4010610 – CONSTRUCTION MANAGEMENT

4010610 - CONSTRUCTION MANAGEMENT

(N- SCHEME)

(For VI – Semester Civil Engineering)

UNIT – I

CONSTRUCTION SECTOR IN INDIA

Construction Management – Definition- Need – Scope - Objectives and & functions - Role of
government and private construction agencies – Types of construction sectors - Public and Private
functions of construction management in national development - Construction practice:- the owner,
consultant, and contractor - Duties and responsibilities - Various stages of a construction project

FEASIBILITY STUDY

Study of necessity of project– Technical feasibility, financial feasibility, Ecological feasibility,

Resource feasibility, Recovery from the project, Economical Analysis –Building Economics –
Preliminary studies-Analysis – valuation.

PLANNING OF CIVIL ENGINEERING PROJECT

Objectives of planning – Public Project - Preliminary planning – Design factors – Site

utilization- – Reconnaissance survey – Preliminary survey – Analysis and plotting of data – Estimate :
preliminary and detailed estimate –Project report – Land acquisition – Administrative
approval – Technical sanction – Budget provision- Private project – Advantages of planning to
client and engineer – limitations -Stages of planning by owner and contractor.

CONTRACT MANAGEMENT

Types of contracts - Contract documents - Contractual obligations -Specifications - Tender

notice – Types - Tender documents - Earnest money deposit (EMD) and Security deposits (SD) -
Scrutiny and acceptance of a tender - Contract agreement – Contractual changes and termination of
contract – Work order – Execution of agreement – Sub contract - Rights and duties of sub-contractor.

UNIT – II

CONSTRUCTION ORGANISATIONS AND THEIR SUPERINTENDENCE

Forms of business organizations - sole proprietorship –Partnership - Joint stock company,- Co-
operative society,- and State enterprises- Advantages and Disadvantages -delegation of
responsibility, personnel requirements and division of works – Decentralization - Construction

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supervision and Superintendence – Requirements and Responsibilities of Executives of the project –

Qualities of Efficient construction Manager - Pay rolls and Records - Purchase and delivery of
construction materials and equipments – Percentage completion report - Insurance record - Project
office requirement - Organisation chart of a small / medium / large construction company (broad
outline only).

DEPARTMENTAL PROCEDURE AND ACCOUNTING

Organisation of P.W.D. - Responsibilities of officers - Accounting procedure(administrative

sanctions, technical sanctions, payment of bills) – Imprest and Temporary accounts – Cash
book - Works register - Accounting for consumable materials - Record for tools and plants –
Importance of M-book and its entries – Work charged establishment – Nominal muster roll (N.M.R) –
Daily labour reports (D.L.R)

UNIT – III

SCHEDULING AND TIME MANAGEMENT

Scheduling – Definition – Preparation of Schedule – uses and advantages – Classification of

Schedules – Methods of scheduling – Bar chart – Job layout – Work breakdown chart(WBC) –
Network for projects management – Activity – Event – Dummies – Basic assumptions in creating a
network – Rules for developing networks – Fulckerson’s rule for numbering the events - Critical Path
Method Critical and Subcritical paths – Critical and Non critical activities/events - – Significance of
critical path – Simple Problems -PERT – Time estimate – EST, EFT, LST, LFT - Earliest expected time –
Latest allowable occurrence time –Floats - Slack. Standard deviation - Variance – Simple problems.

RESOURCE MANAGEMENT

Definition – Need for resource management – Optimum utilization of resources- finance,

materials, machinery, human resources - Resource planning – Resource levelling and its objectives –
Construction planning – Stages – Operations – Schedule –Crashing – Need for crashing an activity –
Methods and tips for crashing – Time Vs Cost optimization curve – Cost slope and its significance in
crashing – simple problem on resource levelling ( not for examination)

UNIT – IV

QUALITY MANAGEMENT AND SAFETY

Importance of quality – Elements of quality– Quality assurance techniques (inspection, testing,

sampling) Importance of safety – Causes of accidents – Role of various parties (designer / employer /
worker) in safety management– Benefits – Approaches to improve safety in construction.

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CONSTRUCTION DISPUTES AND THEIR SETTLEMENT

Introduction – Development of disputes – Categories of disputes– Modes of settlements -

Arbitration

CONSTRUCTION LABOUR AND LEGISTATION

Need for legislation - Payment of wages Act - Factories Act – Contract labour (Regulation and
abolition) Act – Employees Provident Fund (EPF) Act.

ETHICS IN ENGINEERING

Human values - Definition of Ethics - Engineering ethics - Engineering as a profession -

Qualities of professional - Professional institutions - Code of ethics - Major ethical issues - Ethical
judgement - Engineering and management decision -Value based ethics.

UNIT – V

ENTREPRENEURSHIP

Definition – Role and Significance – Risks and Rewards – Concepts of Entrepreneurship –

Profile and requirement of entrepreneur - Programmes existing in India – SISI, DIC, TANSIDCO –
Funding and technical assistance to Entrepreneurship- NIDCO,ICICI,IDBI,IFCI,SFC

INFORMATION MANAGEMENT AND COMPUTERS

Introduction – Definition of MIS – Out lines of MIS – Use of computers in construction

industry Requirements of MIS – A data base approach – Definition –Benefits - A data base approach
to contractor’s account and its advantage – Basic concepts of estimation – Project management and
operations simulation packages – Construction automation and Robotics.

FINANCIAL MANAGEMENT

Elements of cash flow – Time value of money – Interest rate of capital – Present value
computation - NPV method – IRR method – simple problems - Global banking culture - Types of
banks –Activities of Banks – Corporate finance – Personal, retail and rural banking – Treasury
management.

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UNIT – I

CONSTRUCTION SECTOR IN INDIA

Definition

Construction management is a science which deals with the co-ordination and organizations of
constructions activities like man power, materials, equipments and finance. So that the projects
completed in optimum time and optimum cost using the best quality materials and techniques
maintaining quality.

Needs of Construction Management

• Men required for skilled and unskilled work, supervising and management
• Construction materials such as cement, bricks, aggregates and steel
• Machines required for easy and speedy construction such as trucks, earth moving machinery
like grader, cater pillar etc.

Scope of Construction Management

• About 50% of the development expenditure is spent on construction works; this covers
buildings, roads and railways bridges, dams, water supply and drainage system, irrigation
works, industrial sheds etc.
• Modern construction technology and management techniques like CPM, PERT etc to be
adopted.
• Construction management increased need for dwelling houses, building for schools, colleges,
hospitals, office etc.
• Building alone account for about half the construction expenditure.

Objectives of Construction management

• To have co-ordination between various construction agencies.

• To effect economy in construction.
• To exercise control over in the workmanship.
• To exercise control over the quality of materials.
• To reduce time of construction.
• To achieve optimum utilization of man power.
• To achieve optimum utilization of machineries.
• To execute the work in a planned and efficient manner as per designs and specifications

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Functions of construction management

1. Planning
2. Scheduling
3. Organizing
4. Staffing
5. Directing
6. Controlling
7. Coordinating

Role of Government Construction Agencies

• Preparations of designs, estimates etc.

• Allotment of fund after approvals from various departments
• Selecting contracting agencies and entrusting the work
• Effective quality control and best workmanship through technical staff.
• Coordinating between various categories.
• Enforcement of agreement, byelaws, labour welfare, economy and efficiency etc.
• Planning big projects in various stages.
• As far as Possible using local materials, plants, equipments to save foreign exchange.
• Planning Projects on long term benefits the society and Country.

Role of Private Construction Agencies

• It provides all services such as planning, investigation, design of their own, obtaining
approvals of the various government agencies (or) departments, construction, supervision,
contract billing etc.
• The service includes preparation of material statement procurement of quality construction
materials at competitive prices.
• Construction agencies follow as agreement, byelaws, stipulations, etc strictly
• Better understanding and relationship with the site engineers.
• These agencies collect various resources, including technical, non-technical and labour.

Types of construction sectors

1. Public sector
2. Private sector

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Private and Public functions of construction management

Aims of Public construction

1. Works to be executed for the welfare of the project

2. To cater the needs of public and society
3. Amount to be spent from government funds through legislation
4. Works which could not be provided by private parties due to common laws
5. To reduce unemployment problem to certain extent and increase economical development.

Aims of Private construction

1. Works are undertaken by Non-government agencies (or) Private agencies.

2. At present there is a rapid industrial growth in our country
3. Keeping in view of this trend, large real estate constructions have been started by private
agencies.

Advantages of Private Construction

• Industrial growth
• Income to Govt by taxes
• Increase in economy
• Providing employment opportunities
• Substantial growth in India’s (GDP)

Construction Team

The term construction team denotes the various parties which have to Co-ordinate on the
ground or site with the common aim of completing the work as per specifications, drawings and
details. The construction team consists of

1. Owner – The Initiation of the proposal for a project comes from the owner. The owner may be an
individual, group of individuals, private or various government departments.

2. Consultant (Engineer, Architect or Designer) – They includes structural, mechanical and electrical
engineers, architects, quantity surveyors, soil investigators, specialists and consultants etc.

3. Contractor – He is a person, firm or agency who undertakes to execute the work or to supply
certain materials on the basis of agreed rates of payment and in accordance with terms and
conditions of contract agreement.

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Duties and Responsibilities of Owner

• Owner has an ultimate authority over the project

• He provides finance and facilities for execution
• The major decision-making Power, rests with the owner regarding managerial, financial and
administrative aspects.
• He approves changes if any in the project scope or schedules
• He controls the project resources such as manpower, funds and property.
• After the completion of the work the owner arranges for the proper utilization and
maintenance of the work.

Duties and Responsibilities of Consultant

• Being a professional man, he gives shape to the proposal of the owner

• Preliminary investigations for the proposal of the project
• Preparing structural design and plans of the project.
• Preparing specifications and estimates management and execution of works
• Supervision and duties assigned to him
• Getting assistance from architects, town planners, horticulturists etc.
• Sending periodical progress reports etc.

Duties and Responsibilities of Contractor

• To execute the various types of work and to make all necessary arrangements for labour,
materials, machinery, power connections, transport and approach etc.
• To complete the project within the stipulated time as well as cost
• To Co-operate with site engineers and other engineers for taking measurements and
preparation of bills.
• Responsible for adequacy, stability and safety of all site operations and methods of
construction
• To submit proposed procedure and methods work in advance and proposed deployment of
plant and equipment’s
• Minimum facilities for workers such as rest sheds, water facilities, toilets, canteen etc.
• To avoid hindrance to traffic.

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Various stages of Construction Project

The Various stages of Construction of a project are as follows

1. Proposal (or) Conception

2. Study and Evaluation

3. Design (Drawings and estimate with specifications)

4. Contract

5. Construction

6. Utilization and Maintenance

A. Proposal (or) Conception

a) Many works are proposed due to the interest of certain individuals.

b) Present major works are proposed by government for the welfare of the society and
economical development of the country

B. Study and Evaluation

a) Various alternatives of the Project are studied and most feasible one is identified.
b) In Government projects, all administrative approval is accorded and a budget provision is
made at this stage.

C. Design

a) A realistic and detailed cost estimate is prepared.

b) It includes detailed design, working drawings, construction programme or schedule,
construction information, type of construction etc.
c) The economy in the cost of the project depends mainly on the decision taken at the design
stage.

D. Contract

a) They are compared and the work is allotted to a contractor

b) This method is generally adopted by government departments such as P.W.D etc.
c) Contractor documents are prepared describing terms and conditions of executing the project
and signed by contractor and the owner.

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E. Construction

a) The main activity in this stage is the control of site operations

b) All sub activities such as work sheds, supply of materials, equipment and other temporary
works etc.
c) In this stage, to prevent wastage of money, material and man power etc.
d) Continuous interaction between the designers/engineers and constructors is necessary
throughout the construction stage.

F. Utilization and Maintenance

a) Final stage of the Project is taken over of the structure by the owner or department, from the
contractor takes place.
b) All the records of actual work, money spent, change of designs if any etc. are to be maintained.

FEASIBILITY STUDY

Feasibility report

A feasibility report is an investment proposal based on certain information and factual data
appraising the project. Feasibility report is to be prepared for undertaking the project, giving the
under mentioned factors. The various stages of the project should be planned and analyzed to the
society,

1. Technical Feasibility

2. Financial Feasibility

3. Ecological Feasibility

4. Resource Feasibility

5. Economical Feasibility

A. Technical Feasibility

Technical Feasibility report gives a description of the project under the following heads.

1) Technology used in the Project

2) Size of the Project and its types
3) Location of the Project
4) Requirement of equipment’s, plants and machineries etc.
5) Human resources, labour, skilled and unskilled.

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6) Technical People: Engineers, Designers, Specialist etc.

7) Other Inputs (Special materials, Imported materials)

B. Financial Feasibility

The main objective of the financial feasibility study is to assess the financial viability of the
project. The main emphasis is the preparation of financial statement. The following factors have to be
considered regarding the project,

• Magnitude of financing required or approximate estimate

• Sources of finance
• Purely central government or state government, Private.
• Combined projects
• World bank aided
• Foreign aided
• Return on investment

C. Ecological Feasibility

The main factors to be considered under the study are the following,

• Pollution caused by the Project

• Any kind of deforestation for the formation of the project
• Conversion of wet and grass lands for the project
• Existing beautiful topography is to be ruined.
• Surrounding villages, land etc. to be affected.
• Destroying surrounding resources such as hillocks farm lands etc.
• Monuments of archeological interests to be affected.
• Decrease in rainfall, increase in intensity of heat, lowering of groundwater, water table etc.

D. Resource Feasibility

1) These are various activities in a project demanding varying levels of resources.

2) Various resources necessary to the project to be identified and their feasibility is to be arrested
by various methods of analysis
3) Normally, the resource to be considered are finance, men and materials.
4) It is checked whether technical services and requirements are available with proper design.
5) All resources feasibilities have to be arrested before taking up the project.

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E. Economical Feasibility

1) This study is to utility and nature of the project is to be ascertained.

2) The amount to be spent on the project is to be ascertained
3) The amount spent should be justified on the benefits of the project to the society or nation.
4) Various methods and their costs adopted in the project and comparative study is made an
economical one is to be selected.
5) If the amount to be spent is large and the outcome or benefit is very small. That project is not a
feasible one.

Building Economics

• The excavation of work in a planned and efficient manner as per design and specifications
within the prescribed time and with the greatest possible economy in expenditure is termed as
Building Economy.
• It is a study how people choose to use resources, it brings together a variety of specialized
topics relevant to building economy including, life cycle costing, cost estimating, cost indexes,
capital budgeting etc.
• Building economics still lacks solid theoretical foundation regarding cost benefit analysis,
economic technique for a project.

Valuation

The controlling factor in the valuation is the period of construction, cost of materials and
availability of skilled worker etc. The cost of land is to be taken into account is valuation of buildings.
The following factors to be considered,

• Location and Landscape facilities

• Plot area
• Built up area
• Type of building
• Class of building
• Workmanship
• Interior and Exterior Furnishing
• Architectural appearance

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PLANNING OF CIVIL ENGINEERING PROJECT

Objectives of Planning

The main objectives of planning are,

• It leads to organizing and staffing

• It directs, controls and co-ordinates
• It programming various stages
• Time required to complete the project is determined
• Approximate estimated costs are known
• Type, quantities and duration of equipment required
• Methods to be employed in the execution of the project
• Materials required for various activities are decided in advance
• Types of labour (skilled and unskilled) and their number required at various stages
• Availability and selection of various resources etc.
• Pre-tender works and post tender works
• Arrangement of funds in advance for various activities
• To take corrective and remedial action to ensure project time without delay etc.

Public Project

This type of project is an undertaking or enterprise owned and controlled by state or central
government for the welfare of the people at large is called as State enterprise or Public enterprise. It is
necessary for basic industries, defense requirements, and to prevent concentration of economic power
with private sector and to establish socialistic pattern of society.

Example: Harbour Project, Indian Railways, Defense establishment etc.

Preliminary Planning

The following aspects of a project are studied in preliminary planning,

• Topography
• Geological condition at site
• Climatic condition
• Approaches and diversion
• Cost of development
• Availability of materials
• Availability of labour

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• Tools and Plants

• Power and Fuel
• Water
• Local bye laws for regulation
• Public relations

Design Factors

The following are the design factors in designing stage.

1) Most of the construction cost depends upon its design, quality of the materials used and the
way of work is carried out.
2) Various alternate designs must be planned and analyzed before calling for a tender.
3) After analyzing different designs an economical design must be adopted
4) When preparing a specification for it, it must be prepared according to the necessity
5) Locality available materials must be listed
6) Construction engineer must use his full knowledge and experience.
7) Economy and quality must select a compact
8) Construction must be carried out in a well-planned workmanship

Site Utilization

Maximum area in a site to be utilized as far as possible as per bye laws. A layout plan should
be prepared to a scale of not less than 1:1000, indicating the number of buildings to be constructed,
roads, services, play areas and the open spaces meant for schools, colleges etc. The plan is to be
prepared by a competent Engineer and should be submitted to the town planning authority for
approval.

Survey

The following two types of surveys are conducted

1. Reconnaissance Survey

2. Preliminary Survey

A. Reconnaissance Survey

The Purpose of this survey is to determine the suitability of each alignment marked on the
map, during map study. This survey helps in conducting preliminary survey. If the reconnaissance
survey is for the location of a highway or railway, then the information of the following is collected.

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• River crossing and determination of suitable site for bridge or culvert construction
• The possible ruling gradient can be adopted
• Geological features of the area
• Source of supply of water and other materials required for construction
• Cost of land to be acquired
• Details of towns and villages that will be severed by the proposal
• Cost of construction

B. Preliminary Survey

It is a rough type of survey which is conducted to have a fair idea of the surrounding areas.
The preliminary survey is done with the help of a plane table compass or steel tape.

• Rough levels are also taken a different point so as to have of idea of earthwork
• A soil survey is also conducted by making borings and preparing sections indicating the oil
profile and the ground water levels.
• After the preliminary survey, the necessary plans and drawings are prepared
• A rough estimate of the cost of work and its ancillary work is prepared for each proposed
route.

Analysis and Plotting of Data

The following drawings are generally prepared for

1. Topographical maps

2. Population maps

3. Agriculture and industrial maps

4. Proposed plans.

Types of Estimate

A. Preliminary Estimate

• Preliminary estimate is required for preliminary studies of various aspects of a work or

Project.
• It will help to decide the financial position and policy for administrative sanction by the
competent administrative authority
• For buildings, approximate estimate is prepared as plinth area basis and cubic content basis
• For roads and railways preliminary estimate is worked out per km basis
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• For irrigation channels the estimate is worked out per km

• For water supply works, the estimate is worked out on per capita basis

B. Detailed Estimate

• Detailed estimate consists of working the quantities of each item of work and its cost
• The dimension, length, breadth and height of each item is taken out correctly from the
quantities of each item are calculated and then abstracting or billing are done
• The detailed estimate is prepared in two stages,
1. Details of measurement and calculation of quantities
2. Abstract of Estimate cost

Project Report

The report should be concise but comprehensive to give a clear idea and picture of the whole
project, the following information should be induced

1. Brief history of project

2. Reference to the administrative proposal

3. Necessary justification for the most suitability of the project

4. Description of the works involved in the project

5. Selection of site

6. Details about survey work

7. General specifications

8. Availability of materials and labour

9. Special plant and machinery required

10. Agency for the execution of the work

11. Labour amenities

12. Transport of materials

13. Cost of each phase of work

14. Time required for completion of work

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15. Total cost of project

16. Rent statement or revenue income

17. Comparison between investment and return

Land Acquisition

When projects are taken up for execution in public sector it becomes necessary to acquire some
lands owned by others, such lands may belong to other government bodies or may be a government
vacant land is termed as Land Acquisition. The following procedure will be adopted,

• First, a map is prepared by survey members of lands in which the project lines.
• Map can be prepared with the help of Local revenue officer.
• Next a tabular form is prepared showing the area of the land
• This land acquisition statement is submitted to the government
• After careful consideration the government publishes its decision in the government gazette
on the land acquisition
• Orders will be served on the Revenue department for acquisition based upon the government
rate and the prevailing local rates, the cost of the land will be paid to the land owner, as
compensation.

Administrative Approval

• Administrative Approval denotes the formal acceptance by the department concerned of the
proposal
• After the approval is given, the engineering department takes up the work and prepared
detailed design, plans and estimates and then executes the work
• The Engineering departments prepare approximate estimates and preliminary plans, submits
to the department concerned for administrative approval

Technical Sanction

• Technical sanction means the sanction of the detailed estimate, design calculations, quantities
of works, rates and cost of the work by the competent authority of the engineering
department.
• After completion of technical sanction estimate, only the work is taken up for construction
• Technical sanction is obtained for a work which has already got the administrative approval.

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Budget Provision

• Budget means an annual financial statement of the anticipated receipts and expenditures
• Budget is prepared by the finance department on the basis of statement of materials furnished
by the department officers and administrative department of the secretariat
• In P.W.D chief engineer prepares the annual budget statement after collecting information and
statement from S. E’s and D. E’s.
• S. E’s and D. E’s submits the budget proposal to the secretary to Government, secretary after
submits it to Finance Department.

Private Project

These Projects or works are due to non-government agencies or private agencies. Due to
financial help advanced by financial institutions many industries have been started by private
agencies or industrialist.

Advantages of Private Project

• Industrial growth
• Increase in economy
• Providing employment opportunities
• Income to Government by Taxes

Advantages of Planning to Client

• Planning of phases helps in allocating money at intervals or time-phased manner

• Human resources or man skilled required can be estimated in advance and the responsibility
for carrying out can be allotted
• Recruitment of staff and labour can be phased so that there is no wastage of manpower and
material
• Procurement or hiring of plants and machinery can be done at the planned time
• Considering the work plan and time schedule, works can be conveniently divided as
pretender works or post tender works
• Particularly funds can be arranged when it is necessary.

Advantages of Planning to Engineer

• Engineer can prepare estimates and design of structures as per planning

• Primarily an engineer can visualize by his human mind, activities, resources etc.
• Constraints and interrelation ships can be understood

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• Engineer can prepare his own plan informally

• As per planned phases he can allocate responsibilities to individuals.
• It established the basis for monitoring and control by the engineer

Stages of Planning by Owner

The following stages can be adopted in planning by the owner

• Proposal or Initiating
• Identifying the project
• Designs, Drawings and estimates preparations
• Arrangement of funds from various resources
• Project divided into various stages or divisions
• Giving priority to some divisions of work
• Fixing method to be employed
• Type of materials and their requirements
• Type of labour required
• Time estimated
• Preparation of various schedule
• Employment of engineers for site work, supervision measurement, billing etc.

Stages of Planning by Contractor

The following stages can be adopted in planning by the Contractor

• Planning for financial resources from his own or others

• Preparing a master plan for carrying out the work
• Preparation of material chart, labour chart for the various activities/jobs
• Arrangement of jobs in sequential order
• Arrangement for equipment and plants and time
• Arrangement of labour in advance
• Details of work to be given to sub-contractors
• Employing technical engineer or engineer supervising and controlling field work
• Construction chart/ schedule is prepared for every week
• Money required for various stages
• Fixing priority work to be done such as site arrangement, water supply, power line
arrangement, labour rest sheds, transport etc.

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CONTRACT MANAGEMENT

Contract – Contract is an undertaking by a person or firm to do any work or to supply materials,

under certain terms and conditions

Types of Contracts

1. Piece work Contract 6. Materials supply Contract

2. Lump-sum Contract 7. Cost Plus percentage rate Contract

3. Item rate Contract 8. Cost plus fixed fee Contract

4. Percentage rate Contract 9. Target Contract

5. Labour Contract 10. Negotiate Contract

Contract Documents

Contract document is a written document executed by the successful tender. Every written
contract clearly describes the work and defines the right and obligations of the parties namely
contractor and owner. A Contract document should consist the following set of documents

1. Title Page
2. Index Page
3. Tender Inviting Notice
4. Tender Form
5. Schedule of Issue of materials
6. Drawings
7. Specifications
a. General Specification
b. Detailed Specification
8. Conditions of Contract
9. Special Conditions

Contractual Obligations

The following are the obligations of a contract

1. A Contract is enforceable by law and satisfy the requirements of law

2. It is a legally binding agreement between two parties
3. The contractor should not be minor, intoxicating person and lunatics

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4. Amount and form of earnest money and security money to be deposited

5. Proportionate progress of work to be achieved as per agreement
6. Time of completion of work and extension of time under certain situations
7. Engaging other agency at contractor’s risk and cost
8. Penalty for poor quality and unsatisfactory work
9. Arbitration for settlement of disputes.
10. Change in designs and drawings etc. and valuation of variations.

Specifications

Specification describe the nature and class of work, materials to be used in the work, mixes
proportions, labour to be employed, method of work, precautions and preliminaries to be taken,
quality of workmanship etc.

Purpose of Specifications

1. It guides the bidder at the time of tendering for arriving a fair price
2. It provides guidance for execution and supervision of work by Engineer
3. It serves as a useful legal document between owner and contractor
4. It furnishes the details of different items of work, the quantity of materials, workmanship etc.
5. It is useful for preparing estimates and contract specifications.

Types of Specifications

1. General or Brief Specifications

2. Detailed Specifications
3. Standard Specifications
4. Guide Specifications
5. Manufacture’s Specifications

Guidance of Specifications

• Thailand detailed standard specifications (TNDSS)

• Standard specifications for roads and bridges (SSRB)
• National building code (NBC) published by ISI
• Railway department
• Military Engineering services
• Central public works department (CPWD)

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Tender

Tender is an offer in writing to execute some specified work or to supply specified articles,
materials or equipments at certain rates within a fixed rate, under certain conditions of contract and
agreement between the contractor and the department or owner or party.

Sealed Tender

The rates are quoted by the tenders in the tender form and the rates are submitted to the
competent authority in a sealed cover is called as sealed tenders. The sealed cover should be
personally handled over to the officer receiving tenders or sent by registered post, so as to reach him
with in the time of the due date advertised. Two sealed covers are to be submitted one cover
consisting details about the contractor and the other cover containing rates and materials etc.

Tender Notice

Tender notice is the publicity of offer to the interested parties or contractors to quote their rates
for the construction of proposed work or supplies made. The tender notice should contain the
following particulars and informations,

1. Name of the department

2. Designation of the department
3. Name of work and its location
4. Time of completion
5. Cost of tender form and conditions of contract
6. Date, Time and place of tenders
7. Estimated cost of work
8. Place, date and time of availability of tender forms
9. Last date and time for submission of tender forms
10. Amount of Earnest money deposits to be made and mode of payment
11. Amount of security money deposits
12. Time allowed for execution of works
13. Designation of the officer opening the tender
14. Amount to be paid for tender document
15. Conditions of production of income tax certificate

Tender Documents

Tender documents consist of all important informations required for tenders of a particular
work and tender form. Tender documents generally consists of three parts,

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1. General condition of tender

2. Schedule items of work with clear specifications
3. Special conditions

Tender documents generally furnish the following particulars.

• Layout Plan (Showing area of work)

• Set of drawings, including working drawings
• Detailed specification for each item of work
• Schedule of quantities of the various items of work
• Tender form and Notice Inviting Tender (NIT)
• General conditions of contractor
• Complete and Technical specifications
• General climatic conditions in the area
• Location of the place where water is available
• Income tax clearance certificate and solvency certificate
• List of materials like bricks, sand etc.

Earnest Money Deposit (EMD)

While submitting a tender the contractor is to deposit a certain amount with the department as
earnest money as guarantee of the tender, the department an amount ranging from 1% to 2% of the
cost of work is called as Earnest Money Deposit.

Security Deposit (SD)

The successful tenderer has to deposit with the department 10% of the value of the work is
termed as Security Deposit. This money is held in deposit during the period of execution of work

Scrutiny of Tenders

The following procedure are involved

STEP – 1: Rate and amount are tabulated in the form of comparative statement

STEP – 2: While preparing the statement, it should be taken to note down all the important terms and
conditions by the bidders

STEP – 3: Arithmetic calculations should be checked with respect to rates, amount and quantities etc.

STEP – 4: The tenders are thoroughly checked up and properly compared

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STEP – 5: The tenders may suggest his own specifications for some of the items of work

STEP – 6: Offer should be reasonable and comparatively favourable with the budgeted provision

Acceptance of Tenders

The tender accepting authority should consider the following regarding the tenderers,

1. Financial capacity of each tender

2. Capacity to do the work
3. Past records as Contractors

The tender accepting authority has the right to reject any or all tenders without assigning any
reason,

• Single tender
• A tender other than the lowest
• Two tenders of lowest value
• Higher value tenders
• No response to tender
• Withdrawal of tender

Contractual changes of Contract

The charge may be due to the following reasons

• Undue delay in the progress of work

• Exceeding the time of completion
• Poor quality of work
• Minimum wages and compensation of labour
• Sub letting of work without permission from the authority
• Using substandard materials
• Not following the specifications of the work
• Not using proper materials, machineries as per agreement.

Termination of Contract

Before terminating a contract, the following procedure to be adopted

1. Oral Instructions
2. Written Instructions
3. Time should be given for the contractor to rectify the defects
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Sub contract

A Sub-contract is an agreement between the main contractor and one or more subcontractors
in which the sub-contractors agree to carry out a portion of work of the project. There is no
relationship between the sub-contractor and the owner. All the works performed by the sub-
contractor for the main character should be governed by an appropriate agreement between two
contractors.

Rights of Sub-contractors

1. To receive copies of specifications, drawings and other details given to the main contractor
including a copy of unpriced schedule of quantities.
2. He is not liable for any omission, commission or negligence of the main contractor.
3. In case of any fire hazard or others, the main contractor is supposed to compensate the
damage
4. He is supposed to get the payment from the main contractor within 15 days after the
consultant certifies the payment
5. In case of disputes, he has the right to take steps within the provision of the contract

Duties of Sub – contractors

1. He is supposed to execute and complete the specified work

2. He is supposed to follow the instructions of the architect/ Engineer
3. He should make his own arrangement of power and water from the source
4. He should insure his own men and property
5. He should not charge the main contractor to rectify and defect made on his own work
6. He should execute the work allotted to him as per the original contract executed by the main
contractor.

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 4010610 – CONSTRUCTION MANAGEMENT

CONSTRUCTION ORGANISATIONS AND THEIR SUPERINTENDENCE

FORMS OF BUSINESS ORGANIZATIONS

The following categories of business organizations are given below,

1. Sole Proprietorship
2. Partnership
3. Joint stock company
4. Co-operative society
5. State Enterprise

1) SOLE PROPRIETORSHIP

• Sole Proprietorship is the oldest form of business organizations

• It is easy and simple to organize
• Sole Proprietorship is a form of business organizations in which an individual invests the
entire capital, uses his own skill and is solely responsible for the results of his business
• This type of one-man business is called sole proprietorship or individual proprietorship or
single entrepreneurship.

FEATURES OF SOLE PROPRIETORSHIP

• One man ownership and control

• Capital Contribution
• Management and control
• Unlimited liability
• Sharing of Profits

ADVANTAGES OF SOLE PROPRIETORSHIP

• Ease of formation and dissolution

• Flexibility of operation
• Maintenance of secrecy
• Quick discussion and prompt action

DISADVANTAGES OF SOLE PROPRIETORSHIP

• Limited finances and Management skills

• Unlimited Liabilities
• Uncertainty of the duration of the firm

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2) PARTNERSHIP

If more than one person jointed and starting the particular business firm means is termed as
Partnership. The partners agree to share the profits and a contract all the conditions of the
partnership are signed between the partners

ADVANTAGES OF PARTNERSHIP

• Easy formation
• Large resources
• Balanced judgement
• Flexibility
• Reduced risk

DISADVANTAGES OF PARTNERSHIP

• Decision making is not too easy

• Maintenance of secrecy is not easy

3) JOINT STACK COMPANY

Joint stack company is an artificial body created by law for carrying on some business by an
association of persons. Many big construction companies like Hindustan Construction company,
Larsen and Toubro, Gammon India etc. Joint stack company is the best form of organization for
carrying out major construction projects both with in the country and abroad

ADVANTAGES OF JOINT STACK COMPANY

• Stability
• Mobilization of large resources
• Limited liability
• Easy and speedy transferability of shares
• Diffusion of Ownership
• Better credit

DISADVANTAGES OF JOINT STACK COMPANY

• Lack of personal touch

• Lack of unity of management
• Separation of ownership and control
• Complicated legal formalities

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4) CO-OPERATIVE SOCIETY

Co-operative society is an association of persons who have voluntarily joined together to

achieve a common economic interest

ADVANTAGES OF CO-OPERATIVE SOCIETY

• It can pay better wages to workers

• To Produce better quality of goods and facilities
• Remove the middle agents and brokers

DISADVANTAGES OF CO-OPERATIVE SOCIETY

• Limited finance
• Inefficient management
• Lack of co-operation

5) STATE ENTERPRISE

State enterprise is an undertaking or enterprise owned and controlled by state and central
government, for the welfare of the people at large. Many construction projects like multi-purpose
hydel projects, thermal power plants, steel industries and many mega projects have been executed
either by state or central governments.

ADVANTAGES OF STATE ENTERPRISE

• Better management
• Large financial resources
• Profits to be used for public welfare
• Security of service for personnel employed

DISADVANATGES OF STATE ENTERPRISE

• Delays in execution
• Lack of personal interest
• Lack of responsibility

DELEGATION OF RESPONSIBILITY

Whenever any one is expected to shoulder to responsibility of completing a particular job, he

must be given of sufficient authority to achieve this responsibility. They must be delegated with
adequate authority in proportion to their responsibilities.

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PERSONNEL REQUIREMENT

• Expert in the particular area or field

• Sound technical Knowledge
• Personnel contract with his sub ordinates
• Wide Knowledge of government department tax structures, economical trend etc.
• Keeping all sub ordinates under his direct control
• Solving the difficulties to the workers
• Ability to forecast finance problems, production, sales, profits etc.

DIVISION OF WORK

The total work of an organizations is divided into various activities which are necessary to
divide the work. It creates a structure of functions and duties to be performed, this otherwise known
as Departmentation. It is the grouping of the activities of the enterprise.

DECENTRALIZATION

Decentralization means partial dispersal and devolution of management authority from the
central or top management to lower management levels in a formal or purposeful manner.
Decentralization is a systematic effort made for delegating authority to the lowest levels in the
organization.

ADVANTAGES OF DECENTRALIZATION

• Relief to top executions

• Motivation of Sub-ordinates
• Intimate relationship
• Greater co-ordination and control
• Development and Utilization of talents

DISADVANTAGES OF DECENTRALIZATION

• Lack of co-ordination
• Costly
• Lack of able managers

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CONSTRUCTION SUPERVISION AND SUPERINTENDENCE

Normally construction works are supervised by engineers or junior engineers. Site engineer is
in intermediate charge of construction. The Engineer should have a through technical knowledge
about the materials, equipment, construction methods etc.

The duties of site engineer are as follows,

• Ability of superintendence – Controlling workers, achieving targeted progress, etc.

• Inspection of materials procured regarding quality
• Storing of materials at the site
• Arranging labour as per schedule
• Organizing labour at site and achieving maximum output from them.
• Selecting experienced and trained construction workers
• Testing specimens of materials in lab and their suitability
• Inspection of tools and equipments to be used in construction
• Supervision of work regarding method and quality of work and giving instructions regarding
works
• Analyzing the progress at different stages
• Preparing progress report, construction report, labour slips etc.
• Taking corrective action for defective works done
• Taking measurements of work done and entering in M-Book
• Maintaining proper account of materials schedule
• Checking progress of construction with construction schedule
• To exercise the quality, quantity and financial control

REQUIREMENT OF AN EXECUTIVES OF THE PROJECT

• Managers are an elite group in society, are respected and admired for their power, poise and
pomp
• Managers are the focal point of decisions and initiate action and interactive processes
• Managers have their own style of management and leadership
• Managers should have authority, controlling, tactics, maintaining discipline, education, age,
cordial movements with workers etc.
• The construction organizations move towards its success of project

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RESPONSIBILITIES OF AN EXECUTIVES OF THE PROJECT

• Provides effective and supportive leadership

• Extends reasonable freedom to workers for operational purposes
• Ability to organize, direct and controls of works
• Character of resourcefulness and understanding problems etc.
• A manager should have the under mentioned skills

a) Conceptual Skills – Ability to form images, ideas, to visualize and understand the future

b) Analytical skills – Ability to proceed in a logical step – by – step and systematic manner

c) Administrative skills – Ability to regulate organizational events in an orderly manner

QUALITIES OF EFFICIENT CONSTRUCTON MANAGER

• Knowledge of mob psychology

• Punctuality and discipline
• Understanding the problems and difficulties
• Having technical knowledge regarding the work at site
• Knowledge of materials, properties and uses
• Knowledge of understanding drawings etc.
• Capacity to control the labour force without strained feelings
• Able enough to understand job evaluation and give job instructions

PAY ROLLS AND RECORDS

Every month of a bill is to be prepared for the payment of salary to employees of any section
and total amount is calculated is called as established and the salary bill is termed as Payroll. A
Payroll should contain the following details,

1. Name of the employee

2. Designation
3. Pay
4. Allowance such as D.A, H.R.A and other allowances
5. Deductions if any such as advance, loan installment, provident fund contribution, Insurance
premium etc.
6. Net salary to be paid
7. Signature of the employee on revenue stamp of necessary

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Pay disbursement officer signs at the bottom of the pay roll and certifies that the amount is
distributed. The payroll is sometimes prepared in duplicate one sent to the higher officer and another
retained as a record. All month wise payrolls and any special payments are all maintained as records,
and yearly expenditure on establishment is recorded for audit. Some times payroll is prepared for
payment on nominal muster roll and amount disbursed. In this type of payroll (NMR), extra
informations such as attendance, wages of individual labour, work done payment made are record.

PURCHASE OF CONSTRUCTION MATERIAL AND EQUIPMENT

A material schedule is to be prepared and materials which are necessary at various stages are
worked out. The engineer in charge should a good knowledge of source of supply of materials,
market conditions and judging the rates etc.

a) METHODS OF BUYING MATERIALS

• By Inviting tenders
• By inviting Quotations
• Buying from sales representatives
• Placing order under select suppliers

b) PRINCIPLES OF BUYING

• Right Quantity
• Right Quality
• Right Price
• Right time
• Right Source

c) PURCHASE ORDER

• Order number
• Descriptions of materials
• Specifications of materials
• Quantity required
• Date of delivery
• Prices Quoted and manner of payment
• Any other conditions such as shipping instructions and transporting equipments and
machines etc.

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DELIVERY OF CONSTRUCTION MATERIALS AND EQUIPMENTS

• The materials and equipments ordered should be received or taken delivery by the site
engineer in charge
• If it is by lorry, way bills to be produced and delivery is taken at site itself.
• The machineries and equipment should be checked by competent personnel, for satisfactory
running performance and a certificate to the effect is to be received.
• Invoices and goods received notes to be checked and then only payment is to be made as per
quoted rates
• Equipments and machineries to be delivered to foremen, drivers etc. as the case may be and
they may be made fully in charge of these items.
• A separate log book for each equipment is to be maintained.
• The equipments should be placed in safe sheds or godowns.

PERCENTAGE COMPLETION REPORT

• If the work is completed, final bill is to be prepared and paid along with refund of deposits
such as SMD etc.
• A completion report is to be sent with a certificate that the entire work has been satisfactorily
completed.
• This percentage completion report will help the higher officers to know the progress of work.
• If there is any delay and corrective action to accelerate the progress of work within stipulated
time.
• The percentage completion report will help the engineer to know the reasons for the delay if
any and also guide them in future construction, to adopt the methods to keep the progress
percentage as planned.

INSURANCE RECORD

• In modern business there are a variety of risks which proprietors will have to undertake.
• There can be no business without risks.
• Some risks can be conveniently passed on to specialized institutions known as Insurance
record.
• A separate record should be maintained regarding insurance policies and premiums in large
companies

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The following details are in the record,

1. Number of Persons
2. Type of insurance
3. Number of insurance policies
4. Method of premium to be paid
5. Total amount of the premium

PROJECT OFFICE REQUIREMENT

Project office is a place where project is declined, with its scope, goals, name and authority
delegated project manager etc. The following requirements to be adopted

1. Primary requirements
2. Secondary requirements
3. Tertiary requirements
4. Organizational setup
5. Project office behaviour
6. Project office staff or Project organization structure, project team or Human resources
7. Other requirements

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ORGANISATION CHART OF A SMALL CONSTRUCTION COMPANY

ORGANISATION CHART OF A MEDIUM CONSTRUCTION COMPANY

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ORGANISATION CHART OF A LARGE CONSTRUCTION COMPANY

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DEPARTMENTAL PROCEDURE AND

ACCOUNTINGORGANIZATION OF PWD

DIFFERENT ENGINEERS DEPARTMENTS IN TAMILNADU

1. Public works department (Buildings)

2. PWD (Irrigation)
3. Highways and Rural works
4. Tamilnadu water supply and drainage board
5. Tamilnadu Electricity board (TNEB)
6. Tamilnadu housing board
7. Tamilnadu adidravidar Housing and Development
8. Tamilnadu slum clearance board
9. Harijian housing and development corporation
10. Tamilnadu transport corporation construction department
11. T.N police housing construction corporation etc.

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RESPONSIBILITIES OF CHIEF ENGINEER

• Prepare the annual budget estimates of work under his control

• After allotment of funds, he is to see that sanctioned amount for each work is properly utilized
• Responsible for monitoring proper accounts and control the expenditure
• During the process of work, excess funds are required to complete the work
• He has to look after the administrative matters such as employment, transfer, leaves and other
related matters
• When there are large number of diverse works, there may be additional CE
• For administrative functions, he is assisted by a deputy chief engineer
• He towns the entire state and inspects important works and gives advice and direction

RESPONSIBILITIES OF SUPERINTENDING ENGINEER

• He is professional and administrative head of a circle and responsible to the CE

• He is responsible to see that rules, regulations, execution of works and maintenance.
• If he finds any excess materials in the division of work, he can arrange it other division where
it is needed
• Ensure that the works are executed efficiently and economically
• Keep strict watch and control over the works
• Inspect the records, accounts, stock etc. of all division works once a year
• If any irregularity is found it is reported to the chief engineer for further necessary action
• Prepare standard schedule of rates every year and revise them.

RESPONSIBILITIES OF DIVISIONAL ENGINEER/EXECUTIVE ENGINEER

• He is the executive officer of the division

• Ensure that accounts are properly maintained and submit to the accountant
• After the work started, ensure the work is carried out as per specifications and approved
design
• For additional expenditure, he has to report to the S.E for necessary approval.
• He is concerned with drawing and disbursement of payment to the contractor and department
labourers
• Ensure that M- Books are kept by S.D.O as per instruction of the department
• Check 30% measurement of M.B measured by the sub co-ordinates
• Ensure properly maintenance and machineries and housing safely
• Ensure the plants and tools are kept in working order and the surplus item are kept well
• Prepare the completion reports and close the accounts for the completed works.

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RESPONSIBILITIES OF ASSISTANT EXECUTIVE/DIVISIONAL ENGINEER /SUB

DIVISIONAL ENGINEER

• He is directly in charge of the works

• He has to supervise and manage the works
• He is responsible for the quality and progress of the works
• He controls and guides the section officer
• He has to maintain initial accounts and has to submit monthly accounts to E.E/D. E
• He is authorized to disburse certain items of bills
• He is assisted by the head clerk for the maintenance of accounts
• He has to check the measurements of works, taken by section officer and initial each page in
measurement book with date
• He has to report the E.E, if any damage of work or accident takes place
• He has to check all M - Books of his sub-division at least once a year
• He has to check stores twice a year and tools and plant once a year
• To summarize the estimates, revised estimates etc., before submitting the higher authorities.

RESPONSIBILITIES OF ASSISTANT ENGINEER/JUNIOR ENGINEER/SECTION OFFICER

He is an engineer entrusted with the charge of section in P.W.D. The section officers are
usually called as Assistant Engineer or Junior Engineer. They are back bone of the department. They
are directly in charge of works in their section. The duties of a section officer are classified under
three heads,

a) Works
b) Stores
c) Accounts

a) DUTIES OF WORKS

• Responsible for execution and management of all works

• To carry out survey works for the works to be done in his section
• To ensure that the work is carried as per specification and drawings
• Prepares estimate for any new work, maintenance or repair works
• Records the maintenance of all works done or supply made in the section
• Ensure that no expenditure is incurred without technical sanction and allotment of funds
• Maintains all buildings in proper condition
• Inspection the works very frequently and notes the important points on works
• Take measurement of all works and records them in M- Book and submit book in A.E.E

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• Supervise the work of daily labourers employed on daily wages and submit report to A.E.E
• Any unexpected happenings such as theft, accidents etc. are reported to nearest police station.

b) DUTIES ON STORES

• Responsible for the safe custody and maintenance of accounts of all stock and tools and plants
in his charge
• Prepare and submits all periodical returns of stock, tools and plants on due dates
• Check stores at every six months and prepares half-yearly distribution list of stock and yearly
report of tools and plants
• Issue materials on proper authority and takes proper receipts for all issues
• To see that instruments and equipments when not in use, are kept in good condition
• Ensure that adequate security arrangements are made for the stores
• Arrange to unload wagon and take delivery promptly to avoid demurrage

c) DUTIES ON ACCOUNTS

• Responsible for keeping the temporary and permeant Imprest accounts

• The Imprest account should be closed on due date and submitted to S.D.D or E.E
• Prepares the muster roll of labour engaged on work and submits to S.D.O on due dates
• Prepares the pay bill of work charged establishment and submits to S.D.O on due date
• Maintains accounts of expenditure of all works in the charge
• Prepares a bill on work done by contractors and submits them to the higher authorities

TYPE OF PAYMENT

1. First and Final Payment

2. Running OR Interim or on account payment
3. Intermediate or secured advance payment
4. Final Payment
5. Advance Payment

1) FIRST AND FINAL PAYMENT

• Single Payment made for a job or contract on its completion

• It is generally applicable for small works executed under piece work agreement

2) RUNNING OR INTERIM OR ON ACCOUNT PAYMENT

• This type of payment is made in a running account to a contractor for the portion of work
done or supplies made duly measured and entered in the M. Book

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• The contractor is paid from time to time during the progress of work

3) SECURED ADVANCE PAYMENT

• This payment is made on the security of materials brought by the contractor to the site of work
• The completed item of work is undertaken by the contractor alone

4) FINAL PAYMENT

• This is a last payment made to a contractor on running account

• The completion of his contract and full settlement to the contract

5) ADVANCE PAYMENT

• Advance payment is not generally made to the contractor except in special circumstance
• Work progress can be measured by the contractor

TYPES OF BILLS FOR PAYMENT

Various standard forms of bills and vouchers are used for payment, according to the nature of
works. White forms are used for running bills and yellow forms are used for final bills.

1. First and Final bill – Form 24

2. Running account bill – Form 26
3. Accounts of secured advance – Form 26A
4. Lump sum contract account bill – Form 27A
5. Lump sum contract account bill – Form 28B
6. Hand receipts
7. Advance to Contractors

1) FIRST AND FINAL BILL – FORM 24

• This form is used for making final payment to contractor or supplies on completion of the job
• A single form may be used for making payments to several payees, if they relate to same work
and billed at same time

2) RUNNING ACCOUNT BILL – FORM 26

• This form is used for all running and final payments to contractor except lumpsum contracts
• This form is also used in advance payments are proposed to be made in respect of the same
work against the contractor.

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3) ACCOUNTS OF SECURED ADVANCE - FORM 26A

This form is required to be attached with the bill form 26, in case of secured advances are
made or already outstanding in respect of the same work against the contractor

4) LUMP SUM CONTRACT ACCOUNT BILL – FORM 27A

• This form is used for intermediate purposes to contract on lumpsum contract including
secured advances
• No details of work done need be reproduced in the bill.
• The reference of page and serial number of measurements, entered in M. Books should be
made

5) LUMP SUM CONTRACT ACCOUNT BILL – FORM 28B

• This form is used for final payment to contractor or lumpsum contractors only
• This form is not used for any other type of contract

6) HAND RECEIPTS

This form is used for all miscellaneous payments and advances for which all forms mentioned
above cannot be used.

7) ADVANCES TO CONTRACTORS

• Advance payments for work actually executed

• Secured advance
• Lumpsum advance
• Petty advance
• Special advance

PREPARATION OF BILLS

1. Before preparing the bill of a contractor the entries in the M. Book are to be scrutinized by the
sub divisional officer
2. The bill is then prepared on appropriate form of the measurement entries
3. The rates allowed are entered either in the abstract of M. Book or bill itself by the S.D.O
4. The full rates as per the agreement are allowed, if the quality of work done/supplies made up
of the specification.
5. Bill should be signed by the section officer who has prepared the bill and by the contractor.

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PAYMENT OF FINAL BILL

• When the payment is passed, every page of the M. Book containing the relevant detailed
measurements scored out by a diagonal red ink line
• When payment is made, the number and date of the voucher for payment must also be entered
both the M. Book and Voucher after taking necessary acknowledgements from the contractor.
• A distinct yellow form is used for final payment
• The supervisory authority should furnish a certificate that the work has been completed in full
satisfaction of the contract provision
• The contractor is required to furnish signed statement that he has received the payment in full
settlement of all claims

DIFFERENCE BETWEEN IMPREST AND TEMPORARY ADVANCES

S. No Imprest Advance Temporary Advance

1. Permanent advance of a fixed sum of Temporary advance by the disbursing officer
money
2. Payments are made before obtaining pay Payments are made after obtaining pay
orders from the disbursing officer and orders for the disbursing officer
recoupling officer
3. Imprest advance is recoupled time to Temporary is not recoupled
time
4. All vouchers should be serially numbered All vouchers should not be serially numbered
5. The account of Imprest advances should The account of Temporary advances should
be checked and passed by the officer be close as soon as possible

CASH BOOK

Transactions relating to receipts and payments of cash in a division or sub division are
recorded in a book called cash book. The cash book is one of the most important record of the
departmental office. The pages of the cash book must be machine numbered. At the end of each
month the receipts and payments are compiled and submitted to the accountant general by the
division office.

PROCEDURE FOR MAINTAINING CASH BOOK

• Every entry must be concise

• The date, number of vouchers, name of the work with a brief description
• The debits and credits to each separate work, head of accounts should be entered separately

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• No receipts or payment other than cash, should be entered in the cash book
• Entries should be continuously and no line should be left bank
• Cuttings, over writings or interpolations etc. must be avoided.
• Transaction should be entered as soon as they occur in order of occurrence
• If the transactions of private cheques are large only totals of daily receipts and remittance
should be entered in the cash book
• When an Imprest advance and Temporary advance is given, it should be entered in red link
• The amount of unpaid Imprest received back is shown on the receipts side with red link
• All the payment should be debited immediately
• Totaling all receipts and payments and finding out their balance is known as balancing of cash
book; it must be equal to amount in the chest
• He should sign it at the end of each month and verify the balance in the chest.

WORKS REGISTER

Work register is a register maintained in sub division office and division office. Works are
divided into various groups and entered in the register. It is classified into two ways,

1. Original works
2. Repair works

a) ORIGINAL WORKS

All these works which have been sanctioned and fund allotted in the budget are only entered.
Estimates sanctioned for the repair and maintenance works are entered separately. It is further
classified as

1. Major estimate/work
2. Minor estimate/work
3. Petty works

b) REPAIR WORKS

• All works for which contract is settled and agreement received and site is handled over are
shown separately
• Separate register is maintained for the works
• Progress of work within stipulated time of work
• All works are entered alphabetically
• At specified intervals, progress of work executed, value of amount, percentage expenditure is
also noted.

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• With the help of works register, the following works can be founded
1. Total amount Sanctioned
2. Number of works sanctioned
3. Amount spent at a specified time
4. Progress of work
5. Percentage expenditure

ACCOUNTING OF CONSUMABLE MATERIALS

STORES

It is necessary to various types of materials of specified specifications, well in time before the
commencement of the work. These materials are kept as a stock in a central store and issued when
required.

CLASSIFICATION OF STORES

1. Stock/General stores (Consumable materials)

2. Materials charged direct to works
3. Tools and plants

CONSUMABLE MATERIALS

Generally stored consumable materials are following; cement, steel, timber, paints, bitumen
etc. The materials come under stock or general stores. The stock is kept in stores or godowns and is in
charge store keeper or section officer. A separate stock is kept and maintained as stock account. The
account is maintained under two major heads

1. Receipt of stock materials

2. Issue of stock materials

1) RECEIPT OF STOCK MATERIALS – Following sources

a) From suppliers and contractors – Most of the supplies are procured from suppliers and contractors

b) Transfer from other divisions – Based on availability of materials exceed their requirements

c) Direct from manufacture/ from departmental manufacture – Items like Brick, lime etc.

d) Works, buildings – Based on recovery of works or building. The authority to receive is given by
D.O/S.O. One copy to S.D.O and One copy to D. O for record and payments

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2) ISSUE OF STOCK MATERIALS

• For use on works either by contractor or department

• For dispatch to other divisions/ departments
• For sale to contractors and other parties etc.
• All the transaction of stock should be closed on the date fixed every month (25th to 31st March)

IMPORTANCE OF M. BOOK

• It is used for the entry of measurements of all works and supplies made
• It is the original record of actual measurements
• It is the basis of all accounts such as work done by the contractor, materials supplied and
labour employed by the contractor, materials purchased by the department
• Measurement should be kept in safe custody because sometimes it has to be produced as
evidence in a court of law
• All M. Books are serially numbered and register in maintained by divisional office
• Date of issue and return should be record in M. Book
• A similar M. Book register is maintained by the sub division office indicating the name of the
section and date of return is record.
• M. Books are available as follows,
1. Prefix A – 100 Pages
2. Prefix B – 80 Pages
3. Prefix C – 25 Pages
• A movement register will also be maintained in D.E office, regarding M. Book
• The register shows the position of M. Books whether they are in treasury, D.E.S office, S.O
office for checking measurement.

RULES FOR RECORDING MEASUREMENTS IN M. BOOK

1. The entries for any work done or supplies received must be made in sequence
2. Each set of measurement should be closed with the date and signature of the officer
3. There should be no erasures /overwriting
4. There should be no bank page in M. Book
5. If there is any mistake, if it was left blank, it should be crossed out by diagonal lines
6. The entries should be ink Only
7. The date of previous measurement, M. Book number and page number should be linked with
the running bill
8. Entries in the M. Book should be continuous without leaving any blank space.
9. At the end, the quantities are calculated and abstract of quantities is prepared.

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10. The rate and amount due to filled in the SD office verifying the calculation
11. The AEE/AE/SE should carry out the site check measurement. If the checking is not done, the
bill is prepared along with M. Book to divisional accountant for pre audit and payment
12. Loss of M. Book is serious and should be referred to higher authorities.
13. Report of the M. Book loss should also be lodged to nearest police station
14. In the bottom of M. Book, the signature of contractor is taken as a matter of acceptance
15. Index page of M. Book is prepared along with page number and name of the contractor is
noted.

WORK CHARGED ESTABLISHMENT

It is often necessary to employ lower levels of supervisory staff for the actual execution of
work, the execution of a specific work on the specific project is termed as Work charged
establishment.

• Work inspectors, assistants, maistries and luscares come under this category
• Lumpsum provision of 2 to 3 % made in the estimate of work
• Pay is passed by the D.E/E. E for the approval authority
• There are employed on month basis
• Services can be terminated at any time without any notice, usually once a month
• They are not entitled to pension, certain kind of leaves etc.
• Person should be employed only after the receipts of sanction from the competent authority
for the sanctioned period.

NOMINAL MUSTER ROLL

When works executed departmentally by employing labour, such as masons, mazdoors etc.
master roll system is followed. The attendance of labourers is kept in muster rolls by the section
officer and paid on the basis of muster rolls. Muster roll is a record of attendance of daily labourers
and the payment made to them. The labourers are followed the instructions in the daily wages,

1. Sanction of engaging labourers on daily wages is necessary by E. E

2. Attendance of labourers is marked in NMR
3. The attendance of the labourers is checked and initiated by the sub divisional officer or
divisional officer.
4. Payment to labourers on weekly, monthly in the progress of work is recorded in M. Book
5. The Section officer records the Period, amount payment to each labour and a certificate is to be
furnished and also temporary cheque is prepared by SO
6. The NMR is submitted to higher authorities to the passed for payment

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PARTS OF NOMINAL MUSTER ROLL

a) RECORD OF DAILY ATTENDANCE

1. Name of labourers
2. Class of labour
3. Father’s Name
4. Day of attendance
5. Rate of wages
6. Total number of days worked
7. Total amount payable
8. Any deductions to be made
9. Net payable
10. Signature of the person

b) RECORD OF UNPAID AMOUNT

1. Details of unpaid items are recorded

2. The unpaid wages of the previous muster roll are also carried over
3. Payments made out of the arrears are also recorded in this part

c) RECORD OF WORK DONE BY LABOURERS

1. Type of job
2. Name of job
3. Details of work executed
4. Details of measurement recorded giving page number and book number in M. Book
5. Value of work as per estimated rates
6. Amount spent as NMR
7. Resulting savings are noted

RULES FOR PREPARATION OF MUSTER ROLL

• One or more muster rolls can be used for the same work
• Muster rolls should never be prepared in duplicate for the same work
• The presence of labour should be marked with a cross mark (X) and absence with letter A
• Labourers may be paid more than once a month but after each payment, separate or new
muster roll has to be opened
• The daily record of attendance and fines should be recorded
• After the muster roll has been passed, payment should be made as early as possible.

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• After the payment SDO should certify as “Paid by me RS on”.

• If Section officer certify as “Paid in my presence to the right person”
• The unpaid items should be recorded in PART II
• Muster roll are checked by DO with reference to entries in M. Book to the extent of 50% in sub
division and 50 % in the division.

DAILY LABOUR REPORTS (D.L.R)

In the case of larger works or group of works carried out through daily labour a consolidated
labour report is submitted daily to the A.E or A.D.E by the officer for control and check is termed as
Daily Labour reports. The reports consist of the following,

1. Category or Class of labourers

2. Number of labourers employed in each category
3. Rates at which labourers employed in each category
4. The name of work on which labourers employed
5. Approximate amount of work done

When the muster rolls are submitted, the entries are compared with labour reports. There should
not be any difference between the two. If any, it is to be investigated.

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SCHEDULING AND TIME MANAGEMENT

SCHEDULING

Scheduling is a process of fitting the work plan to a time frame indicating the start and
completion of each activity or job. Scheduling also shows the relationships among various activities.

PREPARATION OF SCHEDULE

1. Each part to be arranged sequentially or in order

2. Duration of each part to be fixed based on reality
3. Starting and finishing time of each activity to be fixed
4. Various resources such as labour, material, machinery and money required at various stages to
be prepared.
5. Allowance to be given for some variations in some parts due to unexcepted factors.

USES

• It gives time table showing the scheduling and sequence of each activity.
• It enables one to know before hand of requirements of resources like man, materials and
machines etc.
• It helps the engineers to monitor the progress of work and take corrective measures.
• It helps in establishing and maintaining time goals.
• The total time or project duration to complete the project is known
• A time and progress chart can be prepared easily.

ADVANTAGES OF SCHEDULING

• It gives clear idea about the type and quantity of materials required at different stages of work
• Labour required for each stage can be arranged in advance
• Procurement of construction stores can be done in stages
• Cost control study of the project at different stages can be reviewed.
• Lagging of work can be easily found based on the progress chart.

CLASSIFICATION OF SCHEDULES

1. Construction schedule
2. Material schedule
3. Labour schedule
4. Equipment schedule
5. Financial schedule

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6. Time schedule

METHODS OF SCHEDULING

1. Bar chart/Gantt chart

2. Job layout
3. Work breakdown chart
4. Networks for Project management

a) BAR CHART/GANTT CHART

• A bar chart consists of two co-ordinates axis.

• One representing the time and other one representing the activities or jobs to be performed.
• It is a graphical representation of completion of various activities of a project.
• Time period on x-axis and operation of work on y-axis.
• The length of the bar indicates the duration of the job. It is useful for calculating the resources
requirements of a project.
• Bar chart do not indicate the critical activities.
• Bar chart is only applicable of small projects.

USES OF BAR CHART

• Total time required for particular activity

• Schedule of materials required
• Labour strength required for each activity
• Machinery requirement schedule
• Preparation of work before each activity
• Reasons for delay for each activity
• Contractors, labour payments requirement
• Total finance requirement

b) JOB LAYOUT

A site drawing of the proposed construction showing the location of entry, exit, temporary
services, material stores, stacks, Plant/equipment and site office is known as job layout or site layout.
It is prepared by site engineer or engineer in charge to scale showing all services and facilities.

PURPOSE OF JOB LAYOUT

• More economical method of working

• Shorter leads for materials

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• Reduction in completion time

• Reduction in wastage and deterioration of materials
• Higher productivity from labour and machinery
• Greater safety

c) WORK BREAKDOWN CHART

• The functional elements of a project and their interrelationship are determined by a technique
known as Work breakdown chart or structure.
• This technique establishes the hierarchical order in a system by breaking the project into
recognizable systems, sub systems and discrete activities.

d) NETWORK FOR PROJECT MANAGEMENT

Network is a diagrammatic representation of a work or project plan, showing the activities

step by step leading the finished target or goal.

ADVANTAGES OF NETWORK

• Providing a logical discipline in planning, scheduling and controlling projects.

• Pinpointing responsibilities in carrying out a job
• Better utilization of men, materials, machinery and money based on time schedule.
• Indicates the effect of any delay in the project
• Identifying critical activities which control the project completion time
• Preparation of most economical time schedules

SYSTEM OF NETWORK

a) Activity on Arrow method → CPM

b) Activity on Node/Event method → PERT

DIFFERENCE BETWEEN ACTIVITY AND EVENT

[Link] ACTIVITY EVENT

1. It is represented by straight arrow It is represented by circle, square, rectangle and oval
2. Represents a job or operation of work Represents either the beginning or end of a job
3. Consumes time, money and resources Does not require time, money and resources.
4. Has float Has slack
5. Notation will be letters (A, B, C….) Notation will be Numbers (1,2,3…)

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BASIC ASSUMPTIONS IN CREATING A NETWORK

1. Time flows from left to right

2. All the event are numbered
3. The number at the tail is smaller than that at head of an activity
4. Successor and predecessor events to be identified
5. The duration or time of activity should be fixed nearest to completion time, based on
experience
6. For economical project completion time, critical activities should be identified
7. Parallel activities should be identified and used save time in project duration

RULES FOR DEVELOPING NETWORKS

1. It must be possible to define the beginning and end of the project

2. At the places of multiple dependences of events, a dummy activity may be introduced
3. The performance of activity along the critical path must be carried out in time to avoid the
delay of the project
4. The logical placement of an activity in the network is governed by the following
considerations,

a) Activities must be completed before this activity can commence – PRECEDENCE

b) Activities must be carried out along its activity – CONCURRENT

c) Activities cannot commence until this activity is completed – SUCCEEDING

FULCKERSON’S RULE FOR NUMBERING THE EVENTS

STEP – 1: In every activity there is one “initial” event

STEP – 2: Neglect all arrows coming out of the new initial event.

STEP – 3: Number the new initial events generated in step 2, 3 etc.

STEP – 4: Neglect all arrows coming out of the new initial events

STEP – 5: Repeat step 4 till the last event of a project.

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COMPARSION BETWEEN CPM AND PERT

SNO CPM PERT

1. It is Activity oriented It is Event oriented
2. Only one estimate time is required Three estimate time is required
3. It is built – up of Activity Oriented diagram It is built – up of Event Oriented diagram
4. Time and cost both are controlling factors Time is the only controlling factors
5. Critical events must have zero slack Critical events may be positive/zero/negative
slack
6. It is recommended for construction project. It is recommended for research and
construction projects
7. Past experience is available Past experience is not available

RESOURCE MANAGEMENT

Resource management is a method of planning the project by taking appropriate decisions, in

scheduling and allocating of resources such as manpower, machinery, materials and finance etc. All
these resources should be used economically and maximum benefit is derived them.

Main resources needed for the construction industry are as follows,

1. Construction Materials – Bricks, Stones, Steel, Cement, Aggregate etc.

2. Machinery
3. Manpower
4. Supervisory Staff – Engineers, technicians etc.
5. Funds

OPTIMUM UTILIZATION OF RESOURCES

The important resources which are necessary for a construction project are as follows,

1. Finance (Money and fund)

2. Materials
3. Machinery
4. Human resources (Men)
5. Management

a) FINANCE

• Money is the important resource required for any project

• It should be arranged before start the progress of work

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b) MATERIALS

• Materials should be properly procured

• Usually, materials around 60% of the total expenditure of any project.
• Materials should be available within 1 Km radius of the site for the economical completion.
• Materials supply should be regular in sufficient quantity as per requirement of work.
• Proper care should be taken while stacking and storing of materials

c) MACHINERY

• It should be used economically both in terms of money and time

• Engineer should aware the about the machines while choosing
• Machines may work for all 24 hrs.

d) HUMAN RESOURCES

• For any project, manual power of skilled and unskilled are very important
• Human resources may be employed on daily wages basis also.
• Labour should be adequately paid and their welfare should be looked after.

RESOURCE PLANNING

Resources planning is necessary, in utilizing available resources fully and economically, the
following steps are involved in resources levelling

• Designing of the Project based upon all resources

• Method of Construction
• Time taken for the delivery of materials
• Type, Quantity and duration of equipment needed
• Number of labours needed
• Alternate design and methods to be adopted
• Processing and storing of important materials
• Careful scheduling of various inter linked activities based on resources
• Use of alternate materials and equipment if necessary, etc.

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RESOURCE LEVELLING

Resource levelling is a process of re-scheduling various activities or planned works. It is the

modified time table or schedule of plans in a project. Large fluctuations in the demand for the
resources may cause problems in project execution and project duration.

OBJECTIVES OF RESOURCE LEVELLING

• Re-scheduling various activities to meet the demand of various activities.

• To solve the problems due to fluctuations demand for resources
• To meet the maximum peak resources by rescheduling the activities
• Better utilization of important resources uniformly throughout the project.

CONSTRUCTION STAGES

The entire project is divided into several construction stages to complete the project efficiently
within the prescribed time. Each stage is studied in detail for the following informations

1. Estimation of quantity of work involved in each construction stage

2. Completion of probable time
3. Estimation of probable cost of each construction stage.
4. Fixing the start and finish of each construction stage
5. Establishing the inter relationship of various construction stages

For a new building project, following steps are involves,

1. Clearing the site and setting out for foundation

2. Construction of foundation and basement
3. Superstructure up to lintel
4. Laying lintels and sunshade
5. Superstructure up to roof slab
6. Laying roof slab
7. Plastering and flooring
8. Fixing doors and windows
9. Water supply, drainage and electrical installation
10. White washing, colour washing etc.

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RESOURCES SCHEDULING

It is the planning of utilization of various resources connected with a particular project in a

time bound frame. Duration of the plan is unchanged. By scheduling, resources will not be idle for a
long time and all are utilized properly.

CRASHING

Crashing is the removal of normal time of an activity. Crash time is the minimum time which
an activity will take to complete. Crash time will be lesser time than normal time. By crashing, cost of
an activity will increase.

METHODS AND TIPS FOR CRASHING

• Find those activities where time can be cut substantially with minimum extra money
• Work out the cost of crash per day for each activity
• Activities could not be crashed at all cannot be considered
• Cost and time over runs can be strictly avoided
• By serial and parallel scheduling, resource levelling exercise can be adopted.

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QUALITY MANAGEMENT AND SAFETY

IMPORTANCE OF QUALITY

• The main aim of the construction engineer is to give a quality construction.

• If a structure is to be strong and durable quality should be good
• Quality of works depends on the materials, mixes, workmanship, supervision, design,
specification and drawings.

ELEMENTS OF QUALITY

Quality of a construction industry depends the following elements,

1. Well planned design with complete drawings

2. Specifications – describe the nature and type of project
3. Materials to be used
4. Workmanship
5. Nature and class of work
6. Regular inspection and supervision of work during construction
7. Testing materials in the laboratory
8. Observation of construction equipment and plant.

AIMS OF QUALITY CONTROL

• Economy in construction cost

• Providing reliable, durable and safe structure
• Inspecting materials and work
• Production of items for their intended use without defects
• To avoid wastage of time, money and materials.

QUALITY ASSURANCE TECHINQUES

1. Inspection of work
2. Sampling of materials
3. Testing of materials

a) INSPECTION OF WORK

• Inspection is the art of checking materials, processes and finished products comparing with
laid down by the standards and specifications.

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• The objective of the inspection is to achieve sound construction work which gives results in
good quality at reasonable cost
• While inspection of work, the plan and specifications are to be ensure that the work.
• For large projects, a separate inspection department is provided
• The following types of inspections to be consider,
1. Material inspection (Raw and construction materials)
2. Process inspection
3. Equipment and Plant inspection
4. Finished job inspection
5. Others (Water supply, Painting, Electrical, Plastering etc.)

b) TESTING OF MATERIALS

The various tests which are usually conducted for each material given below,

S. No Cement Concrete Steel Soil

(IS269-1958) (IS 1199 – 519, (IS 875 – Part I to IV) (IS 1888 -1962,
IS 519-1959) IS 2720 -1965)
1. Fineness test Slump test Tensile test Load test
2. Initial & Final setting Compaction factor test Cold bend test on Standard
time test MSB penetration test
3. Tensile strength Compressive strength Grain size analysis
test
4. Compressive strength Liquid and Plastic
limit
5. Chemical Analysis Moisture content
and Dry density.

c) SAMPLING OF MATERIALS

• The samples with their test results are submitted for approval.
• Samples of various materials are collected depending upon the type of materials
• For Cement, steel and concrete – Field and laboratory test are conducted
• Testing is conducted in the Department laboratories, Various Engineering colleges and
Polytechnic college.
• The selection of laboratory for the required testing of materials and processes may be indicated
in the specifications.

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IMPORTANCE OF SAFETY

• Safety is the foremost requirement of any industry and is a prime requisite

• Safety results from the mastery of the environment and the individual
• Both individual and group co-operation are necessary to achieve safety
• Accidents will occur if safety is not ensured
• Proper steps should be taken to improve safety in construction sites so that loss of life, limbs,
suffering and damages resulting from accidents can be prevented.

ACCIDENT

Accident may be defined as any unexcepted or unforeseen event which causes injury, death,
damage to equipment etc. and also prevents production and progress of the activity.

CAUSES OF ACCIDENTS

1) INDIVIDUAL/ PERSONAL CAUSE

• Carelessness of individual, fatigue, nervousness, unsafe practice, Protective dress etc.

• Negligence of instructions in handling tools and mechanical equipment
• Physiological cause – Poor eye sight, Over work, Old age, Poor health, Handicap etc.
• Psychological cause – Mind of worker, Mental tension, nervousness, emotional attitude etc.

2) MECHANICAL AND MATERIAL CAUSE

• Defective tools, belts, pulley and machines

• Failure of temporary structures such as Scaffolding, Ladder, Ramps, form works etc.
• Stair ways, Slippery floors
• Flying particles
• Injurious gases, dust, smoke etc.
• Transporting and handling explosives

3) CIRCUMSTAINAL CAUSE

• Poor lighting conditions

• Poor ventilation and unhygienic conditions
• Obstacles in the working area
• Building being unsafe
• External and internal continuous noises
• Glare, Vibrations, Loose electric cables etc.

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ROLE OF VARIOUS PARTIES IN SAFETY MANAGEMENT

Most of the accidents in construction industry are caused due to lack of proper education and
training regarding safety management. Proper and necessary preventive and precautionary safety
measures are to be taken by all concerned with the project. Safety management is a technique of
prevention of accidents in the construction and it is done by the following staffs,

1. Designer
2. Employer
3. Worker

a) DESIGNER

• Designer or Engineer is a man at the source.

• He proposes layout drawings, internal arrangement positions of the industry, Location.
• Designer depending upon following necessity of industry
1. Electrical installations, Generator rooms, Transforms
2. Storage rooms for explosives, inflammable materials
3. Boilers, Furnaces, Oil and gas heaters etc.
4. Adequate emergency exits
5. Good Lighting and Ventilation

b) EMPLOYER

• Providing warming system and fire alarm and fire extinguishes

• A committee under safety director to be formed
• Installing safety quotation and sign board at various places
• Providing machines at perfect condition and mechanical safety devices
• Motivating safety by providing, safety belts, goggles, helmets etc.
• Scaffolding and working platforms to be sound materials and properly constructed
• Providing protection devices, good and reliable cables, wires and other electrical equipments

c) WORKER

• Complete knowledge of operating and maintaining plants and machines

• Should obey all safety rules
• Proper protective wares such as wearing goggles, helmets, gloves, shoes etc.
• Sufficient training for handling the machine
• Large quality of materials should not be kept in working platforms
• Smoking should be avoided in the site

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• Careful movement in scaffoldings, ladders, lifts etc.

• Unused materials, tools should not be left in platforms
• Explosives of blasting areas, hot bitumen in roads, demolished work – should be carefully
handled.

BENEFITS OF SAFETY MANAGEMENT

• Number and gravity of accidents can be reduced

• Damage to equipment and materials is also reduced
• Loss of man hours and production can be prevented
• Provides better work environment and greater contentment among workers
• Extra cost involved due to workmen compensation, insurance, loss of time etc. are eliminated

APPROCHES TO IMPROVE SAFETY IN CONSTRUCTION

• If the depth in excavation of trenches exceed 2m, the trenches should be properly shoved and
timbered
• Before excavation, a complete knowledge of underground structure should be known
• Excavated earth should be kept away from the edge of the trench
• In hot bitumen work, should use protective wares such as boats, gloves, goggles, helmets etc.
• All erection equipments such as cranes, hoists etc. should be thoroughly checked before use
• Sufficiently strong scaffolds, ladders, chains, ropes, lifting, tackles should be used.

CONSTRUCTION DISPUTES AND THEIR SETTLEMENT

CATEGORIES OF DISPUTES

The following are the various categories where dispute occurs,

1. Regarding Work 2. Time of completion

3. Progress 4. Materials

5. Sub contract 6. Penalty

7. Liquidated damages 8. Violation of Contract

9. Other factors

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a) REGARDING FACTORS

• Defective workmanship - Construction not executed as per specifications

• Adherence to standards – Work not done as indicated as M.D.S.S
• Not maintaining quality of workmanship as required or methods of work

b) TIME OF COMPLETION

• Not furnishing the various job as per time schedule

• Not able to complete the project within the stipulated time.

c) PROGRESS

• Not maintaining progress in all activities or construction as per contract agreement

• Non – uniform progress in work

d) MATERIALS

• Using inferior type of materials

• Supply and use of materials of non – uniform size and qualities in all branches
• Not using specified type of materials such as sand, aggregate, steel, cement etc.

e) SUB CONTRACT

• Works entrusted with sub- contractor as per contract agreement

• If any delaying of job unnecessarily

f) PENALTY

• Penalty for non – fulfillment of terms and conditions

• Delay in progress of work considered to be high leads to dispute
• Penalty is imposed by Executive engineer

g) LIQUIDATED DAMAGES

Disputes on non-acceptance of the amount started in a contract as compensation to be paid for

damages during construction

i) VIOLATION OF CONTRACT

• Not adhering to the conditions of contract such as using sub standard materials, slow
progress, non – cooperation with the site engineer etc.
• Non – observance of rules/instructions.

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j) OTHER FACTORS

• Stopping of work without notice due to price escalation, increase in labour wages etc.
• Delay in payment for the work done by the contractor
• Delay on the part of engineer in change in taking measurements and preparing the bill
• Irregular and insufficient supply of materials such as cement, steel etc. by the owner or
department.

MODES OF SETTLEMENT

The settlement between two parties can be done by the following methods,

1. A third party or agency, acceptable to both the parties acting as a mediator and giving
settlement
2. Disputes can be settled through the litigation in a court of law
3. Settlement of disputes by arbitration

ARBITRATION

Arbitration is a method of hearing and settlement of a dispute between two parties namely
owner and contractor, by an impartial referee selected or agreed upon by the parties concerned

ADVANTAGES OF ARBITRATION

• Arbitration is less expensive than court action

• Disputes are settled much faster through arbitration as compared to law suit in the courts
• Arbitration hearing are fixed considering the convenience of the both parties
• Both parties are appointed as well knowledge in technically and judgement
• Minimum prescribed legal informalities
• Private parties don’t suffer while proceedings

ARBITRATION CASES

The following cases acts for arbitration based on Indian such as

1. Arbitration without intervention of a court

2. Arbitration with intervention of a court
3. Arbitration in law suits.

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CONSTRUCTION LABOUR AND LEGISLATION

NEED FOR LEGISLATION

Following are the various legislations enhanced by governments,

• Trade union act with the primary object of protecting the interests of labour
• Factories act
• Payment of wages act
• Contract labour
• Work men compensation act
• Industrial disputes act
• Minimum wages act
• Employee state insurance act

PAYMENT OF WAGES ACT

• This act was first passe in 1936, subsequently it was amended.

• This act regulates payment of wages to certain classes of persons employed in the industry
anywhere in India.
• This act is applicable having a salary less than 1,600/- per month.
• The maximum wage period is one month.
• The term ‘wages’ means the salary including all allowances, bonus, compensation, incentives
etc.
• It does not include other items such as Water, Electrical charges, medical aid, house rent,
travelling allowance, provided fund, gratuity and pension etc.
• Payment should be made by 7th month, if the salary is below 1000/-. Whereas above 1000, it
should be made by 10th month.
• The acts permit the deduction of wages for the following,
1. Fine
2. Absence of duty
3. House rent, water and electric charges
4. Recovery of advanced payment
5. Income tax
6. Provided fund
7. Insurance Premium
8. Damage or loss of goods.

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• The acts provide certain safe guards against deductions

1. No fine can be imposed on children below the age of 15.
2. Maximum fine imposed in a month should not exceed one day’s wage of the worker.
3. The fine money is to be deposited in a separate fund and used for the benefit of employees.
4. The deduction on account of water, electricity and house rent should be acceptable to the
workers
5. The deduction for losses or damages should be made only if it is due to worker’s
carelessness and it should not exceed the amount of actual loss.
6. The deduction for absence from duty for one should not exceed the day’s wages of the
worker.
7. The inspector of factories is responsible to enforce the provision of this act
8. The fines imposed by the management should be approved by the chief inspector of
factories.

FACTORIES ACT

This act was passed in the year 1948 to consolidate the laws relating to labour in factories. The
main provision of this act relates to,

1. Health
2. Safety
3. Welfare
4. Hours of Work
5. Leave with wages
6. Occupational disease accidents.

a) HEALTH

• Proper ventilation and Good lighting

• Control of temperature, dust, humidity and fumes
• Disposal of waste, effluents etc.
• Provision of drinking water, spittoons, latrines, urinals and washing places.

b) SAFETY

• Safety requirements such as fencing of moving parts of machines and other precautionary
measures against fire and accidents
• Operation of every machine should be known to be workers
• Construction of buildings to be strong against vibration
• All machines and their components to be strong.

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• Children and women not allowed to lift heavy weight

c) WELFARE

• First aid facilities

• Washing and bathing facilities including storing and drying clothes
• Restrooms, rest places
• Recreation, reading rooms, libraries etc.
• Canteen (workers exceed 250)
• Appointment of welfare officers (workers more than 500)
• Creche for children of women employees
• Housing schemes

d) HOURS OF WORK

• Fixation of working hours, 48 hours per week/9 hours per day with minimum interval ½ hr.
• For women and children 6am to 7pm.
• Over time not to exceed 50 hours in one quarter
• Double the normal rate of wages for overtime work
• Children less than 14 Years of age not to be employed
• Inspecting staff for the inspecting the factory premises to ensure compliance of the provision
of the act.

e) LEAVE WITH WAGE

Besides weekly holidays, every worker is emitted to an earned leave with wage after 12
months of continuous service.

ADULT – 1 day for every 20 days of work with a minimum of 10 days

CHILDREN – 1 day for every 15 days of work with a minimum of 14 days.

f) OCCUPATIONAL DISEASE AND ACCIDENTS

• Any case of industrial accidents or occupational disease which cause death or serious bodily
injuries should be reported to the chief inspector of factories by the employer.
• State government should appoint competent persons to enquire the causes of accidents and
occupational diseases.

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CONTRACT LABOUR (REGULATION AND ABOLITION ACT)

• The government of India was established in the year 1970, it was further amended in 1986.
• The act is applicable to every establishment wherein twenty or more labours are employed to
perform skilled or unskilled work on every day.
• This act is not applicable to causal workers.
• The main object of this act is to regulate the employment of contract labour in certain
establishments and providing for abolition of contract labour under certain circumstances.
• The main provisions of this act are,
1. Constitution of central/ state advisory board on relating to the act
2. All establishment covered by this act should submit the registering officer
3. Every contractor should obtain a license from the officer concerned.
4. The following facilities should mention given below,
• Restrooms properly lighted and ventilated, situated near the work space
• Adequate water supply and sanitary facilities
• Separate restrooms for women
• First aid facilities
• Washing facilities

EMPLOYEES PROVIDENT FUND ACT (EPF)

Employee Provident fund scheme act was enacted mainly for the welfare of employees after
retirement. Employees are allowed to take loan from their provident fund and the amount is to be
repaid in installments.

E.P.F SCHEME

EPF scheme takes care of the following needs of the members,

1. Retirement
2. Medical care
3. Housing
4. Family obligation
5. Education of children
6. Financing of Insurance policies

BENEFITS OF E.P.F

• The E.P.F interest rate is 12%

• A member can withdraw up to 90% of the amount at credit before one year of retirement.

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• A member of the EPF scheme can with draw the full amount at the credit in the fund on
retirement from service, after the age of 55 year
• When an employee is discharged and given retrenchment compensation under industrial
dispute act.
• When employees are transferred to another establishment which are not covered under the
act.

ETHICS IN ENGINEERING

DEFINITION

Ethics is a philosophic science that involves systematizing defending and recommending

concepts of right and wrong conduct. It reflects the character of the individual.

ENGINEERING ETHICS

Engineering Ethics is the field of applied ethics and system of moral principles that apply to
the practice of engineering.

QUALITIES OF PROFESSIONAL

The following basic qualities are required for a professional,

1. Sound technical Knowledge

2. Positively proactive
3. Respect
4. Opportunities to help others
5. Follow – up
6. Empathy
7. Self- confident
8. Sustainable
9. Integrity
10. Optimize all interactions
11. Nimble
12. Awareness
13. Leadership

MAJOR ETHICAL ISSUES

Major ethical issue is mainly on Nuclear energy. The following aspects are to be considered
before taking a final decision,

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• Human cloning and Therapeutic cloning

• Animal cloning
• Food Irradiation
• Stem cell research
• Nanotechnology
• Genetically Modified crops (GMC’s)
• Medical research using Live Animals
• Genetic Engineering
• Chemical and Biological weapons research
• Gene Therapy
• Artificial and selling of Human Organs
• Best Energy producing strategy

PROFESSIONAL INSTITUTIONS

• In engineering field, professional institutions play a vital role in the development of

technology and updating.
• A Professional institution may be professional association, body, organization or society.
• Usually these non – profit seeking to further a particular profession, the interests of
individuals engaged in that profession and public interest.
• It defined as “A group of people in a learned occupation who are entrusted with maintaining
control or oversight of the legitimate practice of the occupation”.
• In other words, “A body acting to safeguard the public interest, organizations which represent
the interest of the professional practitioners”.
• Many professional institutions are involved in the development and monitoring of
professional educational programs, and updating of skills and perform it.

VALUE BASED ETHICS

• It is used to identify the role of executive and senior management leadership in developing a
value-based management own’s awareness, support and communication of the stated values.
• Developing and sustaining ethical approaches are needed in relation to organizational
structures, system and processes that inform cultural type.

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ENTREPERNEURSHIP

DEFINITION

Entrepreneurship is an activity to perform a specific purpose. It includes initiating, Promoting

and maintaining a business for the production and distribution of wealth. He is a good leadership
takes risks and creates activity.

ROLES OF ENTREPRENEURSHIP

1. Removing regional in balances

2. Creating employment opportunities
3. Uniform development of the entire nation
4. Increasing production, per capita income
5. Improving the quality of life.

SIGNIFINANCE OF ENTREPRENEURSHIP

• Raising the production

• Powerful tool of job creation
• Facilities transfer of technology
• Restructuring and transformation of economy
• Makes markets more competitive
• Reduces static and dynamic market inefficiencies.
• Redistribute wealth, income and political power
• Improves the social welfare of a country
• Creates new markets.

RISKS OF ENTREPRENEURSHIP

1. Risk covered by insurance, loss of assets by theft, fire and natural calamity
2. Risk of rising cost of raw materials and production cost.
3. Risk of demand in supply and quality of raw materials
4. Risks of falling demand, drop in price or increased competition.
5. Risk of his materials rejected by the purchases
6. Risk of his materials losing market due to change in design or patterns.

REWARDS OF ENTREPRENEURSHIP

1. The personality of entrepreneur is different from that of the average person

2. Launching a business- Ambition

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3. Making a success Challenge

4. Performance, satisfaction – First reward
5. Social service, Economic good to society – Third reward
6. Creating awareness of employment for others
7. Providing income to those who work for him.

ENTREPRENEUR

Entrepreneur is an individual who conceives the idea of starting new unit or new business of
his own. He introduces something new in the economy. He puts his idea in starting, organizing,
managing, controlling and running the business entrepreneur.

PROFILE OF AN ENTREPRENEUR

An entrepreneur should have the capacity to take moderate risks. A successful entrepreneur
has some qualities as inherent and most of the others acquired.

• Intelligence
• Knowledge
• Motivation
• Ability to avail an opportunity
• Capable of taking responsibility
• Updating his knowledge in his field.

REQUIREMENT OF AN GOOD ENTREPRENEUR

1. Decision Making
2. Supervising and controlling business
3. Marketing
4. Distribution of income
5. Innovation

CHARACTERISTICS OF THE ENTREPRENEUR

1. Initiative
2. Information seeking
3. Commitment to work contract
4. Efficiency orientation
5. Systematic planning
6. Problem solving
7. Self-confidence
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TECHNICAL ASSISTANCE OF ENTREPRENEUR

Various institutions have been set up by state and central government for the promotion and
development of entrepreneurship. The following institution are providing to development of
industries,

1. Small Industries Service Institute (SISI)

2. District Industries Centre (DIC)
3. TAN State small Industries Development Corporation (TANSIDCO)
4. National Industrial Development Corporation (NIDC)
5. Industrial Credit and Investment Corporation of India (ICICI)
6. Industrial Development Bank of India (IDBI)
7. Industrial Finance Corporation of India (IFCI)
8. State Financial Corporations (SFC)

a) SMALL INDUSTRIES SERVICE INSTITUTE (SISI)

Government of India has set up an organization known as Small Industries Development

Organization (SIDO) for the development of small-scale industries throughout the country. It
provides industrial extension service to small industries through a network of SISI. It offers necessary
institutional guidance to prospective promoters, by setting up of the following,

• Extension
• Regional testing center
• Training centers
• Production center
• Product and process development centers

It renders of following advices and guidance

1. Economic Information
2. Technical Assistance
3. Quality Improvement and Testing
4. Industrial Management and Training

b) DISTRICT INDUSTRIES CENTERS (DIC)

• District Industries centers programme was launched in 1978.

• It is a district level wing of the department of industries and Commerce.
• It scopes for maximum generation of employment

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• It provides a package of assistance needed for setting up small, cottage and industries in rural
and small towns.
• They provide requisite services and support assistance to the entrepreneur.
• Arrangement for capital investment subsidy power subsidy, cash incentive for I.S.I certificate
expenses.
• Arrangement for quality control, research extension and training facilities.
• Provides different kind of loan facilities under self-employment scheme
• Rehabilitation of sick units
• Getting Power connections from E.B.

c) TAN STATE SMALL INDUSTRIES DEVELOPMENT CORPORATION (TANSIDCO)

TANSIDCO was launched in 1960, to establish state owned industrial development

corporations. These are created to accelerate the pace of industrial development in their respective
states. The main functions of the corporations are as follows,

• Promoting small scale industries.

• Supply machinery on hire purchase basis
• Arrange for long term loans from financial institutions.
• Arrange for marketing the small industries products etc.
• Distribution of raw materials to industries.

d) NATIONAL INDUSTRIAL DEVELOPMENT CORPORATION (NIDC)

• The NIDC was established in 1954.

• NIDC is registered as a private limited company with an authorized capital of Rs. 1 crore of
which 10 lakhs to be issued by the government of India.
• The purpose of this corporation is to finance risky and large capital consuming projects.
• It gives priority to establishments for the manufacture of good machinery and equipments for
other industries.
• The corporation has got recognition from UNO and other international agencies and foreign
governments and entrepreneur to act as consultant for engineering services.

e) INDUSTRIAL CREDIT AND INVESTMENT CORPORTION OF INDIA (ICICI)

• ICICI was incorporated in 1955 with the specific purpose of assisting industrial enterprises
within a private sector.
• The authorized capital of this corporation is RS.25 crores and its share capital by both Indian
and Foreign countries.

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• The corporation aims at

1. Assisting in the creation, expansion and modernization of industrial units
2. Encouraging the inflow and participation of foreign capital
3. Expansion of the investment Market in India.

f) INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI)

• The IDBI was set up in 1964.

• The bank is intended to serve as a reservoir from the which the existing financial institutions
can draw.
• It seeks to cover the gaps, left by numerous state institutions working in the field of industrial
finance.
• The IDBI is the wholly owned subsidiary of the reserve bank of India.
• The bank concentrations its attention on the provision of the finance to the strategic sectors of
industry such as cement, fertilizer and basic chemicals manufacturing institutions.

g) INDUSTRIAL FINANCE CORPORATION OF INDIA (IFCI)

• The IFCI was set up the government of India in 1948, to provide financial assistance to large
scale industrial concerns.
• Small scale industries units have been excluded as they are to be covered by state financial
Corporations.
• State owned undertaking also cannot get financial assistance from this corporation.
• The assistance of IFC may take the following forms which are,
1. Guaranteeing loans raised by individual concerns which are repayable within a period
not exceeding 25 years and are floated in the public market.
2. Underwriting of the issue of shares, bonds or debentures.
3. Guaranteeing deferred payments by importers of capital goods who are able to make
such arrangements with foreign manufacturers.

i) STATE FINACIAL CORPORATIONS (SFC)

• State financial corporations were set up in 1954.

• The maximum capital allowed for a corporation of Rs. 5 crores.
• A state financial corporation is expected to grant financial assistance to medium, small and
cottage industries.
• No single industrial concern is entitled to get assistance exceeding 10 of the paid-up capital of
the corporation or Rs. 10 lakhs whichever is less.
• Loans raised by industrial concerns repayable within 20 years.

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INFORMATION MANAGEMENT AND COMPUTERS

MIS

Management information system is a new technique, MIS is used to avoid errors and
complications. MIS is defined as a computer-based information system. It is based on the data base of
the organization evolved for the purpose of providing information to the people at top level in the
organizations. MIS informs collected data to the managers in the organization for their day-to-day
perfect functioning.

OUTLINES OF MIS

• MIS improves the performance and productivity of the organizations.

• It collects information systematically and routinely in accordance with a well-defined set of
rules.
• It provides requisite information at each level of management to carry out their function.
• With good MIS support the management of marketing, finance, production and personal
become more efficient.
• It creates an information-based work culture.
• It gives reports regarding process, achievements and the errors in the day-to-day functioning.
• It is used to control the various operations involved in the smooth functioning of the
organization.
• It helps to regulate the operations which complicates the day-to-day functioning.

REQUIREMENTS OF MIS

1. MIS provides lot of tools to help each and every department achieve success.
2. It helps to learn the different latest decision-making technologies.
3. It brings out problems and different solutions in different situations.
4. It must consider the capabilities of the human and present the information.
5. It should ensure the timely delivery of information to the correct people.
6. It must satisfy the information need of the entire people in the organization
7. It must simultaneously build knowledge base by putting different information together.

DATA BASE APPROACH

A data base is an organized collection of interrelated data, which allows retrieval and use of
that data by anyone needing it. A data base is organized and designed to allow a large number of
users to draw information from it for many different purposes in many different formula.

BENEFITS OF DATA BASE APPROACH

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• Reduce redundancy of information

• Data are made simple and complex
• Consistent data flow
• All data are integrated
• Security and user privileges
• Ease of application development
• The data is readily available from one central source to another in the same organization
• Speeds up programme development
• One transaction input can often update multiple data base records, economizing on input
effort.

CONSTRUCTION AUTOMATION

• Automation in construction industry is a latest technological advancement

• It eliminates the need for workers to operate in uncomfortable and hazardous conditions
• It is Concurrently saving time, reducing costs and improving the quality of work and work
place
• To improve site working condition
• Application of construction automation can cut costs, environmental pollution and
dramatically improves safety and quality control.
• An advanced Pneumatic construction process and robotics are used to construct multi stored
and Semi- traditional buildings.

ROBOTICS

• Robotics is an engineering science and technology of robotics and their design, manufacture
and applications.
• Robotics can either help or take away human jobs.
• It is related to electronics, mechanics and software
• Today commercial and industrial robots are in wide spread use, performing jobs cheaper or
more accurate.
• Robots are widely used in manufacturing, assembly, packing, transport, earth mass
production of consumer goods.
• Structure of a robot is mostly mechanical with chains, movable limbs, detectors, sensors etc.

TYPES OF ROBOTS

1. Wheeled Robots
2. Ball bot

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3. Walking robot etc.

FINANCIAL MANAGEMENT

CASH FLOW

Movement of cash in a trade is termed as cash flow. In a business there is a continuous change
of finance. This type of change in a business is termed Cash flow.

TIME VALUE OF MONEY

In finance management, the market value of the article will be more that time. But article is the
same. The changed value is termed as Time value of money. Some of the popular method are given
below,

1. Ray back period method

a) Cash flow uniform
b) Cash flow not uniform
2. Accounting rate of return method
3. Discounted cash flow method
a) Net Present value method (NPV)
b) Present value index method (PVI)
c) Internal rate of return method (IRR)

a) NPV METHOD

NPV is the difference between the total present value of future cash inflow and the present
value of future cash outflows. By this method one can analyze how far a project is profitable or
successful and take final decisions.

NPV = 𝑪𝑭 –C
(𝟏+𝑹)

where,

CF → Cash inflow

C → Cash outflow

R → Cut off rate

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b) PVI METHOD

PVI is defined as the ratio of the present value of inflows to the outflows

𝑷𝒓𝒆𝒔𝒆𝒏𝒕 𝒗𝒂𝒍𝒖𝒆 𝒐𝒇 𝒊𝒏𝒇𝒍𝒐𝒘𝒔

PVI =
𝑷𝒓𝒆𝒔𝒆𝒏𝒕 𝒗𝒂𝒍𝒖𝒆 𝒐𝒇 𝒐𝒖𝒕𝒇𝒍𝒐𝒘𝒔

c) IRR METHOD

IRR is defined as the rate at which the sum of discounted cash inflows equals the sum of
discounted cash outflows

PROFITABILITY INDEX

PI is defined as the ratio of the total present value of future cash inflows to the future cash
outflow (or) investment

𝑻𝒐𝒕𝒂𝒍 𝑷𝒓𝒆𝒔𝒆𝒏𝒕 𝒗𝒂𝒍𝒖𝒆 𝒐𝒇 𝒇𝒖𝒕𝒖𝒓𝒆𝒔𝒄𝒂𝒔𝒉 𝒊𝒏𝒇𝒍𝒐𝒘𝒔

PI =
𝑻𝒐𝒕𝒂𝒍 𝑷𝒓𝒆𝒔𝒆𝒏𝒕 𝒗𝒂𝒍𝒖𝒆 𝒐𝒇 𝒇𝒖𝒕𝒖𝒓𝒆 𝒄𝒂𝒔𝒉 𝒐𝒖𝒕𝒇𝒍𝒐𝒘𝒔

BANKS

Banks are institutions that accept various types of deposits and use these funds for granting
loans. A nation cannot make commercial and industrial progress without proper banking system.
Banks are at the heart of the financial system. Modern business is impossible without banking
service.

TYPES OF BANKS

1. Commercial Banks
i) Private sector bank
a) State bank group
b) State bank of India
c) Subsidiary banks
ii) Public sector bank
a) Indian banks
b) Foreign banks
2. Regional Rural Banks
3. Co-operative Banks
i) State Co-operative Banks
ii) Central/District Co-operative Banks
4. Other Banks

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ACTIVITIES OF BANKS

a) RESERVE BANK OF INDIA

It is a central bank of India. All the banks are under the control of reserve bank of India. It was
established in 1935. Under the RBI act, 1948 it became state owned organization.

FUNCTIONS OF RBI

• It plays a lead role in the development of a sound financial system.

• It is guiding, monitoring, regulating and promoting the destiny of the Indian financial system.
• It plays an important role in the development of money and capital markets in India.
• It controls volume of reserves of all commercial, co-operative and rural banks
• It is the banker to central and state governments.

b) OTHER BANKS

• Acceptable deposits of money from the public, repayable on demand

• Money is deposited under various terms such as interest, period or time etc.
• Mooney can be with drawn by cheque, draft, order or otherwise.
• Lending or advancing money for needy customers
• Buying or selling foreign exchange
• Acting as agency for collecting interest, divided, salary, pension taxes, insurance premiums,
electricity and telephone bills.
• Issue of letter of credit, credit and debit cards, A.T.M cards
• Easy withdrawal of money from savings bank account, current account etc.

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