FIDIC

 

FIDIC stands for the "International Federation of Consulting Engineers," which is an international organization that promotes and represents the consulting engineering industry worldwide. FIDIC has published a suite of contract templates for the construction industry, known as FIDIC Contracts or FIDIC Books.

FIDIC Books are a set of standard contracts that are used in the construction industry to establish legal agreements between different parties involved in a construction project, including the owner, contractor, and engineer. The FIDIC Books cover various aspects of construction contracts, including procurement, design, construction, and operation.

There are several FIDIC Books available, including the Red Book, Yellow Book, and Silver Book, each tailored to suit specific types of construction projects. The Red Book is generally used for construction projects where the design is completed before the contractor is appointed, while the Yellow Book is used for projects where the contractor is responsible for designing and building the project. The Silver Book is used for turnkey projects, where the contractor designs, builds, and hands over the completed project to the owner.

The FIDIC Red Book is a widely used standard form of contract for construction projects. It is published by the International Federation of Consulting Engineers (FIDIC) and is commonly known as the "Conditions of Contract for Construction."

The FIDIC Red Book sets out the terms and conditions that govern the relationship between the employer and the contractor for the construction of works. It covers areas such as the scope of work, time for completion, payment terms, variation and changes to the scope of work, testing and commissioning of the works, and dispute resolution.

The FIDIC Red Book is designed to provide a fair and balanced framework for construction contracts, and it is commonly used by employers, contractors, and engineers around the world. It is important to note, however, that the FIDIC Red Book is not a substitute for legal advice, and parties to a construction contract should seek legal advice to ensure that their rights and obligations are properly understood and protected.

The FIDIC Yellow Book is a standard form of contract for use in engineering and construction projects. It is published by the International Federation of Consulting Engineers (FIDIC) and is commonly known as the "Conditions of Contract for Plant and Design-Build."

The FIDIC Yellow Book sets out the terms and conditions that govern the relationship between the employer and the contractor for the design, construction, and commissioning of a plant or installation. It covers areas such as the scope of work, time for completion, payment terms, design responsibility, variation and changes to the scope of work, testing and commissioning of the works, and dispute resolution.

The FIDIC Silver Book is a standard form of contract for use in turnkey projects. It is published by the International Federation of Consulting Engineers (FIDIC) and is commonly known as the "Conditions of Contract for EPC/Turnkey Projects."

The FIDIC Silver Book sets out the terms and conditions that govern the relationship between the employer and the contractor for the design, engineering, procurement, construction, and commissioning of a complete facility or installation. It covers areas such as the scope of work, time for completion, payment terms, design responsibility, variation and changes to the scope of work, testing and commissioning of the works, and dispute resolution.

Capital cost of some of the construction equipment's

 

The lease charges per month comes to approximate 2% of capital cost

if we purchase on loan the purchase cost will goes upto 10%

Resale value of the equipment after 5 Yrs time will be about 25~30% of cost.

Average maintenance cost is around 8~10% of monthly rental value.

Installation and dismelting costs are applicable for some of the equipment's.

Hire charges are includes operator's charges hence based on usage [single /double shifts] the charges vary

Hire charges always excludes power and fuel charges

Article date : 13-03-23 

Labour cess in construction industry [levied upto 2% of the cost of construction]

In India, a civil contractor is required to pay labour cess when undertaking construction or maintenance work for a government project. The labour cess is a tax levied by the government under the Building and Other Construction Workers' Welfare Cess Act, 1996, which aims to provide financial assistance and welfare measures for construction workers.

The rate of labour cess varies from state to state in India and is usually calculated as a percentage of the cost of the construction project. The collected amount of labour cess is deposited into a separate fund, known as the Building and Other Construction Workers' Welfare Fund, which is used for the welfare of construction workers such as providing education, healthcare, and social security benefits.

It is the responsibility of the civil contractor to pay the labour cess and ensure compliance with the relevant laws and regulations. Failure to pay the labour cess can result in penalties and legal consequences.

The rate of labour cess in India varies from state to state and is determined by the respective state governments. However, as per the Building and Other Construction Workers' Welfare Cess Act, 1996, the maximum amount of cess that can be levied is 2% of the cost of construction.

The exact rate of labour cess applicable to a particular construction project will depend on factors such as the type of project, its location, and the total cost of the project. It is important for civil contractors to be aware of the applicable labour cess rates and ensure compliance with the relevant laws and regulations.

If a civil contractor fails to pay the applicable labour cess for a construction project, they may be subject to penalties and legal consequences. The specific penalties may vary depending on the state or region where the project is being undertaken.

Under the Building and Other Construction Workers' Welfare Cess Act, 1996, the penalty for non-payment of labour cess may include:

1. Penalty interest: If the contractor fails to pay the labour cess on time, they may be liable to pay interest on the amount due. The rate of interest may vary depending on the state, but it is typically higher than the prevailing bank interest rate.
2. Legal action: The concerned authorities may take legal action against the contractor for non-payment of labour cess. This may include initiating legal proceedings, imposing fines, or suspending or cancelling the contractor's license.
3. Blacklisting: Contractors who repeatedly fail to pay labour cess may be blacklisted and barred from participating in future government construction projects.

It is important for contractors to ensure timely payment of labour cess to avoid any penalties or legal consequences. They may also seek legal advice or consult with the local authorities to ensure compliance with the relevant laws and regulations.

The payment of labor cess for construction projects is usually made to the respective state governments as per their rules and regulations. The exact procedure for payment may vary from state to state in India.

In general, the payment of labor cess is made to the designated authorities or departments responsible for the collection of such cess. The payment can be made either online or offline through designated banks or payment gateways.

To know the exact procedure for payment of labor cess for construction projects in your state, you can check the relevant government websites or contact the concerned authorities directly.