Construction Contracts and Estimates
Types of Contracts
- Lump Sum
- Item Rate
- Percentage Rate
- Cost Plus Percentage Rate
- Cost Plus Fixed Fee
- Target
- All-in-One
- Labor
- Cost Plus Fluctuating
Types of Approximate Estimates
- Service Unit
- Plinth Area
- Cube Rate
- Carpet Area
- Approximate Quantity Method
Types of Detailed Estimates
- Original/Fresh
- Revised
- Supplementary
- Special Repair
- Annual Repair/Maintenance
Measurement Sheet
| Sr. | Particular of Item | Nos. | Length | Breadth | Height | Qty. | Remark |
|---|---|---|---|---|---|---|---|
| Abstract Sheet (Rate Analysis) | |||||||
| Sr. | Particular | Qty | Unit | Rate | Amount | Remark |
Rules of Measurement Writing
- Before taking measurements, the engineer should understand the contract conditions and specifications.
- Measurements should be taken accurately with a metal tape. Material specifications should be recorded with the measurements.
- All measurements should be recorded in ink. Corrections should be signed and dated.
- The measurement book is an authentic record and can be used as evidence.
- Measurements should be numbered serially.
- The engineer should sign the measurement book after every entry.
Contracts
Work estimated to cost more than a certain amount is prepared on a regular contract form. Tenders are invited, and the lowest tender is usually accepted. The work awarded to the selected tenderer is called a contract. Examples: Lump Sum, Percentage Rate, Item Rate.
Dry Volumes
- P.C.C: 15.2 cum
- R.C.C: 4.125 cum
- U.C.R: 4.2 cum
- C.R: 4 cum
- Ashlar: 2.5 cum
- Brick: 3 cum
- Cement Plaster (12mm): 2 cum
- Cement Plaster (20mm): 3 cum
- Cement Pointing: 0.6 cum
Methods of Carrying Out the Contract
Pre-Tender Actions: Preparation of Contract Documents
- Layout Plan Preparation
- Plan, Elevation, and Working Drawings
- Schedule A: Materials Supplied by the Department
- Schedule B: Bill of Quantities
- Specifications
- Conditions of Contract
- List of Equipment and Rates
- Tender Notice and Types of Contract
Publication of Tender Notice
After obtaining administrative and technical sanctions, and budgetary provisions, the tender notice is published in daily newspapers.
Post-Tender Actions
Opening the Tender
The tender notice specifies the time, place, cost of the tender form and documents, and the date and time of the tender opening. Tenders are opened by the Executive Engineer or a representative in the presence of contractors.
Selecting the Tender
Generally, the lowest tenderer is selected. A list of all tenders is prepared. The earnest money amount is noted. The tenderer’s signature is required. Verification ensures rates are provided in figures and words, and all contract conditions are signed.
Tender Notice
Sealed tenders are invited on behalf of… [Details of work, estimated cost, earnest money, security deposit, tender form cost, completion period, tender availability, submission process, opening process, and rejection rights].
Payment Methods
Bills are prepared by recording measurements taken by subordinates and checked by the Executive Engineer, who also checks the quality of work. Types of bills: First and Final, Interim/Running, and Final.
First and Final Bill
Used for small, short-duration works, the entire tender sum is paid in one installment.
Interim/Running Bill
Also known as a running account bill. Payments are made based on recorded measurements and tender rates. A separate running account is maintained for each contract.
Final Bill
Prepared upon work completion, this bill, typically on a yellow form, represents the full and final settlement.
Labor Welfare Act
The Labor Welfare Fund is a statutory contribution managed by individual state authorities. It provides financial or essential aid to those in need, offering social security and raising living standards.