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Studying The Present Contract Model, Causes of Delay in the Model and giving Recommendation to it

Publication Date : 03/05/2016

Author(s) :

Amarsinha N. Pawar , Hemanshu Ahire.

Conference Name :
International Conference on Recent Trends in Engineering and Technology

Abstract :

Public works are done at the cost of public funds and it is done for the public itself but due to delay in contract execution a lot of money is drained from the public account which is a great loss. There are various reasons for projects getting delayed in public sector and is the biggest problems faced by the construction industry today. One of the important reasons for delay in project is the procurement procedure followed. Studies have been made on the reasons in construction delay from the client, consultant and contractor point of view using statistical formulae but an empirical study needs to be done on the whole procurement procedure followed in the public sector. The general flow of present procurement model followed is project idea, its preliminary report, detailed project report, technical sanction, conformation of funding, preparing of tender document, bidding process and selection of contractor. This process though important is mainly time consuming. If this process is redesigned than issues related to delay can be reduced. The time taken for sanctioning of a project is too lengthy because the project report has to be passed by every concerned department. The estimates at the sanctioning stage and the actual cost of work at the time of execution are different rather are increased substantially which leads to cost escalation. The basic principle of fair competition i.e. to award the contract to the lowest bidder needs to be changed with alternative method. Issues related to cash flow, billing, dispute resolution board needs to be addressed. The aim of the paper is to study the present contracting model. Based on the study giving recommendations to the present contracting model and proposing a new model. Resulting in reducing the procedure time, selecting appropriate contractor, avoiding disputes and saving the public money.

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