GUIDELINES FOR THE REVIEW OF

NATIONAL HIGHWAYS WORKS

UNDER
NATIONAL HIGHWAY DEVELOPMENT PROGRAMME

BY
NATIONAL HIGHWAYS AUTHORITY OF INDIA

Prepared by
Central Road Research Institute, New Delhi
&
Indian Audit and Accounts Department

CHAPTER I
1.1 Introduction
1.1.1 The Indian Audit and Accounts Department (IAAD) vide letter no. RAP/NHAI/MISC/1127/2002-03 dated 20.5.03 requested Central Road Research Institute, New Delhi to provide
technical inputs and vetting up of guidelines prepared by the Audit Department itself to
review National Highway Works carried out by National Highways Authority of India under
National Highway Development Programme. The Review shall cover the activities of NHAI
with regard to the implementation of NHDP. It shall be based on test check of records of the
NHAI Head Office and selected works being executed by PIUs. Keeping in view the
number of completed / ongoing projects, geographical spread and physical progress of the
projects, the test check would cover all completed works executed by NHAI, on-going
contracts, which have reached 50 per cent or more physical progress, including works
where time and cost overruns have already occurred.
1.1.2 In response to the above, detailed discussions were held between CRRI & Indian
Audit & Accounts Department to understand the scope of work and to seek clarifications on
the guidelines drafted by IAAD for the purpose. The guidelines are being accordingly
modified.
1.1.3 The first chapter gives an overview of the present status of the completed and the ongoing road projects under Golden Quadrilateral, NS &EW, Port Connectivity and others,
which are to be audited. The second chapter deals with the Financial Position and the
Status of NHDP projects. The remaining chapters of the guidelines deals with various
activities of a project from inception to award such as Identification of Project, Feasibility
Studies, Selection and Appointment of consultant, Parties to Civil Engineering Contracts,
the Roles and Responsibilities of Various Parties in the Contract, Preparation of Contract
Document under FIDIC condition of contract and Evaluation of Tender, Commencement of
works and Contract Administration, Claims and Evaluation of claims and Dispute Resolution
Board. Finally a checklist has been prepared at the various stages of contract development.
1.1.4 These Guidelines have been prepared to promote a better understanding of Standard
General Conditions of Contract, the matter of which are drawn from FIDIC General
Conditions of Contract, 4th Edition1987. However, these Guidelines should not alone be
relied upon for the review and examination of Contract Agreement. Before commencing a
close examination of a Contract, it is desirable to place it in perspective with the contract
concept.

CHAPTER II

National Highways Development Project

2.1 National Highways Authority of India
2.1.1 National Highways Authority of India (NHAI), which was constituted on 15 th June 1989
under Section 31 of the National Highways Authority of India Act 1988 and was formally
operationalised in February, 1995 as an autonomous body with executive responsibility for
development, maintenance and operation of national highways and associated facilities, is
working under the administrative control of the Ministry of Road Transport and Highways
(MORTH), Government of India (GOI).
2.1.2 In accordance with the NHAI Act, 1988, GOI, from time to time, has vested in or
entrusted to NHAI, various national highways or stretches thereof, for the purpose of
development and maintenance. The Authority is also acting as an implementing agency for
various externally aided projects for which funds are received directly by the GOI under
separate loan agreements from multilateral agencies like World Bank (WB), Asian
Development Bank (ADB) and Japan Bank of International Cooperation (JBIC)
2.1.3 The activities of NHAI have increased tremendously during the recent years with the
implementation of the National Highways Development Project (NHDP) during 1999, which
is a special project of the Prime Minister. The project envisages a six-lane Golden
Quadrilateral linking Delhi Kolkata Chennai Mumbai Delhi circuit, a North-South
Corridor connecting Kashmir to Kanyakumari and a similar East-West Corridor connecting
Silchar to Saurashtra. This mainly comprises strengthening and four/six laning of highdensity roads of around 13,000 km over a period of 10 years. The main components of
NHDP are as follows:
Golden Quadrilateral (GQ): - 5846 km connecting the four metros of Delhi- Kolkata
Chennai-Mumbai costing about Rs. 25,000 crore (at year 2000 prices). The date of
completion of this project was given as 31st December 2004 but has now been preponed to
December 2003.
North South & East-West Corridor (NS & EW Corridors): - 7,300 km connecting
Srinagar (J&K) to Kanyakumari and Silchar to Porbandar costing Rs. 30,000 crore (at year
2001 prices). The date of completion of this project was given as December 2009, but has
now been preponed to December 2007.
2.2 Organizational Set up of NHAI:
2.2.1 A Board comprising a Chairman and four full-time members, namely, Member (Admn),
Member (Corporate Finance), Member (Technical), and Member (World Bank) appointed by
the GOI, carries out the functions of the Authority.

2.2.2 There are about 57 Project Implementation Units (PIUs) headed by Project Directors
(PD) located all over the country, which implement the projects awarded by NHAI head
quarters.
2.2.3 At the Headquarter there are three main divisions, viz Administration, Financial and
Technical. The other associated functional areas are: Information Technology, Corridor
Management, Environment and Social Development and Vigilance.
2.2.4 The field formation comprises of Project Implementation Units and Corridor
Management Units.
2.2.5 The staff of the Authority is classified into 4 Groups: Group A,B,C and D. Chief
General Managers, General Managers, Deputy General Managers and Managers are
Group A officers. Group B employees are designated as Officers. Group C and D
employees constitute support staff.
2.2.6 The Organisational Set up is given below.

ORGANISATION CHART OF NHAI

CHAIRMAN

M
(Admn)

M (Fin)

M
(Tech)

GM
(Admn)

GM
(IT)

GM
(Fin)

GM
(CF)

GM
(PI)

DGM
(Admn)

Manager

DGM
(Fin)

Manager
(CF)

DGM
(PI)

Mgr
&
Asst.
Manager

Asst.
Program
mer

Mgr (Fin)
&
AO

CGM
(EW)

CGM
(NS)

M
(WB)

CVO

GMs
(Tech)

GMs
(East)

GMs
(WB)

DGMs
(Vig)

Manager
(PI)

Manager
(Tech)

Manager
(East)

Manager
(WB)

PIUs

PIUs

PIUs

PIUs

Manager
(Vig)

PIU

CHAPTER III

FINANCIAL POSITION AND STATUS OF NHDP PROJECTS

3.1 Financing of the project:
3.1.1 NHAI has been receiving funds from GOI, mainly in the form of Capital and Capital
Grant out of the budgetary allocation for execution of capital projects. It has been executing
various capital projects out of the funds provided by GOI and various externally aided
projects funded by multilateral agencies like the WB, ADB and JBIC, for which funds are
transferred by GOI to NHAI in the form of Capital Grant.
3.1.2 In addition to the above, NHAI has also been receiving funds from GOI in the form of
Revenue Grant to meet the expenditure on the maintenance of the national highways.
3. 2 Budgets and Accounting:
3.2.1 The NHAI Budget, Accounts, Audit, Investment of funds, and Powers to enter
Premises Rules, 1990 prescribe the procedure relating to budget, accounts, audit,
investment of surplus funds, etc. In accordance with the NHAI Act, the annual accounts of
NHAI are required to be audited by the Comptroller and Auditor General of India.
3.2.2 Presently, the budget of NHAI is compiled and actual expenditure/income compared
against the budget on an annual basis. The finances for NHDP projects amounting to
approximately Rs. 58,000 crore are to be met through the following sources over a period of
10 years:
Sl. No

Source of Finance

Rs. in crore
(1999 prices)

1.

Government of India cess on petrol and diesel to form a

non-lapsable Central Road Fund (CRF). Currently about Rs.
5000-6000 crore are collected yearly and around Rs. 2000
crore are committed for NHDP annually

20,000

2.

External funding agencies like WB, ADB and JBIC

20,000

3.

Market Borrowings

10,000

4.

Private Sector participation through Build, Operate and

Transfer (BOT) schemes by providing necessary regulatory
framework for accessing private financing.

8,000

3.2.3 The Authority has received about Rs. 7762 crore from GOI on account of cess and
Rs. 3637 crore from multinational funding agencies till March 2002. NHAI has also raised
Rs.1461 crore through private placement of bonds.
3.3 Expenditure incurred on NHDP: The total expenditure incurred on NHDP projects till
30th June, 03 is as follows.

(Rs. in crore)

Cumulative
During current
expenditure up to year (April 2003 to
31.3.03
June 2003)
9688
1368

Component
GQ
NS & EW
Others
Maintenance of NH
PIU
releases
&
Expenses
Total

Misc.

Cumulative
expenditure up to
June 2003
11056

1553
1792
662
57

109
58
45
191

1662
1850
707
248

13752

1771

15523

3.4 Present Status of NHDP Works:

3.4.1 Golden Quadrilateral: - Out of 5846 km, works in respect of 1408 km under 34
contracts have been completed as at the end of June 2003. Works in respect of 4354 km
under 91 contracts are under implementation at a project cost of Rs. 15680crore and 3
contracts covering 84 km are yet to be awarded.
GQ is scheduled for substantial completion by 2004.
3.4.2 North-South & East-West Corridors: - Out of the total length of 7300 km, 557 km
(17 contracts) have been completed as at the end of June 2003 and 423 km (24 contracts)
are under implementation at an estimated cost of Rs.1715 crore. Contracts in respect of
6294 km are yet to be finalized.
The corridors are scheduled for substantial completion by 2007.
3.4.3 The present status of NHDP works is as follows
Present Status of NHDP and other projects:

Component
Total Length (km)
Completed (km)
Under
Implementation
(km)
Balance for award (km)
Awarded Cost (Rs in crore)
Expenditure during Current
Financial Year (Rs in crore)
Cumulative as on 1.07.03
(Rs in crore)

GQ

Port
Connectivity
363
56

Others

Total

5846
1408

NS &
EW
7300
557

653
153

14162
2174

4354(91)

423(24)

113(4)

162(4)

5052(123)

84
15680

6294
1715

194
491

338
241

6910
18127

1368

109

294

1771

11056

1662

2805

15523

Figures in brackets show the number of contracts

3.5 Scope of Audit

6

3.5.1 The Review shall cover the activities of NHAI with regard to the implementation of
NHDP. It shall be based on test check of records of the NHAI Head Office and selected
works being executed by PIUs.

Keeping in view the number of completed / ongoing

projects, geographical spread and physical progress of the projects, the test check would
cover:

Completed works executed by NHAI, numbering 21

Eleven on-going contracts, which have reached 50 per cent or more

physical progress, including 9 works where time and cost overruns have
already occurred.

Thus a total of 32 works shall be audited.

CHAPTER IV

Planning and Implementation of Project

4.1. Identification of Project: The various stages in planning and implementation of a
project can be phased as indicated below.

Development Strategy and Sectoral Objective requirements

Estimate for forward financial planning
Identification of financial assistance/donor
- World Bank
- Asian Development Bank
- JBIC
- GOI etc

Incorporation into the Countrys lending programme

4.2. Project Preparation (Pre-investment Study and Detailed Project Report) :

4.2.1

In order to prepare the Pre-feasibility Report, the following step wise procedure is
generally to be followed:

(i)
(ii)
(iii)
(iv)

Preparation of TOR
Selection of consultant to prepare PPR, as per laid down procedure and criteria
Preparation of Quality Assurance Plan as per TOR, and its approval
Preparation and approval of Inception Report and Draft report as per schedule
defined in TOR
Preparation and approval of final Project Preparation Report.

(v)

During preparation of PPR, the work and progress of the consultant will be reviewed by
GM/ CGM.
4.2.2

In the course of PPR the consultant will carry out a number of pre investment
studies including:

Collection of basic data

Topographic survey
Hydrological survey
Traffic survey
Base line survey for identification of Resettlement Action Plan.
Sub- soil investigation
Material survey (borrow areas, quarry location, lead)
Services (Utilities) to be shifted
Trees and obstructions to be removed
Land acquisition involved.
Environmental impact assessment
Details (including procedures) of stationary clearances required
Approvals required from the Railways and other authorities for components of
work relating to them, and the procedures therefore.
Exploration of alternatives/options

Economic Evaluation

 Financial Analysis
4.2.3. If PPR establishes the viability of the project and is found to be in order, it will be
formally accepted. Acceptance of PPR will lie with CGM/Member (Technical).
4.3 Detailed Project Report (DPR)
4.3.1 The following step-wise procedure will be followed :
(i)
(ii)
(iii)
(iv)
(v)
(vi)

Preparation of Terms of Reference (TOR)

Selection of a consultant to prepare DPR, as per the procedure and criteria
given in Chapter 6.
Preparation of Quality Assurance Plan as per TOR, and its approval
Preparation and approval of Draft Environmental Assessment Report and
Rehabilitation Action Plan (RAP)
Preparation and approval of Draft DPR
Preparation and approval of Final DPR

4.3.2 During entire period of services, the Consultant will continuously interact with the
concerned officials of NHAI and provide any clarification as regards method being followed
and carry out any modifications as suggested by NHAI. A prior programme of various
activities will be sent to NHAI and prior intimation given regarding start of any key activity
such as boring, survey etc. A monthly progress report, for monitoring purpose, will be sent
by the consultant to the designated officer of NHAI.
4.3.3 The detailed Project Report (DPR) shall be scrutinized thoroughly for accuracy and
soundness by the team leader of the consultant. Before final submission to the employer,
the Chief executive Officer (CEO) of the consultancy firm will certify its correctness under
his own signature.
4.3.4 DPR shall be examined by General Manager to ensure that all aspect of the project
are duly covered, that it is fit to form the basis of the contract. If he discovers any lacunae,
he shall return the proposal to the consultant, and accept only when it meets the test of
fitness. The following shall be particularly looked into.
(i)

(ii)

(iii)
(iv)

(v)
(vi)

DPR should be faithful to site conditions, availability of materials, and capable of

translation on the ground. Survey control points on ground should be
established physically and securely and in sufficient numbers to allow accurate
and convenient setting out of works.
Hydraulic design parameters should be based on correct data and field survey.
Sub-soil investigation for design of structures, sub grade soil and material
investigation for design of pavements should be accurate and reliable and in
sufficient detail. The information should be tabulated and also represented
graphically in a form that is capable of being checked and verified. Due account
should be taken of any environment restrictions.
DPR should identify the potential sources of materials, like quarry sites, borrow
areas, establish their quality and recommended their use on the basis of technoeconomic principles.
Correct details of all physical features and obstructions, structure railway lines,
canal/ river crossings, water mains, sewers, gas/ oil pipes, trees, plantation,
electric and telecommunication lines etc. which affect the proposal should be
marked to an accuracy/ tolerance consistent with their likely interference.
Utilities relocation plans should be capable of execution at site, without
additional instructions or changes.
The pavement design should take the account of the characteristics of materials
to be used in various courses, and the variability of their properties. The report

(vii)
(viii)
(ix)

(x)
(xi)

should also forecast, in terms of time and traffic, the deterioration levels at
various stages of pavement life, and suggest the required maintenance strategy.
Drawings for ROBs/ RUBs should be based on clearance by ad approval of
concerned Railway authorities.
In case of bridges, the final design should be based on clearance by and
approval of concerned Railway authorities.
In case of bridges, the final design should be based on approval of General
Arrangement Drawing (GAD) and alignment plan by NHAI to be given after
consideration of alternatives and bringing out their cost effectiveness and case
of construction.
The description of items in Bill of Quantities should be consistent with the
drawings and specifications, and all should lend themselves to harmonious and
unambiguous interpretation.
Besides the quantities of various items of work, BOQ should also give the
quantities of major materials like, cement, steel and bitumen likely to be required
to be given in the Price Adjustment Formula.

4.4 Check and Scrutiny of DPR:

4.4.1

In important projects, as decided by Member Technical, the DPR may be sent for
peer review, to ensure that all the objectives of the project are covered, and that the
presentation is consistent with quality, cost and time. For major bridges and complex
structures, proof consultants should be appointed. The DPR should generally
consist of the following parts:
(i)
Main Report
(ii)
Design Report
(iii)
Materials Report
(iv)
Environmental Assessment Report, including Resettlement Action
Plan
(v)
Technical Specifications
(vi)
Rate Analysis (based on Data Book of MOST, now MORTH)
(vii)
Cost Estimates
(viii) Bill of Quantities
(ix)
Drawings
(x)
Project specific changes in Bid Documents

4.4.2 Main report should bring out the background of the projects, its social analysis,
details of survey and investigations carried out, analysis of survey and investigation
data, traffic studies and demand forecast, rationale of design chosen, cost estimation,
economic and financial analysis, sensitivity analysis, project clearances from various
agencies for project implementation etc.
4.4.3 The Design Report and the Material Report should be detailed as per TOR and,
among other things, carry a certificate by the consultant that all ground surveys, field
tests, material tests, soil tests, sub soil and hydraulic investigations etc. reported and
relied upon, have been actually carried out with due diligence. Without this certificate
DPR should not be accepted.
4.4.4 Cost should be worked out realistically based on correct physical inputs as per
Data Book of MOST (now MORTH) and the prevailing market unit rates of materials and
equipment applicable to the site, as actually verified and so certified. DPR should not
be accepted without a certificate to this effect by the consultant.
4.4.5 As mentioned before, estimate should bring out the quantities of principal
materials like, cement steel and bitumen, and give the percentage cost of each of them

10

separately, along with that of other general materials, In relation to the total cost of the
work. These percentages will be used in the Price Adjustment Formula.
4.5 Expenditure on Study and Project Preparation
4.5.1 Initial expenditure on PPR and DPR shall be debited to a separate account head
called Study and Project Preparation. If they result in acceptance of the project the
expenditure so incurred shall form a part of the project cost. But if the project is not
accepted, and it is decided not to proceed further, the expenditure incurred on
PPR/DPR, will remain debited to the above head.
4.6 Advertisement / Publicity of Tenders
4.6.1 Tender notices should be published in a variety of publications including English
national dailies, which cover the metro cities. Hindi dailies and other vernacular
newspapers in and around the areas of vendor base. They should also be published in
financial newspapers like the Economic Times. Financial Express, and technical
magazines like Indian Highways. Global tenders should additionally be published in
India Abroad, or India West, or Wall Street Journal, or financial Times, and India Export
Bulletin.
4.6.2 Copies will also be sent to various units of NHAI and local PWD officers with a
request to put them on the Notice Board.
4.6.3 Letters of Invitation (LOI/ NIT) Instructions to Bidders, Standard Conditions of the
Contract, letters seeking Expression of Interest (for consultancy services) and Request
for Proposal (RFP should be up on the NHAI website (www.,nhai.org) which the
prospective bidders/applicants should be able to download. The variable parts such as
Conditions of Particular Application. Terms of Reference and Data Street can be
supplied on payment.
4.7 Approvals of Estimates
4.7.1 Approvals to estimates/ works shall be accorded as follows :
1. Administrative Approval: On the basis of cost worked in the PPR, or
normative cost if PPR has been dispensed with. Administrative approval of
the Authority in token of acceptance of the scope and cost of the work/
project in question will be formally issued by Member (Technical)
2. Technical approval (Sanction). On the receipt of DPR ad its acceptance by
the Chairman/ Authority, in accordance with the delegation of powers,
Member technical/ Chief General Manager will issue Technical Sanction. It
will be a guarantee that the proposal is technically sound, safe, economical
and durable, that the estimates are based on adequate data and are
accurately prepared and that all the parameters impinging on the work have
been properly catered for.
3. Financial approval/ Commitment.
The authority will issue. Financial
Commitment by including in the tendered rate the following components:

Cost of land acquisition, cutting of trees, compensatory afforestation,

shifting of utilities, removal of obstructions, resettlement and
rehabilitation (pre-construction activities)

11

Actual cost of supervision (limited to 6%)

Work contingencies (limited to 3%)
Agency charges (1%)

4.8. Appraisal, Loan Negotiations and Approval: The various stages may be as follows

Appraisal
Carried out by a donor on
- Technical, cost estimates and engineering
- Institutional
- Economic
- Financial

Loan Negotiations
Carried out between Borrower and Donor
- Legal Obligations
- Loan agreement
- Financial Covenant

CHAPTER V

12

Parties to Civil Engineering Contract and Appointment of Consultant

5.1 In order to accomplish the various tasks as listed above, the contracts are signed

between the Client & the Consultant and the Client & the Contractor. The Client, the
Consultant and the Contractor has to play various roles under the given contract and each
party has certain obligation and duties, which has been very clearly indicted in the various
Clause of FIDIC conditions of contract. In the conventional straightforward civil engineering
project, there are usual three organizations involved.

The Employer (also known as Client or Owner) who is the party

interested in having the project executed.

The Consulting Engineer who has been responsible for preparing all the
plans in accordance with the Employers wishes

The Contractor who is responsible for constructing the project in

accordance with the Employers wishes.

5.2 Thus the Supervision Contract in this arrangement exists between Employer &
Consultant and Construction Contract between Employer & Contractor. Note that there
is no contract between the contractor and the consultant. The parties to a civil engineering
contract are shown in figure 1.
5.3 Appointment of Consultant
5.3.1 In order to prepare and implement the projects, and do forward planning, NHAI needs
high-quality services of consultants, to blend economy with efficiency. The consultancy
services in connection with works, which the NHAI shall be most often seeking, include :

Feasibility Studies
Project preparation, including specifications and BOQ
Tender documents
Construction supervision
Project co-ordination consultancy (PCC), which could embrace all of the
above mentioned tasks
Development of management system
Special studies relating to planning and research
Road /bridge inventory database
Traffic data base
Computer aided design
Transport modeling
Expressway designs and operations
BOT viability of a project, and preparation of bid documents
Proof consultancy with respect to designs
Training
Quality audit

13

5.4 Procedure of Appointment:

14

5.4.1 In order to appoint the consultant for a particular job/assignment, the Consultants,

Terms of Reference (TOR) are prepared by the Client for award of consultancy project. The
TOR is very important document and its quality and clarity often imparts heavily on the
management, execution and overall outcome of the project. The main stages in the
selection process are as shown in figure 2 below.

2.Appointment of
Evaluation
Committee and
Preparation of
TOR

1. Project
Identification

5. Evaluation
of Technical
Proposals

6. Interview
of Top Two
Technically
Assessed
Consultant

3. Setting of
Evaluation
Criteria (include
in TOR)

4. Shortlist of
Qualified
Consultants
and Request
for Proposals

7. Opening of
Financial and
Combination of
Technical Score
and Financial
Proposals

Award and
Monitoring

Fig 2: Main Stages In Selection of Consultant

5.4.2 The consultancy proposal for a particular job is normally submitted in two parts.
i.

Technical Proposal: In the Technical Proposal the following aspects are

examined.

Background information, experience in similar works

Approach and methodology, work programme

Manning schedule, bio-data of key-personnel

Comments on Terms of Reference (TOR) and associated arrangements,

if any

ii. Financial Proposal (FP): In the Financial Proposal the following aspects are
examined.

Lump sum, cost plus fee basis, out-of-pocket expenses, man month
rates

Traveling and transport, office accommodation, stationery

Computer and equipment charges, supply of equipment

Support staff

15

5.5

Procurement of Consultants:

5.5.1

The procurement of consultant is mostly through;

5.6

Quality and cost based selection

Quality based selection

Sometimes there could be a single source selection

Steps in Quality and Cost Based Selection of Consultants

5.6.1

The following steps are generally followed for the selection of consultant.

Preparation of Terms of Reference (TOR)

Preparation of Short List

Open Advertisement on and of entire pre-qualification document

Long List from: Lending Agencies and Available with NHAI

Issue of Letter of Invitation, TOR and Draft Agreement

Receipt of Technical Proposal (TP) and Financial Proposal (FP)

Evaluation by Committee of TP

Opening of FP of Consultants who qualify in TP in the presence of

Representatives of Consultants

Marks obtained in TP are informed prior to opening of FP

Combined Evaluation of TP and FP

Negotiations on technical issues with highest ranked consultant

Steps in quality based selection: adopted by ADB and JBIC

After evaluation of technical proposal, a committee negotiates the financial

proposal of highest ranked consultant

Work is awarded after successful negotiation

Steps in single source selection: in urgent cases only

5.7

Where work is an extension of existing study, by the same firm

Where rapid selection is essential

Where the firm has excellent experience in the particular field

Proof Consultants

16

5.7.1 Proof Consultants are not a separate entity, unlike the ones described above. They
may be individuals or consulting firms, who are hired for checking designs of complex or
important structures, or checking the safety of a structure in distress, or examining designs
for their restoration. The fee is decided on case-to-case basis. In case the proof consultant
holds a different assessment, he should not just give his comments but should be required
to interact with the designer who had prepared the proposal in the first instance.
Proof consultants will be finally responsible for the accuracy of analysis and design, except
initial data, irrespective of the fact whether the same has been examined and approved by
the Employer or not.
5.8 Quality Audit Consultants
5.8.1 Quality auditors will be third party auditors. They will carry out the work of preparation
of checklists and documentation to verify the implementation of Quality Assurance Plan,
extent and efficacy of control exercised by contractors and consultants at site, compliance,
with provisions of the contract, critical analysis of test results and their trend, deficiencies
observed and improvements suggested, comments on quality index, compliance with
previous remarks/ observations.
5.8.2 Quality auditors should not be entrusted with any other consultancy of design or
supervision by NHAI.

Selection may be made from a list prepared by a high level

committee, which may comprise Member NHAI, DG (RD), and some eminent experts of
known professional competence and integrity.
5.9 Contractual and Professional Provisions
5.9.1 Price Adjustment
5.9.1.1Adjustment of the remuneration for foreign and/or local inflation will be done as per
price adjustment provision included in the contract if its duration is expected to exceed 18
months. In exceptional cases, contracts of shorter duration may include a provision for
price adjustment when local or foreign inflation is expected to be high and unpredictable.
5.9.2 Payment Provisions :
5.9.2.1 Payment provisions, including amounts to be paid, schedule of payments, and
payment procedures, currencies of payment, shall be agreed upon during negotiations.

17

Payments may be made at regular intervals (as under time based contracts) or for agreed
outputs (as under lump sum contracts).
5.9.2.2 Interest bearing Advance (at rates specified in the contract) up to 10% of the
contract amount may be paid which will be backed by bank guarantee. The advance will be
set off in equal monthly installments against payments, and fully recovered by the time the
cumulative charges of Services have reached 80%.
5.9.2.3 The consultant may be required to submit an acceptable bank guarantee in an
amount upto 2.5% of the accepted consultancy cost towards Performance Security, which
shall be valid for the duration of services plus three months (or such period as may be
specified).
5.10 Conflict of Interest
5.10.1 The consultant shall not receive any remuneration in connection with the
assignment, except as provided in the contract. The consultant and its affiliates shall not
engage directly or indirectly in activities that conflict with the interest of the NHAI under the
contract, and shall be excluded from downstream supply of goods or construction of works
or purchase of any asset or provision of any other service related to the assignment other
than a continuation of the Services under the ongoing contract not connected with the job
concerned.
5.11 Professional Liability of Consultant
5.11.1 The consultant will be expected to carry out the assignment with the diligence and in
accordance with prevailing standards of the profession. He will always act, in respect of
any matter relating to the Contract or the Services, as faithful adviser to the Employer and
will at all times support and safeguard the Employers legitimate interests in any dealings
with the subcontractors or third parties.
5.11.2 He shall be responsible for accuracy of data (whether collected directly by him or
procured from other agencies/ authorities), the designs, drawings, estimates and all other
details prepared by him as part of the Services. He shall indemnify the NHAI against any
negligence, deficiency in Services, or inaccuracy./ deficiency in the work that might surface
during implementation of the project. The consultant will also be responsible for correcting
at his own cost, the drawings including any re-survey /investigation and correcting layout, if
required.
5.11.3 The consultant shall provide to the NHAI a Professional Liability Insurance (PLI) for a
period of ten (10) years or as per applicable law, whichever is higher, after completion of

18

Services. The liability to the BHAI shall be limited to not less than the total payments
expected to be made under the consultants contract, or the proceeds the consultant is
entitled to receive under its insurance, whichever is higher.
5.12 Termination of Contract with Consultant
5.12.1 Progress of work done by the consultants will be reviewed during the course of
consultancy. If the consultant is found to be not performing satisfactorily, or refuses to re do
part of the work which is found unacceptable, or falls to comply with any decision reached
as a result of arbitration proceedings, or becomes ban corrupt, or is found to indulge in
corrupt and fraudulent practices, or knowingly submits a false statement which has a
material effect on the rights, obligations or interests of the Employer, NHAI may terminate
the contract after giving due notice. Upon termination, the Employer shall, after offsetting
any advances, pay for the services satisfactorily done before the effective date of
termination, and also of reimbursable expenditures which have been actually incurred
before the said date.
5.13 Staff Substitution of Consultant
5.13.1 During an assignment, if substitution is increasingly necessary, the consultant shall
propose other staff of at least the same level of qualifications for approval by NHAI. The
substitution of staff should not be allowed to exceed 33% . In case of change beyond this
limit, a reduction of 10% in the consultancy fees should be affected.

For changes in

personnel in excess of 50%, the consultancy agreement should be liable for termination.
5.13.2 If the Team Leader, or any other specialist, considered to be pivotal to the project is
changed, the substitute should be duly interviewed by a committee headed by CGM to
assess his merit and suitability.
5.13.3 If any member of the approved team of a consultant engaged by NHAI leaves that
consultant before completion of the job, he should be barred for one year from being
engaged as a team member of any other consultant working (or to be appointed) for any
other NHAI job,
5.13.4 If the Employer (i) finds that any of the Personnel has either committed serious
misconduct, or has been charged with committal of a criminal action, or (ii) has reasonable
ground to be dissatisfied with the performance of any of the Personnel, then the consultant
shall, at the Employers written request specifying the grounds therefore, forthwith provide a
replacement with qualifications and experience acceptable to him.

19

5.14 Extension of Time

5.14.1 Time shall be extended for the period equal to the one during which the consultant
was unable to act as a result of Force Majure.
5.15 Settlement of Disputes
5.15.1 Dispute between the parties shall be settled in accordance with procedure given in
Supervision Consultancy and Design Consultancy Agreement.
5.16. Monitoring the Performance of Design Consultants
5.16.1 The work of Design Consultant shall be regulated and monitored as follows :
- Monthly Progress Reports and Reviews
- Disincentives, A part of fee (up to 10% ) should be deducted for : (a) major
deficiency discovered through proof checking, peer review or check by the
Employer; (b) undue delay in giving the agreed outputs; (c) changes in personnel
more than 20%; (d) large time and cost overruns encountered during execution
on account of, deficiency in project preparation, estimates and designs.

committee should, at the time of final payment, judge the exact amount of
disincentive based on suitable norms.
- Deterrent Action.

Corrective and punitive action should be taken against

consultants for deficiency in services, errors, acts of commission and misconduct.

In

this

regard

guidelines

issued

by

MORTH

vide

letter

no.

RW/NH/34054/3/2000/S & r dated 28.11.2001 (published in Indian Highways,

January 2002) may b e followed.
5.16.2

Performance Appraisal Report (PAR).

At the end of every job, PAR or the

consultant will be written by the GM, reviewed by CGM and countersigned by Member
NHAI. The report will be attached to the consultants dossier.
5.17 Monitoring the Performance of Supervision Consultant
5.17.1 The work of Design Consultant shall be regulated and monitored as follows :
-

Monthly Progress Reports. These should, iner alia, include: (a) manpower
inputs with time sheets; (b) achievements during the period; (c) ratio of up-todate expenditure on consultancy to the total cost of work; (d) highlights of any

20

discussion/ review by the Employer and compliance thereof, and (e) results of
quality audit of the job by the quality auditors.
-

Disincentives. A part of fee (up to 10%) should be deducted for : (a) major
accidents on the job; (b) lack of control on time, and cost over run beyond 10%
(c) undue delay in drawings, decisions, leading to contractual claims; (d)
changes in personnel more than 20%; (e) unsatisfactory quality index of work,
and (f) serious remarks in the report of quality auditors. A committee should, at
the time of final payment, judge the exact amount of disincentive based on
suitable norms,

5.18 Performance Appraisal Report (PAR).

5.18.1 At the end of every Construction Supervision job, Performance Appraisal Report of
the consultant will be written by PD, reviewed by CGM and countersigned by Member
NHAI. It will include professional conduct, negligence, safety record, quality index,
documentation, integrity, time and cost overruns, delays in this and decisions, co-ordination
and relationship, assessment from quality audit report, any innovation or modern
techniques adopted etc. The report will be attached to the consultants dossier.

21

CHAPTER VI

RESPONSIBILITIES, POWERS AND DUTIES OF THE PARTIES TO THE

CONSTRUCTION CONTRACT, FIDIC IV
In order to review the NHDP works, it is essential that the role, responsibilities and duties in
terms of FIDIC conditions of contract be clearly understood.
6.1 The Role and Responsibilities of Employer
6.1.1 The employer has obligations under both the applicable Law of the Contract and
under the Conditions of Contract. The basic responsibilities under the conditions of contract
are given in Clause 1.1, 11,19,20,21 to 25, 27, 30, 42, 59, 60 and 62. These cover:

Prior to the submission of tenders, provide to tenderers details of the site

investigations and relevant hydrological data.

Determine the Contract and draw up the Contract Agreement

Assign the Contract

Agree with the contractor the general terms of the third party insurance policy.

Appointment of the Engineer

Due consultation with the Engineer

Employer can limit the Engineers power and can also dismiss the Engineer

Provide possession of site to enable the Contractor to commence and

proceed with the Works.

Permit the contractor to carry out the whole of the works.

To provide instructions as and when they are required.

To nominate specialist sub-contractors and suppliers as and when they are

required.

Not to impede or interfere with the works.

22

To take responsibilities of the works from the date of issue of the certificate of
substantial completion.

Pay, within the specified time the amount certified by the Engineer, after the
deduction of any previous payments on accounts.

Attempt to resolve disputes through amicable settlement under the provisions

of sub clause 67.2 before proceeding to arbitration.

Remain liable for any unfulfilled obligation after the issue of the Defects
Liability Certificate.

Go to arbitration or Court

6.2 Implementation, Supervision and Evaluation by Employer

6.2.1 The execution of the project will be done through a contractor who is competent,
financially sound and offering to do the work at reasonable price. To achieve this, the
contractors should be pre-qualified (or post-qualified) on the basis of detailed criteria,
tailored to suit the needs of the project.
6.2.2 For supervising the work, NHAI will generally employ a competent construction
supervision consultant. His appointment will be routed through a well-defined process of
selection, based on combined evaluation of technical and financial proposals.
6.2.3 PIU (headed by the Project Director) will oversee the project on behalf of NHAI. Tasks
and responsibilities of PD are given in Para 6.2.4. Principal role of PIU will be to ensure that
the project is effectively developed and implemented. PIU may be headed by a GM/DGM
who will be assisted by one or two engineers of the level of DGM/Manager, who will be
posted at separate locations broadly conforming to work requirement. PD will be assisted
by Accounts Officer and supporting staff for accounts and secretarial assistance.
6.3 Duties of Project Director
6.3.1 Project Director will be overall incharge of the project within his jurisdiction. He will
ensure timely acquisition of land, shifting of utilities, and removal of obstructions. He will
provide liaison with other agencies and groups to ensure that all the local issues are
satisfactorily dealt with.
6.3.2 He will supervise and monitor the performance of the construction supervision
consultant and through him, of the contractor. He will administer the powers vested with
him under the contract, including making of payments. He will oversee the laboratory and
carry out random checks of work as regards their quantity and quality.
6.3.3 He will superintendent that the original pre-qualified contractor is actually working and
that there is no un-official sub-letting or back-to-back arrangement by the contractor to
perform the contract or any part thereof on his own behalf. If the contract provides for a
Joint Venture or a sub-contractor, PD should independently watch that they perform within
accepted conditions and framework of the contract. He will also check up that the

23

machinery and equipment as originally promised are actually working on the project site. If
he should send his finding to the CGM for appropriate action.
6.3.4 PD will report to the Headquarters criticalities in the implementation of the project.
He will provide the necessary inputs to the Headquarters as and when required. He will
give his comments on variations, time extension, disputes and claims, and present the case
before DRE/DRB ad arbitral tribunal. He will ensure proper maintenance of all relevant
record that may be needed at any time in the future to defend cases before the arbitrators
or in the courts. On transfer, differences disputes, claims and other matters to enable the
successor effectively watch the interest of NHAI.
6.3.5 On completion of the project, he will write confidential performance appraisal report of
the supervision consultant and submit to the CGM. He will also receive the performance
appraisal report of the contractor put up to him by the supervision consultant and forward it
to the CGM after counter-signature/ his remarks.
6.3.6 On completion of the Defect Liability Period, PD will carry out half-yearly performance
evaluation of the project during the life cycle of the project.
6.4 Overall Assessment of Project:
6.4.1 On completion of project, an assessment should be prepared. This will, inter alia,
address problems in respect of cost overruns, delayed completion, new policies and
procedures adopted; mistakes made; issues of dispute resolution, and lessons for the
future. Supervision consultant, where considered appropriate, may be asked to give a brief
presentation.
6.4.2 During the cycle of the project, six-monthly appraisal of the performance of the works
against their expected behaviour should be made by the Project Director/ Regional Officer,
and reasons for premature deterioration or fall in serviceability levels should be explored.
6.5 Revised Estimate
6.5.1 As soon as an excess over financial approval/ commitment, beyond the permissible
limit is foreseen, a revised estimate shall be prepared, showing the excess or saving over
each item or subhead, and giving reasons therefore. A revised estimate will not be required
if the increase in cost, excluding that attributable to (i) price escalation (ii) increase in
statutory levels (iii) variations in exchange rate, is not more than the permissible limit.
Revised estimate will be sanctioned by the authority component to do so.
6.6 The Role and Responsibility of the Engineer
6.6.1 It is only from an examination of the whole of the conditions of contract, it is possible
to determine the role of the Engineer. The Engineer is intended to act both as agent for the
Employer in the process of obtaining for the employer the project required, and as an
independent person for the administration of the contract and for the settlement of disputes.
In FIDIC IV Clause 2(6), the Engineer is required to act impartially when acting in the

24

independent role. Where he has to consult or seek approval from the employer before
making a decision then these have to be stated in the Condition of Particular Application.
6.6.1.1 Obligations of the Engineer:
The Engineer is required to:-Observe the works and test all materials
- Issue drawings and instructions timeously
- Record all facts and circumstances of adverse conditions
-Approve the programme of works
- Monitor rate of progress
- Certify completion of works
- Order variations in writing
- Value variations and fix new rates
- Value claims from contractor
- Measures the quantities of work done
- Assure payments to subcontractor
- Certify monthly certificates
- Ensure all maintenance works are done
- Value the works at determination of contract
- Resolve disputes in first instance (Engineers decision)
6.6.1.2 Powers of Engineers
- Issue instructions and drawings regarding the work
- Explain ambiguities in the document
- Approve or reject the part of works

25

- Order additional or varied works

- Suspend the work
- Grant extension of time
- Certify payments to the contractor
- Decide disputes in first instance
- Issue certificate of completion
6.6.2 The Consultant has a number of different roles, which can be examined as follows
under various Clauses of FIDIC IV :

Designer

Quality controller, Administration and Manager (Supervisor)

Clauses 6,7,51,

Clauses 2,5,14,17,19,20,31,33,35 to 40, 44,

46,49,50,51,54,56,57,58,59 and 65.

Value and Certifier

Adjudicator

Clauses 48, 49, 52, 53, 59, 60, 62, 63, 69 and 70
Clause 67

(not Quasi- arbitrator)

Powers and Duties of the Engineers

6.6.2.1 The Powers and duties of the Engineer, which can be active, reactive and passive,
are defined by the specific wording used in the various clauses :
Accept

12.2, 37.3

Adjust

5.2,

Agree

44.2, 52.1, 52.2, 52.4, 53.3, 56.1, 60.6.

Appear

14.2

Appoint

2.4

26

Approve

7.2, 8.2, 15.1, 38.1, 52.4, 56.1, 57.2, 59.1, 60.1, 60.5, 60.6

Ascertain

56.1, 63.3

Assess

53.4,

Authority

6.2, 58.2

Certify

49.1, 53.5, 59.5, 60.2 60.3, 60.5, 63.1, 63.2, 63.3,

Check

17.1

Confirm

56.1

Consent

4.1, 6.1, 14.1, 14.4, 45.1, 46.1, 54.1`

Considered

15.1, 52.4, 53.4, 53.5, 64.1

Consult

27.1, 30.3, 36.5,37.4, 38.2, 39.2, 40.2, 42.2, 44.1, 44.3, 46.1, 49.4,
50.1, 52.1, 52.2, 52.4, 53.5, 64.1, 65.5, 65.8, 69.4, 70.2

Copy

17.1, 27.1, 30.3, 30.3, 31.2, 36.5, 37.4, 38.2, 39.2, 40.2, 42.2, 44.1, 44.2,
44.3, 46.1, 49.3, 49.4, 50.1, 52.1, 52.2, 52.4, 53.5, 56.1, 58.1, 58.2, 59.3,
59.4, 60.3, 63.2, 64.1, 65.3, 65.5, 65.8, 69.4, 70.2.

Correct

60.4

Decision

67.1

Delegate

2.3

Demand

59.5

Determine

17.1, 27.1, 30.3, 30.3, 31.2, 36.5, 37.4, 38.2, 39.2, 40.2, 42.2, 44.1, 44.2,
44.3, 46.1, 49.3, 49.4, 50.1, 52.1, 52.2, 52.4, 53.5, 56.1, 58.1, 58.2, 59.3,
59.4, 60.3, 63.2, 64.1, 65.3, 65.5, 65.8, 69.4, 70,2,

Direct

50.1

Disagree

52.1, 52.2, 60.6

Disapprove

2.3, 37.5,

27

Ensure

1.5, 2.1

Examine

38.1

Explain

5.2

Fix

52.1, 52.2, 63.2,

Inspect

37.2, 49.2, 53.2

Instruct

5.2, 13.1, 27.1, 36.1, 38.2, 39.1, 40.1, 40.3, 48.1, 49.2, 50.1, 51.1, 51.2,
52.2, 52.4, 53.2, 58.1, 58.2, 59.4, 63.4,

Investigate

63.2

Issue

6.3, 7.1, 20.1, 48.1, 48.3, 49.3, 52.4, 59.5, 60.10

Intend

52.2

Measure

38.1, 56.1,

Modify

60.4

Nominate

59.1

Notice

41.1, 46.1, 56.1, 67.1

Notify

17.1, 20.3, 30.3, 31.2, 36.5, 37.4, 38.2, 39.2, 40.2, 42.2, 44.1, 44.3, 46.1,
48.1, 49.3, 49.4, 50.1, 52.1, 52.2, 52.4, 53.5, 58.1, 64.1, 65.3, 65.5, 65.8,
69.4, 70.2

Object

16.2, 37.4

Obtain

2.1

Omit

60.4

Opinion

16.2, 30.3, 39.1, 40.1, 46.1, 48.1 49.3, 49.4, 51.1, 52.1, 52.2, 52.4, 60.3,
63,1, 64.1

Permission

40.3,

Prepare

56.1

28

Prescribe

35.1, 60.1

Reduce

60.4

Refer

63.2

Reject

37.4

Request

14.2, 31.2, 37.4,

Require

14.1, 14.3, 16.2, 17.1, 18.1, 19.1, 20.3, 31.1, 35.1, 36.1, 36.4, 53.3, 56.1,
65.3

Review

44.3, 56.1

Satisfy

13.1, 17.1, 20.2, 33.1, 36.4, 48.1, 48.2, 49.2, 52.4, 53.5, 59.5, 62.1

Select

36.1, 59.1

Sign

52.4, 62.1

Specify

48.1

Test

37.2

Vary

51.1, 56.1,

Verify

53.4, 60.6

Warn

63.1

While

63.1

6.7 The Engineers Representative

6.7.1 The Engineers Representative is responsible to the Engineer to watch and supervise
the construction and completion of the Works. He has no authority to relieve the Contractor
of any of his duties or obligations under the Contract. He may not order any work involving
delay or extra payment by the Employer unless this is expressly delegated to him.
6.7.2 The Engineers Representative is responsible to the Engineer to watch and supervise
the construction and completion of the Works. He has no authority to relieve the contractor

29

of any of his duties or obligation under the Contract. He may not order any work involving
delay or extra payment by the Employer unless this is expressly delegated to him.
6.7.3 The Engineer may delegate to the Engineers Representative or to any other person
responsible to the Engineer any of the duties or authorities vested in the Engineer with the
exception of Clauses 41, 44, 48, 62m 65, 67 and 69. (This is stated in the Guide to Use of
FIDIC Conditions of Contract for Civil Engineering Construction). Any such delegation must
be in writing and does not come into effect until received by the Contractor.
6.8 The Resident Engineer
6.8.1 There must be a distinction made between the ER and RE. The Resident Engineer
is a title bestowed on an individual by the firm of consultants with the blessing of the client.
The title has no contractual significance. There may or may not be a Resident Engineer on
site who may or may not be the Engineers Representative.
6.8.2 The consultants appointed for the supervision of the works executed by the civil
contractors are, inter alia, required to discharge the following duties. It may be seen
whether the duties are being discharged properly.

They must perform the services and carry out their obligations with due diligence,
efficiency and economy, in accordance with generally accepted professional
techniques and practices, observe sound management practices and employ
appropriate advanced technology and safe methods.

During the term of the contract, they should not indulge in any business or
professional activities which would conflict with the activities assigned to them under
the contract; or after the termination of this contract, such other activities as may be
specified in the Special Conditions of the Contract (SC).

They must take out and maintain, at their own cost, but on the terms and conditions
approved by the client, insurance against the risks, and for the coverage, as shall be
specified in the SC;

At the clients request, they must provide evidence to the client showing that such
insurance has been taken out and maintained and that the current premia have
been paid.

They must give notice to the contractor of any defects before the end of the defects
liability period, which begins at completion and is defined in the contract data.

30

They must extend the completion date if a compensation event occurs or a variation
is ordered, which makes it impossible for completion to be achieved by the
completion date.

They must check the contractors work and notify the contractor of any defects that
are found.

They must obtain the clients prior approval in writing before taking any of the
following actions:

Entering into a subcontract for the performance of any part of the services,

They must submit to the client, the reports and documents specified in SC in the
form, numbers, and within the periods set forth therein.

If the client finds that any of the personnel has committed serious misconduct or has
been charged with having committed a criminal action, or has reasonable cause to
be dissatisfied with the performance of any of the personnel, then the consultants
must, at the clients written request, specifying the grounds thereof, provide as a
replacement, persons with qualifications and experience acceptable to the client.

6.9 Other terms and conditions applicable to supervision consultants are as follows:

They must not accept, for their own benefit, any trade commission, discount, or
similar payment in connection with activities pursuant to the contract under their
supervision or to the services or in the discharge of their obligations under the
contract.

During the term of the contract and after its termination, the consultants are
disqualified from providing goods, works, or services other those stipulated, for any
project resulting from or closely related to the services.

All plans, drawings, specifications, designs, reports, and other documents and
software submitted by the consultants in accordance with SC shall become and
remain the property of the client.

The consultants shall have no claim for additional costs arising out of or incidental to
any removal and/or replacement of personnel.

31

The consultants total remuneration shall not exceed the contract price and shall be
a fixed lump sum including all staff costs, sub consultants costs, printing,
communications, travel, accommodation, and the like, and all other costs incurred
by the consultant in carrying out the services described in SC.

6.10

The Contractors Responsibilities: The Contractors major responsibilities are

listed

The Contractors primary obligations are contained in Clauses 7. 8. 11, 12, 13, 14,
15, 16, 17, 19, 20, 21, 22, 23, 34, 36, 41 and 43.

Construct and complete the Works, so far as it is physically and legally possible,
within the time for completion as contemplated in the contract.

Provide all labour and materials Contractors Equipment Temporary Works transport
as is specified in or reasonably to be inferred from the Contract.

To be responsible for the design or specification of the Permanent Works only as

may be provided in the Contract, in which he shall exercise all reasonable skill care
and diligence.

Take full responsibility for the adequacy stability and safety of all operations and
methods of construction, maintaining the Site in an orderly and safe state, providing
and maintaining the Site in an orderly and safe state, providing and maintaining all
lights, guards, fencing, warning signs and watching.

To be responsible for the interpretation of the site investigations and hydrological

data provided by the Employer, to have inspected and examined the site and
satisfied himself of the correctness and sufficiency of the rates and prices to cover
all his obligations under the Contract.

Provide a programme showing the order in which he proposes to carry out the
Works to ensure completion within the specified times and method statements
showing how the Works will be carried out.

Provide adequately qualified superintendence for the construction and maintenance

of the Works.

32

To be responsible for the true and proper setting out of the Works, and the provision
of all necessary equipment and labour.

To take care of the Works and the materials, plant and equipment for incorporation
into the permanent Works, from the Commencement Due to the date of issue of the
Certificate of Substantial Completion, except for outstanding works.

Provide securities, indemnities and insurances in a form acceptable to the Employer.

All materials and workmanship to comply with the requirements of the Contract.

To commence the Works as soon as is reasonably practicable after the Works

Commencement Date ad proceed with due expedition and without delay.

Substantially complete the Works within the time or times prescribed in the Contract.

After substantial completion to complete the works and execute any outstanding
work and remedy defects.

Notify the Employer whenever an event occurs which is likely to increase the cost of
the work, or time for completion.

6.11 The Contractors Agent

6.11.1 Clause 15(2) requires the Contractor to nominate a competent and authorized agent
or representative, who has to be approved in writing by the Engineer, to be full time on site,
to be fully responsible for the superintendence and safety of the Works and to receive
instructions from the Engineer or Engineers Representative.
6.11.1 He also has responsibilities to the Contractor to make a profile, which may at times
cause a conflict of interest with regard to quality of workmanship and rate of progress.

33

CHAPTER VII
Preparation of Contract Documents and Tender Evaluation
7.1 NHAI has entered into various types of contracts for execution of NHDP as given below:

For preparation of DPR

For construction of the highways (civil contracts)

For supervision of the construction (Supervision Consultants)1

For construction of highways under BOT system

For construction of highways under Annuity system

For maintenance of the completed highways

For tolling the completed stretches

7.2 Steps in the Procurement of Contract for Civil Works

i.

Press Notification for Pre-Qualification of Contractors & Enter PQ Document on

www.nhai.org

ii. Invitation to Contractors to Pre-Qualify

iii.
iv.

Submission of PQ Applications
Pre-Qualification of Contractors

re-qualification is subject to fulfillment of the following conditions:

Eligibility

Litigation History

Financial Capability

Turnover

Equipment Capabilities

The applicant should own or have assured access to the key items of equipment
required for implementation of the project

34

A minimum number of items of the plant and machinery required for the project
are mentioned in bid document

The applicant should give an undertaking to provide all the plant and machinery
required for the project

Personnel Capabilities

The applicant to supply general information on the management structure

of

the firm and to make provision for suitably qualified personnel to fill the key
positions as required during contract implementation

Bid Capacity

The pre-qualified applicants meeting the minimum qualification criteria are

invited for bids

The available bid capacity of the pre-qualified bidders is assessed at the time of
bidding.

The bidders to be eligible for award of work should have the bidding capacity
more than the total estimated cost of the works as indicated in the prequalification document.

The available bid capacity will be calculated as under: Assessed Available Bid
Capacity = (A* N*2-B)

7.2.1 Where A = Maximum value of civil engineering works executed in any one year during
the last five years (updated to current price level) taking into account the completed as well
as works in progress. N = Number of years prescribed for completion of the works for which
bids are invited. B = Value, at 2000-01 price level, of existing commitments and on-going
works to be completed during the period of completion of the works for which bids are
invited.

The statements showing the value of existing commitments and on-going works
as well as the stipulated period of completion remaining for each of the works
listed, should be countersigned by the Engineer in charge, not below the rank of
an Executive Engineer or equivalent or certified by authorized signatory of the
bidder.

For joint ventures, the available bid capacity should be applied for each partner,
to the extent of his proposed participation.

Even if the bidders meet the qualifying criteria, they are liable to be disqualified if
they make misleading or false representations in the forms, statements and
attachments submitted in proof of the qualification requirements: and/or - record

35

of poor performance such as abandoning the works, not properly completing the
contract, inordinate delays in completion, litigation history, or financial failures or
debarring from NHAI works etc.;
-

Construction Experience:
The applicant should provide evidence of successful completion or substantial
completion within the last six years at least one contract pertaining to highways
(road and/or bridge works) airport runway of size at least 40% of the value of
the contract applied for.
-

Joint Ventures:

Joint Venture partners would be limited to three

One partner to be nominated as In - charge during the pre-qualification and bidding

periods and, in the event of a successful bid, during contract execution.

The In-charge to be authorized to incur liabilities and all partners of the JV to be

liable, jointly and severally

Joint Venture Summary

Names of all partners of a joint venture:-

Major Partner

Partner (B)

Partner (C)

Annual Turnover Data (From all sources)

Annual Turnover Data (From Highway Construction alone)

Structure and Organization

The Joint Venture agreement should clearly spell out:

The respective roles,

Responsibilities and

Obligations as well as

The structural operations of the venture agreement

7.3 Issue of Tender (BID) documents to pre-qualified contractors

A BID document generally constitutes following:

Volume I which contains Instructions to Bidders (ITB), conditions of contract, special

conditions

Volume II that contains Technical Specifications

Volume III that contains Form of BID, bill of quantities, schedules, model forms

36


7.4

Volume IV that contains the Drawings

Instructions to tenders:

7.4.1 Clear instructions are required to enable tenderers to complete the documents
correctly and in conformity with the procedures which the Employer has to follow Public
Authorities have to to ensure impartiality and transparency in the tender process and
compliance with tender instructions is essential.
Without going into any detail, the list of items set out below gives an idea of all the issues
that need to be dealt with to achieve a successful tender outcome.
-

listing of the component documents comprising the tender document.

Method of completion of the document

Schedules to be completed by tenderer

Information relating to the site inspection

Alterations to documents and conditions applying to departures and

modification

Remedies applicable in the cases of ambiguities, errors or discrepancies

Stipulations with respect to submission of alternative tenders

Security to be [provided by the successful tenderer tender deposit

Form and delivery of tender/how, when and where

Validity period

Adjudication

Disqualification of tender

Consequences of withdrawal of tender

Acceptance or rejection by the Employer

Sufficiency of tender

Evidence of experience and suitability of the tenderer period for completion

of the works

Foreign exchange risks

Value added tax

Stamp duties/ who pays?

Licences and receipts

Limitations on preliminary and general items

7.5 General Structure of the Document

37

7.5.1 In most engineering contracts the written contract document is normally prepared by
the Employer or his Consulting Engineer. Figure 3 shows the steps involved in the
preparation of contract agreement. Projects are often complex, costly and sometimes
contain higher than normal levels of uncertainty. These circumstances require that
extensive documents are provided in order to define the rights, duties, responsibilities, risks
and obligations of the parties to the contract. The responsibilities of the Engineer who is not
a party to the contract have also to be defined. The contract documentation therefore,
plays a crucial role in the contract and, as such, it should be as comprehensive as possible.
Figure 4 gives an example showing the different documents, which constitute a Contract
Document.

38

39

40

7.5.2

Form of Tender

7.5.2.1 The Form of Tender is the written offer signed by the Tenderer to perform the
contract and states the price for which this will be done. The acceptance by the Employer
of this offer sets up the Contract between the two parties.
7.5.3

General Conditions of Contract (GCC)

7.5.3.1 The GCC provide the legal basis of the contract and are applicable to a multitude of
different contracts. Normally FIDIC conditions of contract are followed on most of the
International Contracts.
7.5.4 Special conditions of contract
7.5.4.1 The Special Conditions of Contract adapt or modify the GCC to meet the specific
requirements of an Employer and/or to cater for any different or unique situation that might
be applicable to a particular project or a particular site. Special Conditions of Contract also
add new conditions which may be considered necessary. As far as status is concerned,
requirements and provisions of the Special Condition of Contract always supersede those
of the General Conditions of Contract.
7.5.5 Standardised Specification
7.5.5.1 Specifications deal with technical and physical matters amongst which are:

Properties of materials to be used in the works

Standards of workmanship
Descriptions of how work items are to be measured for payment purposes and how
they are to be paid for

7.5.5.2 The Standard Specifications are the technical counterpart of the General Conditions
of Contract. The MORTH Standard Specification for Road and Bridge works is such a
document. Linked to the standard specifications in the contract document is the Project
Specification or Special Provisions as it is sometimes called.
7.5.6 Project specification (or special provisions)
7.5.6.1 The Project Specifications is the technical equivalent and fulfills the same function
as its legal counterpart, the Special Conditions of Contract. It adapts and modifies
Standardised Specifications to suit the conditions and requirements of any one particular
project or employee.
7.5.6.2 The Bill of Quantities consists of a schedule of listing the constituent parts of the
works, with the identifying item reference number and description, unit of measure and
estimated quantities against which the contractor will have entered a rate. The individual
quantities and associated rates are extended to give an amount. Where a defined Standard
Method of Measurement is being used and a bill item has not been prepared strictly in
accordance with the Standard Method of Measurement, then the item reference number
must signify this and method of measurement defined in the preamble. Where the
Contractor has to provide general services which have been defined in the Specifications,
but for which there are no individual bill items, then it must be stated in the preamble.

41

7.5.6.3 The bill of quantities is normally divided into sections.

The first section will normally cover General Items or Preliminaries. This would cover:
Conventional requirements: Performance bonds, insurance of the Works and third party
insurance.
Specified requirements:

Accommodation, services, plant, temporary works, (timed and

fixed)
supervision and labour

Method Related Charges:

Contractors accommodation, services, plant,

(Timed and Fixed) temporary works, supervision
labour

Provision Sums:
Day work:

and

Work not yet fully defined, but which the Contractor will
probably be required to carry out.
The Day work Schedule will comprise either Schedules of Day
works (rates and prices) carried out incidental to Contract
Work, issued by the Federation of Civil Engineering
Contractors, with a provision for the Contractors to make
percentage additions/deductions to the labour, plant, materials
and supplementary charges.
or

A list of the various classes of labour, plant and materials for which Day work rates and
prices are to be inserted by the tenderers together with a statement of the conditions under
which the contractor shall be paid.

Prime Cost Items:

The estimated price of work to be carried out by a Nominated

Sub-conductor or supplier. The Contractor is given the
opportunity to add a sum to cover labours., the provision of
access working space, the services and general attendance
labour etc, and a percentage of the Prime Cost item to cover
the Main Contractors profit and overheads.

The remaining Sections cover the measured Works, which will be subject to re-measure.
Certain Items have the wording (Provisional Quantity) included in the Item Description to
warn the Contractor that the quantities may vary considerably, so that he may take it into
account when pricing.
The sub-total of each Section is carried forward to the Grand Summary. A General
Contingency Allowance is normally added to the total of the Part Summaries. This would be
in the form of a percentage of the total of the Part Summaries. It is normal practice to allow
tenderers to insert a lump sum addition or deduction as an adjustment Item. It should be
defined in the Preamble to the Bill of Quantities whether the adjustment amount is a Lump
Sum or a percentage adjustment to be applied to the Contract Price.

42

7.5.7 Drawings
7.5.7.1 It is a very true saying that a picture saves a thousand words. The better the picture
the more words are saved. The drawings, which form part of the contract documentation
should be in sufficient detail to enable a contractor to determine as precisely as possible
what is required of him. From the detail provided he should be able to formulate his
construction plan, prepare his programme and evaluate possible alternative solutions if
these are permitted.
7.5.7.2 The scale of the drawings should always be sufficient to allow the Contractor to read
the text and the dimensions and any other relevant information. One drawing must show
the locality of the works together with all access details.
7.5.7.3 Tender drawings may or may not be construction drawings, but it must be
remembered that any major alteration to a tender drawing is in fact a variation to the
contract. While it is desirable that all designs and plans should be completed before
tenders are called, it is not essential. As long as sufficient details are provided to enable
accurate pricing and planning additional drawings can safely be issued to the Contractor
during the course of the contract without prejudicing his program. This is the norm on major
contracts.
7.5.8 Form of Tender and Appendix to the Tender
7.5.8.1 Appendix to the Tender: Throughout the General Conditions of Contract, reference
is made to certain information that shall be as named in the Tender. These items are
those that will vary or alter from contract to contract or from employer to employer. Such
items include the amount of the security, duration of surety time for completion, amount of
penalty, percentage retention, dispute resolution procedures, insurance requirements.
These items are listed in the Appendix to the tender.
7.5.8.2 Annexure to the Tenders: These papers are attachments to the Form of Tender and
are designed to elicit additional information from the Tenderers. The information is required
(if there has not been a process of pre-qualification) to enable the Employer to assess the
Tenderers competence to execute the work. Almost the attachments could be :
-

Schedule of past Experience

Schedule of Labour and Plant for the project

Provisional Programme of Work for the Contract

Anticipated monthly earnings

Certificate of Attending Site Inspection

Authority for Employer to conduct financial investigations

Board Resolution of authority to sign tender

Alternative tender properties

Joint Venture Agreements

Proposed sub-contractors

43

7.5.9

Pro-forma

7.5.9.1 It is customary to include a typical pro-forma of the Contract Agreement, the Form of
Surety, Tender Bonds, etc.
7.5.10 Notices to tenderers
7.5.10.1 Should it be necessary to clarify any matters during the period of Tender or issue
further information or amendments to the documents, this is achieved through a Notice (or
notices) to tenderers, These are circulated to tenderers. Tenderers have to acknowledge
receipt and they will form part of the Contract.
7.5.11 Other data
7.5.11.1 Frequently, it is necessary to provide additional data to enable the Tenders to gain
a complete picture of the conditions.

The data under this section is essentially of a

technical nature. The type of information which will be provided under the section will
include :
-

Materials and Geotechnical Data

Climatic and Hydrological Data

Borrow Pit locations and volumes

Quarry locations

Mass Haul diagrams

Access limitations

This information is generally bound into a separate volume, which forms part
of the documentation.
7.6 Receipt and Evaluation of tenders
7.6.1 The evaluation of competitive tenders proceeds through three stages
- examination
- evaluation
- post qualification
7.6.2 Examination serves to check that tenders are complete, properly signed,
arithmetically correct and responsive i.e. no deviation from instructions. Examination is a
filter to the subsequent evaluation exercise. Only those tenders that are substantially

44

responsive (conforming to tender documents) are evaluated. The non-responsive tenders

are rejected.
7.6.3 Evaluation serves to determine which is the most advantageous tender, considering
price and other relevant factors referred to in the tender documents.
7.6.3.1 Evaluation Parameters

Financial

Average annual turnover, bid capacity, liquid assets

Technical

Personnel Organization, plant and equipment

Experience in Similar Works Track Record

Satisfactory timely completion & litigation

7.6.3.2 Evaluation of Tenders

Bid Security, Completeness and signing, correction of computational errors.

Technical Security

Substantial Responsiveness
A tender, which confirms to all the terms, conditions and specifications of the tender
documents, without material deviation is treated as Substantially Responsive. Only
substantially responsive bids are compared for award of work to the lowest
evaluated bidder

7.6.3.3 The following further aspects may be examined in audit for possible comments:

Contract data

Pre-qualification

7.6.3.4 The Joint Venture agreement should clearly spell out:

The respective roles,

Responsibilities and

Obligations as well as the structural operations of the venture agreement

45

7.7 Conditions of Contract:

As per the standard bidding document duly modified as per local conditions

Bid security in the form and amount indicated

Successful bidder to provide performance security

An interest free mobilization advance amounting to 10% of the accepted bid price
against Bank Guarantee

Additional advance up to 5% of the accepted bid price for procurement of equipment

Secured Advance @ 75% of the value of the non-perishable construction material

brought to the site to a reasonable extent for incorporation in the permanent works

Running payment to the contractor to be made monthly

Contract allows for price variation of labour, materials and POL

Contractor not to subcontract any element of works to sub-contractors without prior

written consent of the Employer / Engineer

The contractor not permitted to subcontract more than fifty per cent of the value of
the works, including those to specialized subcontractors

The contractors not permitted to quote on the basis of their alternative design

All design and works to conform to:

The specifications, standards and codes of Indian Roads Congress,

Specifications of MoRT&H

Modifications made in the bid document

Other relevant Indian Standards or equivalent standards mentioned

Contractors entitled to payment of bonus if the works completed before prescribed

period of completion

Similarly, contractor liable for liquidated damages if the contractor does not complete
the work by prescribed time

The works will be supervised and monitored by NHAI/ SPV

Consultants appointed to assist NHAI/ SPV in supervision of implementation of the

contracts

Association with the Designer or Proposed Supervising Engineer

In case of disputes, the same shall be settled by the Dispute Review

Expert appointed by either the Authority or Indian Road Council
a.

Financial requirements

b.

Technical requirements

46

c.

Equipment requirements

d.

Experience requirements

e.

Litigation information

7.8. Award and execution of contract:

7.18.1 The following are the terms and conditions pertaining to the award and execution of
contracts:

The contract shall be for the whole work as described

The bidder shall fill in both rates and prices.

Items for which no rate or price is entered by the bidder will not be paid for by
the NHAI when executed and shall be deemed covered by the other rates and
prices in the Bill of Quantities (BOQ).

All duties, taxes, and other levies payable by the contractor under the contract,
or for any other cause shall be included in the rates, prices and total bid price
submitted by the bidder.

The rates and prices quoted by the bidder are subject to adjustment during the
performance of the contract in accordance with the provisions of price
adjustment clause of the Conditions of Contract (For contracts more than 12
months period).

The unit rates and the prices shall be quoted by the bidder entirely in Indian
rupees.

Bids shall remain valid for a period not less than 120 days after the deadline
date for bid submission. A bid valid for a shorter period shall be rejected by NHAI
as non-responsive.

The bidder shall furnish, as part of his bid, a bid security in the amount as shown
in the Invitation for Bid (IFB).

Within 21 days of receipt of the Letter of Acceptance (LoA), the successful

bidder shall deliver to NHAI a performance security in any of the forms
prescribed for an amount equivalent to 5% of the contract price plus additional
security.

The contractor may sub-contract any portion of work, upto a limit specified in
Contract Data, with the approval of the Engineer but may not assign the contract
without the approval of NHAI in writing.

47

The contract shall employ the key personnel named in the Schedule of Key
Personnel as referred to in the Contract Data to carry out the functions stated in
the schedule or other personnel approved by the Engineer.

The contractor shall provide, in the joint names of NHAI and the contractor,
insurance cover from the start date to the end of the defects liability period.

The contractor shall carry out all instructions of the Engineer pertaining to works.

The contractor shall permit NHAI to inspect the contractors accounts and
records relating to the performance of the contractor and have them audited by
auditors appointed by the NHAI, if so required by NHAI.

Within the time stated in the Contract Data, the contractor should submit to the
Engineer

for

approval,

programme

showing

the

general

methods,

arrangements, order and timing for all the activities in the works, along with
monthly cash flow forecast.

The contractor shall submit to the Engineer, for approval, an updated

programme at intervals no longer than the period stated in the Contract Data.

If the Engineer instructs the contractor to carry out a test not specified in the
specifications to check whether any work has a defect and the test shows that it
does, the contractor shall pay for the test and any samples.

Every time notice of a defect is given, the contractor shall correct the notified
defect within the length of time specified by the Engineers notice.

The contractor shall pay liquidated damages to NHAI at the rate stated in the
Data for each day that the completion date is later than the completion date (for
the whole of the works or the milestone as stated in the Contract Data).

If the contractor achieves completion of the whole of the works prior to the
completion date prescribed in contract data, NHAI shall pay to the contractor, a
sum stated in the Contract Data as bonus for every completed month which shall
elapse between the date of completion of all items of works as stipulated in the
contract, including variations ordered by the Engineer and the time prescribed.

Performance security (including additional security for unbalanced bids) shall be

provided to NHAI no later than the date specified in the LoA and shall be issued
in an amount and form and by a bank or surety acceptable to NHAI, and
denominated in Indian Rupees. The performance security shall be valid until a
date 28 days from the date of expiry of defects liability period and the additional
security for unbalanced bids shall be valid until a date 28 days from the date of
issue of the certificate of completion.

48

Loss or damage to the works or materials to be incorporated in the works

between the start date and the end of the defects correction periods shall be
remedied by the contractor at the contractors cost if the loss or damage arises
from the contractors acts or omissions.

The bidder shall furnish, as part of his bid, a bid security in the amount as shown
in the IFB document for this particular work.

Any bid not accompanied by an acceptable bid security shall be rejected by the
NHAI as non-responsive.

The bid security shall be forfeited

-

if the bidder withdraws the bid after bid opening during the period of bid
validity

If the bidder does not accept the correction of the bid price, pursuant to of
the condition of contract

49

CHAPTER VIII
COMMENCEMENT OF WORKS AND CONTRACT MANAGEMENT
8.1 After signing the Contract and issue of Letter of Acceptance, the following steps become
mandatory:
(a)

The Engineer instructs the Contractor to Commence the Works.

(b)

The Contractor, within the stipulated time, submits to the Engineer for his
consent:
(i) Programme in such form and detail as the Engineer reasonably prescribes; (ii)

methods statement which the Contractor proposes to adopt for execution of the Works,
and (iii) Quality Assurance Plan only General Procedures at this stage.
(c)

The employer provides to the Contractor total or partial possession of site.

8.2 Programme and Milestones

-

Engineer in consultation with contractor schedules the construction activities

as per Clause 14 programme

Agree dates for commencement and possession of site.

Provisional dates for provision of further information by Engineer like

drawings, schedule of various activities related to programme, nominated
subcontractor etc.

Agreement with ER/RE for measurement, correspondence, progress

meetings and reports etc

8.3 Quality Assurance

50

8.3.1 Quality Assurance should be put in place to : (i) give confidence that performance at
all levels and stages of construction is being managed appropriately, and (ii) provide
documented evidence that all specified requirements are met.

This will be achieved

through a structured arrangement comprising the following elements :

(a) Quality Assurance Manual (QAM) of the Employer

QAM or NHAI spells out the quality policy of the Authority, the various duties of
the contractors, the requirements of quality assurance as per ISO-9000, working
out of quality index, reference to IRC guidelines, use of standard forms for
different objectives etc. This will set the minimum benchmark.
(b)

Supervision Manual of the Supervision Consultant

This will be job specific and elaboration of QAM as applicable to that job. It will
embrace the consultants arrangement for quality assurance, his internal quality
audits, the various approvals to be obtained from time to time for different items,
non-conforming procedures, detailed pro-forma for documentation etc.
(c)

Quality Management Plan (QMP) of the Contractor

QPM to be submitted by contractor for the subject work will detail his own quality
control measures and quality organization, both on and off the site, detailed
methodology (to be got approved from the Engineer) for different items,
describing various processes, controls, equipments to be used, calibration, site
laboratory, non-conforming procedures, handling and storage, and such other site
requirements to ensure quality product.
(d)

Quality Audit

It will be an independent examination to determine whether quality activities and

related result comply with planned arrangements and whether these
arrangements are implemented effectively and are suitable to achieve
objectives.
8.3.2

Indian Roads Congress has published two guidelines, which can be referred to :

(a) IRC: SP: 57-2000 Guidelines on Quality Systems for Road

51

(b) IRC :SP:47-1998 Guidelines on Quality Systems for Road Bridges (Plain,
Reinforced, Pre-stressed and Composite Concrete)
8.4 Quality Management Plan
8.4.1 General
8.4.1.1 Quality Management Plan to be established by the Contractor should give written
description of (i) site management structure and the particular responsibility of each
individual ()ii) appropriate general procedures (iii) specific work procedures (iv) individual
quality plans for important packages of work, listing quality requirements including any
inspection tests or hold points. The Employer should see that the Plan is effective.
8.4.2 Design
8.4.2.1 Where contractor-designed items and temporary works design are required,
appropriate procedures will be written. These should cover design criteria, the process of
design, and design checks. The procedures will be structured to comply with relevant
standards and codes of practice.
8.4.3 Inspection, Measuring and Test Equipment
8.4.3.1 The contractor should control, calibrate and maintain all his inspection surveying
and test equipment.

He should ensure that such equipment employed by

his sub-

contractors is, like-wise adequately controlled.

8.4.4

Construction Control and Inspection

8.4.4.1 Control of quality will be achieved by proper implementation of procedures, method

statements and works instructions. The contractors quality programme shall provide for
inspection to be carried out during construction on all the important items which cannot be
checked at a later stage. Checklists shall be provided for such inspections.
8.4.5

Workmanship

8.4.5.1 Workmanship shall be as per approved methodology and established standards and
codes; and where standards are not available, then as per approved samples

52

8.4.6 Purchasing
8.4.6.1 The Contractor shall establish and maintain documented procedures to ensure that
(i) all purchased products conform to specified requirements; (ii) they are handled, stored,
combined with other products, installed and used in accordance with the manufacturers
recommendations and (iii) the materials are compatible with the other products and works.

8.4.7

Product Identification and traceability

8.4.7.1 The contractor shall maintain data and documentation that allow product
identification and traceability during all stages of production, delivery and construction. The
contractor shall identify all samples and test results with the field locations to which they
relate. Work under the Contract shall be subdivided into lots or discrete work areas and
controlled in accordance with the Engineers requirements.
8.4.8

Process Control

8.4.8.1 The contractor shall identify all factors affecting the quality of the product, and plan
the production, installation and processes to ensure that these are carried out under
controlled conditions. The Contractor shall document the decisions on the requirement and
content of the Technical Procedures or Process Control Plans.
8.4.9

Inspection and Testing

8.4.9.1 The Contractor shall establish inspection and test plans for all manufacturing and
construction activities

in order to verify that the specified requirements are met.

The

sequence of all activities identified in the Inspection and Test Plans shall be concisely
described in the process control documentation or by a process flow diagram.
8.4.9.2 The Engineer shall be given access, in connection with or through the Contractor, to
all laboratories and other facilities used for quality control inspections and tests.

The

Contractor shall establish and maintain a system to ensure and demonstrate that all

53

products or parts of products requiring inspection and/ or testing are so inspected and /or
tested.
8.4.9.3 Frequency of testing shall be appropriate to verify conformity and shall not be less
than stated in the specifications. Where no minimum frequency of inspection or testing is
stated in the Specification, the Contractor shall nominate appropriate frequencies in the
Inspection and Test Plan (s) , to be approved by the Engineer.

8.4.10 Inspection and Test Status

8.4.10.1 Records shall be maintained to identify inspection and test status of all works
under the Contract.
8.4.11 Control of Non-conforming Product
8.4.11.1 The Contractor shall establish an appropriate method for identification and control
of all occasions where the product or service fails to pass any inspection or test in
accordance with the defined acceptance criteria.
8.4.11.2 Where conformity cannot be achieved either by reworking or repair, the Contractor
shall notify the Engineer of the non-conformity and record it in an appropriate register. The
non conformance report will indicate the proposed disposition, calculations of any
deductions, and when the disposition is to be undertaken.
8.4.11.3 If surveillance or an audit by the Engineer indicates a non-conforming product that
has not been addressed by the non-conformance report by the contractor, the Engineer will
issue a non-conforming product notification.
8.4.11.4 A non-conforming product shall neither be covered up nor be further built in unless
a disposition has been accepted by the Engineer and implemented by the contractor.
8.4.12 Preventive and Corrective Action
8.4.12.1 The Contractor shall review, analyse and record the cause of all detected nonconformities and develop corrective action to eliminate the cause of non-conformities. This

54

shall include both the determination of immediate action to prevent recurrence, as well as
long-term corrective action.
8.4.13 Control of Quality Record.
8.4.13.1 The Contractor shall establish and maintain documented procedures for
identification, collection, indexing, accessing, filing, storage, maintenance and disposition of
quality records. Quality records shall be maintained to demonstrate conformance to the
required quality and the effective operation of the quality system.

In case of non-

conformities, records of repair, rectification, retesting, inspection and acceptance shall be

kept.
8.4.13.2 The records shall be so stored and maintained that they are easily retrievable, and
are in appropriate facilities/ environment to minimize deterioration or damage, and to
prevent loss.
8.4.13.3 The Contractor shall make the quality records available to the Engineer at all
reasonable times, and where requested by the latter, permit him to make copies.
8.5

Work Programme

8.5.1 The Contractor will, within the specified period, prepare construction programme for
submission to and approval of the Engineer. The programme should show the proposed
order of work and dates for commencement and completion of various stages.

The

programme should include :

(a)

Bar Chart showing proposed month-wise execution of quantities of principal

items of work.

(b)

Critical Path Method analysis of various activities from start to completion.

The programme shall be :

(i)

complete (i.e. include all activities);

(ii)

accurate (activities are properly sequenced);

(iii)

based on the resources and equipment deployed and their efficiency;

(iv)

related to the site conditions;

55

(v)

able to show realistic reductions of output of relevant activites during the

monsoon period;

(vi)

not structured in a manner as to exploit any pending action on the part of

the Employer, ad

(vii)

designed to provide for periodic updating.

8.6 Revised Programme

8.6.1 If the progress of work is falling significantly behind schedule or the Contractor is not
following the programme, the Contractor shall produce, at the request of the Engineer, a
revised programme showing modifications to ensure completion of the Works within the
Time for Completion.

Impliedly, the revised programme will contain all the supporting

details of revised resources. If the Contractor fails to do so, the Engineer may withhold the
amount stated in the Contract Data for such default from the next interim payment
certificate and continue to withhold the payment until the next payment after the date on
which the overdue programme has been submitted.
8.7 Method Statement
8.7.1 The Contractor shall provide a general description of the arrangements and methods
he proposes to adopt for the execution of the works for approval of Engineer before hand.
These would include environment management plan during construction stage and traffic
diversion/ opening of roads as temporary measures.
8.7.2 These methods statement shall be written in the form of various steps in the required
sequence, supplemented by sketches where necessary, and shall be self explanatory. No
change shall be made by the Contractor

from the approved procedures without first

obtaining the approval of the Engineer to the proposed changes. List of principal activities
and their expected form of detailing are given at Annexure H.
8.7.3 The consent of the Engineer to the Programme and Methods Statement does not
relieve the Contractor of his contractual responsibilities.

56

8.8 Quarries and Borrow Areas

8.8.1 The Contractor will obtain approval of the Engineer for each quarry and borrow area
to be used in the Project prior to commencement of quarrying and /or borrow area
excavation activities. The Engineer should consider, inter alia, the following aspects before
granting approval.

The contractor has legal approval by the owner to excavate/ remove materials from
the proposed quarry/borrow area;

Any statutory permission required from the Government has been obtained.

The proposed materials meet specification requirements;

The Contractor submits an acceptable Environment Management Plan for

development, use and closing down of the proposed quarry/borrow area, together
with any other approvals or documents that may be required from the ministry of
Environment and Forests or other concerned authorities, and

The Contractor gives an undertaking that he will pay all royalty and other levies /
dues.

Based on the proposal of the Contractor, and receipt of site inspection report of the
Engineers team, the Engineer will; (i) approve the proposed quarry/borrow area, or
(ii) give approval subject one or more required changes, or (iii ask for a revised
proposal, giving details of required changes, and additional requirements, or (iv)
reject the proposed quarry / borrow area.

8.9 Materials
8.9.1 All materials (whether natural, processed, manufactured, or designed) proposed by
the Contractor to be used on the Works shall be first got approved from the Engineer to
comply with the requirements of Specifications. The specifications of the materials to be
used in different layers of road pavement, standard test procedures, frequency of tests etc
are given at Appendix I.
8.9.2 Approval of natural materials will be done first by approving the quarry or borrow area,
and then on the basis of test results meeting the specifications and trial results.
8.9.3 Approval of processed materials will be done after they meet the test results, and
have evidence of satisfactory production and storage conditions.

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8.9.4 Approval of manufactured materials will be based on submission of appropriate test

results by the manufacturers, and then on positive results being obtained for acceptance.
8.9.5 Approval of the designed materials (like, concrete mix, bituminous mix) will be done
stage-wise, involving approval of the source of quarries; the individual processed material;
laboratory-based mix design; plant mix design; trial section and finally, successful laying in
accordance with the approved methodology, conformance to quality control requirements
and tests as per provisions of the Specifications.
8.9.6 Following initial approval, the quarries, borrow areas and materials shall be
continuous monitored by the Engineer to ensure continued adherence with he design
specifications. If and when the materials fall outside the acceptance criteria the situation
may call for : (i) changes in the quarries./ borrow areas; (ii) modifications of the process and
/or design in the case of processed or designed materials, and (iii) change of source of
procurement in the case of manufactured materials.
8.10 Compliance with Laws
8.10.1 In carrying out the Contract, the Employer and the Contractor, in their respective
areas of performance, shall comply with the provisions of all statutes regulations and
bylaws of the Union Government, the State Government. Local Bodies and other public
authorities that may be applicable to the Contract Works.

A list of existing Acts and

Regulations which are relevant to road construction is given at Annexure I.

8.10.2 The Contractor shall give all notices and obtain all other necessary permits and
approvals as may be required for the construction of the Contract works and shall pay for al
such permits and approvals.
8.10.3 The Engineer will check the above and ensure compliance. The Project Director will
test check and monitor.
8.11 Subcontracting
8.11.1 The Works Contract provides for the Contractor to get specified works executed from
subcontractors included in the Pre-qualification application, or later on consented to by the
Employer, notwithstanding the fact that responsibility for all subcontract work rests with the

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prime contractor. Subcontracting will generally be for the specialized items of work, such as
reinforced earth retaining walls, pre-stressing works, etc. Procurement of material, hire of
equipment or engagement of labour will not subcontracting.

The total value of

subcontracting work will not exceed 25% of the Contract Price.

8.11.2 Subcontracting by the Contractor without the approval of the Employer shall be a
breach of Contract. The following procedure shall be followed in giving approval of
subcontractors :
-

Subcontractor Assessment Procedures and Guidelines :

i)

Subcontractor has got to be approved before being allowed to come to

the site.

ii)

The Contractor should promptly intimate to the Engineer about the

subcontractor moving to the site.

The Engineer shall provide to the

Employer an assessment of the subcontracting proposal, nothing of

location, types and value (and percentage) of the works, the likely
mobilization period required to accomplish these works, and a review of
the subcontractors qualification with regard to his proposed works. In
essence, the assessment would be similar to that conducted for the
Contractor during pre-qualification, except that only the qualifications
relevant to the designated works to be subcontracted are to be
considered.
iii)

In case the Engineer discovers an unapproved subcontractor working at

the site, he shall notify the Contractor, in writing of the break of Contract.
A copy fo this correspondence shall be forwarded to the Employer.

iv)

Upon receipt of this notice from the Engineer, the Contractor is to

immediately take steps to remove the subcontractor from the site.
Failure by the Contractor to do so will constitute breach of Contract on
his part.

8.12 Responsibilities
8.12.1 If a Contractor persists with the engagement of a non-approved subcontractor,
despite a notice from the Engineer for the removal, then the work done by such a
subcontractor shall not

qualify for payment, besides its constituting, as mentioned

above, a breach of Contract, and non-compliance of directions on the part of the Contractor,
entailing action as provided in the Contract.

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8.13. Delays and Extension of Time

8.13.1 Contractor may experience delay or disruption due to his own actions or inaction,
those of his subcontractor or other suppliers, those of the Employer or the Engineer, or
other causes. Such delays expose the non-performing party to various sanctions under the
Contract. These sanctions include extension of time, damages or determination of the
Contract,
8.13.2 While examining the request of the Contractor for extension of time, the Engineer
shall consider all the circumstances and see whether :
(i) Force Majure applies viz. acts of God, adverse weather, floods etc.
(ii)

Delay is compensable (the Employer delaying payments, wanting to

make changes
altering the sequence of construction; the Engineer not giving timely
decisions, or

there being unforeseen site conditions etc.), which affords the

Contractor both additional time and money.

(iii) Delay is inexcusable (Contractors own faults), which puts the full burden
of responsibility on the Contractor.
8.13.3 To determine the nature of delay, its consequences and the kind of relief available to
the Contractor, the source of event, the cause and factors surrounding the delay will need
to be examined. Once the delay is categorized, it should then be determined not only
whether the Contractor is eligible for time extension and/ or monetary relief but also whether
sanctions, such as liquidated damages or default determination, can be imposed on the
Contractor.
8.14 Delay Administration
8.14.1 A system should be set up whereby all delay, alleged delay, notice of delay,
variations that conceivably cause delay, hindrances and obstructions, lack of possession of
site etc. Are recorded.
Extension of Time (EOT)
(a)

As the Contract Progresses

EOT must not be left to the end; it should be dealt with promptly during the progress of
the contract. For ongoing critical delay, there are provisions for interim EOT to be

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awarded. While granting Extension of Time, the cost of prolongation should be duly
considered, besides examination of the following:

Is there a delay to a particular work front/ activity?

What/ who caused the delay? Is it eligible for consideration of extension of time?

Does the cause reasonably justify an extension of time? To qualify for an extension
of time, the delay must affect an operation critical to the Contractors completion
time.

8.14.2 Decision should be taken as the work progresses, depending on developing events
and circumstances, without waiting for substantial completion. If the events are such as
fairly entitle the Contractor to an extension of time for completion of Works, or any Section
or part thereof, the Engineer

shall, after due consultation with the Employer and the

Contractor, determine the amount of such extension and notify the Contractor accordingly,
with a copy to the Employer.
8.15 Extension of Time (Final)
8.15.1 Once the final stage of substantial completion is reached (final Taking-Over
Certificate issued), BOT will be reviewed. The Contractor puts in his final submission, with
full details and particulars. The Engineer should examine it form preliminary conclusions,
hold consultations with Contractor ad Employer and then submit an assessment report with
recommendations, to the Employer.
8.16 Action by the Employer
8.16.1 The Employer shall examine the recommendations for the Engineer, call for such
information from the Engineer and the Project Director as considered necessary, satisfy
himself that the recommendation is not intended to extend the supervision services, and
convey final decision promptly.
8.17 Concurrent Delays
8.17.1 Concurrent delays may occur when two or more events responsible for delay overlap
each other. The delays may be attributable to the Employer or the Contractor or none, and
fall in the categories of excusable, compensable, or inexcusable.

The eligibility for

extension of time should be determined by plotting on the critical path each concurrent

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delay. Employer should see that the concurrent delays do not result in unnecessary extra
extension of time.
8.18 Liquidated Damages (LD)
8.18.1 The rate of Liquidated Damages is stipulated in the Contract for each day of delay
caused, with a maximum amount not exceeding 10%. The Employer may, without prejudice
to any other method of recovery, deduct the amount of such damages from any money due
or to become due to the contractor. The payment or deductions shall not release the
Contractor from his obligation to complete the work or any other of his obligations and
liabilities under the Contract.
8.18.2 There may be situations where completion is not achieved within the stipulated time
because of delays attributable to the Employer. These may be denial of access to the
whole or part of the site; failure to provide design and drawings at the stage when these
were required by the contractor, delay in giving timely instructions; refusal or denial to pay
due and legitimate payments; holding up amounts on account of non-sanctioning of rates of
extra/ varied items; failure to abide by the contractual duties etc. In such situations the
Employer stands to lose the right to recover any amount by way of liquidated damages.
8.19 Time at Large
8.19.1 Time becomes at large when the obligation to complete within the specified time for
completion of a contract is lost. Before the expiry of originally stipulated date of completion,
the Employer should extend the currency of the Agreement and set a new time limit for
completion and make the extended time as essence of the contract, so that his right to
recover damages is not extinguished.
8.20 Payments and Certificates
8.20.1 The basis of all progress payments is a determination in the field of actual quantities
of work that have been accomplished as stated by the contractor in his request.
8.21 Interim Payment Certificates (IPC)

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8.21.1 As a prearranged date each month, the Contractor will submit a statement in such
form as the Engineer from time to time prescribe, showing the amounts to which the
Contractor considers himself entitled up to the end of the month.
8.21.2 The Engineers tasks in checking the progress payment submission will include the
following:

Quantity of work actually completed as of agreed cut-off date

Field measurements of quantities of work completed or claimed

Inventory of equipment and materials delivered to site but not yet used in the work
(materials on site)

Review of claim for extra work.

Check of retention amount and other recoveries

Review of variations whether these have been approved by Employer. If not,

Provisional rates to be used until final valuation sanctioned by Employer.

Price Adjustments

8.21.3 The Engineer will not be bound to certify any payment if the net amount thereof, after
all retentions and deductions, is less than the minimum amount of interim payment
certificate, if any, specified in the Contract Data.
8.21.4 Interim monthly payments will be based on Interim Payment Certificate processed by
the Engineering following bills filed by the contractor.

Resident Engineer (or Assistant

Research Engineer, if one has been appointed) will check 100% measurements. Whenever
RE check measures, he shall inform the Contractor and the PD, in advance. The Project
Director shall himself random check independently at least 2% of the measurements.
8.21.4 The Engineer will send the Interim Payment Certificate to the Project Director for
approval and subsequent payment. Payments will be act of (i) retentions and recovery of
advances at the rates prescribed in the Contract (ioi) statutory deduction (works tax, income
tax, others).
8.22 Final Payment Certificate
8.22.1 The Final Payment Certificate shall be issued as required under the Conditions of
Contract. This shall be done when, on completion of the Defects Liability Period, the
Contractor has submitted the following ;
i)

final statement of the value of work done by him and any further sums
due to him, and

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ii)

Written Discharge conforming that the total of the Final Statement

represents full and final settlement of all moneys due to him.

8.23 Variations:
8.23.1 Variation means : (a) increase or decrease in the quantity of any work included in the
Contract, (b) omission of any such work, but not if the omitted work is to be carried out by
the employer by another contractor : (c) change in the character or quality or kind of any
such work ; (d) change in the levels, lines, position and dimensions of any part of the Works
(e) additional work of any kind necessary for the completion of the Works, and (f) change of
the specified sequence or timing of construction of any part of the Works.
8.23.2 The variation may result in additional or reduced payments to the Contractor or there
may be no price change at all.
- It is important to have a written procedure for the issuing of a variation
instruction. Once it is decided that a variation is required, the instruction should be
issued promptly to minimize any adverse effect on the overall works.
- Before a variation can be instructed to the Contractor, prior approval from the
Employer

is needed, except for certain situations as may be specified in Special

Conditions of the Contract.

- The rate / price/ valuation does not have to be agreed with the Contractor,
although this is preferable.
- Any change in Approval for construction drawings should be regarded as a
variation and its full financial implications worked out at that very stage for
submission to the appropriate authority for approval.
-

In case there are changes in ground levels from those shown in the

approved drawings, they shall be agreed in writing, jointly by the Contractor,

Engineer and PD. Also, PD will send a report to the CGM for considering whether
any action lies against the design consultant for non-conformity of the levels as
shown by him in the drawings and those actually obtaining.
8.24 Keeping track of Variations
8.24.1 Variations Register shall be used to administer and keep track of the status of a
variation. This shall cover the following important steps:
(i)

Employers prior approval of the issue of the variation instruction.

64

(ii)

Engineers instruction to the Contractor (this letter creates the variation).

Particular details of a variation are not entered into the Variations Register until the
day the instruction is issued. Prior to that it is only a proposed variation and is
tracked/ administered in a separate register.
(iii)

The variation instruction letter must be given a unique variation

number and details entered into the variation register.
(iv)

The register is updated at the end of each month and

summarized on one sheet Variation Status, so that the three
involved agencies are aware as to what work needing action is
held up with each of them.

(v)

The financial implications are kept up-to-date.

8.25 Valuation of Variations

8.25.1 Variation instructions for modified, new or additional work involving extra cost shall
be valued as per the procedure set out in the relevant Clause of the Contract. The following
are the steps to be taken by the Engineer.
(i)

to form an opinion as to applicability of the rates in BOQ;

(ii)

if considered applicable, to use BOQ rates;

(iii)

if not considered applicable, to use BOQ rates as the basis for valuation;

(iv)

Otherwise, to consult with Employer and Contractor to try and agree suitable
rates; this means developing new rates from first principles;

(v)

if disagreement, to fix appropriate rate, and

(vi)

to determine provisional rates to allow monthly certification.

8.25.2 In making his recommendations, the Engineer should give the Contractor the
opportunity to state his case and, if he considers the BOQ rate to be inappropriate, to
present his proposal as to how the rate should be adjusted or what basis should be used to
assess a new price. For his part, the Contractor must support his submission with full
particulars including, where applicable, detailed cost breakdown of any rate in the Bill of
Quantities.
8.25.3 The Employer must also be consulted with. The Employer should ensure that the
above procedure has been duly followed and appropriately, explained by the Engineer in his
recommendations, before he approves the variation.

65

8.25.4 Where it is reasonable to value at the (BOQ rate or some modification of it, any
stance by the Contractor that the tendered price may be wrong; or deliberately set low is
irrelevant.
8.25.5 Threshold level of the value quantity of a varied item below which a variation will not
merit re-fixation of rate or price should be specified
8.25.5 Day works
8.25.5.1 The Engineer has the option of ordering any variation of minor nature to be paid for
at Day work rates. When the work is executed at Day work rates, the Engineer is effectively
hiring the Contractors plant, labour and material. The cost of any inefficiency, wasted time
or lack of full effort is now borne by he engineer. The Engineer should take a close interest
in the operational control of all

Day work activities to avoid uneconomic working or

inefficient use of resources.

8.26 Substantial Completion
8.26.1 It means that stage in the execution of the work under the contract when the
Contract Works are complete except for minor outstanding items and minor defects: (a)
which in the opinion of the Engineer the Contractor has reasonable grounds for not
promptly correcting; (b) which do not prevent the Contract Works being used for their
intended purpose and (c) rectification of which will not prejudice the convenient use of the
Contract Works
8.26.2 Substantial Completion is generally taken to refer to a sufficient degree of
completion to enable the Employer to take beneficial use of the works concerned. It must
be kept distinct from completion of the Works or of the Contract
8.26.3 The phrase substantially complete needs to be interpreted judiciously.
outstanding

Minor

items, surface finishes for instance, or the removal of certain types of

temporary works, may not generally prevent the issue of taking Over certificates, nor should
small defects, for the contract covers their completion or correction.

The material

consideration is whether or not the incomplete work impairs the safe and effective use of
the Works, including the consequences to the Employer, and perhaps the public if they are
to have access, of accepting the works in that state.
8.26.4 Engineers decision in the matter of deciding substantial completion shall be final.
8.27 Taking-Over Certificate (TOC)

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8.27.1 The Engineer is empowered to issue a Taking-Over Certificate. The Contractor

shall notify the Engineer when he believes the work to be complete and the Engineer when
he believes the work to be complete and the Engineer will either agree and so certify, or
specify the works necessary to be completed before substantial completion. In the latter
case, the Contractor receives his certificate within the specified period of completing the
listed work.
8.27.2 Taking-Over Certificates may be issued in respect of specified sections or apart of
the Works, which are either complete or are incomplete but have been taken over by the
Employer.

8.28 Hand over to Employer

8.28.1 On issue of the Taking-Over Certificate, the Employer is responsible for the road
section and for maintaining it, unless it is the Contractors responsibility to maintain it.
8.29

Outstanding Work

8.29.1 On issue of Taking-Over Certificate, the Engineer will send a complete and accurate
list of any outstanding work. The Project Director should also satisfy himself in this regard.
8.30

Defects Liability

8.30.1 This period is named in the Contract.

It starts from the date of substantial

completion stated in the TOC. If there are more than one TOC, then there are different
Defects Liability Periods for the different sections/ parts taken over.
8.30.2 The Contract is not to be treated complete until a Defects Liability Certificate has
been issued. There will be only one Defects

Liability Certificate (for the Contract, or a

specific section defined in the Contract), It will be issued when the Contractor has
completed all his obligation under the Contract, viz.

Completion of all the physical works absolutely, down to the last minor item,
including site clearance;

Remedying of all the defects for which the Contractor is responsible, and

Fulfillment of all other obligations, such as submission of approved as-built

drawings, manuals, warranties, etc. as may have been specified

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8.31 Claims: The claims could be due to following;

(a)

construction drawings may include more or less details or perhaps increased or

decreased quantities of work than could be anticipated from the tender
drawings, or may cause a different construction method to be used;

(b)

ambiguities or discrepancies in the contract documents which cannot be

mutually agreed by referring to conditions of contract Priority of Contract
Documents.

(c)

Differences over the valuation of variations;

(d)

Unforeseen conditions, such as adverse physical obstructions or unexpected

conditions encountered during construction, which could not have been
reasonably foreseen by an experienced contractor when tendering;

(e)

Effects of war, rebellion, actions of third parties and the effects of weather;

(f)

Delays in giving possession of site, issuing ,approved for construction drawings,

and Employer supplied materials or services;

(g)

Unwarranted work rejection, necessitating removal and re-execution;

(h)

Acceleration claims, when events would have fairly entitled a Contractor to an

extension of time, but no extension has been granted, the Contractor may claim
extra costs because eh has to accelerate to meet the original contract time
requirements;

(i)

Disruption claims, when the contractor would allege that because of the
combination of numerous variations and directions, general disruption has taken
place, which in effect makes the tendered BOQ rates null and void;

(j)

Carrying out additional tests not envisaged in the contract, which either impose
higher standards or which are found to finally show the materials, plant or work
to be in accordance with the provisions of the contract, and

(k)

Bonus claim, if any.

8.32 Procedure for claims

8.32.1 The Contract sets out a disciplined manner of dealing with claims. Claims procedure
prescribes time limits for the notification and substantiation of claims and requires
contemporary records to be kept. If such records are not kept, the Contractor may be
limited in his entitlement.
8.32.2 In the first place, the Contractor is required to give notice to the Engineer within
specified days of occurrence of the event, giving rise to the claim. This is a practical

68

requirement.

The event having taken place, the Contractor is required to maintain

contemporary records. At this stage the Contractor can call upon the Engineer to inspect
such records and state if he (the Engineer) requires other records to be kept.

In this

manner the Contractor can satisfy himself that the records he is keeping will be suitable for
the Engineer to evaluate the claim in due course.
8.32.3 If the circumstances giving rise to the claim are not continuing, the Contractor has
the obligation, and also the benefit, of submitting his claim to the Engineer for agreement or
discussion while the event is still sufficiently recent for site personnel to have the facts at
their fingertips and the records readily available. If the circumstances are continuing the
Engineer will inspect the records at reasonable intervals and raise any points with which he
disagrees or on which he wishes to have further information when he inspects the records.
8.32.4 The Engineer will furnish all the data and his recommendations to the Project
Director who will forward the case to CGM for decision.
8.33 Claims Register
8.33.1 A register will be kept to keep track of claims, Entries are to be made once the

Contractor notifies the claim. The register needs to be kept up to date as to the progress of
each claim, status, action required, etc. Review and updating should be once a month by
the Engineer and the Project Director.
8.34

Records

8.34.1 Proper records shall be kept in an easily retrievable form for any future reference.
They may be needed for resolving/defending claims. They are also important as, very
often, new people may have to analyse and make recommendations on the claims, and
defend in arbitration proceedings.
8.34.2 The list of records to be maintained will depend on the type and nature of work
amount of delegation and channels of communication.

However, the records that are

regarded fundamental are enumerated below.

8.35 Site Supervision Records

All correspondence between the Engineer and the Contractor including site
instructions, approval forms etc.

All correspondence between the Supervision consultant, the Employer and third
parties.

69

The minutes or notes of every formal meeting

Measurement records, such as dimension books, timesheets, delivery notes, etc.)

Day work records as submitted and as corrected

Contractors interim statements, as submitted with copies of all supporting

particulars, as corrected Contractors statements and interim certificates.

Level and survey books, covering checks on setting out and completed work

Laboratory results and any other testing data

Progress Photographs

Approved for Construction, Revised, As Built Drawings

Administrative records such as leave and sickness returns, accident reports, etc.

Personal site diaries

Record of site approvals

8.35.1 Daily Diaries

8.35.1.1 One of the most important records kept on site is the Daily Diary. The purpose is
to have information for use in the determination of claims, disputes and arbitration, should
the need arise. Daily diaries will include: weather records, progress of work activity-wise,
work or material rejected with reasons machinery deployed, log books of machinery,
manpower employed category wise payment record, official visits and inspections, unusual
conditions, problems encountered materials or equipment delivered to site, length and
cause of any delay etc.
8.35.2 Personal Diaries
9.5.2.1 A daily personal diary concerning work activities/happenings should be issued to
and maintained by each member of the Supervision Consultants field staff. This book is an
important ad basic document and should be neatly and accurately recorded. Entries should
be made every day, whether or not work was performed. Such diaries need to be checked,
collected and stored.
8.35.3 Field Office Records
9.5.3.1 All field office records should be kept up to date and should be maintained for ready
reference at the job site during construction phase of the project. Upon completion of the

70

work, the records should be turned over to the Supervision Consultants Main Office, who
will retain some and forward other to the Employer for retention. The field office records
should include: Correspondence, Drawings, Reports, Samples, Operating tests, Material
tests, etc.
8.35.4 Miscellaneous Reports
9.5.4.1 There are numerous types of individual records that are important to log and retain
for future reference.

Many of the records that must be maintained are primarily of a

technical nature. No detailed coverage is possible. However, as a reminder, the following

will serve as a partial list of some of the many technical records that must be maintained on
a job, as applicable.

8.36

Manufacturers certificates for a product

Laboratory test certificates

Temporary Works approval

Concrete transmit-mix delivery tickets

Records of pile driving

Record of inspection of structural welding

Fabricating plant inspection reports

Concrete batch plant daily reports

Concrete mix designs

Concrete placing report

Concrete placement checkout sheet

Grouting reports

Embankment placing reports etc.

Field investigating reports

Defects/ non-conformance reports

Project Photographs and videos

8.36.1 Photography and videos will be used as evidence of site conditions before starting
work, to document construction progress, technical detail, record of important
events, types of materials, method of installation, any damages such as because of
floods, and similar tasks. They will also be useful aids for presentation.

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8.37

As-Built Drawings

8.37.1 On completion of the Works or Section thereof, the Contractor has to furnish to the
Employer As-Built drawings at his own cost. Contract may have a provision that in
the event of Contractors failure to furnish the as-Built drawings by the specified
date, Taking-Over Certificate shall not be issued by the Engineer.

The other

provision could be that the amount specified in the Contract Data shall be withheld
from payments due to the Contractor. Action will be taken by the Engineer in
accordance with the actual provision.
8.38

Registers

8.38.1 The use of registers to summarise and keep track of records is a necessary. One
can invent/ add registers as required.
8.39

Meetings

8.39..1 The Engineer will organize regular site meetings with the Contractor to review
progress and Contractors work

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CHAPTER IX

DISPUTE RESOLUTION
9.1 Dispute
10.1 Dispute are germane to any contract. A Dispute implies an assertion of a right or a
claim by one party and repudiation by the other party, either expressed or implied, and may
be by words or by conduct. A mere difference is not necessary a dispute; when the parties
fail to resolve it, the difference culminates in dispute.
9.2 Dispute Resolution in a Construction Contract
10.2.1 Since arbitration are fairly time consuming, it is always advisable to sort out the
disputes mutually through the mechanism or adjudication (Dispute Review Expert/Board),
which is a sort of voluntary arbitration. Arbitration can be resorted to if the adjudication
decision is not forthcoming or is not acceptable to any party. The following procedure will
be followed.
9.3 Dispute Resolution Expert/Board (DRE/DRB)
9.3.1 A formal clause of obtaining resolution through DRE/DRB will be inserted in the
conditions of the contract. A separate Dispute Resolution agreement will also be drawn up,
detailing therein provisions like:
9.3.2 Eligibility of Members, date of commencement, manner of entry on the reference by
Member and their resignation, Obligation of the Members, the employer and the Contractor;
terms of payment (monthly retainer ship fee, daily fee for travel & site visits, out-of-pocket
expenses); manner of sharing the fees and expenses and of making payments;

73

arrangements of site visits and their frequency; conduct of hearings; termination/phasing

out the activities of DRE/DRB; default of the Member; and action to be taken in case of
dispute in relations to DRB Agreement, etc.
RE/DRB should be put in place within one month of Letter of Acceptance.
9.3.3 Sole DRE will be set up for works up to Rs. 50 crore, and DRB for works costing
more than Rs. 50 crore.
9.3.4 Sole DRE will be appointed by mutual agreement between the parties. Falling an
agreement, appointment will be made by the Chairman
9.3.5 The Board will comprise three Member, one each to be appointed by the Employer
and the Contractor and approved by the other. The third Member, who will also act as the
presiding Member, will be appointed by mutual consent of the first two Members and
approved by the parties. If either of the first two Member is not so selected and approved,
or these two Members fail to reach an agreement on the third Member then, on request
either or both parties, appointment will be done by the Executive Committee of Indian Road
Congress, New Delhi. The Expert/Members to be appointed should be experienced with
the type of construction actually involved and the interpretation of contractual documents,
and be persons of repute and integrity.
9.3.6. If any dispute arises at any stage between the Employer and the Contractor in
connection with, or arising out of, the Contract or the execution of the works, including any
disagreement by either party with any action, inaction, opinion, instruction, determination,
certificate or valuation of the Engineer, the matter in dispute shall, in first place, be referred
to Dispute Review Expert/ Dispute Review Board, as the case may be.
9.3.7 Both parties shall promptly make available all information, access to the site, and
appropriate facilities, as the DRE?DRB may require for the purpose of making a
recommendation on such dispute.
9.3.8 Within 56 days after receiving such reference, or within such other period as may be
proposed by the DRE/DRB and approved by both parties, the DRE/DRB shall give its
recommendations with reasons. The recommendations shall be binding on both the parties,
who shall promptly give effect to it unless and until it shall be revised in an amicable
settlement or an arbitral award as described below. Unless the Contractor has already been
abandoned, repudiated or terminated, the Contractor shall continue to proceed with the
works in accordance with the Contract.
9.3.9 If either party is dissatisfied with the recommendation, then either party may, within
28 days after receiving the recommendations, or if the DRE/DRB fails to give its
recommendations within 56 days (or as otherwise approved), then either party may, within
28 days of receipt of recommendation or within 28 days after the said period of 56 days has
expired, give notice to the party, with a copy to the Engineer, or its intention to commence
arbitration proceedings.
9.3.10 If DRE/DRB has given its decision within the stipulated period, and no notice of
intention to commence arbitration as to such dispute has been given by either party with in
28 days of the said decision, then the decision of the DRE/DRB shall become final and
binding.

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9.3.11 Appointment of Sole DRE or Member of DRB will be made by the Chairman on the
recommendations of a committee of Member (Technical), Member (Finance) and CGM
concerned.
9.4 Arbitration
9.4.1 Any dispute in respect of which the recommendations (if any) of DRE/DRB has not
become final and binding, shall be finally settled by arbitration in accordance with the
Indian rbitration and Conciliation Act,.1996, or any statutory amendment thereof
9.4.2 The arbitral tribunal will compromise three Members, one each to be appointed by the
Employer and the Contractor. The third Member, who will also act as the presiding
Member, will be appointed by mutual consent of the first two Members. If these two
Members fail to reach an agreement on the third Member then, on request by either or both
parties to the Secretary, Indian Road Congress, New Delhi , appointment will be done by
the Executive Committee of Indian Road Congress.
9.4.3 The tribunal shall have full power to open up, review and revise any certificate,
determination, opinion, instruction or valuation of the Engineer, and any decision of the
DRE/DRB, relevant to the dispute.
9.4.4 Neither pary shall be limited in the proceedings before the tribunal to the evidence or
arguments previously put before the DRE/DRB to obtain its decision, or to the reasons for
dissatisfaction given in its notice of dissatisfaction.
9.4.5 Arbitration may be commenced prior to or after completion of the works. The
obligations of the Parties, the Engineer and the DRE/DRB shall not be altered by reason of
any arbitration being conducted during the progress of the work.
9.5

Procedure for Preparation of Reply/ Defence

9.5.1 Immediately after receipt of notice of dispute, Project Director (PD) will send a copy of
notice to the concerned CGM/GM and DR & A Cell at Headquarter and the Engineer of the
project.
9.5.2 The PD, who will be the Presenting Officer, should carefully go through the claims
and prepare suitable draft reply in consultation with the Engineer, as per the terms and
conditions of the contract and facts of the case. The draft reply along with supporting
documents should be sent to the CGM Headquarter for vetting.
9.5.3 At Headquarter the concerned Division should , within 7 days, send back the reply
duly vetted, to PD for submission before DRE/DRB/Arbitrators. He will attend all the
hearings.
9.5.4 Copy of any specific order by DRE/DRB/Arbitrators should be sent by PD to the
concerned CGM and DR & A Cell at Headquarters.
9.5.5 DRE/DRB would be making site visits periodically. Observations, if any, made by
them during these visits, should be promptly brought by PD to the Headquarters notice,
along with report of any action taken or decision needed.

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9.5.5 Settlement of disputes will be constantly monitored by PD, DR & A Cell, and the
respective GMs.
9.5.6 In arbitration cases involving complex legal issues, or where stakes are considered
to be high ( Such as claims of the order of Rs. 5 crore or more), NHAI should, with the
approval of the Chairman, engage the services of a counsel or a techno-legal expert. The
PD should get into touch with counsel so appointed, and furnish to him all the documents
along with a written note and draft reply/counterclaims. Final reply/counterclaims will be
prepared with help of counsel.
All proceeding before DRE/DRB/Arbitral tribunal shall
be in English.
9.6 Acceptance of DRE/DRB Recommendations and Arbitration Awards
a.

PD ( GM, in disputes of design consultancy) presenting the case before

DRE/DRB/ Arbitral tribunal should give his comments on factual findings of the
award by reference to various document, and arguments advanced in the
course of the hearing and send his recommendations to CGM. In an arbitration
case, the counsel, if engaged, should examine the records of proceeding for
evidence of record claim-wise, the comments of PD, and various other technolegal aspects on which the award can be challenged.

b.

Recourses to court against an arbitral award can be made only for reasons
defined in Section 35 of the Act, within three months from the date of receipt
of award ( or disposal of application for correction or interpretation of award or
supplementary award on any claims presented in the proceeding but left out in
the award). If the award suffers from any infirmity or sufficient grounds exist for
challenging
it, PD should, on receiving directions to this effect from
Headquarters, take the requisite action, well before the limitation expires.
If the award is contested by NHAI in the court, PD should keep a close liaison
with the counsel, keep track of the case, and ensure that the case is not lost by
default.

c.

A committee of Member (Technical ) , Member (Finance) and CGM

concerned will recommend to the Chairman for his approval whether to:
i. accept DRE/DRB recommendations or go for arbitration.
ii.

challenge the arbitration award.

In complex cases, expert techno-legal opinion should be obtained.

Chairman has got full powers to accept an award.

d.

In case where the arbitration awards go against NHAI (whether by upholding

the claims of the Contractor or by rejecting the counterclaims, if any), CGM will
go into detailed reasons and lapses, if any, on the part of the concerned
official(s), due to which the NHAI came to be burdened, and give his
recommendations tot the Member/Chairman on the issue of fixing responsibility
and taking action, where necessary, including remedial measures to be taken in
future contracts.

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9.7 Disputes in Supervision Consultancy Services

9.7.1 Procedure to be followed will be the same as outlined in Para 9.2 for construction
disputes, except that DRE will function where the cost of Services is up to Rs. 2 crore, and
DRB, for cost more than Rs. 2 crore
9.7.2 Any dispute in respect of which the recommendations ( if any) of DRE/DRB has not
become final and binding, shall be finally settled by arbitration in accordance with the Indian
rbitration and Conciliation Act, 1996, or any statutory amendment thereof.
9.7.3 The procedure of : (i) appointment of Sole DRE, Member of DRB, Member of arbitral
tribunal; (ii)
conduct of proceeding and (iii) acceptance or otherwise of
recommendations/awards will be the same as in case of construction disputes.
9.7.4 The basic responsibility for preparation of reply and defence in the case of disputes
with Supervision Consultants will lie with the PD.
9.8 Disputes in Design Consultancy Service

9.8.1 Any dispute in case of Services costing up to Rs. 50 lac, which cannot be resolved at
the level of CGM/Member (Technical), shall be referred to the Chairman. His decision, after
due opportunity having been given to both the parties to be heard, shall be final and
binding.
9.8.2 For cost of Services between Rs. 50 lac and Rs. 2 crore , dispute shall be settled by
a sole arbitrator, to be appointed by mutual consent of the parties, failing which appointment
of sole arbitrator shall be made by the Executive of Indian Road Congress, New Delhi, on a
reference to be made in this behalf by either party to the Secretary, IRC.
9.8.3 For cost of services more than Rs. 2 crore. The dispute shall be settled through a
three member arbitral tribunal. The arbitral tribunal will comprise three Member, one each
to be appointed by the Employer and the Contractor. The third Member, who will also act as
the presiding Member, will be appointed by the mutual consent of the first two Members. If
these two Members fail to reach an agreement on the third Member then, on the request of
either or both parties, appointment will be done by the Executive Committee, Indian Road
Congress, New Delhi,
9.8.4 General Manager concerned will be the Presenting Officer on behalf of NHAI.
9.9 Guidelines for Handling Disputes

9.9.1 Following guidelines shall be followed to avoid/minimise the incidence of disputes

and their adverse consequences:
i.

It is necessary to carry out pre-planned investigations and detailing to obtain sound

design and realistic specifications and drawings, including land acquisition.
Inconsistencies/contradictions between various documents should be avoided.

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ii.

Access to land should be provided as per schedule given in the Contract.

iii.

In case consultancy assignments, the TOR and output expected should be clearly
specified.

iv. Decision-making should be quick. Objectives of the project, considering quality, time an
d cost, should be the guiding criteria.
v.

Correspondence with the Contractor should be carefully handled.

vi. Daily reports of resources (men, material and machinery in working order) deployed by
the Contractor, his handicaps and reasons thereof, should be documented to present
Employers case on basis of facts.
vii. For large works, Steering Committee should be constituted to take important decisions
on behalf of the Employer, to avoid complications arising out of a single individual
(acting as the Employer) feeling hesitant or handicapped to take decisions.
viii. Inn case of construction disputes, PD should keep a separate file regarding the dispute
that crop up during the progress of the work. In case of his transfer or relinquishment
of charge due to any reason, he should hand over to his successor a self-contained
note on the file, giving full background of all disputes, various developments thereon,
and decisions taken with reference to the connected files. Suitable method and
procedure should be devised in the office of PD so that all files, records, reports,
registers, drawings, contract agreements etc. are carefully preserved and become
available at a later stage to the successor who is required to defend the case.
Ix.

The arbitration cases should not be regarded as a thankless task or bad legacy of
defunct decisions, but instead should be given due importance, and dealt at all levels
with high priority, till they are fully disposed of.

x.

CGM should exercise a quarterly review of all disputes, whether relating to construction
works or consultancy services and ask for requisite steps for their expeditious disposal.

xi.

It should be the responsibility of the supervision consultant to :

assist the Employer in DRE/DRB/Arbitration cases which may arise u[p to the
defect liability period;

give, on expiry of defects liabilities period, complete handling over notes

regarding any disputes, differences, claims;

to appear, on payment of expenses, as witness if and when summoned, and

provide, on mutually agreed terms, additional services, if required.

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SUGGESTED CHECK LIST FOR VARIOUS STAGES OF WORKS

1.1 Targets and Achievements2:

1.1.1 The information with regard to targets and achievements, together with the utilization
of funds received by NHAI from sources like GOI, multilateral financial agencies, and
market borrowings may be scrutinized for possible comment in the Review.
Component

Targets

Achievements

Percentage of
Shortfall

GQ
NS- Corridor
EW- Corridor
BOT
Annuity
Market Borrowings

2.1 Utilization of Multilateral Development Agency Funds (WB, ADB, JBIC) and GOI
Grants3
2.1.1 All the Funds received from Multilateral Development Agencies (MDA) are generally
routed through GOI by way of grants. In addition, GOI gives grants for maintenance of the
roads constructed.
The actual utilization of the funds released by the multilateral agencies may be analyzed
and suitable comments made.
The following may be examined in audit.

2
3

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1. The terms and conditions of the grants governing the loans.

2. Whether the entire grant/ loan amount has been utilized or not.
3. Whether the grants / loans were utilized for the purpose for which they were
granted.
4. Whether the laid down procedures for approval of scheme is being followed
5. The mechanism and plan for debt servicing and provision of interest for repayment.
6. Whether the Authority is preparing its annual report giving full account of its activities
during the previous financial year.
7. Whether utilization certificates are being regularly submitted to GOI / other loaning
agencies
8. Cover also the analysis of the reasons for shortfall in achievements and designing
responsibilities on the design consultants, decision making, PMC, construction &
NHAI, as well as the action taken of any.
9. While working out the proportionate delay on the works attributable to the
consultants, expands out the reason and like inadequate preparatory work (such as
land acquisition, utility diversion environmental clearance etc.) by NHAI and
shortcoming of the design consultant in preparing DPR.

3.1 Social and Environmental aspects:

3.1.1 As per the environmental laws of the land, a certain number of trees are required to
be planted for every tree felled. NHAI pays the necessary charges for planting of trees in
consonance with the number of trees felled, to the Forest Departments of the State
Governments. The mechanism, financial costs, and effectiveness of the system may be
examined in audit for possible comments.
The following points may be examined.
1. The number of trees which have been cut and the provision for replacement.
2. Whether the trees were felled by the civil contractor or by the Forest Department of
the respective States.
3. Where the trees were felled by the civil contractor, whether these were properly
stored and accounted for and handed over to the Forest Department of the State
4. Where the trees felled were not handed over to the State Forest Department,
whether these were properly disposed off through sale by auction and whether
maximum revenue was generated
5. Whether the tree stumps removed by the civil contractor were properly stored,
accounted for and properly disposed off through sale by auction and whether
maximum revenue was generated and credited to NHAI.
6. It will be useful to ascertain how many of the new trees that have been planted at
cost of NHAI are survived beyond two years.
4.1 Time and cost over runs4
4.1.1

Reasons for time and cost overrun may be analyzed and suitable comments made.

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1. The exact quantum of time and cost overrun may be determined with regard to the
estimated time and actuals.
2. The reasons for time overrun may be analyzed, to determine whether the delays
were avoidable or not. If the delays were avoidable, the extra cost may be worked
out and commented upon.
3. The parameters that go into the fixation of time schedule and targets may be
examined to determine whether the time has been correctly fixed with regard to the
quantum of work.
4. It may be seen any extension of time has been given, and if so, the reasons for the
same may be analyzed. It may be ascertained as to who is responsible for the delay.
5. If it is observed that the delay in completion of works is attributable partly to the
NHAI, partly to the civil contractor and partly to the consultants, the proportionate
time and cost involved may be worked out and suitably commented upon.
6. Whether any liquidated damages have been recovered in cases where the time
overrun is attributable to the civil contractor and/ or the consultants.
7. Whether the PIUs / Engineers are maintaining any records like Hindrance Register
and Site Order Book. Parties may examine justification for grant of EOT in the
absence of supporting documents.

5.1

Preparation of Detailed Project Report (DPR)

5.1.1

The DPR is one of the basic documents for the execution of any project.

The following points may be examined in audit:

1. Whether techno-economic study has been conducted
2. Whether general information on traffic, soil conditions, and availability of materials
has been collected for estimation of costs for administrative approval. Technical
approval cum-financial sanction should be obtained before Administrative Approval.
For this, an investment feasibility analysis has to be done and a preliminary survey
has to be conducted. It may be seen whether these have been carried out.
3. Has the DPR been based on adequate surveys and investigations?
4. DPR should be examined at NHAI to check that it is technically sound and is fit to
form the basis of contract. Check whether it has been examined for its correctness
and who has checked it.
5. Also check that on large size project, whether DPR has been checked at NHAI itself
or it has been examined by a peer group and proof consultant etc.
6. Are there large-scale variations in the quantities of items from the DPR? If yes, what
are the reasons?

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7. Who is responsible for these variations?

8. Is there any time and cost over-run? If so, what are the reasons for the same?
9. After taking up the project, the Authority has to ensure timely acquisition of land and
shifting of utilities. The delays in these areas and the consequences thereof may be
analysed.
10. Was the DPR prepared in time or after start of work?
11. Was the DPR prepared before starting the work? Are there any changes in the
design and scope of the work as compared to that envisaged in the DPR?
12. Were any items included in the BOQs withdrawn at a later stage and were separate
tenders invited for such items?

6.1.

Appointment of Consultants and Performance Evaluation :

1. It should be ascertained whether the Evaluation Committee for technical proposals

comprised only in-house staff (of some or varying status) or whether any outside
experts were associated.
2. Examine whether the weightings given in TP & FP for combined evaluation were pre
declared and whether they were rational and uniform in all cases.
3. With reference to the utilization of required technical personal by consultants, it may
be analyzed for the whole country with the aid of a computer whether there are any
repetitions of the same/middle level experts of the same consultant in different
projects of NHAI all over the country simultaneously and if so, whether the manmonths inputs shown for the same person exceeded twelve months in a year.
4. Do the consultants possess the required experience and technical know-how?

5.

Are the technical personnel retained in their employment for the period of the project
and deployed on the work assigned?

6. In respect of change of the key personnel by the consultant, analyse such changes
for typical case histories and work out their effect on the original rating given (merit
weightages) for technical proposals.
7. In the case of consultants for surveys and investigations and preparation of DPRs, it
may be examined whether adequate surveys have been undertaken. The basis for
arriving at the quantities and availability of material may also be scrutinized.
8. If the consultants are engaged for supervision of civil contractors, are they
discharging all the duties and responsibilities stipulated in the contracts?

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9. Has the supervision consultant started the work thirty days after the date the
contract became effective or as stipulated in the agreement?
10. Has the consultant performed the services as specified in the appendix to the
agreement, which, inter-alia, states the services to be provided?
11. Are the time schedules for completion of different tasks being followed? If not,
reasons for deviations may be examined and suitable comments made.
12. Are there instances where the consultants have received remuneration from any
agency other than the Authority in the form of any commission, discount or other
such payments?
13. Does the contract price clearly state the amount to be paid by in foreign currency
and in local currency?
14. Does the contract give a breakdown of the lump sum remuneration of the
supervision consultant in the form of payments to be made to the key personnel to
be deployed and the reimbursement of expenses?
15. Is the relevant appendix being used in the determination of the amount payable for
additional services as may be agreed upon by the parties?
16. Has the consultant maintains absolute confidentiality for a period of 2 years after the
expiration of the contract?
17. Has the consultant submitted to the client, the reports and documents specified in
the contract?
18. Has the consultant deployed the key personnel as stated in the agreement for the
purpose of effective supervision of the civil contract? Has he changed the key
personnel without the prior permission of the Authority?
19. In the event the Authority cannot make the payment for the services rendered by the
consultant within the due date as specified in the contract, interest as stated in the
contract shall have to be paid by the Authority for the belated period .Has the
Authority paid such interest to the consultant?
20. The consultant shall not enter into any sub-contracting without the prior approval of
the Authority. Has any such case taken place?

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21. The Authority may have the accounts and records of supervision consultants audited
by the auditors appointed by them. However in general it is not being done. This is
to be commented upon.
22. The project supervision consultant should submit his quality assurance plan and
manual for supervision of NHAI. Has this been done? Who checks whether the
quality control checks prescribed in QAM are adequate or not.
23. The Quality Assurance Plan may be scrutinized in audit for its Timely submission ,
Adequacy and Proper implementation.
24. The engineers are required to pay certain remuneration to their employees, as
claimed in their bid documents. It may be ensured from their records and Income tax
Returns that the payments have actually been made.
25. Records of Engineer may be examined for Quality and Quantity checks of the work
of civil contractor. Frequency and magnitude of checks and tests may be examined
through documents maintained by Engineers.
26. It has been noticed that at the time of selection of consultants, the bidders claim
availability of qualified key personnel, but at the time of execution of work they fail to
employ them. It should be examined, in audit that how much financial implication is
there due to non-employment of these key personnel. In addition, it should be
examined if the quality of the work could have suffered or actually did suffer due to
inadequate supervision.
27. The consultants are required to make a thorough survey of the local area and
should design to utilize locally available materials. This aspect may be examined
with respect to the BOQ items requiring material transported from far off places.
28. In certain cases it has been observed that the Engineers agreement continues
much beyond the completion of the work. The justification for his continued
employment and consequent payments may be examined.
29. As per contract clause, the payment to supervision contractor consists of
remuneration and reimbursable expenditure as per actually and reasonably
incurred. It has been observed that reimbursement is being made on the basis of
estimated rates as per agreement and not as per actual expenditure incurred. It may
be examined in audit whether any reimbursement is made in excess of the
expenditure incurred and any such payment may be commented upon.

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30. As per contract, the consultants have the power to order variations and fix their
rates. In case NHAI withholds these payments, interest is payable. Any cases where
this avoidable interest has been paid or liability incurred may be commented upon.
31. Computation of remuneration of consultants staff on supervision is based on
attendance records. The computation may be examined with respect to these. The
performance of the consultants may be analyzed keeping the above aspects in view.
32. Price escalation on extra items valued at current market rates is not admissible. Any
such case may be examined and commented upon.
33. Price escalation on the portion of payments made in foreign exchange is not
payable. Any payment on this account or on foreign inputs and portion of payments
in Foreign exchange may be scrutinized and commented upon.
34. It can be suggested to NHAI that instead of every professional consultant preparing
QAM, the NHAI should have a standard basic QAM and the consultant could be
asked to follow with changes as and where are required.
35. It has been observed that the consultants do not employ the key minimum personnel
required as per quantum of work. There appears no provision of penalty for the
shortfall in deployment of key personnel. This shortfall affects the progress and
quality of work, it is suggested that the consultants do not adhere to the
requirements, the following penalties be recommended to NHAI
36. A reduction in the fee corresponding to the shortfall in deployment of personnel can
be effected.
37. There should be a check by PD and GM on the PNCs inputs and outputs
38. Just we work out contractors capacity to handle a number of works in progress with
him before awarding a new work, a similar exercise is required to be done in respect
of consultants to examine their capacity to handle so many works awarded to them
at a time.
39. Actions against consultants can be taken in several ways in addition to imposition of
penalty as suggested, such as resorting to Professional Indemnity bond, deleting
name from approved list and other deterrent actions as per MOST circular issued in
2002.
7.1

Checks for Quality Assurance Requirements

7.1.1 In order to see that quality assurance requirements are being adhered to, the
following checks can be made. These checks, which are listed below are for general
situation and user can modify the same to suit as per the contract specifications.

85

A. Project Preparation: The following items may be examined.

1. To check the adequacy and reliability of data, check whether the data collection has
been done through specialized agency or not and also check whether the same has
been verified and certified by some external agencies using sophisticated
equipments and methods.
2. Check whether the project report has been prepared and approved following the QA
system and it has been checked through an external independent agency.
3. Check whether the topographical surveys, mapping, drawings etc are being
prepared by specialized agencies or not. Also check that the same has been verified
by third party like Consultant or not.
B. Design and Drawings: The design and drawings are prepared during the preparation of
detailed project report following an approved quality assurance system. The design and
drawings before execution should be reviewed/proof check by an external agency that is
independent. An auditor may examine the following.
1. Check whether the drawings (Longitudinal profiles, cross-sections) are made at preexecution stage and examined by external agency.
2. Check whether the drawings for cross drainage and other services are made at preexecution stage and certified as per the approved Q/A system.
3. Check the project specific drawings related to road furniture were made at preexecution stage.
4. Check whether the design review and proof checking are as per agreed Q/A system.
If any modification were suggested, whether the same were incorporated or not.
5. Check whether the as built drawings were built or not and whether owner is
maintaining the same or not.
C. Contractual Aspects: This aspect has been discussed previously, however the
following may be examined by the team auditing the works.
1. Check the basis for the pre-qualification of contractors.
2. Check whether the sub-contractor was engaged on the basis of pre-qualification or
not.

86

3. Check the requirement for nominated subcontractor and whether the same was
made in the tender or not.
4. Check the complete contract document with full specifications including all relevant
codes. Also check whether the specifications for non-standard items are detailed,
finalized and approved at appropriate level of responsibility.
5. Check whether the contractor submitted the Quality Assurance Manual and same
being approved defining all activities with minimum two levels of control. Each of the
controlling authority to have their own Q/A manual covering their responsibilities.
6. Check whether in the defect liability period, the responsibilities of owner and
contractor are clearly defined in the tender document. Also check the defect liability
period for specified items and comment appropriately.
7. Check whether an independent Quality Audit team is reporting to the Contractors
management or not.
D. Construction Organisations: The following points may be examined by the audit
team.
i.

Organisation of Contractor:

The contractor is expected to appoint qualified staff,

which shall be responsible for supervision and surveillance of quality. In most of the cases,
the management of the contractor shall be jointly responsible for reviewing the
requirements of the project with the Client/Consultant and structuring the appropriate
organization for the same. The project specific organization is headed by Project Engineer.
The other staff members are normally Planning Engineer, Materials Engineer, Construction
Engineer, Plant/Equipment/Instrument Engineer, Service Engineer, Landscape Architect,
Safety Engineer, Survey Engineer, Quality Assurance Engineer and a independent team for
quality audit.
The Audit Team may check the complete list of staff engaged by the contractor and the
assigned responsibilities.
ii.

Planning of Construction Activities: Normally the planning for different project

activities is determined by the contractor and approved by project management consultant

after intimation of the same to the Client. This includes schedule for all activities including
material sourcing, sequencing, resource planning and method of quality control etc.
Normally under FIDIC conditions of contract, the different activities must be finalized by the
Contractor in consultation with the Engineer in the beginning of the contract and no change

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shall be allowed as all the delays and claims for delayed completion, liquidated damages
etc are accounted on the basis of this programme.
The responsibility to ensure the quality of every civil work rests on the Engineer. The
technical specifications require, in addition to general compliance with the quality standards,
the carrying out of certain quality tests. The following points may be examined in audit:
1. Are the quality control checks prescribed and those exercised adequate?
2. Are there any instances of these tests not being carried out?
3. Have the tests been carried out at the required frequency?
4. Are the results in conformity with the requirements as per the stipulated technical
specifications?
5. Have all instances of non-conformity been reported to NHAI and corrective action
taken?
6. What effect have these instances of non-conformity had on the quality and / or cost
of work?
7. Have such instances resulted in any loss to and / or benefit to the contractor or
Engineer? If there are such instances, their effect may be quantified and reported.
8. The team of auditors can check whether the programmed activities are being
followed by the Contractor, Consultant, Designer etc. and what kind of deviations
were there from the originally planned schedule and the reasons for the same. Are
there any variations due to the same and what kind of financial implications were
involved in the same. This may be commented appropriately.
iii.

Control of Data and Documentation:

The drawings, specifications, work instructions and other related documents shall be
maintained as described below to ensure that only the latest approved documents are used
for construction of each part of work, which covers both the temporary and permanent
works.
The issuing authority should maintain the registers of drawing/documents giving information
about reference number, revision reference, title/date of issue, status of issue, date of
approval and purpose of issue etc.

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The receiving officer to whom documents are issued at site should maintain similar records.
Maintenance and accessibility of site instructions book/order with both issuing party and to
whom issued.
Maintenance and accessibility of registers of correspondence files,
Daily diary of works
List of registers on site
The auditors can check the above records, if required, and comment appropriately.
iv. Quality related Records and Documents
For quality assurance of works, it is essential to document each and every operation and
activity connected with the work and maintain the records of inspection, approvals/nonapprovals and other statistical day-to-day information about the progress of work. These are
normally recorded in the standard forms and they constitute an important component of the
project. Some of the activities can be broadly categorized as under.
v. Method StatementThe method statement gives detailed proposals of the construction agency, which are
approved by the Engineer. No change shall be carried out prescribed in the method
statement without obtaining the prior approval from the Engineer.
The auditor can check that are there several such instance for the change of method
statement and what are the financial implications involved.
vi. Inspection Pro-forma and Test Results
These are used for the purpose of seeking approvals from the Engineer or his
representative before commencing every operation. The forms could be for approval of
earthworks, approval for concreting, approval for reinforcement, approval for asphalting etc.
These are usually supplemented by standard check- list, which have to be verified by the
Engineer and after he is satisfied about the various points, the approval is then accorded on
that form. The auditor can check whether the following activities were carried out or not:
1. Testing and approval of material at source
2. Inspection and certification of material on receipt

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3. Testing of material going into construction

4. Test records
5. Assessment and analysis
6. Test frequency and calibration
7. Storage and issue of materials Inventory
The details regarding the quality control checks for various activities of road construction,
type of test required to be performed for approval of different materials, the relevant IS
codes for testing, the frequency of tests, codal requirements as per BIS/IRC/MORTH, the
methods of measurements and rates etc are given in Appendix-I.
The auditor can check the records of independent testing and acceptance of the same
following a Q/A procedure. For the manufactured items, checks can be made to see that
regular testing at specified frequency is being carried out or not. Also check that ISO-9000
certification for such a product is required or not as per Q/A manual and if yes, the
certificate is available or not.
vii. Control of Workmanship
To achieve the desired workmanship at various stages of work, it is necessary to carry out
inspection in a regular and systematic manner. The contractor is expected to devise an
appropriate system for such inspections and get it approved from the Engineer. The
following points are generally examined/checked during inspection.
1. Method statement including tolerances
2. Request forms for inspection
3. Inspection pro-forma
4. Authority levels for inspection
5. Inspection procedures for preliminary, periodic and on completion
6. Check list to systematize the inspection
7. Record inspection

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The team of auditors can examine that sufficient measures were taken to check the end
product in a manner as indicated above or not and comment appropriately.

viii. Non- Conforming Products

For quality assurance of the finished work, it is necessary for the materials and the
workmanship to fully comply with the work requirement. Non-conforming works has to be
dealt with as per procedure. The quality audit team of contractor and consultant should
carefully deal with the items of non-conformance and should examine, what corrective
measures were adopted to resolve the case. The guidelines as suggested by Indian Roads
Congress for dealing with non-conforming works are given in Appendix-II.
The auditor can check the type of measures, which are being followed at site to deal with
non-conforming works and whether there are delays, variations and cost implications etc
due to non-conformity of works or product. The following aspects may also be examined
regarding the non-conforming works or product:
1. Accepted with or without repair with specifications
2. Reworking to meet specifications
3. Re-graded for alternative use
4. Rejected or scrapped
Check that the activities in dealing with non-conformity are properly documented or not.
8.1

FIDIC conditions adopted in the contracts

8.1.1 The following points may be examined in audit for possible comments: 1. Have these conditions been adapted to safeguard the interests of the NHAI?
2. Are there stipulations, which have the potential of giving undue benefits to the
contractor?
3. Stipulations in the agreement have been found to be against the financial interests
of the Authority, or are ambiguous / contradictory such as

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4. Clause 21.2, for refund of royalty and taxes, that leads to unintended financial
benefit to the contractor
5. Clause 15.3, which provides for upward revision of the contract price in case there is
an extension of time for acceptance of bid which might lead to double payment to
the contractor on account of price escalation.
6. Clause 29.6 is contradictory to Clause 13.2 of the General Terms and Conditions of
Contract.
7. Clause 47.1(c) provides for price escalation on secured advance on materials
brought to site for works, which is inadmissible.
8. Clause 49.2, which leads to the tendency of extending sectional completion dates
with a view to provide undue benefit to the contractors.
9. Examine the deviations made in the contact documents from provisions of
MORT/IRC specifications and FIDIC Conditions and give comments where such
variations are uniform or arbitrary and were they at all necessary.
10. The contract documents for the works under your audit may be scrutinized for
similar incongruencies and necessary comments included in the review after due
quantification of the same.
9.1 Invitations to Bidders (ITB)
9.1.1 The following may be scrutinized in audit for possible comments: 1. Has the ITB been approved by the competent authority prior to the press release,
with regard to its correctness?
2. Has the ITB been issued only after the preparation of the DPR?
3. Is the ITB in consonance with the DPR?
4. Has sufficient notice and wide publicity been given?
5. Verification of bid documents, comparative statement and bid evaluation documents
and acceptance of lowest tender for construction/consultancy. Reasons for rejecting
tenders, if any
6. Letter of acceptance and notice to proceed with the work.

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10.1 Bid evaluation process (Technical and Financial)

10.1.1 The following may be scrutinized in audit for possible comments: 1. Have the bidders submitted two different bids, one for technical and one for
financial?
2. Whether NHAI has analyzed the technical bids properly, prior to the opening of the
financial bids.
3. Whether all the technical bids have been examined keeping in view all the
necessary technical parameters.
4. Whether NHAI has opened any technical bid that has been received after the
specified time limit. If so, what are the reasons thereof and who has authorized the
same?
5. Whether the financial bids have been opened and the bid awarded to the lowest
bidder. If not, whether the reasons for the same have been recorded with the
approval of the competent authority.
6. Whether there is any undue delay in finalizing the bids so as to affect the overall
schedule for the completion of the work.
7. While finding out under delays in finalizing of bids, examine critically the cases
where there have been variations of the final decisions by NHAI from the
consultants recommendation.
11.1 Pre construction activities.
11.1.1 The following points may be examined for possible comment
1. The contracts should mention clearly the technical particulars like design and
specifications. Specifications should be practical and should be reviewed and
variations clearly mentioned. Have these been done?
2. After the signing of agreement, the contractor should furnish his quality assurance
system in the form of a manual, which should be prepared in consultation with the
consulting engineers. Has this been prepared?

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3. The contract data for a project gives all detailed and substantial information about
that project so that there is no ambiguity/ confusion in its understanding and also in
the execution of the project in due course. Is the data available in this form?
4. While examining whether contractors have invested sufficient fund of their own in
the work, carry out audit of their accounts which would also show whether any
maintenance back to back subletting has done by them for any work.
12.1 Technical specifications:
12.1.1 Every contract for civil works incorporates certain technical specifications to be
followed in road construction. The following points may be examined in audit for possible
comments: 1. Are there any instances of deviations from the stipulated technical specifications?
2. Have such deviations affected the quality and / or cost of work?
3. Have such deviations resulted in any loss to and / or benefit to the contractor or
Engineer? If there are such deviations, their effect may be quantified and reported.
4. Compare standards adopted for preparing the estimation (cross section) by different
consultants and CCMs of NHAI in the different zones of the country.
5. The variations from the stipulated technical specifications for different projects and
different consultants be compared to find out their rational and justification.
13 .1 Project Implementation
13.1.1. NHAI follows a decentralized payment and financial accounting procedure.
Payments for various projects are handled and the books of accounts are maintained at the
PIUs. Each PIU is treated as a separate payment/accounting unit. The Project Director (PD)
authorizes all payments including those to the contractors/consultants based on the
certification made by the Engineers and subsequent endorsements by the Technical and
Accounts staff. Necessary funds to meet the project expenses are released from the Hqrs
to all the PIUs on a quarterly basis.
13.1.2 The contracts for civil construction provide for the payment of bonus at the rate of
one per cent of the contract price for every month, which shall elapse between the date
stated in the completion certificate and the time prescribed for completion subject to a

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maximum of 6 per cent. In this case, the basis and reasonability of the stipulated time of
completion has to be scrutinized
1. The reasonability of the initial time period stipulated in the agreement
for completion may be examined vis--vis similar works of
comparable magnitude.
2. Any change in specifications may result in time saving for completion;
such instances may be examined.
3. Any reduction in the scope of work may be examined for
proportionate reduction in time for completion.
13.1.3 The following may be examined in audit for possible comments:
1. Whether the time prescribed for completion is excessive in view of the value/
quantities of work. This may also be compared with similar other works.
2. Whether there is any repugnancy with regard to the measurements recorded
in the MBs and the certified date of completion
3. If the bidder has failed to quote rates for any item, whether payment for the
same has been made separately. Any such payment may be commented
upon.
4. Whether any price escalation on extra items valued at current market rate
has been admitted
5. Whether any price escalation on the portion of payments made in foreign
exchange has been paid. Any payment on this account or on foreign inputs
and portion of payments in foreign exchange should be commented upon.
6. Whether the same base rate for foreign exchange, as provided for the
purpose of evaluation of bids, is being used for part-payments in foreign
exchange against the values of work done or to the Engineers for
supervision service.
7. Whether there is any payment of extra item not in conformity with the
MOST/MORTH specifications.
8. Whether any rates other than those already available in BOQ have been
adopted for extra items.
9. Whether separate rates have been called for any large-scale deviation or
extra item. It may be examined in audit whether the rates allowed are more
than the minimum rates quoted by the bidders.
10. Whether there is any discrepancy between BOQ items and MOST/MORTH
specifications leading to sub-standard work or extra payment to the
contractor or avoidable extra expenditure on the work.

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11. Whether costly materials have been used when cheaper substitutes were
available or materials have been carted from distant sources while it was
available nearby.
12. Whether any price escalation on foreign inputs has been allowed in view of
NHAI covering the exchange rate risk.
13. If any import of equipments etc. by the contractors has been exempted from
Customs duty, whether they conform to the bid documents.
14. Whether all advances paid to the contractor have been utilized as per
contract conditions. Any diversion of NHAI funds elsewhere may be
commented upon.
15. Whether the contractor has deployed specified equipment in specified
number and duration
16. Whether contactors have invested on the work, sufficient funds of their own
as per the bid conditions.
17. Whether payments to the contractor, for royalty for quarried material, have
been made as per the invoices produced by the contractor. If not the same
may be commented upon
18. Earthwork done may be checked with drawings. In case of earth cutting and
filling, the cutting is not required to be done upto the formation level and
subsequent filling for sub-base becomes infructuous.
13.1.4 Whether the levels of soil recorded at the time of preparation of estimates and
those recorded before commencement of the works are identical. If not the financial
impact of the same may be commented upon.
13.1.5

The following may be scrutinized for possible comment: -

1. Reasons for deviation in quantities of different items.

2. Basis of fixation of rates for extra/substituted items.
3. Basis for fixation of the percentage of total payment to be made in foreign
currencies.
4. Impact of payment in foreign currencies considering the variation in exchange
rates from time to time.
5. Position of recovery of advances with reference to the conditions stipulated in
the agreement.
6. Payment of interest for delayed payments on interim certificates of payments
and reasons therefor.
7. Progress Reports with reference to work programmes.
8. Minutes of fortnightly meetings.

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9. Impact of price revision due to quantity variation. It may be seen whether the
revision (and the resultant extra cost) could have been avoided by proper
estimation.
10. Cost overruns and reasons attributable to contractors, supervisory engineers,
NHAI.
11. Decisions for compensatory events
12. All Arbitration/ court cases
13. Whether the bidder offered any rebate / abatement and whether it was availed
by NHAI. In case of a failure to avail of the same, the financial effect may be
quantified.
13.1.6 Documents called Snag Report and Minutes of the Fortnightly Meetings
required to be prepared for every work. All parties may scrutinize the same for audit
observations. It may be seen whether on completion of the works, the contractors have
supplied as built drawings or operating and maintenance manuals as required

14.1

Records to be examined:

14.1.1

Measurement Books (MBs)

The payments to contractors and others for work done, supplies made or services

rendered are made on the basis of measurements recorded in the MBs. The MBs form the
initial accounts record of the quantity of work done by a contractor. All measurements of
work are to be recorded in bound and page numbered, and certified numbered
Measurement Books. It may be ascertained that this requirement is being complied with.
The following may be examined:
1. Are the MBs being maintained as per the instructions contained therein?
2. Are the MBs so maintained that these can be produced in a court of law as
conclusive evidence?
3. Have the measurements recorded by sub/junior engineers been test checked by
the Engineer?
14.1.2 Interim Payment Certificates (IPCs)
14.1.2.1 The following may be examined:
1. Whether the measurements recorded in MBs have been verified before making
payments of bills of contractors/ suppliers.
2. Whether the full rates, as per agreement, have been allowed only where the
quality of work done or supplies made conforms to the specifications.
3. In cases of supply, whether the stores have been received and found in good
condition before making payment.

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4. In case payment has been permitted only on production of dispatch document,

whether it has been treated as advance payment against the final settlements on
receipt of supply.
5. Whether the payments for work done are being made within the stipulated time.
Are there any delays attracting penal interest?
6. Whether both the quantity and amount of each item of work / supply are being
shown separately in the bill, except in cases of advance payment for work done
but not measured.
7. Whether the rates have correctly been mentioned in the IPCS and there are no
variations between these rates and those of BOQ
8. Whether proper documentation / notes for supplemented items/new items of
deviations are on record.
9. Whether recoveries on account of statutory taxes/duties have been properly
effected.
10. Whether action has been taken on quality control reports and any recovery
proposed for non-conformity has been made.
11. Whether full verification of price escalation payments with reference to the price
escalation indices has been carried out.
12. Whether the cost of such materials on which secured advances have been paid
have been excluded from the price escalation claims, if claimed, as the
contractor could have already purchased the material much earlier.
13. Whether price escalation for the payments in foreign currency has been linked to
the price indices of the relevant country/exchange rate.
14. Before examining the IPC, the relevant portion of the contract pertaining to BOQ
may be seen and the quantity of work done may be examined with respect to the
quantity as per BOQ.
15. Whether the work executed has exceeded the BOQ without proper authority
16. Whether variations in the contract execution have been admitted for payment
only after approval by the competent authority as per the delegation of powers.
17. Whether each item has been examined only and the variations are seen with
respect to each one of them and whether the quantities mentioned in the IPC
have been crosschecked with the quantity is measured actually as per the MBs.
18. Whether the price adjustment claimed in the IPC has been examined with
respect to the documentary evidence submitted in support of the claim, and also
whether the relevant clause of the contract for calculation of price adjustment
has been referred to for seeing the method of calculation and indexing of
escalation.

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19. Whether, the price adjustments allowed on provisional basis in the absence of
the latest indices being available with the contractor and NHAI, have been
subsequently adjusted
20. Whether the extent of such provisional payment has been verified with respect
to their subsequent approval by the NHAI.
21. Whether the retention money has been calculated on the value of work done
during the month plus price adjustment plus varied works.
22. Whether the recovery of mobilization and equipment advance has been made
from the IPCs as per the contract and the rate at which the same is to be
recovered
23. Whether the recoveries against Sales Tax and Income Tax have been calculated
on the gross amount of the invoice including secured advance
24. Whether the Engineer has submitted the complete IPC in accordance with the
relevant clause of the contract as early as possible, leaving reasonable time for
scrutiny by NHAI to process the payment proposal and considering the time
specified in the contract for the balance amount payable to the contractor.
25. Whether the engineer/contractor has submitted the following documents, duly
signed by the authorized representative of the consultant for monthly payments,
covering the following aspects

Certificate/monthly statement.

Bill-wise summary in accordance with the relevant clause of the contract

covering provision as per contract, quantity executed, etc.

An account of material brought to site supported with vouchers, material

consumed, etc.

Summary of price adjustment, etc.

Details of variations, etc.

A final summary sheet showing the amounts due on various accounts,

recoveries and deductions, etc.

14.1.2.2

In addition to the above, following may also be examined.

1. Whether the IPCs have been submitted strictly on a monthly basis instead of
clubbing the work done in 2-3 months.
2. Whether the work has been executed during the validity period of the contract.
3. Whether approval of the Engineer/competent authority has been obtained before
execution of extra quantities or extra items.

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4. Whether the extra quantities/items as approved by the Engineer/competent authority

have been properly reflected in the detailed statement enclosed with the IPC.
5. Whether the price escalation has been admitted on the value of work done during
the month, based on the current indices available or provisional indices as
prescribed
6. Whether the payment of advance for material brought to the site and the adjustment
of advance for material incorporated in the works has been recommended by the
Engineer strictly in accordance with the provisions of the contract.
7. Whether recovery for retention money has been made at the rates and subject to
the ceiling specified in the contract.
8. Whether all deductions of taxes at source, in Income Tax, Sales Tax (Works
Contract Tax), Royalty, if any have been made.
9. Whether recovery towards liquidated damages has been made, wherever
applicable.
10.

Whether all recoveries based on the Chief Technical Examiners (CTE)

observations or as awarded by the Arbitrator have been made.

11. Whether both gross and net amounts payable have been determined in accordance
with the relevant clause of the contract and have been expressed in the currencies
in which the payments are to be made, in accordance with the contract.
12. Whether any payment has been made where the net amount of the IPC, after all
retentions and deductions, was less than the minimum amount of IPC as specified in
the contract.
13. Whether the amount has been paid after proper arithmetical calculation.
14. Whether any amount withheld or disallowed has been intimated to the Engineer and
the Contractor along with reasons for the same.
15. Whether any payment has been made pending the settlement of previous IPC
16. Whether more than one payment has been made against an IPC for a month
17. Whether the contractor has taken adequate insurance coverage in accordance with
the relevant clauses of the more specifically the insurance in respect of the plant
and equipments.
18. Whether the contractor has supplied copies of invoices or other documents to the
Engineer to demonstrate that the advance payment has been utilized only to pay for
equipment, plant and mobilization expenses required specifically for the execution of
the works.
19. Whether all other conditions stipulated in the contract have also been duly complied
with.

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The measurements shown in the IPCs, forming the basis for calculating the amount
payable to the civil contractor may be tallied with the corresponding MBs, for possible
discrepancies.
14.1.3 Schedule Of Rates
14.1.3.1 The following may be examined:
1. Does the agreement contain a reference to a Schedule of Rates (SOR)?
2. Whether the SOR is being used to facilitate preparation of estimates and to serve as
a guide in settling rates in connection with contract agreements.
3. Are the rates for variation items that cannot be derived from the agreement being
derived from the SOR or not?
4. Have these rates been correctly worked out with the help of the relevant SOR?
14.1.3.2 In case the project work has already been completed or substantially completed,
then the following may be seen:
1.

Whether any major item has been included in DPR and also executed which
otherwise could have been avoided (being not required without any hindrance to the
project) to save the project cost to that extent.

2.

Whether any major item included in the DPR was not executed but in its place, a
large number of extra items were executed at higher rates just to extend benefit to
the contractors.

14.1.3.3 The following may also be scrutinized:

1.

Extra items executed or the variances in work along with their approvals.

2.

The reasons furnished for the time and cost overruns. In case, reasons are not
convincing, the point may be highlighted stating who was responsible for the time
and cost overruns and their impact on the project and other social benefits

!4.1.4 Advance Payments

NHAI makes advance payments to contractors of the amounts stated in the Contract Data
by the dates stated in the Contract Data, against provision by the contractors of
unconditional bank guarantees in a form and by a bank acceptable to NHAI in amounts and
currencies equal to the advance payment.
14.1.5 Mobilization Advance
The following points may be examined in audit:
1. Has the advance been given subject to compliance of the conditions laid down in the
contract?

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2. Has the performance security bank guarantee (BG) been submitted in accordance
with relevant clause of the contract and the conditions above have been complied
with?
3. Has the letter for commencement of works been issued? If not, has the relaxation by
the competent authority been obtained?
4. Has the mobilization advance been claimed within the period as specified in the
contract? If not, has the relaxation by the competent authority been obtained?
5. Has the Supervision Consultant recommended the claim of the contractor for
advance?
6. Is the BG for the requisite amount (generally 10 per cent of the contract) and in the
requisite currency as stated in the contract?
7. Is the BG valid until the advance amount has been repaid or until completion of the
contract or any other period, as may be prescribed under the relevant clause of the
contract?
8. Has the BG been issued in the name of the contractor?
9. Is the BG unconditional and has it been issued by a bank as specified in the
contract?
10. Has the confirmation regarding the issuance of the BG been obtained from the
issuing bank?
11. In case more than one BG has been accepted, have the provisions contained in the
relevant clause of the contract been complied with?
12. Has the contractor submitted an invoice claiming the advance?
13. Has the contractor taken out adequate insurance coverage in accordance with the
relevant clauses of the contract? The adequacy of such coverage, including both
value and period of cover may be examined.
14. Has the performance guarantee been received before release of mobilization
advance? The validity of the same has to be examined as per the provision of the
contract, which normally extends to 12 months after the defect liability period.
15. Has the end use of mobilization advance been verified with respect to the
documents produced by the contractor and also the time limit within which the same
can be utilized?
16. Has the performance guarantee been received before release of mobilization
advance and is the validity of the same as per the provision of the contract, which is
normally 12 months after the defect liability period? Extension of the validity of the
bank guarantee may also be examined with respect to extension of the time period
of the contract.

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17. Release of mobilization advances may be examined with respect to the time limits
within which the contractor should have applied for them then and the bank
guarantees furnished against the same.

Also the maximum number of bank

guarantees, which may be accepted, may be examined. Extension of the validity of

the bank guarantee may be examined too with respect to the extended time period
of the contract.
18. Examine delays in recovery of interest on mobilization advance and indirect losses
suffered by the Government
19. Verify whether the imported equipment, which was exempted from customs duty has
been actually used for the work throughout.
14.1.6 Equipment Advance
As per the normal provisions, equipment advance is to be paid at 90 per cent of the value of
the new machinery or 90 per cent of the depreciated value of the old machinery, subject to
a maximum of 5 per cent of the contract value. Any additional equipment advance has to be
objected to as it is in the nature of interest free advance.
The following further points may be examined in audit:
1. Has the letter for commencement of works been issued?
2. Has the contractor made the request for payment of advance within the period
specified in the contract?
3. Are the plant and equipment considered by the Engineer to be necessary for the
works?
4. Have the plant and equipment been brought to site?
5. Are the plant and equipment in working order?
6. Has the Engineer specifically recommended for payment of equipment advance
covering the aforesaid aspects as required under the contract?
7. Are there legible copies of the invoices of the equipments to support the claim?
8. In case of old equipments, if the copies of the invoices are not available, has a
certificate from a chartered accountant or any other acceptable evidence duly
indicating the purchase price, year/date of purchase, depreciated value, etc., been
obtained?
9. Was any advance given to the civil contractor on obsolete and outlived equipments.
10. Has any advance been granted on any piece of the plant and equipment with a
value less than the amount specified in the contract.
11. For the plant and equipment where advance is granted, is there any check to
monitor its continued presence and working at site, after once bringing to site. Also,

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is such machinery hypothecated to NHAI or a note about advance given is taken in

its registration document
12. Regarding release of equipment advance, the facts may be verified with respect to
the old and new equipment also financed by the financial institutions. Where the
invoice indicates the value in any foreign currency, the basis for conversion may be
examined.
13. In case a certificate has been issued by NHAI/MORTH for availing exemption from
Customs duty or Central Excise, no advance can be permitted on such duty
component.
14.1.7 Material Advance
14.1.7.1 NHAI makes advance payments in respect of materials intended for but not yet
incorporated in the works in accordance with the conditions stipulated in the contract data.
The following points may be examined in audit:
1. Has any advance of more than 75 per cent of invoice value for non-perishable
materials brought to site been paid?
2. Are the materials in accordance with the specifications for the works?
3. Have such materials been delivered to site?
4. Are the materials properly stored and protected against damage or deterioration to
the satisfaction of the Engineer?
5. Has the contractor stored the bulk material in measurable stacks?
6. Are the contractors records of the requirements, orders, receipt and use of
materials kept in a form approved by the Engineer and are such records available
for inspection by the Engineer?
7. Has the contractor submitted the estimated value of the materials on site for the
purpose of valuation of the materials and provided evidence of ownership and
payment thereof?
8. Has the ownership of such materials been transferred to NHAI through indenture for
which the contractor has submitted an indemnity bond in an acceptable form?
9. Are the quantities of materials excessive and are they being used within a
reasonable time?
10. Has any advance payment been made to the contractor more than 28 days after
fulfillment of the above conditions? (This is not permissible).
11. Have the terms of repayment been adhered to?
14.1.8 Retention Money

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14.1.8.1 The following points may be examined in audit:

1. Has the retention money been calculated on the value of work done during the
month plus price adjustment plus varied works as per the General Provisions of the
Contract?
2. Has the retention money been released in accordance with the stipulations in the
agreement?
14.1.9 Performance Security
14.1.9.1 The following points may be examined in audit:
1. Has the LoA been issued by the NHAI for a contract price?
2. Has the contractor submitted the performance security BG within 28 days (or any
other date stated in the contract) of receipt of LoA? If not, has relaxation by the
competent authority been obtained?
3. Is the BG as per the format prescribed in the contract?
4. Is the BG for the requisite amount (say 10 per cent of the contract) and in the
requisite currency as stated in the contract?
5. Is the BG valid for the period prescribed (Generally, period for issue of notice +
period of commencement from issue of notice + project completion period + defect
liability period + 28 days)?
6. Have BGs been issued in the name of the contractor (in case of JVs, the BG should
be in the name of the JV)?
7. Is the BG unconditional?
8. Have the BGs been issued by the bank specified in the contract (generally by SBI or
its subsidiaries or any Indian nationalized bank or IDBI or ICICI or ICICI Bank or by
a foreign bank through a correspondent bank in India. BGs from any other bank are
to be expressly accepted by NHAI).
9. It needs to be found out as to in whose custody the Bank Guarantee is kept and who
exactly is responsible to watch its expiry date and timely renewal.
10. Has confirmation from the bank been obtained?
14.1.10 Claims, delays, Variations and Arbitration
1. Claims are due to what (shortcomings in documents, correspondence, site
conditions)

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2. Whether any action/ recovery from PMC has been done when he is at fault or in
cases where NHAI has done in appeal before DRB/arbitrators decision has gone
against NHAI.
3. What are the criteria for nomination of members of DRB and arbitrators by the
NHAI?
4. Examine the reasons given in the contractors application for extension of time and
if the delay is attributable to the Engineer (for not giving drawings, payments,
decisions, etc. in time), no payment should be permitted to the Engineer (for not
giving drawings, payments, decisions, etc. in time), no payment should be permitted
to the Engineer for continuation of his service beyond the stipulated completion
date.
5.

Verify whether, before ordering the variations, the consultants have sought prior
approval of NHAI.

6.

Is there any technical scrutiny or test checking done by PD for the measurements
submitted by the Engineer? What is the system for long term accountability for over
measurements?

7. While examining the extra items and variations, it would be critically examined
whether really such extra items and variations were unforeseeable by the consultant
at the time of entering into the contract.

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APPENDIX-I
QUALITY CONTROL CHECKS FOR VARIOUS ACTIVITIES OF ROAD CONSTRUCTION

1.1 MATERIALS
1.1.1 Soil from borrow area:
Borrow area is selected and soil is tested at the start of the project and at specified
intervals. The source is mutually agreed to between Contractor and Client/ Supervision
Consultant on site. The source can also be identified on the basis of past experience.
Testing is meant to verify that the material coming from the borrow area conforms the to
specifications. The tests required for the soil to meet the specification are given in Table-1
test. The testing and acceptance should meet the Q/A procedure and documented.
1.1.2 Aggregates:
Following tests are conducted on the aggregates at beginning of the project and at every
source change to meet the required specification before these are accepted. Tests are
given in Table-2. Sampling and testing should be done daily at production facility. The
routine tests should be carried out as per agreed Q/A plan.
Table1 Test on the Borrow Soil
Sr. No
1.
2.
3.
4.
5.
6.

Test

Test method

Gradation*/ Sand
IS: 2720 Part IV
content
Plasticity Index
IS: 2720 Part V
Proctor Test
IS: 2720 Part VIII
CBR**on a set of 3
IS: 2720 Part XXVII
specimen
Deleterious
IS: 2720 Part II
constituents
Moisture content
IS: 2720 Part II
* If specification call for this test

Minimum desirable
frequency
1-2 test /3000 m3 of
each type of soil
-do-do1 test /3000 m3
or change of source
1 test /250 m3
1 test /250 m3

107

** For the purpose of design only unless otherwise specified

Table-2 Requirements of Coarse Aggregate

Sr.
No.
1.

2.
3.

Test
*Los Angeles Abrasion
Value
Or
* Aggregate Impact value
Combined Flakiness and
Elongation Indices ***
(Total)
Water Absorption

Test method

Frequency

IS: 2366
Part 4

Requirement
40 per cent
(Max)

1 test /250 m3
IS: 2366
Part 4 or
IS: 5460**
IS: 2366
Part 1
IS: 2366
Part 3

30 per cent
(Max)
1 test /100 m3

30 per cent
(Max)

Per source

Max. 2 per
cent

Aggregate may satisfy requirements of either of the two tests.

**
Aggregate like brick metal, kankar, laterite, etc. which get softened in
presence
of water shall be tested for Impact value under wet conditions in
accordance with
IS: 5460
***
The required flakiness index and elongation index shall be enforced only in
case of crushed broken stone and crushed slag.
1.1.3

Factory manufactured items like cement, lime and bitumen

1.1.3.1 Cement :
The cement for cement stabilization shall comply with the requirements of IS: 269, 455 or
1489. The cement may be obtained preferably from the manufacturer with ISO
certification.
1.1.3.2 Lime
Lime for lime-soil stabilization work shall be commercial dry lime slaked at site at or preslaked limed delivered to the site in suitable packing. The lime shall have purity of not less
than 70 per cent by weight of Quicklime (CaO) when tested in accordance with IS: 1514.
1.1.3.3 Bitumen:
The bitumen shall be an appropriate type complying with the relevant Indian Standard (IS)
as defined in appropriate specification, or as otherwise specified. Guidelines on the
selection of bitumen are as under:

108

a. For bituminous premix carpet, Choice is govern by climatic and intensity of traffic.
i. Grade 30/40 for areas where difference between maximum and
minimum atmospheric temperatures is less than 25 C and
traffic intensity is greater than 1500 commercial vehicles per
day. For traffic intensity less than 1500 commercial vehicles per
day, Grade 50/60 is preferred.
ii. Grade 50/60 for areas where difference between maximum and
minimum atmospheric temperatures is more than 25 C and
traffic intensity is greater than 1500 commercial vehicles per
day. For traffic intensity less than 1500 commercial vehicles per
day, Grade 80/100 may be used. For roads with very heavy
traffic greater than 4500 commercial vehicles per day, such as
metropolitan city roads, Grade 30/40 is preferred.
Iii Grade 80/100 may be used in high altitude and snow bound
regions, irrespective of traffic intensity consideration.
b. For bituminous macadam and penetration macadam as also built-up
spray grout, Grade 30/40 (For hot climate ) and 60/70or 80/100 for
other climate are suggested.
(b) For dense-grade bituminous concrete, a more viscous grade like 60/70 can
withstand stress of heavier wheel loads better than a less viscous grade of
80/100. Similarly paving bitumen grade 60/70 is more advantageous for roads
with large number of repetitions of wheel loads like expressway, urban roads,
factory roads etc. High stability requirement cannot be met effectively by less
viscous bitumen.
(c)

A more viscous grade bitumen is advantageous in reducing stripping of

bitumen film from aggregates in the presence of water.

Manufactures tests samples of bitumen are checked initially before acceptance and than
regular testing is conducted at specified frequencies during construction. The bitumen may
be obtained preferably from the manufacturer with ISO certification.
2.1 CONSTRUCTION OF EMBANKMENT/SUBGRADE
2.1.1 Embankment/subgrade
The material used in the embankment/subgrade shall be soil, moorum, gravel, a mixture of
these or other approved material.
Material considered unsuitable for embankment are:
i.
ii.
iii.
iv.

Material from swamp, marsh and bogs;

Peat. Log, stump[, and perishable material ; any soil classified as OL,OI,OHOR
Pt. In accordance with 1498;
Materials susceptible to spontaneous combustion;
Material in frozen condition;

109

v.
vi.

Clay having liquid limit exceeding 70 and PI exceeding 45; and

material with salts resulting in leaching in the embankment.

Ordinarily, only the material satisfying the density requirements in the Table 3 shall be
used in construction of embankment/subgrade.

Table 3 Density requirements for embankment/subgrade

Sr. No.

Type of Work

1.

Maximum laboratory dry

unit weight when tested as
per IS: 2720 (Part 8)
Not less than 15.2 kN/cu.m.

Embankment up to 3 m height, not

subjected to extensive flooding
2.
Embankment exceeding 3m height or
Not less than 16.0 kN/cu.m.
embankment of any height subjected to
long period of inundation
3.
Subgrade and earth shoulders/verges/
Not less than 17.5kN/cu.m.
backfill
This table is not applicable for lightweight fill material e.g. cinder, fly ash etc.
Compaction requirements for Embankment and subgrade are given in Table 4.
Table 4. Compaction requirements for Embankment and subgrade
Sr. No.

1.
2.
3.

Type of Work

Subgrade and earth shoulders

Embankment
Expansive Clays
Subgrade and 500mm
portion just
below the subgrade
Remaining portion of embankment

Relative compaction as
percentage of maxi. laboratory
dry unit weight when tested as
per IS: 2720 (Part 8)
Not less than 97
Not less than 95
Not allowed
Not less than 90

The contractor shall at least 7 working days before commencement of compaction submit
the following to Engineers for approval:
i.

The values of MDD and optimum moisture content in accordance

with IS: 2720 Part 8, as the case may be, appropriate for each of the
fill material he intends to use.
ii.
A graph of density plotted against moisture content from which each
of the values in (i) above of maximum dry density and optimum
moisture content were determined.
iii.
The dry density-moisture content CBR relationship for light,
intermediate and heavy compactive efforts (light corresponding to IS:
2720 Part 7a and heavy corresponding to IS: 2720 Part 8 and
intermediate in-between two) for each of the fill materials he intended
to use in the subgrade.
It shall be ensured that the subgrade material when compacted to the density requirements
shall yield the designed CBR value.

110

Measurement of work: All the earth work is measured in cu.m. Scarifying existing
granular /bituminous road surface shall be measured in square metres.
Rate: The contract unit rate for the item of embankment and subgrade construction shall
be payment in full for carrying out the required operation including full compensation for :
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.

xi.
xii.
xiii.

Cost of arrangement of land as source of supply of materials of required quantity

for construction unless provided otherwise in the contract;
Setting out;
Compacting ground supporting embankment/subgrade except where removal
and replacement of suitable materials or loosening and recompacting is
involved;
Scarifying or cutting continuous horizontal 300 mm wide on the side slopes of
existing embankment and subgrade as applicable;
Cost of watering or drying of material is borrow areas and/or embank and
subgrade during construction as required.
Spreading inlayers, bringing to appropriate moisture content and compacting to
specification requirement;
Shaping and dressing top and slopes of the embankment and subgrade
including rounding of corners;
Restrict working at sites of structures;
Working on narrow width of embankment and subgrade;
Excavation in all soils from borrow pits/designated borrow areas including
clearing and grubbing and transporting the materials to embankment and
subgrade site with all lifts and leads unless otherwise provided for in the
Contract.
All labour, materials, tools, equipment and incidentals necessary to complete the
work to the specification.
Dewatering; and
Keeping the embankment/ completed formation free of water.

3.1 SUB-BASE AND BASE COURSES

3.1 .1 Granular:
The material used for granular sub-base shall conform to one of the three grading of IRC for
closed graded granular sub-base OR coarse closed graded granular sub-base and it should
be free from organic and deleterious constituents.
Table 5 CBR values for granular sub base

Closed graded granular

sub-base
OR
Coarse closed graded
granular sub-base

Grading I

CBR value for

Grading II

Grading III

30

25

20

111

The material shall have a 10 per cent fines value of 50kN or more (for sample in soaked
condition). Water absorption by coarse aggregate should be less than 2 per cent if more
than soundness test shall be carried out as per IS : 383. The liquid limit and plasticity
index of the material passing 425 micron sieve for all the grading shall not be more than 25
and 6
Degree of compaction shall be at least 98 percent of maximum dry density.
Table 6 Quality control tests for granular sub-bases.
Test
Gradation
Atterberg limits
Moisture content prior to compaction
Density of the compacted layer
Deleterious constituent
CBR

Frequency (Min.)
1 test /200 m3
1 test /200 m3
1 test /250 m2
1 test /500 m2
As required
-do-

Measurement of Payment : Granular sub-base shall be measured as finished work in

position in cubic metres. The protection of the edges of granular sub-base extended over
the full formation as shown in the drawing shall be considered identical to the work of
providing granular sub-base and as such no extra payment shall be made for the same.
Rate: The contract unit rate for granular sub-base shall be payment in full for carrying out
the required operation including full compensation for :
i.
ii.
iii.
iv.
v.

making arrangement for traffic except for initial treatment to verges,

shoulders and construction diversions;
furnishing all materials to be incorporated in the work including all royalties,
fees rents where necessary and all leads and lifts;
all labour, tools, equipment and incidental to complete the work to the
specification.
Carrying out the work in part widths of road where directed and
Carrying out the required tests for quality control

3.1.2. Lime stabilization:

Soil used for the stabilization shall be local clayey soil having plasticity index greater than 8.
Lime for the soil stabilization work shall be commercial dry lime slaked at site or pre-slaked
lime delivered to the site is suitable packing. The purity of lime shall have purity of not less
than 70 per cent by weight of Quicklime (CaO) when test in accordance with IS: 1514.
Degree of compaction shall be at least 98 percent of maximum dry density.
Table - 7 Quality control tests for lime stabilized sub-base
Test
Quality of lime
Lime content
Degree of pulverisation
CBR or unconfined
compressive strength test on

Frequency (Min.)
1 test for each consignment subject to a
minimum of 1 test/5 tonne
Regularly, through procedural checks
Periodically as considered necessary
As required

112

a set of 3 specimen.
Moisture content prior to
compaction
Density of the compacted
layer
Deleterious constituents

1 test /250 m2
1 test /500 m2
As required

Measurement of Payment : Lime stabilized soil sub-base shall be measured as finished

work in position in cubic metres.
Rate: The contract unit rate for lime stabilized sub-base shall be payment in full for carrying
out the required operation including full compensation for :
vi.
vii.
viii.
ix.
x.

making arrangement for traffic except for initial treatment to verges,

shoulders and construction diversions;
furnishing all materials to be incorporated in the work including all royalties,
fees rents where necessary and all leads and lifts;
all labour, tools, equipment and incidental to complete the work to the
specification.
Carrying out the work in part widths of road where directed and
Carrying out the required tests for quality control

3.1.3 Cement stabilization

The material used for cement stabilization shall be soil including sand and gravel, laterite,
kankar, brick aggregate, crushed rock or slag or any combination of these.
For sub-base courses, the material shall have a uniformity coefficient not less than 5.
For use in base course, the material shall have a liquid limit not greater than 45 and
plasticity index not greater than 20 per cent.
Table 8 Quality control tests for cement stabilized sub-base
Test
Quality of cement
Cement content
Degree of pulverisation
CBR or unconfined
compressive strength
test on a set of 3
specimen.
Moisture content prior
to compaction
Density of the
compacted layer
Deleterious
constituents

Frequency (Min.)
1 test for each consignment subject to a
minimum of 1 test/5 tonne
Regularly, through procedural checks
Periodically as considered necessary
As required
1 test /250 m2
1 test /500 m2
As required

Measurement of Payment : Cement soil sub-base shall be measured as finished work in

position in cubic metres.

113

Rate: The contract unit rate for cement stabilized sub-base shall be payment in full for
carrying out the required operation including full compensation for :
xi.
xii.
xiii.
xiv.
xv.

3.1.4

making arrangement for traffic except for initial treatment to verges,

shoulders and construction diversions;
furnishing all materials to be incorporated in the work including all royalties,
fees rents where necessary and all leads and lifts;
all labour, tools, equipment and incidental to complete the work to the
specification.
Carrying out the work in part widths of road where directed and
Carrying out the required tests for quality contro

Water Bound Macadam (WBM)

Coarse aggregates should meet the requirements in given in the Table 2 and shall
conform to one of the grading i.e. Grading 1, 2 and 3 as specified.
Screenings to fill the voids in the aggregates shall have liquid limit and plasticity index
below 20 and 5 respectively and fraction passing 75 micron sieve shall not exceed 10 per
cent. Screenings shall conform the grading of class A or B as specified.
Table 9 Quality test for WBM
Test
Gradation
Aggregate impact value
Combined Flakiness and Elongation Indices
Atterberg limits of binding material
Atterberg limits of the portion of aggregate
passing 425 micron sieve

Frequency (Min.)
1 test /100 m3
of aggregate
1 test /200 m3
1 test /200 m3
of the aggregate
1 test per 25 m3
of the aggregate
1 test /100 m3
of aggregate

Measurement of Payment : Water bound macadam shall be measured as finished work in

position in cubic metres.
Rate: The contract unit rate for water bound macadam sub-base shall be payment in full
for carrying out the required operation including full compensation for :
xvi.
xvii.
xviii.
xix.
xx.
xxi.

making arrangement for traffic except for initial treatment to verges,

shoulders and construction diversions;
furnishing all materials to be incorporated in the work including all royalties,
fees rents where necessary and all leads and lifts;
all labour, tools, equipment and incidental to complete the work to the
specification.
Carrying out the work in part widths of road where directed and
Carrying out the required tests for quality control
Arrangement of water used in the work

114

3.1.5

Wet Mix Macadam (WMM)

Coarse aggregates should meet the requirements in given in the Table 2 and shall
conform to the grading specified by IRC for wet mix macadam. Plasticity index of finer
material passing 425 micron shall not exceed 6.

Table 10 Quality control tests for WMM

Test
Gradation
Aggregate impact value
Combined Flakiness and
Elongation Indices
Atterberg limits of the
portion of aggregate
passing 425 micron sieve
Density of the compacted
layer

Frequency (Min.)
1 test /100 m3
of the aggregate
1 test /200 m3
1 test /200 m3
of the aggregate
1 test /100 m3
of aggregate
1 test /500 m3

Measurement of Payment : Wet Mix Macadam sub-base shall be measured as finished

work in position in cubic metres.
Rate: The contract unit rate Wet Mix Macadam sub-base shall be payment in full for
carrying out the required operation including full compensation for :
xxii.
xxiii.
xxiv.
xxv.
xxvi.

making arrangement for traffic except for initial treatment to verges,

shoulders and construction diversions;
furnishing all materials to be incorporated in the work including all royalties,
fees rents where necessary and all leads and lifts;
all labour, tools, equipment and incidental to complete the work to the
specification.
Carrying out the work in part widths of road where directed and
Carrying out the required tests for quality control

BITUMINOUS COURSES
Measurement of activities conducted to prepare the surface:
The work of filling the pot holes and cracks and scarifying the existing bituminous
surfaces is measured in square metres.
Profile corrective course shall be measured as the volume instructed and compacted in
position and is measured in cu.m.
Prime coat and tack coat are to be measured and paid for on a per square metre basis.

115

4.1.1 Prime coat

The choice of a bituminous prime shall depend upon the porosity characteristics of the
surface to be primed as classified in IRC : 16. Guidelines on viscosity and rate of
application is given in Table-11

Table 11 Range of Viscosity and Rate of application Prime Coat

Type of surface
Low porosity
Medium porosity
High porosity

Kinematic Viscosity
of Primer at 60 C
(Centistokes)
30-60
70-140
250-500

Quantity of liquid Bituminous

material per 10 sq.m (kg)
6 to9
9 to12
12 to 15

4.1.2 Tack coat

Binder used for tack coat shall be bitumen emulsion complying with IS: 8887 of a type and
grade as specified in the contract.
Tack coat shall be applied at the rate as specified in the contract or other wise as given in
the Table-12.
Table 12 Rate of application of Tack coat
Sr.
no.

Type of surface

i.
ii.
iii.
iv.

Normal bituminous surface

Dry and hungry bituminous surface
Granular surfaces treated with primer
Non bituminous surfaces
a)
Granular base (Not primed )
b)
Cement concrete pavement

Quantity of liquid
bituminous material
in Kg per sq.m.
area
0.2 to 0.25
0.25 to 0.30
0.25 to 0.30
0.35 to 0.40
0.30 to 0.35

Table -13 Quality control test for Prime coat/tack coat

SR.
No.
1.

Type of
construction
Prime coat/
Tack coat

Test
i. Quality of binder

Frequency (Min)
Number of test per lot
and tests as per IS:73 IS
217 and IS:8887 as
applicable

116

ii. Binder Temperature

At regular close interval

iii. Rate of spreading of

binder

1 test /500 sq. m and not

less than 2 tests per day

4.1.3 Bituminous Macadam

Bitumen Content shall be 3.1 to 3.4 % and 3.3 to 3.5 % by weight of total mixture for Gr. 1
and Gr. 2 respectively. Bitumen grade shall be 35 to 90. Appropriate bitumen content for
conditions in cooler areas of India may be up to 0.5 % higher subject ed to the approval of
the Engineer.
Coarse aggregate shall meet the Grading 1 or Grading 2 for Bituminous Macadam and
must the requirements given in Table 14 .
Table 14 Requirements for coarse Aggregate
Properties

Test

Standard

Specification
Max. 5 % passing
0.075 mm sieve
Maxi. 30 %

Cleanliness

Grain size analysis

IS : 2386 Part 1

Particle Shape

Flakiness and Elongation index

*(Combined)
Los Angles Abrasion Value
Aggregate Impact Value

IS : 2386 Part 1

Soundness
Sodium Sulphate
Magnisum Sulphate
Water absorption
Coating and stripping of Bitumen
Aggregate Mixtures
Retained Tensile Strength

IS : 2386 Part 5

Strength**

Maxi. 40 %
IS : 2386 Part 4
Maxi. 30 %

Durability
Water absorption
Stripping
Water
Sensitivity***

IS : 2386 Part 3
IS : 6241

Max. 12 %
Max. 18 %
Max. 2 %
Minimum retained
coating 95%
Min.80 %

AASHTO
T 238
* The elongation test is to be done only on non-flaky aggregate retained in
the sample.
** Aggregate may satisfy requirements of either of these two tests.
*** The water sensitivity test is only to be carried out if the minimum
retained coating in the
stripping test is less than 95%.

Fine aggregates: Fine aggregate shall consist of crushed or naturally material or

combination of two, passing 2.36 mm sieve and retained on 75 micron sieve.
Tack coat as detailed above.
Measurement for payment
Bituminous macadam shall be measured as finished work in cubic meters or by weight in
metric tones, where used ad regulating course or square metres at the specified thickness
as indicated in the contract or shown on the on the drawing, or as otherwise directed by the
Engineer.
Rate:

117

The contract unit rate for bituminous macadam shall be payment in full for carrying out the
required operation as specified. The rate shall include for, all component listed below;
i.

Making arrangement for traffic to clause 112 of MORTH except for initial
treatment to verge shoulder and construction of diversion;
Preparation of the surface to receive the material
Providing all materials to be incorporated in the work including arrangement for
stock yard, all royalties, fees, rent where necessary and all leads and lifts;
Mixing transporting laying, and compacting the mix as specified;
All labour, tools, equipment plant including installation of hot mix plant, power
supply unit and all machinery, incidental to complete the work to the
specification.
Carrying out the work in part widths of road where directed;
Carrying out the required tests for quality control
The rate shall cover the provision of bitumen at the rate specified in the contract,
with the provision that the variation in actual percentage of bitumen used will be
assessed and the payment adjusted according;
The rates for premix material are to include for all wastage in cutting of joints etc.
The rates are to include for all necessary testing, mix design, transporting and
testing of samples, and cores. If there is not a project specified laboratory, the
contractor must arrange to carry out all necessary testing at an outside
Laboratory, approved by the Engineer, and all costs incurred are deemed to be
included in the rate quoted for the material.
The cost of all plant and laying trails as specified to prove the mixing and laying
methods is deemed to be included in the contractors rate for the materials.

ii.
iii.
iv.
v.
vi.
vii
vii.
ix.
x.

xi.
Table - 15

Control test for Bituminous Macadam and their minimum frequency

Sr. No.
1

2
3
4

5
6

Test
Quality of Binder

Frequency (Min)
Number of samples per lot
and tests as per IS: 73,
IS;217 and IS:8887 as
applicable
Los Angles Abrasion Value
One test per 50 m3 of the
Aggregate Impact Value
aggregate
Flakiness and Elongation index One test per 50 m3 of the
(Combined)
aggregate
Stripping Value
Initially one set of 3
representative specimen
for each source of supply.
Subsequently
when
warranted by changes in
the quality of aggregates.
Water Sensitivity of the mix
---do---Grading of aggregate
Two tests per day per
plant both on the individual
constituent and mixed
aggregates from dryer
Water absorption of aggregate
Initially one set of 3
representative specimen
for each source of supply.
Subsequently
when
warranted by changes in

118

9
10
11
12
13

the quality of aggregates.

Soundness ( Sodium Sulphate and
Initially, one determination
Magnisum Sulphate
by each method for each
source of supply, then as
warranted by change in
the
quality
of
the
aggregate.
Per cent of fractured faces
When gravel is used, one
test per
50 m3 of
aggregate.
Binder content and aggregate Periodic,
subject
to
grading
minimum of two tests per
day per plant.
Control of temperature of binder and At regular close intervals
aggregate for mixing and of the mix
at the time of laying and rolling
Rate of spread of mixed material
Regular control through
checks of layer thickness
Density of the compacted layer
One test per 250 m2 of
area

4.1.4 Dense Bituminous Macadam

Bitumen Content shall be min. 4.0 % and min. 4.5 % by weight of total mixture for Gr. 1
and Gr. 2 respectively. Bitumen grade shall be 65 to 90
Coarse aggregate shall meet the Grading 1 or Grading 2 for Dense Bituminous Macadam
and must the requirements given in Table 16 .
Table 16 Requirements for coarse Aggregate
Properties
Cleanliness

Test
Grain size analysis

IS Code
IS : 2386 Part 1

Particle
Shape
Strength**

Flakiness and Elongation

index *(Combined)
Los Angles Abrasion Value
Aggregate Impact Value

IS : 2386 Part 1

Specification
Max. 5 % passing
0.075 mm sieve
Maxi. 30 %

IS : 2386 Part 4

Maxi. 35%

Durability

Soundness
Sodium Sulphate
Magnisum Sulphate
Water absorption

IS : 2386 Part 5

Coating and stripping of

Bitumen Aggregate
Mixtures
Retained Tensile Strength

IS : 6241

Maxi. 27 %

Water
absorption
Stripping

IS : 2386 Part 3

Max. 12 %
Max. 18 %
Max. 2 %
Minimum retained
coating 95%

Water
AASHTO
Min.80 %
Sensitivity***
T 238
* The elongation test is to be done only on non-flaky aggregate retained in the
sample.
** Aggregate may satisfy requirements of either of these two tests.

119

*** The water sensitivity test is only to be carried out if the minimum
retained coating in the
stripping test is less than 95%.
Fine aggregates: Fine aggregate shall consist of crushed or naturally material or
combination of two, passing 2.36 mm sieve and retained on 75 micron sieve. The fine
aggregate shall have a sand equivalent value of less than 50 when tested in accordance
with the requirement of IS:2720 Part 37.
Tack coat as detailed above.
Filler : The filler shall be graded within the limits as in Table 17 . Filler shall be free
from organic matter and have Plasticity index not greater than 4. PI requirement shall not
apply if filler is cement or lime
Table 17 Gradation of filler
IS Sieve (mm)
0.6
0.3
0.075

Cumulative per cent passing by weight of

total aggregate
100
95-100
85-100

Mixture shall meet the requirement in Table 18

Table - 18 Requirement of Dense Bituminous Macadam
Minimum stability ( kN at 600 C)
Minimum Flow (mm)
Maximum Flow (mm)
Compaction Level (Number of blow)
Per cent air voids
Per cent voids in mineral aggregate (VMA)
Per cent void filled with bitumen

9.0
2
4
75 blow on each or
the two faces of the
specimen
36
Refer Table - 19
65 75

The requirement for minimum per cent air void in mineral aggregate are setout in Table-19
Table- 19 Minimum per cent air voids in mineral aggregate.
Nominal Maxi. Particle Minimum VMA, per cent Related to
size*
Design Air Voids, Per cent
(mm)
3.0
4.0
5.0
9.5
14.0
15.0
16.0
12.5
13.0
14.0
15.0
19.0
12.0
13.0
14.0
25.0
11.0
12.0
13.0
37.5
10.0
11.0
12.0
*1. The nominal maximum particle size is larger than the first sieve

120

to retain more than 10 per cent.

2. Interpolate minimum voids in the mineral aggregate ( for design of air voids value
between
those listed. VMA)
Job Mix formula:

The contractor shall inform the Engineer in writing , at least 20 days

before the start of the work, of the job mix formula proposed for use in the works, and shall
give the following details:
i.
ii.

iii.
iv.
v.
vi.
vii.
viii.

Source and location of all materials;

Proportions of all materials expressed as follows where each is applicable:
a. Binder type, and percentage by weight of total mixture;
b.
Coarse aggregate/fine aggregates/mineral filler as percentage by
weight of total aggregate including mineral filler;
A single definite percentage passing each sieve for the mixed aggregate;
The individual grading of the individual aggregate fractions, and the proportion of
each in the combined grading.
The results of test enumerated as per requirement as obtained by the
contractor.
Where the mixture is a batch mixer, the individual weights of each type of
aggregate and binder
Test results of physical characteristics of aggregate to be used
Mixing Temperature and compacting temperature.

The permissible variation of the individual percentage of the various ingredients in the
actual mix from the job mix formula to used shall be with in the limits as specified in Table 20 .
Table 20 Permissible Variation from the Job Mix Formula
Description
Aggregate passing 19 mm sieve
or larger
Aggregate passing 13.2mm, 9.5
mm
Aggregate passing4.75 mm
Aggregate
passing2.36mm,1.18mm.0.6mm
Aggregate
passing0.3mm,
0.15mm
Aggregate passing 0.075mm
Binder content
Mixing temperature

Permissible variation
Base/binder
Wearing
course
course
8%
7%
7%

6%

6%
5%

5%
4%

4%

3%

2%
0.3%
10o C

1.5%
0.3%
10o C

Measurement for payment

121

Dense Bituminous macadam shall be measured as finished work in cubic meters or by

weight in metric tones, where used as regulating course or square metres at the
specified thickness as indicated in the contract or shown on the on the drawing, or as
otherwise directed by the Engineer.
Rate:
The contract unit rate for Dense bituminous macadam shall be payment in full for carrying
out the required operation as specified. The rate shall include for, all component listed
below;
viii.
ix.
x.
xi.
xii.
xiii.
vii
xiv.
xii.
xiii.

xiv.

Making arrangement for traffic to clause 112 of MORTH except for initial
treatment to verge shoulder and construction of diversion;
Preparation of the surface to receive the material
Providing all materials to be incorporated in the work including arrangement for
stock yard, all royalties, fees, rent where necessary and all leads and lifts;
Mixing transporting laying, and compacting the mix as specified;
All labour, tools, equipment plant including installation of hot mix plant, power
supply unit and all machinery, incidental to complete the work to the
specification.
Carrying out the work in part widths of road where directed;
Carrying out the required tests for quality control
The rate shall cover the provision of bitumen at the rate specified in the contract,
with the provision that the variation in actual percentage of bitumen used will be
assessed and the payment adjusted according;
The rates for premix material are to include for all wastage in cutting of joints etc.
The rates are to include for all necessary testing, mix design, transporting and
testing of samples, and cores. If there is not a project specified laboratory, the
contractor must arrange to carry out all necessary testing at an outside
Laboratory, approved by the Engineer, and all costs incurred are deemed to be
included in the rate quoted for the material.
The cost of all plant and laying trails as specified to prove the mixing and laying
methods is deemed to be included in the contractors rate for the materials.

The rates shall include the provision of bitumen at 4.25 per cent by weight of the total
mixture. The variance in actual per cent of bitumen used will be assessed and the payment
adjusted, up or down, accordingly.
Table 21 Control test for Dense Bituminous Macadam and their minimum
frequency
Sr.
No.
1
2
3
4

Test
Quality of Binder
Los Angles Abrasion Value/
Aggregate Impact Value
Flakiness and Elongation
(Combined)
Stripping Value

Frequency (Min)
Number of samples per lot and tests as
per IS: 73, IS;217 and IS:8887 as
applicable
One test per 50 m3 of the aggregate
index One test per 50 m3 of the aggregate
Initially one set of 3 representative
specimen for each source of supply.
Subsequently when warranted by

122

5.

6.
7.
8.
9.
10
11.

12..

13.
14.
15.
16
17
18
4.1.5

changes in the quality of aggregates.

Soundness ( Sodium Sulphate and
Initially, one determination by each
Magnisum Sulphate
method for each source of supply, then
as warranted by change in the quality of
the aggregate.
Water absorption of aggregate
Initially one set of 3 representative
specimen for each source of supply.
Subsequently when warranted by
changes in the quality of aggregates.
Sand equivalent test
As required
Plasticity index
---do---Polished stone value
As required, for Semi dense Bituminous
Concrete/ Bituminous Concrete
Per cent of fractured faces
When gravel is used, one test per 50
m3 of aggregate.
Mixed grading
One set of tests on individual
constituents and mixed aggregate from
the dryer for each 400 tonnes of mix
subject to a minimum of two tests per
plant
Stability of Mix
For each 400 tonnes of mix produced ,
a set of 3 Marshall specimen to be
prepared and tested for stability. Flow
value, density and void content
subjected to a minimum of two sets
being tested per plant per day
Water sensitivity of mix (Retained Initially one determination by each
Tensile strength)
method for each source of supply, then
as warranted by change in the quality of
aggregates.
Swell test on the mix
As required for the Bituminous
Concrete
Control of temperature of binder, At regular intervals
aggregates in dryer and mix at the
time of laying and rolling
Control of binder content and One test for each 400 tonnes of mix
grading of the mix
subjected to a minimum of two test per
day per plant
Rate of spread of mixed material
Regular control through checks on the
weight of mixed material and layer
thickness
Density of the compacted layer
One test per 200 m2 of area
Semi dense bituminous concrete

Bitumen : Bitumen Content shall be min. 4.5 % and min. 5.0 % by weight of total
mixture for Gr. 1 and Gr. 2 respectively. Bitumen grade shall be 65, only in exceptional
circumstances, 80/100 penetration grade may be used as approved by the Engineer.
Coarse aggregate shall meet the Grading 1 or Grading 2 for Semi Dense Bituminous
Concrete and must the requirements as given in Table 22 .

123

Table 22 Requirements for coarse Aggregate

Properties
Cleanliness

Test
Grain size analysis

Particle
Shape
Strength**

Flakiness and Elongation

index *(Combined)
Los Angles Abrasion
Value
Aggregate Impact Value
Polished stone value

Polish
Durability
Water
absorption
Stripping

Soundness
Sodium Sulphate
Magnisum Sulphate
Water absorption

IS : 2386 Part 1
IS : 2386 Part 1

Specification
Max. 5 % passing
0.075 mm sieve
Maxi. 30 %
Maxi. 35%

IS : 2386 Part 4
BS : 812 Part
114
IS : 2386 Part 5
IS : 2386 Part 3

Maxi. 27 %
Mini. 55
Max. 12 %
Max. 18 %
Max. 2 %

Coating and stripping of

IS : 6241
Minimum retained
Bitumen Aggregate
coating 95%
Mixtures
Water
Retained Tensile
AASHTO
Min.80 %
Sensitivity***
Strength
T 238
* The elongation test is to be done only on non-flaky aggregate retained in the
sample.
** Aggregate may satisfy requirements of either of these two tests.
*** The water sensitivity test is only to be carried out if the minimum
retained coating in the
stripping test is less than 95%.
Filler : The filler shall be graded within the limits as in Table 23 . Filler shall be free
from organic matter and have Plasticity index not greater than 4. PI requirement shall not
apply if filler is cement or lime. Where aggregate fails to meet the requirement of water
sensitivity test then 2 percent by total weight of aggregate, of hydrated lime shall be added
without additional cost
Table - 23
IS Sieve (mm)
0.6
0.3
0.075

Gradation of filler
Cumulative per cent
passing by weight of
total aggregate
100
95-100
85-100

Mixture shall meet the requirement as given in Table 24.

124

Table - 24 Requirement of Semi Dense Bituminous Concrete

Minimum stability ( kN at 600 C)
Minimum Flow (mm)
Maximum Flow (mm)
Compaction Level (Number of blow)
Per cent air voids
Per cent voids in mineral aggregate (VMA)
Per cent void filled with bitumen

8.2
2
4
75 blow on each or
the two faces of the
specimen
35
Refer Table - 19
65 78

The permissible variation of the individual percentage of the various ingredients in the
actual mix from the job mix formula to used shall as per Table - 20 .
Measurement for Payment : As given Dense bituminous Macadam
Rate: Rate shall be in accordance as given for Dense bituminous Macadam. The rates
shall include the provision of bitumen at 4.75 per cent by weight of the total mixture. The
variance in actual per cent of bitumen used will be assessed and the payment adjusted, up
or down, accordingly.
Control tests for Semi Dense Bituminous Concrete and their minimum frequency shall be
as per Table 22.
4.1.6 Btuminous Concrete
Bitumen Content shall be min. 5.0 6.0 % and min. 5.0 7.0 % by weight of total mixture
for Gr. 1 and Gr. 2 respectively. Bitumen grade shall be 65.
Coarse aggregate shall meet the Grading 1 or Grading 2 for Dense Bituminous Macadam
and meet the requirements given in Table 25 .
Table 25 Requirements for coarse Aggregate
Properties
Cleanliness

Test
Grain size analysis

Particle
Shape
Strength**

Flakiness and Elongation

index *(Combined)
Los Angles Abrasion
Value
Aggregate Impact Value

IS : 2386 Part 1
IS : 2386 Part 1

Specification
Max. 5 % passing
0.075 mm sieve
Maxi. 30 %
Maxi. 30%

IS : 2386 Part 4
Maxi. 24 %

125

Polish

Polish stone value

Durability

Soundness
Sodium Sulphate
Magnisum Sulphate
Water absorption

Water
absorption
Stripping

BS: 812
Part114
IS : 2386 Part 5
IS : 2386 Part 3

Min 55
Max. 12 %
Max. 18 %
Max. 2 %

Coating and stripping of

IS : 6241
Minimum retained
Bitumen Aggregate
coating 95%
Mixtures
Water
Retained Tensile
AASHTO
Min.80 %
Sensitivity***
Strength
T 238
* The elongation test is to be done only on non-flaky aggregate retained in the
sample.
** Aggregate may satisfy requirements of either of these two tests.
*** The water sensitivity test is only to be carried out if the minimum
retained coating in the stripping test is less than 95%.
Fine aggregates: Fine aggregate shall consist of crushed or naturally material or
combination of two, passing 2.36 mm sieve and retained on 75 micron sieve. The fine
aggregate shall have a sand equivalent value of less than 50 when tested in accordance
with the requirement of IS:2720 Part 37.
Tack coat as detailed above.
Filler : The filler shall be graded within the limits as in Table 26. Filler shall be free from
organic matter and have Plasticity index not greater than 4. PI requirement shall not apply if
filler is cement or lime. Where aggregate fails to meet the requirement of water sensitivity
test then 2 percent by total weight of aggregate, of hydrated lime shall be added without
additional cost

Table - 26 Gradation of filler

IS Sieve (mm)
0.6
0.3
0.075

Cumulative per cent

passing by weight of
total aggregate
100
95-100
85-100

Mixture shall meet the requirement as given in Table 18 & 19, with one extra test. Loss
of stability on immersion in water at 60 C (ASTM D1075) Mini. 75 % retained strength.
Job Mix formula : Job Mix formula: The contractor shall inform the Engineer in writing , at
least 20 days before the start of the work, of the job mix formula proposed for use in the
works, and shall give the following details:
ix.
x.

Source and location of all materials;

Proportions of all materials expressed as follows where each is applicable:
a. Binder type, and percentage by weight of total mixture;

126

b.
xi.
xii.
xiii.
xiv.
xv.
xvi.

Coarse aggregate/fine aggregates/mineral filler as percentage by weight

of total aggregate including mineral filler;
A single definite percentage passing each sieve for the mixed aggregate;
The individual grading of the individual aggregate fractions, and the proportion of
each in the combined grading.
The results of test enumerated as per requirement as obtained by the
contractor.
Where the mixture is a batch mixer, the individual weights of each type of
aggregate and binder
Test results of physical characteristics of aggregate to be used
Mixing Temperature and compacting temperature.

The permissible variation of the individual percentage of the various ingredients in the
actual mix from the job mix formula to used shall be with in the limits as specified in Table 27 .
Table 27 Permissible Variation from the Job Mix Formula
Description
Aggregate passing 19 mm sieve
or larger
Aggregate passing 13.2mm, 9.5
mm
Aggregate passing4.75 mm
Aggregate
passing2.36mm,1.18mm.0.6mm
Aggregate
passing0.3mm,
0.15mm
Aggregate passing 0.075mm
Binder content
Mixing temperature

Permissible variation
Base/binder
Wearing
course
course
8%
7%
7%

6%

6%
5%

5%
4%

4%

3%

2%
0.3%
10o C

1.5%
0.3%
10o C

Measurement for Payment : As given Dense bituminous Macadam

Rate: Rate shall be in accordance as given for Dense bituminous Macadam. The rates
shall include the provision of bitumen at 4.75 per cent by weight of the total mixture. The
variance in actual per cent of bitumen used will be assessed and the payment adjusted, up
or down, accordingly.
Control tests for Bituminous Concrete and their minimum frequency shall be as per Table
22.

127

5.1 The levels of the subgrade and different pavement courses as constructed shall not
vary from those calculated with reference to the longitudinal and cross-profile of the road
shown on the drawing or as directed by the Engineer beyond the tolerances mentioned in
the Table - 28
Table : 28 CONTROL OF ALIGNMENT LEVEL AND SURFACE REGULARITY
Horizontal Alignment

Surface Level
(a) Sub-grade

The edges of the carriageway shall be

corrected with in a tolerance of 10 mm
from the design alignment. For lower
layers of pavement, the tolerance is 25
mm.
Tolerance allowed
+20 mm
- 25 mm

(b) Sub-base
Flexible Pavement
Concrete Pavement

+10 mm
-20 mm
+6 mm
- 10 mm

Base course for flexible

pavements
Bituminous

+ 6 mm
- 6 mm

Other than Bituminous

(Machine laid)

+ 10 mm
- 10 mm

Other than Bituminous

(Manually laid)

+ 15 mm
- 15 mm

(d) Wearing course for Flexible

pavement
Machine laid
Manually laid
(e) Cement Concrete Pavement

+ 6 mm
- 6 mm
+ 10 mm
- 10 mm
+ 5 mm
- 5 mm

Surface Regularity Measured by the

3 m straight edge
Bituminous surface
Bituminous base course
Granular Sub-base/base course
Sub-base for concrete pavement
Concrete pavement surface

3 mm
6 mm
8 mm
10 mm
3 mm

128

6.1 Contractor shall set up filed laboratory for conducting tests in the field, detailed list of
the equipment as given below.
LIST OF THE EQUIPMENT TO BE PROVIDED AT SITE LABORATORY
A. General
1. Oven-Electrically operated ,thermostatically controlled, range
up to 200 C sensitivity 1 C
2. Platform balance 300 kg. Capacity
3. Balance 20 kg capacity-self indicating type
4. Electric Balance 5 kg capacity accuracy 0.5 gm
5. Water bath-electrically operated and thermostatically controlled
with adjustable shelves, sensitivity 1 C
6. Thermometers :
Mercury-in-glass thermometers range 0 C to 25 C
Mercury thermometers with 30 cm stem, range upto 300 C
7. Kerosene or gas stove or electric hot plate
8. Glass ware, spatulas, wire gauge, steel scales, measuring
tapes, casseroles, karahis, enamelled trays of assorted sizes,
pestle mortar, porcelain dishes, gunney bags, plastic bags,
chemicals, digging tools like pickaxes, shovels.
9. Set of Is sieves with lid and pan: 450 mm diameter
63 mm, 53 mm, 37.5 mm, 26.5 mm 13.2 mm, 9.5 mm, 6.7 mm
and 4.75 mm
2.36 mm,2 mm, 1.18 mm, 600 micron, 425 micron, 300 micron
150 micron and 75 micron
10. Water testing kit
11. First Aid Box
B. For Soil and Aggregate
1. Riffle Box
2. Atterberg Limits (liquid limit and plastic limits) determination
apparatus
3. Compaction test Equipment both 2.6 kg and 4.9 kg rammers
(Light and Heavy compactive effort )
4. Dry Bulk Density Test Apparatus (Sand pouring cylinder, tray,
can etc. ) complete
5. Speedy Moisture Meter complete with Chemicals
6. Post hole Auger with extensions
7. Core cutter Apparatus 10 cm dia. 10/15 cm height, complete with
dolly and rammer etc.
8. Aggregate Impact Value Testing Apparatus/Los angels Abrasion
Test Apparatus
9. Flakiness and Elongation Test Apparatus
10. Standard measure of 30, 15, and 3 liters capacity along with
standard tamping rod
11. California Bearing ratio test Apparatus
12. Unconfined compressive test apparatus

1 no.
1 no.
1 no.
2 no.
1 no.
4 no.
1 no.
As
required
1 set
2set
1 set
1 set
1 set
1 set
1 set
1 set
1 set
1 set
1 set
1 set
1 set
1 set
1 set
1 set

129

C. For Bitumen and Bituminous Mixes

1. Penetration with standard needles
2. Riffle Box small size
3. Centrifuge type bitumen extractor, hand operated, complete with
petrol/commercial benzene
4. Marshall stability test apparatus, complete with all accessories
5. Field density bottle along with cutting, tray, chisel, hammer and
standard sand.
6. 3 m straight edge
7. Camber Board
8. Core Cutting machine with 10 cm dia. diamond cutting edge
9. Vacuum pump and 3 specific gravity bottles.

1 set
1 no
1 set
1 set
2 nos
1 set
1 no.
1 set
1 set

D. For Cement and cement concrete

1. Vicat apparatus for testing setting
2. Slump testing apparatus
3. Compression and Flexural strength testing machine of 200 tonne
capacity with additional dial for flexural testing
4. Needle Vibrator
5. Vibrating hammer for vibrating dry mix as for dry lean Cement
concrete sub base
6. Core cutter apparatus 150 mm dia.

1 set
4 set
1 no.
2 no
1 no
1 set

130