Contractor and types of contract

Contractor

Type of contract

1). Lump-sump contract

In such type of contract we fix a particular amount with specify quantity, quality 

& time etc. (in advance) Such type of contract are unbalance contract

2). Per unit item rate contract

 Such type of contract are also called schedule rate contract.

 In this contract, we fix the price of each item/unit cut not quantity.

 It is a type of balance contract.

3). Lump-sump & sachedule rate contract

In such type of contract we give the contract at lump sump rate for the current 

define work. But in future, quantity may be increase as per item rate.

4). Fixed Percentage

 Such type of contract is also called cost plus percentage contract.

 When a contractor is paid certain percentage over the actual cost of 

construction as his profit.

Earnest money

• While submitting a tender the contractor is req. to deposit some amount with

the department as the guarantee of the tender is known as earnest money.

• It is about 2 to 2.5% of the tender amount.

Security money

• After accepting the tender the contractor has to deposit some amount in the

form of security.

• It is about 10%(including earnest money) of the tender value.

Note:- 1). Earnest money & security money are refunded after a certain period of time 

& without any interest.

2). Muster role is use for the attendance of the labour. (FORM NO-21)