Construction Contract Framwork

Construction process converts natural repurchases into facilities, goods and services for the benefit of mankind. Construction is as everlasting activity across the globe. Its profitability, like of any other business, fluctuates according to the Ina of demand and supply. In Ariosto countries, construction  activity constitutes 6-98 of the gross domestic product (GDP) and constitutes more than half of the fixed capital formation as infrastructural and public utilities capital works required for economic development, GDP is a measure of the level of commie enjoyed by a country. The total amid value of construction works in Me world ranges Scorn 1-13 trillion dollars, In the mid-eighties, the assessed annual construction in VSA was to the tune of 350 billion  dollars. During the same period, the annual value of construction works in western Europe was around 300-400 billion dollars per Annam, In India, the  in construction during the year 1995-96 was of the order of Rs. 13 0,000 crores. 

Since the early eighties, the international construction  contract market has riser to 120-180 billion dollars per ilium. There are about 250 lop international companies competing with each other for the global construction tenders. Table  01 225 international construction conciliates in Global Construction Export year 1992. 

Traditionally, the major construction works all over the world are executed Hiccough contracts. Contracting calls for specialised knowledge and practical sixpence.  In particular outrace managerial must he familiar with the following : 

1. Indian  Contract Act, 1872 
2. Indian Sale of Goods Act, 1930 
3. Indian Arbitration aid Conciliate,n Act, 1906 
4. Guidelines and specification issued by World Bank, FIDIC, UNCITRAL, Bureau of Indian Strudel, rood other National and International  Sibelius. 

The prime objective of this unit is to describe to you the basic conceals uncleanly construction  contracts. Other specified topics like, Indian Contract Act, types 01 construction contracts, contract procedure and documentation, important   and their interpretations and Arbitration and Conciliation Act arc inclusion 111 other advanced course of Constructional Management. 

Objectives 

After studying this unit, you should be able to 

• classify the  construction  works, 
• identify the participants involved in construction process, 
• discuss the functional organisation of contractors, 
• describe tile contractual and organisational approaches for execution of construction projects, 
• understand the yearning of contract and its supplication, 
• discuss specifications and contrition of a typical constructionist  contract, 
• understand contract forlorn and conditions, 
• identify the contract types, 
• describe the contracting procedure including preparation of tendering  program. pre-qualification of contractors, issuing tenders and evaluating bids. negotiation and award of contract, 
• frame tile guidelines  administration  of contract by owner. 
• discuss the nature of contract dispules, claims and modes of resolve including conciliation, litigation aid arbitration, and 
• identify the printable in implementation of constriction contrails how to miniseries them.