Contract in civil engineering

The contract in civil engineering is defined as an argument enforceable by law. It is also defined as the agreement between two or more than two parties to do or not to do any business. It is now obvious that the contract involves a proposal from one party and an acceptance of the same by the other.

Types of contract in civil engineering

           Construction work can be executed through the following contract procedures:-

a)Lump-sum contract

b)Item rate contract

c)Cost-plus contract 

d)Target contract

e)All in contract

f)Labour contract

g)Material contract

Conditions of contract in civil engineering

            Construction involves owner, contractor and consultants. Thus in the agreement, there must be clauses or conditions which shall define the duties and responsibilities of the owner, contractor and consultant.

           Condition of the contract should be compared with the comparable standard form. The classes should not be ambiguous and incomplete. Here primary clauses of contract are given form the aspects of civil engineering contract procedure:-

a)Duties and power of site representative.

b)Definition of contract documents

c)Watching and lighting


e)Notices and fees


g)Arbitration procedure etc

Documents required in contract in civil engineering

        Following are the contract documents:-

a)Title page – Name of the work

b)Index page – Contents of the argument

c)Tender notice

d)Tender form

e)BOQ and schedule of quantity

f)Schedule of issue of materials

g)General specifications

h)Detailed specifications


j)Condition of contract

k)Special conditions etc

Departmental works and day work

         If the work is executed directly by the department or owner, all the required men, materials, the department manages tools and equipment etc. In short, the department shall handle all the administration and management for the successful completion of works. This procedure of executing construction work is followed if:-

a)The work is of regular maintenance and repair type.

b)The work is of smaller size and the expenses are minimum.

c)Government rules and regulations permit.

d)The work is of special nature.

e)This is of exceptional type.

Construction management- contract in civil engineering

     Day work is used to denote a procedure of costing an item work on the basis of actual labourers and materials required. Certain item work on the basis of actual labourers and materials required. Certain item of work that cannot be measured as a design in the plasterwork, the front architectural finish of a building, work underwater etc. are valued and paid by “day work”. The “day work” prices usually include material, labour, transport, contractors profit and overhead charges, tools and plants etc.

Tender and tender notices

            Usually, the construction of large and complicated projects, where the cost of construction will be high is not subjected to be executed by the department, directly. Government’s rule and regulation will limit the execution of such type of work by department. Execution of such type of work by contracting and for this tenders are called.

             Tender is a written presented before the owner or department in order to perform the specified works within a specified time under the agreed obligations.

            Tender notice is a means of expression, through which contractors may know where they have to bid a tender. Tender notice shall be published in such a way that all the concerning parties get the information in time. Thus, such tender notice shall be published in widely read newspapers or through other media from where the notification reaches the concerned parties. A tender notice shall contain the following information:-

a)Date, time and place of tender

b)Name of the authorities inviting tender

c)Nature of work and its location

d)Time of completion

e)Validity of tender

f)Amount of earnest and security money

g)Cost of the complete set of tender forms and conditions.

h)Estimated cost etc

Earnest money and security money

          Earnest money provides a guarantee of the party’s willingness to carrying out the work if he is awarded. This money is deposited while bidding a tender. 2.5% of the estimated amount or bidding amount (normally bidding amount) is demanded as earnest money. The earnest money deposited will be returned to the unsuccessful bidders. In the case of the successful bidder, the earnest 2.5% is turned to the security deposit with the addition of other 2.5%.

       On the acceptance of the tender, the contractor should deposit 5% of the tendered amount as security money with the department which is inclusive of the earnest money already deposited. It is also known as a security deposit. The amount is kept as a check so that the contractor fulfils all the terms and conditions of the contract and carries out the work satisfactorily according to the maintain progress and specifications and completes the work in time.

Preparation before inviting tender and agreement

             In order to execute construction work through contracting, we need to invite tenders from the eligible parties. Before inviting tender following steps are to be followed:-

1)Project formulation

2)Detail design and const estimation

3)Approval of cost estimation

4)Tender documentation

5)Tender invitation


        The agreement is a consensus between the successful bidder and the owner and it has a legal meaning. Agreement between the two parties should have the same spirit and understood in the same way.

 Construction supervision

          Any supervisor or overseer deputed to the site should thoroughly supervise the work of a contractor. The best interest of the contractor will be always to keep the cost of construction as low as possible. A contractor guided by his best interest may try to cheat the owner by doing inferior work i.e. using inferior materials not following the instructions, without following time sequence etc. Thus, all the works shall be done in the presence of overseer, only in the confidence of an overseer further works shall be done.

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