Sample 48859
Sample 48859
CONTRACTS
AND
ACCOUNTS
(22601)
For
Semester - VI
As Per MSBTE's ‘I’ Scheme Syllabus
Third Year Diploma in Civil Engineering Group
MUKESH N. GANGRADE
M.E. (Civil), B.E. (Civil), AMIE, C.E., ISTE (LM), ISH, NSFMFP
H.O.D. Civil Engineering Department,
Vidyavardhini’s Padmshri Bhausaheb Vartak Polytechnic,
Vasai Road (W), Pin : 401 202
Dist. : Palghar
Price ₹ 170.00
N4733
Contracts and Accounts (Civil Engg. Group) ISBN : 978-93-89944-12-9
First Edition : December 2019
© : Author
The text of this publication, or any part thereof, should not be reproduced or transmitted in any form or stored in any computer storage system or device for
distribution including photocopy, recording, taping or information retrieval system or reproduced on any disc, tape, perforated media or other information storage
device etc., without the written permission of Author with whom the rights are reserved. Breach of this condition is liable for legal action.
Every effort has been made to avoid errors or omissions in this publication. In spite of this, errors may have crept in. Any mistake, error or discrepancy so
noted and shall be brought to our notice shall be taken care of in the next edition. It is notified that neither the publisher nor the author or seller shall be
responsible for any damage or loss of action to any one, of any kind, in any manner, therefrom.
Published By : Printed By :
NIRALI PRAKASHAN SHREE OM PRINTERS PVT. LTD.
Abhyudaya Pragati, 1312, Shivaji Nagar Survey No. 28/25, Dhayri Near Pari Company
Off J.M. Road, PUNE – 411005 Pune - 411 041
Tel - (020) 25512336/37/39, Fax - (020) 25511379 Tel - (020) 24690371
Email : niralipune@pragationline.com
➢ DISTRIBUTION CENTRES
PUNE
Nirali Prakashan : 119, Budhwar Peth, Jogeshwari Mandir Lane, Pune 411002, Maharashtra
(For orders within Pune) Tel : (020) 2445 2044, 66022708, Fax : (020) 2445 1538; Mobile : 9657703145
Email : niralilocal@pragationline.com
Nirali Prakashan : S. No. 28/27, Dhayari, Near Asian College Pune 411041
(For orders outside Pune) Tel : (020) 24690204 Fax : (020) 24690316; Mobile : 9657703143
Email : bookorder@pragationline.com
MUMBAI
Nirali Prakashan : 385, S.V.P. Road, Rasdhara Co-op. Hsg. Society Ltd.,
Girgaum, Mumbai 400004, Maharashtra; Mobile : 9320129587
Tel : (022) 2385 6339 / 2386 9976, Fax : (022) 2386 9976
Email : niralimumbai@pragationline.com
➢ DISTRIBUTION BRANCHES
JALGAON
Nirali Prakashan : 34, V. V. Golani Market, Navi Peth, Jalgaon 425001, Maharashtra,
Tel : (0257) 222 0395, Mob : 94234 91860; Email : niralijalgaon@pragationline.com
KOLHAPUR
Nirali Prakashan : New Mahadvar Road, Kedar Plaza, 1st Floor Opp. IDBI Bank, Kolhapur 416 012
Maharashtra. Mob : 9850046155; Email : niralikolhapur@pragationline.com
NAGPUR
Nirali Prakashan : Above Maratha Mandir, Shop No. 3, First Floor,
Rani Jhanshi Square, Sitabuldi, Nagpur 440012, Maharashtra
Tel : (0712) 254 7129; Email : pratibhabookdistributors@gmail.com
DELHI
Nirali Prakashan : 4593/15, Basement, Agarwal Lane, Ansari Road, Daryaganj
Near Times of India Building, New Delhi 110002 Mob : 08505972553
Email : niralidelhi@pragationline.com
BENGALURU
Nirali Prakashan : Maitri Ground Floor, Jaya Apartments, No. 99, 6th Cross, 6th Main,
Malleswaram, Bengaluru 560003, Karnataka; Mob : 9449043034
Email: niralibangalore@pragationline.com
Other Branches : Hyderabad, Chennai
Note : Every possible effort has been made to avoid errors or omissions in this book. In spite this, errors may have crept in. Any type of error or mistake so noted,
and shall be brought to our notice, shall be taken care of in the next edition. It is notified that neither the publisher, nor the author or book seller shall be responsible
for any damage or loss of action to any one of any kind, in any manner, therefrom. The reader must cross check all the facts and contents with original Government
notification or publications.
niralipune@pragationline.com | www.pragationline.com
M. N. Gangrade
Preface …
This textbook on Contracts and Accounts is written for the benefit of VIth semester students of
Diploma in Civil Engineering Group.
This book is written according to the revised curriculum of Semester pattern of I scheme implemented
by MSBTE.
Updating and introducing new methods of tendering, contracts and valuation makes this textbook
exactly as per the latest trends in construction industry. This book is very much helpful for students of
diploma and degree in Civil Engineering.
Appendix is added which of blank tender set, so as to make students study the clauses as per
Government of Maharashtra and same they can used while taking contract.
This book also fulfill the requirements of curriculum of AMIE, B.Tech. and other civil engineering
courses for autonomous institutes.
This book is also helpful to candidates aspirins to appear UPSC and MPSC both.
While writing this book, efforts have been made to make this book student oriented. The subject
matter is presented in simple and lucid language.
This book has many solved examples which are required to understand the subject and are required to
be practiced by students from examination point of view. Students can prepare estimates, rates analysis
and also able to calculate material required for a project.
• All chapters are covered with important points and practice questions.
• About the chapter is written at the beginning of chapter to give a brief idea of the content of the
chapter.
• Examination oriented questions are covered with solutions and key answers.
• Each chapter of this book is incorporated with suitable sketches whenever necessary.
I express my appreciation and greatfulness to the publisher Shri Pradeep Furia, Shri Dinesh Furia,
Shri Jignesh Furia and the staff of Nirali Prakashan for their most cooperative attitude and untiring
efforts for bringing out this book in a short period of time. Special thanks to Mr. Shashikant Patel without
his persuation, this task would have been very difficult and also thankful to Ms. Anupama for proof reading.
I am indeed thankful to Mr. Paras Rambhia and Ms. Riddhi Hardik Vira of Decent Typesetters for their
excellent computer typesetting work.
Although every care has been taken to check mistakes, yet it is difficult to claim 100% perfection. Any
errors, omissions and suggestions are welcome from all teachers, students and friends.
Author
Syllabus ...
Unit Outcomes (UOs)
Unit Topics and Sub-topics
(in cognitive domain
Unit I - P.W.D. 1a. Explain the functions of personnel in the 1.1 Organization structure of Public Works
Procedure to given division of P.W.D. Department (P.W.D.).
Execute the 1b. Explain the procedure adopted by the 1.2 Functions of their personnel, financial
Work given government department for the powers if any.
construction of the given civil work. 1.3 P.W.D. Procedure of initiating the work
1c. Explain the specified method used in 1.4 Administrative approval, technical
P.W.D. to carry out the given work. sanction, budget provision, expenditure
1d. Select the relevant method of contracting sanction
for the given type of work with 1.5 Methods used in P.W.D. for carrying out
justification. works - contract method, departmental
method -rule list method, piece work
method, day’s work method, employing
labours on daily wages basis.
Unit II - 2a. Explain the requirements of valid 2.1 Definition of contract, Objects of contract,
Contracts contract in the given situation. requirements of valid contract, Overview
2b. Classify the civil engineering Contracts of Indian Contract Act 1872.
based on the given criteria. 2.2 Types of engineering contract with
2c. Select the type of contract for the given advantages, disadvantages and their
type of work with justification. suitabilities - Lump sum contract, item
2d. Outline the Registration process of rate contract, percentage rate contract,
contractor in Public Works Department cost plus percentage, cost plus fixed fee,
(P.W.D.) in the given type of division cost plus variable percentage and cost
office. plus variable fee contract, labour
2e. Justify the importance of Built operate contract, demolition contract, target
transfer (BOT) contract in the given contract, negotiated contract, All in
situation. contract, Engineering Procurement
2f. Explain the provisions of FIDIC contract Construction Contract (EPC), Annuity
relevant to the given situation. Contract.
2.3 Introduction of FIDIC Conditions of
contract.
2.4 Classification of contractor on basis of
financial limits, Requirement of
documents for registration of contractor
in Public Works Department (P.W.D.).
2.5 Built operate transfer (BOT) Project :
Objectives, scope, advantages,
Disadvantages, Nature of agreement,
mode of payment, examples.
Unit III - Tender 3a. Justify the need of the tender document 3.1 Definition of tender, necessity of tender,
and Tender for the given situation. Types of tender-local, Global, open
Documents 3b. Draft tender notice for the given type of Limited and negotiated tender.
work. 3.2 Notice to invite Tender (NIT) : Points to
3c. Explain the relevant provision of contact be included while drafting tender notice,
in the given situation as per Contract act Drafting of tender notice.
1872.
3d. Justify the provision of liability period in 3.3 Meaning of terms : Earnest money
tender document of the given work. Deposit (EMD), Security deposit,
3e. Explain the process of arbitration used in Additional Performance Security Deposit,
the given case of dispute. Validity period, right to reject one or all
tenders, corrigendum to tender notice
3f. Justify the necessity of E-Tendering
and its necessity.
system for the given type of civil work.
3.4 Tender documents - Index, lender notice,
general instructions, special instructions,
schedule A, Schedule B, schedule C,
Terms related to tender documents -
contract conditions- time limit, time
extension, penalty, defective material
and workmanship, termination of
contract, suspension of work, subletting
of contract, extra items, price variation
clause (escalation defect liability Period,
liquidated and un-liquidated Damages.
3.5 Arbitration : Meaning, Qualification of an
arbitrator, appointment, Causes and
Settlement of disputes, Powers and
duties of Arbitrator, Award of result.
3.6 Procedure of submitting filled tender
Document (Two envelope system),
procedure of opening tender,
comparative statement, scrutiny of
tenders, award of contract, acceptance
letter and work order.
3.7 E-Tendering System : Online procedure
of Submission of Tender in P.W.D.
3.8 Unbalanced tender, ring formation.
Unit IV - 4a. Explain the importance of Nominal 4.1 Various account forms and their uses -
Accounts in Muster Role (NMR) in the construction of Measurement Books, E-Measurement
P.W.D. the given structure. book (E-MB), Nominal Muster Roll
4b. Record the measurements in the (NMR), Imprest Cash, Indent, Invoice,
measurement book for the given items of Bill, Vouchers, Hand receipt Cash Book,
works for payment. Temporary Advance, Heads of Accounts.
4c. Explain the specified terms used in 4.2 Mode of Payment to the contractor and
interim payment of the given civil work. its necessity - Interim Payment, Advance
4d. Select the criteria for granting advances Payment, Secured Advance, Petty
to the Contractor in the given situation advance, Mobilization advance, First And
with justification. Final, Final bill, Running account bill,
4e. Select the relevant bill form in the given Retention money, Reduced rate
situation with justification. payment, E-Payment.
Unit V - 5a. Draft the specifications for the given type 5.1 Necessity and importance of
Specifications of an item. specifications of an items, points to be
5b. Classify the specifications based on the observed in framing specifications of an
given criteria. item.
5c. Propose the specifications for the 5.2 Types of specification : Brief and
construction of the given item of work. Detailed, Standard and Manufacturers
5d. Formulate the detailed specifications for Specification.
the given item of irrigation work. 5.3 Preparing Detailed Specifications of
5e. Draft a detailed specification for a given items in civil engineering works from
items of transportation engineering work. each of following : Building construction,
Irrigation Engineering transportation
Engineering, Public health Engineering.
Unit VI - 6a. Explain the purpose of valuation of the 6.1 Definition and purpose of Valuation, role
Valuations given structure in the given situation. of valuer. Define : Cost, Price and Value,
6b. Classify the value of the given structure Characteristics of value, Factors
based on the given criteria. Affecting value
6c. Calculate depreciation of the given 6.2 Types of Value : Book Value, Scrap
structure using relevant method for the Value, Salvage Value, Speculative
given data. Value, Distress Value, Market Value,
6d. Classify the term, ‘outgoings’ in the given monopoly Value, Sentimental Value,
situation. Factors affecting value.
6e. Calculate monthly rent of the given 6.3 Depreciation, Obsolescence, Sinking
building from the given data as per Fund. Methods of Calculation of
P.W.D. norms. Depreciation - Straight Line Method,
Sinking Fund Method, Constant
Percentage Method.
6.4 Computation of capitalized value, Gross
income, Outgoings, Net Income, Year
Purchase, Types of outgoings.
6.5 Fixation of rent as per P.W.D. Practice.
6.6 Lease - Types of lease, lease hold
property and free hold property,
Mortgage - Mortgage deed, precautions
to be taken while making mortgage.
Contents …
1. P.W.D. Procedure to Execute the Work 1.1 - 1.14
Introduction … 1.1
1.1 Organisation Structure of P.W.D. … 1.2
1.2 Functions of P.W.D. Personnel and Financial Powers … 1.3
1.3 P.W.D. Procedure of Initiating the Work … 1.4
1.4 Administrative Approval … 1.4
1.4.1 Technical Sanction … 1.5
1.4.2 Budget Provision … 1.5
1.4.3 Expenditure Sanction … 1.5
1.5 Methods Used in P.W.D. for Carrying Out the Works … 1.5
1.5.1 Contract Method (Item Rate, Item Plus Fixed Percentage) … 1.6
1.5.2 Rate List Method … 1.7
1.5.3 Piece Work Method (A1 and A2) … 1.7
1.5.4 Day Work Method … 1.8
1.5.5 Departmental Method of Employing Daily Labour … 1.9
• Important Points … 1.12
• Practice Questions … 1.13
• MSBTE Questions and Answers (As per ‘G’ Scheme) … 1.13
Appendix A – B – C
1…
P.W.D. PROCEDURE TO EXECUTE THE
WORK
Weightage of Marks = 08, Teaching Hours = 04
Specific Objectives
¾ State the meaning and purpose of administrative approval and technical sanction.
¾ Draw organization structure of P.W.D.
¾ To study functions of personnel in P.W.D.
¾ To study procedure of execution of construction work in P.W.D.
INTRODUCTION
• In Government, departments and public bodies, the general procedures and methods of
executing works are rigid and the rules and regulations are to be strictly followed. The reason is
that they involve utilisation of public funds. The commercial methods are more flexible and
allow the use of discretionary powers as the funds involved are private property and everything
can be left to mutual faith and trust.
• For the construction and maintenance of public works, the State Government has formed
various engineering departments. They are as given below :
1. Buildings and construction department which mainly deals with the buildings, roads and
bridges.
2. Irrigation department deals with construction of dams, canals, navigation etc.
3. Environmental engineering department deals with water supply and sanitary works etc.
4. Electricity board which deals with electrification, installation of thermal power stations,
connecting power lines etc.
• The departmental organisational setup of P.W.D. in execution of various works is as described
below :
• P.W.D. has different engineering departments, which deal with the construction and
maintenance of public works as buildings, roads, bridges, culverts, canals and connecting
works, dams, sanitary and water supply works, electrical works etc.
1-1
Contracts and Accounts (T.Y. Dip. Sem. VI) (Civil) 1-2 P.W.D. Procedure to Execute the Work
1.1 ORGANISATION STRUCTURE OF P.W.D. [S’16, 17, 19; W’16, 17, 18]
Administrative Setup :
• For any work or project required by a department, an approval or sanction of the competent
authority of the department, with respect to the cost and the work that is necessary at the first
instance.
• The approval authorises the Engineering department to take up the work.
• Administrative approval denotes the formal acceptance by the department concerned of the
proposal and after the administrative approval is given, the Engineering department (P.W.D.)
takes up the work and prepares detailed designs, plans and estimates and then executes the
work.
• The Engineering department prepares approximate estimates and preliminary plans and
submits to the department concerned for administrative approval.
Contracts And Accounts
30%
OFF