(f) Disagreement over measurements : These should not occur at all, as, if the principles stated
in Chapter 16 are followed, that is, the system of measurements to be adopted is stated in
the contract document, and is followed, and standard measurements are mutually evolved,
for the various buildings and items, before the start of works, there should be no dispute.
However, disputes have arisen and the parties have gone to court and the court has
appointed a Commissioner (a lawyer) to supervise recording of measurements at the site.
This does not improve matters as a highly technical work is to be done under the supervision
of a non technical person.
(g) Performance of the Contractor during the Defects Liability Period : The Contractor is required
to repair, replace defective works which occur during the Defects Liability Period of 6 or 12
months, at his own cost, if these are attributable to defective materials or poor workmanship
used in the original construction. Most contractors show the least interest in this work and the
good relationship established between the Owner and the Contractor is spoiled on this
account. These is over expectation on the Owner’s part and under performance on the
Contractor’s part. These are three ways to resolve disputes arising on this account (a) the
Contractor takes care of the repairs or rectification promptly, (b) he agrees to forfeit the
unreturned Security Deposit lying with the Owner and Owner takes care of all the rectification
or repair works as the money is lying with him, or (c) they both agree that the Owner will
have the repairs or rectification carried out of the Contractor’s Security Deposit lying with him
and pay the balance amount, if any, to the Contractor at the end of the Defects Liability
Period.
What happens when disagreement becomes a dispute?
In such an event, the matter goes for Arbitration as per the provisions of the Arbitration and
Conciliation Act, 1996. The contract document specified that the two parties can agree to appoint a
single Arbitrator or each party appoints its own Arbitrator and an Umpire is also appointed. The
parties have to go to the court for approval of the Arbitrator/Arbitrators, the terms and conditions of
their appointment, the Scope of Work, and the payment to be made and the time period by which the
Report should be submitted. Both the parties have to cooperate with the Arbitrator/Arbitrators fully
and produce the documents called for and arrange for site visits if required. Then the Arbitrator’s
work will be successful. The Contractor usually maintains records/documents properly and has no
difficult in producing these before the Arbitrator. But the Owner, if he is not a Government
Organization or a Corporate Body, does not maintain documents and loses out. The Arbitrator has to
take notice of this aspect in making his award and not make one party suffer for not really being at
fault. Great care is therefore to be taken in the appointment of the Arbitrator. The parties have to è
submit the Report of the Arbitrator to the court and have the necessary orders issued for execution.
†
9. Labour Laws applicable to construction : Anybody who employed Labour at a site either ´
directly or through a labour contractor, is responsible for all matters concerning provision of ñ
facilities, payment of wages etc. It is not only the Contractor but also the Owner who is £
ù
responsible. The permission from the Labour Deportment or other concerned Agency is issued in
Š
the name of the Owner. Therefore he should know the applicable laws and insist that the
Contractor work within these laws. Some of the applicable laws are listed below and discussed.
ªð
(a) Payment of Wages Act : This law makes it compulsory for the Employer to pay the wages £
regularly at the appointed intervals and not adjust it against any other dues from the person P
unless it is related to wage advance etc. For details refer to Nabhi’s Labour Laws : One Should ò
£
Know.
÷
˜
fl;Lkhdg; nghwpahsh;
49
mf;Nlhgh; 2013