BOOKS AND REFERENCES:

1. Ar.V.S.Apte, Architectural practice and procedure, Padmaja Bhide, Pune 2008.

2. Architects Act 1972.
3. Dr.B.C.Punmiya and K.K.Khandelwal – project planning and control with PERT / CPM,
Laxmi publications, New Delhi, 1987.
4. Arbitration Act.
5. WTO and GATT guidelines.
6. Publications of Handbook on Professional Practice by IIA.
7. Publications of Council of Architecture – Architects (Professional conduct) Regulations
1989, Architectural competition guidelines.
8. Roshan Namavati, Professional Practice, Lakhani Book Depot, Mumbai 1984.
9. Notes

TENDER FOR CONSTRUCTION

What is Tender?
Tender means an offer to carry out work, that is pre-described or to supply or
purchase goods of prefixed specifications at a price to be quoted the tenderer.

Essential qualities of a good tender:

1. Tender should be based upon definite and detailed information. The items of work
described in bill of quantities included in the tender should be very clear and specific.
2. Drawing shall be supplied wherever details are involved. Wherever description is
difficult, drawing should be given to complement description.
3. All factory made products should be specified as far as possible with their trade name
(close specifications). You may attach a list of approved makes or manufacturers to
the tender document.
4. Avoid as far as possible the use of phrase “As approved by architect”, Instead spell out
more in details your requirements and if needed, supplement the statement by a
drawing.
5. Basic price of material shall be mentioned in the tender.
6. The basic concept of tendering is a competition on equal base. Therefore, it is
essential that information given may be in the form of specifications, conditions of
work, abstracts, quantities or drawings shall be same information to all the
contractors who shall offer tenders.

Components of a tender: A checklist.

1. Instructions to contractor
1.1 Type of tender (Item rate tender or lumps um tender).
1.2 Location and brief description of work and name of owner. (Name of work, site
address and owner’s name)
1.3 Price of Blank tender form.
1.4 Amount of Earnest Money Deposit (E.M.D) to be paid to whom and how.
1.5 Time and place of submitting filled in tender.
 1.6 Note: Owner reserves right to reject any or all tenders without giving reasons. (This
note is important and shall not be forgotten.)
2. General conditions and preliminaries: Prepared by the architect’s office. In this, you
should not forget to refer standard specifications, such as ISI or P.W.D. This should also
include a list of Basic Rates of major building materials and a list of approved
manufactures of materials.
3. LETTER OF OFFER: From contractor of Architect. This letter is prescribed by architect’s
office. (a specimen letter given in Appendix 14.I)
4. Copy of Articles of Agreement and General Conditions of contract. (Printed papers
available with I.I.A)
5. Bill of Quantities (Contract Bill) only in case of an item rate tender.
6. Drawings (Contract Drawings) giving location, overall size, types of building construction
etc. for an item rate tender. OR In case of lump sum tender, a complete set of working
drawings including R.C.C. schedule or structural steel details etc.

Types of Client:
1. Private or an individual owner.
2. Semi-public organizations
3. Public Bodies such as Government Departments.

Different methods of calling tenders:

1. Invited Tender
A list of five or six contractors should be made by the architect in consultation with the
owner. Om behalf of the owner, the architect should write letters to the contractors inviting
them to tender for the work.
A letter of invitation to a contractor shall cover the following points.
(i) Name of the owner.
(ii) Address of the site of proposed work and type of building.
(iii) Estimated cost of work.
(iv) Probable date of commencement of work on site.
(v) Price of blank tender form and
(vi) Date, time and place where from the tender copy would be available.
Each of the points has relevance in business. When you invite a contractor for tendering, he
has a choice to accept or to refuse the invitation. For that he should know-
i) Who is the owner, he may have earlier experience, either good or bad with the
person. Contractor’s decision to accept or to reject the invitation may depend on this
ii) Each contractor has his area of operation in his mind. This depends on the size of his
organization and his willingness to go far and the estimate of projects as well.
iii) The estimate of work is also relevant.
iv) The probable date of commencing work is relevant to know.

2. Public Tender
In case of projects owned by the semi public or the public bodies, in the procedure to
be adopted, there should be no room for favoritism or a partiality. The competition should be
open to all. Hence, a notice shall be published in a newspaper calling the contractors to fill in
tender for a project. In such a notice, the following information shall be given:
1. Name of the client (Owner of the project)
2. Address of the proposed work site and name of the project.
3. Estimated cost of project.
4. Earnest money deposit.
5. Cost of blank tender form.
6. Time and place of issuing blank tender forms.
7. Time and place of submitting filled in tenders.

The biggest disadvantage in a public tender notice is that one does not know the
abilities of contractors offering themselves to work for the project. To get the work, one may
quote low rates. But often such a contractor is unable to carry out the work and to produce
work of good standard. Realizing that he is not making enough profits or he is loosing on the
job, the contractor looses an item even at the cost of quality. The contractor will try to raise
claims for variation and extra items, arguing with an architect now and then on small matters.
“The owner reserves the right to accept pr to reject any or All the Tenders without giving any
Reasons”.

3. Pre-registration of contractors:
In this method, a notice is published in newspaper inviting the contractors to submit
the information of their construction company. In the notice, it is necessary to publish i)
Name of the owner and his address, ii) Name of the project and its estimated cost, iii) Address
of construction site and iv) Probable date of starting construction. Reading this information,
the contractor should decide whether he is interested in the work or not.
Further in the notice, the contractors are requested to submit the information on the
following points:-
1. Name of the company and its Registered Address, names of partners/ Directors.
2. List of similar projects (similar to the project for which this advertisement is given) or
list projects carried out during last three or five years, with their cost, name of the
architect, name of the owner, etc.
3. List of the construction equipments possessed by the company and technically
qualified persons employed with the company.
4. Income tax clearance certificate.
5. Solvency certificate from bankers.

On receiving the applications on the date given in the advertisement, scrutiny is made
and a short list of five or seven contractors that is drawn out. A care should be taken while
selecting the contractors that they are of more or less of equal standing from the point of
view experience, establishment, financial strength etc. and each one of them should be
acceptable to the owner.

Papers that are included in a Tender document.

1. Letter of Offer:
This letter is drafted by the architect’s office. The contractor is supposed to read it
carefully and sign it as a mark of total agreement to it. The contractor shall make no change
in the text of the letter. This letter of offer is an important commitment by the contractor. A
specimen letter is given in Appendix. Please read it carefully and understand its significance,
point by point. There are FIVE clauses in the letter.
(i) In the 1st clause, a reference is made to the tender notice or a letter of invitation as
per the case. This reference has a legal significance.
(ii) In second clause, the contractor commits that he has studied drawings, specifications,
articles of agreement and conditions of contract. All these shall be included in the
tender document by the architect’s office, so that the contractor can carefully read
them, before giving the tender offer. Drawings and specifications are prepared in the
architect’s office for each work. “Article of Agreement and Conditions” is a standard
document used on every job. It is prepared by the Indian Institute of architects. We
shall study this document in the following chapter. My remark for you is that, it is a
very important and useful document, which you shall study carefully.
(iii) In this clause, the contractor commits that he knows the situation at the work site and
he is ready to work at the rates given by him, under the present site conditions.
(iv) These are the clauses, regarding E.M.D. It says that the deposit is without interest. It
also gives period of deposit and further states authority to the architect to forfeit
E.M.D. under certain conditions.

2. General Conditions and Special Requirements of the Work:

These general conditions are usually standardized in every office, as they are
applicable to almost all the works. In addition, there could be some special requirement of a
job. Such few conditions are added as special requirements of that job. For example,
municipal tap water is available on all the sites in a city. But if a particular site has only well
water supply or some other source, you shall write the conditions pertaining to that and add
to the general conditions.

3. Specifications of Work and Materials

This also, you should standardize in your office so that it can be added to the tender
document. We have discussed this in the previous chapter on specifications. In addition on a
particular job, you may have an unusual item of work, such as exposed brick finish, from the
finish concrete or the application of a material in an uncommon way or a new material in
building. You should add the specification of such special items carefully to the text of the
tender.

4. Bill of Quantities
This is an important core paper of a tender. Your quantity surveyor should work out
correct quantities of all the items of work. I shall like to draw your attention here, that, to
write an abstract of an item is an important matter. If you forget a word or a clause in the
abstract, which in fact is required to complete that particular item, it becomes an extra claim
or variation. The contractor can demand more money. So be careful! The client has to more
for your inefficiency, which is not creditable to you.
5. Drawings
Drawings shall be added to the tender to give sufficiently a clear idea about the
proposed building. The drawing shall explain the type and the extent of construction, i.e.
overall dimensions and number of floors, height of floors etc. It is not necessary to supply
R.C.C. detail drawings at this stage if in the Bill of Quantities item of reinforcement steel and
concrete are separate. In the case of a structural steel work, the detailed fabrication drawings
are not required to be given at this stage, if item of fabrication work is to be quoted on unit
weight of structural steel. But details of items in the form of drawings should be given at this
stage only which cannot be fully visualized only with description, such as decorative grilles
etc.

6. Articles of Agreement & general Conditions of Contract

A reference to this document is made in the ‘Letter of Offer’ explained to you earlier
in this chapter. A copy of this shall be added in the blank Tender Form, particularly when it is
a public tender. This is a printed document available with the Indian Institute of Architects.
We shall study more in detail about it in the following chapter.

Procedure of calling tender:

Tender document shall be prepared by the architect’s office. All the copies prepared
shall be serially numbered on the cover page. Copies of tender are sold to the contractors
from the architect’s office. The contractor goes through the tender papers and taking into
consideration the specification and condition etc. given in the tender, fills in the rates of every
item of work against the abstracts in the bill of quantities. Multiplying by the unit rates to the
quantity cost of each item is arrived at. The sum, total of cost of all items will give the amount
of quotation of the tender.
There could be two or three schedules in a Tender. Such as civil work, plumping work,
site development etc. All these added together will give the final amount of tender offer.
Filled in the tender is then put into an envelope and the envelope is sealed. This sealed
envelope along with the Earnest money deposit Amount in the form of a Cheque or a demand
Draft as per the instructions in the tender document is to be submitted on or before the time
and the date given in the tender. These conditions are usually given on the cover page of the
tender.

Earnest Money Deposit:

A contractor along with his tender quotation pays a certain amount as a deposit to
show that the contractor is earnest and sincere about this business with the owner. Further it
means, that when called upon to complete the business, he should not shirk or avoid. we
define earnest money deposit as under.

A note on Earnest Money Deposit:

The amount of deposit asked along with the filled in tender or a rate quotation is
called an earnest money deposit. This amount shall be placed with the office of the architect,
without any interest payable on it. The deposit amount shall not be held for more than a
month from the date of a receipt of the tender. The deposit shall be refunded in full to the
unsuccessful contractors; no sooner the decision is made on the tenders received.
 In case of successful contractor to whom the work is awarded, this earnest money
deposit becomes a part of security deposit and continues to be with the architect’s office till
the virtual completion of the work.
On virtual completion of the work, the contractor shall apply to the architect’s office
for the refund of the amount. This amount is refunded in full by the architect’s office directly
to the contractor and intimation in writing is given to the owner.
In case of the contractor who is unable to commence the work when called upon to do
so, this amount of E.M.D. is forfeited and is credited to the owner as a part of compensation
for the hardship the owner has suffered.

How Much Time should be given to the Contractors to fill in the tenders?
Time and date for submission of filled in tenders shall be one and the same to all the
contractors. A sufficient time shall be allotted to the contractors to fill in the rates. The
contractor has to visit the site to study the site conditions under which he has to work. If the
site is at a distance he has to make enquires for the availability of material and labour nearby.
He has to discuss the rates with his sub-contractors and other agencies before he could arrive
at the item rate.

Instruction on the Cover Page

On the cover page of the tender document, instructions shall be printed regarding – 1)
the time, date and place where the filled in tender shall be submitted. 2)How much shall be
the Earnest Money Deposit Amount to be submitted along with the tender and in what form,
that is by a cheque or a demand draft and payable to whom the architect or the owner.

Receiving of Filled in Tenders

As a good practice, the filled in tenders should be received in the office of the
architect. In case of the institutional clients, as a matter of convenience, the filled in tenders
may as well be received in the office of the client. But in either case, the decision shall be
made well in advance, and accordingly, the instructions regarding the submission of tenders
shall be printed in the tender notice and on the cover page of the tender form.

Opening of Tenders
The time and the place of opening of the tenders shall be informed to the contractors
while receiving the tenders. The contractors or their representatives may as well remain
present at the time of opening of the tenders. The architect SHALL NOT OPEN the tenders in
the absence of the owner.

Scrutiny of Tenders
A detailed scrutiny of all the tenders received is done by the architect’s office and a
scrutiny report is submitted to the owner recommending a contractor for the work. In case of
public tender, we have experienced as many as twenty-three tenders received for a project. It
becomes a time taking task to scrutinize so many tenders. You should be methodical in your
work.
(i) Check whether the E.M.D. amount is submitted as per the conditions of tender. If NOT
submitted, then the tender offer should be rejected forth with. If the deposit amount
is asked by cheque then the cheques shall be deposited in the bank immediately. If the
E.M.D. cheque is dishonored by the bank for any reason, such a contractor shall NOT
be considered for the work. Furthermore, such a contractor shall not be considered
 for any work in future or should not be recommended to others. A specimen letter is
given in the Appendix. (13J).
(ii) Covering letter
a. Read carefully covering letter and other enclosures, if any. Often contractors in case of
Public Tender are tempted to enclose business profile of their contracting company,
particularly when the contracting company, particularly when the contracting
company is stranger to owner/architect. It is worthwhile contracting owners or
architects to crosscheck the information given in such a profile.
b. The covering letter should have no conditions suggested in it, which will affect the
work or the cost of work. Usually, these conditions or rebates are linked with the
supply of building material or water for construction and supply of electricity for work
by the owner on the site. Often contractors ask for advance against building material
brought on the site. As a good practice, conditions regarding all these points should be
mentioned very clearly by the architect himself in the text of the tender document.
(iii) The next step in scrutiny of tenders is to check the calculations in the schedule of
rates. These days, all the calculations are made by the calculators and therefore, there
are hardly any mistakes in multiplication or totals. Even then, it will be proper for the
architect’s office to go through carefully through all the pages of the schedule of rates,
which is also referred as contract bill. If arithmetical mistakes are noted, these should
be corrected and the corrected total should be taken for the consideration for the
choice of contract.

After when the tenders are opened, in any case contractor shall not be allowed to
enter the missing item-rate. If selected for the work, the contractor shall carry out that
particular item free of cost.
(iv) Rebate:
After arriving at the Total of Schedule of rates, sometimes a contractor offers a rebate
at certain percent of the total amount by writing a note to that effect. If the rebate is
offered without any condition, it should be considered and the total should be
reduced accordingly. If there be any condition attached to the rebate, then such a
rebate is unacceptable.
(v) Comparative statement:
Having completed arithmetical check, correcting totals and applying rebate etc., a
statement should be written, name of contractor and the corrected total of tender
offer against the name in an ascending order of the tender offers, starting with the
lowest offer in first place and the highest offer to the last place.

Scrutiny report of tenders

After a careful scrutiny of the tenders received, the next job for an architect is to
recommend a suitable contractor to the owner for the work. This is called a ‘Scrutiny Report’.
Please bear in mind her, your role, as an architect is that of an advisor. You should be true to
your conscious and recommend a contractor keeping the interest of the project uppermost in
your mind. You should be impractical and your advice should not be influenced by any one
from amongst the contractors or owners. Having given a sincere advice, the owner, May he
be an individual or an institution, may accept your advice totally or may think otherwise, you
should not be disturbed. This is what is said “Disinterested Service” to be given by an
architect. Your role or duty is to get the best possible work done from the contractor chosen
and selected by the owner.
But remember, when an architect is knowledgeable and upright, a well-intentioned
owner will always go by the advice of an architect.

On writing a scrutiny report

The architect shall give a report in writing to the client, on the scrutiny of the tenders
received for the project. In his report, the architect should be logical in his statements. He
should give step-by-step reasoning, for NOT considering offers of contractors that are NOT
suitable. If the architect’s office has worked out an estimate of cost of construction of the
project, using the same BILL OF Quantities, then the tender quotations nearby the Estimate
shall be given detailed consideration for selection.
The architect’s scrutiny report shall be submitted to the client’s office in an enclosed
envelope. The envelope shall be opened by the Secretary or Chairman of the Committee only.
The scrutiny report is a confidential document. It is expected to be discussed only in a
committee meeting. Members of the committee, in good faith, are not supposed to make
known the architect’s remarks about the contractors to anyone outside the committee.
After receiving the owner’s instructions regarding the choice of a contractor for the
work, the Architect has to proceed further:-
1. During the process of selection of a contractor for the work, if certain points have
come up, which need clarification from the contractor who is to be selected or his
definite willingness to accept work etc. is required before he could be finally select for
the work; a letter is written to the contractor by the architect, which is called a LETTER
OF INTENT. In this letter, the architect on behalf of the owner informs the contractor
the intention of the owner to give the work to him provided he is willing to do or
accept in writing the verbal assurances that he might have given during the process of
selection. The contractor is asked in the same letter to inform his acceptance by
return post. On receiving an affirmative reply in writing from the contractor, the
architect issues a WORK ORDER on behalf of the owner to the contractor.
2. It is not always necessary to issue a letter of intent. If there are no additional and
important points that have come up during the process of selection of a contractor, it
is also suitable to issue a WORK ORDER and letter of intent may not be issued. Minor
conditions also can be included in the work order itself. A specimen of ‘work order’ is
given in the Appendix.
3. The contractor shall accept the ‘work order’ and inform in writing his acceptance to
the architect immediately by reply post.
4. Only on receipt of the “Letter of Acceptance” from the selected contractor, you may
say the tendering process is complete. Only then the architect’s office shall refund
E.M.D. of the rest of the contractors.
5. A letter to unsuccessful contractors:
 a. This kind of a letter helps create fair impression about your office amongst
contractors.
b. A person presenting ‘your letter to contractor’ helps you identify the contractor’s man
and your office can handover the cheque of refund of E.M.D safely to him.
c. If you have mentioned a time slot in your letter to collect the refund, it is convenient
to all and more particularly to your office staff. Your office clerk should be ready with
the cheque at the appointed time to hand them over, and the contractors need not
bother your office all the time.
6. The process of selection of contractor. i.e. up to issuing and acceptance of work order
shall be complete within one month from the date of submission of tenders.

Work order
A letter issued to a contractor selected for the work, asking him to take up the work, is
called the work order.
1. On the instructions of the owner (Client), this letter is written by the architect, on
behalf of the owner to the contractor.
2. There has to be a reference in this letter to the tender or quotation submitted by the
contractor for the work.
3. The letter may contain a few additional conditions such as the date of commencement
of a work on the site or such conditions arising out of the discussions with the
contractor during the process of selection of a contractor.
4. The work order shall be included in the contract document and therefore conditions
imposed in this letter (Work Order) become a part of the contract.
Letter of Acceptance
On receipt of the work order, the contractor should send a ‘Letter of Acceptance’ of
the work order, immediately to the architect.
With his, the procedure of calling tenders can be said to be complete. Now the
architect’s office may refund the E.M.D of remaining contractors forthwith.

A tender offer becomes ineffective

It is also important for an architect to remember that the tender offer becomes NO
MORE BINDING over the contractor under certain conditions.
1. Time period of the Tender Offer
This period is generally written as ONE MONTH from the date of submission of
tenders. In some special case, it could be more. This may depend upon the magnitude
of the project or technical intricacy involved in it, and also the reasonable time that
may be required to study carefully the tender offer received. There has to be a clear
mention of this time period in the text of the tender. So that the contractor is aware
of this time period before filling in the tender.

If the client is unable to take the decision within this time period, then thereafter, the
contractor is not bound to accept the work order on the same tender offer. The
contractor may come forward by his free will or may refuse or may ask certain
 changes in rates or other conditions of the tender, which will have to be discussed
with him. Once the time limit is over, the owner/architect cannot with hold the E.M.D.
and has to be refund in full to the contractors.

Therefore, it is important for architecture to make a clear mention of this time period
in the text of the tender, and thereafter, observe this time period, and complete the process
of scrutiny report earlier giving enough time to the owner to make up his mind and to choose
the contractor within the time period. If your client is an institution, please remember, the
decisions are not taken by an individual, but by a committee. Certain procedure may be
required to be followed, which it may require time. Therefore, the timetable should be
worked out properly before hand by the architect with the client so that the whole process of
selection of contractor is completed within the time period.

2. Counter offer by owner

The tender itself is an offer given by the contractor to carry out a work, which is
worded by the owner through his architect. During course of discussion if the owner
puts forth another alternative method of contract for the same work, it is called a
counter offer. This counter offer by the owner sets the contractor free from legal
obligations of his earlier tender offer. The owner and the contractor may or may not
agree on the counter offer, but the fact that an alternative is suggested, the
contractor is no more bound by the legal binding of his earlier tender offer.
For example, a contractor filled in an item rate tender for a work. Later if the owner
suggests carrying out the same work on cost plus percentage basis. This is a counter offer.
The contractor has a liberty to refuse the counter officer, if he feels so. At the same time, he
gets away from the legal binding of the earlier tender offer.

3. Death of a party
If the death occurs of either of the party before entering into a contract, than the
tender offer is ineffective and not binding on the contractor.
For example, an individual owner passes away suddenly during the tendering process.
The contractors who have filled in tenders are set free. But if death occurs of a Secretary or a
Chairman or a Director of a company who has invited the tenders, this does not hold good.
The tender process can continue and the contractors are not set free. Here, you have to
understand and appreciate that the death of an individual office bearer, the existence of a
Society or a Trust or a Company is not affected.

4. Withdrawal of Tender
Withdrawal of tender process can be from the owner or from the contractor. The
owner can stop tender process any time before issue of ‘Work order to Contractor’.
We have discussed earlier in this chapter “Client’s decision to abandon the work”.
From the beginning you shall take enough care so that in case of withdrawal of Tender
process, no legal troubles shall start against your client and yourself as an architect.
However, please remember, this is not a desirable situation.
 Withdrawal by Contractor: Contractor on reading the tender notice or a letter of
invitation to tender has all his freedom NOT to respond to the call. He can purchase a tender
and may not submit it, if he is unwilling. This means he can withdraw from tendering process
without any obligations or legal hustle. But after submitting filled in tender and the E.M.D.,
the contractor cannot withdraw from the process. If he does he loses his E.M.D. and the
owner may take him to the court of law for the compensation if he has not accepted the work
order.

Questions
Two marks:
1. Differentiate open and closed tender?
2. What is meant by calling for tender?
3. What are the contents of a tender notice?
4. What is Earnest money?
5. What is security deposit and how much is it?
6. What are the types of tender?
7. What is the significance of EMD?
8. What is Mobilization advance?
9. What are the guidelines for calling an open tender?
10. What do you understand by award?
11. Explain any two ways of inviting tenders.
12. What are the contents of a tender document.
13. Explain the advantages of open tenders?
14. What do you understand by the term “EMD”? Explain its importance.
15. What are the guidelines for calling closed tender?
16. What are the advantages of inviting limited tenders?
17. What is the purpose of insisting a tenderer to pay EMD along with his tender?
18. What are the contents of a tender notice?
19. Differentiate between open and closed tenders.

Sixteen marks:
1. “The practice of selecting suppliers through tenders may result in the wrong supplier
being selected” – Evaluate the statement.
2. Explain the procedure of issuing and selecting suppliers through tenders.
3. Explain the various types of tenders available for building construction and analyze their
merits and demerits.
4. Explain how tenders are called for and a contract is settled.
5. Compare and contrast the different ways of inviting tenders stating where each type is
best suited. Establish the advantages and disadvantages of cost plus percentage tender.
What is penalty clause?
6. What are the contents of a tender document? What is one part and Two part tendering?
7. Elaborate on the procedure to be followed at the time of opening a public tender. (8)
8. How do you scrutinize a tender document before recommendation. (6)
9. Differentiate between private tender and public tender. (8)
10. Under what situations, as an architect, you would recommend two part tendering. How
would you go about selecting the suitable contract through two part tender.
11. Explain in detail the process of tendering, from the issue of Tender Notice to that of
signing a contract agreement.
12. What are the new trends witnessed in construction industry with regards to the tendering
process. The traditional role of an architect undergoing a change. Do you agree or
disagree?
*****************

CONTRACT

Therefore, there is an Act “Indian Contract Act of 1872” to regulate the agreements or
undertakings in business.
Every time a contract need not be a written one. It could be an oral or often an
implied one. For instance, you stop an auto rickshaw, tell him the destination, and enter in it
and the auto driver flags down the meter as a mark of agreement. He starts the vehicle to
reach you to your destination. This is an example of an implied contract between the
passenger and the auto driver from our everyday life. The passenger shall pay the fare only
when the auto driver reaches him to his destination and not otherwise.
Let us learn more about the contract in terms of law. In order to be good in Law. A
contract must have the following five elements present in it.

Sr. Elements Pertaining building contract

No
1 An offer Tender offer by contractor
2 Acceptance Work order
3 Contract to be signed by competent Rightful owner of land on which
person by free will and consent. buildings is to be constructed and
authorized person as contractor, as
other party to contract.
4 For lawful consideration Amount to be paid to contractor.
Contractor’s bill for the work done.
5 For Lawful Object Construction to be lawful, (approved
by local authority).

For making a good cup of coffee, not a black coffee, you must have water, sugar,
coffee powder, milk and heat to boil. These are the essential elements. If anyone cut of this is
not available, then the mixture made cannot be called a good coffee. Similar is the situation in
Law of a contract. It will not hold good if any one of the elements can be proved to be absent.
Therefore, as an architect, you shall be careful to see that each of the elements is legally
sound.
1. An Offer
We have studied the process of calling tender. In the contract document, there shall
be a positive reference to the tender and tendering process. Therefore, the contractor’s letter
of offer, which is included in the contract document, we have seen that there is clear
reference in the first paragraph to the ‘Tender Notice’ a letter of invitation for Tender. It is
further recommended that a copy of TENDER notice or a copy of letter of invitation for
tendering shall be included in the binding of the Contract Document.

2. An Acceptance
Work order is an acceptance by the owner, to the tender offer given by the
contractor. We have seen that, on receiving written instructions from the owner, the
architect issues a work order on behalf of the owner to the contractor. To show that this
element is observed in the process, a copy of work order shall be included in the binding of
the contract document.

3. Contract to be Signed by a Competent person

It is very important to remember that this contract for the construction of a building is
between the owner of land one part and the building contractor on the other part. The
architect is NOT a party to contract. The architect has to draft the contract properly.
Therefore, the architect has not to sign the contract at all. However, if any printing mistakes
in the document are noticed, those shall be corrected on all the copies by the architect only,
before signing of contract by the parties. The architect shall put his signature at every
correction. Parties to the contract shall never alter or contract the text of the contract.

The two parties to the contract are the owner and the contractor. Let us see who is
the competent person to sign as an owner. Consider a private or an individual client who has
to construct a bungalow for him. The architect shall see from 7/12 extract or property card
who is the owner of the land. At times, the plot is purchased in the name of wife or son or
some other close relative, for some other considerations. Sometimes the wife is a bonafide
member of a housing society and the leaseholder of the plot. In such a case man of the house,
head of the family, husband or father may come forth to sign the contract, saying that he is
going to spend money for construction or he is the KARTA of the family. It would be wrong to
sign a contract by any other person other than a person in whose name the land is held, or
who is a bonafide member of a housing society.
In case of a Trust, co-operative societies and such institutions, a Secretary or a
Chairman shall sign the contract. In case of Companies, an Executive Director or a person
expressly authorized to execute the contract shall sign. In all cases, there shall be a resolution
passed in the Executive committee or Board of Directors authorizing the person to execute
the contract.
The other party to a contract is a contractor. Here again, the contractor could be a
Proprietary Concern, a Partnership company, or Private Ltd. Company. Since the Proprietary
concern is owned and controlled by one person, he shall sign the contract. In case of
partnership, all the partners shall sign the contract. In the absence of all other partners, one
partner can sign provided there is a letter of authority in his name, signed by all other
partners. This letter shall be included in the contract document. Similarly, in case of a Private
Ltd. Co., an authorized signatory or an Executive Director can sign the contract.
Except in case of an individual or a private owner, both the parties to the contract, the
owner as well as the contractor needs to have a rubber stamp of the Post of Designation and
name of the organization under their signature.

By free will and Consent

Another important point you shall note is the parties to contract shall sign the
contract with free will and consent. Suppose, an agreement to sell a property is executed
under the threat. It could be ineffective, provided it could be proved in the court of law that
the signature was made under threat.

4. Lawful Consideration
Consideration offered in the contract shall be lawful. Consideration means payment in
cash or kind for the work done. A mother says to a child ‘if you do this for me I shall give you a
chocolate’. Here, chocolate is the consideration for the work a child is supposed to do. In a
building contract, the contractor agrees to construct a building for which the owner agrees to
pay him the contract amount. This is a usual form of agreement. But suppose the owner
proposes to hand over a piece of land or wealth in some other form as a payment or a
consideration to the contractor and that wealth itself is not legally owned by the owner or
has some legal hitch, then it is a unlawful consideration. In such a case, the contract itself is
BAD AT LAW and does not hold good.

5. Lawful Object
The object of a contract shall be lawful. Suppose, there is a contract to supply goods.
But if those goods are contraband goods. Then the object of a contract is not lawful.
Therefore, the contract becomes null and avoid. In case of the building contract, to construct
a building is the object of the contract, and it shall be lawful. The plans of the building shall be
approved by the Authorities concerned. The land on which it is proposed to be constructed
shall be owned by the person who is a party to the contract. If knowing or by mistake, the
owner directs a contract to construction on a land not belonging to him, this becomes
unlawful object, and the contractor gets away from the legal binding of the contract. The
contractor can as well file a civil suit for the compensation from the owner.

Witness to Contract
While signing contract document, the signature of a witness is also necessary.
Responsibility of a witness is restricted to identify a person. That means a person signing a
contract is genuinely the same person and NOT an impostor. For that, it is expected that, the
witness shall know the person who is signing the contract. The witnesses also have to say
whether the signatures were made by free will or under threat, in case asked in the court of
law. The witness is NOT responsible for the text or contents of the document.

Indian Stamp Act of 1899

Under the Act, a contract shall be executed on a stamp paper of appropriate value, as
prescribed by the rules under the Act, from time to time. Sale of stamp paper is a source of
revenue to the Government. The stamp duty is likely to be revised by the Government.
Therefore, one has to refer prevailing Rule before purchasing stamp papers. Value of stamp
papers is related to the contract amount.
 In case of dispute, unstamped contract papers cannot be admitted before an
Arbitrator or a Court of Law. Therefore, it is advisable to sign the contract on the stamp
paper. Most of the building contracts in private practice are carried out and completed
smoothly without serious disputes. In very few cases, disputes are referred to the Arbitrator
and Civil Court. Taking the advantage of the probabilities, usually a contract is executed on a
stamp paper of lesser value. In case, if one has to a course of law, one will be required to affix
additional stamps of proper value along with the penalty.

Contract Document
A contract document is the most important document in connection with carrying out
of the building construction. It is necessary to have a contract in some form or the other. It
could be only a verbal one or it may consist simply of a Tender and a letter of acceptance. But
better the form; the fewer are the difficulties in carrying out the work.
The forms of contract in the Government Departments are different. If you are
working in any Government Department, you will have to adopt that form of contract, which
is used in the Department.
The form of contract agreement we shall study is the one issued under the sanction of
The Indian Institute of Architects. It consists of- i) Articles of Agreement and ii) general
conditions of contract
A contract document shall consist of the following papers:-
1. Copy of ‘Public Notice’ or Copy of ‘Letter of Invitation’.
2. Copy of work order
3.1 Letter of offer by contractor
3.2 Articles of Agreement
3.3 General conditions of contract
3.4 Appendix
4. Specifications of work and material, reference to standard specifications, special or
additional conditions drawn up by the Architect for that particular job.
5. Bill of Quantities [contract Bill]
The same is referred as schedule of Rate as the item rates are written on it, which are
approved and accepted by the owner.
6. Contract Drawings
Drawings sufficient to indicate the work to be carried out. (This needs not be a
Working Drawing in case of item rate tender).

Before Signing of Contract

Contract document shall be properly understood by both the parties to contract
before signing it. It is for the architect to explain the contents of it, in short, to the owner.
Both, the owner and the contractor agree to give authority to the architect to properly
administer the Building contract. Both of them agree and accept the architect’s supervision
on the work. Hereafter, the architect is owner’s representative on the work site, and the
contractor agrees to carry out the construction under the architect’s guidance and
supervision, as per the terms and conditions of the contract. Hereafter, the owner shall
express his views about construction, not directly to the contractor but through the architect.
The contractor shall not try to by-pass the architect and to take the instructions regarding
building construction or ask for the payment directly from the owner. The owner shall not
entertain any request for payment from the owner. The owner shall not entertain any request
for payment from the contractor if it is not certified by the architect. Both of them by virtue
of this contract appoint the architect as an authority to administer the building contract. If
this discipline is observed by all, I am sure the building construction shall be a happy
experience.
The architect is now charged with a heavy responsibility. He should always remember
that the owner is building by spending his own money. Therefore, he should respect his
aspirations and expectation about the building. Ii is his duty to give the owner is sincere
advice to the best of his abilities and to safeguard the interest of the owner. Finally remember
it is owner’s wish; it is owner’s property.

Appendix in general conditions of contract

Before signing the contract, the appendix shall be filled in by the architect, with
consent of both the parties and in their presence. The architect should explain to both the
parties, the relevant clause and the decision should be taken mutually.

Owner’s consulting engineers

I have experienced many a times, particularly in the case of an Educational Trust,
interference from the owner’s side in administering a contract. Often there is an honorary
consulting engineer appointed on the building committee. Usually, such a person is a retired
Government Engineer either from Railways or P.W.D. Having spent entire career in the
Government department, most of them have no information about the private architectural
practice. They do not care to read and understand the contract document, which is different
in the text from the one used in the Government works. Such consulting engineers feel that
they are supreme and hence, the conflict arises. It would be in the interest of the work, if
such a consulting Engineer remembers that an architect is the owner’s representative on the
work site and not a contractor’s man. He should speak with the architect about the building
work to suggest him or to draw his attention to and not contradict the architect or try to
overpower him. The architect should also keep an open mind to the suggestions from
consulting engineer. Sometimes, the engineer may have practical experience of work site.
Most of the time, the engineer would be senior to you in age. You should always be polite in
conversation, but need not be submissive on every point. It is always good to learn from a
knowledgeable person. That should be your attitude all the time in your life. At the same
time, remember you are the architect, responsible to the building committee and shall not be
carried away by an individual’s opinion.
Now about the works of individual clients. I feel it is the sign of a good culture of an
individual or a good setup of mind that, having appointed an architect one should go by his
advice. If you trust someone more than your medical consultant, it may not be suitable for
your health. Unfortunately, very few individual clients have such well-cultivated mind. I
always preach an individual owner, a private client that,”there is no one else except both of
us who are really concerned about your project. There may be several suggestions from many
people around you. Please feel free to discuss with me the suggestions. We shall adopt if
found suitable. But please do not be carried away or be disturbed by the comments of
passers- by. Because he is not responsible for his comments or suggestions.
I remember, a father-in-law of my client, for whom I had designed a bungalow, was a
retired lecturer from an engineering college. He used to suggest and even insist the
contractor in my absence to do something else on the site. It was a big problem for me to
protect my design from such a quack. On the other hand, a surgeon told his wife and other
family members, for whom I was doing his Bungalow; “we have had enough discussions with
our architect” he said “now do not listen to the comments of others that may create
confusion. When you visit the construction and if you have anything to say, say it to the
architect and not directly to the contractor”. It was a pleasant experience to all, including the
contractor, to construct that Bungalow.

DIFFERENT TYPES OF CONTRACT

Now we shall study the different types of Tenders. The terminology is applicable to
the types of contract as well.

1. Item Rate Tender / Contract

This is a type most commonly used for big as well as small building projects. After
finalizing the working drawings, quantities is prepared mentioning quantities of each item
against an abstract of an item. This schedule of quantities is then issued to the contractors for
filling in item rates. Thus on the basis of the same and on the equal information, the Item
Rate Tenders are invited from the contractor.
A) This is a standard and suitable method for a big as well as for a small building project.
B) Rate of an item is the commitment in this form of Tender/Contract.
C) This gives a freedom to the owner and his architect to change the details of work during
the construction, as he has a liberty to increase or decrease the quantities of any item of
work. without vitiating the contract

The only disadvantages in this form of contract are the uncertainty of the final amount
of the cost of construction. Usually, it is observed that there is a difference in the contract
amount, i.e. estimate and the final bill of the contractor. If the final bill is much more than the
contract amount, i.e. estimate, then it may sometimes, pose difficulty for the owner to
arrange for the additional funds. This creates displeasures between the owner and the
architect. To keep this possibility to the minimum, you as an architect should take at most
precaution. i) You should work out quantities and estimate preferably from working drawings,
as accurate as possible. ii) During the course of construction if there is a change in the work,
which would increase the cost of work, it should be notified in writing to the owner from time
to time.

2. Lump Sum Tender and Contract

This method is more suitable where the owner requires a fixed commitment of
investment for construction of a project. To overcome the problem of cost overrun, which we
find in an item rate contract, this method of contract shall be useful. This is suitable for the
construction of buildings of a simple nature and with no possibilities of additions or
alterations during the course of construction. One may find it suitable for a repetitive work.

Essential Points to be Observed White Calling a Lump Sum Tender

1. Work to be carried out should be very clearly shown by means of drawings
Plans, elevations, sections and all relevant details, including a schedule of
reinforcement in case of R.C.C. structure and fabrication drawings in case of a structural steel
work, in short, a complete set of working drawings should be supplied to a contractor to work
out the cost of construction. Minor details of railing, grilles, etc. should also be included in the
set of drawings, if they are required to be included in the construction cost.
2. Specifications
Materials and work specifications shall be included in the tender. A list of finishes such
as floor finish, plaster finish, dado, colors, paints etc. everything shall be clearly indicated on
drawing and supplemented in words. So that the contractor will be able to work out correct
quantities. It is convenient to give a list of approved materials.

3. Plumping and Sanitary fittings

If the services are also to be included in the lump sum tender, than a plan together
with the specifications shall describe the plumping and the sanitary work. One should
specifically mention the size, colour and make of the sanitary fittings, the diameter of a
material and the make etc. of waste lines and sewage line, underground lines. It is proper to
give a plan of drainage line including inspection champers and up to the disconnecting
chamber (Intercepting chamber) and to include this work in the lump sum tender.

Where municipal sewage lines are not available to a site, a septic tank shall be
constructed, and it shall be included in the lump sum tender. However the architect should
not forget to give a working drawing of septic tank, if it is not ready-made to be used.

4. Electrical Installation
If the lump sum cost is to include an electrical installation, you should indicate, the
outlet position, the control switch board positions, the positions of D.B.M.C.B., the electrical
meter position, etc. clearly on the drawing. The specifications should give details of wire,
switches and accessories, control panel etc. You should also specify whether it shall be a
concealed wiring or a surface wiring. It is convenient to include in the lump sum tender, an
electrical installation up to and including the main switch electrical meter and cupboard.
Bringing an electrical supply up to the electrical meter shall be separate job, which may not
be included in the lump sum tender.

5. Water supply
Water supply system within a building can also be included in the lump sum tender as
it can be clearly indicated on the drawing and can be described in the specifications. This shall
include an overhead water storage tank, a ground tank or an underground tank. In case of a
ready-made tank, it is necessary to specify its make, capacity etc. while it is necessary to
supply a working drawing, in case of the tank is to be constructed on site. The drawings and
the specifications shall include a diameter and a class of G.I. pipe line to be used in the work.
The water supply may require a water pump, which has to be specified properly.

Source of water supply to a property could be a municipal water supply or owner’s

own arrangement such as well water or water lifted from nearby lake etc.

Uncertain items of work

The uncertain items mean the items, which cannot be worked out in details in terms
of quantities and cost at the time of floating a lump sum tender. It will not be fair to include
such items in the tender. It could be a reason for dispute and displeasure. To cover an
uncertainty, a contractor may consider a higher cost for a work. Then it is a loss to the owner.
On the other hand, if it goes beyond the expectation of a contractor in expenditure, it may
have a bad effect on his performance.

Work below ground level

To be strictly theoretical, the list of uncertain items of work will include the
foundations of a building or work below the ground level. The depth of excavation cannot be
predicted. A trial pit cannot be always representative of all the area of a building. The depth
of excavation totally depends upon meeting desired strata. Therefore, the depth of
excavation varies from column pit to pit. If the variation in depth is not much and yet well
within the specified depth, then such a case may be suitable for the lump sum tender. Sites
with slope or with changing strata are really not suitable for including foundation work in the
lump sum quotation. There may be a big difference between assumptions and actual. It may
prove unfair to either of the parties to contract.

CONTRACT DOCUMENT

Supervision of work
Supervision of work is an important duty of an architect from the practical point of
view. You shall be good at designing of a building. It is equally important for you to give an
effective supervision on the construction. It is not expected of you to be on site all the while.
Even then you shall have full control on the project. For that you must be well versed in your
responsibilities and authorities as well. In government department, executive powers are not
with the government architect. There are engineers of the department for that purpose. But
in private practice, it is not so; and it shall NOT be so. Owner engages an architect for a
project; and the architect shall not lose hold on the project.

As per code of council

The council of architecture has kept this role of “Construction Manager” as optional.
On big projects, owner is supposed to appoint a separate agency to supervise the
construction work. But there is more number of medium and small construction works where
perhaps it is not suitable to the owner to engage one more agency to supervise the
construction. If a “clerk of works/ site supervisor” is appointed to assist the architect,
reasonably effective supervision on construction is achieved. Articles of agreement and
general conditions of contract as prescribed by the I.I.A. shall be used for signing contract,
which gives an architect an additional authority that is required to work as a “Construction
Manager”.

Architect as construction manager

A practicing architect is in a way “a Construction Manager” of a project for which he
has been commissioned by the owner to design. He being the owner’s representative has to
see that building project is executed under his supervision and guidance per the conditions of
contract signed between the owner and the contractor. He has to oversee quality of materials
and the workmanship with the help of the clerk of works (in some cases mare than one
person) appointed for the project. He shall see that the project is carried out as per the design
drawings, working drawings and specifications given to the contractor. The architect may be
required to give further details and decisions during the course of construction. He has an
authority to remove any worker or sub-contractor for his unsatisfactory performance, so that
the quality of work shall not suffer.
 The architect has to control the cost of the project by checking the quantities of works
executed and the item rates shown in the contractor’s bill for payment. The architect has to
probe into the extra item rates and rates for variation of items and judicially certify them for
the payment. He has to play a role of an Auditor for that matter. Over and above, an architect
must keep a proper liaison with the client. Keeping him informed regularly the progress of
work on site and directions and decisions given to the contractor by him (Architect). To
discharge all this duties, an architect has to visit the site frequently at a regular interval. He
has to make a round and see for himself all the areas of the project. He shall hold site
meetings with representatives of general contractor, sub-contractors, nominated sub-
contractors, site engineers and clerk of works etc. In such a meeting, he shall criticize under
performance and delay in progress, unsatisfactory quality etc. But shall not remain behind to
praise a person for his good work. This motivates the team to do better than before. He
shall always talk of co0operation and co-ordination between different agencies and sub-
contractors and suppliers. He shall motivate the whole team for doing their best.
When the contractor is doing his work sincerely and satisfactorily, the architect shall
also go little out of the way it insists upon the owner for making the payments to the
contractor on time. Because that keeps the contractor’s money rolling.

Study of contract document

Out of the three types of contractors ‘an item rate contract’ is more commonly used.
We have made a list of components, generally included on a contract document in Chapter –
XI. If it is a lump sum contract, there shall be a slight change in the list of components. That
also we have discussed in Chapter XI. Common to both the types is the “letter of offer” given
by a contractor to the architect. (Please read a specimen given in Appendix 14.I). There are
five paragraphs in the letter. Each of them is an important commitment.

Letter of offer
In the 1st paragraph, there is a reference to the procedure adopted for this tender, i.e.
‘invited’ or ‘Tender notice in newspaper’ dated …………… etc. There is also a reference to the
“work”, i.e. name of the work for which this procedure of tender is made. The next item is
about the type of tender “Schedule of Rates” if it is an item rate Tender or “Lump sum
amount of Rs………………………” if it is a lump sum tender.
In the following paragraphs, the commitments made by the contractor are of
immense importance for the execution of project. Here, he accepts your authorities as an
architect for the project. He shall not raise claims on account of conditions on site. He shall
accept your authority to forfeit E.M.D. under certain conditions. The contractor also commits
the time limit to complete the said work.
This offer letter shall be signed by the proprietor, if the contracting company is
proprietary, and by all the partners if it is Partnership Company, names of all the partners
shall be written by the contractor. A rubber stamp of the office shall be used. All these
precautions shall be taken to restrict the possibilities of anyone backing out from the offer
given. The other partners shall not deny their legal responsibility.
In addition to the general Conditions of contract as prescribed by I.I.A. and which are
available in printed form, every architect may have a few additional clauses for a particular
work, which are called PRELIMINARY CONDITIONS. These shall be included in tender and in
contract as well. While writing out these Preliminary Conditions, one should avoid repetition
of clauses that are included in “General Conditions”, which are exhaustive in it.
To write out and to include the specifications of building materials and works shall be
a volume of work. There are standard specifications of building materials and works by I.S.I.
specifications by public works department of the Central Government and the State
Governments. You shall be familiar with at least one of them. Preferably you shall have a copy
in your office library. In preliminary conditions if you include a clause saying “Where not
stated otherwise, standard building material and works specifications as laid down by P.W.D.
Handbook shall be considered for this work”. This will reduce your clerical work and
stationery. For the benefit of young architects, starting their own practice, I have added in
Appendix ‘Preliminary conditions’ used in my office. You should read them carefully and
understand well. You shall copy them and suitably include in tender and contract in your
work. I shall draw your attention to some of the clauses.

Basic Rates of Material and Escalation of Prices (refe3r Appendix 14 II)

At the time of floating tenders, the architect shall learn from the market, the
prevailing rates of building Materials and include them in the list of Basic Rates. The
advantages of this clause are;-
A. This provides a freedom of choice to the Owner and the Architect regarding the
finishing materials such as marble, ceramic tiles, mosaic tiles etc. without being unfair
to either of the parties to contract.
B. The owner can arrange to purchases the standard building materials such as Cement,
Steel, and Bricks etc. provided he could procure it at a cheaper rate than the basic
rates and supply it to the contractor. / The deduction for the material supplied shall be
made from the contractor’s bill at the Basic Rates only. The difference in price shall be
saving to the owner. Educational Trusts, Hospitals or even an Individual Owner may
get a big discount or donation in the form of Building Material. This clause is useful in
such situations [Refer clause – owner’s right to supply building material].
C. Price Escalation; during the period of construction, prices of material are likely to
fluctuate. If the price rise is marginal usually a contractor can absorb it. But if it is
more, say more than 5 %, and then it would be unfair to compel the contractor to
work at the same item rate. If the price rise is very high, it may erode the profit margin
of the contractor and may have an ill effect on the quality of work. Cost of building
material is a major component in an item rate of work.

Therefore, if the escalation in building material is taken care of, the contractor faces
no hardship due to price of material. This arrangement I have found in my practice, works
well. If not all, prices of major building materials such as cement, reinforcement steel,
structural steel, bricks, floor tiles etc. shall be covered under this clause.
The contractor has to produce bills of the material purchases to architect’s office. The
architect shall check whether there is a clear mention on the bill, of the site to which the
material is delivered. The date of the bill shall also match to the requirement of material on
the site. The clerk of works shall certify the arrival of material on the site.
This is only to ensure that the Purchase Bill of other sites is not put in to the account
of your site.
Purchase Price - {Basic price + 5 % of Basic price} = Amount payable to contractor by owner.
[Basic price + 5 %of basic price] – Purchase Price = Amount payable to Owner by
contractor.
In Government works, there is a certain formula to work out increase in an item rate
and labour rate due to inflation, which is rather clumsy. I do not recommend it to be used in
private practice.
The printed booklet consists of:
1. Articles of Agreement
2. General conditions of contract and
3. Appendix

Articles of Agreement
The first page of the booklet of the printed matter or ledger paper is the Articles of
Agreement. This is printed in the form of “Fill in the gaps”. It is necessary to affix adhesive
court fees stamps of appropriate value before signing on it. Legally it is very important. One
shall not sign first and then affix stamps. Person signing the contract must realize and
understand that he is signing on a stamp paper. Alternatively, the text of ‘Articles of
Agreement’ shall be typed on a stamp paper of the appropriate value. This stamp paper shall
replace the printed first page of the booklet. Purchase of stamp paper of affixing stamps is to
be done by one of the parties to the contract, usually the contractor. The contractor shall
purchase a stamp paper and give it to the architect’s office for further work.
Filling in the gaps in the text of the Articles of Agreement is very simple. Still you must
remember the following;-
1. The first line is the date – This is the date of signing the contract and not the date of
tender or any other date. In practice, the contractor can start the preparation on site
or commence the work on site on the strength of the work order received by him.
Preferably the contract shall be signed before commencing the work on site. With
mutual good faith, it could be signed a few days later as well.
2. Then comes the Name of the owner and his address (herein after called ‘the owner’).
Thus, we define the owner, the party to the contract. In case of institution, name of
the person, his designation and address of the office of institution shall be written.
3. The other party to the contract – The contractor is defined in the following lines. In
case of a proprietary concern, you shall write e.g. ‘U.R. Nandi, proprietor of Nandi
constructions’. If it is a partnership company, it is good to make all partners party to
the contract, e.g. “U.R. Nandi, partner and all partners of M/S. Nandi construction co”.
Thus in case of a company, name of the person his position, like partner, director etc.
and address of the company shall appear.
4. Then follows ‘the work’ WHEREAS the owner is desirous of ………………………….. Here
you describe the work. e.g. ‘the owner is desirous of constructing a Building for a
Hospital ……… on …………….. Then the address of site.
5. Next to be filled in is the name of the architect and his office address.
6. Please note in case of a lump sum contract, you should omit the word “Bill of
Quantities” and keep only working drawings and specifications in the text.
7. The contract drawings (refer definition on page No.232) shall be numbered, and shall
be signed by both the parties to contract. The schedule of rates included in contract –
called contract Bill, shall be signed by both the parties on the last page of the Bills.
8. Security Deposit: E.M.D. given along with the tender, along with additional installment
if asked for, is now termed as Security Deposit. This security Deposit shall remain with
the Architect’s office and shall bear no interest. It shall be refunded to the contractor
 on virtual completion of the work. This amount of deposit is to be mentioned here in
the Articles of Agreement.

The Para says ‘it is agreed as follows’. This sets out the obligation of each of the
parties. The contractor has to complete the work as per the terms of contract and the owner
has to pay the contractor ‘the contract sum’ or the sum as becomes payable as per terms of
contract from time to time. The Articles further define “the Architect” for this contract and
appointing his successor in case, it is need to do so. The intention is not to allow the contract
to become void on account of change of Architect. There is a point to be noted in this
paragraph. Appointment of an Architect for this work is entirely the owner’s choice. The
contractor has given tender and entered into contract knowing full well who the Architect, for
the project is. If he had any grievances regarding the Architect, the contractor in the first
place should keep himself away from tendering for the work. But now having entered into
contractor if for some reason, the Architect is required to be changed; it cannot be the
owner’s choice alone. The contractor has a reasonable say in it.
Architect’s office shall make the contract document on stamp paper and shall prepare
two copies of it, at the same time.
A. Before signing the contract the architect shall allow both the parties to contract
particularly the contractors to satisfy themselves that the item rates in the contract
Bill, in all the three copies are the same as agreed upon in tender offer.
B. Then the architect shall explain the Appendix to both the parties and fill in the
particulars.
C. Both the parties shall sign below the Appendix on all the three copies.

On Filling Appendix
At the end of the general conditions of contract is the Appendix. This shall be filled in
on all the three copies by the architect, after mutual consent of both the parties to contract.

Defects Liability Period

This is like a warranty period given by a manufacture. Any defect observed during this
period in the building shall be made good by the contractor free of cost to the owner. Defect
liability period shall be minimum one year, after virtual completion of the building, so that the
building has experienced all the seasons of the year. However, if the owner desires to extend
this period it shall be notified in the blank tender document.

Period of Final Measurement and Valuation

This is printed as three months after virtual completion and that is reasonable. After
the contractor has submitted his final bill and measurements, the architect’s office shall
scrutinize and finalize all the accounts of the project within three months.

Date of Commencement
In the work order, the contractor is given a certain period to mobilize the site and he is
asked to commence the work on site on or before a certain date. The date on which the work
is started on site shall be entered here.

Date of Completion
 The contractor has committed himself to complete the work in certain period of time
in the letter of offer. The date of completion shall be worked out accordingly and shall be
entered here.

Agreed Liquidated Damages

There is a penalty for the delay in completion of the work. The owner having invested
in building, if he is not able to utilize the building on account of non-completion of work on
time, he is losing his returns on his total investments. To work out the “per day loss” to the
owner, work out interest at 70% p.a. on the contract amount for one year and divide the
annual interest by 365 to work out daily loss.
Loss per day - Annual interest on the contract amount at 70 % ÷ 365 days
This amount shall be rounded off to a suitable higher figure and shall be written in Appendix.
The per day amount shall not be too small; lest it will NOT serve the purpose. Often the
owner is nor=t happy with a small ‘per day penalty’, particularly in case of industrial or
commercial projects. Then these calculations shall be made with higher rate of interest
mutually agreed, say 18 % or more. But remember, to make it a balanced contract, you shall
insist to apply the same rate of interest for the delayed payment by the owner to the
contractor. In that case, the architect shall correct the rate of interest printed on all the
copies of the contract, with a mutual consent of both the parties. The architect shall put small
signature there.

Value of Work for Interim Certificate

It is not practical to expect a contractor to complete the project and then ask for
payment at the end. The contractor shall be paid in between also. The contractor shall raise
the Interim Bill or the Running Account Bill (R.A. Bill) of the work done on site from time to
time. Instead of raising a monthly bill, it is more correct to set up a mutually agreed amount
for the interim bill/certificate. This amount mutually agreed shall be written here. As and
when the contractor realizes that he has carried out work worth that amount, he shall submit
a bill along with measurements sheets and all relevant papers to the architect’s office for the
scrutiny and for issuing the certificate for the payment.
This amount of bill can contain value of building materials brought on site such as
cement, reinforcement steel, bricks etc. if purchase by the contractor.
Usually 80% of the cost of unfixed material on site is included in the amount payable
to the contractor in the running account bill. This value of work for interim certificate shall
not be too small. Though the contractor will like to have it small. So that the contractor can
keep his investment lie in the project, there will be more number of interim bills in a given
project, occupying more of your time in scrutinizing them.
The owner shall not pay the contractor under any pretext, without a certificate for
payment from the architect. The owner shall not pay to the contractor any amount more than
that is certified by the architect, for the payment to the contractor.

In Case of Lump Sum Contract

Write here in Appendix “as per statement attached”. A statement shall be made
stating stage of work done on site and amount to be paid to the contractor at that stage.

Retention Percentage
Before commencing work on the site, a contractor is supposed to deposit 10% of the
contract amount as a security deposit with the Owner/Architect. When the project is of a big
amount, the amount of security deposit also is sizeable. The contractor’s working capital is
locked up by giving this security deposit.

Schedule of Quantities
In an item rate contract, the rate of an item is the essence to any extent, which will
not vitiate (destroy) the contract. This is not provided here to give you (Architect) a liberty to
be careless about quantity surveying whiles preparing the tender and the contract bill. This is
to give Liberty to the Owner/ Architect to do alterations in design during the construction to
some extent, which wills obviously increase or decrease quantities of items.
The owner has a right (a) to increase or to decrease any of the quantities of item, (b)
to totally omit any item of work. The contractor shall not claim extras or damage on these
grounds.

Contract Drawing
The drawing that is including in a contract document is a Contract Drawing. It is to be
taken as indicative. It shows dimensions, positions and type of constructions.
1.1 Contractor’s work shall not deviate from the drawing and specifications. Architect’s
interpretation of these documents shall be final and without an appeal. This is a very
important clause. Architect must know precisely what he wants as far as design is
concerned and he shall be confident about the technology. So that others may not
over power him.
1.2 A) Errors or consistencies in drawing and specification shall be promptly brought to
the attention of the architect, for the interpretation or correction.
B) Local conditions, which may affect the work, shall be also brought to the notice of
the architect.
C) If it is discovered at any time that the work is not as per the drawings and
specifications, the contractor shall correct at his own cost without claiming extra time
or cost.
1.3 Large scale drawings shall take precedence over small scale drawings figured
dimensions shall govern. Any work done before the receipt of such details, shall be
removed or corrected by the contractor or adjusted as directed without extra cost to
the owner.
[As a good practice, the architect shall give all the large-scale details well in advance.
You shall not take this clause as a license to delay your work.]
1.4 All drawings, bill of quantities and specifications and copies thereof, shall not be used
on any other work but shall be returned to the architect on the completion of work or
the termination of contract.
1.5 Bar bending schedule if asked for, shall be supplied by the contractor to the architect
at least fifteen days in advance before the fabrication of the reinforcement. [This is to
give you a sufficient time in your busy schedule, to examine the schedule carefully.
Once you or the structural engineer has approved the schedule, it is your
responsibility about its correctness.

Contract Sum
The contract sum shall not be adjusted or altered. The contract sum can be altered
only in accordance with the express provisions of these conditions of contract. The architect’s
interpretation of these documents (Which includes drawings and specifications as well) shall
be final.
Contract Bills
The bill of quantities included in a contract known as contract Bills.
1. If there is no other mention in case of a particular item of work, then the quantities
shall be worked out (measured) as per the standard method of measurement of
building works latest issued by the Indian Standard Institute (I.S.I).
2. If the architect indicates as a particular mode of measurement for any item of work in
this bill of quantities, the same shall be followed by the contractor. (irrespective of
standard mode of measurement)
3. Any error in the description or in the quantities or the omission of item from the
contract bills shall not vitiate this contract. The errors shall be corrected and items
omitted shall be added and these items shall be considered as variations required by
the architect.

Scope and Intent of contract

1. The general character and the scope of work is illustrated and defined by i)
Specifications, ii) Bill of quantities and iii) Contract Drawings. All these are included in
the contract document.
2. If any discrepancy in or a divergence between the three above is observed by the
contractor, he shall give a written notice to the architect pointing out a discrepancy or
a divergence. The architect shall issue the instructions in regards to that Extent 8(2)
under this clause, the architect is authorized to issue to the contractor further
drawings, details and written instructions regarding the said construction work.
3. The intent of a contract document is to include all the required labour, material,
equipment and transport etc. necessary for the proper execution of work.

Architect’s Instruction
1.1 Under the contract, the architect is expressly empowered to issue instructions to the
contractor pertaining the said work.
i) The contractor shall comply with the instructions of the architect.
ii) If such instructions involve variation, it shall be confirmed writing.
iii) If the instructions issued by the architect are not complied with the contractor within
seven days, then the owner may employ and pay other person to execute any such
work, which may be necessary to give an effect to such instructions. All the cost
incurred for such work shall be deducted by the owner from any payment that shall be
due to the contractor.
1.2 The contractor may ask the architect in writing, the clause of a contract under which a
particular instruction has been issued by the architect. The architect shall reply
forthwith such a letter. Obviously, you must be conversant with the General
Conditions of Contract. (Purports to be……….. = appears to be ……………..)
1.3 All instructions issued by the architect shall be in writing. any instruction issued orally
shall be of immediate effect. But the contractor shall confirm in writing to the
architect within seven days.

Facilities and Co-operations

The construction of modern buildings is a multidispensary work. The general
contractor who is a civil contractor has to co-operate with other contractors such as
contractor for elevators, air-conditioning, electrical installation, plumping etc. This clause is
necessary to make it obligatory for the general contractor to co-operate with other agencies
contractors.
Setting Out
This clause puts responsibility of accuracy of setting out of line out of building on to
the contractor, as per the drawing provided by the architect. The architect has to furnish the
contractor an accurately dimensioned drawings and information such as line of reference and
correct levels etc. Therefore, you shall be capable to produce an accurate centre line plan.

Contractor’s Visit to Site

1. The contractor is supposed to study the conditions at the site including access to the
site, distance, availability of men and material to the site etc. before filling in the item
rates in the tender. This clause is to prevent the contractor from making a claim for an
extra payment later on account of situation at the site.
2. Possession: The site is as if given in possession of the contractor to do the construction
work as per the contract from the date of commencement and up to the “date of
completion” subject to extension of time given as per the relevant clause.
3. Treasures: Any treasures coins or object of Antiquity found on the site shall be handed
over to the owner. Often such things are found in excavation.
Samples and Shop Drawings
Under this clause the contractor is required to submit the samples of all materials
within sixty days of signing the contract and not less than 120 days before its use in that
particular item of work taking place on site. The architect shall remember this clause and
insist up on it. That will set the contractor to make the arrangements well in advance and
there will be enough time to place the orders for supply of chosen and specified material. The
clause further says that the dates of submitting samples shall be indicated on Bar chart. This is
very important. That reminds every one, the architect as well as the contractor, the activity
that should take place on a particular date to be on time.

Progress Chart
Project management is much talked about these days. In fact it is nothing but
methodic working of a project. If it becomes a habit with you to work systematically in your
everyday work, you are not far from ‘Project Management’. Only ting remains to learn about
and adopt in your work, a couple of tools like BAR CHART (progress chart), flow chart and
Network Diagram etc.
This clause authorizes you to insist upon the contractor to produce a progress chart
(bar chart). You shall make copies of the same and keep one in your office and the other on
the site. You shall refer the chart every time when on site visit to check the progress of work
on site.

Access for Architect to the Work

The opening sentence of this clause says ‘Architect shall be the owner’s representative
during the construction period’. This is one of the roles; the architect has to play in practice.
The other roles being, owner’s advisor, auditor and umpire. This clause gives an authority to
the architect to visit not only the work site but also places of work of sub-contractors for the
inspection of work being carried out there.

Architect’s Status and Decisions

There are about twelve points in this clause.
1. The Architect shall be the owner’s representative during the construction period.
2. The Architect shall periodically visit the site to see for himself the progress and the
quality of work and to determine in general if the work is proceeding as per the
contract conditions.
3. The architect shall not be required to make exhaustive or continuous on site
inspection to check the quality or quantity of the work and he shall not be responsible
for the contracts failure to carry out the construction work as per the contract.
Often the owners have wrong expectations of architectural duties. This clause is
important from that point. It is for us to explain to the owner beforehand. As far as
construction is concerned, the responsibility of an architect is to give proper drawings
and instructions to a contractor. In spite of that if the contractor is unable to deliver
the goods, it is logical to say that the architect shall not be responsible for the
contractor’s failure.
4. The architect shall inform the owner from time to time about the progress of work on
the basis of his visit to the site [while explaining clause 9.3 above I have suggested
writing on “Triplicate Book”. In that develop habit of writing an opening line about the
progress of work on site such as ‘Concreting of footing is complete’ or ‘Brick Masonry
on ground floor is almost complete’. This is recording the progress of work. A copy of
these ‘instruction to contractor shall be sent to the owner. There by the obligation of
keeping the owner informed about- i) progress of work and. ii) your instruction to
contractor is fulfilled.
5. The Architect shall guard the owner against defects and deficiencies in the work of the
contractor, and for that he shall condemn the work, which is not as per the architect’s
instructions, in the form of drawings and specifications. [In such a case, the architect
shall give a written instruction to remove and redo the portion of work, which is not
meeting the requirements of the contract conditions].
6. The Architect shall have an authority to act on behalf of the owner only to the extent
expressly provided in the contract document. [The contract gives an authority to the
architect to act on behalf of the owner only for the proper execution of the project
and not beyond. It will be beyond. It will be beyond the architect’s authority to
promise someone to sale a portion of property or surplus land of the owner etc.]
7. The architect shall have an authority to stop the construction work whenever such
stoppage is necessary to ensure the proper execution of the contract.
8. The architect shall be in the first instance, the interpreter of the conditions of this
contract and the judge of its performance. He shall side neither with the owner nor
the contractor. He shall use his powers under the contract to enforce its faithful
performance by both the parties.
9. In case of termination of the architect, this contract shall not be vitiated. The owner
shall appoint another architect against whom the contractor shall have no
unreasonable objection. Any dispute in connection with such appointment shall be
subject to Arbitration. [please refer the explanation on ‘ARTICLES OF AGREEMENT’].
10. DECISIONS: The architect shall within a reasonable time make the decisions on all the
claims of the owner or the contractor and all other matters relating to the execution
and progress of the work or interpretation of the contract Document. The Architect is
an umpire. Therefore, do not be hasty in expressing your opinion. A layperson can
make any statements. But when a professional expresses his views, it is taken as
considered opinion. Therefore, you shall express your opinion ‘within a reasonable
time’ and not on the spur of the moment. You shall express your views only after
referring the matter, text of the contract, drawings, standard specifications etc. as
 needed by the case. But at the same time, you shall not take too long give your
decisions.
11. This clause also authorizes the architect to issue from time to time further drawings,
details and written instructions all the matters related to the construction of the
project. A full list from A to L is given in the clause.
12. DISMISSAL: If in the opinion of the architect, any person employed on the work by the
contractor or sub-contractor, is not competent or has misbehaved, the architect shall
ask the contract to dismiss him from the work. The contractor shall do so with an
immediate effect. A person so dismissed shall not be employed again without a
written permission of the Architect.
[The Architect shall use this authority if he notices bad workmanship-either due to lack
of skill required for the job or the attitude of a worker to ignore the instructions given
by the architect or the clerk of works. It is necessary to exercise this authority in the
interest of the work, which results into safeguarding interest of the owner, which is
the prime duty of the Architect.]

Performance Bonds
The concept of security deposit is explained earlier in this chapter in the paragraph
‘Retention percentage’. ‘Earnest money’ becomes a part of ‘Security Deposit’. Amounts shall
be agreed upon mutually. The period of holding the deposit is also subject to mutual
agreement before signing the contract.

Clerk of works
The word ‘CLERK’ may be misleading for some of you. The clerk of work is in fact a
Technical Person and is Supervisor of work on site. Architect shall insist on the appointment
of Clerk of Works particularly on the institutional works.

Contractors Field Organization and Equipment

This clause requires the contractor to appoint a Site Engineer in charge of the work,
who shall be present all the time on the site when the work is in progress. This Site Engineer
shall carry out the work as per the drawings and specifications issued to the contractor. Any
instruction given to the site Engineer by the Architect is as good as given to the contractor.

Taxes
The item rates shall include all taxes, duties and octroi etc. legally payable. That means
no additional payment towards any tax shall be paid by the owner. (Works contract tax also).

Statutory Obligations, Notices, and Fees etc.

If a contractor uses the area of road for dumping a building material during the
construction period, the local authorities (Municipal corporation etc) charges rent or fees for
that, which the contractor is required to pay under this clause. The contractor shall hand over
the receipt of payment or the N.O.C. to the architect, which may be required for the process
of Building Completion. Similarly, the plumbing contractor shall obtain a N.O.C. from the
Drainage Department and the water department as a part of his duties under this contract.
Similarly, the Electrical contract has to submit test-report to the concerned authority and
obtain the Electrical supply to the property as a part of his duty under the contract. Architect
need not spend his time for these works.

Water for Construction

 It shall be made clear by the architect as to what is the source of the water supply to
the site during the construction. The contractor also before working out his item rates shall
visit the site and take into account the cost of water that may be required for the
construction and shall provide for that in the item rates.

Sub-Contractors
It is a usual practice that a General Contractor in turn engages the sub-contractors or
the labour contractors for the different of work involved in a construction project. You may
not see same workers doing concreting who had excavated for foundations.
1. Under this clause, the contractor is required to submit a list of sub-contractors he
intends to engage for the major parts of the work. Any of the Sub-contractors
disapproved by the Owner/Architect shall not be engaged on the work.
2. The Architect shall have powers to obtain the estimate and select other agencies to
carry out any of the works. Such agencies like specialists, suppliers, tradesman
selected by the Architect or the Owner are called nominated sub-contractors. These
shall be deemed to be sub-contractors engaged by the contractor. If the contractor
has a reasonable objection against a Nominated sub-contractor, he shall not be
employed by the contractor with consent of the Architect.
3. It is the contractor’s responsibility to get the work done as per the requirements of
the contract from the sub-contractors and the nominated sub-contractors.
4. For all the practical purposes the General Contractor shall treat a nominated sub-
contractor same as sub-contractor. Nominated sub-contractor shall carry out the work
as required by the contract and to the satisfaction of the contractor and of the
Architect.
5. Except the provision of “Fire Insurance”, which is to be done by the General
Contractor, all other provision of the contract on part of the contractor is to be
observed by the nominated sub-contractors.
6. The nominated sub-contractor as well as the sub-contractor shall indemnify the
contractor against the same liabilities in respect of their works as those for which the
contractor is liable to indemnify the owner under this contract, such as act of
negligence, omission, default of sub-contractor or his servants etc.
7. The contractor shall pay the sub-contractor within 14 days after the receipt of a
certificate for the payment for the Bill in which sub-contractors work is included.
8. The architect shall have right of Access to workshops and other places of works of sub-
contractors and nominated sub-contractors. [This gives an authority to the Architect if
he wishes to inspect fabrication windows, grilles, M.S. Gate, M.M. Tiles or any other
materials etc. at the workshop or factory.]
9. The contractor can retain the proportionate amount from the payment due to the
Nominated Sub-Contractor, proportionate to the retention kept by the Architect in
R.A. Bill of the contractor.
10. The Architect has an authority to ask the contractor whether payments are made to
the sub-contractors and the Nominated sub-contractors as per the previous certificate
of the payment, before issuing the next certificate.
11. The contractor shall not grant an extension of time to a Nominated sub-contractor
without the permission of the Architect.
12. The contractor shall allow for general attendance upon sub-contractors and also free
use of plant scaffolding, use of sanitary conveniences, storage facilities for material
and reasonable facilities for carrying out their works.
Prime Cost
Even in an item rate tender and contract, it is sometimes convenient to include in
Contract Bill and in contract sum ‘Provisional Sum’ in respect of materials or goods to be fixed
in the construction work about which details are not final or the owner wants his freedom to
finalize it later.

Separate Contract
The items of work that are with the main contractor are carried out by other agencies
which are called sub-contractors. This includes nominated sub-contractors as well. The owner
has no separate contract or an agreement signed with these agencies. The sub-contractors
work under the control of the main contractor. In order to complete the project in all the
respects, there could be certain agencies required to be engaged. Their work could be out of
the scope of the main contractor. By including this clause, the owner reserves his right to
engage such other contractor, while the main contractor is still working on the site.

Variation, Provisional and Prime Cost Sum: Explanation

During the construction, the architect may find it necessary to alter or modify the
design or item of construction and may ask the contractor accordingly. This change in item is
called ‘Variation’ in work. As per this clause, the contract is not vitiated because of ‘variation’.
The architect may instruct the contractor to make the changes in the abstract of an item.
PROVISIONAL SUM: At the estimate level, without going into the details, a certain amount
based on earlier experience, is provided in the tender against an item by the architect, usually
for purchases of goods. This amount is further included in “Contract Sum”.

Certificate and Payments

It is one of the responsibilities under taken by the Architect, as per this contract to work like
an ‘auditor’. Any payment to be made by the owner to the contractor shall be made only with
the recommendation of the Architect.

Claim for Extra

If instructions of the Architect given on the site involves an extra work where by the
contractor may plan to claim an extra rate, the contractor shall inform the Architect before
proceeding with the said work on the site.

Deduction for Uncorrected Work

Any work damaged or not done in accordance with the contract, and in the opinion of
the Architect, it is not likely or helpful to try to correct it or improve upon it, the Architect in
such a case reduce or make an equitable deduction from the contract price of that work.

Fluctuation
This clause is not suitable in present day situation. In the developing economy of the
country, the market is expected to be unsteady. Instead of this clause, the clause of “Basic
Rates of Materials” as explained is recommended.

Unfixed Goods and Materials

As per this clause, the building material brought on the site shall not be removed from
the site without a written instruction of the Architect, more as when the value of such
material on the site is certified by the Architect for the payment in R.A. Bill. The reason being
since now, the owner has paid for that material, it belongs to the owner; therefore it shall not
be removed from the site without permission except for its use in the construction. However,
safety and security of the material on the site shall be the contractor’s responsibility.

Materials and Workmanship

1. All building materials and workmanship shall be as per the relevant code of I.S.I.
specifications. The contractor shall remove from the works site any material and/or
work, which in the opinion of the Architect are defective or unsuitable and shall
substitute a proper material and/or a workmanship at his own cost.
2. Whenever a special make or the brands are called for, they are mentioned as a
standard. Others of equal quality may be used with a written approval from the
Architect. Such an approval must be taken within 30 days after signing of the contract.
Thereafter a request for substitution may be denied.

Defects
The contractor shall make good, at his own cost and to the satisfaction of the
architect, all the defects, shrinkages, small faults arising in the work that may appear within
“Defects Liability Period”.
The contractor shall make good the defects as directed by the architect, at his own
cost, within a reasonable time as given by the architect.

Water proofing of Terrace

The main contractor, preferably along with the sub-contractor for the water proofing
work shall give in writing on stamp paper, a guarantee for Ten Years to the owner, about the
water proofing work.
Extension
The extension of time to complete the project can be given by the architect only under
certain conditions given below. The contractor has to give a written notice to the architect
immediately if he has lost the time of work for the reasons beyond his control such as given
below. If the reason is true and reasonable, the architect shall inform in writing to the
contractor and the owner as well, the number of days of extension granted beyond the date
of completion.

Damages for Non-completion on Time

If the contractor fails to complete the work by the date specified in ‘Appendix’ or
within extended time given by the architect, then the contractor shall pay the owner or allow
to the owner to deduct the penalty from any amount due to the contractor. This amount of
penalty shall be worked out at the rate of interest agreed upon and written in Appendix, on
the contract amount for the period of ‘Extra Time’ taken by the contractor to complete the
project.

Virtual Completion and Defects Liability Period

When in the opinion of the architect, the project (work) is practically completed; the
Architect shall issue immediately a certificate (a letter to the owner with a copy to the
contractor) to that effect. The date of completion of the project stated in this letter shall be
referred for all the purposes of the conditions on this contract.

Loss and Expense Caused by Disturbance of Regular progress of Work

This is one
evidence that this is a balanced contract. If there be any hindrance in the normal progress of
work on the site because of the following reasons, this contract provides a monetary
compensation to the contractor. The contractor shall make a written application to the
architect stating the cause of hindrance and the direct loss or expense incurred by him. If the
contractor is not reimbursed by the payment under any other provision in this contract, then
the architect shall ascertain the amount of such loss or expense and add that amount to the
certificate for payment to the contractor.

Injury to Persons
In case of a road accident, the owner of the vehicle is held responsible. He may not be
driving himself or even he may not be present in the car at that time of the accident. But the
law holds the owner also responsible. Similarly, if there be any accident on the work site and
if someone is injured or killed, it becomes a Police Case. As per the law, not only the
contractor but also the owner of the property and the architect are arrested for an inquiry. It
is not only injury to a person or loss of life, but damage or loss to the property of others
become a matter of liability and have to be compensated. In order to protect the owner from
a legal hustle; this clause is included in the contract. As per this clause, the contractor
indemnifies the owner against any liability, loss, claim or legal proceedings whatsoever arising
under any law in respect of a personal injury to or a death of any person on the work site;
unless due to the act of neglect of the owner or of any person for whom the owner is
responsible.

Insurance against Injury to Persons or Property

This clause requires the contractor to take necessary insurance policy to protect
everyone on the site against an injury and damage to any property. The contractor shall in
turn make it necessary to the sub-contractors to take a similar insurance to cover their
workers.

Insurance of the Works against Fire etc

Your attention is drawn to the footnote on the page of the General conditions of
contract. This Clause is divided into three parts. 1) Clause A and B is applicable to the new
building under the construction where the contractor is required to take the policy. Clause 2)
A and B is applicable to the erection of a new building if the owner is to take a policy. And 3)
A, B up to B (iii) is applicable to the alterations of or an extension to the existing building.

Determination by the Owner

A good form of an Agreement or a Contract (includes partnership in business etc) shall
have provision and procedure laid down to break the contract. This contract document also
lays down a definite procedure for both the parties to contract, to break the contract under
certain situation.

Determination by the Contractor

This clause is one more evidence to prove that this is a balanced document. It gives
the owner right to break the contract under certain conditions. Similarly, it provides an
authority to the contractor to get away from the bonds of this contract under a particular
situation.

Co-ordination of Work
 This clause requires the contractor to hold the meetings on a site from time to time
with his sub-contractors, persons, agencies on the separate contracts and with the Architect.
A good contractor to manage his work properly shall hold such meetings on his own without
you asking for it. But in a way, this clause authorizes an Architect to ask the contractor to call
all the sub-contractors and the agencies to be present on a site on the date and time of the
site visit of the Architect for a meeting with the Architect. The time of periodical site visits of
the Architect (or his representative or a project architect etc) shall be prefixed and always
known to the contractor; so that it shall be the responsibility of the contractor to present
everyone of them on the site including contractor’s Site-Engineer. The clerk of works is
supposed to be on the site and more particularly at the time of the visit of the Architect. In
this reference, the word ‘Architect’ means the Architect himself or his representative who is
looking after the project called a project Architect or a Structural Engineer – Consultant,
working for the Architect.

Labour
These contract conditions prevent an employment of a child labour below 14 years of
age. When a female labour is engaged, the contractor shall make a necessary provision for
safeguarding the small children.

Protection of Trees and Shrubs

An Architect as a tree lover shall implement this clause to protect existing or newly
planted trees and shrubs on the site.

Excepted Matters
It would be an endless arguments and discussions if all the aspects of the work are
kept open for an argument. Hence, this clause.
As per this clause, in certain matters, decision, opinion, direction of the Architect shall
be final conclusive and binding on both the parties to this contract.

Arbitrator
Any dispute in our civilized society can be or shall be referred to a Court of Law. But to
seek a justice from the court of law is a lengthy process and can be delayed by either of the
parties. “Justice delayed is justice denied”. Therefore, for the speedy settlement of matters,
the process of Arbitration is built in the contract conditions.

Protection and Cleaning

This clause requires the contractor to protect and prevent the work from the damage
by providing a temporary covering, a boxing or other construction as required, during the
progress of work till handing over building to the owner.

Tolerance
The dimensions called for on the drawings shall be observed properly in the work
carried out on the site as well as in the fabrication of elements. The contractor shall exercise
every care to ensure that all the structural members are sufficiently in plumb and true to the
dimensions called for on the drawings. In case of a separate contract, the contractor whose
work does not confirm to the dimensions called for shall be liable for all the expenses, which
may incur for a rectification or a replacement as required by the Architect. Architect’s
decision in this respect shall be final and binding on the parties concerned.
ARBITRATION
Arbitrator
Explanation: Any dispute in our civilized society can be or shall be referred to a Court
of Law. But to seek a justice from the court of law is a lengthy process and can be delayed by
either of the parties. “Justice delayed is justice denied”. Therefore, for the speedy settlement
of matters, the process of Arbitration is built in the contract conditions. as per this clause –
1. Any or all disputes and difference arising out of or in connection with the contract,
during the progress of work or after the completion, before or after the
determination, the abandonment or the breach of contract shall be refereed to and
settled by the ARCHITECT of the contract.
2. In case of the expected matters, the decision of the Architect is final and binding on
both the parties and there shall be no ARBITRATION of these matters.
3. In case, if either of the parties to the contract be dissatisfied with the decision of the
Architect in matters other than the ‘expected matters’, shall give within 28 days after
receiving such a decision, a Notice to the other party through the Architect, regarding
his desire to go in for Arbitration.

Procedure to be followed:-
A) Single Arbitrator or Sole Arbitrator
If both the parties agree or concur to the selection of an Architect who is a follow
member of the Indian Institute of Architects; should approach him and appoint him as the
arbitrator, to study and settle the disputed matter. Both the parties shall present their case
before the Single Arbitrator, personally or through an Attorney, on hearing both the parties
and studying the papers etc. The Arbitrator shall within a reasonable time, give his Award, i.e.
the decision, which shall be final and binding on both the parties. The Arbitrator shall give the
directions in this Award regarding the cost and the incidental charges of an Arbitration to be
borne by whom etc. This submission to an Arbitrator shall be deemed to be a submission to
an Arbitration within the meaning of the Indian Arbitration Act, 1899 or any modification
thereof, for the time begin in force.
B) Joint Arbitration
In case if there is no agreement between the two parties upon the appointment of a
single Arbitrator, then each of the parties shall appoint his own Arbitrator who shall be a
fellow member of the Indian Institute of Architects, called joint Arbitrators.

Umpire
The Joint Arbitrators before proceeding with their work shall mutually agree upon a
third person who shall be an Architect and a fellow member of the Indian Institute of
Architects. The Joint Arbitrators shall approach such a third Architect and request him jointly
to be their umpire, in case if it is needed. Upon his acceptance to work as an umpire, the Joint
Arbitrators shall proceed with their work.
The Joint Arbitrators shall hear the case jointly, study the papers etc. and try to come
to an agreement about their AWARD. If the Joint Arbitrators agree upon their decision on all
the points of dispute, then they can give their AWARD. If the Joint Arbitrators defer in their
decisions of the points of dispute, then the Joint Arbitrators shall refer the matter of the
Umpire. The Umpire’s decision shall be final and binding on both the parties. One should note
here and appreciate the importance of appointing an umpire before commencing the hearing
of the case by the joint Arbitrators. The selection and appointment of the umpire shall be
done with unbiased and impartial mind. Therefore, it shall b done before the start of a
hearing.

Questions
Two Marks:
1. Define a contract?
2. Name two conditions of void contract?
3. What is meant by arbitration?
4. What is a lump sum contract? Mention any two advantages.
5. What are the elements of contract?
6. What is Indian Stamp Act?
7. What are the contents of contract document?
8. What are the types of tender applicable to contract?
9. Explain interim award?
10. Explain the three types of Arbitration?
11. Write short notes on arbitrator.
12. What is retention amount?
13. Why is necessary for a contractor to visit the construction site prior to tendering?
14. What is the role of a ‘clerk of works’ in a construction site?
15. Explain the importance of Articles of Agreement in a contract document.
16. Differentiate between arbitrator and umpire.
17. What do you understand by the term award?
18. A tenderer is required to visit the construction site before offering his tender. why?
19. What is your understanding of the term ‘Retention Amount”?
20. Explain the importance of certificate in a construction process.
21. What are liquidated damages?
22. What is the meaning of the term determination of contract?
23. Why is the necessary for a tenderer to inspect the construction site before tendering?
24. Who is clerk of works? What are his duties?
25. What is the meaning of the term ‘Award’ in an arbitration process?
26. What is the purpose of certificates in a construction agreement?
27. Who is resident engineer?

Sixteen Marks:
1. Explain briefly the procedure you would follow in the selection of a contractor for a
building project
2. What are the qualifications of an arbitrator? What are the advantages of settling dispute
through arbitration?
3. Explain the contents of Articles of Agreement.
4. Enumerate the conditions of a valid contract.
5. Explain in detail a contract document?
6. Describe in detail the factor to be considered while calling a Lump sum contract?
7. Describe in detail the elements of contract?
8. Establish the procedure for opening and acceptance of tenders. Compare and contrast
Item Rate tender with Lump Sum tender establishing where each is recommended?
9. Explain contract and when does it become void? Establish the procedure and precautions
to be adopted to avoid variation and extras in contractors bill.
10. Explain articles of agreement and its importance in the actualization of a contract Explain
Breach of contract and termination of contract by the employer.
11. Elucidate the purpose and advantages of Arbitration. Compare and contrast Arbitration
Agreement Order of Reference?
12. Elucidate on the appointment and powers of an Arbitrator. Compare and contrast
Arbitration and Valuation. What is Award?
13. Discuss in detail the conditions for termination of a contractor as per the contract.
14. Explain the importance of Articles of Agreement in a contract agreement.
15. Elaborate on the conditions and duties pertaining to an architect in a contract.
16. What is the significance of an arbitrator? How is an arbitrator selected?
17. What are the types of arbitration? Discuss in detail the situation under which the varying
types can be implemented.
18. Difference between Item rate tender and Lump sum tender. (8)
19. Retention amount is Security advance paid in installments. you agree? Give reasons for
you reply. (8)
20. What is the role of an architect in the certification process? (8)
21. Explain the procedure involved in giving an interim certificate. (8)
22. What are the precautions an architect should take while issuing a final certificate? (8)
23. What is defects liability period in a contract? (8)
24. Explain the circumstances under which a contract can be terminated by a contractor and
an employer. (8)
25. Differentiate between ‘assigning’ and ‘subletting’ as mentioned in the general conditions
of contract. (8)
26. Between whom can disputes arise in a building contract? How will the arbitration process
help in settling the disputes? (8)
27. Explain the provisions incorporated in a contract document with regard to arbitration.
28. Which are the matters that are not open for arbitration? Why are they beyond the
purview of arbitration? (8)
29. Under that situations an umpire will be appointed in arbitration process. What is his role?
30. What are the advantages and disadvantages of Item rate and labor tender? (10)
31. Explain briefly “articles of agreement” in a contract document.
32. Elaborate on the conditions pertaining to architects on contract. And how he will execute
the contractors bill certification.
33. Define the role and importance of arbitration. (8)
34. Explain the different types of the arbitration. (8)
35. Explain the difference between the Interim Bill and Final Bill raised by the contractor with
particular reference to architects responsibility. (8)
36. Explain the importance of certificates issued by an architect. (8)
37. As per the construction agreement, a contractor has certain obligations in facilitating
supervision of construction by an architect. Elaborate on the same. (8)
38. Explain the role of Engineer in-charge in a construction site.
39. Bill of quantities plays an important role in a Item Rate Tender. Give reasons. (8)
40. Explain in detail the contents of Appendix in construction agreement and briefly touch on
the importance of at least 4 item of the appendix.
41. Differentiate between mobilization advance and security deposit.
42. What are the obligation of contractors with regard to administration and execution of
work as per the construction agreement?
43. Why should there be a termination clause in any agreement. what circumstances can a
contract be terminated by an employ.
44. What are the various methods by which a dispute between contractor and an employer
be resolved?
45. What are the advantages of arbitration when compared to a process.
46. Differentiate between sole arbitrator and joint arbitrators. what circumstances will an
umpire be appointed.
47. What is an award and how is it binding on the parties involved arbitration.
48. Bring out the differences between item-rate, lump sum an demolition tender.(8)
49. Elaborate on the importance of Bills of Quantities in an Item-rate tender. (8)
50. As per the contract agreement contractors are obliged towards facilitating architects
supervision. Elaborate. (8)
51. What are the provisions in the contract agreement, for a contract to terminate the
agreement? (8)
52. What is the duty of an architect when a contractor raises a Bill? (8)
53. What are certificate? In issuing a final certificate, an architect has to exercise certain
precautions. What are they? (8)
54. What are the advantages of settling a dispute through arbitration process? (8)
55. They are certain ‘Excepted matters’ beyond arbitration. What are they? (8)
56. When joint arbitrators have disagreement over solving a dispute. what happens? (8)
57. What is an arbitration agreement? (8)
58. Explain the role of ‘umpire’ in an arbitration process.
******
NEW TRENDS IN PROJECT FORMULATION AND EXECUTION

Turn key offer (Expression of interest, Request for Proposal Document)

A turnkey or a turnkey project (also spelled turn-key) is a type of project that is
constructed so that it could be sold to any buyer as a completed product. This is contrasted
with build to order, where the constructor builds an item to the buyer's exact specifications,
or when an incomplete product is sold with the assumption that the buyer would complete
it.
Turnkey refers to something that is ready for immediate use, generally used in the
sale or supply of goods or services. Turnkey is often used to describe a home built on the
developer's land with the developer's financing ready for the customer to move in. If a
contractor builds a "turnkey home" they frame the structure and finish the interior.
Everything is completed down to the cabinets and carpet. "Turnkey" is commonly used in the
construction industry, for instance, in which it refers to the bundling of materials and labor by
sub-contractors. 'Turnkey' is also commonly used in motorsports to describe a car being sold
with drive train (engine, transmission, etc.) to contrast with a vehicle sold without one so that
other components may be re-used.
Similarly, this term may be used to advertise the sale of an established business,
including all the equipment necessary to run it, or by a business-to-business supplier
providing complete packages for business start-up. An example would be the creation of a
"turnkey hospital" which would be building a complete medical center with installed medical
equipment.
(Expression of interest, Request for Proposal Document, Conditions for inviting
turnkey offer, finalization of the bidder). Same processes as followed in tender.

Current practices in Project execution:

1. BOT (build-operate-transfer)
 2. BOOT (build-own-operate-transfer)
3. BOO (build-own-operate)
4. BLT (build-lease-transfer)
5. DBFO (design-build-finance-operate)
6. DBOT (design-build-operate-transfer)
7. DCMF (design-construct-manage-finance)

1. Build operate and Transfer (BOT)

Build–operate–transfer (BOT) or build–own–operate–transfer (BOOT) is a form of
project financing, wherein a private entity receives a concession from the private or public
sector to finance, design, construct, and operate a facility stated in the concession contract.
This enables the project proponent to recover its investment, operating and maintenance
expenses in the project.
Due to the long-term nature of the arrangement, the fees are usually raised during
the concession period. The rate of increase is often tied to a combination of internal and
external variables, allowing the proponent to reach a satisfactory internal rate of return for
its investment.

Introduction
In recent years, a growing trend emerged among governments in many countries to
solicit investments for public projects from the private sector. The main reasons for this trend
are a shortage of public funds and hands off approach of government agencies. The Build
Operate Transfer approach (BOT) is an option for the government to outsource public
projects to the private sector. With BOT, the private sector designs, finances, constructs and
operates the facility and eventually, after a specified concession period, the ownership is
transferred to the government. Therefore, BOT can be seen as a developing technique for
infrastructure projects by using private initiative and funding. Such infrastructure projects
include a wide array of public facilities with the primary function to serve public needs, to
provide social services and promote economic activity in the private sector. The most
common examples are roads, bridges, water and sewer systems, airports, ports and public
buildings (Vaughan and Pollard, 1984).
In addition to government, the private sector may initiate BOT projects when there
are limited funds available and there are no enough resources to execute successfully a
required building project. Examples can be seen in non-profit hospitals and educational
institutions as well as manufacturing facilities. However, none of those cases are included in
this book, which focuses on government related projects. Several project delivery schemes
have developed in recent years (Diaz, 1994). The traditional design-bid-award was enhanced
by the introduction of the project manager as a consultant to the owner, where project
manager advises the owner in formulating a building strategy and supervises the construction
on the owner’s behalf. As a consulting service, the project manager works in parallel with the
architect for a flat rate fee, with no fiduciary or construction risk. Design- build is a one-stop
shop for design and construction. Architects and contractors work under one contract, where
total responsibility for all stages of the project is placed with both parties. Design-build
projects are often of limited sophistication, but hold considerable promise for the future as a
partnership process of project delivery. Bridging allows the separation of schematic design
from design development, with the latter grouped together with the general contractor. Such
a project delivery scheme allows THE BUILD OPERATE TRANSFER APPROACH 5 for more
sophistication and for transfer of design across geographical and economic boundaries.
With turnkey contracts, the owner buys a package of site, design and finished building,
while the developer secures financing, manages the project flow and coordinates the
architect and the contractor. Such contracts are usually limited in complexity1. BOT is closer
to total product delivery where in addition to financing and development, the supplier is also
responsible for the operation of the facility.

BOT in construction
Build Operate Transfer is a major startup business venture where private
organizations undertake development and operation of a facility normally done by the
government. The termination of the private sector involvement occurs at the return of the
ownership of the facility to the government after a fixed concession period, usually 25 to 40
years (Tiong, 1990). Among the various definitions of BOT, the following definition is adopted
in this book that constitutes the premise for conducting this research. In the BOT approach, a
private party or concessionaire retains a concession for a fixed period from a public party,
called principal (client), for the development and operation of a public facility. The
development consists of the financing, design and construction of the facility, managing and
maintaining the facility adequately, and making it sufficiently profitable. The concessionaire
secures return of investment by operating the facility and, during the concession period, the
concessionaire acts as owner. At the end of the concession period, the concessionaire
transfers the ownership of the facility free of liens to the principal at no cost3. A key
characteristic of BOT is private financing. In BOT, the government subcontracts the entire
development process, including the associated risks, to the private entity. One of these risks is
financing, which must be obtained by the concessionaire, who is ultimately responsible for all
aspects of the project.
A prerequisite for private financing is a need for the facility to be developed; for
example, a highway extension due to increasing traffic jams, more bed space in detention and
correctional facilities due to an increase in crime and the number of incarcerated individuals,
a tunnel or bridge to solve traffic problems and facilitate accessibility, or a sewage system or
power generation to support the growth in population and industry. If there is no obvious
requirement for the facility, private parties will refuse to participate and provide financial
support. Only after market analysis justifies a need will private parties be willing to financially
participate as well as become involved in developing the facility. BOT is just one of the many
different project delivery schemes within the context of privatization or public-private-
partnerships. The two other schemes that appear most similar to BOT are Build Own Operate
(BOO) and Build Transfer Operate (BTO). In all three cases, the private party retains revenues
from operating the facility.
In BTO, the private party transfers the ownership of the facility directly after the
delivery and operates the facility on behalf of the principal. In BOO, the private party retains
ownership of the facility, makes returns on investment by operating it for its useful life, and
may sell it at any point at market value. Besides the three most common approaches, BOT,
BOO and BTO, other variations can also occur (Fig. 0.3). All differ from each other in the way
the level of risk is divided between the private and public parties. Each form is a kind of a
public-private-partnership but all are unique in allocating risks to the individual parties.
MAJOR PARTICIPANTS IN BOT PROJECTS
Five major participants are identified in every BOT project and Fig. 0.4 shows the
typical structure. Very simply, the principal grants the concession to the concessionaire. The
concessionaire, usually a consortium of companies, undertakes the financing and
development of the project. Financing is obtained from sponsors and lenders. The contractor
builds the facility and the operator runs the facility.

Principal
In a BOT project, the principal is usually a government agency, a local or federal
government body that recognizes the need for a public facility but is unable to financially
support the project. The government agency is thus forced to look for alternative options.

Concessionaire
After the identification of the need for the facility, the government, following a due
process, will grant a concession to the concessionaire. The concessionaire is usually a
consortium and takes the responsibility of developing (designing, financing and constructing),
maintaining and operating the facility, on behalf of the principal. The concessionaire is the
owner of the facility during the concession period and realizes profits on the initial
investment through the usage of the facility

Investors
 Financing is supplied by the private sector and the investors include both shareholders
and lenders. The shareholders invest money in exchange for equity, and lenders support the
concessionaire during negotiations with the principal with promises for loans to be available
during the development of the project. Lenders may include banks, insurance companies
and bond holders.

Contractor
The concessionaire commissions a contractor with the construction of the facility. In
most cases, the contractor is part of the concessionaire’s consortium and involvement is
favored by all concerned parties. During the early stages of the process the contractor’s
involvement assures the consortium of the most effective and efficient design and execution
of the project. Ultimately, the contractor is responsible for the construction of the project and
for hiring subcontractors, suppliers and consultants.

Operator
The operator is also in the concessionaire’s service and manages the operational stage
of the facility. Similar to the contractor, the operator is usually part of the concessionaire’s
consortium, because of the critical role in the revenue stream. In addition, the importance of
operating knowledge for programming, financing, design and construction is required. Often
the operator is supported by a government agency or in some cases, is the agency. In the
Wijker tunnel case, the facility is entirely operated by the government maintenance
department for bridges, dikes and roads, and in

STAGES OF BOT PROJECTS

Preliminary study
The preliminary study usually takes place prior to the involvement of the
concessionaire. This stage is executed by, or on behalf of, the principal. Feasibility studies are
necessary to prove the forecasted success of the project, in order to attract private funding.
Alternatively, a private party may identify a need and initiate the BOT project and in such a
case, the preliminary study is conducted by the private entity with limited government
involvement.

Selection process
The selection process depends on who initiates the project. In a public selection
process where the initiative is coming from the public sector (government), a request for
qualification is distributed. After receiving applications, the government selects a few
consortia to submit proposals (request for proposals) and from these a concessionaire is
chosen. During this process, the consortia will group interested parties as required for the
efficient and adequate execution of the project. Alternatively, in a speculative selection
process, the private sector initiates the project and contacts the appropriate government
agency for approval. The project is granted after proper negotiations.

Project implementation
After the selection stage and the foundation of the concessionaire, the proposal is
finalized. Together with all the involved parties, the concessionaire develops a detailed
program and preliminary design, and applies for permits. This process can be shortened if a
government agency is actively participating. Once permits are issued, the final concession
agreement is signed. During the project implementation stage, in addition to the interests of
the involved parties, the interests of the external parties also require attention. The
influential power of politics, the opposition, and environmental agencies are significant
factors and, if not taken into account, may hinder or even dissolve the project.

Construction
Once the necessary permits are obtained, construction begins. Often BOT projects are
fast track projects where the design is not complete when construction starts. This is feasible
because of congruent financial interests within the members of the consortium and the
pressing need to complete construction and start collecting revenues. Less controversial
designs allow a quicker construction period with fewer uncertainties.

Operation
During the operation stage, the facility is operated and maintained by the operator
who is paid by the concessionaire. The concessionaire, as the owner of the facility during the
operation period, is obligated to operate the facility in a manner that adequately services the
public user. The concessionaire is also responsible for maintaining the facility in working
condition. Both the concession and operation agreements specify the condition of the facility
at the time of transfer to the principal.

Transfer
The facility is transferred to the principal, usually at no cost (Fig. 0.10). Transfer time is
determined in the concession agreement. Should the principal choose to take over the facility
earlier than the agreed concession period; the concessionaire will be financially compensated
for the investment. After transfer, the principal is the sole owner of the facility and can
choose to operate and maintain the facility directly or hire an independent operator.
Although a transfer has not taken place in any of the cases in this book, it can be expected
that the principal will continue with the same operator, as in the concession period, due to
history of involvement and experience with the facility. If the principal is the government, it
may choose after transfer not to charge the final users anymore.
In essence, the facility at that time will have become public, and its maintenance and
operation can be funded by indirect taxation. Another issue to be considered is to what
extend the principal wants to receive the facility. After a typical concession period of 30 years,
the facility may have become obsolete and could need major rehabilitation or require more
resources to operate than a new facility. In prisons for example, the facility may be
inadequate, or in a power plant the method of generating energy may be inefficient. Active
participation of the principal during the concession period may keep a facility up to standards
or, at transfer, a BOT project could in fact lead to a new BOT project.
Due to the external and internal particularities of every BOT project, the actual
organization and process may be different to the presentation in the previous paragraphs.
The starting and completion period of each stage in a BOT project can change due to a variety
of factors, both external and internal to the project. Among them are the complexity of the
development process, government regulations, political influences, concerns of
environmental groups, and neighborhood pressures. Such effects have an m a j o r influence
on the progress of a project, likely to stall or change “theoretical” models. Thus, the
development of a precise and detailed framework applicable for every BOT project is not
possible and this must be taken into consideration for each case study in this book that
presents the framework of a particular project and its external and internal conditions.
2. Build Lease operate and Transfer (BLOT)
BLOT (build, lease, operate, transfer) is a public-private partnership (PPP) project
model in which a private organization designs, finances and builds a facility on leased public
land. The private organization operates the facility for the duration of the lease and then
transfers ownership to the public organization.
The BLOT model is one of several related PPP project types including BOOT (build,
own, operate and transfer) and BOO projects (build, own, operate).
 BUILD, designed and tailor-made as per building façade.
 OPERATE, install, commission and operate.
 LEASE, on monthly rentals for minimum five years contract.
 TRANSFER, thereafter transferred to you at an agreed value.

3. BOO
BOO (build, own, operate) is a public-private partnership (PPP) project model in which
a private organization builds, owns and operates some facility or structure with some degree
of encouragement from the government. Although the government doesn't provide direct
funding in this model, it may offer other financial incentives such as tax-exempt status. The
developer owns and operates the facility independently.
The BOO model is one of several related PPP project types including BOOT (build,
own, operate and transfer), BLT (build, lease, transfer) and BLOT (build, lease, operate,
transfer).

4.BOOT (build-own-operate-transfer)
A BOOT structure differs from BOT in that the private entity owns the works. During
the concession period the private company owns and operates the facility with the prime goal
to recover the costs of investment and maintenance while trying to achieve higher margin on
project. The specific characteristics of BOOT make it suitable for infrastructure projects like
highways, roads mass transit, railway transport and power generation and as such they have
political importance for the social welfare but are not attractive for other types of private
investments. BOOT & BOT are methods which find very extensive application in countries
which desire ownership transfer and operations including. Some advantages of BOOT projects
are:
 Encourage private investment
 Inject new foreign capital to the country
 Transfer of technology and know-how
 Completing project within time frame and planned budget
 Providing additional financial source for other priority projects
 Releasing the burden on public budget for infrastructure development

5.BLT (build-lease-transfer)
Under BLT a private entity builds a complete project and leases it to the government.
On this way the control over the project is transferred from the project owner to a lessee. In
other words the ownership remains by the shareholders but operation purposes are leased.
After the expiry of the leasing the ownership of the asset and the operational responsibility
are transferred to the government at a previously agreed price. For foreign investors taking
into account the country risk BLT provides good conditions because the project company
maintains the property rights while avoiding operational risk.
6.DBFO (design-build-finance-operate)
Design–build–finance–operate are a project delivery method very similar to BOOT
except that there is no actual ownership transfer. Moreover, the contractor assumes the risk
of financing till the end of the contract period. The owner then assumes the responsibility for
maintenance and operation. Some disadvantages of DCMF are the difficulty with long term
relationships and the threat of possible future political changes which may not agree with
prior commitments. This model is extensively used in specific infrastructure projects such as
toll roads. The private construction company is responsible for the design and construction of
a piece of infrastructure for the government, which is the true owner. Moreover the private
entity has the responsibility to raise finance during the construction and the exploitation
period. The cash flows serve to repay the investment and reward its shareholders. They end
up in form of periodical payment to the government for the use of the infrastructure. The
government has the advantage that it remains the owner of the facility and at the same time
avoids direct payment from the users. Additionally, the government succeeds to avoid getting
into debt and to spread out the cost for the road over the years of exploitation.

7.DCMF (design–construct–manage–finance)
Some examples for the DCMF model are the prisons or the public hospitals. A private
entity is built to design, construct, manage, and finance a facility, based on the specifications
of the government. Project cash flows result from the government’s payment for the rent of
the facility. In the case of the hospitals, the government has the ownership over the facility
and has the price and quality control. The same financial model could be applied on other
projects such as prisons. Therefore this model could be interpreted as a mean to avoid new
indebtedness of public finance.

Questions
Two Marks:
1. What are the advantages of a turnkey contract?
2. What are the various current practices in Project execution?
Sixteen Marks:
1. Explain BOLT form of project financing with a suitable case study.
2. Explain the conditions for inviting turnkey offer and the process involved in the
finalization of the bidder.

…..
 IMPLICATIONS OF GLOBALISATION IN ARCHITECTURAL PRACTICE

Globalization
Globalization (or globalization) is the process of international integration arising from
the interchange of world views, products, ideas, and other aspects of culture. Advances in
transportation and telecommunications infrastructure, including the rise of the telegraph and
its posterity the Internet, are major factors in globalization, generating further
interdependence of economic and cultural activities.
The term globalization has been in increasing use since the mid-1980s and especially
since the mid-1990s. [6] in 2000; the International Monetary Fund (IMF) identified four basic
aspects of globalization: trade and transactions, capital and investment movements,
migration and movement of people and the dissemination of knowledge. Further,
environmental challenges such as climate change, cross-boundary water, air pollution, and
over-fishing of the ocean are linked with globalization.
Globalizing processes affect and are affected by business and work organization,
economics, socio- cultural resources, and the natural environment.

In economical aspect
This is the integration of economies, industries, markets, cultures and policy-making
around the world.
Globalization describes a process by which national and regional economies,
societies, and cultures have become integrated through the global network of trade,
communication, immigration and transportation.
In the more recent past, globalization was often primarily focused on the economic
side of the world, such as trade, foreign direct investment and international capital flows,
more recently the term has been expanded to include a broader range of areas and activities
such as culture, media, technology, socio-cultural, political, and even biological factors, e.g.
climate change.

Example
Global trade has grown enormously since WWII; international trade in manufactured
goods alone has grown an estimated 100 times from $95 billion to $12 trillion in the 50 years
since 1955. However, globalization is much more than just trade.
In the last twenty years the breadth and depth of links between nations and
between regions has grown enormously. Communications costs have declined dramatically
allowing easy daily contact via the web and telephone, enabling the outsourcing of IT and
other Services, to India for example, and the rise in global work teams.
Other critical links are immigration and transportation, particularly airlines. The
International Organization for Migration estimates that there are two hundred million
migrants around the world today, they have largely immigrated from the emerging to the
developed countries, particularly to the U.S., Canada, Australia, the U.K. and Continental
Europe. Though there are tensions at times in Europe and elsewhere this immigration has
changed the face of these regions and increased the personal links across borders very
considerably.
Finally the transportation of people and goods has increased very substantially in the
last few decades with great growth on the number of flights across borders. During the 80s
and 90s growth rates in the number of airlines seats offered of 5% a year were not
uncommon, in 2010 there are over 2.3 million flights per month. With this great growth in
flights, this has allowed stronger business and personal links. Today we see a world much
more interlinked than in the past.

Advantages of Globalization
Globalization has several advantages on the economic, cultural, technological,
social, and other fronts. Globalization means increasing the interdependence,
connectivity, and integration on a global level, with respect to the social, cultural,
political, technological, economic, and ecological levels. It is the collaboration of countries
to provide a boost to trade practices, and also to reduce cultural differences. Its various
advantages can be felt all across the globe by one and all, and also to a very large extent
in our daily lives.
Obviously, now we understand that globalization is here to stay. Here are the most
common and important advantages that globalization, over time, has brought about for
mankind. These have been listed in no particular order, and are all vital in their own way.

Peaceful Relations
Most of the countries have resorted to trade relations with each other in order to
boost their economy, leaving behind any bitter past experiences if any. Nations now try to
raise capital and fortify their stand in international trade, rather than hosting a war. Thus,
globalization has induced international peace and security in a big way.

Free Trade
Free trade is a policy in which a country does not levy taxes, duties, subsidies or quota
on the import/export of goods or services from other countries. There are countries which
have resolved to free trade in specific regions. This allows consumers to buy goods and
services, comparatively at a lower cost.

Global Connectivity
Globalization has promoted international connectivity. With the use of the Internet,
the world has definitely become a smaller place. There has been exchange of thoughts and
ideas which has morally boosted and interlinked the mindset of people all round the world.

New Markets
The opportunities for new markets have increased dramatically. Numerous companies
have started investing in different countries and luring customers for their brands. These ever-
expanding markets have helped countries to raise capital in terms of foreign domestic
investments, thus improving the economy of the country.

Employment Opportunities
One of the most advantageous factors of globalization is that it fosters the generation
of employment. This happens due to the emergence of new companies and new markets,
where lots of skilled and unskilled labor is required. Immigration between countries also
increases, providing better opportunities for people all round the world. By providing
employment, globalization helps in increasing the standard of living of the people, and also
reduces poverty.

Quality Products
The competition among different companies finds place at an international level. It
becomes important for the companies to focus on quality goods and services, in order to
have a strong foothold in the market. The consumer is benefited in the process, and gets
quality products at cheaper rates. He/she also gets the opportunity to select his goods from
a large variety available in the market.

Environmental Protection
Mutual trade carried out by countries has brought about an understanding for the
protection of the environment from which they benefit so much. It has been accepted by
most countries that action needs to be taken in saving natural resources and wildlife,
without thinking about the boundaries that separate them. Global environmental problems
like cross-boundary pollution, over-fishing in the oceans, climate change, etc., are solved by
discussions and conventions.

Good for Developing Nations

It is claimed that globalization increases the economic prosperity of developing
nations. Developed countries invest in such countries with an aim of capturing new markets,
which helps them improve their infrastructure and technologies to international levels. A lot
of capital is invested in such projects, which in turn proves fruitful to the economy of the
developing nation as well.

Equality for All

Globalization has helped in creating international criminal courts, and international
justice movements are also launched to provide justice to people at a global level. Disputes
are solved through global standards such as patents, copyright laws, and world trade
agreements. Thus, it has ensured that people do not get discriminated with regard to country,
caste, creed or sex.

Ease of Transportation
With the advent of globalization, there has been an immense increase in the
transportation of goods and services worldwide. Things which took weeks for conveyance can
now easily be availed within a couple of days. Due to the development of containerization for
ocean shipping, transportation costs are reduced to a great extent, lowering the cost of
products in world markets.

Travel and Tourism

Globalization has promoted tourism to great heights. There are many places that have
tourism as their main source of capital generation. International trade among different
countries also helps in increasing the number of tourists that visit different places around the
world.

Unity in Diversity
 Globalization has helped in bringing about integrity and social understanding
everywhere. The dream for a global village becomes realistic after looking at the impact of
globalization. It has helped in removing some barriers that had kept the world divided on
various grounds. There has been propagation of democratic ideas among countries. Cross-
cultural contacts grow and cultural diffusion takes place, which helps in minimizing
differences, and promotes companionship.

External Borrowing
It has often been seen that a poor country is unable to provide adequate financing to its
companies, which proves to an obstacle in the development of the country on the whole.
With the help of globalization, there is opportunity for corporate, national, and sub-national
borrowers to have better access to external finance, with facilities such as external
commercial borrowing and syndicated loans.
It is a common belief that globalization plays a role just at international levels of trade
and commerce, but the fact is that it has played an important role in making our lives much
more comfortable too. The phones, apparels, gadgets or accessories that we use in our day-
to-day life are being available to us through globalization. Knowingly or unknowingly, we are
all under the impact of globalization, and more importantly it has helped in bringing
international peace and justice to mankind.

Disadvantages of Globalization:
1. Developed countries can stifle development of undeveloped and under-developed
countries.
2. Economic depression in one country can trigger adverse reaction across the globe.
3. It can increase spread of communicable diseases.
4. Companies face much greater competition. This can put smaller companies, at a
disadvantage as they do not have resources to compete at global scale.
5. Globalization can ruin the environment. Moving things from one area to another
wastes oil, etc.
6. Globalization can ruin local economies. There is a movement that wants to buy local
- especially organic foods.
7. Globalization can lead to hyper-specialization, which can be good, but also negative.
There is something great about being a generalist. Also what if something goes
wrong. To know things generally give an incredible perspective that specialists do
not have.
8. Globalization can be driven by people with "know how" and power and they can
systematically fleece the world.

What is the WTO?

The World Trade Organization (WTO) is the only global international organization
dealing with the rules of trade between nations. At its heart are the WTO agreements,
negotiated and signed by the bulk of the world’s trading nations and ratified in their
parliaments. The goal is to help producers of goods and services, exporters, and importers
conduct their business.

Goal
 There are a number of ways of looking at the World Trade Organization. It is an
organization for trade opening. It is a forum for governments to negotiate trade agreements.
It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially,
the WTO is a place where member governments try to sort out the trade problems they face
with each other.

Functions
Among the various functions of the WTO, these are regarded by analysts as the most
important:
(i) It oversees the implementation, administration and operation of the covered
agreements.
(ii) It provides a forum for negotiations and for settling disputes.
Additionally, it is the WTO's duty to review and propagate the national trade policies,
and to ensure the coherence and transparency of trade policies through surveillance in global
economic policy-making. Another priority of the WTO is the assistance of developing, least-
developed and low-income countries in transition to adjust to WTO rules and disciplines
through technical cooperation and training.
The WTO is also a center of economic research and analysis: regular assessments of
the global trade picture in its annual publications and research reports on specific topics are
produced by the organization. Finally, the WTO cooperates closely with the two other
components of the Bretton Woods system, the IMF and the World Bank.

Principles of the trading system

The WTO establishes a framework for trade policies; it does not define or specify
outcomes. That is, it is concerned with setting the rules of the trade policy games. Five
principles are of particular importance in understanding both the pre-1994 GATT and the
WTO:
Non-discrimination. It has two major components: the most favored nation (MFN) rule, and
the national treatment policy. Both are embedded in the main WTO rules on goods, services,
and intellectual property, but their precise scope and nature differ across these areas. The
MFN rule requires that a WTO member must apply the same conditions on all trade with
other WTO members, i.e. a WTO member has to grant the most favorable conditions under
which it allows trade in a certain product type to all other WTO members. "Grant someone a
special favor and you have to do the same for all other WTO members." National treatment
means that imported goods should be treated no less favorably than domestically produced
goods (at least after the foreign goods have entered the market) and was introduced to tackle
non-tariff barriers to trade (e.g. technical standards, security standards et al. discriminating
against imported goods).
Reciprocity. It reflects both a desire to limit the scope of free-riding that may arise because
of the MFN rule, and a desire to obtain better access to foreign markets. A related point is
that for a nation to negotiate, it is necessary that the gain from doing so be greater than the
gain available from unilateral liberalization; reciprocal concessions intend to ensure that
such gains will materialize.
Binding and enforceable commitments. The tariff commitments made by WTO members
in a multilateral trade negotiation and on accession are enumerated in a schedule (list) of
concessions. These schedules establish "ceiling bindings": a country can change its
bindings, but only after negotiating with its trading partners, which could mean
compensating them for loss of trade. If satisfaction is not obtained, the complaining
country may invoke the WTO dispute settlement procedures.
Transparency. The WTO members are required to publish their trade regulations, to maintain
institutions allowing for the review of administrative decisions affecting trade, to respond to
requests for information by other members, and to notify changes in trade policies to the
WTO. These internal transparency requirements are supplemented and facilitated by periodic
country- specific reports (trade policy reviews) through the Trade Policy Review Mechanism
(TPRM). The WTO system tries also to improve predictability and stability, discouraging the
use of quotas and other measures used to set limits on quantities of imports.
Safety valves. In specific circumstances, governments are able to restrict trade. The WTO's
agreements permit members to take measures to protect not only the environment but also
public health, animal health and plant health.
There are three types of provision in this direction:
 articles allowing for the use of trade measures to attain non-economic objectives;
 protection measures as a means of disguising protectionist policies.
 Articles aimed at ensuring "fair competition"; members must not use environmental
 Provisions permitting intervention in trade for economic reasons.
Exceptions to the MFN principle also allow for preferential treatment of developing
countries, regional free trade areas and customs unions.

GAT
The General Agreement on Trade in Services (GATS) is a treaty of the World Trade
Organization (WTO) that entered into force in January 1995 as a result of the Uruguay Round
negotiations. The treaty was created to extend the multilateral trading system to service
sector, in the same way the General Agreement on Tariffs and Trade (GATT) provides such a
system for merchandise trade.

Services are covered by GATS?

GATS consider education as a tradable service. GATS covers 12 service sectors
(Business; Communication; Construction and Engineering; Distribution; Education;
Environment; Financial; Health; Tourism and Travel; Recreation, Cultural, and Sporting;
Transport; "Other".). Two exceptions are services in the exercise of governmental authority
and air traffic rights

Laws are covered by GATS?

GATS apply to all measures affecting trade in services. GATS defines measures as all
laws, regulations and practices from national, regional or local government or non-
governmental bodies exercising powers delegated to them by government that may affect
trade.

How can services be traded?

GATS define 4 ways that all services can be traded based on modes of supply:
1. Consumption abroad of service by consumers travelling to supplier country (e.g.
Students studying abroad);
2. Cross border supply of a service to consumer country without the supplier (e.g. open
and distance education);
 3. Commercial presence of a supplier in consumer country (e.g. offshore
foreign universities); and
4. Presence of Natural Persons from supplying country in consuming country
(e.g. professors, researcher working outside their home country).

Rules does GATS have?

GATS have two broad categories of rules. The first category is general rules which
apply, for the most part, to trade in all services. The second category is rules applicable to
national commitments in specific service sectors.

Pre-requisites for Indian architects to work in other countries

The professional requirements for architects vary from place to place, but usually
consist of three elements: a university degree or advanced education, a period of internship
or training in an office, and examination for registration with a jurisdiction.
Professionals engaged in the design and supervision of construction projects prior to
the late 19th century were not necessarily trained in a separate architecture program in an
academic setting. Instead, they usually carried the title of Master Builder, or surveyor, after
serving a number of years as an apprentice (such as Sir Christopher Wren). The formal study
of architecture in academic
Institutions played a pivotal role in the development of the profession as a whole, serving
as a focal point for advances in architectural technology and theory.

Professional requirements by country

Australia
In Australia, the title of architect is legally protected but architects are registered
through state boards. These boards are affiliated through the Architects Accreditation
Council of Australia (AACA). The AACA's Architect Registration service also provides
accreditation for schools and assessments for architects with overseas qualifications for
the purposes of migration.
There are three key requirements for registration: a professional degree from a
school of architecture accredited by the AACA; at least two years of practical experience,
and; the completion of the architectural practice examination.
Architects may also belong to the Australian Institute of Architects (formerly the
Royal Australian Institute of Architects) which is the professional organization and
members use the suffix AIA after their name.
Most States have legislation which covers the use of the title "architect" and
makes it an offence for abusers of the title. As this can vary, it is essential to check the
relevant legislation applicable in each State.

Canada
In Canada, architects are required to meet three common requirements for
registration: education, experience, and examination. Educational requirements generally
consist of an M.Arch. Degree and are certified by the Canadian Architectural Certification
Board (CACB). For degreed candidates, the experience requirement is typically the Intern
Architect Program (IAP). The provincial associations of architects, by the authority granted
under their respective provincial Architects Act, require that Interns gain a minimum of 5,600
hours of work experience. The fundamental purpose of the pre-registration/licensing
employment period is to ensure that the Intern is provided with sufficient experience to
meet the standards of practical skill and level of competence required to engage in the
practice of architecture. This experience is diversified into four main categories and 16 sub-
categories, and must be completed working under the direct supervision of a registered
architect. At present, all jurisdictions use the Architect Registration Examination (ARE), a
series of seven computerized exams administered by the National Council of Architectural
Registration Boards (NCARB). As well, all jurisdictions recognize the Examination for
Architects in Canada (Ex AC), administered by the Pan Canadian Ex AC Committee. Upon
completion of the educational requirements, IAP, and examinations, one can apply for
registration/license with their respective provincial architectural institute. An annual fee
must be paid, and continuing education requirements met, in order to maintain a license to
practice.
The Royal Architectural Institute of Canada (RAIC) was established in 1907 and is a
voluntary national association representing more than 3,600 architects and Faculty and
graduates of accredited Canadian Schools of Architecture.[2] The RAIC aims to be "the voice
of Architecture and its practice in Canada". Members are permitted to use the suffix MRAIC
after their names. The suffix FRAIC (Fellow of the RAIC) is used by members of the RAIC
College of Fellows. Not all members of the RAIC hold accredited degrees in architecture, and
not all Canadian architects are members of the RAIC.

India
For carrying professional practice in India, architects are required to register with
Council of Architecture which is constituted by the Government of India under the
provisions of the Architects Act, 1972. The profession of an architect is governed by the
Architects Regulations, 1989 (as amended in 2003).
The COA registration service also provides accreditation for institutions providing the
degree of architecture, which is minimum five years duration including professional practice
for 16 working weeks (one semester). There are about 280 institutions including constituent
colleges/departments of universities, deemed universities, affiliated colleges/schools, IITs,
NITs and autonomous institutions which impart architectural education in India leading to
recognized qualifications.

Ireland
The main body for Architecture in Ireland is the Royal Institute of Architects in
Ireland, RIAI. Members may use the affix MRIAI and are registered to use the title
"Architect" in company stationery. The title has only recently been protected.
To become a registered Architect, it usually takes five years' full-time study in the
recognized schools of Architecture, followed by a minimum of two years approved
experience, and one of the recognized Professional Practice qualifications to gain admission
to the RIAI . In all, it takes a minimum of seven years to gain registration. More details can
be found on the RIAI website.
An alternate route to the Register is available through the ARAE (Architects Register
Admission Examination) this provides an opportunity for those without the required
educational and professional qualifications to enter the Register in Ireland. This examination
has operated successfully since 2009.
Architects' Alliance of Ireland is a group of long-established self-trained architects
created in response to Part 3 of the Building Control Act 2007. The Act seeks for the first time
to control the use of the term 'architect' in the Republic of Ireland. The group is lobbying for
an amendment of the legislation in order to restore the prior status of self-trained architects
in the profession.

Italy
To enter the profession in Italy, individuals are required to first obtain a degree in
Architecture, or a degree in Building Engineering/ Architecture, then to receive professional
qualification, obtained by passing a state exam which consists of four tests (three written
and one oral). To practice, the architect must register with the Ordine degli architect (Order
of Architects), which following a recent reform also includes planners, landscape architects
and conservationists (architectural heritage). The Orders are organized by province, and
registration is based on place of residence of the architect. Within the order there are
currently several classes and categories, depending on specific qualifications.
Italian law recognizes equal rights to Building engineers registered with the
appropriate order. Other professionals in the construction industry are the geometry
(survey or ) and the perito industrial(technical expert) specializing in construction; these
professionals have several limitations compared to architects and engineers, as they
follow a different and shorter course of study aimed at learning basic and complementary
aspects of work in construction.

Mexico
In Mexico, every profession is regulated by the Secretariat of Public Education,
including architecture. The Secretariat expends a Professional License (in Spanish cédula
professional), only after a recognized undergraduate degree is successfully achieved.
Therefore, it is legally sufficient for an architect to hold an undergraduate diploma and a
Professional License in order to practice. Registration to an official college or association of
architects is completely optional.
Nevertheless, there are other norms that regulate the building industry. In Mexico, as
it is common for constructions to be developed by individuals other than architects, these
regulations are quite unrelated to the architecture profession. For a major construction, it is
necessary for a professional to act as a Director Responsible of Construction (in Spanish,
Director Responsible de Obra or DRO). This position does require a minimum of two years of
professional experience in construction, as well as further evaluation and/or training.
However, it is uncommon for architects to assume this role; this is generally a position
preferred by and reserved to civil engineers.

Singapore
In Singapore, university study is required (such as the five-year course of study at the
National University of Singapore or certain approved foreign universities). Upon completion
of university, additional training by working for a minimum of two years under a registered
architect is required in order to become registered. Singaporean law governs the use of the
term "architect" and prescribes the requirements to be listed in the Register of Architects.
Membership in the Singapore Institute of Architects is a voluntary professional credential.

South Africa
 See also: List of architecture schools in South Africa
In South Africa, Architecture can be practiced in one of four categories, depending on
qualification: professional architect (Pr.Arch.), professional senior architectural technologist
(Pr.S.Arch.T.), professional technologist (Pr.Arch.T.), or professional draughts person
(Pr.Arch.Draught.). After graduating, one enters a two-year period of in service training as a
"candidate", and sits a Professional Practice entrance examination; one must also register
with the South African Council for the Architectural Profession. When studied through a
University, the programme is structured in two parts: the first is a three-year course leading
to a Bachelor of Architectural Studies or BSc (Architecture); the second is an additional two-
year postgraduate, professional degree– either the Bachelor of Architecture or Master of
Architecture, depending on University – which qualifies one to become an architect. A
student is able to exit university after obtaining the first degree, and will be able to become a
senior architectural technologist. When studied through a University of Technology (or a
comprehensive university), the courses in architecture are a three-year National Diploma,
and, after an additional year of study, the B.Tech degree. These enable a student to become
an architectural technologist or senior technologist, respectively. To become a draughts
person, one requires a (two year) National Certificate. The possibility of progression from one
category to the next has been provided for in the Regulations, and is under review.

Sri Lanka
Term "Architect" and "Chartered Architect" are protected titles in Sri Lanka under
the Architects Registration act of 1979 and the Sri Lanka Institute of Architects
(Amendment) Act, No. 14 of 1996.
In Sri Lanka, architects are required to meet three common requirements for
registration: education, experience, and examination. The Education can be from one of the
two available institutions; the degree course held by University of Moratuwa or by the part-
time course held by the City School of Architecture (owned by the Sri Lanka institute of
Architects) or by any foreign university recognized by the SLIA.
The University of Moratuwa has been offering a "3+2" program recognized by both
the SLIA and RIBA; a three-year B.Sc. (Built Environment) degree and a two-year masters, M.
Sc. (Architecture). This with the 2 years of appropriate work experience and successful
completion of SLIA Part III examination would lead to the charter and the Architectural
Registration Board (ARB) registration.
Recently, the University of Moratuwa has changed the "3+2" program to a continuous
five- year B.Arch. program.
City School of Architecture offers a part-time course of seven years during which the
students should be working continuously under the supervision of a Chartered Architect while
attending the school on a part-time basis. Completion of the first four years of this program
qualifies for SLIA part I and completion of the balance after 3 years qualifies for SLIA part II.
Successful completion of this program with the 1 year of appropriate work experience and
successful completion of SLIA Part III examination would lead to the charter and the
Architectural Registration Board (ARB) registration.

United Kingdom
In the United Kingdom, practicing under the name, style or title "architect" is
restricted by law to those registered at the Architects Registration Board. It usually takes a
minimum of seven years to obtain the necessary qualifications and experience for
registration.
 Those wishing to become registered must first study at a recognized university-
level school of architecture. Though there are some variations from university to
university, the basic principle is that in order to qualify as an architect a candidate must
pass through three stages which are administered by the Royal Institute of British
Architects:
 On completing an initial degree in architecture (usually three or four years, usually
either a BA, BSc, or B. Arch) the candidate receives exemption from RIBA Part I. There
then follows a period of a minimum of one year which the candidate spends in an
architect's office gaining work experience.
 The candidate must then complete a post-graduate university course, usually two
years, to receive either a graduate diploma (Dip Arch), Masters (M. Arch) or B(Arch).
On completing that course, the candidate receives exemption from Part II of the RIBA
process.
 The candidate must then spend a further period of at least one year gaining
experience before being allowed to take the RIBA Part III examination in Professional
Practice and Management.

United States
In the United States, people wishing to become licensed architects are required to
meet the requirements of their respective state. Each state has a registration board to
oversee that state's licensure laws. National Council of Architectural Registration Boards is a
non-profit professional association created in 1919 to help ensure parity between the states'
often conflicting rules. The registration boards of each of the 50 states (and 5 territories),
member boards. NCARB issues a national certificate to qualified licensed architects. The
NCARB certificate is recognized in most licensing jurisdictions for the purpose of granting
licensure by endorsement or reciprocity.
Requirements vary among jurisdictions, and there are three common
requirements for registration: education, experience and examination. About half of
the States require a professional degree from a school accredited by the National
Architectural Accrediting Board (NAAB) to satisfy their education requirement; this
would be either a B. Arch or M. Arch degree. The experience requirement for degreed
candidates is typically the Intern Development Program (IDP), a joint program of and
the American Institute of Architects (AIA). IDP creates a framework to identify for the
intern architect base skills and core-competencies. The intern architect needs to earn
700 training units (TUs) diversified into 16 categories; each TU is equivalent to 8 hours
of experience working under the direct supervision of a licensed Architect. The states
that waive the degree requirement typically require a full 10 years' experience in
combination with the I.D.P diversification requirements before the candidate is eligible
to sit for the examination. California requires C-IDP (Comprehensive Intern
Development Program) which builds upon the seat time requirement of IDP with the
need to document learning having occurred. All jurisdictions use the Architect
Registration Examination (ARE), a series of seven (formerly nine) computerized exams
administered by NCARB. The NCARB also has a certification for those architects meeting
NCARB's model standard: NAAB degree, IDP and ARE passage. This certificate facilitates
reciprocity between the member boards should an architect desire registration in a
different jurisdiction. All architects licensed by their respective states have professional
status as Registered Architects (RA).
Depending on the policies of the registration board for the state in question, it is
sometimes possible to become licensed as an Architect in other ways: reciprocal licensure for
over-seas architects and working under an architect as an intern for an extended period of
time. Length of the typical licensure process depends on the particular combination of
education, experience and pace of examination of a candidate. It is typical that the entire
licensure process takes at least 7 to 11 years to complete; including five years of study (5
years for B. Arch, 3 years for M. Arch, 6 years for a "four-plus-two" program), three-plus
years of experience (meeting exact IDP requirements in each category), and often a year or
more to take and pass the seven ARE 4.0 exams.

Entry of foreign architects in India

Indian Architects keep foreign players out
After the tussle between local and foreign auditors and lawyers, it's now the turn of
architects. The Council of Architecture (CoA), the regulatory body for the profession, has
stepped up its fight against foreign architects practicing in India — attracting severe criticism
from several countries, including the US.
Although foreign architects are not allowed to practice in India, several entities were
rendering services in the country, either directly or through tie-ups with local players. A 1972
law explicitly prohibits any foreign firm architect and the government, despite its keenness,
has refused to open up the sector despite negotiations at the World Trade Organization
(WTO).
Last year, as reported first by TOI, the Delhi high court had ruled that the approval
granted by the Foreign Investment Promotion Board ( FIPB) to RSP Architects, Planners and
Engineers, a Singapore-based firm, was not in line with the law.
This provided fresh ammunition to the CoA, which recently issued a public notice
saying "... no foreign architect/consultant (not registered with CoA) be appointed for
architectural works, without following the procedure under the (Architects) Act". It said that
it had issued the advertisement after it received complaints about appointment of foreign
architects, without prior approval of the government.
This largely went unnoticed in India but has evoked strong reaction from foreign
lobby groups and architects, which have raised a banner of protest and have gone to the
extent of drawing parallels with the retrospective amendments to tax laws. They have told
Indian ministers that the issue once again highlights India's unwillingness to open up its
markets to foreign competition. Overseas architects are keen to tap into the booming real
estate and infrastructure sectors in India.
CoA president Uday C Gadkari could not be reached for comment but council member
Inderjit Singh Bakshi told TOI that the regulatory entity had taken up the issue with the
government as "only those registered with the council can practice in India". Apart from those
with degrees from recognized Indian architecture schools, the Architect's Act also recognizes
qualifications from certain countries on a "reciprocal basis".
Government officials agreed with the CoA stance and said the law clearly bars
foreign architects from practicing in India. "It is not part of our commitment to WTO and
can only be done if there is qualification equivalence or mutual recognition," an official
said. This means that architects from a foreign country can be allowed to practice in India
on a reciprocal basis if the professional qualifications are accepted or architects from
either country clear the stipulated professional tests. For this to happen, CoA and its
foreign counterpart have to come to an agreement.
While foreign lawyers are explicitly banned from practicing in India, the Institute
of Chartered Accountants of India has entered into mutual recognition agreements with its
counterparts in the UK, Canada and Australia for reciprocal membership arrangements.
Although the government has repeatedly tried to open up the professional services
market to foreign players, industry bodies have prevented it from going ahead, citing threat
to livelihood. Despite the "ban" foreign players have thrived with audit firms such as EY,
KPMG and Deloitte taking over domestic firms. They have used their brands to get business
but use the local firms for signing off on accounts. In case of law firms, several Indian players
have tie-ups with overseas solicitors, who advise them but cannot appear in court.

Example – current scenario

Foreign Architects in India
The profession and practice of architecture in India has undergone a complete
transformation in this decade. The last eight years have been a boom time, not seen since the
heady days of Post Independence India.
The booming economy and the burgeoning middle class has prompted developers to
bring in foreign architects with foreign fees to design everything from airports to residential
and office towers and bungalows and resorts.
Foreign architects bring in the tried and tested processes and function precision to
bring about a complete turnaround in the way projects are designed and built. They pair up
with Indian firms who have the expertise on the ground to get things done and built.
Foreign architects for the most part are bringing in foreign solutions and design
principles which may not all work in India, but the public does not think a second before
lapping it all up. We are literally bringing New York, Chicago, Tokyo or Shanghai to Bombay,
Delhi, Calcutta, Madras and countless other towns and cities.
Only time will tell if this is successful in the long term. India is not the only place in the
world where this is happening. China is way ahead of us in transplanting urban fabric from the
West into their cities.
The TOI has an interesting article about the whole phenomenon of foreign architects
coming to India.
" Time was when there was only the occasional eruption of concrete. Today, India’s
skyline is a work in progress. But while the towering new skyscrapers, sprawling IT parks,
glitzy airports and swanky townships reflect desi aspirations, the blueprint, more often than
not, is foreign.
Be it a slum redevelopment project in congested Mumbai or Kolkata’s new museum of
modern art, the global imprint on the country’s fast-changing urban landscape is evident.
Made in India but designed by a clutch of foreign architects looking to cash in on the country’s
real estate boom. For Edinburgh-based RMJM, the company behind the distinctive Scottish
Parliament, a foray into India four years ago has translated into business of £1 billion. That,
the company says, is unprecedented for a UK architecture firm doing business in India.
“There’s a cue here for UK business — we need to be in India in a very big way, ”says RMJM
CEO Peter Morrison. RMJM, which currently has 38 projects under way in India, is now
looking to establish a permanent base in Mumbai.
Many others have taken the cue. Celebrated British architect Lord Norman Foster,
who shaped London’s skyline with buildings such as the Gherkin and designed the Reichstag
in Berlin, has entered India in a tie-up with a Mumbai real estate firm, the Neptune group.
Other big UK names in India are Laing O’Rourke, Davis Langdon and Mott MacDonald. Not just
UK, firms from Canada (Arcop) to Australia (Omiros One) have designs on India.
 But does India really need foreign architects or is it just about getting a brand on the
brochure? Most builders agree it’s as much about star power as it is about international
quality. After all, well-heeled buyers respond to designers with international reputations as
much as they respond to a luxury label like Gucci or Prada. “When people purchase an
expensive apartment, a famous architect is extra validation they’re making a good choice,”
says Kunal Banerji of Ansal API which signed up US firm Chelsea West to design Manhattan-
style condos at its Aqua polis project in Ghaziabad.
The Mahindra group’s real estate arm Mahindra Life spaces, which has roped in US-
based architect and design firm HOK (of Dubai marina fame), says their reasons go much
beyond the brand. “The selection of an international architect or planner is driven by the
unique needs of the project. For instance, the 325-acre Mahindra World City project is one of
the largest such developments under implementation and to that extent the width and
depth of on-ground implementation experience is currently available only with international
firms who have conceived and implemented such projects in different parts of the world,”
says Anita Arjundas, COO of Mahindra Life spaces.
Size does matter and with Indian developers going beyond stand-alone commercial
blocks and residences to converting huge swathes of land into townships and IT parks, a
‘foreign hand’ does come in handy. “Foreign firms can visualize and handle massive scale.
Also, their designs are very innovative. They create landmarks and not just buildings,” says
Shantanu Malik, DGM-Architect, Unitech Ltd.
It’s a win-win for Indian architects as well. “Working with foreign firms gives us
exposure to international standards. There is a lot to learn from their use of detailing and
modern materials,” adds Malik.
Unitech often hires multiple design firms for a single project. For instance, it has 10
global architecture and design consultants for the $3 billion Unitech Grande, a super-luxury
residential complex spread over 347 acres along the Noida expressway. This project draws on
the expertise of US-based mall designer Callison, landscape artists SWA and EDAW, Britain’s
RMJM for architecture and interiors and HOK for floor plans, besides a course designed by
Australian golfer Greg Norman.
With so much demand, it isn’t surprising that Mark Igou, director in the US
architectural firm Skidmore, Owings and Merrill Llp (SOM), has been shuttling between New
York and India over the last three years. “I spend more than three months a year in India,
familiarizing myself with the ground situation.” And ground reality is what SOM — the firm
which has designed the Burj Dubai, which will be the world’s tallest skyscraper when it is
finished in 2009 — is faced with in Mumbai where it is designing homes for slum dwellers in
Mumbai’s Santa Cruz as part of a masterplan for Unitech. “It’s a unique design challenge —
recreating the same sense of community that exists in their current housing so that people
don’t want to return to the slums they left,” says Igou. SOM is also using the services of
sociologists and cultural anthropologists to get a sense of the social and cultural aspects of
the lives of those being rehabilitated.
Whether it’s slum housing or a swanky township, India is essential to the design
inputs. “Education and social interaction are both important to Indians so our designs will
reflect these needs. So residential units would have schools nearby and public spaces for
people to interact,” he says. Besides projects like the Jet Airways headquarters in Mumbai,
SOM is also working in Tier-II cities like Ahmadabad and Nagpur.
Be it the Indian ethos or the vagaries of its climate, Uruguayan architect Carlos Ott
keeps it in mind when he is on the drawing board. Ott, who has designed a techno park for
Tata Consultancy Services at Siruseri, Chennai, in association with countryman Carlos Ponce
de Leon, says, “I am constantly studying the history and traditions of India, hoping to
integrate some of its characteristics in my buildings. And though my work is definitely
contemporary, the clues from the past are integrated in a modern vocabulary.”
Ott is building on the work that earlier foreign architects have done in India. Apart
from Lutyens and Le Corbusier, several other international architects have showcased their
designs in India. Ahmadabad’s Indian Institute of Management reflects Louis Kahn’s
trademark style of veering towards monolithic masses resembling ancient ruins. Christopher
Charles Benningerdesigned the Mahindra United World College of India, near Pune. British-
born Laurie Baker planned the Fishermen’s Village in Poonthura in Kerala, while American
Joseph Stein gave shape to Delhi’s India International Centre.
Now, a new generation of foreign architects has designs on India. And their glittering
computer-generated images look set to redefine the country’s skyline. "
Construction sounds boom loudly nowadays as the Indian skyline towers with
competing skyscrapers and IT office parks sprawling in outer suburban townships. More high-
tech, high-glitz international airports replete with all the commercial building associated with
major transportation hubs have fulfilled many Indian intended building goals but the design is
often American inspired.

Design Demand Outpaces Local Delivery

The boom in India real estate development and redevelopment is outpacing the
country’s ability to produce enough native talent to keep up with the demand. Thus, when a
country with a population of 1.2 billion produces only 3,000-4,500 architects annually from its
180 schools – according to the India Council of Architecture, with an estimate of 40,000
registered professionals, the demand means an international search for available talent.
Besides the enormous need for commercial building architecture, building expansion,
and interior design created by India’s real estate boom, the sustainable-designed buildings
are also in public consideration due to rising energy prices and changing government policies
and tariff structure. Many new buildings in India are LEED certified.

Still Made in India, But Designed Globally

From the redevelopment of Mumbai slums to the high-tech designs for a modern art
museum in Kolkata, architectural design in the Indian sub-continent has taken on a decided
global appearance making a huge impact upon the ever-changing urban landscape. Although
this does translate into opportunities for construction to remain “Made in India”, the design
has been firmly grabbed by a bevy of foreign architects—including U.S.-based firms—seeking
to capitalize on the country’s continuing real estate boom.

Is This Need Created?

This question can be rightly posed if India is, indeed, in need of so much foreign
architect design activity. Or, is it simply a matter about acquiring “star” power and the
bragging rights associated with international quality? We at Amritt believe that Indian real
estate developers are seeking a modernized, updated function and look to their properties,
just as any clothing consumer would seek either Prada or Gucci as design choices.
Therefore, world class implementation demands worldwide searches. Savvy, profit-
seeking Western architects are focusing effort on India.
Codes of conduct for Indian architects
 A code of conduct is a set of rules that outlines the duties and responsibilities of a
particular person, groups or organization. All professions are bound by these codes,
including architecture which is a process of designing, planning and construction of buildings
and other structures.
In India, just like other countries, architects do have codes of conduct. Indian
architects are required to register with a government body called the council of architecture
so that one can be able to carry out the professional practice. It is illegal to conduct any
architectural activities without getting registered by this body. When they register with this
body each architect gets a unique registration number. They also have to follow the Indians
architects act 1972, which states the following.
• All architects are to be bound by this act and are to follow it.
• The council of architecture shall be the body responsible for all architects.
Through this body contracts can be made. One can sue or be sued.
• The head office shall be in Delhi unless stated otherwise by the central government,
which will be put in the gazette.
• Specifies the number of members who are to be on the council and there
mode of election.
• It talks about the registration of architects. That with them they should have their
birth certificate, national identification card, relevant school documents and a
degree from a known institution.
• Punishments to those who give false representation are also stated.
The Indian government also did establish a code of conduct in the Indian constitution.
It is under the professional code of conduct 1989. It states that:
 Every architect who's either employed or practicing is subject to the provisions of
the central civil services.
 An architect should make sure that his professional activities do not conflict with his
responsibilities and what he is entitled to do, his responsibility to the society and
environment.
 He or she should apply and use his skills’ responsibly for the economic development of
India.
 The architect shall provide professional services of high quality and to the best of
his ability.
 Should always inform the client on the conditions of engagement and the terms
of agreement especially if one is on private practice. These are to form the basis
of an appointment.
 One should not sub commission work to another or other architects without an
agreement with his client.
 He should not give or take discounts, gifts, commissions or any form of inducement for
introduction of a client or work.
 He should act with impartiality and fairness when administering a contract.
 The architect should maintain very high standards of integrity.
 Should promote the advancement of architecture, research, training,
architectural education and also training.
 He should respect and recognize professional responsibilities of consultants.
 Questions

Two Marks:
1. What do you understand by globalization in architectural practice?
2. Writes short notes on GATS?
Sixteen Marks:
1. What are the pre- requisites for Indian architects to work in other countries.
2. Explain the impact of information technology on architectural practice.
3. Explain the implications of foreign Architects entry in India.

…….

EMERGING SPECIALISATIONS FOR AN ARCHITECT

Contents:
 Definition
 Introduction to Project Management
 Evolution of Project Management
 Today’s Scenario - Fields in Project Management
 Function of Project Management
 Role of an Architect in Construction
 Benefits in project management for architects
 Lifecycle of Project Management
 Process of Project Management
 Others
 Course Objective

Project:
What is a Project?
Projects are unique, transient endeavors undertaken to achieve a
desired outcome.
The definition of a project identifies two of the key features:
Uniqueness
Projects are separate to business-as-usual activities, requiring people to come together
temporarily to focus on specific project objectives. As a result, effective teamwork is central to
successful projects.
Transience:
A project has a specific start and end point and is set up to meet specific
objectives, to create a specified result, product or service.

What is project Management?

At its most fundamental, project management is about people getting things done.
Project management is the process by which projects are defined, planned, monitored,
controlled and delivered such that the agreed benefits are realized. Projects bring about
change and project management is recognized as the most efficient way of managing such
change. (APM, 2011)
Project management focuses on controlling the introduction of the
desired change. This involves:
 Understanding the needs of stakeholders.
 Planning what needs to be done, when, by whom, and to what standards.
 Building and motivating the team.
 Coordinating the work of different people.
 Monitoring work being done.
 Managing any changes to the plan.
 Delivering successful results

Evaluation of Project Management

 It can be conjectured that the history of project management goes back to the time
of the pharaohs and the construction of pyramids of Giza or to the Qin dynasty and
the Great of China
 Contemporary project management has its roots in the 1950s and 1960s although
Henry Gantt, widely recognised as the father of planning and control techniques and
his eponymous bar chart in the early 1900’s and Gantt Charts were used during
World War 1 to reduce the build- time of cargo ship.
 The concept of project management was after its introduction, mainly used by the
construction industry due to the temporary nature of its projects.
 Two forefathers of project management are Henry Gantt, called the father of planning
and control techniques, who is famous for his use of the Gantt chart as a project
management tool.

Today’s Scenario – Fields in Project Management:

With the advent of the new millennium, project management is increasingly seen as
part of the general management too and its techniques are deployed across all sectors of
business and all types of project.
 IT
 Construction Industry
 Retail
 Healthcare
 Mining

Function of Project Management:

A list of functions carried out by project managers:
 Establishment of the client’s objectives and priorities.
 Design of the project organization structure.
 Identification of the way in which the client is integrated into the project.
 Advice on the selection and appointment of the contribution to the
project and the establishment of their teams of reference.
 Translation of the client’s objectives into a brief for the project team and its
transmission.
  Preparation of the programme for the project.
 Activation of the framework of relationships established for the contributors.
 Establishment of an appropriate information and communication structure.
 Convening and chairing meetings of appropriate contributors at all stages.
 Monitoring and controlling feasibility studies, design and production to ensure that
the brief is being satisfied, including adherence to the budget, investment and
programme plans.
 Contribution to primary and key decisions and to making operational decisions.
 Recommendation and control of the implementation of a strategy for disposal or
management of the completed project, including commissioning the building and
advising on arrangements for running and maintaining it when completed.

 Evaluation of the outcome of the project against its objectives and against interim
reports including advice on future strategies.

Role of an Architect in construction:

 list of functions it is clear that the design manager (architect) and project manager are
clearly different roles, demanding quite different skills and abilities.
 There are, however, overlaps between the project manager and architect, best
accommodated by integrating both disciplines within the same professional service
firm There are, however, overlaps between the project manager and architect, best
accommodated by integrating both disciplines within the same professional service
firm
 Collation of client/business requirements
 Design co-ordination
 Implementation.

Benefits in Project management for architects

Why should an architect understand project management?
 Client/ stakeholders have an informed view of what the project will entail, at the
onset. There are clearly defined policies, objectives and instructions for every element
of the project from start to finish.
 Clients benefit from assigning the ultimate responsibility to the project manager.
 An effective project manager is more likely to deliver the project successfully- i.e with
good leadership, the project is kept on track with respect to time, cost and quality.
 Effective project management ensures effective risk management.
 Effective project management ensures value for money.
 Coordination is one key aspect of project management which is beneficial
to the team as a whole
 A project manager with a sound knowledge of the relevant tools and techniques of PM
is likely to introduce change with maximum efficiency and effectiveness
 In planning, monitoring and controlling a project, Project management focuses
attention on cost, time, quality/performance and their trade-offs in such a way as to
effect optimum efficiency and effectiveness.
Need for project management in construction Industry
 All the work that has to be done to achieve the time, cost and quality objectives
defines the project scope. The scope can change over time, and it is the project
manager’s responsibility to ensure the project will still deliver its defined benefits.
 A project manager must maintain focus on the relative priorities of time, cost and
quality.
 Cost
 Quality
 Time

Process of Project Management:

A clinical Approach to Project Management:

1. Identify project objectives and constraints.
2. Maintain and update Risk register to capture
RISK project risks along with mitigation strategies.
3. Structural escalation matrix for high level risks.
 1. An initiation schedule created to set the
momentum.
SCHEDULE 2. A combination of progress schedules tracked
closely to understand the current and planned
position.

1. Quality plan & safety plan document with target

parameters.
2. Periodic quality & safety reviews to review
QUALITY & SAFETY
compliance and minimum requirements
respectively.
1. Keep overall costs within approved project
budget by strictly monitoring expenditure.
COST 2. Conduct value engineering (VE0 workshops to
devise alternate methodologies to reduce costs.
3. Regular financial reporting through Prolog

Initiate:

 Find out the requirements of the Client (objective of the client)

 Understand the environment of the projects and the variables
 Define the Scope of the Project, agree with the client etc
Plan:

 Prepare a project Charter

 Develop a Project Management Plan
 Create a Work Breakdown Structure
 Resource Allocation
 Things to Consider while Planning Projects
 Resource Availability
 Health and Safety of Personnel the Workplace
 Environmental Safety
 Reduction of Time
 Minimization of Cost

1.Execute:
 Implementation of project plan with the agreed cost, time and quality.
 Change management, cost management etc.
2.Monitor and Control
 Schedule
 Risk management
3. Closing Process
 Handover of the project with achieved objectives & deliverables e.g
commercial & technical handover.
Who is a good Project management?
 Leadership skills
 Motivation skills
 Decision maker
 Teambuilding
 Forecast and plan
 Manage risk
 Effective control of resources.

Indian project management companies in the market

 DTZ
 CBRE
 JLL
 Turner & Townsend
 Design & Build firms.
 Cushman & Wakefield

Project management school in India:

 NICMAR
Tools and techniques
 Project management Software’s ( Primavera, Microsoft project
plan, pert master etc )
 Templates for individual deliverables ( 5 phases of the project)
 Regular Meetings

Why this Subject? (objective)

 To understand Traditional Management System – Grant chart, Bar Chart, PERT, CPM,
WBS etc
 Skills – soft & hard skills
 Programming, Network Techniques
 To Establish a relationship between Project Cost and Project Planning
 Application of Software’s in Planning of Simple Projects.

Questions
Two Marks:
1. What do you understand by a dummy activity?
2. Mention any four rules to be followed for drawing a network diagram.

Sixteen Marks:
1. Explain and analyze the role, function and responsibilities of a construction manager
and a project manager.
2. Explain the planning, scheduling and controlling phases of a project management.
…….