PROFESSIONAL PRACTICE

MODULE 2
 PART 4
CONTRACT
Duties and liabilities of Contractor under the contract
 DUTIES &LIABILITIES OF CONTRACTOR
•Planning how the project will be carried out .
•Developing and coordinating of activities .
•Building contractor -research regarding relevant
regulations and laws akin to the construction
process.
•Completing the project based on laws, rules and
regulations in relation with construction.
•Acquire licenses and permits -building project
can begin.
•Establish a budget for the construction project.
•Follow the budget .
 DUTIES &LIABILITIES OF CONTRACTOR
• Based on budget, obtain materials , hire workers and
finish the construction in a cost-efficient manner.
• Obtaining materials for the project.
• Maintain contacts with material suppliers.
• Supervising employees.
• Reviewing the progress and implementing any
changes along the way.
•Deals with all emergencies and surprises which
relate to the project and occur on-site and
sometimes off-site as well.
•Hard work and thorough review of many processes
related to building of structures.
• Oversees construction and ensures necessary
measures -completed finished product.
WHAT TRAITS MAKE A GOOD BUILDING CONTRACTOR?

•Decisiveness.
•Experience
•Honesty
•Good leader
•Quick decisions and speedy
fashion
Duties and liabilities of Architect under the contract
ARCHITECTS RESPONSIBILITIES

• He is responsible to the following

➢His client
➢His Profession
➢His Own organization
➢His Design team
➢To the society at large
 ARCHITECTS RESPONSIBILITIES
• Advisory: giving competent and appropriate advice
to client.
• Competence: shall possess the required knowledge
and skills for discharging his professional duties.
• Legal: advising about laws and rules governing
buildings
• Prepare, direct and coordinate design and supervise
works executed under a building contract.
• Frequent supervision -clerk of works -approved by
the architect.
• Service: providing requisite data for construction.
➢Service rendered as per councils conditions of
engagement and scale of charges between the client
and the architect.
 ARCHITECTS RESPONSIBILITIES

•Professional conduct: an architect is bound by

councils “architects regulations 1989”violation of
these regulations will constitute professional
misconduct.
•Duty of care: shall bring to his task a reasonable
degree of care.
•Negligence: means failure of architect to take
reasonable care while discharging his professional
duties.
 ARCHITECTS RESPONSIBILITIES
•Employment of consultants -architects discretion
in agreement with the client.
•Nominate specialist sub contractors for the design
and execution of any part of work.
•Staff: creating right conditions for effective
working.
•Authorize material changes in design -client
informed without delay.
•Maintenance of records: is required to maintain all
important records.
Duties and liabilities of Employer under the contract
 Employer Responsibility

• Pay the employee the agreed amount.

• Employers must make sure their employees'
working conditions are safe.
• Give employees correct information about rights
under their contract.
• Give employees reasonable opportunity to have
their complaints looked at.
• Employers must treat their employees with respect.
They must make sure their employees are not
harassed or discriminated against.
CLERK OF WORKS
• To act under the order of the architect.
• To inspect the works under the absence of architect.
• To inspect and check the materials.
• To check and measure time.
• He can give notice to the contractor about the no
approval of any work or materials .
• He has no power to set out works.
• He has no power to alter, enlarge or relax any
requirements of the contract.
• He has no power to sanction any work, deviation,
omitions or any extra work.
DUTIES OF ENGINEER IN CHARGE

•To plan proper execution of work on behalf

of the contractor.
•To set out the work and to give proper
direction for the execution.
•To prepare an intend of materials required
for the execution of work and to obtain the
same on time.
•To see that adequate supply of materials is
maintained at the point of working.
 DUTIES OF ENGINEER IN CHARGE

•To keep a control over the labour.

•To check the outturn of the works by the
skilled and semi skilled workers.
•To keep the systematic record of the works
done daily and to present the report to that
effect to the contractor.
•To discuss the matter with the architect to
note down the instructions and to carry out
the work accordingly.
 RESIDENT ENGINEER
• Contractors representative on site.
• Supervise the works on behalf of the contractor -
according to the plans.
• He stays on site and has given wide powers more than
that of clerk of works.
• If there are any variations or extras, they should be
brought to the attention for his consideration.
• He has to maintain a dairy -instructions and directions
given by architect for the work - sign of the architect –
otherwise no weight and no legal force.
• Duties more or less similar to clerk of works.
• Contractor responsible -negligence on the part of
resident engineer .
NOMINATED SUBCONTRACTOR

•Contractor employed by the main contractor.

•To supply or fix any materials or goods or
execute work forming part of the main
contract.
CONSULTANTS
•For better planning ,co-ordination and
execution .
•Consultants - caryying out the duties of the
architect -paid by the architect .
•For any fault of the consultant , architect is
responsible to the owner .
•Architect -suite against the consultancy for
the same.
QUANTITY SURVEYOR

• Estimation of the work

• Schedule to be priced by the tenderor.
• Advices on the value of work for interim certificate.
• Prepares a building contract .
• Advices on the value of work for the final
certificate.
LIQUIDATED DAMAGES
• Sum of money as compensation when the
contractor fails to perform as directed in the
contract.
• The work remains uncompleted after the final
completion date as mentioned in contract.
• Reimbursement for owner’s monetary loss due to
delay.
• Actual damages-difficult to determine.
• So fixed daily rupee amount determine the measure
of extend of damage.
Prime cost sum
• Allowance by cost consultant , for the supply of
work or materials ,not yet finally selected ,provided
by sub-contractor or supplier.
• Allowance is for profit mark up by main contractor.
• Example taps or door furniture.
Provisional sum
• Allowance estimated by a cost consultant, that is
inserted into tender documents for a specific
element of the works that is not yet defined in
enough detail for tenderers to accurately price.
• Cost of foreseeable necessary work.
• For example joinery items or a service connection.
 DETERMINATION BY CONTRACTOR
• He can terminate on following ground:

➢Owner fails to honor certificate of payment even after

notice( 2 weeks) of payment is served to him.
➢Owner obstructs issuing of certificates of payment
➢Work is suspended for a long period due to litigation, civil
commotion, damage due to fire etc.

• Contractor may remove his plants, equipments etc and

dismantle temporary construction
• Owner will pay for any loss and damage suffered by the
contractor.
 DETERMINATION BY OWNER
• He can terminate on following ground:

➢Contractor suspends work without notice.

➢Fails to carry out architect’s instructions.
➢Fails to rectify defective work.
➢If contractor is declared insolvent.

• Written notice in 10 days & terminate the contract.

• After notice owner take possession of building -after joint
measurements .
• List of defective work is prepared.
• Inventory of contractor's equipments ,tools etc. in presence of
witnesses.
• Owner can employ another agency to complete the work at the
contractor’s cost.
 CERTIFICATES OF PAYMENT

• Architect will issue the certificate against the running bills

submitted by the contractor.

• The owner will honor the certificate within the stipulated

time, normally 2 weeks.

• Final measurement -completed within 3-6 months.

• Contractor shall submit all accounts rate analysis, the

guarantees etc. before the final certificate of payment is
issued by architect.

• No corrections will be made in the final certificate unless

there are arithmetic errors.
CERTIFICATES OF PAYMENT

• INTERIM CERTIFICATE
• PENALTIMATE CERTIFICATE
• FINAL CERTIFICATE
INTERIM CERTIFICATE

• Is issued from time to time as specified in the

appendix- progress of work
• It specifies the amount for the works executed,
payment to be advanced against the cost of materials
and the goods delivered on site.
• It shows the amount to be retained by the owner to
the retention fund.
• These certificates are simple statements/facts which
show the approximate value of the work done or the
contract prize of the material delivered on site.
• These certificates shows owner is quiet safe.
INTERIM CERTIFICATE

• These are issued based on:

➢Conditions of the contract

➢Stages of the payment
➢Value of materials and goods applied
➢ Maximum limit of retention fund.
 INTERIM CERTIFICATE
• Not final certificate

• Does not guarantee -works executed are proper.

• Payments - under these certificates -provisional -

subject to adjustments and readjustments at the end of
the contract.

• Revised by the subsequent certificate.

• IC does not make the unauthorized extra as authorized

ones.
PENALTIMATE CERTIFICATE

•Main purpose is to collect necessary fee from

the contractor -payments to subcontractors .
•Ensures after necessary compliance final
certificate can be issued to the contractor.
FINAL CERTIFICATE
• Is issued at the end of the defect liability period.

• Issue scheduled of defects not later than 14 days from the end of
defect liability period.

• The final certificate can be issued after the contractor has made
good the defects.

• Contractor should submit all documents pertaining to all

measurements and valuations either before or within a
reasonable time from the issue of virtual completion .

• Delay will be at the cost of contractor.

VIRTUAL COMPLETION

• The stage of completion of the building when the architect

certifies in writing that the same is complete and ready for
occupation by the owner.

• When the works are practically complete the architect will issue a
certificate to that effect called the virtual completion certificate.

• The building is said to be complete:

➢The contractor gives a notice to that effect.

➢When a drainage completion certificate has been obtain.

 VIRTUAL COMPLETION
➢When the architect applies for occupation certificate to the
local authority.

➢When the local authority grants the occupational

certificate.

➢When water connection has been obtained.

➢When the architect applies for completion certificate.

➢When the local authority grants completion certificate.

PERFORMANCE BOND

•A performance bond, also known as a

contract bond, is a surety bond issued by an
insurance company or a bank
to guarantee satisfactory completion of a
project by a contractor.