All contracts in India are to be within the framework of the Indian Contract Act, 1872, which lays down the general principles relating to ...
All contracts in India are to be within the framework of the Indian Contract Act, 1872, which lays down the general principles relating to formation, performance and enforceability of contracts. NHAl officers responsible for drawing up the contract documents should keep these principles in mind.
4.2 Definition
4.2.1 When two or more persons have a common intention communicated to each other to create some obligation between them, there is said to be an “agreement.” An agreement which is enforceable by law is a “Contract.”
4.2.2 According to Indian Contract Act, 1872 only those agreements are enforceable by law which are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object and are not expressly declared to be void. This is subject to any special law according to which a contract should be in writing and attested by witnesses.
4.2.3 For the purpose of an agreement, there must be a communication of intention between the parties there to. Hence in a Contract there is:
(a) A proposal and its communication
(b) A communication of the acceptance of the proposal.
4.3.1 Lump Sum Contracts In these contracts the contractor agrees to execute the complete work with all its contingencies in accordance with the specified terms for a fixed sum. Either the Employer or the contractor may provide the detailed design. In the former case, the estimates have to be firm and all working drawings made available in the beginning. In the latter case, the design and' the drawings furnished by the contractor will conform to the parameters and functional and design requirements enunciated in the tender documents, and require the approval of the Employer. A schedule of rate is specified in order to regulate the amounts to be added to or deducted from the fixed sum on account of additions and alterations not covered by the contract. Such types of contracts will be a good option in case of large bridge projects where the aims are
(i) innovativeness of private initiative
(ii) economy made possible by the contractor having standardized the design, bridge components, formwork modules, and technology, and
[Preview ##eye##] [Download ##download##]
(iii) speed of construction.
4.3.2 Item Rate (Unit Price) Contracts In these contracts, the work is broken down into distinct categories, and the quantities of each category of work are calculated from the drawings, as accurately as possible. The contractor is required to quote for individual items of work on the basis of bill of quantities (BOQ) furnished by the Employer. The payment is made for the measured quantity at the rate set out in the contract. The contract carries necessary provisions to value variations.
This will be the most commonly used contract type for NHAI works. Specifications, design, drawings and the contract conditions have to be critically appraised before the procurement process, in order to minimize the incidence of internal inconsistencies and variations.
This type of contract works best when the work does not involve major design process and directions, and simple drawings are sufficient for execution. It saves on the time and effort of detailed design before procurement process. Emergent repair works are best handled by such contracts.
The detailed project reports should invariably suggest the kind of' contract and the rationale of choosing one alternative in preference to the other. The officer empowered for accepting the detailed project report should give consideration to the appropriateness of the choice.
4.4 Types of Contracts -Based on Ways Parties are arranged These contracts are of the following types.
4.4.3.2 Highway related facilities, such as the ones given below can be an integral part of the BOT project.
(a) restaurants
(b) hotels /motels
(c) cargo terminals
(d) warehouses
(e) vehicle component shops
(f) Insurance and medical facilities
(g) commercial and residential complexes
4.2 Definition
4.2.1 When two or more persons have a common intention communicated to each other to create some obligation between them, there is said to be an “agreement.” An agreement which is enforceable by law is a “Contract.”
4.2.3 For the purpose of an agreement, there must be a communication of intention between the parties there to. Hence in a Contract there is:
(a) A proposal and its communication
(b) A communication of the acceptance of the proposal.
4.3 Types of Contract -Based on Method of Payment
The most common types of contracts and their field of adoption are as under.4.3.1 Lump Sum Contracts In these contracts the contractor agrees to execute the complete work with all its contingencies in accordance with the specified terms for a fixed sum. Either the Employer or the contractor may provide the detailed design. In the former case, the estimates have to be firm and all working drawings made available in the beginning. In the latter case, the design and' the drawings furnished by the contractor will conform to the parameters and functional and design requirements enunciated in the tender documents, and require the approval of the Employer. A schedule of rate is specified in order to regulate the amounts to be added to or deducted from the fixed sum on account of additions and alterations not covered by the contract. Such types of contracts will be a good option in case of large bridge projects where the aims are
(i) innovativeness of private initiative
(ii) economy made possible by the contractor having standardized the design, bridge components, formwork modules, and technology, and
[Preview ##eye##] [Download ##download##]
(iii) speed of construction.
4.3.2 Item Rate (Unit Price) Contracts In these contracts, the work is broken down into distinct categories, and the quantities of each category of work are calculated from the drawings, as accurately as possible. The contractor is required to quote for individual items of work on the basis of bill of quantities (BOQ) furnished by the Employer. The payment is made for the measured quantity at the rate set out in the contract. The contract carries necessary provisions to value variations.
This will be the most commonly used contract type for NHAI works. Specifications, design, drawings and the contract conditions have to be critically appraised before the procurement process, in order to minimize the incidence of internal inconsistencies and variations.
4.3.3 Percentage Rate Contracts In this type of contracts
the contractor is required to quote his rate in terms of percentage above or below the rates given in Bill of Quantities (BOQ) for various individual items of work. The payment is made for the measured quantity. Contract provisions are made to determine price of the items not included in the schedule of rates. In the absence of a standard schedule of rates, a project specific schedule of items and their rates is drawn.This type of contract works best when the work does not involve major design process and directions, and simple drawings are sufficient for execution. It saves on the time and effort of detailed design before procurement process. Emergent repair works are best handled by such contracts.
4.3.4 Turnkey Contracts In these, design and engineering,
supply and installation of equipment and construction of complete works are all provided under one contract. Alternatively, the client may remain responsible for the design and engineering, and invite bids for a single responsibility contract for the supply of all goods and works required for the project component. This type of contract saves on co-ordination effort and is useful for time bound commissioning of the facility. Budgets can be drawn with greater a certainty in such kind of contracts.The detailed project reports should invariably suggest the kind of' contract and the rationale of choosing one alternative in preference to the other. The officer empowered for accepting the detailed project report should give consideration to the appropriateness of the choice.
4.4 Types of Contracts -Based on Ways Parties are arranged These contracts are of the following types.
4.4.1 Management Contracts
In these the Employer engages a design consultant to design the works, and then a management consultant to arrange construction through a contractor.4.4.2 Design and Build Contracts
Here, the Employer, either directly or through an adviser, states the project requirements (financial as well as technical) in general terms and invites contractor to submit proposals and terms of payment for the design, construction, and possible commissioning of the project. 'Design and Build' contractor may be a consortium of contractors and consulting engineers getting together in a project specific arrangement to command all the resources required to bid for such a project.4.4.3 BOT (Build, Operate and Transfer) Contracts
4.4.3.1 The concept envisages a consortium of financiers, contractors and consultants offering to construct some project, which would otherwise consume public money, at their own cost. They recover their cost, along with profit, over a period of time in which they operate the facility and collect fee from the public who make use of the facility. After the concession period, the ownership of the facility is transferred to the Employer.4.4.3.2 Highway related facilities, such as the ones given below can be an integral part of the BOT project.
(a) restaurants
(b) hotels /motels
(c) cargo terminals
(d) warehouses
(e) vehicle component shops
(f) Insurance and medical facilities
(g) commercial and residential complexes
Nice templates
ReplyDelete