Table Of Content’
B.S. Patil s Building and
Engineering Contracts,
7th Edition
’
B.S. Patil s Building and
Engineering Contracts,
7th Edition
B. S. Patil
S. P. Woolhouse
CRCPress
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Dedicated to Mrs. Suman Patil, who published all the
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Contents
Preface...................................................................... xiii
AbouttheAuthors .............................................................xv
TableofCases................................................................xvii
Introduction ..................................................................liii
1 TheTender ................................................................ 1
1.0 Introduction.........................................................1
1.1 ProvisionsoftheAct ..................................................1
1.2 Tender–Proposal–Defined ............................................2
1.3 InvitationtoTender...................................................3
1.4 TypesofTenderDocuments ............................................6
1.5 ModesofInvitingTenders.............................................12
1.6 PrequalificationofTenderers...........................................15
1.7 RequirementsofNoticeInvitingTenders .................................17
1.8 PreparationandSubmissionofTender ...................................20
1.9 IrregularityinSubmissionofTenders ....................................22
1.10 PaymentofEarnestMoney............................................23
1.11 OffertoBeAccompaniedbyCertainDocuments–WhenaCondition
Precedent? .........................................................23
1.12 ConditionsOfferedbyContractorinHisTender ...........................24
1.13 WithdrawalofTender ................................................26
1.14 ConsiderationandScrutinyofTendersbeforeAcceptance....................35
1.15 DecisiontoAcceptaTender ...........................................37
1.16 AcceptanceofTender.................................................38
1.17 CorrespondencebetweenAcceptanceandOffer ............................46
1.18 ModeofCommunicationofAcceptance..................................49
1.19 RevocationofAcceptance .............................................53
1.20 RejectionofTender ..................................................54
1.21 CostofTendering....................................................57
1.22 MisrepresentationandFraud...........................................58
1.23 BriberyandSecretCommission.........................................58
1.24 InterferencebyHighCourt ............................................59
1.25 Re-advertisement....................................................59
2 TheContract.............................................................. 61
2.0 Introduction........................................................61
2.1 ProvisionsoftheAct .................................................61
2.2 EssentialsofaValidContract ..........................................61
2.3 ProposalandAcceptance–MeetingofMinds .............................64
2.4 WhoAreCompetenttoEnterintoaContract?.............................65
2.5 FreeConsent .......................................................68
2.6 Consideration.......................................................79
2.7 SubjectMatter......................................................83
2.8 VoidandVoidableContracts...........................................87
2.9 ContingentContract .................................................93
vii
viii Contents
2.10 CollateralContracts..................................................95
2.11 ImpliedContract ....................................................96
2.12 PerformanceofReciprocalPromises.....................................96
2.13 Quasi-Contracts–WorkDoneWithoutContract...........................97
2.14 ContractofGuaranteeandIndemnity ...................................99
2.15 ContractsWhichNeedNotBePerformed ...............................101
2.16 ContracttobeinWriting.............................................102
2.17 ContractDocuments ................................................102
2.18 TypesofContract...................................................103
3 ContractsbyGovernment................................................... 111
3.0 Introduction.......................................................111
3.1 ProvisionsoftheLaw................................................111
3.2 ProvisionsMadeintheConstitutionofIndia.............................111
3.3 FormalityofContractsonBehalfoftheGovernment.......................112
3.4 NoImpliedContractunderArt.299....................................116
3.5 ContractbyCorrespondenceMayBeValid ..............................117
3.6 ExecutionofaFormalContract:WhenaConditionPrecedent ...............119
3.7 EffectofNon-CompliancewithRequirementsofArt.299(1).................119
3.8 PersonalLiabilityofGovernmentOfficerExecutingtheContract .............122
3.9 ConstitutionalRightsandObligationsofPartiestoGovernmentContracts .....124
3.10 TypesofCasesunderArt.226.........................................127
3.11 Acceptance/RejectionofTender–InterferencebyCourt–When
Justified–GuidingPrinciples..........................................142
3.12 ConditionsofEligibility..............................................149
3.13 ModificationofEligibilityConditions...................................155
3.14 PrequalificationofTenderers..........................................159
3.15 ModificationofTenderRequirementsPriortoSubmissionofBids ............162
3.16 OpeningofTenders .................................................162
3.17 FulfilmentofRequisiteConditionsofTenderNotice.......................164
3.18 NegotiationsPriortoAcceptance ......................................169
3.19 Acceptance/RejectionofTenders.......................................172
3.20 RejectionoftheLowestTender........................................178
3.21 RejectingAllTenders................................................182
3.22 Nomination/PreferencetoaClassofTenderers............................183
3.23 DeclaredDefaultervis-à-visBlacklisting–Meaningof .....................189
3.24 BlacklistingorDisqualificationofTenderers..............................189
3.25 CancellationofContract.............................................194
3.26 BreachofContract–WritPetitionNotMaintainable?......................195
4 InterpretationofContract................................................... 199
4.0 Introduction.......................................................199
4.1 ProvisionsoftheLaw................................................199
4.2 WhatIsInterpretation? ..............................................199
4.3 DistinctionbetweenInterpretationandConstruction.......................200
4.4 KindsofInterpretation ..............................................200
4.5 AuthoritywithWhomInterpretationRests...............................201
4.6 NatureofRulesofInterpretation ......................................202
4.7 RulesofInterpretation...............................................202
4.8 Construction–Strictv.LiberalandLiteralv.LogicalConstruction ...........210
4.9 “ForceMajeure”Clause..............................................212
4.10 DoctrinesofInterpretation ...........................................213
Contents ix
5 VariationsandDeviations................................................... 241
5.0 Introduction.......................................................241
5.1 ProvisionsinStandardFormContracts..................................241
5.2 ExtraWorkandAdditionalWorkDistinguished ..........................241
5.3 WhatConstitutesaVariation?.........................................243
5.4 FIDICForm ......................................................243
5.5 GovernmentofIndia–PlanningCommissionForm........................253
5.6 NITIAayogModelForm–NoteworthyFeatures..........................253
5.7 ProvisionsinStandardFormContractofCentralandStatePublicWorks,
Railways,MilitaryEngineeringServicesandOtherDepartmentsofthe
GovernmentofIndia................................................256
5.8 RighttoChangeIsLimited...........................................257
5.9 ValuationofCostofExtraWork.......................................263
5.10 DecisionRegardingRate–WhenNotOpentoArbitration? .................274
5.11 ChangeOrdersMustBeWritten.......................................275
5.12 RecoveryintheAbsenceofWrittenOrder–WhenPossible? .................280
5.13 InstructiontoAssistContractorsinDifficulty ............................281
5.14 ExtrasCausedbyMisrepresentation....................................282
5.15 ExtrasCausedbyLegalProvision......................................282
5.16 WhenContractBasedon“ApproximateEstimate” ........................283
5.17 ExtraClaimsbeyondtheScopeofAgreement ............................283
5.18 Owner’sLiabilitytoPayforChangesMade ..............................286
5.19 BasisofCompensationforExtraWork..................................287
5.20 AbsenceofMeasurements–RecordMaintainedbyContractorMay
BeReliedUpon ....................................................288
5.21 CommonGroundsonWhichExtrasareClaimed–IllustrativeCases..........289
6 TimeforCompletion,DelayinCompletion...................................... 299
6.0 Introduction.......................................................299
6.1 ProvisionsoftheLaw................................................299
6.2 ModeofSpecifyingTimeLimit........................................300
6.3 CanAdequacyofTimeLimitBeQuestioned?.............................302
6.4 Meaningof“WorkingDays”..........................................302
6.5 Meaningof“TimeShallBeDeemedtoBeoftheEssenceoftheContract”......304
6.6 WhenIsTimeoftheEssenceoftheContract? ............................309
6.7 WhenTimeCeasestoBeoftheEssenceoftheContract ....................313
6.8 ExtensionofTimeforDelay ..........................................319
6.9 WrittenRequestbyaContractor–aConditionPrecedent...................321
6.10 ConditionsunderWhichTimeShouldBeExtended........................322
6.11 PersonDesignatedShouldGrantExtensionofTime .......................323
6.12 CanExtensionofTimeBeGrantedwithRetrospectiveEffect?................323
6.13 ConditionalExtensionofTime ........................................326
6.14 IfExtensionofTimeNotGranted,EvenforJustReasons...................327
6.15 ExtensionofTime–EffectonCompensationforDelay.....................327
6.16 ProcedureofTerminatingContractafterExpiryofTimeLimitforCompletion...330
6.17 Section46oftheIndianContractAct–WhenAttracted....................332
6.18 TimeandPlaceofPerformance........................................334
7 Penalty/LiquidatedDamages ................................................ 337
7.0 Introduction.......................................................337
7.1 ProvisionsoftheLaw................................................337
7.2 PurposeofLiquidatedDamages .......................................341
