Issue Date: 30.06.

14
SCHOOL OF ARCHITECTURE
Meenakshi College of Engineering, West KK Nagar, Chennai.
Lesson Plan (July 14 -Nov14)
Subject Code : AR2501
Subject Name : Professional Practice and Ethics II
Faculty
: Ar. Stanley Clement Daniel
45

Uni
t

Topi
c No

Degree / Branch : B.arch

Year/Sem/sec : V/ IX /A
Total No.of Hrs given in syllabus:
Lecture: 45
Practical: NIL
Grand Total: 45

Topic

Perio
d

Books/Page. No

UNIT - I
TENDER
Objective- To make the students to gain the knowledge about the advanced issues
concerning Tendering in Architectural practice.

1.

Importance of Tender / Types of Tender

2.

Components & condition of Tender

3.

Tender document & notice

4.

Tender submission / Scrutiny & analysis.

5.

Tender award.

6.

E - Tendering

T1 /(159-164)

T1 /(164-173)

T1 /(173-177)

T1 /(177-185)

T1 /(185-1187)

Notes

Expected Outcome: students should gain sufficient knowledge in the Architects field
of practice and to inculcate the confidence in future career.
UNIT II
CONTRACT AND ARBITRATION

Objective To make the students to gain the knowledge about the Contract and Arbitration that are
prevalent in the field of practice.

II

7.

Contents of Contract document.

8.

General conditions of a contract.

9.

Arbitration

10. Arbitration and Contract agreement

T1 /(194-202)

T1 /(229-275)

T1 /(276-282)

T1 /(215-229)

Expected Outcome students should gain the knowledge about the professional ethics and the

organizations/ governing bodies in regulating the Architectural Practice

UNIT III
NEW TRENDS IN PROJECT FORMULATION AND EXECUTION
Objective- To induce an adequate knowledge about the New Trends in Project
formulation and execution.
11. Turnkey offer
12. BOT
III

13. BOLT
14. BOO

T9/ Notes

T9/ Notes

T9/ Notes

T9/ Notes

Expected Outcome Students should gain the knowledge about the Architectural and
other allied services to prepare themselves for the Internship Program
UNIT IV
IMPLICATIONS OF GLOBALISATION IN ARCHITECTURAL PRACTICE
Objective To make the students to gain knowledge on Implications of Globalization in
Architectural Practice.
15. Globalization
16. Relevance of WTO & Gats
17. Needs for Global practice.
IV
18. Effect of foreign Architect in India.
19. Impact of Information & Technology.

T9/ Notes

T5

T9/ Notes

T9/ Notes

T9/Notes

Expected Outcome Students should acquaint themselves with all factors governing
Architectural Competitions.
UNIT V
EMERGING SPECIALISATIONS FOR AN ARCHITECT
Objective- To orient the students to the emerging specializations for an Architect.
V

20. Project Management

21. Construction Management

T3 /(12-27)

T3 /(1-11)

22. Suitability of Architects in Emerging fields.

23. PERT network.

T9/ Notes

T3 /(29-194)

Expected Outcome - students should gain the knowledge about the varied rules/
regulations/legislations/govt. provisions in handling legal aspects of the professional
practice.

ASSIGNMENTS AND ACTIVITIES

S.No
1
2
3

TOPIC
Assignment on
preparing Tenders
Case study.
Seminar on
Globalisation in
Architectural Practices
To prepare a PERT
chart.

Probable date
of
Announcemen
t

Probable
Date of
Submission

Return of
script/
valuation

July 14

30th July 2014

6th Aug2014

Aug 14

27th Aug to 18th

Sept2014

18th Sept2014

Sep 14

24th Sep2014

1st Oct2014

BOOKS AND REFERENCES:

1. Ar.V.S.Apte, Architectural practice and procedure, Padmaja Bhide, Pune
2008.
2. Architects Act 1972.
3. Dr.B.C.Punmiya and K.K.Khandelwal project planning and control with
PERT / CPM, Laxmi publications, New Delhi, 1987.
4. Arbitration Act.
5. WTO and GATT guidelines.
6. Publications of Handbook on Professional Practice by IIA.
7. Publications of Council of Architecture Architects (Professional conduct)
Regulations 1989, Architectural competition guidelines.
8. Roshan Namavati, Professional Practice, Lakhani Book Depot, Mumbai 1984.
9. Notes

Prepared By

(Ar. Stanley Clement Daniel)

Approved By

HOD

Director

UNIT I
TENDER FOR CONSTRUCTION
What is Tender?
Tender means an offer to carry out work, that is pre-described or to
supply or purchase goods of prefixed specifications at a price to be quoted
the tenderer.
Essential qualities of a good tender:
1. Tender should be based upon definite and detailed information. The
items of work described in bill of quantities included in the tender
should be very clear and specific.
2. Drawing shall be supplied wherever details are involved. Wherever
description is difficult, drawing should be given to complement
description.
3. All factory made products should be specified as far as possible with
their trade name (close specifications). You may attach a list of
approved makers or manufacturers to the tender document.
4. Avoid as far as possible the use of phrase As approved by architect,
instead spell out more in details your requirements and if needed,
supplement the statement by a drawing.
5. Basic price of material shall be mentioned in the tender.
6. The basic concept of tendering is a competition on equal base.
Therefore, it is essential that information given may be in the form of
specifications, conditions of work, abstracts, quantities or drawings
shall be same information to all the contractors who shall offer
tenders.
Components of a tender: A checklist.
1. Instructions to contractor
1.1 Type of tender (Item rate tender or lumpsum tender).
1.2
Location and brief description of work and name of owner. (Name of
work, site address and owners name)

1.3
1.4

Price of Blank tender form.

Amount of Earnest Money Deposit (E.M.D) to be paid to whom and
how.
1.5
Time and place of submitting filled in tender.
1.6
Note: Owner reserves right to reject any or all tenders without givin4
aaag reasons. (This note is important and shall not be forgotten.)
2. General conditions and preliminaries: Prepared by the architects office.
In this, you should not forget to refer standard specifications, such as ISI
or P.W.D. This should also include a list of Basic Rates of major building
materials and a list of approved manufactures of materials.
3. LETTER OF OFFER: From contractor of Architect. This letter is prescribed
by architects office. (a specimen letter given in Appendix 14.I)
4. Copy of Articles of Agreement and General Conditions of contract.
(Printed papers available with I.I.A)
5. Bill of Quantities (Contract Bill) only in case of an item rate tender.
6. Drawings (Contract Drawings) giving location, overall size, types of
building construction etc. for an item rate tender. OR In case of lump
sum tender, a complete set of working drawings including R.C.C.
schedule or structural steel details etc.
Types of Client:
1. Private or an individual owner.
2. Semi-public organizations
3. Public Bodies such as Government Departments.
Different methods of calling tenders:
1. Invited Tender
A list of five or six contractors should be made by the architect in
consultation with the owner. Om behalf of the owner, the architect should
write letters to the contractors inviting them to tender for the work.
A letter of invitation to a contractor shall cover the following points.
(i)
Name of the owner.
(ii)
Address of the site of proposed work and type of building.
(iii) Estimated cost of work.
(iv) Probable date of commencement of work on site.
(v)
Price of blank tender form and
(vi) Date, time and place where from the tender copy would be available.
Each of the points has relevance in business. When you invite a contractor
for tendering, he has a choice to accept or to refuse the invitation. For that
he should knowi)
Who is the owner, he may have earlier experience, either good or bad
with the person. Contractors decision to accept or to reject the
invitation may depend on this
ii)
Each contractor has his area of operation in his mind. This depends
on the size of his organization and his willingness to go far and the
estimate of projects as well.
iii)
The estimate of work is also relevant.
iv)
The probable date of commencing work is relevant to know.

2. Public Tender
In case of projects owned by the semi public or the public bodies, in
the procedure to be adopted, there should be no room for favoritism or a
partiality. The competition should be open to all. Hence, a notice shall be
published in a newspaper calling the contractors to fill in tender for a
project. In such a notice, the following information shall be given:
1. Name of the client (Owner of the project)
2. Address of the proposed work site and name of the project.
3. Estimated cost of project.
4. Earnest money deposit.
5. Cost of blank tender form.
6. Time and place of issuing blank tender forms.
7. Time and place of submitting filled in tenders.
The biggest disadvantage in a public tender notice is that one does
not know the abilities of contractors offering themselves to work for the
project. To get the work, one may quote low rates. But often such a
contractor is unable to carry out the work and to produce work of good
standard. Realizing that he is not making enough profits or he is loosing on
the job, the contractor looses an item even at the cost of quality. The
contractor will try to raise claims for variation and extra items, arguing with
an architect now and then on small matters. The owner reserves the right
to accept pr to reject any or All the Tenders without giving any Reasons.
3. Pre-registration of contractors:
In this method, a notice is published in newspaper inviting the
contractors to submit the information of their construction company. In the
notice, it is necessary to publish i) Name of the owner and his address, ii)
Name of the project and its estimated cost, iii) Address of construction site
and iv) Probable date of starting construction. Reading this information, the
contractor should decide whether he is interested in the work or not.
Further in the notice, the contractors are requested to submit the
information on the following points:1. Name of the company and its Registered Address, names of partners/
Directors.
2. List of similar projects (similar to the project for which this
advertisement is given) or list projects carried out during last three or
five years, with their cost, name of the architect, name of the owner,
etc.
3. List of the construction equipments possessed by the company and
technically qualified persons employed with the company.
4. Income tax clearance certificate.
5. Solvency certificate from bankers.
On receiving the applications on the date given in the advertisement,
scrutiny is made and a short list of five or seven contractors that is drawn
out. A care should be taken while selecting the contractors that they are of
more or less of equal standing from the point of view experience,
establishment, financial strength etc. and each one of them should be
acceptable to the owner.

Papers that are included in a Tender document.

1. Letter of Offer:
This letter is drafted by the architects office. The contractor is
supposed to read it carefully and sign it as a mark of total agreement to it.
The contractor shall make no change in the text of the letter. This
letter of offer is an important commitment by the contractor. A specimen
letter is given in Appendix. Please read it carefully and understand its
significance, point by point. There are FIVE clauses in the letter.
(i)
In the 1st clause, a reference is made to the tender notice or a letter
of invitation as per the case. This reference has a legal significance.
(ii)
In second clause, the contractor commits that he has studied
drawings, specifications, articles of agreement and conditions of
contract. All these shall be included in the tender document by the
architects office, so that the contractor can carefully read them,
before giving the tender offer. Drawings and specifications are
prepared in the architects office for each work. Article of Agreement
and Conditions is a standard document used on every job. It is
prepared by the Indian Institute of architects. We shall study this
document in the following chapter. My remark for you is that, it is a
very important and useful document, which you shall study carefully.
(iii) In this clause, the contractor commits that he knows the situation at
the work site and he is ready to work at the rates given by him, under
the present site conditions.
(iv) These are the clauses, regarding E.M.D. It says that the deposit is
without interest. It also gives period of deposit and further states
authority to the architect to forfeit E.M.D. under certain conditions.
2. General Conditions and Special Requirements of the Work:
These general conditions are usually standardized in every office, as
they are applicable to almost all the works. In addition, there could be some
special requirement of a job. Such few conditions are added as special
requirements of that job. For example, municipal tap water is available on
all the sites in a city. But if a particular site has only well water supply or
some other source, you shall write the conditions pertaining to that and add
to the general conditions.
3. Specifications of Work and Materials
This also, you should standardize in your office so that it can be
added to the tender document. We have discussed this in the previous
chapter on specifications. In addition on a particular job, you may have an
unusual item of work, such as exposed brick finish, from the finish concrete
or the application of a material in an uncommon way or a new material in
building. You should add the specification of such special items carefully to
the text of the tender.
4. Bill of Quantities

This is an important core paper of a tender. Your quantity surveyor

should work out correct quantities of all the items of work. I shall like to
draw your attention here, that, to write an abstract of an item is an
important matter. If you forget a word or a clause in the abstract, which in
fact is required to complete that particular item, it becomes an extra claim
or variation. The contractor can demand more money. So be careful! The
client has to more for your inefficiency, which is not creditable to you.
5. Drawings
Drawings shall be added to the tender to give sufficiently a clear idea
about the proposed building. The drawing shall explain the type and the
extent of construction, i.e. overall dimensions and number of floors, height
of floors etc. It is not necessary to supply R.C.C. detail drawings at this
stage if in the Bill of Quantities item of reinforcement steel and concrete
are separate. In the case of a structural steel work, the detailed fabrication
drawings are not required to be given at this stage, if item of fabrication
work is to be quoted on unit weight of structural steel. But details of items
in the form of drawings should be given at this stage only which cannot be
fully visualized only with description, such as decorative grilles etc.
6. Articles of Agreement & general Conditions of Contract
A reference to this document is made in the Letter of Offer
explained to you earlier in this chapter. A copy of this shall be added in the
blank Tender Form, particularly when it is a public tender. This is a printed
document available with the Indian Institute of Architects. We shall study
more in detail about it in the following chapter.
Procedure of calling tender:
Tender document shall be prepared by the architects office. All the
copies prepared shall be serially numbered on the cover page. Copies of
tender are sold to the contractors from the architects office. The contractor
goes through the tender papers and taking into consideration the
specification and condition etc. given in the tender, fills in the rates of
every item of work against the abstracts in the bill of quantities. Multiplying
by the unit rates to the quantity cost of each item is arrived at. The sum,
total of cost of all items will give the amount of quotation of the tender.
There could be two or three schedules in a Tender. Such as civil work,
plumping work, site development etc. All these added together will give the
final amount of tender offer. Filled in the tender is then put into an envelope
and the envelope is sealed. This sealed envelope along with the Earnest
money deposit Amount in the form of a Cheque or a demand Draft as per
the instructions in the tender document is to be submitted on or before the
time and the date given in the tender. These conditions are usually given
on the cover page of the tender.
Earnest Money Deposit:
A contractor along with his tender quotation pays a certain amount
as a deposit to show that the contractor is earnest and sincere about this
business with the owner. Further it means, that when called upon to

complete the business, he should not shirk or avoid. we define earnest

money deposit as under.
A note on Earnest Money Deposit:
The amount of deposit asked along with the filled in tender or a rate
quotation is called an earnest money deposit. This amount shall be placed
with the office of the architect, without any interest payable on it. The
deposit amount shall not be held for more than a month from the date of a
receipt of the tender. The deposit shall be refunded in full to the
unsuccessful contractors; no sooner the decision is made on the tenders
received.
In case of successful contractor to whom the work is awarded, this
earnest money deposit becomes a part of security deposit and continues to
be with the architects office till the virtual completion of the work.
On virtual completion of the work, the contractor shall apply to the
architects office for the refund of the amount. This amount is refunded in
full by the architects office directly to the contractor and intimation in
writing is given to the owner.
In case of the contractor who is unable to commence the work when
called upon to do so, this amount of E.M.D. is forfeited and is credited to
the owner as a part of compensation for the hardship the owner has
suffered.
How Much Time should be given to the Contractors to fill in the
tenders?
Time and date for submission of filled in tenders shall be one and the
same to all the contractors. A sufficient time shall be allotted to the
contractors to fill in the rates. The contractor has to visit the site to study
the site conditions under which he has to work. If the site is at a distance
he has to make enquires for the availability of material and labour nearby.
He has to discuss the rates with his sub-contractors and other agencies
before he could arrive at the item rate.
Instruction on the Cover Page
On the cover page of the tender document, instructions shall be
printed regarding 1) the time, date and place where the filled in tender
shall be submitted. 2)How much shall be the Earnest Money Deposit
Amount to be submitted along with the tender and in what form, that is by
a cheque or a demand draft and payable to whom the architect or the
owner.
Receiving of Filled in Tenders
As a good practice, the filled in tenders should be received in the
office of the architect. In case of the institutional clients, as a matter of
convenience, the filled in tenders may as well be received in the office of
the client. But in either case, the decision shall be made well in advance,
and accordingly, the instructions regarding the submission of tenders shall
be printed in the tender notice and on the cover page of the tender form.
Opening of Tenders

The time and the place of opening of the tenders shall be informed to
the contractors while receiving the tenders. The contractors or their
representatives may as well remain present at the time of opening of the
tenders. The architect SHALL NOT OPEN the tenders in the absence of the
owner.
Scrutiny of Tenders
A detailed scrutiny of all the tenders received is done by the
architects office and a scrutiny report is submitted to the owner
recommending a contractor for the work. In case of public tender, we have
experienced as many as twenty-three tenders received for a project. It
becomes a time taking task to scrutinize so many tenders. You should be
methodical in your work.
(i)
Check whether the E.M.D. amount is submitted as per the conditions
of tender. If NOT submitted, then the tender offer should be rejected
forth with. If the deposit amount is asked by cheque then the
cheques shall be deposited in the bank immediately. If the E.M.D.
cheque is dishonored by the bank for any reason, such a contractor
shall NOT be considered for the work. Furthermore, such a contractor
shall not be considered for any work in future or should not be
recommended to others. A specimen letter is given in the Appendix.
(13J).
(ii)
Covering letter
a. Read carefully covering letter and other enclosures, if any. Often
contractors in case of Public Tender are tempted to enclose business
profile of their contracting company, particularly when the
contracting company, particularly when the contracting company is
stranger to owner/architect. It is worthwhile contracting owners or
architects to crosscheck the information given in such a profile.
b. The covering letter should have no conditions suggested in it, which
will affect the work or the cost of work. Usually, these conditions or
rebates are linked with the supply of building material or water for
construction and supply of electricity for work by the owner on the
site. Often contractors ask for advance against building material
brought on the site. As a good practice, conditions regarding all these
points should be mentioned very clearly by the architect himself in
the text of the tender document.
(iii) The next step in scrutiny of tenders is to check the calculations in the
schedule of rates. These days, all the calculations are made by the
calculators and therefore, there are hardly any mistakes in
multiplication or totals. Even then, it will be proper for the architects
office to go through carefully through all the pages of the schedule of
rates, which is also referred as contract bill. If arithmetical mistakes
are noted, these should be corrected and the corrected total should
be taken for the consideration for the choice of contract.

(iv)

(v)

After when the tenders are opened, in any case contractor shall not
be allowed to enter the missing item-rate. If selected for the work,
the contractor shall carry out that particular item free of cost.
Rebate:
After arriving at the Total of Schedule of rates, sometimes a
contractor offers a rebate at certain percent of the total amount by
writing a note to that effect. If the rebate is offered without any
condition, it should be considered and the total should be reduced
accordingly. If there be any condition attached to the rebate, then
such a rebate is unacceptable.
Comparative statement:
Having completed arithmetical check, correcting totals and applying
rebate etc., a statement should be written, name of contractor and
the corrected total of tender offer against the name in an ascending
order of the tender offers, starting with the lowest offer in first place
and the highest offer to the last place.

Scrutiny report of tenders

After a careful scrutiny of the tenders received, the next job for an
architect is to recommend a suitable contractor to the owner for the work.
This is called a Scrutiny Report. Please bear in mind her, your role, as an
architect is that of an advisor. You should be true to your conscious and
recommend a contractor keeping the interest of the project uppermost in
your mind. You should be impractical and your advice should not be
influenced by any one from amongst the contractors or owners. Having
given a sincere advice, the owner, May he be an individual or an institution,
may accept your advice totally or may think otherwise, you should not be
disturbed. This is what is said Disinterested Service to be given by an
architect. Your role or duty is to get the best possible work done from the
contractor chosen and selected by the owner.
But remember, when an architect is knowledgeable and upright, a
well-intentioned owner will always go by the advice of an architect.
On writing a scrutiny report
The architect shall give a report in writing to the client, on the
scrutiny of the tenders received for the project. In his report, the architect
should be logical in his statements. He should give step-by-step reasoning,
for NOT considering offers of contractors that are NOT suitable. If the
architects office has worked out an estimate of cost of construction of the
project, using the same BILL OF Quantities, then the tender quotations
nearby the Estimate shall be given detailed consideration for selection.
The architects scrutiny report shall be submitted to the clients office
in an enclosed envelope. The envelope shall be opened by the Secretary or
Chairman of the Committee only. The scrutiny report is a confidential
document. It is expected to be discussed only in a committee meeting.
Members of the committee, in good faith, are not supposed to make known

the architects remarks about the contractors to anyone outside the

committee.
After receiving the owners instructions regarding the choice of a
contractor for the work, the Architect has to proceed further:1. During the process of selection of a contractor for the work, if certain
points have come up, which need clarification from the contractor
who is to be selected or his definite willingness to accept work etc. is
required before he could be finally select for the work; a letter is
written to the contractor by the architect, which is called a LETTER OF
INTENT. In this letter, the architect on behalf of the owner informs the
contractor the intention of the owner to give the work to him
provided he is willing to do or accept in writing the verbal assurances
that he might have given during the process of selection. The
contractor is asked in the same letter to inform his acceptance by
return post. On receiving an affirmative reply in writing from the
contractor, the architect issues a WORK ORDER on behalf of the
owner to the contractor.
2. It is not always necessary to issue a letter of intent. If there are no
additional and important points that have come up during the
process of selection of a contractor, it is also suitable to issue a
WORK ORDER and letter of intent may not be issued. Minor conditions
also can be included in the work order itself. A specimen of work
order is given in the Appendix.
3. The contractor shall accept the work order and inform in writing his
acceptance to the architect immediately by reply post.
4. Only on receipt of the Letter of Acceptance from the selected
contractor, you may say the tendering process is complete. Only then
the architects office shall refund E.M.D. of the rest of the contractors.
5. A letter to unsuccessful contractors:
a. This kind of a letter helps create fair impression about your office
amongst contractors.
b. A person presenting your letter to contractor helps you identify the
contractors man and your office can handover the cheque of refund
of E.M.D safely to him.
c. If you have mentioned a time slot in your letter to collect the refund,
it is convenient to all and more particularly to your office staff. Your
office clerk should be ready with the cheque at the appointed time to
hand them over, and the contractors need not bother your office all
the time.
6. The process of selection of contractor. i.e. up to issuing and
acceptance of work order shall be complete within one month from
the date of submission of tenders.

Work order

A letter issued to a contractor selected for the work, asking him to

take up the work, is called the work order.
1. On the instructions of the owner (Client), this letter is written by the
architect, on behalf of the owner to the contractor.
2. There has to be a reference in this letter to the tender or quotation
submitted by the contractor for the work.
3. The letter may contain a few additional conditions such as the date of
commencement of a work on the site or such conditions arising out of
the discussions with the contractor during the process of selection of
a contractor.
4. The work order shall be included in the contract document and
therefore conditions imposed in this letter (Work Order) become a
part of the contract.
Letter of Acceptance
On receipt of the work order, the contractor should send a Letter of
Acceptance of the work order, immediately to the architect.
With his, the procedure of calling tenders can be said to be complete.
Now the architects office may refund the E.M.D of remaining contractors
forthwith.
A tender offer becomes ineffective
It is also important for an architect to remember that the tender offer
becomes NO MORE BINDING over the contractor under certain conditions.
1. Time period of the Tender Offer
This period is generally written as ONE MONTH from the date of
submission of tenders. In some special case, it could be more. This
may depend upon the magnitude of the project or technical intricacy
involved in it, and also the reasonable time that may be required to
study carefully the tender offer received. There has to be a clear
mention of this time period in the text of the tender. So that the
contractor is aware of this time period before filling in the tender.
If the client is unable to take the decision within this time period, then
thereafter, the contractor is not bound to accept the work order on
the same tender offer. The contractor may come forward by his free
will or may refuse or may ask certain changes in rates or other
conditions of the tender, which will have to be discussed with him.
Once the time limit is over, the owner/architect cannot with hold the
E.M.D. and has to be refund in full to the contractors.
Therefore, it is important for architecture to make a clear mention of
this time period in the text of the tender, and thereafter, observe this time
period, and complete the process of scrutiny report earlier giving enough
time to the owner to make up his mind and to choose the contractor within
the time period. If your client is an institution, please remember, the
decisions are not taken by an individual, but by a committee. Certain
procedure may be required to be followed, which it may require time.
Therefore, the timetable should be worked out properly before hand by the

architect with the client so that the whole process of selection of contractor
is completed within the time period.
2. Counter offer by owner
The tender itself is an offer given by the contractor to carry out a
work, which is worded by the owner through his architect. During
course of discussion if the owner puts forth another alternative
method of contract for the same work, it is called a counter offer. This
counter offer by the owner sets the contractor free from legal
obligations of his earlier tender offer. The owner and the contractor
may or may not agree on the counter offer, but the fact that an
alternative is suggested, the contractor is no more bound by the legal
binding of his earlier tender offer.
For example, a contractor filled in an item rate tender for a work.
Later if the owner suggests carrying out the same work on cost plus
percentage basis. This is a counter offer. The contractor has a liberty to
refuse the counter officer, if he feels so. At the same time, he gets away
from the legal binding of the earlier tender offer.
3. Death of a party
If the death occurs of either of the party before entering into a
contract, than the tender offer is ineffective and not binding on the
contractor.
For example, an individual owner passes away suddenly during the
tendering process. The contractors who have filled in tenders are set free.
But if death occurs of a Secretary or a Chairman or a Director of a company
who has invited the tenders, this does not hold good. The tender process
can continue and the contractors are not set free. Here, you have to
understand and appreciate that the death of an individual office bearer, the
existence of a Society or a Trust or a Company is not affected.
4. Withdrawal of Tender
Withdrawal of tender process can be from the owner or from the
contractor. The owner can stop tender process any time before issue
of Work order to Contractor. We have discussed earlier in this
chapter Clients decision to abandon the work. From the beginning
you shall take enough care so that in case of withdrawal of Tender
process, no legal troubles shall start against your client and yourself
as an architect. However, please remember, this is not a desirable
situation.
Withdrawal by Contractor: Contractor on reading the tender notice or
a letter of invitation to tender has all his freedom NOT to respond to the
call. He can purchase a tender and may not submit it, if he is unwilling. This
means he can withdraw from tendering process without any obligations or
legal hustle. But after submitting filled in tender and the E.M.D., the

contractor cannot withdraw from the process. If he does he loses his E.M.D.
and the owner may take him to the court of law for the compensation if he
has not accepted the work order.

Questions
Two marks:
1. Differentiate open and closed tender?
2. What is meant by calling for tender?
3. What are the contents of a tender notice?
4. What is Earnest money?
5. What is security deposit and how much is it?
6. What are the types of tender?
7. What is the significance of EMD?
8. What is Mobilization advance?
9. What are the guidelines for calling an open tender?
10. What do you understand by award?
11. Explain any two ways of inviting tenders.
12. What are the contents of a tender document?
13. Explain the advantages of open tenders?
14. What do you understand by the term EMD? Explain its importance.
15. What are the guidelines for calling closed tender?
16. What are the advantages of inviting limited tenders?
17. What is the purpose of insisting a tenderer to pay EMD along with his
tender?
18. What are the contents of a tender notice?
19. Differentiate between open and closed tenders.
Sixteen marks:
1. The practice of selecting suppliers through tenders may result in the
wrong supplier being selected Evaluate the statement.
2. Explain the procedure of issuing and selecting suppliers through tenders.
3. Explain the various types of tenders available for building construction
and analyze their merits and demerits.
4. Explain how tenders are called for and a contract is settled.
5. Compare and contrast the different ways of inviting tenders stating
where each type is best suited. Establish the advantages and
disadvantages of cost plus percentage tender. What is penalty clause?
6. What are the contents of a tender document? What is one part and Two
part tendering?
7. Elaborate on the procedure to be followed at the time of opening a
public tender. (8)
8. How do you scrutinize a tender document before recommendation. (6)
9. Differentiate between private tender and public tender. (8)

10. Under what situations, as an architect, you would recommend two

part tendering. How would you go about selecting the suitable contract
through two part tender.
11. Explain in detail the process of tendering, from the issue of Tender
Notice to that of signing a contract agreement.
12. What are the new trends witnessed in construction industry with
regards to the tendering process. The traditional role of an architect
undergoing a change. Do you agree or disagree?
*****************

UNIT II
CONTRACT
Therefore, there is an Act Indian Contract Act of 1872 to regulate
the agreements or undertakings in business.
Every time a contract need not be a written one. It could be an oral or
often an implied one. For instance, you stop an auto rickshaw, tell him the
destination, and enter in it and the auto driver flags down the meter as a
mark of agreement. He starts the vehicle to reach you to your destination.
This is an example of an implied contract between the passenger and the
auto driver from our everyday life. The passenger shall pay the fare only
when the auto driver reaches him to his destination and not otherwise.
Let us learn more about the contract in terms of law. In order to be
good in Law. A contract must have the following five elements present in it.
S
r
.
N
o
1
2
3

Elements

An offer
Acceptance
Contract to be signed by
competent person by free will
and consent.

For lawful consideration

For Lawful Object

Pertaining
building contract

Tender
offer
by
contractor
Work order
Rightful owner of land
on which buildings is to be
constructed and authorized
person as contractor, as
other party to contract.
Amount to be paid to
contractor. Contractors bill
for the work done.
Construction
to
be
lawful, (approved by local
authority).

For making a good cup of coffee, not a black coffee, you must have
water, sugar, coffee powder, milk and heat to boil. These are the essential
elements. If anyone cut of this is not available, then the mixture made
cannot be called a good coffee. Similar is the situation in Law of a contract.

It will not hold good if any one of the elements can be proved to be absent.
Therefore, as an architect, you shall be careful to see that each of the
elements is legally sound.
1. An Offer
We have studied the process of calling tender. In the contract
document, there shall be a positive reference to the tender and tendering
process. Therefore, the contractors letter of offer, which is included in the
contract document, we have seen that there is clear reference in the first
paragraph to the Tender Notice a letter of invitation for Tender. It is further
recommended that a copy of TENDER notice or a copy of letter of invitation
for tendering shall be included in the binding of the Contract Document.
2. An Acceptance
Work order is an acceptance by the owner, to the tender offer given
by the contractor. We have seen that, on receiving written instructions from
the owner, the architect issues a work order on behalf of the owner to the
contractor. To show that this element is observed in the process, a copy of
work order shall be included in the binding of the contract document.
3. Contract to be Signed by a Competent person
It is very important to remember that this contract for the
construction of a building is between the owner of land one part and the
building contractor on the other part. The architect is NOT a party to
contract. The architect has to draft the contract properly. Therefore, the
architect has not to sign the contract at all. However, if any printing
mistakes in the document are noticed, those shall be corrected on all the
copies by the architect only, before signing of contract by the parties. The
architect shall put his signature at every correction. Parties to the contract
shall never alter or contract the text of the contract.
The two parties to the contract are the owner and the contractor. Let
us see who is the competent person to sign as an owner. Consider a private
or an individual client who has to construct a bungalow for him. The
architect shall see from 7/12 extract or property card who is the owner of
the land. At times, the plot is purchased in the name of wife or son or some
other close relative, for some other considerations. Sometimes the wife is a
bonafide member of a housing society and the leaseholder of the plot. In
such a case man of the house, head of the family, husband or father may
come forth to sign the contract, saying that he is going to spend money for
construction or he is the KARTA of the family. It would be wrong to sign a
contract by any other person other than a person in whose name the land
is held, or who is a bonafide member of a housing society.
In case of a Trust, co-operative societies and such institutions, a
Secretary or a Chairman shall sign the contract. In case of Companies, an
Executive Director or a person expressly authorized to execute the contract
shall sign. In all cases, there shall be a resolution passed in the Executive
committee or Board of Directors authorizing the person to execute the
contract.

The other party to a contract is a contractor. Here again, the

contractor could be a Proprietary Concern, a Partnership company, or
Private Ltd. Company. Since the Proprietary concern is owned and
controlled by one person, he shall sign the contract. In case of partnership,
all the partners shall sign the contract. In the absence of all other partners,
one partner can sign provided there is a letter of authority in his name,
signed by all other partners. This letter shall be included in the contract
document. Similarly, in case of a Private Ltd. Co., an authorized signatory
or an Executive Director can sign the contract.
Except in case of an individual or a private owner, both the parties to
the contract, the owner as well as the contractor needs to have a rubber
stamp of the Post of Designation and name of the organization under their
signature.
By free will and Consent
Another important point you shall note is the parties to contract shall
sign the contract with free will and consent. Suppose, an agreement to sell
a property is executed under the threat. It could be ineffective, provided it
could be proved in the court of law that the signature was made under
threat.
4. Lawful Consideration
Consideration offered in the contract shall be lawful. Consideration
means payment in cash or kind for the work done. A mother says to a child
if you do this for me I shall give you a chocolate. Here, chocolate is the
consideration for the work a child is supposed to do. In a building contract,
the contractor agrees to construct a building for which the owner agrees to
pay him the contract amount. This is a usual form of agreement. But
suppose the owner proposes to hand over a piece of land or wealth in some
other form as a payment or a consideration to the contractor and that
wealth itself is not legally owned by the owner or has some legal hitch,
then it is a unlawful consideration. In such a case, the contract itself is BAD
AT LAW and does not hold good.
5. Lawful Object
The object of a contract shall be lawful. Suppose, there is a contract
to supply goods. But if those goods are contraband goods. Then the object
of a contract is not lawful. Therefore, the contract becomes null and avoid.
In case of the building contract, to construct a building is the object of the
contract, and it shall be lawful. The plans of the building shall be approved
by the Authorities concerned. The land on which it is proposed to be
constructed shall be owned by the person who is a party to the contract. If
knowing or by mistake, the owner directs a contract to construction on a
land not belonging to him, this becomes unlawful object, and the contractor
gets away from the legal binding of the contract. The contractor can as well
file a civil suit for the compensation from the owner.
Witness to Contract
While signing contract document, the signature of a witness is also
necessary. Responsibility of a witness is restricted to identify a person. That
means a person signing a contract is genuinely the same person and NOT

an impostor. For that, it is expected that, the witness shall know the person
who is signing the contract. The witnesses also have to say whether the
signatures were made by free will or under threat, in case asked in the
court of law. The witness is NOT responsible for the text or contents of the
document.
Indian Stamp Act of 1899
Under the Act, a contract shall be executed on a stamp paper of
appropriate value, as prescribed by the rules under the Act, from time to
time. Sale of stamp paper is a source of revenue to the Government. The
stamp duty is likely to be revised by the Government. Therefore, one has to
refer prevailing Rule before purchasing stamp papers. Value of stamp
papers is related to the contract amount.
In case of dispute, unstamped contract papers cannot be admitted
before an Arbitrator or a Court of Law. Therefore, it is advisable to sign the
contract on the stamp paper. Most of the building contracts in private
practice are carried out and completed smoothly without serious disputes.
In very few cases, disputes are referred to the Arbitrator and Civil Court.
Taking the advantage of the probabilities, usually a contract is executed on
a stamp paper of lesser value. In case, if one has to a course of law, one
will be required to affix additional stamps of proper value along with the
penalty.
Contract Document
A contract document is the most important document in connection
with carrying out of the building construction. It is necessary to have a
contract in some form or the other. It could be only a verbal one or it may
consist simply of a Tender and a letter of acceptance. But better the form;
the fewer are the difficulties in carrying out the work.
The forms of contract in the Government Departments are different. If
you are working in any Government Department, you will have to adopt
that form of contract, which is used in the Department.
The form of contract agreement we shall study is the one issued
under the sanction of The Indian Institute of Architects. It consists of- i)
Articles of Agreement and ii) general conditions of contract
A contract document shall consist of the following papers:1. Copy of Public Notice or Copy of Letter of Invitation.
2. Copy of work order
3.1
Letter of offer by contractor
3.2
Articles of Agreement
3.3
General conditions of contract
3.4
Appendix
4.
Specifications of work and material, reference to standard
specifications, special or
additional conditions drawn up by the
Architect for that particular job.
5. Bill of Quantities [contract Bill]
The same is referred as schedule of Rate as the item rates are written
on it, which are approved and accepted by the owner.
6. Contract Drawings
Drawings sufficient to indicate the work to be carried out. (This needs
not be a Working Drawing in case of item rate tender).

Before Signing of Contract

Contract document shall be properly understood by both the parties
to contract before signing it. It is for the architect to explain the contents of
it, in short, to the owner. Both, the owner and the contractor agree to give
authority to the architect to properly administer the Building contract. Both
of them agree and accept the architects supervision on the work.
Hereafter, the architect is owners representative on the work site, and the
contractor agrees to carry out the construction under the architects
guidance and supervision, as per the terms and conditions of the contract.
Hereafter, the owner shall express his views about construction, not directly
to the contractor but through the architect. The contractor shall not try to
by-pass the architect and to take the instructions regarding building
construction or ask for the payment directly from the owner. The owner
shall not entertain any request for payment from the owner. The owner
shall not entertain any request for payment from the contractor if it is not
certified by the architect. Both of them by virtue of this contract appoint
the architect as an authority to administer the building contract. If this
discipline is observed by all, I am sure the building construction shall be a
happy experience.
The architect is now charged with a heavy responsibility. He should
always remember that the owner is building by spending his own money.
Therefore, he should respect his aspirations and expectation about the
building. Ii is his duty to give the owner is sincere advice to the best of his
abilities and to safeguard the interest of the owner. Finally remember it is
owners wish; it is owners property.
Appendix in general conditions of contract
Before signing the contract, the appendix shall be filled in by the
architect, with consent of both the parties and in their presence. The
architect should explain to both the parties, the relevant clause and the
decision should be taken mutually.

Owners consulting engineers

I have experienced many a times, particularly in the case of an
Educational Trust, interference from the owners side in administering a
contract. Often there is an honorary consulting engineer appointed on the
building committee. Usually, such a person is a retired Government
Engineer either from Railways or P.W.D. Having spent entire career in the
Government department, most of them have no information about the
private architectural practice. They do not care to read and understand the
contract document, which is different in the text from the one used in the
Government works. Such consulting engineers feel that they are supreme
and hence, the conflict arises. It would be in the interest of the work, if such
a consulting Engineer remembers that an architect is the owners
representative on the work site and not a contractors man. He should
speak with the architect about the building work to suggest him or to draw
his attention to and not contradict the architect or try to overpower him.
The architect should also keep an open mind to the suggestions from

consulting engineer. Sometimes, the engineer may have practical

experience of work site. Most of the time, the engineer would be senior to
you in age. You should always be polite in conversation, but need not be
submissive on every point. It is always good to learn from a knowledgeable
person. That should be your attitude all the time in your life. At the same
time, remember you are the architect, responsible to the building
committee and shall not be carried away by an individuals opinion.
Now about the works of individual clients. I feel it is the sign of a good
culture of an individual or a good setup of mind that, having appointed an
architect one should go by his advice. If you trust someone more than your
medical consultant, it may not be suitable for your health. Unfortunately,
very few individual clients have such well-cultivated mind. I always preach
an individual owner, a private client that,there is no one else except both
of us who are really concerned about your project. There may be several
suggestions from many people around you. Please feel free to discuss with
me the suggestions. We shall adopt if found suitable. But please do not be
carried away or be disturbed by the comments of passers- by. Because he
is not responsible for his comments or suggestions.
I remember, a father-in-law of my client, for whom I had designed a
bungalow, was a retired lecturer from an engineering college. He used to
suggest and even insist the contractor in my absence to do something else
on the site. It was a big problem for me to protect my design from such a
quack. On the other hand, a surgeon told his wife and other family
members, for whom I was doing his Bungalow; we have had enough
discussions with our architect he said now do not listen to the comments
of others that may create confusion. When you visit the construction and if
you have anything to say, say it to the architect and not directly to the
contractor. It was a pleasant experience to all, including the contractor, to
construct that Bungalow.

DIFFERENT TYPES OF CONTRACT

Now we shall study the different types of Tenders. The terminology is
applicable to the types of contract as well.
1. Item Rate Tender / Contract
This is a type most commonly used for big as well as small building
projects. After finalizing the working drawings, quantities is prepared
mentioning quantities of each item against an abstract of an item. This
schedule of quantities is then issued to the contractors for filling in item
rates. Thus on the basis of the same and on the equal information, the Item
Rate Tenders are invited from the contractor.
A)This is a standard and suitable method for a big as well as for a small
building project.
B) Rate of an item is the commitment in this form of Tender/Contract.
C) This gives a freedom to the owner and his architect to change the
details of work during the construction, as he has a liberty to increase or
decrease the quantities of any item of work. without vitiating the
contract

The only disadvantages in this form of contract are the uncertainty of

the final amount of the cost of construction. Usually, it is observed that
there is a difference in the contract amount, i.e. estimate and the final bill
of the contractor. If the final bill is much more than the contract amount,
i.e. estimate, then it may sometimes, pose difficulty for the owner to
arrange for the additional funds. This creates displeasures between the
owner and the architect. To keep this possibility to the minimum, you as an
architect should take at most precaution. i) You should work out quantities
and estimate preferably from working drawings, as accurate as possible. ii)
During the course of construction if there is a change in the work, which
would increase the cost of work, it should be notified in writing to the owner
from time to time.
2. Lump Sum Tender and Contract
This method is more suitable where the owner requires a fixed
commitment of investment for construction of a project. To overcome the
problem of cost overrun, which we find in an item rate contract, this
method of contract shall be useful. This is suitable for the construction of
buildings of a simple nature and with no possibilities of additions or
alterations during the course of construction. One may find it suitable for a
repetitive work.
Essential Points to be Observed White Calling a Lump Sum Tender
1. Work to be carried out should be very clearly shown by means
of drawings
Plans, elevations, sections and all relevant details, including a
schedule of reinforcement in case of R.C.C. structure and fabrication
drawings in case of a structural steel work, in short, a complete set of
working drawings should be supplied to a contractor to work out the cost of
construction. Minor details of railing, grilles, etc. should also be included in
the set of drawings, if they are required to be included in the construction
cost.
2. Specifications
Materials and work specifications shall be included in the tender. A
list of finishes such as floor finish, plaster finish, dado, colors, paints etc.
everything shall be clearly indicated on drawing and supplemented in
words. So that the contractor will be able to work out correct quantities. It
is convenient to give a list of approved materials.
3. Plumping and Sanitary fittings
If the services are also to be included in the lump sum tender, than a
plan together with the specifications shall describe the plumping and the
sanitary work. One should specifically mention the size, colour and make of
the sanitary fittings, the diameter of a material and the make etc. of waste
lines and sewage line, underground lines. It is proper to give a plan of
drainage line including inspection champers and up to the disconnecting
chamber (Intercepting chamber) and to include this work in the lump sum
tender.

Where municipal sewage lines are not available to a site, a septic

tank shall be constructed, and it shall be included in the lump sum tender.
However the architect should not forget to give a working drawing of septic
tank, if it is not ready-made to be used.
4. Electrical Installation
If the lump sum cost is to include an electrical installation, you should
indicate, the outlet position, the control switch board positions, the
positions of D.B.M.C.B., the electrical meter position, etc. clearly on the
drawing. The specifications should give details of wire, switches and
accessories, control panel etc. You should also specify whether it shall be a
concealed wiring or a surface wiring. It is convenient to include in the lump
sum tender, an electrical installation up to and including the main switch
electrical meter and cupboard. Bringing an electrical supply up to the
electrical meter shall be separate job, which may not be included in the
lump sum tender.
5. Water supply
Water supply system within a building can also be included in the
lump sum tender as it can be clearly indicated on the drawing and can be
described in the specifications. This shall include an overhead water
storage tank, a ground tank or an underground tank. In case of a readymade tank, it is necessary to specify its make, capacity etc. while it is
necessary to supply a working drawing, in case of the tank is to be
constructed on site. The drawings and the specifications shall include a
diameter and a class of G.I. pipe line to be used in the work. The water
supply may require a water pump, which has to be specified properly.
Source of water supply to a property could be a municipal water
supply or owners own arrangement such as well water or water lifted from
nearby lake etc.
Uncertain items of work
The uncertain items mean the items, which cannot be worked out in
details in terms of quantities and cost at the time of floating a lump sum
tender. It will not be fair to include such items in the tender. It could be a
reason for dispute and displeasure. To cover an uncertainty, a contractor
may consider a higher cost for a work. Then it is a loss to the owner. On the
other hand, if it goes beyond the expectation of a contractor in
expenditure, it may have a bad effect on his performance.
Work below ground level
To be strictly theoretical, the list of uncertain items of work will
include the foundations of a building or work below the ground level. The
depth of excavation cannot be predicted. A trial pit cannot be always
representative of all the area of a building. The depth of excavation totally
depends upon meeting desired strata. Therefore, the depth of excavation
varies from column pit to pit. If the variation in depth is not much and yet
well within the specified depth, then such a case may be suitable for the

lump sum tender. Sites with slope or with changing strata are really not
suitable for including foundation work in the lump sum quotation. There
may be a big difference between assumptions and actual. It may prove
unfair to either of the parties to contract.

CONTRACT DOCUMENT
Supervision of work
Supervision of work is an important duty of an architect from the
practical point of view. You shall be good at designing of a building. It is
equally important for you to give an effective supervision on the
construction. It is not expected of you to be on site all the while. Even then
you shall have full control on the project. For that you must be well versed
in your responsibilities and authorities as well. In government department,
executive powers are not with the government architect. There are
engineers of the department for that purpose. But in private practice, it is
not so; and it shall NOT be so. Owner engages an architect for a project;
and the architect shall not lose hold on the project.
As per code of council
The council of architecture has kept this role of Construction
Manager as optional. On big projects, owner is supposed to appoint a
separate agency to supervise the construction work. But there is more
number of medium and small construction works where perhaps it is not
suitable to the owner to engage one more agency to supervise the
construction. If a clerk of works/ site supervisor is appointed to assist the
architect, reasonably effective supervision on construction is achieved.
Articles of agreement and general conditions of contract as prescribed by
the I.I.A. shall be used for signing contract, which gives an architect an
additional authority that is required to work as a Construction Manager.
Architect as construction manager
A practicing architect is in a way a Construction Manager of a
project for which he has been commissioned by the owner to design. He
being the owners representative has to see that building project is
executed under his supervision and guidance per the conditions of contract
signed between the owner and the contractor. He has to oversee quality of
materials and the workmanship with the help of the clerk of works (in some
cases mare than one person) appointed for the project. He shall see that
the project is carried out as per the design drawings, working drawings and
specifications given to the contractor. The architect may be required to give
further details and decisions during the course of construction. He has an
authority to remove any worker or sub-contractor for his unsatisfactory
performance, so that the quality of work shall not suffer.
The architect has to control the cost of the project by checking the
quantities of works executed and the item rates shown in the contractors
bill for payment. The architect has to probe into the extra item rates and
rates for variation of items and judicially certify them for the payment. He
has to play a role of an Auditor for that matter. Over and above, an
architect must keep a proper liaison with the client. Keeping him informed

regularly the progress of work on site and directions and decisions given to
the contractor by him (Architect). To discharge all this duties, an architect
has to visit the site frequently at a regular interval. He has to make a round
and see for himself all the areas of the project. He shall hold site meetings
with representatives of general contractor, sub-contractors, nominated subcontractors, site engineers and clerk of works etc. In such a meeting, he
shall criticize under performance and delay in progress, unsatisfactory
quality etc. But shall not remain behind to praise a person for his good
work. This motivates the team to do better than before. He shall
always talk of co0operation and co-ordination between different agencies
and sub-contractors and suppliers. He shall motivate the whole team
for doing their best.
When the contractor is doing his work sincerely and satisfactorily, the
architect shall also go little out of the way it insists upon the owner for
making the payments to the contractor on time. Because that keeps
the contractors money rolling.
Study of contract document
Out of the three types of contractors an item rate contract is more
commonly used. We have made a list of components, generally included on
a contract document in Chapter XI. If it is a lump sum contract, there shall
be a slight change in the list of components. That also we have discussed in
Chapter XI. Common to both the types is the letter of offer given by a
contractor to the architect. (Please read a specimen given in Appendix
14.I). There are five paragraphs in the letter. Each of them is an important
commitment.
Letter of offer
In the 1st paragraph, there is a reference to the procedure adopted for
this tender, i.e. invited or Tender notice in newspaper dated
etc. There is also a reference to the work, i.e. name of the work for which
this procedure of tender is made. The next item is about the type of tender
Schedule of Rates if it is an item rate Tender or Lump sum amount of
Rs if it is a lump sum tender.
In the following paragraphs, the commitments made by the
contractor are of immense importance for the execution of project. Here, he
accepts your authorities as an architect for the project. He shall not raise
claims on account of conditions on site. He shall accept your authority to
forfeit E.M.D. under certain conditions. The contractor also commits the
time limit to complete the said work.
This offer letter shall be signed by the proprietor, if the contracting
company is proprietary, and by all the partners if it is Partnership Company,
names of all the partners shall be written by the contractor. A rubber stamp
of the office shall be used. All these precautions shall be taken to restrict
the possibilities of anyone backing out from the offer given. The other
partners shall not deny their legal responsibility.
In addition to the general Conditions of contract as prescribed by I.I.A.
and which are available in printed form, every architect may have a few
additional clauses for a particular work, which are called PRELIMINARY
CONDITIONS. These shall be included in tender and in contract as well.
While writing out these Preliminary Conditions, one should avoid repetition

of clauses that are included in General Conditions, which are exhaustive

in it.
To write out and to include the specifications of building materials and
works shall be a volume of work. There are standard specifications of
building materials and works by I.S.I. specifications by public works
department of the Central Government and the State Governments. You
shall be familiar with at least one of them. Preferably you shall have a copy
in your office library. In preliminary conditions if you include a clause saying
Where not stated otherwise, standard building material and works
specifications as laid down by P.W.D. Handbook shall be considered for this
work. This will reduce your clerical work and stationery. For the benefit of
young architects, starting their own practice, I have added in Appendix
Preliminary conditions used in my office. You should read them carefully
and understand well. You shall copy them and suitably include in tender
and contract in your work. I shall draw your attention to some of the
clauses.
Basic Rates of Material and Escalation of Prices (refe3r Appendix
14 II)
At the time of floating tenders, the architect shall learn from the
market, the prevailing rates of building Materials and include them in the
list of Basic Rates. The advantages of this clause are;A. This provides a freedom of choice to the Owner and the Architect
regarding the finishing materials such as marble, ceramic tiles,
mosaic tiles etc. without being unfair to either of the parties to
contract.
B. The owner can arrange to purchases the standard building materials
such as Cement, Steel, and Bricks etc. provided he could procure it at
a cheaper rate than the basic rates and supply it to the contractor. /
The deduction for the material supplied shall be made from the
contractors bill at the Basic Rates only. The difference in price shall
be saving to the owner. Educational Trusts, Hospitals or even an
Individual Owner may get a big discount or donation in the form of
Building Material. This clause is useful in such situations [Refer clause
owners right to supply building material].
C. Price Escalation; during the period of construction, prices of material
are likely to fluctuate. If the price rise is marginal usually a contractor
can absorb it. But if it is more, say more than 5 %, and then it would
be unfair to compel the contractor to work at the same item rate. If
the price rise is very high, it may erode the profit margin of the
contractor and may have an ill effect on the quality of work. Cost of
building material is a major component in an item rate of
work.
Therefore, if the escalation in building material is taken care of, the
contractor faces no hardship due to price of material. This arrangement I
have found in my practice, works well. If not all, prices of major building
materials such as cement, reinforcement steel, structural steel, bricks, floor
tiles etc. shall be covered under this clause.

The contractor has to produce bills of the material purchases to

architects office. The architect shall check whether there is a clear mention
on the bill, of the site to which the material is delivered. The date of the bill
shall also match to the requirement of material on the site. The clerk of
works shall certify the arrival of material on the site.
This is only to ensure that the Purchase Bill of other sites is not put in
to the account of your site.
Purchase Price
- {Basic price + 5 % of Basic price} = Amount payable to
contractor by owner.
[Basic price + 5 %of basic price] Purchase Price
= Amount payable to
Owner by contractor.
In Government works, there is a certain formula to work out increase
in an item rate and labour rate due to inflation, which is rather clumsy. I do
not recommend it to be used in private practice.
The printed booklet consists of:
1. Articles of Agreement
2. General conditions of contract and
3. Appendix
Articles of Agreement
The first page of the booklet of the printed matter or ledger paper is
the Articles of Agreement. This is printed in the form of Fill in the gaps. It
is necessary to affix adhesive court fees stamps of appropriate value before
signing on it. Legally it is very important. One shall not sign first and
then affix stamps. Person signing the contract must realize and
understand that he is signing on a stamp paper. Alternatively, the text of
Articles of Agreement shall be typed on a stamp paper of the appropriate
value. This stamp paper shall replace the printed first page of the booklet.
Purchase of stamp paper of affixing stamps is to be done by one of the
parties to the contract, usually the contractor. The contractor shall
purchase a stamp paper and give it to the architects office for further
work.
Filling in the gaps in the text of the Articles of Agreement is very
simple. Still you must remember the following;1. The first line is the date This is the date of signing the contract and
not the date of tender or any other date. In practice, the contractor
can start the preparation on site or commence the work on site on
the strength of the work order received by him. Preferably the
contract shall be signed before commencing the work on site. With
mutual good faith, it could be signed a few days later as well.
2. Then comes the Name of the owner and his address (herein after
called the owner). Thus, we define the owner, the party to the
contract. In case of institution, name of the person, his designation
and address of the office of institution shall be written.
3. The other party to the contract The contractor is defined in the
following lines. In case of a proprietary concern, you shall write e.g.
U.R. Nandi, proprietor of Nandi constructions. If it is a partnership
company, it is good to make all partners party to the contract, e.g.
U.R. Nandi, partner and all partners of M/S. Nandi construction co.

4.

5.
6.

7.

8.

Thus in case of a company, name of the person his position, like

partner, director etc. and address of the company shall appear.
Then follows the work WHEREAS the owner is desirous of
.. Here you describe the work. e.g. the owner is
desirous of constructing a Building for a Hospital on ..
Then the address of site.
Next to be filled in is the name of the architect and his office address.
Please note in case of a lump sum contract, you should omit the word
Bill of Quantities and keep only working drawings and specifications
in the text.
The contract drawings (refer definition on page No.232) shall be
numbered, and shall be signed by both the parties to contract. The
schedule of rates included in contract called contract Bill, shall be
signed by both the parties on the last page of the Bills.
Security Deposit: E.M.D. given along with the tender, along with
additional installment if asked for, is now termed as Security Deposit.
This security Deposit shall remain with the Architects office and shall
bear no interest. It shall be refunded to the contractor on virtual
completion of the work. This amount of deposit is to be mentioned
here in the Articles of Agreement.

The Para says it is agreed as follows. This sets out the obligation of
each of the parties. The contractor has to complete the work as per the
terms of contract and the owner has to pay the contractor the contract
sum or the sum as becomes payable as per terms of contract from time to
time. The Articles further define the Architect for this contract and
appointing his successor in case, it is need to do so. The intention is not to
allow the contract to become void on account of change of Architect. There
is a point to be noted in this paragraph. Appointment of an Architect for this
work is entirely the owners choice. The contractor has given tender and
entered into contract knowing full well who the Architect, for the project is.
If he had any grievances regarding the Architect, the contractor in the first
place should keep himself away from tendering for the work. But now
having entered into contractor if for some reason, the Architect is required
to be changed; it cannot be the owners choice alone. The contractor has
a reasonable say in it.
Architects office shall make the contract document on stamp paper
and shall prepare two copies of it, at the same time.
A. Before signing the contract the architect shall allow both the parties
to contract particularly the contractors to satisfy themselves that the
item rates in the contract Bill, in all the three copies are the same as
agreed upon in tender offer.
B. Then the architect shall explain the Appendix to both the parties and
fill in the particulars.
C. Both the parties shall sign below the Appendix on all the three copies.
On Filling Appendix

At the end of the general conditions of contract is the Appendix. This

shall be filled in on all the three copies by the architect, after mutual
consent of both the parties to contract.
Defects Liability Period
This is like a warranty period given by a manufacture. Any defect
observed during this period in the building shall be made good by the
contractor free of cost to the owner. Defect liability period shall be
minimum one year, after virtual completion of the building, so that the
building has experienced all the seasons of the year. However, if the owner
desires to extend this period it shall be notified in the blank tender
document.
Period of Final Measurement and Valuation
This is printed as three months after virtual completion and that is
reasonable. After the contractor has submitted his final bill and
measurements, the architects office shall scrutinize and finalize all the
accounts of the project within three months.
Date of Commencement
In the work order, the contractor is given a certain period to mobilize
the site and he is asked to commence the work on site on or before a
certain date. The date on which the work is started on site shall be entered
here.
Date of Completion
The contractor has committed himself to complete the work in certain
period of time in the letter of offer. The date of completion shall be worked
out accordingly and shall be entered here.
Agreed Liquidated Damages
There is a penalty for the delay in completion of the work. The owner
having invested in building, if he is not able to utilize the building on
account of non-completion of work on time, he is losing his returns on his
total investments. To work out the per day loss to the owner, work out
interest at 70% p.a. on the contract amount for one year and divide the
annual interest by 365 to work out daily loss.
Loss per day - Annual interest on the contract amount at 70 %

365 days
This amount shall be rounded off to a suitable higher figure and shall be
written in Appendix. The per day amount shall not be too small; lest it will
NOT serve the purpose. Often the owner is nor=t happy with a small per
day penalty, particularly in case of industrial or commercial projects. Then
these calculations shall be made with higher rate of interest mutually
agreed, say 18 % or more. But remember, to make it a balanced contract,
you shall insist to apply the same rate of interest for the delayed payment
by the owner to the contractor. In that case, the architect shall correct the
rate of interest printed on all the copies of the contract, with a mutual
consent of both the parties. The architect shall put small signature there.
Value of Work for Interim Certificate

It is not practical to expect a contractor to complete the project and

then ask for payment at the end. The contractor shall be paid in between
also. The contractor shall raise the Interim Bill or the Running Account Bill
(R.A. Bill) of the work done on site from time to time. Instead of raising a
monthly bill, it is more correct to set up a mutually agreed amount for the
interim bill/certificate. This amount mutually agreed shall be written here.
As and when the contractor realizes that he has carried out work worth that
amount, he shall submit a bill along with measurements sheets and all
relevant papers to the architects office for the scrutiny and for issuing the
certificate for the payment.
This amount of bill can contain value of building materials brought on
site such as cement, reinforcement steel, bricks etc. if purchase by the
contractor.
Usually 80% of the cost of unfixed material on site is included in the
amount payable to the contractor in the running account bill. This value of
work for interim certificate shall not be too small. Though the contractor
will like to have it small. So that the contractor can keep his investment lie
in the project, there will be more number of interim bills in a given project,
occupying more of your time in scrutinizing them.
The owner shall not pay the contractor under any pretext, without
a certificate for payment from the architect. The owner shall not pay to the
contractor any amount more than that is certified by the architect, for the
payment to the contractor.
In Case of Lump Sum Contract
Write here in Appendix as per statement attached. A statement
shall be made stating stage of work done on site and amount to be paid to
the contractor at that stage.
Retention Percentage
Before commencing work on the site, a contractor is supposed to
deposit 10% of the contract amount as a security deposit with the
Owner/Architect. When the project is of a big amount, the amount of
security deposit also is sizeable. The contractors working capital is locked
up by giving this security deposit.
Schedule of Quantities
In an item rate contract, the rate of an item is the essence to any
extent, which will not vitiate (destroy) the contract. This is not provided
here to give you (Architect) a liberty to be careless about quantity
surveying whiles preparing the tender and the contract bill. This is to give
Liberty to the Owner/ Architect to do alterations in design during the
construction to some extent, which wills obviously increase or decrease
quantities of items.
The owner has a right (a) to increase or to decrease any of the
quantities of item, (b) to totally omit any item of work. The contractor shall
not claim extras or damage on these grounds.
Contract Drawing

The drawing that is including in a contract document is a Contract

Drawing. It is to be taken as indicative. It shows dimensions, positions and
type of constructions.
1.1
Contractors work shall not deviate from the drawing and
specifications. Architects interpretation of these documents shall be
final and without an appeal. This is a very important clause. Architect
must know precisely what he wants as far as design is concerned and
he shall be confident about the technology. So that others may not
over power him.
1.2
A) Errors or consistencies in drawing and specification shall be
promptly brought to
the attention of the architect, for the
interpretation or correction.
B) Local conditions, which may affect the work, shall be also brought
to the notice of the architect.
C) If it is discovered at any time that the work is not as per the
drawings and specifications, the contractor shall correct at his own
cost without claiming extra time or cost.
1.3
Large scale drawings shall take precedence over small scale
drawings figured dimensions shall govern. Any work done before the
receipt of such details, shall be removed or corrected by the
contractor or adjusted as directed without extra cost to the owner.
[As a good practice, the architect shall give all the large-scale details
well in advance. You shall not take this clause as a license to delay
your work.]
1.4
All drawings, bill of quantities and specifications and copies
thereof, shall not be used on any other work but shall be returned to
the architect on the completion of work or the termination of
contract.
1.5
Bar bending schedule if asked for, shall be supplied by the
contractor to the architect at least fifteen days in advance before the
fabrication of the reinforcement. [This is to give you a sufficient time
in your busy schedule, to examine the schedule carefully. Once you or
the structural engineer has approved the schedule, it is your
responsibility about its correctness.
Contract Sum
The contract sum shall not be adjusted or altered. The contract sum
can be altered only in accordance with the express provisions of these
conditions of contract. The architects interpretation of these documents
(Which includes drawings and specifications as well) shall be final.
Contract Bills
The bill of quantities included in a contract known as contract Bills.
1. If there is no other mention in case of a particular item of work, then
the quantities shall be worked out (measured) as per the standard
method of measurement of building works latest issued by the Indian
Standard Institute (I.S.I).
2. If the architect indicates as a particular mode of measurement for
any item of work in this bill of quantities, the same shall be followed
by the contractor. (irrespective of standard mode of measurement)

3. Any error in the description or in the quantities or the omission of

item from the contract bills shall not vitiate this contract. The errors
shall be corrected and items omitted shall be added and these items
shall be considered as variations required by the architect.
Scope and Intent of contract
1. The general character and the scope of work is illustrated and
defined by i) Specifications, ii) Bill of quantities and iii) Contract
Drawings. All these are included in the contract document.
2. If any discrepancy in or a divergence between the three above is
observed by the contractor, he shall give a written notice to the
architect pointing out a discrepancy or a divergence. The architect
shall issue the instructions in regards to that Extent 8(2) under this
clause, the architect is authorized to issue to the contractor further
drawings, details and written instructions regarding the said
construction work.
3. The intent of a contract document is to include all the required
labour, material, equipment and transport etc. necessary for the
proper execution of work.
Architects Instruction
1.1
Under the contract, the architect is expressly empowered to
issue instructions to the contractor pertaining the said work.
i) The contractor shall comply with the instructions of the architect.
ii) If such instructions involve variation, it shall be confirmed writing.
iii)
If the instructions issued by the architect are not complied with the
contractor within seven days, then the owner may employ and pay
other person to execute any such work, which may be necessary to
give an effect to such instructions. All the cost
incurred for such
work shall be deducted by the owner from any payment that shall be
due to the contractor.
1.2
The contractor may ask the architect in writing, the clause of a
contract under which a particular instruction has been issued by the
architect. The architect shall reply forthwith such a letter. Obviously,
you must be conversant with the General Conditions of Contract.
(Purports to be.. = appears to be ..)
1.3
All instructions issued by the architect shall be in writing. any
instruction issued orally shall be of immediate effect. But the
contractor shall confirm in writing to the architect within seven days.
Facilities and Co-operations
The construction of modern buildings is a multidispensary work. The
general contractor who is a civil contractor has to co-operate with other
contractors such as contractor for elevators, air-conditioning, electrical
installation, plumping etc. This clause is necessary to make it obligatory for
the general contractor to co-operate with other agencies contractors.
Setting Out
This clause puts responsibility of accuracy of setting out of line out of
building on to the contractor, as per the drawing provided by the architect.
The architect has to furnish the contractor an accurately dimensioned

drawings and information such as line of reference and correct levels etc.
Therefore, you shall be capable to produce an accurate centre line plan.
Contractors Visit to Site
1. The contractor is supposed to study the conditions at the site
including access to the site, distance, availability of men and material
to the site etc. before filling in the item rates in the tender. This
clause is to prevent the contractor from making a claim for an extra
payment later on account of situation at the site.
2. Possession: The site is as if given in possession of the contractor to
do the construction work as per the contract from the date of
commencement and up to the date of completion subject to
extension of time given as per the relevant clause.
3. Treasures: Any treasures coins or object of Antiquity found on the site
shall be handed over to the owner. Often such things are found in
excavation.
Samples and Shop Drawings
Under this clause the contractor is required to submit the samples of
all materials within sixty days of signing the contract and not less than 120
days before its use in that particular item of work taking place on site. The
architect shall remember this clause and insist up on it. That will set the
contractor to make the arrangements well in advance and there will be
enough time to place the orders for supply of chosen and specified
material. The clause further says that the dates of submitting samples shall
be indicated on Bar chart. This is very important. That reminds every one,
the architect as well as the contractor, the activity that should take place
on a particular date to be on time.
Progress Chart
Project management is much talked about these days. In fact it is
nothing but methodic working of a project. If it becomes a habit with you to
work systematically in your everyday work, you are not far from Project
Management. Only ting remains to learn about and adopt in your work, a
couple of tools like BAR CHART (progress chart), flow chart and Network
Diagram etc.
This clause authorizes you to insist upon the contractor to produce a
progress chart (bar chart). You shall make copies of the same and keep one
in your office and the other on the site. You shall refer the chart every time
when on site visit to check the progress of work on site.
Access for Architect to the Work
The opening sentence of this clause says Architect shall be the
owners representative during the construction period. This is one of the
roles; the architect has to play in practice. The other roles being, owners
advisor, auditor and umpire. This clause gives an authority to the architect
to visit not only the work site but also places of work of sub-contractors for
the inspection of work being carried out there.
Architects Status and Decisions
There are about twelve points in this clause.

1. The Architect shall be the owners representative during the

construction period.
2. The Architect shall periodically visit the site to see for himself the
progress and the quality of work and to determine in general if the
work is proceeding as per the contract conditions.
3. The architect shall not be required to make exhaustive or continuous
on site inspection to check the quality or quantity of the work and he
shall not be responsible for the contracts failure to carry out the
construction work as per the contract.
Often the owners have wrong expectations of architectural duties.
This clause is important from that point. It is for us to explain to the
owner beforehand. As far as construction is concerned, the
responsibility of an architect is to give proper drawings and
instructions to a contractor. In spite of that if the contractor is unable
to deliver the goods, it is logical to say that the architect shall not be
responsible for the contractors failure.
4. The architect shall inform the owner from time to time about the
progress of work on the basis of his visit to the site [while explaining
clause 9.3 above I have suggested writing on Triplicate Book. In
that develop habit of writing an opening line about the progress of
work on site such as Concreting of footing is complete or Brick
Masonry on ground floor is almost complete. This is recording the
progress of work. A copy of these instruction to contractor shall be
sent to the owner. There by the obligation of keeping the owner
informed about- i) progress of work and. ii) your instruction to
contractor is fulfilled.
5. The Architect shall guard the owner against defects and deficiencies
in the work of the contractor, and for that he shall condemn the work,
which is not as per the architects instructions, in the form of
drawings and specifications. [In such a case, the architect shall give a
written instruction to remove and redo the portion of work, which is
not meeting the requirements of the contract conditions].
6. The Architect shall have an authority to act on behalf of the owner
only to the extent expressly provided in the contract document. [The
contract gives an authority to the architect to act on behalf of the
owner only for the proper execution of the project and not beyond. It
will be beyond. It will be beyond the architects authority to promise
someone to sale a portion of property or surplus land of the owner
etc.]
7. The architect shall have an authority to stop the construction work
whenever such stoppage is necessary to ensure the proper execution
of the contract.
8. The architect shall be in the first instance, the interpreter of the
conditions of this contract and the judge of its performance. He shall
side neither with the owner nor the contractor. He shall use his
powers under the contract to enforce its faithful performance by both
the parties.
9. In case of termination of the architect, this contract shall not be
vitiated. The owner shall appoint another architect against whom the
contractor shall have no unreasonable objection. Any dispute in

connection with such appointment shall be subject to Arbitration.

[please refer the explanation on ARTICLES OF AGREEMENT].
10.
DECISIONS: The architect shall within a reasonable time make
the decisions on all the claims of the owner or the contractor and all
other matters relating to the execution and progress of the work or
interpretation of the contract Document. The Architect is an umpire.
Therefore, do not be hasty in expressing your opinion. A layperson
can make any statements. But when a professional expresses his
views, it is taken as considered opinion. Therefore, you shall express
your opinion within a reasonable time and not on the spur of the
moment. You shall express your views only after referring the matter,
text of the contract, drawings, standard specifications etc. as needed
by the case. But at the same time, you shall not take too long give
your decisions.
11.
This clause also authorizes the architect to issue from time to
time further drawings, details and written instructions all the matters
related to the construction of the project. A full list from A to L is
given in the clause.
12.
DISMISSAL: If in the opinion of the architect, any person
employed on the work by the contractor or sub-contractor, is not
competent or has misbehaved, the architect shall ask the contract to
dismiss him from the work. The contractor shall do so with an
immediate effect. A person so dismissed shall not be employed again
without a written permission of the Architect.
[The Architect shall use this authority if he notices bad workmanshipeither due to lack of skill required for the job or the attitude of a
worker to ignore the instructions given by the architect or the clerk of
works. It is necessary to exercise this authority in the interest of the
work, which results into safeguarding interest of the owner, which is
the prime duty of the Architect.]
Performance Bonds
The concept of security deposit is explained earlier in this chapter in
the paragraph Retention percentage. Earnest money becomes a part of
Security Deposit. Amounts shall be agreed upon mutually. The period of
holding the deposit is also subject to mutual agreement before signing the
contract.
Clerk of works
The word CLERK may be misleading for some of you. The clerk of
work is in fact a Technical Person and is Supervisor of work on site.
Architect shall insist on the appointment of Clerk of Works particularly on
the institutional works.
Contractors Field Organization and Equipment
This clause requires the contractor to appoint a Site Engineer in
charge of the work, who shall be present all the time on the site when the
work is in progress. This Site Engineer shall carry out the work as per the
drawings and specifications issued to the contractor. Any instruction given
to the site Engineer by the Architect is as good as given to the contractor.

Taxes
The item rates shall include all taxes, duties and octroi etc. legally
payable. That means no additional payment towards any tax shall be paid
by the owner. (Works contract tax also).
Statutory Obligations, Notices, and Fees etc.
If a contractor uses the area of road for dumping a building material
during the construction period, the local authorities (Municipal corporation
etc) charges rent or fees for that, which the contractor is required to pay
under this clause. The contractor shall hand over the receipt of payment or
the N.O.C. to the architect, which may be required for the process of
Building Completion. Similarly, the plumbing contractor shall obtain a
N.O.C. from the Drainage Department and the water department as a part
of his duties under this contract. Similarly, the Electrical contract has to
submit test-report to the concerned authority and obtain the Electrical
supply to the property as a part of his duty under the contract. Architect
need not spend his time for these works.
Water for Construction
It shall be made clear by the architect as to what is the source of the
water supply to the site during the construction. The contractor also before
working out his item rates shall visit the site and take into account the cost
of water that may be required for the construction and shall provide for that
in the item rates.
Sub-Contractors
It is a usual practice that a General Contractor in turn engages the
sub-contractors or the labour contractors for the different of work involved
in a construction project. You may not see same workers doing concreting
who had excavated for foundations.
1. Under this clause, the contractor is required to submit a list of subcontractors he intends to engage for the major parts of the work. Any
of the Sub-contractors disapproved by the Owner/Architect shall not
be engaged on the work.
2. The Architect shall have powers to obtain the estimate and select
other agencies to carry out any of the works. Such agencies like
specialists, suppliers, tradesman selected by the Architect or the
Owner are called nominated sub-contractors. These shall be deemed
to be sub-contractors engaged by the contractor. If the contractor has
a reasonable objection against a Nominated sub-contractor, he shall
not be employed by the contractor with consent of the Architect.
3. It is the contractors responsibility to get the work done as per the
requirements of the contract from the sub-contractors and the
nominated sub-contractors.
4. For all the practical purposes the General Contractor shall treat a
nominated sub-contractor same as sub-contractor. Nominated subcontractor shall carry out the work as required by the contract and to
the satisfaction of the contractor and of the Architect.
5. Except the provision of Fire Insurance, which is to be done by the
General Contractor, all other provision of the contract on part of the
contractor is to be observed by the nominated sub-contractors.

6. The nominated sub-contractor as well as the sub-contractor shall

indemnify the contractor against the same liabilities in respect of
their works as those for which the contractor is liable to indemnify the
owner under this contract, such as act of negligence, omission,
default of sub-contractor or his servants etc.
7. The contractor shall pay the sub-contractor within 14 days after the
receipt of a certificate for the payment for the Bill in which subcontractors work is included.
8. The architect shall have right of Access to workshops and other
places of works of sub-contractors and nominated sub-contractors.
[This gives an authority to the Architect if he wishes to inspect
fabrication windows, grilles, M.S. Gate, M.M. Tiles or any other
materials etc. at the workshop or factory.]
9. The contractor can retain the proportionate amount from the
payment due to the Nominated Sub-Contractor, proportionate to the
retention kept by the Architect in R.A. Bill of the contractor.
10.
The Architect has an authority to ask the contractor whether
payments are made to the sub-contractors and the Nominated subcontractors as per the previous certificate of the payment, before
issuing the next certificate.
11.
The contractor shall not grant an extension of time to a
Nominated sub-contractor without the permission of the Architect.
12.
The contractor shall allow for general attendance upon subcontractors and also free use of plant scaffolding, use of sanitary
conveniences, storage facilities for material and reasonable facilities
for carrying out their works.
Prime Cost
Even in an item rate tender and contract, it is sometimes convenient
to include in Contract Bill and in contract sum Provisional Sum in respect
of materials or goods to be fixed in the construction work about which
details are not final or the owner wants his freedom to finalize it later.
Separate Contract
The items of work that are with the main contractor are carried out by
other agencies which are called sub-contractors. This includes nominated
sub-contractors as well. The owner has no separate contract or an
agreement signed with these agencies. The sub-contractors work under the
control of the main contractor. In order to complete the project in all the
respects, there could be certain agencies required to be engaged. Their
work could be out of the scope of the main contractor. By including this
clause, the owner reserves his right to engage such other contractor, while
the main contractor is still working on the site.
Variation, Provisional and Prime Cost Sum: Explanation
During the construction, the architect may find it necessary to alter
or modify the design or item of construction and may ask the contractor
accordingly. This change in item is called Variation in work. As per this
clause, the contract is not vitiated because of variation. The architect may
instruct the contractor to make the changes in the abstract of an item.

PROVISIONAL SUM: At the estimate level, without going into the details,
a certain amount based on earlier experience, is provided in the tender
against an item by the architect, usually for purchases of goods. This
amount is further included in Contract Sum.
Certificate and Payments
It is one of the responsibilities under taken by the Architect, as per this
contract to work like an auditor. Any payment to be made by the owner to
the contractor shall be made only with the recommendation of the
Architect.
Claim for Extra
If instructions of the Architect given on the site involves an extra
work where by the contractor may plan to claim an extra rate, the
contractor shall inform the Architect before proceeding with the said work
on the site.
Deduction for Uncorrected Work
Any work damaged or not done in accordance with the contract, and
in the opinion of the Architect, it is not likely or helpful to try to correct it or
improve upon it, the Architect in such a case reduce or make an equitable
deduction from the contract price of that work.
Fluctuation
This clause is not suitable in present day situation. In the developing
economy of the country, the market is expected to be unsteady. Instead of
this clause, the clause of Basic Rates of Materials as explained is
recommended.
Unfixed Goods and Materials
As per this clause, the building material brought on the site shall not
be removed from the site without a written instruction of the Architect,
more as when the value of such material on the site is certified by the
Architect for the payment in R.A. Bill. The reason being since now, the
owner has paid for that material, it belongs to the owner; therefore it shall
not be removed from the site without permission except for its use in the
construction. However, safety and security of the material on the site shall
be the contractors responsibility.
Materials and Workmanship
1. All building materials and workmanship shall be as per the relevant
code of I.S.I. specifications. The contractor shall remove from the
works site any material and/or work, which in the opinion of the
Architect are defective or unsuitable and shall substitute a proper
material and/or a workmanship at his own cost.
2. Whenever a special make or the brands are called for, they are
mentioned as a standard. Others of equal quality may be used with a
written approval from the Architect. Such an approval must be taken
within 30 days after signing of the contract. Thereafter a request for
substitution may be denied.

Defects
The contractor shall make good, at his own cost and to the
satisfaction of the architect, all the defects, shrinkages, small faults arising
in the work that may appear within Defects Liability Period.
The contractor shall make good the defects as directed by the
architect, at his own cost, within a reasonable time as given by the
architect.
Water proofing of Terrace
The main contractor, preferably along with the sub-contractor for the
water proofing work shall give in writing on stamp paper, a guarantee for
Ten Years to the owner, about the water proofing work.
Extension
The extension of time to complete the project can be given by the
architect only under certain conditions given below. The contractor has to
give a written notice to the architect immediately if he has lost the time of
work for the reasons beyond his control such as given below. If the reason
is true and reasonable, the architect shall inform in writing to the contractor
and the owner as well, the number of days of extension granted beyond the
date of completion.
Damages for Non-completion on Time
If the contractor fails to complete the work by the date specified in
Appendix or within extended time given by the architect, then the
contractor shall pay the owner or allow to the owner to deduct the penalty
from any amount due to the contractor. This amount of penalty shall be
worked out at the rate of interest agreed upon and written in Appendix, on
the contract amount for the period of Extra Time taken by the contractor
to complete the project.
Virtual Completion and Defects Liability Period
When in the opinion of the architect, the project (work) is practically
completed; the Architect shall issue immediately a certificate (a letter to
the owner with a copy to the contractor) to that effect. The date of
completion of the project stated in this letter shall be referred for all the
purposes of the conditions on this contract.
Loss and Expense Caused by Disturbance of Regular progress of
Work
This is one
evidence that this is a balanced contract. If there be any hindrance in the
normal progress of work on the site because of the following reasons, this
contract provides a monetary compensation to the contractor. The
contractor shall make a written application to the architect stating the
cause of hindrance and the direct loss or expense incurred by him. If the
contractor is not reimbursed by the payment under any other provision in
this contract, then the architect shall ascertain the amount of such loss or
expense and add that amount to the certificate for payment to the
contractor.
Injury to Persons

In case of a road accident, the owner of the vehicle is held

responsible. He may not be driving himself or even he may not be present
in the car at that time of the accident. But the law holds the owner also
responsible. Similarly, if there be any accident on the work site and if
someone is injured or killed, it becomes a Police Case. As per the law, not
only the contractor but also the owner of the property and the architect are
arrested for an inquiry. It is not only injury to a person or loss of life, but
damage or loss to the property of others become a matter of liability and
have to be compensated. In order to protect the owner from a legal hustle;
this clause is included in the contract. As per this clause, the contractor
indemnifies the owner against any liability, loss, claim or legal proceedings
whatsoever arising under any law in respect of a personal injury to or a
death of any person on the work site; unless due to the act of neglect of the
owner or of any person for whom the owner is responsible.
Insurance against Injury to Persons or Property
This clause requires the contractor to take necessary insurance policy
to protect everyone on the site against an injury and damage to any
property. The contractor shall in turn make it necessary to the subcontractors to take a similar insurance to cover their workers.
Insurance of the Works against Fire etc
Your attention is drawn to the footnote on the page of the General
conditions of contract. This Clause is divided into three parts. 1) Clause A
and B is applicable to the new building under the construction where the
contractor is required to take the policy. Clause 2) A and B is applicable to
the erection of a new building if the owner is to take a policy. And 3) A, B up
to B (iii) is applicable to the alterations of or an extension to the existing
building.
Determination by the Owner
A good form of an Agreement or a Contract (includes partnership in
business etc) shall have provision and procedure laid down to break the
contract. This contract document also lays down a definite procedure for
both the parties to contract, to break the contract under certain situation.
Determination by the Contractor
This clause is one more evidence to prove that this is a balanced
document. It gives the owner right to break the contract under certain
conditions. Similarly, it provides an authority to the contractor to get away
from the bonds of this contract under a particular situation.
Co-ordination of Work
This clause requires the contractor to hold the meetings on a site
from time to time with his sub-contractors, persons, agencies on the
separate contracts and with the Architect. A good contractor to manage his
work properly shall hold such meetings on his own without you asking for it.
But in a way, this clause authorizes an Architect to ask the contractor to
call all the sub-contractors and the agencies to be present on a site on the
date and time of the site visit of the Architect for a meeting with the
Architect. The time of periodical site visits of the Architect (or his

representative or a project architect etc) shall be prefixed and always

known to the contractor; so that it shall be the responsibility of the
contractor to present everyone of them on the site including contractors
Site-Engineer. The clerk of works is supposed to be on the site and more
particularly at the time of the visit of the Architect. In this reference, the
word Architect means the Architect himself or his representative who is
looking after the project called a project Architect or a Structural Engineer
Consultant, working for the Architect.
Labour
These contract conditions prevent an employment of a child labour
below 14 years of age. When a female labour is engaged, the contractor
shall make a necessary provision for safeguarding the small children.
Protection of Trees and Shrubs
An Architect as a tree lover shall implement this clause to protect
existing or newly planted trees and shrubs on the site.
Excepted Matters
It would be an endless arguments and discussions if all the aspects of
the work are kept open for an argument. Hence, this clause.
As per this clause, in certain matters, decision, opinion, direction of
the Architect shall be final conclusive and binding on both the parties to
this contract.
Arbitrator
Any dispute in our civilized society can be or shall be referred to a
Court of Law. But to seek a justice from the court of law is a lengthy process
and can be delayed by either of the parties. Justice delayed is justice
denied. Therefore, for the speedy settlement of matters, the process of
Arbitration is built in the contract conditions.
Protection and Cleaning
This clause requires the contractor to protect and prevent the work
from the damage by providing a temporary covering, a boxing or other
construction as required, during the progress of work till handing over
building to the owner.
Tolerance
The dimensions called for on the drawings shall be observed properly
in the work carried out on the site as well as in the fabrication of elements.
The contractor shall exercise every care to ensure that all the structural
members are sufficiently in plumb and true to the dimensions called for on
the drawings. In case of a separate contract, the contractor whose work
does not confirm to the dimensions called for shall be liable for all the
expenses, which may incur for a rectification or a replacement as required
by the Architect. Architects decision in this respect shall be final and
binding on the parties concerned.
ARBITRATION
Arbitrator

Explanation: Any dispute in our civilized society can be or shall be

referred to a Court of Law. But to seek a justice from the court of law is a
lengthy process and can be delayed by either of the parties. Justice
delayed is justice denied. Therefore, for the speedy settlement of matters,
the process of Arbitration is built in the contract conditions. as per this
clause
1. Any or all disputes and difference arising out of or in connection with
the contract, during the progress of work or after the completion,
before or after the determination, the abandonment or the breach of
contract shall be refereed to and settled by the ARCHITECT of the
contract.
2. In case of the expected matters, the decision of the Architect is final
and binding on both the parties and there shall be no ARBITRATION of
these matters.
3. In case, if either of the parties to the contract be dissatisfied with the
decision of the Architect in matters other than the expected
matters, shall give within 28 days after receiving such a decision, a
Notice to the other party through the Architect, regarding his desire
to go in for Arbitration.

Procedure to be followed:A) Single Arbitrator or Sole Arbitrator

If both the parties agree or concur to the selection of an Architect
who is a follow member of the Indian Institute of Architects; should
approach him and appoint him as the arbitrator, to study and settle the
disputed matter. Both the parties shall present their case before the Single
Arbitrator, personally or through an Attorney, on hearing both the parties
and studying the papers etc. The Arbitrator shall within a reasonable time,
give his Award, i.e. the decision, which shall be final and binding on both
the parties. The Arbitrator shall give the directions in this Award regarding
the cost and the incidental charges of an Arbitration to be borne by whom
etc. This submission to an Arbitrator shall be deemed to be a submission to
an Arbitration within the meaning of the Indian Arbitration Act, 1899 or any
modification thereof, for the time begin in force.
B) Joint Arbitration
In case if there is no agreement between the two parties upon the
appointment of a single Arbitrator, then each of the parties shall appoint his
own Arbitrator who shall be a fellow member of the Indian Institute of
Architects, called joint Arbitrators.
Umpire
The Joint Arbitrators before proceeding with their work shall mutually
agree upon a third person who shall be an Architect and a fellow member of
the Indian Institute of Architects. The Joint Arbitrators shall approach such a
third Architect and request him jointly to be their umpire, in case if it is
needed. Upon his acceptance to work as an umpire, the Joint Arbitrators
shall proceed with their work.
The Joint Arbitrators shall hear the case jointly, study the papers etc.
and try to come to an agreement about their AWARD. If the Joint Arbitrators

agree upon their decision on all the points of dispute, then they can give
their AWARD. If the Joint Arbitrators defer in their decisions of the points of
dispute, then the Joint Arbitrators shall refer the matter of the Umpire. The
Umpires decision shall be final and binding on both the parties. One should
note here and appreciate the importance of appointing an umpire before
commencing the hearing of the case by the joint Arbitrators. The selection
and appointment of the umpire shall be done with unbiased and impartial
mind. Therefore, it shall b done before the start of a hearing.
Questions
Two Marks:
1. Define a contract?
2. Name two conditions of void contract?
3. What is meant by arbitration?
4. What is a lump sum contract? Mention any two advantages.
5. What are the elements of contract?
6. What is Indian Stamp Act?
7. What are the contents of contract document?
8. What are the types of tender applicable to contract?
9. Explain interim award?
10. Explain the three types of Arbitration?
11. Write short notes on arbitrator.
12. What is retention amount?
13. Why is necessary for a contractor to visit the construction site prior to
tendering?
14. What is the role of a clerk of works in a construction site?
15. Explain the importance of Articles of Agreement in a contract
document.
16. Differentiate between arbitrator and umpire.
17. What do you understand by the term award?
18. A tenderer is required to visit the construction site before offering his
tender. why?
19. What is your understanding of the term Retention Amount?
20. Explain the importance of certificate in a construction process.
21. What are liquidated damages?
22. What is the meaning of the term determination of contract?
23. Why is the necessary for a tenderer to inspect the construction site
before tendering?
24. Who is clerk of works? What are his duties?
25. What is the meaning of the term Award in an arbitration process?
26. What is the purpose of certificates in a construction agreement?
27. Who is resident engineer?
Sixteen Marks:
1. Explain briefly the procedure you would follow in the selection of a
contractor for a building project
2. What are the qualifications of an arbitrator? What are the advantages of
settling dispute through arbitration?
3. Explain the contents of Articles of Agreement.
4. Enumerate the conditions of a valid contract.
5. Explain in detail a contract document?

6. Describe in detail the factor to be considered while calling a Lump sum

contract?
7. Describe in detail the elements of contract?
8. Establish the procedure for opening and acceptance of tenders.
Compare and contrast Item Rate tender with Lump Sum tender
establishing where each is recommended?
9. Explain contract and when does it become void? Establish the procedure
and precautions to be adopted to avoid variation and extras in
contractors bill.
10. Explain articles of agreement and its importance in the actualization
of a contract Explain Breach of contract and termination of contract by
the employer.
11. Elucidate the purpose and advantages of Arbitration. Compare and
contrast Arbitration Agreement Order of Reference?
12. Elucidate on the appointment and powers of an Arbitrator. Compare
and contrast Arbitration and Valuation. What is Award?
13. Discuss in detail the conditions for termination of a contractor as per
the contract.
14. Explain the importance of Articles of Agreement in a contract
agreement.
15. Elaborate on the conditions and duties pertaining to an architect in a
contract.
16. What is the significance of an arbitrator? How is an arbitrator
selected?
17. What are the types of arbitration? Discuss in detail the situation
under which the varying types can be implemented.
18. Difference between Item rate tender and Lump sum tender. (8)
19. Retention amount is Security advance paid in installments. you
agree? Give reasons for you reply. (8)
20. What is the role of an architect in the certification process? (8)
21. Explain the procedure involved in giving an interim certificate. (8)
22. What are the precautions an architect should take while issuing a
final certificate? (8)
23. What is defects liability period in a contract? (8)
24. Explain the circumstances under which a contract can be terminated
by a contractor and an employer. (8)
25. Differentiate between assigning and subletting as mentioned in the
general conditions of contract. (8)
26. Between whom can disputes arise in a building contract? How will the
arbitration process help in settling the disputes? (8)
27. Explain the provisions incorporated in a contract document with
regard to arbitration.
28. Which are the matters that are not open for arbitration? Why are they
beyond the purview of arbitration? (8)
29. Under that situations an umpire will be appointed in arbitration
process. What is his role?
30. What are the advantages and disadvantages of Item rate and labor
tender? (10)
31. Explain briefly articles of agreement in a contract document.
32. Elaborate on the conditions pertaining to architects on contract. And
how he will execute the contractors bill certification.

33. Define the role and importance of arbitration. (8)

34. Explain the different types of the arbitration. (8)
35. Explain the difference between the Interim Bill and Final Bill raised by
the contractor with particular reference to architects responsibility. (8)
36. Explain the importance of certificates issued by an architect. (8)
37. As per the construction agreement, a contractor has certain
obligations in facilitating supervision of construction by an architect.
Elaborate on the same. (8)
38. Explain the role of Engineer in-charge in a construction site.
39. Bill of quantities plays an important role in a Item Rate Tender. Give
reasons. (8)
40. Explain in detail the contents of Appendix in construction agreement
and briefly touch on the importance of at least 4 item of the appendix.
41. Differentiate between mobilization advance and security deposit.
42. What are the obligation of contractors with regard to administration
and execution of work as per the construction agreement?
43. Why should there be a termination clause in any agreement. what
circumstances can a contract be terminated by an employ.
44. What are the various methods by which a dispute between contractor
and an employer be resolved?
45. What are the advantages of arbitration when compared to a process.
46. Differentiate between sole arbitrator and joint arbitrators. what
circumstances will an umpire be appointed.
47. What is an award and how is it binding on the parties involved
arbitration.
48. Bring out the differences between item-rate, lump sum an demolition
tender.(8)
49. Elaborate on the importance of Bills of Quantities in an Item-rate
tender. (8)
50. As per the contract agreement contractors are obliged towards
facilitating architects supervision. Elaborate. (8)
51. What are the provisions in the contract agreement, for a contract to
terminate the agreement? (8)
52. What is the duty of an architect when a contractor raises a Bill? (8)
53. What are certificate? In issuing a final certificate, an architect has to
exercise certain precautions. What are they? (8)
54. What are the advantages of settling a dispute through arbitration
process? (8)
55. They are certain Excepted matters beyond arbitration. What are
they? (8)
56. When joint arbitrators have disagreement over solving a dispute.
what happens? (8)
57. What is an arbitration agreement? (8)
58. Explain the role of umpire in an arbitration process.
******

UNIT -III
NEW TRENDS IN PROJECT
FORMULATION AND EXECUTION

Turn key offer (Expression of interest, Request for Proposal

Document)
A turnkey or a turnkey project (also spelled turn-key) is a type of
project that is constructed so that it could be sold to any buyer as a
completed product. This is contrasted with build to order, where the
constructor builds an item to the buyer's exact specifications, or when an
incomplete product is sold with the assumption that the buyer would
complete it.
Turnkey refers to something that is ready for immediate use,
generally used in the sale or supply of goods or services. Turnkey is often
used to describe a home built on the developer's land with the developer's
financing ready for the customer to move in. If a contractor builds a
"turnkey home" they frame the structure and finish the interior. Everything
is completed down to the cabinets and carpet. "Turnkey" is commonly used
in the construction industry, for instance, in which it refers to the bundling
of materials and labor by sub-contractors. 'Turnkey' is also commonly used
in motorsports to describe a car being sold with drive train (engine,
transmission, etc.) to contrast with a vehicle sold without one so that other
components may be re-used.
Similarly, this term may be used to advertise the sale of an
established business, including all the equipment necessary to run it, or by
a business-to-business supplier providing complete packages for business
start-up. An example would be the creation of a "turnkey hospital" which
would be building a complete medical center with installed medical
equipment.
(Expression of interest, Request for Proposal Document,
Conditions for inviting turnkey offer, finalization of the
bidder). Same processes as followed in tender.
Current practices in Project execution:
1.
2.
3.
4.
5.
6.
7.

BOT (build-operate-transfer)
BOOT (build-own-operate-transfer)
BOO (build-own-operate)
BLT (build-lease-transfer)
DBFO (design-build-finance-operate)
DBOT (design-build-operate-transfer)
DCMF (design-construct-manage-finance)

1. Build operate and Transfer (BOT)

Buildoperatetransfer (BOT) or buildownoperatetransfer
(BOOT) is a form of project financing, wherein a private entity receives a
concession from the private or public sector to finance, design, construct,
and operate a facility stated in the concession contract. This enables the
project proponent to recover its investment, operating and maintenance
expenses in the project.
Due to the long-term nature of the arrangement, the fees are
usually raised during the concession period. The rate of increase is often

tied to a combination of internal and external variables, allowing the

proponent to reach a satisfactory internal rate of return for its
investment.
Introduction
In recent years, a growing trend emerged among governments in
many countries to solicit investments for public projects from the private
sector. The main reasons for this trend are a shortage of public funds and
hands off approach of government agencies. The Build Operate Transfer
approach (BOT) is an option for the government to outsource public
projects to the private sector. With BOT, the private sector designs,
finances, constructs and operates the facility and eventually, after a
specified concession period, the ownership is transferred to the
government. Therefore, BOT can be seen as a developing technique for
infrastructure projects by using private initiative and funding. Such
infrastructure projects include a wide array of public facilities with the
primary function to serve public needs, to provide social services and
promote economic activity in the private sector. The most common
examples are roads, bridges, water and sewer systems, airports, ports and
public buildings (Vaughan and Pollard, 1984).
In addition to government, the private sector may initiate BOT
projects when there are limited funds available and there are no enough
resources to execute successfully a required building project. Examples can
be seen in non-profit hospitals and educational institutions as well as
manufacturing facilities. However, none of those cases are included in this
book, which focuses on government related projects. Several project
delivery schemes have developed in recent years (Diaz, 1994). The
traditional design-bid-award was enhanced by the introduction of the
project manager as a consultant to the owner, where project manager
advises the owner in formulating a building strategy and supervises the
construction on the owners behalf. As a consulting service, the project
manager works in parallel with the architect for a flat rate fee, with no
fiduciary or construction risk. Design- build is a one-stop shop for design
and construction. Architects and contractors work under one contract,
where total responsibility for all stages of the project is placed with both
parties. Design-build projects are often of limited sophistication, but hold
considerable promise for the future as a partnership process of project
delivery. Bridging allows the separation of schematic design from design
development, with the latter grouped together with the general contractor.
Such a project delivery scheme allows THE BUILD OPERATE TRANSFER
APPROACH 5 for more sophistication and for transfer of design across
geographical and economic boundaries.
With turnkey contracts, the owner buys a package of site, design and
finished building, while the developer secures financing, manages the
project flow and coordinates the architect and the contractor. Such
contracts are usually limited in complexity1. BOT is closer to total product
delivery where in addition to financing and development, the supplier is
also responsible for the operation of the facility.

BOT in construction
Build Operate Transfer is a major startup business venture where
private organizations undertake development and operation of a facility
normally done by the government. The termination of the private sector
involvement occurs at the return of the ownership of the facility to the
government after a fixed concession period, usually 25 to 40 years (Tiong,
1990). Among the various definitions of BOT, the following definition is
adopted in this book that constitutes the premise for conducting this
research. In the BOT approach, a private party or concessionaire retains a
concession for a fixed period from a public party, called principal (client),
for the development and operation of a public facility. The development
consists of the financing, design and construction of the facility, managing
and maintaining the facility adequately, and making it sufficiently
profitable. The concessionaire secures return of investment by operating
the facility and, during the concession period, the concessionaire acts as
owner. At the end of the concession period, the concessionaire transfers
the ownership of the facility free of liens to the principal at no cost3. A key
characteristic of BOT is private financing. In BOT, the government
subcontracts the entire development process, including the associated
risks, to the private entity. One of these risks is financing, which must be
obtained by the concessionaire, who is ultimately responsible for all
aspects of the project.
A prerequisite for private financing is a need for the facility to be
developed; for example, a highway extension due to increasing traffic jams,
more bed space in detention and correctional facilities due to an increase
in crime and the number of incarcerated individuals, a tunnel or bridge to
solve traffic problems and facilitate accessibility, or a sewage system or
power generation to support the growth in population and industry. If there
is no obvious requirement for the facility, private parties will refuse to
participate and provide financial support. Only after market analysis
justifies a need will private parties be willing to financially participate as
well as become involved in developing the facility. BOT is just one of the
many different project delivery schemes within the context of privatization
or public-private-partnerships. The two other schemes that appear most
similar to BOT are Build Own Operate (BOO) and Build Transfer Operate
(BTO). In all three cases, the private party retains revenues from operating
the facility.
In BTO, the private party transfers the ownership of the facility
directly after the delivery and operates the facility on behalf of the
principal. In BOO, the private party retains ownership of the facility, makes
returns on investment by operating it for its useful life, and may sell it at
any point at market value. Besides the three most common approaches,
BOT, BOO and BTO, other variations can also occur (Fig. 0.3). All differ from
each other in the way the level of risk is divided between the private and
public parties. Each form is a kind of a public-private-partnership but all are
unique in allocating risks to the individual parties.
MAJOR PARTICIPANTS IN BOT PROJECTS
Five major participants are identified in every BOT project and Fig.
0.4 shows the typical structure. Very simply, the principal grants the

concession to the concessionaire. The concessionaire, usually a consortium

of companies, undertakes the financing and development of the project.
Financing is obtained from sponsors and lenders. The contractor builds the
facility and the operator runs the facility.

Principal
In a BOT project, the principal is usually a government agency, a local
or federal government body that recognizes the need for a public facility
but is unable to financially support the project. The government agency is
thus forced to look for alternative options.
Concessionaire
After the identification of the need for the facility, the government,
following a due process, will grant a concession to the concessionaire. The
concessionaire is usually a consortium and takes the responsibility of
developing (designing, financing and constructing), maintaining and
operating the facility, on behalf of the principal. The concessionaire is the
owner of the facility during the concession period and realizes profits on
the initial investment through the usage of the facility
Investors
Financing is supplied by the private sector and the investors include
both shareholders and lenders. The shareholders invest money in

exchange for equity, and lenders support the concessionaire during

negotiations with the principal with promises for loans to be available
during the development of the project. Lenders may include banks,
insurance companies
and bond holders.
Contractor
The concessionaire commissions a contractor with the construction of
the facility. In most cases, the contractor is part of the concessionaires
consortium and involvement is favored by all concerned parties. During the
early stages of the process the contractors involvement assures the
consortium of the most effective and efficient design and execution of the
project. Ultimately, the contractor is responsible for the construction of the
project and for hiring subcontractors, suppliers and consultants.
Operator
The operator is also in the concessionaires service and manages the
operational stage of the facility. Similar to the contractor, the operator is
usually part of the concessionaires consortium, because of the critical role
in the revenue stream. In addition, the importance of operating knowledge
for programming, financing, design and construction is required. Often the
operator is supported by a government agency or in some cases, is the
agency. In the Wijker tunnel case, the facility is entirely operated by the
government maintenance department for bridges, dikes and roads, and in
STAGES OF BOT PROJECTS
Preliminary study
The preliminary study usually takes place prior to the involvement of
the concessionaire. This stage is executed by, or on behalf of, the principal.
Feasibility studies are necessary to prove the forecasted success of the
project, in order to attract private funding. Alternatively, a private party
may identify a need and initiate the BOT project and in such a case, the
preliminary study is conducted by the private entity with limited
government involvement.
Selection process
The selection process depends on who initiates the project. In a public
selection process where the initiative is coming from the public sector
(government), a request for qualification is distributed. After receiving
applications, the government selects a few consortia to submit proposals
(request for proposals) and from these a concessionaire is chosen. During
this process, the consortia will group interested parties as required for the
efficient and adequate execution of the project. Alternatively, in a
speculative selection process, the private sector initiates the project and
contacts the appropriate government agency for approval. The project is
granted after proper negotiations.
Project implementation
After the selection stage and the foundation of the concessionaire,
the proposal is finalized. Together with all the involved parties, the
concessionaire develops a detailed program and preliminary design, and

applies for permits. This process can be shortened if a government agency

is actively participating. Once permits are issued, the final concession
agreement is signed. During the project implementation stage, in addition
to the interests of the involved parties, the interests of the external parties
also require attention. The influential power of politics, the opposition, and
environmental agencies are significant factors and, if not taken into
account, may hinder or even dissolve the project.
Construction
Once the necessary permits are obtained, construction begins. Often
BOT projects are fast track projects where the design is not complete when
construction starts. This is feasible because of congruent financial interests
within the members of the consortium and the pressing need to complete
construction and start collecting revenues. Less controversial designs allow
a quicker construction period with fewer uncertainties.
Operation
During the operation stage, the facility is operated and maintained by
the operator who is paid by the concessionaire. The concessionaire, as the
owner of the facility during the operation period, is obligated to operate the
facility in a manner that adequately services the public user. The
concessionaire is also responsible for maintaining the facility in working
condition. Both the concession and operation agreements specify the
condition of the facility at the time of transfer to the principal.
Transfer
The facility is transferred to the principal, usually at no cost (Fig.
0.10). Transfer time is determined in the concession agreement. Should the
principal choose to take over the facility earlier than the agreed concession
period; the concessionaire will be financially compensated for the
investment. After transfer, the principal is the sole owner of the facility and
can choose to operate and maintain the facility directly or hire an
independent operator. Although a transfer has not taken place in any of the
cases in this book, it can be expected that the principal will continue with
the same operator, as in the concession period, due to history of
involvement and experience with the facility. If the principal is the
government, it may choose after transfer not to charge the final users
anymore.
In essence, the facility at that time will have become public, and its
maintenance and operation can be funded by indirect taxation. Another
issue to be considered is to what extend the principal wants to receive the
facility. After a typical concession period of 30 years, the facility may have
become obsolete and could need major rehabilitation or require more
resources to operate than a new facility. In prisons for example, the facility
may be inadequate, or in a power plant the method of generating energy
may be inefficient. Active participation of the principal during the
concession period may keep a facility up to standards or, at transfer, a BOT
project could in fact lead to a new BOT project.
Due to the external and internal particularities of every BOT project,

the actual organization and process may be different to the presentation in

the previous paragraphs. The starting and completion period of each stage
in a BOT project can change due to a variety of factors, both external and
internal to the project. Among them are the complexity of the development
process, government regulations, political influences, concerns of
environmental groups, and neighborhood pressures. Such effects have an
m a j o r influence on the progress of a project, likely to stall or change
theoretical models. Thus, the development of a precise and detailed
framework applicable for every BOT project is not possible and this must be
taken into consideration for each case study in this book that presents the
framework of a particular project and its external and internal conditions.
2. Build Lease operate and Transfer (BLOT)
BLOT (build, lease, operate, transfer) is a public-private partnership
(PPP) project model in which a private organization designs, finances and
builds a facility on leased public land. The private organization operates the
facility for the duration of the lease and then transfers ownership to the
public organization.
The BLOT model is one of several related PPP project types including
BOOT (build, own, operate and transfer) and BOO projects (build, own,
operate).
BUILD, designed and tailor-made as per building faade.
OPERATE, install, commission and operate.
LEASE, on monthly rentals for minimum five years contract.
TRANSFER, thereafter transferred to you at an agreed value.
3. BOO
BOO (build, own, operate) is a public-private partnership (PPP)
project model in which a private organization builds, owns and operates
some facility or structure with some degree of encouragement from the
government. Although the government doesn't provide direct funding in
this model, it may offer other financial incentives such as tax-exempt
status. The developer owns and operates the facility independently.
The BOO model is one of several related PPP project types
including BOOT (build, own, operate and transfer), BLT (build, lease,
transfer) and BLOT (build, lease, operate, transfer).
4.BOOT (build-own-operate-transfer)
A BOOT structure differs from BOT in that the private entity owns the
works. During the concession period the private company owns and
operates the facility with the prime goal to recover the costs of investment
and maintenance while trying to achieve higher margin on project. The
specific characteristics of BOOT make it suitable for infrastructure projects
like highways, roads mass transit, railway transport and power generation
and as such they have political importance for the social welfare but are
not attractive for other types of private investments. BOOT & BOT are
methods which find very extensive application in countries which desire
ownership transfer and operations including. Some advantages of BOOT
projects are:
Encourage private investment

Inject new foreign capital to the country

Transfer of technology and know-how
Completing project within time frame and planned budget
Providing additional financial source for other priority projects
Releasing the burden on public budget for infrastructure
development

5.BLT (build-lease-transfer)
Under BLT a private entity builds a complete project and leases it to
the government. On this way the control over the project is transferred
from the project owner to a lessee. In other words the ownership remains
by the shareholders but operation purposes are leased. After the expiry of
the leasing the ownership of the asset and the operational responsibility
are transferred to the government at a previously agreed price. For
foreign investors taking into account the country risk BLT provides good
conditions because the project company maintains the property rights
while avoiding operational risk.
6.DBFO (design-build-finance-operate)
Designbuildfinanceoperate are a project delivery method very
similar to BOOT except that there is no actual ownership transfer.
Moreover, the contractor assumes the risk of financing till the end of the
contract period. The owner then assumes the responsibility for
maintenance and operation. Some disadvantages of DCMF are the difficulty
with long term relationships and the threat of possible future political
changes which may not agree with prior commitments. This model is
extensively used in specific infrastructure projects such as toll roads. The
private construction company is responsible for the design and
construction of a piece of infrastructure for the government, which is the
true owner. Moreover the private entity has the responsibility to raise
finance during the construction and the exploitation period. The cash flows
serve to repay the investment and reward its shareholders. They end up in
form of periodical payment to the government for the use of the
infrastructure. The government has the advantage that it remains the
owner of the facility and at the same time avoids direct payment from the
users. Additionally, the government succeeds to avoid getting into debt
and to spread out the cost for the road over the years of exploitation.
7.DCMF (designconstructmanagefinance)
Some examples for the DCMF model are the prisons or the public
hospitals. A private entity is built to design, construct, manage, and
finance a facility, based on the specifications of the government. Project
cash flows result from the governments payment for the rent of the
facility. In the case of the hospitals, the government has the ownership
over the facility and has the price and quality control. The same financial
model could be applied on other projects such as prisons. Therefore this
model could be interpreted as a mean to avoid new indebtedness of
public finance.

Questions
Two Marks:
1. What are the advantages of a turnkey contract?
2. What are the various current practices in Project execution?
Sixteen Marks:
1. Explain BOLT form of project financing with a suitable case study.
2. Explain the conditions for inviting turnkey offer and the process involved
in the finalization of the bidder.
..

UNIT - IV
IMPLICATIONS OF GLOBALISATION IN
ARCHITECTURAL PRACTICE
Globalization
Globalization (or globalization) is the process of international
integration arising from the interchange of world views, products, ideas,
and other aspects of culture.
Advances in transportation and
telecommunications infrastructure, including the rise of the telegraph and
its posterity the Internet, are major factors in globalization, generating
further interdependence of economic and cultural activities.
The term globalization has been in increasing use since the mid1980s and especially since the mid-1990s. [6] in 2000; the International
Monetary Fund (IMF) identified four basic aspects of globalization: trade
and transactions, capital and investment movements, migration and
movement of people and the dissemination of knowledge. Further,
environmental challenges such as climate change, cross-boundary water,
air pollution, and over-fishing of the ocean are linked with globalization.

Globalizing processes affect and are affected by business and work

organization, economics, socio- cultural resources, and the natural
environment.
In economical aspect
This is the integration of economies, industries, markets, cultures
and policy-making around the world.
Globalization describes a process by which national and regional
economies, societies, and cultures have become integrated through the
global network of trade, communication, immigration and transportation.
In the more recent past, globalization was often primarily focused on
the economic side of the world, such as trade, foreign direct investment
and international capital flows, more recently the term has been expanded
to include a broader range of areas and activities such as culture, media,
technology, socio-cultural, political, and even biological factors, e.g.
climate change.
Example
Global trade has grown enormously since WWII; international trade
in manufactured goods alone has grown an estimated 100 times from $95
billion to $12 trillion in the 50 years since 1955. However, globalization is
much more than just trade.
In the last twenty years the breadth and depth of links between
nations and between regions has grown enormously. Communications
costs have declined dramatically allowing easy daily contact via the web
and telephone, enabling the outsourcing of IT and other Services, to India
for example, and the rise in global work teams.
Other critical links are immigration and transportation, particularly
airlines. The International Organization for Migration estimates that there
are two hundred million migrants around the world today, they have largely
immigrated from the emerging to the developed countries, particularly to
the U.S., Canada, Australia, the U.K. and Continental Europe. Though there
are tensions at times in Europe and elsewhere this immigration has
changed the face of these regions and increased the personal links across
borders very considerably.
Finally the transportation of people and goods has increased very
substantially in the last few decades with great growth on the number of
flights across borders. During the 80s and 90s growth rates in the number
of airlines seats offered of 5% a year were not uncommon, in 2010 there
are over 2.3 million flights per month. With this great growth in flights, this
has allowed stronger business and personal links. Today we see a world
much more interlinked than in the past.
Advantages of Globalization
Globalization has several advantages on the economic, cultural,
technological, social, and other fronts. Globalization means increasing
the interdependence, connectivity, and integration on a global level,
with respect to the social, cultural, political, technological, economic,

and ecological levels. It is the collaboration of countries to provide a

boost to trade practices, and also to reduce cultural differences. Its
various advantages can be felt all across the globe by one and all, and
also to a very large extent in our daily lives.
Obviously, now we understand that globalization is here to stay. Here
are the most common and important advantages that globalization, over
time, has brought about for mankind. These have been listed in no
particular order, and are all vital in their own way.
Peaceful Relations
Most of the countries have resorted to trade relations with each
other in order to boost their economy, leaving behind any bitter past
experiences if any. Nations now try to raise capital and fortify their stand
in international trade, rather than hosting a war. Thus, globalization has
induced international peace and security in a big way.
Free Trade
Free trade is a policy in which a country does not levy taxes, duties,
subsidies or quota on the import/export of goods or services from other
countries. There are countries which have resolved to free trade in specific
regions. This allows consumers to buy goods and services, comparatively
at a lower cost.
Global Connectivity
Globalization has promoted international connectivity. With the use
of the Internet, the world has definitely become a smaller place. There has
been exchange of thoughts and ideas which has morally boosted and
interlinked the mindset of people all round the world.
New Markets
The opportunities for new markets have increased dramatically.
Numerous companies have started investing in different countries and
luring customers for their brands. These ever-expanding markets have
helped countries to raise capital in terms of foreign domestic investments,
thus improving the economy of the country.
Employment Opportunities
One of the most advantageous factors of globalization is that it
fosters the generation of employment. This happens due to the emergence
of new companies and new markets, where lots of skilled and unskilled
labor is required. Immigration between countries also increases, providing
better opportunities for people all round the world. By providing
employment, globalization helps in increasing the standard of living of the
people, and also reduces poverty.
Quality Products
The competition among different companies finds place at an
international level. It becomes important for the companies to focus on

quality goods and services, in order to have a strong foothold in the

market. The consumer is benefited in the process, and gets quality
products at cheaper rates. He/she also gets the opportunity to select his
goods from a large variety available in the market.
Environmental Protection
Mutual trade carried out by countries has brought about an
understanding for the protection of the environment from which they
benefit so much. It has been accepted by most countries that action
needs to be taken in saving natural resources and wildlife, without
thinking about the boundaries that separate them. Global environmental
problems like cross-boundary pollution, over-fishing in the oceans, climate
change, etc., are solved by discussions and conventions.
Good for Developing Nations
It is claimed that globalization increases the economic prosperity of
developing nations. Developed countries invest in such countries with an
aim of capturing new markets, which helps them improve their
infrastructure and technologies to international levels. A lot of capital is
invested in such projects, which in turn proves fruitful to the economy of
the developing nation as well.
Equality for All
Globalization has helped in creating international criminal courts, and
international justice movements are also launched to provide justice to
people at a global level. Disputes are solved through global standards such
as patents, copyright laws, and world trade agreements. Thus, it has
ensured that people do not get discriminated with regard to country, caste,
creed or sex.
Ease of Transportation
With the advent of globalization, there has been an immense
increase in the transportation of goods and services worldwide. Things
which took weeks for conveyance can now easily be availed within a
couple of days. Due to the development of containerization for ocean
shipping, transportation costs are reduced to a great extent, lowering the
cost of products in world markets.
Travel and Tourism
Globalization has promoted tourism to great heights. There are many
places that have tourism as their main source of capital generation.
International trade among different countries also helps in increasing the
number of tourists that visit different places around the world.
Unity in Diversity
Globalization has helped in bringing about integrity and social
understanding everywhere. The dream for a global village becomes
realistic after looking at the impact of globalization. It has helped in
removing some barriers that had kept the world divided on various
grounds. There has been propagation of democratic ideas among countries.

Cross-cultural contacts grow and cultural diffusion takes place, which helps
in minimizing differences, and promotes companionship.
External Borrowing
It has often been seen that a poor country is unable to provide
adequate financing to its companies, which proves to an obstacle in the
development of the country on the whole. With the help of globalization,
there is opportunity for corporate, national, and sub-national borrowers to
have better access to external finance, with facilities such as external
commercial borrowing and syndicated loans.
It is a common belief that globalization plays a role just at
international levels of trade and commerce, but the fact is that it has
played an important role in making our lives much more comfortable too.
The phones, apparels, gadgets or accessories that we use in our day-to-day
life are being available to us through globalization. Knowingly or
unknowingly, we are all under the impact of globalization, and more
importantly it has helped in bringing international peace and justice to
mankind.
Disadvantages of Globalization:
1. Developed countries can stifle development of undeveloped and
under-developed
countries.
2. Economic depression in one country can trigger adverse reaction
across the globe.
3. It can increase spread of communicable diseases.
4. Companies face much greater competition. This can put smaller
companies, at a
disadvantage as they do not have resources
to compete at global scale.
5. Globalization can ruin the environment. Moving things from one
area to another wastes oil, etc.
6. Globalization can ruin local economies. There is a movement that
wants to buy local
- especially organic foods.
7. Globalization can lead to hyper-specialization, which can be good, but
also negative.
There is something great about being a generalist. Also what if
something goes wrong. To know things generally give an
incredible perspective that specialists do not have.
8. Globalization can be driven by people with "know how" and power
and they can
systematically fleece the world.
What is the WTO?
The World Trade Organization (WTO) is the only global international
organization dealing with the rules of trade between nations. At its heart
are the WTO agreements, negotiated and signed by the bulk of the worlds
trading nations and ratified in their parliaments. The goal is to help
producers of goods and services, exporters, and importers conduct their
business.

Goal
There are a number of ways of looking at the World Trade
Organization. It is an organization for trade opening. It is a forum for
governments to negotiate trade agreements. It is a place for them to settle
trade disputes. It operates a system of trade rules. Essentially, the WTO is
a place where member governments try to sort out the trade problems
they face with each other.
Functions
Among the various functions of the WTO, these are regarded by
analysts as the most important:
(i)
It oversees the implementation, administration and
operation of the covered agreements.
It provides a forum for negotiations and for settling disputes.
(ii)
Additionally, it is the WTO's duty to review and propagate the
national trade policies, and to ensure the coherence and transparency of
trade policies through surveillance in global economic policy-making.
Another priority of the WTO is the assistance of developing, leastdeveloped and low-income countries in transition to adjust to WTO rules
and disciplines through technical cooperation and training.
The WTO is also a center of economic research and analysis: regular
assessments of the global trade picture in its annual publications and
research reports on specific topics are produced by the organization.
Finally, the WTO cooperates closely with the two other components of the
Bretton Woods system, the IMF and the World Bank.
Principles of the trading system
The WTO establishes a framework for trade policies; it does not
define or specify outcomes. That is, it is concerned with setting the rules of
the trade policy games. Five principles are of particular importance in
understanding both the pre-1994 GATT and the
WTO:
Non-discrimination. It has two major components: the most favored
nation (MFN) rule, and the national treatment policy. Both are embedded in
the main WTO rules on goods, services, and intellectual property, but their
precise scope and nature differ across these areas. The MFN rule requires
that a WTO member must apply the same conditions on all trade with other
WTO members, i.e. a WTO member has to grant the most favorable
conditions under which it allows trade in a certain product type to all other
WTO members. "Grant someone a special favor and you have to do the
same for all other WTO members." National treatment means that imported
goods should be treated no less favorably than domestically produced
goods (at least after the foreign goods have entered the market) and was
introduced to tackle non-tariff barriers to trade (e.g. technical standards,
security standards et al. discriminating against imported goods).
Reciprocity. It reflects both a desire to limit the scope of free-riding that
may arise because of the MFN rule, and a desire to obtain better access to
foreign markets. A related point is that for a nation to negotiate, it is

necessary that the gain from doing so be greater than the gain available
from unilateral liberalization; reciprocal concessions intend to ensure that
such gains will materialize.
Binding and enforceable commitments. The tariff commitments
made by WTO members in a multilateral trade negotiation and on
accession are enumerated in a schedule (list) of concessions. These
schedules establish "ceiling bindings": a country can change its bindings,
but only after negotiating with its trading partners, which could mean
compensating them for loss of trade. If satisfaction is not obtained, the
complaining country may invoke the WTO dispute settlement
procedures.
Transparency. The WTO members are required to publish their trade
regulations, to maintain institutions allowing for the review of
administrative decisions affecting trade, to respond to requests for
information by other members, and to notify changes in trade policies to
the WTO. These internal transparency requirements are supplemented and
facilitated by periodic country- specific reports (trade policy reviews)
through the Trade Policy Review Mechanism (TPRM). The WTO system tries
also to improve predictability and stability, discouraging the use of quotas
and other measures used to set limits on quantities of imports.
Safety valves. In specific circumstances, governments are able to restrict
trade. The WTO's agreements permit members to take measures to protect
not only the environment but also public health, animal health and plant
health.
There are three types of provision in this direction:
articles allowing for the use of trade measures to attain noneconomic objectives;
protection measures as a means of disguising protectionist policies.
Articles aimed at ensuring "fair competition"; members must not use
environmental
Provisions permitting intervention in trade for economic reasons.
Exceptions to the MFN principle also allow for preferential treatment
of developing countries, regional free trade areas and customs
unions.
GAT
The General Agreement on Trade in Services (GATS) is a treaty
of the World Trade Organization (WTO) that entered into force in January
1995 as a result of the Uruguay Round negotiations. The treaty was
created to extend the multilateral trading system to service sector, in the
same way the General Agreement on Tariffs and Trade (GATT) provides
such a system for merchandise trade.
Services are covered by GATS?
GATS consider education as a tradable service. GATS covers 12
service sectors (Business; Communication; Construction and Engineering;
Distribution; Education; Environment; Financial; Health; Tourism and Travel;
Recreation, Cultural, and Sporting; Transport; "Other".). Two exceptions are
services in the exercise of governmental authority and air traffic rights

Laws are covered by GATS?

GATS apply to all measures affecting trade in services. GATS defines
measures as all laws, regulations and practices from national, regional or
local government or non-governmental bodies exercising powers
delegated to them by government that may affect trade.
How can services be traded?
GATS define 4 ways that all services can be traded based on modes
of supply:
1. Consumption abroad of service by consumers travelling to supplier
country (e.g. Students studying abroad);
2. Cross border supply of a service to consumer country without the
supplier (e.g. open and distance education);
3. Commercial presence of a supplier in consumer country
(e.g. offshore foreign universities); and
4. Presence of Natural Persons from supplying country in
consuming country (e.g. professors, researcher working
outside their home country).
Rules does GATS have?
GATS have two broad categories of rules. The first category is
general rules which apply, for the most part, to trade in all services. The
second category is rules applicable to national commitments in
specific service sectors.
Pre-requisites for Indian architects to work in other countries
The professional requirements for architects vary from place
to place, but usually consist of three elements: a university degree or
advanced education, a period of internship or training in an office, and
examination for registration with a jurisdiction.
Professionals engaged in the design and supervision of construction
projects prior to the late 19th century were not necessarily trained in a
separate architecture program in an academic setting. Instead, they
usually carried the title of Master Builder, or surveyor, after serving a
number of years as an apprentice (such as Sir Christopher Wren). The
formal study of architecture in academic
Institutions played a pivotal role in the development of the profession
as a whole, serving as a focal point for advances in architectural
technology and theory.
Professional requirements by country
Australia
In Australia, the title of architect is legally protected but architects
are registered through state boards. These boards are affiliated through
the Architects Accreditation Council of Australia (AACA). The AACA's
Architect Registration service also provides accreditation for schools and
assessments for architects with overseas qualifications for the purposes

of migration.
There are three key requirements for registration: a professional
degree from a school of architecture accredited by the AACA; at least
two years of practical experience, and; the completion of the
architectural practice examination.
Architects may also belong to the Australian Institute of Architects
(formerly the Royal Australian Institute of Architects) which is the
professional organization and members use the suffix AIA after their
name.
Most States have legislation which covers the use of the title
"architect" and makes it an offence for abusers of the title. As this can
vary, it is essential to check the relevant legislation applicable in each
State.
Canada
In Canada, architects are required to meet three common
requirements for registration: education, experience, and examination.
Educational requirements generally consist of an M.Arch. Degree and are
certified by the Canadian Architectural Certification Board (CACB). For
degreed candidates, the experience requirement is typically the Intern
Architect Program (IAP). The provincial associations of architects, by the
authority granted under their respective provincial Architects Act, require
that Interns gain a minimum of 5,600 hours of work experience. The
fundamental purpose of the pre-registration/licensing employment period
is to ensure that the Intern is provided with sufficient experience to meet
the standards of practical skill and level of competence required to engage
in the practice of architecture. This experience is diversified into four main
categories and 16 sub-categories, and must be completed working under
the direct supervision of a registered architect. At present, all jurisdictions
use the Architect Registration Examination (ARE), a series of seven
computerized exams administered by the National Council of Architectural
Registration Boards (NCARB). As well, all jurisdictions recognize the
Examination for Architects in Canada (Ex AC), administered by the Pan
Canadian Ex AC Committee. Upon completion of the educational
requirements, IAP, and examinations, one can apply for registration/license
with their respective provincial architectural institute. An annual fee must
be paid, and continuing education requirements met, in order to maintain
a license to practice.
The Royal Architectural Institute of Canada (RAIC) was established in
1907 and is a voluntary national association representing more than 3,600
architects and Faculty and graduates of accredited Canadian Schools of
Architecture.[2] The RAIC aims to be "the voice of Architecture and its
practice in Canada". Members are permitted to use the suffix MRAIC after
their names. The suffix FRAIC (Fellow of the RAIC) is used by members of
the RAIC College of Fellows. Not all members of the RAIC hold accredited
degrees in architecture, and not all Canadian architects are members of the
RAIC.
India

For carrying professional practice in India, architects are required to

register with Council of Architecture which is constituted by the
Government of India under the provisions of the Architects Act, 1972. The
profession of an architect is governed by the Architects Regulations, 1989
(as amended in 2003).
The COA registration service also provides accreditation for
institutions providing the degree of architecture, which is minimum five
years duration including professional practice for 16 working weeks (one
semester). There are about 280 institutions including constituent
colleges/departments of universities, deemed universities, affiliated
colleges/schools, IITs, NITs and autonomous institutions which impart
architectural education in India leading to recognized qualifications.
Ireland
The main body for Architecture in Ireland is the Royal Institute of
Architects in Ireland, RIAI. Members may use the affix MRIAI and are
registered to use the title "Architect" in company stationery. The title has
only recently been protected.
To become a registered Architect, it usually takes five years' full-time
study in the recognized schools of Architecture, followed by a minimum of
two years approved experience, and one of the recognized Professional
Practice qualifications to gain admission to the RIAI . In all, it takes a
minimum of seven years to gain registration. More details can
be found on the RIAI website.
An alternate route to the Register is available through the ARAE
(Architects Register Admission Examination) this provides an opportunity
for those without the required educational and professional qualifications
to enter the Register in Ireland. This examination has operated
successfully since 2009.
Architects' Alliance of Ireland is a group of long-established selftrained architects created in response to Part 3 of the Building Control Act
2007. The Act seeks for the first time to control the use of the term
'architect' in the Republic of Ireland. The group is lobbying for an
amendment of the legislation in order to restore the prior status of selftrained architects in the profession.
Italy
To enter the profession in Italy, individuals are required to first
obtain a degree in Architecture, or a degree in Building Engineering/
Architecture, then to receive professional qualification, obtained by
passing a state exam which consists of four tests (three written and one
oral). To practice, the architect must register with the Ordine degli
architect (Order of Architects), which following a recent reform also
includes planners, landscape architects and conservationists (architectural
heritage). The Orders are organized by province, and registration is based
on place of residence of the architect. Within the order there are currently
several classes and categories, depending on specific qualifications.
Italian law recognizes equal rights to Building engineers
registered with the appropriate order. Other professionals in the

construction industry are the geometry (survey or ) and the perito

industrial(technical expert) specializing in construction; these
professionals have several limitations compared to architects and
engineers, as they follow a different and shorter course of study aimed
at learning basic and complementary aspects of work in construction.
Mexico
In Mexico, every profession is regulated by the Secretariat of Public
Education, including architecture. The Secretariat expends a Professional
License (in Spanish cdula professional), only after a recognized
undergraduate degree is successfully achieved. Therefore, it is legally
sufficient for an architect to hold an undergraduate diploma and a
Professional License in order to practice. Registration to an official college
or association of architects is completely optional.
Nevertheless, there are other norms that regulate the building
industry. In Mexico, as it is common for constructions to be developed by
individuals other than architects, these regulations are quite unrelated to
the architecture profession. For a major construction, it is necessary for a
professional to act as a Director Responsible of Construction (in Spanish,
Director Responsible de Obra or DRO). This position does require a
minimum of two years of professional experience in construction, as well as
further evaluation and/or training. However, it is uncommon for architects
to assume this role; this is generally a position preferred by and reserved
to civil engineers.
Singapore
In Singapore, university study is required (such as the five-year
course of study at the National University of Singapore or certain
approved foreign universities). Upon completion of university, additional
training by working for a minimum of two years under a registered
architect is required in order to become registered. Singaporean law
governs the use of the term "architect" and prescribes the requirements to
be listed in the Register of Architects. Membership in the Singapore
Institute of Architects is a voluntary professional credential.
South Africa
See also: List of architecture schools in South Africa
In South Africa, Architecture can be practiced in one of four
categories, depending on qualification: professional architect (Pr.Arch.),
professional senior architectural technologist (Pr.S.Arch.T.), professional
professional
draughts
person
technologist
(Pr.Arch.T.),
or
(Pr.Arch.Draught.). After graduating, one enters a two-year period of in
service training as a "candidate", and sits a Professional Practice entrance
examination; one must also register with the South African Council for the
Architectural Profession. When studied through a University, the
programme is structured in two parts: the first is a three-year course
leading to a Bachelor of Architectural Studies or BSc (Architecture); the
second is an additional two-year postgraduate, professional degree either
the Bachelor of Architecture or Master of Architecture, depending on

University which qualifies one to become an architect. A student is able to

exit university after obtaining the first degree, and will be able to become a
senior architectural technologist. When studied through a University of
Technology (or a comprehensive university), the courses in architecture are
a three-year National Diploma, and, after an additional year of study, the
B.Tech degree. These enable a student to become an architectural
technologist or senior technologist, respectively. To become a draughts
person, one requires a (two year) National Certificate. The possibility of
progression from one category to the next has been provided for in the
Regulations, and is under review.
Sri Lanka
Term "Architect" and "Chartered Architect" are protected titles in
Sri Lanka under the Architects Registration act of 1979 and the Sri
Lanka Institute of Architects (Amendment) Act, No. 14 of 1996.
In Sri Lanka, architects are required to meet three common
requirements for registration: education, experience, and examination. The
Education can be from one of the two available institutions; the degree
course held by University of Moratuwa or by the part-time course held by
the City School of Architecture (owned by the Sri Lanka institute of
Architects) or by any foreign university recognized by the SLIA.
The University of Moratuwa has been offering a "3+2" program
recognized by both
the SLIA and RIBA; a three-year B.Sc. (Built Environment) degree and a
two-year masters, M. Sc. (Architecture). This with the 2 years of
appropriate work experience and successful completion of SLIA Part III
examination would lead to the charter and the Architectural Registration
Board (ARB) registration.
Recently, the University of Moratuwa has changed the "3+2" program
to a continuous five- year B.Arch. program.
City School of Architecture offers a part-time course of seven years
during which the students should be working continuously under the
supervision of a Chartered Architect while attending the school on a parttime basis. Completion of the first four years of this program qualifies for
SLIA part I and completion of the balance after 3 years qualifies for SLIA
part II. Successful completion of this program with the 1 year of appropriate
work experience and successful completion of SLIA Part III examination
would lead to the charter and the Architectural Registration Board (ARB)
registration.
United Kingdom
In the United Kingdom, practicing under the name, style or title
"architect" is restricted by law to those registered at the Architects
Registration Board. It usually takes a minimum of seven years to obtain
the necessary qualifications and experience for registration.
Those wishing to become registered must first study at a
recognized university-level school of architecture. Though there are
some variations from university to university, the basic principle is that
in order to qualify as an architect a candidate must pass through three
stages which are administered by the Royal Institute of British
Architects:

On completing an initial degree in architecture (usually three or four

years, usually either a BA, BSc, or B. Arch) the candidate receives
exemption from RIBA Part I. There then follows a period of a
minimum of one year which the candidate spends in an architect's
office gaining work experience.
The candidate must then complete a post-graduate university
course, usually two years, to receive either a graduate diploma (Dip
Arch), Masters (M. Arch) or B(Arch). On completing that course, the
candidate receives exemption from Part II of the RIBA process.
The candidate must then spend a further period of at least one year
gaining experience before being allowed to take the RIBA Part III
examination in Professional Practice and Management.
United States
In the United States, people wishing to become licensed architects
are required to meet the requirements of their respective state. Each state
has a registration board to oversee that state's licensure laws. National
Council of Architectural Registration Boards is a non-profit professional
association created in 1919 to help ensure parity between the states' often
conflicting rules. The registration boards of each of the 50 states (and 5
territories), member boards. NCARB issues a national certificate to
qualified licensed architects. The NCARB certificate is recognized in most
licensing jurisdictions for the purpose of granting licensure by
endorsement or reciprocity.
Requirements vary among jurisdictions, and there are three
common requirements for registration: education, experience and
examination. About half of the States require a professional degree
from a school accredited by the National Architectural Accrediting
Board (NAAB) to satisfy their education requirement; this would be
either a B. Arch or M. Arch degree. The experience requirement for
degreed candidates is typically the Intern Development Program (IDP),
a joint program of and the American Institute of Architects (AIA). IDP
creates a framework to identify for the intern architect base skills and
core-competencies. The intern architect needs to earn 700 training
units (TUs) diversified into 16 categories; each TU is equivalent to 8
hours of experience working under the direct supervision of a licensed
Architect. The states that waive the degree requirement typically
require a full 10 years' experience in combination with the I.D.P
diversification requirements before the candidate is eligible to sit for
the examination. California requires C-IDP (Comprehensive Intern
Development Program) which builds upon the seat time requirement
of IDP with the need to document learning having occurred. All
jurisdictions use the Architect Registration Examination (ARE), a series
of seven (formerly nine) computerized exams administered by NCARB.
The NCARB also has a certification for those architects meeting
NCARB's model standard: NAAB degree, IDP and ARE passage. This
certificate facilitates reciprocity between the member boards should
an architect desire registration in a different jurisdiction. All architects
licensed by their respective states have professional status as
Registered Architects (RA).

Depending on the policies of the registration board for the state in

question, it is sometimes possible to become licensed as an Architect in
other ways: reciprocal licensure for over-seas architects and working under
an architect as an intern for an extended period of time. Length of the
typical licensure process depends on the particular combination of
education, experience and pace of examination of a candidate. It is typical
that the entire licensure process takes at least 7 to 11 years to complete;
including five years of study (5 years for B. Arch, 3 years for M. Arch, 6
years for a "four-plus-two" program), three-plus years of experience
(meeting exact IDP requirements in each category), and often a year or
more to take and pass the seven ARE 4.0 exams.
Entry of foreign architects in India
Indian Architects keep foreign players out
After the tussle between local and foreign auditors and lawyers, it's
now the turn of architects. The Council of Architecture (CoA), the regulatory
body for the profession, has stepped up its fight against foreign architects
practicing in India attracting severe criticism from several countries,
including the US.
Although foreign architects are not allowed to practice in India,
several entities were rendering services in the country, either directly or
through tie-ups with local players. A 1972 law explicitly prohibits any
foreign firm architect and the government, despite its keenness, has
refused to open up the sector despite negotiations at the World Trade
Organization (WTO).
Last year, as reported first by TOI, the Delhi high court had ruled
that the approval granted by the Foreign Investment Promotion Board (
FIPB) to RSP Architects, Planners and Engineers, a Singapore-based firm,
was not in line with the law.
This provided fresh ammunition to the CoA, which recently issued a
public notice saying "... no foreign architect/consultant (not registered
with CoA) be appointed for architectural works, without following the
procedure under the (Architects) Act". It said that it had issued the
advertisement after it received complaints about appointment of foreign
architects, without prior approval of the government.
This largely went unnoticed in India but has evoked strong reaction
from foreign lobby groups and architects, which have raised a banner of
protest and have gone to the extent of drawing parallels with the
retrospective amendments to tax laws. They have told Indian ministers
that the issue once again highlights India's unwillingness to open up its
markets to foreign competition. Overseas architects are keen to tap into
the booming real estate and infrastructure sectors in India.
CoA president Uday C Gadkari could not be reached for comment but
council member Inderjit Singh Bakshi told TOI that the regulatory entity
had taken up the issue with the government as "only those registered with
the council can practice in India". Apart from those with degrees from
recognized Indian architecture schools, the Architect's Act also recognizes
qualifications from certain countries on a "reciprocal basis".
Government officials agreed with the CoA stance and said the law

clearly bars foreign architects from practicing in India. "It is not part of
our commitment to WTO and can only be done if there is qualification
equivalence or mutual recognition," an official said. This means that
architects from a foreign country can be allowed to practice in India on a
reciprocal basis if the professional qualifications are accepted or
architects from either country clear the stipulated professional tests. For
this to happen, CoA and its foreign counterpart have to come to an
agreement.
While foreign lawyers are explicitly banned from practicing in India,
the Institute
of Chartered Accountants of India has entered into mutual recognition
agreements with its counterparts in the UK, Canada and Australia for
reciprocal membership arrangements.
Although the government has repeatedly tried to open up the
professional services market to foreign players, industry bodies have
prevented it from going ahead, citing threat to livelihood. Despite the "ban"
foreign players have thrived with audit firms such as EY, KPMG and Deloitte
taking over domestic firms. They have used their brands to get business
but use the local firms for signing off on accounts. In case of law firms,
several Indian players have tie-ups with overseas solicitors, who advise
them but cannot appear in court.
Example current scenario
Foreign Architects in India
The profession and practice of architecture in India has undergone a
complete transformation in this decade. The last eight years have been a
boom time, not seen since the heady days of Post Independence India.
The booming economy and the burgeoning middle class has
prompted developers to bring in foreign architects with foreign fees to
design everything from airports to residential and office towers and
bungalows and resorts.
Foreign architects bring in the tried and tested processes and
function precision to bring about a complete turnaround in the way projects
are designed and built. They pair up with Indian firms who have the
expertise on the ground to get things done and built.
Foreign architects for the most part are bringing in foreign solutions
and design principles which may not all work in India, but the public does
not think a second before lapping it all up. We are literally bringing New
York, Chicago, Tokyo or Shanghai to Bombay, Delhi, Calcutta, Madras and
countless other towns and cities.
Only time will tell if this is successful in the long term. India is not the
only place in the world where this is happening. China is way ahead of us in
transplanting urban fabric from the West into their cities.
The TOI has an interesting article about the whole phenomenon of
foreign architects coming to India.
" Time was when there was only the occasional eruption of concrete.
Today, Indias skyline is a work in progress. But while the towering new
skyscrapers, sprawling IT parks, glitzy airports and swanky townships
reflect desi aspirations, the blueprint, more often than not, is foreign.

Be it a slum redevelopment project in congested Mumbai or Kolkatas

new museum of modern art, the global imprint on the countrys fastchanging urban landscape is evident. Made in India but designed by a
clutch of foreign architects looking to cash in on the countrys real estate
boom. For Edinburgh-based RMJM, the company behind the distinctive
Scottish Parliament, a foray into India four years ago has translated into
business of 1 billion. That, the company says, is unprecedented for a UK
architecture firm doing business in India. Theres a cue here for UK
business we need to be in India in a very big way, says RMJM CEO Peter
Morrison. RMJM, which currently has 38 projects under way in India, is now
looking to establish a permanent base in Mumbai.
Many others have taken the cue. Celebrated British architect Lord
Norman Foster, who shaped Londons skyline with buildings such as the
Gherkin and designed the Reichstag in Berlin, has entered India in a tie-up
with a Mumbai real estate firm, the Neptune group. Other big UK names in
India are Laing ORourke, Davis Langdon and Mott MacDonald. Not just UK,
firms from Canada (Arcop) to Australia (Omiros One) have designs on India.
But does India really need foreign architects or is it just about getting
a brand on the brochure? Most builders agree its as much about star
power as it is about international quality. After all, well-heeled buyers
respond to designers with international reputations as much as they
respond to a luxury label like Gucci or Prada. When people purchase an
expensive apartment, a famous architect is extra validation theyre making
a good choice, says Kunal Banerji of Ansal API which signed up US firm
Chelsea West to design Manhattan- style condos at its Aqua polis project in
Ghaziabad.
The Mahindra groups real estate arm Mahindra Life spaces, which
has roped in US-based architect and design firm HOK (of Dubai marina
fame), says their reasons go much beyond the brand. The selection of an
international architect or planner is driven by the unique needs of the
project. For instance, the 325-acre Mahindra World City project is one of
the largest such developments under implementation and to that extent
the width and depth of on-ground implementation experience is currently
available only with international firms who have conceived and
implemented such projects in different parts of the world, says Anita
Arjundas, COO of Mahindra Life spaces.
Size does matter and with Indian developers going beyond standalone commercial blocks and residences to converting huge swathes of
land into townships and IT parks, a foreign hand does come in handy.
Foreign firms can visualize and handle massive scale. Also, their designs
are very innovative. They create landmarks and not just buildings, says
Shantanu Malik, DGM-Architect, Unitech Ltd.
Its a win-win for Indian architects as well. Working with foreign firms
gives us exposure to international standards. There is a lot to learn from
their use of detailing and modern materials, adds Malik.
Unitech often hires multiple design firms for a single project. For
instance, it has 10 global architecture and design consultants for the $3
billion Unitech Grande, a super-luxury residential complex spread over 347
acres along the Noida expressway. This project draws on the expertise of
US-based mall designer Callison, landscape artists SWA and EDAW,

Britains RMJM for architecture and interiors and HOK for floor plans,
besides a course designed by Australian golfer Greg Norman.
With so much demand, it isnt surprising that Mark Igou, director in
the US architectural firm Skidmore, Owings and Merrill Llp (SOM), has been
shuttling between New York and India over the last three years. I spend
more than three months a year in India, familiarizing myself with the
ground situation. And ground reality is what SOM the firm which has
designed the Burj Dubai, which will be the worlds tallest skyscraper when
it is finished in 2009 is faced with in Mumbai where it is designing
homes for slum dwellers in Mumbais Santa Cruz as part of a masterplan
for Unitech. Its a unique design challenge recreating the same sense
of community that exists in their current housing so that people dont want
to return to the slums they left, says Igou. SOM is also using the services
of sociologists and cultural anthropologists to get a sense of the social and
cultural aspects of the lives of those being rehabilitated.
Whether its slum housing or a swanky township, India is essential to
the design inputs. Education and social interaction are both important to
Indians so our designs will reflect these needs. So residential units would
have schools nearby and public spaces for people to interact, he says.
Besides projects like the Jet Airways headquarters in Mumbai, SOM is also
working in Tier-II cities like Ahmadabad and Nagpur.
Be it the Indian ethos or the vagaries of its climate, Uruguayan
architect Carlos Ott keeps it in mind when he is on the drawing board. Ott,
who has designed a techno park for Tata Consultancy Services at Siruseri,
Chennai, in association with countryman Carlos Ponce de Leon, says, I am
constantly studying the history and traditions of India, hoping to integrate
some of its characteristics in my buildings. And though my work is
definitely contemporary, the clues from the past are integrated in a
modern vocabulary.
Ott is building on the work that earlier foreign architects have done in
India. Apart
from Lutyens and Le Corbusier, several other international architects have
showcased their designs in India. Ahmadabads Indian Institute of
Management reflects Louis Kahns trademark style of veering towards
monolithic masses resembling ancient ruins. Christopher Charles
Benningerdesigned the Mahindra United World College of India, near Pune.
British- born Laurie Baker planned the Fishermens Village in Poonthura in
Kerala, while American Joseph Stein gave shape to Delhis India
International Centre.
Now, a new generation of foreign architects has designs on India. And
their glittering computer-generated images look set to redefine the
countrys skyline. "
Construction sounds boom loudly nowadays as the Indian skyline
towers with competing skyscrapers and IT office parks sprawling in outer
suburban townships. More high-tech, high-glitz international airports
replete with all the commercial building associated with major
transportation hubs have fulfilled many Indian intended building goals but
the design is often American inspired.
Design Demand Outpaces Local Delivery

The boom in India real estate development and redevelopment is

outpacing the countrys ability to produce enough native talent to keep up
with the demand. Thus, when a country with a population of 1.2 billion
produces only 3,000-4,500 architects annually from its 180 schools
according to the India Council of Architecture, with an estimate of 40,000
registered professionals, the demand means an international search for
available talent.
Besides the enormous need for commercial building architecture,
building expansion, and interior design created by Indias real estate boom,
the sustainable-designed buildings are also in public consideration due to
rising energy prices and changing government policies and tariff structure.
Many new buildings in India are LEED certified.
Still Made in India, But Designed Globally
From the redevelopment of Mumbai slums to the high-tech designs
for a modern art museum in Kolkata, architectural design in the Indian subcontinent has taken on a decided global appearance making a huge impact
upon the ever-changing urban landscape. Although this does translate into
opportunities for construction to remain Made in India, the design has
been firmly grabbed by a bevy of foreign architectsincluding U.S.-based
firmsseeking to capitalize on the countrys continuing real estate boom.
Is This Need Created?
This question can be rightly posed if India is, indeed, in need of so
much foreign architect design activity. Or, is it simply a matter about
acquiring star power and the bragging rights associated with
international quality? We at Amritt believe that Indian real estate
developers are seeking a modernized, updated function and look to their
properties, just as any clothing consumer would seek either Prada or Gucci
as design choices.
Therefore, world class implementation demands worldwide searches.
Savvy, profit-seeking Western architects are focusing effort on India.
Codes of conduct for Indian architects
A code of conduct is a set of rules that outlines the duties and
responsibilities of a particular person, groups or organization. All
professions are bound by these codes, including architecture which is a
process of designing, planning and construction of buildings and other
structures.
In India, just like other countries, architects do have codes of
conduct. Indian architects are required to register with a government body
called the council of architecture so that one can be able to carry out the
professional practice. It is illegal to conduct any architectural activities
without getting registered by this body. When they register with this body
each architect gets a unique registration number. They also have to follow
the Indians architects act 1972, which states the following.
All architects are to be bound by this act and are to follow it.
The council of architecture shall be the body responsible for all
architects. Through this body contracts can be made. One can sue

or be sued.
The head office shall be in Delhi unless stated otherwise by the
central government, which will be put in the gazette.
Specifies the number of members who are to be on the council
and there mode of election.
It talks about the registration of architects. That with them they
should have their birth certificate, national identification card,
relevant school documents and a degree from a known institution.
Punishments to those who give false representation are also stated.
The Indian government also did establish a code of conduct in the
Indian constitution. It is under the professional code of conduct 1989. It
states that:
Every architect who's either employed or practicing is
subject to the provisions of the central civil services.
An architect should make sure that his professional activities do not
conflict with his responsibilities and what he is entitled to do, his
responsibility to the society and environment.
He or she should apply and use his skills responsibly for the
economic development of India.
The architect shall provide professional services of high
quality and to the best of his ability.
Should always inform the client on the conditions of
engagement and the terms of agreement especially if one
is on private practice. These are to form the basis of an
appointment.
One should not sub commission work to another or other
architects without an agreement with his client.
He should not give or take discounts, gifts, commissions or any form
of inducement for introduction of a client or work.
He should act with impartiality and fairness when
administering a contract.
The architect should maintain very high standards of
integrity.
Should promote the advancement of architecture, research,
training, architectural education and also training.
He
should
respect
and
recognize
professional
responsibilities of consultants.

Questions
Two Marks:
1. What do you understand by globalization in architectural practice?
2. Writes short notes on GATS?
Sixteen Marks:
1. What are the pre- requisites for Indian architects to work in other
countries.

2. Explain the impact of information technology on architectural

practice.
3. Explain the implications of foreign Architects entry in India.
.

UNIT V
EMERGING SPECIALISATIONS FOR AN
ARCHITECT
Contents:
Definition
Introduction to Project Management
Evolution of Project Management
Todays Scenario - Fields in Project Management
Function of Project Management
Role of an Architect in Construction

Benefits in project management for architects

Lifecycle of Project Management
Process of Project Management
Others
Course Objective

Project:
What is a Project?
Projects are unique, transient endeavors undertaken to
achieve a desired outcome.
The definition of a project identifies two of the key features:
Uniqueness
Projects are separate to business-as-usual activities, requiring people
to come together temporarily to focus on specific project objectives. As a
result, effective teamwork is central to successful projects.
Transience:
A project has a specific start and end point and is set up to
meet specific objectives, to create a specified result, product or
service.
What is project Management?
At its most fundamental, project management is about people
getting things done.
Project management
is the process by which projects are
defined, planned, monitored, controlled and delivered such that the agreed
benefits are realized. Projects bring about change and project
management is recognized as the most efficient way of managing such
change. (APM, 2011)
Project management focuses on controlling the introduction
of the desired change. This involves:
Understanding the needs of stakeholders.
Planning what needs to be done, when, by whom, and to what
standards.
Building and motivating the team.
Coordinating the work of different people.
Monitoring work being done.
Managing any changes to the plan.
Delivering successful results
Evaluation of Project Management
It can be conjectured that the history of project management goes
back to the time of the pharaohs and the construction of pyramids of
Giza or to the Qin dynasty and the Great of China
Contemporary project management has its roots in the 1950s and
1960s although Henry Gantt, widely recognised as the father of

planning and control techniques and his eponymous bar chart in the
early 1900s and Gantt Charts were used during World War 1 to
reduce the build- time of cargo ship.
The concept of project management was after its introduction,
mainly used by the construction industry due to the temporary
nature of its projects.
Two forefathers of project management are Henry Gantt, called the
father of planning and control techniques, who is famous for his use
of the Gantt chart as a project management tool.
Todays Scenario Fields in Project Management:
With the advent of the new millennium, project management is
increasingly seen as part of the general management too and its
techniques are deployed across all sectors of business and all types of
project.
IT
Construction Industry
Retail
Healthcare
Mining
Function of Project Management:
A list of functions carried out by project managers:
Establishment of the clients objectives and priorities.
Design of the project organization structure.
Identification of the way in which the client is integrated into the
project.
Advice on the selection and appointment of the
contribution to the project and the establishment of their
teams of reference.
Translation of the clients objectives into a brief for the project team
and its transmission.
Preparation of the programme for the project.
Activation of the framework of relationships established for the
contributors.
Establishment of an appropriate information and communication
structure.
Convening and chairing meetings of appropriate contributors at all
stages.
Monitoring and controlling feasibility studies, design and production
to ensure that the brief is being satisfied, including adherence to the
budget, investment and programme plans.
Contribution to primary and key decisions and to making operational
decisions.
Recommendation and control of the implementation of a strategy for
disposal or management of the completed project, including
commissioning the building and advising on arrangements for

running and maintaining it when completed.

Evaluation of the outcome of the project against its objectives and

against interim reports including advice on future strategies.

Role of an Architect in construction:

list of functions it is clear that the design manager (architect) and
project manager are clearly different roles, demanding quite different
skills and abilities.
There are, however, overlaps between the project manager and
architect, best accommodated by integrating both disciplines within
the same professional service firm There are, however, overlaps
between the project manager and architect, best accommodated by
integrating both disciplines within the same professional service firm
Collation of client/business requirements
Design co-ordination
Implementation.
Benefits in Project management for architects
Why should an architect understand project management?
Client/ stakeholders have an informed view of what the project will
entail, at the onset. There are clearly defined policies, objectives and
instructions for every element of the project from start to finish.
Clients benefit from assigning the ultimate responsibility to the
project manager.
An effective project manager is more likely to deliver the project
successfully- i.e with good leadership, the project is kept on track
with respect to time, cost and quality.
Effective project management ensures effective risk management.
Effective project management ensures value for money.
Coordination is one key aspect of project management
which is beneficial to the team as a whole
A project manager with a sound knowledge of the relevant tools and
techniques of PM is likely to introduce change with maximum
efficiency and effectiveness
In planning, monitoring and controlling a project, Project
management focuses attention on cost, time, quality/performance
and their trade-offs in such a way as to effect optimum efficiency and
effectiveness.
Need for project management in construction Industry
All the work that has to be done to achieve the time, cost and
quality objectives defines the project scope. The scope can
change over time, and it is the project managers responsibility
to ensure the project will still deliver its defined benefits.
A project manager must maintain focus on the relative priorities
of time, cost and quality.

 Cost
Quality
Time

Process of Project Management:

A clinical Approach to Project Management:

RISK

1. Identify project objectives and

constraints.
2. Maintain and update Risk register to
capture project risks along with
mitigation strategies.

SCHEDULE

1. An initiation schedule created to set the

momentum.
2. A combination of progress schedules tracked
closely to understand the current and planned
position.

QUALITY & SAFETY

COST

Initiate:

1. Quality plan & safety plan document

with target parameters.
2. Periodic quality & safety reviews to
review compliance and minimum
requirements respectively.
1. Keep overall costs within approved
project budget by strictly monitoring
expenditure.
2. Conduct value engineering (VE0
workshops to devise alternate
methodologies to reduce costs.

Find out the requirements of the Client (objective of the client)

Understand the environment of the projects and the variables
Define the Scope of the Project, agree with the client etc
Plan:

Prepare a project Charter

Develop a Project Management Plan
Create a Work Breakdown Structure
Resource Allocation

Things to Consider while Planning Projects

Resource Availability
Health and Safety of Personnel the Workplace
Environmental Safety
Reduction of Time
Minimization of Cost
1.Execute:
Implementation of project plan with the agreed cost, time and
quality.
Change management, cost management etc.
2.Monitor and Control

 Schedule
Risk management
3. Closing Process
Handover of the project with achieved objectives &
deliverables e.g commercial & technical handover.
Who is a good Project management?
Leadership skills
Motivation skills
Decision maker
Teambuilding
Forecast and plan
Manage risk
Effective control of resources.
Indian project management companies in the market
DTZ
CBRE
JLL
Turner & Townsend
Design & Build firms.
Cushman & Wakefield
Project management school in India:
NICMAR
Tools and techniques
Project management Softwares ( Primavera,
Microsoft project plan, pert master etc )
Templates for individual deliverables ( 5 phases of the project)
Regular Meetings
Why this Subject? (objective)
To understand Traditional Management System Grant chart, Bar
Chart, PERT, CPM, WBS etc
Skills soft & hard skills
Programming, Network Techniques
To Establish a relationship between Project Cost and Project Planning
Application of Softwares in Planning of Simple Projects.
Questions
Two Marks:
1. What do you understand by a dummy activity?
2. Mention any four rules to be followed for drawing a network diagram.
Sixteen Marks:
1. Explain and analyze the role, function and responsibilities of a
construction manager and a project manager.
2. Explain the planning, scheduling and controlling phases of a project

management.
.