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PGPM – 14
CONTRACTS MANAGEMENT
V.RAMMOHAN.
(Reg.No.211-07-31-9614-2131)
The project consists of construction of an industrial building with R.C. portal structure
admeasuring 50 M x 18.75 M x 21.25/ 15.5 M. The building should have asbestos-free, fiber
The Contract is of item-rate based and was awarded after processing through
competitive bidding in the Public Tender under CPWD works procedure. The estimated cost of the
project was Rs.4.08 Crores and the completed cost of the project was Rs.4.75 Crores. The stipulated
duration of the project was 12 months but the final completion period of the project was 24 months.
In this Contract, payment for work done is made on the basis of the quantities of work
actually executed and measured, materials supplied and used by the contractor on the project, each
such quantity being multiplied by the Contractor’s corresponding unit rate given in his tender for that
item. In this type of contract, reasonable variations in the tender quantities of the work do not make
any substantial difference to the Contractor as he gets payment for the actual work at rates specified
in the tender.
For Contractor to submit this item-rate tender, he was provided with general
specifications, designs and drawings together with estimates of quantities so has to enable him to
assess the magnitude, character and difficulty of the work and the probable cost at which he can
execute it. The Contractor would be entitled to claim an adjustment in his compensation if the actual
work proves to be considerably different in specifications, quality and quantity from the data
presented to him at the time of invitation to tender. The main satisfaction is that he gets unit rates for
position to know the actual cost of the job till its completion. But he has an advantage of an earlier
start of the work pending, complete detailing of entire work, along with the progress of construction.
At the same time both the Employer and the Contractor will have to keep the detailed accounts of
materials, equipment and work for purpose of making interim payments, and for Employer to watch
the progress of expenditure. Even in item-rate tenders, all items are not priced such as those for site
clearance, dewatering, shoring, grading and clearing of site after completion of foundations, etc.
1. The building is situated amidst the intensive working-plant area with restricted physical and
administrative accessibility.
2. The exposure conditions are severe because of the chlorine fumes released by the adjacent
facilities and thus precautions were to be exercised for protecting the health of construction
3. The height of the building is 21.25M. at ridge level and 15.5M. at eve’s level with an
intermediate mezzanine at 5.6M. Lvl. A close monitoring of the manpower was required as
4. The building is spanned over a large width of 18.75M. without any intermediate supports.
5. M-35 grade of concrete with due anti-corrosive painting for the reinforcement and concrete
surfaces was implemented for the structure for corrosion resistance and corrosion monitoring
6. A 10T. Capacity electrically operated crane was to be installed at eve’s level for the major
length of the building with implementation of adequate safety guideline during construction
7. UPVC framed windows and FRP louvers were to be installed for openings to have the
Chief Executive
Head of Civil
Engineering
Division
Project Engineer
Site Engineer
Supervisor Supervisor
Chief Executive:
The Chief Executive gives the directive and is the final authority for approvals for the
Project for all the issues related to technical and financial matters. He also has the power to sanction
the financial approval for the resolved discrepancies, etc. which is amounting to the excess cost of
The Head of Civil Engineering Division directs the Project Engineer to initiate the
Project. The Head (CED) releases the approval letters to the Contractor and Project Engineer to
commence the work. He is the final authority to approve and sign on the measurements for final
bills, etc. subsequent to the verification of the Project Engineer. He has the power to resolve any
Project Engineer:
Project Engineer is the main coordinator for the project between the Employer and the
Contractor. He is the person who does the planning of Schedule of Work Progress and monitors the
periodical progress of the work. He is involved in all the technical/ review meetings with the
Contractor during the execution of the Project. Contractor should address any discrepancy arises
during the execution of the Project to the Project Engineer only with due coordination of the Site
Site Engineer:
Site Engineer is the person deputed on the site for close monitoring of the progress of
the project. He communicates all the technical information to the representatives of the Contractor
working directly on site. He receives instructions from the Project Engineer and executes the project
under his guidance with the help of supervisors assisting him. He is responsible for timely recording
of the measurements of the works and calculating the quantities of items for running bills and final
bills. He coordinates with all concerned Divisions of the Department like Safety, Utilities, etc. for
obtaining the permits and the smooth coordination of the Site Execution of the Project. He is the
person responsible for the follow up with Contractor for daily progress of the work.
Supervisor:
Supervisor is the person monitors every activity of the site very closely and helps Site
Engineer in monitoring the Quality of Construction. He helps the Site Engineer in checking the
technical aspects of the Construction, taking the measurements of the items after the completion of
the work, etc. He has to keep the first hand information of all the activities that are taking place in the
site and keep a close watch on the Construction labour employed by the Contractor for the
Chairman
Project
Engineer
Chairman:
The Chairman of the Company is the Proprietor and reserves all the final rights of the
activities of the Company. He is the decision making authority in participation for the tenders and
quoting the rates for the concerned works. He does make the policy decision in a broader perspective
Project Engineer:
Project Engineer is the Key Coordinator between the Client and the Management of
the Company. He coordinates regularly with the Project Engineer from the Department (Employer /
Client) for all the activities pertaining to the progress of the Project. He is the person who
communicates all the matters to the client on behalf of the Contractor through their Project Engineer.
He is the sole responsible person for the progress and quality of construction of the Project. He has to
make periodical schedules and plan for the resources like material and man-power.
Site Engineer:
Site Engineer is the person deputed at Site for having a close monitoring of overall
activities of the Project and take all the precautionary measures for avoiding delay or hindrance to
the work. He does monitor the progress of the Project to proceed as per the schedule with committed
Quality.
Safety Engineer:
Safety Engineer is responsible for the safe progress of the construction as per the
guidelines of OHSAS 18001. He has to monitor day to day activities to go in compliance with safety
norms. He has to educate the Construction labour and all others concerned in this aspect and should
exercise the precautionary measures to avoid the accidents. He should monitor the usage of
“Personal Protective Equipment” by the construction personnel and should make the first-aid kit
available at site all the time. He should also make the arrangements for the exit in case of the
emergency.
Supervisors:
Supervisor receives the instructions from the Site Engineer and implements the same
in the site execution through the construction labour. He controls the construction labour and checks
the progress of the work directly and makes note of the daily progress and deviations and brings to
the notice of Site Engineer. He helps the Site Engineer in recording the measurements for the
preparation of the bills of quantities. He works as a communicator between the Site Engineer and the
labour.
Contractor carried out the work as per the drawings, bills of quantities and
proceeds, and at the unit prices tendered by the contractor in the bill of quantities.
The work was monitored by the Department through periodical Bar-Charts and
each item of work to be executed and the contractor enters the unit rate against each item of work.
The basis of agreement is thus the unit rate of each item, certain reasonable variations in the
The Project Engineer of the Contractor was preparing the bills periodically and
submitting the same to the Project Engineer of the Department. The Site Engineer (Department)
either accompanied the Site Engineer (Contractor) while the measurements were being taken or
checked the measurements and quantities afterwards in consultation with the Project Engineer
(Department). If no discrepancy found, the bills were recommended by the Project Engineer (Dept.)
for the payment. The amount recommended by the Project Engineer (Dept.) was the cost of the work
less the retention money and the cost of materials supplied to the contractor from the department if
any. If any item which was not included in the bill of quantities, occurs during the execution, it was
usually constructed by a combination of other items already in the bill, otherwise it was paid for as
1. The allotted time for the project is inadequate due to its location and working environment
surrounding the site. This has resulted in taking the subsequent approvals of periodical
extensions of time. This has caused some inconvenience at times during the progress of the
work. This embarrassment could be avoided if the time period could be assessed reasonably.
2. There was a considerable delay in handing over the site to contractor due to the delay in
obtaining the Safety-Clearance from the Safety Engineering Division of the Department. This
could have been planned well in advance and avoided the delay.
3. The scope of the project was enhanced during the execution amounting to extra expenditure
and time-duration of the project which could have been foreseen much in advance by the
users.
4. Specifications of certain items were changed, for example the Asbestos roofing sheets, PVC
windows were substituted by the alternative materials during the progress of the work which
could not be envisaged during the preparation of the Tender Documents. This resulted in
working out “Extra Items” and extra duration of time for the project.
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