SUPERVISION OF WORK DEF: to superintend, manage, control, direct, oversee. 1. Controlling and managing the work. 2.

Issuing directions and instructions to the contractor for carrying out the work. 3. Ensuring the work is executed as envisaged in the agreement according to designs, drawings and specifications. 4. Pointing out defects during execution and getting them rectified before the contractor proceeds with the next stage of work. Supervision must be done by a professional who has knowledge and skill in design and construction of engineering works. Must be by a single person as opinion, skill and judgement are involved. SUPERINTENDENCE (A) QUALITY CONTROL MATTERS 1. Ensuring the work is executed as envisaged in the agreement according to designs, drawings and specifications. 2. Materials, workmanship conforms to prescribed specs. 3. Completed work is technically sound, safe, free from defects and satisfactory to the client, 4. To make good any defective work upon instruction from architect before next stage, (B) COST CONTROL & SAFETY MATTERS 1. To minimise scope for variations 2. To foresee likely hindrances and take advance action to prevent delays 3. To ensure that the resources mobilised by the contractor are necessary and sufficient to complete the work within the given time, 4. To ensure that the work is organised properly and to coordinate the activities of all sub contractors and prime contractors. 5. To avoid wastage, infructuous expenses, holdups, accidents and mishaps, etc. GOOD SUPERVISION 1. Supervision implies criticism but the supervisor should seek to avoid the need for criticism by being constantly present and aware of what is being done. 2. Clear & unmistakable communication. 3. Construction work must be criticised if it is necessary to improve or replace it, 4. Praise may not be necessary but is appreciated. Should be appropriate and commensurate with the accomplishment. 5. Encouragement. 6. Listening to issues, feedbacks, etc. 7. Maintaining good relations among the persons involved. 8. Unbiased attitude towards all. 9. Must act under the directions of superiors unless under specific instructions in writing.

SITE MEETINGS Should be conducted in the most efficient manner consuming least time. Minimum paper work agenda, minutes & basic records. Chaired by Project/Construction Manager. Minutes must contain outcome of discussions, decisions for action, names of those required to act, target dates for accomplishment, etc. Purpose: to disseminate information & instruction. Chance to everyone to bring up objections, indicate omissions and make proposals. Construction is not a democratic process but is one in which authority flows from the construction contracts. Minutes must be circulated within a day of the meeting. Construction is a team effort so the entire team must be present. ESSENTIAL SITE RECORDS 1. SITE ORDER BOOK: Record of observations of owner/contractor/their reps; Replies & actions; defects and quality control. Maintained at the site office. Should be perused at the time of making payments. Signed by Architect and Engineer in charge in pvt projects and copies of instructions/order should be issued to all parties owner, contractor, site supervisor and for office records. 2. HINDRANCE REGISTER: Caused by owner, contractor, third parties and force majeure are recorded in this register. Reliable document to decide the extension of time in case of delay in completion. 3. WORKS DIARY: Record of daily progress. Useful to ascertain is work is going on as per schedule. To be referred to while deciding extension of time incase of delay to be duly approved by the architect. 4. MATERIAL REGISTER: Receipt, issues and balances of important materials, issued by owner or procured by contractor, are recorded in this register. Periodical physical verification. Total issues to be reconciled with the materials issued to the contractor. 5. BILLS REGISTER: Payment of advances, running bills and final bill is watched through this register. This register also indicates the state of recoveries. 6. REGISTER OF ADVANCES: The contract provides for payment of various advances. Recovery is to be made as per stipulation made in the agreement. This register will show the status of outstanding advances at any point of time.

VALUATION It is the process by which value of an asset is estimated. Valuation is not an exact science with mathematical accuracy; which is not required and which is not possible. It is judicious combination of art & science and there are no set rules which can be applied to all cases of valuation. Valuation is an intellectual guess based on certain objective factors. The deciding factors are location, quality of construction, type of building, nature of building i.e. temporary, permanent, prevailing cost of land, demand and supply. The worth of property is the essence of valuation. Valuation is considered as another type of estimation with the available data. Scientific methodology is applied in the collection of data. Sound judgement and mature experience which are the expression of the art are essential for classification, correlation and application of this data for valuation. It is a multi disciplinary subject embracing economics, law, engineering, mathematics, statistics & geography. Requires access to lots of information on cost indices, properties, land rates, cost of construction, plinth area rates and judgements related to valuation. Taste & sentiments differ from place to place. Hence a valuer must have a broad idea about the local peoples customs, habits, tastes & preferences in order to arrive at a realistic value. VALUE Represents the worth, utility and attachment to the thing in the eyes of a person. For a thing to have value, it must posses specific economic and legal qualities like utility, demand, scarcity& transferability of ownership. Concept of value differs from person to person. Hence value is a relative concept. It is a function of place, purpose & time. Value is an opinion, cost is a fact. Utility, scarcity, marketability are required to give a commodity value. MARKET VALUE The International Assets Committee defines market value as the estimated amount for which an asset should exchange on the date of valuation between a willing buyer and a willing seller in an arms length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without competition. It is the amount which might be expected to realise from a willing purchaser on a sale of property by a willing seller in the open market. In the open market meanss the property is offered for sale in such a manner that every person who desires to purchase can make an offer and necessary steps are taken to advertise its sale in all the papers and all necessary means are dopted to bring it to the notice of purchasers that the property is for sale in the market under the most favourable conditions.

FEW ESSENTIAL REQUIREMENTS OF MARKET VALUE Vendor must be willing to sell. Purchaser must be willing to purchase and must be prudent person who can put the property to the most beneficial use. No compulsion on either in the transaction. Urgent necessity of sale or purchase is to be discarded. Sentimental value to the vendor has no place. Potential use to be considered. FACTORS WHICH GOVERN MARKET VALUE Physical Legal Economic Social Utility Marketability Transferability Scarcity FAIR VALUE It is associated with stating the purpose or facility associated. The conditions and factors under which the valuation process is undertaken must also be stated to avoid ambiguity. Fair market value of an immovable property has a range of low and high depending upon the type of property and the method of valuation adopted. GUIDELINE VALUE It is the value of land recorded in the register of registrars office and is the basis to fix stamp duty at the time of registration of documents. BOOK VALUE It is the original investment on asset less the depreciation for the period passed. SALVAGE VALUE Value of the asset realised on sale when the useful span of life is over but still it has not become useless. For buildings it is considered as 10% SCRAP VALUE It is the value of old materials in an asset less cost of demolition. INSURANCE VALUE It is the value for which the building is insured. Normally the building is insured for super structure only excluding the cost of foundation and the site. POTENTIAL VALUE It is an inherent value which may increase due to passage of time or other factors. DISTRESS VALUE It is less than market value. Lower value may be due to sellers financial crisis, land locked area, sentimental reasons and nuisance. SPECULATIVE VALUE When an asset is purchased to sell the same at a profit after some duration the sale price is known as speculative value.

MONOPOLY VALUE The fancy price demanded by a vendor for few left over plots in developed colony is known as monopoly value. SENTIMENTAL VALUE Seller demands a higher price that the market value when he attaches a sentiment to his property REPLACEMENT VALUE It is the cost of reproduction of a similar asset with similar specifications at the current market rates on the date of valuation. DEPRECIATION VALUE It is the reduction in value of property due to age, deterioration, poor maintenance, obsolescence, decay, wear and tear. AUCTION VALUE Value of property which may be realised if sold in public auction. It may be in the range of 75% to 85% of market value. REVERSIONARY VALUE It is the present consideration for the full value of land obtainable after the specified period is over (i.e. after the expiry of the life of building) PURPOSE OF VALUATION (A) FISCAL PURPOSE Levy of property tax by local bodies. To fix stamp duty for registration by state govt. Levy of direct and indirect taxes by Central govt. (wealth tax & capital gains tax) To ascertain the cost of construction (to check disproportionate assets) by Income Tax dept. (B) NONFISCAL PURPOSES For real estate purposes Purchase for occupation, development or sale, speculation and for auction. For partition among partners or family members. To mortgage property as collateral, security to obtain loans from banks and financial institutions. For rent fixation under Rent Control Act. For probate of wills in courts obtaining court orders for minors. To grant compensation under Acquisition Act. To assess loss in respect of insured properties due to natural calamities or fire. For getting visa. For Bank Guarantee, Security Deposit and Earnest Money Deposit. For valuation of disproportionate assets.