Understanding BOCW Act: What Are the Legal Obligations for Educational Institutes and Contractors?

I'm working in an educational institute governed by the UGC, hence - central government. The institute is building campuses in various states. The institute has appointed a PMC (Project Management Consultant), architects, and a contractor for constructing the buildings.

1. Will the BOCW Act be applicable to the institute/PMC/contractor?
2. Will the institute or contractor need 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?

Point-wise answers to your queries are as follows:

Applicability of the BOCW Act

The BOCW Act will be applicable to your institute as a whole. The provisions of this Act will apply to contractors, but not to the PMC since the 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).

BOCW Cess Payment

The Institute (and the contractor, in my opinion) is liable to pay the cess at a minimum of 1% and a maximum of 2% on the total cost of construction (excluding land cost and compensation paid/payable under WC/EC). However, the Principal Employer can recover the amount of cess from the contractor if provided for in the agreement. The collection of cess depends on the State Law or procedure in this regard.

Legal Obligations Under the BOCW Act

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

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

1. BOCW Act Compliance

The BOCW Act is applicable to your institution, and you are liable for complying with its provisions. The contractor is required to register themselves and issue identity cards to their workers.

2. Cess Payment Obligations

The institute is liable to pay the cess at 1% of the total project cost, excluding the cost of land. The collection of cess depends on the State Law or procedure in this regard.

3. Contractor's Legal Obligations

The contractor is liable to register themselves under the CLA and BOCW, register their workers, and maintain various records as prescribed under labor laws.

Regards