MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION

(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Important Instructions to Examiners:

1) The answers should be examined by key words and not as word-to-word as given in the model answer
scheme.
2) The model answer and the answer written by candidate may vary but the examiner may try to assess the
understanding level of the candidate.
3) The language errors such as grammatical, spelling errors should not be given more Importance (Not
applicable for subject English and Communication Skills.)
4) While assessing figures, examiner may give credit for principal components indicated in the figure. The
figures drawn by candidate and model answer may vary. The examiner may give credit for any equivalent
figure drawn.
5) Credits may be given step wise for numerical problems. In some cases, the assumed constant values
may vary and there may be some difference in the candidate’s answers and model answer.
6) In case of some questions credit may be given by judgement on part of examiner of relevant answer
based on candidate’s understanding.
7) For programming language papers, credit may be given to any other program based on equivalent
concept.
8) As per the policy decision of Maharashtra State Government, teaching in English/Marathi and Bilingual
(English + Marathi) medium is introduced at first year of AICTE diploma Programme from academic year
2021-2022. Hence if the students in first year (first and second semesters) write answers in Marathi or
bilingual language (English +Marathi), the Examiner shall consider the same and assess the answer
based on matching of concepts with model answer.

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.1 Attempt any FIVE of the following : (10)
a) Enlist the types of contract.
Ans. Types of contract:
1) Lump sum contract.
2) Item rate contract.
3) Percentage rate contract.
a. Cost plus percentage rate contract.
b. Cost plus fixed fee contract. 1
each
c. Cost plus variable fee contract. 2
(any
d. Cost plus variable percentage. two)
4) Labour contract.
5) Demolition contract.
6) Fee contract.
7) Target contract.
8) Negotiated contract.
1
9) Material supply contract.
each 2
b) State the methods used for carrying out work in PWD. (any
two)
Ans. Methods used for carrying out work in PWD:
1) Rate list method.
2) Piece work method.

Page No. 1 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.1 b) 3) Day‟s work method.
Ans. 4) Employing labour on daily wages.
c) Differentiate between earnest money and security deposit in
contract.
Ans. Sr. No. Earnest Money Security Deposit
1 Amount of money is to be A amount of money is to be
paid by all contractors paid by the contractor whose
while submitting the tender is accepted, is termed
tender is called as Earnest. as security deposit.
2 Earnest amount is for a Security amount is kept as a
check so that the check so that the contractor
contractor may not refuse fulfills all the terms and
to accept the work or run conditions of the contract
away when his tender is and carries out work 1
each
accepted. satisfactorily according to 2
(any
the specifications and two)
maintain progress and
completes the work in time.
3 Earnest money is the Security deposit is the
amount about 2% of the amount is the amount about
estimated cost. 10% of the estimated cost.
4 Earnest money of the This amount of security
tenderer whose tender is deposit is refunded to the
not accepted then this contractor after the
amount is refundable satisfactory completion of
work after a specified time.
5 If contractor refuses to If the contractor fails to
take up the work, then his fulfill the terms of the
earnest money is forfeited. contract, then his whole or
part of the security deposit is
forfeited by the department.

Page No. 2 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.1 d) State the objects of contract.
Ans. Objects of Contract:
1) To execute the work by experienced persons. 1
each
2) To execute work with most competitive rate. 2
(any
3) To do work as per specification. two)
4) To use latest machineries and techniques.
5) To have free hand for a supervisor to check the work done by
contractor without interference.
e) Define the terms
i.) Retention money.
ii.) Mobilization advance.
Ans. i.) Retention money:
1
Some amount to be hold from the security deposit of contractor by
the Engineer-in-charge, when there is any claim for the payment
arises out of or under the contract against the contactor is called as
Retention Money. 2
1
ii.) Mobilization advance.
Mobilization advance is the amount of money given to the
contractor for establishment purpose.
f) State the purpose of valuation.(any two)
Ans. Purpose of valuation:
1. Buying and selling the property.
2. Taxation.
1
3. Rent fixation. 2
each
4. Security of loans or mortgage. (any
two)
5. Compulsory acquisition.
6. Insurance.
7. Wealth tax and estate duty.
8. Assessment of stamp fees.
9. Gift tax.
10. Partition.

Page No. 3 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.1 g) State the types of building lease.
Ans. Following are the types of building lease:
1. Absolute Net Lease. 1
each
2. Triple Net Lease. 2
(any
3. Modified Gross Lease. two)
4. Full service Lease.

Page No. 4 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.2 Attempt any THREE of the following: (12)
a) Differentiate between item rate contract and percentage rate
contract on the basis of definition, suitability, security, extra item.
Ans. Sr. Points Item Rate Contract Percentage Rate
No. Contract

1 In this contract, In this contract,

contractor agrees to contractor agrees to
Definition work as per the rates carry out the work at a
quoted by him for certain percentage below
each item. or above the estimated
cost.

2 Suitable for most of Suitable for all type of

public works government as well as 1 4
Suitability executed by private. each
government
departments.

3 Security Security deposit Security deposit penalty

penalty is payable. is not payable.

4 Extra Item Extra items can be It allows extra items.

cause of dispute.

b) Explain with suitable example unbalanced tender.

Ans. In case of unit price contract the contractor has to quote his rate for
each item. If these rates quoted by contractor are reasonable, the
tender is known as balance tender. But sometimes the contractor puts 4
2
up higher rates for certain items and lower rates for other items so that
the total amount of tender remains practically unaffected, such a
tender is known as unbalanced tender. The contractor quotes higher
rates for those items which are to be completed in the early part of
work so that he gets slightly excessive payment from which he can
build up working capital.

Page No. 5 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.2 b) Following is the example of unbalanced tender:
Ans. Ite Tendered Rates in (Rs.)
Particulars of
m Quantity
Item P Q R
No.
Excavation in
500 m3
1 soft soil 40/- m3 12/- m3 30/- m3

Excavation in
300 m3
2 soft 40/- m3 25/- m3 60/- m3

Excavation in
200 m3
3 hard 40/- m3 80/- m3 100/- m3

Cement Concrete
100 m3
4 1:4:8 400/- m3 500/- m3 300/- m3 2
Plastering in
800 m2
5 C:M 1:4 10/- m2 20/- m2 8/- m2

Oil painting 500 m2

6 10/- m2 10/- m2 5/- m2
Total (Rs.)
Rs.95000/- Rs.100500/- Rs.111900/-
Remarks
Lower Second Third
Here the contractor P has quoted very high for item no. 1 and very low
rate for item no 3. He expects by his judgment after visiting the site
and by his experience. Suppose on the basis of lowest tender, the
contract is awarded to contractor P But the actual quantities are 900
m3, 50 m3, 50 m3respectvely The total amount payable to him is Rs.
40,000 but if it is given to Q The total amount payable to Q is Rs.16,
050.Instead of awarding the contract to P if the contract was awarded
to Q the department would have saved Rs. 23,950. Another point to be
noted here is that contractor P is not at all giving any chance to the site
engineer for classification of soil.
c)
Differentiate between interim payment and advance payment.
Ans.
Sr. No Interim payment Advance payment
1 An advance payment made An amount paid in advance 1
4
to contractor when work is of the work done, by the each
in progress is called as contractor is called as
interim payment. advance payment.

Page No. 6 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.2 c) 2 This type of payment is Under the special
applicable to large project circumstances or a special
work. case, the advance payment
is made to the contractor.
3 Work progress can be Cost of the work done
checked if payment is made should not be less than that
at interval. of advance payment made
to the contractor.
4 The engineer in charge will Sanctioning authority of
make arrangement of advance payment is
measurement of all works executive engineer.
done by contractor and if
bills are not prepared.

d) Explain the types of outgoings with % in relation with gross

income.
Ans. Types of outgoings:
i.) Municipal Taxes:
These are paid to the local authorities for the services like
water supply, sanitation etc. These taxes are calculated at
certain percentage of rentable value of the property. These
may be 15 % of the gross income.
ii.) Repairs:
1
It is the amount spent for annual repair and maintenance to each
4
(any
keep property in fit condition. This amount is usually 1 to
four)
1.5% of the total value of the property.
iii.) Sinking Fund:
The fund created by regular periodic payment which
accumulates at the compound interest is called a sinking
fund. This amount is used for reconstructions of the
building at the end of utility period.

Page No. 7 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.2 d) iv.) Management and collection charges:
Ans. These are the charges which include expenses on rent
collector, watchman, liftman, sweeper, etc. These may be 5
to 10 % of the gross rent.
v.) Insurance:
It is the premium paid by the owner of the property. It
depends upon the sum assured. These may be 0.5% of the
gross income.

Page No. 8 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.3 Attempt any THREE of the following: (12)
a) Explain the term
i.) Escalation
ii.) Arbitration
Ans. i.) Escalation:
Escalation of cost is defined changes in the cost or price of
specific materials in a given economy over a period. The
Completion period of big project work is usually long & the
cost of materials and labors becomes more and more day by 2
day. It is therefore difficult for a contractor to forecast such
future increase in rates. In order to overcome such drawback
price escalation clause is provided which is known as 4
Escalation of cost.
ii.) Arbitration:
During execution of work owner and contractor may come
2
across situations where disputes may arise. The process of
settling the dispute between owner and contractor is called as
arbitration.
b) Explain the situations in which lowest tender is rejected.
Ans. Following are the situations in which lowest tender is rejected:
i.) The lowest tender can be rejected under the following
circumstances:
ii.) When the tender is not submitted in the particular form sold by
the department.
1
iii.) Earnest money required is not enclosed along with the tender.
each
iv.) When the tender is not signed by the contractor or by his 4
(any
representative having power of attorney to sign the documents.
four)
v.) When the contractor has put some conditions which are not
acceptable to the department.
vi.) The lowest tenderer has become bankrupt, therefore no
sufficient amount to finance the work.

Page No. 9 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q. 3 b) vii.) Bad reputation: The lowest tenderer might have earned bad
Ans. name in market. This may be due to non-co-operation, using
bad materials etc.
viii.) Lack of experience: The contractor may not be having the
necessary experience of the particular work to be executed.
ix.) Inadequate staff and equipment: The contractor may not be
having the qualified engineers on site and lack the special
construction equipment required for completion of work.
x.) While rejecting the lowest tender one has to be more careful
and cautious. If the lowest tenderer goes to Court of Law, the
concerned authority who has rejected the tender should be In
position to prove in the Court of Law.
c) Justify the importance of BOT contract on the basis of objective
and advantages.
Ans. Objectives of B.O.T.
i.) To develop infrastructures in an area when government does
not have sufficient funds for development of an area.
ii.) To construct facilities like good roads, water supply schemes, 1
bridges, express highways in partnership with private sector. each

iii.) To maintain roads, bridges, tunnels in good condition. (any

two)
iv.) To provide facilities to the public at reasonable rates of toll
and taxes for the work completed on BOT basis.
Advantages of B.O.T. 4
i.) Fast development of infrastructure is possible.
ii.) Public gets facility which they would not have got after so
1
many years.
each
iii.) On completion of project, the expenditure incurred will be
(any
collected by of toll and this amount is used for maintenance of
two)
project.
iv.) Quality of work is good since public, private partnership is
there for construction of project.

Page No. 10 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.3 d) Define the term corrigendum and state the situation in which
corrigendum to the tender notices is given.
Ans. Corrigendum:
Corrigendum notice is a notice to add or update the values for
1
some of the items in a notice that is submitted earlier to
tenders. 4
Corrigendum is necessary under following situations:
1
1. When time period to prepare tender for contractor is short.
each
2. When there is any major change either in design, drawing, (any
specification or in amount. three)
3. Tender papers are not ready in office.
4. Sufficient number of blank tender forms is not sold.

Page No. 11 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.4 Attempt any THREE of the following: (12)
a) Prepare NMR-Part-I for the following details mentioned below.
Period of writing -5th Dec 2022 to 10th Dec 2022.Weekly off-
Sunday
i.) Prakash Ram (Mason) Rs.800/-per day present on all days.
ii.) Shamrao Vitthal (Mason) Rs.800/-per day absent on 8th
Dec 2022.
iii.) Komal Jaysing (Female labour) Rs.400/- per day present
on all days.
iv.) Pintu Dadu (Male labour) Rs.400/-per day present on all
days.
Ans. Part-I Nominal Roll
Designa Sr. Name Fathers Dates… Month To Rate Amou Dat 4
tion No grouped name 5th Dec2022 to 10th tal Rs. nt ed
Descrip . according Dec2022 init
tion to class ioal
1 2 3 4 5 6 of
pay
ing
offi
cer
Mason 01 Prakash Ram X X X X X X 6 800 4800
Mason 02 Shamrao Vitthal X X X X X 5 800 4000

Female 03 Komal Jaysing X X X X X X 6 400 2400

Labour
Male 04 Pintu Dadu X X X X X X 6 400 2400
Labour
Initial of person marking daily
attendance
Initial of inspecting Officer
Passed for Rs.13600/-(Rupees Thirteen thousands six hundred)
Signature……..Rank……
Grand Total of this muster roll 13600
Deduct –payment not made as per details. ………
Transferred to register of arrears ………
Total amount paid in words rupees 13600
Date ………….. Signature ………….. Rank……….

Page No. 12 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.4 b) Enlist the mode of making payment to contractor and explain any
Ans. one.
Following are the modes of payment to the contractor–
1. Interim payment 2. Advance payment 1
each
3. Secured advance 4. On account payment
(any
5. First and final payment 6. Retention money two)
7. Reduced rate payment 8. Final payment
9. Mobilization advance
1. Interim Payment: 4
A partial payment given to the contractor monthly for works in
progress or supply in progress under the terms of contract is
called as interim payment.
Note that interim payment is not be considered as final
acceptance of the work upto that level. Powers are given to the
engineer to hold the interim payment under special
2
circumstances.
OR
2. Advance payment:
The payment made on a running account to a contractor for
work done but not measured is called as advance payment.
Note that advance payment is not generally paid to the
contractor, but under special case or under special
circumstances, advance payment is issued to the contractor on
the certificate of the assistant engineer who is the in-charge of
the project work.
Note that the value of work done should not be less than the
advance payment proposed to be made to the contractor.
OR
3. Secured advance
An advance payment made to the contractor on the basis of the
security of materials brought by the contractor to the site of

Page No. 13 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.4 b) work under construction is called as secured advance.
Ans. Authority to make the secured advance is in the hand of
Divisional Engineer upto the amount not exceeding 75% of the
value of the materials brought to the site by contractor.
Amount of secured advance is adjusted in the next running
account bill within proportion to that of actual consumption of
the materials
OR
4. On Account Payment
The payment made on running account to the contractor for the
works done by him or supplies by him which is measured and
recorded in measurement book (M.B) is called as „on account
payment‟.
This type of payment is made when only a part of the complete
work or supply have been done and the work or supply is in
progress.
10% amount is kept as deposit, out of which 5% amount is to
be refunded at the end of the maintenance period. Note that
percentage of amount may vary or change.
OR
5. Final Payment :
The payment to be made within three month from the date of
issue of certificate of final completion is called as final
payment.
After completion of works done by the contractor in all
respects, the engineer prepare the final amount of work
accurately after deducting all the previous payment made to
the contractor.
OR
6. First and Final Payment :
A single payment made for a small job or small work on its

Page No. 14 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.4 b) completion is called as “first and final payment”.
Ans. type of payment is usually made or applicable for small work
only. For example, construction of sanitary block for school
building, component wall construction, septic tank
construction, ornamental grill work, demolishing existing
structure etc. are the examples of small work for which the
first and final payment are made to the contractor.
OR
7. Retention Money :
Some amount to be hold from the security deposit of
contractor by the Engineer-in-charge, when there is any claim
for the payment arises out of or under the contract against the
contactor is called as “Retention Money”.
This amount is hold up till the finalization or adjustment of
any claim is settled.
OR
8. Reduced Rate Payment :
The payment which may grant by the engineer with the reduced
rate when contractor completes an item or work not as per the
specifications, drawings given in contracts terms and conditions
is called as “Reduced Rate Payment”.
The work or an item which is not done as per the specifications,
drawings given in the prescribed terms of conditions of contract
by the contractor, then in such case the engineer may pay the
amount with reduced rate making the remark as the work is
structurally sound.
OR
9. Mobilization Advance :
Mobilization advance is the amount of money given to the
contractor for establishment purpose.
Establishment charges consists of the following work to be done

Page No. 15 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.4 b) on site under construction.
i. Approach roads
ii. Site office
iii. Go down for storage of building material
iv. Water tank
v. Electric connection
vi. Other facilities which ensure the safety on projects and
smooth working.
c) Describe the points to be observed while drafting specification of
an item.
Ans. Following are the various important points to be observed in framing
the specifications :
1. The main intention or object of specification is to present a
clear picture of facts to be adopted in the construction work.
Hence clear facts of the quality of material and workmanship
mentioned in the specification should be observed.
2. Specification depends upon the site conditions, hence it is to
be observed the nature of work and purpose for which the
work is carried out.
1
3. Well-known or familiar abbreviations in building industry are 4
each
to be used without giving information. (any
four)
4. Proper and suitable words with required meaning should only
be used. Unfamiliar works should not be used in specification.
5. Prepare the specification by observing the rules of grammar.
6. The information about quality of the material and procedure of
workmanship to be adopted should be complete and accurate.
7. Avoid cross-references.
8. The specification should state looking to view that what the
contractor shall or shall not do and not what the contractor
should or should not do.
9. The subject matter mentioned in the specification should relate

Page No. 16 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.4 c) to the information required when the contract is given to the
Ans. contractor.
10. Unfair specifications are not desirable, meaning that throwing
all the possible risks on the shoulders of contractors is unfair
and hence such specification should not be mentioned.
11. The sentences of the specification should be simple and short
so as to avoid the risk of legal difficulties and allegations.
12. Specifications of various items should be framed by keeping
the practical limitations of materials and workmanship in
mind.
d) Enlist the types of specifications and explain the brief specification
with respect to definition, purpose and legal aspect.
Ans. Following are the various types of specifications :
1. Brief specification.
2. Detailed specification. ½
each
3. Standard specification.
4. Manufacturer‟s specification.
Brief specification:
Definition:
1
It is a short description of different parts of the work 4
specifying materials, proportions, qualities etc.
Purpose:
1. It is helpful to prepare rate analysis of various items.
½
2. Specification is an important tool or document and plays the
(any
important role for arbitration. one)
3. Specification fixes the responsibilities of owner and contractor.
4. It helps to the contractor in preparing and pricing the tender.
Legal Aspect:
1. Specification of various items becomes the important ½
(any
documents as per as legal aspect like contract and agreements
one)
are concerned. Hence the drawing and specifications are two

Page No. 17 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.4 d) important contract documents considered as a legal document.
2. The tender documents and agreements towards legal aspect are
incomplete and invalid without specifications.
3. Specifications have more legal strength and hence most of the
contract state that in case of discrepancy between the drawings
and specifications, the specification act as a legal proof.
4. In case of disputes between the owner and the contractor,
specifications act as a useful legal document to solve the
problem in between two party.
e) Draw the organization chart of PWD.
Organization structure of PWD:
Ans.
Project

Labour Material Overheads 1

Chief
Engineer
Engaged by Supplied by Manufactured 1
Contractor Contractor by the Superintending
Or supplier Department Engineer 4

Executive 1
Work Muster Roll Engineer
Changed Labour and
Staff casual labour Assistant
Executive
Engineer 1

Junior
Engineer

Page No. 18 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.5 Attempt any TWO of the following: (12)
a) Draft a tender notice for construction of staff quarters for
government employees costing 1.5 Cr. invited by E.E (PWD).
Ans. Assumptions :
1. Authority inviting tender is Executive Engineer.
2. Situation at______.
Tender Notice
(Public Works Department)
No. : Date :
Sealed item rate tenders in form „B2‟ are invited by Executive 1
Engineer P.W.D. Division, _______ from registered contractors of
class III for following works.
Sr. Name of Esti- Earnest Security Time of
No. work mated money Deposit in comple-
cost in in Rs. Rs. tion
Rs.
1. Construction 1.5 1,50,000 7,50,000
24 months 2
of staff Corers (1%) (5%)
(including
quarters rainy
season) 6
Blank tender form at non-refundable cost of Rs._____/- (Rs.
_____/- if required by post) can be obtained from the office of
1
Executive Engineer (P.W.D.) Division, ______up to 4.00 p.m. during
working hours on all working days (Except Sundays and holidays)
from ………….. to ……………
1
Tenders will be received in office of Executive Engineer up to
3.00 pm on ……… and shall be opened on same day at 4.00 pm in
presence of contractors who may like to attend.
The right reserves to reject any or all tenders, without assigning
1
any reasons.
Sd/-
Executive Engineer (PWD)

Page No. 19 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.5 b) Differentiate between depreciation and obsolescence on the basis
Ans. of definition, method of calculation and recovery period.
Sr. Points
Depreciation Obsolescence
No

1 Definition The physical loss in The loss of the property

the value of the because of change in
property caused by its fashion, style, new
2
use life, wear, tear inventions, modern
and decay, is called facilities etc. is called as
as depreciation. obsolescence.

2 Method of Depreciation can be Obsolescence cannot be

calculation determined by calculated or determined 2 6
various methods. by only method.

3 Recovery Depreciation depends Obsolescence does not

period upon the age of the depend upon the age of
property. More is the the property. The
2
life; more will be the reduction in the value of
depreciation. the property may be
sudden.

c) Draft detailed specifications for first class brick work.

Ans. Specifications of 1st class brick work includes the following items:
a) Material of bricks:
The bricks shall be table moulded, well burnt, copper coloured,
free from any cracks fissures and defects and with sharp edges.
The bricks shall be of uniform shape and size. When two bricks
struck with each other, bricks should give clear ringing sound. 2
The crushing strength or compressive strength of brick shall not
be less than 10.5 N/mm². The bricks shall not absorb water more
than one fifth of their weight when soaked in water for onehour. 6
b) Mortar:
The brick work shall be worked in cement mortar or lime
mortar, and mixing of cement, sand and water shall be as per the 2

Page No. 20 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.5 c) specified proportion. In case of wet sand, its quantity shall be
Ans. increased suitably so as to allow for bulkage. In case of cement
mortar the unit of measurement shall be a bag of cement (0.035
cu.m.) Sand shall be measured in boxes of suitable size 35cm x
25cm x 40cm as per the specified proportion.
c) Mixing:
Materials of mortar shall be first mixed without water until a
uniform colour is obtained. The mixing shall be done on a
clean water tight platform. After addition of required fresh
potable water, the mixture shall be mixed at least three times
with the help of spade. Only the quantity of cement mortar
which can be used within 30 minutes shall be prepared at a
time. The bricks shall be well soaked in water for at least 12
1
hours before their use. The broken bricks shall not be used
except as closer. The mortar joints shall break for bonding and
good key and shall not be more than 10mm in thickness.
Bricks shall be laid with frogs upward, except in the top
course. Brickwork shall not be carried out more than 1m in
height at a time. All joint shall be raked and faces of wall shall
be cleaned at the end of each day‟s work. The brickwork shall
be cured, for at least 15 days. . For all exposed brickwork,
double scaffolding shall be used. For all other brickwork in
building, single scaffolding shall be permitted.
d) Measurement:
The length and height shall be measured as on at site. The
1
thickness of walls shall be paid for as one brick, one and a half
bricks, and two bricks in cu.m.

Page No. 21 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q.6 Attempt any TWOof the following: (12)
a) A building is constructed at a cost of Rs.4,00,000/-.Calculate the
monthly rent of the property if –
i.) Cost of land is Rs.1,00,000/-
ii.) Return expected on cost of land is 5%.
iii.) Return expected on cost of construction is 8%.
iv.) Repair and maintenance cost is 0.5% of construction cost.
v.) Other outgoings 20% of gross rent.
vi.) Sinking fund Rs.500/-.
Ans.
Given :
Cost of land= Rs.1, 00,000/-. = 540,000
Cost of building = 4, 00,000/-. = 140,000
Step 1 : To find net rent :
Net return,
8% on cost of building = 400000 1

= 32,000/-
5 1
5% on cost of land = 100 100000
6
= 5,000/-
Gross rent = Net rent + out going
 Net rent = Net return/annum
1
For outgoings assuming Gross rent= x
Outgoing = 0.20x
Net rent = 5000 + 32000
= 37000/-
1
Other outgoings =
Repair and maintenance cost= =2000/-

Sinking fund=Rs.500/-
Outgoings=(0.2x)+2000+500
Outgoings=(0.2x)+2500
Step 2 : To find gross rent : 1

Page No. 22 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q. 6 a) Gross rent=37000 + 0.20x+2500

0.80x=39500

x= 49375/year

Step 3 : To find gross rent per month :

 Gross rent per month = 49375/12
= 4114.58 1
Gross rent per month=Rs.4115/-
b) Explain the terms:
i.) Rate list method.
ii.) Day work method.
Ans. i.) Rate list method:
This method is suitable for petty work when the cost is
small. Hence various contracting firms are not interested in
carrying out work and advertisement in newspaper is not 3
justified for work of small magnitude. For such petty work
list of petty workers are kept in the office of executive
engineer. Cost of any individual work to be executed does
not exceed Rs.3000/- .The petty workers will quote rate and
lowest offer is accepted. 6
ii.) Day work method:
There are certain works of special nature which cannot be
measured hence their valuation is made on basis of actual
material and labour used. For e.g. decorative plaster work. In
3
such cases day work method is adopted for valuation of
above items on basis of actual material used and number and
class of labour employed and tools and plants required for
work. In this method contractor has to maintain day to day
account of material consumed, the labour, types of labour,
the hours for which each labour is employed is filled in day
work sheet. Contractor is paid on the basis of net cost of
various material required and wages paid to the labour plus

Page No. 23 / 24
 MAHARASHTRA STATE BOARD OF TECHNICAL EDUCATION
(Autonomous)
(ISO/IEC - 27001 - 2013 Certified)
SUMMER-2023 Examination
Model Answer-Only for the Use of RAC Assessors
Subject: Contracts And Accounts Sub. Code: 22601

Que. Sub. Total

Model Answer Marks
No. Que. Marks
Q. 6 20- 25 % as his profit.
c) Explain Negotiated contract and Target contract.
Ans. Negotiated contract:
In this contract work is awarded to contractor by mutual
negotiation between parties without calling tender but within
selected contractor after studying their previous experience
and reputation. These contracts are not suitable for PWD work.
3
As contract is given to selected person by mutual negotiation
chances of disputes will be less. This type of contract is
suitable for work where time is important and work has to
complete at short notice.
6
Target contract:
This contract is combination of cost plus percentage and cost
plus variable fee contract. In this contract contractor is paid on
the basis of actual cost of work executed by him and agreed
percentage of cost as his profit plus or minus certain amount
3
on the saving or excess against target cost. Contract documents
are not necessary at the time of signing the agreement. This
contract encourages contactor to use his skill and experience in
keeping the cost as low as possible. This contract is suitable
for private work.

Page No. 24 / 24