Construction Contracts and Contracting

Tender Process:
• General Instructions to Bidders:
(a) Scope of bid
(b) Eligibility
(c) Eligible materials, plants, supplies, equipments and services
(d) Qualification of bidder
(e) One bid per bidder
(f) Cost of bidding
(g) Site visit
• Bidding Documents:
(a)Instruction to bidder
(b) Condition of contract
(c) Schedule of requirement
(d) Technical specification
(e) Bid form price schedule
(f) Bid security form
(g) Contract form
• Clarification of the Bidding Document
• Amendment of Bidding Document
• Preparation of Bid
• Essential Documents Comprising Bidder Submits-
(a) A bid form
(b) Appendix to bid form
(c) Priced B.O.Q
(d) Bid security.
• Bid Validity
• Alternative Proposal by Bidder
• Pre - Bid Meeting
• Format and Signing of Bid
• Submission of Bid - Sealing, deadline for submission
 • Bid Opening and Evaluation.
• Award of Contract
• Signing Agreement
• Performance Security
• Dispute Review Board

Contract Document:
A tender when accepted after scrutiny becomes a contract document.

• Parts of the Documents-

(a) Tender notice
(b) General rules and directions
(c) The letter of submission of tender
(d) The letter of acceptance of tender
(e) The addenda numbers
(f) Form of contract
(g) Condition of contract
(h) Schedule -A- materials details
(i) Schedule -B- B.O.Q
(j) Specifications
(k) Tender drawings

• Different Types of Contracts:

(a) All-In Contracts/ Entire Contracts
(b) Lump Sum Contract
(c) Item Rate or Unit Price Contract
(d) Percentage Rate Contract
(e) Cost-Plus Percentage Contract
(f) Cost-Plus Fixed Fee Contract
(g)Cost-Plus Fluctuating Fee Contract
(h) Target Contract
(i) Labour Contract
(j) BOT Contract
• Laws of Contract - The Indian contract act -1872
• FIDIC Condition of Contract
“The Federation Internationale des Ingeniours counseils (FIDIC)”
- Fourth edition of FIDIC “new red book” in 1999

• Construction Claims
(a) Contractual claims
(b) Extra Contractual claims
(c) Quantum merit claims
(d) Exgratia claims
(e) Counter claims

• Arbitration Procedure: It is the mechanism to settle the claims, disputes or

differences between two parties.