Apex Management
Labour Laws Consultants
Korgaonkar K A
+1 Other

Cite.Co is a repository of information and resources created by industry seniors and experts sharing their real world insights. Join Network
Im working in educational institute governed by the UGC,hence-central government.The institute is building campuses in various states.The institute has appointed PMC-project management consultant,architects and contractor for building the buildings.
1.Will BOCW act be applicable to the institute/PMC/contractor?
2.Will the institute or contractor require to pay BOCW cess?if yes, then at what rate? and time?
3.What other legal obligations will the contractor need to satisfy under the BOCW Act?

Dear Vinayak_bhandarkar,

Point wise answers to you, are as under:

BOCW Act will be applicable to your institute as a whole. Provisions of this Act will apply to contractors also but not to PMC since PMC does not engage in any "building or other construction work" as defined in Section 2(d) or employ any "building worker" as defined in Section 2(e).

The Institute (and the contractor according to me) is liable to pay the cess at min 1% and max 2% on total cost of construction (excluding land cost and compensation paid / payable under WC/EC). However, PE can recover the amount of cess from contractor if provided in agreement with him.

Collection of cess is depending upon the State Law or procedure in this regards.

Contractor is liable to obtain Registration Certificate under BOCW Act, register his building workers as beneficiaries under the Act, submit work commencement / completion notice, annual return, maintain various registers, records, notices, reports, certificates etc. under this Act. The contractor is liable to comply various provisions in regards to welfare, safety and health.

This Act is full of ambiguities. To know about it, one has to read the Law and understand it.

Isn’t costs towards engaging a Project Consultant a part of the total cost of construction?
Dear Vinayak,
1. BOCW Act is applicable to your institution and you are liable for making compliance to the provisions. The contractor’s compliance is to get himself registered, issue identity cards to his workers.
2. The institute is liable to pay the cess at 1% to the total cost of project excluding cost of land.
Collection of cess is depending upon the State Law or procedure in this regards.
3. Contractor is liable to get himself registered under CLA and BOCW, registered his workers, maintain various records prescribed under labour laws.

This discussion thread is closed. If you want to continue this discussion or have a follow up question, please post it on the network.
Add the url of this thread if you want to cite this discussion.

About Us Advertise Contact Us
Privacy Policy Disclaimer Terms Of Service

All rights reserved @ 2020 Cite.Co™