When two or more persons have common intention communicated to each other to creat some obligation between them there is said to be an agreement.
An agreement which is enfoerceable by law is a "Contract".
In civil engineering construction contract is an undertaking by a person or firm to do any work under certain terms and codicondit. The work may be for the construction or maintenance and repair, for supply of materials or labour, etc.
Contractor :-
The contractor means a person or firm to do any type of contract.
Types of Contract :-
- Piece work contract
- Item rate or unit price contract
- Lump sum contract
- Cost plus percentage contract
- Combination of lump sum and schedule of rates contract
- Labour contract
Piece work contract :-
It is an agreement by which the worker agrees to execute the different items of work on mutually agreed rates. The agreement contains different items of work to be carried out with proper description and rates for unit quantity of work.
Lump sum contract :-
In this contract the contractor agrees to execute within a specified time. The plan, drawings and specifications of all items of the work are provided to the contractor but the details of quantities and schedule of items will not be given and contractor will have to complete the work as per plan and specification within the contract period.
Item rate or unit price contract:-
In this contract the contractor under takes the execution of work at the unit rates agreed at the time of tender. The payment is made to the contractor by detail measurements of the work actually executed by the contractor. This method of contact is used in most of the work in projects, maintenance of buildings, irrigation projects, etc.
Cost plus percentage contract :-
In this contract the contractor is paid the actual cost of the building plus a fixed percentage for his overhead expenses, services and profit. The contractor procure the materials and arranges the labours at his own cost keeping the proper account and he is paid by the department or owner the whole cost together with certain percentage, normally 10% as his profit.
Labour contract :-
In this contract the contractor under takes only the labour portion of the work. All the necessarily materials are supplied to the site by the department or owner and contractor arranges his own labours and get the work done as per the specifications.
The contractor is paid for the labours only on the actual quantities of the work done measured under the item rate basis.
.civil Engineering