NCP 23 Final

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PROJECT NAME: PLUMERIA GARDEN GREATER NOIDA U.P.

SCOPE OF WORK :

Scope of work for the proposed Multi Storied Housing Complex with basement

below the tower shall broadly comprise of the following:

Areas:

Floor Area in Super Structure is 365559.97 sq.ft.

Floor Area in Basement is 25115.42 sq.ft.

Area of Raft is 30675.57 sq.ft.

The scope of work shall comprise mainly of carrying out construction work for the proposed

multi storied residential complex (Ground + 14 story maximum + machine room & roof top

water tank) covering approx. 365559.97sq.ft. of Super structure

floor area and approx. 25115.42 sq.ft. of basement floor area (under tower only).

The Contractor shall arrange all materials, labour & equipments as required for successful

completion of the work. Work shall be executed as per C.P.W.D. specification, Quality Plan,

BOQ Technical Specification attached to BOQ and as per approved drawings and direction of

Engineer In-charge of Crossings Infrastructure Pvt. Ltd. The site shall be handed over to M/s.

ABC Developers Pvt. Ltd. with complete excavation and laying of hard core surface. The Contractor

shall be completing the entire work of the proposed housing complex and handover the complete

apartments as per the following broad specification:-

Structure: Earthquake resistant structure duly vetted.

External Finish: Most Modern & Elegant finish with texture paint.

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Internal Finish: All internal walls shall be plastered & painted in off white shade with oil

bound distemper & ceilings in white. Plaster of Paris punning &Cornices is to be done in

Drawing/Dining room and Bedrooms.

Flooring: Drawing/Dining/Kitchen to have vitrified Tiles. Bedrooms to have wooden

laminated flooring. Ceramic Tiles Flooring in toilets and balconies.

Doors/Windows: All external doors and windows are to be of UPVC/aluminium glazing. All

Internal and main entrance door frames in mirandi wood with Skin Moulded main door and

all internal with Flush door shutters duly Painted.

Hardware: All shutter hinges in steel. All internal and main entrance door frames with

aluminium powder coated fittings with mortice lock in bedrooms. All external doors and

windows with aluminium fittings.

Kitchen: Granite working platform with 2 ft. high glazed ceramic tiles above itwith stainless

steel sink. Independent RO system.

Electrical: All copper wiring in P.V.C. concealed conduit. Provision for adequate light and

power points as well as telephone & TV outlets with Modular Switches and protective

M.C.B’s.8

Water Supply: Underground and overhead water tanks with pumps for uninterrupted

supply of water.

Toilets: Provision for Hot & Cold water system without Geyser. Glazed tiles in pleasing

colours on walls up to door level. European W.C’s, washbasins &cisterns in white shade of

Standard make. Chrome plated fittings of standard make.

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Water Proofing: Waterproofing of basements, all Terraces and toilet areas. Toilets and

Kitchen Sink areas to have false ceiling.

Services: Provision of 2 nos. lift/tower with complete machine room. ii) All Plumbing,

Sanitary and Electrical works as per specification inside the building and connection up to

the Main Feeder/Ring Main. iii) Storm Water and Sewerage line to be connected to main

feeder near the tower. iv) Fire fighting system inside the building with provision of fire

hydrant in each floor for all towers but no sprinkler system

TYPE OF CONTRACT:

Item Rate Contract: Also called a schedule contract, in this contract, the contractor

undertakes the execution of work on an item rate basis. The amount to be received by the

contractor depends upon the quantities of various items of work actually executed. The

payment of the contractor is made on the basis of detailed measurements of different items

of work actually done by him.

Suitability: The item rate contract is most commonly used for all types of engineering works

financed by public or government bodies. This type of contract is suitable for works which

can be split in to various items and quantities under each item can be estimated with

accuracy.

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• In this type contract, there is no need for detailed drawings at the time of allotting

contract as in the case of lump sum contract. The detailed drawings can be prepared after

the contract is awarded.

• Changes in drawings and quantities of individual items can be made as per requirement

within agreed limits.

• The payment to the contractor is made on the actual work done by him at the agreed

rates.

Contract Data Sheet

Sr.

No.

Clause Ref No. Description The Contract Data

1 Company

2 Project Manager

3 Mobilisation Advance 10%

4 Insurance

5 CAR Policy For amount of Rs.

.Validity ….. Months

6 Workmen’s Compensation Policy For amount of

Rs….Validity …..

Months

7 Third Party Insurance For amount of


Months

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8 Any other Insurance Cover For amount of


Months

9 Time for Completion and Programme of

Work

10 Commencement of work After … days from

the date of the

Notice to so on

11 Material to be supplied by the Company

12 Tools, Plants and Equipment supplied by

the Company

13 Supply of Water & Electrical Power 1.5% OF THE R.A

BILLS

TIME SCHEDULE:

The time allowed for execution of the work indicated at scope of work shall be the essence

of the contract.

The work shall be carried out and completed strictly as per the following time schedule: -

• Completion of total structure: 18 months from LOA

• Total completion including finishing: 24 months from LOA

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1.1.1 The activity wise time schedule shall be indicated in Bar Chart to be submitted prior to issuance

of Letter of Award. The Contractor shall strictly adhere to the time schedule of all activities as

mutually agreed.

1.1.2 Quantities given in the schedule (BOQ) are provisional. The quantity given in the BOQ may vary

up to any extent. The Contractor will have no claim on account of variation of quantities and shall be

liable to carry out the quantity under variation as per his item wise agreed rate. The overall variation

limit of the contract value shall be ± 30%.

1.1.3 The rates for all items covered under the BOQ or any other items which may crop up during the

execution are for all leads, lifts and heights.

2.0 The rates as agreed between XYZ Pvt. Ltd. And M/s.ABC Developers Pvt. Ltd. shall remain firm

and valid for a period of 30months beyond which the same shall be reviewed.

3.0 PAYMENT OF RUNNING ACCOUNT (RA) BILLS:

The Contractor shall submit monthly RA Bills by 1st of every month along with supported

measurement sheets. 70% of the certified amount shall be paid within 10 days and balance shall be

paid within 20 days of the certification of bill. The minimum value of interim Running Account Bills

shall not be less then Rs. 25 lacs. 5%security deposit shall be deducted from each Running Account

Bills. The cumulative amount of Security Deposit deducted from RA Bills shall not exceed Rs. 100

lacs.50% of security deposit so deducted shall be released within three months of virtual completion

of the work which would be certified by the Engineer-in-Charge and the Architect. Balance 50% shall

be released after completion of defect liability period of 12 months. The Contractor shall furnish

guarantee for anti-termite treatment towards satisfactory performance for a minimum 10 years

from the date of final completion of the works on an approved Performa.

4.0 ADVANCES

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4.1 Types of advances Subject to the conditions provided herein, the Contractor may avail of the

following advances for the execution of the Works:

a. Mobilization advance

b. Advance against materials at site.

4.2 Mobilisation Advance

4.2.1 For completing preliminaries such as construction of site office, hiring of accommodation,

labour hutments, arranging electricity and water supply and movement of staff, labour plant and

machinery, an advance specified in the Contract Data and as required by the Contractor shall be

payable against a Bank Guarantee of a Scheduled Bank duly approved by the Company for an

equivalent amount of advance in a format acceptable to the Company

.4.2.2 Such advance shall be given only after the Contractor has submitted the Performance Security

and executed the formal Contract and the Company is rightly entitled to check that this Mobilization

Advance is utilized for the the purpose envisaged in the Contract

4.2.3 Recovery of Mobilisation Advance

Recovery of mobilization advance shall be made by deduction from the contractor’s bills

commencing after the first 10% (Ten percent) of the gross value of work duly certified is executed

and paid, on pro-rata percentage basis calculated @ 15% of the gross value of certified work billed

beyond 10% of the completed work in such a way that the entire advance is recovered by the

time80% (eighty percent) of gross value of contract is executed and paid. The Bank guarantee for the

advance shall be initially for the full amount and valid for a period of ________months beyond the

period of defect liability .period, and be kept renewed from time to time to cover the balance

amount and likely period of complete recovery.

4.3 Advances against Material at Site

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Advance on account of main non-perishable construction materials required for incorporation in the

permanent Works, shall be paid on request of the Contractor after these materials are brought to

site, against an Indemnity Bond duly executed. The Indemnity Bond will be furnished in a Form

acceptable and approved by the Company. The advance shall be limited to 75% of the actual value of

the materials or the value as assessed by the Project Manager and the total advance on account of

construction materials at a time shall be limited to 3% (three percent)of original Contract Value or

likely average consumption of such materials for three months whichever is less and at any time the

total outstanding advance against material at site shall not exceed four percent of the original

contract value. The valuation of the average consumption of such main construction materials shall

be approved by the

Project Manager. For the purpose of valuation of the aforesaid materials, all incidental charges such

as packing, handling, freight, transportation, storage, etc shall be excluded. The Contractor shall be

bound to store the materials at the site of work earmarked for this purpose and shall not remove

them from the site or use them for any purposes other than execution of the Works. If any material

is rendered surplus, the Company shall not take over such materials, and the Contractor shall

remove the same from the site of work within 7 days from the date of completion of the Works.

4.4 Written Request for advance

Advance as admissible under the Contract, shall be payable only after the Contractor makes a

written request for the same to the Company. The amount payable shall be the amount applied for

by the Contractor, subject however to the conditions and limitations given herein

5.0DEFECT LIABILITY PERIOD:

Defect Liability Period of the Contract shall be 24 months from completion of the work under

different phases. The Contractor during the said Defect Liability period shall be responsible to make

good and remedy at his own expenses all defects pointed out by the Engineer-in-Charge.

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6.0EXTRA ITEM:

In case any item not covered in the BOQ is required to be carried out, the rate for the same shall be

derived from the nearest similar item available in the BOQ. However, in case no such similar item of

work exists in the BOQ, the rate for the same shall be derived as per market rate + 10% profit.

Material and Labour component for such extra item shall be as per norms given in DAR. (Latest

revision)

7.0 The WCT shall be borne by the Contractor. The Contractor will be required to get himself

registered with the sales tax department before commencing the work. As per the existing law,

under the relevant clauses for the Work Contract Tax, the Contractor shall be able to get the road

permit and ‘C’ form which shall be issued by the concerned authorities in his name without any tax

liability. You have to submit copy of registration in regard to service tax.8.0T.D.S. shall be applicable

as per Governing rules of Income Tax Act. All taxes will be applicable as per rules.

9.0PROGRESS REPORTS AND REVIEW:

The Contractor shall submit monthly progress report by 7thof next month and shall attend

fortnightly progress review meeting at site.

10.0 The Contractor shall deploy one Project Manager (BE in Civil Engg. with 12-15yrs. experience)

and at least 2 experienced Engineers (5-7 yrs. experience) required Supervisors, Foreman etc. for

execution of the work. You have to submit registration copies in regard to E.S.I. & P.F. And also have

to submit copies of contribution on this A/c from time to time.,

11.0 The Contractor shall deploy all resources (Labour, machine, equipment and materials etc.) to

maintain the required rate of progress and of quality to ensure workmanship of the degree specified

and to the satisfaction of the Engineer-in-Charge/Project Manager of the Owner.12.0The Contractor

shall make all arrangements for Electricity and water supply required for the construction work at his

own cost and shall also provide required D.G. Sets

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All disputes of any kind whatever arising during the progress of work or after their completion, shall

be settled by the Arbitrator appointed by the Owner under the provision of Arbitration and

Conciliation Act, 1996 as amended from time to time including provisions in force at the time the

reference is made and their decision shall be final without any appeal. The venue of

Arbitration/jurisdiction shall be Ghaziabad only.

20.0 During progress of work if any defects of whatsoever nature are found by Architect/engineers,

the same shall have to be rectified within 3 days of intimation. If any building material brought to

the site, does not meet the specifications of CPWD, the same shall have to be removed immediately

from the site. In case any legal dispute arises out of this contract, the same shall be settled in

Ghaziabad Courts.

21.0 DRAWINGS:

Drawings duly signed by the Architect / Consultants are diagrammatic but shall be followed as

closely as actual construction permits. Any deviations made shall be inconformity with the direction

and approval of the Owner. Architectural drawings shall take precedence over Structural drawings,

which in turn shall take precedence over services drawings in regard to all dimensions. The

Contractor shall verify all dimensions at the Site and bring to the notice of the Owner. For

discrepancies if any, the Owner’s decision in this respect shall be final.

22.0 WORK TO BE CARRIED OUT BY LICENSED PERSONS/FIRMS:

Technically competent persons or firms holding valid licenses shall only carry out any special service

installations included in the scope of the Work.

INSPECTION AND TESTING OF MATERIALS;

The Contractor shall, if so required, produce manufacturers' test certificates for any particular batch

of materials supplied by him. The tests carried out shall be as per relevant Indian Standards and shall

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be carried out at Government approved test facility. For checking setting out and testing materials at

the Site the Contractor shall provide the following minimum apparatus/ testing equipment:

Theodolites

Automatic levels

Steel tapes

Weighing machines

Spirit levels, plumb bob

Micro meters

Thermometers

Hydraulic testing machines

Smoke test machines

Complete concrete testing lab equipment

Moisture meters

complete sets of sieves

Oven.

Slump Testing Apparatus

Cube Moulds

Balance all such equipment shall be calibrated at specified frequency for accuracy at a Testing

Facility approved by the Owner. The Contractor shall get other tests carried out at his own cost at

approved laboratory as per the directions of the Owner.

22.0 REFERENCE DRAWINGS:

The Contractor shall maintain on site one set of all drawing issued to him for reference.

SHOP DRAWINGS:

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The Contractor has to note that the Owner follows the ISO procedures and all reports, returns &

checklists shall conform to ISO standards & procedures. During progress of the Work the Contractor

shall prepare and submit to the Owner various checklists, for having checked various Works at

different stages of progress and reports as per the approved formats and at specified frequency.

The Contractor shall file daily category-wise labour return. The report shall indicate scheduled

requirement against actual strength. The Contractor shall prepare weekly reports of planned and

actual progress of the Work and the subsequent week's scheduled Work. These will also include

material procurement status. These reports shall be submitted to the Owner and shall be reviewed

in co-ordination meeting.

The Contractor shall submit monthly report along with monthly bills. Further progress charts and

schedules shall be prepared by the Contractor as directed by the Owner.

The Contractor shall submit a safety procedure manual or Company policy on safety. Complying with

the SHE Plan and outlining its implementation by the Contractor and including:

Quality Assurance and Control System (Sample format). Realistic construction programme/schedule.

The Contractor shall maintain and make available all the records pertaining to reports, returns and

checklist to the Owner during audits(internal as well as external) and make necessary corrections,

additions and actions based upon the findings / observations of the audits.

SITE BARRICADING: Site Boundary fencing of RCC posts and barbed wire and random rubble stone

masonry boundary wall existing at site shall be maintained by the Contractor at his own cost till

completion of the Project. However if it is required for the Contractor to replace / rectify the existing

fencing/ boundary wall for security purpose the same shall be done at Contractor’s own cost subject

to approval of design. The Contractor for safety reason shall provide the GI sheet barricading around

the excavated pits and his work area, which shall be put in proper line and level and shall be painted.

The Contractor shall at his own cost provide lockable gates at all the openings in the site barricading,

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boundary wall, access roads that may be required from time to time during progress of work. The

Contractor shall be required to provide appropriate barricading within the site to ensure safety of

men and material, at his own cost.

Site Boundary fencing of RCC posts and barbed wire and random rubble stone masonry boundary

wall existing at site shall be maintained by the Contractor at his own cost till completion of the

Project. However if it is required for the Contractor to replace / rectify the existing fencing/

boundary wall for security purpose the same shall be done at Contractor’s own cost subject to

approval of design. The Contractor for safety reason shall provide the GI sheet barricading around

the excavated pits and his work area, which shall be put in proper line and level and shall be painted.

The Contractor shall at his own cost provide lockable gates at all the openings in the site barricading,

boundary wall, access roads that may be required from time to time during progress of work. The

Contractor shall be required to provide appropriate barricading within the site to ensure safety of

men and material, at his own cost.

RATE ONLY ITEMS/ EXTRA ITEMS AND QUANTITIES EXCEEDING THE TENDERED QUANTITIES: The

Contractor shall immediately and before procurement and execution of the work obtain a written

approval of the variation order from the Owner for the rate only item, extra items and quantities

exceeding the BOQ. No payments will be entertained without the Owner’s written approval of the

change / variation order. The onus shall be upon the Contractor to obtain such prior written

variation order. The allowed percentage is 10% towards CP &Overhead.

28.0 WATER AND ELECTRICITY:

The Contractor shall make his own arrangement for electricity and water for construction purposes

/ labour hutments. The electricity required for Construction Work shall be arranged by the

Contractor from the authorities and/ or generators at his own cost. The Contractor shall be

responsible for all distribution points as may be required for the Work. The Contractor shall also

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make arrangement for alternative standby services at his own cost in the form of additional

Generators of adequate capacity (day & night) so that there is no delay in progress of Work as per

construction schedule submitted by him. The Contractor shall prepare schematic distribution

diagrams of distribution of electricity and water for construction purposes and get them approved.

The distribution at site shall be in accordance with the approved scheme. The Contractor shall

ensure incorporation and strict implementation of all safety parameters, equipment, instruments

and directions given by the Owner from time to time in this regard. The Contractor shall install the

temporary distribution lines for water and electricity ensuring that work of other Contractor is not

interrupted or hampered. Incase during the course of construction these lines foul or interrupt or

hamper the work of other Contractor, the Contractor shall remove and relocate the service lines and

relocate the same at his own cost. All Fees for power and Water connection for construction

purposes shall be borne by the Contractor.

29.0ASSOCIATED CIVIL WORKS:

All civil works required for the storage of materials or the installation of equipments for the

Contractor's functioning shall be the responsibility of the Contractor.

30.0GUARANTEE TO PERFORM

The Contractor shall carry out the work in accordance with the drawings, specifications, schedule

and other documents forming part of the contract. The Contractor shall be fully responsible for the

performance of the works executed by him. All waterproofing works and termite proofing works

executed by the Contractor, shall be guaranteed for a minimum period of ten years from the date of

final completion of Project.. The guarantees on the approved format shall be submitted to the

Owner along with the as-built documentation at the end of the project.

31.0ESCALATION:

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Foreman, is a specialists and controlled the skilled workman who will actually do the work. For

example, under the Masonry Foreman, there may be eight skilled masons who are again specialist

and cannot be replaced by anybody but mason. Same is the case with other Foreman, except in the

case of General Foreman, under whom there will be no skilled workman but only general unskilled

labour who will not do any specialist job. A similar type of organization can be devised for Architect

office. This office is headed by the head of the organization called probably as Chief Architect. There

may be two Senior Architect working under the Chief Architect. These will control the work of four

Junior Architects. These will be directly involved in the preparation of architectural drawings for

which they may take the assistance of draughts men. Thus it can be seen that each person in the

hierarchy of a functional organization is specialists, whether he be a mason or carpenter or a

Foreman or an Engineer. The size of the organization depends on the volume, complexity and the

time periods of the various works being done. The construction team consists of owner, engineers/

architects and contractor. The team is formed to co-operatively plan, design and execute a particular

project. The objective of the team is to execute the owner's project in the best and most economical

manner within the stipulated completion time. The owner forms the construction team to serve his

interests through the services of both the contractor and engineers. The functions of the

constituents of any construction team depend upon the scope and nature of the work.

Site organization: The organization for the construction firm has to be developed taking into account

the general principles of organization and the special characteristics of the construction industry.

The type of organization suitable for a small construction firm is simple line or line and staff type of

organization. The engineer in charge at the exercises full authority and is responsible for the

execution and progress of work. Under him are few section officers or foremen who get the work

executed. After having decided the organizational structure in a construction company, the next step

is to spell out the task, power and responsibility of all its functionaries. Telling an accountant that he

is to look after the accounts work or telling the foreman that he is to super wise the daily wage

workers at site is not enough. Specific job detailing that is what is to be done by whom, at what time

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and how it is to be done is the starting point of site organization. Site organization in simple terms,

means how to organise the construction activity on site. A typical site organization for a division,

headed by an executive engineer is shown here:-

Authority:

Executive Engineer:

1. To coordinate the work of various contractors and to check whether all necessary

instructions have been provided to the contractors.

2. To check the progress of work regularly and to arrange for rectification of faulty

workmanship or inferior quality material.

EE

AE CivilWorks

JE 1 JE 2

Foreman 1

Labourers

Foreman 2

AE PHEWorks

AE ElectricalWorks

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3. Clearing all bills related to construction work for which he is the final authority.

4. To carry out technical audit and settlement of final contractual dues.

Assistant Engineer:

1. To check the specifications of construction jobs in regard to the quality of materials,

method of workmanship.

2. to plan and organize construction work in his section in order to avoid delay in the

process of work.

3.

To keep a record of all measurements of work done and tests carried out at site

4. .To report regularly to the executive engineer on all the above matters.

Junior Engineer/Supervisor/Foremen:

1. To supervise the execution of work at the site in their respective sections.

2.

To place indents of material well in advance to avoid delay in the progress of

construction work.

3. To control and provide technical guidance to workers.

4. To check and test materials for quality and quantity.

5. To measure the quantity of work done for the purpose of payment and progress.

6. To report regularly to the assistant engineer on all matters related to site.

Role of Mistry/Skilled worker:

This category include carpenters, steel fixers, machine operators, drivers, fitters, pipe

jointers etc. They are usually recruited locally for their respective jobs. Their job is to keep

the work going at the right speed and in the right manner in their sections.

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Role of Labourers:

They are the ones who assist skilled workers and performed many unskilled jobs mat the

site. They expect the right payment and need to be given clear instructions regarding what

to do.

Important Duties/Role of Project Manager :

1. To coordinate the entire construction work on site and with the headoffice.

2. To direct and control the construction work on site.

3. To employ work force, hire machinery, engage sub-contractors and material

suppliers with or without reference to head office depending on the size of the

project, policy of the firm, distance from head office and also his standing within the

firm.

4. To organize, direct and control men working under him.

5. To check the Progress of work regularly in orders to avoid delay in construction

work.

6. To call periodically joint meeting of several key personnel working at the site to

review progress and to issue instruction for speeding up work, if required. The duties

of the resident engineer, Site engineer etc. and are similar to those of the executive

Engineer, Assistant Engineer etc. The project management construction manpower

planning is primarily concerned with estimating the worker's productivity, scheduling

manpower employment, and structuring it into workers' team and work groups, with

a view to economically match manpower supply with the task requirements.

Completion of projects on schedule will be the completion of number of activities

taken up prior to and after the award of the contract for construction. The

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construction planning has to be done in a thorough manner so that all problems

likely to arise during design construction are identified. Both the client and

contractor have to work in a spirit of give and take and try to accommodate each

other to the extent possible.

The project authority has to ensure that the contractor is provided with the site for

construction and installation of infrastructure facilities and the required equipment,

materials and construction drawings as per a pre- arranged schedule so that there are

no chances of delays on that account. Although the clients are concerned with the

delays in completing projects, they are notable to take effective measures to address the

problems. Even though continuous monitoring and follow up actions have led to the

solution of some projects – specific problems, the overall picture of delays remain

unchanged. The project organizations having failed to improve the completion time

despite numerous studies and action planned tended to live with the status quo as

unavoidable.

Making Staff Work as a way of organization life:

An understanding of staff authority lays the foundation for an organizational way of life.

Where staffs are involved, their responsibility is to develop and maintain a climate of

favorable personal relations. Essentially, the task of staff is to make the responsible line

managers "look good" and to help them do a better job. A staff person should not

attempt to assume credit for an idea. Not only in this a sure way of alienating line

teammates who do not like being shown up by a staff person, but operating managers

who accept ideas actually bear responsibility for the implementation of the proposals.

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Companies also employ the assistance of professional firms, such as consultants to

provide advice to line managers. A major reason for conflict in organizations is that

people do not understand their assignment and those of their coworkers. No matter

how well conceived an organization structure may be, people must understand it to

make it work. Understanding is aided materially by the proper use of organization

charts, accurate job descriptions, spelling ou tof authority and informational

relationships, and introduction of specific goals for specific positions .Organizational

conflict can be reduced by the use of organization charts and position descriptions.

Organizing is improved by teaching its nature and by recognizing the informal

organization and the grapevine. Moreover effective enterprises develop and nurture an

appropriate organization culture.

Arbitration:

Arbitration means settlement of dispute between two parties involved; generally

contractor and owner. This settlement generally not by court of law but by a few

persons having complete knowledge of that work and deputed by parties involved.

these person or persons appointed to settle the dispute is called "Arbitrator". Arbitrator

gives decision on the basis of evidences available; enquiries made and his own skills and

knowledge. His decision accepted by both the parties and also incorporated in the

decree of the court if required i.e. if earlier decision is not accepted by either of the

parties and if matter is referred to court of law. Arbitrator has to take such decision

which must be correct and accepted by both the parties. As such Arbitration is an

expensive way of settling the dispute between owner and contractor. As far as possible

matter is solved at very first or second level only. In extreme cases matter is referred to

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court. The judiciary procedure and law takes very long hence people to avoid it. The

communication of proposals, the acceptance of proposals and the revocation of

proposals and acceptance, respectively are deemed to be made by any act or omission

of the party proposing, accepting or revoking by which he intends to communicate such

proposal, acceptance or revocation, or which has the effect of communicating it.

Communication is complete is as follows:

1. Communication of a proposal is complete when it comes to the knowledge of the

person to whom it is made.

2. Communication of an acceptance is complete when it comes to the knowledge of

the Proposer.

3. Communication of a revocation is complete when it comes to the knowledge of the

person against whom it is made.

Acceptance by performing conditions or receiving consideration:

Performance of the condition of the proposal, for the acceptance of any consideration

for a reciprocal promise which may be offered with a proposal, is an acceptance of the

proposal. All agreements are contracts if they are made by the free consent of parties

competent to contract, for a lawful consideration and with a lawful object, and are not

hereby expressly declared to be void. The consideration or object of an agreement is

lawful, unless it is forbidden by law, or -is of such nature that, if permitted it would

defeat the provisions of any law or is fraudulent or -the court regards it as immoral, or

opposed to public policy. In each of the above cases, the consideration or object of

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agreement is said be unlawful. Every agreement of which the object or consideration is

unlawful is void.

CONCLUSION:

Public contract are required to be let in accordance with certain statutes. The

performance of construction work is done pursuant to contractual agreement. Although

there are numerous types of contracts, the contractor's obligation and initial concern is

much more basic. With the proper understanding of the basic requirements for the

formation of legal contract, the contractor will be better able to avoid pitfalls, lawsuits

and liabilities. The essential contractual requirements are an offer, an acceptance of the

offer and consideration.

NCP 23 Final

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