assisgnment no. 4 contract management

Contracts Management 2012

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ASSIGNMENT

NICMAR/CODE OFFICE

1. Course No. - PGPM 14

2. Course Title - Contracts Management

3. Assignment No. - 04

4. Date of Dispatch - 16th Nov 2012

5. Last date of Receipt of Assignment -

At CODE Office

6. Name of Student - Ashutosh Kumar7. Registration Nos. - 212-08-31-10966-2141

ASSIGNMENT

Contract administration and monitoring is the most important area of construction

management. Contract administration process should start right from the day work is

assigned to the company. Discuss any project contract currently in progress with your

company and how administration and monitoring is being done. Draw the organization

chart for this activity and explain all the function carried out. Do you think the system is

achieving results? Discuss.


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NAME OF PROJECT:

Main Interior Fit-Out Contract for Asian Paints Colour Signature Store, Connaught Place,

New Delhi.

INTRODUCTION

Contract Management is the process that enables both the parties to a contract to meet

their obligation in order to deliver the objectives required from the contract. It also involves

building a good working relationship between customer and provider. It continues throughout

the life of a contract and involves managing proactively to anticipate future needs as well as

reacting to situations that arise.

The central aim of contract management is to obtain the services as agreed in the contract and

achieve value for money. This means optimising the efficiency, effectiveness and economy of the

service or relationship described by the contract, balancing costs against risks and actively

managing the customer-provider relationship. Contract management may also involve aiming for

continuous improvement in performance over the life of the contract.

Type of Contract:

Under an EPC contract, the contractor designs the installation, procures the necessary

materials and builds the project, either directly or by subcontracting part of the work. In some

cases, the contractor carries the project risk for schedule as well as budget in return for a

fixed price called lump sum or LSTK depending on the agreed scope of work.

When the scope is restricted to engineering and procurement, this is referred to as an

EP or E and P or E+P Contract. This is often done in situations where the construction risk is

too great for the contractor or when the owner does the construction.


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The EPC contractor (EPCC) agrees to deliver the keys of a commissioned plant (Perhaps should

recognise that some EPC contracts take the work to Mechanical Completion but EXCLUDE

Commissioning while Lump-Sum Trunkey (LSTK) contracts always INCLUDE Commissioning) to

the owner for an agreed amount, just as a builder hands the keys of a flat to the purchaser.

EPC is gaining importance worldwide. It requires good understanding by the EPCC to return a

profit. An owner decides for an EPC contract for reasons that include:

Reduced stress for owner

Single point of contact for owner simplifies communications.

Ready availability of post-commissioning services

Ensures quality and reduces practical issues faced in other ways

Owner protected against changing prices for materials, labour, etc.

Cost is known at the start of the project

Besides the plant sitting, in an EPC contract the owner defines:

Scope and the specifications of the plant

Quality

Project duration

Cost

The cost (the price to be paid to the EPCC) is negotiated and finalised and paid in mutually

agreed instalments.

Owner and Contractor Liabilities

Once an EPC contract is signed, the EPC contractor becomes liable for completing the project

according to the tender conditions. The EPC contractor, in turn, may hire sub-contractors or

sub-vendors to complete different portions. Payment commensurate with the work

completed (in addition to an advance) is normally preferred by a contractor.

Projects are more likely to succeed when the owner:


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Defines guarantees well

Defines scope and quality very carefully

Defines milestones meticulously

Defines LD/penalty clauses

Makes payment terms very specific

The contractor also has ways to improve project success:

Adopts similar terms and conditions as owner regarding quality, guarantee etc., for

subcontracts/vendors

Do not keep terms open-ended

Coordinate vigilantly to reduce chances of errors at site.

Global Arena

An EPC contract is a complex agreement. In a global context, EPC management is more

complex. The EPCC must have data and expertise in all the required fields. Some important

areas are:

Local market conditions for materials and labour availability and capabilities

Local code, statutory etc., requirements

Availability of local supervisory personnel

Availability of local engineering services

Local and global subcontractor experience and performance

Cost Certainty

One main reason an owner may prefer an EPC arrangement is "certainty of cost". An

EPC contract binds the Contractor to deliver the project at a firm, predetermined price

regardless of any increase in costs that the Contractor may incure after the contract is signed.

However, changes to specifications initiated by the owner (better finishes for example) may

be incorporated through a "change order". Here, the owner and the Contractor negotiate the

price to make the changes and these changes/prices are recorded in the change order

document.


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Owner responsibility

To ensure quality, the owner must select an experienced EPC contractor. A third-party

or in-house consultant can verify the design of major structures and inspect the main

equipment installations. Changes in scope of work can affect project schedule, cost and risk.

Such changes are the responsibility of the owner.

SCOPE OF WORK

1.1 Contract Scope

1.1.1 The New Delhi Signature Store premise has been secured at a prime location on the

Inner Circle of Connaught Place, and comprises 3,500 Sqft. over two-levels. The

design concept represents a truly innovative environment, providing an interactive

experience for customers, including state-of-the-art lighting, AV and digital

technologies.

1.1.2 The Main Interior Fit-out Contract (MIFC) shall comprise all civil and interior fit-out,

custom fixtures and furniture’s, MEPF services and the attendance and/or

installation of the Client’s specialist supplied items. The MIFC shall take an overall

coordination role for the entire works, including other separate contracts which may

be let directly with the Client, which may include fixtures, fittings & equipments

(FF&E) installation, signage, digital, AV, security and specialist installation contracts.

1.1.3 The envisaged packages for the entire works are as follows:

Ref Contract/ Supply Item

Contract Packages

1 Main Interior Fitout Contract

(MIFC)

All Civil, Shell fit-out, and fixed furniture,

incl. MEPF services;


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Overall Coordination Role

Specialist Installations

2.1 'Heartbeat' Facade Façade Cladding

2.2 'Heartbeat' Colour Cloud

Chandellier

Lighting Feature

2.3 Staircase & Balustrade Specialist Internal Circular Stair

2.4 Tri-Graphic Wall Systems

Separate Contracts

3 Digital/AV Contract All Specialist digital and AV systems

4 Lighting Fixture Supply Supply only all specialist lighting (to be installed by

MIFC)

5 Signage & Graphics Contract All specialist signage’s, graphics and VM's

Client-Supplied Items

6 Specialist APL Finishes Specialist Finish Panels by APL Decorator

7 IT (Data/Voice) Equipments PC; POS; Server & Peripherals; PABX by APL

nominated vendor

8 Security Installation CCTV and access control by APL nominated vendor

9 Loose Furniture Non-custom loose furniture items

10 Misc Client-Procured FFE Operational/ Staff Equipments


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1.2 General Scope of Works

1.2.1 The Contractor shall be responsible for all matters relating to the fit out of the above

areas including but not limited to all civil works, interior fit-out works, building

services works, builders work in connection with services, temporary support,

protection to all existing facilities and new works (including those of other

contractors where specified), cleaning and rubbish removal, and handover of the

new facilities. This includes, but is not limited to, production of all required shop

drawings, programme schedules, record documents and operation and maintenance

manuals, as well as the compilation of all product warrantees and certificates and

other documentation required to complete the Works.

1.2.2 The Contractor shall provide all necessary materials, labour, plant, tools, equipment,

access equipment, transportation, site supervision, coordination of domestic and

other subcontractors, insurances, samples, mock ups and shop drawings, testing and

commissioning, and any other item required in full compliance with the tender

documents to complete the Works.

1.2.3 The Contractor shall fully comply with the all local authority, statutory and other

relevant legislation in connection with the Works. The proposed works shall obtain

NDMC approval/sanction (currently in process), and general liaison with NDMC shall

be managed by NEXUS in conjunction with the PMC. Copy of the NDMC approval

shall be provided to the Contractor, copy of which shall be maintained at site by the

Contractor. The Contractor is expected to facilitate the day-to-day process with any

NDMC inspection and local Delhi Police requirements.

1.2.4 The Contractor shall fully comply with statutory Heath, Safety and Environmental

(HSE) regulations, and further comply with any specific APL HSE policy (to be agreed).

1.2.5 Upon taking possession, the Contractor is required to secure the site by erection of a

full height hoarding along the frontage of the site (or by retention of the extisting

security shutter until such time this will be removed to install the façade cladding),

and provide necessary protection to all adjacent public areas and adjacent tenancies.


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1.2.6 The Contractor shall provide all described MEPF Services works under direct or sub-

contract with suitably qualified services sub-contractor(s). The details of any sub-

contract arrangements shall be disclosed in the Tender return.

1.2.7 The Client intends to separately engage specialist contractors to provide the

specialist installations listed in 2.1.3 above. The assembly and installation of such

installations may be provided by a third-party, or the Contractor may be requested to

provide the same for an additional fee. This shall be decided later, and the

Contractor should EXCLUDE ANY COSTS FOR ASSEMBLY AND INSTALLATION OF

SPECIALIST INSTALLATIONS in this Tender, other than the provision of support

(access, scaffolds; power; etc) and where described in the Bill of Quantities (BOQ),

provision of structural support framing, include the provisional sum allowances for

the same where described.

1.2.8 The Client shall supply all specialized equipment within the store unless otherwise

specified. The Contractor is therefore to allow for receiving, protecting, insuring, and

cleaning and rubbish removal of all such equipment. The assembly and installation of

such equipment may be provided by a third-party, or the Contractor may be

requested to provide the same for an additional fee. This shall be decided later, and

the Contractor should EXCLUDE ANY COSTS FOR ASSEMBLY AND INSTALLATION OF

CLIENT-SUPPLIED FIXTURES & EQUIPMENTS in this Tender.

1.2.9 It is intended to (later) tender a separate contract for all Signage and Graphics works

(for which the Contractor may be offered to bid). The Contractor shall allow for all

necessary access and support of this Separate Contractor, and for the general

coordination and scheduling of these works in this Tender.

1.2.10 It is intended to (later) tender a separate contract for all Security works (for which

the Contractor may be offered to bid). The Contractor shall allow for all necessary

access and support of this Separate Contractor, and for the general coordination and

scheduling of these works in this Tender.

1.2.11 The Contractor shall provide reasonable access and support for the third-party

installations listed in 2.1.3, plus any other Client-Supplied Items.


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1.3 Project Program

1.3.1 The tentative commencement date for the Works at site is 15th November 2012,

pending NDMC approval.

1.3.2 We schedule to award contract by 5th November 2012, and the preconstruction

period will allow for general site investigation and preparation, and the advance

production of required MEPF shop drawings and other sample submissions.

1.3.3 The target completion date for the substantial completion of the Shell Fit-out and

MEP Services Works is 31st December 2012, being approximately within 60-days of

the commencement of works at site. However, various third-party installations, in

particular the fixtures/furniture’s, digital installation and other Client supplied items,

is likely to continue beyond this date until end of Feb 2013, being approximately a

further 60-days, and the Contractor shall continue to provide site supervision and

coordination of these remaining works until final handover to Client. Target Final

Handover to the Client is 01st March 2013.

1.3.4 Time is of the essence, and the ability to demonstrate the earliest completion date

shall be a critical consideration in the selection of the Contractor. The Contractor is

therefore required to submit a detailed programme with their Tender to describe

their intended resourcing and scheduling to achieve this target completion date.

Once agreed, it is the Contractor’s responsibility to programme his work in co-

ordination with the Project Manager to ensure works are completed in all respect by

stipulated date.

2.0 CONDITIONS OF TENDER

2.1 Tender Documents

2.1.1 The Tender Documents issued include:

a) Invitation to Tender;

b) Conditions of Tender;


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c) Form of Tender;

d) General Conditions of Contract (GCC);

e) Particular Conditions of Contract (PCC);

f) Architectural Design Drawings and Specifications;

g) MEP Services Design Drawings and Specifications;

h) Bill of Quantities (BOQ);

i) Existing Premises Conditions Survey Drawings;

2.2 General Note to Tenderers

2.2.1 The Contractor is to study all the Tender Documents, and familiarize themselves with

the existing site conditions, to provide a full understanding of the scope of works.

2.2.2 All assumptions and exceptions must be stated clearly within the Tender.

2.2.3 Should the Tenderer be in doubt about the precise meaning of any item or figure, he

must inform the Project Manager, in writing, in order that the correct meaning may

be decided before the date for submission of Tenders.

2.2.4 No unauthorised alteration or erasure to the text of the Tender Documents will be

permitted. Any Tender containing such alteration or erasure may not be considered.

2.2.5 No liability will be admitted, nor claim allowed, in respect of errors in the

Contractor's Tender due to mistakes in the Tender Documents.

2.2.6 The Tenderer shall be deemed to have made allowance in his prices generally to

cover items of Preliminaries, expense in connection with Provisional Sums and other

items if these have not been priced against the respective items.

2.2.7 In the event of a Tenderer discovering a genuine error in his Tender after it has been

submitted, attention in writing may be drawn to the error and an amendment


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submitted which, provided that the amendment shall have been deposited on or

before the time fixed for receipt of Tenders, may be accepted.

2.2.8 The Tender Sum will be regarded as a lump sum and will not be amended for errors

found in the examination of Tenders. The following errors should they occur in the

tendered priced Schedules will be rectified and altered in red ink: -

a) The rate amended to agree with the quantity and the extension in the cash

column or the extension to agree with the quantity and the rate;

b) Errors in casting of cash columns;

c) Errors in carrying forward totals to collections or summaries;

The total error will be calculated as a plus or minus percentage of the corrected

Tendered Sum minus the corrected totals of Preliminary items and Provisional Sums

(if any) and will be applied to the tendered rates for the purposes of pricing

variations. If the percentage error is less than 0.50% no adjustment will be made.

2.2.9 All items of measured work shall be priced in detail and tenders containing lump

sums to cover trades or groups of work must be broken down to show the price of

each item before they will be accepted.

2.2.10 Should examination of a Tender reveal errors of such magnitude as in the opinion of

the Project Manager would involve the Tenderer in serious loss then the nature and

amount of such errors will be communicated to the Tenderer and he will be asked to

confirm in writing that he is prepared to abide by his Tender.

2.2.11 In the event of part of or any section of a Tender not being returned or being

returned un-priced or incomplete and not in accordance with the above then such

Tender may not be considered.

2.2.12 The Client shall not be responsible for, nor shall pay for, any loss or expense incurred

by the Tenderer in the preparation or submission of his Tender.


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2.2.13 Tenders shall be in Indian Rupees only.

2.2.14 Payments shall be made in the local currency which is Indian Rupees.

2.2.15 The Tenderer shall be deemed to be in possession of a valid business registration

certificate and, if necessary, be registered with the relevant Authority authorising

him to carry out the works described in the Tender Documents.

2.2.16 Tenderers are required to visit the Site and to make themselves thoroughly

acquainted with the location, general site conditions, accessibility, restrictions for

loading and unloading materials, etc. and other conditions which may affect their

Tender. The Tenderer will be deemed to have satisfied themselves as to the

conditions under which the works will be undertaken and have included all costs in

their tender. Arrangement for this is to be made through the Project Manager.

2.2.17 The Client is not bound to accept the lowest or any tender he may receive.

3.0 GENERAL CONDITIONS OF CONTRACT

3.1 FIDIC Construction Contract 1st Edition (1999 Red Book)

3.1.1 The Contract General Conditions shall be the “Conditions of Contract for

Construction for Buildings and Engineering Works Designed by the Employer”, First

Edition 1999, published by the Fédération Internationale des Ingénieurs-Conseils

(FIDIC). Reference copy is appended to this document.

3.1.2 These General Conditions will be altered and amended by the Contract Particular

Conditions as provided herein.

3.1.3 For purposes of definition, the following references within the contract documents

shall be deemed to be one and the same:

The ‘Employer’, may be elsewhere referred as the ‘Client’, being Asian Paints Limited

(APL)


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The ‘Engineer’ may be elsewhere referred as the ‘Project Manager’ being Design and

Projects Consultant Pvt. Ltd. (DPC)

4.0 PARTICULAR CONDITIONS OF CONTRACT

The General Conditions of Contract will be altered as set out below

1 GENERAL PROVISIONS

Sub-Clause 1.1.2.9 “DAB”:

“DAB means the Engineer acting under Sub-Clause 20.4”.

Sub-Clause 1.1.6.7 “Site”:

“The Site is generally known as Asian Paints Colours Signature Store, Unit A3, Inner

Circle, Connaught Place, New Delhi”

Sub-Clause 1.2 Interpretation:

“In these Conditions, provisions including the expression “Cost plus reasonable

profit” require this profit to be 15% of this Cost.”

Sub-clause 1.3 Priorities of Documents:

“Within 14 days of issue of the Letter of Acceptance, the Contractor will request the

Engineer in writing for clarification of any ambiguity, discrepancy or inconsistency

identified by the Contractor in relation to the Contract documents.

The Engineer will issue an instruction to the Contractor as to the interpretation to be

followed in reference to the ambiguity, discrepancy or inconsistency. This instruction

will not constitute a variation nor entitle a claim for a variation or extension of time

to the Time for Completion.


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Failure by the Contractor to notify the Engineer within 14 days of the Letter of

Acceptance of any ambiguity, discrepancy or inconsistency in the documents will

preclude the Contractor from making a claim for a variation or extension of time in

relation to the ambiguity, discrepancy or inconsistency.”

NOTE:

Sub-clause 1.7 Assignment:

DPC consider no problem with this clause as per FIDIC general condition.

This clause refers that neither party shall assign its responsibilities under the contract,

except with sole agreement of the other – this is reasonable.

APL to provide any additional clause required for review

Sub-Clause 1.9 Delayed Drawings or Instructions:

“Within 14 days of receipt of the Letter of Engagement, the Contractor shall submit

a schedule of drawings and other information he considers necessary to undertake

the work, with a date nominated for each piece of information by which the

information is required to be provided to enable the Contractor to undertake the

Works.” “Further, if the Contractor has failed to provide adequate notice as defined

in this Sub-Clause for the need for the information, the Contractor shall not be

entitled to such extension of time, Cost or profit.”

Sub-Clause 1.10 Compliance with Laws:

“Contractor to comply with all laws inter alia labour, civil, municipal, tax, insurance,

construction etc. as may be necessary to carry out the purported works under this

contract”

“The Contractor shall ensure compliance/implementation of all the labour laws,

statutes, rules and regulations of the appropriate State/Central Government and


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other Authorities, which are applicable including but not limited to the provisions of

the Minimum Wages Act, 1948, Payment of Wages Act, 1936, Payment of Gratuity

Act, 1972, Industrial Disputes Act, 1947, Employees Provident Fund and

Miscellaneous Provisions Act, 1952, Employee State Insurance Act, 1948, Workmen’s

Compensation Act, 1923, the Contract Labour (Regulation and Abolition) Act, 1970,

etc., and the municipal regulations. In the event of failure to comply with any of the

statutory obligations by the Contractor as aforesaid and if the Company is held

responsible for the same, the Contractor undertakes to make good the loss to the

Owner. The Contractor shall bear all responsibility and indemnify the Owner against

any accident, death and/or injury caused to any employees of the Contractor or any

of its vendors, contractors, subcontractors or to any third party and/or its employees

caused or suffered in the course of the execution of the scope of work and

performance of obligations hereunder. The Contractor shall indemnify and keep the

Owner harmless and indemnified against any claims, loss or damage in this regard

including claim, loss or damage on account of any non-compliance of statutory or any

non-statutory provisions and also for non-compliance of statutory requirements in

this regard.”

Sub-Clause 1.11 Confidentiality:

“The Contractor shall treat the details and the terms and conditions of the Contract

as private and confidential, except to the extent necessary to carry out obligations

under it or to comply with applicable Laws. The Contractor shall not copy, publish,

permit to be published, or disclose any particulars of the Works or the Project in any

press, trade or technical paper or elsewhere without the previous agreement of the

Employer. The Contractor shall refer to the Employer any inquiries concerning the

Project from any media.”

SIGNING OF NON-DISCLOSURE AGREEMENT


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In consideration of the disclosure of Proprietary Information by the Tenderers,

the Receiving Party hereby agrees: (i) to hold the Proprietary Information in strict

confidence and to take all reasonable precautions to protect such Proprietary

Information (including, without limitation, all precautions the Receiving Party

employs with respect to its own confidential materials), (ii) not to disclose any such

Proprietary Information or any information derived there from to any third person,

(iii) not to make any use whatsoever at any time of such Proprietary Information

except to evaluate internally its relationship with the Disclosing Party, and (iv) not to

copy or reverse engineer any such Proprietary Information. The Receiving Party shall

procure that its employees, agents and sub-contractors to whom Proprietary

Information is disclosed or who have access to Proprietary Information sign a

nondisclosure or similar agreement in content substantially similar to this Agreement

Editions of Documents:

“Acts, Statutes, Local Regulations, Codes, Standards and Manufacturers

Recommendation referred to herein shall mean the latest edition at the date of the

execution of the Contract and amendments unless a specific edition is referred to.”

2 THE EMPLOYER

Sub-Clause 2.1 Right of Access to the Site:

“Access to the Site”

Access is restricted to the gates nominated on the Site plan as construction access.

No access will be allowed via other routes unless specifically approved in writing by

the Engineer.

Unauthorised access to the Site compound is a serious breach of security and the

Employer will be entitled to terminate the Contract as provided for in Sub-Clause

15.2.


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Sub-Clause 2.2 Permits, Licences or Approvals:

The contractor to get all the necessary statutory approval from the competent

authorities. The Contractor is to determine the requirements under the Indian

Government regulations and comply with them, arranging all certificates and

clearances prior to, and subsequent to, arrival in the country and paying associated

costs. The requirements and lead times for the Contractor to obtain travel permits/

visas, will be the full responsibility of the Contractor and will be deemed to have

been included in the Accepted Contract Amount. “The Contractor is to comply with

the Indian Government’s regulations with regard to issue and currency of work

permits.

3 THE ENGINEER

Sub-Clause 3.1 Instructions of the Engineer:

“Any objection by the Contractor to an instruction issued by the Engineer or his

delegated assistant must be in writing and given to the Engineer (with supporting

particulars of the objection) within 7 (time to be reviewed) days of the date of issue

of the Engineer’s instruction. If the Contractor does not object to the instruction

within the time period stated, the Contractor shall not object to the Engineer’s

instruction.”

Sub-Clause 3.2 – Management Meetings

“The Engineer or the Contractor’s Representative may require the other to attend a

management meeting(s) in order to review progress and the arrangement for future

work. The Engineer shall record the business of management meetings and supply

copies of the record to those attending the meeting and to the Employer. In the

record, responsibilities for any actions to be taken shall be in accordance with the


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Contract.” In case of contractors representatives do not attend the meetings;

Engineer keeps the right to impose the penalty.

4 THE CONTRACTOR.

Sub- Clause 4.1 Drawing Copies

The contractor shall provide the operation and maintenance manuals also

along with the as built drawings in the hard copied as well as soft copies. The

disbursement of the final dues is subjected to receiving of the comprehensive project

close out report as directed by the Project Manager

Sub-Clause 4.2 Performance Security:

“Without limitation to the provisions of the preceding paragraph, whenever the

Engineer determines an addition to the Contract Price as a result of a change in cost

and/or legislation or as a result of a Variation amounting to more than 25 percent of

the portion of the Contract Price payable in a specific currency, the Contractor at the

Engineer’s written request, shall promptly increase the value of the performance

security in that currency by an equal percentage. The performance security of a joint

venture shall be in the name of the joint venture.” “The Employer shall return the

bank guarantee within 21 days of the issue of the Taking over Certificate for the

Works.

Sub-Clause 4.3 Contractor’s Representative:

“If approval of the Contractor’s Representative is withdrawn by the Engineer, the

Contractor shall, as soon as is practicable, having regard to the requirement of

replacing him as hereinafter mentioned, after receiving notice of such withdrawal,

remove the Contractor’s Representative from the Works and shall not thereafter


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employ him again on the Works in any capacity and shall replace him by another

representative approved by the Engineer.”

Sub-Clause 4.4 Setting Out:

“The Contractor shall be responsible for the correct positioning of all parts of the

Works, and shall rectify any error in the positions, levels, dimensions or alignment of

the Works.”

The Employer will provide the following datum points:-

One set of northing and easting coordinates adjacent to

One level datum adjacent to

One set of northing and easting coordinates adjacent to the existing

One level datum adjacent to the existing

One set of northing and easting coordinates

One level datum

The Contractor shall employ a licensed surveyor to verify the accuracy of the points

provided by the Employer and to set out the Works and shall, within days from the

receipt of the Letter of Engagement, notify the Engineer of any discrepancy between

the datum points provided by the Engineer,

The Contractor shall not be entitled to an extension of time or variation if the

Contractor has failed to notify the Engineer within the time stipulated in this Sub-

Clause of any discrepancy with the datum points provided by the Employer.

The Contractor shall not rely on the accuracy of lines, levels and datum provided by

other contractors and shall at all times refer to the datum and level provided by the

Engineer.

Any Work constructed to incorrect lines or levels shall either be demolished and

replaced in the correct position by the Contractor without additional time or cost or

shall remain and any costs incurred in making good other Contractor’s work or

additional work required to remedy the error in setting out will be deducted from

the Contractor.


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Sub-Clause 4.5 Safety Procedures:

“The Contractor has a paramount obligation to ensure the safety of all workers on

Site as well as staff, residents, workers and visitors to the Site.”

The Contractor shall provide a fully detailed Site Safety Plan to the Engineer within 7

days of the Commencement Date. Such Plan shall be amended and revised as

directed by the Engineer. The performance and compliance with the Plan shall be

reported under Sub-Clause 4.21 [Progress Reports].

The Engineer will be entitled to order additional safety requirements as he deems

necessary to ensure the safety of all workers on Site as well as residents, workers and

visitors to the Site.

The Engineer will deduct the costs from the Contractor’s interim payment or

retention amount for any Works ordered by the Engineer necessary to maintain the

Contractor’s safety obligations.”

Sub-Clause 4.6 Protection of the Environment:

“At least 5 days prior to commencement of Works on Site, the Contractor shall

submit a Site-specific Environmental Management Plan to the Engineer for approval.

Works on Site shall not commence until the Environmental Management Plan is

approved by the Engineer.”

Sub-Clause 4.7 Electricity, Water and Gas:

“The supply of electricity shall be facilitated by the Client as per requirement of the

project. However, as a measure of continuity and unexpected break-down, “The

contractor shall park and reserve his own Diesel Generator (DG) set for electrical

power at site as per his requirement for construction. The use of same per hour basis

shall be monetarily taken care by the client”


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Contractor shall take responsibility to safe guard the client supplied electrical

Generator, Transformer or fitment and to make sure of use of all statutory approved

electrical appliance, equipments and carriers.

The Contractor is to provide reticulation and additional connections and supplies as

necessary to carry out the Works.

The Contractor shall make all electrical connections in accordance with Indian

Standard Wiring Rules” and in consultation with the Engineer.

The Contractor shall remove and make good all such temporary supplies and

extensions at the completion of the Works.

The Contractor shall make good all distribution boards, outlets fixed points and the

like.

The Contractor shall meet all the cost of all additional connections and temporary

service modifications

The Contractor shall meet all the cost of the temporary telephone/fax/internet

connections.

The cost of all telephone calls/faxes/internet charges to the Contractor’s Site office is

to be borne by the Contractor.”

Sub-Clause 4.8 Progress Reports:

The Contractor shall also maintain a comprehensive daily Site diary that shall be

available for access by the Engineer upon request. This diary shall include (but not be

limited to) recording of the following information:

Weather including precipitation

Labour (no. of persons on Site)

Materials

Equipment

Visitors to Site

Site meetings

Safety incidents (including all injuries) on Site”


NICMAR-SODE/PGPM-14

Sub-Clause 4.9 Contractor’s Operations on Site:

The Contractor will do all things necessary to avoid dust and fumes leaving the Site,

including providing protective screens and sheets, extraction equipment, applying

water to dampen the Site and work area.

The Employer will be entitled to clean up any debris left by the Contractor or

undertake work to minimise dust and fumes and shall deduct the cost of labour and

materials necessary to perform the work on behalf of the Contractor.” “The

Contractor shall comply maintain the Site in a clean and orderly manner and shall on

a twice daily basis clean all rubbish and excess materials to the nominated rubbish

points at ground level.

Sub-Clause 4.10 Import Duty and VAT Exemption:

“All exemptions, reductions or the like obtained by the Contractor or by the

Employer in relation to import duty or VAT shall be deducted from the Contract

Price.

Contractors found abusing the diplomatic import duty procedures will be referred to

the relevant authorities for their further action. The Employer will be entitled to re-

import the same or new goods and all costs for the original and re-imported goods

will be borne by the Contractor.”

Contractor shall share all internal purchase order and delivery dates related to the

project with the Project Manager

Sub-Clause 4.11 Parent Company Guarantee:

“Where the Contractor is a wholly owned subsidiary of another corporation, the

Employer may require the parent corporation to guarantee the obligations of the

Contractor under this Contract in a form reasonably required by the Employer. The


NICMAR-SODE/PGPM-14

form of guarantee set out in Annex A to these General Conditions of Contract is

acceptable to the Employer.”

Sub-Clause 4.12 Employer’s Audit:

“The Contractor must give to the Employer, the Engineer or to any representatives

and employees authorised in writing by the Employer, access to premises occupied

by the Contractor and permit those persons to inspect and take copies of any

material relevant to the carrying out of the Works.

The rights referred to in this Sub-Clause 4.27 are subject to:

(a) The provision of reasonable prior notice by the Employer;

(b) The Contractor’s reasonable security procedures; and

(c) if appropriate, execution of a deed of confidentiality relating to non-disclosure

of the Contractor’s confidential information.

Without in any way affecting the statutory powers of the Auditor-General under the

Auditor-General Act 1997 and subject to the provisions of that Act, the Auditor-

General is a person authorised for the purposes of this Sub-Clause.”

Sub-Clause 4.13 Privacy:

“This Sub-Clause applies only where the Contractor:

(a) Deals with personal information when, and for the purpose of, carrying out the

Works;

In this Sub-Clause, the terms ‘agency’, ‘approved privacy code’ (APC), ‘Information

Privacy Principles’ (IPPs), and ‘National Privacy Principles’ (NPPs) and ‘personal

information’ have the meaning given to them in section 6 of the Privacy Act.

The Contractor acknowledges that it is a ‘contracted service provider’ within the

meaning of section 6 of the Privacy Act, and agrees in respect of the carrying out of

the Works under this Contract:


NICMAR-SODE/PGPM-14

(a) To use or disclose personal information obtained during the course of carrying

out the Works only for the purposes of this Contract;

(b) Not to do any act or engage in any practice that would breach an IPP which if

done or engaged in by an agency, would be a breach of that IPP;

(c) To carry out and discharge the obligations contained in the IPPs as if it were an

agency under the Privacy Act;

(d) To notify individuals whose personal information the Contractor holds, that

complaints about acts or practices of the Contractor may be investigated by the

Privacy Commissioner who has power to award compensation against the Contractor

in appropriate circumstances;

(d) To notify the Employer immediately if the Contractor becomes aware of a

breach or possible breach of any of the obligations contained in, or referred to in,

this Sub-Clause, whether by the Contractor or any subcontractor; and

(e) To ensure that any employee of the Contractor who is required to deal with

personal information for purposes of this Contract is made aware of the obligations

of the Contractor set-out in this Sub-Clause.

The Contractor agrees to ensure that any subcontract entered into for the purpose of

fulfilling its obligations under this Contract contains provisions to ensure that the

Sub-contractor has the same awareness and obligations as the Contractor has under

this Sub-Clause, including the requirement in relation to subcontracts.

Sub-Clause 4.14 PROTECTIONS OF THE WORKS:

“The Contractor is responsible for protection of the Works and shall make good and

any damage that occurs to the Works up until the Employer has taken over the

Works under Clause 10. The Engineer may elect to order or arrange for additional

protection if the Engineer considers the Works are not being properly protected, and

all costs incurred by the Engineer will be paid for by the Contractor.”

6 STAFF AND LABOUR


NICMAR-SODE/PGPM-14

Sub-Clause 6.1 Working Hours

The Contractor should note that certain cultural practices may impact on the

attendance of any local workers employed on the Project or operation of local

business. The Contractor shall be deemed to have made due allowance in the

Accepted Contract Amount for local practices and no extension of time will be

granted for delays relating to local labour practices.

If special permission is required to undertake certain parts of the Works (e.g.

demolition) it should be sought from the Engineer on Site a minimum of two weeks

in advance.

The public holidays observed by the Engineer are to be treated as Sundays in terms

of permissible working hours. The Accepted Contract Sum is deemed to have

included for this condition.

Working hours shall be subject to the requirements of the Embassy and its

operations. Some weekend or night work may be prevented from time to time due to

Embassy operational constraints. “Due to the local guidelines for areas within

Connaught Place the following working hours will apply:

Generally: 24 hrs/ round the clock/ in three shifts 7 days a week

Specific conditions include:

Quiet work is permitted at any time within the permissible working hours.

Weekdays. Noisy work includes work involving percussive tools such as scrabbles

and hammer-drills. It may also include the relatively quieter but still noise-

emitting tool operations such as drilling, saw-cutting, grinding, sanding,

hammering, etc, noting that some of these works will take place close to tenanted

areas. Liaison with tenants through the Engineer may be required when such


NICMAR-SODE/PGPM-14

works are contemplated. The definition of “noisy work” to be agreed between the

Contractor and the Engineer.

The above working hours constraints shall not be a reason in support of a claim for

any extra payment or for an extension of time.

Sub-Clause 6.2 Health and Safety:

“The Contractor shall satisfy all current Indian legislation with respect to the health

and welfare of all workers. The Contractor shall demonstrate safe and effective

procedures for all operations to be carried out during the course of the Works and

must comply in all respects to the requirements of the “Minimum Construction Site

Safety Standards.”

Sub-Clause 6.3 Contractor’s Superintendence:

The Contractor shall use the same team of key personnel throughout the execution

of the Works.

The key personnel named in the Tender schedule shall not be replaced unless:

the Engineer approves the proposed substitute;

an instruction is given by the Engineer pursuant to Sub-Clause 6.9 of the

Conditions of Contract; or;

that person suffers from ill health, dies or other serious circumstances arise which

prevent the person continuing to work on the project, retires or whose

employment is terminated (other than to accept other employment with the

Contractor or any other associate of the Contractor), or that person’s section of

work under the Contract has been completed

Any vacancy of key personnel shall be promptly filled by the Contractor with a person

approved by the Engineer.”

“The Contractor’s supervision personnel shall not do tradesman’s or labourer’s work

to the detriment of overseeing the correct execution of the Works.


NICMAR-SODE/PGPM-14

Sub-Clause 6.4 – Foreign Staff and Labour:

“The Contractor may import any specialised personnel who are necessary for the

execution of the Works, in accordance with the Laws of the Country. The Contractor

must ensure that these personnel are provided with the required residence visas and

work permits. The Contractor shall be responsible for the return to the place where

they were recruited or to the domicile of imported Contractor’s Personnel. In the

event of death in the Country of any of these personnel or members of their families,

the Contractor shall similarly be responsible for making appropriate arrangements

for their return or burial.”

Sub-Clause 6.5 - Alcoholic Liquor or Drugs:

“The carriage onto Site and the use on Site of alcohol or drugs is strictly prohibited.

No persons are to enter the Site intoxicated by alcohol or drugs and any persons

caught on Site affected by drugs or alcohol will be permanently barred from the

Site.”

Sub-Clause 6.6 - Arms and Ammunition:

“The Contractor shall not bring onsite any arms, explosives or ammunition of any

kind, or allow Contractor’s Personnel to do so without the written permission from

the Engineer.”

7 PLANT, MATERIALS AND WORKMANSHIP.

Sub-Clause 7.1 Manner of Execution:


NICMAR-SODE/PGPM-14

“The Contractor shall prepare and offer to the Engineer for approval all necessary

samples, shop drawings, prototypes, mock-ups, to demonstrate the scope and

quality of work proposed to be undertaken by the Contractor.

The contractor shall make all arrangements for working at heights safe in nature and

certified by engineer.

The contractor shall made adequate arrangement for toilets at site and should be

responsible for housekeeping of the complete area on daily basis.

The Contractor is to submit a list of samples, shop drawings, prototypes, and mock-

ups to the Engineer for the Engineer’s approval within 14 days of receipt of the Letter

of Acceptance.

The Engineer may from time to time request further samples, shop drawings,

prototypes, and mock-ups as are deemed necessary by the Engineer.

The Contractor is to submit all samples, shop drawings within 28 days after receipt of

the Letter of Acceptance or 14 days after receipt of an instruction from the Engineer

to provide additional samples, shop drawings, prototypes, and mock-ups.

8 COMMENCEMENT, DELAYS AND SUSPENSION.

Sub-Clause 8.1 Program:

“The Contractor shall update and resubmit the programme for approval, including

any additional explanation or amplification as and when required by the Engineer.

The Contractor shall comply with all such requests within 7 calendar days from the

date requested by The Engineer.”

In the event the Contractor fails to comply with the Engineer’s request to update,

explain or amplify the programme, then The Engineer will be entitled to update the

Contractor’s programme and deduct the costs for time incurred preparing, reviewing

and agreeing the Contractor’s programme. The costs incurred by The Engineer will be

charged at the following rates and deducted from The Contractor’s interim payment

or Retention Monies:


NICMAR-SODE/PGPM-14

Hourly rate for Project Director/Construction Director: INR. 10,000 per hour

Hourly rate for General Manager: INR. 8,000 per hour

Hourly rate for Senior Project Manager/Project Manager: INR. 1,000 per hour

The above rates may/ shall be reviewed

The Contractor’s programme must identify every activity having a duration of two

days or more.

The Contractor shall update and resubmit the programme for approval, including any

additional explanation or amplification as and when required by the Engineer. The

Contractor shall comply with all such requests within 7 calendar days from the date

requested by The Engineer.

Sub-Clause 8.2 - Cash Flow Estimate to be submitted:

“The Contractor shall, within 14 days of the Commencement Date, provide to the

Engineer for his information a detailed cash flow, in monthly periods, of all payments

to which the Contractor will be entitled under the Contract, and the Contractor shall

subsequently supply revised cash flow estimates at monthly periods, if required to do

so by the Engineer. These cash flow estimates shall not form the basis of any

schedule of payments.”

9 MEASUREMENT AND EVALUATION.

Sub-Clause 9.1 Method of Measurement:

“All measurement of work for the purpose of the Contract shall be in accordance

with the Indian Standard of Measurement of Building Works current at the closing

date of Tenders.”

“Along with the monthly claims of bills (Hard copy as well as soft copy), the

contractor shall provide all the above mentioned supporting documents in the

prescribed format by the Engineer.


NICMAR-SODE/PGPM-14

The contractor shall depute the officials and provide all necessary assistance to the

Engineer to check the materials/ measurements at site/bills/claims etc.”

10 VARIATIONS AND ADJUSTMENTS.

Sub-Clause 10.1 Variation Procedure

“Upon instructing or approving a Variation, the Engineer shall proceed in accordance

with Sub-Clause 3.5 to agree or determine adjustments to the Contract Price and to

any schedule of payments under Sub-Clause 14.4. These adjustments shall include

reasonable profit, and shall take account of the Contractor’s submissions under Sub-

Clause 13.2 if applicable.”

Sub-Clause 10.2 Payment in Applicable Currencies:

“All payments of the Contract Price will be in the single currency of the Contract,

unless specifically stated otherwise in the Contract Agreement.”

Sub-Clause 10.3 Provisional Sums:

“Provisional Sums for items to be supplied, fixed or supplied and fixed include an

allowance for the Contractor’s profit and for co-ordination of, supervision of and

general attendance upon Sub-contractors.”

Sub-Clause 10.4 Adjustments for Changes in Legislation:

“Notwithstanding the provisions of this Sub-Clause, no extensions of time or

increase in costs will be granted to the Contractor for changes in Laws that result in

an increase in the cost of petrol, diesel or electricity, or that result in an increase in

the cost of supply of Materials due to a change in Law that increases the cost of

petrol, diesel or electricity.”


NICMAR-SODE/PGPM-14

Sub-Clause 10.5 Adjustments of the Changes in Cost:

“There shall be no adjustment in the Contract Price for rise and fall in the cost of

labour, Materials or any other matters affecting the cost of execution of the

Contract, or any adjustments whatsoever on account of exchange rates or for

variation of any costs other than specifically allowed for under the Contract.”

11 CONTRACT PRICE AND PAYMENT.

Sub-Clause 11.1 Contract Price:

“The Contract Price shall be Item Rate Re-measurable and be subject to adjustments

in accordance with the Contract;”

Sub-Clause 11.2 Application for Interim Payment Certificate:

“The Engineer may require the Contractor to submit the applications for Interim

Payment Certificates electronically via the internet. The Contractor shall ensure he

has access to the necessary computer hardware, high speed modem and internet

browser to enable submission of applications for Interim Payment Certificates.

Supporting documents maybe submitted either electronically or in hard copy as

determined by the Engineer.”

Sub-Clause 11.3 Issue of Interim Payment Certificate

“No amount will be certified or paid until the Engineer has received and approved:

(i) the Performance Security in accordance with Sub-Clause 4.2 [Performance

Security]; and

(ii) where requested, the parent company guarantee from the ultimate parent

company in accordance with Sub-Clause 4.26 [Parent Company Guarantee];

(iii) the advance payment guarantee in accordance with Sub-Clause 14.2; and


NICMAR-SODE/PGPM-14

(iv) a satisfactory statement from the Contractor that all of the Contractor’s

Subcontractors and employees have been paid up to date, and that all

entitlements have been paid or provided for.”

Sub-Clause 11.4 Payment of Retention Money:

“When the Taking-Over Certificate has been issued for the Works, Bank Guarantees

provided by the Contractor as Performance Security under Sub-Clause 4.2

[Performance Security] shall be certified by the Engineer for return to the Contractor.

Amount of 5% deducted from Contractor’s payments as retention money shall be

retained until completion of Defects Liability Period of 12 months from date of

Taking Over Certificate provided by the Engineer, however, the contractor can

provide the Bank Guarantee of equal amount valid until completion of Defects

Liability Period in lieu of the 5% cash retention.”

Sub-Clause 11.5 Statement of Completion:

“The contractor shall submit the necessary documents like operation and

maintenance manuals, as built drawings etc with the sufficient no. Of copies with a

soft copy also to the engineer.” And within 10days completion certificate will be

issued considering Employers satisfaction.

Sub-Clause 11.6 Discharge:

A pro-forma Letter of Discharge is attached at Part C4, Item 4 to the Particular

Conditions of Contract.

12 CLAIM, DISPUTES AND ARBITRATION.

Sub-Clause 12.1 – Obtaining Dispute Adjudication Board’s Decision


NICMAR-SODE/PGPM-14

“The Engineer shall act as the DAB in accordance with this Sub-Clause 20.4, acting

fairly, impartially and at the cost of the Employer. In the event that the Employer

intends to replace the Engineer, the Employer’s notice under Sub-Clause 3.4 shall

include detailed proposals for the appointment of a replacement DAB.”

Sub-Clause 12.2– Rights not affected

“Nothing in this Clause 20 shall be construed as preventing a Party from:

(a) Seeking urgent interlocutory or injunctive relief; or

(b) Terminating this Contract under Sub-Clauses 15.2, 15.5 or 16.2.”

5.0 APPENDIX TO TENDER

5.1 Schedule of Contract Particulars

5.1.1 The following schedule describes the contractual and financial particulars required

under Contract, and which shall be included within the Appendix to the FIDIC form:

Commencement Date The tentative award date is 25th October 2010, and tentative

commencement date for the Works at site is 01st November 2010.

The work shall commence within 7-days of issuance of a Letter of

Acceptance (LOA).

Completion Date The target completion date for the substantial completion of the

Shell Fitout and MEP Services Works is 31st December 2010, being

approximately within 60-days of the commencement of works at

site. However, various third-party installations, in particular the

fixtures/furnitures, digital installation and other Client supplied

items, is likely to continue beyond this date until end-Feb 2011,

being approximately a further 60-days, and the Contractor shall

continue to provide site supervision and coordination of these


NICMAR-SODE/PGPM-14

remaining works until final handover to Client.

Target Final Handover to the Client is 01st March 2011. The work

shall be treated as completed upon the successful handover of the

site and necessary documents to the client.

The actual completion date shall be mutually agreed after

consideration of the Contractor’s detailed construction

programme prior to Contract award.

Tender Security (Earnest Money) Rs. 1,00,000/- (Rupees One Lacs Only) as a Demand Draft / Pay

Order in favor of Asian Paint Limited payable at New Delhi.

Advance Payment (Mobilization

Advance)

10% of contract value against bank guarantee of equivalent amount

valid till the completion of the work. The completion of the work

shall be considered upon the completion letter issue by the Client.

Performance Security

(Performance Bond)

For the value of 5% of the contract value in the form of scheduled

bank guarantee to be submitted up on issue of the order and valid

till 30 days after the expiry of defects liability period, in approved

format as acceptable to Project Manager/ Client.

Interim Claims One claim per month subject to the amount being at least 30 % of

the Contract Value and shall be addressed to Project

Manager/Client The claims shall be submitted to the Project

Managers along with all supporting documents. The date of

receipt of the bills shall be the date when all supporting

documents of the errorless bill are submitted.


NICMAR-SODE/PGPM-14

Retention Money 5% of the value of work done in each interim bill up to a maximum

of 5% of total adjusted contract value.

Release of Retention The retention money shall be returned upon the expiry of defect

liability period. The same can be paid on the completion of the work

against the bank guarantee of equivalent amount in favour of the

client.

TaxDeducted at Source Tax, including Works Contract Tax (WCT), shall be deducted at

source, as applicable, in accordance with the statutory

requirements from all payments made to the Contractor, including

that in respect of the Mobilization advance, if paid.

Delay Damages (Liquidated

Damages)

Rs. 50,000/- per day subject to a maximum of 5% of the contract

value.

Defect Notification Period

(Defect Liability Period)

12-months from the date of completion.

Period of Final Claim Final Claim shall be submitted within 1-month of completion of

works.


NICMAR-SODE/PGPM-14

Organisational Chart from Employer:

Senior Project Manager:

The Senior Project Manager gives the directive and is the final authority for approvals for

the Project for all the issues related to technical and financial matters. He also has the power

to sanction the financial approval for the resolved discrepancies etc. which is amounting to

the excess cost of the project than the estimated cost.

MANAGER (Contracts Administration)

The function of a Manager (Contracts) is to regularise the work flow in the project. He forms a planning department under which all the essentials of the project are

been maintained and recorded. The Manager (Contracts) being the head of the planning department has to keep

up the above mentioned functions. He is assisted by:

Quantity Surveyor:

Preparing and checking Bills of Quantity related to all civil, interior, MEP relatedwork on site.

Manager(Services)

Manager(Procurement)


NICMAR-SODE/PGPM-14 Page 36











Quantity Surveyor:


Senior Project Manager

Manager(Procurement)

Manager (Co-Ordinatio)

AssistantManager(Interior)

ProjectEngineer(Service)













Quantity Surveyor:


Manager(Contracts)

QuantitySurveyor


NICMAR-SODE/PGPM-14

MANAGER (Procurement)

The commercial Manager looks after finance, administration and HR relatedwork

Site Legal matters and General books of account maintenance Subsidiary records and Financial reports Billing and Payment of invoices Personnel records, Payrolls and records Wage and personnel reports to public agency

Manager- Service (MEP)

He will be responsible for all Service related work on site. Service work is very criticalhere as lot of co-ordination is required between electrical and lighting vendor.

Manager (Co-ordination):

He will be senior manager who will be responsible for co-ordination for all the activityon site. He should be specialized in sequencing of activity and planning schedule ofactivity over site. He will be assisted by:

Assistant Manager:

He will be reporting to Manager (Co-Ordination) and reporting all the site activitiesrelated to services. He has to prepare all site reports, progress reports etc.

Project Engineer (Service)

He has to deliver multiple roles for reporting as he has to work under Manager(Services) and also adhere instruction from Manager (Co-ordination) for site activityrelated to services.


NICMAR-SODE/PGPM-14

Organisation Chart for Contractor

Director:

The director of the company is the Proprietor and reserves all the final rights of theactivities of the company. He is the decision making authority in participation for thetenders and quoting the rates for the concerned works. He does make the policy decisionin a broader perspective for the activities and the growth of the Company.

Project In-Charge:

It is the Key Co-ordinator between the Client and the management of the Company.He has to Co-ordinates regularly with the Manager (Co-ordination) of Employer/Clientteam for all the activity pertaining to the progress of the project. He is the person whocommunicates all the matters to the client on behalf of the Contractor. He is the soleresponsible person for the progress and quality of construction of the Project. He has tomake periodical schedules and plan for the resources like material and man-power.

Site Engineer (Interior):

He will be permanent site staff who had to look after all the interior related work onsite. He has to report to Project-in Charge. His responsibilities include estimation ofquantities for interior work, sequencing of activity, site staff supervision etc

Site Engineer(Interior)

Site Supervisor




Director:


Project In-Charge:




Director

Project In-Charge

Site Engineer(Interior)

Site Supervisor Site Supervisor(Marketing)

Site Engineer(Services)

Site Supervisor




Director:


Project In-Charge:




Site Engineer(Services)

Site Supervisor


NICMAR-SODE/PGPM-14

Site Engineer (Services):

He will be also permanent site staff who had to co-ordinate with Manager Servicesand his Project-In Charge. His responsibilities include estimation of quantities for MEPWork, sequencing of activity for High Side, Low Side, Electrical, Plumbing work.

Recommendations and Conclusion:

The above concludes the mode of operations undertaken within a FIDIC environmentand having a well executed EPC Contract placed between Asian Paint (Client) and itsstakeholder responsible for the complete project delivery. The body of contract explainsabout throws light on specific issues majorly important points of construction, paymentterms, quality norms, technology and knowledge transfer. In parallel, the mean of EPCintends to empower the hierarchy top down bottom organizational structure, its functionand authority of each person. The scope definition is well audited under EPC form ofContract management with FIDIC Administration. Whilst EPC Cater the basic need of thefulfilment of the clients requirement, FIDIC deals with more technical reasons ofcontentions like ambiguity, classification, dispute etc and various ways and means ofsettlement majorly DAB, EOT, IPC etc.

Bibliography:

"Best Practices in Contract Management: Strategies for Optimizing Business Relationships<".Aberdeen Group. Retrieved 2008-07-10.

"Contract Management: Optimizing Revenues and Capturing Savings". Aberdeen Group. May2007. Retrieved 2008-07-10.

“Contact Management in Civil Works and Project” by V.A Prakash, NICMAR Publication.