What are the Statutory requirements and precautions in awarding contract for safeguarding managements interests?
From India, Sambalpur
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2From India, Sambalpur
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Contract Management in the Manufacturing Industry
In the manufacturing industry, especially during the project stage, understanding contract management is crucial. I am specifically interested in the statutory requirements related to this and need to know more in-depth about it. As I am working in a company that is currently in the project stage, it is necessary to gain more knowledge about contract management.
I hope members will help me in this regard.
Thank you,
Pratap
From India, Sambalpur
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In the manufacturing industry, especially during the project stage, understanding contract management is crucial. I am specifically interested in the statutory requirements related to this and need to know more in-depth about it. As I am working in a company that is currently in the project stage, it is necessary to gain more knowledge about contract management.
I hope members will help me in this regard.
Thank you,
Pratap
From India, Sambalpur
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Certainly, you will receive all the help from our members. If the factory is under construction, then you might have obtained approval for the construction of the factory under the Factories Act. After approval, the Building and Other Construction Workers Act, 1996 will come into effect until production commences. Once you engage contractors for construction, you will need to adhere to the Contract Labour (R&A) Act, 1970. The BOCW Rules of your state will outline provisions related to health, hygiene, safety, technical aspects, welfare measures, etc. By following the safety norms as per the BOCW Rules, you can prevent unsafe conditions on the construction site.
During this phase, you will need to comply with the BOCW Act and Rules, Contract Labour (R&A) Act and Rules, Payment of Wages Act and Rules, Minimum Wages Act and Rules, Payment of Bonus Act, Payment of Gratuity Act, and Interstate Migrant Workmen Act and Rules.
Once the manufacturing process begins, the BOCW Act and Rules will cease to apply, and the Factories Act will take effect.
To learn more about the BOCW Act and Rules, please refer to the entire thread at https://www.citehr.com/344521-buildi...lrker-law.html, where I have provided a detailed explanation.
I hope you understand the basic requirements. If you have any further questions, please feel free to reach out.
From India, Kumbakonam
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During this phase, you will need to comply with the BOCW Act and Rules, Contract Labour (R&A) Act and Rules, Payment of Wages Act and Rules, Minimum Wages Act and Rules, Payment of Bonus Act, Payment of Gratuity Act, and Interstate Migrant Workmen Act and Rules.
Once the manufacturing process begins, the BOCW Act and Rules will cease to apply, and the Factories Act will take effect.
To learn more about the BOCW Act and Rules, please refer to the entire thread at https://www.citehr.com/344521-buildi...lrker-law.html, where I have provided a detailed explanation.
I hope you understand the basic requirements. If you have any further questions, please feel free to reach out.
From India, Kumbakonam
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Sir Thanks for your reply and you are very rightly said. But i want to know about - What are things we should look in to while awarding contract to to a contractor?
From India, Sambalpur
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From India, Sambalpur
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Precautionary Measures for Contract Management
You should take precautionary measures as defined hereunder:
1. First of all, you should make a Contract Agreement as per mutually agreed terms and conditions on valid non-judicial stamp paper.
2. Then you should apply with the labor department for engaging Contract Labor and should get a Certificate of Registration from there.
3. You should issue Form No.5 to the Contractor to obtain a labor license from the Labor Department and keep a copy of the same with you.
4. Also, ensure the Contractor has obtained P.F. and ESI registration and keep a copy of the same with you.
5. Ensure that the workers are paid on time and correctly. It is better to engage your personnel at the time of wage payment.
6. Get a copy of the Chalan of ESI and PF dues duly deposited with the appropriate authorities.
7. Ensure the Contractor is maintaining all the registers prescribed under the Contract Labor Regulation Act.
8. Also, proper Insurance cover should be provided for All Risks (Contractor's All Risk Policy).
9. Proper statutory deductions viz. TDS, WCT are made at your end.
10. The Contractor is also liable to deposit Service tax for the work done, and you should obtain the proper tax deposited Chalan.
11. All deductions such as Security, etc., should be deducted as per terms.
12. B.G. should be obtained for Performance Guarantee or as per terms of inviting tender.
13. Hope this will help you a lot.
Regards, Raj.
From India, Bahadurgarh
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You should take precautionary measures as defined hereunder:
1. First of all, you should make a Contract Agreement as per mutually agreed terms and conditions on valid non-judicial stamp paper.
2. Then you should apply with the labor department for engaging Contract Labor and should get a Certificate of Registration from there.
3. You should issue Form No.5 to the Contractor to obtain a labor license from the Labor Department and keep a copy of the same with you.
4. Also, ensure the Contractor has obtained P.F. and ESI registration and keep a copy of the same with you.
5. Ensure that the workers are paid on time and correctly. It is better to engage your personnel at the time of wage payment.
6. Get a copy of the Chalan of ESI and PF dues duly deposited with the appropriate authorities.
7. Ensure the Contractor is maintaining all the registers prescribed under the Contract Labor Regulation Act.
8. Also, proper Insurance cover should be provided for All Risks (Contractor's All Risk Policy).
9. Proper statutory deductions viz. TDS, WCT are made at your end.
10. The Contractor is also liable to deposit Service tax for the work done, and you should obtain the proper tax deposited Chalan.
11. All deductions such as Security, etc., should be deducted as per terms.
12. B.G. should be obtained for Performance Guarantee or as per terms of inviting tender.
13. Hope this will help you a lot.
Regards, Raj.
From India, Bahadurgarh
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Contract Safety Management.pdf
QUARRIES ON CONTRACT LABOUR MANAGEMENT.docx