AC-904

PROFESSIONAL
PRACTICE

GROUP -9
Ankit Suthar – 15SA205
Annie Thacker – 15SA206
Harshil Patel – 15SA219
DREAM

TOPICS
DESIGN 1. TYPES OF CONTRACT
2. ARTICLE OF AGREEMENT
3. EXISTANCE OF CONTRACT
4. SITE SUPERVISOR
5. CONTRACTOR AND SUB CONTRACTOR
6. EARNEST MONEY
BUILD 7. SECURITY MONEY
  A voluntary, deliberate, and legally binding agreement between
two or more competent parties.
 Contracts are usually written but may be spoken or implied, and
generally have to do with employment, sale or lease, or tenancy.
 A contractual relationship is evidenced by (1) an offer, (2)
acceptance of the offer, and a (3) valid (legal and valuable)
CONTRACTS consideration.
 Each party to a contract acquires rights and duties relative to the
rights and duties of the other parties.
 However, while all parties may expect a fair benefit from the
contract (otherwise courts may set it aside as inequitable) it does
not follow that each party will benefit to an equal extent.

Source : https://www.engineeringtoolbox.com/contract-types-d_925.html
LUMP SUM CONTRACT :
Contractor agrees to complete Work for one fixe price. • TYPES OF CONTRACT
• Contractor enters a bid that would encompass
All material and labor required to complete the work.
Sales tax.
Overhead and profit. Some common types of contracts are
• Most used type of contract-work with Traditional Delivery. used in the engineering and
ADVANTAGE: construction industry:
• Owner knows costs upfront, no hidden issues later on
DISADVANTAGE: • Lump sum contract.
• The contract is only as good as the contract documents. Could result in change • Cost plus contract.
• Guaranteed maximum price (GMP).
COST-PLUS-FEE : • Unit price
• Turnkey
• AKA "time and material" contract. • Other Variations.
• Owner agrees to pay contractor actual cost to complete work PLUS an agreed-upon fee.
• Usually percentage of costs (10-15%).
• Owner needs to be very specific with scope of work.
• What will be reimbursed and what is covered by the fee.
ADVANTAGE:
• Works when scope of work is complex or project is fast-track.
DISADVANTAGE:
• Owner gets "selective memory" when it comes to reimbursing certain items.
• Must document everything.
Source : https://www.engineeringtoolbox.com/contract-types-d_925.html
GAURANTEED MAXIMUM PRICE (GMP) :
• Same as cost+ fee, but with a cap • Types of Contract
• Contractor agrees not to exceed targeted costs
• Any overrun of costs is absorbed by contractor
• Incentives are placed in contract stating that if costs
• Come in below GMP, then contractor and owner split savings. Some common types of contracts are
ADVANTAGE: used in the engineering and
• gives owner assurance that Construction costs will not skyrocket construction industry:
DISADVANTAGE:
• contractor must keep careful watch on costs and owner may have to sacrifice • Lump sum contract.
quality over • Cost plus contract.
• Guaranteed maximum price (GMP).
UNIT PRICE : • Unit price
• Turnkey
• Owner and Contractor agree on price to be charged per unit for major elements. • Other Variations.
• Owner or A/E provide estimated quantities for project.
• Overhead, profit, labor and material are all included in unit price.
• Contractor is paid based on number of units actually installed.
• Owner must pay contractor on those units regardless of it is more or less then estimate.
ADVANTAGE:
• Provides owner with a competitive bid situation that allows for fair price to complete
work; eliminates changes.
DISADVANTAGE:
• Owner is placing huge faith in the A/E for correct estimated quantities
Source : https://www.engineeringtoolbox.com/contract-types-d_925.html
TURNKEY
• Same as lump-sum contract, but contractor does not COST/TIME INCENTIVE
• get paid until construction is totally complete
• When the "keys are turned over"
• No monthly requisitions are submitted to Owner, Contractor gets paid at the end • Form of bonus or penalty incentives
ADVANTAGE: are applied to keep costs and
• Owner is not bothered with monthly payouts and AlE does not have to certify schedule within project scope
payment
DISADVANTAGE: • Early completion bonus or
• Contractor is required to finance entire project until it is completed. penalty for late completion
• Payment bonus when project
comes in under target price.
• Commonly used in cost + fee
OTHER VARIATIONS
contracts.
• JOINT VENTURE:
• two construction companies come together to complete the Work.
• Used in construction where minority participation is required.
• Also, where companies want to broaden their market share into other markets.

• BOT (Build-Operate-Transfer)
• One entity is responsible for construction and operation of facility for several years
before transfer of ownership
• Project must be revenue generating after completion of construction
• Typical projects include toll roads, bridges and tunnels

Source : https://www.engineeringtoolbox.com/contract-types-d_925.html
ARTICLE OF AGREEMENT

https://www.slideshare.net/gayathriselvasegar/architecture-professional-practice-81138327
EXISTENCE OF CONTRACT
When a party files a suit claiming a
breach of contract, the first question
the judge must answer is whether a
1 OFFER - One of the parties made a promise to do or refrain from
doing some specified action in the future.

contract existed between the parties.

The complaining party must
prove four elements to show that a
contract existed: 2 CONSIDERATION - Something of value was promised in
exchange for the specified action or nonaction

ACCEPTANCE - The offer was accepted unambiguously.

3 Acceptance may be expressed through words, deeds or
performance as called for in the contract

MUTUALITY - The contracting parties had “a meeting of the minds”

4 regarding the agreement. This means the parties understood and
agreed to the basic substance and terms of the contract.
SITE SUPERVISOR
1 Person in the first line management
who monit0rs and regulates employees
in their performance of assigned or
delegated tasks.

 Supervisors are usually authorized to

recommend and/or effect hiring,
disciplining, promoting, punishing,
2 rewarding, and other associated
activities regarding the employees in
their departments.
 Site supervision is a vital role in the
construction industry, where safety is a
3 key issue that needs a lot of attention.
As the site supervisor, it's your job to
both assess and manage safety
hazards in the workplace.
CONTRACTOR

A person or firm
that undertakes a
contract to provide
materials or labour
to perform a service
or do a job.
Independent entity that agrees
to furnish certain number
or quantity of goods, material,
Equipment, personnel, and/or services that
meet or exceed
stated requirements or specifications, at a
mutually agreed upon price and within a
specified timeframe to another
independent entity called contractor,
principal, or project owner.
 SUB -CONTRACTOR
A subcontractor who contracts with the main contractor to supply or fix any materials or
TYPES : 1. goods or execute work forming part of the main contract.
1. Domestic Sub-Contractor
2. Nominated Sub-Contractor
3. Named Sub-Contractor Certain contracts permit the architect or supervising officer to reserve
2. the right of the final selection and approval of subcontractors.

3. Effectively the same as a domestic subcontractor

While the most common

A subcontractor is an
individual or in many
cases a business that
signs a contract to
perform part or all of
the obligations of
another's contract.
A subcontractor is a person
who is hired by a general
contractor to perform a
specific task as part of the
overall project and is
normally paid for services
provided to the project by the
originating general
contractor.
concept of a subcontractor is
in building works and civil
engineering, the range of
opportunities for
subcontractor is much wider
and it is possible that the
greatest number now operate
in the information
technology and information
sectors of business.
 SECURITY MONEY DEPOSIT
• A security deposit is a sum of money held in trust
either as an initial part-payment in a construction
process in addition to the EMD paid earlier by
contractor, As this amount is quite heavy and as the
construction is also under way for completion, the
security deposit is normally collected in the form of
Retention money from all stage payments made to
the contractor.
• The same is to be released after the completion of
the project by the owner.
EARNEST MONEY DEPOSIT
• earnest money is paid on the basis of certain terms
and condition. with the remainder due at a particular
time. If the contract is breached by failure to pay,
then the earnest payment is kept by the recipient as
pre-determined (liquidated) or committed damages
• For contractors whose EMD have been forfeited , (A
penalty for a fault or mistake that involves losing)
hey are not eligible to participate for the period of
one Year from the date of tender opening.
https://www.slideshare.net/kadabamukund/architecture-professional-practice
Thank you