Building And Engineering Contracts By B S Patil Pdf Reader
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Construction projects invariably get delayed for variety of reasons in India and also elsewhere. Under the well settled law, a contractor is entitled to compensation for the delayed completion, if the delay is caused by breaches of contract conditions committed by the Employer. Claims of compensations invariably include significant sums by way of overheads and expected profit.
A contractor seeking compensation has to prove the actual loss incurred. The overheads include several dozens of heads of expenses incurred by the head office for a company as a whole and which are neither attributable to an item of work in a given contract nor for a given contract as a whole. It is, therefore, difficult to establish actual loss on account of overheads in a given contract except on pro-rata basis. The books of accounts and balance sheets of a company show the actual overheads for the company as a whole for each year as also the total turnover of the company or receipts from the contracts. From these known elements the percentage of overheads incurred by a company vis-a-vis its turnover can be worked out. Compensation for overheads is generally worked out based on the said percentage. The following three formulae have been traditionally used in calculating such loss.
Free Download Teamviewer Host 7i. The Hudson Formula The Emden Formula, and The Eichleay Formula. Unfortunately all of them have crucial defects in their use in practice. It is high time the industry as also judiciary takes note of the fourth method suggested by B. Patil in his book: Building and Engineering Contracts now in its 6 th edition of 2011. (Published by Mrs.