Schedule 4
(relating To Rule 22) Procurement Contract Of Construction Work
Schedule-4 (Relating to Rule 22)
Procurement contract of construction work
A public entity may, in order to carry out a construction work, conclude any one of the following contracts:
(a) Unit rate contract: A unit rate contract may be concluded to execute a construction work the quantity of which is not ascertained at the time of conclusion of the procurement contract or to provide the per unit activity of a construction work at the rate referred to in the Bill of Quantities. In such a unit rate, the bidder shall include the materials, labor and other things required to complete the proposed construction work.
In making payment for the work done pursuant to this contract, payment shall be made of the amount to be found from computing the quantity of construction work as ascertained from measurement of construction site by the per unit rate.
(b) Lump sum contract: A lump sum contract may be concluded to carry out a construction work which is difficult to measure such as installation of underground water pipeline or a construction work that can be measured such as structure of a bridge. This contract shall be so concluded that all risks and liabilities relating to the construction work remain with the construction entrepreneur.
Provided that if the financial liability of the construction work is increased for the reason that the public entity has ordered to make a change of any type in the construction after the commencement of the construction work upon conclusion of the procurement contract, the public entity shall bear such liability.
(c) Cost-reimbursement contract: The cost-reimbursement contract may be concluded to execute a construction work nature of which is high risky and unpredictable conditions of work and a construction entrepreneur does not agree to execute or cannot execute it under the unit rate contract. In making payment to the construction entrepreneur for the construction work to be executed by concluding this contract, payment may be made for the actual cost incurred in executing such a construction work, overhead cost thereof, in addition to the profit as stated in the approved cost estimate. In having a construction work executed by concluding this contract, the chief of the public entity shall fix the maximum amount of cost-reimbursement and if an amount exceeding such limit is to be paid, he or she shall obtain the prior approval of the head of department.
(d) Time and material rate contract: The time and material rate contract may be concluded to carry out a work by computing the labor on the basis of time and the materials as per the unit rate due to unpredictability at the time of conclusion of the procurement contract of the labor and materials required for the repair and maintenance of a construction work. This contract shall clearly mention that payment shall be made to the construction entrepreneur as follows:
(a) The amount found out after adding to the overhead cost and the profit referred to in the approved cost estimate to the sum found out by dividing the labor of the construction entrepreneur on the basis of per hour or per day or per month, and
(b) The paid amount of the price of the material used for maintenance, subject to the limitation of the amount referred to in the procurement contract.
(e) Design and build contract: The design and build contract may be concluded to have a design and construction of a construction work to be executed by the same construction entrepreneur. The public entity shall start the work under this contract only after causing the design of construction work to be examined and approved by a technician or a team of technicians. The technician or team of technicians who so examines the design shall examine and approve such design, drawing and cost estimate by following the procedure set forth in this Regulation for examination and approval.
(f) Management contract: The management contract may be concluded to have a construction work executed by different sub- contractors subject to the conditions that legal and contractual obligation relating to the quality and completion period of the construction work shall be undertaken by the construction entrepreneur himself or herself with whom the public entity concludes the procurement contract and such work is executed under his or her management and supervision. Payment for the work under this contract shall be made only to the construction entrepreneur who has concluded the procurement contract with the public entity.
(g) Performance-based maintenance or management contract: The performance-based maintenance or management contract may be concluded to execute a construction work without mentioning the equipment required to maintain and manage the construction work and item wise work and by mentioning only the final performance.
(h) Piecework contract: To execute a construction work related to small scale maintenance and repair required to be executed frequently as and when required, the piecework contract may be concluded by establishing the list of price of such work.
Generally, the period of this contract shall not exceed one
year.
(i) Build and maintenance contract: The build and maintenance contract may be concluded to build a big fast track, power plant with a big reservoir or pumping station or turbine, ropeway, railway cable car or similar other physical structure with sophisticated or complex technology, conduct testing, give training, as required, to the employees of the concerned public entity for operating such structure and also to repair and maintain such structure.
(j) Turnkey contract: The turnkey contract may be concluded to build a big fast track, power plant with a big reservoir or pumping station or turbine, ropeway, railway cable car, bridge or road with sophisticate technology or similar other physical structure with sophisticated or complex technology, conduct testing, complete operation of such structure and hand it over to the public entity.
Procurement contract of construction work
A public entity may, in order to carry out a construction work, conclude any one of the following contracts:
(a) Unit rate contract: A unit rate contract may be concluded to execute a construction work the quantity of which is not ascertained at the time of conclusion of the procurement contract or to provide the per unit activity of a construction work at the rate referred to in the Bill of Quantities. In such a unit rate, the bidder shall include the materials, labor and other things required to complete the proposed construction work.
In making payment for the work done pursuant to this contract, payment shall be made of the amount to be found from computing the quantity of construction work as ascertained from measurement of construction site by the per unit rate.
(b) Lump sum contract: A lump sum contract may be concluded to carry out a construction work which is difficult to measure such as installation of underground water pipeline or a construction work that can be measured such as structure of a bridge. This contract shall be so concluded that all risks and liabilities relating to the construction work remain with the construction entrepreneur.
Provided that if the financial liability of the construction work is increased for the reason that the public entity has ordered to make a change of any type in the construction after the commencement of the construction work upon conclusion of the procurement contract, the public entity shall bear such liability.
(c) Cost-reimbursement contract: The cost-reimbursement contract may be concluded to execute a construction work nature of which is high risky and unpredictable conditions of work and a construction entrepreneur does not agree to execute or cannot execute it under the unit rate contract. In making payment to the construction entrepreneur for the construction work to be executed by concluding this contract, payment may be made for the actual cost incurred in executing such a construction work, overhead cost thereof, in addition to the profit as stated in the approved cost estimate. In having a construction work executed by concluding this contract, the chief of the public entity shall fix the maximum amount of cost-reimbursement and if an amount exceeding such limit is to be paid, he or she shall obtain the prior approval of the head of department.
(d) Time and material rate contract: The time and material rate contract may be concluded to carry out a work by computing the labor on the basis of time and the materials as per the unit rate due to unpredictability at the time of conclusion of the procurement contract of the labor and materials required for the repair and maintenance of a construction work. This contract shall clearly mention that payment shall be made to the construction entrepreneur as follows:
(a) The amount found out after adding to the overhead cost and the profit referred to in the approved cost estimate to the sum found out by dividing the labor of the construction entrepreneur on the basis of per hour or per day or per month, and
(b) The paid amount of the price of the material used for maintenance, subject to the limitation of the amount referred to in the procurement contract.
(e) Design and build contract: The design and build contract may be concluded to have a design and construction of a construction work to be executed by the same construction entrepreneur. The public entity shall start the work under this contract only after causing the design of construction work to be examined and approved by a technician or a team of technicians. The technician or team of technicians who so examines the design shall examine and approve such design, drawing and cost estimate by following the procedure set forth in this Regulation for examination and approval.
(f) Management contract: The management contract may be concluded to have a construction work executed by different sub- contractors subject to the conditions that legal and contractual obligation relating to the quality and completion period of the construction work shall be undertaken by the construction entrepreneur himself or herself with whom the public entity concludes the procurement contract and such work is executed under his or her management and supervision. Payment for the work under this contract shall be made only to the construction entrepreneur who has concluded the procurement contract with the public entity.
(g) Performance-based maintenance or management contract: The performance-based maintenance or management contract may be concluded to execute a construction work without mentioning the equipment required to maintain and manage the construction work and item wise work and by mentioning only the final performance.
(h) Piecework contract: To execute a construction work related to small scale maintenance and repair required to be executed frequently as and when required, the piecework contract may be concluded by establishing the list of price of such work.
Generally, the period of this contract shall not exceed one
year.
(i) Build and maintenance contract: The build and maintenance contract may be concluded to build a big fast track, power plant with a big reservoir or pumping station or turbine, ropeway, railway cable car or similar other physical structure with sophisticated or complex technology, conduct testing, give training, as required, to the employees of the concerned public entity for operating such structure and also to repair and maintain such structure.
(j) Turnkey contract: The turnkey contract may be concluded to build a big fast track, power plant with a big reservoir or pumping station or turbine, ropeway, railway cable car, bridge or road with sophisticate technology or similar other physical structure with sophisticated or complex technology, conduct testing, complete operation of such structure and hand it over to the public entity.