Contract Management

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NATIONAL INSTITUTE OF CONSTRUCTION MANAGEMENT AND RESEARCH
CONTRACTS MANAGEMENT SUBMITTED BY: MALIM NIDA LIYAQAT REG. NO. 212-07-31-10773-2141

PGPM 14

ASSIGNMENT NICMAR/SODE OFFFICE
1.COURSE NO : 2.COURSE TITLE : PGPM 14 CONTRACTS MANAGEMENT

3.ASSIGNMENT NO : 04 4.DATE OF DISPATCH : 5.LAST DATE OF RECEIPT OF ASSIGNMENT AT SODE OFFICE :

ASSIGNMENT
CONTRACT ADMINISTRATION AND MONITORING IS THE MOST IMPORTANT AREA OF CONSTRUCTION MANAGEMENT. CONTRACT ADMINISTRATION PROCESS SHOULD START RIGHT FROM THE DAY WORK IS ASSIGNED TO THE COMPANY. DISCUSS ANY PROJECT CONTRACT CURRENTLY IN PROGRESS WITH YOUR COMPANY AND HOW ADMINISTRATION AND MONITORING IS BEING DONE. DRAW THE ORGANIZATION CHART FOR THIS ACTIVITY AND EXPLAIN ALL FUNCTIONS CARRIED OUT. DO YOU THINK THE SYSTEM IS ACHIEVING RESULTS. DISCUSS.

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NAME OF PROJECT
AUGMENTATION HYDERABAD.
OF

CHLORINATION

FACILITY AT

NUCLEAR FUEL

COMPLEX ,

SCOPE OF WORK
THE
PROJECT CONSISTS OF CONSTRUCTION OF AN INDUSTRIAL BUILDING WITH R.C. PORTAL STRUCTURE ADMEASURING 50 M X 18.75 M X 21.25/ 15.5 M. THE BUILDING SHOULD HAVE ASBESTOS - FREE, FIBER REINFORCED CEMENT SHEET ROOFING WITH SUPPORTING PRE -CAST R.C. PURLINS

IMPORTANT DETAILS OF CONTRACT, COST, TIME, TYPE, ETC.:
THE CONTRACT
IS OF ITEM RATE BASED AND WAS AWARDED AFTER PROCESSING THROUGH COMPETITIVE BIDDING IN THE P UBLIC TENDER UNDER CPWD WORKS PROCEDURE . THE ESTIMATED COST OF THE PROJECT WAS RS.4.08 CRORES AND THE COMPLETED COST OF THE PROJECT WAS RS.4.75 C RORES. THE STIPULATED DURATION OF THE PROJECT WAS 12 MONTHS BUT THE FINAL COMPLETION PERIOD OF THE PROJECT WAS 24 MONTHS . IN THIS CONTRACT, PAYMENT FOR WORK DONE IS MADE ON THE BASIS OF THE QUANTITIES OF WORK ACTUALLY EXECUTED AND MEASURED , MATERIALS SUPPLIED AND USED BY THE CONTRACTOR ON THE PROJECT, EACH SUCH QUANTITY BEING MULTIPLIED BY THE CONTRACTOR ’S CORRESPONDING UNIT RATE GIVEN IN HIS TENDER FOR THAT ITEM. IN THIS TYPE OF CONTRACT, REASONABLE VARIATIONS IN THE TENDER QUANTITIES OF THE WORK DO NOT MAKE ANY SUBSTANTIAL DIFFERENCE TO THE CONTRACTOR AS HE GETS PAYMENT FOR THE ACTUAL WORK AT RATES SPECIFIED IN THE TENDER . FOR CONTRACTOR TO SUBMIT THIS ITEM - RATE TENDER , HE WAS PROVIDED WITH GENERAL SPECIFICATIONS , DESIGNS AND DRAWINGS TOGETHER WITH ESTIMATES OF QUANTITIES SO HAS TO ENABLE HIM TO ASSESS THE MAGNITUDE , CHARACTER AND DIFFICULTY OF THE WORK AND THE PROBABLE COST AT WHICH HE CAN EXECUTE IT. THE CONTRACTOR WOULD BE ENTITLED TO CLAIM AN ADJUSTMENT IN HIS COMPENSATION IF THE ACTUAL WORK PROVES TO BE CONSIDERABLY DIFFERENT IN SPECIFICATIONS , QUALITY AND QUANTITY FROM THE DATA PRESENTED TO HIM AT THE TIME OF INVITATION TO TENDER . THE MAIN SATISFACTION IS THAT HE GETS UNIT RATES FOR THE QUANTITIES ACTUALLY EXECUTED . THE ONLY UNCERTAINTY TO THE EMPLOYER IN SUCH CONTRACTS IS THAT HE WILL NOT BE IN A POSITION TO KNOW THE ACTUAL COST OF THE JOB TILL ITS COMPLETION . BUT HE HAS AN ADVANTAGE OF AN EARLIER START OF THE WORK PENDING , COMPLETE DETAILING OF ENTIRE WORK, ALONG WITH THE PROGRESS OF CONSTRUCTION . A T THE SAME TIME BOTH THE EMPLOYER AND THE CONTRACTOR WILL HAVE TO KEEP THE DETAILED ACCOUNTS OF MATERIALS , EQUIPMENT AND WORK FOR PURPOSE OF MAKING INTERIM PAYMENTS , AND FOR EMPLOYER TO WATCH THE PROGRESS OF EXPENDITURE . EVEN IN ITEM -RATE TENDERS , ALL ITEMS ARE NOT

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PRICED SUCH AS THOSE FOR SITE CLEARANCE, DEWATERING , SHORING , GRADING AND CLEARING OF SITE AFTER COMPLETION OF FOUNDATIONS , ETC

IMPORTANT POINTS FROM CONTRACTOR’S POINT OF VIEW TO BE MONITORED / RESOLVED
1. THE
BUILDING IS SITUATED AMIDST THE INTENSIVE WORKING -PLANT AREA WITH RESTRICTED PHYSICAL AND ADMINISTRATIVE ACCESSIBILITY .

2. THE

EXPOSURE CONDITIONS ARE SEVERE BECAUSE OF THE CHLORINE FUMES RELEASED BY THE ADJACENT FACILITIES AND THUS PRECAUTIONS WERE TO BE EXERCISED FOR PROTECTING THE HEALTH OF CONSTRUCTION LABOUR UNDER THE GUIDELINES OF OHSAS 18001 - 2007. HEIGHT OF THE BUILDING IS 21.25M . AT RIDGE LEVEL 15.5M. A T EVE’S LEVEL WITH AN INTERMEDIATE MEZZANINE AT 5.6M. LEVEL. A CLOSE MONITORING OF THE MANPOWER WAS REQUIRED AS PER SAFETY PRECAUTIONS STIPULATED UNDER

3. THE

OHSAS 18001 – 2007. 4. THE
BUILDING IS SPANNED OVER A LARGE WIDTH OF INTERMEDIATE SUPPORTS .

18.75M. WITHOUT

ANY

5. M-35

GRADE OF CONCRETE WITH DUE ANTI-CORROSIVE PAINTING FOR THE REINFORCEMENT AND CONCRETE SURFACES WAS IMPLEMENTED FOR THE STRUCTURE FOR CORROSION RESISTANCE AND CORROSION MONITORING SENSORS WERE EMBEDDED AT REQUIRED POINTS .

6. A 10T. CAPACITY ELECTRICALLY OPERATED EVE ’S LEVEL FOR THE MAJOR LENGTH OF THE

CRANE WAS TO BE INSTALLED AT BUILDING WITH IMPLEMENTATION OF ADEQUATE SAFETY GUIDELINE DURING CONSTRUCTION AND FOR POST-CONSTRUCTION FOR OPERATIONAL AND MAINTENANCE .

7. UPVC

FRAMED WINDOWS AND FRP LOUVERS WERE TO BE INSTALLED FOR OPENINGS TO HAVE THE PROTECTION FROM CHLORINE FUME, IMPERFECT STORAGE SYSTEM, IMPROPER HANDLING , ABSENCE OF BAR BENDING SCHEDULE/ SHOP DRAWINGS , IMPROPER CHECKING OF QUANTITIES WHILE DELIVERY FROM THE SUPPLIER CAN BE REDUCED BY HAVING A REGULAR SYSTEM OF WASTAGE ACCOUNTING AND TO ADVISE MEASURES FOR REDUCING IT BY ELIMINATING THE CAUSES . OCCASIONAL SURPRISE CHECKS SHOULD BE CARRIED OUT FOR ENSURING THE PROPER USE OF MATERIAL AND FOR CHECKING THE WASTAGE LIMIT.

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LABOUR WELFARE
THE CONTRACTOR SHALL OBTAIN A VALID LICENSE UNDER THE CONTRACT LABOUR (REGULATION AND ABOLITION) ACT, L970 AND THE CONTRACT LABOUR (REGULATION AND ABOLITION) CENTRAL RULES, 1971 BEFORE THE COMMENCEMENT OF THE WORK. NO LABOUR BELOW THE AGE OF EIGHTEEN YEARS SHALL BE EMPLOYED ON THE WORK. T HE CONTRACTOR SHALL PAY TO LABOUR EMPLOYED WAGES AS DEFINED IN THE CONTRACTOR 'S LABOUR REGULATION OR AS PER PROVISIONS OF THE ABOVE MENTIONED ACTS . THE CONTRACTOR SHALL COMPLY WITH THE PROVISIONS OF THE P AYMENT OF W AGES ACT, 1936, M INIMUM W AGES ACT, 1948, EMPLOYEE 'S LIABILITY ACT, 1938, AND WORKMEN 'S COMPENSATION ACT, 1961. THE CONTRACTOR SHALL PROVIDE HIS OWN COST WITH A SUFFICIENT NUMBER OF HUTS INSIDE THE SITE, ADEQUATE WATER SUPPLY FOR THE USE OF LABOURERS , SUFFICIENT ARRANGEMENTS FOR DRAINING AWAY SILAGE WATER SO AS TO KEEP THE CAMP NEAT AND TIDY, SUFFICIENT LIGHTING ARRANGEMENT , PROPER
ARRANGEMENTS FOR CONSERVANCY AND SANITATION IN THE LABOUR CAMPS ACCORDING TO THE RULES OF THE LOCAL P UBLIC HEALTH AND MEDICAL AUTHORITIES.

MAINTENANCE OF CONSTRUCTION EQUIPMENT
EFFECTIVE
OPERATION AND MAINTENANCE OF CONSTRUCTION EQUIPMENT IS VERY IMPORTANT FOR THE CONTRACTOR . IT IS DUTY OF THE CONTRACTOR TO CHECK THE MAINTENANCE COSTS OF THE VARIOUS EQUIPMENTS , FINDING WAYS TO CHECK THESE COSTS , PROVIDING ADEQUATE WORK SHEDS TO STORE THESE EQUIPMENTS , TOOLS AND ACCESSORIES , PROPER OILING OF ALL THE MACHINERY ETC . SO THAT THE MAINTENANCE COST AND HENCE THE OPERATING COSTS COULD BE REDUCED .

FILES AND RECORDS
CONSTRUCTION
RECORDS

•DAILY PROGRESS REPORT •TELEPHONE CALLS RECORDING •RECORDS OF TESTS OF MATERIALS •DAILY DIARY OR LOG CONSTRUCTION SITE OFFICE FILES •COPIES OF ALL CORRESPONDENCE •J OB DRAWINGS •SHOP DRAWING SUBMITTALS •COPIES OF ALL APPROVED REQUISITIONS FOR PAYMENT •COPIES OF REPORTS OF ALL TYPES •RECORD OF ALL APPROVED SAMPLES •FILES OF ALL OPERATING TESTS •DEVIATION REQUESTS CONSTRUCTION PROGRESS RECORD •DAILY PROGRESS RECORD •FIELD DIARY OR LOG •SPECIAL FEEDBACK R EPORTS •REPORT OF FIELD CORRECTION 5

•CONCRETE BATCH P LANT DAILY REPORTS •PLANT INSPECTION REPORTS •FIELD INSPECTION REPORT •DOCUMENTATION OF SAFETY HAZARD WARNINGS •M ISC. RECORDS •RECORDING THE PROCEEDINGS OF J OB CONFERENCES •CONSTRUCTION PHOTOGRAPHS

TYPE OF CONTRACT
THE
ABOVE-SAID CONTRACT IS ITEM RATE CONTRACT IN THIS CONTRACT , PAYMENT FOR WORK DONE IS MADE ON THE BASIS OF THE QUANTITIES OF WORK ACTUALLY EXECUTED AND MEASURED , MATERIALS SUPPLIED AND USED BY THE CONTRACTOR ON THE PROJECT, EACH SUCH QUANTITY BEING MULTIPLIED BY THE CONTRACTOR 'S CORRESPONDING UNIT RATE GIVEN HIS TENDER FOR THAT UNIT. THE MODE OF MEASUREMENT SHALL BE AS SPECIFIED IN THE SPECIFICATIONS AT THE MATERIALS . HOWEVER FOR ITEMS FOR WHICH NO MODE OF MEASUREMENT GIVEN FOR ANY ITEM, SAME SHALL BE TAKEN AS IS-1200. FOR A CONTRACTOR TO SUBMIT AN ITEM RATE TENDER , IT WILL BE NECESSARY TO PROVIDE HIM GENERAL SPECIFICATION DESIGNS AND DRAWINGS TOGETHER WITH ESTIMATES OF QUANTITY .

RESPONSIBILITIES OF THE CONTRACT MANAGER
RESPONSIBILITIES OF THE CONTRACT MANAGER INCLUDE: • UNDERSTANDING THE CONTRACT, INCLUDING THE SPECIFIC
CONTRACT OBLIGATIONS AND PERFORMANCE INDICATORS BY WHICH PERFORMANCE WILL BE MONITORED . • ASSESSING THE RISKS RELATED TO THE PROJECT BEFORE CONTRACTING FOR SERVICES TO DETERMINE THE EXTENT OF MONITORING APPROPRIATE TO THE CONTRACT. • ENSURING THE CONTRACTOR HAS A CLEAR UNDERSTANDING OF HOW THE CONTRACT WILL BE MANAGED AND MONITORED . • PROVIDING THE CONTRACTOR WITH GUIDANCE AND TECHNICAL ASSISTANCE , AS NEEDED, TO PROMOTE EFFECTIVE CONTRACT PERFORMANCE . • IDENTIFYING THE EXTENT AND SOURCE OF OTHER PUBLIC FUNDING , IF ANY, THE CONTRACTOR IS USING TO FUND SERVICES PROVIDED UNDER THE CONTRACT. • MONITORING THE CONTRACTOR ’S ACTIVITIES THROUGH A VARIETY OF MEANS TO ENSURE QUALITY SERVICE DELIVERY . • ENSURE FUNDING IS USED ONLY FOR AUTHORIZED PURPOSES. • RESOLVING ISSUES OR PROBLEMS THAT ARISE DURING THE CONTRACT. • IDENTIFYING AND REDUCING FISCAL OR PROGRAM RISKS , THUS PROTECTING PUBLIC FUNDS. • MEASURING AND TRACKING AGENCY SATISFACTION WITH CONTRACTOR PERFORMANCE . • REVIEWING INVOICES AND VERIFYING THAT DELIVERY OF SERVICES IS RENDERED.

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• NOTIFYING

MANAGEMENT AND THE O FFICE OF THE A TTORNEY G ENERAL IF SERIOUS PROBLEMS ARISE. • COMPLYING WITH FEDERAL AND STATE RULES AND REGULATIONS PERTAINING TO CONTRACT MANAGEMENT. • COLLABORATING WITH OTHER STATE AGENCIES USING THE SAME CONTRACTOR TO ENSURE THERE IS NO OVERLAP IN SERVICES BEING PROVIDED OR INVOICED FOR .

ORGANISATION

CHART FROM THE EMPLOYER (DEPARTMENT )

CHIEF EXECUTIVE

PROJECT ENGINEER

HEAD OF CIVIL ENGINEERING DIVISION

SITE ENGINEER

SUPERVISOR

SUPERVISOR

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THE CHIEF EXECUTIVE:
GIVES THE DIRECTIVE AND IS PROJECT FOR ALL THE ISSUES
THE FINAL AUTHORITY FOR APPROVALS FOR THE RELATED TO TECHNICAL AND FINANCIAL MATTERS . HE ALSO HAS THE POWER TO SANCTION THE FINANCIAL APPROVAL FOR THE RESOLVED DISCREPANCIES , ETC . WHICH IS AMOUNTING TO THE EXCESS COST OF THE PROJECT THAN THE ESTIMATED COST.

HEAD

OF

CIVIL ENGINEERING DIVISION:

THE HEAD

OF C IVIL E NGINEERING D IVISION DIRECTS THE P ROJECT ENGINEER TO INITIATE THE P ROJECT. THE HEAD (CED) RELEASES THE APPROVAL LETTERS TO THE CONTRACTOR AND PROJECT ENGINEER TO COMMENCE THE WORK. HE IS THE FINAL AUTHORITY TO APPROVE AND SIGN ON THE MEASUREMENTS FOR FINAL BILLS , ETC . SUBSEQUENT TO THE VERIFICATION OF THE P ROJECT ENGINEER . HE HAS THE POWER TO RESOLVE ANY INTERIM DISCREPANCIES DURING THE PROGRESS OF THE WORK.

PROJECT ENGINEER:
PROJECT ENGINEER IS THE MAIN COORDINATOR FOR THE PROJECT BETWEEN THE EMPLOYER AND THE CONTRACTOR . HE IS THE PERSON WHO DOES THE PLANNING OF SCHEDULE OF WORK P ROGRESS AND MONITORS THE PERIODICAL PROGRESS OF THE WORK. HE IS INVOLVED IN ALL THE TECHNICAL/ REVIEW MEETINGS WITH THE CONTRACTOR DURING THE EXECUTION OF THE PROJECT. CONTRACTOR SHOULD ADDRESS ANY DISCREPANCY ARISES DURING THE EXECUTION OF THE P ROJECT TO THE PROJECT ENGINEER ONLY WITH DUE COORDINATION OF THE S ITE ENGINEER FROM THE D EPARTMENT.

SITE ENGINEER:
SITE ENGINEER
IS THE PERSON DEPUTED ON THE SITE FOR CLOSE MONITORING OF THE PROGRESS OF THE PROJECT. H E COMMUNICATES ALL THE TECHNICAL INFORMATION TO THE REPRESENTATIVES OF THE CONTRACTOR WORKING DIRECTLY ON SITE. HE RECEIVES INSTRUCTIONS FROM THE P ROJECT ENGINEER AND EXECUTES THE PROJECT UNDER HIS GUIDANCE WITH THE HELP OF SUPERVISORS ASSISTING HIM. HE IS RESPONSIBLE FOR TIMELY RECORDING OF THE MEASUREMENTS OF THE WORKS AND CALCULATING THE QUANTITIES OF ITEMS FOR RUNNING BILLS AND FINAL BILLS . HE COORDINATES WITH ALL CONCERNED DIVISIONS OF THE DEPARTMENT LIKE SAFETY, UTILITIES, ETC. FOR OBTAINING THE PERMITS AND THE SMOOTH COORDINATION OF THE S ITE EXECUTION OF THE P ROJECT. H E IS THE PERSON RESPONSIBLE FOR THE FOLLOW UP WITH CONTRACTOR FOR DAILY PROGRESS OF THE WORK.

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SUPERVISOR:
SUPERVISOR
IS THE PERSON MONITORS EVERY ACTIVITY OF THE SITE VERY CLOSELY AND HELPS S ITE ENGINEER IN MONITORING THE QUALITY OF CONSTRUCTION . H E HELPS THE S ITE ENGINEER IN CHECKING THE TECHNICAL ASPECTS OF THE CONSTRUCTION, TAKING THE MEASUREMENTS OF THE ITEMS AFTER THE COMPLETION OF THE WORK, ETC . H E HAS TO KEEP THE FIRST HAND INFORMATION OF ALL THE ACTIVITIES THAT ARE TAKING PLACE IN THE SITE AND KEEP A CLOSE WATCH ON THE CONSTRUCTION LABOUR EMPLOYED BY THE C ONTRACTOR FOR THE IMPLEMENTATION OF THE S AFETY G UIDE LINES, Q UALITY NORMS, ETC . S UPERVISOR RECEIVES THE INSTRUCTIONS FROM THE S ITE ENGINEER AND IMPLEMENTS THE SAME IN THE SITE EXECUTION THROUGH THE CONSTRUCTION LABOUR . HE CONTROLS THE CONSTRUCTION LABOUR AND CHECKS THE PROGRESS OF THE WORK DIRECTLY AND MAKES NOTE OF THE DAILY PROGRESS AND DEVIATIONS AND BRINGS TO THE NOTICE OF S ITE ENGINEER . HE HELPS THE S ITE ENGINEER IN RECORDING THE MEASUREMENTS FOR THE PREPARATION OF THE BILLS OF QUANTITIES . HE WORKS AS A COMMUNICATOR BETWEEN THE S ITE ENGINEER AND THE LABOUR

CHAIRMAN:
THE CHAIRMAN
OF THE COMPANY IS THE P ROPRIETOR AND RESERVES ALL THE FINAL RIGHTS OF THE ACTIVITIES OF THE COMPANY . HE IS THE DECISION MAKING AUTHORITY IN PARTICIPATION FOR THE TENDERS AND QUOTING THE RATES FOR THE CONCERNED WORKS. H E DOES MAKE THE POLICY DECISION IN A BROADER PERSPECTIVE FOR THE ACTIVITIES AND THE GROWTH OF THE COMPANY .

PROJECT ENGINEER:
PROJECT ENGINEER IS THE KEY COORDINATOR BETWEEN THE C LIENT AND THE MANAGEMENT OF THE COMPANY . HE COORDINATES REGULARLY WITH THE PROJECT ENGINEER FROM THE DEPARTMENT (EMPLOYER / CLIENT) FOR ALL THE ACTIVITIES PERTAINING TO THE PROGRESS OF THE P ROJECT. HE IS THE PERSON WHO COMMUNICATES ALL THE MATTERS TO THE CLIENT ON BEHALF OF THE CONTRACTOR THROUGH THEIR P ROJECT E NGINEER . H E IS THE SOLE RESPONSIBLE PERSON FOR THE PROGRESS AND QUALITY OF CONSTRUCTION OF THE P ROJECT. HE HAS TO MAKE PERIODICAL SCHEDULES AND PLAN FOR THE RESOURCES LIKE MATERIAL AND MAN POWER .

SAFETY ENGINEER:
SAFETY ENGINEER
IS RESPONSIBLE FOR THE SAFE PROGRESS OF THE CONSTRUCTION AS PER THE GUIDELINES OF OHSAS 18001. HE HAS TO MONITOR DAY TO DAY ACTIVITIES TO GO IN COMPLIANCE WITH SAFETY NORMS . HE HAS TO EDUCATE THE CONSTRUCTION LABOUR AND ALL OTHERS CONCERNED IN THIS ASPECT AND SHOULD EXERCISE THE PRECAUTIONARY MEASURES TO AVOID THE ACCIDENTS . HE SHOULD MONITOR THE USAGE OF “P ERSONAL P ROTECTIVE EQUIPMENT ” BY THE CONSTRUCTION PERSONNEL AND SHOULD MAKE THE FIRST-AID KIT AVAILABLE AT SITE ALL THE TIME. H E SHOULD ALSO MAKE THE ARRANGEMENTS FOR THE EXIT IN CASE OF THE EMERGENCY .

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WARRANTY
THE
SUPPLIER WARRANT THAT ALL MATERIAL AND ALL SERVICES PROVIDED BY THE SUPPLIER SHOULD NEW , FREE FROM DEFECT IN WORKMAN ’S HAND MATERIAL OR DESIGN AND IT PURPOSE FOR WHICH THEY ARE SUPPLIED . T HE SUPPLIER WARRANTY SHALL BE EFFECTIVE FOR 18 MONTH FROM LAST DATE OF RECEIPT OF SUPPLIES OR 12 MONTH FROM THE DATE OF SUCCESSFUL COMMISSIONING . DURING THE WARRANTY PERIOD IF THERE ARE ANY FAILURE , THE SUPPLIER, ON ITS OPTION , REPAIR . M AKE GOOD, REPLACE, OR MODIFY WITH ALL POSSIBLE SPEED WITHOUT ANY ADDITIONAL COST TO COMPANY . IF SUPPLIER DOES NOT COMMENCE THE CORRECTION ACTIVITY AS THE COMPANY MAY, AT ITS OPTION , CORRECT THE DEFECT AT THE S UPPLIER EXPENSES . IN SUCH CASE THE WARRANTY PERIOD WILL EXTENDED TO 12 MONTH FROM THE DATE ON WHICH SUCH REPLACEMENT OR REPAIR IS COMPLETED .

PROJECT MANAGEMENT, CO-ORDINATION, MONITORING AND SUPERVISION
THE
SUPPLIER SHOULD DEPUTE AT THEIR OWN QUALIFIED SUPERVISORS TO SITE TO SUPERVISE THE ERECTION AND CONSTRUCTION WORK AND PUTTING IN TO OPERATION AT SITE. THE SUPPLIER SHOULD PROVIDE SUPERVISORY SERVICES FOR PROJECT MANAGEMENT , INSTALLATION AND COMMISSIONING ALSO BEAR ALL THE COST GAIT THE FACILITIES PROVIDED TO ITS SUPERVISORS . A LL THE WORK SHOULD BE COMPLETE ON OR BEFORE TIME IF ANY SUPERVISOR DEPUTED AT SITE FOR WORK IS TO COMPLETE THE WORK ON TIME OR AT ANY GUILTY OF SERIOUS MISCONDUCT, THE SUPPLIER SHOULD REMOVE OR REPLACE SUCH PERSONS AT SUPPLIER EXPENSE SO AS NOT TO CAUSE ANY INTERRUPTION IN CARRYING OUT THE ERECTION & CONSTRUCTION WORK OR ANY DELAYING SPECIFIED TIME SCHEDULE FOR THE WORK . THE SUPPLIER SHOULD PROVIDE ADEQUATE ON THE JOB TRAINING TO OPERATING AND MAINTENANCE STAFF OF THE COMPANY AT SITE DURING THE ERECTION & COMMISSIONING WITHOUT CHARGING ANY ADDITIONAL COST TO THE COMPANY . LIAISON AND COORDINATION FOR PROCESSING OF ALL STATUTORY CLEARANCES WITH S TATE GOVERNMENT AUTHORITY AT BHUBANESWAR OR AT DISTRICT LEVEL OR WITH THE DAM AUTHORITIES SHALL BE CARRIED BY THE SUPPLIER .

.

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LIQUIDATED DAMAGES (LD) FOR DELAYS AND SHORTFALL IN
PERFORMANCE
IN
THE EVENT OF DELAYING COMPLETION OF SUPPLY AND COMMISSIONING OF THE SUPPLY SYSTEM, BEYOND THE COMPLETION PERIOD AS PER SCHEDULE, THE SUPPLIER SHALL PAY LD @ 0.5% OF THE CONTRACT PRICE PER WEEK OF DELAY SUBJECTED TO A MAXIMUM OF 5% OF THE CONTRACT PRICES FOR BOTH SUPPLY AND ERECTION OR VALUE. THE PAYMENTS OF DEDUCTION OF LIQUIDATED DAMAGES SHALL IN NO WAY RELIEVE THE SUPPLIER FROM COMPLETING THE SUPPLIES AND WORKS AND DISCHARGING ALL ITS OTHER UNDER THE CONTRACT PROVIDED HOWEVER THAT THE ABOVE MENTIONED LIQUIDATED DAMAGES ARE THE SUPPLIER ONLY OBLIGATION TO FINANCIALLY COMPENSATE THE COMPANY IN CASE OF DELAY COMPLETION OF THE FACILITY AND/OR FAILURE TO ACHIEVE THE PERFORMANCE GUARANTEES .

METHOD FOLLOWED FOR ADMINISTER AND MONITOR:
CONTRACTOR
CARRIED OUT THE WORK AS PER THE DRAWINGS , BILLS OF QUANTITIES AND SPECIFICATIONS IN CONSIDERATION OF A PAYMENT TO BE MADE: ENTIRELY ON MEASUREMENTS TAKEN AS THE WORK PROCEEDS , AND AT THE UNIT PRICES TENDERED BY THE CONTRACTOR IN THE BILL OF QUANTITIES . T HE WORK WAS MONITORED BY THE D EPARTMENT THROUGH PERIODICAL BAR -CHARTS AND REVIEW MEETINGS FOR PROGRESS , STOCK CONTROL, MAN-POWER DEPLOYMENT , ETC . BILLS OF QUANTITIES WERE PREPARED , GIVING , AS ACCURATELY AS POSSIBLE , THE QUANTITIES OF EACH ITEM OF WORK TO BE EXECUTED AND THE CONTRACTOR ENTERS THE UNIT RATE AGAINST EACH ITEM OF WORK. THE BASIS OF AGREEMENT IS THUS THE UNIT RATE OF EACH ITEM, CERTAIN REASONABLE VARIATIONS IN THE QUANTITIES BEING ACCEPTED BY BOTH PARTIES . T HE P ROJECT ENGINEER OF THE CONTRACTOR WAS PREPARING THE BILLS PERIODICALLY AND SUBMITTING THE SAME TO THE P ROJECT ENGINEER OF THE DEPARTMENT. THE S ITE ENGINEER (DEPARTMENT) EITHER ACCOMPANIED THE S ITE ENGINEER (CONTRACTOR ) WHILE THE MEASUREMENTS WERE BEING TAKEN OR CHECKED THE MEASUREMENTS AND QUANTITIES AFTERWARDS IN CONSULTATION WITH THE P ROJECT ENGINEER (DEPARTMENT ). IF NO DISCREPANCY FOUND, THE BILLS WERE RECOMMENDED BY THE P ROJECT ENGINEER (DEPT.) FOR THE PAYMENT. T HE AMOUNT RECOMMENDED BY THE P ROJECT ENGINEER (D EPT.) WAS THE COST OF THE WORK LESS THE RETENTION MONEY AND THE COST OF MATERIALS SUPPLIED TO THE CONTRACTOR FROM THE DEPARTMENT IF ANY . IF ANY WAS NOT INCLUDED IN THE BILL OF QUANTITIES , OCCURS DURING THE EXECUTION , IT WAS USUALLY CONSTRUCTED BY A COMBINATION OF OTHER ITEMS ALREADY IN THE BILL, OTHERWISE IT WAS PAID FOR AS AN “E XTRA ITEM” AT ESPECIALLY ANALYZED RATE.

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RECOMMENDATIONS/ CONCLUSION:
1. THE
ALLOTTED TIME FOR THE PROJECT IS INADEQUATE DUE TO ITS LOCATION AND WORKING ENVIRONMENT SURROUNDING THE SITE. THIS HAS RESULTED IN TAKING THE SUBSEQUENT APPROVALS OF PERIODICAL EXTENSIONS OF TIME. THIS HAS CAUSED SOME INCONVENIENCE AT TIMES DURING THE PROGRESS OF THE WORK. THIS EMBARRASSMENT COULD BE AVOIDED IF THE TIME PERIOD COULD BE ASSESSED REASONABLY .

2. THERE

WAS A CONSIDERABLE DELAY IN HANDING OVER THE SITE TO CONTRACTOR DUE TO THE DELAY IN OBTAINING THE S AFETY-C LEARANCE FROM THE S AFETY ENGINEERING DIVISION OF THE DEPARTMENT. THIS COULD HAVE BEEN PLANNED WELL IN ADVANCE AND AVOIDED THE DELAY .

3. THE

SCOPE OF THE PROJECT WAS ENHANCED DURING THE EXECUTION AMOUNTING TO EXTRA EXPENDITURE AND TIME-DURATION OF THE PROJECT WHICH COULD HAVE BEEN FORESEEN MUCH IN ADVANCE BY THE USERS .

4. SPECIFICATIONS OF CERTAIN ITEMS WERE CHANGED, FOR EXAMPLE THE ASBESTOS ROOFING SHEETS , PVC WINDOWS WERE SUBSTITUTED BY THE ALTERNATIVE
MATERIALS DURING THE PROGRESS OF THE WORK WHICH COULD NOT BE ENVISAGED DURING THE PREPARATION OF THE TENDER D OCUMENTS . THIS RESULTED IN WORKING OUT “E XTRA ITEMS” AND EXTRA DURATION OF TIME FOR THE PROJECT

THUS,

WE CAN SEE THAT HOW IMPORTANT IS A CONTRACT AND CONTRACT MANAGEMENT TO CARRY OUT A PROJECT TO THE SATISFACTION OF ALL THE PARTIES . CONTRACT DEFINES ME DUTIES OF CONTRACTOR , IT PROVIDES GUIDELINES TO PROCEED FOR THE WORK, AND ALSO PROVIDE A SYSTEM OF CONTROL AND MANAGEMENT SO THAT THE PROJECT IS COMPLETED IN TIME. INSTRUCTION FROM THE CONCERN PARTIES , FEEDBACK REPORTS FROM THE CONTRACTOR HELP IN ESTABLISHING A PROPER COMMUNICATION NETWORK THAT ULTIMATELY HELPS IN TIMELY COMPLETION OF THE PROJECT. AND THIS SYSTEM IS ACHIEVING RESULT IN THE FARM HOUSE PROJECT AS A PROPER OVERALL CONTROL AND MANAGEMENT IS POSSIBLE BECAUSE OF THE CONTRACT MANAGEMENT.

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BIBLIOGRAPHY
NICMAR PUBLICATION MANAGEMENT
LESSON BOOKS

ON CONSTRUCTION CONTRACT

CONTRACT MANAGEMENT PUBLICATION

IN

C IVIL WORKS P ROJECTS – BY V. A. PRAKASH , NICMAR

FIDIC

RULES AND REGULATION FOR CONTRACT MANAGEMENT

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