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Description We had bagged a contract for Construction of Hanger with allied works, adjacent to existing airport.

The tender value costs of Rs 40 Crores and it is item rate contract and the project has to complete in Ten months. In which we have to work execute the work based on the approved drawings and Bill of quantities. Scope of Work The contract is for construction of hangers, central annex building, COD Block, Energy Block and ancillaries. This work involves construction of hanger and central annex building with pre engineered steel structure, energy block, COD block, including roads, water supply arrangements, drainage, sewerage, disposal of waste material, sewerage treatment plant, rain water harvesting, landscaping, internal and external electrical works, cable layout for communication fire fighting, HVAC, Apron, Tarmac etc., General Conditions of Contract Security Deposit/ Performance Guarantee A Security deposit in the form of irrevocable bank guarantee in the name of ABCD which shall be furnished before signing the agreement for this head, to the extent of 5% of the entire contract amount towards five years operation and comprehensive maintenance contract from the nationalized/ scheduled bank having office in India, acceptable by ABCD. The bank guarantee will remain valid till the expiry of defect liability period plus claim period as per contract provisions. A Performance guarantee in the form of irrevocable bank guarantee which shall be furnished with in 30 Days of issue of letter for signing of agreement for this head of the work, to the extent of 5% of the entire contract amount towards five years operation and comprehensive maintenance contract from a nationalized / scheduled bank having office in India acceptable to purchaser. The bank guarantee will

remain valid till the scheduled date of completion of work plus claim period. In the case the agency fails to deposit performance guarantee within stipulated period a simple interest @10% per annum on performance guarantee amount will be levied for delayed period of submission. Defect liability period for five year operation and comprehensive maintenance contract duration will be three months after completion of fifth year. Terms of Payment The payment shall be released on monthly basis after making recovery of all necessary and statutory deductions and any other deduction for which the firm has made themselves liable for. Special Conditions The contractor shall obtain at his own expenses, all required permissions and licenses and pay all fees payable to the respective authorities in connection with constructing the maintaining all his temporary structures, temporary electrical and water supply at site for construction purpose, during the entire period of construction. All aspects of temporary works including their stability shall be the sole and ultimate responsibility of the contractor. The contractor shall comply with the provisions of the labour contract act 1970 and the contract labour central rules 1971 as modified from time to time, wherever applicable and shall also indemnify the project management consultant from the against any claims under subsidiary act and rules. The contractor shall obtain a valid license under the aforesaid act as mentioned from time to time before the commencement of the work and organize to have a valid license until the completion of work. Any obstruct to fulfill this requirement shall attract the penal provisions of the contract arising out of the resultant non-execution of the work.

The contractor shall pay including the increased wages, if any, as per revised minimum wages act of labour employed by him directly or through subcontractor the wages as per provision of the contract or rules to be paid the wages to labourer indirectly engaged on the work including any engaged by the subcontractors in connection with the said work, as the labour had been immediately employed by him. Nothing extra will be paid on this account and the rates quoted by him will take into account all contingencies even for the future. The contractor shall indemnify project management consultant against any claim for compensation arising out of section 12(1) work mens compensation act, 1923 and subsequent amendments thereof due to any reasons whatsoever. The contractor should make available in the site office all the relevant IS codes, manuals and standards hand outs. The contractor should also establish testing laboratory at site for testing of materials to be used in the construction activity. Secured Advances Secured advances on the security of material brought to site by the contractor shall be made for items which are to be used for work. This shall be limited to 60% of the assessed value of the material. No advance shall be allowed in case material is combustible, fragile or of perishable nature. Recoveries of advance shall be made from intermediate bill based on material used in the work (Each RAR). Mobilization Advances Mobilization advances shall be allowed to a maximum of 10% of contract value to contractor at the current rate of interest applicable for bank draft. The advance shall be against a Bank Guarantee of a scheduled bank for full amount of advance. Recovery of such advances shall be made by deduction from

contractors bills in equal (7) installments of the bill payable (Each RAR), subject to recovery before 3 months of completion of the period. Deduction for Income Tax The Project Management consultant will deduct 2% of income tax on the gross amount and surcharge on income tax of each bill as prescribed by Government from time to time and such deduction of income tax shall be recorded while making payment to the contractor. The final settlement of income tax should be made with the income tax authorities by the tenderer/s himself/themselves. All taxes such as income tax, sales tax and other taxes as prescribed by Central / State Government from time to time shall be applicable. The contractor shall be fully responsible for payment of all such terms without any liability of Project management consultant administration deduction towards such taxes shall be made from the payment of the contractor in accordance with rules in force time to time. Payments of final bills, for materials supplied or for work done with materials collected from outside shall be subject to submission by the contractors of a royalty clearance certificate from civil authorities concerned. Records and Method of Measurements All items having financial values shall be entered in the measurement book, level book etc., prescribed by the PMC so that a complete record is obtained of all works performed under the contract. Measurements shall be taken jointly by site incharge or his authorized representatives and by the contractor and/or his authorized representatives. Measurements shall be signed and dated by both the parties on the site on completion of measurement. If the contractor objects to any of the measurement recorded on behalf of PMC a note to

that effect shall be made in the Measurement book against the items objected to and such note shall be signed and dated by both the parties engaged in taking the measurement. Except where any general or detailed description of work in schedule of quantities expressly shows to the contrary, schedule of quantities shall be deemed to have been prepared and measurement shall be taken in accordance with the procedure set forth in specifications not withstanding any provisions in the relevant standard method of measurement or any general or local custom. In the case of items, which are not covered by the Specifications, measurements shall be taken in accordance with the relevant Standard Method of Measurement issued by the Indian Standard Institution. Payment Terms No Running account receipts shall be made and/or certified for a total value of less than Rs.50,00, 000/- (Rupees fifty lakhs only) unless otherwise expressly agreed. The bills should be submitted at mutually agreed intervals. After scrutiny of the bills, payments will be released after effecting the statutory and other deductions as listed. Statutory deductions such as income tax, work contractor tax, any other levies at prevailing rate as applicable at the time of releasing payment. Any other payment/due deductible from the contractor. On Completion on the entire work in all respects, contractor shall prepare and submit the final bill with all supporting documents including No Claim Certificate in duplicate. The payment for the same will be effected subject to verification and certification by Project Management Consultant, after making all deductions as detailed above. On Submission of Running Account Receipts and before certification part payment at 75% of the bill value may be released at the discretion of Project Management Consultant after accessing the actual

value of work done till date and effecting statutory deductions. Balance 25% or as certified may be released after certification. Completion Certificate As soon as the work is completed, the contractor shall give notice of such completion to the site incharge and within thirty days of receipt of such notice. The site incharge shall inspect the work and shall furnish the contractor with a certificate of completion indication a) The date of completion b) Defects to be rectified by Contractor and /or c) Items for which payment shall be made at reduced rates. Compensation for Delay If the contractor fails to maintain the required progress in time or to complete the work and clear the site on or before the contract or extended date/period of completion, he shall, without prejudice to any other right or remedy of the company on account of such breach pay as agreed compensation amount calculated at the rate of 1% or such smaller amount may be fixed by the competent authority on the contract value of the work of every day that the progress remains incomplete. Provided always that the total amount of compensation for delay to be paid under this condition shall not exceed 15% of the contract value or 15% of the contract value of the time or group of items of work for which a separate period of completion is given. Final Bill On Completion of the work and recording all measurement, a final bill will be presented by the contractor on the Performa prescribed with three months. Before submission of the final bill, the

contractor should sign in a No Claim Certificate indicating that he has no claim against Project Management Consultant under the contract in question except as included in the Final bill.

Release of Security Deposit Initial security deposit will be released on completion of work, subject to submission of No claim certificate" by the contractor. Retention amount will be released on completion of defect liability period. Completion Period The contractor has to be complete the work in all respect with in a period of ten months from the date of issue of acceptance letter. Rate & Extra Item The quoted rates shall be valid till the entire work of 100% completed. Escalation/De-escalation in price shall not be applicable for any items. All the rates shall be inclusive of all taxes, control, levies and transportation etc., and no extra cost will be paid. The contractor shall not take up any extra item unless he receives specific written instruction from Project Management Consultant. Important points to be monitored / resolved. Analyzing the cadastral and topographical survey data. Details of existing structures, facilities and services affected by the work under the contract

Analyzing Meteorological data, Geotechnical data, Environment parameters and constrains. Preparing requirements for environmental impact statements.

Requirements of all government and statutory authorities having jurisdiction over the project.

Preparing the micro schedule for the entire project and highlight the critical activity and analyze the time required for finish the critical activity. If the available duration is sufficient to finish the work we can precede as per the program else we can highlight the same to the Project Management consultant against the critical activities and get the time extension.

Verifying the BOQ quantity with the available drawing. If the drawing quantity exceed more than 10 % from the BOQ qty, has to highlighted to PMC and get prior approval for the same.

Verifying the NON BOQ items if available in the drawing, that also intimate to the PMC and get prior approval from them.

Preparing the Zero cost report for the entire project and fine tune the cost expenditure for the every activity and minimize the machinery utilization by proper planning and effective utilization.

Monitoring the local issues to be sort out before and during the project duration. Location for labour accommodation and other amenities to be sort out with the PMC, if they are ready to issue a space inside the site, we can easily occupy else we have find out some place nearby the site, so that travelling time and cost can be reduced and able to monitor the labour accommodation frequently.

Admin team has to organize for getting approval from local electrical department for power and electricity required for the site.

Has to provide bore well or find out any water resource for water required for construction works.

Has to provide temporary structures inside the site for office and storage area as per the location approved by the PMC.

Calculate the total concrete quantity, so that we can analyze weather batching plant required inside the site (if more concrete qty is available) else we has to go for external concrete. If we require providing batching plant has to get prior approval from the PMC.

Has to get prior approval for Testing lab inside the site and to be analyze the equipments required for the same.

Organizational Chart

Project Manager

Senior Engineer (Structural)

Planning Engineer

Accountant

Junior Engineer (Structural)

Senior Engineer (Civil)

Billing Engineer

Store Keeper

Engineer (Hanger & Central Annex)

Assistant Engineer (Energy Block)

Assistant Engineer (COD Block)

Functional Roles The Assistant Engineers and Engineer will take care of the execution for the corresponding block works and the labour bills. The senior Engineer will coordinate with the sub engineers and execute the work in time. In mean time he also helped the engineers to get the materials and payment in time. The structural engineers will take care of PEB and cladding works, they has to check the design calculations, test reports, strength of welding joints, corrosion in steel structures and alignment of the columns and beams, levels of the structures and corresponding work client and contractor bills. The Planning engineer will prepare the zero cost report, Micro level program schedule, Monthly reports, productivity reports, reconciliation reports, Manpower, machinery, Material utilization details, etc., In addition he has to take care of material follow-up and agency finalization for the specialized works. The billing engineer will take care of contractor bills, client bill preparation and getting approval from client, collecting the joint records, preparing the rate analysis for additional works and getting approval from client. Labour reconciliation statement etc., The accounts team has to coordinate with the site team for proper cash flow in labour bills, material procurements etc., and they has to take care of labour accommodation, labour welfare and staff welfare. The stores will come under the account team and they have to issue the materials to site as per the engineer requisition. The project manager will take care of overall control of the site, determining the overall profitability along with planning engineer, budgeting and allocating funds for the critical activities, updating the companys planning norms and unit rates for securing future work. In addition he will take care of client coordination.

Methods followed for administer and monitor. The three most important aspects of a project are the control of time, cost and quality. In which planning has to do with the breakdown of the project into elements that are appropriate for time control. The use of bar charts as a method of representing the project time plan has been in use since the beginning of this century. It was originally developed as a time planning technique called as Gantt chart. In additional we can use S Curve statement for the timely resources allocation. In Project planning the work is broken into various work packages or activities that will assist in the time management and control of the project. The various aspects of the work that contribute to the breakdown of the project in activities relate to Methods used to place the work. Skills needed for the work Crafts involved. Critical resources (e.g., Cranes, crews, etc.,) Administrative action that require time (e.g., obtaining permits, inspections etc.,) Deliveries or approvals that must be considered (e.g., approval of shop drawings, delivery of piles etc., Special activities tied to the physical properties of the materials or procedures required (e.g., cure concrete etc., The critical path calculation is the main work in project monitoring. The objectives of analyzing a project network is to Find the critical path that establishes the minimum duration of the project. Calculate the early start times for each activity. Calculate the late stat times for each activity.

Calculate the float, or time available for delay for each activity. The projection of income and expenses during the life of a project can be developed from several

time scheduling aids used by the contract. The sophistication of the method adopted usually depends on the complexity of the project. In many contracts the owner requires the contractor to prove the Scurve of estimated progress and costs across the life of the project. The contractor develops this by constructing a simple bar chart of the project, assigning costs to the bars, and smoothly connecting the projected amounts of expenditures over time. A Preliminary cost estimate is necessary before execution the work. Recommendation / Conclusions For execute the project in time and profit we has to prepare the micro level schedule and zero cost report before the execution of the work, so that we can monitor the disputes during the execution and able to sort out the problems within the acceptable duration. Bibliography / Readings Daniel W.Halpin Ronald W. Woodhead - Construction Management. John G. Betty Engineering Contracts. Construction of Hanger with Allied work Contract document.

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