disinterested adviser and tries to complete work in time. All the cost of the material and
labor are directly paid by owner and thus the contractors financial liability is nil. The contractors fees include the
following:
1. Contractors profit
2. Use of his skill , energy, overhead, administrative expenses.
3. Contractors full tome supervisor at site.
4. Contractors office on site.
5. Contractors legal expenses.
6. Interest on any amount invested by him in the work.

c) Cost plus fixed fee with bonus and penalty

In order to keep a check over the cost of the work this form of tender is suitable. If the cost of the work as executed
remains the same as has been estimated in advance the contractor receives his agreed fees with no profit and no
penalty deduction. If the cost of the work turns out to be less then estimated cost, the contractor is to receive certain
percentage from the savings effected up to maximum of 50 percent plus his agreed fees. If its more then the
contractor is given penalty.

4) Labor tender
In this the contractor agrees to carry out the complete labor work of all the items of the work at the rates quoted by
him. The contractor has to supply the tools plants, scaffolding, centering materials, and the owner supply only the
material required for the construction work. The labor tender generally includes the labor work for the construction of
water tank for storage of water required for construction purpose as well as labor work for putting up temporary shed
for office and cement godown of reasonable size.
The labor tenders are invited sometimes on the basis of rate per square meter or cubic meter of the construction
work. Its suitable for all kinds of work like buildings, roads, culverts, repairing etc.
2. Duties/ Obligation of architect for procedure of tender:
1) Earnest Money: (EMD)
It as defined as an initial deposit which is sent along with the tender order to show genuineness of the contractor. The
amount or earnest money varies from 1-2 % of the estimated cost of the project. This amount remains in the safe
custody of the architect or the engineer till the work is allotted to the particular contractor who will be asked to
deposit further sum towards the security deposit. The main purpose of the Earnest money is to see that a fair
competition takes place for the work. The Earnest money is forfeited in favor of the owner in case the contractor
refuses to enter in to contract after his tender has been accepted. It is accepted in cash or cheque at times in the form
of Negotiable government securities.

2) Security deposit : (SD)

When the tender of a particular contractor is accepted, he is asked to deposit a further amount with the architect
varying from 2-5 % of the estimated cost of the project and is known as security deposit. This amount of security
deposit includes the earnest money already deposited by the contractor. It is paid in cash or cheque .The amount is
kept as a check so that the contractor fulfills all the terms and conditions of the contract, carries out the work to entire
satisfaction and maintains proper progress of the work. If he fails, his whole or part of the security deposit is forfeited.
It does not carry any interest and is returned to the contractor after his defect liability period is over.

3) Retention Money deposit : (RMD)

When the contract of the work is assigned, it is essential for the contractor to deposit a fixed amount either with the
architect or with the owner as a guarantee for the faithful performance of the terms of the contract. It is very difficult
for the contractor to pay such amount all at once as his business depends entirely on the rolling of his capital. This
amount of the contractor gets blocked and does not bear any interest. Hence by prior agreement , it is arranged that
the contractor should pay the so called security deposit by installments from the payment due to him for the works
already executed. The se installment retained with the owner and is known as “Retention amount.”
Usually 10% of the value of the work is retained by the owner towards the retention money and the architect issues at
every stage of the work interim certificates to the value of 90% of the work done. As soon as the total retention fund
has been collected, the subsequent interim certificates are required to be issued at their full values.
Essential characteristics:
1.It is the money earned by contractor but has not become payable under the contract.
2. It can be assigned by the contractor to any one he likes.
3. 50% of the said amount is paid after the virtual completion of work.
4. Final installment of 50% is paid after the defect liability period has passed and after the issue of the final certificate
by the architect.
5. Retention money does not carry any interest.

Main purpose:
1. To make good the defect before the final certificate has been issued.
2. To meet the claim, damages, compensations, if any by the adjoining owner or any of the workmen for any reason
whatsoever.
3. To make the necessary payments to the nominated sub contractors in case the contractor fails in the same.
4. To meet the compensation which may become due from the contractor for the delay in completion.
5. It can be utilized for the necessary adjustments in the final bill, over payment, and in the make up of the bills for
extra work.
6. Any work left out by the contractor before virtual completion can be executed by this amount.
7. Disposal of material wrongly supplied.

4) Mobilization fund:
Before executing works of larger magnitude, the actual work and receipt if payments on account, the contractor is
required to incur initial expenditure for preparatory works, such as recruitment of labor , travel of staff, erection if
temporary structures on site, purchase of centering materials, insurance premium, etc. Such preparatory works involve
financial outlay at the beginning for which liquid finance is essential and this is fund is called mobilization fund.
a) Maximum amount of Mobilization fund is limited to 10% of the contract amount.
b) It is paid in full in one installment within in one month of the award of the work and after signing the contract
against the bank guarantee for the full mobilization fund advanced or paid in two or three stages.
Stage:1
50% of the mobilization fund as agreed is paid within one month of the award of the work and signing of the contract
against bank guarantee

Stage:2
Part released on completion of preparatory works depending upon their value.

Stage:3
Part released on bringing plants and machineries on site again depending upon their value.

It s recovered from each of interim bill at f und specified percentage of interim payment and entire mobilization fund
is recovered on completion of 80% of the work.

It can interest free fund or carrying a specified rate of interest. It is rightly said that Mobilization fund is the backbone
of successful implementation of big scale construction projects.
4) Tender for demolition work.
These tenders are called for demolition of the existing buildings up to ground level or up to road level and removal
all he materials of the same including carting away the debris.
Essentials:
1)The highest and the lowest tender should be approved
2) The tender should be accompanied with certain specified deposit so that work can be carried out
3) The Whole of the tender amount should be taken in advance before the possession of the building is given for
demolition.
4) The Contractor should be asked to take an insurance for accident.
ENTIRE PROCESS OF TENDERING:
10. CONTRACT
CONTENTS:
1) Concept
2) Building contract document
3) Time limit completion of work
4) Different categories of CERTIFICATES to be issued by an architect
5) Determination of contract by CLIENT/CONTRACTOR –impact of it & obligation of architect u/determination
6) Assessment of damage u/determination –various factors and evaluation of damage etc.
CONCEPT OF BUILDING CONTRACT:
A BUILDING OR Engineering contract may be defined as an agreement under which a person (builder or
contractor)undertakes for reward to carry out for other person (owner or employer) works of building or civil
engineering character.
The Indian contract act of 1872 , defines contract as agreement enforceable at law. An “agreement” is defined as
ever promise or every set of promises forming consideration for each other and enforceability must have been
made by
a) Free consent b) Parties competent to contract c) Lawful consideration and object d) Agreement must not be
expressly declared to be void.
EXTENSION OF TIME AND LIQUIDATED DAMAGES:
Condition no 40 of IIA form of contract deals with extension of time and condition no 41 deals with damages for
non completion known as Liquidated and ascertained damages”. If the Contractor finds that he will not be able to
complete the work in time or within the extended time limit , it is compulsory for him to give “forthwith” a notice to
the causes of delay and apply for extension of time.The causes for delay have to fall within an one or more of the
ten compartments:

1) Force Majeure which means if there is strike, breakdown, pandemic , fire etc.
2) Exceptionally inclement weather
3) Loss or damage due to fire , storm, tempest etc as given in insurance clause
4) By reason of civil commotion, local combination of workmen, strike or lock outs this affecting the supply of
labor, materials or goods needed for work.
5) By reason of architect’s instructions in general or instructions pertaining to variations or instructions as to
postponement of work.
6) Not receiving in due time necessary instructions, drawing details or level in spite of written application to that
effect.
7) Delay on the part of nominated sub contractor or nominated supplier.
8) Delay on the part of agencies appointed and employed by the owner.
9) By reasons of opening up for inspection of any work covered up or of testing of any work, material or goods to
ascertain weather the same are as per contract or otherwise.
10) Unable to secure labor, goods and materials for works for reason beyond the contractors control and which he
could not have foreseen at the time of execution of contract.
ARCHITECT’S DUTIES AND LIABILITIES UNDER THE CONTRACT:
1) AGENT OF THE OWNER:
a) To act as owners representative during construction period.
b) Periodically visit the site to find out the progress and quality of the work.
c) To keep informed he owner about the progress of the work.
d) Too guard the owner against defects and deficiencies in the work
e) To Condemn the work which is not as per the contract document.
f) To act within the contract as expressly provided and not to exceed his authority.
g) To stop the work as may be necessary.

2) AS INTERPRETER OF THE CONTRACT:

Fair interpreter of the contract and to see that both parties namely the owner and the contractor discharge thie
respective obligations under the contract.

3) AS QUASI-ARBITRATOR:
To make decisions on all claims of either party as also on all other matters relating to execution and progress of the
work or interpretation of the contract.

4) AN IMPARTIAL ISSUING AUTHORITY:

To issue further drawings, details, written instructions directions and explanations from time to time as may be
necessary.
a) Variations or modifications in design.
b) Quality, Quantity , additions, omissions of substitution of any work
c) Any discrepancy in or divergence between drawings or specifications.
d) Removal of defective work & defective materials
e) Removal of incompetent person employed by contractor.
f) Delay and extension of time.
TIME LIMIT COMPLETION OF WORK:
Construction contracts usually provide for completion by a certain date or within a certain period of time. Some
construction contracts may even provide that construction work is to be completed within a specified number of
working days or in accordance with a construction schedule, critical path method or otherwise.

There can be many legal problems associated with construction completion times. This is a fertile field for lawyers
involved in construction-related practices. Therefore, astute construction people should make every effort to
protect themselves and thus avoid problems, attorney’s fees and related expenses.

It is extremely rare to find a construction contract that provides for a fixed or a determinable completion time
without a companion clause excusing the contractor from delays occasioned through circumstances beyond his
control. The contractor should insist upon such an excuse clause. The contract clauses which excuse contractor’s
delays because of circumstances beyond his control are called “force majeure” clauses; force majeure meaning a
superior or irresistible force.

Typical delay excuse clauses provide that the contractor is excused for periods of delay occasioned because of
delaying activities of the owner or his representative, strikes, shortages or unavailability of workers or materials,
fires, floods, tornadoes, unforeseen casualties, unanticipated adverse weather conditions, other acts of God, riots,
civil unrest, wars, transportation delays and other conditions beyond the reasonable control of the contractor.
LIQUIDATED DAMAGES:

In order to bring home the importance of time for completion of the work known as “time being the essence of
contract” as also to compensate the owner for the loss that may have to undergo to some extent, some provision is
essential making it obligatory on contractor to pay pre –estimated damages in case he fails in due performance of hs
contractual obligations.

Conditions no 41 of IIA Form of contract provides for the above aspect under the head of “ Damages for non-
completion” .
1) Failure of the contractor to complete the work within the specified or extended time limit.
2) Certificate from the architect that the contractor reasonably ought to have completed within the specified or
extended time limit.
3) For such failure contractor to pay or allow to the owner a sum calculated at the rate stated in the Appendix as
agreed “Liquidated damages” for delay period.
4) The owner may deduct such damages from the moneys due under the contract.
DEFECT LIABILITY PERIOD
A defects liability period is a period of time following practical completion during which a contractor remains liable
under the building contract for dealing with any defects which become apparent. Depending on the form of
contract you are reading, it may also be referred to as a rectification period or defects correction period.
A defects liability period is usually a period of around six or 12 months but it can vary depending on the contract
used. Any defects or faults which arise during this period (for example - due to defective materials or workmanship)
must be put right by the contractor at its own expense.

The inclusion of a defects liability period in a contract arguably benefits both the contractor and the employer. For
the employer, it provides an opportunity to request that the contractor return to site and remedy a defect, while for
the contractor it is usually cheaper to return and remedy a defect itself than to be asked to pay for the employer's
losses in arranging for someone else to remedy that defect. Having a practical contractual remedy can therefore
save the parties' time and cost compared to adjudication or litigation.
It should be noted, however, that defects liability periods will only arise if they are included in the contract.
Contractors therefore need to be aware that they do not have an automatic right to return to site to rectify a defect.
Employers, on the other hand, need to carefully consider the wording and requirements of defects rectification
provisions if they are considering hiring another contractor to fix the original contractor's mistakes, or else they risk
being found to have failed in their duty to mitigate their losses.

It is also worth noting that a defect which is not discovered until after the defects liability period has expired is still a
breach of contract for which the contractor is liable (subject to limitation arguments). In this circumstance, the
contractor has no right to return to the site to repair the defect but is liable to the employer for damages.
TYPES OF CERTIFICATE:
1) VIRTUAL COMPLETION CERTIFICATE:
The Architect gives Virtual completion certificate under the following circumstances:
a) When the contractor gives a notice to that effect
b) When the drainage completion certificate has been obtained.
c) When the architect applies for occupation certificate from local authority.’
d) When the local authority grants the occupation certificate.
e) When certificate under sec 270-A of BMC has been granted for adequacy of water supply.
f) When the architect applies fro completion certificate.
g) When the local authority grants completion certificate.
h) When the building is being occupied after water connection has been obtained.

2) INTERIM CERTIFICATES:
1) These certificates are simply statements of facts which show approximate value of the work done or the contract
price of the materials delivered on site. It is merely a ministerial work which does not call for the final opinion
requiring exercise of judgment and skill.
2) They show that the owner is quiet safe in making such payments to the contractor equivalent to work or
materials that value on the owner plot.
3) These are issued during the progress of the works strictly in compliance with conditions of the contract specially
period of honoring certificates, stages of payments, maximum limit of retention fund.
4) Architect cannot be sued for certifying less amount than due to the contractor.
5) These are not binding or conclusive certificates and that the issue of interim certificates does not guarantee that
the works executed are proper.
6) These cannot be cited in court of law or before arbitrators in the event of claim for the breach of contract or
claim on Quantum Meruit.
7) Payment made under these certificates are provisional and are subject to adjustments at the end of contract.
8) Final certificate can be with held even though interim certificate have been issued and the same cannot be made
a ground for the issue of the final certificate.
9) After issue of the interim certificate, the materials cannot be removed form site.
10) Issue of Interim certificates waives the rights of the owner to claim damages on account of delay from the
contractors.
11) These are usually issued at certain stages of work like plinthl vl, firs t slab etc or monthwise or based on the value
of works executed.
12) Interim certificates can be revised by subsequent certificates.
13) Retention fund is required to be considered while issuing the interim certificate.

3) FINAL CERTIFICATE:
As per condition 31 the architect is bound to issue the final certificate for which he has been give three parameters
and out of the three the latest can be adopted like:
a) Fro m the end of the defect liability period which is printed as 12 months from the date of virtual completion
certificate.
b) In case the defects the contractor is required to be issued with the schedule of defects not later than 14 days
from the end of defect liability period., after contractor ha made goods to the defects.
c) The contractor must submit all the documents pertaining to measurements and valuation either before or within
a reasonable time fro issue of Virtual completion. Here the delay will be at the cost of the contractor if he fails to
comply with the same in time.
WHAT IS BREACH OF CONTRACT?

When a Party repudiates or fails to perform one or more of the obligations imposed upon on him by the contract ,
breach of contract occurs which gives immediate cause of action and a right to damages for loss flowing from the
breach.
There are two parties to the contract , namely the owner and the contractor and as such any of them may fail to fulfill
hos obligations under the contract , resulting in the breach of contract , leading to its determination.

DETERMINATION OF CONTRACT BY THE OWNER:

The Owner can determinate the contract on three grounds namely:
1) DEFAULT:
a) The Contractor has left the contract for reasons known to him.
b) If without reasonable cause, he wholly suspends the work and refuses to proceed with same in spite of receiving
a notice from architect to that effect.
c) Fails to proceed with the work with reasonable diligence.
d) Flouts the instructions of the architect as regards removal of bad materials and defective works within the
specified time limit.
e) Sub lets any parts of the contract without permission from the architect whereby the work may be spoiled or
damaged.

2) BANKRUPTCY:
a) When the contractor becomes bankrupt

3) OFFENCES AND OTHER ILLEGAL ACTS:

a) Gift , consideration , inducement or reward in connection with any and all aspect of contract.
b) Committed any offence under prevention of corruption act or any other act.
DETERMINATION BY ARCHITECT:
1. To prepare accurate records of the conditions of the works at the relevant date.
2. To prepare drawings and specifications showing the work as executed.
3. Clients should be advised to take a number o f photograph of the incomplete work.

DETERMINATION OF CONTRACT BY THE CONTRACTOR:

1. Amount of interim certificate is not received with in the period mentioned in the appendix and continuous
default for seven days after of notice that contract will be determined if payment is not made within seven days
from the receipt.
2. If the owner interferes with or obstructs the issue of any certificate due under the contract.
3. Carrying out the whole or substantially the whole of incomplete work is suspended for the continuous period of
length by reasons of:
a) Strike or riots
b) Loss or damaged occasioned by anyone or more of the contingencies referred to in the clause of insurance
against fire etc.
c) Civil commotion
d) Delay by the architect in issuing necessary plans and instructions
e) Delay on part of agencies employed by the owner for works outside the framework of contract.
LUMP SUMP CONTRACT:
.
11. ARCHITECTURE COMPETITIONS
Content:
1.Concept-Norms and Guidelines of COA
2.Types of Architectural competitions
3.Method for organizing the competition
4.Copy right act for architects works:
1.Concept-Purpose of advantages of competition:
1.Brings out a wide range of ideas and concepts leading to projects of high standards.
2.It gives an opportunity to young architects to show their talents and abilities. It forms one of the venues for them to secure a new clients by winning
the competition.
3.Since the competition are research oriented, they offer valuable opportunities for architects to gain experience which will be of use in practice.
4.Even if the architect is not successful in the competition, his taking part in it forms an added qualification for the jobs of practically similar nature and
infuses confidence in him at a time of preliminary discussion with the client .
5. An awakening is created in the public that projects or monuments of today will occupy the position of speakers of the past history to the future
generations.
6. Competitions lend to a helping hand in it by making the public conscious about the art of creativity or architecture, so that the monuments do speak
in future.
PRINCIPAL REQUIREMENT AND CONDITIONS FOR CONDUCTING ARCHITECTURAL COMPETITIONS:
 REGIONAL
COMPETITION

• Competitions
intended for smaller
projects of charitable
trust in which 4-6
local firms compete
for project.
• No premium are given
and the winner shall
be appointed to
carryout the project.
COPYRIGHTS AND RIGHTS OF OWNERSHIP IN COMPETITION.
From Architects point of view:

1. Each Competitor shall retain copyrights in his own competition design.

2. Each competitor shall retain the right of reproduction of his own competition design.

From Promoters point of view:

1. Drawings of the design winning prize will be retained by the promoter as hos property. All other drawings to be returned by the promoter at the end
of competition.
2. Design awarded for firs prize will be used by promoter with the author winning design being retained as architect for the project unless there are pre
declared reservations or valid objections to the same. The right to make use of the design is limited to one execution only and repetition if needed
will be subject to agreed terms and conditions either specified in advance or agreed thereto subsequently including fees aspects.
3. No other design whether permitted or not shall be used wholly or partly by the promoter.
12. Dilapidation-Law related to repairs
Content:
1. Repair-Guidelines for repairs
2. Modality of repair work to be undertaken u/BMC Act +provisions for CGDCR-2017 (updated nov’2019) for related activity
WHAT IS DILAPIDATION:
1) The word “Dilapidation” means wasteful destroying or letting a building run to ruin and decay for want of reparation. This conveys the idea that
meaning of dilapidation is confined to buildings and is either a)an act of destruction, b)an omission to repair.
2) Dilapidation is the injury accrued to the houses, buildings, or erections, during temporary possession of one party whereby a successor or
reversionary sustains damage and for which the law and custom of this realm have provided and pointed a remedy.

So dilapidation is
a) State of disrepair of the building
b) Defective condition of the building
c) Worn out or ruinous condition of the building.

REPAIRING CLAUSE:
a) It makes it obligatory to keep the premise in a good tenantable repair having regard to the age, character, and situation of the house such that it
is fit for Occupation thereafter by reasonable class of tenants. The repairing clause sets out in detail the responsibilities of the lessee so far as the
repairs of the building are concerned.it is the clause which is introduced in the lease document can be worked in a suitable manner depending
upon;
1) the share of the lessee in the repairs
2) the type of repairs like structural repairs leading to improvement, tenantable repairs etc.
3) the liabilities of monthly tenants seldom arise in dilapidation resulting in from failure to carry out the repairs as several statues make landlord
liable for tenantable as well as for structural repairs
4) The law of property provides that the tenant shall not pull down or damage the building belonging to the landlord(lessor) or commit any other
act which is destructive or permanently injurious to the premises. In other words the tenant is prohibited from any act of injury whereby the
building becomes dilapidated. Such act is known as “act of waste” and in India this is governed by The Rent Control Legislations.

REPAIR:
Repairs is a term of wildest connotation whose range arises from upkeep to maintain the property as far as possible in its original condition and
efficiency without the renewal and also include restoration, reconstruction or even renewal of any existing part of the building and at times renewal
of the complete building.

“Any labor or materials provided to restore, reconstruct, or renew any existing part of the building, it fixture or appurtenances.
GUIDELINES FOR REPAIR
1) Statuary provisions for repairs are found in the Acts of Local authorities , Rent Control Legislation as well as in the state acts. These provide for
Obligations both for the tenantable as well as for structural repairs and on failure to fulfill such obligations , alternative modes- are also provided
to prevent the building from reaching a dilapidated stage.

In Mumbai the liabilities of repair are imposed on landlords as per section 354, 381 &257 of the Mumbai Municipal corporation act 1888. Section
354 provides for structural repairs , 381 AND 257 provide for tenantable repairs .

a) Section 354 provides that if any building, wall or other structure is in ruinous condition, or likely to fall in any way dangerous , the commissioner
may , by written notice require the owner or occupier of such a structure to pull down, secure or repair such structure
b) Section 381 provides that the state of the building or premises is such as to constitute a nuisance by reasons of broken plaster of walls, broken
flooring, broken staircase, and leakages through the wall and/or floors causing damages , the land lord is required to make suitable action by
rectifying the above items so as to abate nuisance.
c) Section 257 provides for repairs to drainage works including replacement of broken drain pipes by new ones.

MODALITY ON FAILURE OF LANDLORD TO EXECUTE REPAIRS AS PER MUNCIPAL NOTICES( BMC ACT 1888)
If the landlord has failed to execute the repairs as per Municipal notices he will be prosecuted in court and thereafter necessary authority will be
granted to tenants under section 499 of BMC act 1888 which provides for grant of such authority to the occupiers with rights to recover reasonable
expenses incurred by them on repairs that may become due from time to time It should be noted that recovery procedure starts after the authority
has issued completion certificate as to the satisfactory execution of repairs, strictly as per Municipal notices and landlord has not moved to court
against then notice, authority, certificate as against the reasonable cost.

PROCEDURE AND TERMS AND CONDITIONS FOR AUTHORITY UNDER SECTION 499:
1) Appointment of architect/Engineer to prepare the plans and estimates of repairs as per Municipal notices as well as for other works of incidental
thereto.
2) Application duly signed by the Occupiers for issue of authority to be submitted to the Dy. Municipal commissioner along with plans and estimate
as well as supervision memo of architect and engineer agreeing to supervise the works of repairs.
3) An undertaking on Rs20/- stamp paper duly signed by occupiers to the effect that if the cost of repair exceeds the amount of five years of gross
rent, such excess will be borne by occupiers.
4) Undertaking on Rs 100/- stamp paper indemnifying BMC that any dispute arising between tenants and owner or any other person due to granting
of such repair permission.
5) After issue of authority necessary tenders be invited for the repair work and granted to well experienced contractor.
6) The date of commencement of repair s be communicated to the authority with in the week form starting of the work.
7) No additions, alterations, or change of user is permitted for the structure for which the authority has been granted for repairs.
8.Complaince to any other terms and conditions as may be laid down in the authority.
9. Application by the architect or engineer for issue of Completion certificate after the repairs area complete.
10. Notice to the landlord about the completion of repairs and deduction of the cost of repairs incurred from the rents that may be due thereafter.
13. Important Acts
ELLABORATIONS:
AUTHORITIES/BODIES:
MOEF: MINISTRY OF ENVIRONMENT & FORESTS
GSDMA: GUJARAT STATE DISASTER MANAGEMENT AUTHORITY
BMRDA: BANGALORE METROPOLITAN REGIONAL DEVELOPMENT AUTHORITY
DDA: DELHI DEVELOPMENT AUTHORITY
GEDA: GUJARAT ENERGY DEVELOPMENT AGENCY
EMD: EARNEST MONEY DEPOSIT
RMD : RETENTION MONEY DEPOSIT

ACT:
BPMC :BOMBAY PROVINCIAL MUNICIPAL CORPORATIONS ACT, 1949
GTP& UD: GUJARAT TOWN PLANNING & URBAN DEVELOPMENT ACT
BMC: BOMBAY MUNICIPAL CORPORATION ACT,1888
NBC:NATIONAL BUILDING CODE
ULC: THE URBAN LAND(CEILING AREGULATION) ACT,1976
LAQ: LAND ACQUISITION ACT
COA: COUNCIL OF ARCHITECTURE ACT

LEGAL ENTITIES:
LAO: LAND AQUISITION OFFICER
TPO: TOWN PLANNING OFFICER
TDO: TALUKA DEVELOPMENT OFFICER
CEA: CHIEF ECONOMIC ADVISOR
COW: CLERKS OF WORK

APPROVAL PROCESS:
BUC:BUILDING UTILITY CERTIFICATE
FSI: FLOOR SPACE INDEX
VCF: VIRTUAL COMPLETION CERTIFICATE
GDCR: GENERAL DEVELOPMENT CONTROL REGULATIONS
DP: DEVELOPMENT PLAN
TPS: TOWN PLANNING SCHEME
CRZ: COASTAL REGULATION ZONE
RERA: REAL ESTATE REGULATION AUTHORITY
15. RERA 2016