General Conditions Of Contract In Civil Engineering Construction
The main aim of the General Conditions Of Contract in civil engineering construction is to avoid disputes between parties.
A contract is a legal agreement between the two parties in the written format and signed by both parties.
While preparing the contract agreement some general conditions of the contract are laid down including the specifications, designs, drawings, and instructions issued from time to time by the Chief Engineer, Additional Chief Engineer.
General Conditions Of Contract
Let’s explore the general conditions of contract in civil engineering projects-
The security deposit in the construction industry is nothing but it is security money deposited by the contractor as a tendering amount with the department.
The contractor shall deposit around 10% of the estimated cost as security money with the department including the earnest money which is already deposited at the time of submitting the tender.
Compensation For The Delay
In the construction work, the work shall be started from the 15th day after the order of work or any specified date during the contract.
If there is any delay in the completion of the construction project then the contractor is liable to pay compensation to the department or owner around 10% of the contract price.
Incentive For Early Completion
If the contractor completes the work ahead of the scheduled completion time, a bonus of 1% of the tendered value per month computed on a per-day basis, shall be payable to the contractor.
The incentive is subject to a maximum limit of 5% of the tendered value. The amount of bonus, if payable, shall be paid along with the final bill after completion of work.
Power To Take Possession
If the contractor is not able to pay compensation for the delay of work then in this situation the authority may take possession of all tools, plants, materials, and sell them after sending a written letter to the contractor.
Extention Of Time
In the construction, if the delay in the completion of project work is not due to the contractor, then in this situation contractor should write a letter to the department or owner for the extension of time.
The department or owner first check the reason for the delay in the project, if the delay in the project is not from the contractor side then the owner or department grant a suitable extension of time.
In the construction work, the completion certificate means the clearance of the site including instruments, surplus materials, etc after the completion of construction work.
In the contract document, a specific date is mentioned for the completion certificate, if the contractor is failed to clear the site on the specific date then the owner or department clears the site with the expenses of the contractor.
Payment On Certificate
In the construction field, the final payment to the contractor shall be made on the issue of the completion certificate and the intermediate payment shall be regarded as an advance against the final payment.
Monthly Payment On Bills
The monthly payment on bills in the construction industry shall be submitted by the contractor on the date or before the date fixed for the works executed in the previous months.
Objection To Measurements Recorded By The Department
In the construction, taking up any measurements of construction work, notice must be given to the contractor to be present while the measurement of construction.
If the contractor is not present due to any reason then the measurement taken by the department shall be the final measurement and also binding on the contractor.
Bill To Be In Printed Form
In the construction, the contractor must submit all the bills in printed form.
Payment To Certified Bill To Banks
A lot of money is involved in the construction of any project, so as legal proof of payment the owner must be made money into the contractor’s bank account instead of direct case payment to him.
Materials And Stores Supplies By The Department
The materials and stores supplied by the department must be returned in perfect condition and the department is not responsible for any type of damage to materials or stores.
In the construction, the materials and stores are supplied by the department to the contractor issue at a fixed rate.
Secured advance in the construction industry means the contractor has a legal right to get 75% advance payment against the estimated value of materials brought by the contractor on the site in the connection with work.
Drawings And Specifications
The construction carried out by the contractor must be according to the drawing, specifications, and instructions.
Alteration In Specifications And Designs
In the construction industry, the authority has the right to make any changes in the original drawing, specifications, and design during the construction period.
And the changes in the original instructions shall be applicable to the original tender and the contractor and they are bound to work according to the changes.
The rate of such changes will be the same if specified in the tender, if not specified then a fresh analysis shall be made.
Revision Of Rates Or Price Rise
Due to the inflation the labor wages, material prices may increase during the period of construction so the contract must contain a condition to payment of the rising price due to inflation.
The contractor may claim for the revision of the rate specified in the tender and the authority may revise. The decision taken by the authority shall be final and binding to the contractor.
No Compensation For Restriction Or Alteration
In the construction, the contractor has no right to claim any compensation for the alteration of the original work.
Bad Works Compensation
If any work that has been performed by the contractor is found to be imperfect, unskilled workmanship, or used material is not according to the specification then the contractor must explain it to the authority.
If the contractor is failed to satisfy the authority then in this situation the contractor must pay compensation at the rate of 1% per day up to the maximum limit of 10% of the estimated cost.
Works To Be Open To Inspection
In the construction work, all the work must be open for the inspection and supervision of the authority or authority representative.
Work Covered Up Notice
The contractor must give notice to the authority for the cover-up of the construction work before 7 days.
If any damage happened in the constructed project within the prescribed maintenance period then the contractor is liable for the maintenance of damage.
Contractor To Supply Tools And Plants
In the construction, the contractor at his own cost supplies the tools and plants for the proper execution of construction work.
Care Of Departmental Tools And Plants
During the construction work, the tools and plants provided by the department to the contractor for the work the care must be taken by the contractor, and the contractor are liable for any loss or damage.
For the construction work, no labour is employed under the age of fifteen years and the minimum wages and proper amenities shall be provided to the labours.
Work On Sunday
In the construction work, no work is performed on Sunday without the written permission of the authority.
Lease Of Work
Without written permission from the authority, the contractor shall not assign or lease the contract.
Changes In Constitution Of Firms
If there is any change made in the firm’s constitution then it is given to the contractor in written form.
Direction Of Work
All the construction work shall be carried out under the direction of the authority in charge.
Settlement Of Disputes
The dispute between the contractor and the owner shall be resolved through mutual discussion and negotiations.
If the dispute is not resolved through mutual understanding then arbitration plays an important role in the settlement of disputes.
During the use of any design in the construction, the patent right of those designs must be taken before the use of them.
Lumpum In Estimates
If there are some lumpsum items and it is proposed to make any intermediate payment, then the payment shall be made on the basis of the certificate of the authority.
Action Where No Specifications Exist
If there is not provide any specification for the work, then in such condition the work is carried out with the instruction of authority.
In the construction work if there is any claim against the contractor, then in such a situation some part or whole part of security money shall be retained.
Supply Of Water
In the construction work, the contractor shall arrange the water supply for the work on his own, and nothing extra will be paid for this.
The contractor shall provide labour camp on his own money and also provides the water, lighting, sanitation, etc at his own cost in the camp.
Taxes And Royalities
In the construction work, all the taxes and royalties shall be paid by the contractor.
In the construction work, the contractor takes an insurance policy to cover all risks caused by natural disasters such as floods, earthquakes, etc.
That the analysis about the General Conditions Of Contract In Civil Engineering Construction.
Frequently Asked Questions(FAQ)
The main conditions of construction in civil engineering are Security Deposit, Compensation For The Delay, Incentive For Early Completion, Extention Of Time, Secured Advance, Alteration In Specifications And Designs, Maintenance Period, Settlement Of Disputes, Retention Money.
The main role of arbitration in construction work is to settle down disputes between the contractor and the owner without going to court.
More Read- Advantages And Disadvantages, Suitability Of Item Rate Contract
More Read- Percentage Rate Contract- Advantages, Disadvantages & When To Use
More Read- Advantages And Disadvantages Of Lump-Sum Contract & When To Use
More Read- Labour Contract-Advantages, Disadvantages, And When To Use?
More Read- Advantages And Disadvantages Of Cost Plus Percentage Rate Contract