The document discusses various aspects of contract and contract management for construction works. It covers topics such as types of contracts, tender documents, pre-bid meetings, evaluation of technical and financial bids, award of work, commencement of work, coordination issues, and determination/rescission of contracts. The key points are that contract management requires fulfilling obligations by both parties, coordination is essential for success, and timely decisions need to be taken if work is unsatisfactory or delayed.

1. CONTRACT AND CONTRACT
MANAGEMENT FOR WORKS: PART -
II
Dr K M SONI
Retd. ADG, CPWD, New Delhi

2. CONTRACT
• PARTIES HAVE RELATION OF PROMISOR AND
PROMISEE AND NOT OF EMPLOYER AND
EMPLOYEE
• PROMISE (OBLIGATIONS) IS BINDING TO THE
PARTIES & HAS TO BE FULFILLED FOR
CONTRACT MANAGEMENT
IF ABOVE IS IMPLEMENTED BY BOTH THE
PARTIES, CONTRACT MANAGEMENT
BECOMES SUCCESSFUL

3. CONTRACTS
• ITEM RATE CONTRACTS
• PERCENTAGE RATE CONTRACTS
• LUMP SUM CONTRACTS
• EPC CONTRACTS
• TURNKEY CONTRACTS

4. IN A CONTRACT, PROMISE IS
DEFINED THROUGH CONTRACT
PROVISIONS

5. TENDER AND CONTRACT
• TENDER WHEN ACCEPTED (AND
COMMUNICATED) IS CONTRACT
• CONTRACT INCLUDES ACCEPTED TENDER
DOCUMENT, CONDITIONS AND
NEGOTIATIONS IF ANY

6. TENDER DOCUMENT
• PRESS NOTICE/EXPRESSION OF INTEREST
• NOTICE INVITING TENDER
• INSTRUCTIONS TO BIDDERS
• CONDITIONS OF CONTRACT
• BILL OF QUANTITIES
• GENERAL/SPECIAL CONDITIONS
• TECHNICAL SPECIFICATIONS/CONDITIONS IF ANY
• DRAWINGS

7.  PLEASE CALL A MEETING OF YOUR TEAM BEFORE
PREPARATION OF TENDER DOCUMENT
 PLEASE GO THROUGH THE ARCHITECTURAL DRAWINGS,
SERVICE DRAWINGS AND STRUCTURAL DRAWINGS IF
AVAILABLE
 PLEASE GO THROUGH THE E & M SERVICE DRAWINGS
 IF LANDSCAPE AND HORTICULTURE PROVISIONS ARE IN THE
CONTRACT, PLEASE GO THORUGH THEM
 ALL ABOVE DRAWINGS ARE TO BE GONE THROUGH BY THE
PROJECT TEAM

8. TENDER DOCUMENT
• BRAINSTORM THE TENDER CONDITIONS TO BE
INCORPORATED FOR SUCCESS OF CONTRACT
• NOTE DOWN ALL MAJOR POINTS OF THE
DISCUSSION
• DO NOT FINALISE THEM IN ONE GO BUT SPELL
OUT THEM TO ALL TEAM MEMBERS
• ASK EVERYONE TO THINK ABOUT THE POINTS
DISCUSSED
• TAKE A BREAK OF ONE OR TWO DAYS
• MEET AFTER BREAK WITH SAME GROUP

9.  DISCUSS SALIENT FEATURES OF EARLIER CONVERGING
POINTS
 SOME NEW IDEAS MIGHT HAVE CROPPED UP
 SOME DESCREPANCIES MIGHT HAVE COME TO NOTICE
 SOME ADDITIONAL CONDITIONS, ITEMS OR
SPECIFICATIONS MIGHT BE REQUIRED TO BE INCLUDED
 DISCUSS THEM AGAIN AND FINALISE THEM

10.  PLEASE CALL A MEETING WITH THE
ARCHITECT/CONSULTANT(S)
 THERE MAY BE SOME POINTS WHICH NEED
CLARIFICATIONS OR REVISIONS
 IN THE MEETING SERVICE CONSULTANTS, E&M
CONSULTANTS, LANDSCAPE
CONSULTANTS/HORTICULTURE OFFICERS SHOULD ALSO
BE PRESENT
 IN THIS MEETING, IT IS UNLIKELY THAT FINAL DECISION
IS TAKEN AS FEW ISSUES MIGHT CROP UP

11.  KEEP NEXT MEETING AS SOON AS POSSIBLE. DELAYED
MEETINGS MAY LOSE THE TRACK
 IN THE NEXT MEETING, MOST OF THE ISSUES MIGHT GET
RESOLVED BUT NOT ALL
 BROADLY FINALISE THE DECISIONS IN THIS MEETING
AND ASK INDIVIDUAL CONSULTANTS/ ARCHITECTS/
ENGINEERS TO WORK AS PER THE FINAL DECISIONS
 REVISED DOCUMENT WILL LEAD TO CURTAILMENT OF
TIME AND COST OVERRUN AND DISPUTES WITH THE
CONTRACTOR.
 TIME OF COMPLETION SHOULD BE REASONABLE AND
SHOULD NOT BE REDUCED

12.  GO THROUGH THE GENERAL CONDITIONS, SPECIAL
CONDITIONS, TECHNICAL SPECIFICATIONS AND BOQ.
 IF SUCH CONDITIONS ARE GIVEN TO DIFFERENT TEAM
MEMBERS FOR PREPARATION, EACH ONE SHOULD GO
THROUGH COMPLETE DOCUMENT
 PROJECT MANAGER SHOULD GO THROUGH THE TENDER
DOCUMENT HIMSELF TO AVOID REPETITIVE
CONDITIONS WITH DIFFERENT MEANING.

13.  PLEASE CHECK ABOUT THE DUPLICITY OF CONDITIONS,
VAGUE CONDITIONS, DUAL MEANING CONDITIONS AND
IRRELEVANT CONDITIONS
 THERE MAY BE SOME OMMISSIONS WHICH ARE
NECESSARY TO BE INCORPORATED
 FINALISE THE DOCUMENT AND SEND TO ALL THE TEAM
MEMBERS FOR COMMENTS
 CONVENE THE MEETING OF YOUR TEAM MEMBERS AND
FINALISE THE TENDER DOCUMENT
 ORDER OF PRFERENCE MUST BE MENTIONED IN TENDER
DOCUMENTS FOR DISCREPANCIES

14.  PLEASE CHECK ABOUT THE MANDATORY APPROVALS LIKE
LOCAL BODY APPROVAL, TREE PERMISSION,
ENVIRONMENTAL CLEARANCE ETC
 PLEASE CHECK ABOUT ADMN APPROVAL AND EXP
SANCTION AND BUDGET AVAILABILITY
 PLEASE CHECK AVAILABILITY OF SITE FREE FROM
ENCUMBRANCES
 PLEASE CHECK THE AVAILABILITY OF ARCHITECTURAL,
STRUCTURAL AND PLUMBING DRAWINGS


15.  PRE BID MEETING IS ARRANGED BEFORE DUE DATE OF
RECEIPT OF TENDERS
 PLEASE ASK YOUR TEAM MEMBERS TO BE PRESENT IN
THE MEETING
 MOST OFTEN, FEW PROSPECTIVE BIDDERS WILL ASK FOR
POSTPONEMENT OF THE DATE OF RECEIPT OF TENDERS
 SINCE TENDER DOCUMENT HAS BEEN DRAFTED
CAREFULLY, IF THERE ARE NO MAJOR CORRECTIONS,
YOU MAY NOT NEED TO EXTEND THE DATE

16.  FEW PROSPECTIVE BIDDERS MAY COME UNPREPARED
HENCE, IT IS ADVISABLE TO MAKE A BRIEF PRESENTATION
BEFORE THE MEETING
 THE PROSPECTIVE BIDDERS MAY ALSO ASK FOR SOME
DETAILS LIKE DRAWINGS, SITE DATA AND PAYMENT MODES.
PLEASE INCLUDE THEM IN THE PRESENTATION BRIEFLY
 IT IS ADVISABLE THAT MEETING IS CHAIRED BY THE CHIEF
PROJECT MANAGER/PROJECT MANAGER WELL CONVERSANT
WITH THE TENDER DOCUMENT. IF REQUIRED, THEN ONLY HIS
TEAM MEMBERS MAY MAKE SUPPLEMENTARY REMARKS.

17.  PROSPECTIVE BIDDERS MAY BE ENCOURAGED TO ASK
THE CLARIFICATIONS BUT IN ORDERLY MANNER
 REPLIES SHOULD BE SPECIFIC AS THE REPLIES FORM
PART OF THE TENDER DOCUMENTS/ CONTRACT
 IN CASE, IT IS ESSENTIAL TO ISSUE CORRIGENDUM AND
IS TIME CONSUMING, DATE OF RECEIPT OF TENDERS
SHOULD BE EXTENDED

18. TECHNICAL BIDS
• TECHNICAL BIDS ARE THE BASIS OF PRE
QUALIFICATION OF THE BIDDERS
• THE BIDDERS WHOSE TECHNICAL BIDS ARE
REJECTED ARE LIKELY TO RAISE THE OBJECTIONS
• PRE QUALIFICATION CRITERIA SHOULD BE VERY
WELL DEFINED IN THE TENDER DOCUMENTS
AND SHOULD BE TRANSPARENT.
• DISCRETIONARY PROVISIONS SHOULD NOT BE
INCLUDED IN THE PRE QUALIFICATION CRITERIA.

19.  PRE QUALIFICATION CRITERIA MAY INCLUDE;
 SATISFACTORY COMPLETION OF SIMILAR WORK(S) OF REQUIRED AMOUNT
 QUALITY/PERFORMANCE EVALUATION OF COMPLETED AND ONGOING
WORKS
 FINANCIAL CRITERION OF ANNUAL TURN OVER OF WORKS
 CASH FLOW/SOLVENCY CERTIFICATE
 LOSS CRITERION
 REQUIREMENT OF TECHNICAL PERSONNEL
 REQUIREMENT OF T&P
 INSPECTION OF COMPLETED/ONGOING WORK FOR QUALITY EVALUATION
 SCORE ON VARIOUS ATTRIBUTES AND OVERALL SCORE
 GST REGISTRATION
 ASSESSED AVAILABLE BID CAPACITY
 UPLOADING OF DOCUMENTS
 EARNEST MONEY OF REQUIRED AMOUNT AND FORM

20.  THERE MAY BE OBJECTIONS IN THE DEFINITION OF SIMILAR
WORKS HENCE SIMILAR WORK SHOULD BE DEFINED WITH CLARITY
 THERE MAY BE OBJECTIONS REGARDING QUALITY ASSESSMENT BY
THE TEAM HENCE CRITERION SHOULD BE WELL DOCUMENTED
BEFORE INVITATION OF TENDERS AND INCLUDED IN THE TENDER
DOCUMENT. IT IS ADVISABLE TO KEEP PHOTOGRAPHS OF THE
INSPECTED WORKS/DEFECTS IN RECORD
 IT SHOULD BE CLEARLY DEFINED WHETHER AVERAGE FINANCIAL
TURN OVER IS TO BE TAKEN AND OF HOW MANY YEARS?
 AVAILABLE ASSESSED BID CAPACITY INCLUDES COMPONENT OF
ONGOING COMMITMENT. SOMETIMES ALL THE COMMITMENTS
ARE NOT PROJECTED BY THE BIDDER WHICH MAY RESULT INTO
INTERPRETATION AS MISREPRESENTATION OF FACTS
 SOMETIMES EARNEST MONEY IS NOT SUBMITTED IN PRESCRIBED
FORM AND ALL DOCUMENTS NOT UPLOADED
 CALCULATION OF SCORE MAY BE OBJECTED BY SOME BIDDERS
HENCE TO BE SPELT OUT IN TENDER DOCUMENTS

21. FINANCIAL BIDS
• SINCE NOW e –TENDERING IS BEING ADOPTED,
OPENING OF FINANCIAL BIDS HAS BECOME EASY
AND A MECHANICAL PROCESS.
• AS PER CVC GUIDELINES, WORK CAN BE
AWARDED ONLY TO THE LOWEST BIDDER
• ALSO AS PER CVC GUIDELINES, NEGOTIATIONS
IN RATES IS NOT PERMITTED
• CONDITIONAL TENDERS ARE ALSO NOT
ACCEPTED AND THERE IS NO SCOPE OF WRITING
CONDITIONS IN ONLINE FINANCIAL BIDS

22. AWARD OF WORK
• PLEASE CHECK ABOUT THE BUDGET
AVAILABILITY
• PLEASE ENSURE THAT THE BIDS ARE STILL
VALID
• DO NOT PUT ANY ADDITIONAL CONDITIONS
BEYOND MENTIONED IN THE BID
DOCUMENTS
• FOLLOW THE CONDITIONS OF PERFORMANCE
GUARANTEE AND OTHER PROVISIONS

23. COMMENCEMENT OF WORK
• GOOD CONTRACTORS NORMALLY COMMENCE THE
WORK IN TIME
• FEW CONTRACTORS WHO MAY SUBLET THE WORK,
WAIT FOR OTHER AGENCY TO TAKE OVER THE WORK
HENCE DECISION OF DETERMINATION SHOULD BE
TAKEN AS EARLY AS POSSIBLE
• MONITORING OF THE QUALITY AND PROGRESS
SHOULD BE DONE FROM THE BEGINNING AS IT SETS
YOUR IMAGE
• WHATEVER DECISION IS TO BE TAKEN SHOULD BE
TAKEN WITH WELL THOUGHT PROCESS BUT SHOULD
NOT BE DELAYED

24.  THERE ARE TOOLS AVAILABLE WHICH CAN BE USED FOR
MONITORING. REMEMBER TOOLS ARE ONLY THE AID
FOR THE PROJECT TEAM AND THE CONTRACTOR
 DEPARTMENT/EMPLOYER SHOULD ENSURE PROGRESS,
SAFETY AND QUALITY AND SHOULD NOT RELAX ANY
CRITERION
 FOR THE CONTRACTOR, PAYMENTS AND DECISIONS ARE
IMPORTANT. DEPARTMENT/EMPLOYER SHOULD NOT
DELAY PAYMENT AND DECISIONS
 PROGRESS AND QUALITY CAN BE ACHIEVED ONLY IF
DEPARTMENT/EMPLOYER BOTH ARE SERIOUS ABOUT IT

25. CO-ORDINATION
• CO-ORDINATION IS ESSENTIAL FOR ANY SUCCESS
BUT LACKS MORE OFTEN AT THE SITE
• CO-ORDINATION IS REQUIRED AT VARIOUS
LEVELS AS
– CIVIL, ELECTRICAL, HORTICULTURE AND ARCHITECT
OFFICERS
– CONTRACTORS/AGENCIES THOUGH MAY WORK
UNDER PROJECT MANAGER/CHIEF PROJECT
MANAGER BUT AT GROUND THEY MAY WORK
UNDER DIFFERENT TEAMS AND MAY HAVE CO-
ORDINATION PROBLEMS

26.  CO-ORDINATION BETWEEN HIERARCHY OF SAME WING
LIKE CIVIL, ELECTRICAL
 CO-ORDINATION BETWEEN VARIOUS LEVEL OFFICERS
 CO-ORDINATION BETWEEN LOCAL BODIES AND PROJECT
TEAM
 CO-ORDINATION WITH PAYMENT AUTHORITIES
 CO-ORDINATION BETWEEN SUPERVISORS OF VARIOUS
AGENCIES/CONTRACTORS

27.  SIMILARLY, AIR CONDITIONING, FIRE FIGHTING, FIRE
DETECTION EQUIPMENT AGENCIES MAY COME ONLY AFTER
FALSE CEILING IS LAID DAMAGING IT

28.  SERVICE PROVIDING TEAM LIKE PLUMBING, TILE FIXING,
WATER PROOFING, INTERNAL ELECTRICAL INSTALLATION
ETC MAY NOT HAVE ANY CO-ORDINATION
 THEREFORE, CO-ORDINATION IS MAIN KEY OF SUCCESS
IN PROGRESS
 TAKE DECISION AS EARLY AS POSSIBLE IF CONTRACT IS
TO BE RESCINDED
 CO-ORDINATION MAY ALSO BE LACKING BETWEEN
VARIOUS SUB CONTRACTORS AND SUPPLIERS

29. DETERMINATION/RESCISSION OF
CONTRACT
• TO BE DECIDED DURING CURRENCY OF CONTRACT
• IF WORK IS NOT SATISFACTORY IN TERMS OF PROGRESS
OR QUALITY, WHATEVER DECISION IS TO BE TAKEN, TAKE
RIGHT AT FIRST TIME. IN ALL PROBABILITIES, ONCE WORK
IS DELAYED, IT IS UNLIKELY THAT PROGRESS OR QUALITY
WILL BE RESTORED.
• CONTRACTOR GETS GOOD AMOUNT OF
MONEY/PAYMENT TILL THE COMPLETION OF STRUCTURE
HENCE IS QUITE ENTHUSIASTIC
• FINISHING ITEMS REQUIRE CONSIDERABLE FUNDS, ARE
TIME TAKING AND AVAILABLE ON CASH HENCE AGENCIES
MAY NOT GET ENTHUSIASM AND SOMETIMES EVEN
LEAVE ON JUNIORS TO MONITOR. BLAME GAME STARTS
DURING FINISHING STAGE AND CO-ORDINATION
BECOMES A MAJOR PROBLEM

30.  WORKS CONTRACT IS BETWEEN TWO PARTIES AND THEY
HAVE RELATION OF PROMISOR AND PROMISEE AND
NOT OF EMPLOYER AND EMPLOYEE
 SO, EACH PARTY HAS TO FULFIL ITS OBLIGATIONS FOR
SUCCESSFUL CONTRACT MANAGEMENT

31. Thanks for attending
Dr K M Soni, ADG (Retd.), CPWD, New Delhi
Also available on Youtube: KRISHNA MURARI Soni at
https://www.youtube.com/channel/UC_pPYxk0jI1ayqA5rO6fBOw