CAA Book

Contracts and Accountss
Code: 22601
THIRD YEAR DIPLOMA
Miaharashtira State Board:ofTechnical Education (MSBTE

-
Semester VI Civil Engineering Group CE/CR/CS (MSBTE)
SgeRnew revised 1Schege
Nishant A. Upadhye
B.E. (Civil),
Lecturer in Bharati Vidyapeeth's,
JawaharlalNehru Institute of Technology, Pune.
Maharashtra, India
mneanama ** *
***
MDE71A Price7145/
Tech Knowledge
F PubliCatlonS
(BookCode: MDE71A)
ART P.W.D. Procedure to Execute
(O) The Work
4 UNITI
Syllabus:
(PWD).
1.1 Organizational structure of Public Works Department
if any.
1.2 Functions of their personnel, Financial powers
1.3 PWD Procedure of initiating the work*

provision, Expenditure sanction.
1.4 Administrative approval, Technical sanction, budget
contract method, departmetal method rate list
1.5 Methods used in PWD for carying out works
method, employing labours on daily
wages basis.
method, piece work method, day's work
1.1 Introduction
normally carried out by public works department
In government the construction, activates are
culverts etc.
PWD). It deals with building, roads, bridges and
procedure and
proccdure of execution of work, as the general
As an engineer one must know PWD
and procedure should be strictly followed. In
methods of executing work are rigid and rules
are work dealing with different engineering department are:
there are different branches of
1. PWD:It deals with building
and road, bridges culvert etc.
with dam, canal and other irrigation work
2. Irrigation Department: It deals
ete.
It deals with water supply work, sanitary work
3. Public Health Department:
electrification installation of power lines and
4. Electricity department : It deals with
connecting work.
1.2 Organisation Setup of PWD

1.2.1 Administrative Setup
MSETES-14, S-17 S-18. W-18. S:19
C
S14
of.cRWDISE; EE, JE:
teioms 18S19
ayAhe administrative set up chart of PWD
W-18
Sawsiangard:organization chart.of. PWD.
EANEA22TArmETn289
1-2 P.W.D. Procedure to Execite The Work
Contracts and Accounts (MSBTE)
Govamm19nt
Secretary to govenment
Chief engineer (CE)
Superintending Superintending Superintending Superintending

engineer(S.E.) engineer(s.E.) engineer(S.E.) engineer(s.E.)
circle 1 circde 2 circlo 3 circle 4
Executive engineer (EE)
Assistant øxecutive engineer (AEE)
Junior engineer (JE)
Supervisor
Skilled workers Semi skiled. Un skilled

workers workers
Fig. 1.2.1
1.2.2 Organisational Work Setup
MSBTE S-12. W-13. W-17
ogeonal
i
Below diagram will give an idea of P. W.D.

organization in relation to work.
Projec
Labour
Matorial
Overheads
Engaged Departmerntal
by contractor Supplied by Manutactured C.EJAC.E.
contractor or by tho department
supplier
S.E
Work changed
Muster roll
staff labour and D.oE.E)
casual labour
S.D.O.(A.E)
J.E(S.0.)
Fig.1.2.2
P.W.D. Procedure to Execute The
Work
Contracts and Accounts (MSBTE) 1-3
1.2.3 Functions of PWD Personnel

MSETE W-13
1. Chief engineering (CCE)
Chief engineer is administrative head of the department. He is. directly responsible to the
govemment, when department has to execute large mumber of works additional chief engineer,
Tegional chief engineer and deputy chief engineer are appointed to assist the chief engineer.
) Function of chief engineer

(1) To give administrative approval of work under his control.
(2) Acceptance of tender under his control.
(3) Sanction deposit work, full powers.
(4) Purchase of live stock Rs. 30,000/-at only one time.
5) He prepares the budget estimates anmually relating to the work under his control.
(6) To keep close watch over progress of work and expenditure against it.
() Functions of superintending engineer (SE)
MSBTE S-13, W-13:$-15: S-17
He is responsible for execution of work in his circle.
Functions
(1) Administrative approval to the work under his
control
(2) He should give technical sanction to estimates within
his power.
3) Technical sanction under his control
9Inspect work inhis circle.
(5) Arrange payment of store and materialL
(6) Inspect division in his circle and report

to chief engincer.
() To check progress of work under his circle.
(8) Financial control over execution
of original repair work
1-4 P.W.D. Procedure to Execute The Work
Contracts and Accounts (MSBTE
(ii) Function of Executive engineer / Divisional officer (EE)

MSBTE-W-12. W.13. S-17. S-19. W.19
State tunction otExecttveengine

stateany four tuncion
() Inspect sub divisional ofice once in a year.
(2) Execution of work under him
3) Ensures all tools plants and machinery are properly maintainedL

(4) Invite tender for work valued within his power.
(5) Maintenancc of accounts.
(6) He is responsible for preparation of project design, estimate etc.

(7) Keep close watch on expenditure.
(iv) Functions of Assistant enginccr/ SDE/SDO
Assistant engineer is responsible to executive engineer for execution of work in sub division.
(1) Execution of work
(2) Check muster roll
3) Physical verification of measurement book and dead stock.

4)To ensure correct accounts, returns submitted pumctually to divisional officer.
(5) Submit monthly report to progress of work to divisional officer.
(6) Administrative control over office and field staf division.
(v)Functions of junior engineer (JE)

MSBTE- W-12. W-13. W-17. S-18. S-19
Statefuncian ofdunior.en WA2
State anyeghtfuncons gfadunior Erghe
ea0y oU funcions dtadlunioF Ergsnce
(1) Supervision of work in his charge.
(2) Maintain attendance of daily worker, labours.
) Taking measuremeni of all work in MB

(4) Preparation of bills running and final bills for work in his charge.
6) Prepares estimates for all types of works in his section.

(6) Carry out field survey for proposed project
Techdeg
P tiees
to SDO.
( Cary out half yearly check of all storcs in his chargc and submit report
(8) Report to higher authorities for irregularities in contract, specification,
shortage of supply off
departmental materials or any difficulty during execution.
1.3 PWD Procedure for Initiating the Work

MSBTE W-10, W-19
PWD
ine afinitiating theworkiby
dusedin FWD for executiakaWorK paanyenengS A
1. For any work it is necessary to prepare proposal for proposed project justifying the project its
necessity ete for favour of consideration.
2. The department then study proposal considering all respect and when it is found the project is
really important and can be feasible then gives admistrative approval.
3. After getting administrative approval engineering department prepares a detail drawing, Design
and estimates and submit it for technical sanction.
4. A competent authority sudy drawing design and cstimate and then within rules and regulation
sanction the same called technical sanction.
5. Once project is technically sanctioned budget provision is made as per government plan and then
work is taken for execution.
1.4 Administrative Approval

MSBTE S-11:W-12, W-13, S-14. S-15,S-17, W-17, S-18, ,W-18. S-19, W-19
eneaningot teS Adrrinistrative-approval 1W12)

veapprova.
oy technica
w13 S19)
sanction andadmiaistr
nsrative appraval and
818Y
Ue approval WEBWA9:
For any work, project it is necessary to take formal acceptance with
respect to cost, and work called
as administrative approva.
For administrative approval, the department sends
a proposal to government for taking up the work.
After considering all aspect likc feasibility of project
financial aspect government accept proposal
called as administrative approvai.
After getting 'administrative approval detailed
drawing, design, estimate etc are prepared and
submitted for technical sanction.
Techaeadedgi
1.5 Technical Sanction

MSBTE S.11. S-12. S-13. N.13. S-14. S-15. S-18. W-17, w-18. S-19, W:19
aBpan
nstrali
Technical sanction means the sanction of detailed esimate, design, rates and cost of work,
It is sanctioned by competent authority the work is taken for execution only after the technical
sanction.
If the estimated amount excced 10% of administratively approved amount technical sanction is
granted only after obtaining revised administrative approval for work technical sanction once given
remains valid for 5 years.
The govemment gives power of sanction to various govemment officials as follows:
1. Chief engincer - full power.
2. Superintending engincer - up to 25 lakh.
3. Executive engineer
1.6 Budget Provision
MSBTE-S-12. W-12
After getting administrative approval and technical sanction a

report is prepared mentioning raw
material, organizatian setup and total cost required for execution ofproject.
Considering proposal budget provisions are made in
five year plan and yearly budgetary provisions
are made and sanction is given Budget is prepared by finance
department.
It is necessary to anrange required finance for
various activities to carry out progress of work in
sequence and smoothly.
P.W.D. Procedure to Execute
The Work
WorksS
1.7 Methods used in PWD for -Carrying out
MSBTE W.11. S-13. 5-14. S-15
nehta thoasoanyingoEWOIS
DgoutNorkanATl
The following are the various methods for carrying out work.
Methods used in PWD for Carylng
out Works
1. Contract method
)Item rate or unit price møthod

)ltem plus fixed percentage method
2 Departmetal method
H0 Rate list mathod

H) Piece work method
Hin) Day's work method
iv) Employing labour on daily wages
Fig. C1.1: Methods used in PWD for Carrying out Works
1.7.1 Item Rate/Unit Price Method

MSBTE W-13: $-15. W-17
oneMdelat
In this type of method contractor required to quote rate for individual items of
work on basis of
schedule of quantities supplied by department.
Contracts and Accounts (MSBTE) 1-8 P.W.D. Procedure to Execute The Work
In this full descrition of item nnd npproximnte quantities hre mentioned, if actual quantities are
more or less thnn estimnted qunntities but rnte of item remains fixed contract document is necessary
for this method and pnyment is made on the hasis of measturement tnken and work executed.
Advantages
1. Quality of work is assured.
2. It allows extra work/ items.
3. Early completion of work is posible.
4. Economical as contractor is paid on basis of work carried out.
5. Chances of excessive profit or loss is minimum. Thus proves cconomical.
Disadvantages
1. Exact cost of work is not known till completion of work.
2. Both parties have to appoint staff for taking measurement and to prepare bill.
3. Conractor may submit unbalanced tender.
This method is suitable for governmet work like, buildings, road, bridges etc.
1.7.2 Percentage Rate Method
In this method bill of quantities consist of description of item as per sanctioned estimate with their
quantities rates, unit and amount contractor is asked to quote only percentage above or below the rates
shown in schedule.
Advantages
1. Suitzble for private work

2. It allows extra items.
3. Due to assurance of profit better quality of work is assured.
4. Scruiny of tender is simple.
5. Overwriting and erasing of rates can be eliminated.
6. Comparative statement can casily be prepared.
7. No Scope for contractor to submit unbalanced tender.
Disadvantages
1. Final cost of work is not known till completion of work.
2. Two or more contractor can quote same percentage this increases trouble during allotment of
tender.
Teca alege
PubilcItlons
contractor.
3. Uncertain and unworkable rates can be quoted by
4. Tenderer can easily form ring.
Percentage rate method is further classification

I. Cost plus percentagc rate.
Cost plus fixed fee contract.

2
3. Cost plus variable fee contract.
4. Cost plus variable percentage contract.

1.7.3 Rate List Method
MSBTE-W-18
brieftate lstmet ConstUctiontsecnaiD
ein
This method is suitable for petty work the cost of work is small and hence various contracting firms
are not interested in carrying out work and advertisement in news paper is not jutified for work of
small magnitude petty workers are informed accordingly to carry out work.
For such petty work list of petty workers are kept in the office of executive engineer (EE).
Any number of petty workers can be employed on one work at same time provided that cost of any
individual work to be executed does not exceed Rs. 3000/-. The petty workers will quote rate and
lowest offter is accepted.
The selected petty worker sign or afixes his thumb impression to the rate list as acceptance of
rates.
No penalty and security deposit is not payable original work or special repair works are normaly
carried by this method payments will be made on basis of work actually executed at agreed rate.
1,7.4 Piece Work Method
MSBTE W-18. W-19
for.camyina
ninetoeeworkimethod Ogato W8, W19
2 caY
This method is suitable for maintenance and repair work.
Piece work is the agreement which involves the payment for work done at agreed rate without
reference to total quantity of work to be done or time of completion. Agreement contains only
description of itemi tobe executed.
The tender notice is displayed on notice board of the offñce of executive engineer without
mentioning the quantities of work to be done. Item rate quoted either in A and A, form.
Form shall be invited from piece worker. The agreement is made on A, form for percentage basis
and A form for item rate basis.
The piece worker has to arrange for all material and labour required for arrying out work.
Tech
nuhLata
dgi
Workk
P.W.D. Procedure to Execute The
(MSBTE) 1-10
Contracts and Accounts
Advantages
executed.
1. Small works can be effectively
2. Rapid completion of work.
Disadvantages
1.
. No penalty clause
hence can be terminated at any time.
.
2. Piecework is not valid contract and
3. Lack of co-ordination.
FORM
PIECE WORK AGREEMENT
Division **°**
District...
Name of Party tendering..
Name of work. accordance
description of work by piecework and in
I hereby agree to execute the under mentioned the Executive
consideration of payment being made by
with the conditions noted below in rates specified in
Engineer/Sub-divisional oficer .. Division for the quantity of work executed at the
the following Schedule
obi
stipulated rate only

N.B.: Piece work is that which involves the payment for the work done at the
without reference to the total quantity or time.
Dated.. Signature of Party making tender (contractor)
Witness..... Residence....
Accepted by me (Signature)...
Executive Engineer/Sub-divisional Oficer....
Division
1.7.5 Day's Work Method

MSBTE W-10. S-11. W-18
There are certain works of speciai nature which can not be measured hence their valuation is made
on basis of actual material and labour used.
c.g. Decorative plaster work where it can neither be measured accurately and valued correctly
due
to complex nature.
In such cases day work method is adopted for valuation of above items on basis of actuai material
used and number and class of labour employed and tools and plants required for work.
In this method contractor has to maintain day to day account of material comsumed, the labour,
types of labour the hours for which each labour cmployed is filled in day work sheet.
Contractor is paid on the basis of net cost of vurious material required and wages paid to the labour
plus 20-25 as his profit which includes overhcad charges and rent for tools and plants itilizeddit
any.
This method is suitable for:
1. Decorative work Artistic work
3. Special work A. Ornamental work
5. Under water work
1.7.6 Department Method or Employing Daily Labour
MSBTES-11 W-11,S14.S-18
In this method departmen pirchase materialtdireciy.irom supplier and engage:labour on daily

* *
Wages.onmuster.asandawhenrequired
Daily labour-muster Roll system, workers such as mason, carpenters labour etc are employed
directly by department on daily wages.
The material is supplied by department or can be purchased directly from market.
The attendance of total number of labour employed is maintained in muster Roll
form No. 21 by
Juinior engineer and it is checked by assistant engineer. The payment
is made to labour weekly
fortnightly or monthly acording to requirement.
When muster roll is closed for payment it is necessary to measure the work done
during that period
and enter it in measurement book (MB).
The amount paid, total work done etc is also entered. Then muster is
submitted to competent
authority who checks it and passes it for issuing payment order.
The amoumt is then given to site engineer for making payment
to labour in the form of advunce.
The muster roll is divided into two parts part I and part II.
1-12 P.W.D. Procedure to Execute The Nork
Part
marked with his
It is called as Nominal Roll in which daily attendance of labour cmploycd is be
to
nane, father's name designation date of nttendance, rates total anount due signature of person
taking attendance and signature of officer making payment ctc are cntered.
Part
The dctails of measurement of the work donc labours cngaged om muster are recorded in
measurement book and item wise abstract is prepared and this abstract is recorded in part II givingg
refcrence of MB No. and page cto.
Unpaid wages are recorded in a register of unpaid wages maintained in the sub divisíon office and
when payment is to be made from unpaid wages it is made on hand receipt No. 28.
Fom No. 21 -Muster Roll
Cash book voucher No. ...Date
Name of work ...
Part-Nominal Roil
edn
Daily Total ..
Initial of peISOn making daily|
attendance.
Initial ofinspecting officer
Passed for Rs. .... (Rupees...)
Signatire... Rank
Grand total of muster roll... Rs. P.
Deduct - payment not made as per
details
Transferred to register of arrears,
Total amount paid in words rupees
Signature... Rank .
Date
....
*

Rules for writing muster Roll

. The person authorizcd for taking nttendance should take
attendance daily at time of roll call.
2. Muster roll should never be prepared in duplicate.

3. The attendance absence, fine ctc. should be marked in ink so that there will be little scope for
tampering after wards.
4. Details of unpaid wages should bc recorded in register of unpaid wages.
5. Loss of muster roll should be immediately reported to higher authorities.
Different symbols are uscd for marking the attendance of labour in NMR
Present in morning but absent in cvening.
2. Present in cvening but absent in morning.|
4
3. Present in morning and evening.
Absent in morning and evening.

x
and D is used to indicate presence of worker but sent on duty out of his working place.
1.7.7 Differentiate between Daily Wages Method and Piece (petty) Work*
Method
aga Mcth0d ce (netty) Work Metios
1. Daily wages is the method of valuing Piece work method is the method of valuing
work on the basis of time spent by the work on the basis of the quantity of work
laborers. actually done by the petty worker
2. This is the only suitable mcthod of This method is suitable for maintenance and
payment to the coniractor where it is| repair works.
impracticable to value the work done at
the billed rates.
3. The basis of payment as daily wage to The basis of payment to the petty worker is the
the labour is the time spent by the labour quantity of work done by.petty worker.
of work.
1.7.8 Differentiate between Piece Work Method and Day Work Method
MSBTEW-09
wokimettiod ana Daywokmetiod
SNo In this method valuation will be made

It is method of valuing work on basis of
|
I.
quantity of work actually done by petty on basis of actual material and labour
workers used.
2. This method is suitable for This nethod is suitable for

) Maintenance work () Decorative work
) Work like canal, road earth work. (i) Artistic work
Where work can be spilt up in pieces. Cii) Special work
(iv) Work under water
3. The basis of payment will be äctual quantity of The basis of payment will be actual
work material cost, labour cost per day
overhead charger and cotractor's
profit.
4. Agreement is made on A.l form for The workers are not included in
percentage basis and A2 form for item rate schedule.
basis.
Vork
GHAR
de |
2
Contracts
4UNITI
Syilabus
2.1 Definition of contract, Objects of contract, requirements of valid contract, Overview of Indian
Contract Act 1872.
2.2 Types of engineering contract with acvantages, disadvantages and their suitabilities - Lump sum
contract, item rate contract, percetage rate contract, cost plus percentage, cost plus fxed fee,
cost plus variable percentage and cost plus variable fee contract, labour cotract, dermolition
contract, target contract, negotiated contract, All in contract Engineering Procurement
Construction Contract (EPC), Annuity Contract.
2.3 Introduction of FIDIC Conditions of contract.
2.4 Classification of contractor on basis of financial limits, Requirement

of documents for registration
of contractor in Public Works Department (PWD).
2.5 Built operate transfer (BOT)
Project: Objectives, scope, advantages, disadyantages,
Nature of
agreement, mode of payment, examples.
2.1 Contract
MSBTE- S-10. W-10. W-12.
S-13. S-14. S-15, S-19, W-19
OW10
Comtract is an undertaking
by peason or fim to do work under
may certain terms and condition.
The work be of construction repans Supply:ofmaterals läbours, etc.
2.1.1 Overview of Indian Contract
Act 1872
As Indian Contract Act 1872.
Contact is an agreement
necessarily a contact enforceable at law but
each agreement is not
Term contractor means a
A
person/firm which makes
the materials an agreement for
execution of work
,supply of
2-2 Contract
2.2 Objects of Contract
MSBTE W-09, W-11, W-12, S-13, S-17, S-19, W-19
wos
areopectabvalconct W
tateoiecte ontac
1. To execute the work by cxpcrienced pcrsons.
2. To exccute work with most competitive rate.
3. To do work as per specification.
4. To use latest machineries and techniques.
5 To have frec hand for a supervisor to check the work done by contractor without interference.
2.3 Requirement ofValid Contract

MSBTE S-11, W-11, S-12, Vw-12, W-13, S-14, S-15, S-18. W-18, S-19,W-19
tvalid contractndetai 11WS125WES15

wA8N49
Following are the requirement of valid contract:
Requirement of Valid Contract
1. Contracts in writingg
2. Subject matter
3. Can be enforced in court of law

4. Parties.must be competent
5. Free concent of parties
6. Attested by witness
Fig. C2.1: Requirement of Valid Contract

Contracts and Accounts (MSBTE) 2-3 Contracts
1. Contract in writing
Contract should be in writing and should be signed by both the parties i.e. owner and contractor
and incase of government the person authorized should sign contract on behalf of department
2. Subject matter
The subject matter of agreement must be legal and definite. It should be easy to understand not to
complex to understand and exccutc.
3. Can be enforced in court af law
All terms, conditions words shouid be according to law. So that if situation arises the paries
signing should not escape from their responsibilities.
4. Parties must be competent
The parties signing the contract should be competent enough to carTy out work.
5. Free consent of parties
Both parties must give their free consent to do the work as per agreement contract
6. Attested by witness
Contract should be attested by responsible person or officer.
2.4 Types of Engineering Contract

MSBTES-11,:W-13: S-17:VW-17.S-18. W-19
Witihe
toriorpariclar
KLAKRIRHR
Contrats
2*
contract.L
Following are different types of
Englneering Contract
Types of
Lump sum contract

1.
contract
2. tem rate
rate corntract
3. Percentage
percentage rate contract
a) cost plus
contract
Hb) cost plus fixed fee
fee contract
c) cost plus variable
percantage
d) cost plus variable
4. Labour contract
Demolition contract
5.
-
6. Fee contract
7. Target contract
8. Negotiated contract
9. Material supply contract
Fig. C2.2:Types of Engineering Contract
2.4.1 Lump Sum Contract

MSBTE - S-11. S-18. W-18. W-19
In lump sum contract the complete work as per plan and specitication is carried out by contractor
for certain fixed amount as per agreement.
The owner provides required information and contractor charges certain amount. This contract is
suitable when the number of items are limited or when it is possible to work out exact quantities
or
work to be executed.
The detailed specification of all items of work, plans and detail drawings, security deposit, penalty,
progress and other condition of contract are included in agreement
Contracts and Accounts (MSBTE) -5 Contracs
Through it is lump sum contract contractor will bé paid at regular intervai of 2-3 moths as per
progress of work on the basis of ccrtificate issued by engineer inchurge. A schedule of rate is
included in agrccmcnt for making paymcnl of cxtra ilcms.
Advantages of lump sum contract

MSBTE W-11. S-12
1. Total cost of project is known before completion of work.

2 Progress of work is fast
3. Owner need not require to appoint staff to maintain accounts.
4. Contractor can derive more profit by proper plaming.
5. Detailed measurement of work is not required except in case of addition and altermation.
Disadvantage of lump sum contract

FMSBTEW:11 S-12
age
1. This method is suitable for small work.
2 For extra items contractor may demand higher raies.
3. Extra item can be cause of dispute between owner and contractor.
4. Quality of work is not assure
5. Contractor may quote higher rate and thus higher tendering is possible.
2.4.2 Item Rate Contract

MSBTE W-12. W-13. W-171S 18:S-19
It is also called ás,initprice.contraok In this contract contractor are required to quote rates for each
individual items of work on the basis of schedule of quantitics supplied by department.
Rates of contractor for units of items includes material, labour overhead cost and profit.
The schedule includes full description of ftems as per sanchoned estimate approximate quantities.
The actual quantities may be more or less than.estimated quantiüies but rate of item remains fix.
Techasletgi
2-6 Contracts
Contracts and Accounts (MSBT
départment.
cxccutcd by Government, PWD, Railways
This type of contract is suitalble for work
ctc.
This contract is also suitable for building roads, bridges
Advantages of item rate contract

contractor.
1. Quality of work is assured as there is no risk for
2. This contract allows extia items.
proves economical.
3. Contractor will bo paid as per actual measurcment thus mcthod
4. Variation in the quantities can be made during progrcss of work.
lesS.
5. This conuract is balanced as chances of excessive profit or loss is very
Disadvantages of lump sum Contact
1. Total cost of work is not known before completion of work.

2 Contractor can submit unbalanced tender.
3. Both parties need to appoint large number of staff for taking measurement.
4. Classification of material results in to disputes between owner and contractor
2.4.3Percentage Rate Method

MSBTE s-12. W-12,: W-13. S-15,w-17. W-19
ng
What iscostbusc
Describe
W19
In this method bill of quantities consist of description of item as per sanctioned estimate with their
quantities, rates, unit and amount. Contractor is.asked to quoté only percentage above or below the rätes
shown in schedule.
Advantages
1. Suitable for private work
2. It allows extraitems.
3. Due to assurance of profit better quality of work is assured.
4. Scrutiny of tender is simple.
5. Overwriting and erasing of rates can be eliminated.
6. Comparative statement can easily be prepared.
7. No Scope for contractor to subrnit unbalanced tender.
Contracts and Accounts (MSBTE) 2-7 Contracts
Disadvantages
1. Final cost of work is not known till completion of work.

during allotment of
2. Two or more contractor can quotc same percentage this increases trouble
tender.
3. Uncertain and unworkable rates can be quoted. by contractor.
4. Tenderers can casily form ring.
Percentage rate method is further classified as

(1) Cost plus percentage rate contract
MSBTES1
oree S-14)
S
cASRLSASeneee
n this type of contract, contractor is paid the actual cost of work plus certain perCEntage as profit.
of signing
Various contract documents, drawings, specifications are not necessary at the time
agreement.
will be paid
Contractor has to keep all records for cost of material and labours and contractor
accordingly by engincer incharge.
condition,
This type of contract is suitable for cmergency work like difficult foundation
construction of expensive structure ctc.
This contract is not suitable for government work and works of public bodies.
Advantages of costplusipercentage rate.contract

1. Extra item is allowed
2. Suitable for private work
3 Early completion of work is possible
Disadvantages of cost plus percentage rate contract
1. Total cost of work is not known beforc complction of work.
2. Not suitable for government wof

3. No incentive for contractor for early completion of work
4. Contractor may produce fictitious bill
Tech aledgi
FuDICatueas
Contracts and Accounts (MSBTE) Contracts
2-12
2.4.9.4 Introduction of FIDIC

Conditions of Contract.
nC vanous Survey previously taken that indicates onc of the areas that contractors found difcult
n international projects wns the use of unfamiliar contract forms. And hence. introduces the FiDIC
(which mecans the intcrnationnl federation of consulting engincers.) contracts which are reputeadas
the leading contracts in international engineering und construction
projecis.
FIDIC produccs standard form contracts for the construction and cngineering indusiry.
FIDIC is sually divided in two pars:
Fart I consisting of the general conditions which contains the geneal terms of the contract, suc
issues as rights obligations of each party, procedure for payment, variation, certification nd
dispute resolution
Part caoncerning tho conditions. of particular. pplicationi It contains is the conditions: o

particular application and is to beiised to introduce project specifi olauses, such as language öftie
contract, choice.of law, the nane of the person or firm appointéatoactas:Enigincer.or Employers
representative for the project among other terms.
The most FIDIC forms there is a specific order for the documents forming the contract.
The order of priority is as stated below
1. The Contract Agreemet

2 The Lctter of Acceptance (this is the formal acceptance of the contractor's tender and marks the
formation of the contract)
3. .
The Letter of Tender
4. Part I-the conditions of particular application
5. Part I-general conditions of contract
6. The Specification and Drawings
. Further documents (if any), listed in the Contract Agreerment or in the Letter of Acceptance.
2.5 Differentiation
MSBTE S-14
Pablcatlens
Contracts
Fixed Fee Contract

1. Cost Plus Percentage Rate Contract and Cost Plus
Conlikficadecco
pays the
1. In this contract tho owner pays the contractor the |In this contract the owneT
as his contractór the actual cost of work|
actual cost of work plus perccnlage of cost
profit plus a certain fixed amount as his fee.
this case pro-dctermincd amount in terms of|In this contract
determined fee is
2. In
*
percentage is given to the contractor. decided to be given to the contractor.

the owner to
3 The contractor may quote high material rate so that he Fixed fee is decided by
may gct more profit from overall work. be given to the contractor.
The contractor nay getmore profit. Profit of contractor depends upon the
completion of work.
2. Differentiate between item rate contract method and Rate list method
contraet
mtdcontr
1. Contract documents are necessary. Contract documents are not required.
2. Security deposit penalty is payable. Security deposit, penalty is not payable.
It is suitable for Iarge work. Suitable for small work.

3.
4. In this method contractor are required to In this method path worker will quoterate of
quoterate for individual item of work on each item
basic of schedule of quantities supplied to
department.
3. Differentiate between item rate contract and percentage rate contract

MSBTE S-17, S-18:W-19
19 W
1.In this type of contract the contractor In this system contractor is given certain
undertakes percentage
to execute'a work at a fixed over the actual cost of the construction
rate. as his profit.
2. The amount that the contractor receives The amount that the contractor receives
depends
depends upon the quantity of work done upon the cost of construction.
or supplies made.
Techaeateda
D1cato
2-14 Contracts
rcetgorfe cortract
type of contract proper control in the|

3. In this type of contract a contractor|In this
the materials and in labour shall have
reccives payment depending on the purchase of
owner.
quantity of an item and not on the cost of to be cxercised the
by
the item, no need to keep proper control in

purchase of the materials and labour.
4. Suitable for govemment work. Suitable for privatc work.
5.Scrutiny is some what cumbersome. Scrutiny of tender is simple.

Contractor can submit unbalanced tender. No scope for submitting unbalancedtender.
6.
Differentiate between target contractand negotiated contract
ontac
1. Contract is awarded through calling Tenders are not calied but awarded by mutual
tenders. negotiation between parties
2. Open competition exist. No open competition is here.
Chance of dispute will be there. less charges of dispute
3.
4. Suitable for private work. Not suitable for PWD but in special cases adopted
by PWD.
5. Choice of contractor is free and fair. Choice of contractor is not free and fair.
5. Difference bebween item rate contract and Lumpsum contract

EISBTE S-15: W-17, W-18
2ComcareHtes
Apierentiate betweern Limp
tem afecontgnc 24
1.
Inthis method contractor are required to quote| In lump sum contract the complete work
rate for individual item of work on basic of | as per plan and specifiçation is carried out
schedule of quantities supplied to department. by contractor for certain fixed amount as
per agreement.
F7PUbicatioos
Tech
Contracts and Accounts (MSBTE) 2-15 Contractss
rate Ontract
te After the completion of work, a fixcd
2. The payment to the contractor is made on the
basis of detniled measurements of dilnerent| lump

sum amount is paid to the contractor
items of work actually done by him. and in large projects, part payments are
made to the cotractor as different stages
of work on money agreed terms.
3. In this typc of contact, there is need of detailed drawing at the

is no need for| There
detailed drawings at the time of allotting time of allotting contract.
contract. The detailed drawings can be
prepared after the contact is awarded.
contract I suitable for smali
4 It is suitable for large work. The item rate| This type of
contract is most commonly used for all types work
of engineering works financed by public or
goverment bodies.
5. Applicable for all government works. Comparative statement is not required.
6. Comparative statement is required. Not applicable for government works.
2.6 Classification of Contractor W-13:W*17; S-18

MSBTE
ctors
Rtractor aig capaciiesUAN
depending upon technical capability and

The classes of contractor is given by competent authority
below.
financial status contractors are classified as given
For general work.
Nolimit
EClas k
Class 1 upto3 crore
up to crore
Clas 1 1
Class IVup to 30 1akhs
ECass V up to 15 lakhs
Clas VIup to 5 lakhs

KClis VI to2 lakhs
Contracs
2.7 Registration of Contractor

S-18. N-18.S-19
MSBTE-S-12, W12. S-13. w-13: S-14.
iefot regist
State istofdocimentsreru 0as
The person interested i registering his name as contractor has to obtain certificates of registration
by competent authority.
For registration he should submit an application in the prescribed form as given by the department.
The applicant has to submit the following docunments along.with his applucation.
1.Latest income tax.clearance certificate
2. Proof of financial stàtus.
3. Solvency certificate?
4. Listofmachinerywith their condition.
5. List of technical stäffemployed alongwith qualification and experiencë.
6: Professional capacity and experience certificate
7. Attested copies of partnership deed if any
8. Registration fee
Dipioma holders, degree holders can get registration in class
VI contractor directly and they will
be exempted from payment of earnest money at time
of submitting tender. The registration
for 5 years. is valid
2.8 Build Operate Transfer (BOT)
MSBTE W-12. S-13.W-13, S-14:S:15.
S-17. N-17. S-18: W-18. S-19. W-19
It is form of project where government

graniS permissIon to
administrate certain public infra structre
by financing and authorizing
private fim to construct
and
them, to pay off loans reclaim
ivestment by allowing them to collect tools, fees, retal
as states in contract
is over, ownership is transterred back to government and after concession
without any expense. period
Conuacs
2-17
KObecivesofBOTT¥
investment
1. To encourage private country.
foreign investment, techniques and technology in
2. To promote
public budget
3. To release burden on
EAcdvantages.ofBOT
structure is possible.
1. Fast completion of intra
2. Encourage private investment.
Peoples will be benefited from such
projects.
3.
4. Releases burden on public budget.
technology to the country.
5. Promotes foreign investment, techniques and
EDIsedvatages?
1. Chances of drying up of finance during construction.
2. Problems in land acquisition.
3. Political risk.
Risk after construction: Nonpayment of toll by user, changes in tax structure
currency fluctuation
4.
may affect project.
5. Private firms may have monopoly in such project
6. Toll puts burden on public.
2.8.1 BOT Nature of Agreement, Mode of Payment

BOT is new system of contract in which government acquire land and contractor is asked to built
civil work. No investment is made by governmet, no payment is given to contractor only drawing
and estimate will be prepared by goverment and cotractor will execute it accordingly
Examples
1. MumbaiePune erpress highway
2.PunNasikhighway
3 Nagpur expressihnghwEY
CHA
E
3 Tender and Tender Documentss
4 UNIT III
Syllabus
Definiton of tender, necessity of tender, Types of tender-local, Global,
open Limited and
3.1
negotiated tender
- notice, Draftüng
3.2 Notice to invite Tender (NIT) Points to be included while drafting tender
of tender notice.
Addiional
3.3 Meaning of terms: Earnest money Deposit (EMD), Security deposit,
or all tenders,
Perfomance Security Deposit, Validity period, Right to reject one
Corrigendum to tender notice and its necessity. .
instructons,
3.4 Tender documents: Index, tender notice, general instructions, Special
Schedule A, Schedule B, Schedule C, Terms related to tender documents Contract
-
conditions time limit, time extension, penalty, defective material and workmanship,
termination of contract, Suspension of work, subletting of contract, Extra items, Price
variation clause (escalation), Defect liabilty Period, liquldated and un-liquidated damages.
3.5 Arbtration Meaning, Qualiticatijon of an arbitrator, appointment, Causes and Settiement

-
of disputes, Power and duties of Arbitrator, Award of result
3.6 Procedure of submitting filled tender Document (Two envelope system), procedure of
opening. tender, comparative statement, Scrutiny of tenders, Award of contract,
Acceptance letter and work order.
3.7 E-Tendering System - Online procedure of Submission of Tender in PWD.
3.8 Unbalanced tender, ring formation.
3.1 Introduction
After getting administrative approval, technical sanction and budget approval the work is taken for
execution and for this experienced and technically sound contractors are required which carries the work
at reasonatble rate and precision and for this tenders are invited. For execution of work by giving tender
notice in daily newspaper.
Contracts and Accounts (MSBTE Sem-VI) 3-2 Tender and Tender Documents
3.2 Definition of Tender

MSBTE S.10, W-11, S-12. W-12. S-14.S-18.W-18
ehde
ndetandtou yaricus pas
The tender is defined as an offer in writing for execution of certain specificd work or for supply of
specified materials subject to certain terms and conditions such as rates, time limits eto.
NE ItOTender?
MSBTE -S-10, W-11. S-12, W-12. W-13. W-18
Tender is necessary for following purposes

1. To execute work within specified time limit according to specification.
2 To supply materials, labours.
3. For transportation of materials.
3.2.2 Types of Tenders.or Open Limited and Negotiated tender
MSBTE W-11, S-12. W-13. S-13.S-14
The various types of tenders are,
Types of Tenders
1. Local tender
2. Global tender
3. Open tender
4. Limited tender
5. Negotiated tender
Fig. C3.1: Types of Tenders

Documents
Tender and Tender
3-3
Contracts and Accounts Sem-VI)
(MSBTE
respective
1. Local tender tendes are invited by the
local
fulfilled in our country
The work which can be
any work in
competctant authority.
paper and tenders are invited for
news
In this tender, tender notice
is published in local
our country.
2. Global tender local
machinaries and the work which is not fulfilled by
equipment
Some wok required special
to get competitive offers from
contractor.
specialised job or design global tenders are invited
For such big and
manufactures throughout the world.
various specialised frms or reputed
sometimes it is also circulated
published in internationally published news papers
These are
important countries throughout world.
through cmbassies offices located at different construction,
invited for big projects such as Construction of airport, underwater
Global tenders are
express highways etc.
3. Open tender
enteT into comnpetition and due to which
Open tender is suitable for pubiic works any comiractor can
this tender ensure minimum cost.
This tender is not suitable for specialized job.
4. Limited tender
In this type of tender limited number of contractors are invited for filling up tender as limited
contractors are invited, quality of work is assured.
5. Negotiated tender
In this type of tender contract is given by negotiation with one or two contractor
As competition is minimum this method proves costiy, but work can be completed within time and
quality is assured.
3.3 Tender Notice

NSBTEw-09, W:12
Tender notice is very important document for any work. For carrying out work a notice is published
in newspaper under head "Tender notice'.to create interest of contractor. For this tender notice is
published through leading news papers.
All tender notices shouid be published in standard fornat which
includes name of work, estimated
cost, time limit, security deposit, earnest money detaiis etc.
TechKsemtedg
PI 1
Contracts and Accounts (MSBTE_Sem-VI)3-4 Tender and Tender Documents
3.3.1 Points to beIncluded While Drafting Tender Notice

MSBTES-10: W10:w-11.$12.W-19
5 10
WHElar
ust out anyeightpolnts t üdedk draftingtendérhotice
1. Name of agency or department inviting tender.

2. Name of work and its place.
3. Estimated cost of work.
4 Time limit for completion.

5. Mode of submission.
6. Availability of forms.
7. Eanest money.
8. Security money.
9. The last date, place and time before which tenders should be submitted.
10. The time place and procedure of opening tender.
11. Reservation of right to reject any or all tenders without assigning any reasons' is reserved by the
authority should be included.
3.3.2 Drafting Tender Notice
Drafting a specinen tender notice for construction of Guest house building for government.
Assumptions
1. Authority inviting tender is Executive Engineer.
2. Situation at Pune.
Tender Notice
(Public works Department)
No. Date
Sealed item rate tendders in form B, are invited by executive Engineer P.W. Division Pune
from
Tegistered contractors in appropriate class for the following work. .
8arnes
R
1. Construcion of guest house 30,21,500/- 30,215/ 1,51,075/ 18 months
building for Govt. Pune.
Ted Kemledi
Tender and Tender Documents
Contracts and Accounts (MSBTE_Sem-VI) 3-5
can be
refundable cost of Rs. 500/- (Rs. 600/- if required by post)
Blank tender form at a non 1 Pune, upto 4.00 p.m. during
P.W. Division No.
obtained from the office of Exccutivc Engineer . Tenders will be
from..... to
wDrking hours on all working days. (Bxcept Sunday
received in office of Exccutive Engincer upto 3.00 p.m.
and holidays)
on
.....and shall be opened on the same
day at 4.00 pm in prescncc of contractors wlho may liko to attend.

assigning any reason.
The right rescrves to reject any or all tenders, without
Sdl-
Executive Engineer
Pune
Specimen form of a tender notice

class, for the
Seaied tenders are invited in (type of) tender form from registered Contractors...
work as mentioned below and will be received in sealed covers addressed to ....
(Name of agency
inviting tender), duly subscribed with the name of the work, by the undersigned, in his office upto
the
date and time noted as beiow and will be opened on the same day, in the presence of intending
contractors, if possible. A certified true copy of the registration will have to be tendered with the
application, by the contractor, for the issue of tender form.
i. AD amoumt as mentioned beiow should be paid on account of earnest money by cash, or demand
draft drawn in the favour of . .. Name of agency inviting tenders.
Name of work.
i) Estimated cost of work Rs.
ii) Eanest moneY Rs.

iv) Security Deposit
... RS. ..in cash
and Rs. ..through interim bills
v) Time of completion..
vi) Cost of blank tender form (Non-refundable)
Rs. 20 extra if required by post
vi) Blank tender forms will be available between 11 am. to 5 p.m. on week days except on
Sunday and holidays.
vii) Last date ofreceivingtenders.... at... p.m.

ix) Date of opening the tenders. .. al...
x) Class of regisiration of the contraciors to whom the tender is open.
TechKnsdo
ODtatioaS
Contracts and Accounts (MSBTE_Sem-VI) 3-6 Tender and Tender Documents
2: Additional information if any regarding the contract can be obtained from the office of the
understand during office hours only.
3. The offer shall remain valid for 90 days from the date of opening of tenders.
4. The rates of be quoted by the contractor will be in metric units only.
5. The right to reject any or all tenders without assigning any reason is reserved with the undersigned.
Executive
Engineer or Name of the anthority
inviting tender
hoticefo nstructiorn aBoyS oste RS34274680 tobeinvited by

MSBTES.084 Marks.
Soln.
Assumptions
1. Authority inviting tender is Executive Engineer. (given)
Tender Notice
(Public works department)
No. Datc
Sealed item rate tenders in form '8, are invited by Executive Engineer P.W.D. Division, Pune from
registered contractors of class- IV for following works.
Name:okwork Estimated cost Eamest urity Mpleton
in Rs. money
in Rs Depositinks
1. Construction of Boy's 34.27,680 34,277/ 1,71,384/- 18 month
Hostel (including rainy
season)
Blank tender form at non-refundable cost of Rs. 500/- (Rs. 600/- if required by post) can be
obtained from the office of Executive Engineer (P.W.D.) Division, Pune up to 4.00 p.m. during working
hours on all working days (Except Sundays and holidays) from .. to...
Tenders will be received in office of Executive Engineer up to 3.00 pm on .... and shall be
opened on same day at 4.00 pm in presence of contractors who may like to attended.
The right reserves to reject any or all tenders, without assigning any reasons.
Sdl
Executive Engineer
Pune
Documents
Tender and Tender
compoünd wällforGot poechniG dtceM

8.MarkS
R 3 tce ogtie of
constuction MSBTE:: S09:
Rs 90JakhsASsLime sutabedata.
******
Soln.
Assumption
1. Authority inviting tender is executive cugineer.
2. Situation at Panji (given)
Tender Notice
Date
No. irom
invited by executive engineer P.W. division Panji
Sealed item rate tenders in form B, are
registered contractors of class - II for the following work
ESimated HNGN See
COsDdRs MOneym
RS
4,50,000/ 12 month
90,000/-
1. Construction of 90 Lakh (including rainy,
compound wall foor reason)
government polytechnic
Panji
700 if required by post) can be obtained
Blank tender form at non refundable cost of Rs. 600/- (Rs.
Panji up to 4.00 pm during working hours on
al
from the office of executive engineer, P.W. Division,
o
working days (except Sunday and holidays) from
up to 3.00 pm on and shall be
Tenders will be received in office of executive engineer
contractors who may like to attened
opened on the same day at 4.00 pm in presence of
assigning any reasons.
The rights reserves to reject any or all tenders, without
sd-
Executive Engineer
Panji
govemmentpolytsnte costrgik
cionof library buifding:for.g9
2GronSASSuestrtabledata MSBTEW-098. Marks
Soln.:
Notice to the Contractor
Sealed item rate tenders are invited from experienced contractors registered with sate-central
government. PWD for the work mentioned below:
s
E93578
Earnest: S
ofork ESUmated
CoSt Money. Depost
Constuction of library 1.2 core 1,20.000 6,00,000 24 months including rainy

buiding season.
Techledgo
Sem-VI) Tender and Tender Documents
Contracts and Accounts (MSBTE 3-8
Cost of blank tender form is

1000 Rs./ cach (non refundnble.)
1.
to 2/30/2010 bétwoen (11am to 4 pm) except holiday.
2. Period of issue of blank tender 16/2/2010/
with principle of polytechnic.
Details of tenders and other information available
is
3
4 Last date for reccipt of tender is 4/3/2010 upto 4pm.

Tender will be opened on 4/3/2010 at 6pm in presence of contractor.
governmcnt polytechmic coliege
6. Earnest money shall be paid in cash or by DD in name of principle
pune between 11am to 4pm.
should be enclosed
7. Solvency certiicate, a list of important works carried on during last five years
with the tender.
8. Conditional tenders will not be accepted.
9. The polyechnic authorities reserve right to reject any or all tenders without assigning any
reason.
Date:
XX
Name of principe
office address
XXX
E33:4OA
campus costing 8 MSBTE.:St0-S14, 8 Marks
Soln.
Assumptions
1. Authority inviting tender is secretary of Institüte.
Tender Notice
No. Date
Sealed item rate tenders in form 'B,' are invited by secretary, XYZ Institute Pune from registered
contractors in appropriate class for following work.
1. Construction of 80lakh 80,000/- |4,00,000/ 18 months

Ladies Hostel
(including rainy season)
Blank tender form at non-refmdable cost of Rs. 500/- (Rs.
600/- if required by post)
obtained from the office of secretary, XYZ can be
Institute, Pune upto 5.00 p.m. during working
working days. (Except Sundays and holidays) hours of all
from.
sccrctary up to 3.00 pm on ....... and shall be opened on same

Cnd ers will be reccived in officc of
day at 4.00 pm in presence of contractors who may like to atlenl,
Sdl-
Secretary
XYZ Institute
Pune
The right reserves to reject any or all tenders, without assigning any Teasons.
E330Otafta ederknoticer forerson onotaiBratibuidigst6icoPoNecmichopa

MSBTE:W.10,:8.Marks
Assume: suitábe.datat K
aR:5cores
Soin.
Notice to the Contractor
Sealed item rate tenders are invited from experienced contractors registered with sate-central
government. PWD for the work mentioned below
afwork K
1. Construction of| 1.5 core 1,50,000 7,50,000 24 months including rainy
library building season.
1. Cost of blank tender form is 1000 Rs/ each (non refundable.)
2. Period of issue of blank tender 16/2/2010/ to 2/30/2010 between (1lam to 4 pm) except holiday.
3. Details of tenders and other information is availablé with principle of polytechnic.
4. Last date for receipt of tender is 4/3/2010 upto 4pm.
. Tender will be opened on 4/3/2010 at ópm in presence of contractor.
6. Earnest money shall be paid in cash or by DD in name of principle govemment polytechnic college
pune between 11am to 4pm
7. Solveney certificate, a list of important works carried on during last five years should be enclosed
with the tender.
8. Conditional tenders will not be accepted.
9. The polytechnic aithorities reserve right to reject any or all tenders without assigning any reason.
Date
XXX
Name of principal
Office address
XXX
Tech Kaeraledgi
PUitcatios
E Contracts and Accounts (MSBTE_Sem-VI) 3-10 Tender and Tender Documents
for construction of a workshopbuilding oa newipgytechnic.costing RsS

MSBTE N:10 S11:8 Marks
Soln.
TenderNotice
Sealed tenders will be rececived upto 5.00 pm on the 5h of October 2011 by the executive engincer
Pune Division for the following work.
Name of work-Government polytechnic, Katraj estimate cost Rs. 12,00,000/-
The work must be completely finished to the satisfaction of the Executive Engineer within 24
months from the date of the orderto commence the work.
The Tender form with complete sets of blank forms of contract can be obtained from the office of
Executive Enginecr Pune division at Shivajinagar Pune, every day (except Sunday and holiday) from
10.00 am to 5.00 pm at a charge of Rs. 2000 per set.
Each tender must be accompanied by a deposit of Rs. 12,000/-as earnest money
The tenders will be opened at 3.00 pm on the 1sth day of October 2011.
Estimated cost Earmest

in Rs monay:In:Rs.deposit:ln RS GOmpletlon.
Construction of work shop building9 12,00,000/ 12,000/ 60,000/ 24 Months
of new polytechnic at Katraj Pune
Power is reserved to reject any tender or all tenders without assigning any Tcason or given any
explanation. Unless the person, whose tender has been accepted, signs the contract an deposits the
security specified within 15 days, the earnest money deposited by him will be forfeited and the
acceptance of his tender will be withdrawn.
The tendered rates shall be for the complete work and shal include all quarrying charges; royalty.
testing, screening, tools and plats, carriage ot materials to site, removal and changes of rejected
materials, all taxes, income tax sales tax, octroi charges, materials, labour etc.
The tender rates will remain valid for a period of four months from the data of opening tenders.
The quantities in the bill of quantities are approximate and liable to variation or cancellation for
which contractor will not be entitled to any compensation. The quantities of any item or items and the
total cost may very by 20% for which rates shall not be altered
The rate should be quoted in the bill of quantities, legibly both in figure and words.
Executive Engineer
(Pune Division)
i ende naticeioraiherConstructionsof indeperndent ioran buiding forour institute
ecostRSR80 akhs andinvited:bythe ExectiveiEngineer gfPubicworksDepartmentof
MSBTE:W:12, 4Marks
Techlaoeledga
Pu bIICations
Documents
Tender and Tender
Contracts and Accounts (MSBTE Sem-VI) 3-11
Soln.: Tonder Notice
Date:
No
registered
'13,' are invited by secretury, XYZ Institute Pune from
Sealcd item mte tenders in form
contractors in approprinte class for following work.
6OtRIEAHAIIBCutyepo
Namo
S
months (ncluding rairy

Construction Library 80 lakh 80,000/ 4,00,000/ 18
building
season)
required by post) can be
Blank tender form at non-refundable cost of Rs. 500/- (Rs. 600/- if
working bours of all
obtained from the oficc of secretary, XY2 Institute, Punc upto 5.00 p.m. during
working days. (Except Sundays and holidays) from. to ..
on
Tenders will be received in office of secretary up to 3.00 pm on ... and shall be opened
same day at 4.00 pm in presence of contractors who may like to attend.
Sd/
Executive Engineer
Pune
The right reserves Y to reject any or all tenders, without assigning any reasons.
E 3338D
A
rstucnot cins Hostal.EUidig atou piac i
CoresASSUT MSBTE: S-12. S-14. 8 MarkS
Soln.
Tender Notice
For the construction of Girls Hostel Building. Sealed Tenders will be received upto 5.00 P.M. on
the 20 August 2012 by the Executive Engineer Pune Division for the following work.
1. Name of work: Construction of Girls Hostel Building at Katraj Pune.
2. Estimated cost: Rs. 1.5 cores.
The work must be completely finished to the satisfaction of the Executive Engineer within 24
months from the date of the order to commence the work.
The Tender form with complete sets of blank forms of contrnct can be obtained from the office of
the Executive Engineer Pune Division on every day (except Sunday and holiday) fron. 10.00 A.M.
to
5.00 P. M: at a charge of Rs. 3000 per set. Each tender must be accompanied by a deposit of Rs.
1,50,000 as earnest money.
The tender will be opened at 4.00 P. M. on the Septembur 15" day 2012 by the Executive Engineer
or his authorised agent. Power is reserved to reject any lender or all tenders without assigning
any
Teason or given any explanation.
PubiieationS
Contracts and Accounts (MSBTE Sem-V) 3-12
security
nccepted, signs the contract and deposits the
Unless thc person, whose tender hns been his
deposited by him will be forfeited and the acceptance of
specified within 15 days, the carncst money
tender will be withdrawn.
shall include all quarrying charges, royalty, testing,
The tender rates shall be for complete work and
and changes of rejected materials, all
screening, tools and plants, cariage of materials to site, removal
will remain valid for a period of three
taxes, octroi charges, materials labour ctc. The tendcr rates
months from the date of opening tenders. The rate should be
quoted in the bill quantities, legibly both in
figures and words.
GionsofWBMTOadilength2Knestmare a cstis Rs E0Aacs
edenotcd MSeTEW-13 5Marks
QtreReat
Soln.
Tender Notice
No. Date
Sealed item rate tenders in B2 form are invited by Executive engineer DWD pune from registered
contractor or suitable class for following work.
ecurty ime o
mpfetions
01 Constuction of WBM road of 80 lacs 80, 000/ 4,00,000/- 12 months

length
2 km at Pune Nagar Road
Blank tender form at non refundable cost of Rs. 600/- (Rs. 700 if required by post) can be obtained
from office of EE PWD pune up to 4.00 pm during working hours on all working days (except Sundays
and holidays) from to
Tenders will be received in office of EE up to 3.00 pm on and shall be opened on samne day at
4.00 pm in presence of contractor who may like to attend.
The rights reserve to reject any or all tenders without assigning any reasons.
Sd
Executive engineer
Pune
opegngpatga cveringaimparanhpoints
MSBTES15 8Marks
Soln.
Tender Notice
No Date 06/04/2015
Sealed B1 tenders are invited by Executive engincer XYZ institute ffom registered contractors
of
class VI and above for the following work.
Contracts and Accounts (MSBTESem-VI) 3-13 Tender and Tender Documents
Sr No Nan ot work Estimatd ocurity
Construction of school 25 Lakh8 26000/ 50000/ 12 months (including

building monsoon)
Blank tender form at non-refundnble cost of Rs. 500/- (Rs. 600/- if required by post) can be
obtained tom the ofilice secretary, XYZ institute, 10.00 n.m. to 5.00 p.m. during working hours of all
working days (Expect Sundays and Holidays) From 06/04/2015 to 15/04/2015.
Tenders will be reccived in ofice of secretary up to 3.00 pm. On 15/04/2015 and shall be opened
on the same day at 4.00 p.m. in presence of contractors who may like to attend.
The authornties reserve the right to reject any or all tenders without assigning any reason.
Sd
Executive engineer
Building division XYZ înstitute
31Draia tendernoicefo
cai
50Hakths MSBTE W-15, 8 Marks
Soln.
Tender Notice
No.: Date:J.J..
Sealed B1 tenders are invited by Executiv
Engineer XYZ institute from registered contractors of class-VI and above for the following work
Name ofwork
NO mgney
1 Construction of Girls 150 Lakhs 1,50,000 7,50,000 18 months
Hostel Cincluding
monsoon)
Blank tender form at non-refundable cost of 1000/ (Rs. 1100/- requied by post) can be
If
obtnined from the office secretary, XYZ institute, 10.00 am. to 5.00 p.m. during working hours of all
working days (Except Sundays and Holidays) From ....J..to ....d
Tenders will be received in
office of secretary up to 3.00 pm. On......and shall be opened on the samee day at 4.00 p.m. in
presence of contractors who may like to attend.
The authorities reserve the right to reject any or all tenders without assigning any reason.
Sd-Executive Engineer
Building division
XYZ Institute.
tender notico Qrconstruction ornew.girishostelibuilding in GovermmentRolytechnic

2prafta MSBTE:S-16,8 Marks
Soln.
Tender Notice
No. Date: 27/05/2018
Sealed item rate tenders are invited from Class II contractors registered with PWD for the work
mentioned below:
ame ofO stimated cosEamestmoneySecurity deposSt imei
1. Construction of new Girds Rs. 2 crores 2,00,000/ 18,00,000 24 months (includin9

Hostel monsoon)
Blank tender form at non-refimdable cost of 1000/- (Rs. 1100/- required by post) can be
If
obtained from the office secretary, Polytechnic institute, 10.00 a.m. to 5.00 p.m. during working hours
of al working days (Except Sundays and Holidays) From 27-05-2016 to 2-06-2016. Tenders will be
Teceived in ofce of secretary up to 3.00 pm. On 2-06-2016. and shall be opened on the same day at
4.00 p.m. in presence of contractors who may like to attend.
The authorities reserve the right to reject any or all tcnders without assigning any reason.
Sdl
Executive Engineer
Building division P.w.D
ice for constructon of Gif's Hastelbuiiding at your polytechnic campus
costung
Oa esuitable data. MSBTE: W-16:8.Marks
Soln.
Assumptions
1. Authority inviting tender is secretary of Institute.
2. Situation at XYZ place.
Tender notice
No:
Date:
Sealed item rate tenders in form "B,' are invited by secretary, XYZ institute
place....from
Tegistered contractors in appropriate class for following work.
imated costin monoya
1.
RS ompletiong
Construction of ladies 90 lakh 90,000/ 4,50,000/- 18 months
hostel
(including rainy
season)
Techlnudedge
Pubiications
Documents
Contracts and Accounts (MSHTE Sem-VI) 3-1 Tender and Tender
required by post) can be.
Rs. 500/ (Rs. 600/- if
5lank tender form at non-refiundable cost of during working hours of
all1
upto 5.00 p.m.
obiained from the office of secretary. XYZ. institute,
working days. (Exccpt Sundays and holidays) trom... .0....
day a
secretary tu 3.00 pm on and shall be opened on same
Tenders will be received in office of up
4.00 pm in presence of contractors who may like to uttend.
reasons.
The rnght reserves to reject any or all tenders, without assigning any
Sal
Secretary
XYZ institute.
Place
nstuction of Pincipal
PURE MSETE: S-17:8Marks
Ans.
Assumption:
. Authority inviting tender is Executive Engineer.
Tender notice
(Public works departnent)
No. Date
Sealed item rate tenders in form B, are invited by executive Engineer Public works department.
Division Pune from registered contractors in appropriate class for the foilowing work.
1. Construction of principals bunglow for 25,00,000/ 25000/ 1,25,000/ 18 months

govemment polytechnic Pune- 16.
Blank tender form at a pon refundable cost of Rs. 500/- (Rs. 600/- if required by past) can be
obtained from the ofice of executive engineer P.W.D. Division No. - Pune upto 4.00 pm during
working hours of all working days. (Except Sunday and holidays) from....Tenders will be
received in office to executive engineer up to 3.00 pin on..and shall be opened on the same day at
4:00 pm in presence of contractors who may like to attend.
The right reserves to reject any or all tenders, without assigning any reasons.
Sdl.
Executive engineer
Pune
Contracts and Accounts (MSBTE Sem-Vi) 3-16 Tender and Tender Documents
tender inotoe tor tCTOha8FNLadiesnostelr buding at your polytechnic car

Costird RS 10 khASsueany
nevessay t MSBTE : W-17.4 Marks
Soln.
Tender Notice
Tender No Date: 14/11/2017
Seaied item rate tendcrs are invited from by secretary, XYZ Institute of Class IV contractors
registered with PWD for the work mentioned below:
curty
1. Construction of Ladies Rs.100 Lakh 2,00,000/ 10,00,000/ 24 Months (including
Hostel monsoon)
Blank tender form at non-refundable cost of Rs. 1000/- (Rs. 1100/- If required by post) can be
obtained from the office secretary, XYZ Polytechnic, 10.00 am. to 5.00 p.m. during working hours of
all working days (Bxcept Sundays & Holidays) From 14/11/2017 to 30/11/2017. Tenders will be
received in ofñce of secretary up to 3.00pm. On 2/12/2017. & shall be opened on the same day at
4.00 p.m.in presence of coatractors who may like to attend.
The authorities réserv the right to reject any or al tenders without assigning any reason.
Sdl
Secretary
XYZ Polytechnic
costindG RS
ASuSSUabled 25
Crores
MSBTE: S-18. 3 Marks
Soin.: Assumptions
1. Authority inviting tender is Secretary of Institute.
2. Situation at Pure .
Tender Notice
No.:
Date
Sealed item, rate tenders in form
Bare
invited by Executive Engineer P.W.D. Division,
from registered contractors of class Il for following works.
1. Construction of Boys
2.5 Crore 2,50,000/ 12,50,000 36 month (including
Hostel
rainy season)
RContracts and Accounts (MSBTE Sem-M_ 3-17
Blank tendcr fom at non-refundable cost of Rs. /-(Rs. 1-ifrequired by post)
Can be obtained from the office of Bxecutive Engineer (P.W.D.) Division,
up to 4.00 p.n.
auring working hours on all working days (lixcept Sundays and
holidays) fromn
Tenders wvill be reccived in office of Exccitive Engineer up to 3.00 pm on
and
to attend. The right
shall be opened on same day at 4.00 pm in presence of contractors who may like
reserves to reject any or all tenders, without assigning any reasons.
Sdl
Executive Engineer
Ex33.17Drait a tender notice tor conistructiontolibrary

Crore ASSume alnecessary nfomatign
u
AK,
nic colege costog RS 2
MSPTE :W-18,8 MarksS
Soln.
Tender Notice
Tender No: Date: 19/1/2013
Sealed item rate tenders ae invited tiom by secretary. XYZ Institute from appropriate Class
contractors registered with PWD for the work mentioned below:
Name of dmatgd
Construction of Ladies Rs. 2 crore 4,00,000/ 10,00,000/ 24 months inciuding monsocn)|

Hostel
Blank tender form at non-refundable cost of Rs. 1000/- (Rs. 1100/- If required by post) can be
obiained from the office secretary, XYZ Polytechnic, 10.00 am. to 5.00 p.m. during working hours of
all working days (Except Sundays & Holidays) From 20/11/2018 to 30/11/2018.Tenders will be
received in office of secretary up to 3.00 pm. On 2/12/2018 and shall be opened on the same day at
4.00 p.m. in presence of contractors who may like to attend.
The authorities reserve the right to reject any or all tenders without assigning any reason.
Sdl
Secretary
XYZ Polytechnic
HANANASHKUDR
E:3MMBDraftatenceranoficerioraconst ilgmy goverimenINPOecanic
Fslimaledkcostis Bs 3CI MSBTE: S-19:8 Marks
Soln.
Tender Notice
Sealed item rate tenders in form B-2 are invited from experienced and, appropriate class of
contractors registered with state-central government. PWD for the work mentioned below:
Eatlmatod coatEAmOstndi
Construction of library bullding in Rs. 3 crore 3,00,0001- 15,00,000/- 24 months (including

govemment polytechnic monsoon)
1. Cost ofblank tender form is 5000 Rs./ caeh (non refundable.)
(Rs. 5600/- if required by post)
2. Period of issue of blank tender betwcen (1lam to 4 pm) except Sunday and
holiday.
3. The Tender form with complcte sets of blank forns of contract can be obtained from the officc of
the Executive Engincer
4. Last date for receipt oftender is upto 4pm.
5. Tender will be opened on the same day at 6pm in presence of contractor who may like to attend.
6. The authorities reserve right to reject any or all tenders without assigning any reason.
Date
Sdl-
Executive Engineer
ngcoSIng agporat pomis
MSBTE:W-19
Soln.
Tender Notice
Sealed item rate tenders in form B-2 are invited by exccutive engineer from experienced and
appropriate class of contractors registered with sate-central government. PWD for the work mentioned
below:
imated0S
. Construction of hospital 50 Lakhs

S0,000/- 2,50,000 18 months
including rainy
building season.
1. Cost of blank tender form is 1000 Rs./ cach (non refundable.) (Rs. 1200/- if required by post)
2 Period of issue ofblank tender between (1lam to 4 pm) except Sunday and
holiday.
3. The Tender form with complete sets of blank forms of contract can be obtained from the ofice of
the Executive Engineer
4. Last date for receipt of tender is upto 4pm.
5. Tender will be opened on on the same day at 6pm in presence of contractor who may like to
attend..
and Accounts (MSBTE_Sem-VI) 3-19 Tender and Tender Documents
Contracts
all tenders without assigning any reason.
The authorities reserve right to reject any or
Date
Sd
Executive engineer
xXx
3.4 Important Tems in Tender

3.4.1 Eamest Money
MSBTEs10. S-12S-13.:W-13S-14. S-15:S-17: S-18.W-19
es one
When ft 3finded2
arnesNtONey
plain wittodrat.coigendumto tender notice vVhatis is necessiy
eaningsiGteamestmoneyd
pan treararnnsecdgrde
0t and eamestim
While submitting tender contractor has to deposit certain anount about 1 to 2% of estimated cost
with department as earnest money as guarantee of the tender, so that contractor may not refuse to
accept work or run away when his tender is accepted
If contractor refuses to accept work his earnest money is forfeited and contractor whose tender is
not accepted is refunded.
The amont of eanest money depends upon estimated cost of work.
Earnest money should be in cash or encashable at any time.
3.4.2 Security Deposit
MSETES10, S-12: W:13.S-14, S-15. W-17, W-19
ectedMNEn t is forfeited
Syetie
apasi
After acceptance of tender, contractor has to deposit a certain amount with the department
or owner
is cailed as security deposit, it varies from 5 to 10% of total estimated cost of work.
If contractor fails to fulfill work as per termns und condition, his whole or part of security
deposit is
forfeited by department. It is returned to contractor atter three months from date payment
of of final
bill or after the expiry of guarantee period which is earlier.
Tech de
Contracts and Accounts (MSBTE_Sem-V) 3-20
machinery or material issued by owner. If
Sccurity deposit also serve security against plants,
submit somc amount and remaining will be
amount of security is more, then contactor may ask to
deducted in installments from liis running bils.
3.4.2.1 Additional perfomance security doposit
sometimes arcat a much lower rate than the
In tenders for Govcrmment works, bids received
Bstimated Amount put to tender. In such cases, to censure the quality
and proper execution of the
work in public interest.
be obtained from the
Additional Performance Security is about 10% of the tendcred amount shall
successful bidder
or less of the
Additional Performance Security is charged only If the accepted bid value is 80%
Estimated value of tender.
ay
The Additional Performance Sccurity shall be submitted in the form of Bank Guarantee from
Scheduled Bank before issue of the Work Order.
seven
If the successful tenderer fails to submit the Additional Performance Security within
working days from the date of issuc of Letter of Acceptance, his Earnest Money will be forfeited
.
The Bank Guarantee shall be returned immediately on successful completion of the Contract
If the contractor fails to complete the work successfully, the Additional Performance Security shall
be forfeited at any time during the the contract period
3.4.3 Validity Period
MSBTE-s-19
It is a period within which the rates quoted by the contractor are valid. Beyond this period the
contractor either may agree-or he can refuse to accept the rates for executive the work. This period starts
afier the tender is submitted. Period depends upon the importance of work, amount involve and time of
completion. It ranges from 30 to 90 days.
3.4.4 Right to Reject One or All Tenders
MSBTE W 10. S.12. S.13. S15. S.17-W-17. S-18
W0
Tec&ao
Contracts and Accounts (MSBTE Sem-V) 3-21 Tender and Tender Documents
Rights to Rejoct One or All Tenuers
1) Rejection of lowest tender
2) Rejection of all tenders
3) Carrigendurm to tender notice

and its rnecessity
Fig. C3.2: Rights to Reject One or All Tenders

(1) Rejection of lowes tender
) When tender is not submitted in particular form sold by department.
i) The lowest tenderer may lack in experience for work.

(ii) Eamest money is not enclosed ailong with tender.
(iv) Unsatisfactory reputation of lowest tender.
(v) In adequate finance to execute work.
(vi) Inadequate conection of fair rates are not received.
(vii) Tender is not signed by contractor.
(vii) If any page is removed from document

(ix) If any extra terms and condition is placed by contractor.
x) Ifcontractors is black listed by any department.

(2) Rejection of all tonders
MSBTE W.10
All tenders are rejected in the following cireumstances :

. When minimum number of tenders to cinsure adequate competition is not received
2. After publication of tender notice in news papers, it is found that changes in designs are very
essential.
3. When any fraud is detected.
4. The lowest tenderer has quoted very high rates than estimated rate.
5. There is no competition for the work and minimum mumber of tenders are not received.
6. There is colisions among the contractors.
7. Sickness, financial reverses or unforeseen happenings has occurred with the owner which unables
the owner to proceed with the work.
Tec d
(3) Carrigendum to tender notice and its necessity

MSBTE S-13, S14 Š-191
an
ce
coIngeridrmito fengagg
can be extended under following conditions:
Last date of accepting complete tenders forms
1. When time period to prepare tender for contractor is, short.
When there is any major change cither in design, drawing, spccification or in amount.
3. Tender papers are not ready in office.

4. Suficient number of blank tender forms are not sold.
The extended of last date and time of issuing and accepting the tenders must be brought to the
notice of all the contractors by advertising the same in the form of corrigendum to the tender noticc.
3.4.5 Corrigendum to Tender Notice
In continuation of tender notice published in this newpaper dated.. it is hereby notified that
the dates of issues and receipt of tenders for the work of. have been extended upto ....... and
TEspectively.
All other conditions remain the same.

Date:..
Sdl-
Executive Engineer
3.5 Tender Document

S BTES-14
S de OlalinkealnonleWntiwh standardiformat IS:14
Tender document is very important document for contractor as well as owner, department which
gives detailed procedure about tendcring and filling the tender.
3.5.1 List of Tender Documents
MSBTE W-12, S17.W17
Cotracts and Accounts (MSBTE_Sem-Vi) 3-23
List of Tender Documents
1. TtUe page
Index
3. Tender rotice
4. General instructions
5. Special conditions
6. Fom of contract
7.5Schedule 'A'
8. Schedule 'B'
9. Schedule C
10. Specifications
11. A complete set of

drawings (contract drawings)
Fig. C3.3: List of Tender Documents
1. Titie page
This is the first page of document, giving details as the name of work, cotract agreement umber,
estimated amount etc.
2 Index
Showing contents of documents with their respective page numbers.
3. Tender notice
The tender notice inviting the quotations from different contractors is included which forms a
important documents.
4. General instructions
General instructions are inserted in beginning of tender documents.
These will guide the contractor in filling and completing the tender documents.
5. Special conditions and terms
Conditions of contract mainly depend on the nature of work. That includes regarding the use of
special construction equipments, taxes, etc.
Iypicalspecalconditions are
a) Time limit mentioned in tender notice including rainy season also.
b) Coutractors shall make arrangements for constructing sheds for his staff and workcrs.
Pabttcatieis
(MSBTE_Sem-VI)3-24 Tender and Tender Documents
equipment that he possess.
c) Contractor should submit list of all
Hand mixing is not allowed, use
concretc mixer.
d)
6. Form of contract
P.W.D. and other public bodies have agrced
form such as A1, A2, B, and B2 etc.
1 Forpicce wOrk ( Tat)

A or piece uprk(ditemrutey
Percent rate ** ********"
and minor works
contract) for.original major
tender for contracts (rcgular******t
ieusoia
supply.of materiäls
Far .te hua*****
7. Schedule 'A'
MSBTEW-09:S-10,S-12, W-12:S-14: S15, S-17.W:1ZW-18,S-19:w-19
10,S12
S-14)
OWatis Sctedne 8W19)
5
OETanthe schedule
Schedule Ais statement shówing details of materials supplied to contractor by PWD store, and the
rate at which materials anre to be charged.
partictiars commoniysshiowninschedule SAarej
) Description of material to be supplied.
(i) Approximate quantity
() The rates at which the materials will be charged and
Civ) The place of delivery of the material.
Schedule A
RIaCEo
Sign of contractor Signature of Owner/EE

Date
Contracts and Accounts (MSBTE Sem-VI) 3-25
antuenthileissuif
9uidsee hatiie
teRderO
8. Schedule "B'
MSETE S:10:W-10: S:12,W-12. S-14, S-15:S19:W19
Mrat is Sthede e Explalns
Eplain SGiedul
heaue
atnSCeaule
ScheaiieBR
Schedule B' consist of description of cach item, approximate estimate quantity, rate per unit, the
amount of each item and total amount of all the items.
A contractor has toinsethis srates on schedule Eonly
Schedule 'B'
List of items of work to executed.
Note
2.
3.
Signature of Contractor Signature of

Date Owner/ Executive Engineer
9. Schedule 'C'
gSBTE0N 12, S14
State use O
It is the list of items along with item numbers, standard page number of detailed specification
booklet, specification item number, and specifications.
Contracts and Accounts (MSBTE Sem-VI) 3-26 Tender and Tender Documents
This is for machincries, specials plants, rates ctc.

Proforma of schedule -C
Site of work:: Place
dad RaeSpecifieation tem dditionalt diction
LI
10. Specification
Specification are the written instruction provides rogarding work, its nature, workmanship to be
employed in construction and the method, precautions ctc.
Specification should not contnin irclevant material. The gcncral or particular specification arc
generally included in tender document.
Due to importance of specification it is not uncommon to give cross reference to printed standard
specification published in book.
11. A complete set of drawing
A complete set of drawing shall be included which gives contractor necessary inforimation
It also helps contractor to visualize the nature of work eaily. The important thing is that contractor
has to carry out work as shown in drawing. In case of dispute drawing plays an important role.
12 Schedule rate
It is list of rates of various items of work which helps contractor in preparation of estimate.
Rate pernit ofvarious:ifems, rates ofwages ofdlabour rateotiransport are igiven in schedulesof
ebookmaiutamedinengineering departmentinthe form of printedbook
*****
3.6 Terms Related to Tender Documents

3.6.1 Time Limit
MSBTEW:12:S-19
me imit S-19)
Por any work it should he comnpleted within fix period beyond that period contractor is liable for
penalty.
The contract includes, the period of completion specifying the date month and number of working
days.
Documents
Tender and Tender
The time allowed for completion of work includes rainy season als0.
The delay in complction of work may be caused due to

owner, contractor or natural calaities.
owner or natural calamitics contractor will not be penalized.
it delay in work is due to
completion
Contractor should aware about time limit and thus should
naintain progress of work to
within time limit.
3.6.2 Time Extension MSBTEVW:10
Sthaneane ct tmo exenslan

to executive engineer giving all tne
For tume extension contractor has to submit an application
particulars and rcasons for delay, before onc week of expiry of the time limit.
amd may grant an
Theexecutive engineer considers the request and verifies the reasons given
extension on reasonable grounds.
3.6.3 Penalty
MSBTE- W-09
Ifcontractor fails to give satisfactory work as per specification condition of contract then penalty is
imposed on contractor penalty is sort of fine.
Amakinumpenalty.upto10% of contract amoumt can be impOsed on coütractor?
if
Any work it is not as per specification shall be dismantled and reconstructed at the cost of
cotractor and the amount shall be recovered from biils of contractor.
3.6.4 Defective Material and Workman Ship
S BTE S-15.W-18s
CIEuSSe ditions
If any work if it is completed with defective naterial and poor workman ship and any defects are
observed.
It is responsibility of contractor to rectify those defects at his own expenses and if he is unable
to
rectify those defects he has been penalized by engineer in charge or it may be rectified by
inviting
another contractor at the cost and risk of previous contractor.
S
3.6.5 Temination of Contract

MSBTE W.10.W 19
Eplayouatunte contaciteminatsd vnowi9

The contract can be terminated by competent authority the contract may be terminated under
following conditio
(1) Ifcontractor does not fulfill terms and conditions of contract.
2) Ifcontractor does not maintain progress of work.
(3) If contractor sublets his contract.
(4) Cotractor fails to compiete work within stipulated period.
5) Bankruptcy.of contractor.
(6) Mutual agreement betwecn the parties to terminate the contract.
3.6.6 Suspension of Work
If the work carried out by contractor is not as per specification, design an drawing the work can be
suspended by competent authority and it is informed to contractor in writing fresh tenders are
invited to
carry out this work.
3.6.7 Subletting of Contract
FM$BTES:17
tingtofcong
In subletting contractor who is awarded with tender gives or transfer some
portion of work to
another conitractor to carry out work this letting out portion
of main work is called as subletting.
Subletting of work is not advisable. Due to subletting, is
it very difficult to fix responsibility and
setting the accounts. In some cases subletting is desirable
beneficial for owner such situations are as
follows
(1) Subletting part of work to a specialized firm.
(2) lness/ sickness ofcontractor
(3) Financial difficulties of main contractor.
3.6.8 Extra Items
Comtractor quotes rate for quantities
given in schedule 'B' but during execution additional item
execution may arise which necessary of
is for successful completion of work.
In such cases item is refcred as extra
item and additional charges are required
contractor. to be paid to the
Extra items may occur due
to unforeseen happening at the site,
specification. changes in drawing design
of
Contracts and Accounts (MSBTE_Sem-V)_ 3-29 Tender and Tender Documents
3.6.9 Escaiation
MSETE WA0 W12, S 17
For large / big project completion period is large and at the same time the cost of material and
labour increases day by day.
It is very dificult for contractor to find out such rise in labour material cost while quoting tende,
which definately afect quality and progress of work..
So to overcome these draw back contract includes aprice variation clause.
According to which contractor has to pay compensation for any variation in material, labour etc.
.
1is clause for contractor for work whose estimated cost is more than 5
1s appiicable acs and
completion period is more than 1 year.
The amount of compensation is paid to contractor is calculated by empirical formulae.
3.6.10 Arbitration: Meaning, Qualification of an arbitrator, appointment,
Glauses and settlement of disputes, powers and duties of arbitrator,
award of result.
MSBTE W-09 S10 S12W13: S-15. S:18.W-19
He should be honest impartial and dis interested in any of the parties involved
He should be person of high integrity and faith in justice
According to Arbitration act1940.lhuse2StOsátle tisputefollowingprocedure is adoptea
****** ***
1. Appointment of arbitrator by higher competent authority within 30 days after receiving

complaint and claim from contractor. contractor must submit his statement of fects within 90
days
2. Preparation and submission of case to arbitrator all documents will be given to arbitrator
which consists of deed, drawings, specification, condition of contract, complaint ,claim,
statement of facts bills corresponding to dispute
3. Hearing of case by arbitrator as per the provision made in act, the total hearing shall be
completed within four months
4. Issue of award-after hearing both the parties arbitrator will give decision
5. If decision is accepted by both the parties the award will be written on stamp paper and will be
signed by arbitrator
Contracts and Accounts (MSBTE_Sem-V) 3-30 Tender and Tender Documents
6. If decision is not acceptab!e by either party then the party has right to file suit in court of law
for further action, and it is resolved by regular judicially procedure
During execution of work owner and contractor may come across situations where disputes
amongst them may arises.
If dispute is not solved it may affcct progress of work.
as arbitration and the
This process of seting the dispute between owner and contractor is called
person who settles such dispute is called as arbitrator.
Due to arbitration legal formalities can be avoided and quick result is possible.
depth knowledge of work,
The arbitrator should be a person having experience of work and have in
acceptable to both parties.
rules, procedure and law and main thing is he should be impartial and
and discuss dispute in
The fee for arbitrator is shared by both parties. Arbitrator hears both parties
detail and then give his decision which is final and binding on both parties.
Ifhe is unable to solve the dispute he can refer it to court of law for judgment
3.6.11 Defect Liability Period
FMSBTES-12 S13W9
oillty penod
13
is supposed to remedy all defect due to faulty
Defect liability period is period in which contractor
12 months after completion of work.
material, bad workmánship this period is generally adopted as
rectified by contractor and if he fails to do so then
Any defect noticed within one year shall be contractor
is recovered from security deposit of
departmet/ owner will get if rectified and its cost
and if he efuses to pay the cost.
3.6.12 Liquidated Damages
MSBTE S.10.W.10. S15.W19
anin brettiuidated damages in

payable to owner by contractor due to delay
Liquidated damage is an amount of compensation
damage.
construction of work it has no relation with actual
excess pcriod
amomt of compensatien ranges from Rs. 50 to Rs. 400 per day of delay for
The recovered
in contract liquidated damages are of
required for completion of work than specified
umderfollowing situation
(1) Delay in giving possession of land.
(2) Time limit is not mentioned in contract
work.
6) Delay due to extra items of edgi
Tech
Piltatiems
*
Contracts and Accounts (MSBTE Sem-VI) 3-31 Tonder and Tendor Documents
rere
3.6.13 Unliquidated Damagos

MSBTE S15
uctual darmage done.

This is known as ondinary dannges having relation with the
It will incrense or deurcasc necording to inerease or decreuse in the
damago.
For the non-completion of the work within due date of completion, or

for not maintaining progress
as per condition of contrnct.
3.7 Filling the Tender by Contractor and Points to be Observed by

Contractor
MSBTEw-09.W-18
Following points shall be observed by contractor before filling the tender form:
(1) Careful study of tender document which includes drawing, specification, condition of contract, time
limit, earnest money security deposit etc.
) Contractor then should visit the site and should collect information regarding
(1) Approach roads
2) Material, labours available nearby site.
3) Types of soil, depth of water table.
(3) Probable time of completion for calculating establishment charges.
(4) Conractor should work out the probable cost of unremunerative work such as canstruction of
approach road, construction of temporary ofice, store shed, electricity etc.
(6) Afer considering above factors he shouid quote finaily considering overhead charges and profit.
3.8 Procedure of Submitting Filled Tender Document

MSBTE-W.10:S13.S-14. W.17, S-18
submttns
gnsggn otenden
awarcit
The contractor are required to submit their tenders on or before the date and time mentioned
of
fixed by department/ authority in sealed envelope.
TENDERS are submittedin envelopes marked as 1,2,3
and 4
FDIlcatloS
and Tender Documents
Tder a
Tender
Accounts (MSBTE Sem-V)
3-32
Contracts and
(1) Envelope 1 notice of invitation to tender.

Envelope 1 contain
earnestmoncydposif in the form indicated in the
(2) Envelope 2
comains
(1) Income tax clearance certificatc.
2) Solvcncy certificate from bank.

(3) Certificate of registration as contractor.
(4) Details of technical personnel availnble.
carried out by tenderer.
(6) List of works of similar nature and magnitude
(6) Details of plants and machinery available.
(7) Complete details of work in hand at the time of subuission of
tender.
(8) Details about firm
9 Covering letter to tender.

(3) Envelope 3
This eivelop.containthe priced tenderfom
(4) Envelope 4
Thisenvelopcomtains allaböve three cnvelopes and itispropetbysealed and endorsed on outside
face tender for name of project.
3.8.1 Procedure of Opening Tender
The tenders are opened on the date and time mentioned in tender notice contractor or his
representative shall remain present during the opening of tender. Tender should preferably be
order.
opened in the alphabetical
The name of tenderer and total amount quoied by him is read loudly so that each and even one
should know the amount.
(1) The officer .
ening tender shouldenteritotalEmumber of tender received
in the register of
tender foms issuedto the contractorT
(2) Officer prepare list of contractor or their representative present of the time,
of opening the
tender and get signature from them
(3) Tenders are opened in alphabetical order envelope 1 is opened first
to check earnest money
deposit is as per prescribed format or not. If earnest money
is not deposited tender is returned
unopened to concerned contractor.
(4) After this envelop 2 is opened to check the document required
are submitted or not.
(5) Lastly envelope 3 is opened andrae
qiotëd pyacotractor isETead loudly,if any discrepancy
observe it shall be rectified in front contractor
of or representative.
7 TackKded
Pubilations
6) After this comparative statement is prepared

The contractor whose tender is lowest is then informed in writing about acceptance of his
tender.
3.8.2 Scrutiny of Tender
MSETEW18
212AE Cutnoen
Betore accepting any tender, it is required to thoroughly check all the tenders received so that theree
are no mistakes.
Generally, the tenders wihich are iar below the estimated costofthe workshould notbeaceepted,
Acceptance of such tenders leads to delay in completionof the work, poor quality of material, sub-.
standard work etc.
The following precautions should be taken at the time of scrutiny of all the tenders received
The person opening the tender shall initial against the name of tenderer etered in the
register to tender forms issued.
(i) A complete list of tenders received with the details of deposit cheques (towards earmest
money) should be prepared.
(ii) It should be scrupulousily seen that each tender is signed by the contractor and it contains his
address.
(iv) There should be no alterations and additions or deletions in the terms and conditions
included in the tender, form subnited by the contractor.
(v) It should be verified that the rates against each item are written in figures as well as words.
The multiplication of the quantity of each item and its corresponding rate should be verified
very carefuily.
(vi) Additions of amounts page wise (in the tender form) should be done very carefully to arrive
at the final cost of work, in case of each tender.
(vi) After scrutinizing all the tenders received, a comparative statement should be prepared, 3.
indicating the lowest tender first and highest tender at the last.
(vii) All the over writings and corrections in the tender submitted by the contractor should
be
attested at all such places with dated initial of the person opening the tender,
and also noted
at the end page indicating the total mumber of over writings or
corections on that page. All
such corections or over writings should invariably be signed by the tenderer.
ix) If tihe rates are written only in figures, the person opening the tender has to write
them in
words also after pointing out this omission to the tenderer present
at that time.
x) If there is any omission in mentioning the rate against any item in tender,
the person
opening the tender shall put a dash against such blank spaces
and atiested by the dated
initials.
Technesied
Pestatiens
Contracts
=
and Accounts (MSBTE Sem-VI) 3-34 Tender and Tender Documents
(xi) Whenever therc is difcrcncc betwoen rales quoted in figures and words, the rate taken by
the tenderer for calculating the total atnount of that item should be considered as correct. In
other cases, the lower rate of the two (i.e. figures and words) should be assumed as corrcct
(xii) any rate quoted by tihe contractor is not clear or doubtful, the tender may be considered as
If
invalid.
(xii) The person serutinizing the tenders shall read out the rates (quoted in the tender) to the
tenderer or their agents who arc prescnt.
civ) After serutinizing the tenders received, a comparative statement of all the tenders should be
prepared with the lowest tendered amount placed first and the highest tendered amount at
the last
xv) The tenders, if beyond the powers of acceptance of the person inviting tenders should be
sent to the appropriate higher authorities for disposal.
headdiional points to be considered before accepting any tenderwillbe as föllows
)The previous experience of the contractor and his reputation in the society.
i) Contractors capability in organizing the work.
(i) The financial status of the contractor as regards the total estimated cost of the work.
iv) The intelligence, sincerity, general behavior and temperament of the contractor.
(v)The other works in progress, at present, by the contractor.
(vi) The solvency certificate îrorn the bank and the latest income tax clearance certificate
received by the contractor.
(vii) Details of plants and machinery (required for the work) available with the contractor.
(vii) Details of Government registration of the contractor.
3.8.3 Comparative Statement
SBTE s14
AInati 1paratve statement fOr awar.dlngeoNuecBPIEHRO
ärdingcontaRAViEKA
14
After through scrutiny a comparative statement of all tenders should be prepared keeping
lowest
tender first.
, Comparative statement is prepared as below:
amcoI irm/contractor Amount oftender Remark

1. Rs. Lowest
2. B
Rs. LowestII
3. C Rs. |Lowest-III
|4 D
Rs Lowest-IV
Tech Ka ersledgi
Pobiic ations
Contracts and Accounts (MSBTE Sem-VI) 3-35 and Tender Documents
Tender
A special note shall be written by officer whether ate quoted by lowest tenderer áre workable or
not also amount mention the total perccntage above or beiow the umount put in tender.
In addition reputation of contractor ctc. should be mentioned after considering all parameters of
lowest tenderer the decision for awarding the contract is taken.
3.8.4 Award of Contract
After proper scrutiny and studying the comparati ve statements.ienderis awarded to conmractor
who fulfillsaspecification at lowest rates.
In general the contract is awarded by keeping a iowest amount in mind but in some cases when the
chances of spoiling of work is there due to very low rates then second lowest tenderer is called for
award.
3.8.5 Acceptance of Tender

After awarding the tender to lowest tenderer it is essential to give acceptance of tender to the
department within specified or reasonable time limit.
Tenderer can givetmaton of formal acceptance by giving:written acceptancexorbytelegram
3.8.6 Work Order

After formal acceptance by tenderer work order is issued to start the! work as per agreementatiim
consultation with site engineer.
Anditimelimit is given to submit security deposit before starting.of
workif contractor failšto:do so
eamest money isfoifeited and second lowest tender is invited
3.9 Unbalanced Tender
MSBTE S10:W-11. S-12,S-15,S-17,S-18,W-18
Nhat is mwith suitable-exemple:(S-10,

Descope inbriefunbalance
W1s2 s15 S, 81
Sometime.comtractor ties to submit unbaianced

tender, he may quoteshigherate fortioseitems
whose quantitiesin schedule:B:are
under-estimated and lesser Tate for:quantitiesaihoserarerover.
stimatedsuchethat total* amoumt tender
of remains.practically nffected such tenderisscalledpas
nbalanceditender.
He may also quotes higher rates for those.items
which are to be completed in the early part
so that he gets slightly excessive of work
payment from which he can build-up working
capital.
Contracts and Accounts(MSBTE Documents
Sem-V)338 Tender and Tender
F'ollowing is the example
of unbalanced tender:
endered rates
Excavation in soft soil 500/m Rs. 30/-mn

Rs. 40/-m Rs. 12/-T
2. Excavation in soft 300/m Rs. 40/-m Rs. 25/-m Rs. 60/-m
3. Excavation in hard
200/m Rs. 40/-m Rs. 80/-t Rs. 100/-m
4. C.c. bedding 1:4:8 100/m Rs. 400/-m Rs. 500/-m Rs. 300/-m
5. Plastering in C.M. 1: 4
. Oil painting
800/m2
S00/m
Rs. 10/-m
Rs. 10/-m
Rs. 20/-m
Rs. 10/-mn
Rs. 8/-m
Rs. 5/-m
Total for the items
Rs.95.000/ Rs. 1,00,500/- Rs.
1,11,900/-
Remarks
Lower Second Third
Here the contractor P has quoted very high
for item no. 1 and very low rate for iterm no 3. He
expects by his judgment after visiting
the site and by his experience that the quantity of excavation
n soft exCeeds the estimated quantity double
and the excavation in hard rock and soft rock is
negligible.
Suppose on the basis of lowest tender, the contract
is awarded to contractor P and if the actual
quantities executed area'as below:
1. Excavation in soft soil. Actual quantity 900 m
2. Excavation in soft rock 50 m
3. Excavation in soft rock 50m
The total amount payable to P
1. 900x 40=36,000
2. 50 x 40 2,000
3. 50 x 40 2,000
Total Rs. 40,000
The total amount payable to Q
1. 900x 12 10,800
2. 50 x 25 1,250
3. 50x80 4,000
Total Rs.16,050
Tech aeatedga
PudCations
Instead of awarding the contract to P ifthe contract was awarded to Q the department would have
savd Rs. 23,950.
Another point to be noted here is that contractor P is not at all giving any chance to
the site
engineer for classification of soil.
Whether the soil is classified as soft or hard rock, etc. he is going to get the same amount.
This is
due to the unbalanced tender.
3.9.1 Ring Formation
MSBTE W 10, W11S-12
n case, iennthe mumbe tendersapplying forVaTLQUS WOrks

of areaimitedthen prts ofwgrKscan
beidlecided to givesto:difiereniticomtractors
RyEpS DErIZ21onxandtinancial
capabiity
This procedure is adopted to avoid collisionanduinecessary, disputes among the:contractors.
Accounts in P.w.D.
UNITIV
Syllabus
book
4.1 Various account forms and their uses -Measurement Books, E-Measurement
Bill, Vouchers, Hand
(E-MB), Nominal Muster Roll (NMR), Imprest Cash, Indent, Invaice,
receipt Cash Book, Temporary Advance. Heads of Accounts.
Payment, Advance
4.2 Mode of Payment to the contractor and its necessity - Interim
Final
Payment, Secured Advance, Petty advance, Mobilization advance, First And Final,
bill, Running account bill, Retention money, Reduced rate payment, E-Payment
4.1 Introduction
Accounts in P.W.D is a method of book-keeping from which the costs of the various services can
be accurately known.
The method or system of accounts is to he followed by any organization which receives and
distributes the money value.
In accounting system of P.W.D., the government inform the names of drawing and distributing
officers to the Accountant General and there after the head of the department intimates the monthly
limit of cash to be provided at the disposal of the drawing and disbursing officers.
Cheques are then issued to the contractors by the drawing and disbursing officer. Sometimes thc
drawing and disbursing ofcers draw the cash against the task of assignment. The drawing and
disbursing offer has to submit the closed cash books with all corresponding vouchers and bills to
the to Accountant General any how at the end of the month.
There are prescribed forms in which all accounts, original, bills and transactions are recorded and
then all these accounts, original bill and transactions are kept preserved. All preseribed forms
should be as specificd in Financinl Hand Book (Volume V) or in Public Work Account code.
Numbering is done on each accoumt forms and all the forms are serially arranged in mumber and
then these serially armnged umbered forms are published in a book called as "Book of forms".
In short, there is a standard procedure for account and book-keeping.
Contracts and Accounis (MSBTE) 4-2 Accounts in P.W.DD.
4.2.Various Account Forms and their Uses

MSBTES:13
Q Enlist any fouaccount orms and WTte theirUses: tr
Following are the various account forms
Various Account Fomms and their Uses
1. Measurement Books (Form No.23)
2. Nominal muster Roll (NMFR, Fom No. 21)
3. Imprest Cash Account (Form No. 2)
4. Indent (Fom No. 7)n
5. Invoice
6. Bils(Fom No. 24 to 27)

*********
7. ***
Voucthers
8. Cash Book (Form No. 1)
9. Temporary Advance fo
Fig. C4.1: Various Account Forms and their Uses
4.2.1 Measurement Book (M. B): (Form No, 23)

MSBTES:05 W-11:S:13, W-13:S14S15 S178S-18W:18; W-19
EEngntio
omatiME
tis measuremeninoK
OUacountonns andwrnteheir:uses
measurement book?Stäaté its importance.
ureme book; indent and invoice also draw their format
measuremert book Write the rutes for entering.entriesSi

.
pfmatoteasrement 3ook
Contracts and Accounts (MSBTE) Accounts in P.W.D.
4-3
All the details
measurement book.
of measurement of all works are prescribed in form no. 23 which 5
a med
Definition
Book (M.B) is a special typc of book in which mecasurcment of all the constneuon
Uement
wOTk done; and supplics are recorded
with respect to a sanctioned cstimate
Measurement Book is the very important record because all the payment of all wotks ire done
based on the entries done in measuirement record.
All payment of all work is done bascd on cntries done in MB.
Measurement Book (M.B) includes the following three particulars:
(a) Instructions for writing the columns for various particulars.
6) Contents of area
(c) Details of actual measurement of the work in the form of number (No), length (L), brcadtn
width (B) and depth (DD).
The table 4.2.1 shows the form No. 23 i.e. measurement book.
Table 4.2.1: Fom 23, measurement Book (M.B8)
Partic
All the pages of measurement book are machine numbered. Each book contains the extra pages for
index, for review by the Divisional Accountant and for the review and feedback by the lixecutive
officers or engineers.
Numbering is done serially to all measurerment books and register showing the serial number of
each book is maintained in the divisional ofice along with the names of the officer or sub-division
to whom this register issuod, the date of issue, the date of return conditions and remark. Note that in
the sub-divisional office, a similar register is kept.maintained on which the name of officers to
whom it issued, date ofissue, date ofreturn, conditions and remarks.
4.2.1.1 Precautions to be taken for Measurement Book (M.B)
MSBTEW.11.W-13.W-18: W.19
neásuremertbook
ecautone forentering datanME w
W
13WJ8s 19
makingentr nmeasÜremer
Following are the various precautions, should be taken in respect of measurement
Book
1. Fntries of all the items must be contimuous in the measurement sheet
with no any blank space
space in
between.
4-4 Accounts in P.W.D.
by me at the end of cach task work or set of
2. Oficer should ccrtify with a rcmark as "measured
datc.
ineasurements and with his fiull signature with
contract
Ovcrscer should know or familiar to all thc conditions and specifications prescribcd in the
3.
agreemcnt prior to takc measurcment.
Record of all measurement should be done by ink dircctly in thc, measurcmcnt book itself but
nowhere clse.
5. If there is any mistake wlhile entering the record then il should not be erased but should be
corrected by crossing out the mistake and inserting thc corrcctions with initialed and dated.
.For canclled masurements, the cacollntion should be supported by the initial of the
corresponding officer.
7. Mcasurement of the items or particulars must be taken in presence of the contractor and at the
bottom of the measurements, contractor sign with date should be taken so as to avoid the future
disputes and allegations.
8. If any pages let blank by mistake, then these blank pages should be crossed or cancelled by
diagonal lincs by ink pen with duly initialicd, attested and dated of concermed officer.
9. When a measurement book is used by the number of officers, then the name of these officers must
be written at the beginning of the measurement book.
10. For works being done by the contractor and departimental labour, a separate measurement books
must be used.
11. In any case, if a measurement book cannot be traced for a month, then the true fact must be
reported to the superidendant Engineer (S.E) for his suitable action.
12. If the measurement book is lost, then it is considered as a serious matter and has to be reported to
the higher authorities or officers.
4.2.2 Nominal Muster Roll (NIMR) (Form No. 21)
MSBTE -S-05: S-07, S-08, S-09, w-09 S-10, S-11 W.11; W:12, S19S:17, W-17.W-18,:19,W-19
KQ State the mportance oinominalmust

0 Denine
the temNominalmuster rol 9
State ihe inmportance ofnominal muster rol a rule pU par
FAF Draw standard form oriNominalmusterO
Aplainnustesroll.
2
S15
ADeine:the.termNominabmusre
Mention theuse'oRNMR
Whatis meant by NMR2 Showits stan
a plainthe procedure:of submitlng filedtend
O Enlistany four acount fomms and writethel
EO Nhatis nominalmusterrollYIStatejuses GOvernmentWoK,
Work.
Whatis nominalimusterroll ? Rulea pag Onomnalmuster o
O Describe:nominalmuster ro CEto itS parisi
Uparongeselny
TechKomede
PUDIICatlon
Contracts and Accounts (MSBTE) 4-5 Accounts in P.W.D.
Definition
being done by a labour employed
The muster roll which is maintained to keep the rccord of works
on each day, is called as Nominal
Muster Roll.
muster roll. Note that the
Paynent is made to the labours based on prescncc recorded in the
presence of the labours in the muster roll should be marked by a suitable and proper officer.
Muster roll should have periodic inspection by the higher authorities.

There are two parts included in the muster roll i.c. part I and part I.
In Partthere are columns and spaccs kept to mention the name of,workers, theirdesignation, date
af wages, total amount for each worker, orrlabour total ämount for
of attendamce or presence; rate *
the whole the persontaking attendance, signature sand date :of the fofficer issuing
signature of A* *******
PEYmet This part is Nominal Muster Roll (N.M.R)

I
In part details of quantity of work being done by labour or workers and progress.ofwork
aree
*
kept recorded.
Table 4.2.2 shows muster roll :Form No.21:
Table 4.2.2: FORM-21: MUSTER ROLL
Cash Book Voucher No.... Date...

Name of work .
Partl- Nominal Roll

FathersDateMonth Total Ratenk
SOpeUrii
Name RB
Daly Total *** ***
Inidal of person marking daly atendance ***
Initdal of Inspecing Officer

Stgnaule .....e Rank.. ***********"*****
(Rupees
**
Passed for Rs. s****************** *******************|

Rs. P.
*****
**
Grand total of this musterroll ****
to
Deduct-Payment not made as per details transtered ****
****
Register of amrears *****
Total amount paid in words Rupees **** ***
Sgnailne. Rank.*******e***e*
oseeees
employed as per this Nominal muster roll in cases in which the work is
Part Detas of measurement of work done by this labour
SUCCephbe b measurement
Deduct as shown on Balance
Description of work Quantty
the last muster rodl
(Grouped sub-headwise)
Rank **********************
Measurement of taken on (.... date ) SIgnaue... **************
Date. ********************
Measurement Book No. ********s*****************a************* POy *******a***n**s***
echlcatedge
PUDIat10ns
Accounts in P.W.D.
and Accounts (MSBTE)
Contracts 4-6
4.2.2.1 Precautions to be taken for
Keeping the Proper Muster Roll
proper record of.
precautions; should be considered for keeping thc
Following are the various
muster roli.
1. There should not be duplicate muster roll.
progress
and details of quantity of
work done by the workers and
The cotries of labours or workers
2.
to change them or alter
thern or to
way that it is not possible
of work should be done in such
interpolatea
sanctioning authority, then arrangement to make the payment of
3. When the muster roll is passed by
as possible without any delay.
labours or workers should be madc early as
in
the labours or workers and fines if any should be entered
4. The details like attendance absence of
the muster roll by ink daily.
husband with their
important that name of the workers or labours, name of their father or
5 It is much
attendance in the muster roll.
permanent address should be mentioned while making
paymernts must
Unpaid payment šhoüld be entered in the
muster roll and kept.as deposit and such
6.
be paid afterwards býihand receipts.
**
4.2.3 Imprest Cash (Fom No. 2)

MSBTES-08. S-10, S-11. S-13. S-15.S-17. S-19
attormpie
anaarepoio
Wate sh0nng
Definition
fixed sum of money given to Sub- Divisional
officer
A standing advance or advance amount of a
to day petty payrnents is called as an Imprest cash.
and sub-Assistance Engineer so as to make day
reccipts are recorded by.redaink. Eichtand
Expenditre ftems areientered by blue ink, whereas the
is spent with a view and following the
every paymentsare supported by the voucher. Imprest cash
prevailing rules and regulations.
and originals transactions are sent to the
The record of transactions are to be prepared in duplicate
higher authority for the purpose of sanctioning
ded
PTd
YPobt4c ations
Accounts in P.W.D.
4-7 ecach month by
necessary, probably at the end of
recouped whenever
ne imprest cash must be balance.
account of money spent with showing
submitting the details of
Table 4.2.3 shows fornm 2 i.c. Imprest cash account form.

AcCOUNT
Table 4.2.3:FORM 2- IMPREST CASH
Totl ECAd o
N OuntOrer
AccOUD
5 6
2 3
4.2.4 Indent: Fom No. 7

w-12, S-13, S-14.
S-15,W-17:W-18::19
MSBTE S-05, S-08, w-09,
W18,S9
SIBANAMT
S13S15
NE
a Descnbe padureiofssuing mate
Definition
Materials from the stock are issued on demand in a proper form no. 7 is termed as Indent which is"
prepared by Sub-Divisiónal Oficer or Assistant Bngineer.
Indent form is prepared in four copies In all four copies of Indent, an entry of the quantity of stores
issued is made with the signature of stare keeper.
Out of four copies, one copyyof Indent is remained withthe store-keeper record the second opy
is
returned at once to theindentdng oficef and renanmg thirandfor copies are being sent toD.0f
DVSionalofficen
Table 4.2.4 show form no 7. For Indent of stores and Invoice.
Table 4.2.5 shows form no. 8 for Register of stock receipts issues.
Contracts and Accounts (MSBTE) Accounts in P.W.D.
4-8
Table 4.2.4: Fom 7- Indent for stores and Involce
9RMA
***********************************
Indent No. Indent No.

***************
On.***********************»*so*** On.
***********
*********************************
*
By *******e********
On Indent NO. . ******
. Das..
Daie ********************
|bal*.**.**********************
Issued by the*************
Head of Name of Head of Name oi

No. or No. of
No.or Head of Name of
account Work
Desaripbon account work. Desaripton Desaription
quanfity quantity account eic| work, etc quantity
etc etc etc Etc.
These materials shoud be delivered to .

**********
Indenting Oficer
(Stb-Dhisional Ofice
Cerfficate of Supply
This indent has (nof) been compied with h ful.

(The ateration, which I
atestod, have nccordingy
been made by me)
These materials shoutd be delivered to Date.****************
.Supphying Oficer.
Delivered to ********
*************** Recehved ******************

By ****o**************
Indenting Oficer ..Receiving Oiicer.
Date Suppy Omcer Dae.****
*************
.
***********
(Sub-Divisional Officer)
Table 4.2.5: FORM-8:Regster of stock receipt
issues
Division .. ******* ****
Sub-Divisio.*******************
Section..
Month
from which received Head of Name

Date Reference to recorded Source of
account
measuremernts (for To whom issued with name
contractor to articde
recepts onty) or to indent of work and
order whom chargeable .
and
Ted dS
Accounts in P.W.D.
and Accounts (MSBTE) 4-9
Contracts
4.2.5 Invoice S-13. W-18. S-19
MSBTE:S-05. W-09. W-10,W-12.
W09)
0S19)
ES13)
Definition
as 'invoice'.
The acknowledgement of the reccipts of goods called
is
Enginecr (can be called as îndenting
The indent is filled by sub-Divisional officer or Assistant
with invoice is sent to store keeper or
oficer) along with invoice. Then this indent duty filled along
material issuing officer.
as like the actual material
Store keeper or issuing officer gives the material then fills the invoice
issued and then the returns the invoice to S.D.0 or A.E (Indenting officer).
store-keeper after their
The S.D.O or A.E (Indenting officer) returns the same invoice to the
signature which shows the acknowledgement of the receipt of the material.
4.2.6 Bills (Form 28 to 27)
MSBTE S-17
A detailed account of claim for works done or supply made is called as bill.
The bill consist of
) Quamtities (i) Rates and (ii) Amount due
Payment against the bill to be given to the contractor is prepared from the abstract in the
measurement book.
There are various standard form of bills for payment for different works. White bills are generally
for running bills whereas the yellow forms are used for final bills.
4.2.6.1 Various Standard Fom of Bills used for Payment
MSBTE W-19
one
OTSplalnany
Following are the various standard form of bills used for payment.
1. Form 24:First and final bill.
2 Form 25 White-Rumining Account BillA.
3 Form 26: White-Rimning Account BillB.
4. Form 26: Yellow- Final Bill B.
Ted ded
Pblations
(AKSBTE) Accourits In P.W.D
NACOuntS 4-10
5. Form27:White- Running Account Bill
6. Form 27: Yellow-Final BiluC
Form 27 A: Running Account Bill D.
S. Form 27B : Final Bill.
Form 24:First and Final Bill
For a single payment, form 24 is used for making payment to the contractor both for works und
Supplies
2 Form 25: White-Running Acconnt Bill A
For acvance payment without any measurement, this form is
used for the works only but not for
suppiy.
3. Form 26: White-Running Account Bili B
This type of förm is used so as to secure the advance payment

for works only and it can also be
used for running payment partly for secured advance, partly for.measured
works and partly for to
advance.
Fom 26-white
1
Used for secured Also used for
advance payrnent
for works only
Partly for Party for Party for
running payment secured advance advance
4. Form 26: Yeliow-Final BillB
In case if the recovery of secured advance payment
is done already, then form 26-Yellow is
for payment of final bill for adjustment. the advancei used
If already recovered then in such case final
bill is prepared on final bill C (ie. Form 27 Yellow).
5 Form 27: White-Running Account Bill C
This type of form is used for the payment
of measured works or supplies. Note that
advance outstanding against the contractor, if there is an
then this type of form is not used.
6 Form 27: Yellow- Final Bil C
When there is no advance outstanding
against the contractor and intermediate
made, then in such case, this payment is to be
type of form is used.
1. Form 27 A: Ranning Account Bill
D
When the account payment is to
be made to the contractors on
contract, then in such case, this lump-sum basis or lump-sum
type of form is used.
Accounts in P.W.D
8. Form 27 B:Final Bil
basis.
us type of form is used for making the finnl payment to the contractors on lump-sum
the account payment
Hence above mentioned forms are the standard forms of bills used for making
advanced payment, partly payment,
O the contractors or supplies in various cases like secured
lump-sum contract ctc.
4.2.7 Vouchers OR Hand Receipt MSBTE $-17, S-19
ennathetam 19)
Definition
called as vouchers.
A legal receipt prepared for the purpose of proof against payment made is
are not made without
In case of labours or workers which are public related part, payments
the bre
submitting the vouchers in, proper and prescribed form. The vouchers should have
description of work done or particulars or item.
like labours (or workers
After payment, the vouchers which' are duly signed by public concerns
should be kept on record as a legal proof of payment
purchases. of petty
Form 28 : Hand Receipt is the usually used as a general type of voucher and
workers (i.e. public
items of low cost are usually made on hand receipt duly signed by labours or
concerns).
4.2.8 Cash Book: Fom No. 1

MSBTE:S-06. W-09. W-12. S-14. S-15: W#19
S15)|
WA2)
Definition
place day to day are strictly entered in order of
The form in which all cash transactions taking
1)
occurrence is called as cash book. (i.e. form no.
record of the division is called as cash book.
The most important document in the form of account
occurrence.
Day to day cash transactions which are made, are entered strictly in order of
up into two part.
The pages of cash book (Fom No. 1) are machine numbered. Each page split
is
at
One part is recipt side the left hand and second part is payment side on the right hand.
closed and physical counting of cash is done by the D.0. (ie. Divisional
When the cash book is
Officer), then cash balance report is made.
Techeruledgë
Pitatten
Accounts in P.W.D.
detnils off
D.O. in the cash book showing the
A certiicate of the count of cash is recorded by
temporary advances, imprest and
cash in chest ctc.
CLOSing balance under three heads such as
BOOK
No. 1. Table 426: FORM-1:CASH
Table 4.26 shows the cash book Form
Payment soe
Receipts side
Payment
Cash Ent ar Ty
.
No a
Cassifcston not
Vr. of Fom wham Amaud Cassiicaion dDate of Na ct Towham
Dato d Na af CHCh Amound
paymerd ped e chargos

recoipt recairved (Cash) roorips Book
3 11 12
2
FORM-28: HAND RECEIPTT
be used a simple fom of voucher for all miscelaneous payment and advance for which none of the special Foms 24, 26
(To
and 27 are suitabl:.)
Cash brok Voucher No. Dated ame 19.....
Pery by Chequa
/ Cash Rupees( ).
..
(1) *******
**********" *****
(2) Paid by me *******************************
RECEIVED for the Incharge of ****** ***********
Sub-division. ******************
.Division the sum of Rs ********
******
******************* ****
Name of work " or purpose for uhikch payment is made

. ******
**************
The(dale). *************************** **********************

Amount in Vemacutar
**************************
Stamp
Winess ******************** ****
Signature of payee.
The oficer authorising payment shoutd initial and date the pay order seoring out the ward cheque or cash as the case may be.
+The person actually making the payment shouid intial and date payment certicate (2).
In the cese of woris the accounts of which are kept by sub-head the amount charpeable to each Sub-head be specifed by
the disbursing officer.
Payment sheouti be atested by same known person when he payee's acnowdedgermert is ghren by a mark, seal or
Thumb-impression.
4.2.9 Temporary Advance

BASBTE S-06. W-10.w-13. S-14.S-19
State ne emporeadvarc
enporanaar
Whan'st whenatsnRided
Accounts in P.W.D.
Definition
sub-ordinate officer so as to make the
The amount which is ndvanced by disbursing officcr to a
specific payment is called as temporary advance.
upon the
upto Rs. 2500/- and depends
Maximum amount of the temporary ndvance is usually
security of the sub-ordinate officecr.
imprest is the
passed bills or sanctioned bill but
Note that temporary advance is granted only on
standing advance granted. without bills.
bo rocouped.
Imprest is recouped but temporary advancc is not and never
paid vouchers whereas imprest
accout is
temporary advance is rcndercd with
The accounting of
requircd.
rendered monthly or carlier when recoupment of sum is
in Imprest Casn
accounts of both imprest as well as temporary advance are kept
The detaïls of
Account Ge. form No. 2)
P.W.D. for Accounting
4.3 Various Account Forms to be used in
in P.WD. for accounting purpose:
Following are the various account-forms to be used
1) Measurement Book- Form No. 23.
2) Nominal Muster Roll-Form No. 21.
3) Imprest Cash- Form No. 2.
4) Cash Book- Form No. 7.
issues-Form No. 8.
5) Register of stock receipt
Form 24.
6) First and final Bill-
No. 25 white.
7) Rmning Account Bill A- Form
No. 26 white.
8) Running Account Bill B--form
No. 26 yellow. Cttr i S
9) Final Bil B-Form
Form No. 27A
10) Runing Account Bill D-
11) Final Bill-Form No. 27 B."*.
No. 27 white.
12) Rumning Account Bill C-Form a
27 yellow. - d re i Csud eid
13) Final Bill C- Form No.
No. 28.
14) Hand Receipt-Form
1.
15) Cash Book- Form No.
OUcatioS
Contracts and Accounts (MSBTE) 4-14 Accounts In P.W.D.
4 Comparative Statement
MSBTES11
sWt Dur dioimpeiratva statemernt 7.@lve an jaxäriple ol comparatve emonthor
np um antrac
Comparative statement is aiso termed as consolidated completion repórt.
Commencement works completed is generally prepared and recorded overy month in case of public
related unit like workers or lubours.
The comparative statement consists of tho lollowing heads
Sanctioncti estimate amount.
2. Actual expenditure.
3 Reasons tor saving.
4 Excess in the nmount.
This is one of the important statement shows the differenee between the estimated cost of work and
actual cost of each item of work.
The comparative statement is sanctioned by higher authority or competent authority when there is
an excess for the particular item and then only the payment is made.
The comparative statement act or serve as final revised estimate for the work.
4.5 Mode of Payment to the Contractor and its Necessity

MSBTE W7S19
Wiinisss
nen e contractoranddeschbeany on
E0atorcontactoi
Measurement Book (MB) play a vital role because the paynicnt to
be given to the contractors work
or material supply are made on the basis of measurement eniered in the
measurement book.
The detailed measurements are being taken by overseer and entered
in Measurèment Book (MB)
when the work or material supply is sufficiently progressed
or completed, After entering the
detailed measurements an obstruct of quautities
is prepared and cost is calculated according to
the
rates mentioned in the agreement.
The payment for small works is made

to the contructor by one payment and number
of payments
are made by running account
bils during the progress of the work. When the work supply
or is
completed by contractor, then in
such case, the payment to the contractor
can be made finally by
one payment.
From each payment, 10% is deducted

from the contructor as a security
deposit in case if the
contractor is not depOsited the fiull
amount of the sccurity deposit.
TechKamedge
Pubiieatlens
AccoundS an PN.D
Comracts and Acoouns (AKSBTE) 4-15
Folloning are the vaious mode of payment to be paid to the oontractors
Mocde of Payment to the Contecto
1. nherim payment
2Achnce payment
Secuned adhance
4 On scooum payment
Rrst and fnal paymer
& Rederoon money
7Reduced rata paymEnt
& Paty advance
kobzain anae
Fig. C42:Mode of Payment to the Contractor
45.1 Iterim Payment

SBTEW-19
A parial payment given to the contractor monthiy for warks in progress ar suppy in proges
under the terms of contract is called as interim payment.
Note that interim payment is not be considered as final acceptznce of the wozk upto thst erel
Powers are given to the engineer to hold the interim payment under speciai circumstancess
4.5.1.1 Necessity or Purpose of nterim Payment
HSSTES-09. S-15. WIS W-19
ssity ofinterim payme

Stateheog
too
ethenecessary form
The interim payment are necessary due to following reasons.
1. In case of large project, the contractor has to invest the large amount for a longer
duration and
this is not suitable or possible to the contractor.
Progress of project work may affect due to lack of funds with the contractor.
In such case the
interim payment is made to the contractor so as to continue the progress
of project without any
break
d
2. The interim payments also indicale tho approximate valuo of work done by contractor.
3. Ifthe bills are paid to the contractor at interval, there will be the check over the progress of thee
project work. Hence the progress of the work must be in proportion to the duration of the
project.
Lnterim payment ís an amount disbursed to contractor on runming account payment advance
payment, sccured advance payment cto.
PWD fom No. 47 is used for marking interim payment.
4.5.2 Advance Payment

MSBTEW10,S-10
oetneprocedurerotadvan
aymer
W40E
Definition
The paynent made on a runing account to a contractor for work done but not measured is called
as advance payment.
Note that advance payment is not generaily paid to the contractor, but under special case or under
special circumstances, advance payment is issued to the contractor on the certificate of the assistant
engineer who is the in-charge of the project work.
Note that the value of work done should not be less than the advance payment proposed to be made
to the contractor.
4.5.2.1 Different Types of Advances Granted to the Contractor
MSBTE S-10: W-19
neoiEenup O
Following are the various types of advances which are granted to contractor by site-in charge
Types of Advances Granted to the Contractor
1. Secured advance
2. Petty advance
3. Moblization advance
4. On account payment
Fig. C4.3:Types of Advances Granted to the Contractor
7Techaoaledge
PUbIIE atlons3
Contracts and Accounts (MSBTE) 4-17 ACCOunts in P.w.D.
4.5.3. Secured Advancee
MSBTEW.09, W.13: S-14. S-13.S-19
advanco paymentga% W09S1
ysecured adyanc Whatma
Wite maximumillttent
Definition
An advance payment made to the contractor on the basis of the security of materials brought by the
contractor to the site of work under construction is called as secured advance.
Authority to make the secured advance is in the hand of Divisional Engineer upto the amount not
exceeding 75% of the valuc of the materials brought to the site by contractor.
Amount of secured advance is adjusted in the next running account bill within proportion to that of
actual consumption of the materials.
4.5.4 On Account Payment
The payment made on running account to the contractor for the works done by him or supplies
by
him which is measured and recorded in measurement book (M.B) is called as 'on account payment'.
done and
This type of payment is made when only a part of the complete work or supply have been
the work or supply is in progress.
10% amount is kept as deposit, out of which % amount is to be refunded at the
end of the
may vary or change.
maintenance period. Note that percentage of amount
4.5.5 Final Payment
Definition
certificate of final completion
The payment to be made within three month from the date of issue of
is called as final payment
After completion of works done by the contractor in all respects, the engineer
prepare the final
amount of work accurately after deducting all the previous payment made to the contractor.
4.5.5.1 arious Points to be Confirmed Before Making Final Bill
MSBTES:18
nus toiberconimed betore makingTnalkbilY is 18)
Following are the various points to be coniirmed before making the final bill in the prescribed form
printed on yellow paper:
1. Confim that there is no damage to the other properties and no defect is appeared.
2. Check and confirm whether the work is completed as per the specification or not.
Confirm that site has been left cleaned and conirm that there is no rabbit; waste steel, waste
3.
timber, waste material etc. left on site.
4 Confirm that the measurement entered are according to the method prescribed in the contract and
agreement.
5. Confirm that a certificates of physical completion have been recorded in the relevant measurement
book. (M.B).
6. Confim the rates for items or particulars of work, actually done and measured are not more than
that of provided in the contract and agreement.
4.5.6 First and Final Payment
MSBTESi11S 18
irai umberiisused forthe sane ? S1118)
Definition
A single payment made for a smal job or small work on ts compietion is called as "first and final
payment
This type of paynent is usualy made or applicable for smali work only.
For example, construction of sanitary block for school building, component wall construction,
septic tank construction, ornamental grill work, demolising existing structure etc. are the examples
of small work for which the first and final payment are made to the contractor.
4.5.7 Retention Money
KMSETEST4NS15*517:S:19
underwhich itisSgven
Definition
Some amount to be hold from the security deposit of contractor by the Engineer-in-charge, when
there is any claim for the payment arises out of or under the contract against the contactor is called
as "Retention Money".
This amount is hold up till the finalization or adjustment of any claim is settled
4.5.7.1 Purpose of Retention Money
MSETES-09
LretentoioPEYA R
Following are the various purpose of retention money:

. To rectify the defects.
2. To meet the damages if any.

3. Any incomplete work
4. Work not done in prescribed date and time.
Accounts in P.w.D.
4-19
4.5.8 Reduced Rate Payment
EMSBTEW-09 w:10
S o9s19)
comtractor completes ap
payment which may grant by the engincer with the reduccd rate when
The conditions is
drawings given in contracts tcrms and
item or work not as per the specifications,
called as "Reduced Rate Payment'".
drawings given in the prescribed
The work or an item which is not done as per the specifications,
case the engineer may pay the amount
terms of conditions of contract by the contractor, then in such
with reduccd rate making the remark as the work is structurally sound.
4.5.9 Petty Advance EMSBTES.47 S19
Cussabout petty advane WAIC NISigyYeH
Definition
as
A small amount given in advance to the engineer in charge in case of emergency needs is called
"Petty Advance".
The engineer in charge can utilize the petty advance for purchasing the material in small quantity
and which is not more costly.
In such case, there is no need of any quotation and approval by the competent aurthority.
4.5.10 Mobilization Advance
ENSBTEW10S14S:15:W.18
Definition
Mobilization advance is the amount of money given to the contractor for establishment purpose
Establishmedtrcharges.onšist ofthieföllowingworkto:bedoie on site aunder,constructiony
i. Approach roads
ii. Site ofice
ii. Godown for storage of building material
iv. Water tank
v. Electric connection and
vi. Other facilities which ensure the safety on projects and smooth working.
4.5.11 E-payment
ciectronic payment (e-payment), it is dofined ns paying for goods or services to contractor on
the intenct.
2.
t includcs all financial
operations using electronic devices, such as computers, smartphones oT
tablcts.
B-payments come with various methods, like credit or debit card payments
or bank transfers.
ln general,c-payments are considcred a fast nnd sccure altcrnative to traditiomal paymet methods,
such as bank transfers, checks, ctc.
It is generally cheaper, casier and faster than other payment methods
6 List of Various Modes of Making Paymenttothe Contractor

MSETE S-10; W-17, S-18
rent pfadva
Vanous modes or methods of making the payment to the contractors in various cases are isted
below:
1. Interim payment
2. Final payment
3. Advanced payment
Secured advance
5. First and final payment
6. Mobilization advance
7. Reduced rate payment
4.7 Important Differences

4.7.1 Difforence between Advance Payment and Secured Advance Payment
MSBTE S-15
yedierencesSADe Edsadvanceraroadvancepaye
avanice
1. An amount paid in advance of the work The payment made to the contractor on the
done, by the contractor is called as advance basis of security of materials brought by
paymentL contractor to the site of work, is called as
secured advance payment.
Tech
Pblleatiens
aa
ncearun Sccurcda
Under the special circurmstances or a specianl Divisionnl Engincer

has authority to allow the
2.
case, the advance payment is made to the sccurity ndvancc upto the amount not morc
contractor. than 75% of the valuc of material brought to
sitc.
3. Cost of the work done should not be less Site of work provided are of imperishable
than that of advance payment made to the | nature.
contractor
4.7.2 Difforence between Secured Advance and Security Deposit
SecuritGGpo
1. An advance payment made to a contractor on Once a tender is accepted.by the oner, the
the basis of security of materials brought by selected contractor has to deposit a certain
the contractor to the site for work. amount with the owner. The amount of the
deposit is known as security deposit.
2 The advance amount is adjusted in the next The object of security deposit is if the
running account bill within the proportion to contractor do not work according to the
actual consumption of materials. specifications; plans and conditions of
contract, then owner can terminate contract
and the security deposit can be forfeited
3. Secured advance may be allowed by the It is about 2.5% to 10% of the total estimated
Divisional Engineer up to the amount not.| cost of the work.
exceeding 75% of the value of the materials
brought to the site of work provided they are
of fimperishable nature.
4.7.3 Differentiate between First and Final Payment, Interim Payment
MSBTES-10, W 11
st and'Final payment ntenim payment S10 W.11)
AndinalHPayment nterimukymen
1. A single payment made to a contractor for An advance payment made to contractor

work done duly measured and recorded is when work is in progress, is called as
called as first and final payment. interim payment.
Techouledya
Pubticattons
nymen
ndt FinatRyment
This type of payment is applicable generally
terimRa
2 This type of payment is applicable to large
to small work project work
3. Progress of work cannot be checked as Work progress can be checked if payment
payment is made in full settlement of claim is made at interval.
after completion of work.
4. Payment is made in the bill form No. 24 after Form No. 47 is used for making înterim
work completion certiicate is issued from payment.
incharge engineering
4.7.4 Difference between Final Payment and Advance Payment

Advamce paymei
1. Payment to be made to the contractor Payment made on running account to a

within three months from the date of issue contractor for work done by him but not
of certificate of final completion is called measured, is called advance payment.
as final payment.
2. After the works are totally completed the Advance payment is not generally made to the
engineer prepares the final amount of contractor.
works accurately after deducting all
previous payments.
4.7.5 Difference between Indent and Invoice as used in P.W.D Accounting

MSBTE W06:W1
iaderand inVoIce used in P.WDaccounting4
Anvoice
No
1. Material from stock issued on demand in Indent filled- by indenting officer along with
proper form is called as indent. the form known as invoice.
2. It is prepared by S.D.U and AE in- It is filled by indenting officer and sent to the
charge of work store keeper.
3. One copy of the indent is retained with Issuing officer issues the material and then
store keeper, second copy is rehurned at fills invoice as the actual material issued. He
once to the Indenting officer, third copy then retuns the invoice to indenting officcr.
and forth copy are sent to D-O The indenting officer returns this invoice to
(Divisional officer). the store-keeper after signing which act as a
acknowledgement of the receipt: of the
material.
Accounts in P.W.D.
.7.6 Difference between Petty Advance and Mobilisation Advance
EMSBTEs.99
nobili
Diiferènibe RRE
Mobilization advance
contractor
1. The advance of small amount uscd for Thc amount of money given to the
calied as
purchasing the material in very small for the purpose of establishmet is
quantity is called as petty advancc. mobilization advance.
approva
2 It does not require quotation and approval..t requires
this advance for
3 The engineer-in-charge use this advanceContractor uSe
site in the initial stage.
for purchasing the material in small establishment on the
quantity.
4.7.7 Difference between Running Bill and Final Bill

EMSBTEES-15.W-17
CCOuntbHandfinal bill (S-15,W17
nal biT
1. The bill which is paid during the

progress The bill paid after the completion of the work/
of the work for every month is called as project is called as final bill.
running bill.
In case of running bill; checking is not In final bill, checking is made strictly and
made thoroughly. thoroughly.
3. Running bil is paid within 10 days of | Final bill is paid to the contractor within 90
submission. days of issue of completion certificate.
Bill is based on running measurement Bill is based on second measurement.
Defect liability is biding.

5It It is recoverable, if paid excess is binding.
4.7.8 Difference between Earnest and Security Deposit

FMSETE W:12
--
1.
Amount of money is to be paid by all A amount of moncy is to be paid by the
contractors while submitting thc tender iscontractor whose tcnder is accepted, is termed
called as Earnest. as sccurity deposit
2 Earnest amount is for a check so that the Security amount i kept as a check so that the
contractor may not, refuse to accept the contractor fulfills all the terms and conditions
work or run away when his tender is of the contract and carries out work
accepted. satisfactorily according to the specifications
and maintain progress and completes the work
in time.
5. Barnest is the amount about 2% of the 'Security deposit is the amount is about 10% of
estimated cost. the estimated cost.
4. Earnest money of the tenderer whose This amoumt of security deposit is refunded to
tender is not accepted then this amount is the contractor after the satisfactory completion
refundable. of work after a specified time.
5. Ifcontractor refuses to take up the work, Ifthe contractor fails to fulfill the terms of the
then his eamest money is forfeited. contract, then his whole or part of the security
deposit is forfeited by the department.
ART
(5 Specifications
4 UNITVS
Ssyllabus
5.1 Necessity and importance of specifications of an items, points to bo observed in framing
spectications of an item
5.2 Types of specification Brief and Dataled, Standard and Manufacturers specification.
5.3 Preparing Detailed Specificatilons of tems in civil engineering works from each of fllowing
- building oonstruction, Imigation Engineering, Transportation Engineering, Public heath
Engineering.
5.1 Necessity and Importance of specifications of an items

MSBTE-S-07.W-09. w-13. S-14. S-15
ateihe!purpoSexoi tort S07 44 09

ilonsandStateiineiAIecesSIH T4S 15
Speciication
0cunen
5.1.1 Necessity of Specification

MSBTE-w-04. W-10, w-17
tthonecessi yofpectication
From the drawing itself, it is not possible o obtain the data about the quality of material and
workmanship of the item. The drawing only shows the dimensions, relative positions and
orientation of the structure to be built. Hence specification play a vital role and necessary to
indicate the details regarding the quality of material and workmanship of the item.
The specifications are the instructions expressed in words and these instructions cannot be
mentioned on the drawing.
Contracts and Accounts (MSBTE)_ 5-2 Specifications
5.1.2 Importance of Specification
MSBTE W-10, S-17W-17
A2WHatis.thelmportance öf specificationiin GlvilEngineeringwork7

Q tate theimpo Specification WMOg37WAZE
Following points shows the importance of specification:
. Specification shows the method of doing work and act as a guide to the supervising staff.
2. The cost of an unit quantity of work is known by its specification.
3. Work should be camied out according to the specification mentioned in contract, otherwise
contractor will not get payment. Hence contractor is only paid according to the specifcations.
4. Tender documents without specification is considered as incomplete and invalid.
5. Any change in specification changes the rate mentioned in the tender paper.
5.1.3 Purposes of Specifications

MSBTE-W:05, S-07W.09. S-13,S-15: S-19
tates
HonntnetotirooSest
Following are the various purpose of the specifications:
1. In contract document, the specification defines or shows the quality of material and workmanship.
2. Since the specifications are mentioned in the contract agreement, it protect or keep safe the owner
from danage due to poor workmanship.
3 Specification is the witness docurnent and hence useful in court to settle the disputes.
4. It is helpful to prepare rate analysis of various items.
5.pecincation is an important tool or document and play the important role for arbitration
6. Sipecification fixes the responsibilitics of owner and contractor.
7. It helps to the contractor in preparing and pricing the tender.
5.2 Points to be observed in Framing / Drafting the Specifications

MSETE S-0BRSMONS.11AWE S1E,W-18B.W-19
Ea Stäte:the polntsto:be obsenvegn framingspecification of anitem
Q Whataré'the polnts fo be:lncludedwhile.draftingispecification of an ite
Q Eistthe i ng specificationsiof.anitem
Stateupol
pgpecimcauon
Following are the various important points to be observed in framing the specifications:
main intention or object of specification is to present a clear picture of facts to be adopted in
thethe construction work. Hence clear facts of the quality of material and workmanship mentioned in
the specification should be observed.
Contracts and Accounts (MSBTE) 5-3. Specifications
annd
2. pecincation depends upon the site conditions, hcnce it is to be observed the nature of wotk
purpose for which the work is carried out.
3. Well-known or familiar abbreviations in building industry are to be used without giving
informatioon.
For example, C M. is the abbreviations shows tho cement mortar. BBM is the abbreviations shows
bumt brick masonry.
4. Proper and suitable words with required meaning should only be usod. Unfamiliar works should not
be used in specification.
5. Prepare the specification by observing the rules of grammar.
6. The information about quality of the material and pirocedure of workmanship to be adopted should
be complete and accurate.
7. Avoid cross-references.
8. The specification should state looking to view that what the cotractor shall or shall not do and not
what the contractor should or should not do.
9. The subject matter mertioned in the specification should relate to the information required when
the contract is given to the contractor.
10. Unfair specifications are not desirable, meaning that throwing all the possible risks on the shoulders
of contractors is unfair and hence such specification should not be mentioned.
11. The sentences of the specification should be simple and short so as to avoid the risk of legal
difficulties and allegations.
12. Specifications of various items should be framed by keeping the practical limitations of mnteriais
and workmánship in mind.
5.3 Types of Specificationss
MSBTE S07.S-09:S-11.WE12:S:13.w-13. S-14 S-15.S-17 W-17S-18 W.18,s:19|W49
State the difterent.type.of specihication.and explain anyc
Deine the term DetailediSpäciication
efine thetemstandagkSpcdiication
Namethe typesorspetincaions E anufactürer Sspeciiicatioan2 M S08;5 }KA
State the necssiy. of

Bietspeciication Detaled.specHcattoris
Standard specii OnS Manufactures speciicaions
E2
Plain nbnef standard speciicaton. IS-13,S9
einestourztypes.iot.speciiiGaton and explain any.onetypei
CV 13)
ainin biehe diferenttypes of Specifnicatio
ee manyone inidetai
"**
Contracts and Accounts (MSBTE)) 5-4 Specifications

Following are the various types of.specification:
Types of Specificationss
1.Brief specification
2. Detailed specification
3. Standard specification
4. Manufacturers specification
Fig. C5.1 Types ofSpecifications

1. Brief specification
The general specification used for estimáting the project are the brief specifications.
General information for the quantities of materials, nature and class of work is short and not with
the lengthy detailed specification. Note that brief specification do not form the part of the contract
document
Though the information is short and hot lengthy but the general information should be known and
understand.
2. Detailed specification
Thu specification in which detailed information of the various quantities of materials, procedure of
workmanship to be adopted, nature and class of work is mentioned.
Hence detailed specification form a part of contract document.
Detailed specification for a particular item,specify the following information
i. Qualities of material
ii. Quantities of materiai and their proportions
ii. Method of doing.work or procedure of work.
iv. Test required on the constructional material or on the finished items.
v. Type of equipments and machinery used.
vi. Special tools and plants used.
vii. Method of operations of special tools and plants.
In short, without the detailed specification for a particular item, the tender documents and contract
are incomplete and considered as invalid.
3. Standard specification
Detailed specifications for various works are drawn up by an engineering department and these
specifications are printed and used as a standard specification. Hence most of the items in works
are made to standardized specifications.
Tediineded
PDICatien
Contracts and Accounts (MSBTE) 5-5 Specifications
Standard specification play a vital role that it work as guicdo and also rofcr in tho specification
part
ofa tender documents and thus avoicds writing lengthy spccilication.
be
Note that whenever thc standurd specilication nre accopted for a particular work, then it should
observed carefully and suitable modifications or necessury correetions are madc accordingly.
Standard specifications must be periodically revised so as to include some changes in techniques.
Spocifications of items such as stone work, brickwork, plastering. pointing, cxcavation, carthwork
concreting ctc. becomcs common in writing particulars of such items and hence it is not requircd to
write such common specification again and again.
Standard specifications are mostly rcfercd becausc it save the time and there is no possibilities of
doing mistakes.
4. Manufacturers specifications
MSBTE:S-11
HAiNaniiactiirasspecifications. S 11
This type of specifications in which the properties of products such as strength, thickness, depth,
elasticity, chemical composition ctc. are mentioncd.
Specifications of the products of the manufacturer like steel, mild steel, tor steel, plain steel
cement, paints, valves ete. are included under head of manufacturer's specification.
5.4 Legal Aspect of Specifications

MSBTE: S:09:S-10;w:113s-14; W-17,S-18,S-19; W-19
EISorSpeciications, s SO9S108VI11WE19)
aspects gispeciications. SMAW13S18,S19)
Specification of various items becomes the important documents as per as legal aspect like contract
and agreements are concerned. Hence the drawing and specifications are two important contract
documents considered as a legal documents.
The tender documents and agreements towards legal aspect are incomplete and invalid without
specifications.
Specifications have more legal strength and hence most of the contract state that in case of
discrepancy between the drawings and specifications, the specification act as a legal proof.
In case of disputes between the owner and the contractor, specifications act as a useful legal
documents to solve the problem in between two party.
5.4.1 Standard Specification Book
The government or semi-goverament like P.W.D, MSEB, MIDC, MHADA, Municipal
Corporations makes the standard specifications for most of the works and these standard
specification are printed and numbered and made available in the booklet form.
Serial number of standard specification are only mentioned for preparing the comtract documets
and the standard specification book becomes helpful tool in filling-up the tender form without any
mistake.
5.5 Preparing Detailed Specifications of Items in Civii Engineering Work

such as Building Construction,Irrigation Engineering, Transport
Engineering and Public Health Engineering
Following are the various iteis considered in preparing the detailed specifications:
1. Excavation
2. Random rubble stone masonry
3. Cement concrete
4. Reinforced Cement Concrete (RC.C) (1:2:4)
5. Brick work (I class)
6. Brick work (I class and Il class)
7 Plastering workk
8. Pointing work
9. RC.C.(1:1 k:3)
In specification of above iterms, it is much essential to quote the type of materials, their proportions,
method of laying in case of masonry, method of lead and lit in case of excavation, coarse and fine
aggregates water and their proportions and method of mixing, method of curing, form work; shump test
in case of cement concrete and mode of measurement.
5.5.1 Specification of Excavation
Site shall be cleaned from grass, bushes, shrubs, trees etc.
Foundation pits or trenches shall be dug out to the exact width of foundation concrete.
Sides of the trench or pits shall be vertical. For loose soils, sides should
be protected by timber
shoring.
The sides of the trench/pits shall be dressed perfecthy vertical from
top to bottom of P.C.Cbed.
The bed of the trench shall be lightly watered and rammed by rammer.
Soft and loose spots shall be dug out and removed. Rocks/boulders
should be removed if found
during execution.
. Dug out or excavated soilearth shall not be placed within im the
of edge of the pit/trench.
Any valuables shall be the property of the govemment if found during
excavation.
Excess excavation done by mistake shall be filled with concrete/mortar
at the expenses of the
contractor.
Contracts and Accounts (MSBTE) 5-7 Speciications
Water logged in the trench by any means should be pumpcd out or bailed out without any. xua
payment. Necessary precautions shall bo taken so as to avoid surface water entry into the trench.
After laying the concrete and masonry work, the remaining part / portion shall be filled up witn
earth in layer of 150 mm/15 cm and watered and well rammed by rammer.
Extra earth / surplus earth which is not needed, shall be removed and disposed and site shal be
leveled and dressed.
Measurement of excavation
of
The measurement of. the excavation shall be taken in cu.m for rectangular pit, bottom width
concTete multiplied by the vertical depth of foundation from ground level and multiplied by the
Tength of pits have excavated. Any sloping side if excavated as per the convenience of contractor,
that shall be considered as rectangular trench.
Rate shall be desirable for complete work of 30 m lead and 1.5 m lift, including all tools,
equipments and plants needed for completion of the works.
Separate extira rate shall be applicable for every extra lead of 30 m and every extra ift of 1.5 m.
5.5.2 Random Rubble Masonry (RR Masonry) (Stone Work)
The specification of such item is split up into three parts viz.:
Specificatons of AR Masonry
Materias
H (a) Stonie
(6) Sand or fine aggregate
(c) Cement
Mortar
C)Laying
Fig. C5.2:Specifications ofRR Masonry

(i) Matarials
(a) Stone
Stone shall be hard, able to dress, sound, free firom decay, defect and weathering.
Stones with pores and defects shall be rejected.
Size of stone shall not be less than 150 mm in any direction.
Stones will be dressed and brought to required size and shape.
TechKaeded
PODI atians
5-8 Specifications
(b) Sand or fine aggregatec
Sand or find aggregate needed for mortar shall be as per the standard specification.
(c) Cement
Cement for mortar shall be as per the standard specification.
(ii) Mortar
Various ingredicnts of mortar shall be first mixed in prescribed proportion than mixed wet
at least
three times by adding water evenly and gradually in appropriate proportion as specified.
(ii) Laying
All the dressed stones shall be wetted thoroughly before laying in stone work. The walls shall be
caried up in line and truly plump. .
Face stone shall not be narrower than that of its height shall tail back and bond well into backing.
Stones shall be laid with break joint on the face for at least half the height with those of corses
above or below.
All joints after laying the stones shall be filled by mortar completely and thickness of joint shall
not more than 20 mm.
So as to prevent thick beds of joints and mortar, interstices between stones shall be filled with
stone chips and spalls.
Bond stones at least 450 mm long shall be given one for-every half sq.m face in the interior
thickness of the walls.
Through stones (H) shall be approximately provided so as to have the key bonding in between
facing and backing.
The masory wall shall be carried out together with a line and truly plump so as to have unifom
height.
Too thing should be done by giving projection so as to make bond with the wall to be built later.
Measurement of stone work

Meusurement of RR masonry shall be taken in cum. For this; length, width and height of walls
shall be measured on site.
5.5.3 Cement Concrete (1 : 2:4)
MSBTE- W-09, W-13. S-14. W-17: W-19
deta Naaio edlnicg
SeciiCaionia vesu
Techledgs
Pubilcatiees.
Specification of cement concrete for PCC work includes the following items:
Speclticatlon of cerment conerete
for PCC work
i) Materials
(a) Coarse aggregate

H (b) Fine aggregatle
(c) Cement
(d) Water
Ci) Proportion
(a) Machine mixingg
(b) Hand mixing
ii) Slump test
iv) Form work
(v)Laying
(vi) Curing
(vi) Measurement
Fig. C5.3:Specification of cement

concrete for PCC work
i)-Matarials
(9 Course aggregate
Coarse aggregate shall
be from hard broken stone
stone and shall of compact basalt or granite
be free from dust, dirt, oil and or similar
other foreign matters.
Size of stone shall be 20
mm and down and all
square mesh and well graded, sizes of stones shall
shall not have voids be retained in a 5 mm
more than 42%.
Size of stone aggregate
depends upon the thickness
of concrete and nature of work.
For example,
20 mm size of stone aggregates
arc being used for building
mm size of coarse aggregate work and road work.
are being used for mass 40 to 60
concreting work.
TechKlede
PubiicatleAs
Contracts and Accounts (MSBTE) 5-10 Speciications
(b) Fire aggregate
Fine aggregate shall have coarse sund consisting of hard, sharp and angular grains.
These aggregates shall pass through sicve of5 mm square mesh.
Sand shall be as per the standard specification.
Sand shall be clean and free from dust, dirt, oil und other organic matter.
Sea sand shall not be used.
Crushed stone sand can also be used if specified.
Cement
Cerent shall be fresh, not old & as per the standard I.S. specification and shall have required
compressive strength and fineness.
(d) Water
Water shall be clean water, free from any impuriies and free from alkaline and acid matters;
water shall be suitable for drinking purpose.
(i) Proportion
The proportion of concrete shall be 1:2:4 of cement, sand and course aggregate
by volume unless
otherwise specified.
For 7 days, the minimum compressive strength of cement concrete (1:2:4) shall
be 14 Nmm.
One bag of cement consist of 50 kg should be considered as cuLm. No need
to measure the cement
by box or Formica, but sand and coarse aggregate shall be measured
by volume with boxes or
Formica.
Box size may be 35 cmx 35 cm x 28 cm or.30 cmx 30cm x 38 cmn equivalent to the content of one
bag of cement.
All ingredients shall be dry. Bulking of sand allowance shall be made for
wet sand.
For large work, mixing of ingredients shall be machine mixing
and for small work, mixing shall be
done by hand mixing by batches may be permitted.
(a) Machine Mixing

Cement, sand and coarse aggregate shall
be taken into the machine mixer
proportion in required
For concrcte of proportion 1:2:4.consist of one bag cement,
of two boxes of sand and
boxes of coarse aggregate shall be taken into four
mixer.
The machine shall then be operated to mix
material dry & then water
gradually with required quantity 25 to 30 shall be added
liters of water per bag of cement
desired water-cement ratio. to obtain the
Ted S
Pobticatteas
The mixing should have homogeneous mass or plastic mix of uniform colour so as to
obtain thorough mixing. to 2 minutes rotation shall be given to the drum mixer.
1
Mixed concrcte shall be discharge on a masonry platform or on a flat iron sheet

(b) Hand Mixing
Hand mixing is allowed for small work only. Mixing of ingredients shall be done on
masonry platform or flat iron sheet.
For concrete of 1:2:4/1:4:8 proportion, one bag of cement, first two boxes of sand shall be
mixed dry thoroughly making the material turning up and do'wn by spade or pharwarha and
then this homogeneous dry mix shall be placed over a spreaded stack of 4 boxes of coarse
aggregate & the complete mixed dry turn up and dovwn with phawarha or spade at least
thrce timces so as to obtain uniform mix.
Then water shall be ndded slowly and gradually and then turning the mix up and down at
least three times by spade till to obtain a plastic mix of the required workabilíty and water
- cement ratio.
Water quantity shall be of 25 to 30 1liters per bag of cement.

(in) Slump test
Regular slump test shall be carried out so as to check the workability of concrete mix and to control
the addition of water.
For building work, a shmp of 75 mm to 100 mm may be permitted and for road work, 30 mm to
40 mim may be allowed.
(iv) Form work
Form work and centering shall be used as per the standard specifications'
Internal surface of formwork shall be applied by oil so as to avoid sticking of concrete
during
removal of the formwork
The base of formwork shall be watered before laying the concrete on it.
Forms at the bottom surface in case
of beam and slab shall not be removed before 14 days in
general and sides of form shall be removed after 3 days.
Form work shall be removed slowly und with care and not to disturb
and damage the concrete.
(v) Laying of concrete
Concrcte shall be laid gently in laycrs not exceeding
150 mm and compacted with
with wooden tampers or with mechanical vibrating rods & tamping
machine until a dense concrete
is obtained,
Tecaknosdel
PubttationS
Contracts and Accounts (MSBTE) Specifications
5-12
concrete or mass concrete.
Immersion type vibrators or needle vibrntors shall be used for thick
not be over
Surface vibrators or form vibrators shall be uscd for thin concrcte. There.shall
vibration.
Concrete shall be laid continuously. If laying of concrcte is suspended for rest or on next day the
cnd of concrete shall be slope with an angle of 30" and its surface shall be made rough for
proper
joining.
If the concrcting work is resumed, the previous slopcd portion shall be made rough, clcan, watered
in
and a grout of neat cement shall be applicd and fresh concrcte shall be laid in.successive layer
such way that the upper layer shall be laid beforc the lower layer is set.
(vi) Curing
When concrete is on the point of hardening, after and about two hours layng, then it shall. be kept
wet by covering with wet gummy bags for 24 hours and then cured by flooding with water. Making
mud wall 75 mm high or by covering with wet sand continuously for 15 days.
In case of fat concrete work like slabs, the ponding method of curing shall be used.
(vi) Measurement
The measurement shall be taken as per the dewing or as per instruction of the engineer.
5.5.4 Reinforced Cement Concrete (R.c.c, 1:2:4)
MSBTE s-08 S-10, VW-11.W.18
8AW188
RCC12sab
al
Proportion of 1: 2 4 shall be adopted by taking one part of cement, 2 parts of sand or fine
aggregates & four parts of coarse aggregate by volume. Cement shall be measured by weight as per
the standard requirements.
The sand: all be free firom impurities like dušt, clay, oil ete. It shall be well washed before use.
coarse aggregate shall consists of 67% of size from 20mm to 40mm and 33% size from 20mm
The
to 6mm. The coarse aggregate shall also be free from impurities like clay, dust, oil and organic
material.
The water shall be clean and fresh and it shall be drinkable.
Steel reinforcing bars used in concrete shall be of mild steel or defomed steel as per the standard
specifications and shall be free from corrosion, loose rust scales, paint, grease, oil etc."
Joints in the bar shall be prevented.
When joints have to be made, then an overlap of 40 times diameter of the bár shall, be given. Bigger
diameter bars shall be joined by welding.
Proper cover shall be maintained for stccl bars, so as to prevent from cxposing to atmosphere.
The mixing of concrete shall be done in a mechanical mixcr for large scale concrcte or by
hand
operation for small scale concrete work.
The formwork shall be oiled from inside before conereting the formwork. The concrete shall be
laid in the forms and tapped in such manner that no honcycomb surface shall appcar on removal of
the forms.
The formwork and centering shall be.made of dressed timber of well scasoned wooden boards to
give a smooth and cven surface and the joints shall not allow leakage of cement paste.
Concrete shall be laid continuously, if laying is suspcnded for rest, then end shall be sloped at an
angle of 30° and made rough for proper bonding and key. When the work is resumed, the p
sloped portion shall be made rough, clean and watered. A coat of neat cement paste shall be applied
on this roughened portion and fresh concrete shall be laid.
Concrete shall be compacted by mechanical vibrators so as to have a dense concrete. Over-
vibration shall be prevented.
After removal of the form work, the concrete surface shall be free from any defects such as honey
combing, air holes, cracks etc.
Curing-Freshly laid concrete shall be protected from direct sun, rain etc. When the concrete is set
or harden about 2 hours after its laying, it shall be proteçted with gunny bags
After 24 hours of laying; the concrete surface shall be cured by flooding with. water by making
small pands. The minimum period for curing shall be 14 days.
5.5.5 First Class Brick Work
Specification of 1s" class brick work includes the following items
Specifications of First Class Brick Work
(a) Mateial of bricks
(b) Mortar
(c) Mixing of mortar
(d) Measurement
Fig. C5.4:Specifications of First Class Brick Work
(a) Material of bricks

coloured, free from any cracks fissures and
The bricks shall be table moulded, well burnt, copper
defects and with sharp edges.
bricks
When two bricks struck with each other,
The bricks shall be of uniform shape and size.
should give clear ringing sound.
Knouledge
Tech
PubICations
Contracts andAccounts (MSBTE) 5-14 Specifications
The crushing strength or compressive strength of brick shall not be less than 10.5 N/mm.
The bricks shall not absorb water more then one fifth of their weight when soaked in
water for one
hour.
(b) Mortar
The brick work shall be worked in cement mortar or lime mortar, and mixing of cement, sand and
water shall be as per the specificd proportion. In case of wet sand, its quantity shall be increased
suitably so as to allow for bulkuge.
in case of cement mortar the unit of measurement shall be a bag of cement (0.035 co.m.) Sand stal
be measured in boxes of suitable size 3Scmx 25cm x 40cm as per the specified proportion
(c)Mixing
Materials of mortar shall be first mixed without water until a uiform colour is obtained. The
mixing shall be done on a clean water tight platform. After addition of required fresh potable water,
the mixtre shall be mixed at least three times with the help of spade. Only the quatity of cem
mortar wihich can be used within 30 minutes shall be prepared at a time.
The bricks shall be well soaked in water for at least 12 hours before their use
The broken bricks shall not be used except as closer. The mortar joints shall break for bonding and
good key and shall not be more than 10mm in thickness.
Bricks stall be laid with frogs upward, except in the top course. Brickwork shall not be caried out
mare than Im in height at a time. Al joint shall be raked and faces cf wall shall be cieaned at the
end of each days work
The rickwork shall be cured for at least 15 days.
For all exposed brickwork, double scaffolding shall be used. For all other brickwork in building.
single scaffolding shall be permitted.
(d) Measurement
The length and height shall be measured as on at site. The thickness of walls shall be paid fer as
one brick, one and a half bricks, two bricks in cum.
5.5.6 Brickwork lI Class and ll Class
MSBTE-S-09.S-19
ODrafadeaedspecicationfor ilcassB.8 Masonay supest
In case of II class brickwork, bricks shall be of second class and mortar shall be as specified
Kankarlime or White lime and Surkhi of 1:2 to 1:3 proportion
Mortar joints shall not be more than 10mm in thickness. Bricks shall be soaked in water for at least
three hours before use
In case of IM class brickwork, bricks shall be Ill class unless otherwise specified Martar shall be as
specifed and the thickmess ofjoint should not be more than 12mm.
Pabtitatlsis
Specifications
5-15
Contracts and Accounts (MSBTE) section 5.5.4.
I-class brickwork as explained in
Remaining procedure as same as
5.5.7 Specifications for Plastering Work MSBTE S.08, S-11$-13, S-15
any onena
detalled specin1g 08
2
aster to brickworkincm (15
S1)
mal cemnentplasterirn CiM 114:thickness.12 min
14proportion and thickriess 12:mm
malplast
7 S3
thickness on a.new
aplasterng in cm(4with:20.mm
15
rendering all types of
plastering work consist of supplying all materials and
Specification for applicable drawings
shall be strictly in accordance with specifications and
plastectpointing finishes
etc. be made a part of
specifications, standards and codes given in table 5.5.1 shall
The relevant I.S,
specification. the latest edition
specifications, code of practices referred to herein shall be
All standards, year
amendments, revisions and additional publications and hence every
including all applicable
followed.
the changes made shall be
Table 5.5.1: List of Indian Standards
LS. 721 Specifications for building limes.

1.
engineering works.
L.S. 1200 Method of measurement of building and civil
2.
(Part-XI) (Plastering and Pointing)
plaster
3. I.S. 1661 Code of practice for application of cement and cement-lime
finishes.
L.S. 2394 Code of practice for application of lime plaster, finish.

4.
5. LS. 2402 Code of practice for external rendered finishes.
6. I.S. 6278 Code of practice for white washing and colour washing.
Cement plaster with neeru finish or sanlaw finish

. Neeru or sanlaw shall be made from best available hydraulic lime slaked with fresh water and
fted.
The lime shall be ground fine in mortar mill and kept moist before use.
5-16 Specifications
A saple limc to be used for neeru or sanlaw shall be prepared by the contractor for the approval
of
Ot 1sngineer-In-charge.
Samples of lime may be testcd as per relevant I.S. before final approval.
All time / neeru to be used
on the work shall conform to the approved sample.
Doble scatfolding shall be used for all plaster work unless pcTmitted to otherwise by the Engineer
In-charge.
No holes shall be made in the masonry, holes shall not be made for the purpose of supporting the
scaffolding.
The scatfolding members shall not be tied to windows or door frames.
No extra shall be paid for making groovers in the internal plaster work measuremeut of plaster shallI
be in sq.m.
Cement plaster with cement finish
ne specihcations for cement, sand and water shall generally conform to their relevant
specifications described under "Reinforced Concrete and Allied Works
Initially cement and fine screened sand shall be thoroughly mixed without water in the proportion
specified by L.S.
Water shall then be added and then mortar is mixed thoroughly so as to obtain homogenous mass
and required consistency.
No more mortar shall be mixed.
The surface to be plastered shall first be thoroughly cleaned and all joints raked out least 12 nm
at
deep so as to have good bonding. The raking shall be done carefülly and no. chipping of the
1asonry shall be permitted.
All concrete surfaces shall.be hacked by hard pointed tool to provide necessary bonding for the
plaster.
The rate for plaster shall include the hacking of surfaces also. All dirt, soot, oil, paint or any
other
material which may interfere with satisfactory bond shall be removed..
The surface shall be brushed and washed with fresh water and maintained
in a thoroughly wet
condition for 24 hours before starting the plaster work.L
The plastering shall not be started until the preparatory works is approved by
the Engineer-In-
charge, on site.
The cement mortar for the plaster work shall be as specified in schedule
of item
The plaster shall be applied the required thickness and leveled with a wooden
trowel.
The surface shall be cross scratched so as to provide mechanical key
for the final coat. The cross
Scratching shall be horiZontal as far as possible.
The surface shall be kept continuously damp or wet for at least two
days. It shall then be allowed to
dry.
Tech
Pabiicatlees
Finc sand of approval quality shall bc uscd for finishing coat. The finishing coat shall be about 5
mm thick.
There chall be at least a 3 days interval between application of the first coat and finishing coat.
The plaster shall be well presaod into the joints and the surface rubbed smooth after floating it with
a coat of pure cement.
There shall not be the use of dry cement in plastcring.
All plaster work shall be kept damp or wet continuously for a minimum period of 10 days aftcr the
application of finishing coat.
Excessive evaporation of the water from windward sides of building in hot dry weather, shall be
prevented by matting or gunny bags which will be hung over the outside of the plaster to keep it
moist.
Through plaster crack developed due to neglect of watering or for any other fault of the contractor,
the work shall be remove and done again at the contractors expenses.
White. washing
. White wash shall be made from fresh burnt lime stone or lime. The lime shall be of "C' type as
mentioned in LS. 712.
The lime shall be dissolved in a tub with sufficient quantity of water (about 4.5 litres per kg of
lime) and thoroughly mixod and stirred until it attains the consistency of thin cream.
Prepared white colour shall then be taken out in snall quantities and strained through a clean
coarse cloth. Alternatively readymade whiting complying with L.S. 63 can also be used.
Clean gum dissolved in hot water shall then be added in suitable proportion of 2 gm of gum.
The surface shall be made by removing all mortar dropping and foreign matter and thoroughly
cleaned with wire or fine brush or other way as may be ordered by the Engineer-in-charge to
develop a clean and even surface throughout
shall then be
All loose pieces and scales shall be scraped off and holes filled with mortar which
cured.
applied with a brush in
The white wash shall be applied on the prepared surface. Each coat shall be
proper way.
bottom upwards
The first stroke of the brush shall be from the top downwards and another from
over the first brush before
over the first stroke and one stoke from the right and other from the left
it drieS.
applied and should be
In all three coats of white wash or as specified in the schedule shall be
approved by the Engineer-In-charge.
before the next coat is
Each coat shall be allowed to dry and shall be subjected to inspection
applied.
unifornm finish
When dry the surface shall show no signs of cracking, means there is a smooth and
free from the brush makes coat shall not come off easily when rubbed with fingers.
Techeeledgë
Pabatioas
Doors, floors, windows etc. shall be protected from being splashed upon by coavering them with
waste cloth. Splashing and dropping if any, shall be removed and the surface cleaned.
The white wash shall be applied to surfaces of neeru plaster immediately, on completion of neeru
plaster and is cured.
Water proof cement plaster
The same specification as detailed for Cement Plaster with Cement Finish' shall also apply to this
plaster
Plaster shall be finished smooth with neat cement and water proofing compound of approved
quality shall be added in cement mortar@2% by weight of cement
The water proofing compound shall be supplied by the contractor. No extra payment shall be paid
or mixing the watér proofing compound in the mortars as directed
Sand faced cement plaster
Surtace preparation shall be made in same way as for Cement Plaster with Cement Finish.
Sand faced plaster shall be made in two coats. Backing coat shall be in cement mortar 1:4 and
finishing coat shall be in cement mortar 1:3.
The sand for the finishing coat shall be screencd to pass through 2.36 mm mesh sieve and all
material passing through 1.18 mm mcsh sieve shall be eliminated.
The sand shall be thoroughly washed to remove all clay, dust, silt and any organic matter.
The cement and sand shall be mixed dry or without water until the mixture becomes homogenous
and water shall then be added gradually to the required proportion. The mixture is turned up and.
down by spade over as often as required to obtain a homogenous mass of uniform colour.
Backing coat of 12mm thick with cement mortar 1:4 shal be applied first. Approved water
proofing compound26 by weight of cement shall be added in the backing coat.
No extra payment shall be paid for mixing the water proofing compound in the cement mortar as
directed.
The surface shall be made even and uniform by means of wooden floats
and roughened with. wire
brushes so as to have good key to the finishing coat.
The backing coat should then the thoroughly cured for at least 7
days before the application of
finishing coat.
The finishing coat of 8 mm thick in cement mortar 1:3 should
then be applied uniformly with
wooden float.
The complete surface shall then be rubbed with approved sponges
so as to develop the sand grains
uniformly and predominantly, on the plastered surface.
The surface shall be cured again for at least 10 days.
Tedh
PDIIEtieas
* * *** ***
natmassam
Grooves in sand faced plaster

The horizontal and vertical grooves shall be èxactly to the required depth and width as shown in the
drawings and as per the separation.
The grooves shall be neatly finished with proper care.
All horizontal and vertical grooves shall be imperfect straight lines without any break in the
continuity.
Such grooves if specified in the drawing shall be paid.
Mode of measurement
The unit of measurement for all the plaster items shall be square metre (sq. m).
The measurement shall be taken on unplastered surfaces.
The areas of doors, windows, and all other openings shall be deducted from the area of wall and
areas of jambs, reveals, soffits of opeings and sills shall be considered and measured and paid.
The unit of measurement for grooves in sand faced cement plaster shall be running metre.
Detailed specification for cement plaster 1:6 for a brick wall:
MSBTE-S-17
() Material
Cement : Ordinary Portland cement shall be used. The cement shall conform to IS : 269 latest
versions.
Sand: Fine aggregate shall be natural sand obtained from a river bed and shall conform
to 15:383-
1 and to the relevant portion of IS : 515-1959. Sand
shall be clean, hard, strong durable and
fre
from organic matter, dust, clay, shale, alkali, salts, soft or faky particles or
other injurious
substances.
Water: Potable water shall beused for mixing the mortar.
(i) Proportion:
Cement and shall be mixed in the proportion of one part of
cement to six parts of sand
Mixing : Mortar shall be mixed in mechanical
a mixer of an approved pattern at the
The drum shall be rotated for a minimum period of 2 site of work
minutes The mortar shall be
minutes of adding water or by hand mixing. used within 30
(iut) Plastaring:
The mortar shall be firmly applied on the surlace
from top to down and well
The mortar shall then be rubbed and levelled pressed into the joints.
even surface is achieved. with a tlat wooden rule until a perfectly
All cormers shall be finished to plane and
their angles, unless otherwise
theengineer: directed by
Te
Dcatso
eled
Contracts and Accounts (MSBTE). 5-20 Specifications
ne Jambs and reveals of door and window openings shall be finished perpendicular to the sil and
intel bottom. Plnstering shall bo dono in squares or strips as directed by the engineer. Strips or
squares shall be so formed that dayto-day breaks aro made to coincide with architectural breaks.
Finish: While the plastered surfaco is frosh, a thick cont of coment slurry shall be applied and
rubbed smooth.
Curring: All plastered surfaces shail be kept continuously damp for a period of 14 days.
(iv) Mode of Moasurements
The unit of measurement shall be the square meter as per IS: 1200.
5.5.8 Specification for Pointing in C.M. (1:1)
When the brickwork is completed then pointing work shall be started. The joints shall be raked out
to a depth of 20 mm to give an good bond for fresh mortar used for pointing. The surface of the wall
shall be clcaned, washed and well watered at least for two days.
Preparation of motor for pointingg

The raixing shall be made on a water-tight platform and mortar one
of bag of cement shall be made
at a time which should be used within 30 minutes after adding water.
The mortar shall be made by mixing equal volumes ofcement
and sand.
The cement shall be of standard specifications.
Sand shall be clean, fine and free from organic impurities.
The materials shall be thoroughly mixed in dry condition
before water is added to them
The mortar shall be placed in the joints by skilled labour.
The extra mortar shall be emoved. The
surface shall be well watered at least for 10 days.
Mode of measurement: The unit of measurement
should be square metre.
5.5.9 Specification for RCC 1:1:3 for RCC Slab
MSBTEw-10. W-12
ODratadefailed specicatons1or RCo11
o.Draftdetailedispecificationsfor
relnforcec.cemer
t.theimodepfmeasuremant
The proportion of ingredients should
be 1l
part of cement, 1.5 part of sand
aggregate by volume, and 3 part of coarse
The cement should satisfy all Indian
standard specification.
The sand and coarse aggregate
shall be free from organic
contains clay, oil, silt or any forcign impurities,and shall be
material.. washed if it
Contracts and Accounts (MSBTE) 5-21 Speciicaions
ions
trapmetal of varying size from 20 mm 40 mm
and The coarse aggregate shall consist of 67% of black
and frce from all other impurities.
ps or and 33 %, metal varying from size 20-6 mm and it is cleaned
5. The water to be used shall be clean, fresh and drinicable.
the standard specifications and
and Steel reinforcing bars shall be of mild steel or deformed steel as per
shall be free from comosian, loose rust seales, paint, grease, oil ete.
be made an overlap of 40
Joints in the bar shall be preveted as far as possble, when joints have to
joined by welding.
times diameter of the bar should be given. Bigger diameter bars shall be
atmosphere. The mixing
Proper cover shall be maintained for steel bars to prevent their ciposure to
mixer or by hard operation depending on the quantity of
of concrete shall be made in a mechanical
the concrete which shall be guided by the engineer.
inside. The concrete
i out Before placing of concrete in fromwork, the formwork shall be oiled from
on
wall shall be laid in the forms and tapped in such a way that there shall not appear any honcycomb
the surface on removal of the foms.
wooden boards
The formwork and centering shall be of approved dressed timber of well seasoned
Concrete
to give a smooth and cven surfacc and the joints shall not permit leakage of cement paste.
ade shall be laid continuousy, if laying is suspended for rest the end should be sloped at an angle of
30 and made rough for good banding and jointing.
water.
When the work is resumed, the previous slopcd portion shall be roughened, cleaned and
luid on
Over this portion A coat of neat cement paste shall be applied and fresh concrete shall be
the sloped portion.
Concrete shall be compacted by mochanical vibrators so as to obtain dense concrete. Over
The vibration shall be prevented. After removal of the form work, the concrete surfnce shall be frec
from any defects such as honey combing. air holes, cracks etc.
Curing: freshly laid concrete shall be protected from direct sun, rain etc. After the concrete is set
or harden about 2 hours after its laying, it shall be protected with gunny bags. After 24 hours
of
laying of concrete the surfacc shall be cured by flooding with water by making small ponds. The
minimum period for curing shall be 14 days.
12
5.5.10 Specification for M20 grade Concrete in Footing and Column
MSBTES18
atian for M20 grade onerete itfoctig and column AS18)
rse Drat the detailed specifcation for M20 grade of concrete in footing and column.
1. Proportion : Proportion of 1: 1.5: 3 shall be adopted by taking one part of cement, 1.5 parts of
sand or fine aggregates and three parts of coarse aggregate by volue.
it 2. Concrete Ingredients
Cement: Cement shall be measured by weight as per the standard requirements.
Tech Knsiedgë
P*o"tlaas
Specifications
5-22
Contracts and Accounts (MSBTE) well
free from impurities like dust, clay, oil etc. It shall be
Fine Aggregate : 1he sand shall be
washed before usc.

to 40 mm and
shall consist of 67% of sizo from 20mm
Coarse Aggregate: The coarse aggregate clay,
20mm to 6mm. The coarse aggregate shall also be free from impurities like
33% size from
dust, oil and organic material.
drinkable.
Water: The waters all be clean, fcsh and
concrete shall be of mild steel or deformed steel as per the
3. Steel Stecl reinforcing bars used in
rust scales, pairt, greasc, oil etc.
standard specifications and shall be frec from corrosion, loose
made, then an overlap of 40. times
Joints in the bar shall be provented. When joints have to be
by welding. Proper cover
diameter of the bar shall be given. Bigger diameter bars shall be joined
shall be maintained for steel bars, so as to prevent from exposing to atmosphere.
4. Concreting Operations:
Mixing: The mixing of concrete shali be done in a mechanical mixer for large scale concrete or by
band operation for small scale concrete work.
Form work: The formwork shall be oiled from inside before concreting the formwork. The
concrete shall be laid in the forms and tapped in such manner that no honeycomb surface shall
appear on removal of the forms. The formwork and centering shall be made of dressed timber of
well seasoned wooden boards to give Snooth and even surface and the joints shall not allow
leakage of cement paste.
Laying of concrete: Concrete shall be laid continuously, if laying is suspended for rest, then end
shall be sloped at an angle of 30° and made rough for proper bonding and key. When the work is
resumed, the previous sloped portion shall be made rough, clean and watered.
A coat of neat
cement paste shall be applied on this roughened portion and fresh concrete shall
be laid.
Compaction: Concrete shall be compacted by mechanical vibrators so as to
have a dense concrete.
Over-vibration shall be prevented. Hand compaction
shall be done with the help of punning rods
and tamping rods and tamping with the wooden
tampers so that concrete is thoroughly compacted
and completely walked into the corners
of the form work. After removal of the form work,
concrete surface shall be free from any the
defects such as honey combing, air holes,
cracks etc.
Curing: Freshly laid concrete shall be protected
from direct sun, rain etc. When the concrete
or harden about 2 hours after
its laying, it shall be protected
is set
with gunny bags. After 24
laying; the concrete surface
shall be cured by flooding hours of
minimum period for curing
with water by making small ponds. The
shall be 14 days.
Measurement: Length, breadth
and depth or thickness shall
consolidated cubic contents be measured correct to a cm
of the concrete shall be calculated and the
Concrcte laid in excess net to the nearest 0.01 cubic
of the dimensions shown in the
drawings shall not measured.L
neter.
be
Specifications
5.6 Important Difference9s

Difference between brief specifications and detailed specification
Bvery itcm, in this type are written Description of every item are written in detail
abot
I.
with brief or short description. quality quantity their proportion; method of doing|
operation
work test, type of machine and method of
etc.
2. Brief specification do not form part It form part of contract document
of contract document.
.3. Useful for preparing estimate. Useful for executing work.
OOO
Valuations
(6) =
UNIT VIA
and Value,
Detine Cost, Price
Syllabus Valuation, role of valuer.
Definition and purpose of Distress Value,
6.1 Afecting Value Speculative Value,
Characteristics of Value, Factors Value,
Value, Scrap Value, Salvage value.
1ypes of Value -
Book Factors affecting
6.2
monopoly Value, Sentimental
Value, Depreciation-Straight Line
Market Value, Calculation of
Sinking Fund. Methods of
6.3 Depreciation, Obsolescence, Method.
Sinking Fund Method, Constant Percentage Year Purchase,
Types of.
Method, Outgoing, Net Income,
Capitalized Value, Gross Income,
6.4 Computation of
outgoings.
Practice. Mortgage deed,
Fixation of Rent as Per PWD Mortgage -
65 property and free hold property,
lease hold
6.6 Lease types of lease,
making mortgage
precautions to be taken while
6.1 Valuation
MSBTE- S-10. S-15, W-17.W-19
ne Valuafion
Define valte ota
15W19
assessing the present fair
branch of quantity surveying which deals with the art of
Valuation is
value of a property.
change with respect to time.
Vauation gives a fair price of a property and may
6.1.1 Necessity of Valuation or Purpose of Valuation

MSBTES-09: W-09, S-10, S-15: W-17, S-18
the purposeof valuaton S09

enecessiyofAvatuation: F09 Sa0 W
Q istout any eghtpurpasesoraluaton
Valuations
6-2
Contracts and Accounts (MSBTE) purposes.
land, building, factory etc is done for the following
Valuation ofa property such as a
Necessty of Valuation or Purpose
of Valuation
Buying and selling the property

1.
Taxation
2.
3. Rentfixation
mortgage
4. Securty of loans or
5. Compulsory acquisiion
6. Insurarce
7. Weath tax and estate

dutyy
8. Assessment of stamp fees

****
9. Gift tax
10. Partition
Valuation or Purpose of Valuation
Fig. C6.1:Necessity of
buying.and selling property time its sell or purchase.
Kor property like building, land,
factory is essential at the
Valuation of the
the
2 ion corporation, then valuation is required to fix up
municipal
within the limit of
If the property is
municipal tax of property.
Rent ftion to determine the rent of
a property.
Valuation is essential in order
Mottggeorsecurity ofloans obtain loans against security ofa property.
Valuation of property is necessary so as to
5Compulsory acquisition amount of
compensation
in is paid to the owner. The
acquired by a law, then
fa property is valuation.
compensation is determined afier
purpose of
1suRce determine insured value of a property for the
esscntial to
Valuation is necessary and
valuation is required.
fixation of insurance premium;
PbILati
Contracts and Accounts (MSBTE) 6-3 Valuations
7 Wealthtax and etate duty
Valuation is necessary, when govamment fixes up a minimun valuc ofa property or estade above
which wealth tax or cestnte duty shull have to bo puid by the owner of the property.
8 Assessment ofstampfces
In casc ofa ncwly built properly,the incone tax authority used to calculate the total expendituree
incurred to construct tho property for comiparison of the income tux return by the owner.
9.Gift tar
lf property is gifted, hen in such case valuation of the.propcrty is essential to assess the gift tax.
10. Partition
Market value has to be determined to divide the propcrty according to the shares of the owner, in
casc of partition
6.1.2 Definitions
MSBTE W-09.W-18
rWD9W10
QDafnd costand valoe
1. Cost 2. Price 3. Value
1. Cost
Cost is. the actual amount incurred in producing a commodity. In case of civil engineering cost of
property means land cost plus the construction cost i.e. civil enginecring cost of the property
(Land cost+Construction cost)
2. Price
The cost of the commodity plus profit of the manufacturer is termed as price. In case of civil
engineering price of property is the cost of property plus the contractor's profit. i.e. Civ
engineering price of the property= (cost of property + profit of contractor)
3. Value
The corresponding exchange of one commodity to any other commodity is termed as valhue. In case
of civil engineering value of the property is expresscd in terms of money. Value of the property
means its worth or utility. Value varies with time, demand supply raio ctc. Value of a property
may not be same as its cost.
6.1.3Characteristics/or Rroperties of Value

MSBTES-15
Stateicoa
Following are the various properties or characteristics of value
1) Value of the property is its worth or uility.
2) There may not have relation of the cost of construction with its value.
3) The value of a property within à short time may be more or less and depends upon the demand of
supply.
location of the property greatly affect its valuc may be less or more depending upori
the
4) The
location of the property.
5) Value depends upon thie purpose for which it is valucd.
6.1.4 Factors Affecting Value
MSBTE-S-08, S-11.W.12. S-13,W-13. S:14s.15:S.16,W-16 S-18 W-17,S:19:W19
W17
The value of the property depend upon, the following various factors:
1) Structure oftheproperty
2) Life of the property
3) Location of the property
4) Maintenance ofthe property
5) Legal control of the property
6) Demand/supply ratio
7) Purpose for which valuation is done for the property.
8) Inflation of property
9) Returns from the property.
10) Facilities and amenities available (such as water supply line, drainage line); electric supply;
market, etc.
6.1.5 Role of Valuer
1. Carries out inspections in order to determine the current market value of property / land.
2. To conduct a property valuation
3 To structural surveys to check its pbysical condition of property.

4. To help establish various taxes and rating levels
5. To Work out the value of land with development potential.
6.2 Types of Value

MSBTES-10.W:11:W:12:S17:W-18: S-19W-19
TechKealedgë
ubli. 2 tlans
Booalue
eanng o
Following are the various types
of value:
Types of Value
1) Scrap value
2) Savage value
3) Market value
4) Book value
5) Speculative value
6) Distress value
Sentimental value
8) Monopoly value
Fig. C6.2 :Types of Vaue

1. Serap value
It is the value of dismantled materials of a property
at the end of its utility period. Itmay
TO6ofits totalicost of construction. bëabout
2. Salvage value
It is the value at the end of utility period without being
dismantled
Tec aded
Puticatiais
Valuations
6-6
3. Market value any time from the open market.

which may be obtained at
It is the value or amount of a property,
4. Book value can be obtained

mentioned in the account book at the time of purchase and
It is the value or amount
depreciation.
on deduction done by
5. Specalative value
that properties where a proposal are made to construct road,
SpeculatoTS purchase properties is
water line etc. at a low price. amount
property again at profit after a short period without spending any
The speculators sell the
on its development
value.
purchase of such properties by speculator at a low price is termed as speculative
The
Distress value
When it can fetch lower value than the market value,
then a property is said to be distress value.
7. Sentimental value
than thc market value because of feelings of
fa property is sold or purcbased at a higher value
sentimental value.
owner or purchaser towards the property, then it is called as
8. Monopoly value
area, then limited land available has monopoly
If land is not availablc in a particular locality, or
value.
Some properties possess special advantages with respect to its location, frontage, size,
shape ctc.
and in such case, the owner may demand more price.
Hence due to not availability of land in a demandable area/ locality, the value of the property may
be more with fancy prize and in such case, the value of the property is called as monopoly value.
6.3 Depreciation
MSBTES-09. S-10;S:11 S 12.W-12:S-14: S-15. S-17: W-19
5-09;S10,S1S S7W19)
S12W-121
Definition
The loss in the value of the property caused by its use life, wear, tear and decay is called as
depreciation'.
The value of a building will be gradually reduced because of its use, life, wear and tear etc. and a
certain percentage of total cost may be allowed as depreciation to determine its present valuc.
Usually a percentage of depreciation per year is allowed.
Contracts and Accounts (MSBTE) 6-7 ValuationS
6.3.1 Obsolescence
MSBTEW.09: W-12
ABeiine OOsOleSGaplce
2
When the valuc of property becomos less due to its ot of date in style, in structure, in design
clegance etc. then it is called as Obsolescencc.
Thus cven through the property is physically sound; strong; the value of property reduces becanse
of changes in fashion, new inventions, improvements in design technique; modern facilities etc.
6.3.2 Sinking Fund
MSBTE W.09.w:12: S-17.W17:S-18
Definition
An amoumt wihich has to be kept aside at fixed intervals of time, out of the gross income so fhat a
the end of the useful life of building, the fand should accumulate to the initial cost of the property is
called as sinking fund
Following expression can be used to determine the amount of sinking fund.
DZSGODHXG
Where, S amount of sinking fund

i rate of interest in decimal.
n = mumber of years required to create sinking.
I annual installmentrequired
6.3.3 Methods of Calculating Depreciation
MSBTES-08, S:09, S-10,S-11.W11S12,W12:S-13:S-14, S-15,S-17:W-18.S-19.W-19
arediyeemnuat 6s oLcalcalatin9 preciation 2 Expan.bref
SHOS
A
SO W
depreCiatloN
ation andkex
uiaiOontini
Following are the various methods used to calculate the dcpreciation :
Methods of Calculaing Depreclation
1) Straight line mathod
2) Constant percentage method
3) Sinking fund metthod
4) Quantity survey method
Fig. C6.3: Methods of Caleulating Depreciation

1. Straight line method
This is one ofthe method useful to calculate the depreciation of the property.
In straight line method it is considered that the property loses its value by the same amount every
year.
A fixed amount of the original cost is deducted every year, so that at the end of the utility period
only the scrap value is left.
Anual Depreciation
-Original cost-Scrap value
D= life in year
2. Constant percentage method or Declining balance method
.
This method is also one of the method used to find depreciation of the property.
In such method, it is considered that the property will loose its value by a constant percentage of its
value at the beginning of every year.
Following expression ís used to find the depreciation by this method
Anmual deprecation P =1-

Where, S Scrap value
C= Original cost
h Life of the property in years
3. Sinking fund mothod.
This is also one of the method in wiich depreciation of property is considered
to be equal to the
amual sinking fund pus the interest on the fund for that year, which is supposed
to be invested on
interest.bearing iavestment.
Sinking fund method is based on a well established principle of
compound interest, however
method do consider the consumption of usefulness of tae property. this
Tachleated
tiess
Valuations
6-9
Quantity survey method detail and
4.
method in which the property is studied in
widcly uscd
1bis 1s onc of the most useful and
deterioration is worked out.
loss in value owing to the physicnl obsolescence
modemization or important changes so as to ofiset
to
The armount spent or to be spent
is workcd out.
Capitalized Valu
6.4 Capitalised Value and Computation of
Definition commensurate with
annual interest at highest prcvailing rate of interest,
Amount of moncy whose
will be cqual to the net
income arising from such property is
the type of property umdcr referencc,
called as capitalizod valuc.
obtain a periodic payment in the form of net
Capitalized valuc is the amount necded to be puid to
retun in perpetuity.
6.4.1 Data required to Compute Capitalized Value MSBTEW-13
Wwhatis capitalizedvaue? ofits computaton.

theimethodko
Following data is needed to compute the capitalized value:

outgoings from the gross income is
1. The nct income from the property after deducting all the
required to compute the capitalized value.
. Net income = (Gross income - Outgoings)
The highest prevailing rate of interest for investment in such type of property
is also required
2.
The rate of capitalization depends upon the following data

1. Ease of liquidity of the asset
Divisibility of holding
2.
3. Presence of rent review clause.
4. Ease of management and transfer,
5. Likelihood of capital gains.
6. Use of property (for commercial/Residential)
7. Security of capital
8. Presence of legal hazards.
6.4.2 Gross Income
Total income which includes all receipts from various sources
of income is called as gross income.
TechKladg
Pubtitattons
Contracts and Accounts (MSBTE 6-10 Valuations
6.4.3 Outgoings
MSBTEW-10.W.17
W10W1T)
Expenditure or expenses which are to be incurred in connection with the property, to maintain the
revenue from it is termed as outgoings.
isgones are generally 30%.ofthe gross, income

6.4.4 Net Income
Amount left after deducting all outgoings from gross income is called as not income.
6.4.5 Years Purchase (Y.P.)
MSBTE W-12: S-17S:18
aningand wrte omula.for:Year spurch W12)
Figure which is multiplied by the net income gives the capitalized value of a property on the
material date of valuation is caled as years purchase (Y.P.).
Capitalized value = Net Income * Years purchase

E Capitälised.value
eaTsinceh
Netincome
Y.P. is the capital sum required to be invested so as to reccive an annuity of Rs. 100, at certain rate
of interest.
Y.P. =
100 100
rate of interest i
where i = rate ofinterest in decimal
When the rate of interest on capital is 5% then

100
Y.P. 20
6.4.6 Types of Outgoings and their Percentage
MSBTE w-10:W-17:W-19
peogotgings W103W 17 W 19
R Contracts and Accounts
(MSBTE)
6-11
Tho usual types Valuations
ofoulgoings related with real propcrties arc as follows:
Types of Outgolngs ahd thalr
Parcontage
1. Municipal laxes
2. Governmenttaxes
3. Annual repairs and maintenance
4. Insurance
5. Management and collection
6. Sinkingfund
Fig. C6.4: Types of Outgoings and

their Percentagge
1. Municipal taxes
The taxes which are paid to the local authority
for services like water supply; sanitation etc.
Such taxes are calculated at certain percentage
of rateable value of the property.
2. Government taxes
The taxes which are paid to the government land
tax, education taxes are to be paid to the
govenment authority.
3. Annual repairs and maintenance
The amount spent on the repairs and maintenance depends
upon
a) Age of building
b) Condition of the building
Use of the building
d) Climatic conditions or weathering effects to which building
is subjected to.
e) Number of tenants occupying the building.
1% to 1.5% of the total cost of construction is considered
for annual repairs and maintenance
4 Insurance
Insurance is the premium paid by the owner of the property.
It depends upon sum assured.
5. Management and collection
Management and collection are the charges which consists
of the cxpenses on watchman, lifman,
sweeper, rent collector etc.
These charges are generally taken 5 to 10% of the gross rent.
Tedikled.
PblIcatinos
**
Valuations
6. Sinking fund
accumulate at the 'compound interest is a sinking
Fund created by regular periodic payments which
structurc.
fund. Amount of sinking fund is used at the cnd of utility period of the
6.5 Valuation of Lands and Buildings

and buildings:
Following are the various methods used for valuation of lands
1) Rental method
*
2) Direct comparison
3) Valuation based on the cost
4) Valuation by refcrence to profits.
5) Development method
valuation of land:
Following are the various methods used for
1) Comparative method
2) Abstractive method
3) Belting method
and Building9
6.5.1 Factors Affecting Valuation of Land
building:
affecting the valuation of land
amd
Following are the various factors
Factors Affecting Vahuation of Land
and Bullding
1.Property location
2 Price index
.Size
4. Shape
Frontage and depth
5.
6.Retum rontage
7. Nature of soll
8. Level of the ground
Valuation of
Fig. C6.5: Factors Affecting
Land and Building
1. Property location to a great extent is nothing but

affects the valuation o1, a land and building
Major factor which
property location.
"
locality and market is more.

value of land which is situated in a busy
The
Tchededy
Pobitcat(ens
For example, the valuc of land at Camp road or Laxmi road in pune will definetly more than tie .
value of land located away from the city.

2. Price index
Value of building goes on increasing because of more inflation. Price index may be controlled by
taking the proper and suitable stops by government or by R.B.I
3. Size
The prize or rate of large land cannot be compared with the small land.
Shape
The value of the land having regular shape will be more than that of the land with îregular shapes.
5. Frontage and depth L
The value of back portion of plot reduces as the distance from street increases.
Hence a plot with more frontage will have greater value.
6. Returm frontage
Since the comer plot gives more light and cross ventilation, its vàlue is more
Cormer plot gives wide scope developing is more better architectural plaining.
7. Nature of soil
The nature of soil play a vital role for the construction point of view.
No dought black cotton soil is very good for agricultral point of view but it is very poor for
consiruction of a building. Hence land consisting of black cotton soil will have less value when
used for constructing building structure.
8. Level of the ground
Iflevel of the ground is uneven, then it will have because maximm amount will have to be spent.
for earthwork.
6.5.2 Book Value Method
The book value is an amount shown in account book of a particular year after making due
provisions for the depreciation of the previous year.
Valuation of a property determined with book value method depends upon the depreciation allowed.
per year.
Book value method is not affected by market terms and. conditions.
6.5.3 Replacement Value Method
Replacement value method, gives the cost to be incurred to replace the structure, at the prevailing
market rates for labour and materials.
6.5.4 Comparison Method
Various transactions of nearby property are compared in this method. When there are similar
property transactions are available only then this method is adopted.
P7Tediaded
btations
Various physical paramcters such as size of plot,

shape of plot, frontage, natre of soil, level of
of the property to be purchascd.
ground etc should be property studicd, hefore finnlising the valuc
6.5.5 Use of Valuation Tables
mathematical computation;
For the sake of reducing thc chances of crror; in lcngthy and laborious
the valuation tables are preparcd and thus it save the time.
Suitable coctficicnts are found out, by using the valuation table. These coefficicnts are
further uscd
to find the valuation more speedly.
Following valuation tables are considercd
TableI Table I is used to find the amount to which Rs. 1/- will accumulate at the end of a given
period at compound intcrest.
Table IITable II is used to find the present value of Rs. 1- receivable at the end of a given period.
Table II Table Il is used to find the amount to which Rs. 1/- per anmum invested at the end of cach
year will accumulate in a given time at compound interest
Table IV : Table IV is used to find the amount of annual sinking fund for the redemption of Rs. 1/-
capital.
Table V Table V is used to find the present value of Rs. 1/- per annum fora given number of years
allowing simple interest on the capital and accumuiation of an annual sinking fimnd.
Table VI :
Table VI is used to find your purchase of a reversion to a perpetuity after a given number
of years.
Table VI : Table VII is used to find the annuity Rs. 1/- which will purchase on the single rate
principle.
Table VIM: Table VII is used to find the depreciation percentage based on sinking fund method.
6.5.6 Deferred Vaiue of Land or Reversionary Value
Deferred value is the part of the value which depends on the future realization of an.expected
inmprovemet in the property which may be due because of:
1. Increased anticipated demand
2. Future scarcity
3. Maturing of a crop as with timber
4 Increased rent under an existing leasc.
5. Retun to a freeholder of vacant possession of land on the expiry of a long lease.
6.6 Fixation of Rent as Per PWD Practice
Following are the various steps involved and can be used for fixing a rent as per PWD
practice.
1. The cost such as the cost land and the cost
of construction are considered separately.
2 Suitable percentages of interest arc allowed on the above
two costs. (i.e. cost of land and cost of
construction.)
TediKasatedgi
Pubtiatiaa
**

3. Net income from the property is worked out by dividing the capitalizod value by a proper figunre of
ycars purchase.
Capitalized value
.Netincome Ycars purclhase
4. All possible outgoings are added to net income and it gives the gross rent or gross income
5. Rent per month can be calculated by dividing the gross income by 12.
Gioss income
Rentper monthrOsIncome
1.e.
The rent worked out by this proccdure is known as the standard rent but the actual rent of a
i
property can be more or less than this rent.

The actual rent is called as the contractual rent
Standard rent is the rent which can be lawfully charged to the tenant when the contractual rent is
more than the standard rent, the court can lower it to the standard rent if the tenant moves to the.
court. But when the contractual rent is lower than the standard rent, the court shall not rise it to the
standard rent.
6.7 important Differences

1. Difference Between Cost, Price and Value
MSBTE - W-10
O Dffferer andvalie w101
1. In case civil In case of civil Incase of civil engineeing; value of the property
engineering, the cost is
engineering, price of expressed in tems of money.
of property is equal the property is equal
to the land-cost plus to the cost of the
the constructon cost. property plus the
profit of contractor.
2. Cost is fixed for a Prlce varies with % of Value depends upon many factors
particularproperty profit of the
and can change.
contractor.
3. The cost of The price of
construction is same the The value of the property will
be detemined by its
property can change location
in different parts in and demand orsupply.
a with respect to time
particular city or
depending upon
toWn. demand or supply.
PubItations
Valuations
6-16
Valuation of a Buildin9
between Estimation and
Difference
or present worth of
the
construction It gives the valueconstructed.
approximate cost of the
lt gives the property alrcady
work to be done. quantities and
consists of finding the
2. lt consists of finding the
quantities, rato analysisIt value of the property
workingpresent
and cost of the construction from the
drawing.
Market value of
property to be sold or
construction
3. Estimated quantities and cost of the purchased is found out by
the method of
estimation.
work is found out by the method of valuation.
.3. Difference between Depreciation and Obsolescence MSBTEW-10. S-18
W10 S18
property because of change in

1. The physical loss in the value of the | The loss of the
new inventions, modern
property caused by its use lifë, wear, tear fashion, style,
and decay, is called as depreciation. facilities etc. is called as obsolescence.
age of
2. Depreciation depends upon the age of the Obsolescence do not depends upon the
property. More is the life; more will be the the property. The reduction in the value of the
depreciation. property may be sudden.
3 Depreciation can be determined by various Obsolescence cannot be calculated or

methods. determined by only method.
Difference between Annuity and Sinking fund
MSBTE S-15
1. It is annual periodic payment for the

It is the fümd set aside every year for the purpose of|
capital amount invested. reconstructing the property after end of utility period.
2 The anuity is paid at the end of year or Sinking find which

is invested in government securities
at the beginning of year after the end ofutility period.
TrTd
nnuIy
3. Calculation of annuity depends upon Calculation of sinking fund depends on rate of interest|
rate of interest and capital required. and life of building.
5. Difference between Scrap value and Salvage value.
MSBTES-15
Differenatiate between scrap valiueand savageyal
SNo Crap:vsue Sageyalne

1. It is value of a dismantied material at the end It
is the value at the end of utility perod
of utility period. without being dismantled.
2. The materials are sold in parts. The whole unit is sold.
3. It is about 10% of initial cost. It may be different according to situation.
. 6. Difference between Market Value and Book Value

MSBTE S-18
A DiiterentiEteibeveeniMarket value andk80dkovaliue S1RH

STNOA MarketValue alue
1. It is the value or amount of a property,It is the value or amount mentioned in the
which may be obtained at any time from| account.book at the time of purchase and
the open market. can be obtained on deduction done by
depreciation.
2. Market value is pot readily available. Book value is readily available.
3. |Frequency of fluctuations are frequent. Frequency of fluctuations are not frequent.
4
When market value is greater than book| When book value _is greater than market
value there is loss. value there is profit.
6.3 Examples on Valuation

Ex. 6.8.1
A building has been constructed for Rs. 18,00,000 Assuming its scrap value, at the end of 50 years Rs.
50,000/- determine the amount of depreciation by straight line method.
Soln.: This example can be solve by straight line methodd
DepreciationD =
Original Cost-Scrap value
fe in year
18.00.000-50,000
50
TecKed
35,000/- ..Ans.
The amount of deprcciation= 35,000/- per annumn.
onstructed at.cost.of Rs. 4,00,000.Calculate themonthly rant of property

ORland Rs1,00,000
pected on cost ofland 5%:
oected oncost.of construcion 80
andmaintenanca0.5% of.cahstruction cost
GuIgaigs20%1orgrossrent.
Kag.und RS 500/ s-08,4 Marks
Soln.
Given
Cost of land=1,00,000= 00
Construction cost= 4,00,000 00
Sinking fiund= 500= 00
Step 1:To find net return on land cost
Net return on land cost= T00*
10
1,00,000
5,000/-
=
Step 2 To find net return on construction cost

Net return on construction cost 100 4,0,000
32,000/ =
Step 3:To find repairs and maintenance

0.S
Repairs and maintenance 100* 4,00,000
2,000/-
Step 4:To find net rent
s000+32000 +2000 + sinking fund
5000+3200 + 2000 + 500
39500
=
Step 5.: To find gross rent per annum

Ofther outgoings=0.2x
(20% of gross rent assuming gross rent as x)
Gross Rent = Net Rent+Outgoings
39500+0.2 x
0.8 x= 39500
.x 49375
GrosS rEnt per annum== 49375
Pubiications
.
Contracts and Accounts (MSBTE) 6-19 Valuatons
Step 6: To find gross rent per month
Gross Rent per month 493 s 4114.58
12
Say Rs. 4120/- An8.
Ex G8XN
ApersoNak 6000O IN landand
building expectirng7gun
fund to be 2000osofahnualnapaisito.bels 17504and niánsgenn.charg
annum Odte outaenga20oNrous rgn acldemorthly.rent 4 Miarks
S-07. LA
Soln.
Given:
Cost of land and building 3,60,000 -00
7
) Netretum on cost of land and buildjng=0nx
100
3,60,000
25,200/
i) Annual sinking fund =2,000/-
i) Cost ofannual repairs =1,750/-
iv) Management charges 3,000/-
Net Rent =31,950 = 00
Step 2:To find gross rent per month
Other outgoings (20 % of gross rent assuming gross rent as x)= 0.2 x
. Gross Rent = Net rent +Outgoings
x = 31,950.+0.2 x
0.8x= 31,950
x 39,937.5
. Gross rent per annum= 39,937.5
Gross Rent per month = 39,937.5/12 3328.12
Say Rs. 3,330/
Ans.
ET6.8
PA
res
0onkouiner
S-09. 6 Marks
Soln.
Given:
Land area= 500 sq.m.; Rate to purchase land = Rs. 50/Sq.m
Plinth area= 200 sq.m with ; Rate Rs. 900/- sq m
Returns on land =6 % ; On house return= 10%
YPudlcatieDS
Valuations
Outgoings= 30% of gross income;

Rent per month for property = ?
Step 1:To find cost ofland
Cost of land 500 x 50- Rs. 25000
Step 2: To find cost of building
Cost of building = 200x 900 = Rs. 180000
Step 3; To find gross rent
Net returm on cost of land
6100x 25000 1500
10
Net retum on cost of constant=T00x 180000= 18000
Net rent per year 1500+ 18000=Rs. 1950

Let gross rent = x
Gross rent = Netrent + outgoings
x= 19500+100x 19500 +0.3x
x-0.3x = 19500
0.7x= 19500
X 0.727,857.14
say=27,850
Gross rent = Rs. 27,860 per annum
Step 4: To find gross rent/month
Gross rent per morth 2800= Rs.2,321.67
12
= Rs. 2,322
w-09, W-19..6 Marks

Soln.
Given
Cost of land 600 x 900 540,000
Cost of building 200 x 700 140,000
Net retum1,
5% on cost of land = 6 x
T00 540.000=32400
Valuations
EContracts and Accounts (MSBTE) 6-21
6%% on cost of building.= 0n x 140.000=7000
Gross rent= Net rent +out going
Net rent = Net return/annum
Out going = 0.22 GR
Net rent = 7000+32400 39400
Step2:To find gross rent
Gross rent= 39400 +0.22 GR
0.78 GR = 39400
GR= 50512.82/year
Step 3: To find gross rent per month
.Gross rent per mnonth
50512.82
4209.40
12.
= 4210 .Ans.
APOrsonprenses
bmcing
ing
SASSUmealN
S-10. 8 Marks
Soln.
Step 1: To find cost of land
Cost ofland= 1000 x 900=Rs. 900000/-
Step 2:To find cost ofconstruction
Cost of construction = 70 x 850 = Rs. 59500/
Step 3: To find net return
Net return on cost of land = x 900000
- Rs. 63000
8
Net return on cost of construction -10x59500
Rs. 4760/-
Anmual sinking fiund = 3000/
Outgoings = 25% of Gross income

= 0.25 xx
Step 4: To înd gross rent per month
Net Income= Gross ncome -outgoings
Gross income or rent = Net income or rent +outgongs
Tech
PuDifCatisos
x = 70760 +0.25 x
x-0.25 x = 70760
70760
0.75
x = 94346.667
Gross rent per annum
Rs. 94346.667 outgoings are 00xx
where x is Gross Income.

94346.66l=Rs.7862.22
Gross rent per month=* 12 Ans.
Monthly rent for the property is Rs. 7862.22/-
ndotdin
S-11.8Marks
Soln.
Given: Cost of construction=3,00,000
Cost of land@Rs. 50 per sqm= 30,000
(50 x 600)
Step 1: To find total net return per annum
Return expected on cost of land an building 8%= 26,400
TOOx3,30,000-26,400
Total net rcthn per amnum=26,000/

Step 2: To find expenditure on outgoing per annum
Expenditure on outgoings per annum
) Sinking fund at 3% for 60 years (on 90% of building cost)
3,00,000xx 100
8100 ...(A)
() Other outgoings at 30% of
Gross reat = 0.3 xx ..(B)
(assuming gross.ret as x)
echIneadedgi
YPbtications
Valuations
Total of expenditure on outgoings per annum

(A)+(B) = 8100 +0.3x
Gross rent = Net return + outgoings.
x = 26400 +8100+ (0.3x)
x = 34500 +0.3x
0.7x 34500
X = 49285.7
Step 3: To find rent per month

49285.7
Rent per month = 12
ooAns
= '4107.14 4108
Er 68.38
Calailate t operty fro
S-07. 4 fviarksg
mNetyield.expected fromn
Soln.
Step 1: To find Y.P.
100 100_ 16.67
Years Purchase (Y.P)Raie of interest
Step 2: To find total outgoing,

Total outgoings 20% of grossincome
20
100 400= 80
income
Step 3: To find net monthly
income-outgoings
Net monthly income=Gross
= 400-80
320
income
Step 4:To find net annual
3840/-
Net annual income = 12x 320=
capitalised value
Step 5: To find
income x Y.P.
Capitalised value = Net amnual
= 3840 x 16.67
Ans.
64012.8 =64,000/-
Capitalised value = 64,000

TPuBIICcatics
ContaCis and ACCOuntS (MSBTE) 6-25
Step 2: To find capitalized valuce
. Capitalized value= 10,140 x 11.11 =1,12655.4
avngifoOWIG
montt
turg
R AW.10:8 Marks
Detemuneiaivaue ofti
Soln.
Given
Gross rent=Rs. 2500/ month
Outgoings = 30% of Gross rent
Future life = 35 years
Estirnated value of land=Rs. 2 Lakhs rate of interest 10%
Step 1: To find capitalized value
Capitalized value = Net incomex Y.P
Net income= Total income -Outgoing
= (2500x 30
12)-00 (2500 x 12)
= 30000-9000 21000
Y.P +s
10
i =0=0.1
S 0.1 0.00369
1+0.1)]
Y.P S
0.1+ 0.00369
Capitalized value= Net incomex Y.P
x
=29000 9.64=2,02,440
Step 2: To find fair value of the property
Fair value Capitalized value + Cost of land
2,02,440+200000 4,02,440/
68 13
atgoings20ofgrosS T9T
Netyieldkexpectedomthepopery
ie feöfbuitding60ears -11.6 Marks
Techided
YPuditcatios
Valuaons
(MSBTE) 6-26
Soln.
Given
taxes =Rs. 400 P.M.
) Rent inclusive of all
gross rent
(i) Outgoings=20% of
the property = 6%.
(iii) Net yield expected from
= 60 years.
(iv) Future life of building
sinking fund S = 6%
Assuming rate of interest on
Step 1:To find Y.P.
the end of the given term S
Sinking fund to replacc Rs. 1-at
S (1 +S)"-1
S
0.06
(1+0.06-1 1875 x 103
Y.P. i+S
Y.P.= (0.06) +(1.875 x 10)
Y.P. = 16.16
Step 2:To find net annual income

gross income
Total outgoings= 20% of
20
100x4O0= 80
Outgoings
Net monthly income= Gross income-
= 400-80= 320
Net anmalincome= 12x320 3840-
Step 3: To find capitalized value
Capitalized value = Net annual income x Y.P.
= 3840 x 16.16
= 62054.4 say 62100/-
...Ans.
. Capitalized value 62100/M
Huifding9
OsEOKConS
1Gome xSUggest
onaandycost SS naouttoin 6 Marks
SÜtaemonny.re
S-14:
Soln.
915/mn
Area of plot=600 sq.m, Rate Rs.
=
Given:
Built up area= 300 sq.m
Cost of construction =Rs. 1200/m Knesdedg
TedtDIC tion
6-39 Valuations
Soln.
Cost of land- 100 x100 Rs. 10000/-
Cost of construction =Rs. 1000000/-
Total cost of land and building= Rs. 1010000/
Return expected on land and building= 6/100 x
1010000=Rs. 60600/-
Let x be the gross rent per annum

Other outgoings = 20% of gross rcnt
(20/100) x = 0.2 x
Gross Income or rent=Outgoings+Nct rcturn
X = 0.2 x+60600
X = Rs. 75750/
Rent per month= (75750/12)
= Rs. 6312.50/-
R10
Ca W-18,.8 Marks
Soln.
Monthly rent=Rs. 4000
Annual income from rent=Rs. 48000/-
Net income = Gross income- outgoings
Outgoings are
Sinking fund installment = Rs. 1000 per annum
Repairs cost= Rs. 10000/
Other outgoings = 20% of gross income
Net income= 48000- 1000-100000.2 x 48000
= Rs. 27,400/
Y.P. =
1/l=1/0.09
11.11
Capitalized value = Y.P.x Net annual income
11.11 x 27400
Rs. 3,04,414/
Toch ed
Pubiicatioos
Valuations
to 300 sq
S-19.8 Marks
Step 1: To find cost of land
Cost of land= Area of the plot x rate
=
300x 1000 3,00,000
Step 2: To find cost of building
Cost of building= Built up area x Cost of construction
x 15000= 15,00,000
100
Net return
12% on building cost = 12/100x1500000 1,80,000
8% on land cost= 8/100x 300000 24000.
Gross rent Net rent+outgoings
Net rent = Net return/ annun
Outgoings = 25% of gross income or gross rent (GR)
0.25 GR
Other expenses 1000x 12-12000
Net rent 180000+24000 204000
Gross rent = 204000+ 25% GR +12000
100% GR =. (216000+25% GR)
(100% GR-25% GR) = 216000
75% GR = 216000 **.
0.75 GR = 216000
GR 216000/0.75s
.288000 / year
Step 4:To find gross rent per month
Gross rent per month = 288000/12
24000
24000/
potiy.netrentRs B00o
S-19. 4Marks
Soln.
Step 1: To find years purchase (YP.):
Capitalized value=Netincome x Y.P.
Net income= (6000 x 12)= 72000
Pettlcatiess
Contracts and Accounts (MSBTE 6-41 Valuations
Y.P 1/= 1/0.1= 10

Step 2 To find'capitalized value:
Capitalized value= 72000 x 107,20,000
fund ton CE COsrdJoB 208CLife ADybars rte timetect6
Marks
ASSume10 5-19. 4
Soln.
Scrap value = 10/100 x 2800000= 280000
S original cost-scrap value
2800000-280000
= 2520000
S Sx i/(1 + S)"-1
S = 2520000 x 0.06/ (1 +0.06)- -1
19118725
Anmal installment for sinking fund is Rs. 191187.25
6.9 Lease-.Types of Lease, Lease Hold Property

Lease hold property
Lease is a form of property tenure.where one party buys the right to occupy land or a building for a
given length of time. (often a 99 year lease is common), the leaseholder has the right to remain in
occupation as an assured tenant paying an agreed rent to the owner. The various Terms and
conditions ofthe agreement are contained in a lease,
6.9.1 Types of lease
1. Absolute Net Lease
An absolute net lease typically pushes al the expenses to the Tenant, including taxes, insurance,
maintenance, roof, structural, and parking lot maintenance and repair. This lease typically occurs
on a single-tenant building which a landlord builds to the tenant's specifications and then turns over
to tenant on a long-ierm lease.
2. Triple Net Lease
A triple net lease is typically net of tTee expense categories: real property taxes, insurance and
maintenance.
3. Modified Gross Lease
A modified gross lease typically binds the landlord to pay the real property taxes, insurance and
common area maintenance, while the tenant takes TEsponsibility for its own utilities, interior
maintenance.
4. Full Service Lease
Just as the name implies, a full service lease covers all the landlord pays taxes, insurance, common
area maintenance, interior maintenance, janitorial, utilities and so on. As a result, the rent is
relatively high. Some of the few exceptions are telephone and data expenses
Pubiications
6.10 Mortgage Mortgage Deed, Precautions to be taken while Making

MortgagJe
Mortgage deed
The ten mortgage loan is often used informally for any loan backedl by property.
When you
A mortgage deed is n legally binding ngreement, using property as collateral for a loan.
is the paperwork you
purchase a home, you make payments on n home loan. The mortgage deed
sign that allows the owner to purn a lien on the property until the loan paid.
is
A borower agree to the terms of a loan, including how much money is

being borroed and how
must be made.
long the borower will have to pay it bnck and how frequently payments
and some have fixed
Different loans have different interest ratcs hased on borrower credit risk,
rates that can fluctuate over time
rates that stay the same over time whilc others havc adjustable
based on prevailing interest rates and the terms of the agrecment.

CAA Book

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CAA Book

Uploaded by

Copyright:

Available Formats

Contracts and Accountss

Miaharashtira State Board:ofTechnical Education (MSBTE

SgeRnew revised 1Schege

1.3 PWD Procedure of initiating the work*

1.2 Organisation Setup of PWD

Chief engineer (CE)

Superintending Superintending Superintending Superintending

Executive engineer (EE)

Assistant øxecutive engineer (AEE)

Junior engineer (JE)

Skilled workers Semi skiled. Un skilled

Below diagram will give an idea of P. W.D.

1.2.3 Functions of PWD Personnel

1. Chief engineering (CCE)

) Function of chief engineer

MSBTE S-13, W-13:$-15: S-17

He is responsible for execution of work in his circle.

(6) Inspect division in his circle and report

(ii) Function of Executive engineer / Divisional officer (EE)

State tunction otExecttveengine

3) Ensures all tools plants and machinery are properly maintainedL

(6) He is responsible for preparation of project design, estimate etc.

(iv) Functions of Assistant enginccr/ SDE/SDO

3) Physical verification of measurement book and dead stock.

(v)Functions of junior engineer (JE)

(2) Maintain attendance of daily worker, labours.

) Taking measuremeni of all work in MB

6) Prepares estimates for all types of works in his section.

departmental materials or any difficulty during execution.

1.3 PWD Procedure for Initiating the Work

1.4 Administrative Approval

eneaningot teS Adrrinistrative-approval 1W12)

1.5 Technical Sanction

1.6 Budget Provision

After getting administrative approval and technical sanction a

)Item rate or unit price møthod

H0 Rate list mathod

iv) Employing labour on daily wages

Fig. C1.1: Methods used in PWD for Carrying out Works

1.7.1 Item Rate/Unit Price Method

1. Suitzble for private work

4. Tenderer can easily form ring.

Percentage rate method is further classification

Cost plus fixed fee contract.

4. Cost plus variable percentage contract.

stipulated rate only

1.7.5 Day's Work Method

In this method departmen pirchase materialtdireciy.irom supplier and engage:labour on daily

Passed for Rs. .... (Rupees...)

Transferred to register of arrears,

Total amount paid in words rupees

1-13 P.W.D. Procedure to Execute The Work

Rules for writing muster Roll

2. Muster roll should never be prepared in duplicate.

Present in morning but absent in cvening.

2. Present in cvening but absent in morning.|

Absent in morning and evening.

SNo In this method valuation will be made

2. This method is suitable for This nethod is suitable for

2.4 Classification of contractor on basis of financial limits, Requirement

2.3 Requirement ofValid Contract

tvalid contractndetai 11WS125WES15

Following are the requirement of valid contract: