Professional issues explained

1. DAYANAD SAGAR ACADAMYOF TECHNOLOGY & MANAGEMENT
Bangalore 560082
Professional Practice – II
As prescribed by the Visvesvaraya Technological University
Syllabus For the B.Architecture Degree course
By K.S.Mukunda Prof Emirates.
DSATM Bangalore
Feb-2016
Architecture in a place has legal & and state governamental interventions
01
In the architectural profession, technical knowledge, management, and an understanding of business are as important as design

2. Portion for Professional practice –II, VTU Syllabus for B.Arch 8th sem.

3. Some important Definitions
Business: The activity of providing goods and services involving financial and commercial and industrial aspects with a rightful concern or responsibility,
Ethics : The principles of right and wrong that are accepted by an individual or a social group. Conforming to accepted standards of social or professional
behavior. Moral principles that govern a person's behavior or the conducting of an activity. ( synonyms: moral code, morals, morality, moral stand, moral
principles, moral values, rights and wrongs, principles, ideals, creed, credo, ethos, rules of conduct, standards (of behavior), virtues, dictates of conscience)
Profession; An occupation requiring special education with Tenets ( a doctrine that is proclaimed as true) Definition of tenet. : a principle, belief, or doctrine
generally held to be true; especially : one held in common by members of an organization, movement, or profession.
Tribunal; A tribunal, generally, is any person or institution with authority to judge, adjudicate on, or determine claims or disputes—whether or not it is called a
tribunal in its title. The Central Administrative Tribunal has been established for adjudication of disputes with respect to conditions of service of persons
appointed in connection with the affairs of the local authorities
Contract; A binding agreement between two or more persons that is enforceable by law, Engaged by written agreement
Negotiations; A discussion intended to produce an agreement. The activity or business of negotiating an agreement; coming to terms
Liabilities; The state of being legally obliged and responsible, At risk of experiencing something usually unpleasant, Subject to legal action (likely to be affected
with)
Code: A set of rules, principles or laws (especially written ones)
Etiquette; Rules governing socially acceptable behavior
Negligence: Failure to act with the prudence that a reasonable person would exercise under the same circumstances. It amounts to failure to take reasonable
amount of care for offering the desired professional services and can results in deficient service for legal action in the performance of duties . An Architect is
responsible for Negligent act.
Incompetence; Lack of physical or intellectual ability or qualifications & Inability to function properly as costs & expenses are involved.
Ordinances; The act of ordaining; the act of conferring (or receiving) holy orders, An authoritative rule
Arbitration : The settling of disputes (especially labor disputes) between two parties by an impartial third party, whose decision the contending parties agree to
accept. Arbitration is often used to resolve conflict diplomatically to prevent a more serious confrontation. (synonyms: adjudication, mediation, negotiation,
conciliation, intervention,)
conciliation; the action of stopping someone being angry . the action of making one view or belief compatible with another. Reconciliation is used to ensure that
the money leaving an account matches the actual money spent on an action. (synonyms: appeasement)
Courts; A court is a tribunal, often as governmental institution, with the authority to adjudicate legal disputes between parties and carry out the administration
of justice in civil, criminal, and administrative matters in accordance with the rule of law. In both common law and civil law legal systems, courts are the central
means for dispute resolution, and it is generally understood that all persons have an ability to bring their claims before a court. Similarly, the rights of those
accused of a crime include the right to present a defense before a court.
Covenants; Covenants are concerned with the prevention of certain actions on specific properties.
Tresspass; Tresspass It is the unauthorized entry onto the land of another for ex, Trees overhanging the boundary and causing problems to the neighbour
Estoppel ; Legal rule of evidence (and not a cause of action) which (1) prevents a party from making an allegation or denial that contradicts what it had previously
stated, or what has been legally established, as the truth, (2) supports a claim for damages of the party that had a good-faith reliance on a misleading
representation of another party. ( If someone has been making a false allegation against you then you should file for an estoppel to make them stop it immediately.)

4. Importance of Architects Site visits & Site meetings
For Architects site visits, there is no specific frequency. Its left to the Architects professional
judgement. The Visit are to be appropriate to the Various stages of Construction, frequency of visit
would depend on the character of the contractors work on site. Some architects prefer to visit either
every week/biweekly/monthly so that the contractor / sub contractor, be on hand to answer some
specific issues & related questions and the Architect will issue instructions to the contractor or his
representative for an effective, necessarily, required & modified actions. to co ordinate with various
other works/agencies
The architect needs to choose which meetings require a face to face meeting, whether at the site or
at the architect's office, and which meetings might be just effective if held virtually. Architects
typically have ON-Site meetings with Clients (Owners) but many sub- consultant meetings/discussions
are held virtually using many other methods. (Telephone meet/web based meets etc. now a days,
video conferences have also become common in huge multi- national projects)
Project team meetings ;
It’s a platform for a team work to take place in big construction projects. All team members participate equally while being respectfully
positive in moving the design process forward. In the case of Large construction projects with more number of stake holders , it may
require more organized & detailed meeting schedules. Successful Team Meetings need a certain skill in order to be efficient and to allow
for effective communication & information exchange.
Client meetings ; At the beginning of the project the architects group & the clients group meet with all stakeholders in charge of
managing the project for the purpose of maintaining the goals of the project while keeping the project on schedule and within the
scheduled budget price. For smaller projects the client group may contain one or two representatives of the owner.
Consultants meetings ; are usually structured and attended by the Architects project manager. With the integration of consultants work
with the conceptual design. This meeting is very important as decisions arrived at, will affect all the progressive works in general.

5. Architect's instruction
• Construction contracts generally give the contract administrator the power to issue instructions to the contractor. These instructions can be called
‘contract administrator’s instructions’ or ‘architect’s instructions’ (AI's). We have used the terms ‘architect’ and ‘architect’s instruction’ below, but
they could easily be replaced with ‘contract administrator’ and ‘contract administrator’s instruction’.
• Broadly, Instructions may be given:
• To vary the works.
• To postpone the works.
• To remedy workmanship, goods or materials which are not in accordance with the contract.
• To sanction a variation made by the contractor.
• In relation to the expenditure of provisional sums.
• To open up work for inspection.
• To carry out tests.
• To exclude persons from the site.
• The contractor must comply with the instructions within certain limitations. The contractor has the right to ‘reasonably object’ to an instruction, and
instructions can only be given as empowered by the contract. On receipt of an instruction, the contractor may ask the architect to inform them
which conditions empower them to make that instruction. Disagreement about the validity of an instruction may result in a dispute being deemed
to have arisen, and the dispute resolution procedures of the contract will then come into force.
• If an instruction requires a variation in design to be carried out by the contractor (such as on adesign and build project), the instruction may be
considered to alter the employer’s requirements.
• If an instruction constitutes a variation, then the contractor may be required to give a variation quotation, and the works described in the
instruction will not begin until the architect has confirmed their acceptance of the quotation.
• If the contractor does not follow an instruction, the architect may be required to issue a 'notice to comply' to the contractor. If they still fail to
comply, the architect can instruct others to carry out the work and the contractor will be liable for any additional costs incurred. It is important
therefore that such costs are properly recorded, and if possible a range of quotes obtained.
• Contracts can be vague about the nature of instructions, other than that they should be given in writing. They should also be dated and signed.
There are various instruction pro-forma that can be purchased. It is sensible to send an instruction by recorded delivery, or to confirm its receipt in
the minutes of subsequent meetings.
• If an instruction is given verbally, either the architect should subsequently confirm the instruction in writing, or the contractor should confirm it in
writing, and unless the architect tells the contractor that the instruction is incorrect, then the contractor’s description of the instruction will stand.
See Confirmation of verbal instruction (CVI) for more information.
• Where an instruction is given to open up work or to carry out tests, costs incurred will be added to the contract sum unless they were provided for
in the contract bills, or if the work opened up or tested proves to be defective. If such an instruction is given because other similar work, materials
or goods were defective, then no addition will be made to the contract sum as long as the instruction is reasonable.
Construction Supervision & Contract Administration

6. Clerk of works
• A clerk of works is a manager on a construction site who checks to see that work is carried out properly and that health and safety
rules are being followed.
• The Clerk of Works often abbreviated CoW, is employed by an architect or a client on a construction site. The role is primarily to
represent the interests of the client in regard to ensuring that the quality of both materials and workmanship are in accordance with
the design information such as specification and engineering drawings, in addition to recognized quality standards.
Their role
• The role, to this day, is based on the impartiality of the clerk of works in ensuring that value for money for the client - rather than the
contractor - is achieved through rigorous and detailed inspection of materials and workmanship throughout the building process. In
many cases, the traditional title has been discarded to comply with modern trends, such as site inspector, architectural inspector and
quality inspector, but the requirement for the role remains unchanged since the origins of the title.
• The clerk of works is a very isolated profession on site. He/she is the person that must ensure quality of both materials and
workmanship and, to this end, must be absolutely impartial and independent in decisions and judgments. He/she cannot normally, by
virtue of the quality role, be employed by the contractor - only the client, normally by the architect on behalf of the client. His/her role
is not to judge, but simply to report all occurrences that are relevant to the role.
• Clerks of Works are either on site all the time or make regular visits. They must be vigilant in their inspections of a large range of
technical aspects of the work. This involves:
• making sure that work is carried out to the client's standards, specification, correct materials, workmanship and schedule
• becoming familiar with all the relevant drawings and written instructions, checking them and using them as a reference when
inspecting work
• making visual inspections
• taking measurements and samples on site to make sure that the work and the materials meet the specifications and quality standards
• being familiar with legal requirements and checking that the work complies with them.
• having a working knowledge of health and safety legislation and bringing any shortfalls observed to the attention of the resident
engineer./supervisor appointed by the contractor.
• advising the contractor about certain aspects of the work, particularly when something has gone wrong, but this advice should not be
interpreted as an instruction

7. Site office.
In all big project construction sites, requires office, mess room, canteen and
changing room buildings that are comfortable, attractive and versatile, as well
constructed in a controlled setting and can be utilized anywhere. With variety ll
as being robust and secure enough to withstand the rigours of busy construction
sites.These buildings are of floor plans available, the field offices can easily be
custom designed for any space needs ..
Britco's manufacturing plant builds prefabricated mobile offices for a variety of
uses including: job site office trailers, construction site offices, mobile
temporary business office space, special events offices, modular
administrative,offices
Bill checking & payments; The payment to the contractors for works or supply or material, road metal and plants etc. are made on the
basis of measurements recorded in the measumreent books. When the work or supply is completed or sufficiently progressed, the
detailed measurements are taken usually by the section officer / supervisor/Resident Architect engineeer and it is recorded in the
measurement book and an abstract of quantities are prepared and the cost is calculated at the rate of the contract agreement. From
the abstract of quantity and the rate, a bill is prepared for payment.
Voucher: Voucher is a written document with details which is kept in record as a proof of payment. For any payment, a bill is prepared
and payment is made on the bill, duly checked and acknowledged by the payee, by signature or revenue stamp as required and after
payment is made, bill becomes voucher which is kept in record.
It is the primary duty of the Architect either to approve or condemn the work done by the contractor and certify the payment due. From
time to time.. These duties are discharged as an agent of the owner but when he issues the certificates his position changes from an
agent to that of a judge. The architect is acting in a quasi judicial manner between the owner & contractor, & he needs to be impartial
to either of the parties. The certificate is only a mode of expressing the satisfaction of the executed works at different stages of work
and it is as given under
1. Interim certificate.
2. Certificate of virtual completion.
3. Penultimate certificate
4. Final Certificate.

8. Construction disputes;
change of project’s scope, shortage of manpower and technical resources, lack of planning and finance management, to name a few.
Delays (and even rampant delays) are clear and present risks for infrastructure projects in India. Causing many types of construction
disputes. legal disputes between developers and executing agencies (contractors) related to time overruns appear to have been
increasing over the past few years. The genesis of such disputes is usually the delay clause in the contract itself – which imposes stiff
legal ramifications upon the party responsible for the delay. the need of the hour is honest and transparent dealing between the
parties to a project contract – not only through careful contract mechanisms, but also by realistic project management. While it is
undeniable that external factors beyond control of both parties do play a major role in delays,
There may be only one contract, if the work is small in magnitude. Or, there may be a number of contracts, where the project is a large
one - a case of "horizontal multiplicity". If the contract is a complex one, then there may be an hierarchy of contractors, involving
several "sub-contractors". That can be called an instance of "vertical multiplicity". But, whatever the nature and magnitude of the
contract involved, it is obvious that the transaction is a consensual one, intended to have "defined legal consequences". In terms of the
Arbitration and Conciliation Act, 1996, it is a "defined legal relationship", which is contractual in nature. It is in this respect, that the
law of contracts becomes very relevant.
Sources of the law
Undoubtedly, there is no separate set of legal rules for construction contracts, as such. The law relevant to such contracts is to be
derived (in a broad sense) from the same sources of law, as are the sources relevant for any other contract. These sources (in the main)
are - the law of contracts, and the law of dispute resolution (through courts or otherwise). In regard to some contracts, there also exist
special statutes dealing with buildings etc. - such as, the Defective Premises Act, 1972 (in U. K.)
There may be only one contract, if the work is small in magnitude. Or, there may be a number of contracts, where the project is a large
one - a case of "horizontal multiplicity". If the contract is a complex one, then there may be an hierarchy of contractors, involving
several "sub-contractors". That can be called an instance of "vertical multiplicity". But, whatever the nature and magnitude of the
contract involved, it is obvious that the transaction is a consensual one, intended to have "defined legal consequences". In terms of the
Arbitration and Conciliation Act, 1996, it is a "defined legal relationship",which is contractual in nature. It is in this respect, that the law
of contracts becomes very relevant.

9. the law of contracts
certain aspects of the law of contracts acquire special relevance in the context of construction contracts. So do some aspects of the law of
dispute resolution and the law of arbitration (as will be dealt with, presently). In particular, in a construction contract, the number of
persons interested in its successful completion would be large. Hence, the number of persons who can benefit from prompt and peaceful
settlement of disputes, is also correspondingly large.
Nature of Construction projects and problems involved
special features of the construction industry can be thus enumerated:
(a) The industry itself is a specialised one, with its own patterns and practices.
(b) Planning and execution of a construction project involves numerous parties and organisations, who must work in unison -
though temporarily. A small
deviation (real or alleged) affects numerous parties.
(c) A construction project is a continuous one, usually spread over a number of years. A dispute that operates as an
impediment at any single stage may upset the entire time-table, unless the dispute is speedily resolved.
(d) Some of the problems that arise in the working of the project are not foreseeable or, even if they are foreseeable, their
magnitude may not be foreseeable. If litigation is resorted to, then such problems may increase (rather than resolve) the
tension generated by the emergence of various problems.
Proper approach
When a legal question arises pertaining to a construction contract, one has first to study and apply the provisions or rules of the general
law of contracts, and then to see whether any special or peculiar approach (in applying those rules) is needed, in the light of the fact that
one is concerned with a construction contract. And, of course, the specific terms of the particular contract under consideration have to be
kept in mind.
Categories of dispute resolution
Resolution of disputes comprises:
(a) resolution without litigation, (b) resolution through litigation, and (c) resolution through alternative dispute resolution.
The term "Alternative Dispute Resolution" ( ADR ) in its wider sense, can include arbitration also
The above discussion is intended merely to highlight certain aspects of constriction law, particularly as they have come up in the course of arbitration proceedings

10. Central Government Act
THE ARBITRATION AND CONCILIATION ACT, 1996
This Act called the Arbitration and Conciliation Act, 1996. extends to the whole of India: they relate to international commercial arbitration
subject to the modification that for the word “arbitration” occurring therein, the word “conciliation” shall be substituted. It shall come into
force on such a date, as the Central Government may appoint by notification in the official Gazette. For dealings on a particular case of
dispute.
(a) “arbitration” means any arbitration whether or not administered by permanent arbitral institution;
(b) “arbitration agreement” means an agreement referred to in section 7;
(c) “arbitral award” includes an interim award;
(d) “arbitral tribunal” means a sole arbitrator or a panel of arbitrators;
(e) “Court” means the principal Civil Court of original jurisdiction in a district, and includes the High Court in exercise of its ordinary original
civil jurisdiction, having jurisdiction to decide the questions forming the subject-matter of the arbitration if the same had been the subject-
matter of a suit, but does not include any civil court of a grade inferior to such principal Civil Court, or any Court of Small Causes;
(f) “international commercial arbitration” means an arbitration relating to disputes arising out of legal relationships, whether contractual or
not, considered as commercial under the law in force in India and where at least one of the parties is—
(i) an individual who is a national of, or habitually resident in, any country other than India; or
(ii) a body corporate which is incorporated in any country other than India; or
(iii) a company or an association or a body of individuals whose central management and control is exercised in any country other than
India; or
(iv) the Government of a foreign country
Administrative assistance.—In order to facilitate the conduct of the arbitral proceedings, the parties, or the arbitral tribunal with the
consent of the parties, may arrange for administrative assistance by a suitable institution or person
Arbitration Agreement : _“arbitration agreement” means an agreement by the parties to submit to arbitration all or certain disputes which
have arisen or which may arise between them in respect of a defined legal relationship, whether contractual or not. It may be in the form of
an arbitration clause in a contract or in the form of a separate agreement.
An arbitration agreement shall be in writing. a document signed by the parties; The parties are free to determine the number of arbitrators,
provided that such number shall not be an even number for finding a solution to their dispute.
An arbitrator may be challenged only if-(a) circumstances exist that give rise to justifiable doubts as to his independence or impartiality, or
(b) he does not possess the qualifications agreed to by the parties.

11. Order of Reference
The Order of Reference in arbitration is an Agreement drawn between the disputing parties referring the matter for Adjudication by an
Arbitrator, after the actual dispute has arisen. It contains the names of the Arbitrators, details of the specific dispute & a time limit within
which the Arbitrators should declare the award.
The difference between an Agreement of Arbitration & an Order of Reference is that, the former is executed before any dispute takes
place & does not contain any names of the Arbitrators and the latter is actually the submission prepared after the disputes have arisen,
containing all the details about the same.
“Submission to Arbitration” means submitting both the Agreement for Arbitration & the Order of Reference. to the selected Arbitrators for
their Judgment of the Case.
Arbitration Procedure
• The Arbiration can be with or without the intervention of the Court. In the former case, a regular suit is required to bring the
arbitration agreement on to the records of the Court. While in the later Case, No suit is Required to be filed to bring the Arbitration
agreement on to the records of the Court.
• When the intervention of the court is not there, Each party appoint his own arbitrator & the proceedings are conducted. In such
cases, there is a likelihood of some differences between the two arbitrators during the course of proceedings or at the time of
declaration of award ( Judgement) and if these differences are not resolved, the proceedings will never come to an end. Hence both
the Arbitrators appoint a third Arbitrator known as an UMPIRE and to whom all differences between the arbitrators are referred for
his decision. & the same is Final & binding on both the Parties.
• When the proceedings are required to be conducted with the intervention of the court, The court with the arbitration agreement to
be filed and an order of reference to the arbitrators who may be suggested by the parties are appointed by the Court. Unless
otherwise expressly provided in the arbitration agreement about the appointment of two or more arbitrators, the court may appoint
ONE arbitrator for the complete proceedings & he is known as SOLE ARBITRATOR.
An arbitration award (or arbitral award);
It is a determination on the merits by an arbitration tribunal in an arbitration, and is analogous to a judgment in a court of law.
Although arbitration awards are characteristically an award of damages against a party, tribunals usually have a range of remedies that can form a part of the award.
the tribunal may order the payment of a sum of money (conventional damages)
the tribunal may make a "declaration" as to any matter to be determined in the proceedings
in most jurisdictions, the tribunal has the same power as a court to:
• order a party to do or refrain from doing something ("injunctive relief")
• to order specific performance of a contract
• to order the rectification, setting aside or cancellation of a deed or other document.

12. The Courts: for the purpose of administrative
expediency, Different types of Legal questions are dealt
with in different courts. There is a wide variety of
specialist courts designed to provide an efficient means
of disposing off specific matters
Other means available for the resolution of disputes
include 1. Arbitration & 2. Special Tribunal,
These are less formal than the courts & may be set up to
reconcile the individuals rights with statutory demands
enacted ostensibly to protect him
GENERAL LAW

13. Dilapidation. & Valuation
Dilapidation; it means a state of disrepair of a building. It also indicates injuries to a property on account of its neglect. When
injuries are done by a tenant it is termed as “Waste”.
Waste is an injury to a property or alterations carried out by the tenant contrary to the interests of the landlord. There are 2
types of Wastes 1) Voluntary waste 2) Permissive waste.
Voluntary waste is the wrongful action of the tenant which he considers as essential for the beneficial enjoyment of the
premises ; like removal of a partition wall between two rooms or providing a door in a wall etc,. which may increase the value of
the property
Permissive waste means, neglecting the essential repairs to a building & thus allowing the building to pass into a state of
disrepair. Most of the properties in India are let-out on a monthly tenant basis and the responsibility of the repairs in such cases
are on the Owners of the building, thus the burden of permissive Waste is thrown on the Landlords whereas the tenants are
liable for Voluntary waste to the property. The owner of the building finds it difficult to carry out the repairs due to 1) Rents of
the old buildings are pegged or free zed at a level of a pertinent years rates say 1960s or 1970s and are economically hard
pressed. 2) Increased size of family in the occupied property has resulted in more Wear & Tare of the building. As such the
urgent repairs remain un attended & go on increasing till the building reaches a dilapidated stage. The building at this stage
requires RE-Construction.
A dilapidation Report is usually made with an estimated cost for all repairs. If the estimated cost for repairs exceeds the amount
more than 8 years of Gross Rent, then the building requires to be pulled down as it has completed its Economic Life, as the
building is fetching un-economic returns. The owner may also be thinking to put the land to a beneficial economic use, in which
case the building requires to be pulled down as money spent for repairs will be an Economic waste.
Valuation of Building
Real estate appraisal, property valuation or land valuation is the practice of developing an opinion of the value of real
property, usually its Market Value. The need for appraisals arises from the heterogeneous (varied) nature of property as
an investment class: no two properties are identical, and all properties differ from each other in their location - which is
one of the most important determinants of their value.
Valuation of a building depends on the type of the building, its structure and durability, on the situation, size, shape,
frontage, width of roadways, the quality of materials used in the construction and present day prices of materials.
Valuation also depends on the height of the building, height of the plinth, thickness of the wall, nature of the floor, roof,
doors, windows etc.
The valuation of a building is determined on working out its cost of construction at present day rate and allowing a
suitable depreciation.

14. Valuation
• Valuation is the technique of estimating and determining the fair price or value of a property such as a building, a factory
or other engineering structures of various types, including the Land over which it is located.
• In Essence:
• It is a Rational decision making process. Most of the important issues, hinges on the quality of valuation report. Valuation
is essentially a practical profession with immense application of matured commonsense and requiring ability to get along
with the people of varied interests and priorities.
• There are Six important Purposes of Valuation
• 1. Buying or Selling Property When it is required to buy or sell a property, its valuation is required
• 2. Taxation : To assess the tax of a property, its valuation is required. Taxes may be municipal tax,
• wealth tax, Property tax etc, and all the taxes are fixed on the valuation of the property.
• 3. Rent Function; In order to determine the rent of a property, valuation is required. Rent is usually
• fixed on the certain percentage of the amount of valuation which is 6% to 10% of valuation.
• 4. Security of loans or Mortgage; When loans are taken against the security of the property, its
• valuation is required.
• 5. Compulsory acquisition ; Whenever a property is acquired by law; compensation is paid to the
• owner. To determine the amount of compensation, valuation of the property is required.
• 6. Valuation of a property is also required for Insurance, Betterment charges, speculations etc.
Property; In its legal conception property is the right to possess, use and dispose of a thing. Technically therefore
property is not the thing itself but the right to, or interest in it. Practically however the thing itself is also termed
property.
Real property, sometimes called 'real estate' refers to ownership of land and things attached to it. Personal property,
refers to everything else; movable objects, such as computers, cars, jewelry, and sandwiches, or intangible rights,
such as stocks and shares

15. • Physical & Economic life of Properties
• The useful or economic existence of all classes of buildings, in the
modern day conditions, is constantly shortening.(many reasons
exist) A methodical system should be adopted by which provision
may be made for addressing this contingency. Some Buildings,
when they have been erected have not survived a period of
remunerative existence, and in some instances extensive
remodeling operations have been required to prolong their
economic existence.
• It has also been observed that the more prominent and valuable
the site, the earlier is the date at which the process of
reconstitution will be due. It is upon such sites, that the most
extensive and elaborate buildings are often erected.
• The Economic Life of a property, is the estimated period that a
fixed asset (building) will provide benefits to the building Owner,
for a specified period depending upon its Use-age value &
Popularity of its location & materials of construction. It is
usually less than the physical life of an asset because an asset
continues to have physical life, despite inefficiency and
obsolescence. Depreciation expense is typically based on the
economic life.
• The Economic life also reflects the remaining period for which real
estate improvements are expected to generate more income than
operating expenses cost.
Valuation is the technique of estimating and determining the fair price or value of a property such as a building, a
factory or other engineering structures of various types, including the Land over which it is located.
In Essence:
Valuation is a Rational decision making process. Most of the important issues, hinges on the quality of valuation
report. Valuation is essentially a practical profession with immense application of matured commonsense and
requiring ability to get along with the people of varied interests and priorities
The primary measure of an income producing property’s worth is the amount of income which a property can earn
or command in the local market. Therefore, it is important to derive an understanding of the rental income that
the space would command on the open market.
In any property the Operating exspences include ,
Fixed expenses (taxes and insurance etc.).Variable
expenses. Repairs and replacements., Other sources
of operating expense data. All these will have to be
considered for valuation.

16. • There are Six important Purposes of Valuation
• 1. Buying or Selling Property When it is required to buy or sell a property, its valuation is required
• 2. Taxation : To assess the tax of a property, its valuation is required. Taxes may be municipal tax,
• wealth tax, Property tax etc, and all the taxes are fixed on the valuation of the property.
• 3. Rent Function; In order to determine the rent of a property, valuation is required. Rent is usually
• fixed on the certain percentage of the amount of valuation which is 6% to 10% of valuation.
• 4. Security of loans or Mortgage; When loans are taken against the security of the property, its
• valuation is required.
• 5. Compulsory acquisition ; Whenever a property is acquired by law; compensation is paid to the
• owner. To determine the amount of compensation, valuation of the property is required.
• 6. Valuation of a property is also required for Insurance, Betterment charges, speculations etc.
• Value Determining Factors :
• 1. Demand & Supply : The factors that have an impact on the market value of a property are
• demand and supply forces operating in the market, type of property, quality of construction, the
• local infrastructure available and maintenance of the property as well as that of the premises
• 2. Layout ; Layout of premises and ancillary costs too are given importance in a property
• valuation. The layout of the premises in terms of optimum space utilization in an efficient
• manner helps the premises notch up valuable points. Ancillary costs of holding the premises like
• society outgoing for maintenance of the building, municipal taxes, etc would also determine the
• marketability of the premises.
• 3. Location ; Another prime determining factor, when it comes to property valuation, is the
• location or setting of the property. The valuation of an apartment or independent house, which is
• set near to the bustling market or office area can be quite high than that placed in a remote area.
• 4. Safety & Security ; Safety and security of the apartment is another factor which is closely
• looked upon in the present times. With incidents of robberies, burglary or theft increasing day in
• and day out, people are shifting base straight away. Today, a property located in or near the riot
• prone area has lower rates, even if it is in the best of location and filled with all the modern
• conveniences and amenities.
• 5. Other Factors ; Additional factors, such as plush green surroundings, good quality roads nearby,
• civic amenities like safe drinking water and systematic drainage system add to the valuation of
• the property. Good connectivity of the property with the bus depot, railway station and airport is
• equally important and adds to the face value of the apartment or house.
Six Methods of Valuation
1.Rental Method
of Valuation
2.Direct Comparisons
of the capital value
3.Valuation based on
the profit
4.Valuation based on
the cost
5.Development method
of Valuation
6.Depreciation method
of Valuation

17. • Leasehold; Rents provide a steady and guaranteed income
• A leasehold is a form of real estate ownership. When we speak of a lease, most people have the image of a standard rental agreement for an apartment or business
property. This type of lease is for a short term – usually a year or less and usually provides for a fixed monthly rental fee (although this can be variable, especially with
some types of business property) for the duration of the lease.
• Unlike a short term apartment or small business property lease, leaseholds are usually for a much longer term, frequently going for periods of up to 99 years.
• Ninety-nine years seems to be the maximum term of this type of lease and the 99 year limit appears to be based upon the common law concept known as the Rule
Against Perpetuities which is designed to prevent property from being tied up and controlled for too long from beyond the grave (for instance, the directors of the
Disney Corporation still find their hands tied in certain business dealings because of stipulations in the will and other legal devices created by the founder, Walt
Disney, who died in 1966 but is still able to exercise influence over the company forty years later). By limiting the maximum time the terms of a contract can remain
in force prevents descendants from being bound by rules and restrictions laid out generations earlier.
• This article is about a property agreement in private law. Leasing is a process by which a firm can obtain the use of a certain fixed assets for which it must pay a series
of contractual, periodic, tax deductible payments. The lessee is the receiver of the services or the assets under the lease contract and the lessor is the owner of the
assets. The relationship between the tenant and the landlord is called a tenancy, and can be for a fixed or an indefinite period of time (called the term of the lease).
The consideration for the lease is called rent. A gross lease is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly
incurred by the ownership
• Rent controls acts: were introduced in the early 1900s in the United States and some other parts of the world to check uninhibited rent increases and tenant eviction
during wartime housing emergencies. After World War II, there was a sudden increase in the demand for rentable housing from soldiers returning home. With
industrialization and corresponding urbanization, there was an increase in rural-urban migrations. To prevent rents from rising too much owing to this spurt in
demand, Rent Control Acts, under various names were introduced in many countries.
• STANDARD RENT Economic Arguments:
• Fixation of standard/fair rent (Worked out on the basis of the value of land and cost of construction when built, as per the provisions of the Rent Control Act) as a
percentage of the cost of construction is a major disincentive for those wanting to invest in rental housing as it gives a very low rate of return as compared to other
assets. This presents a gloomy picture of the future supply in the rental housing markets. The permission to increase rents by some percent after every three or four
years, granted by most of the RCAs is also redundant as the rate of increase of market rents is much larger
• Standard rent.- Standard rent in relation to any premises, shall be the rent calculated on the basis of ten per cent per annum of the aggregate amount of the cost of
construction and the market price of the land comprised in the premises on the date of commencement of the construction:
• The market price of the land shall be the price for which the land was bought as determined from the deed of sale registered under the Registration Act.
• Under most of the Rent Control Acts there is nothing illegal about charging a rent higher than the standard rent. Standard rents are fixed by the Rent Controller, only
if the tenant or the landlord approaches him for this purpose.
• Standard Rent is fixed as per the provisions of the Rent Control Act. Fair rent will be the rent that is reasonably charged for similar house property in the same
locality.
• Other charges payable.- A tenant shall be liable to pay to the landlord, besides the rent, the following charges, namely:- (a) charges, not exceeding fifteen per cent of
the rent for the amenities as specified in the Fourth Schedule or as agreed to between the landlord and the tenant; (b) maintenance charges at the rate of ten per
cent of the rent; (c) without prejudice to the liability of landlord to pay the property tax to the local authority, the pro-rata property tax in relation to the premises.
• The large urban groups have been excluded from the purview of Rent Control laws.
• a) The properties belonging to the government
• b) any tenancy created by a grant from the Government in respect of the premises taken on lease or requisitioned, by the Government
• c) newly constructed properties for a period of ten years from the date of construction
• d) any premises, residential or other, whose monthly rent exceeds three thousand rupees

18. PROPERTY LAW
Certain legal rights & constraints regarding Land may affect a) The choice of site for a particular development or b) the character of
the development if the site is already determined. The more important of these constraints are examined here LAND ; The major
characteristics of land are A.) Tenure , the duration of Tenants’ Rights B). Registration.
A) TENURE
A Tenents rights in Land are categorized as, 1.) Freehold 2) Leasehold
Freehold property enables the owner to retain full possession of the absolute title of the Land for an uncertain duration period. Whereas
Leasehold property enable the Lesse to nretain enjoyment of the Land, subject to the terms of the lease, for a specified number of years
only ( earlier the Lease period used to be 99 years now a days 25 years- shorter leases have become more common.) the Lease holders
pay a specified Fee called Ground Rent to the Freeholder. Multy occupancy dwellings must be sold Leesehold only. (FLATS)
B) REGISTRATION
The Land registration act has led to the compulsory Registration of land upon transfer of Land in all the states in India. Searching of in-
cumbrances of Registered Land is therefore less perilous than for un-Registered land, where care should be taken to consult all necessary
registers. In both cases, however searches are made in the relevant office of local land charges.
There are a number of laws related to property that affect building proposals they are
1. Boundaries 2. Easements, 3 Covenants, 4. Tresspass etc,.
Boundaries can be determined 1by examining the Title Deed. 2. By orders of certain authorities 3. by Presumption., where no definition
can be traced
Easements are legal rights enjoyed by one party over the land of another. They can be acquired by 4 ways. 1, By Statute, 2. by Expressive
deed 3. Implidely, by necessity (ie,. Support) 4. by Prescription.( A person using property in some way may be considered to have
certain common Law rights if he has enjoyed them for a long 20 year period.)
Types of Easements, 1. Right of Way ( these may be limited as to type of user or frequency of use)
2. Right of Light; day light regulation now fall under Planning Law
3. Rights of support from adjoining properties.
Building Bye Laws & Subdivision Regulations:
Building bye-laws are tools used to regulate Plot coverage, Building bulk, & construction aspects so as to achieve orderly development of an
Area. They are mandatory in nature & serve to protect buildings against Fire, Noise structural failure, Health hazards etc,. In the absence of
such a mechanism will lead to chaotic development & create inconvenience for the users and disregard for building aesthetics etc,.
Land Development is done with the division of a parcel into two or more parcels. The division of a lot or parcel of land into more lots or
other divisions of land for sale, development, or lease. Has to be done after following the prescribed Subdivision Regulations. The overall
purpose of a subdivision is to create an environment conducive to overall development and sustained growth, with development

19. A leasehold is a form of real estate ownership. When we speak of a lease, most people have the image of a standard rental agreement for
an apartment or business property. This type of lease is for a short term – usually a year or less and usually provides for a fixed monthly
rental fee (although this can be variable, especially with some types of business property) for the duration of the lease.
Unlike a short term apartment or small business property lease, leaseholds are usually for a much longer term, frequently going for
periods of up to 99 years.
Ninety-nine years seems to be the maximum term of this type of lease and the 99 year limit appears to be based upon the common law
concept known as the Rule Against Perpetuities which is designed to prevent property from being tied up and controlled for too long from
beyond the grave (for instance, the directors of the Disney Corporation still find their hands tied in certain business dealings because of
stipulations in the will and other legal devices created by the founder, Walt Disney, who died in 1966 but is still able to exercise influence
over the company forty years later). By limiting the maximum time the terms of a contract can remain in force prevents descendants from
being bound by rules and restrictions laid out generations earlier.
This article is about a property agreement in private law. Leasing is a process by which a firm can obtain the use of a certain fixed assets for
which it must pay a series of contractual, periodic, tax deductible payments. The lessee is the receiver of the services or the assets under
the lease contract and the lessor is the owner of the assets. The relationship between the tenant and the landlord is called a tenancy, and
can be for a fixed or an indefinite period of time (called the term of the lease). The consideration for the lease is called rent. A gross lease
is when the tenant pays a flat rental amount and the landlord pays for all property charges regularly incurred by the ownership
Leasehold; Rents provide a steady and guaranteed income
Rent controls acts: were introduced in the early 1900s in the United States and some other parts of the world to check
uninhibited rent increases and tenant eviction during wartime housing emergencies. After World War II, there was a
sudden increase in the demand for rentable housing from soldiers returning home. With industrialization and
corresponding urbanization, there was an increase in rural-urban migrations. To prevent rents from rising too much
owing to this spurt in demand, Rent Control Acts, under various names were introduced in many countries.
Covenants are concerned with the prevention of certain actions on specific properties. A restrictive covenant is used by a developer to
prevent the growing of hedges or the building of fences to balcony spaces in an apartment block etc,. Tresspass It is the unauthorized entry
onto the land of another for ex, Trees overhanging the boundary and causing problems to the neighbour constitute a technical trespass
and the later may lop the branches with impunity( Exemption from punishment or loss)

20. STANDARD RENT Economic Arguments:
• Fixation of standard/fair rent (Worked out on the basis of the value of land and cost of construction when built, as per the
provisions of the Rent Control Act) as a percentage of the cost of construction is a major disincentive for those wanting to
invest in rental housing as it gives a very low rate of return as compared to other assets. This presents a gloomy picture of the
future supply in the rental housing markets. The permission to increase rents by some percent after every three or four years,
granted by most of the RCAs is also redundant as the rate of increase of market rents is much larger
• Standard rent.- Standard rent in relation to any premises, shall be the rent calculated on the basis of ten per cent per annum of
the aggregate amount of the cost of construction and the market price of the land comprised in the premises on the date of
commencement of the construction:
• The market price of the land shall be the price for which the land was bought as determined from the deed of sale registered
under the Registration Act.
• Under most of the Rent Control Acts there is nothing illegal about charging a rent higher than the standard rent. Standard rents
are fixed by the Rent Controller, only if the tenant or the landlord approaches him for this purpose.
• Standard Rent is fixed as per the provisions of the Rent Control Act. Fair rent will be the rent that is reasonably charged for
similar house property in the same locality.
• Other charges payable.- A tenant shall be liable to pay to the landlord, besides the rent, the following charges, namely:- (a)
charges, not exceeding fifteen per cent of the rent for the amenities as specified in the Fourth Schedule or as agreed to
between the landlord and the tenant; (b) maintenance charges at the rate of ten per cent of the rent; (c) without prejudice to
the liability of landlord to pay the property tax to the local authority, the pro-rata property tax in relation to the premises.
• The large urban groups have been excluded from the purview of Rent Control laws.
• a) The properties belonging to the government
• b) any tenancy created by a grant from the Government in respect of the premises taken on lease or requisitioned, by the
Government
• c) newly constructed properties for a period of ten years from the date of construction
• d) any premises, residential or other, whose monthly rent exceeds three thousand rupees
National Building Code of India 2005 (NBC 2005) (for building safety regulation)
The National Building Code of India (NBC), a comprehensive building Code, is a national instrument providing guidelines for regulating
the building construction activities across the country. It serves as a Model Code for adoption by all agencies involved in building
construction works be they Public Works Departments, other government construction departments, local bodies or private
construction agencies.
The Code mainly contains administrative regulations, development control rules and general building requirements; fire safety
requirements; stipulations regarding materials, structural design and construction (including safety); and building and plumbing
services.
The Code was first published in 1970 at the instance of Planning Commission and then revised in 1983. Thereafter three major
amendments were issued, two in 1987 and the third in 1997.

21. Liability of Architect (w.r.t Breach of Contract duty;)
The laws of the land mandate that the professionals should provide services to the consumers in a required manner exercising duty of care
and while doing so they should not commit any negligent act. In order to protect the interest of the consumers against the breach of duty,
the deficient services have been defined by the statute and legal actions have been initiated on the erring professionals
The client should be informed about the liability of the Architect towards the project in question. Some important points are;-
• a)The architect is not liable for consequential damages to the work. He is only liable upto 2 years from the date of completion of the
relavant part of the work
• b) An Architect does not gaurentee the work of any Contractor.
• c) The Architect has no liability whatsoever for any part of the work not designed by him or which has not been constructed under his
supervision
• d) The Architect has no liability whatsoever for any damage resulting from any act of contractor or supplier which is not in accordance
with the contract documents or the Architects instructions.
• e) The Architect has no liability whatsoever for any violation of legal provisions or rights of third parties unless these provisions or rights
have been specifically brought to the notice of the Architect by the client ( sub-division of Land by owner to his brothers etc) in writing.
In addition to the above points the Architect should also brief the client about certain aspects regarding Termination of Engagement, Copy
rights, Successors & assignments, Disputes & Arbitration.
Some Important points to note here are;-
• 1. The engagement entered into between the Architect & the Client may be terminated by either of the parties upon reasonable Notice
being given (normally 3 months) & the Architect can Claim remuneration for the portion of work done by him.
• 2. Copy rights in all drawings and the works executed from them will remain the property of the Architect.
• 3. Whenever disputes arise between the parties regarding Scale of professional charges, it shall be referred to Arbitration of a person to
be agreed upon between the parties
Nature of Liability:
An architect is liable for the negligent act which he committed in the performance of his duties. The action against an architect can be
initiated by the Client on satisfying the following conditions :
(a) There must exist a duty to take care, which is owed by an architect to his client.
(b) There must be failure on the part of an architect to attain that standard of care prescribed by law, thereby committed breach
of such duty;
(c) The client must have suffered damage due to such breach of duty.

22. Special Conditions for the Building Contract
1. liquidated damages ; if, the contractor fails to complete the works in the completion period as
provided for in the contract, the owner shall become entitled to liquidated damages of an agreed
amount per day of delay or part thereof until the works are completed, which money may be
deducted by the owner from progress payments as they fall due and to the extent that such
liquidated damages are unpaid, the contract price shall be reduced, and, to the extent that such
damages exceed the balance of the contract sum payable, they shall be a debt recoverable by the
owner against the contractor.
2. Breach of contract; it is a legal cause of action in which a binding agreement or bargained-for
exchange is not honored by one or more of the parties to the contract by non-performance or
interference with the other party's performance. Where part or all of the contract price is to be
provided with payments being based on the value of the work the subject of the contractor’s
progress claim, then the Owner is not in breach if a lesser sum is paid to the contractor reflecting
the extent that the lending authority’s reasonable valuation of the works is less than the amount
of the progress claim.
3. Performance bonds : Refers to EMD, Security Deposit & issues related to Retention money ,etc,.
Which have been discussed in the previous semester ‘s portion)
END ; THANK YOU

23. Question Bank
Dayanand Sagar Acadamy of Technology & Management,
kanakapura road , opp. Art of living , Bangalore 560082
School of Architecture 8 th Sem B.Arch . (09 arc 8.4) Professional Practice- II
1st & 2 nd Assignment questions;
1. Explain the Architects role in site supervision, contract administration & liability
during breach of contract 10 marks.
2. Explain security deposit & its method of collection & its necessity 10 marks
3. Discuss the importence of Architect in resolving contract disputes in various forms
and the procedures followed 10 marks
4. What is a) Arbitration b) Arbitration Agreement c) Arbitration Award 10 marks
5. Discuss the duties and scope of an Arbitrator for solving the Disputes 10 marks
6. Write short notes on the following
a) Site book& site office,b) Site Instructions c) Clerk of works
d) Bill checking e)Quality auditing 10marks
7. What do you understand by Physical & economic life of Building 10 marks
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8. Explain the charecteristics, classifications &methods of VALUATION 10 marks
9. Explain the Construction handing over procedure & Final Certifications 10marks
10. Write short notes on the following , 10marks
a) FAR advantages & disadvantages b) National Building Code
c) Performance Bonds d) Bye-laws & Zoning Regulations
11. Discuss the issues involved in Land Holdings & land Tenure in our country 10 marks
12. Describe General Law for civil & criminal cases
& Property law for solving disputes 10marks
13. Describe the purpose & details of 10marks
a) Liquidated Damages b) Standard Rent c) Lease Rent issues
d) safe guards measures in construction industry
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Class teacher : Prof Mukund