This document provides a report on information about contracts submitted to the Maharashtra State Board of Technical Education. It defines what a contract is and provides an overview of the Indian Contract Act of 1872. It outlines the key objects of contracts and requirements for a valid contract to be in writing and enforceable. It also describes the main types of engineering contracts used in India, including lump sum contracts, item rate contracts, percentage rate methods, and labor contracts. The report was submitted by a third year diploma student in civil engineering for their contract and accounts course.

1. REPORT ON
‘INFORMATION ABOUT CONTRACTS’
SUBMITTED TO
MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION,
MUMBAI.
BY THE STUDENT OF THIRD YEAR DIPLOMA IN CIVIL ENGINEERING
MR.DAMAL PRANAV RAJENDRA (ROLL NO.18)
UNDER THE GUIDANCE OF
MR.R.SHINDE SIR
LECTURER IN CONTRACTS AND ACCOUNTS
GOVERNMENT POLYTECHNIC AHMEDNAGAR
2020-2021.

2. Information about Contracts
Contract :
 Contract is an undertaking by person or firm to do work under certain terms and
condition.
 The work may be of construction repairs supply of materials labours etc.
Overview of Indian Contract Act 1872 :
 As Indian Contract Act 1872. Contract is an agreement enforceable at law but
each agreement is not necessarily a contract.
 Term contractor means a person or firm which makes an agreement for
execution of work, supply of materials.

3. Objects of Contract :
 To execute the work by experienced persons.
 To execute work with most competitive rate.
 To do work as per specification.
 To use latest machineries and techniques.
 To have free hand for supervisor to check the work done by contractor without
interference.

4.  Requirement of valid contract :
 Contracts in writing
Contract should be in writing and should be signed by both the parties I.e.owner and contractor
and in case of government the person authorized should sign contract on behalf of department.
 Subject matter
Subject matter of agreement must be legal and definite.It should be easy to understand not to
templates to understand and execute.
 Can be enforced in court of law
All terms, conditions words should be according to law. So that if situation arises the parties
signing should not escape from their responsibilities.

5. Types of Engineering Contract
 Lump sum contract
 In lump sum contract complete work as per plan and specification is carried out
by contractor for certain fixed amount as per agreement.
 The detailed specification of all items of work, plans and detailed drawings,
security deposit, penalty, progress and other condition of contract are included
in agreement.

6. Item rate contract
 It is also called as unit price contract.In this contract contractor are required to
quote rates for each individual items of work on the basis of schedule of
quantities supplied by department.
 Rates of contractor for units of items includes material, labour overhead cost
and profit.

7. Percentage Rate method
 In this method bill of quantities consists of description of item as per sanctioned
estimate with their quantities, rates, unit and amount.
Labour Contract
 In this contract contractor quotes rates for all items of work only for labour and not for
materials.
 Only the thing is that owner has to keep close watch on consumption of materials as
contractor is least bother about wastage of materials.