21CV71 - Quantity Survey and Contracts Management

IAT-3 question bank

1) Estimate the cost by mid-sectional area (i) earthwork embankment and (ii) turfing the
sloping sides of the embankment for the portion of the road 300m long. Formation level
at 0m is 106.8m and has a downward gradient of 1:100. Formation width – 10m. side
slopes of embankment 2:1 (H:V). Take the cost of earthwork for embankment at Rs
44.00 per cu. m and cost of turfing at Rs. 25.00 sq.m.

Distance 0 50 100 150 200 250 300

Ground 105.42 104.30 104.80 104.00 102.90 102.00 102.60

level

2 Write a note on the Tendering process.

• Pre-Tender action: include all the activities prior to the announcement of Tender, which
involves
• Preparation of Documents
• Layout plan
• Set of the drawing
• Specification
• Schedule of rates
• Conditions of contract
• Security deposit
• Mode of payment
• Preparation of ‘Notice Inviting Tender’(NIC)(Form – 6), ‘Invitation for
Tender’(IFT) or ‘Invitation to Tender’(ITT)
• Printing Tender form with standard conditions of contract
• Issue or publication of Tender Notice in NEWS paper, Notice board, web
site(bbmp.gov.in/tender)
• Post-Tender action: means the activities which follows after the issue of Tender Notice
• Bid submission
• Opening of Tender
• Acceptance of Tender
• Award of Contract

3 Mention the points to included in Tender notice

 • Mode of submitting the tender (sealed or open tender)
• Nature of work and its location
• Estimated cost of work
• Amount of earnest money
• Amount of security deposit
• Last date for issue of blank tender form
• Last date for receipt of filled tender form
• Cost of blank tender form
• Name of inviting authority
• Duration of work
• Competent authority to receive the tender
• Opening procedure of tender
Reservation of rights to reject any or all tender

4
Write a note on Earnest money and Security deposit.
Earnest Money: is an assurance or guarantee in the form of cash on the part of the contractor
to keep open the offer for consideration and to confirm his intentions to take up the work
accepted in his favour for execution as per terms and conditions in the tender. In case of
tenderer fails to commence the work awarded to him, the earnest money is forfeited to
government. The amount of earnest money is generally 2% of the estimated cost.
Security deposit: is an amount of money which shall be deposited by the contractor whose
tender has been accepted in order to render himself liable to the department to pay
compensation amounting to the part or whole of his security deposit if the work is not carried
out according to the specification and conditions of contract.10% of the amount is deducted
from the progressive bills as security deposit.

5
Define a contract and write its essentials.
• Contract: An agreement which is enforceable by law is a contract as per Indian Contract act
1872.
• Essentials of contract
Minimum two parties
Offer and acceptance
Competent parties
Free consent
Intention to create legal obligation
Lawful object
Not a void

6
List out the documents that must be the part of construction contract
• Title page
• Index
• Tender notice
• Tender form
• Letter of acceptance of tender
 • Conditions of contact
• Schedule of items of work
• Drawings and detailing
• EMD & SD
7
Distinguish between ‘Entire contract’ and ‘Sub contract’
Entire contract is a type of contract where the promise in a contract needs to be fulfilled by both the
parties. The object of this type of contract is to fulfill the contract in its entirety. This type of
contract is also known as indivisible contract.
Sub Contract: Agreement, purchase order, or any such legal instrument issued under a prime
contract (by the prime contractor to a third party the subcontractor), calling for the performance of a
defined piece of work or production and/or delivery of specified goods or services. Subcontracts
contain special terms and conditions that are unique to the prime contract, and flow-down
provisions that proceed from it.
8
List and explain the contents of an engineering contract document.

The contents of an engineering contract document

1. Contract Drawings and Specifications
The contract drawings include the architectural drawings, the structural/geotechnical engineering
drawings, and the building services engineering drawings. These drawings provide information
regarding the arrangement of spaces, structural components, electrical, mechanical and plumbing
installations etc.

Specifications simply amplify the information given in the contract drawings and bill of quantities.
It describes in details the work to be executed under the contract and the nature and quality of
materials, components, and workmanship.

2. Priced Bill of Quantities

A priced Bill of quantities is a required document of contract that has its rate and amount column
filled by a contractor. A bill of quantities consists of a schedule of items of work to be carried out
under the contract with quantities entered against each item, prepared in accordance with the
Standard Method of Measurement of Building Works

3. Construction Programme
This is a document that is prepared in order to provide the project participants a thorough
appreciation of the work involved, to allow the site production team to sort out its main constituent
and decide how, in what order and at what time to do them, and to ensure adequate coordination of
the labour, materials and machinery requirements.

4. Project Quality Management Plan

The Project Quality Management Plan defines the various quality related activities and procedures
which will be implemented on the project. It sets down requirements, gives guidelines, provides
information and indicates to appropriate personnel, the procedures to be followed with respect to the
 Project Quality Management Plan. A sample outline of the Project Quality Management Plan
is referred to in the appendix.

5. Project Health and Safety Plan

The Project Health and Safety Plan is a document developed to secure the health, safety and welfare
of persons who will work or visit the site. It was also developed to control the emission of toxic
substances into the atmosphere and control the keeping and use of substances that might be
hazardous to health. An outline of the Project Health and Safety Plan is delineated in the appendix.

6. Conditions of Contract
The conditions of contract define the terms, under which the work is to be undertaken, the
relationship between the client, architect and contractor, the duties of the architect and contractors,
and the terms of payment.

7. Risk Insurance
This is a contract document which shows that all the personnel and equipment associated with a
construction project have been insured against loss or damage. By insurance, all the risks associated
with personnel and equipment in a construction project is transferred to a third party.

9 List all the conditions of contract.

1. The Supplier shall supply to the Purchaser completely all Engineering, Equipment, Special Tools,
Additional Spare and Replacement Parts and Documentation including interfaces, Services and
other things of all kinds necessary for the carrying out, completion and maintenance of the Work
in accordance with the Contract. The Supplier undertakes that if during the implementation of the
Contract, it fails to supply any items which are required for the safe and reliable operation of the
Equipment or for achieving the functions and performance as stipulated in the Contract, such
items shall be supplied by the Supplier at no additional cost to the Purchaser
2. Payment shall be considered as effected at the time when payment is made by the Purchaser. Original
payment document shall be sent by the Supplier directly to the Purchaser
3. Should the dates of payment release fall into any of the statutory holiday, the payment shall be
effected on the following Working Day, and the deferment shall not be regarded as delay of the
payment.
4. All banking charges incurred in connection with the Purchaser’s Banks shall be borne by the
Purchaser otherwise all banking charges incurred shall be borne by the Supplier. The Supplier shall
establish and implement a Quality Management System which shall comply with ISO9001: 2000
Standard
5. The Supplier shall establish a Project Quality Assurance Program (hereinafter referred to as the
“program”) for this Contract after taking into account scope and nature of the Contract,
Specifications, quality warranties and quality control requirements and prepare management
procedures and work instruction to meet the contract requirements, if necessary
6. During manufacture, the Supplier shall be responsible for all inspection, examination and testing
(“In-factory Acceptance Tests”) of the Equipment to be supplied under the Contract and the costs
thereof, including that of its Sub-suppliers, prior to completion. Such inspection and examination
shall be according to the standards and codes stipulated in the Contract, or where standards and codes
are not specifically defined, in accordance with appropriate and generally accepted practice for the
Equipment in question
 7. The Supplier shall fully indemnify, defend and hold harmless the Purchaser, the Purchaser’s
affiliates, officers, directors, agents and employees from and against any and all actual, direct or
indirect losses, damages, liabilities, injury, actions, claims, costs and expenses (including the fees,
disbursements and other charges of counsel reasonably incurred by the Purchaser in any action
between the Supplier and the Purchaser or between the Purchaser and any third party in connection
with any investigation or evaluation of a claim or otherwise) resulting from or arising out of any
breach by the Supplier of any warranties, covenants or agreements in this Contract or other
agreements in connection with this Contract, provided always that the same is due to any negligent
act or omission of the Supplier or its Sub-suppliers and their respective servants or agents or
materials or workmanship
10
Explain the following
a) Earnest money
Earnest Money Deposit (EMD) means Bid Security/ monetary amount or financial guarantee to be
furnished by a bidder along with its bid. Earnest Money Deposit (EMD) means Bid Security/ monetary
or financial guarantee to be furnished by a Bidder along with its tender.
b) Security deposit
The contractor is required to deposit with the owner a sum stated as a percentage of the cost of the work
in order to safeguard the interests of the owner in the event of improper performance of the contract
11
List out the conditions under which contract may be terminated by the employer.
(a) If a party's failure to perform its obligation amounts to a fundamental non-performance, the other party
may terminate the contract.
(b) The right of a party to terminate the contract is exercised by notice to the other party.
(c) If performance has been offered late or otherwise does not conform to the contract the aggrieved party
will lose its right to terminate the contract unless it gives notice to the other party within a reasonable time
after it has or ought to have become aware of the offer or of the non-conforming performance.
(d) Termination of the contract releases both parties from their obligation to effect and to receive future
performance.
(e) Upon termination of the contract either party may claim restitution of whatever it has supplied, provided
that such party concurrently makes restitution of whatever it has received. If restitution in kind is not possible
or appropriate allowance should be made in money whenever reasonable. However, if performance of the
contract has extended over a period of time and the contract is divisible, such restitution can only be claimed
for the period after termination has taken effect.
(f) Termination does not preclude a claim for damages for non-performance.
(g) Termination does not affect any provision in the contract for the settlement of disputes or any other term
of the contract which is to operate even after termination

12
Write and explain step by step the Tender Evaluation Process.
• Pre-Tender action: include all the activities prior to the announcement of Tender, which involves
• Preparation of Documents
• Layout plan
• Set of the drawing
 • Specification
• Schedule of rates
• Conditions of contract
• Security deposit
• Mode of payment
• Preparation of ‘Notice Inviting Tender’(NIC)(Form – 6), ‘Invitation for Tender’(IFT) or
‘Invitation to Tender’(ITT)
• Printing Tender form with standard conditions of contract
• Issue or publication of Tender Notice in NEWS paper, Notice board, web
site(bbmp.gov.in/tender)
• Post-Tender action: means the activities which follows after the issue of Tender Notice
• Bid submission
• Opening of Tender
• Acceptance of Tender
• Award of Contract