Give the meaning and situation
where the following payments are made to the contractor.
Secured advance
Advance payment
Ans.
Secured advance
This is an advance made on the
security of material brought to site of work, to a contractor whose contract is
for completed item of work. These material should be of imperishable nature and
an indenture in form-31 is to be signed by the contractor before an advance,
not exceeding 75% of the assessed value, can be sanctioned by the divisional officer.
Detailed account of advance is kept in form 26-A and is attached to the R/A Bill.
NO record is kept in M.B. of the quantities of material. The certification
printed on Form 26-A are however to be signed by SDO/DO. As the material is
consumed in work and measured for payment, the recovery is effected through RA
Bills.
Advance payment
Such payment is made on a
running account to contractor for work done by them but not measured
certificate to printed R/A Bill is to be signed by SDO. The lump Sum amount to
be paid on account of the several items is specified against item 2 of part III
of the bill. The advance is adjusted through subsequent bill in which the
actual measurement have been taken.
Give the meaning of item rate
contract and state any four advantages and four disadvantages of it.
Ans.
In this contract, the
contractor undertakes to execute work on approved scheduled rates of each item
of work plus the premium quotes in the tender. As the contractor is required to
quote rate for each item, so it is called item rate contract.
Advantages
There is no need for detailed
drawing and time of allotting the content. Detailed drawings are prepared after
the contract is awarded.
The changes in the drawings and
quantities of item can be adopted later on as per the need be, since the rates
are given item wise and it will not affect the content materially.
The payment to the contractor
is made on the actual work done by him at the agreed rates.
Bill of quantities which forms
a part of the content documents helps the contractor to keep the tendered sum
as low as possible, because every contractor has to access the amount of work
involved prior to submitting the tender and in the absence of bill of
quantities, he is borned to quote high rates in tender.
Disadvantages
Total cost of work is known
after the completion of work. The owner may be put in financial difficulty of the
actual cost increases.
Both the owner and the
contractor have to keep account of all item on the work progresses, so have to
appoint staff for keeping account and the record the measurement of work done.
Since the rates are quoted,
whatever is the additional saving in the construction, is the extra profit of
the contractor so he has a tendency to save good quality of material thereby
inferior quality material may be used in construction if one is not cautious.
The extra items are after a
source of trouble as the contractor presses for higher rates than already
tendered.
