Group6 Contracts Presentation Modified

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Measurement and

Schedules

Group Members:
Malavya Sharma (P2370070)
Course Name: Contracts & Claim Management
Prateek Wan (P2370071)
Course Code: PCC 513
Rishikesh Jha (P2370072)
Course Faculty: Dr Madhav B. Khumthekar
Shivom Pandit (P2370073)
Prithvi Bagul (P2370077)
Flow of Presentation
• Introduction
• CPWD
• Measurement
• Schedule
• FIDIC
• Measurement
• Schedule
• MES
• NHAI
• Comparison between FIDIC and CPWD

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Introduction
• Measurement clause in which it has mentioned what works shall be
measured, and valued for payment.
• Schedules entitled schedules prepared by the Employer and
completed by the contractor, which include schedule of payments.
• Clauses are compared from the following documents:
• FIDIC (The International Federation of Consulting Engineers)
• CPWD (Central Public Works Department)
• MES (Military Engineering Services)
• NHAI (National Highway Authority of India)

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CPWD Measurement
• Clause 6 how and by whom the measurement taken is explained.
• The value of work due to be determined by measurements entered in
MBs/ Level Book and to be recorded jointly and signed with date.
• Measurements deemed to be accepted by the contractor, if
contractor
• Cannot despite of advance notice (3 days)
• fails to counter sign
• to record objection with in a week.
• Contractor to give 7 days notice before covering of the work.
• Measurements are to be checked from Engineer-in-charge as per the
prefixed program.
• MB shall be taken in record of division and allotted a number. Two
spare copies of MBs are also to be submitted.
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CPWD Measurement
• Contractor to submit computerized abstract of cost and the bill.
• Bill will be processed in the division and allotted a number.
• Measurements to be recorded as per specifications/ BIS orders/
mutually agreed method.
• Measurements then to be signed jointly.
• Engineer-in-charge to test check measurements and record
necessary certificates.
• Recording of measurements in MB is not conclusive evidence as to
sufficiency of work/ material.
• It does not relieve the contractor from its liabilities till the
completion of the defect liability period.

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CPWD Schedule
• No payment for work estimated to cost Rs. 20,000 or less till after the
whole work is completed or a certificate of completion is given.
• For works over Rs.20000, interim or running account bills should be
submitted as per measurement.
• Within ten days of the completion of the work, the contractor shall
give notice of such completion to the Engineer-in-Charge.
• Within thirty days of the receipt of such notice, the Engineer-in-
Charge shall inspect the work and if there is no defect in the work,
shall furnish the contractor with a final certificate of completion.
• The contractor shall submit a completion plan for water, sewerage
and drainage line plan within thirty days of the completion of the
work as per Clause 8B.

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FIDIC Measurement
• 12.1 Works to be Measured

• 12.2 Method of Measurement

• 12.3 Evaluation

• 12.4 Omissions

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12.1 Works to be 12.2 Method of
Measured Measurement
• Measurement of Net Actual
• Measurement of Works
Quantity
• Notice Requirement
• Method of Measurement
• Contractor's Obligation to
Attend
• Acceptance of Measurement
• Contractor's Examination
• Disagreement with Records
• Engineer's Review
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12.3 Evaluation 12.4 Omissions
• Evaluation of Each Item of
• Conditions for Notice

Work • Method of Measurement

• Application of Appropriate • Engineer's Action

Rate or Price • Inclusion in Contract Price


• Contract Price Determination

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FIDIC Schedules
• Payment Schedule:
• Planned payments treated as estimates for interim payment
certificates.
• Engineer can adjust schedule if progress is slower than expected.

• No Payment Schedule:
• Initial guess given after starting work, updated regularly.
• Estimates adjustable until project completion and Taking-Over
Certificate issued.

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MES
• As per Clause 6, the Engineer-in-charge shall ascertain and
determine the measurement of work done as per the contract.
• Items having financial value shall be entered by the contractor and
compiled in the shape of CMB.
• All such measurements and levels recorded by contractor shall be
checked by an authorized representative.
• Engineer-in-Charge may cause either themselves to check all
provisions stipulated to check such measurements or levels.
• Whenever bill is due for payment, the contractor would initially
submit draft computerized measurement.
• As per Clause 8.3, the period of ten days will extended to fifteen
working days, in case work outside the headquarters.

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MES
• The contractor shall give not less than seven days notice to the
Engineer-in-Charge in charge of the work before covering up.
• Any reduction in the Contract Price arising out of a Change of Scope
or the works shall not affect amounts payable for the items.
• For the avoidance of doubt and way of illustration,
• The Parties agree that if the amount assigned to
• Major Bridges is reduced from Rs. 100 crores to Rs. 80 crores
owing to Change of Scope.
• The payment due in respect of all other stage payments under the
item Major Bridges shall not be affected in any manner.
• The Parties further agree that the adjustments arising out of the
aforesaid modifications shall be carried out in a manner that the
impact of such modifications
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NHAI
• As per Clause 1.3, measurement and calculations shall be in metric
and calculations done to 2 decimal places.
• Method of measurements for each item of work shall be following
BOQ or other applicable schedules.
• According to the stage of payment, payment of works to be done and
procedure for estimating the value of road work.
• According to Clause 10.1 (iv) and 19.3:
• For Widening & Strengthening of road: on completion of a stage,
length of not less than 10 percent of the total length.
• For Reconstruction/New 8-Lane Realignment/Bypass (Flexible or
Rigid Pavement): on completion of a stage in full length or 5km
length, whichever is less.

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NHAI
• Reconstruction & New Culverts on existing road, realignments,
bypasses: For culvert length less than 6m, payment shall be made
on the completion of at least five culverts.
• For calculation of payment stage for the main carriageway the
project length shall be converted into an equivalent 2 lane length.
• If the total length of bituminous work to be done is 100 km, the cost
per km of bituminous work.
Cost per km= P x weightage for road work x weightage for bituminous
work x (1/L)
Where,
P = Contract price
L = Total equivalent 2-Lane length in km as defined above

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NHAI
• Clause 1.4 Schedule sets out the time frame for completion of works,
including the milestones and deadlines.
• Payment for Change of Scope shall be made by the payment
schedule specified in the Change of Scope Order as per clause 13.3.
• The Contractor fails to repair or rectify any Defect or deficiency
outlined in Schedule-E within the period specified therein, it shall be
deemed as a failure to perform of Maintenance obligations.
• Authority shall make an interest-bearing advance payment @ “Bank
Rate+3%”, equal to 10 % of the Contract Price, exclusively for
mobilization expenses.
• If the Advance Payment has not been fully repaid before Termination
under Clause 21.7 or Article 23

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NHAI
• The Advance Payment for mobilization expenses shall be made in
two installments each equal to 5% of the Contract Price
• Within 15 (fifteen) days of receipt of the Monthly Maintenance
Statement from the Contractor under Clause 19.6.
• Within 60 (sixty) days after receiving the Completion Certificate
under Clause 12.2, the Contractor shall submit consideration 6
copies of a Final Payment Statement.
• The Authority’s Engineer may present by an Interim Payment
Certificate any correction or modification.
• Within a period of 45 days after Termination the Authority’s Engineer
shall proceed by Clause 18.5 for unpaid works.

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Comparison of CPWD and FIDIC
Features CPWD FIDIC
Measurement Primarily based on IS and CPWD Offers flexibility in choosing different
Methodologies specifications. May include methodologies, other referencing
specific methodologies for international standards
different items.
Measurement Clearly defined clauses on More flexibility in handling variations,
Variations permissible variations and their often through negotiation or defined
valuation. May be stricter than procedures in the contract.
FIDIC.
Documentation Detailed documentation Less stringent documentation
Requirement requirements for measurements, requirements, relying more on
including site records, joint established standards and
measurements, and final bills. procedures.
Dispute Resolution Primarily through arbitration with More emphasis on negotiation and
for Measurement limited avenues for negotiation. amicable settlement before resorting
issues to dispute resolution mechanisms.
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Comparison of CPWD and FIDIC
Features CPWD FIDIC
Requires detailed bar chart or Requires detailed bar chart or network
Scheduling
network schedule, often with schedule, often with liquidated
Requirements
liquidated damages for delays. damages for delays.

Clearly defined clauses outlining Clearly defined clauses outlining


Extension of Time grounds for EOT claims and their grounds for EOT claims and their
(EOT) clauses assessment. Can be strict and assessment. Can be strict and
bureaucratic. bureaucratic.

Liquidated damages are commonly Liquidated damages are commonly


Delay Damages used, with limited discretion for used, with limited discretion for
adjustments. adjustments.

Dispute Resolution Primarily through arbitration, Primarily through arbitration, similar


for Schedule issues similar to measurements. to measurements.

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THANK
YOU
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