QB Caa CT-1

QUESTION BANK
CONTRACT AND ACCOUNTS
1. Define contract. What are object of contract ? What are Requirement of a valid
contract.
Ans) Definition: Contract is an undertaking by person or firm to do work under certain terms
and conditions.
Following are the requirements of valid contract

; 1. Contract should be in writing and should be signed by both the parties i.e. owner and
contractor.
2. The subject matter of agreement must be legal and definite.
3. If situation arises the contract can be enforced in court of law.
4. Parties should be competent enough to carry out work.
5. Both parties must give their free consent to do work.
6. Contract should be attested by responsible officer.
Objects of Contract:
1) To execute the work by experienced persons. 2) To execute work with most competitive
rate. 3) To do work as per specification. 4) To use latest machineries and techniques. 5) To
have free hand for a supervisor to check the work done by contractor without interference.
2. State conditions under which the contract is terminated.
Ans:
1) Contract is terminated by employer due to change in policy, non-availability of work site
or any other administrative reasons before the starting of work.
2) The contract can be terminated by competent authority in bankruptcy of the contractor or
death of contractor.
3) The contract can be terminated due to conditions beyond the control of contractor to
perform work. Example-Earthquake, Flood etc.
4) The contract can be terminated by mutual agreement between owner and contractor and
contractor is paid for work done.
3. List any four types of engineering contracts
Ans:
i) Lump sum contract.
ii) Item rate contract.
iii) Percentage rate contract. a) Cost plus percentage rate contract. b) Cost plus fixed fee contract. c)
Cost plus variable fee contract. d) Cost plus variable percentage.
iv) Labour contract.
v) Demolition contract.
vi) Fee contract. vii) Target contract. viii) Negotiated contract. ix) Material supply contract.
4. Define arbitration. State two qualities of arbitrator.
Ans) Definition: During execution of work owner and contractor may come across situations
where disputes may arise. The process of settling the dispute between owner and contractor
is called as arbitration.
The qualities of arbitrator are as follows:
i. The arbitrator should be a person having experience of work.
ii. He should have in depth knowledge of work.
iii. He should know rules, procedures of law.
iv. Main thing is he should be impartial and acceptable to both parties
5. Write any four functions each of

Ans:
i. Function of Chief Engineer :
1. To give administrative approval of work under his control .
2. Acceptance of tender under his control.
3. Sanction deposit work, full powers.
4. Purchase of live stock Rs.30,000/- at only one time.
5. He prepares the budget estimates annually relating to the work under his control.
6. To keep close watch over progress of work and expenditure against it.
ii. Functions of superintending engineer (SE) :

Functions:
1.Administrative approval to the work under his control.
2.He should give technical sanction to estimate within his power,
3.Technical sanction under his control.
4.Inspect work in his circle.
5.Arrange payment of store and material.
6.Inspect division in his circle and report to chief engineer.
7.To check progress of work under his circle.
8.Financial control over execution of original repair work.
iii. Function of executive engineer

1. Inspect sub divisional office once in a year.
2. Execution of work under him.
3. Ensures all tools plants and machinery are properly maintained.
4. Invite tender for work valued within his power.
5. Maintenance of accounts.
6. He is responsible for preparation of project design, estimate etc.
7. Keep close watch on expenditure
iv. Functions of Junior Engineer (JE):

1. Supervision of work in his charge.
2. Maintain attendance of daily worker, labours.
3. Taking measurement of all work in MB.
4. Preparation of bills running and final bills for work in his charge.
5. Prepares estimates for all types of works in his section.
6. Carry out field survey for proposed project
7. Carry out half yearly check of all stores in his charge and submit report to SDO.
8. Report to higher authorities for irregularities in contract, specification, shortage of supply of
departmental materials or any difficulty during execution
6. Draw organizational structure of PWD.
7. List of documents required for a registration as a contractor with state

government:
1. Latest income tax clearance certificate. 2. Proof of financial status. 3. Solvency certificate 4.
List of machinery with their condition. 5. List of technical staff employed along with
qualification and experience. 6. Professional capacity and experience certificate 7. Attested
copies of partnership deed if any 8. Registration fee
8. Define BOT project Write Objective Advantages,& Disadvantages of BOT Project Give
Example
= Objectives of B.O.T. i.) To develop infrastructures in an area when government does not
have sufficient funds for development of an area. ii.) To construct facilities like good roads,
water supply schemes, bridges, express highways in partnership with private sector. iii.)To
maintain roads, bridges, tunnels in good condition. iv.)To provide facilities to the public at
reasonable rates of toll and taxes for the work completed on BOT basis.
Advantages of B.O.T. i.) Fast development of infrastructure is possible. ii.) Public gets
facility which they would not have got after so many years. iii.)On completion of project, the
expenditure incurred will be collected by of toll and this amount is used for maintenance of
project. iv.)Quality of work is good since public, private partnership is there for construction
of project.
#Disadvantages of B.O.T. 1. Not suitable for Small works. 2. Transaction cost is
high. 3. The success of BOT project depends upon successful raising of necessary
finance.
#Examples: i) Mumbai – Pune express highway ii) Baroda – Ahmadabad highway
(NH8). iii) Nagpur Express highway (NH50)
9. Points to be included while drafting tender notice.

Following points should be included while drafting a tender notice:
i. Name of the authority inviting tender
ii. Name of work and its location
iii. Estimated cost
iv. Time limit of completion
v. Earnest money and Security Deposit required along with tender
vi. The availability of data and blank tender forms
vii. The last date, place and time of receipt of tender
viii. The date, place and time of opening of tender
ix. The right to reject the tender.
10. Define tender , enlisted the type of tender and necessity

Ans=
Tender: The tender is defined as an offer in writing for execution of certain specified work
or for supply of specified materials subject to certain terms and conditions such as rates,time
limits etc.
*Necessity of Tender: 1.To execute work as per specification and drawing. 2. To complete
the work within specified time. 3. To supply materials and labours. 4. For transportation of
materials. 5. For repair of construction work.
*Types of Tender:
1. Local tender.
2. Global tender.
3. Open tender.
4. Limited tender.
5. Negotiated tender.
11 . Draw format of schedule 'A' and schedule 'B' State purpose of both
12. Define 1. Administrative Approval. 2. Technical Sanction.
= Administrative Approval: For any work, project it is necessary to take formal acceptance
with respect to cost, and work called as administrative approval.
Technical Sanction: Technical sanction means the sanction of detailed estimate, design,
rates and cost of work.
13. State conditions where lowest tender is. Rejected
14. Draft a tender notice for given work

FOR EXAMPLE
15.
Validity Period: The time period up to which the rates offered by contractor are
valid. After this the contractor may accept or refuse to execute the work with the same
rates. This time period is 30 to 90 days after submission of his tender
Time limit: For civil engineering work it should be completed within fix period
beyond that period the contractor is liable for penalty. The contract includes, the period
of completion specifying the date, month and number of working days. The allowed
time for completion of work includes also the rainy season.
16. Explain the procedure of initiating the work by PWD
17. Enlist methods used in PWD for carrying out works 4 explain any one method
in detail
18. Suggest a justify types of contract suitable for following work or Method
suitable to execute the given work
Suitability: Lump sum contract- This type of contract is suitable for small work
2. Item rate contract- It is suitable for large work. The item rate contract is most
commonly used for all types of engineering works financed by public or government
bodies
3. Percentage rate contract- It is suitable for all types of Private and government
work.
4. Labour contract- It is suitable when materials to be arranged and supplied by
owner
and contractor only arrange labours.
5. Demolition contract- This type of contract includes the demolition and the removal
of structure and its component parts and disposal of demolished material.
6. Negotiated contract-This type of contract is suitable for work where time is
important and work has to complete at short notice
19. Explain unbalanced tender with example

20. Enlisted tender Documents
Tender documents - 1. Title page: It contains name of work, contract bond

number, etc. 2. Index page: It contains list of contents of agreement with page
references. 3. Tender notice: It is the notice published in the newspaper inviting
tender. 4. Bill of Quantities OR Schedule of Quantities – Schedule – B 5.
Schedule of issue of materials: Schedule – A 6. General specification:
Specifying the class and type of work in general 7. Detailed specification:
Guidelines about material, workmanship and measurements. 8. Drawings: It is a
complete set of drawings 9. Conditions of contract: Containing terms and
conditions of contract in detail. 10. Special conditions: Depending on nature of
work, taxes, royalties, compensation to labours etc.

QB Caa CT-1

Uploaded by

Copyright:

Available Formats

QB Caa CT-1

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

QB Caa CT-1

Uploaded by

Copyright:

Available Formats

QUESTION BANK

CONTRACT AND ACCOUNTS

Following are the requirements of valid contract

2. State conditions under which the contract is terminated.

3. List any four types of engineering contracts

5. Write any four functions each of

ii. Functions of superintending engineer (SE) :

iii. Function of executive engineer

iv. Functions of Junior Engineer (JE):

6. Draw organizational structure of PWD.

7. List of documents required for a registration as a contractor with state

9. Points to be included while drafting tender notice.

10. Define tender , enlisted the type of tender and necessity

13. State conditions where lowest tender is. Rejected

14. Draft a tender notice for given work

16. Explain the procedure of initiating the work by PWD

19. Explain unbalanced tender with example

Tender documents - 1. Title page: It contains name of work, contract bond

You might also like