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PROJECT NAME: PACKAGE -1 CONSTRUCTION OF MEDICAL COLLEGE COMPLEX AT AIIMS RISHIKESH. SCOPE OF WORK: Scope of work for the proposed construction of College & Hostel complex the details of buildings are as under: 1. 2. 3. 4. 5. Trauma centre : Ayush : Nursing Hostel : Nursing College: Auditorium : G+2 G G+4 G+4 G+2 , Built up area = 16881.54 sqm. , Built up area = 888.37 sqm. , Built up area = 10811.14 sqm. , Built up area = 7293.80 sqm. , Built up area = 4116.25 sqm.

The scope of work shall comprise mainly of carrying out construction work for the proposed construction of college & hostel complex. The Contractor shall arrange all materials, labour & equipments as required for successful completion of the work. Work shall be executed as per C.P.W.D. specification, Quality Plan, BOQ and as per approved drawings and direction of Engineer In-charge of Ministry of health & Family Welfare. The Contractor shall be completing the entire work of the proposed college complex and handover the complete buildings as per the following broad specification:1 2 External Finish: Structural glazing & stone cladding. Internal Finish: All internal walls shall be plastered & painted in off white shade with oil bound distemper. Plaster of Paris is to be done in Nursing hostel. False ceiling to be done. Flooring: Trauma centre & Nursing hostel to be done by vitrified Tiles. Ceramic Tiles Flooring in toilets and balconies.

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Doors/Windows: All internal & external doors and windows are to be of UPVC/aluminium glazing. In Nursing Hostel, Internal and main entrance door frames in pressed steel door frame and all internal with laminated Flush door shutters. Hardware: All shutter hinges in steel. All internal and main entrance door frames with aluminium powder coated fittings with mortice lock. All external doors and windows with aluminium fittings. Electrical: All copper wiring in ms concealed conduit. Provision for adequate light and power points as well as telephone & TV outlets with Modular Switches and protective M.C.Bs. Water Supply: Underground and overhead water tanks with pumps for uninterrupted supply of water. Toilets: Provision for Hot & Cold water system without Geyser. Glazed tiles in pleasing colours on walls up to door level. European W.Cs, washbasins & cisterns in white shade of Standard make. Chrome plated fittings of standard make. Water Proofing: Waterproofing of all Terraces to be complete by brick coba. Toilets and areas to have false ceiling in Nursing Hostel only. Services: Provision of 15 nos. lift/tower with complete machine room. ii) All Plumbing, Sanitary and Electrical works as per specification inside the building and connection up to the Main Feeder/Ring Main.

7 8

9 10

TYPE OF CONTRACT: Item Rate Contract: Also called a schedule contract, in this contract, the contractor undertakes the execution of work on an item rate basis. The amount to be received by the contractor depends upon the quantities of various items of work actually executed. The payment of the contractor is made on the basis of detailed measurements of different items of work actually done by him. Suitability: The item rate contract is most commonly used for all types of engineering works financed by public or government bodies. This type of contract is suitable for works which can be split in to various items and quantities under each item can be estimated with accuracy. In this type contract, there is no need for detailed drawings at the time of allotting contract as in the case of lump sum contract. The detailed drawings can be prepared after the contract is awarded. Changes in drawings and quantities of individual items can be made as per requirement within agreed limits.

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The payment to the contractor is made on the actual work done by him at the agreed rates.
CONTRACT DATA SHEET Sr. No. 1. 2. 3. 4. 5 6 7 8 9. 10. 11 12. 13. Clause Ref. No. Description Company Project Manager Mobilisation Advance Insurance: CAR Policy Workmens Compensation Policy Third Party Insurance Any other Insurance Cover Time for Completion and Programme of Work Commencement of work Material to be supplied by the Company Tools, Plants and Equipment supplied by the Company Supply of Water & Electrical Power For amount of Rs. . Validity .. Months For amount of Rs. Validity .. Months For amount of Rs. Validity .. Months 10% The Contract Data

After days from the date of the Notice to so on.

TIME SCHEDULE: The time allowed for execution of the work indicated at scope of work shall be the essence of the contract. The work shall be carried out and completed strictly as per the following time schedule: 1.1.1 Completion of total structure from LOA Total completion including finishing from LOA. : : 10 15 months months

The activity wise time schedule shall be indicated in Bar Chart to be submitted prior to issuance of Letter Of Award. The Contractor shall strictly adhere to the time schedule of all activities as mutually agreed.
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Quantities given in the schedule (BOQ) are provisional. The quantity given in the BOQ may vary up to any extent. The Contractor will have no claim on account of variation of quantities and shall be liable to carry out the quantity under variation as per his item wise agreed rate. The overall variation limit of the contract value shall be 30%. The rates for all items covered under the BOQ or any other items which may crop up during the execution are for all leads, lifts and heights. The rates as agreed between Ministry of Health & Family welfare. And M/s. Omaxe Ltd. PAYMENT OF RUNNING ACCOUNT (RA) BILLS: The Contractor shall submit monthly RA Bills by 1st of every month along with supported measurement sheets. The minimum value of interim Running Account Bills shall not be less then Rs. 200 lacs. 5% security deposit shall be deducted from each Running Account Bills. The Contractor shall furnish guarantee for anti-termite treatment towards satisfactory performance for a minimum 10 years from the date of final completion of the works on an approved Performa.

1.1.3 2.0 3.0

4.0 4.1

ADVANCES Types of advances Subject to the conditions provided herein, the Contractor may avail of the following advances for the execution of the Works: Mobilization advance Advance against materials at site. Mobilisation Advance For completing preliminaries such as construction of site office, hiring of accommodation, labour hutments, arranging electricity and water supply and movement of staff, labour plant and machinery, an advance specified in the Contract Data and as required by the Contractor shall be payable against a Bank Guarantee of a Scheduled Bank duly approved by the Company for an equivalent amount of advance in a format acceptable to the Company. Such advance shall be given only after the Contractor has submitted the Performance Security and executed the formal Contract and the Company is rightly entitled to check that this Mobilization Advance is utilized for the the purpose envisaged in the Contract
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a. b. 4.2 4.2.1



Recovery of Mobilisation Advance: The mobilization advance bear simple intrest at the rate of 10 per cent per annum and shall be calculated from the date of payment to the date of recovery. Recovery of such sums advance shall be made by the deduction from the contractors bills commencing after first ten per cent of the gross value of the work is executed and paid, on pro-rata percentage basis to the gross value of work billed beyond 10% in such a way that the entire advance is recovered by the time eighty per cent of the gross value of contract is executed and paid. Advances against Material at Site Advance on account of main non-perishable construction materials required for incorporation in the permanent Works, shall be paid on request of the Contractor after these materials are brought to site, against an Indemnity Bond duly executed. The Indemnity Bond will be furnished in a Form acceptable and approved by the Company. The advance shall be limited to 90% of the assessed value of the materials. Written Request for advance Advance as admissible under the Contract, shall be payable only after the Contractor makes a written request for the same to the Company. The amount payable shall be the amount applied for by the Contractor, subject however to the conditions and limitations given herein




DEFECT LIABILITY PERIOD: Defect Liability Period of the Contract shall be 12 months from completion of the work under different phases. The Contractor during the said Defect Liability period shall be responsible to make good and remedy at his own expenses all defects pointed out by the Engineer-in-Charge. EXTRA ITEM: In case any item not covered in the BOQ is required to be carried out, the rate for the same shall be derived from the nearest similar item available in the BOQ. However, in case no such similar item of work exists in the BOQ, the rate for the same shall be derived as per market rate + contractor profit. Material and Labour component for such extra item shall be as per norms given in DSR. (Latest revision) The WCT shall be borne by the Contractor. The Contractor will be required to get himself registered with the sales tax department before commencing the work. As per the existing law, under the relevant clauses for the Work Contract Tax, the Contractor shall be able to get the road permit and C form which shall be issued by the concerned authorities in his name without any tax liability. You have to submit copy of registration in regard to service tax.
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8.0 9.0

T.D.S. shall be applicable as per Governing rules of Income Tax Act. All taxes will be applicable as per rules. PROGRESS REPORTS AND REVIEW: The Contractor shall submit monthly progress report by 5th of next month and shall submitt fortnightly progress report. The Contractor shall deploy all resources (Labour, machine, equipments and materials etc.) to maintain the required rate of progress and of quality to ensure workmanship of the degree specified and to the satisfaction of the Engineer-inCharge/Project Manager of the Owner. The Contractor shall make all arrangements for Electricity and water supply required for the construction work at his own cost and shall also provide required D.G. Sets Insurance: The Contractor himself shall obtain and maintain insurance as under for the complete period of work: a) b) c) d) Contractor All Risk (CAR) Policy for cost of contract. Workmen Compensation Third Party & any other statutory obligation Labour License





The Contractor shall, in respect of labour employed by him shall comply with the provision of labour legislation including latest requirement of all the Act, Law, the payment of minimum wages Act, ESIC, Employees Provident Fund and all other statutory orders in relation to the execution of work. You have to submit registration copies in regard to E.S.I. & P.F. And also have to submit copies of contribution on this A/c from time to time. Quality Assurance and Quality Control: The works shall conform to high standard of design and workmanship. The Owner/Architect shall be free to carry out tests as may be decided from time to time. Materials not meeting the prescribed criteria shall be rejected and the same shall be removed from the site immediately at the cost of the Contractor. Safety: The Contractor shall throughout the execution and completion of work shall arrange and ensure all safety measures as per the safety code of CPWD. The Contractor will indemnify Crossings Infrastructure Pvt. Ltd. from any consequence arising due to failure in respect of non compliance of safety code. The Contractor shall take care and provide all safety measures to avoid any accident at site. However, in case of any accident occurring at site, the Contractor shall be solely responsible to take care of any eventuality arising out of any accident.




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All individuals (staff and workers) at site shall wear safety helmets with chinstraps. Persons working at height shall be secured by safety belts and provision of net at lower level. Arbitration: All disputes of any kind whatever arising during the progress of work or after their completion, shall be settled by the Arbitrator appointed by the Owner under the provision of Arbitration and Conciliation Act, 1996 as amended from time to time including provisions in force at the time the reference is made and their decision shall be final without any appeal. The venue of Arbitration/jurisdiction shall be Ghaziabad only. During progress of work if any defects of whatsoever nature are found by Architect/engineers, the same shall have to be rectified within 3 days of intimation. If any building material brought to the site, does not meet the specifications of CPWD, the same shall have to be removed immediately from the site. In case any legal dispute arises out of this contract, the same shall be settled in Ghaziabad Courts. DRAWINGS: Drawings duly signed by the Architect / Consultants are diagrammatic but shall be followed as closely as actual construction permits. Architectural drawings shall take precedence over Structural drawings, which in turn shall take precedence over services drawings in regard to all dimensions. The Contractor shall verify all dimensions at the Site and bring to the notice of the Owner. For discrepancies if any, the Owners decision in this respect shall be final. 22.0 WORK TO BE CARRIED OUT BY LICENSED PERSONS/FIRMS: Technically competent persons or firms holding valid licenses shall only carry out any special service installations included in the scope of the Work. INSPECTION AND TESTING OF MATERIALS;The Contractor shall, if so required, produce manufacturers' test certificates for any particular batch of materials supplied by him. The tests carried out shall be as per relevant Indian Standards and shall be carried out at Government approved test facility. For checking setting out and testing materials at the Site the Contractor shall provide the following minimum apparatus/ testing equipment: Theodolites Automatic levels Steel tapes Weighing machines Spirit levels, plumb bobs Micro meters Thermometers Hydraulic testing machines
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Smoke test machines Complete concrete testing lab equipment Moisture meters Complete sets of sieves Oven. Slump Testing Apparatus Cube Moulds Balance All such equipment shall be calibrated at specified frequency for accuracy at a Testing Facility approved by the Owner. The Contractor shall get other tests carried out at his own cost at approved laboratory as per the directions of the Owner.


The Contractor shall maintain on site one set of all drawing issued to him for reference. SHOP DRAWINGS: The Contractor shall submit, during the currency of the project, to the Owner, four (4) copies of all shop drawings for his approval. Shop drawings shall be submitted generally for the following: structural glazing details. Electrical works. Samples of all finishing materials like Tiles (vitrified and ceramic), marble, paints, door shutters, door locks, switches, CP fittings, chinawares, stainless steel sinks etc. shall be submitted for approval prior to procurement. These will be submitted in triplicate for approval and retention by the Owner and Architect and shall be kept in their site office for reference and verification till the completion of the Project.

23.0 24.0

CONTRACT DRAWINGS: Drawings issued/to be issued shall also firm part of

the contract.

FIRE PRECAUTIONS: The Contractor shall take all precautions and preventive measures against fire hazards at the Site and shall assume full responsibility for the same. DRILLING, CUTTING ETC.: All cutting and drilling of walls or other elements of the building for the proper entry/installation of inserts, boxes, equipment, etc. shall be carried out using
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electrically operated tools only. Manual drilling, cutting, chiseling, etc. shall not be permitted. Cutting and drilling of structural members shall be carried out using vibration free diamond wire sawing and diamond drilling only with prior permission. The cost for procurement and using such equipment is deemed to be included in the Contract and no extra costs will be paid. 26.0 APPROVAL BY STATUTORY BODIES: The Owner will handle Commencement Certificate, No Objection Certificate and Occupation Certificate if applicable for the permanent building works under this Contract. The Contractor shall be responsible for providing required notices to authorities and to obtain and retain with him at his own cost all other approvals/permissions from the statutory bodies, (Labour, ESI, PF, Tax Deptts. etc.) and any other approval/permissions required to facilitate performance of the Contractors work under the Contract till completion. 27.0 REPORTS & CHECKLISTS BY CONTRACTOR: The Contractor has to note that the Owner follows the ISO procedures and all reports, returns & checklists shall conform to ISO standards & procedures. During progress of the Work the Contractor shall prepare and submit to the Owner various checklists, for having checked various Works at different stages of progress and reports as per the approved formats and at specified frequency. The Contractor shall file daily category-wise labour return. The report shall indicate scheduled requirement against actual strength. The Contractor shall prepare weekly reports of planned and actual progress of the Work and the subsequent week's scheduled Work. These will also include material procurement status. These reports shall be submitted to the Owner and shall be reviewed in coordination meeting. The Contractor shall submit monthly report along with monthly bills. Further progress charts and schedules shall be prepared by the Contractor as directed by the Owner. The Contractor shall submit a safety procedure manual or Company policy on safety. Complying with the SHE Plan and outlining its implementation by the Contractor and including: Quality Assurance and Control System (Sample format). Realistic construction programme/schedule. The Contractor shall maintain and make available all the records pertaining to reports, returns and checklist to the Owner during audits (internal as well as external) and make necessary corrections, additions and actions based upon the findings / observations of the audits. SITE BARRICADING: Site Boundary fencing of RCC posts and barbed wire and random rubble stone masonry boundary wall existing at site shall be maintained by the Contractor at his own cost till completion of the Project. However if it is required for the Contractor to replace / rectify the existing fencing / boundary wall for security purpose the same shall be done at Contractors own
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cost subject to approval of design. The Contractor for safety reason shall provide the GI sheet barricading around the excavated pits and his work area, which shall be put in proper line and level and shall be painted. The Contractor shall at his own cost provide lockable gates at all the openings in the site barricading, boundary wall, access roads that may be required from time to time during progress of work. The Contractor shall be required to provide appropriate barricading within the site to ensure safety of men and material, at his own cost. RATE ONLY ITEMS/ EXTRA ITEMS AND QUANTITIES EXCEEDING THE TENDERED QUANTITIES: The Contractor shall immediately and before procurement and execution of the work obtain a written approval of the variation order from the Owner for the rate only item, extra items and quantities exceeding the BOQ. No payments will be entertained without the Owners written approval of the change / variation order. The onus shall be upon the Contractor to obtain such prior written variation order. 28.0 WATER AND ELECTRICITY: The Contractor shall make his own arrangement for electricity and water for construction purposes / labour hutments. The electricity required for Construction Work shall be arranged by the Contractor from the authorities and/ or generators at his own cost. The Contractor shall be responsible for all distribution points as may be required for the Work. The Contractor shall also make arrangement for alternative standby services at his own cost in the form of additional Generators of adequate capacity (day & night) so that there is no delay in progress of Work as per construction schedule submitted by him. The Contractor shall prepare schematic distribution diagrams of distribution of electricity and water for construction purposes and get them approved. The distribution at site shall be in accordance with the approved scheme. The Contractor shall ensure incorporation and strict implementation of all safety parameters, equipments, instruments and directions given by the Owner from time to time in this regard. The Contractor shall install the temporary distribution lines for water and electricity ensuring that work of other Contractor is not interrupted or hampered. Incase during the course of construction these lines foul or interrupt or hamper the work of other Contractor, the Contractor shall remove and relocate the service lines and relocate the same at his own cost. All Fees for power and Water connection for construction purposes shall be borne by the Contractor. 29.0 ASSOCIATED CIVIL WORKS: All civil works required for the storage of materials or the installation of equipments for the Contractor's functioning shall be the responsibility of the Contractor. GUARANTEE TO PERFORM:
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The Contractor shall carry out the work in accordance with the drawings, specifications, schedule and other documents forming part of the contract. The Contractor shall be fully responsible for the performance of the works executed by him. All waterproofing works and termite proofing works executed by the Contractor, shall be guaranteed for a minimum period of ten years from the date of final completion of Project.. The guarantees on the approved format shall be submitted to the Owner along with the as-built documentation at the end of the project. 31.0 ESCALATION: Rates as mutually agreed shall remain firm & valid for a period of 30 months beyond which the rates shall be reviewed for price adjustments if any. DEWATERING AND FLOODING CONTROL: The Contractor is deemed to have allowed for any and all temporary dewatering, during the execution of his Work. Such work shall include but not necessarily be limited to the safe disposal of the resulting water; removal, replacement and/or recompaction of the water logged soils/surfaces; backfilling plugging of all temporary sumps, ditches, temporary materials and devices. The Contractor shall be deemed to have allowed for all costs associated with removal of flood waters and any associated sludge debris etc. from the basement level or any other part of the building so effected in the event of flooding due to heavy rains during his construction activities and after basement, superstructure work is completed until such time as the Contractor has completed and handed over all his works under the Contract. PROTECTION / PRESERVATION OF TREES: The Contractor shall take all measures necessary to ensure the protection and preservation of existing trees within / outside the boundary of the site. The Contractor shall be responsible of any damage / casualty to the trees happing as a result of his working at site and for any action, claim, penalty or expenses imposed by the forest / any other department / authority. No claim / payment shall be payable to the Contractor on this account.



Functional Organization: A typical functional organization for a construction site management will consists of Site Engineer, who is obviously a specialist and hold his place in the organization because of the specialist functions of management he performs. On technical side he will be assisted by Junior Engineers who are also specialists. They control the departmental heads, the Foreman. There may be Masonry Foreman, Carpentry Foreman, Electrical Foreman, Plumbing Foreman and General Foreman. Each of these Foreman, is a specialists and controlled the skilled workman who will actually
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do the work. For example, under the Masonry Foreman, there may be eight skilled masons who are again specialist and can not be replaced by anybody but mason. Same is the case with other Foreman, except in the case of General Foreman, under whom there will be no skilled workman but only general unskilled labour who will not do any specialist job. A similar type of organization can be devised for Architect office. This office is headed by the head of the organization called probably as Chief Architect. There may be two Senior Architect working under the Chief Architect. These will control the work of four Junior Architects. These will be directly involved in the preparation of architectural drawings for which they may take the assistance of draughtsmen. Thus it can be seen that each person in the hierarchy of a functional organization is specialists, whether he be a mason or carpenter or a Foreman or an Engineer. The size of the organization depends on the volume, complexity and the time periods of the various works being done. The construction team consists of owner, engineers/ architects and contractor. The team is formed to co-operatively plan, design and execute a particular project. The objective of the team is to execute the owner's project in the best and most economical manner within the stipulated completion time. The owner forms the construction team to serve his interests through the services of both the contractor and engineers. The functions of the constituents of any construction team depend upon the scope and nature of the work. Site organisation: The organization for the construction firm has to be developed taking into account the general principles of organization and the special characteristics of the construction industry. The type of organization suitable for a small construction firm is simple line or line and staff type of organization. The engineer in charge at the exercises full authority and is responsible for the execution and progress of work. Under him are few section officers or foremen who get the work executed. After having decided the organizational structure in a construction company, the next step is to spell out the task, power and responsibility of all its functionaries. Telling an accountant that he is to look after the accounts work or telling the foreman that he is to super wise the daily wage workers at site is not enough. Specific job detailing that is what is to be done by whom, at what time and how it is to be done is the starting point of site organisation. Site organisation in simple terms, means how to organise the construction activity on site. A typical site organisation for a division, headed by an executive engineer is shown here.

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EE AE Civil works JE1 JE2 Foremen 1 Supervisors Foreman 2 AE PHE services AE Electrical

Authority: Executive Engineer: (1) (2) (3) (4) To coordinate the work of various contractors and to check whether all necessary instructions have been provided to the contractors. To check the progress of work regularly and to arrange for rectification of faulty workmanship or inferior quality material. Clearing all bills related to construction work for which he is the final authority. To carry out technical audit and settlement of final contractual dues.

Assistant Engineer: (1) (2) (3) (4) To check the specifications of construction jobs in regard to the quality of materials, method of workmanship. to plan and organize construction work in his section in order to avoid delay in the process of work. To keep a record of all measurements of work done and tests carried out at site. To report regularly to the executive engineer on all the above matters.

Junior Engineer/Supervisor/Foremen:
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(1) (2) (3) (4) (5) (6)

To supervise the execution of work at the site in their respective sections. To place indents of material well in advance to avoid delay in the progress of construction work. To control and provide technical guidance to workers. To check and test materials for quality and quantity. To measure the quantity of work done for the purpose of payment and progress. To report regularly to the assistant engineer on all matters related to site. Role of Mistry/Skilled worker: This category include carpenters, steel fixers, machine operators, drivers, fitters, pipe jointers etc. They are usually recruited locally for their respective jobs. Their job is to keep the work going at the right speed and in the right manner in their sections. Role of Labourers: They are the ones who assist skilled workers and performed many unskilled jobs at the site.They expect the right payment and need to be given clear instructions regarding what to do.

In contractor's site organization, key persons involved in a project.

Project Manager Resident Engineer Site Engineer 1 JE/SUPVR 1 Foreman 1 Supervisors JE/SUPVR 2 Foreman 2 Site Engineer 2

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Important Duties/Role of Project Manager : (1) office. (2) (3) To direct and control the construction work on site. To employ work force, hire machinery, engage sub-contractors and material suppliers with or without reference to head office depending on the size of the project, policy of the firm, distance from head office and also his standing within the firm. To organize, direct and control men working under him. To check the Progress of work regularly in orders to avoid delay in construction work. To call periodically joint meeting of several key personnel working at the site to review progress and to issue instruction for speeding up work, if required. The duties of the resident engineer, Site engineer etc. and are similar to those of the executive Engineer, Assistant Engineer etc. The project management construction manpower planning is primarily concerned with estimating the worker's productivity, scheduling manpower employment, and structuring it into workers' team and work groups, with a view to economically match manpower supply with the task requirements. Completion of projects on schedule will be the completion of number of activities taken up prior to and after the award of the contract for construction. The construction planning has to be done in a thorough manner so that all problems likely to arise during design construction are identified. Both the client and contractor have to work in a spirit of give and take and try to accommodate each pother to the extent possible. The project authority has to ensure that the contractor is provided with the site for construction and installation of infrastructure facilities and the required equipment, materials and construction drawings as per a pre arranged schedule so that there are no chances of delays on that account. Although the clients are concerned with the delays in completing projects, they are not able to take effective measures to address the problems. Even though continuous monitoring and follow up actions have led to the solution of some projects specific problems, the over all picture of delays remain unchanged. The project organizations having failed to improve the completion time despite numerous studies and action planned tended to live with the status quo as unavoidable. Making Staff Work as a way of organization life: An understanding of staff authority lays the foundation for an organizational way of life. Where staff are involved, their responsibility is to develop and maintain a climate of favorable personal relations. Essentially, the task of staff is to make the responsible line managers "look good" and to help them do a better job. A staff person should not attempt to assume credit for an idea. Not only in this a sure way of alienating line teammates who do not like being shown up
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To coordinate the entire construction work on site and with the head

(4) (5) (6)

by a staff person, but operating managers who accept ideas actually bear responsibility for the implementation of the proposals. Companies also employ the assistance of professional firms, such as consultants to provide advice to line managers. A major reason for conflict in organizations is that people do not understand their assignment and those of their coworkers. No matter how well conceived an organization structure may be, people must understand it to make it work. Understanding is aided materially by the proper use of organization charts, accurate job descriptions, spelling out of authority and informational relationships, and introduction of specific goals for specific positions. Organizational conflict can be reduced by the use of organization charts and position descriptions. Organizing is improved by teaching its nature ans by recognizing the informal organization and the grapevine. Moreover effective enterprises develop and nurture an appropriate organization culture. Arbitration: Arbitration means settlement of dispute between two parties involved; generally contractor and owner. This settlement generally not by court of law but by a few persons having complete knowledge of that work and deputed by parties involved. these person or persons appointed to settle the dispute is called "Arbitrator". Arbitrator gives decision on the basis of evidences available; enquiries made and his own skills and knowledge. His decision accepted by both the parties and also incorporated in the decree of the court if required i.e. if earlier decision is not accepted by either of the parties and if matter is referred to court of law. Arbitrator has to take such decision which must be correct and accepted by both the parties. As such Arbitration is an expensive way of settling the dispute between owner and contractor. As far as possible matter is solved at very first or second level only. In extreme cases matter is referred to court. The judiciary procedure and law takes very long hence people to avoid it. The communication of proposals, the acceptance of proposals, and the revocation of proposals and acceptance, respectively are deemed to be made by any act or omission of the party proposing, accepting or revoking by which he intends to communicate such proposal, acceptance or revocation, or which has the effect of communicating it. Communication is complete is as follows: 1. Communication of a proposal is complete when it comes to the knowledge of the person to whom it is made. 2. Communication of an acceptance is complete when it comes to the knowledge of the Proposer. 3. Communication of a revocation is complete when it comes to the knowledge of the person against whom it is made. Acceptance by performing conditions or receiving consideration: Performance of the condition of the proposal, for the acceptance of any consideration for a reciprocal promise which may be offered with a proposal, is an acceptance of the proposal. All agreements are contracts if they are made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object, and are not hereby expressly declared to be void.
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The consideration or object of an agreement is lawful, unless it is forbidden by law, or -is of such nature that, if permitted it would defeat the provisions of any law or is fraudulent or -the court regards it as immoral, or opposed to public policy. In each of the above cases, the consideration or object of agreement is said be unlawful. Every agreement of which the object or consideration is unlawful is void. CONCLUSION: Public contract are required to be let in accordance with certain statutes. The performance of construction work is done pursuant to contractual agreement. Although there are numerous types of contracts, the contractor's obligation and initial concern is much more basic. With the proper understanding of the basic requirements for the formation of legal contract, the contractor will be better able to avoid pitfalls, lawsuits and liabilities. The essential contractual requirements are an offer, an acceptance of the offer and consideration.

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