19-Contract Administration-14-06-2016

CONTRACT ADMINISTRATION
Of Construction Projects
Er. P SURYA PRAKASH, Managing Director

SatyaVani Projects and Consultants Pvt. Ltd.
A 203, Kushal Towers, Khairatabad, Hyderabad - 500 004.
Tel: +91 40 39804646, Fax: +91 40 23308184, e-Mail: suryapp@yahoo.com
OVERVIEW
➢ Introduction
➢Case – Reports
➢Contract Administration
➢Notice Inviting Tender
➢ Issue Of Tender Documents

OVERVIEW
➢Prebid Meeting
➢ Tender Form Given by The Tenderers
➢ Conditions of Contract
➢ Health and Safety Codes
➢ Quality Control
Introduction
• Empower Engineering Process.

• Law makers interference in projects
implementation is destroying the institution
of engineering projects implementation.
• Issuing GOs for every project. Cabinet
decisions for every project and even certain
payments.
• Process
Introduction
• Budget sanction.
• Land acquisition
• Feasibility
• Investigation.
• DPR
Introduction
• Technical sanction.
• Bidding process based on standard
procurement norms. In transparent and fair
manner.
• Contract administration and management.
• Defects liability period.
• Alternative disputes resolution.
Introduction
• Responsibility & Accountability of project

implementing Unit
• Design Engineering Project Management
Consultants DEPMC.
• Board of Chief Engineers BoCE
• Commissioner of Tenders COT to be
strengthened and empowered.
Case Report-1
• Reason for delay in completion of Works:
• Road works are done by M/s. XXXXXXXX and Utilities are done
by M/s XXX
• Utility Crossings, Storm water drain is also incorporated in the
works. Power duct is also included in these works which got
delayed in road packages.
• Lack of coordination between two working groups even though
XXX is the agency involved in both works.
• EPC agency – M/s. XXX took long time in finalizing the designs as
the designs are complex in nature, depending upon the layouts
and clash analysis of various utilities.
Case Report-2
• Reason for delay in completion of Works:
• Initially only road section is awarded but later when MP

consultant prepared the Infra Master plan, necessary
utility crossings were asked to lay so that dig free road can
be realized.
• Land Acquisition delay
• Dewatering problem while constructing Power ducts. To
solve this issue, sewer levels were relooked.
• Expert opinion was taken.
Case Report-3
• Utility Crossings, Storm water, Longitudinal Utilities were

awarded on EPC basis one year after awarding this
project.
• Due to complex in Design, the agency was unable to
complete the designs in time to solve the Utility invert
levels through clash analysis based on the information
provided/ received.
• Lack of Coordination between two working groups even
though M/s.XXXX was awarded the utility works through
transparent bidding process.
Report Case - 4
• Contract Awarded 10 years Ago – Still Live
• EPC Contract
• A Portion of Canal Converted from Tunnel to Open
Excavation
• Advance Paid 8 Cr.
• Because of Open Excavation Land acquisition Could
not be done
• No Mobilisation or designs Finalised
• Contractor claiming 100 Cr. Compensation…….
Report Case - 5
• DEPMC Awarded on 2009
• Contractor in place in 2010
• Contract terminated with R&C provision in 2013
• R&C Contract commenced in 2014
• Still DEPMC Contract alive
• Client insists on deployment of engineers as per contract
• End date of contract is DLP
• No compensation for extended period
• Arbitration provision after Completion
Contract Administration - Role
• Administrative
• Legal
• Technical Particulars, Specifications, Quality,
Drawing
• Communication-Correspondence
• Authority
• Financial Instruments
• Workmen-Health-Safety
• Statutory Compliance
• Risk Management
• Documentation
• Precedence –Schedule-Drawing-PS-Code
• Hierarchy
• Standards
• Protocol
• Reporting
• Governance
• Transfer/Handing Over/Occupancy
• Defects Liability
• Regulation
• Dispute Resolution
• Appellate Authority
• Jurisdiction
• Methods
• Registers
Contract Administration - Stages
• Appraisal
• Sanction
• DEPMC – Investgn.-DPR-Procurement-
Construction-DLP-Arbitration
• Construction Contract – Site Enabling-Execution-
DLP
• JV/Consortium/Collaboration/Coordinated Works
Contract Administration - Stages
• Owners Engineer
• Program Management
• Independent Engineer
• QC-QA
• Facility Management
Contract Administration - Functions
• Contract Start Date

• Site Handing Over and Possession
• Site Enabling
• Contract Communication
• Site Instructions
• RFI – Clarification of Details
• Minutes of Meeting
• Notice of Virtual Completion
• Extension of Time – EOT With Costs, Without
Costs, With Penalty
• Renewal of Bank Gaurantees
• Contract Signing authority
• Contract Operating authority
• Owners Engineer
• Independent Engineer
• Project Manager
• Risk & Cost Contract
• Claims & Settlement
• De-Scope
• Deemed Termination
• Nominated Subcontract in EPC
• Design Approval in DB Contract
• Deviation from Design Brief
• Intermediate Mile Stones & LD cause
• Incentive Clause for early Completion
• Variation orders/ Deviation Orders

• Escalation
NOTICE INVITING TENDER (NIT)
➢Name of Project
➢Scope of Work
➢Approximate Estimated Cost
➢Period of Completion
➢Date of Availability of Tender Documents
➢Date of Submission of Filled in Documents
➢Single Cover system or two cover system
➢Address of Receiving Officer

ISSUE OF TENDER DOCUMENTS
➢Date of Pre Bid Meeting
➢Date of Opening of Filled in Tenders
Tender Documents consist of : -
▪ Notice Inviting Tender
▪ Issue Letter of Tender
▪ Tender Form given by the Tenderer
▪ Gist of Contract
▪ Conditions of Contract
▪ General Codes & Registers
a. Safety Code
b. Health Code
c. Insurance Cover
d. Labour Laws
e. Quality Check
▪ Credentials
▪ Arbitration
▪ Bill Of Quantities
▪ Drawings
PRE BID MEETING
–Date & Venue
–Clarifying the doubts of Tenderers
–Preparation of Minutes of Meeting
–Communicating the MoM to all Tenderers
–Incorporation of MOM in Tender

Documents
TENDER FORM GIVEN BY THE
TENDERERS
Expression of Willingness
➢to do the Scope of Work.
➢to pay the Deposits
➢for the Time Period
➢for all the Conditions of Contract
➢to Advances & Payments and Recoveries
➢for the Penalties, DLP, Liquidated Damages etc.
➢to pay all taxes, Insurance, and other statutes
➢to deploy required Resources
CONDITIONS OF CONTRACT
▪ Definitions and Interpretations
− Meanings of all Terms and Abbreviations
▪ Scope of Work
− Actual Work to be executed out of a Project

▪ Earnest Money Deposit (EMD)
– which is about 1 % of estimated cost
– All the Tenderers shall enclose the EMD in prescribed

form (DD / BG / any other form mentioned)
– EMD will be retained in the case of Tenderer who is

selected and will be returned to others
▪ Initial Security Deposit (ISD)

−Successful Tenderer shall pay Initial
Security Deposit (ISD) which is about
2.50 % of Contract Value (NOT THE
ESTIMATED VALUE) including EMD
▪ Retention Money (RM)
– which is about 5 to 7.50 % of Running Bills
▪ Total Security Deposit (TSD = ISD + RM)
– which is total of all the above

▪ Deductions and all Compensations
– All compensations or other sums of money

payable by the Contractor to the Employer,
under the terms of this Contract, may be
deducted from the Security Deposit or from
any sum that may be or may become due to
the Contractor on any account whatsoever.
▪ Rates
– Before Tendering, the Tenderer is advised to inspect the

site of work, its environment and be well acquainted
with actual working & other prevalent conditions,
position of materials, labour etc. so as to ascertain the
physical site conditions, prices and availability and
quality of materials according to specifications, before
filling and submitting the Quotations.
▪ Filling the Documents
– All entries in the Tender documents shall be clearly

written and shall be in ink and in English. Corrections
if any shall be clearly made and duly signed and dated
by the Tenderer. Each and every one of all erasures and
additions / alterations made, while filling the Tender,
must be attested by initials of the Tenderer. Over-
writing of figures is not permitted.
▪ Tenders liable for rejection

– Unsealed Tenders, Tenders not submitted on the
prescribed Tender Documents, conditional and
unsigned Tenders, Tenders containing absurd rates
and amounts, Tenders which are incomplete or
otherwise, will be considered defective and are liable
to be rejection.
▪ Mile Stones (MS)
– Progress of Work to be completed within particular time period
▪ Liquidated Damages (LD)
– If the Contractor fails to complete the work by the date of

completion as stated in the Appendix or within the time properly
extended and if the Consultants certify in writing that in his
opinion the same reasonable so ought to have been completed, the
Contractor shall pay or allow the Employer the sum named in the
Appendix as ‘Liquidated Damages’ for the period during which the
said works shall so remain incomplete.
▪ Defects Liability Period (DLP)
– The defects, shrinkage, settlements or other faults, which

may appear within the ‘Defects Liability Period’ stated in the
Appendix hereto or if not stated then within 12 months/
5 years in RERA after the Virtual Completion of the work,

arising for materials or workmanship not in accordance with
the Contract in the opinion of the Consultants who shall be the
final authority, upon the directions in writing of the
Consultants and within such reasonable
▪ Defects Liability Period (DLP)
– time specified therein shall be attended and made good by the

Contractor at his own cost. In case of default, the Employer may
employ and pay other persons and make good such defects,
shrinkage, settlement or other defaults, all such damages and
loss. Expenses consequent thereon or incidental thereto shall be
borne by the Contractor. The Contractor shall remain liable
under the provisions of this clause not withstanding the signing
by the Employer of any Certificate of the passing of any accounts.
▪ Payments
– Contractor shall submit bills on periodical basis on

specified date convenient and agreed upon by both
Employer and Contractor. Contractor shall submit
R.A. Bills to Engineer at site, then forwarded to
Consultants for verification and recommendations.
▪ Performance Guarantee
– to be provided by the Contractor
▪ Contractor’s All Risk Policy (CAR Policy)
– Shall be taken by the Contractor for Works and

assets damaged due to Fire, Natural Calamities,
Riots, Dacoits etc.
▪ Workmen’s Compensation Policy
– Policy shall be taken on Workmen towards accidents

at site.
– PF & ESI
– Labor License
▪ Entering into Agreement
– The successful Tenderer shall attend the office of

the Employer on the date fixed by them in writing.
He shall upon written intimation of the acceptance
of his Tender (within 15 days) execute the
agreement in the proper form for the fulfillment of
Contract on a Stamp paper in accordance with Draft
Agreement and Conditions of Contract attached
herewith. The Contractor shall pay for all stamps
and legal expenses incidental thereto.
▪ Consultants’ Instructions, Clarifications & Decisions

– The Contractor shall carryout and complete the
works in every respect in accordance with the
drawings, specifications, directions and to the
satisfaction of the Employer who shall be the final
authority. The Consultants may in their absolute
discretion issue further drawings and / or written
instructions, detail directions and explanations
which are there after collectively referred to as ‘The
Consultants Instructions’
▪ Advances and Recoveries

a. Secured Advance against BG
b. Mobilization Advance Interest/Interest free
-Plant, Machinery and shuttering etc.
…………..…Mobilization & Commissioning
c. Material Advance if any
Amount of Advances shall be recovered from
Running Bills in equal installments in specified
installments.
▪ Payment of Security Deposit
– 50% will be released after Virtual Completion

of the Project and balance 50 % after Defects
Liability Period; however after deducting the
recoveries and the amount due by the
Contractor.
▪ Provisional Schedule of Quantities

–Two complete sets of Drawings,
Specifications and Schedule of Quantities
shall be furnished by Employer to the
Contractor. The Schedule of Quantities shall
be considered to be approximate and no
liability shall be attached to the Employer for
any error, increase, decrease and totally
omitted items of work.
▪ Contractor to provide everything necessary for

proper execution of work
– The Contractor shall provide everything

necessary for the proper execution of the work
according to the intent and meaning of the
Drawings, Priced Schedule of Quantities and
Specifications taken together whether the same
may or may not be explicitly shown or described
therein.
▪ Shall conform to Central or Local Authority Laws &

Regulations relating to work
– The Contractor shall conform to the provisions of any
Acts of the Legislature relating to the work and to the
Regulations and Bye-Laws of any Authority, and / or
any water, lighting and other Companies and / or
Authorities with whose system the structure is proposed
to be connected.
– The Contractor should observe that his work should not
cause any hazard or nuisance to the Public in general
and to the neighboring occupants in particular
▪ Removal of improper work
– During the progress of work, the Consultants

shall have power to order in writing from time
to time, the removal any work or any material,
within such reasonable time as may be
specified in the order, which in the opinion of
the Consultants are not in accordance with
the Specifications and instructions.
▪ Removal of improper work
– The Contractor shall forthwith carry out such an order at

his own cost. In case of default on the part of the
Contractor to carry out such an order, the Employer
shall have the power to employ and pay other persons to
carry out the same. All expenses consequent thereon or
incidental thereto as certified by the Consultants shall
be borne by the Contractor or may be deducted by the
Employer from any money due or that may become due
to the Contractor.
▪ Setting out work
– The Contractor shall set out the work and shall be

responsible for the true and perfect setting out of
the same and for the correctness of the positions,
levels, dimensions and alignment of all parts
thereof. If at any time any error appears during the
progress of any part of the work, the Contractor
shall at his own expense rectify such error, to the
satisfaction of the Consultants and Employer.
▪ Material and Workmanship
– All materials and workmanship shall so far as

procurable be the best and of the respective kinds
conforming to Bureau of Indian Standards described
in the priced Schedule of Quantities and / or
Specifications and in accordance with the
instructions of the Employer. The Contractor shall
furnish to the Employer the invoices, accounts,
receipts and other vouchers to prove the Standards
of materials and if the Employer demand.
▪ Access to Work
– Any of the Consultants, Specialist Consultants,
Representatives of Consultants and the Employer shall at all
reasonable time have free access to the work-spots,
workshops, factories or other places from where materials are
being procured or manufactured for the Contract. And also
they shall have access to any place where the materials are
lying or from which they are being obtained. The Contractor
shall give every facility to them and their representatives
necessary for inspection and examination and test of the
materials and workmanship. The work during its progress can
also be inspected by Technical Examiner
▪ Supervision by Qualified Staff
– The Contractor shall give all necessary personal

super-intendance during the execution of the work
and as long there after as the Employer may
consider necessary until the expiry of the Defects
Liability Period stated in the Appendix hereto. The
Contractor shall also, during the whole time, when
the work is in progress, employ competent and
qualified engineers, supervisors, foremen etc. They
shall be headed by a Project Manger.
▪ Dismissal of Workmen
– The Contractor shall on the request of the

Employer immediately dismiss from the work
any person employed thereon, who may, in the
opinion of the Employer be unsuitable or
incompetent or who may misconduct himself.
▪ Time of completion
– Time is the essence of the Contract. The work should be

completed within the stipulated period from the date of
Letter of Intent. The date of commencement shall be
• (a) the day two weeks from the date of issue of work
order;
• (b) the day on which the Contractor receives the

possession of the site which ever is later;
• (c) The Contractor is asked in writing to take over the

possession of the site.
▪ CPM / PERT Charts
– The successful Contractor shall have to give

CPM/PERT charts of various activities of work
to be done so that the work gets completed
within the stipulated time. The charts shall
be submitted within 5 days from the date of
Letter Of Intent.
▪ Assignment
– The Contractor shall execute the whole of the work

that is included in the Contract. The Contractor shall
not directly or indirectly transfer, assign or underlet
the Contract or any part, share of interest therein. The
Contractor shall not take a new partner without the
written consent of the Employer and no subletting
shall relieve the Contractor from the full entire
responsibility of the Contract or from active super
intendance of the work during its progress.
▪ Sub Contractors
– All Specialist Merchants, Tradesmen and others

executing any work or supplying & fixing any goods
for which provisional sums are included in the
Schedule of Quantities and / or Specification who
may be nominated or selected by the Employer,
who shall be the final authority, are hereby declared
to be as Sub-Contractors and are hereinafter
referred to as ‘Nominated Sub-Contractors’.
▪ Sub Contractors
– The main Contractor shall take approval for the

Sub- Contractors that he intends to employ. The
main Contractor shall furnish all necessary
information regarding the Sub-Contractors. The
Sub-Contractors so approved shall give an
undertaking in approved form.
▪ Assignment & Sub letting
– The Contractor shall not assign the Contract or any part

thereof or any benefit or interest therein or there under
without the prior written consent of the Employer.
– The Contractor shall not sub-let the whole of the works

except where otherwise provided by the Contract. The
Contractor shall not sub-let any part of the works
without the prior written consent of Employer such
liability or obligation under the Contract.
▪ Measurements of Works
– Wherever not specified in the Schedule of Quantities or
elsewhere, the mode of measurements shall be in accordance
with the latest brochure issued by the Indian Standards
Institution of ‘Method of Measurements of Building Works’.
– Should the Contractor not attend or neglect to send such
agent, then the measurements taken by the Employer shall be
final and binding and the Contractor has no right to question
such measurements and calculations.
▪ Plants, Tools & Materials at site
– All tools, plants and materials brought to the

site by the Contractor shall vest in the
Employer and shall not be removed from the
site of works except by permission of the
Employer in writing. The Employer shall have
a lien on these materials and plants.
▪ Failure to comply with Consultants; Instructions
– The Contractor after the receipt of written notice from the

Consultants requiring compliance with such further Drawings
and / or his instruction shall have to comply with the same
within 7 days. If the Contractor fails to do so, the Employer
may employ and pay other persons to execute any such work
whatsoever as may be necessary to give effect thereto. All
costs incurred in connection therewith shall be recoverable
from the Contractor by the Employer on a certificate issued by
the Consultants as a debt or may be deducted by him from any
money due or to become due to the Contractor.
▪ Coordination with other Agencies engaged by the Employer

– The Employer reserves the right to execute any work not included in
the Contract, which they may desire to have carried-out by other
persons. The Contractor shall allow all reasonable facilities and the
use of the scaffolding and plant for the execution of such work, but is
not required to provide any special plant or materials for the
execution of such work except by special arrangement with the
Employer. Such work shall be carried out in such a manner as not to
impede the progress of the work included in the Contract and the
Contractor shall not be responsible for any damage or delay which
may happen to or be occasioned by such work.
▪ Suspension of Work by Contractor
– If the Contractor, except on account of any Legal Restraint

upon the Employer preventing the continuance of the
work, shall suspend the work or in the opinion of the
Consultants shall neglect or fail to proceed with due
diligence in the performance of his part of the Contract,
the Employer shall have power to give notice in writing to
the Contractor requiring that the work be proceeded
within a reasonable time and manner.
▪ Determination of Contract by Employer
If the Contractor
– a) has abandoned the Contract or
– b) has failed to commence the work or has

without any lawful excuse under these conditions
suspended the progress of the work for 14 days
after receiving from the Consultants/ Employers’
written notice to proceed, or
▪ Determination of Contract by Employer
c) has failed to proceed with the work with such due

diligence and failed to make such due progress as would
enable the work to be completed within the time agreed
upon or
– d) has failed to remove the materials from the site or

to pull down and replace work within 7 days after
receiving from the Consultants a written notice that
the said materials or work were condemned or
rejected by the Consultants under those conditions or
– e) has neglected or failed persistently to observe and perform

all or any of the acts, matters or things by this Contract to be
observed and performed by the Contractor for 7 days after
written notice shall have been given to the Contractor
requiring the Contractor to observe or perform the same or
– f) has to the determent of good workmanship or in defiance of

the Consultants instruction to the contrary sublet any part of
the Contract
▪ Determination of Contract by the Contractor
– In any of the following cases the Contractor shall be at liberty to

terminate the Contract by notice in writing to the Employer and he
shall be entitled to recover from the Employer payment for all work
executed: -
– if payment of the amount payable by the Employer under any

certificate of the Consultants as provided for hereinafter shall be in
arrears as unpaid for 60 days after notice in writing requiring
payment of the amount with interest or aforesaid shall have been
given by the Contractor to the Employer; and
▪ Determination of Contract by the Contractor
– if the work be stopped for 6 months under order of

the Employer or by any injunction or other order of
any Court of Law,
– In arriving at the amount of such payments, the

rates contained in the Contractor’s original Tender
shall be followed.
▪ Time being the essence of Contract

– On this job, the timely completion of work is of prime
importance and the work shall be completed within the
stipulated period. The Contractor should submit his action
plan and work schedule with sufficient details to enable the
Employer to assess the feasibility of the same. If any of the
Contractor is not in a position to complete the work in time,
the Employer may decide to split the work and award to two
or more Contractors who will have to work side by side. The
Employer reserves the right to split the Contract among more
than one agency before award of Contract itself at their
discretion if they so desire.
▪ Statutory Regulations
– The Contractor shall conform to the provisions of any Act

of the Legislature relating to the works and to the
Regulations and byelaws of any authority under whose
jurisdiction the work falls. The Contractor shall bring to
the attention of the Employer all notices required by the
said Acts, regulations or byelaws to be given to any
authority. The Contractor shall pay to such authority or to
any Public Office all fees that may be properly chargeable
in respect of the works, and lodge the receipts with the
Employer.
▪ Statutory Regulations
– The Contractor shall indemnify the Employer

against all claims in respect of patent rights and
shall defend all actions arising from such claims
and he shall pay all royalties, license fees, damage
costs and charges of all and every sort that may be
legally incurred in respect thereof.
▪ Quoted Rates
The rates in the schedule of rates shall also

include and not limited to the following:
–a) Cost of transport of Constructional plant,

personnel etc., to site and their withdrawal on
completion of works.
–b) Storage of materials at site and hoisting and

lowering to all levels.
▪ Quoted Rates
- c) Supplying transporting to site, loading,

protecting handling and installation of materials in
accordance with the Contract.
– d) Accommodation of the Contractor’s staff and

labour.
– e) All freights, taxes, levies, duties and royalties,

labour force skilled and unskilled working at the
site.
▪ Extra Items
Rate for items of work required to be done for

which no specific rate has been quoted, shall be:
– a) A rate derived from any allied item of work

in the tender by suitable modifications of
rates of material and or labour as decided by
the Employer.
▪ Extra Items
b) Where no allied item is available a data shall be

prepared based on the current market rate of
materials and labour charges with 15 percent excess
towards CONTRACTORS profit, supervision and
overheads.
– In any case the CONTRACTOR shall get the rate

approved by the Employer by making in writing
before proceeding with the work.
▪ Water & Power
– It should be clearly mentioned who has to get

the Water and Power connection to site.
▪ Cement, Steel & Structural Steel
– Who will supply these materials ?

▪ Installation of Plants & Machinery
– Contractor shall install necessary machinery and plants such

as Batching Plant, D.G. Set, Suitable Pump sets and other
Machinery, Plants and equipment of suitable capacity shall be
installed at site with suitable acoustic and noise control
systems.
– One Quality Control Laboratory with required equipment,

facilities, qualified technicians shall be installed at site to
test the quality of materials of both procured by the Client
and Contractor.
▪ Records of Steel & Cement
– Contractor shall maintain the record of Reinforcement steel

Dia wise/Number of rods in each Bundle/Number of bundles in
each consignment/Approximate length of steel rods/tonnage
of steel, consignment wise etc.. Variations shall be established
by weighing the consignments and same shall be intimated to
the Employer/Consultants time to time.
– The Contractor shall maintain the Record of Cement and

Empty Cement Bangs also.
– The Contractor shall maintain the Records and Registers as

Demanded by the Consultant/ Employer for proper execution
of works.
▪ Testing of Materials
– Contractor shall get all materials tested

immediately on receipt of materials procured
by them or supplied by the owner on their own
cost and furnish the test reports. Materials
like cement, Reinforcement steel, structural
steel, Bricks, sand, aggregate, concrete etc.
• Indebtedness & Liens
– If during the progress of the work, the

Contractor shall allow any indebtedness to
accrue to sub-contractors or others and shall
fail to pay or discharge same with five (5) days
after demand, then the Employer may
withhold any money due to the contractor
until such indebtedness is paid, or apply the
same towards the discharge thereof.
▪ Site Registers
– The Contractor shall maintain Registers for

consumption of various specials, testing of
materials etc,., in the Proforma which will be
given by the Consultant/ Employer from time
to time.
▪ Permissions
– The Contractor shall obtain necessary

permission for using explosives (if required
and specifically permitted by the Employer in
writing) as per rules and regulations of
relevant authorities, and all other approvals
from the relevant authorities shall be obtained
by the Contractor at no extra cost.
▪ No Payment
– No payment whatsoever shall be made by the

Employer, if the Contractor abandons the
work, due to any site difficulties etc.
Delay & Extension of Time
– In the opinion of the Employer, whose decision shall

be final, conclusive and binding, the works be
delayed
– (a) by force Major or
– (b) by reason of any exceptionally inclement

weather or
– (c) by reason of proceedings taken or threatened by,

or disputes with, adjoining or neighboring owners or
Public Authorities, or
Delay & Extension of Time
– (d) by the work or delays of other CONTRACTORS

or Tradesmen engaged by the EMPLOYER and not
referred to in the Schedule of Quantities and/or
Specifications or
– (e) by reason of Employer’s Instructions or
– (f) reason of Civil Commotion, local combination of

workman or strike or lock out affecting any of the
building trades or
– (g) in consequence of the CONTRACTOR not

having received in due time necessary
instructions from the Employer for which he shall
have specifically applied in writing, or
– (h) from other causes which the Employer may

certify as beyond the control of the
CONTRACTOR, or by reason of non – payment of
interim certificate at specified time,
▪ The Employer makes a fair and reasonable extension

of time for completion of Contract. In case of strike
or lock out of the CONTRACTOR shall give written
notice thereof to the Employer as soon as possible,
but he shall nevertheless do all that may reasonably
be required to the satisfaction of the Employer to
proceed with the work.
▪ Disputes if any
– Disputes, if any, shall be settled in Honorable
Courts of Law in the Jurisdiction of Hyderabad and
No Arbitration is entertained.
SAFETY CODE
(a) All safety regulations in execution shall strictly adhere to the

requirements as laid down by the Employer and as per relevant
I.S. Codes of practice for various works.
(b) All necessary personal safety equipment as considered

adequate by the Employer should be kept available for the use of
the persons employed on the site and maintained in a condition
suitable for immediate use and the contractor should take
adequate steps to ensure proper use of equipment by the
concerned.
SAFETY CODE
(c) First aid appliances including adequate supply of sterilized

dressings and cotton wool shall be maintained in a readily
accessible point.
(d) An injured person shall be taken to a public Hospital without

loss of time in cases where the injury necessitates
hospitalization.
(e) All practical steps shall be taken to prevent danger to persons

employed, from the risk of fire or explosion or flooding.
(f) Workers employed in mixing and handling materials or any

nature (asphaltic material, cement, concrete, lime mortars etc.)
shall be provided with protective footwear and protective hand
gloves.
(g) Workers engaged in white washing and mixing or stacking of

cement bags or any material, which is injurious to the eyes,
shall be provided with protective goggles.
(h) Workers who are engaged in welding works should be provided

with welder's protective eye shields, shoes and gloves.
(i) Workers engaged in spraying and applying

chemicals shall be provided with hand gloves,
goggles, nose protectors (air filters) and foot wear.
(j) Stonebreakers shall be provided with protective

goggles and protective clothing and seated at
sufficiently safe intervals.
(k) All the persons within the work premises must

wear helmets.
(l)Persons working at heights of 2 mts and above

should necessarily wear safety belts and helmets.
(m) Any work connected with power shall be done with
prior approval of Employer.
(n) Suitable barricades must be erected wherever
necessary to prevent damage / disturbance to the
working neighborhood.
(o) All scaffolds, ladders and other safety devices mentioned or
described herein shall be maintained in safe condition. No
scaffold, ladder or equipment shall be altered or removed while
it is in use.
(p) Adequate washing facilities should be provided at or near
place of work.
(q) To ensure effective enforcement of the rules and regulations
relating to safety precautions, the arrangements made by the
Contractor shall be open to inspection by the Employer or the
Consultants.
(r) These safety provisions should be brought to the notice of
all concerned by displaying a notice board at a prominent
place of the work spot. The person, responsible for
compliance of the safety code, shall be named therein by the
Contractor.
(s) Not withstanding the clauses, there is nothing in these to
exempt the contractor from the operation of any other Act
or Rules in force in the Republic of India.

HEALTH CODE
▪ House Keeping & Hygiene
– House keeping and hygiene go hand in hand with safe working

practices. Contractors and sub-contractors must leave work
areas in a clean, tidy and safe condition at the end of each
working period.
▪ First Aid Box
– At the work site these shall be maintained in a readily

accessible place first aid appliances and medicine including as
adequate supply of sterilized dressing and sterilized cotton
wool.
HEALTH CODE
▪ The appliance shall be kept in good order. They shall be

placed under the charge of a responsible person who shall be
readily available during working hours
▪ Drinking Water
– Water of good quality fit for drinking purposes shall be

provided for the workers at scale of not less than 3
gallons per head per day
▪ Washing and Bathing Place
– Adequate washing and bathing places shall be provided

separately for men and women. Such places shall be kept
clean and well drained. Bathing or washing should not be
allowed in or near any drinking water well.
▪ Latrine & Urinals
– (i) There shall be provided within the premises of every

work site latrine and urinals in an accessible place.
– (ii) If women are employed (with the specific

permission of the employer only) separate latrines and
urinals screened from those for men shall be provided
on the same scale.
▪ Shelters during rest
– At the work site, there shall be provided free of cost,

two suitable sheds one for meals and the other for use
of rest for the use of workers.
▪ Land
– The Contractor should make his own arrangement for

temporary acquisition of land required for storing his
materials and for housing his staff at his own expenses.
INSURANCE POLICY
The Contract shall take at his own cost the following

Insurance Policies L –
– Comprehensive All Risk Policy
– Contractor’s All Risk Policy
– Damages to Persons & Property
– Fire
– Riots, Civil Commotion and Decoits

LABOUR LAWS
– The Engineer shall ensure that the Contractor maintains

relevant records and fulfills all conditions and requirements in
accordance with all connected and relevant Labour Legislation
including inter- alia :-
– a) The payment of Wages Act.
– b) Employer’s Liability Act.
– c) Workmen’s Compensation Act.

LABOUR LAWS
– d) Contract Labour (Regulations & Abolition) Act. 1970

and Central Rules 1971.
– e) Apprentices Act. 1961
– f) Employers' State Insurance Act 1948
– f) Any other Act. or enactment relating thereto and

rules framed there under from time to time.
QUALITY CHECK
– Quality is an important factor, which shall neither be neglected nor

compromised.
– Quality and Finishing of Finished items, Manufactured items and

Naturally available items shall be checked through Standards, Codes
and Specifications.
– Quality of not only the finished items but also the quality of each
ingredient of the component has to be checked. If any defect is
noticed, it shall be removed / rejected and relied / replaced with the
cost of the contractor.
QUALITY CHECK
– All the materials, which are received to site for the purpose of
execution of the project, are to be checked for their quality and
suitability. The materials shall be conformed to the specifications
incorporated and shall be as per the Codes and Standards.
– The materials shall be of approved and recommended quality.
– The Manufacturers’ Test Certificates and recommendations,

proportions & concentrations of usage shall accompany items and
materials supplied by the manufacturers.
– Tests shall be conducted at an independent Laboratory approved

by the Employer or at the laboratory incorporated at site by the
Contractor. The standards and suitability of equipment,
methods, modes, qualified employees engaged by the Contractor
etc. should be approved by the Employer, if the Contractor
incorporates the Laboratory.
– Quality tests on finished items of work shall also be carried out

as per codes and standards.
– Frequency and periodicity of the tests for each item and material
shall be as per the codes and standards. All the concerned tests
shall be conducted if the batch number, source of receipt, brand of
item etc. is changed. The Contractor on demand shall carry out
additional tests and / or additional number of tests.
– If the Contractor is reluctant or not showing interest, to remedy

the bad works pointed by the Employer and to take up the Low
Rated items, the Employer will arrange for completion of those
works through other agencies and the cost of such works shall be
recovered from the bills or deposits of the Original Contractor.
REGISTERS
– The transactions made in the Project site in respect
of Execution shall be maintained in the form of
Registers.
– Day wise and item wise transactions along with
cumulative figures shall be maintained in respect of
each item of work and material.
REGISTERS
– Authorized representative of the Contractor shall sign the

registers.
– Delivery Challans of the materials received to site shall be

recorded separately for incoming materials.
– Gate Passes in respect of the materials going outside shall be

maintained separately.
The following Registers shall be maintained at site : -
– 1. Concrete cube test results
– 2. Cement Receipt and Consumption
– 3. Reinforcement Steel Receipt and Consumption
– 4. Account of Secured Advances
– 5. Register of Abnormally Hi/Low rates & up to date quantities paid in running bills
– 6. Deviation Statement
– 7. Site Order Book
– 8. Hindrances to work at site
– 9. Date of Receipt of Drawings
– 10. Reduced Levels at site

– 11. Consumption of Anti termite, Water Proofing chemical, Bitumen, Lead, Mastic Pads, etc.
– 12. Concrete Pour Cards
– 13. Progress of RCC works
– 14. Date of casting slabs
– 15. Extra Items Register
– 16. Test Results of Materials
– 17. Log Book of Machinery used
– 18. Registers / Display Boards as required by Labour Commissioner
– 19. Daily Report Book
– 20. Register of Rejections
– 21. Register of damaged items (after receipt)

ARBITRATION
Thank You
ANY QUESTIONS ?
Please Mail to suryapp@yahoo.com
(or)
Call me +91 93933 48484

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CONTRACT ADMINISTRATION

Er. P SURYA PRAKASH, Managing Director

➢Notice Inviting Tender

➢ Issue Of Tender Documents

➢ Tender Form Given by The Tenderers

➢ Health and Safety Codes

• Empower Engineering Process.

• Responsibility & Accountability of project

• Reason for delay in completion of Works:

• Reason for delay in completion of Works:

• Initially only road section is awarded but later when MP

• Utility Crossings, Storm water, Longitudinal Utilities were

• Contract Start Date

• Variation orders/ Deviation Orders

➢Approximate Estimated Cost

➢Date of Availability of Tender Documents

➢Date of Submission of Filled in Documents

➢Single Cover system or two cover system

➢Address of Receiving Officer

➢Date of Pre Bid Meeting

➢Date of Opening of Filled in Tenders

Tender Documents consist of : -

▪ Notice Inviting Tender

▪ Issue Letter of Tender

▪ Tender Form given by the Tenderer

▪ General Codes & Registers

–Date & Venue

–Clarifying the doubts of Tenderers

–Preparation of Minutes of Meeting

–Communicating the MoM to all Tenderers

–Incorporation of MOM in Tender

▪ Definitions and Interpretations

− Meanings of all Terms and Abbreviations

− Actual Work to be executed out of a Project

▪ Earnest Money Deposit (EMD)

– which is about 1 % of estimated cost

– All the Tenderers shall enclose the EMD in prescribed

– EMD will be retained in the case of Tenderer who is

▪ Initial Security Deposit (ISD)

▪ Retention Money (RM)

– which is about 5 to 7.50 % of Running Bills

▪ Total Security Deposit (TSD = ISD + RM)

– which is total of all the above

▪ Deductions and all Compensations

– All compensations or other sums of money

– Before Tendering, the Tenderer is advised to inspect the

▪ Filling the Documents

– All entries in the Tender documents shall be clearly

▪ Tenders liable for rejection

▪ Mile Stones (MS)

– Progress of Work to be completed within particular time period

▪ Liquidated Damages (LD)

– If the Contractor fails to complete the work by the date of

▪ Defects Liability Period (DLP)

– The defects, shrinkage, settlements or other faults, which

5 years in RERA after the Virtual Completion of the work,

▪ Defects Liability Period (DLP)

– time specified therein shall be attended and made good by the

– Contractor shall submit bills on periodical basis on

– to be provided by the Contractor

▪ Contractor’s All Risk Policy (CAR Policy)

– Shall be taken by the Contractor for Works and

▪ Workmen’s Compensation Policy