Eqs unit 3 final
- 2. SCHEDULE OF RATES A Booklet containing rates of various engineering items for the preparation of detailed estimates of the building, roads etc,. It gives The rate of materials Daily wages for labor and Quantities of various materials required in construction 2
- 3. MEASUREMENT BOOK The measurement of all works and supplies are recorded in the measurement book The payment of all works and supplies are made based on the measurement recorded 3
- 4. ANALYSIS OF RATES Definition: In order to determine the rate of a particular item, the factors affecting the rate of that item are studied carefully and then finally a rate is decided for that item. This process of determining the rates of an item is termed as analysis of rates or rate analysis. 4
- 5. The rate of particular item of work depends on the following. Specifications of works and material about their quality, proportion and constructional Operation method Quantity of materials and their costs Cost of labors and their wages Location of site of work and the distances from source and conveyance charges Overhead and establishment charges Profit 5
- 6. Purpose of Analysis of rates • To work out the actual cost of per unit of the items • To work out the economical use of materials and processes in completing the particulars item • To work out the cost of extra items which are not provided in the contract bond, but are to be done as per the directions of the department • To revise the schedule of rates due to increase in the cost of material and labor or due to change in technique. 6
- 7. • Analysis is done for finding the cost of Material Cost of labors 7
- 8. Finding the cost of material • The costs of materials are taken as delivered at site inclusive of the transport local taxes and other charges. • The distance between the source of availability of material and construction site is known as "Lead” and is expected in Km. • The cost of conveyance of material depends on lead. This statement will give the total cost of materials per unit item. It includes first cost, conveyance loading, unloading stacking, charges etc. 8
- 9. Cost of labor It depends on different types of labors are •Skilled 1st class Skilled 2nd Class Unskilled •The labor charges can be obtained from the standard schedule of rates. • 30% of the skilled labor provided in the data may be taken as Ist class, remaining 70% as II class. •The rates of materials for Government works are fixed by the superintendent Engineer for his circle every year and approved by the Board of Chief Engineers. • These rates are incorporated in the standard schedule of rates. 9
- 10. SPECIFICATION Definition: This gives the nature and class of the work and materials in general terms, to be used in the various parts of work, from the foundation to the superstructure. 10
- 11. Need: •Work is carried out according to the specification. •Rate of work is based on specification. •It is essential for contract document. 11
- 13. General specification • It gives only the brief description of each and every item. • Without going to the lengthy detailed specification, general information for the quantities of materials, nature & class of work can be known from the general specification 13
- 14. S . N o Item I class II class III class IV class 1 . Foundati on and plinth I class BW in LM or 1:6 CM over LM or CC I class BW in LM over LC II class BW in LM over LC Sundried kutcha bricks 14
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- 16. General Specification of First class building (May2009, Nov 2013) • Foundation and Plinth – Excavation up to hard strata – I class BW in lime mortar – 1:6 Cement mortar over lime concrete – 1:4:8 cement concrete at base • Damp proof course – 2.5cm thick – CC 1 : 1 ½ : 3 mixed with on kg of impervious material per bag of cement – Painted with two coats of bitumen 16
- 17. • Super structure – I class BW in lime mortar or CM 1:6 – Lintel over doors and windows – Lintels in RCC • Roofing – RCC slab 150mm thick – RCC beams as required – RCC Slab with an insulation layer – Height of room not less than 3.5m 17
- 18. • Flooring – Living, drawing, dining are in vitrified tiles – Bathroom and WC ceramic tiles – Kitchen are in Mosaic • Finishing – Inside and outside wall be plastered with CM 1:5 12mm thick – Inside 1coat white washing and 2 coats color washing – Outer side 1 coat white washing and 3 coats of color washing 18
- 19. • Doors and Windows – Teak wood frame and 4.5cm thick teak wood shutter – Fittings shall be in brass – Doors and windows shall be varnished – Windows shall be provided with grills • Miscellaneous – Rain water pipes in cast iron – Ist class sanitary fittings – Ist class Electrical installations 19
- 20. Detailed specification • Detailed specification for a particular item specify Qualities Quantities Proportion of material The method of preparation Execution for that particular item of work in the project 20
- 21. Detailed specifications of earthwork excavation (Nov 2014, May2009,Nov2010, Nov 2016) • Excavation – Foundation trenches shall be dug out to exact width – Sides shall be vertical • Finish of trench – Bottom of trench was perfectly leveled – Leveled both longitudinally and transversely – Levelled vertically – Bottom is laid least thickness of cement concrete 21
- 22. • Find – Any valuable materials find during the excavation • Water in Foundation – Water if any accumulates in the trench – Pumbed out the water without any extra payment – Precaution shall be taken 22
- 23. Detailed specifications of BW Ist class (Nov 2014, May2009,Nov2010, Nov 2016) • Bricks – First class with standard specification – Right angled edges and copper color • Mortar – Portland cement of standard specification – Mortar will used with in 3 hr – CM 1:3 23
- 24. • Soaking of brick – Fully soaked in clean water for 12 hr • Laying – Well bonded – Laid in English bond unless specified – Wall shall be truly in plumb – Mortar shall not exceed 6mm in thick – Joints shall be fully filled with mortar 24
- 25. • Curing – BW shall be kept wet – At least 10days after laying • Protection – Protection from the effect of sun, rain etc., during the construction • Scaffolding – Necessary and suitable scaffolding shall be provided – Scaffolding shall be sound, strength and support • Measurement – BW shall be measured in cu.m 25
- 26. Detailed specifications of CC 1:2:4 (Nov 2014, May2009,Nov2010, Nov 2016) • Materials • Coarse aggregate Hard broken stones of granite Free from dust, dirt and other materials For building 20 mm gauge For roads and mass work 40 to 60 mm gauge • Fine aggregate Hard ,sharp and angular grains Shall pass through screen of 5 mm square mess 26
- 27. • Materials • Cement Fresh Portland cement Standard specification ISS Shall have required tensile and compressive and fineness • Water Water shall be clean Free from alkaline and acid matters Suitable for drinking 27
- 28. • Proportion – Shall be 1:2:4 as cement : Fine agg : Coarse agg • Mixing • Hand mixing Shall be done by masonry platform or iron tray The whole shall be mixed thoroughly turning at least three times • Machine mixing Stone ballest, sand and cement shall be put into the concrete mixer 1 ½ to 2 minutes rotation for through mix 28
- 29. • Form work – Centering and shuttering shall be provided as required • Laying – Gently in layer not exceeding 15 cm – Tampering with wooden tamper or with mechanical vibrating machine • Curing – After 2 hours having when concrete has begun to harden, it shall be kept damp by covering wet gunny bags or wet sand for 24 hours – Kept damp continuously for 15 days 29
- 30. SCHEDULE OF RATES as per 2017-2018 Cement Rs 6850 /MT = 6.8 /kg = 342.5 / bag = 9520 /cum River sand For mortar and filling 176.40/cum Bricks 2nd class table mould = 7.19 /No Fly ash brick = 6.015 /No 30
- 31. Jelly 12mm = 1206/cum 20 mm = 1300/cum 40mm= 934/cum Steel 43500 / MT 43.5 /kg 4350/ Quintal 31
- 32. Labour Rate Mason 1st class = 545 /day Mason 2nd class = 488 /day Mazdoor 1st = 341/day Mazdoor 2nd = 308/day Carpenter 1st class = 533 /day Carpenter 2nd class = 488 /day 32
- 33. • Using the current schedule of rates for materials and labors prepare data for the following items of work : – PCC 1:5:10 for 1cum – Brick work CM1:5 for 10cum – Plastering CM 1:5 – 12mm thick for 10sqm (AU Nov 2013) (AU Nov 2016) (AU Nov 2014) (AU May 2012) (AU Nov 2007) 33
- 34. 1, PCC 1:5:10 for 1cum • Material 1 : 5 : 10 = cement (1): sand (5): Ballast (10) = 16 – Cement = (Cement ratio / Total ratio) X 1.57 = (1/16) X 1.57 = 0.098 cum (Note : 1.57 for PCC & 1.52 for RCC work) – Sand = (sand ratio / Total ratio) X 1.57 = 0.098 X 5 = (5/16) X 1.57 = 0.49 cum = 0.49 cum 34
- 35. – Ballast = (Ballast ratio / Total ratio) X 1.57 = (10/16) X 1.57 = 0.98cum Material Cost Material Qty / Unit Rate as per SoR Amount Cement 0.098/cum 9520 932 Sand 0.49/cum 700 343 Ballast 0.98/cum 1300 1274 Lumpsum 300 Total material cost 2849 35
- 36. Labour Cost Labour type Qty / Unit Rate as per SoR Amount Head Mason 1 700 700 Mason 2 545 1090 Mazdoor 1st 10 341 3410 Mazdoor 2nd 10 308 3080 Lumpsum 300 Total material cost 8580 36
- 37. – Total Cost = Material + Labour = 2849 + 8580 = 11429 Add 2 % for water charges & 10 % for contractor profit = 1.12 x 11429 = 12800 37
- 38. 2. Brick work CM1:5 for 10cum • Material Brick = 500 x 10 = 5000 nos = 5000 x 7.19 = 35950 Cement= ( 3 / 6 ) = 0.5cum x 9520 = 4760 Sand = 0.5 x 5 = 2.5cum x 700 = 1750 Lumpsum= 300 Total Cost of material = 42760 38
- 39. Labour Cost Labour type Qty / Unit Rate as per SoR Amount Head Mason 1 700 700 Mason 10 545 5450 Mazdoor 1st 10 341 3410 Mazdoor 2nd 10 308 3080 Lumpsum 300 Total material cost 12940 39
- 40. – Total Cost = Material + Labour = 42860+ 12940 = 55800 Add 2 % for water charges & 10 % for contractor profit = 1.12 x 55800 = 62496 40
- 41. Plastering CM 1:5 – 12mm thick for 10sqm • Material Cement= ( 2 / 6 ) = 0.035cum x 9520 = 333.2 Sand = 0.035 x 5 = 0.175cum x 700 = 122.5 Lumpsum= 300 Total Cost of material = 755.00 41
- 42. Labour Cost Labour type Qty / Unit Rate as per SoR Amount Head Mason 1/2 700 350 Mason 1 545 545 Mazdoor 1st 1 341 341 Mazdoor 2nd 1 308 308 Lumpsum 300 Total material cost 1844 42
- 43. – Total Cost = Material + Labour = 755+ 1844 = 2600 Add 2 % for water charges & 10 % for contractor profit = 1.12 x 2600 = 2910 43
- 44. PART 2 TENDER 44
- 45. TENDER Definition: •Tender is and written offer submitted by the contractors in pursurance of the notification given, to execute certain work or supply of some specified articles or transport of materials at certain rates with the terms and conditions laid down in the tender document. 45
- 46. TENDER FORM Definition: •It is a printed standard form of contract giving standard condition of the contract, general rules and directions for guidance of contractors. 46
- 47. PROCEDURE FOR INVITING TENDERS •Preparation of tender documents •Issue of tender notice •Submission and opening of tenders •Acceptance of tender and award of contract 47
- 48. TYPES OF TENDERS •Open tenders – This type of tender invites the contractors to bid by open advertisement in ITJ or newspaper. •Limited tenders – Only selected number of contractors are invited to quote their rates. •Single or negotiated tender- Only one firm to render a service by quoting their rates. 48
- 49. ADVANTAGE OF CALLING TENDER • Lowest bid can be obtained due to competition • Contractor selection can be made upon previous experience • Quality of work can be assured • Personal interest, partiality can be eliminated 49
- 50. TTT act • Tamilnadu Transparencies in Tender act, 2000. • Categories of procurement – Construction – Supply of goods – services • Tender inviting authority shall decide the method of tendering 50
- 51. • Publicity – The District Tender Bulletin shall be published by the District Bulletin Officer at least once in every week. – The State Tender Bulletin shall be published by the State Tender Bulletin Officer at least once in every week. • Publication in newspaper – The Tender Inviting Authority shall have the notice inviting tenders published in the Indian Trade Journal in all cases where the value of procurement exceeds rupees fifty crores. 51
- 52. Details to be mentioned in notice inviting tenders • The name and address of the procuring entity • The designation and address of the Tender Inviting Authority; • Name of the scheme, project or program for which the procurement is to be effected; • The date upto which and places from where the tender documents can be obtained; • The amount of earnest money deposit payable; • The date, time and place for opening of tenders received; • Any other information the Tender Inviting Authority considers relevant. 52
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- 55. TENDER DOCUMENTS The tender documents contains: •Notice inviting tenders •Tender form •Schedule of quantity of works •Special terms and conditions •Complete specification •Approved drawings 55
- 56. EARNEST MONEY DEPOSIT • It is the amount of money to be deposited along with the tender document to the department by the contractors quoting a tender. • This money is a guarantee against the refusal of any contractor to take up the work after the acceptance of his tender. • In case of refusal, this amount is forfeited. Usually 1-2% of the estimated cost is56
- 57. SECURITY MONEY DEPOSIT • At the time of execution of the contract agreement, the successful tender has to deposit a further sum of 10% of the contract amount to the department. This amount is known as security deposit. • This amount is kept check so that contractor fulfills all terms and condition of the contract. 57
- 58. RECEIVING OF TENDERS •After issue of tender document to bidders, the tender opening authority permits an officer to receive the tenders. •Tender box marked with the date and time of opening the tender is placed in a suitable place. •Contractors places the tenders in the tender box which will be locked and kept 58
- 59. OPENING OF TENDERS • The sealed tenders received are to be opened in the presence of contractors or their representatives tendering for the work at the time and place already notified. • The divisional accountant is requested to presence on such occasion whenever possible. • The officer opening the tenders has to read out the rates offered in case of item rate and percentage rate tenders and amount in case of lump sum tenders for information of all those present. 59
- 60. • To avoid tampering in rates , in original tenders, before a comparative statement is made out and put up to him by the office, he has to attest the corrections, overwriting etc in red ink, number them and put his initial at the foot of each page of documents attached to tenders. 60
- 61. SELECTION AND ACCEPTANCE OF TENDERS • After investigation the comparative statement, the lowest tender shall be accepted as a rule by the competent authority. • If for any reason the lowest tender is not accepted, reasons should be recorded confidentially. 61
- 62. E-tender •It is a process of carrying out entire tendering cycle online including submission of price bid such that efficiency, economy, speed of the internet can be harnessed. 62
- 63. Advantage of e-tendering 1. Completely automated process 2. Shortens time 3. Great transparency 4. Minimize human errors 5. Anytime and anywhere the contractors can bid 6. No dependence of newspaper, courier and bank 7. Saves travelling cost 8. No tender can be missed because of distance 9. Can submit bid on last minute 63
- 64. Difference between manual and e- tendering process Manual tendering E-tendering Longer time Short time Expensive Economical Paper based procurement Environment friendly No work on holidays Bidding possible on holidays Wastage on space to store bids Lifelong storage on CD 64
- 65. CONTRACT 65
- 66. CONTRACT •A contract is an agreement which can be enforced by law •The contract invariably follows a proposal from one party and its acceptance by the other. In absence of any of the above elements of a contract, a contract becomes void. •execution of work or •supply of materials or •performance of any service 66
- 67. A simple contract consist of •an agreement (firm offer and acceptance) •consideration (exchange for something of value generally money to be paid when the services are done) •capacity of the contract •object of the contract must be lawful 67
- 68. • Contractor: Contractor means private individuals partnership firm, public or private limited concerns who have made such an undertaking for the execution of works or supply of materials or for services concerned therewith with the respective govt. 68
- 69. Essential requirements/ elements of a valid contract • Legally competent parties o The parties entering into the contract should be legally competent o The minor, mentally deficient person drunken persons are considered to be legally incompetent parties to enter into the contract. 69
- 70. • Lawful subject matter o It is quite obvious that the court shall not enforce an agreement which violates the provisions of the laws framed by the law making bodies. o Various instances of illegal contracts: Contracts involving fraud, crime etc Construction of building without getting approval for plan Construction of dam prior to the acquisition of land 70
- 71. • Valid consideration o The law assumes that the works under a contract are not done free of charge and hence to make a contract legal, a valid consideration is required. o Conditions: The contract must be in writing It must be registered It must be between parties standing in near relation to each other It should proceed out of natural love and affection b/w the parties 71
- 72. • Free consent o Two or more persons are said to be consent when they agreed upon the same thing in the same sense. o Consent is said to be free when It is not caused by influence It is not caused by threatening to commit It is not caused by fraud It is not caused by misrepresentation and mistake 72
- 73. CONTRACT DOCUMENT The following information should a contract document contain Title page – It contains name of the work. Index page- It contains all the items of contract document along with corresponding page number. Tender notice –This document contains brief description of the work and it is intended to create among the contractor who is interested in work. Information- This document furnishes detailed instructions to the contractors regarding the preparation of tender. 73
- 74. Tender form- This document is essential for making all tenders uniform and similar in nature. It helps in comparing tenders. Letter of acceptance of tender and written order to commence work Conditions of contract- This document contain various conditions of contract and these conditions are binding to the parties who are entering into the contract. Drawings with specification – Plan, elevation and section Schedule of issue of materials –List of T& P issued, their rate, place of delivery, condition of recovery etc 74
- 75. Forms of contract: (types of engineering contracts) • Lump sum contract – In this form of contract, contractors are required to quote a fixed sum for execution of a work complete in all aspects Advantages: • The definite amount to be spent on the work is known to the owner as soon as the contract is given. • Detailed measurements of the work done are not required • The contractor is eager to complete the work as early as possible because of following reason 75
- 76. • Disadvantages: – It is very difficult and sometimes annoying to adjust the changes in the plans and the specifications at a later stage. – In case the plans are indefinite and specifications are not clear, the contractor will gamble on uncertainties and in doing so, he may increase the amount of his tender to meet the work situation. – Conflicts may arise between contractor and owner. The owner will be interested in taking the maximum advantage of the contractor for the amount he is giving to him. On the other hand contractor tries to execute the minimum that is required under the 76
- 77. Forms of contract: (types of engineering contracts) Unit price contract or item rate contract In this form of contracts, the contractor quotes his rate per unit of each item of the construction. The rate of the contractor includes materials, labour, overhead cost and profit. Advantages: i. It is possible to make reasonable changes in the quantities of the tender items during the progress of work. ii.As the payment is done on unit basis, only the amount for the actual work done shall be paid to the contractor. 77
- 78. Disadvantages: i. Classification of the materials results in dispute between the owner and contractor. ii.It is impossible to know the final cost of the project. iii.If the work is started before the final plans of the work is ready, the demolishing of some work shall have to be done to accommodate the subsequent changes in the plan. 78
- 79. Forms of contract: (types of engineering contracts) Cost plus or percentage contract Cost plus a fixed percentage: In this arrangement, a certain fixed percentage of the total amount spent by the owner as his fees.(usually 10-15%) Cost plus a fixed sum: In this arrangement, in addition to the total cost of the materials, labor etc, the owner agrees to pay a definite fixed amount to the contractor for his services. Cost plus a fixed sum with a profit sharing clause: This arrangement is sometimes adopted to induce the contractor to bring down the cost of the work lower than its estimated cost. The contractor is given a share in the amount thus saved, in addition to his fixed sum as agreed. 79
- 80. Cost plus a fixed sum with bonus clause: This arrangement is adopted in cases where the work is to be completed urgently. Target date is fixed for the completion of work and if the contractor is able to manage early completion of the work, he is paid at a certain amount per each day of early completion in addition to his normal fixed sum. Advantages: i. No conflicts arise as the contractor is guaranteed for a certain fixed profit. ii.It reduces the time of completion iii.The work can be started as soon as contractors are fixed and it is not necessary to wait until the final plans and the specifications of the work are ready. 80
- 81. Disadvantages: i.Final cost cannot be predicted ii.Subsequent changes in the plans are incorporated by the owner. This results in unnecessary increase in the final cost. iii.The contractor maintains a account for his materials purchased, labour and equipment charges etc. It is difficult to check all such amounts. 81
- 82. 1. Basic price contractor When the market is unstable and the prices of essential material are fluctuating to a greater extent, it is quite likely that no contractor come forward to carry out the work. Hence a slight modification of unit price or item rate contract is made. The contractor mentions in his tender the basic prices of some materials. It is understood that the rates of various items mentioned by the contractor are based on unit price. Hence if there is rise or fall in the prices of the materials, the same is adjusted without any serious conflict. 82
- 83. 1. Labor contract This is the contract where the contractor quotes rates for only for labor. The owner is in the position to purchase the required materials himself. This rate include i. Use of contractor plant and equipment ii.All necessary falsework iii.Contractor supervision iv.Contractor profit 2. Negotiated contract When the work is awarded on contract by mutual negotiation between the parties without the call of tenders, it is said to be negotiated contract. 83
- 84. 1. Demolition contract This is the simplest type of contract in the sense that the owner invites tenders for the demolition of the existing structures. 1. Material supply contract In this form contractors have to offer their rates of supply of the required quantity of materials, inclusive of all local taxes, carriage and delivery charges to the specified stores within the fixed time. 1. Piece work agreement In case of petty work valued upto Rs.10000/-each inclusive of cost of materials are carried out through contractors by piece work agreement. It is terminable at any time by both parties. 84
- 85. Schedule contract or measured contract Except lump-sum contract all other types of contracts are measured contracts. In this contract, the total cost is worked out by the detailed measurement of each item of work after its completion. Rate contract This is the contract for supply of some manufactured articles or materials like pipe, A.C. sheets, and cast iron specials. etc Turnkey contract/package contract/ combined contract It sometimes happens that the owner contemplating a construction project desires to deal with only one party for all services, both engineering and construction, in connection with the work. This is called turnkey or package contract. 85
- 86. • Termination of contract: 1.Termination by performance (work complete) 2.Termination by agreement 3.Termination by breach (one party breaks the provision of the contract) 4.Termination by impossibility of the performance 5.Termination by the provision of law 86
- 87. ARBITRATION AND LEGALATION Definition: It is a process by which parties by way of an agreement in writing submit their disputes or differences to a neutral person or group of persons for binding adjudication. The essentials of arbitration are: 1.Agreement in writing 2.Arbitrators 3.Binding adjudication. 87
- 88. Arbitrators: An arbitrator is more or less like a private judge chosen by parties and endowed by them with power and privilege to decide the matter of dispute between them. Kinds of arbitration: 1.Institutional arbitration 2.Ad hoc arbitration 3.Fast track arbitration 4.Statutory arbitration 5.Online arbitration 88
- 89. • Advantage of arbitration: 1.It is possible to avoid legal formalities, delays and expenses. 2.Simple process to solve the dispute 3.It is conducted in private and not in open as in court 89