GUIDELINES ON - RITESritesltd.com/upload/misc/GCC/GUIDELINES_CP_Manag… · · 2016-02-08Guidelines, but the provisions in Contract which gives full powers to the ... Guidelines

GUIDELINES ON

CONSTRUCTION PROJECT

MANAGEMENT

JULY, 2011

FOREWORD

1.0 RITES has been handling Project Management Consultancy assignments for the past few decades. While some of the Clients, particularly Government Departments and Public Sector Undertakings, insist upon RITES adopting the Tender Document and Contract Management procedures of specific organizations such as that of Railways, CPWD, State PWD, MES, World Bank etc, there are also cases of Clients leaving it to RITES to decide on the documentation and procedures.

2.0 The need to have well documented Guidelines/Manual in an organisation to execute its construction activities in a uniform and well coordinated manner with least time and cost over-runs cannot be over emphasised. Such Guidelines are required to guide officials in their day to day work, so that there is systematic and uniform approach in decision making. The purpose behind issue of these Guidelines is to bring uniformity in dealing with various aspects of Project/Contract Management by all the Project Offices. The Guidelines on Construction Project Management were first issued in 2005 and revised in 2009. The 'Guidelines 2011' is the revised edition of ‘Guidelines 2009’.

3.0 Since the issue of Guidelines 2009, a number of amendments/new clauses/new paras have been incorporated by way of issue of circulars/correction slips. RITES Standard Tender and Contract Document and GCC have since been thoroughly revised and issued in June / July 2011. A number of circulars have also been received from CVC. New CPWD Works Manual 2010 has also been published. All these changes that have taken place since the publication of 2009 edition have been considered and suitably incorporated in the Guidelines 2011.

4.0 These Guidelines have been made out generally on the basis of CPWD Works Manual 2010 but also incorporate good practices in the Manuals/Instructions of other major organizations like Indian Railways, World Bank, Military Engineering Service etc. A few examples in this context are given below. These are only illustrative in nature and do not cover all such items.

(i) Contract Documents of World Bank, CPWD and Indian Railways provide for Pre-qualification Criteria different to what has been indicated in this Guidebook.

(ii) World Bank does not provide for any negotiations even with the lowest tenderer.

(iii) In the Indian Railways Contract Documents, the practice is to go in mostly for Percentage Rate Tenders in place of Item Rate Tenders.

(iv) In CPWD Contract Documents, there is no provision for a Tender Committee.

5.0 These Guidelines do not, however, supersede specific provisions, if any, in the Contract Documents. Where on any issue, specific instructions exist in the Contract Documents, they will take precedence over the provisions in these Guidelines, but the provisions in Contract which gives full powers to the Engineer-in-charge in dealing with the Contract would not override the internal

powers of authorities competent to take decisions in various matters vis-à-vis Engineer-in-Charge.

6.0 Revised Standard Tender Document 2011 based on CPWD Document but with some modifications has been issued separately. Where the Client leaves it to RITES to adopt its own set of Tender Documents, these Documents should be adopted and the Guidelines will be fully applicable in such cases. In other cases where the Client insists on adoption of other Standard form of Tender Documents such as of Indian Railways, World Bank, MES etc., the Guidelines should be followed subject to the stipulation that the provisions, if any, in the Contract Documents on any specific aspect of Contract Management will supersede the corresponding provisions in these Guidelines.

7.0 The Guidelines are divided into 27 Sections with Annexures kept at the end. Annexures have been numbered separately for each Section and reference has also been given therein to the corresponding Para number. Modifications made on Guidelines 2009 and incorporated in these Guidelines are attached.

8.0 The attention of RITES SBU Heads who will be involved in entering into

Agreements with the Clients for Project Management is specifically invited to Annexure 2.1 of the Guidelines giving details of a Model Agreement between RITES and the Client in cases where RITES acts for and on behalf of the Client as a Power of Attorney Holder and enters into the Works Contract with the Contractor. The provisions in this Annexure are the ideal ones and may require modification depending on the scope of works of the assignment and the provisions in vogue in similar consultancy agreements which the Client organisation may insist on adoption.

9.0 The attention of all RITES Engineers is also specially invited to Para 1.6 of the Guidelines on "Essential features of Good Project Management". The provisions should be carefully gone into and efforts made to follow the same. In exceptional circumstances where they cannot be observed in totality because of exigencies of work, reasons for the same should be kept on record with proper follow up action.

10.0 All SBU Heads must ensure that a copy of these Guidelines is given as a personal copy to each Engineer under them in whatever grade he is and take his acknowledgement in writing. An acknowledgement should also be taken from each such Engineer after a period of three months in confirmation of the fact that he has read and understood the contents of the Guidelines. The Guidelines may be retained by the Engineer till his retirement/leaving RITES service when the copy should be taken back by SBU Head. Similar procedure should also be adopted in future at the time of induction of fresh Engineers into RITES cadre. Same procedures will be required to be followed in future when dealing with Addenda & Corrigenda that may be issued to the Guidelines.

11.0 SBU Heads should also organise training programmes for the Engineers in their Units so that doubts, if any, can be got clarified.

12.0 It will be appreciated that in Guidelines/Manual of this nature, it may not be feasible to include material to cover each and every contingency that may arise in the course of execution of works, though efforts have not been spared to make it as comprehensive as possible. In the event of any contingency that might arise requiring supplementing/deviations from what is contained in these Guidelines so

as to suit the conditions on a particular project, the same may be done with the approval of appropriate authority.

13.0 This revised ‘Guidelines 2011’ has been prepared through the efforts put in by Shri R. Balasubramanian, ex-General Manager/Metro/Kolkata/Indian Railways and presently Advisor/RITES, who was also instrumental in making out the first Edition of Guidelines in 2005, Shri G.V.Chanana, Advisor, Contract Cell and a number of senior officers of RITES. No amount of words of appreciation and gratitude to them will be adequate for the purpose.

14.0 It is sincerely hoped that the ‘Guidelines 2011’ would serve the needs for which it has been published.

B.K. MAKHIJA Gurgaon Managing Director July 2011 RITES Ltd.

MODIFICATIONS MADE IN THE GUIDELINES “FEBRUARY 2009” AND INCORPORATED IN THE GUIDELINES “JULY 2011”

The following are the salient changes made in the “Guideline 2009” and incorporated in these Guidelines.

i) Section 4

Para 4.5.2 Detailed procedure to be followed in making out the Estimate for specialized Works like Box Pushing, Construction of PSC Girder Bridge over Railway Track etc., where the cost of enabling work is substantially high and also dependant on site conditions, has been indicated.

ii) Section 5

Para 5.2.2. GCC will not be available as a Priced Document and will be issued as a part of the Tender Document.

Para 5.3 This deals with Lump sum Contracts with an Annexure explaining the details.

iii) Section 6

Para 6.6.1 The existing provision that Press Notification is compulsory for all Open Tenders has been modified to restrict to only Tenders costing over Rs. 50 lakhs. Also it has been made clear that Addenda/Corrigenda to Tender Document will only be uploaded on RITES website with no individual communication to the Tenderers.

Para 6.7 The Minutes of the Pre-bid meeting etc. will be displayed only on RITES website. Also queries from Bidders should be sent at least 10 days in advance of the deadline for submission of Tender.

Para 6.8 Annexure 6.5 relating to this para has been simplified to reflect the methodology to be followed in laying down the qualification criteria.

iv) Section 8 Para 8.9.22

Procedure to be followed on a relook of the Estimate etc. in case of persistent high rates received on re-invitation of Open Tenders has been stipulated.

Para 8.14

Stress has been laid on the need for maintenance of copies of agreements in bound volumes with page numbering and date / initials with seal of both RITES and Contractor.

v) Section 10

Para 10.4 Performance Guarantee can be released even on Provisional Certificate of Physical Completion. Additional Performance Guarantee can be released even earlier on completion of items of works with unbalanced rates.

vi) Section 12

Para 12.5.5. This lists out the sequence of events on completion of work starting from Contractor’s Notice on completion of work till preparation of Final Bill.

Para 12.7.2 Clause 10CC on Price variation will be applicable only for works costing over Rs. 100 lakhs and not linked to the time of completion.

Para 12.7.7 Indices to be used for Price Variation have been modified in light of the Indices published by the Economic Advisor, Ministry of Commerce & Industry.

Para 12.8.5 The concept of making payment to the Contractor at 97% of BOQ rates for some quantity in excess of Deviation Limit has been introduced.

Para 12.9 Clause 14 of GCC has been re-introduced with the Heading “Taking away part work due to default of the Contractor and recovery of additional cost.”

vii) Section 17

Para 17.2.4 In case of quantities executed beyond the limit for which rates are available in Clause 12.2 of GCC, provisional payment may be made to the Contractor at 75% of BOQ rate pending approval of the revised rates by the Competent Authority.

viii) Section 19

Para 19.14.4 Stress has been made on the need for invoking Arbitration/Court Proceedings within the Limitation period laid down in the Limitation Act.

ix) Section 21 Para 21.1.5 There is no need for maintenance of two separate printed format of MBs. The Abstract of Measurements may be recorded in manuscript form in the same MB in which the measurements are recorded.

Para 21.6 The concept of “Computerised Measurement Book” as an alternative to conventional printed MB has been introduced. In the event of resorting to use of Computerised Measurement Book, the billing will also be computerized.

GUIDELINES ON

CONSTRUCTION PROJECT MANAGEMENT

JULY 2011 CONTENTS

SECTION PARA SUBJECT PAGE NO.1

INTRODUCTION

1.1 Preamble 1.2 RITES Documents 1.3 Integrity Pact 1.4 Types of Project Consultancy Assignments 1.5 Financial Liability of RITES 1.6 Essential Features of Good Project Management 2

CONTRACT WITH CLIENT

2.1 Signing of Contract with Client 2.2 Definition of Deposit Works 2.3 Realization of Contribution for Deposit Works 2.4 Execution of Deposit Works 2.5 Endorsement of Copies of Documents to the Client 3

PROJECT ORGANISATION AND RESPONSIBILITY FOR PROJECT IMPLEMENTATION

3.1 Organisational Set up 3.2 Field Organisation 2.3 Organisation at SBU Office 3.4 Desirable Level of Organisation 3.5 Field Activities for which Controlling Site Engineer will

be responsible

3.6 SBU Office Activities for which the Project Coordinator will be responsible

4

PREPARATION OF ESTIMATES

4.1 Preliminary Estimate / Abstract Estimate 4.2 Detailed Estimate / Technical Sanction 4.3 Detailed Estimate for Technical Sanction – Procedure

for Preparation

SECTION PARA SUBJECT PAGE NO. 4.4 Detailed Estimate-Non Schedule items-Market Rate

Analysis

4.5 Detailed Estimate –Compilation 4.6 Technical Check of Detailed Estimates 4.7 Supplementary Estimate 4.8 Revised Estimate 4.9 Market Rate Analysis 5

CONTRACTS AND FORMS

5.1 Definition of Contract 5.2 Contract Documents 5.3 Lumpsum Contract 6 PREPARATION OF TENDER DOCUMENTS AND

PUBLICIT

6.1 Tender System 6.2 Single Tender 6.3 Limited Tender 6.4 Contents of Tender Documents 6.5 Invitation of Tenders for Component Parts 6.6 Publicity of Tenders 6.7 Pre Bid Conference 6.8 Pre Qualification of Tenderers – Joint Ventures 6.9 One Packet and Two Packet Systems 6.10 Time Limit for Publicity of Tenders 6.11 Re-invitation of Tenders – Extension of Period 7

SALE OF TENDER DOCUMENTS

7.1 Documents to be ready in time 7.2 Supply of Duplicate set of Tender Documents 7.3 Time Interval between Sale of Tender Documents and

Opening of Tenders

7.4 Scale of Charges for Tender Documents 7.5 Supply of Drawings 7.6 Precautions in Sale of Tender Documents 8

RECEIPT, OPENING AND ACCEPTANCE OF TENDERS

8.1 Procedure to be adopted 8.2 Delayed and Late Tenders

SECTION PARA SUBJECT PAGE NO. 8.3 Instructions for Tender Opening Officers 8.4 Evaluation of Tenders 8.5 Preparation and Scrutiny of Briefing Note for Technical

Bids (Applicable for both Single Packet and Two Packet Systems)

8.6 Evaluation of Technical Bids by Tender Committee (Applicable for both Single Packet and Two Packet Systems)

8.7 Opening of Financial Bids 8.8 Preparation and Scrutiny of Briefing Note and

Comparative Note for Financial Bids (Applicable for both Single Packet and Two Packet Systems)

8.9 Evaluation of Financial Bids by Tender Committee (Applicable for both Single Packet and Two Packet Systems)

8.10 Tender Committee’s Recommendations and Action by the Tender Accepting Authority

8.11 Purchase Preference to Public Sector Enterprises 8.12 Acceptance of Single Tender 8.13 Procedure for Conducting Negotiations 8.14 Communication of Acceptance of Tender 8.15 Time Limit for Finalization of Tenders 8.16 Reinvitation of Tenders 9

EARNEST MONEY

9.1 Necessity for Earnest Money 9.2 Rates of Earnest Money 9.3 Mode of Deposit 9.4 Refund of Earnest Money 9.5 Forfeiture of Earnest Money 10 PERFORMANCE GUARANTEE AND SECURITY

DEPOSIT

10.1 Performance Guarantee 10.2 Validity of Performance Guarantee 10.3 Claim under Performance Guarantee 10.4 Refund of Performance Guarantee 10.5 Recovery of Security Deposit 10.6 Claims under Security Deposit 10.7 Validity Period of Security Deposit and Refund 10.8 Miscellaneous Provisions

SECTION PARA SUBJECT PAGE NO.

10.9 Refund of Security Deposit – Guarantee on Specialised Items of Works

10.10 SBUs Responsibility for Prompt Refund of Security Deposit and Performance Guarantee

11

AGREEMENTS/CONTRACTS – ESSENTIAL FEATURESG

11.1 General Features 11.2 Power to Sign Agreements 11.3 Recording of Date of Acceptance of Tender in the

Agreement

11.4 Supply of Copies of Contract to Contractors 11.5 Certification and Custody of Agreements 11.6 Contents of Agreements 11.7 Safe Custody of Contract Agreement and Related

Documents

12 GENERAL GUIDANCE FOR OPEATION OF CONTRACT CLAUSES

12.1 Clause 2 12.2 Clause 3 12.3 Clause 5 12.4 Clause 7 12.5 Clause 8 12.6 Clause 10 (C ) and Clause 10 CA 12.7 Clause 10 (CC) 12.8 Clause 12 12.9 Clause 14 12.10 Clause 16 12.10A Clause 21 12.11 Clause 36 12.12 Clause 42 12.12A Clause 45A 12.13 Clause 47 12.14 Performance for Notices to Contractor under various

Clauses of Contract and for Completion Certificate


13 EXTENSION OF TIME AND COMPENSATION FOR DELAY

13.1 General Principles 13.2 Requirements of Clause 5 13.3 Powers of Officers for Grant of Extension of Time 13.4 Grant of Extension of Time without Application 13.5 Form of Application for Extension of Time 13.6 Procedure for Granting Extension of Time 13.7 Compensation under Clause 2 13.8 Section 74 of the Indian Contract Act, 1872 13.9 Proforma for Intimating Extension under Clause 2 14 PAYMENT FOR SUB – STANDARD WORK

14.1 Procedure for Acceptance of Substandard Works 14.2 Acceptance of Substandard Work 15 ISSUE OF MATERIALS TO CONTRACTOR

15.1 Issue of Materials to be an Exception 15.2 Issue, Supply and Recovery of Cost of Materials 15.3 Issue Rates 15.4 Return of Surplus Materials 15.5 Instructions regarding Storage of Cement in Godowns 15.6 Issue of Materials against Bank Guarantee 15.7 Recovery towards materials issued for verification of

defects/Reclosing of work

16 MATERIALS ARRANGED BY CONTRACTOR AND MANDATORY TESTS

16.1 General Principles 16.2 Mandatory Tests – CPWD Specifications 16.3 Design Mix Concrete – Acceptance Test 16.4 Nominal Mix Concrete – Action in case of Failure of

concrete in Mandatory Concrete Cube Tests

16.5 Design Mix Concrete – Action in case of Failure of Concrete in Cube Tests


17 EXTRA, SUBSTITUTED AND DEVIATED ITEMS OF WORK

17.1 Deviation 17.2 Prior Sanction of Competent Authority Necessary 17.3 Extra / Substituted Items 17.4 Fixation of Rates for Deviated / Extra /Substituted Items 17.5 Rates for Deviation (Extra / Substituted / Deviated

Quantities) Items allowing Profits and Overheads on Stipulated Materials supplied to the Contractor

17.6 Measurements for Inadmissible Items 17.7 Deviations in Quantities of BOQ Items 18 FAIR WAGE CLAUSES AND CONTRACTOR’S

LABOUR REGULATIONS

18.1 Provisions of Act 18.2 Acts / Omissions 18.3 Fair Wages 18.4 Responsibilities of Field Officers 18.5 Responsibilities of Contractor 18.6 Deductions to be made from Contractor’s Bills 18.7 Procedure in case of Accidents to Contract Labour 19 ARBITRATION AND LITIGATION

19.1 Application of Arbitration Claus 25 of Standard Contract Form

19.2 Application for Appointment of Arbitrator 19.3 Preparation for Arbitration Cases 19.4 Processing of Contractor’s Application 19.5 Appointment of Arbitrator 19.6 Action Subsequent to Appointment of Arbitrator 19.7 Engagement of Lawyers 19.8 Production of Official Documents before

Court/Arbitrators

19.9 Default of a Party 19.10 Making of Award 19.11 Acceptance of Award 19.12 Review of Arbitration Award 19.13 Setting Aside of Awards 19.14 Period of Limitation 19.15 Court Cases 19.16 Judgements in Court Cases


19.17 Legal Charges on Civil Suits / Arbitration Cases 19.18 Documentation for Arbitration Cases 19.19 Disposal of Old Records 20 RECORDS TO BE MAINTAINED AT SITE OF WORK 20.1 General Provisions 20.2 Site Order Book 20.3 Periodic Inspection of Works – Inspection Record 20.4 Hindrance Register 20.5 Daily Progress Record 20.6 Cement Register 20.7 Steel Register 20.8 Non Conformance Items Record 20.9 Quality Audit Record 20.10 Site Coordination Meetings Record 20.11 Guarantee Bonds Record 20.12 Insurance Policies Record 20.13 Drawings Record 20.14 Record of Mandatory and Non Mandatory Tests Carried

out

20.15 Paint and Chemicals Record 21 MEASUREMENT BOOKS

21.1 Measurement Book – General Instructions 21.2 Test Checking of Measurements 21.3 Recording Levels for Earth Levelling Works 21.4 Loss of Measurement Book 21.5 Proforma for Measurement Book 21.6 Compressed Measurement Books (CMBs) and Bills to

be submitted by the Contractor

22 PAYMENTS TO CONTRACTOR

22.1 Requirement of Clause 7 22.2 Final Payments 22.3 Time Schedule for Payment of Bills 22.4 Inspection of Work Nearing Completion/After completion 22.5 Completion Certificate 22.6 Payment through Banks 22.7 Deduction of Income Tax at Source 22.8 Deduction of ‘Sales Tax on Works’/Vat on Works

Contract at Source

22.9 Deduction of VAT and Building Workers Cess at Source 22.10 Deduction of ‘Service Tax On Works’ at Source


23 ADVANCES TO CONTRACTOR

23.1 Types of Advances 23.2 Certificates to Accompany Bills 24 PREPARATION, EXAMINATION, VERIFICATION AND

PASSING BILLS FOR PAYMENTS

24.1 Preparation of Bills 24.2 Forms of Bills for Payment 24.3 Authorities to Pass the Bills 24.4 Payment for Work done 24.5 Deviation Statement 24.6 Bank Guarantees – Check and Custody 24.7 Documents to Accompany Bills 24.8 Check of Bills at SBU Office 25 QUALITY ASSURANCE AND CHECK LISTS

25.1 Introduction 25.2 Quality Assurance Plan 25.3 Methods Statement 25.4 Responsibility for Quality Assurance 25.5 Checklists 25.6 Testing Laboratory 26 CHIEF TECHNICAL EXAMINER’S ORGANIZATION

AND COMMON IRREGULARITIES OBSERVED

26.1 Functions of CTE Organisation 26.2 Returns 26.3 Inspection by CTE 26.4 Recoveries of Over Payments pointed out by the CTE 26.5 Common Irregularities pointed out by the CTE 27 OPENING , CUSTODY AND FINAL DISPOSAL OF

ESSENTIAL PROJECT DOCUMENT

27.1 Preamble 27.2 Common Deficiencies Observed in System of

Maintenance and Disposal of Records

27.3 Procedure Order on Opening, Custody and Final Disposal of Essential Project Documents.

ANNEXURES

SECTION 1

INTRODUCTION

1.1 PREAMBLE

RITES has been handling Project Management Consultancy assignments for the past few decades. While some of the Clients, particularly Government Departments and Public Sector Undertakings, insist upon RITES adopting the Tender Document and Contract Management procedures of specific organizations such as that of Railways, CPWD, State PWD, MES, World Bank etc, there are also cases of Clients leaving it to RITES to decide on the documentation and procedures. Some organizations such as Indian Railways, CPWD, MES, World Bank etc, have also printed their Standard Tender Documents and Manuals for the guidance of the officers and field Engineers and these are followed in execution of works in their organizations.

1.2 RITES’ DOCUMENTS

For dealing with Projects in which the Clients permit RITES to adopt any System considered good by RITES, the following documents have been made out by RITES for uniform application by all RITES Offices while handling such projects.

(i) Guidelines on Construction Project Management 2011

This document is based mainly on CPWD Works Manual 2010 but with substantial modifications by incorporating the good practices of other organizations like Indian Railways, World Bank etc. The guidelines are comprehensive and cover almost all aspects of Contract Management of particular interest to the Site Engineers and officers in SBUs. The Guidelines should be read along with the Standard RITES Tender Documents referred to in item (ii) below. Various instructions/circulars/guidelines issued by different Deptts like CVC, Railway Board etc in the past have also been taken into consideration in preparing this revised edition. The provisions contained in this book can be adopted also in the Management of Contracts based on the formats of other organizations like Indian Railways and World Bank in so far as they don’t contradict each other.

(ii) Standard Tender Document 2011

The Standard Tender and Contract Document 2011 with components indicated below has been made out basically adopting CPWD Format but with some major modifications. It consists of three parts.

Part 1 (Technical Bid) comprises of following six sections.

1) Notice Inviting Tender and Instructions to Tenderers

2) Tender and Contract Form

3) Special Conditions

4) Schedules A to F

5) Technical Specifications

6) Drawings

Part 2 : Financial Bid–Schedule (Bill) of Quantities

Part 3 : General Conditions of Contract

Section (7) Conditions of Contract

Section (8) Clauses of Contract

Section (9) RITES Safety Code

Section (10) RITES Model Rules for Workers

Section (11) RITES Contractor”s Labour Regulations

Depending on the nature and scope of work, Bill of Quantities, Drawings and site/work specific Special Conditions/Specifications will be required to be made out by NIT Approving Authority. The Standard Tender Document may be adopted in all cases other than those where the Client insists upon adoption of a specific format such as that of Railways, MES, World Bank etc.

iii) Guidelines for Arbitration under Arbitration & Conciliation Act 1996 – July 2007

iv) Checklist of Specifications for Civil Engineering Works for Quality Control – August 2008

v) Specifications for Railway Track and Bridge Works – September 2010

1.3 INTEGRITY PACT

RITES in cooperation with CVC has signed MOU with Transparency International (India) for adoption of Integrity Pact (IP) as a vigilance tool for promoting integrity / transparency and competitiveness in matter of major procurements. It has been decided by RITES that to begin with, Integrity Pact shall be made part of Bid Documents to be issued to all intending bidders, for works of estimated cost above Rs.10 Crore. For works of estimated cost of above Rs.10 Crores, Independent External Monitor (IEM) shall be pre-nominated to review independently, the compliance of Integrity Pact. The Competent Authority to appoint IEM shall be MD/ RITES. The Integrity Pact is available as Annexure VIII to Section I (Part I) of Bid Document viz. NIT & Instructions to Tenderers, in all Tender Documents for works of estimated cost above Rs.10 Crores.

The essential ingredients of the Pact and its implementation procedure envisage:

a) IP shall cover all phases of the contract i.e. from the stage of NIT / Pre-Bid stage till completion of contract. Any violation of the same would entail disqualification of bidders.

b) Entering into this Pact by the bidder would be a preliminary qualification.

c) IP would be implemented through a panel of IEMs appointed by RITES. For ensuring liaison between IEM and Contractor / Employer, RITES will nominate a suitable officer at HQ as Liaison Officer.

1.4 TYPES OF PROJECT CONSULTANCY ASSIGNMENTS

RITES as a Premier Consultancy Organization has been handling Project Management Consultancy Works of different types as detailed below, mostly for Central Government / State Government Departments and Organizations and in a few cases, for private parties.

(i) Project management on Supervision basis:- Client Organisation with adequate technical expertise, handles the Planning and Tendering phases, signs the Works Contract with the Contractor and entrusts to RITES, the complete responsibility of Project Management. Here the payments to the Contractor are effected by the Client on certification by RITES. There are some cases where the Client Organisation has taken the help of RITES in planning stage as well as in Tendering Stage. In some cases the Client, while deploying his own staff for day to day supervision, entrusts to RITES, General Supervision including Quality Control.

(ii) Project management on Deposit/Turnkey basis:- Client Organization entrusts through a Power of Attorney or other instrument like a Contract, complete responsibility to RITES for the Works including Planning, Tendering and Supervision of works. The funds are made available by the Client to RITES either in a lump sum or in installments. In such cases, the Works Contract with the Contractors are signed by RITES for and on behalf of the Client and RITES makes payment to the Works Contractors. In these cases, the Client generally does not possess the technical expertise to handle major works. But in all cases, even if Client does not possess the technical expertise, the Client expects RITES to keep them apprised of any developments with financial implications.

1.5 FINANCIAL LIABILITY OF RITES

The type of Project Management Contracts in 1.4 (i) above generally does not entail any financial liability on RITES since the Client is the Employer in the Works Contracts with the Contractor. But in the type of Project Management Contracts, in 1.4 (ii) above the financial liability of RITES can be of a large magnitude which may end up in disputes leading to Arbitration or Court case. With the Agreement executed between RITES and the Contractor, the legal provision is that there is no privity of Contract between the Client and the Contractor even though the Agreement may have been executed by RITES for and on behalf of the Client and the Client has granted a Power of Attorney to

RITES or appointed RITES as his Agent. There is hence the necessity for RITES staff to understand clearly the various aspects of Project Management in the Planning, Tendering and Supervision stages.

Irrespective of whether the Works Contract is signed by RITES or by the Client, the guidelines in this document should be followed to protect the interest of RITES in Project Management Consultancy Contracts. While various aspects of Project Management from tendering to execution have been covered in detail in subsequent Sections, the basic items to be kept in view for successful implementation of a Construction Project are detailed below.

Efforts should be made to ensure observance of the essential features discussed in para 1.6 below. However wherever it is not possible to observe the same in totality because of exigencies of work, reasons for the same should invariably be kept on record. Sufficient care should also be taken to ensure that follow up action on all such issues is taken up in a reasonable and defined time schedule.

1.6 ESSENTIAL FEATURES OF GOOD PROJECT MANAGEMENT

(i) Work should not be awarded to the contractor until ideally all the required construction drawings are available. However, in case of any exigency, which should be recorded, it should be ensured that construction drawings of foundation and floor one above or equivalent in other types of works are available for construction activities for at least 3 to 4 months. It shall be the responsibility of the Project Coordinator to ensure that balance drawings are finalized during this period.

(ii) Contract should not be awarded to the contractor until the site is available and ready for the construction with clear title deed and free from encroachments, encumbrance etc. If the Client insists on award of contract with only part land available and if RITES is to sign the works Contract as Agent / Power of Attorney Holder, the Client has to be advised in writing that if balance land is not made available as per the Project Schedule in the Tender Document, the Contract may have to be terminated and the resultant liability which may include claims from the contractor will be to Client’s account. It should also be checked in advance to ensure that the approval of the Local Authorities is available for use of the land for the intended purpose. Contract may not be awarded till approval of local body to the Layout and building plans is available.

(iii) Work should not be awarded till sufficient funds are deposited by the Client. Where the full contract amount is not made available in advance by the Client who desires to make available funds in installments, the Client should be advised right at the initial stage that in case funds are not made available promptly as asked for, the Works Contract will have to be terminated and the resultant liability which may include claims from the Contractor will be to Client’s account.

(iv) Contract conditions should not be ambiguous and vague. Proper care should be taken at the time of preparation of BOQ.

(v) All out efforts should be made to avoid any delay on part of RITES in issuance of drawings, clarifications on specifications of items, processing of bills for payment and giving decisions on matters referred to by the Contractor.

(vi) No extra or substituted item should be executed at site without prior in-principle approval from the competent authority of RITES and of the client, if the agreement with RITES requires the same. However in case of exigency the permission to execute the Substituted or Extra Item should be taken from the SBU Head or project coordinator respectively. Pending processing of the rate of Extra/Substituted Item, payment to contractor should be released @ 75% of the rates as tentatively determined by the SBU Head of RITES.

(vii) Quantities should not be executed beyond the permissible deviation limits in BOQ items for which rates have been fixed in the Contract, without the in principle approval of the Competent Authority of RITES and of the Client, if the Agreement with RITES requires the same. Payment to contractors for such deviated quantities should be made in accordance with contract provisions. Where the Contractor presses for payment for quantity executed in excess of specified limits, for which rate can be derived from BOQ rate, payment may be effected at 75% of BOQ rate with the approval of SBU Head. But expeditious action should be taken to decide on the revised rate.

(viii) It should be ensured that rates of Extra / Substituted Items as well as rates for the BOQ items for quantities beyond the Limits for which rates are available in the contract are duly accepted by the Contractor, before releasing payment of Final Bill.

(ix) Decisions sought by Project Coordinators with regard to drawings, details, specifications, additional items, Extra / Substituted Items, operation of BOQ items beyond permitted Limit etc. shall positively be communicated to them by the respective SBUs within a reasonable time (say 15 days).

(x) Whenever there is any likelihood of increase in the cost of work beyond the Clients’ Expenditure Sanction figure, Revised Estimate should be prepared well in advance and submitted to the Client for revised Administrative Approval and Expenditure Sanction.

(xi) All the letters and references of the Contractor should be replied to promptly. No letter or reference of the Contractor should remain unanswered.

(xii) Proper records should be maintained at site with regard to handing over of the site and issue of drawings as well as daily progress reports with details of plant, machinery and equipment deployed at site by the Contractor, supervisors and labours deployed at site and hindrance details. Site Order

Book is an important document to be maintained at site. Signature of the Contractor should invariably be obtained as token of his acceptance in the relevant records.

(xiii) All possible avenues should be explored to avoid contractual problems such as arbitration etc. All disputes should be attempted to be settled amicably within the frame-work of the Contract during the currency of the Contract.

(xiv) The contract should be kept live by extending the contract, even suo-moto, without prejudice to the right of RITES/Employer to levy Liquidated Damages. The contract must be extended within the contract period/extended period.

SECTION 2

CONTRACT WITH CLIENT

2.1 SIGNING OF CONTRACT WITH CLIENT

Any project management starts with the entering into a Contract with the Client. A good project management therefore has to start with a well drafted Contract document where the responsibilities and scope of the work of RITES and the Client are well defined. It is also to be ensured that the Contract does not result in RITES entering into long term liabilities with the Client or with the contractors engaged either by RITES or the Client.

Special care needs to be taken where RITES awards and signs the Contract with Contractor for execution of work, even if these are for and on behalf of the Client.

In order to ensure uniformity, a format for Model Agreement between RITES and the Client generally in line with the above stipulation is enclosed as Annexure 2.1. The Conditions in the model agreement are generally based on CPWD Practice which are the ideal ones to protect the interest of RITES. They may be relaxed to the minimum extent necessary, by the Competent Authority of RITES during discussions / negotiations with the Client, keeping in view the scope of work to be carried out.

2.2 DEFINITION OF DEPOSIT WORKS

Works which are got executed by RITES where Works Contracts are signed by RITES for and on behalf of the Client and the Client makes funds available to meet the Works Contract expenditure, RITES fees and other related expenses, come under the category of Deposit Works. Before taking up any Deposit Work, an Agreement has to be executed between RITES and the Client indicating clearly the scope of work, the financial arrangements envisaged by the Client for smooth progress of works and the items on which RITES should take prior approval of the Client as well as the items on which RITES can take a decision on its own with or without advice to the Client, during the course of execution of work.

2.3 REALIZATION OF CONTRIBUTION FOR DEPOSIT WORKS

2.3.1 Whenever a Deposit Work is to be carried out, full contribution should normally be realized before any liability is incurred on account of the work. However, in cases where RITES is satisfied that money will be forthcoming when required, RITES may accept the request of the Client to make available the funds in suitable installments. Efforts should be made to realize about 1% of the anticipated project cost before preparation of preliminary estimates.

2.3.2 In cases of deposit works of financially sound Clients from whom receipt of money is generally assured, ideally 33-1/3% of the estimated cost of the work may be got deposited as advance. Thereafter, the expenditure incurred may

be got reimbursed through monthly bills simultaneously with rendering of monthly accounts on the progress of work. The deposit of 33-1/3% or any other percentage mutually agreed to between RITES and the Client; obtained as the first installment should be retained for adjustment against the last portion of the estimated expenditure. With regard to Deposit Works involving Clients who have earlier defaulted in payments, or where the works outlay is predominantly for purchase of capital equipments and machineries, the entire deposit should be obtained in advance.

2.3.3 Where delays are experienced in obtaining funds and where expenditure has to

be incurred out of the 33-1/3% or agreed percentage reserve to keep the works going, the matter should be brought up by the Project Coordinator to the notice of SBU Head promptly for taking up the matter with the Client. It is reiterated that no expenditure is to be incurred on Deposit Works out of RITES’ funds.

2.3.4 To enable the Client to provide additional funds in time, Revised Estimates should be sent to the Client, at the appropriate stages during the execution of works wherever required.

2.3.5 It should be ensured that in no case deposits received in respect of one Deposit

Work are diverted to other Deposit Works even for the same Client. The only exception will be in case when the Client specifically authorizes in writing such diversions.

2.3.6 The Client on whose behalf the work is to be done is also to be made clear that RITES does not bind itself to complete the work within the amount of estimate and that the Client should agree to finance the excess that may occur. An acknowledgement of this clear understanding is required to be obtained from the Client before the work is taken in hand.

2.3.7 It should be ensured that the expenditure is not more than the deposits received for the work. Where the SBU Head is doubtful about the timely receipt of the deposits, matter should be taken up with the Client by giving notice that if further deposit is not received, work may be stopped and any contractual liability arising out of such stoppage of work will have to be borne by the Client. Efforts should also be made by higher officers, if need be, to follow up with the Client. In exceptional circumstances, if the work has to be continued, permission of the Divisional Head should be obtained.

2.3.8 While submitting preliminary estimates for Deposit Works for obtaining Administrative Approval and Expenditure Sanction from the Client, a copy of the terms and conditions under which the works would be taken up by RITES generally as given in Annexure 2.1 should also be enclosed with the estimate. Alternatively these provisions should be incorporated in the Agreement between RITES and the Client.

2.4 EXECUTION OF DEPOSIT WORKS

2.4.1 With regard to design, estimation and execution of work, instructions as contained in subsequent sections should be followed. The scope of work should not be altered without written permission of the Client.

2.4.2 SBU Heads should keep a close watch on the progress of expenditure on Deposit Works, particularly on the estimated cost of work, RITES fees and related expenses, the total deposit received and the progressive expenditure. A copy of the monthly expenditure statement should be forwarded to the Client by the SBU Head indicating the additional funds, if any, to be made available, keeping in view the trend of progress of works. Ideally a separate Bank account should be maintained for each Deposit Work which should be credited with all deposits of the Client and debited with payments to the Contractor, RITES’ fees and other expenses as per provisions in the Agreement between RITES and the Client. This will facilitate easy reconciliation of accounts, monthly and on completion of works. It is desirable that in case of opening of such Bank Account, the Agreement between RITES and the Client clearly stipulates whether interest accruing out of short term deposits from the surplus funds if any available in the Account from time to time will be retained by RITES or refunded to the Client. The consultancy fee to be quoted by RITES should take into consideration this factor. Where the Client does not agree for the interest on such short term Fixed Deposits being credited to RITES account, keeping in mind the Income Tax implications on accrued interest and expenditure in management of such short term fixed deposits, the Client’s funds may be kept in current account without any conversion into Short Term fixed deposits.

2.5 ENDORSEMENT OF COPIES OF DOCUMENTS TO THE CLIENT

2.5.1 The Agreement between RITES and the Client will indicate what items will require prior approval of the Client, what items will require post facto approval of the Client and what items can be decided by RITES and the Client just kept advised.

2.5.2 Irrespective of the provisions in the Agreement between RITES and the Client, copy of the following documents should be endorsed to the Client without any delay.

(i) Detailed Estimate as sanctioned by RITES

(ii) Detailed drawings as approved by RITES

(iii) Tender Document

(iv) Letter of Acceptance to the selected Contractor

(v) Contract with the Contractor / Supplementary Agreement

(vi) Letters of Extension of Time issued to the Contractor

(vii) Deviations and Rates as approved by RITES for Extra items, Substituted items and Deviation in Quantity of BOQ items

(viii) Notice to Contractor on Termination / Rescission / Foreclosure of Contract.

(ix) Running Account Bills and Final Bill with supporting documents

(x) As–built drawings / Maintenance & Operation Manuals (where applicable).

(xi) Completion Certificate

(xii) Maintenance Certificate

SECTION-3

PROJECT ORGANISATON AND RESPONSIBILITY

FOR PROJECT IMPLEMENTATION

3.1 ORGANISATIONAL SET UP

Every project involving field supervision will have :

i) A field unit headed by a Controlling Site Engineer designated as Controlling Engineer/Project Manager/Chief Project Manager, who may be assisted by one or more Engineers and Technical Assistants designated as Site Engineers.

ii) One of the officers at SBU office designated as Project Coordinator for liaison with the field office and who will be responsible for all actions to be taken in the SBU office in connection with that project.

3.2 FIELD ORGANISATION

The strength of field organization will depend on the magnitude of the project in terms of its financial value and the complexity of works involved. The staff strength will be deployed on the basis of the funds provided in the approved input estimate and the average monthly expenditure for different grades of staff. In cases where a definite commitment has been given to the Client on the number and grades of staff that will be deployed by RITES for the Project, this requirement should be kept in mind while deciding on the field organization. Where required, deployment of Technical staff on contract terms for limited periods may be resorted to.

The senior most officer in the field organization irrespective of his grade, will be designated as the “Controlling Engineer/Project Manager /Chief Project Manager” and the technical staff working under him will be designated as “Site Engineers”. While the Controlling Site Engineer will be overall responsible for all the field activities as defined in a subsequent para 3.5, he can allocate specific duties to his supporting technical staff depending on the number available and their grades.

3.3 ORGANISATION AT SBU OFFICE

The SBU Head who may be of the grade of GGM, GM or CPM will be dealing with a number of projects at any one time. He will also be assisted by officers and staff in both technical and financial matters. SBU Head will allocate projects among his senior technical officers who will work as Co-ordinating Officers for the Project or Project Coordinators. Each such technical officer who may be G.M, Addl.GM, Jt.GM, Sr. Dy.GM, Dy.GM or Manager may be required to deal with one or more projects and it will be his responsibility to take care of all activities related to the Project for which the SBU office is responsible as indicated in

subsequent Para 3.6. The nominated Project Coordinator will also keep the SBU Head advised fully on the Project and initiate action for referring through SBU Head to the higher authorities in the Head Quarters, proposals which require sanction of higher authorities at Head Quarters level.

The nominated Project Coordinator will take the assistance of the officers and staff in the Technical Section of the SBU office for dealing with all technical matters related to the project. He will liaise with the Accounts Officer dealing with all financial matters related to the Project.

3.4 DESIRABLE LEVEL OF ORGANIZATION

The table below gives the desirable level of organization for projects of different values. The SBU Head can modify them suitably depending upon the nature and complexity of the project and the availability of engineering personnel under him:

Project Size Project Coordinator

Controlling Site Engineer

Site Engineer

For Projects costing upto 5 Cr. Rupees Manager Engineer NIL For Projects costing between 5 & 20 Cr. Rupees

Manager AM Engineer

For Projects costing between 20 & 50 Cr. Rupees

DGM Manager Engineer

For Projects costing above 50Cr. Rupees

Sr.DGM/ Jt. GM/ AGM

DGM/ Sr. DGM

Engineer

3.5 FIELD ACTIVITIES FOR WHICH CONTROLLING SITE ENGINEER WILL BE RESPONSIBLE

3.5.1 PRE-CONSTRUCTION STAGE

a) Check the “Good for Construction Drawings” with the site conditions and see if any modification will be required to be made in the drawings such as change in the layout, type of foundation, increase in depth of foundation, increase in plinth height etc. If any such modifications are called for, the same should be brought to the attention of SBU office promptly for taking necessary action.

b) Do a general check of the BOQ in the Contract Agreement with the “Good for Construction Drawings” and see if there are any obvious errors such as missing items of work, incorrect estimation of quantity of any item, rates in figures and words not tallying for any item etc. If any such error is noticed,

it should be brought to the attention of SBU office promptly for taking necessary corrective action.

c) Check if the Contractor has submitted the following documents and if so, xerox copies of the same should be retained in the Site Office and the originals sent to SBU Office. The list given below is based on CPWD General and Special Conditions of Contract and may require modification depending on the provisions contained in GCC & SCC of other type of contracts such as that of World Bank, Indian Railways etc as will be required to be followed for that work.

i) Performance Guarantee Bond.

ii) Insurance Policy on Secured Advance on perishable materials.

iii) Bank Guarantee Bond on Mobilization Advance. iv) Hypothecation deed on Plant, Machinery Advance

v) Insurance Policy on Plant & Machinery Advance

vi) Bank Guarantee Bond on free supply of materials.

vii) License under the Contract Labour (R&A) Act and Rules.

viii) Indemnity Bond against patent rights.

ix) Indemnity Bond on Employer’s Plant & Machinery hired to the Contractor.

x) Registration with Sales Tax Department for Sales Tax on Works Contracts.

xi) Insurance Policy on Cost of Works.

xii) Third Party Insurance.

xiii) Workmen’s Insurance.

xiv) Indemnity Bond on damages to persons and property. xv) Registration with Service Tax Department

xvi) Registration with Labour Department

d) Check with the provisions in the General and Special Conditions of Contract and see if the following requirements have been complied with

i) Site Laboratory fully equipped and manned by adequate numbers of technically qualified staff.

ii) Availability of qualified and experienced technical personnel at site.

e) Check the quality of construction materials arranged by the Contractor by arranging tests where required and see if the Manufacturers’ Test Certificates have been furnished, where the Contract provides for the same.

f) Check if proper storage arrangements for Cement, Steel and other materials have been provided by the Contractor.

3.5.2 CONSTRUCTION STAGE (WORKS IN PROCESS)

a) Maintenance of records at site of work as detailed in Sections 20 and 27 of this book.

b) Conducting mandatory and other tests on materials and workmanship as indicated in Section 16 of this book, and as per ‘Checklists of Specifications for Civil Engineering works for Quality Control’ issued separately.

c) Quality control and Technical Audit on works.

d) Keeping a watch on the Contractor’s compliance with Labour Regulations as detailed in Section 18 of this book.

e) Taking measurements of work including test checking as detailed in Section 21 of this book.

f) Submission of Running Account Bills with all accompanying documents as stipulated in Section 24 of this book.

g) Processing Contractor’s submissions with his recommendations to SBU office on the following:-

i) Rates for deviated quantities of BOQ items, substituted items and nonscheduled items.

ii) Extension of Time with or without compensation.

iii) Acceptance of substandard work and reduced rates for the same.

iv) Contractor’s claims.

h) Issue of notices to the Contractor on progress of work, quality of work, number and competence of technical personnel deployed, functioning of Site Laboratory etc.

i) Keeping a watch on deviation of quantities, reasons thereof and recommend to SBU office, measures to minimise deviations.

3.5.3 CONSTRUCTION STAGE (ON PHYSICAL COMPLETION )

a) Inspect the works on receipt of report from the Contractor that the works are completed, point out the deficiencies, if any, and issue Provisional Certificate of Physical Completion/ Completion Certificate.

b) Submission of Final Bill with all accompanying documents as stipulated in Section 24 of this book.

c) Furnish to SBU office comments on the claims, if any, submitted by the Contractor along with the Final Bill.

d) Ensure that the Contractor cleans up the area before handing over the completed works.

e) Hand over the completed work to the Client under proper Handing over / Taking over Notes along with Guarantees /Warrantees (if any), Completion plans and Operations & Maintenance Manual (if any).

3.5.4 POST CONSTRUCTION STAGE

a) Check on the defects if any pointed out by the Client during the maintenance period and give notice to the Contractor for rectification of the defects.

b) Issue “Maintenance Certificate” to the Contractor on expiry of Maintenance Period after checking that all defects have been rectified. Arrange refund of the balance Security Deposit as per provisions in the Contract.

c) Furnish to SBU office for passing on to the Client, copies of Guarantee Bonds for specialized works.

d) Furnish to SBU office all relevant records properly indexed to facilitate dealing with further Arbitration/Court cases, if any.

3.6 SBU OFFICE ACTIVITIES FOR WHICH THE PROJECT COORDINATOR WILL BE RESPONSIBLE

3.6.1 PRE-CONSTRUCTION STAGE

a) Co-ordinate with client regarding:

(i) Entering into contract with client in the format given at Annexure 2.1 modified, if necessary with the approval of competent authority.

(ii) Obtaining his functional requirements relating to the project.

(iii) Obtaining his approval for preliminary drawings/General Arrangement Drawings, specifications etc

(iv) Obtaining his approval for preliminary cost estimates

(v) Realization of funds for initial expenses

b) Take necessary action for:

i) Preparation of drawings, design and estimates, if required, through sub-consultants.

ii) Appointment of sub-consultants.

iii) Preparation of input estimates and obtaining approval of the same from competent authority after vetting by finance.

iv) Preparation of tender documents, obtaining approval of the same from Competent Authority, inviting tenders, co-ordinating for

opening of tenders, for evaluation of tenders by Tender Committee and for award of work after acceptance of tender by the accepting authority.

v) Signing of contract by competent authority and sending copies of the same to finance and Controlling Site Engineer.

c) Where the Controlling Site Engineer recommends modifications of “Good” for Construction Drawings” as indicated in Para 3.5.1(a), to issue, in consultation with the Client, necessary corrections to the drawings, workout the Contract implications and advise the Contractor suitably.

d) Where the Controlling Site Engineer points out errors in the BOQ in the Contract Agreement when compared with “Good for Constructions Drawings” as indicated in para 3.5.1 (b), to scrutinize and take corrective action in consultation with the Client to advise the Contractor suitably .

e) Check the originals of the documents sent by the Controlling Site Engineer in terms of para 3.5.1(c) and see if they are in order. Keep them in safe custody along with the originals of Contract Agreement and one set of “Good for Construction Drawings.”

3.6.2 CONSTRUCTION STAGE (WORKS IN PROGRESS)

a) Do periodic inspection of the site of work and see if the records are being maintained as detailed in Sections 20 and 27 of this book. Record inspection notes in the Register covering progress and quality of the materials and workmanship. Carry out mandatory tests, if any, due at the time of inspection. Test check measurements, particularly on classification of soil and items of large value, where there is only one Site Engineer at the project site.

b) Check the Running Bills and accompanying documents as stipulated in Section 24 of this book and take necessary follow up action.

c) Submit to the Client, periodic Progress Reports and Statements of Accounts as stipulated in the Agreement between RITES and the Client.

d) Take prompt action in processing approval of the competent authority and the Client where necessary, and advise the Client, Contractor and the Controlling Site Engineer on the following:

i) Rates of deviated quantities of BOQ items, Substituted items and Non-schedule items.

ii) Extension of Time with or without levy of compensation.

iii) Acceptance of substandard work and rates for the same.

iv) Contractor’s claims.

e) In cases where the Controlling Site Engineer foresees large deviation of quantities, to take prompt action to study his recommendations and advise the Controlling Site Engineer on the action to be taken.

f) Keep a watch on the validity of Bank Guarantees and take action as detailed in Section 24 of this Document.

3.6.3 CONSTRUCTION STAGE ( ON PHYSICAL COMPLETION)

a) Check the Final Bill and the accompanying documents as stipulated in Section 24 of this book and take necessary follow up action.

b) Scrutinize the claims, if any, submitted by the Contractor along with the Final Bill and get the decision of the Competent Authority in consultation with the Client on action to be taken for dealing with the claims.

c) Submit to the Client the Final Statement of Accounts as provided for in the Agreement between RITES and the Client.

d) Submit to the Client the following documents:

i) Completion Certificate

ii) Sets of Completion Plans and Operating & Maintenance Manual as provided for in the Contract

iii) Charge Paper-Handing over by the Controlling Site Engineer to the representative of the Client, the completed works.

3.6.4 POST CONSTRUCTION STAGE

a) Submit to the Client the following documents:

i) Maintenance Certificate

ii) Bank Guarantees/Guarantees for specialized works.

b) Keep safe custody of all records as detailed in Annexure 19.5 of this book.

c) Deal with Arbitration/Court cases as detailed in Section 19 of this book.

d) Deal with Inspection Notes of CTE as detailed in Section 26 of this book.

SECTION 4

PREPARATION OF ESTIMATES

4.1 PRELIMINARY ESTIMATE/ABSTRACT ESTIMATE

4.1.1 Preliminary Estimate is required to be prepared in order to facilitate the Client to accord Administrative Approval and Expenditure Sanction. These estimates should be prepared on the following basis

Building Works:- On the basis of plinth area rates published by CPWD with Delhi Base index of 100 as on 1/10/2007 read with upto date correction slips and updating it with cost index. CPWD issues such Cost Index figures from time to time to facilitate updating of plinth area rates. Extra provisions for superior specifications not covered in the scope of PAR to be taken in the Preliminary Estimate.

Railway Works:- Where supply of P. Way material is to be given by Zonal Railway:-

Track items based on the rates circulated by Railway Board/Zonal Railways and adding the factors of transportation by road, contractor’s profit, taxes etc. Earthwork and ballast supply based on the prevailing rates in the project area.

Railway Works:- Where supply of P. Way material is not to be given by Zonal Railway:-

A) P. Way Material

i. The rates of rails from SAIL which can be obtained from their Delhi or Zonal / State Offices.

ii. The rates of sleepers shall be based on rates to be obtained from PSC sleeper manufacturing company or companies supplying sleepers to the Railways in the area where work is to be executed or else based on recently accepted rates in the area, if available. Rates should be for supply of sleepers to parties other than Indian Railways.

iii. The rates of Points & Crossings and PSC sleepers for the same shall be based on rates circulated by Railway duly enhanced by the % by which the rates of rails/sleepers as obtained vide (i) & (ii) above are over and above Railway circulated rates.

B) Execution of work

The rates for execution of PW works should be based on rates circulated by Railways.

C) General:

In addition to above, provision shall be made for–

i) Sales Tax/VAT as applicable.

ii) Freight including handling charges.

iii) General charges including charges for Bank Guarantees and Insurance etc. as required.

iv) Works Tax.

v) T & P charges.

vi) Contractor’s profit and overheads

vii) Service Tax, Workers Welfare Cess Act 1996 etc.

Road Works:- Length of road, no. of lanes etc worked out and the rate per unit area, length or other such method adopted for ready and rough calculation, so as to give an approximate idea of the cost involved in the proposal.

Railway Bridges:- On the basis of Bridge opening / span and the number of Tracks to be crossed, adopting Unit Rate per metre of opening per Track.

Road Over Bridges:- On the basis of area of road on bridge proper and on approaches, Unit rate per Sq. Metre of approach will vary depending on the design.

4.1.2 The Preliminary estimate should invariably provide for the probable escalation in the prices based on trend of increase in price of materials and labour for the period between estimate preparation and start of work as also during the period of construction. In case these provisions are not accepted/approved by client, its implication should be conveyed to them in writing.

4.1.3 The estimate should include RITES’ fee which should include fees of sub-consultants, for project management.

4.1.4 Following steps need to be taken before preparation of the estimates:

Freeze the requirement of project and specifications of work with the Client.

Prepare concept plan based on the requirement and obtain approval of the Client.

Where required, conduct sub-soil investigations and tests to determine subsoil strata and the safe bearing capacity of soil for design of foundations.

4.1.5 While forwarding the Preliminary Estimate to the Client for according Administrative Approval and Expenditure Sanction, an indication shall be given in the history sheet that the cost projected in the Preliminary Estimate is liable to revision due to probable escalation in cost of construction apart from reasons such as change in scope, design and specifications etc, which may be desired by the Client at a later date.

4.2 DETAILED ESTIMATES/TECHNICAL SANCTION

4.2.1 As soon as Administrative Approval and Expenditure Sanction for Work is received based on the Preliminary Estimate and an assurance from the Client that the site is available duly approved by the Local Body for its use for the purpose intended, General Arrangement Drawings and Detailed drawings will be prepared by RITES or got prepared from RITES sub-consultant. Based on the drawings, Detailed Estimate will be prepared.

4.2.2 Detailed Estimate should, as far as possible, be prepared for the entire project as a whole. It will, however, be advisable to decide on the tender packages in advance and prepare estimates packagewise. Technical sanction to the Detailed Estimate should be obtained from the competent authority as per schedule of powers of RITES.

In case of a Composite Estimate, the concerned disciplines like Civil/Electrical/Signal/Mechanical etc, shall obtain Technical Sanction for their respective portion from the SBU Head and then forward the same to the competent Authority for consolidation and sanction.

4.2.3 In case of exigencies of work/requirement of the Client, Detailed Estimate for a part project may be prepared and Technical Sanction obtained for the same. Reasons for the same, however, should invariably be kept on record.

4.2.4 In case the Estimated Cost including the element of RITES fees, Price Escalation during the course of execution of works and unforeseen items, exceeds the amount for which Administrative Approval and Expenditure Sanction has been obtained inclusive of the allowable %age excess as per contract agreement with the Client, the Client should be advised of the revised increased Cost for fresh Administrative Approval and Expenditure Sanction.

4.2.5 When RITES undertakes a project where Detailed Estimate/ DPR has already been approved by the Client, no separate Technical Sanction to the estimate is required from the competent authority of RITES. However during the scrutiny of such estimates, if deficiencies are noticed which have cost implications, the same should be brought to the notice of the Client after it is seen by the competent authority of RITES. The Project Coordinator will be responsible for such scrutiny of estimate and for taking necessary follow up action with the Client.

4.2.6 The Detailed Estimate will include:

References of Name of Work, Estimate Number and a report as detailed in para 4.2.7.

Name and Designation of the official preparing the Estimate and the official doing technical check.

Detailed Statement of Measurements for each item of Work based on the drawings.

Rate analysis for items not available in Standard Schedules of Rates along with supporting documents for rates of materials and labour.

Supporting documents when rates are based on prevailing market rates in the project area.

4.2.7 Report on the Estimate should be prepared in a lucid form understandable by the Client. It should be comprehensive enough under each sub-head as mentioned below.

i. History: - Particulars relating to the initiation of and reasons leading up to the proposal and its general purposes including reference to previous correspondence, documents and specifications, where necessary.

ii. Design:- A description of the original proposals and those finally adopted particularly with regard to location, sitting and design, also with reference to specifications, calculations and drawings, where necessary, type of foundation, type of superstructure plinth area and no of storeys.

iii. Scope:- An explicit statement as to what work is and what is not covered by the estimate; also a reference to what arrangements are being made for any portions of work which are not included in the estimate.

iv. Rates:- Particulars and basis as to how the rates have been arrived at giving references to the Standard Schedule of Rates and Non-Scheduled Rates and also to the details accompanying the estimate, where necessary, with any special explanation connected therewith.

v. Cost:- Estimated Cost of the work and a comparison with the amount originally provided under any previous administrative sanction or detailed estimate in case of revision.

vi. Method:- The method proposed for carrying out the work - whether by lump sum contract, item rate or percentage rate contract or any combination of these.

vii. Establishment:- Details of any provision made in the estimate for work-charged establishment, when necessary.

viii. Construction Plants:- Any special methods of construction to be adopted with reference to specifications, etc. and details of the arrangements that have been provided for necessary Construction Plant, tools etc.

ix. Land:- Whether land for the work is available free of encumbrance. Arrangements for acquisition of land, where necessary.

x. Time:- Estimated time of completion from the date of award of Works Contract.

xi. Brief note on the special construction difficulties, if any, that are likely to be encountered during the project construction stage.

4.3 DETAILED ESTIMATES FOR TECHNICAL SANCTION - PROCEDURE FOR PREPARATION

The procedure to be adopted for preparation of Detailed Estimate will be as under:

i. As far as possible for building works, the items of works should be classified under various items of DSR (Delhi Schedule of Rates). The latest version now in use is DSR 2007. The cost as per DSR should be enhanced by prevailing %age of Cost Index in the project area, circulated by CPWD. CPWD issues from time to time the prevailing Cost Index in different regions of the country.

ii. Where other Schedules are applicable (MES, Railways, State PWD etc.), the items may be taken from the corresponding Schedule of Rates duly enhanced by the prevailing Cost Index.

iii. Items that cannot be covered by any Standard Schedule of Rates will come under the category of Non Schedule items. The estimates for these items should be prepared as per procedure explained in para 4.4.

iv. The minimum level for preparation of Detailed Estimate shall be Engineer. The Detailed Estimates are to be technically checked by the Project co-ordinator or a nominated officer not below the rank of a Manager, before putting up the same to the competent authority for Technical Sanction. In case where the Detailed Estimate has been got made out and approved by the Client, para 4.2.5 may be referred to.

4.4 DETAILED ESTIMATE - NON SCHEDULE ITEMS - MARKET RATE ANALYSIS

4.4.1 For Non Schedule items, the cost has to be determined for each item based on Market Rate Analysis which will include the cost of the materials and labour to the contractor at site of work plus a certain percentage of such cost to cover all overheads and profit. This percentage representing the element of overheads and profits has been fixed at different levels by different organizations like CPWD, MES, NHAI, State PWDs etc. For the purpose of uniformity in RITES, the following procedure may be adopted to work out the Market Rates for any non-Scheduled item based on a breakup into the elements of Materials, Labour, Hire / Running charges of Plant & Machinery, Sundries and Overheads & Profit.

a) (i) Materials (other than Track Works):- The quantity of materials of different types including permissible wastage may be determined. CPWD has made out Rate Analysis for various DSR items. They can be taken for guidance if the Non Scheduled item is an item similar to a DSR item. In case there is no similar DSR item, the quantity of materials will have to be assessed from publications such as Nabhi’s Compilation of Analysis of Rates or similar publications, technical literature of manufacturers of specialized products, experience in execution of similar works in the past etc. The cost of materials should include the element of transport to site.

Market rate for materials should be ascertained by getting quotations in writing from suppliers preferably for delivery and stacking at site. In case of difficulty in getting written quotations due to reluctance of the suppliers, the rates should be collected and recorded with name and address of the suppliers by the concerned officer. Where the rate quoted by the supplier is for supply at the Dealers’ godown, the element of cost of transport to site and stacking should be added and

this can be based on DSR rates for similar items increased by the Cost Index notified by CPWD.

The least rate out of the quotations, obtained for the lowest accepted/acceptable make/specification should be adopted and based on the rates for supply at site and the quantity including permissible wastage, the cost of the materials to be arranged by the contractor at site of work can be determined. If the Contract is to provide for supply of any materials at a fixed cost to the Contractor, the cost of materials should be based on the issue rate at site of work.

(ii) Materials (Track Works):- In the case of Track Works, for assessing the quantity of different items of Track materials such as rails, sleepers and fittings, including wastage, sanctioned estimates for similar works in the recent past by the Zonal Railways may be taken for guidance.

Market rates for the track materials should be ascertained from the likely suppliers irrespective of the number of such suppliers. The rate should be assessed for supply and stacking at site inclusive of all duties and taxes.

The least rate from the quotations or as ascertained from the likely suppliers as indicated above should be adopted and based on the quantity including permissible wastage, the cost of materials to the Contractor at site of work can be determined.

If the contract provides for supply of Track materials to the Contractor, at fixed rate, the cost of Track materials should take into account such issue rate at site of works. If materials are to be supplied elsewhere, the cost of transport and stacking at site of work should be added suitably.

b) (i) Labour (Other than Track works):- The requirement of labour will cover different categories - unskilled, semiskilled, skilled and highly skilled. The requirement per unit of work in terms of mandays has to be assessed based on previous experience or from literature, if any, available. If the Non Scheduled item is similar to a DSR item, that can be taken for guidance. In case there is no similar item, action may be taken on the same line as indicated for materials in Sub Para a(i) above. As regards the prevalent daily market rates for different categories of labour, the same has to be ascertained from Market by either of the following methods :

l Rate being paid by the contractors operating in the area.

l Rate at which Labour contractors supply labour. From the rates quoted, 10% may be deducted towards Labour Contractor’s profit, to arrive at the rate at which the Labour is paid by the Labour Contractor.

While ascertaining the Market Rates, the following may be kept in mind.

l Rates should be ascertained from at least three different sources.

l Rate should be for casual Labour and should include the elements of compensation towards weekly rest and other facilities, if any, such as housing, medical attention, Insurance etc.

The daily rate to be considered shall be the least of the rates obtained from 3 or more different sources. It should be checked if there are any Statutory Minimum Daily Wages declared by the Central or State Government for that category of Labour. If there is any such rate, the Daily rate to be adopted for Market Rate Analysis should not be less than the highest of the Statutory Minimum Daily Wages laid down by different Bodies. Based on the Daily rates as determined for different Categories of Labour and the requirements in terms of Mandays per Unit of work, the Labour element can be worked out.

(ii) Labour (Track Works ):- The requirement of labour of different categories unskilled, semiskilled, skilled and highly skilled for different types of works should be ascertained from the Zonal Railways. Where recent sanctioned estimate of Railways for similar work is available, the details can also be extracted from such estimate. Assessment of the daily market rate and statutory minimum wages shall be done in the same manner as indicated in Sub para b(i) above. If however, such details of manpower category-wise for different types of works are not readily available from the Zonal Railways, the Labour element cost per unit of the particular type of work inclusive of provision for Tools and Plants can be ascertained from the Zonal Railways for any recently concluded contract.

c) Hire / Running charges of Plant, Machinery and Sundries:- If any heavy/specialised Plant / Machinery / Equipment is required for the work, its hire/running charges be ascertained.

d) (i) Contractor’s Overheads and Profit:- (Building Works, Colony roads etc.) For uniformity, this should be taken at 15% of the cost of materials, labour and on hire/running charges for Plant and Machinery based on CPWD practice.

(ii) Contractor’s Overheads and Profit (Track Works) The following provisions should be made towards Contractor’s Overhead & Profit

a) On Track Materials

If arranged by the contractor at his cost @ 15% of the cost of such material

If arranged by RITES and supplied free or at fixed rates to the contractor - @ 5% of cost of such materials.

b) On other than Track Material arranged by the contractor - @ 15% of the cost of such material.

c) On Labour

If cost of labour has been assessed based on manpower category –wise @ 15% of cost of labour.

If cost of labour has been assessed based on recently concluded contract for similar works – no provision need be made.

d) On Hire/ running charges of Plant & Machinery and sundries - @ 15% of the cost of such items.

(iii)Contractor’s Overheads and Profit (Highway Works):- Contractor’s Overheads and Profit should be taken @ 20% over cost of materials, labour and hire/running charges for projects costing upto Rs. 50 Crores. For projects costing over Rs. 50 Crore, the same may be taken @ 18% based on MORTH practice as per their “Standard Data Book for Analysis of Rates-2003.”

(iv) Contractor’s Overheads and Profit (Bridge Works):- Contractor’s overheads and profit may be taken as follows on cost of materials, labour and hire / running charges of Plant and Machinery: (Based on MORTH practice as per their “Standard Data Book for Analysis of Rates-2003”)

(i) For major bridges including State-of-Art Bridges – 35%

(ii) Minor bridges included in Highway/Rail packages – 30%

(iii) Rehabilitation of bridges – 40%

4.4.2 The Non Scheduled item rate as worked out above, should be compared with the prevalent Contract rate for same item in the same area, under other ongoing or recently executed contracts, if such information is available. This will facilitate a cross check of the reasonableness of rate as worked out. It should however be ensured that the Contract rate ascertained is itself a reasonable one determined on basis of open tender and is not an abnormally high or low rated item. All records in support of the analysis for Non Scheduled item rate should be maintained and these will include quotations for different materials and different categories of labour, Statutory Orders of Central / State Government on Minimum Wages for Labour and State Governments’ notification on Sales Tax on Works Contracts.

4.5 DETAILED ESTIMATE - COMPILATION

4.5.1 The Detailed Estimate will first be made out to reflect the following elements :

a) Cost of Schedule of Rate items with escalation as per prevalent Cost Index declared by CPWD / as accepted for similar works in the recent past for Non CPWD contracts.

b) Cost of Non Schedule items based on Market Rate Analysis. Normally items of Stores conforming to relevant IS Specifications or other approved and specified standard specifications like BS, DIN should be considered unless Client specifically wants certain makes to be included in which case

Detailed Estimate/Justified Cost should be based on lowest acceptable Make / Brand specified, provided it is available near the project site.

c) In case Sales Tax or VAT on Works Contracts is being levied in the State, that element has also to be considered. VAT @ 2% is applicable on Works Contract drawn under the jurisdiction of Government of Delhi. This may vary from State to State. On VAT on Works Contract, the following extracts from Para 20.4.3.1 of CPWD Works Manual 2010 may be kept note of.

The element of VAT will not be applicable in the following cases.

i) Contracts / Work Orders for Hiring Vehicles

ii) Contracts / Work Orders for watch and ward

iii) Contracts/ Work Order for all kinds of Horticulture works

iv) Contracts / Work Orders for miscellaneous services such as running / maintenance of computer service, running of vehicles etc

v) Any other similar contract / work order having no involvement of materials.

vi) The element of Building and other Construction Workers’ cess as applicable to the State / Union Territory will not be applicable for purchase of materials.

d) Service Tax on Works (if applicable) at 4% or at rate as laid down on cost of items (a) and (b) above

e) Building and other construction workers Welfare Cess at 1% of cost of items (a) and (b) above. This rate may vary from State to State and may be modified accordingly. Some States have still to impose this.

f) Contingencies at 5% on items (a) to (e) if the total is upto Rs.1.00 Crore and at 3% on items (a) to (e) subject to minimum of Rs.5 lakhs in case the total of items (a) to (e) is more than Rs.1 Crore.

g) RITES’ fees at the rate agreed to between RITES and the Client on items (a) to (f).

4.5.2 In case of works of specialized nature such as Box Pushing, Construction of PSC Girder Bridge over Railway Tracks etc where the cost of enabling Works is substantially high and also dependant on site conditions, the Detailed Estimate may be made out based on the last accepted rate for similar works in that area, duly enhanced by the relevant cost Index.

4.6 TECHNICAL CHECK OF DETAILED ESTIMATES

The Detailed Estimate is to be technically checked by the Project Coordinator or a nominated officer not below the rank of a Manager before putting up the same to competent authority for Technical Sanction. In case of a composite estimate, the concerned disciplines like Electrical/Signal/ Mechanical shall obtain technical sanction of their competent authority before sending it to Co-ordinating SBU/group. The technical check shall cover the following in particular in addition to the general check on the lines indicated in Paras 4.3 and 4.4 above.

a) The Cost Index adopted on the DSR or other schedules items has been correctly taken.

b) Cost of Non-schedule items has been prepared, where feasible, correctly by comparison with a similar item existing in the Standard Schedule of Rates.

c) In case of Non-schedule items prepared based on the manufacturer’s specifications or RITES’ experience, the quantities of materials, wastages, etc. have been correctly considered.

d) The elements of taxes/cesses, overheads and profit, contingences and RITES’ fee have been taken as per standard norms or provisions in the contract agreement with the Client as applicable.

4.7 SUPPLEMENTARY ESTIMATE

Any modification of a project thought necessary, while a Work is in progress, which is a material modification to the Scope of Work as already sanctioned must be covered by a Supplementary Estimate, accompanied by a full report of the circumstances, which render it necessary. The abstract must show the amount of the original estimate and the total amount for which sanction is required including the supplementary amount. This Estimate will also have to be got sanctioned by the Competent Authority of RITES after acceptance by the Client.

4.8 REVISED ESTIMATE

When an excess over the Sanctioned Estimate is foreseen and there is likely to be unavoidable delay in the preparation of a Revised Estimate, an immediate report of the circumstances should be made to the RITES’ authority whose sanction will ultimately be required and to the Client. When a Revised Estimate is submitted, it must be accompanied by a statement comparing it with the latest existing sanction of the competent authority and by a report showing the progress made upto date. The Revised Estimate will have to be got sanctioned by the Competent Authority of RITES and accepted by the Client well in time before any contractual liability can be entered into with the Works contractor for the increased Cost of Work.

4.9 MARKET RATE ANALYSIS

4.9.1 Market rate analysis is required to be prepared by the Tender Committee for assessing the reasonableness of rates of tenders. Immediately after call of tenders, the project co-odinator should start the exercise to obtain market rates of materials, labour, hire / running charges and other inputs necessary for preparing Justified Cost/Market Cost taking into consideration special problems, if any, likely to be encountered in the area / site of work. Complete data for preparation of Market Rate Cost/Justified Amount by the tender committee should also be sent by Project Coordinator while forwarding Briefing Note to the Tender Committee.

4.9.2 Procedure for preparation of market rate analysis for evaluation of tenders based on CPWD Practice shall be as under:

a) DSR Items

i) Cost of DSR items with escalation at prevalent Cost Index will represent the element of Cost of DSR items that can be put to tender (which is exclusive of element of Sales Tax / VAT on Works Contracts, Service Tax on Works Contract and Labour Welfare Cess). Items constituting about 90% of the estimated cost of the work should be considered for preparation of market rate analysis. Items to be considered should be selected which have higher estimated cost. One should start with items having the highest estimated amount and next lower in the decreasing order and so on, till about 90 % of estimated amount is reached. For each such DSR item, the Market Rate Analysis should be done strictly adopting the procedure laid down in CPWD’s Standard Analysis of Rates. Even in case Sales Tax / VAT on Works Contract, Service Tax on Works Contract and Labour Welfare Cess are payable, these need not be considered at this stage. The Unit rates for Materials and Labour should be ascertained from the Market following the procedure described in Para 4.4. The Market Rate Cost of each identified DSR item for the Estimated Quantity of that item should be worked out. The total Market Rate Cost of all the identified DSR items should be compared with the total estimated cost of the same identified items considering the Base DSR 2007 rates and justified percentage computed. This justified percentage which may be different to Cost Index advised by CPWD for the period when Estimate has been made out should be applied on the base DSR 2007 Rates for the remaining DSR items contributing to balance about 10% of the cost of DSR items put to tender.

ii) Thus the Market Rate Cost of DSR items can be worked out as under:-

l Identified DSR Items totally costing about 90% of cost of DSR items put to Tender:-

- Total amount for all such items based on Market Rate worked out for each individual item as described above multiplied by Quantity of that item.

l Remaining DSR items, totally costing about 10% of Cost of DSR items put to Tender:-

- Total amount for all such items based on DSR 2007 Base Rate for each item enhanced by Computed Cost Index as explained in sub-para (i) above multiplied by Quantity of that item.

b) Non-DSR Items or Non-schedule Items.

For the Non DSR or Non Scheduled items, the Detailed Estimate made out as described in Para 4.4 will continue to hold good, as the procedure envisages Market Rate Analysis.

4.9.3 For estimates based on other than CPWD practice, the following procedure shall be adopted for making out Market Rate Analysis.

(a) Schedule Items: In case “Standard Analysis of Rates” is available for each SOR item with break up of quantities of materials of different types and labour of different categories, procedure similar to what has been indicated in Para 4.9.2 (a) may be adopted. If however such “Standard Analysis of Rates” is not available as in the case of Indian Railways, such Market Rate Analysis of Schedule of Rate items need not be made out. The reasonableness of rates received will have to be assessed only by comparing the percentage above SOR of all items put together with the Percentage above SOR as accepted for similar works in the same or adjacent area for recently concluded contracts.

(b) Non Schedule Items: Provisions in Para 4.9.2 (b) will be equally applicable in this case also.

4.9.4 In both cases of Market Rate Analysis of Cost of Work under Paras 4.9.2 and 4.9.3, the element of VAT / Sales Tax on Works Contracts and Building and other Construction Workers Welfare Cess etc. can also be added in case such a Tax / Cess is being levied by the Central / State Government concerned. The tenderer’s cost will naturally include the cost of materials, labour, Hire/ Running charges of Plant and Machinery (if applicable), Overheads and Profits as well as Sales Tax / VAT on Works Contracts, and Labour Welfare Cess as applicable. Nothing is to be added towards Service Tax on Works since it will be reimbursed to the Contractor based on actuals.

SECTION 5

CONTRACTS AND FORMS

5.1 DEFINITION OF CONTRACT

5.1.1 When two or more persons have common intention communicated to each other to create some obligation between them, there is said to be an “Agreement”. An “Agreement” which is enforceable by law is a “Contract”.

5.1.2 According to Section 10 of the Indian Contract Act, 1872 only those Agreements are enforceable by law which is made by the free consent of parties competent to contract, for a lawful consideration and with a lawful object and, are not expressly declared to be void. This is subject to any special law according to which a contract should be in writing and attested by witnesses.

5.1.3 The following are the essential ingredients of a contract:-

a) Offer made by one person called the “Promisor”.

b) Acceptance of the offer, by the other person called the “Promisee”.

c) Doing of an act or abstinence from doing a particular act by promisor for promisee called “Consideration”.

d) The offer and acceptance should relate to something which is not prohibited by law.

e) Offer and acceptance constitute an “Agreement”, which when enforceable by law, becomes a “Contract”.

f) In order to make a valid and binding agreement, the parties entering into such an agreement should be competent to make such agreement.

5.1.4 For the purpose of an Agreement, there must be a communication of intention between the parties thereto. Hence in the forms of a Contract there is:

- A proposal

- Communication of the proposal

- A communication of the acceptance of the proposal.

5.1.5 The communication of acceptance of the proposal completes the Agreement. An offer may lapse for want of acceptance or be revoked before acceptance. Acceptance produces something which cannot be recalled or undone. A contract springs up as soon as the offer is accepted and imposes an obligation upon the person making the offer. It has been opined by the Ministry of Law that before communication of acceptance of an offer, the tenderer would be within his right to withdraw, alter and modify his tender unless there is a specific promise to keep the offer open for a specific period backed by a valid consideration.

5.1.6 Amendments to accepted Contracts:-

Amendments to the Contract being a Subsidiary Contract will be required to be made, whenever the scope of original Contract is to be changed. Tender accepting authority can amend the Contract provided that

i) The amended Contract amount is within his powers

ii) It does not involve enhancing the Contract rates originally quoted by the Contractor

iii) The final bill has not been signed by the Contractor

iv) The amendment is signed by both the parties to the original agreement. Proforma for Amendment to the Contract Agreement is at Annexure 5.1.

5.2 CONTRACT DOCUMENTS

5.2.1 RITES Standard Tender & Contract Document (2011 Edition), generally based on CPWD practices has been issued separately under three parts namely, Part I ‘Technical Bid’, Part II ‘Financial Bid’ and Part III ‘General Conditions of Contract.’

(A) Part I–Technical Bid

This consists of following sections

Section 1) Notice Inviting Tender and Instructions to Tenderers.

Section 2) Tender & Contract Form

Section 3) Special Conditions

Section 4) Schedules A to F

Section 5) Technical Specifications

Section 6) Drawings

(B) Part II–Financial Bid

The revised standard formats for Percentage and Item Rate Tenders have been issued separately. These should be followed as applicable.

(C) Part III–General Conditions of Contract (2011 Edition)

Section 7) Conditions of Contract

Section 8) Clauses of Contract

Section 9) RITES ‘Safety Code’.

Section 10) RITES ‘Model Rules for Protection of Health and Sanitary

arrangements for Workers’.

Section 11) RITES Contractor’s Labour Regulations'.

5.2.2 General Clauses of Contract (Compilation of Sections 7 to 11) should be issued as part of bidding document. Part III GCC will also be available with upto date Correction Slips uploaded in RITES’ website < www.rites.com>

5.2.3 In the case of tenders to be invited based on CPWD practice, Part III-GCC of the Standard Tender Documents should be adopted as far as possible without any modifications. In respect of Part I (sections 1 to 6), blanks should be filled up to

suit exigencies of a specific work taking care that there is no contradiction between provisions in different sections. In all cases of modifications the sanction of the Authority Competent to approve deviations from Standard Tender Documents (SOP Item 2.2) should be obtained.

5.2.4 Special case has to be exercised in preparation of Section 3, depending on the requirements of the client and scope of work. While standard formats have been laid down for all sections other than 3,5 and 6; the Project Coordinators will be required to make out these sections 3,5 and 6 with the assistance of Controlling Site Engineer and SBU office. General Guideline for preparation of these sections are given in subsequent paras.

5.2.5 Special Conditions

These should be made out in two parts as described below:

(i) Special Conditions relating to Clauses of Contract as covered by Section 8

These will cover modifications to Clauses of Contract (Section 8) by way of deletions, additions and alterations. For such items of Special Conditions, specific reference should be made to the Clause of Contract being modified, with Clause Number and Heading along with details of what modifications have been proposed. Clause numbers of these Special Conditions of Contract may be same as in GCC for ease of reference.

(ii) Additional Special Conditions

These will deal with items not covered by “Clauses of Contract” (Section 8). Since existing Clauses of Contract cover in detail practically all requirements of a Works Contract, there may not be the need for many clauses of “Additional Special Conditions”. But if there are any items, not relating to Technical Specifications but are required to be included based on Client’s requirements or Site specific needs, they can be included under “Additional Special Conditions”.

5.2.6 Technical Specifications

(a) These have to be made out in two parts as under:

i) Standard Specifications:

These are printed documents issued by different organizations such as CPWD for Building works. Ministry of Surface Transport (Indian Road Congress) for Road and Road Bridge works and Indian Railways /RDSO for Track works and Railway Bridge Works. CPWD and MOST have also made out Standard Schedule of Rates corresponding to Standard Specifications and also Standard Analysis of Rates for each item of Schedule of Rates. As far as

Indian Railways Standard Specifications, Schedule of Rates and Analysis of Rates for Building works are concerned, though they have been approved by Railway Board, they have not been brought into force by all the Zonal Railways. Each Zonal Railway has made its own Standard Specifications and Schedule of Rates and they will be in use till they are replaced by Unified Indian Railway Specifications and Schedule of Rates/Analysis of Rates.

ii) Special Specifications

For non-schedule items which are not covered by Standard Schedule of Rates and hence by the Standard Specifications of the relevant organization, it will be necessary to draft Special Specifications for each item. These can be framed on basis of IS Specification/British Standard Specification or based on the Specifications issued by manufacturers. The Special Specifications should cover the exact scope of the item including specifications for materials, workmanship, method of measurement, quality control tests etc.

For Railway Track and Bridge works, for the present, the details contained in “RITES Specifications for Railway Track and Bridge works (September 2010)” may be used with any modification as required for items of works covered by the Book. Soft copy of these Specifications is available with Track and Survey wing of Rail Infrastructure Division at Gurgaon. For items not covered by the Book, extracts of relevant RDSO or Indian Railway Specifications or Specifications made out by the Zonal Railways may be relied upon to draft the “Special Specifications”.

(b) While the Tender Document will cover all identified Schedule and non-schedule items, during the course of execution of works, some extra or substituted items may be required to be operated. For such items, the same principles outlined in Para (a) above will apply depending on the scope of the item concerned.

5.2.7 Drawings

At the stage of invitation of Tender all drawings, adequate to understand the specific scope of work involved and those required for execution of the work at site for at least the first few months should be ready and included in the Tender Document.

5.3 LUMPSUM CONTRACT

RITES Standard Tender Documents envisage the works being carried out on item rate or percentage rate basis. But occasionally the clients may require that the Tenders be called on Lump sum basis. A note on Lump sum contract is at Annexure 5.2. The Tender Documents for Lump Sum Tenders will have to be made out with special care by suitably modifying RITES Standard Tender Document.

SECTION 6

PREPARATION OF TENDER DOCUMENTS AND PUBLICITY

6.1 TENDER SYSTEM

6.1.1 The Tender System is one of the most effective methods of securing competitive rates for execution of works. The exceptions made to the general rule that the tenders should be called for in all cases are based only on practical consideration in order to avoid delay and unnecessary formalities in cases of works of comparatively small value. The powers of RITES’ officials for calling and accepting quotations instead of calling tenders have been laid down in Schedule of Powers. The guidelines to be followed for resorting to quotations in place of tenders have been laid down in Annexure E of SOP and a copy is at Annexure 6.1.

6.1.2 Tenders can be classified into the following classes;

i) Single Tender

ii) Limited Tender

iii) Open Tender

6.2 SINGLE TENDER

(i) The system of Single Tender should be resorted to only in exceptional circumstances. Powers of RITES’ officers for calling of Single Tenders are laid down in SOP. Powers for Nomination of Tender Committee and acceptance of its recommendations in the case of Single Tender are laid down in SOP. In addition to getting the approval of the Client, calling and acceptance of Single Tender will be governed by the guidelines laid down in Annexure D of SOP and a copy is at Annexure 6.2. Tight target and urgency cannot be accepted as a reason for calling Single Tender.

(ii) All such cases of Single Tender shall be posted on the web site ex-post-facto.

6.3 LIMITED TENDER

6.3.1 The powers of RITES’ officers for calling of Limited Tenders, subject to approval by the Client (wherever required, in terms of the Agreement between RITES and the Client), have been laid down in SOP. The Powers for nomination of Tender Committee and acceptance of its recommendations have also been given in SOP. Decision for calling Limited Tenders in place of Open Tenders, which should normally be resorted to, should be taken keeping in view the following:

a) Work is required to be done in urgency and in short period and / or

b) The job is of a special nature which could be executed only by a few special type of Consultants / Contractors who are well versed with the job.

c) Justification for hiring of consultant should be available on file.

6.3.2 Limited tenders for works

a) Each SBU (Tender Issuing Officer) should maintain a list of working

contractors who have substantially completed works (Billed more than 90% of the awarded value) satisfactorily with the SBU in the last 5 years, with details like name/nature/value of work, specifically mentioning the performance in each case. The list should be prepared/ updated once in a year before start of the working season (i.e. 1st October).

b) For any work of a specialised nature or for any work in an area where adequate number of suitable contractors are not available, such list of suitable contractors should be prepared by ascertaining information/enquiries from offices of Central/State Government Departments/PSUs operating in the region/Yellow Pages of Directory. The list should contain at least 6 names.

c) The Limited Tender enquiry must be sent to all eligible contractors in the approved list under Registered cover / Acknowledgement due and record kept. A register should be maintained with details of the contractors to whom the Limited Tenders have been issued.

d) Notwithstanding provisions above, Open tenders should be invited in the following circumstances:-

i) In the event of insufficient response to the Limited Tender from the Contractors borne on the Approved list or

ii) When the minimum of 6 Contractors with requisite experience in similar type of work are not available for placement in the Approved list or

iii) When ring formation is suspected.

6.3.3 Limited Tenders for Survey / Design / Investigation / Planning / Consultancy Jobs.

a) In cases where a SBU requires such services frequently and Limited Tenders are resorted to for above jobs, a panel of contractors/sub-consultants should be formed by each SBU. Panel can be kept valid for three financial years at a time. This will require an open advertisement in the papers specifying the general requirement of technical capability and past experience. For such work, stress may be given to quantum of similar jobs done over financial capability while calling for Expression of Interest for enlistment in the panel of Contractors/Sub-consultants. The advertisement shall be uploaded on the RITES Website also. The Contractors/Sub-consultants will be advised to give details of their experience in the specialized field for a period of at least 5 years with supporting documents and also proof of their satisfactory financial status. There is no objection if empanelment of contractors/consultants is done for more than one category for awarding contracts in different financial limits provided intention for enlisting in various categories is spelt out in press notice along with applicable PQ Criterion. The applications should be called for, atleast three months before the starting date of Panel life of three years so that the Panel can be finalized well in time after scrutiny and verification of the documents. The selected Contractors/Sub-consultants should be advised of their being placed in the panel and the period of validity of the panel.

b) The Panel of contractors/sub consultants my be reviewed periodically by the SBU Head for weeding out of such enlisted contractors/sub-consultants who have not remained active in RITES or have not performed well. Fresh applications received from time to time for enlistment, may also be considered periodically, say after interval of 6 months for inclusion of new names in the Panel, subject to the fulfillment of PQ Criteria by the applicants. The empanelment of such contractors/sub-consultants shall be valid only for residual validity period of the panel.

c) For Limited Tenders for above types of jobs/works in Difficult Areas (Northeast States, J & K, Andaman & Nicobar Islands) for which, if in the opinion of SBU Head, adequate response from empanelled consultants/contractors is not likely, the panel may be supplemented by ascertaining information/enquiries regarding suitable contractors/consultants as per procedure described in para 6.3.2 (b).

6.3.4 Small value design/drafting/consultancy jobs, specialized studies, proof checking, Lab testing etc.

These should generally be executed as per SOP Item No. 4 / 11.4.2 / 11.4.2 (a).

6.4 CONTENTS OF TENDER DOCUMENTS

6.4.1 In case of works for which tenders are to be invited, except in cases where the Client insists upon adoption of a particular format such as that of CPWD, Railways, World Bank, MES etc, RITES Standard Tender Document which has been issued separately should be adopted. Changes in the standard documents are permitted only to the extent indicated in Para 5.2.4. Any deviations required to General Conditions of Contract should be included in the Special Conditions of Contract. In all cases of modifications of the Standard Tender Documents, specific approval of the Competent Authority (SOP Item 2.2) should be taken before issue of NIT. While putting up the Tender Document for approval of the Competent Authority, the Project Coordinator should list out all deviations proposed in RITES Standard Tender Document and reasons for the same.

While approving the tender documents, following must be particularly ensured:

i) No modifications to the Statutory Clauses have been made. ii) Special Conditions, if any, are not repetitive and contradictory. iii) The Schedule of Quantities (BOQ) is based on the detailed estimate duly

sanctioned by the competent authority. iv) The BOQ does not have any item with ‘0’ quantity. v) Set of drawings referred to in the BOQ is available. vi) Technical specifications of all items of work, specially Non schedule items

have been included. vii) The Completion Period should be decided keeping in view the complexity

of the nature of work involved and keeping in mind the requirements of the Client. For multistoried buildings, the following guidelines laid down by CPWD may be kept in mind and may be modified based on site constraints. Basement may be taken as one storey.

a) Upto 4 storeys – 8 to 12 months

b) Beyond 4 and upto 6 storeys – 12 to 16 months

c) Beyond 6 storeys - 16 to 21 months

viii) Clause 36 of Clauses of Contract in GCC stipulates that details of Technical staff to be employed in the works should be indicated in Schedule F. The norms being followed by CPWD in this matter are given in Annexure 6.3 for guidelines and may be adopted depending on the complexity of the work. Rates for recovery for Non-deployment of Engineers to be indicated in Schedule F may be decided based on RITES notifications on remuneration for contract Engineers of equivalent Qualification and experience.

6.4.2 The Project Coordinator should personally ensure that there is no deviation between the Tender Document to be issued to the Tenderer and the Document approved by the Competent Authority. The Project Coordinator either himself or by an authorized representative (not below the rank of AM) should date and initial all corrections, particularly in the Schedule of Quantities, Schedule of Materials to be issued and Specifications and generally in other essential parts of contract documents, and also date and initial on all pages of the tender documents irrespective of the fact whether they contain or do not contain any corrections or overwritings etc. This is to ensure that any tenderer does not intentionally replace any page of the Tender Document by his own page.

Before issue of Tender Document to the tenderer, he should also sign on the Integrity Pact (which is Annexure VIII of Section No.1 – NIT and IT of the Tender Document) for and on behalf of the Employer.

6.4.3 Before approval of NIT, the following should be ensured as far as possible.

i) Availability of site, funds and approval of plans from local bodies. ii) Confirmation that materials to be issued to the contractor would be

available. iii) Availability of structural drawings for the foundations and arrangement for

issue of drawings well in advance of actual requirement at site as per the program of construction.

iv) Layout plan for all services.

6.4.4 When the Tender Document has been made out by the Client for issue by RITES, it will be the responsibility of the Project Coordinator to check the same and bring out the deficiencies, if any, to the attention of the Client and effect modification to the document as required.

6.4.5 The following should be kept in mind while making out the Tender Documents.

a) In the Schedule of Quantities (Price Bid) use of symbols such as % is prohibited. For example Per hundred Sq.metre must be written and not % sq.metre. The units should thus be more specific.

b) In the case of Lumpsum Tenders where Detailed Drawings and Specifications are to be supplied to the Tenderers, it should be ensured that the Drawings and Specifications are approved by the Competent Authority. The Cost of the various items forming part of the work should be correctly assessed with reference to the relevant Schedule of Rates and in the case of Non Schedule items, on the basis of rates supported by detailed analysis thereof.

6.5 INVITATION OF TENDERS FOR COMPONENT PARTS

6.5.1 Generally, splitting of works for the purpose of inviting tenders should not be resorted to. However, due to administrative convenience client’s requirement and expediency, works may be split up with the approval of competent authority as per SOP and tenders may be invited separately for the split portions as per powers delegated.

6.5.2 Accord of Technical Sanction and call of tenders for component parts of the project, the amount of which appears as a distinct sub-head in the sanctioned estimate, will not amount to splitting the work and can be dealt with by the respective authorities as per powers delegated even if the overall amount of the project may be beyond the competence of any such individual authority.

6.6 PUBLICITY OF TENDERS

6.6.1 (i) For “Open Tenders”, of Works costing over Rs.0.50 Crore each wide publicity should be given to the Notice Inviting Tenders. Tenders must be invited in the most open and public manner possible by advertisement in the press both in English and in Hindi or Local language, and by notice posted on the Notice Board of the Office issuing the Tender. A copy of the NIT should also be sent by SBU concerned to the Controlling GGM/ED of Project Office at Gurgaon. For works costing more than Rs. 25 Crore, NIT should normally be issued as an advertisement in two English News Papers of National circulation and one Regional Newspaper published in Hindi or local language. For works costing more than Rs. 5 crore but less then Rs. 25 Crore, the number of English Newspapers of National circulation for the purpose of advertisement may be restricted to one to save on cost of advertisement. For works costing upto Rs.5 Crores and above Rs.0.50 crore, it will be adequate if the advertisement in English is published in a Regional Newspaper. For Works costing upto Rs.0.50 Crore, while press notification of NIT will not be required, it has to be ensured that NIT is positively uploaded on RITES website and also posted on the Notice Board of the Office issuing the Tender. The Newspapers to be selected should be such that they are popular and will attract the attention of the Contractors operating in the Region where the work is to be carried out.

(ii) In case decision is taken to lower the pre-qualification/eligibility criteria subsequent to apperance of NIT in the newspapers, suitable corrigendum should be got uploaded in RITES website. In such cases, the relevant dates like, last date of issue of tender documents, of pre-bid meeting, of submission of tenders and of opening of tenders may also be suitably extended.

6.6.2 Action to post the NIT on RITES website will be taken by the IT division at Gurgaon. Website address must be given in the advertisement/NIT published in the newspapers.

6.6.3 In the case of open tender, complete set of tender documents including drawings should be posted on the website of RITES in downloadable form. In case of Limited Tenders involving Works/Supplies costing over Rs. 10 lakhs, only NIT need be posted on the website and firms informed individually by Registered post also. Tenders/applications made on such downloaded document shall be considered valid for participating in the tender process. In case of tenders submitted by the tenderers after downloading from the website, the tenderers shall furnish the cost of documents by separate demand draft or in any other

form as stipulated in the Tender Document in favour of RITES Limited along with bid document. In case the cost of documents is not furnished the tender should be summarily rejected.

Even though the bidder has been permitted to submit his bid in the documents downloaded from the website, the contract agreement on award of work should be signed only on the manual copy as issued originally by the concerned RITES Office.

Suitable provision has accordingly been made in the RITES ‘Tender And Contract Document 2011’

6.6.4 The advertisement inserted in the Press should be brief but clear in meaning. The following should be kept in mind.

i) Combined tender notice may be issued for a number of works to be awarded around the same time by the same SBU.

ii) The Press Notice should indicate the name of work, Estimated Cost, Earnest Money, Completion Period, cost of the tender document, RITES Office / website where tender document will be available, last date for submission of tender, and any other salient details of interest to the tenderers.

iii) The name of the Tender Inviting Authority should not be included and only the designation indicated.

Draft specimen of Press Notice for a tender is given at Annexure 6.4 for guidance.

In case any amendment / corrigendum is required to be issued to the NIT, there is no need to issue a press notification on the amendment / corrigendum. But it should be ensured that all such amendments / corrigenda to NIT as well as the Tender Document are uploaded in RITES website.

6.6.5 The following guidelines are to be followed by the Tender Inviting Authorities regarding publicity of tenders:-

a) A watch should be kept on publication of advertisement in the selected newspapers. Newspaper cuttings in each case should be collected and kept on record as a proof of publicity actually achieved. Full details of the dates on which advertisements have actually appeared in the newspapers should be indicated while sending tender cases to higher officers.

b) It should be ensured that in cases where the tender document/NIT is to be posted on the website as indicated in para 6.6.3 above, the actual posting on the website has been done prior to publication of NIT in the newspapers. A certificate to the effect that the tender document/NIT as the case may be, has been posted on the website and the date on which posted, should be indicated while forwarding tender cases to higher officers.

6.6.6 In the case of Open Tenders where pre-qualification of the tenderers has been resorted to, it will be adequate if the NIT is sent by Registered Post /

Acknowledgement due or issued in person after taking clear acknowledgement, to only the pre-qualified tenderers.

6.7 PRE BID CONFERENCE

In case of normal works estimated to cost Rs. twenty crores and above and for specialised works, a pre bid conference may be held by the SBU at least 5 days before the last date of submission of the tenders, for clarification of any doubts of the prospective tenderers on any Condition of the Contract, Specifications etc. Requests for such clarification, if any, must be sent in advance by the Bidder to reach RITES concerned office not later than 10 days prior to the deadline for submission of Tender. Minutes of the meeting and Addenda / Corrigenda to Tender Document if any will be uploaded in RITES website only and no individual advice will be sent to any Bidder. Even in case of works costing less than Rs. twenty crores, where necessary, Pre Bid conference may be held in a manner described above at the discretion of the NIT approving authority with similar action to upload the Minutes of the meeting and Addenda / Corrigenda if any. There is no bar to hold more than one Pre Bid conference in complex types of works.

6.8 PRE QUALIFICATION OF TENDERERS – JOINT VENTURES

Annexure 1 of RITES Standard Tender & Contract Document lays down Qualification Criteria, for Works as well as whether Joint Venture can be permitted and if so the requirements to be fulfilled by them. Normally Joint Ventures may be allowed for composite works falling in the Category of Normal Works as well as for Large Works. Annexure 6.5 lays down the Guidelines for fixing the Qualifying limits for small, normal and large works and should be adhered to while making out the Tender Document based on RITES Standard Tender & Contract Document.

6.9 ONE PACKET AND TWO PACKET SYSTEMS

6.9.1 For works costing upto Rs.1 Crore, Single Packet System shall be adopted with both Technical and Financial Bids opened simultaneously.

6.9.2 For works costing more than Rs.1 Crore, normally Two Packet System shall be adopted with the Technical Bid opened first and evaluated. The Financial Bids of only those tenderers who have come out successful in the Technical Bid will be opened at a later date. The Financial Bids shall as far as possible be opened within 30 days of date of receipt of tenders.

However where it is desirable to take up prequalification process separately first and issue tender documents to only the prequalified applicants, prior approval of competent authority shall be taken. This decision is to be taken based on the nature of work, time available and likely response to the qualification process. There shall be no objection if P.Q. process is taken up simultaneously for more than one work, indicating particulars of each work distinctly. In such a case, applicants need not submit credentials separately for each work. But applicants have to be judged separately for each work and list of applicants qualifying for a particular work cannot be adopted for another work.

6.10 TIME LIMIT FOR PUBLICITY OF TENDERS

The following time limits between the date of uploading of tenders on website, and the date of opening of the tenders are laid down but this period may be varied at the discretion of the officer competent to accept the tenders in terms of SOP. In order to ensure keen competition, the time schedule given below shall be adhered to as the minimum. Any reduction in time period shall be only in rare cases if approved by the Competent Authority under SOP for recorded reasons.

10 days in the case of works costing up to Rs two crores.

2 weeks in the case of works costing more than Rs. two crores and up to Rs. ten crores.

3 weeks in case of works costing more than Rs.10 crores.

It has to be ensured that the Tender Documents are ready well before the date of Call of Tender date from which the Tender Papers will be available for issue to the tenderers/ date of uploading of Tender Document in RITES website.

6.11 RE-INVITATION OF TENDERS / EXTENSION OF PERIOD

6.11.1 In case of re-invitation of tenders, all the formalities mentioned above shall be observed. The circumstances leading to the need for retendering should be carefully considered so that necessary modifications in the Tender Documents may be made while retendering. In cases when the dates and time for sale and receipt of tenders are required to be extended or qualification criteria are to be changed due to unavoidable circumstances, a proper notice for the same will be put up on the notice board of SBU and in the Web Site of RITES. While retendering for the work, tender will not be issued to the contractor, who has defaulted leading to forfeiture of Earnest Money.

6.11.2 All tenders should be invited in the name of the Client. It is therefore, necessary that the words “RITES Ltd. on behalf of the Client” should be incorporated in the press notice for publication in the newspapers.

SECTION 7

SALE OF TENDER DOCUMENTS

7.1 DOCUMENTS TO BE READY IN TIME

Tender documents should be prepared and kept ready for sale to the contractors and for uploading in RITES website as per provisions in Para 6.6.3, before the notice actually appears in press or is pasted on the Notice Board and every contractor desiring to tender shall be asked to make a written application. It is the responsibility of the SBU Head to see that tender documents are made available to the contractors as soon as the application is made. In the case of open Tenders, where prequalification has not been done in advance, Tender Documents should be issued individually against acknowledgement to all those who deposit the cost of Tender Document, irrespective of whether eligibility criteria are prescribed in the NIT or not. It is only the Tender Committee which is competent to decide whether the tenderer has satisfied the qualification or other criteria or not. It is not a matter within the competence of Tender Issuing Officer.

7.2 SUPPLY OF DUPLICATE SET OF TENDER DOCUMENTS

If so desired by a tenderer, a duplicate set of tender documents, duly stamped as “Duplicate”, may be issued to him at the cost of the original set of documents at the time of issue of the original papers. Duplicate copy cannot be submitted as a tender. In case of loss of original set of documents, the contractor should be required to buy a second set and submit it as tender.

7.3 TIME INTERVAL BETWEEN SALE OF TENDER DOCUMENTS AND OPENING OF TENDERS

Any tender form which is issued either for sale or for office use should be issued under the signature of the Tender Inviting Authority in terms of SOP or his authorized assistant (not below the rank of AM). In order to give contractors sufficient time to study tender documents and work out reasonable rates, the tender papers shall be sold as per following time schedule :–

Receipt of applications for issue of forms will be stopped by 1600 hours 3 days before the date fixed for opening of tenders. Issue of tender forms will be stopped 2 days before the date fixed for opening of tenders.

7.4 SCALE OF CHARGES FOR TENDER DOCUMENTS

7.4.1 The following will be the scale of charges for the sale of tender forms to contractors:-

a) Works costing upto Rs.10 crores Rs.5000/- (minimum) and Rs.7500/- (maximum) depending on the number of drawings/other documents to be issued with the tenders.

b) Works costing more than Rs.10 crores Rs.10000/- (minimum) and Rs.15000/- (maximum) depending on the number of drawings/other documents to be issued with the tenders.

7.4.2 In special cases authorities competent to approve NITs have got the discretion to add to the prices, mentioned above any additional cost of drawings to be supplied along with tender documents depending on the labour actually involved in their preparation.

7.5 SUPPLY OF DRAWINGS

Plans and drawings adequate for understanding, the scope of work and thus facilitating the Bidders to quote competitive rates must be supplied along with tender documents. Detailed drawings required for actual construction can be issued to the successful tenderer after execution of the Contract Agreement.

7.6 PRECAUTIONS IN SALE OF TENDER DOCUMENTS

To avoid the possibility of bogus and fake tenders being submitted, it is necessary that tender documents are sold individually and acknowledgements taken from contractors or their accredited representatives in the Sale Register of Tenders while handing over tender documents to them. In cases where tender documents are transmitted by post, these should be dispatched by Registered A.D. Post or by equivalent means to ensure availability of proof of actual dispatch of Tender Documents.

SECTION 8

RECEIPT, OPENING AND ACCEPTANCE OF TENDERS

8.1 PROCEDURE TO BE ADOPTED

8.1.1 With a view to avoiding the possibility of original Tender Documents being tampered with, the following procedure shall be adopted in connection with the receipt and opening of tenders and their acceptance. Detailed instructions contained in the “Notice Inviting Tender and Instructions to Tenderers” contained in the Standard RITES’ Tender Document should also be studied carefully.

8.1.2 Receipt of Tenders

All the tenders shall be received in the office indicated in the NIT where Tender Box shall be kept. The Box shall be locked and sealed so that documents dropped in the Box cannot be tampered with. If the Tender Documents to be deposited are bulky and cannot be put in the Tender Box, the NIT should specifically indicate the name and designation of the official /s who will receive the Tender Documents in person. The nominated official when receiving the Tender Document should check if it is in sealed condition and give acknowledgement of receipt to the Tenderers with date and time of receipt. He should sign on the top of the envelope with the time and date of receipt. Similarly in case any tender offers are received by post, the official nominated for receiving the same should send by post the acknowledgement after checking if the seal of envelope is intact, indicating the date and time of receipt. He will also record on the envelope the time and date of receipt and affix his signature thereon. If the envelop can be accommodated in the Tender Box, he shall drop it in the box. If the envelope is bulky, he shall keep it in safe custody.

At the time and date indicated in NIT as closing time for receipt of Tenders, the opening in the Tender Box for dropping of tender will be sealed with paper bearing the signature of the authorized official along with date and time.

8.2 DELAYED AND LATE TENDERS

Late or delayed tenders are not to be opened or considered at all and the unopened envelopes should be returned to the tenderer indicating the reasons for the same.

8.3 INSTRUCTIONS FOR TENDER OPENING OFFICERS

8.3.1 A Tender Opening Committee consisting of two officers, one from the concerned SBU (not below the rank of Engineer (Regular Staff)) and other from Finance (not below the rank of Accountant) should be nominated by SBU Head for opening the tenders.

8.3.2 The nominated Tender Opening Officers shall report to the Project Coordinator at least half an hour before the time fixed for opening of tenders. They should familiarize themselves especially with the following:–

i) Earnest Money - Amount and Form in which it can be submitted and Validity Period as given in Section 9 of this Guideline.

ii) Cost of Tender Document and the form in which to be furnished, applicable in cases where the tender is submitted in the form downloaded from RITES’ website.

8.3.3 The Tender Opening Officers shall make themselves thoroughly conversant with the procedure for opening and dealing with the opened tenders. After obtaining instructions from the Project Coordinator or the officer deputed by him for this purpose, Tender Opening Officers shall take out the tenders from the Tender Box. Before opening the Tender Box, the Opening Officers shall verify that the seal put on the opening in Tender Box and the seal on the lock for the door of the Tender Box are intact. If not, the fact must be immediately brought to the personal notice of the Project Coordinator for his instructions.

8.3.4 Tenders shall be taken out from the Tender Box and opened at the time stipulated thereof in the presence of such of the tenderers who have submitted tenders or their representative who are present. Tenderers should also be encouraged to be present at the time of opening of the tenders. The names of the tenderers and / or their representatives who are present at the time of opening shall be recorded by the Opening Officers in the register meant for this purpose and it shall be signed by both of them. While opening the tenders, no opportunity should be given to any tenderer to repudiate, amend or explain any rate or condition quoted in the tender.

8.3.5 In the case of Single Packet System where the Technical Bid and the Financial Bid are to be opened at the same time, the officers opening the tender should first open the envelop marked “Earnest Money” and if the Earnest Money in terms of the Form, Amount, and Period of Validity is in order, and where the Tender has been made out in the form downloaded from RITES website, the cost of Tender Document has been made out for correct amount and in one of the stipulated forms, then only should they proceed to open the Technical Bid and Financial Bid Envelopes. In case the Earnest Money is not found in order, and where applicable the Cost of Tender Document has not been furnished correctly the Technical Bid and Financial Bid should be returned to the tenderer on the spot if he is present there; otherwise later by Registered post /Ack. due. An entry shall be made in the tender opening register to this effect. The Technical Bids and Financial Bids of those tenderers whose Earnest Money Deposit is found acceptable, and where applicable the cost of Tender Documents has been furnished correctly, will then be opened. The rates and amounts quoted and conditions stipulated by the tenderers, if any, will be read out.

8.3.6 In case of Two Packet System, Technical Bids shall be opened first following the procedure indicated in Para 8.3.5 and after Technical Bid evaluation is completed, which may take some days, Financial Bid in respect of only those Tenderers whose technical Bids are found acceptable shall be opened on a date to be fixed and advised to the Tenderers concerned. In rare cases where deposition of Earnest Money along with the tender was not insisted upon due to expected long time in evaluation of Technical Bids, the Financial Bids should be opened only after getting the Earnest Money. Whenever the Financial Bids are opened, the rates and amounts quoted as well as the conditions if any, stipulated by the Tenderers will be read out.

8.3.7 In the Two Packet System where only Technical Bid is to be opened first, the Tender Opening Officers will also sign each and every unopened Financial Bid envelope and seal them in another outer envelope. The signatures with date of the Tenderers or their representatives present at the time of opening of Technical

Bid shall also be taken on the outer envelope which should be kept in safe custody by the Project Coordinator.

8.3.8 In both Single Packet System and Two Packet System, whenever the Technical Bids and Financial Bids are opened, the following procedure shall be adopted :–

Both the Tender Opening Officers shall sign with date on all the following pages:–

Technical Bid

i) Tender and Contract Form signed by the tenderer.

ii) Qualification Information filled in and signed by the tenderer.

iii) Where Integrity Pact is applicable as per NIT, the Integrity Pact duly signed and witnessed by the tenderer.

Financial Bid

Schedule of Quantities (BOQ) filled in and signed by the tenderer.

8.3.9 If by any chance there are any pages where any modification has been done by any tenderer by way of corrections, over writing, omissions, additions or conditions, such pages should also be signed with date by both the Opening Officers. While going through the pages of the Tender Document issued by RITES, the Tender Opening Officers should also check if each page bears the signature of an official of the office of Tender Inviting Authority.

8.3.10 Officers opening the tenders shall date and initial all corrections, overwritings, omissions, additions and conditions in both Technical and Financial Bids, specially in RITES Tender and Contract Form, Qualification Information and Schedule of Quantities as indicated in Para 8.3.8 and in the other pages referred to in Para 8.3.9 above. Use of correction fluid in tender documents should not be allowed. In case use of correction fluid is noticed, such tender will be liable for rejection.

8.3.11 The officers concerned should mark all corrections, over writings, omissions, additions and conditions and attest them in red ink. In case there are a number of corrections, over writings, omissions, additions and conditions in any page, each such correction, over writing, omission, addition and condition should be allotted an independent number and this numbering should be in serial order. Thus if there are three corrections in one page, they should be numbered serially as Correction No.1, No.2 and No.3. Similarly, Overwriting No.1, No.2, No.3 etc.

8.3.12 The total number of such corrections, over writings, omissions, additions and conditions on each page should be clearly mentioned at the bottom of that page. The Tender Section will supply a suitable rubber stamp to the Tender Opening Officers so that they can put the rubber stamp impression in all pages where corrections etc have been made by the Tenderers and number of corrections etc filled in the relevant columns along with their initial and date. If in any page there is no correction etc, even then the rubber stamp impression is to be put and at bottom of page “Nil” should be written against correction etc.

8.3.13 Any ambiguities in rates quoted by the tenderer, in words or in figures, must be clearly indicated on each page of the schedule attached to the tender to which it concerns.

8.3.14 In case where the contractor has quoted rates in rupees and no paisa is mentioned the word “only” should invariably be added after the words rupees and the corrections should be initialed and dated with suitable remarks at the end.

8.3.15 Where the contractors have omitted to quote the rates in figures or in words, the officers opening the tender should record the omissions on each such page of the Schedule.

8.3.16 The contractors are required to quote rates in words including paise to avoid chances of tampering in rates and if the contractor fails to do so, the Tender Opening Officers should write the rates in words at the time of opening of tenders under dated initials in addition to recording the omission on the part of tenderer.

8.3.17 The Tender Opening Officers shall scrutinize the tenders to ascertain whether any of these contain any conditions/stipulations by the tenderer. If there is any covering letter attached to the tender, the letter shall be initialed and dated by both the Opening Officers.

8.3.18 In case any tenderer has failed to total the amount of his tender, the fact should be stated by the Tender Opening Officers in the Schedule of Quantities and in the Tender Opening Register. If the rate for any item in Schedule of Quantities is missing, the Opening Officer shall insert a remark to that effect in the relevant place in Schedule of Quantities and this fact should also be stated in Tender Opening Register. The remarks shall be initialed and dated by the Tender Opening Officers.

8.3.19 In the case of Percentage and Lump Sum Tenders, the Percentages and Total Amount quoted should be read out to the tenderers as far as possible. In the case of Item Rate Tenders the Rates and the total amounts worked out by different tenderers may be read out, if requested by the tenderers present.

8.3.20 The Tender Opening Officers will be fully responsible for ensuring that they sign the tender documents at all the places wherever required as per these instructions before handing over the tender documents to the designated officer of the Tender Cell. They will be fully responsible for any consequences arising out of their failure to sign the tender documents at the places required as per these instructions.

8.3.21 At the time of opening of tenders, the Tender Opening Officers shall initial and date in ink on every envelope and also at the following places in every tender in addition to the places indicated in paras above.

a) On the right hand top corner of the first page of the tender document.

b) General Summary filled in by the tenderer.

c) Writing in different ink, and different hand-writing when compared with the general writing.

Extensions and totals need not be checked by Opening Officers.

8.3.22 Each of the Tenders received shall be given a serial number. If (say) 6 Tenders are received, they should be numbered as 1/6, 2/6 etc.

8.3.23 The serial number of the tenders shown on the envelope shall be shown along side the initials of the Tender Opening Officers on the first page of the tender documents, covering letter and also on the envelope(s) containing the Financial Bid.

8.3.24 If a blank tender has been received, the words ‘Blank Tender’ shall be written on the envelop containing tender and the fact shall be noted in the Tender Opening Register against the name of the tenderer concerned. Similarly, if no tender is received the words “No tender” shall be written against the name of the person / firm concerned to whom a tender was issued. Similarly “Late Tender” or “Delayed Tender” should be written against the name of the concerned Tenderer.

8.3.25 For the purpose of arriving at the number of tenders to be filled in the Tender Opening Register, a blank tender shall be reckoned as a tender received.

8.3.26 The Tender Opening Officers must fill up the following information in Tender Opening Register:–

i) Name of the work ….. ….

ii) Date & time of opening of the tender

iii) Names of the parties to whom tenders sold

iv) Number of Parties whose tenders have been received

v) Details of tenders received :–

a) in time:- Number with names of Tenderers

b) Late / Delayed as at the time of opening :- Number with names of Tenderers

vi) Names / details of the parties present during the opening along with names of their attending representatives

vii) Remarks / Any other details

viii) Names, Designations & Signatures of Tender Opening Officers

8.3.27 The Tender Opening officers have to fill and complete the Proforma of Tender Opening Register properly and the same has to be got signed by all the tenderers / their representatives present and has also to be signed by the Tender Opening Officers before handing over to the Project Coordinator or his representative.

8.3.28 If for any exceptional reason a tender box is not opened at the appointed time for opening of tenders, the fact shall be brought out in Tender Opening Register giving reasons therefor by the tender Opening Officers. If for any exceptional reason there is time to clear the box but not enough time to open the tenders, the fact with reasons shall be brought out properly in the Tender Opening Register. The key shall also be handed over to the concerned Project Coordinator along with the unopened Packets of Tender Documents for safe custody and for opening of the Packets on a subsequent date after due advice to the Tenderers.

8.3.29 Late or Delayed tenders shall be returned unopened to the tenderers and Tender Opening officers shall mention this fact in the Tender Opening Register and should be discussed in the briefing note.

8.3.30 On completion of work of opening of tenders the tender Opening Officers will hand over the tender documents along with EMD received and Cost of Tender Document if any furnished by any Bidder who has submitted the Bid in the form downloaded from RITES website, to the officer deputed by the Project Coordinator concerned. Both the opening officers and the deputed officer will

date and sign in the Tender Opening Register as token of proper Handing over / Taking over of the tender documents. Deputed Tender receiving officer will bring to the notice of the Tender Opening Officers any non-compliance of the above instructions observed by him while taking over the tender documents.

8.4 EVALUATION OF TENDERS

Following steps shall be required in evaluation of tenders:-

1. Preparation of Briefing Note on Technical Bids by Tender Briefing Committee and its scrutiny by Project Co-ordinator as per procedure explained in para 8.5.

2. Evaluation of Technical Bids as per procedure explained in para 8.6.

3. Verification of authenticity of credentials like documents on Annual Turnover / Profitability, Solvency Certificate, Work Experience Certificate etc submitted by the bidders whose Technical Bids are otherwise found acceptable. This is a parallel activity to be done simultaneously with the steps to be taken as per Sl. Nos. 4, 5 & 6 of this para. The project Coordinator concerned, however, should ensure that before submission of recommendations by the Tender Committee on financial bid to the Tender Accepting Authority, verification of authenticity of Credentials/documents of 'L-1' bidder is completed. The project Coordinator may make use of fax/email or depute an officer not below the rank of a Manager for verification of the credentials discreetly and expeditiously so that tenders are decided within their validity.

4. Opening of Financial Bids as per procedure explained in para 8.7.

5. Preparation of Briefing Note on Financial Bids by Tender Briefing Committee and its scrutiny by the Project Co-ordinator as per procedure explained in para 8.8.

6. Evaluation of Financial Bids as per procedure explained in para 8.9.

7. No Post-tender modification by any tenderer shall be taken into consideration. As regards suo-moto rebate / discount offered by any tenderer after opening of tenders, provision in Para 8.9.1 and 8.10.9 will be applicable.

8. In case any of the self attested documents turns out to be incorrect or fake, the EMD of the concerned tenderer will be forfeited and Business dealings banned after following the procedure laid down in Annexure VIII of Section I of RITES Standard Tender & Contract document. Such tender will not be treated as a valid tender for the purpose of determining the lowest tenderer.

8.5 PREPARATION AND SCRUTINY OF BRIEFING NOTE ON TECHNICAL BID (APPLICABLE FOR BOTH SINGLE PACKET AND TWO PACKET SYSTEMS)

8.5.1 A Briefing Committee consisting of two members - one from the concerned SBU (not below the rank of an AM, preferably Manager) and one from Finance (not below the rank of an AM) shall be nominated by the concerned SBU Head in consultation with Finance. The committee will take over the tender opening register and tenders received and go through the same. The Briefing Committee will prepare briefing note as detailed below and record the following certificate:

“We have personally gone through the Tender offers and we certify that the Briefing Note and the Comparative Statement correctly reflect the contents of the Tender Offers”.

The date upto which the Tenders are valid should be clearly marked on the forwarding Note to the Tender Committee so as to keep a watch on finalization of the tender within the validity date of tender.

8.5.2 The Briefing Note will include the following details:–

General

i) Tender No.

ii) Name of work _______________________________________

iii) Whether retender: If so, the reasons leading to retender:- ________________

iv) Reference to Administrative Approval by Client_____________

Sanction for Expenditure by Client________________________

v) Reference to Technical Sanction of Detailed Estimate by

Competent Authority of RITES (Ref. SOP) or Detailed Estimate sanctioned by the Client and adopted after checks by RITES

vi) Reference to approval of Tender Documents including NIT by Competent Authority of RITES (Ref. SOP) or Tender Document furnished by the Client and adopted after check by RITES.

vii) Date NIT published in the News papers (when applicable)

viii) Date NIT / uploaded in RITES website.

ix) Date Tender Document uploaded in RITES website (where applicable)

x) No. of tender papers sold

xi) No. of tenders, with breakup of those in hard copy supplied by RITES and those submitted in the form downloaded from website, received and Earnest Money Deposit envelopes and Envelopes with Cost of Tender Document (where applicable) opened.

xii) No. of tenders whose Earnest Money Deposit and / or cost of Tender Document (where tender has been submitted in form downloaded) not found in order with the names and addresses of Tenderers ______

xiii) No. of tenders whose Earnest Money Deposit and Cost of Tender Document where Tender has been submitted in form downloaded from RITES website found in order and addresses of tenderers and Tender No. allotted ______

xiv) No. of Delayed / Late Tenders received to be returned, unopened, with names and addresses of Tenderers _____

Salient Features of Tender

i) Brief Scope of Work ii) Estimated Cost iii) Type of Tender - Item Rate or Percentage Rate or Lump Sum iv) Stipulated Period of Completion

v) Names of News Papers and dates when NIT published vi) Date of Pre-Bid Conference vii) Date and Time When tenders opened viii) Date upto which tender offers are valid.

Salient details of offer by each tenderer (Those whose EMD and Cost of Tender Document of Bids submitted in form downloaded from RITES website) are prima facie in order)

i) Name of tenderer

ii) Number allotted to the tenderer

iii) Technical Bid

a) Earnest Money Deposit

– Form in which furnished

– Amount of Earnest Money

– Validity Period

– Whether Earnest Money Deposit acceptable as per Contract Conditions

b) i) Authority to Sign - Whether the person who has signed the Documents has the necessary Authority to Sign

ii) Integrity Pact : Whether the Integrity Pact annexed to Section I – NIT and Instructions to Tenderers, has been signed by authorized representative of Bidder and duly witnessed.

c) Qualification Information (Supporting Data / Calculations to be annexed)

Sl. No.

Criterion of Qualification

Minimum qualification required as per Tender Document

Qualification of tenderer as per details furnished

Reference (Vol. No. & page No. ) where qualification details have been furnished

d) Deficient documents /information in the Technical Bid.

8.5.3 The Briefing Note should be scrutinized for its completeness by the Project Coordinator before putting up the same to the nominated Tender Committee (in cases where he is not the Tender Committee Member).

8.6 EVALUATION OF TECHNICAL BIDS BY TENDER COMMITTEE

(APPLICABLE FOR BOTH SINGLE PACKET AND TWO PACKET SYSTEMS) 8.6.1 Tenders are to be evaluated by a Tender Committee consisting of three

members including one from Finance as stipulated in the relevant SOP item on ‘Serving as Members of the Tender Committee’. The members of the Tender Committee shall be nominated by the Competent Authority of RITES in terms of Powers indicated in SOP.

If any member of the Tender Committee as constituted has any personal interest in any of the tenderers participating in the Tender, he should bring this fact to the attention of the Competent Authority, who shall arrange to replace that member by another suitable person. The SBU Head may constitute Standing Tender Committee (with provision for alternate members) if considered feasible by him.

8.6.2 The Tender Committee may go through the briefing note and tender documents and evaluate the tender as under:

a) First check the Earnest Money Deposit of the Tenderers whose Technical Bids have been opened to confirm that the same are in order. If the Earnest Money Deposit is not in order, no further action need be taken for evaluating the Technical Bids of such Tenderers. Similar action should be taken with regard to Cost of Tender Document when the tender has been submitted in a form downloaded from RITES website.

b) The Tender Committee will review the “Authority to sign”, “Integrity Pact” and “Qualification Criteria” and other details furnished in the Technical Bid of those Tenderers whose Earnest Money Deposit has been confirmed to be in order. If any details are deficient or are not in order, the following procedure shall be adopted.

The deficient document / information need be called for only when there is inadequate competition. Normally a minimum of four qualified bidders can be considered as adequate competition. Where it is decided to call for the deficient document / information from any bidder, such request may be issued by a letter giving a reasonable period of 10 to 12 days for submission. In case no response is received from the Tenderer concerned, or the response received is incomplete, such tender may be recommended to be rejected as not meeting the Qualification Criteria.

The decision to obtain clarifications from the Tenderers concerned on the deficiencies noticed in the documents / information can be taken by the Convener of the Tender Committee after vetting of the Briefing Note by Finance.

Recommendation on satisfaction of qualification criteria shall however be from full Tender Committee.

8.6.3 In case any bidder in his declaration, furnishes details of (i) record of poor performance such as abandoning the works, not properly completing the contract, inordinate delay in completion, litigation history, financial failure etc., or (ii) banning of business by any Central /State Government, Department / Public Sector Undertaking or Enterprise of Central / State Government the Tender Committee may take action as indicated below, duly furnishing all relevant details to the Tender Accepting Authority. If the declaration is of record of poor performance as detailed in (i) above, the bid may be recommended to be rejected if minimum four qualified bidders are otherwise available. If, however, the number of otherwise qualified bidders available is less than four, full details should be called for by the Tender Committee from the bidder concerned and / or his past employer on the circumstances leading to such poor performance. The details should be

analysed by the Tender Committee to determine if the poor performance was due to failure of the bidder or due to circumstances beyond his control. If assessed as due to circumstances beyond the control of the bidder, the bid may be recommended to be considered by the Tender Accepting Authority. If the declaration is on banning of business as detailed in (ii) above, the Tender Committee may check if the ban is still current. If the ban is no longer current, the bid may be recommended to be considered. If the ban is current and is by the Ministry of Railways or by a PSU under the Ministry of Railways or the Client’s Ministry, the bid should be recommended to be rejected. If ban is still current but imposed by any other Central Government Department or Central PSU or State Government Department or State PSU or Corporation / Local Body, full details should be called for by the Tender Committee from the bidder concerned / Department, Government concerned. The details should be analyzed by the Tender Committee to determine if the ban was due to the failure of the bidder or circumstances beyond his control. Further action may be taken as indicated for cases of declaration on record of poor performance, in para above. Normally in cases of fraud, misappropriation, cheating etc., the bid may be recommended to be rejected.

8.6.4 Based on a review of the details furnished, the Tender Committee will put up to the Tender Accepting Authority their recommendation indicating which of the Technical Bids can be accepted, which Bids can be provisionally accepted subject to making up of deficient documents/confirmation of credentials from past clients/Banks and which of them are not acceptable.

Based on the decision of the Tender Accepting Authority, the Tenderers whose Technical Bids have not been found acceptable will be advised by the SBU Head about this fact and asked to take back the Earnest Money and the unopened Financial Bid (in the case of a Two Packet System).

Such intimation about rejection of their Technical Bids should be sent before opening of Price Bids from Tenderers whose Technical Bids have been found acceptable.

8.7 OPENING OF FINANCIAL BIDS

In Single Packet System, the Financial Bids are opened along with the Technical Bids. In the case of a Two Packet System, after decision on recommendations of Tender Committee on the Technical Bids, Financial Bids in respect of only those Tenderers whose Technical Bids are found to be acceptable or provisionally acceptable shall be opened on a date to be fixed and advised in writing to the Tenderers concerned. The Tenderers whose Bids have been provisionally accepted should be clearly advised that their prequalification is only provisional and will be subject to receipt of deficient documents/confirmation of credentials from past Clients/Bank.

It may be ensured that Tenderers whose technical bids have not been found acceptable in the 2 pocket system are intimated to that effect before opening of Financial Bids of Tenderers whose Technical Bids are found acceptable.

Whenever the Financial Bids are opened, the percentages above / below and the total Amounts quoted as well as the condition if any, given by Tenderers shall be read out as described in para 8.3.19

8.8 PREPARATION AND SCRUTINY OF BRIEFING NOTE AND COMPARATIVE NOTE FOR FINANCIAL BIDS (APPLICABLE FOR BOTH SINGLE PACKET AND TWO PACKET SYSTEMS)

8.8.1 Nominated Briefing Committee will take over the tender opening register and the tenders received and go through the same. The Briefing Committee will prepare briefing note as detailed below and record the following certificate:–

“We have personally gone through the tender offers and we certify that the Briefing Note and the Comparative Statement correctly reflect the contents of the tender offers”.

The date upto which the tenders are valid should be clearly marked on the forwarding note to the Tender Committee.

8.8.2 The Briefing Note, besides details mentioned earlier, shall include the following details:–

a) Discrepancies noticed in rates/amount quoted on BOQ Items:–

Item Rate Tender

l BOQ item numbers where rates in figures and words as well as the amount for the item are given by the tenderer but the unit rates in figures and words don’t agree with each other.

l BOQ item numbers where unit rates in figures and words have been given but the amount for that item not given.

l BOQ item numbers where rates in figures and words as well as the amount for the item are given by the tenderer but the amount does not correspond with the rate either in figures or in words.

l BOQ item number where unit rates in figures and words agree but the amount for that item has been given wrongly.

Percentage Rate Tender

l Percentages are quoted in figures and words along with the total tender amount by the tenderer but the percentages quoted in figures and words don’t agree with each other.

l Percentages are quoted in figures and words but the total tender amount is not quoted.

l Percentages are quoted in figures and words along with the total tender amount but the total tender amount does not agree with the percentages quoted either in figures or in words

l Percentages quoted in figures and words tally but the total tender amount has been given wrongly.

b) Conditions stipulated, if any.

c) Total Tender Amount

(To be made out from the details available in the Comparative Statement)

Total amount at unit rates of RITES for

all items

Tender amount quoted by the tenderer for all

items

% above / below RITES’ Total amount, as

quoted

Remarks (if any)

8.8.3 The Comparative Statement will be prepared based on the Financial Bids. The Performa for Comparative Statements for Item Rate Tenders and Percentage Rate Tenders are given respectively in Annexures 8.1A and 8.1B. In the case of discrepancies in rates, amount & percentage, the procedure to be followed will be as indicated in the Note below Annexure 8.1A and Annexure 8.1B. While making the Comparative Statement, the estimated effect of the Price Variation Clause (if any) during the period of implementation of the Contract, will not be taken into account.

8.8.4 Rates quoted by L-1

In item rate tender, the Comparative Chart made out by the Briefing Committee will show for each item the Unit rate worked out by RITES, the rate quoted by the tenderer L1 and the percentage above / below RITES’ rates.

In Percentage rate tender the comparative chart will show for each Schedule the percentages above / below on RITES Estimated Cost as quoted by the tenderer L1.

8.8.5 The Briefing Note should be scrutinized for its completeness by the Project Coordinator before putting up the same to the nominated Tender Committee in cases where he is not the Tender Committee member.

8.8.6 While forwarding Briefing Note to the Tender Committee, the Project Coordinator shall also enclose statement of market rates of all major items and peculiar situations/circumstances, if any, relating to the working conditions in the area where the work is to be executed, so as to facilitate preparation of Market Rate Cost/Justified Amount, by the Tender Committee.

8.9 EVALUATION OF FINANCIAL BIDS BY TENDER COMMITTEE (APPLICABLE FOR BOTH SINGLE PACKET AND TWO PACKET SYSTEMS)

8.9.1 The Tender Committee has to assess the reasonableness of the offers. Tenders with any condition shall normally be rejected. However tenders with conditional rebates / discounts may be considered, but without taking into account the conditional rebates / discounts for the purpose of evaluation of the bid price. Tender Committee should specifically draw the attention of Tender Accepting Authority to such conditional rebates/discounts and to the fact that the evaluated cost of the tenders is without considering such rebates/discounts. Tenders with unconditional rebates can be accepted. If any rebate / discount is offered suo-moto by any tenderer after the opening of tenders, the same may be considered if his tender is otherwise also the lowest. But in case the tender is due for rejection due to high rates, suo-moto discount should not be considered.

8.9.2.1 Total Amount quoted by valid L-1 tenderer

This should be compared with the estimated cost put to tender duly modified by variation in Cost Index in case where there is documentary proof in change of Cost Index between that adopted for framing the Estimate and that prevailing on the last date for opening of tender. There is no need for preparing justification statement in case the lowest tender is less than 110% of he Estimated Cost put to Tender duly modified by variation in Cost Index as detailed above. In case L1 offer is more than the above limit, the following paras will apply.

8.9.2.2 Reasonability of the rates of Tender received is to be seen and commented upon by the Tender Committee. While analyzing tenders, rates of tenders of similar nature of works accepted within about last 3 months may be ascertained. Similar works shall mean works similar in nature, quantum, specification and location in the near vicinity. If required, cost based on market rate analysis may be prepared on the basis of market rates of all major items and peculiar situations / circumstances, if any, relating to the working conditions in the area where the work is to be executed, as furnished by the Project Coordinator in terms of Para 8.8.6 above. The cost assessed as justified based on value of similar works or on market rate analysis as the case may be, should be compared with L1 offer and following action may be taken. On methodology for making out Market rate analysis / justified rate analysis Para 4.9 may be referred to.

i) When L-1 offer exceeds the justified cost / market rate analysis cost by

upto 5%, the variation can be ignored and L-1 offer can be recommended for acceptance.

ii) When L-1 offer exceeds the justified cost / market rate analysis cost by between 5% and 10%, L1 offer may be recommended for acceptance in cases of urgency / emergency and for recorded reasons. In such cases, detailed recommendations will be required to be given to the Tender Accepting Authority analyzing the implications of accepting L-1 offer with or without negotiation as against re-tendering.

iii) When L-1 offer exceeds the justified cost / market rate analysis cost by more than 10%, it should not normally be recommended for acceptance. In such cases recommendation to the Tender Accepting Authority should be for the Client to be advised on all the facts and the Client’s decision taken on whether re-tendering should be done or due to urgency / emergency requirements or for any other reasons, the bid of L 1 may be accepted as such or after negotiation to get the rate reduced.

iv) In case, on re-inviting open tenders for the 2nd or 3rd time, the L1 offer continues to remain higher than 10% of the cost of similar works accepted in recent past or the cost based on market rates, then detailed reasons for the same should be examined and all factors analysed, if required by discussions with bidders. Persistent high rates even during 2nd or 3rd call for open tenders may be a pointer to (a) comparison being made with a dissimilar work (b) market rates being incorrect due to non-consideration of transportation cost from source to site (c) site conditions being difficult

due to (i) inaccessibility (ii) non-availability of water & power (iii) water-logging (iv) no space for labour camp (v) encroachments on/near site (vi) law and order problems etc. A report covering the above aspects and suggesting remedial steps should be put up to the accepting authority for apprising the client.

v) When L1 offer is less than 90% of the justified cost / market rate analysis cost the Bid should be treated as unbalanced. The workability of the rates should be assessed and commented upon by the Tender Committee in its recommendation to the Tender Accepting Authority. For this purpose, the Tender Committee may advise L1 Bidder to produce detailed price analysis for any or all items of Bill of Quantities to demonstrate the inherent consistency of those prices with the construction methods and schedule proposed. This process of checking with L-1 bidder should be carried out expeditiously so as to complete it well within the bid validity period. If required, the bid validity period should be got extended. If an evaluation, the price analysis is not found to be satisfactory, the bidder should be asked to furnish Additional Performance Guarantee to the extent the total quoted cost is lower than 90% of justified cost / market rate analysis cost.

8.9.2.3 The Convener of the Tender Committee must ensure before submission of recommendations to the Tender Accepting Authority that verification of documents/credentials of L1 bidder is completed and suitable mention is made thereof in the recommendations of the Tender Committee.

8.9.2.4 All the members of the Tender Committee should furnish a certificate in the tender evaluation report that none of them has any personal interest in any of the Tenderers who have participated.

8.10 TENDER COMMITTEE’S RECOMMENDATIONS AND ACTION BY THE TENDER ACCEPTING AUTHORITY

8.10.1 Where Accepting Authority is Client, recommendation of Tender Committee may be put up direct to the Client.

8.10.2 The Market Rate Cost/Justification Statement to be prepared by Tender Committee should be as per accepted norms, current and realistic. Reasonability of the rates of tenders received is to be seen and commented upon by the Tender Committee. Market rate analysis is to be used as one of the means among other things for making recommendation by Tender Committee and is not binding.

8.10.3 The recommendations of the Tender Committee should be carefully considered and decision taken on acceptance or otherwise of the same. In case any clarifications are required from the Tender Committee the same shall be sought without delay.

8.10.4 In case, after receipt of tenders, it becomes necessary to forward the tenders to a higher authority for acceptance due to the tender offer of L-1 going beyond the power of original Tender Accepting Authority on account of higher quoted rates, while forwarding tenders to the higher authority, details like (a) validity period of the tender, (b) time already taken for scrutiny and (c) balance period available

should be prominently indicated to ensure that there is no delay in processing of tenders and decisions are taken well in time.

8.10.5 In case of tender where validity period has already expired, decision to accept the same should be taken only after validity period is got extended.

8.10.6 Where the Contract amount as decided to be accepted goes beyond the amount approved by the Client, Client’s prior acceptance is to be taken in light of the provisions in the Agreement between RITES and the Client.

8.10.7 When tender offer results in exceeding the amount technically sanctioned for the work by an amount greater than the power of the technical sanctioning authority, revised Technical Sanction is required to be issued by the next higher Competent Authority before acceptance of tender.

8.10.8 The Tender Accepting Authority, should normally accept the offer of L1, the tenderer who has satisfied the Qualification Criteria, (including verification of authenticity of its certificates/credentials) whose tender is unconditional and is in order in all respects and whose quoted amount is considered reasonable. If the quoted amount is considered unreasonably high, the Client should be consulted on whether, in view of urgency, the tender can still be accepted or retendering done.

8.10.9 The acceptance of tender should be unconditional. If however L1, whose offer is otherwise acceptable, has offered conditional rebates/discounts, they can be accepted, it they are not in violation of any provisions in the Contract Conditions and can be practically implemented. Such conditional rebates / discounts should not be taken into account, while evaluating the Tenders. The above provisions will apply equally well to any suo-moto offer of rebates / discounts by L-1 after opening of Tenders. No Letter of Acceptance can be treated as valid if it conveys acceptance subject to conditions.

8.11 PURCHASE PREFERENCE TO PUBLIC SECTOR ENTERPRISES 8.11.1 In consonance with the Government instructions contained in OM

No.DPE/13(1)2007-Fin. Dated 21.11.2007 of Department of Public Enterprises, Ministry of Heavy Industries & Public Enterprises, Government of India, purchase preference to the Public Sector Undertakings has been terminated w.e.f. 31.3.2008.

8.12 ACCEPTANCE OF SINGLE TENDER There are occasions when in response to call for open tenders, only single

tender is received. The Powers of Acceptance by RITES officials to be applied will be under item of Schedule of Powers for Open Tenders. In case of single tender received against a Limited Tender, fresh tenders should be invited unless the work is very urgent. Where the single response is proposed to be accepted, the authority to accept the recommendation of the Tender Committee will be as for a Single Tender prescribed in relevant item of SOP. In such cases, detailed reasoning for classifying the work as ‘Very Urgent’ should be recorded by the Tender Committee and the Tender Accepting Authority in terms of SOP should

specifically confirm its acceptance of such a recommendation due to urgency of work.

8.13 PROCEDURE FOR CONDUCTING NEGOTIATIONS

i) Normally there should be no post-tender negotiations. Negotiations should strictly be in certain exceptional situations like, for procurement of proprietary items, where there is suspicion of pooling/cartel formation with unreasonable rates etc.

ii) Negotiations, wherever held, should only be with L1 tenderer.

iii) Counter offer to L-1, in order to arrive at an acceptable price, shall amount to negotiations.

iv) Before resorting to negotiations, adequate care should be taken to scrutinize the rates received and convincing reasons recorded by Tender Committee and accepted by Accepting Authority to conduct negotiations to avoid in fructuous instances of negotiations.

v) There shall be no compromise on transparency, equity or fair treatment to all the participants in a tender.

vi) It should be ensured that tenders are invariably decided within their validity period including the time required to conduct negotiations, if any, with L-1 tenderer.

vii) In case L-1 backs out, there should be a re-tender.

8.14 COMMUNICATION OF ACCEPTANCE OF TENDER

8.14.1 The tender for works shall remain open for acceptance for a period of 90 days, or as stipulated in the Tender Document from the last date of submission of tenders, unless it is got extended with the consent of Tenderers.

8.14.2 After a decision is taken by the Tender Accepting Authority in favour of the successful tenderer, “Letter of Acceptance” in the Proforma at Annexure 8.2 should be sent to the Contractor through Registered Post / Ack. Due, with instructions to furnish the Performance Guarantee, within the period as indicated in schedule F of date of issue of LOA, in the form indicated in clause 1 of contract. A copy of the LOA (Letter of Acceptance) should also be endorsed to RITES officials concerned and the following other officers:

i) Labour Officer concerned

ii) Asstt. Labour Commissioner

8.14.3 The Tenderers whose tenders are rejected should also be sent written intimation about the rejection.

8.14.4 (i) In the Letter of Acceptance (Format at Annexure 8.2) reference should be given to all the Contractor’s letters received with the tender or thereafter and of RITES’ replies accepting or rejecting such requests. Copies of all the correspondence will form a part of the Contract.

(ii) The Letter of Acceptance will form a Binding Agreement between RITES (acting for and on behalf of the Employer as Agent/Power of Attorney

Holder) and the Contractor, till formal Agreement is executed between the two parties.

(iii) The formal Agreement on Non Judicial Stamp Papers of appropriate value shall be executed between RITES (acting for and on behalf of the Employer as Agent/Power of Attorney Holder) and the Contractor within 28 days from the date of issue of LOA. The Agreement will be in the form at Annexure 8.3 for which the Contractor is to supply the Stamp Papers. As mentioned in the LOA, no payment to the Contractor for works can be effected till the formal Agreement is executed.

iv) Copies of the Agreement should be made out as bound volumes with each page numbered and bearing the dated initials with seal of the authorized signatory of both RITES and the Contractor.

8.14.5 Letter of Acceptance and Contract Agreement should be got vetted by Finance before issue. In the copy of these documents to be endorsed to Finance section concerned, it should be clearly mentioned that they are based on approval of the tender by the Competent Authority of RITES.

8.14.6 No Letter of Acceptance should normally be issued to the Contractor till the entire site of work is available without any hindrances and encumbrances, Local Body’s approval available for use of land for the purpose proposed by the Client and approval of plans from the Local Body. In case there are delays or problems in getting a part of site and the work is to be started on Client’s request, the Client should be made fully responsible for the resultant liability including possible Contractor’s claims on this account. The Client should be specifically advised of this.

8.14.7 No Letter of Acceptance should be issued till sufficient funds are deposited by the Client. The Works Contract should make a provision that the payment to the Contractor will be made only on receipt of funds from the Employer (Client) for and on whose behalf RITES are entering into the Contract as an Agent / Power of Attorney Holder. This aspect has been taken care of in the Standard Format of RITES Tender Documents.

8.14.8 Copies of Letter of Acceptance and Contract Agreement should be sent to the Client being the Employer. In the Letter of Acceptance addressed to the Contractor, endorsement of copy to the Employer should be prominently displayed to draw the attention of the Contractor to the fact that RITES’ action is for and on behalf of the Employer as an Agent/Power of Attorney Holder.

8.15 TIME LIMIT FOR FINALIZATION OF TENDERS

Top priority should be given to decide the award of work on receipt of tenders.

Time limits laid down for various stages involved in finalization of tenders have been indicated in Annexure 8.4 and should be adhered to since the validity period of tenders is normally only 90 days from the last date of submission of tender.

8.16 REINVITATION OF TENDERS

If the Lowest Tenderer backs out, there should be retendering in a transparent and fair manner. In such a situation, the NIT approving authority may advise to call for Limited Tenders if so justified in the interest of work. While retendering for the work, tender will not be issued to the Contractor who has backed out.

SECTION 9

EARNEST MONEY

9.1 NECESSITY FOR EARNEST MONEY

Earnest Money is paid by each tenderer to enable RITES to ensure that a tenderer does not back out of his tender before its acceptence or refuses to execute the work after it has been awarded to him.

9.2 RATES OF EARNEST MONEY

The amount of the Earnest Money which a contractor should deposit with the tender will be @ 1% of the estimated cost put to tender, subject to a maximum of Rs. Fifty lakhs.

9.3 MODE OF DEPOSIT

9.3.1 The Earnest Money may be accepted only in the forms:

i) Banker’s Cheque of a Scheduled Bank

ii) Demand Draft/Pay Order of a Scheduled Bank

It should be ensured that in the Tender Document, a specific reference is made to the effect that Banker’s cheque / Demand Draft / Pay Order will not be acceptable from Banks who have been blacklisted or with whom business dealings have been banned / suspended by RITES. The details of such Banks should also be clearly mentioned in the Tender Document.

9.3.2 Any tender not accompanied by Earnest Money of stipulated amount in an acceptable form shall be rejected outright.

9.3.3 EMD submitted by the tenderers should immediately after the opening of tender, be sent to Accounts department for encashment.

9.4 REFUND OF EARNEST MONEY

9.4.1 (i) The Earnest Money of the tenderer whose Technical Bid is found not acceptable, will be returned as soon as scrutiny of Technical Bids has been completed.

(ii) After evaluation of the Financial Bids, the Earnest Money of unsuccessful tenderers whose Technical Bids were found in order will be returned within 28 days of the end of the Tender Validity Period.

(iii) The Earnest Money of the successful tenderer will be taken as part of the Security Deposit as stipulated in Clause 1A of Contract.

9.5 FORFEITURE OF EARNEST MONEY

9.5.1 If any tenderer withdraws his tender before expiry of the validity period or issue of Letter of Acceptance whichever is earlier, or makes any modifications in the

terms and conditions of the tender which are not acceptable to RITES or furnishes any statement / information / document found to be incorrect or false, then RITES shall, without prejudice to any other right or remedy, be at liberty to forfeit entire Earnest Money absolutely.

9.5.2 In case the successful tenderer / contractor fails to furnish the prescribed Performance Guarantee within the prescribed period or fails to commence the work specified in the tender documents by the date as mentioned in Letter of Acceptance, or in case any Statement / information / document furnished by the Tenderer is found to be incorrect or false, RITES shall, without prejudice to any other right or remedy, be at liberty to forfeit whole of the Earnest Money absolutely.

9.5.3 In case of forfeiture of E.M. as prescribed in 9.5.1 and 9.5.2 above, the tenderer shall not be allowed to participate in the retendering process of the work.

9.5.4 In cases where work order / supply order is awarded on the basis of quotations and a condition for depositing Earnest Money is laid down in the notice inviting quotations, the following condition shall be stipulated in the NIQ.

“The quotation for the work / supply shall remain open for a period of _____ days from the date of opening of quotations. RITES shall, without prejudice to any other right or remedy, be at liberty to forfeit entire Earnest Money if any quotationer withdraws his quotation before that date or makes any modification in the terms and conditions of the quotation which are not acceptable to RITES, or furnishes any statements/ information / document found on check to be incorrect or false and to forfeit whole of the Earnest Money if the quotationer, whose quotation is accepted, fails to commence the work / supply specified in the NIQ (along with changes in scope, if any) in prescribed time or abandons the work / supply before its completion”.

9.5.5 In composite contract for dismantling of existing structure and construction of new structures, the Contractor shall be required to deposit caution money equivalent to 50% of the credit likely to be obtained from dismantled materials before the site is handed over to the Contractor. This Caution money shall be refunded after the cost of dismantled material is finally recovered and the site is cleared by the Contractor.

SECTION 10

PERFORMANCE GUARANTEE AND SECURITY DEPOSIT

10.1 PERFORMANCE GUARANTEE

As stipulated in Clause 1 of Contract, Performance Guarantee is to be obtained from the successful tenderer at 5% of the tendered amount. This is meant to ensure proper performance of the Contract and is to be deposited by the Contractor within the period from date of issue of Letter of Acceptance as indicated in Schedule F. The Performance Guarantee shall be in the form of F.D. Receipts or Guarantee Bond / B.G. of any Scheduled Bank in accordance with the format stipulated in Clause 1 of the Contract. In case a F.D Receipt of any Bank is furnished and the Bank is unable to make payments, the loss caused thereby shall fall on the Contractor who shall make good the deficit by additional Security.

10.1A Recovery of additional Performance Guarantee

The successful Tenderer is also to deposit Additional Performance Guarantee in case of unbalanced bid as explained in para 8.9.2.2. This will also be in the same form as normal Performance Guarantee and deposited within the same time limit.

10.1B It should be ensured that in the Tender Document a specific reference is made to the effect that Bank Guarantee or F.D Receipts will not be acceptable from Banks who have been blacklisted by RITES or with whom business dealings have been banned / suspended by RITES. The details of such Banks should also be clearly mentioned in the Tender Document.

10.2 VALIDITY OF PERFORMANCE GUARANTEE

They shall be valid initially up to the stipulated date of completion plus 60 days beyond that. In case the completion period gets extended, the validity of the Performance Guarantee shall also be extended accordingly.

10.3 CLAIM UNDER PERFORMANCE GUARANTEE

The circumstances under which the Engineer in charge can make claim against the Performance Guarantees have been given in Para (iv) of Clause 1 of Contract. In case of such claims, in the event of available Performance Guarantee getting reduced by reason of such deduction or sale, the Contractor shall within 10 days make good the deficiency to be valid for the same period as mentioned in Para 10.2.

10.4 REFUND OF PERFORMANCE GUARANTEE

Soon after recording of the Provisional Certificate of Physical Completion for the works under Clause 8 of Contract by the Competent Authority, the Guarantee will be returned to the Contractor without interest.

Additional Performance Guarantee can be refunded earlier if the unbalanced items for which such additional Guarantee had been demanded, are completed to the satisfaction of the Engineer-in-charge.

10.5 RECOVERY OF SECURITY DEPOSIT

As stipulated in Clause 1A of Contract, the Security Deposit shall be deducted at 5% of the gross amount of each Running bill till the sum along with the sum already deposited as Earnest Money will amount to Security Deposit of 5% of the Tendered Value of work. Earnest Money shall be adjusted first in the Security Deposit and further recovery of Security Deposit shall commence only when the upto date amount of SD to be recovered starts exceeding the available Earnest Money. Such deductions will be made and held by RITES by way of Security Deposit, unless the Contractor has deposited the amount of Security at the rate mentioned above in cash or FD Receipts. In case of Bank FDs, if the Bank is unable to make payment, the loss caused shall fall on the Contractor who forthwith on demand shall furnish additional security to make good the deficit. Security Deposit shall not be accepted in the form of Bank Guarantee.

10.6 CLAIMS UNDER SECURITY DEPOSIT

The items for which RITES can claim on the Security Deposit have been given in Clause 1A of Contract. In the event of Security Deposit being reduced on account of the claim, the Contractor shall, within 10 days, make good the deficiency in cash or FD receipts endorsed in favour of Engineer in charge.

10.7 VALIDITY PERIOD OF SECURITY DEPOSIT AND REFUND

10.7.1 On completion of the whole work and issue of Final Completion Certificate, the Security Deposit may be released against B.G. issued by a Scheduled Bank. The Security Deposit will be refunded in terms of Clause 17 of Contract which shall be after the expiry of 12 months or the period as specified in the Works Contract, of Maintenance period counted from the date of issue of Completion Certificate (Final or otherwise) under Clause 8 of Contract or after the Final Bill has been prepared and passed, whichever is later. Release of Security Deposit will also be subject to Labour Officer’s clearance as per Clause 45 of Contract and State Govt. clearance as per Clause 45A of Contract.

10.7.2 Refund of security Deposit in cases of delay in final bill

1) Where there is a delay in payment of final bill, the Engineer-in-charge shall make an assessment of the likely recoveries against the contractor, and order release of as much security deposit as possible unless he has reasons to

withhold the release of full security deposit to the contractor. These reasons should be recorded by him in writing.

2) The Engineer in charge shall satisfy himself that the following formalities are completed by all concerned before exercising his discretionary power for part payment of security deposits.

Formalities to be completed by RITES Officers

a) Completion of prescribed test checks of measurements by the Controlling Site Engineer / Project Coordinator.

b) Sanction of extra / substituted items by the competent authority.

c) Decision on levy of compensation, etc.

ii) Formalities to be completed by Contractor

a) Acceptance of final measurement recorded by RITES Officers

b) Applying for extension of time as and when required immediately.

c) Rectification of defects pointed out by RITES Officers during Maintenance Period.

d) Completion of work in all respects, including clearance of site etc.

e) return of surplus materials issued by the Employer immediately on completion of work or as and when it comes to light.

3) There should be no need for the Contractor to apply for refund of the Security Deposit. The case for refund shall be processed by the Project Coordinator as soon as refund is due.

10.8 MISCELLANEOUS PROVISIONS

10.8.1 Deposits of Contractors including percentage deductions from Contractor’s bills may be converted, at his cost, into one or more of the forms of interest bearing securities provided

i) that the contractor has expressly desired this in writing and

ii) that the acceptance of the new form of security is permissible under the rules as well as under the terms of the agreement.

10.8.2 Repayment / Retransfer of Security Deposit

Without the special orders of competent authority, no Security Deposit / Performance Guarantee should be repaid or re transferred to the depositor, or otherwise disposed off, except in accordance with the terms of the agreement.

Note : The depositor’s acknowledgement should be obtained in all cases of security returned. When an interest bearing security is returned or re-transferred, the acknowledgement should set forth the full particulars of the security.

10.8.3 FDRs as Security Deposit

a) Since Fixed Deposit Receipts are not Government securities there is no objection to their being accepted even if the period for the completion of the work is less than one year. The Fixed Deposit Receipts should be accepted as security when these cover the stipulated period including extended period, if the contract period is extended, plus the Maintenance period mentioned in the contract.

b) Fixed Deposit Receipt tendered by the State Bank of India and Scheduled Banks is acceptable as security. There is, therefore, no objection to the investment by RITES of the amount of security, deducted from the running bills of the contractors in Fixed Deposit Receipts of the State Bank of India and Scheduled Banks at the request of the Contractors.

c) It may, however be seen that the Fixed Deposits Receipt is made out in the name of RITES, though Interest accruing at the time of conversion into BG in terms of Para 10.7 above will be refunded to the Contractor.

10.8.4 Lump sum Deposits, Recoveries and Release

Once the recoveries become due from the Contractor, the same should be effected from the money due to the Contractor either from the same work or from any other work or from the Performance Guarantee / Security Deposit. Action to recover the overpaid amount should not be kept pending or be held in abeyance on account of the case being before the arbitrator. Action in terms of the award can be taken after the award is received and accepted by the competent authority. The recovery of overpaid amounts should be effected as early as possible and the recovery should not be held in abeyance during the pendency of arbitration proceeding.

10.8.5 Time Limit on Claims for Refund of Security Deposit

The claim for refund of security deposit is governed by the Limitation Act. The period of limitation is 3 years commencing from the date the right to due accrues. In the case of Security Deposit paid along with the individual contract, the right to due would accrue under Clause 17 after the expiry of maintenance period or payment of final bill whichever is later.

10.9 REFUND OF SECURITY DEPOSIT - GUARANTEE ON SPECIALISED ITEMS OF WORK

The specialised items of work such as anti-termite treatment, waterproofing work, providing kiln seasoned and chemically treated wooden shutters etc., shall be entrusted to specialised firms or registered contractors and the Contractors should be asked to give a specific guarantee that they shall be responsible for removal of any defect cropping up in such works within the guarantee period. The typical form of the guarantee to be executed by the contractors is given vide Annexures 10.1 and 10.2. The Security Deposit should not be refunded till the Guarantee is executed by the Contractor for Specialised Works. The SBU office shall, maintain a register in which all such specialised works carried out in the SBU jurisdiction shall be entered and which shall be reviewed by the SBU Head.

The Register will contain the following heads:-

Name of the work:

Date of completion:

Specifications in brief:

Rate paid:

Name of the firm / or registered contractors:

History of all defects with date when noticed during the guarantee period, till handing over the completed works to the client along with the Guarantee.

The history will help as a ready reference about the efficiency and the quality of the work done by the firm.

10.10 SBU’s RESPONSIBILITY FOR PROMPT REFUND OF SECURITY DEPOSIT AND PERFORMANCE GUARANTEE

In order to avoid delay in the refund of Security Deposit and Performance Guarantee to the Contractors, the Accounts section of SBU Office, should put up to the SBU Head, every month a list of all the cases where the Security Deposit / Performance Guarantee becomes due for refund so that the requisite certificate is immediately obtained by the SBU Head from the Engineer in charge concerned and the Security Deposit or Performance Guarantee refunded without waiting for any application from the Contractor.

SECTION 11

AGREEMENTS / CONTRACTS - ESSENTIAL FEATURES

11.1 GENERAL FEATURES

11.1.1 Managing Director / RITES has full powers to accept tenders and is authorised to frame rules relating to the calling for, acceptance of the tenders and the general procedures connected with the contracts. There are, however, certain general principles and guidelines laid down for acceptance of tenders which are required to be observed by subordinate authorities empowered to enter into contract as per Schedule of Powers issued from time to time.

11.1.2 No contract shall be made by a subordinate authority which has not been authorised to do so under Schedule of Powers. The Powers for signing of Contracts by officials of RITES have been given in SOP. The official executing the Agreement on behalf of RITES is designated as the Engineer in charge.

11.1.3 Terms of contract must be precise and definite and there must be no room for ambiguity or misconstruction therein. In RITES, Standard Contract Forms have been made out to avoid this contingency. The alternative conditions, if any, given in the standard forms which are not applicable to a particular contract should be invariably scored out. In case where Standard Forms of Contracts are not convenient to be used, legal and financial advice should be taken in drafting the contracts before they are finally entered into. The Standard Contract Forms are generally based on CPWD Forms and are to be used in all cases of Works Contracts which are entered into by RITES as Agent for and on behalf of Client or under Power of Attorney executed by the Client in favour of RITES. The only exceptions will be where the Client specifically requests for adoption of any other type of Contract Forms such as those of Indian Railways, World Bank, MES etc.

11.1.4 No relaxation of specifications in a contract, or relaxation of the terms of an agreement entered into by RITES should be made without proper examination of the financial and legal effects involved in consequence of such relaxation. Due care of the interest of the Client should be taken before agreeing to any relaxation in agreement or contract. Save in exceptional circumstances, no work of any kind should be commenced without prior execution of contract documents. Even in cases where a formal written agreement is not made, no order for supplies etc. should be placed without at least a written agreement as to the price and other terms of agreement.

11.1.5 The terms of the contract once entered into should not be materially varied without the previous consent of the authority competent to accept tender / offer for the contract as so varied in terms of SOP. No such variation involving payment to contractors by way of compensation or otherwise outside the strict terms of the contract or in excess of the contract rates, shall be authorised without the prior approval of the Client as provided for in the Agreement between RITES and the Client. A variation of the terms of contract which has been

approved by the Authority Competent to accept the tender shall be made by writing “executed for and on behalf of RITES” by an Officer who is authorised to execute the original contract under SOP.

11.1.6 No contract involving an uncertain or indefinite liability or any condition of an unusual character should be entered into without the previous consent of the Managing Director / RITES.

11.2 POWER TO SIGN AGREEMENTS

11.2.1 Competent Authority of RITES (with powers delegated under SOP) shall sign agreements for execution of works “for and on behalf of RITES” after the acceptance of tenders by the Competent Authority under SOP.

11.2.2 There should be no delay in executing the agreement as soon as tenders have been accepted. The Authority executing the Agreement should see that conditions not existing in the approved tenders are not in any case, allowed to be embodied in the agreements. A record of the agreements drawn up should be kept in the Office of SBU.

11.3 RECORDING OF DATE OF ACCEPTANCE OF TENDER IN THE AGREEMENT

11.3.1 The date of acceptance of tender as shown in the Letter of Acceptance of tender and award of work issued to the Contractor, which forms part of the Agreement, should be clearly mentioned in the formal Agreement since Letter of Acceptance binds the parties to the Contract even before execution of the Agreement.

11.3.2 Before signing any Agreement, it must be ensured that no conditions are inserted which were inadvertently omitted in the tender papers. Similarly, no errors, which might have inadvertently crept in NIT, should be corrected. In such cases reference should be made to the Contractor in writing and his acceptance taken in writing. These letters can be included in LOA by suitable reference to them.

11.4 SUPPLY OF COPIES OF CONTRACTS TO CONTRACTORS

Two sets of contract documents should be prepared and signed by both the parties on each page. One of the sets should be stamped ”Original” and the other “Duplicate”. The duplicate copy should be supplied to the contractor free of cost. For any additional copies required by the contractor the following prices shall be charged for each copy:-

i) Works costing upto Rs. One Lakh Rs. 500/-

ii) Works costing between Rs.One lakh and Rs.1000/-

Rs. Fifty Lakhs

iii) Works costing more than Rs. Fifty Lakhs and Rs.2000/-

upto Rs.Two Crores

iv) Works costing above Rs. Two Crores Rs.5000/-

The additional copies should be certified as True Copy.

11.5 CERTIFICATION AND CUSTODY OF AGREEMENTS

11.5.1 The agreements should be properly checked and compared in the office of the Engineer in Charge or in the Office of SBU concerned, with the Tender Document as approved by the Competent Authority. The Accounts Section will be held responsible for any mistake which is found subsequently after the agreement has been formally signed by the Engineer in Charge. Also, the Engineer-in-charge should ensure that before copies of the accepted agreements are forwarded to the authorities concerned, they are complete in all respects.

11.5.2 The original contract documents should be kept in the personal custody of the Engineer in Charge or the SBU Head till disposal as provided for in Section 27.

11.5.3 No payment for the work done should be made to the Contractor till the Contract Agreement has been signed by the Contractor and the Performance Guarantee has been received.

11.6 CONTENTS OF AGREEMENTS

Adequate care should be taken to ensure that the agreement to be entered into between the Contractor and the Engineer in Charge for and on behalf of RITES is complete in all respects. A complete Agreement will include all items indicated in the Form at Annexure 8.3. Special care is required to be taken to see that all corrections, additions, alterations, or slips attached to the agreements are duly signed both by the Contractor and the Engineer in Charge.

11.7 SAFE CUSTODY OF CONTRACT AGREEMENT AND RELATED DOCUMENTS

Originals of all documents forming part of the Contract Agreement and all supporting details / calculations / data should be kept safely in the office of SBU as they may be required to defend RITES interests in case of Arbitration / Court case in future. The norms for disposal of old records have been given in Annexure 19.5. If there is any Arbitration or Court Case, the records will have to be maintained for a period longer than that stipulated in Annexure 19.5, as indicated in Note 1 of that Annexure.

SECTION 12

GENERAL GUIDANCE FOR OPERATION OF

CONTRACT CLAUSES

(Note : Clauses referred to in this Section are “Clauses of Contract” forming part of “Technical Bid” under Section 8 of GCC of “RITES Standard Tender Document” based on CPWD Practice) .

12.1 CLAUSE 2

12.1.1 This Clause refers to recovery of compensation from the contractor for delays and defaults on his part. This clause can be divided mainly into three parts viz.

a) Observation of time allowed for completion of the work

b) Payment of compensation by contractor for non-commencement, not finishing in time and slow progress during execution.

c) The decision of the Tender Accepting Authority (as stipulated in Schedule F) being final on the compensation payable by the contractor.

12.1.2 As explained in Section 13 relating to Extension of time and compensation for delay, time allowed for completion of the work is essence of the contract on the part of the contractor. The date for commencement of the work starts from the date specified in the Letter of Acceptance. For slow performance or delay in the completion of the work, compensation, subject to a maximum of 10% of the tendered value, is recoverable.

12.1.3 The compensation for slow progress or non completion of work in stipulated time, at the rates specified therein, is an “agreed compensation” under clause 2, which the contractor has to pay in case of default. Therefore, there is no choice for the Engineer in Charge who has signed the Agreement but to recover the same at the rates mentioned in clause 2 of the contract, if the progress of the work is slow or the work is not completed in stipulated time. In case the contractor feels aggrieved, he may appeal to the Engineer-in-Charge against such recovery, who may refer the case to the Tender Accepting Authority who may uphold the recovery at the original rates or at reduced rates or completely waive off the same depending upon the merits of each case. In such cases the decision of the Tender accepting Authority communicated through the Engineer-in-charge shall be final and out of purview of the Arbitration Clause.

12.1.4 In case the Contractor does not achieve a particular milestone as stipulated under clause 5 of the agreement or as re-scheduled, the amount shown against that milestone shall be withheld automatically and without notice to the contractor. However, if the contractor catches up with the progress of the work on the subsequent milestone, the withheld amount shall be released without any interest. In case the contractor fails to make up the delay in the subsequent milestones, the amount mentioned against each milestone missed shall also be withheld, and may be adjusted against the compensation that may be levied at the final grant of extension of time. Thus the compensation levied against failure to achieve one or more milestones will, on completion of work, be fully refunded if extension of time is granted without penalty or adjusted against the Liquidated damages leviable in case extension of time is granted with penalty. No interest is payable on any withheld amount.

12.1.5 The Engineer in Charge should identify delay in the execution of the work at the appropriate stage and issue registered letter to the contractor under clause 2 of the contract indicating non-fulfillment of the progress of the work on proportionate time lapse basis mentioned in clause 5 of the contract.

12.1.6 The Engineer in Charge should also give a registered notice to the contractor, so as to reach him before expiry of the contract period, of his intention to recover the amount of compensation. The notice should clearly mention the date on which the stipulated time is going to expire and that the contractor should complete the work on time otherwise he shall make himself liable to recovery of compensation under clause 2 of the contract. The above communication should be conveyed to the Contractor through Site Order Book also.

12.1.7 In case of tender accepted by an officer of higher status who has the powers of granting extension of time, (Refer SOP) the Engineer in Charge should, from time to time, apprise him of the facts about slow progress of the work or its likely non completion on time. The decision on levy of compensation and recovery of compensation should be effected after internal decision on extension of time has been obtained, by Engineer-in-Charge from such authority.

12.1.8 The recovery of compensation should be effected after decision on extension of time has been obtained. Reply submitted by the Contractor, if any, on the notice issued to him should be taken into consideration while deciding on the compensation.

12.1.9 For Proforrma for intimating compensation under Clause 2, Para 13.9 of Section 13 may be referred to.

12.2 CLAUSE 3

12.2.1 This clause deals with determination of contract and forfeiture of Security Deposit etc. This clause is of vital importance. According to the clause when the contractor has rendered himself liable to action under relevant clause, the Engineer in Charge on behalf of RITES shall have powers to determine the contract. Termination Notice given in writing by the Engineer-in-charge under his signature shall be considered evidence for the enforcement of this clause. Upon such determination, the Earnest Money Deposit, Security Deposit already recovered and Performance Guarantee and Additional Performance Guarantee (if applicable) shall be liable to be forfeited and shall be absolutely at the disposal of RITES. The contractor, whose contract is determined as above, shall not be allowed to participate in the tendering process for the balance work. The provision of clause 3 can be applied even after recovery of compensation under clause 2, as the two clauses are independently enforceable to the full extent.

12.2.2 i) Model forms of letters to be issued by the Engineer in Charge for and on behalf of the RITES while serving “Show Cause Notice” as well as “Notice on final action” to the contractor under clause 3 of the Contract have been made out. Copies of these model forms are at Annexures 12.1 to 12.5. As mentioned in Para 12.2.1, action under Clause 2 can be taken in addition to the above action under Clause 3. Para 13.9 may be referred to in this connection.

ii) While making use of these forms, the following points should be kept in view:–

a) Alternatives wherever not applicable should be deleted and suitable additions made wherever considered necessary.

b) While determining the contract under any of the sub clauses (i) to (xi) of clause 3 for causes other than the causes as mentioned in the standard form for “Show Cause Notice”, suitable modifications may be made, where necessary according to the requirements of the case.

c) Final notice under clause 3 of the contract may, thereafter be drafted and got approved by the Competent Authority that accepted the tender. This acceptance is with reference to financial limit as mentioned under the relevant Item of SOP.

12.2.3 When the Work is in an advance stage, decision on termination of Contract should be taken after careful consideration of the alternatives for completion of the balance portion of work. A sincere attempt should be made to discuss the progress with the Contractor to ascertain his problems and see what can be done to sort out the problem within the parameters of the contract.

12.3 CLAUSE 5 12.3.1 Under clause 2, time is deemed to be of essence of the contract on the part of

the contractor. It is therefore necessary for a contractor to complete the job within the stipulated period. If the contractor commits default in commencing execution of work within the stipulated date, RITES shall, without prejudice to any other right or remedy available in law, be at liberty to forfeit the Earnest Money and Performance Guarantee absolutely. As soon as possible after the Contract is concluded, the contractor shall submit a Time and Progress Chart for each milestone and get it approved from the Engineer-in-Charge. The Chart shall be prepared in direct relation to the time stated in the contract documents for completion of the items of work.

12.3.2 The contractor shall, in all cases in which time allowed for any work exceeds one month, (save for special jobs for which a separate programme has been agreed upon) complete the work as per milestones given in Schedule ‘F’. If however, he cannot complete the work against any of the milestone (s) due to having been unavoidably hindered in execution thereof, or on any other ground he can apply for rescheduling of the milestones (s) and extension of time. The detailed procedure of granting extension of time under this clause has been dealt under Section 13 “Extension of Time”. Extension of Time is also justified to the contractor for additional work for which quantum is required to be worked out as provided in clause 12 of the contract. The Engineer in Charge shall give a fair and reasonable extension of time and reschedule the milestones for completion of the work. Rescheduling the milestones will include changing the number of milestones also. The opinion of the Engineer in Charge as to whether the grounds shown for extension of time are or are not reasonable is final. His opinion as to quantum of period of extension granted by him is not however final and is arbitral.

12.3.3 The period during which the contract remains valid is a matter of agreement and if the period originally set for the completion of the work comes to an end, nothing

short of agreement of the parties can extend the subsistence and validity of the contract. When the period fixed for the completion of the contract is about to expire, the question of extension of the contract may be considered at the instance of the contractor or RITES or of both. The extension, in order to be binding, will have to be by agreement of both parties - express or implied. It therefore, follows that if the extension of time is granted by the Engineer in Charge suo-moto and such extension of time is accepted by the contractor either expressly or implied by his action, before and subsequent to the date of completion, the extension of time granted by Engineer in Charge is valid. It is, therefore, necessary that the Engineer in Charge grants extension of time even when the contractor does not apply for extension of time in order to keep the contract alive. If the contractor refuses to act upon the extension granted by the Engineer in Charge it will attract the provisions of clauses 2 and 3 of the contract.

12.3.4 The compensation for delayed performance, on account of which extension of time is granted by the Engineer in Charge, could be leviable under clause 2 would be a distinct matter. The decision to levy compensation under clause 2 would depend on:-

i) Prior notice as contemplated by Section 55 of the Indian Contract Act, 1872.

ii) Fault / delay / hindrance being attributable to the contractor and

iii) Proof of the loss occasioned thereby (in case it is challenged by the contractor before the Arbitrator)

The contractor in his application for extension, in addition to items like heavy rains, law and order problems etc which are not within the control of Contractor or RITES, generally points out various delays and the lapses on the part of RITES. Engineer in Charge while recommending or granting extension of time generally accepts these reasons for delay to be correct. The contractors may claim damages or compensation in an arbitration for prolongation of work due to defaults or lapses on the part of RITES When such cases come before the arbitrator the action of the Engineer in Charge in accepting the reasons for extension of time may assist the evidence for the claims of the contractors for damages etc.

12.3.5 Though there may be delays and lapses on the part of RITES, at the same time there are also delays and lapses on the part of the contractor. For such delays during the stipulated or extended period of completion, the contractor is responsible and these are also to be taken into account by the Engineer in Charge while recommending or granting extension. To safeguard RITES interest, these lapses on the part of the contractor should invariably be clearly mentioned by the Engineer in Charge while granting / recommending extension of time. In granting extension of time a balanced view should be taken of the delays on the part of the contractor, vis-à-vis delays of RITES. The mention of the delays on the part of the contractor along with that of RITES would ultimately help RITES in properly defending its position against the claims of the Contractor for damages.

12.4 CLAUSE 7

The circumstances under which intermediate payments can be made to the contractor have been explained in this Clause. The Engineer in Charge should fix a date by which contractor should submit the bill each month or any other

period as decided by him. 75% of the bill amount may be paid within 3/5 working days (depending upon whether the work is in SBU HQ or outside) as indicated in the Clause, after submission of the bill by the contractor to the Engineer in Charge through the Site Engineer with all required details. Balance amount of bill may be paid within 15 working days of presentation of bills. The payment to the contractor shall be made normally only on submission of the bill by him. While every effort should be made to make the payment within the time laid down, the Contractor will not be entitled to any interest due to delays in payment as laid down in this Clause. In cases where the Contractor fails to submit the Bills, the Engineer-in-charge can make out the Bill and make payment.

On the receipt of written request from the Contractor, and on the basis of a certificate from the Engineer, interim advance payment without detailed measurements for work done may be made @ 75% of the assessed value. The advance payment so allowed shall be adjusted in the subsequent running bill by taking detailed measurements there of. If at any stage, it is found that the amount of interim advance payment claimed by the contractor was excessive, this facility of interim advance payment should be withdrawn.

Pending consideration of Extension of time by the Competent Authority of RITES, Running Account Bills may be continued to be paid without prejudice to the right of the Employer to take action for delays in completion of the work, under the terms of the Contract.

12.5 CLAUSE 8

12.5.1 According to this clause a completion certificate is to be given by the Engineer in Charge to a contractor on completion by him of a work. No final bill will be accepted from a contractor unless such a bill is supported by a completion certificate. Further, the date of the completion certificate will determine the date upto which a contractor can be held responsible for making good damages under relevant clauses of the agreement. It has been observed that generally no certificate is given and only the date of completion is noted in the measurement book. Since this practice is not in conformity with the provision of this clause, a completion certificate must be recorded in the manner given in Section 22 of these Guidelines. If, on inspection of work by the Engineer-in-Charge after receiving intimation from the contractor, the work is not found satisfactorily complete, the contractor should be intimated of the defects etc in writing. Provisional certificate of physical completion of work, if issued, should clearly bring out the defects to be rectified and items proposed to be paid at reduced rates.

12.5.2 The date of completion of work is the date on which it is finished and not the date on which the final measurements are recorded by the Engineer in Charge or his subordinates. It will therefore, be necessary to note the date of its actual completion both in the bill of the contractor as well as in the Measurement Book in which the last measurements are recorded.

12.5.3 If the contractor fails to remove the scaffolding, surplus material and rubbish etc. and does not clean up the dirt from the wood work, doors, windows, walls, floors and other parts of the building etc, they should be got removed at the cost of the contractor as laid down in this clause. The completion certificate should not be given till the site is cleared of all malba, rubbish etc.

12.5.4 The clause further states that, the certificate of completion shall not be issued until the work is measured by the Engineer in Charge. The intention behind the provision is that all the measurements for works shall be recorded in time. The measurements for works are the most vital details, which get measured and accepted by both the parties. Only by delaying the taking of measurements, by the Engineer in Charge cannot of course delay the date of completion, since shelter under this provision cannot be resorted to for the lapse by the party taking advantage of it. If the contractor delays / avoids finalizing of measurements, application of this provision will be reasonable.

12.5.5 The following will be clear from a careful study of provisions under Clause 8, (i) Once the Contractor gives notice of completion, the Engineer-in-charge

inspects the work and issues Provisional Certificate of Physical Completion/Completion Certificate. The Date of Completion is thus fixed and this will form the basis for start of the Maintenance Period for which the Contractor is responsible.

(ii) The next step is for taking the Final Measurements duly recording the actual Date of Completion in the Measurement Book.

(iii) The next step is of issue of Final Completion Certificate which is however issued only after all the defects pointed out at the stage of issue of Provisional Certificate of Physical Completion are rectified, the contractor accepts the reduced rates offered by the Engineer-in-charge for specific BOQ items not strictly conforming to Specifications and the Contractor clears the site of all obstructions and unwanted materials.

(iv)The next step is that of preparation of Final Bill based on Final Measurements in which the Actual Date of Completion of works is recorded.

12.6 CLAUSE 10C and Clause 10 CA of CPWD (Both clauses deleted from RITES GCC – 2011)

12.6.1 Clause 10C of CPWD provides for reimbursement to contractor due to increase / decrease caused as a direct result of coming into force of any fresh law or Statutory rule or order (but not due to any change in Sales Tax / VAT) in the price of materials incorporated in the works excluding the materials covered under Clause 10CA of CPWD and / or wages of labour increased or decreased over prices / Wages prevailing at the time of the last stipulated date of receipt of tenders including extensions, if any. Under this clause the Price Variation was applicable for the work during the contract period including the justified period extended under the provisions of clause 5 of the contract without any action under clause 2. The increase should not be attributable to any delay in the execution of the contract within the control of the contractor.

12.6.2 Clause 10CA of CPWD provided for varying the amount of Contract due to increase or decrease in prices of various materials pertaining to the work. This clause was applicable for allowing adjustment in cost of work due to variation in prices of certain materials specified in Schedule F constituting substantial part of the works.

12.6.3 Since practical difficulties are likely to be faced in implementation of the provisions in CPWD Clauses 10C and 10CA, these two clauses have been deleted in RITES Standard GCC. Price Variation under Clause 10CC has been provided and this is to be made applicable for all works when stipulated in Schedule F and irrespective of the period of Contract.

12.7 CLAUSE 10 CC (Based on the earlier version of CPWD GCC 2008 with Clause 10CC applicable as a Stand alone Clause not linked to Clause 10CA)

12.7.1 This clause provides for compensation in case of increase in price of materials and / or wages of labour required for execution of work (not for the materials supplied or services rendered at fixed price in accordance with clauses 10 and 34 thereof), subject to certain conditions and also downward adjustment in case of decrease in rates in above items.

12.7.2 Clause 10 (CC) may be made applicable only for contracts where the Estimated Cost put to Tender is more than Rs.100 Lakhs, unless otherwise desired by the Client. Whether Clause 10CC is applicable or not should be indicated in Schedule F.

12.7.3 The components of cement, steel, material, labour and POL as percent of total value of work for every work will have to be pre-determined and incorporated in the contract under Schedule 'E' as given below.

XC Cement

XS Steel

XM Materials

Y Labour

Z POL

Total of percentages of XC, XS, XM, Y and Z will be 100. If there is any difficulty in working out the percentages of different components, the following may be adopted.

Category of work Cement + Steel + Material �Labour POL

1. Buildings 75% 25% —

2. Road Works & Pavements in Air fields 90% 5% 5%

3. External Sewerage 90% 10% —

4. External Water Supply 95% 5% —

5. Bridgework/ Flyover Works 70% 25% 5%

� Further break up may be worked out. In case of road works, percentage of component of bitumen may be mentioned distinctly.

The above percentage components are suggested only for normal types of works with ordinary/ hard soil strata etc. Where the soil strata is pre-dominantly rocky, involving heavy cutting or there are other special features, percentages may be fixed by the authorities approving NIT taking into consideration the Detailed Estimate.

12.7.4 In respect of carriage works and for other development works such as leveling etc. as well as sspecialized types of works, the Tender Document approving authority may decide on the details of components to be considered and the percentages applicable for each. In all cases, the components and the percentages as appearing in the Contract will be applicable for working out the amount payable to / recoverable from the Contractor towards Price Variation, irrespective of the variation in components or percentages as observed during the actual execution of work.

12.7.5 The contractor shall be required to prepare the statements of escalation or de-escalation at the end of every three months and submit to the Engineer in Charge. The first statement of escalation shall be prepared at the end of three months excluding the month in which the work was awarded and the work done from date of start to the end of this period shall be taken into account. For subsequent statements, cost of work done during every quarter shall be taken into account. On the completion of work, the work done during the last quarter or fraction thereof shall be taken into account. For the purpose of reckoning the work done during any period, the bills prepared during the period shall be considered. The dates of preparation of bills as entered in the M.B. by the Site Engineer shall be the guiding factor to decide the bills relevant to any period. The date of completion as finally recorded by the competent authority in the MB shall be the criterion for the last quarter or fraction thereof.

12.7.6 The Engineer in Charge will sanction the compensation for escalation or deduction on account of de-escalation and the amount thus sanctioned will be included in the next running account bill or final bill as the case may be. The cost of work for which escalation/ de-escalation is applicable / deductible shall be worked out as indicated in Clause 10CC.

12.7.7 The Engineer in Charge shall ensure before sanctioning any amount under clause 10CC, that such compensation for escalation in prices and wages shall be available only for the work done during the stipulated period of contract including the justified period extended under the provision of Clause 5 of the Contract without any action under Clause 2. For works executed during the period of extension granted with levy of compensation under clause 2, compensation towards price variation will be payable on the basis of indices for materials and labour as applicable on the last date of extension granted without levy of compensation under clause 2 or the indices applicable to such period of extension whichever is lower. Monthly Wholesale Price Index for Grey Cement, Steel (Rebar), all commodities and High Speed Diesel as published by Economic Advisor, Ministry of Commerce & Industry, Government of India as well as Higher amount of Minimum Daily Wage of unskilled adult male mazdoor specified by the Government of India or Local Administration for the periods as stipulated should be ascertained by Engineer in Charge with relevant copies of official documents kept in record. Where final indices / Minimum Daily Wages are not available at the time of preparation of bill for Price Escalation, provisional indices etc may be used initially and the adjustments in amount payable carried out through subsequent bills when the final indices etc are available.

12.8 CLAUSE 12

12.8.1 Under this clause the Engineer in Charge has powers to make any alterations in, omission from, addition to or substitution for the original specifications, drawings, designs and instructions.

12.8.2 The Engineer in Charge is empowered under this clause to give the necessary instructions to the contractor and the contractor is bound to carry out the work in accordance with such instructions but the following three conditions should be satisfied in the issue of such instructions.

i) Instructions must be given before any additional or substituted item is taken up or any BOQ item is to be omitted. This holds good also for Deviation in Quantities of BOQ items beyond the permissible Limits where revision of unit rates may be required to be worked out on the basis of market rates.

ii) They must be given in writing.

iii) They must be signed by the Engineer in Charge.

12.8.3 As regards the extra time for completion of the work due to deviations in agreement items and altered, additional or substituted items, the Engineer in Charge should determine the proportion that the algebraic sum of deviated, altered, additional or substituted work bears to the original contract work and certify for such portion. For substituted items, the additional cost of modified component only is to be taken. In all cases, payment towards Clause 10CC should not be considered. He should extend the time for the completion of the work according to such proportion plus 25% thereof. The proportion so based on Market rate analysis determined by the Engineer in Charge is final and the contractor cannot raise a dispute as to such proportion and demand arbitration. However, if the contractor feels that the period of extension given is, having regard to the proportion so determined miscalculated, it is open to him to request arbitration under the relevant clause about the propriety or otherwise of such period of extension.

12.8.4 Some times while sanctioning rates the Engineer in Charge gives the impression to the Contractor that although he had recommended higher rates, the higher level competent Authority had reduced them. It should clearly be borne in mind that under the terms of the contract it is the Engineer in charge who is the competent authority for according such sanction and it should be so worded as to convey clearly to the other party that the rates have been sanctioned by him and not by or at the instance of the higher authority. Sometimes the Engineer in Charge endorses copies of communication addressed by him to the competent authority for sanctioning rates for certain items, to the contractor concerned. This practice is irregular and is likely to cause legal complications. All communications in connection with fixation of rates etc. should be marked “Confidential” and copies thereof should not be endorsed to the contractors or any other private party. In reply to the communications of the contractors asking for early settlement of rates, where rates are required to be examined and sanctioned by higher authorities and the sanction is awaited, the contractor should not be informed that sanction of the competent authority is awaited. They should only be informed that the matter is under consideration and is receiving attention.

When the contractor insists for a copy of the rate analysis, on which his signatures are being taken, the same can be given without any signature/endorsement of RITES official.

12.8.5 In the case of deviation in quantity of BOQ items beyond the Deviation Limit, Clause 12.2 C of contract lays down that the rate payable for such excess quantity upto the additional limit specified therein, will be 97% of BOQ rate for the respective item. For quantity in excess of such specified limit, the contractor is required to claim revision of his rate supported with proper analysis. On receipt of analysis of rates from the contractor, the Engineer in Charge should arrange to get the same checked and vetted and obtain approval of the Competant Authority. There can be cases where the BOQ rate being high, the Contractor may not be interested in approaching Engineer-in-Charge for revision of rate for the excess quantity. In such cases, the Engineer-in-Charge can take suo-moto action to fix up revised rate. As far as possible, the market rate analysis should be based on coefficients given in the Standard Analysis of Rates of CPWD/Indian Railways/Ministry of Transport etc. as applicable. The market rate analysis is required to be done by the Controlling Site Engineer and checked by Project Coordinator. Where there is likely to be some difficulty in a single individual making out the analysis, SBU Head may consider setting up a two member committee, one from Engineering branch and another from Accounts. In cases where the Contractor does not furnish his analysis of rates, payment should be effected at the rate arrived at by Market rate analysis subject to a maximum of 97% of BOQ rate. Till the rates are fixed with the approval of the Competent Authority, the Contractor may be paid at adhoc rate of 75% of BOQ rate. All out efforts should however be made to obtain the approval of Competent Authority for the Revised rate at the earliest.

12.8.6 Special care should be taken while agreeing to omissions or substitutions. They are potential factors leading to undue benefit to contractors. Hence even if the Client asks for omission or substitution, it should be checked if it will result in undue benefit to the contractor and if so, the Client should be advised accordingly and his approval taken in writing.

12.8.7 For operation of this clause, the following points are to be kept in mind.

i) There should be written order for Deviations in excess of the limit for which rates have been fixed in the contract.

ii) The Contractor is to apply for revision of rates supported by analysis within 15 days after receipt of such communication.

iii) The rates for deviated quantities beyond limits for which rates have been stipulated in the contract, are to be based on market rate

iv) The work shall not be suspended on the plea of non settlement of rate.

v) It should be noted that the whole operation of Clause 12 is for deviation in works which appear necessary in the execution of work specified in the scope of work and not for carrying out major modifications in Scope of Work, which should be taken care of by fresh tender.

12.9 CLAUSE 14

This Clause on “Carrying out Part work at risk and cost of Contractor” had been deleted in RITES GCC 2008 Edition, having been merged with Clause 3 which deals with the subject “When Contract can be determined”.

In the course of execution of work by the Contractor, the following situations may arise.

i) The Contractor defaults in carrying out any or all of his obligations under the Contract resulting in the Employer’s decision to terminate the contract and get the balance works carried out through any other agency.

ii) The Contractor performs his obligations under the contract satisfactorily but the Employer decides to abandon or reduce the scope of the works for any reason whatsoever and hence does not require completion of the whole or part of the works remaining to be carried out by the Contractor, thus foreclosing the balance whole or part work.

iii) The Contractor’s performance is not found to be upto the desired level and the Employer is of the opinion that the contractor will not be able to complete the entire balance work within the scheduled period of completion including extension granted if any. Under these circumstances, the Employer may decide to take away part work / part incomplete work items from the Contractor’s hands leaving him to complete the rest of the work / items of work under the Contract. The Employer gets the part work / part incomplete work items so taken out of the hands of the contractor, completed by any other agency.

In case of Termination of Contract under item (i) above, the procedure to be adopted has been stipulated in Clause 3 of Contract. The Contractor is to be issued a Show Cause Notice as per Proforma at Annexure 12.1, 12.2, 12.3 or 12.4 as applicable and a Notice of Termination as per Proforma at Annexure 12.5.

In case of foreclosure of whole or part of the contract, the procedure to be adopted has been stipulated in Clause 13 of Contract. This clause will be applicable only in case a final decision is taken not to carry out in the near future, the whole balance or part balance work proposed to be foreclosed. In case of such foreclosure, the contractor is to be issued a Notice in the Proforma at Annexure 12.6.

In case it is decided by the Employer to take out part work / part incomplete work from the contractor’s hands for getting it completed through another Agency, the contractor is to be issued a Show Cause Notice in the Proforma at Annexure 12.6A calling for his remarks as to why part work / part incomplete work items should not be taken out of his hands while leaving him to carry out rest of the work. If the explanation of the Contractor is not found to be satisfactory and the Employer decides to

take out part work / part incomplete work items from the Contractor, Notice is to be issued to the Contractor in the Proforma at Annexure 12.6B.

In short, Clause 3 is to be applied for Termination of Contract covering the entire balance work in case of default of the Contractor, with monetary penalty imposed on the Contractor as per a defined procedure. Penalty does not depend on what it costs to the Employer to carry out the balance work. 2The Employer has the discretion to get the balance work carried out through another Agency and the Contractor from whom part work is being taken out is not allowed to participate in the fresh tender.

Clause 13 is to be applied where the Employer decides to foreclose the full or part balance of the work since it is not required to be carried out. Since there is no fault of the contractor, the contractor is monetarily compensated though to a limited extent only, to take care of his loss.

Clause 14 is to be applied in cases where the contractor fails partially in carrying out his obligations and the Employer decides that to ensure that the work as per original scope is got completed in a defined time limit, part work / part incomplete work items should be taken out of the hands of the contractor and got completed through another agency. In this case, since there is some default of the contractor, penalty is imposed on the contractor of a defined amount which however is not dependant on the actual cost at which the part work/ part incomplete work is got carried out by the Employer through another Agency. The Contractor is allowed to carry out the rest of works excluding that taken out of his hands. The Employer has the discretion to have such part work / part in complete work taken out if the hands of the first contractor, completed by any other agency. The Contractor from whom part work is taken out, is however not allowed to participate in the fresh Tender for the part work.

12.10 CLAUSE 16

12.10.1Under this clause the Contractor may be required to make good the defects in work at his own expenses or re-execute the work if it is not in accordance with the specifications, designs etc. and the clause authorizes the Engineer in Charge to offer lower rates to the contractor for work done below specification, if the work so done does not compromise structural stability and safety and is otherwise acceptable to RITES. Instructions on payment for substandard work may be seen in Section 14 of this Document.

12.10.2This clause empowers the Engineer in Charge to ask the Contractor to rectify the defective work including during Defect Liability Period and in the event of his failing to do so within the period to be specified by the Engineer in charge in his demand, the contractor shall be liable to pay compensation at the rate specified in clause 2, while his failure to do so continues and in case of any such failure the Engineer in Charge may rectify, remove or re-execute the work at the risk and expenses of the contractor. Notice to contractor, of the intention to recover compensation, is not necessary under this clause.

12.10A CLAUSE 21

Permission to sublet or assign the contract to another party should not be given to a contractor under this clause by Engineer in Charge without prior reference to the authority who accepted the tender. The Tender Accepting Authority should keep the following points in view in case he decides to grant such permission.

i) Sub-letting should be permitted only in exceptional cases and for recorded reasons as to why contractor himself cannot directly run the contract.

ii) In all cases, Sublette should be a contractor of the same or higher capacity or class as the original contractor.

iii) Sanctioning authority must see the terms and conditions of the agreement between the contractor and the Sublette in order to satisfy himself that the contractor is not subletting the work for earning a middle man’s profit.

iv) It should be seen at the time of subletting that RITES will not be put to any loss on this account and that no risk is involved.

v) Individuals holding general power of attorney cannot operate a contract awarded to a contractor.

Note: The work done on piece work basis through the labour employed by them does not come within the definition of subletting the work.

12.11 CLAUSE 36

12.11.1In order to effectively operate the provisions under Clause 36, the Engineer in Charge should ensure that the Contractor is called upon, immediately after issue of Letter of Acceptance, to intimate the details i.e. name, qualifications, and address of the Principal Technical Representative/Project Manager and Deputy Technical representative or Deputy Project Manager required to be employed by him as per terms of the contract and to ensure that properly qualified engineer/s employed by the contractor is / are actually available at site to note down the instructions conveyed by the representative of the Engineer in charge in the Site Order Book or otherwise. The Contractor’s Engineer should also be invariably present at the site of work for supervision at all times when any construction activity is in progress. The contractor’s Engineer should also be associated with the measurement of important items of work. In addition, the contractor’s Engineer shall be present at the site of the work whenever desired by the Engineer in Charge. In this respect advance intimation shall be given by RITES verbally or in writing. Suitable directions should be issued to the Site Engineers to verify this during their inspection of work and measurements recorded by the Site Engineer. It is also essential that the certificate that a qualified engineer satisfactorily employed by the contractor as per the provisions of clause 36 has looked after the work during its execution is recorded by the Site Engineer along with each running bill. Inspecting Engineers should also verify the fact of employment during their visit of work.

12.11.2Certain administrative instructions as regard this clause are given as under:-

i) Even if a contractor (or partner in case of firm / company) is himself an Engineer / Overseer, it is necessary on his part to employ Engineer/ Overseer for the supervision of the work as per stipulation.

ii) The Retired Engineers / Asst. Engineers who are holding Diplomas may be treated at par with Graduate Engineers for the operation of the above Clause.

12.11.3The Contractor shall employ the following as a minimum as Principal Technical Representative during execution of works. Additional technical staff will be required to be deployed and this will also depend on the complexity of nature of work.

a) For works with estimated cost put to tender more than;

i) Rs. Twenty Crore for Civil Work

ii) Rs. Ten Crore for Electrical / Mechanical Works

Engineering Graduate with atleast 15 years experience or retired Assistant Engineer possessing atleast recognized diploma.

b) For works with estimated cost put to tender:

i) More than Rs. Five Crore but less than Rs. Twenty Crore for Civil Works

ii) More than Rs. Two Crore but less than Rs. Ten Crore for Electrical / Mechanical Works

Engineering Graduate with at least 10 years experience or Recognized Diploma holder with 20 years experience.

c) For Works with estimated cost put to tender

i) Upto Rs. 5 Crore for Civil Works

ii) Upto Rs. 2 Crore for Elect/Mech. works

Engineering Graduate with at least 5 Years experience or Diploma Holder with 10 years experience.

d) Discipline to which the Principal Technical Representative should belong:

Civil / Elect. /Mech. etc depending on the nature of work.

e) Minimum experience of works may be varied depending on the complexity of work

f) Recovery to be effected from the Contractor in the event of not fulfilling provision of clause 36(i)

Rs. 55,000 per month for Engineering Graduate with minimum 15 years experience.

Rs. 45,000 per month for Engineering Graduate with minimum 10 years experience. Rs. 35,000 per month for Engineering graduate with 5 years experience.

The amount should be fixed / varied depending on the market rates being paid by Contractors in the area.

12.12 CLAUSE 42

12.12.1Clause 42 (ii) and (iii) of Contract lays down that recovery at a specified rate (higher than the normal issue rates) is to be made from the Contractors for use of cement and steel in excess over the quantity arrived at by theoretical calculations when the materials are supplied by RITES. Such situations may arise in cases where the Employer arranges bulk supply of materials and directs that the Tender Document should provide for supply of specific materials to be contractor free of cost or at fixed rates. The intention behind the clause is that the Contractor shall get issued only the required quantity of materials and if any such material remained unused at the time of completion or determination of the contract, it has to be returned to the Engineer-in-Charge. The clause specifically provides that the cost of material not so returned shall be recoverable at the rates as specified. The rates so specified form the reasonable compensation for the breach of the provisions therein. Thus this particular clause is not in the nature of penalty but provides for a reasonable compensation. The aggrieved party for the breach of the contract can receive reasonable compensation, not exceeding the amount so named. The recovery rate specifically mentioned in the particular clause for such breach is not the black market rate of cement or steel but a contract between the parties provided as reasonable compensation for breach of the contract relating to the excess issue of cement and steel, not returned by the contractor.

12.12.2In order to operate the provision of this clause effectively it is necessary that with every running account bill a statement showing the theoretical requirements of cement and steel for the items of work done and measured should be prepared and got signed by the Contractor at the time of obtaining his signature on the running account bill, so that he is aware of the basis on which the theoretical calculations are worked out. It will also enable exercise of broad check over the consumption of these materials during the execution even in cases where the contractor is to make his own arrangements for cement and steel. As already mentioned above, the recovery at the rates so specified in the clause is for the material in excess over the quantity arrived at by theoretical calculations and not returned by the Contractor (and not for excess consumption). It is thus particularly essential for the Engineer-in-Charge never to admit that entire quantity of material issued had actually been consumed in the work. In the counter statement of facts in arbitration also, statement such as excess material has actually been used in the work should never be made. It is also absolutely necessary that a notice in writing should be issued by the Engineer-in-Charge to the contractor to return the materials issued in excess of the theoretical quantity as provided in clauses 42 and 10. Only there after action for recovery under clause 42 is to be taken. Once the distinction that recovery is for excess over theoretical consumption and not for consumption in the work becomes clear, it will be inappropriate for the Engineer in Charge to admit that the entire quantity of materials issued has actually been consumed in the work. In the Counter Statement of Facts on Arbitration also, Statement such as “Excess materials have already been used on the work” should never be made.

12.12.3In a judgment, the Delhi High Court has upheld that recovery at double the issue rate (existing in GCC at that time) for the quantity of materials issued in excess over the quantity calculated on theoretical basis under Clause 42 (ii) of the Contract is justified.

12.12A CLAUSE 45A

Some State Governments have enacted legislation holding the consumer of

minor minerals like red bajri, stone, kankar etc. equally responsible as the agency quarrying the material, for payment of royalty charges to the Government. In contracts entered into by RITES on behalf of the Employer, it thus becomes the responsibility of RITES to ensure that the royalty charges are paid to the Government. In terms of Clause 37A of GCC, the Contractor has been made responsible for the same. To protect the interest of RITES, Clause 45A has been introduced by linking release of Security Deposit with the clearance from State Govt. Authority for mineral extraction. Clause 45A also provides that the State Govts’ clearance will be deemed to have been received if no reply is forthcoming, from the State Govt. Authority on a reference from RITES, within four months from the date of issue of such a Notice. Format for such a Notice to be issued by RITES to the State Govt. Authority is at Annexure 12.10.

12.13 Clause 47

12.13.1Clause 47 of GCC prescribes that the contractor has to arrange insurance for loss of or damage to the works, plants, materials, equipment etc. Such insurance shall be for the values as indicated in Clause 47.1.1 and in the case of insurance for works under Clause 47.1.1 (a) the insurance should include the cost of all materials supplied free of cost or at fixed cost by the Employer for incorporation in the works. The cost of such materials will be arrived at based on the anticipated cost of procurement, transportation handling storage etc. and advised to the Contractor. The Contractor shall be required to obtain Contractor’s All Risk Policy for this purpose.

12.13.2The minimum insurance cover for physical property, injury or death may be kept as Rs. 5 lakh per occurrence (or as provided in the Contract) with the number of occurrences limited to four. After each occurrence contractor will pay additional premium necessary to make insurance valid for four occurrences always.

12.14 PROFORMA FOR NOTICES TO CONTRACTOR UNDER VARIOUS CLAUSES OF CONTRACT AND FOR COMPLETION CERTIFICATES

Annexures 12.1 to 12.10 as detailed below give the Proforma of Notices to be issued to the Contractor under various Clauses of Contract. In these Proformae Engineer in Charge represents the official of RITES who has signed the Works Contract with the Contractor and Site Engineer is the Engineer in direct charge of the work at site.

Sl. No. CONTENTS ANNEXURE No.

1 Notice under Clause 3 (i) for rectification / reconstruction /

replacement of defective work

12.1

2 Notice under Clause 3 (ii) for restarting of work / proceeding with the work with due diligence

12.2

3 Notice under Clause 3 (iII) to accelerate the pace of works to complete it within the stipulated time

12.3

4 Notice under Clause 3(Iv) to carry out the specified obligations under the Contract

12.4

5 Notice under Clause 3 for Determination of Contract 12.5

6 Notice under Clause 13 for Foreclosure of Contract 12.6 7 Show Cause Notice under Clause 14 for taking out

part work

12.6A

8 Notice of action under Clause 14 for taking out part work

12.6B

9 Notice under Clause 17 for rectification of defects during Maintenance period

12.7

10 Proforma for Provisional Certificate of Physical Completion under Clause 8

12.8

11 Proforma for Final Completion Certificate under Clause 8

12.9

12 Proforma for Notice to the State Government Authorities under Clause 45A

12.10

SECTION 13

EXTENSION OF TIME AND COMPENSATION FOR DELAY

13.1 GENERAL PRINCIPLES

13.1.1 At the time of issuing Notice Inviting Tenders for a particular work, the Engineer in Charge should specify the time allowed for completion of the work consistent with the magnitude and urgency of the work.

13.1.2 The time allowed for carrying out the work as entered in the contract shall be strictly observed by the contractor. In the LOA, reference is given to the time limit as reckoned from 15 days or as mentioned in Schedule F after the issue of LOA or first day of the handing over of the site whichever is later. LOA shall not be issued unless part of site adequate to execute the work in the first few months is available, with the assurance that the balance site will be made available progressively to enable completion of the work within the Scheduled time.

13.1.3 The work shall, throughout the stipulated period of the contract, be proceeded with all due diligence (time being deemed to be the essence of the contract) on the part of the contractor.

13.1.4 To ensure good progress of the work during the execution, contractor shall be bound, in all cases, in which the time allowed for any work exceeds one month (save for special job), to complete the works as per the milestones given in Schedule F under Clause 5 of contract or as per the rescheduled milestones. However, for special jobs if a time schedule has been submitted by the Contractor and the same has been accepted by the Engineer in Charge the contractor shall comply with such time schedule. This should be incorporated by an amendment to the Milestones, if required.

13.1.5 The NIT approving authority shall stipulate time schedule for milestones in Schedule ‘F’ in the NIT. The Engineer in Charge shall as far as possible review the progress of work each month with all the concerned disciplines including the contractor. The factors affecting the progress shall be identified and discussed and remedial measures taken, wherever required. Detailed minutes of these meetings shall be issued. For larger projects, in addition to the monthly review, the Engineer in Charge shall, in a similar manner, specifically review in detail the progress of the work just before the stages of 1/4th, ½, 3/4th and also about a fortnight before completion of the stipulated contract period. Whenever physical milestones have been specified in the NIT, the detailed review may be carried out on the dates specified for such milestones. If an extension of time granted by the competent authority for genuine hindrances, he should re-schedule the milestones for the work appropriately, if required.

13.2 REQUIREMENTS OF CLAUSE 5

Clause 5 of Contract empowers the Engineer in Charge to allow extension of time for the completion of the work in normal course on certain conditions. He can exercise such powers if the following conditions are satisfied subject to getting approval of Competent Authority to grant extensions (as per SOP).

i) the Contractor must apply to the Engineer in Charge in writing for extension of time.

ii) Such application must state the grounds which hindered the contractor in the execution of the work within the stipulated time.

iii) Such an application must be made within 14 days of the date on which such hindrance arose.

iv) The Engineer in Charge must be of the opinion that the grounds shown for the extension of time are reasonable.

13.3 POWERS OF OFFICERS FOR GRANT OF EXTENSION OF TIME

The powers for grant of extension of time have been delegated to RITES Officers in the Schedule of Powers.

13.4 GRANT OF EXTENSION OF TIME WITHOUT APPLICATION

13.4.1 Based on Hindrance Register where adequate and proper grounds exist, the Engineer in Charge can grant extension of time even in the absence of application from the contractor under Clause 5.

13.4.2 The extension, in order to be binding, will have to be by parties’ ‘agreement’ express or implied. It, therefore, follows that if the extension of time is granted by the Competent Authority and such extension of time is accepted by the contractor, either expressly or implied by his action before and subsequent to the date of completion, the extension of time granted is valid. It is, therefore, necessary that the Competent Authority grants extension of time even when the contractor does not apply for extension of time in order to keep the contract alive. If the contractor refuses to act upon the extension granted by the Engineer-in-Charge it will attract the provisions of clauses 2&3 of the Contract.

13.4.3 The recovery of liquidated damages for delayed performance, on account of which extension of time is granted under clause 2, is a distinct matter and would depend on factors enumerated in para 12.3.4

13.5 FORM OF APPLICATION FOR EXTENSION OF TIME

13.5.1 The form of application for extension of time to be submitted by the contractor has been standardized and is at Annexure 13.1. Part I of the form is one on which the contractor is required to apply for grant of extension of time. Part II of the form is to be used by RITES officers for purposes of dealing with the application for extension of time.

13.5.2 Whenever any hindrance comes to the notice of the Site Engineer, he should at once make a note of such hindrance in the register kept at site and make a report to the Engineer-in-Charge within a week. The entry of date of removal of hindrance should be made on the same day as the cause of hindrance is removed. The Engineer-in-Charge shall review the Hindrance Register during every visit to the site. The Engineer-in-Charge should workout the over-lapping period, net period of hindrance and weight age of each hindrance and the items of work affected due to the hindrance.

13.5.3 The Engineer in Charge shall decide the question of extension of time within 15 days of receipt of application of the Contractor for extension of time if it is within his competence.

13.5.4 Although the Contractor is required to seek extension within 14 days from the date of occurrence of the hindrance for which the extension is sought, it does not debar the grant of extension sought later by the competent authority who can

condone such delay in application. The competent authority should condone the delay only when the contractor shows good reasons for not seeking it within a period of 14 days. The contractor cannot demand for extension but can only request, in case he has not complied with provisions in Clause 5.

13.6 PROCEDURE FOR GRANTING EXTENSION OF TIME

13.6.1 In cases where the sanction of the higher authority to the grant of extension is necessary, the Engineer in Charge should forward the application as soon as possible and if the orders of the Competent Authority (Tender Accepting Authority) are not received before the expiry of original completion date or the previously extended completion date, the Engineer in Charge should extend the Contract before the stipulated date expires so that the Contract remains in force but while communicating the extension of time, he must inform the Contractor through a letter in the format at Annexure 13.2 that this is without prejudice to RITES right to levy compensation under Clause 2 of the Contract. The Tender Accepting Authority should pass his orders on the application within 15 days of receipt of the same from the Engineer in Charge.

13.6.2 In case the Competent Authority decides to grant the extension without levy of Liquidated Damages, the Engineer in Charge will communicate the same to the Contractor in the format at Annexure 13.3.

13.6.3 The decision in regard to levy of Liquidated Damages for delay in the execution of works in terms of Clause 2 of the Contract should not be recorded in the Measurement Book of the work concerned.

13.7 COMPENSATION UNDER CLAUSE 2

The word compensation should be used in relation to clause 2 of the Contract instead of the word penalty.

13.8 SECTION 74 OF THE INDIAN CONTRACT ACT, 1872

13.8.1 When a contract has been broken, and if a sum is named in the contract as the amount to be paid in case of such breach or if the contract contains any other stipulation by way of compensation, the party complaining of the breach is entitled, whether or not actual damage or loss is proved to have been caused thereby, to receive from the party who has broken the contract reasonable amount not exceeding the one so named or as the case may be, the compensation stipulated for.

13.8.2 According to clause 5 of the Contract all letters of extension of time to be issued to the contractor should be over the signature of Engineer in Charge as he is the only officer so empowered contractually to grant extension of time as he has signed the Contract Agreement. Similarly all letters intending to impose compensation or to recover liquidated damages under clause 2 of the contract should be issued over the signature of Engineer in Charge as he is the only officer competent to do so. The above stipulation is to be adopted even if the decision to give extension of time and / or impose levy of compensation may have been taken by RITES official at a higher level.

13.9 PROFORMA FOR INTIMATING THE CONTRACTOR ON LEVY OF COMPENSATION UNDER CLAUSE 2

While Clause 2 of Clauses of Contract stipulates that withholding of amount for failure to achieve any milestones shall be automatic without any notice to the

contractor, in case action is proposed to levy liquidated damages, this will require a show cause Notice to be served on the contractor in the Proforma at Annexure 13.4. This Proforma is to be used in cases where it is proposed to allow the work to be completed by the Contractor without terminating it. The Contractor’s explanation for the delay in execution of the work should be considered by the Authority Competent to levy Liquidated Damages as mentioned in Schedule F. The Competent Authority may decide to grant Extension of Time without levy of Liquidated Damages. Then the Contractor may be advised accordingly through a letter generally in the Proforma at Annexure 13.3. If the Extension of Time is proposed to be given with levy of Liquidated damages, the Contractor may be advised accordingly in the Proforma at Annexure 13.5. Where it is decided to terminate the contract, action can be taken under both Clauses 2 and 3. As regards action under Clause 3, para 12.2 may be referred to. For action under Clause 2, the Contractor is to be issued Show Cause Notice in the Proforma at Annexure 13.6 and final advice on Levy of Compensation in the Proforma at Annexure 13.5.

SECTION 14

PAYMENT FOR SUB-STANDARD WORK

14.1 PROCEDURE FOR ACCEPTANCE OF SUB-STANDARD WORK 14.1.1 The contractors are required to execute all works satisfactorily and according to

the specifications. If certain items of work are below specifications, the Contractor should be asked to redo them according to the specifications. During the progress of the work, defects/deficiencies in the items of works are to be noted in time and recorded in site order book. It will be the duty of the Site Engineer and inspecting officials to point out such defects in the work in time during the progress of the work. These defects should also be brought to the notice of Engineer in Charge immediately, so that he may take timely action to issue notices to the contractor either to rectify the defects or even get the work dismantled and redone if necessary as per Clauses 3 and 16 of the contract.

14.1.2 Every attempt should be made to issue such notices regarding the defective

items during the progress of the work. Where however this is not found feasible, the same should be issued within the prescribed maintenance period. Timely action alone can prevent occurrence of defects which will be difficult or impossible to rectify later on.

14.1.3 If the Contractor does not rectify the defect, the work should be got redone or

rectified by employing other agencies at the Contractor’s cost in terms of clause 16 of Contract.

14.2 ACCEPTANCE OF SUB-STANDARD WORK 14.2.1 Acceptance of work below specifications and payment of reduced rates should

be resorted to with the approval of the competent authority (Authority competent to sanction rates for Non Schedule items. Item 9.1 of SOP) only for those items where it is structurally impossible to get the work redone. Normally, sub-standard work must be got rectified and if necessary redone. Acceptance of sub standard work at reduced rates should be done only under exceptional circumstances as they reflect poorly on the professional competence of the field staff and adversely affect the image of RITES. Total value of items at agreement rate, for which the sub-standard work can be accepted in a contract shall not exceed 5% of the contract value for contracts upto Rs. 20 crores and 3% of the contract value for contracts above Rs. 20 crores or Rs.1 Crore whichever is higher. Before a sub-standard work is accepted by RITES, the Engineer in Charge after getting prior approval of competent authority should write a letter to the contractor for and on behalf of RITES regarding acceptance of the same and the provisional rates pending the decision of the competent authority (Item 9.1 of SOP) with regard to final rates. In reply to this letter the contractor should send his consent for acceptance of the terms specified by RITES. For this purpose two forms as per Annexures 14.1 and 14.2 may be used. The decision of the Competent Authority (Item 9.1 of SOP) regarding the quantum of reduction as well as justification thereof in respect of rates for sub standard work which may be decided will be final and would not be open to arbitration under Clause 25 of the agreement.

SECTION 15

ISSUE OF MATERIALS TO CONTRACTORS

15.1 ISSUE OF MATERIALS TO BE AN EXCEPTION

1) Issue of materials to works, whether from stock or by purchase, transfer or manufacture, are divided into two classes:

i) Issue to Contractor:

Issue of materials to contractors with whom agreements in respect of completed items of works, i.e. for both labour and materials, have been entered into.

ii) Issue direct to works:

Issue of materials when work is done through a contractor whose agreement is for labour only.

2) In view of likely liability of Sales Tax, except where the Client stipulates such a requirement, it is desirable not to stipulate in the contract issue of materials to contractors.

The issue of materials to contractors is to be stipulated in contracts, which are for completed items of work, only in the following circumstances.

i) When it is necessary to retain in the hands of the Employer the supply of imported materials.

ii) When, in the interest of work, or with the object of utilizing existing stocks or materials, it is desirable to retain in the hands of the Employer the supply of certain other materials as well, and a condition to this effect has been inserted in the contract.

3) Stipulation of materials to be issued by the Employer

i) Stipulated materials shall be issued for use at site on works, for all the items where such materials are required. Factory made products like pre-cast cement tiles, pre-cast hollow concrete blocks, pre-cast foam concrete blocks, pre-cast RCC pipes etc., should not normally be stipulated for issue.

ii) It should also be ensured that description of the materials to be issued should be adequately specified in order to obviate chances of any dispute. For example, if cement is specified for issue, its grade and colour, i.e. whether it is grey cement or white cement, should be stated and also whether it will be in bags or otherwise.

iii) The contract should specify:

a) the materials to be supplied by the Employer for use on the work,

b) the place or places of delivery, and

c) the rates to be charged to the contractor for each description of materials.

iv) The rates to be charged to the contractors for materials to be supplied should be definitely specified (vague provisions e.g. at stock rates should be avoided) and if intending contractors had been told that the materials would be supplied at certain rates and asked to tender on that assumption, then that rate should be adhered to in the contract.

v) No carriage or incidental charges are borne by the Employer for moving the materials beyond the place where the contractor has agreed to take delivery thereof.

vi) The contractor should be held responsible for obtaining from the Employer all such materials required for the work, and for making payment for them by deduction from his bills at the rates specified, regardless of fluctuation in the market rates or in the stock rates of the Employer.

vii) Conditions for supply of materials by the Employer should be so explicit that no doubt or ambiguity is left which may encourage the contractor to derive undue financial benefit subsequently. The tender documents should include the specific items of work for which materials are intended to be issued by the Employer with detailed description of materials.

4) Stipulation of free issue of materials-

In contracts entered into by the Employer for works, stipulation to issue materials such as steel, cement etc. free of cost should be avoided. However, in some exceptional cases, if such free issue of materials by the Employer is stipulated, it should be ensured that suitable provisions are made in the contract with regard to return of surplus materials and / or material used in excess of theoretical requirement. The provision for wastage / variation, if any, that will be permitted should be clearly indicated. The recovery rate for effecting recovery from the contractor, in case the excess materials are not returned or if the wastage / variation is more than the permissible limit, should also be clearly stipulated, and it should be so fixed that it discourages the contractor from retaining the unused materials.

5) In the receipts obtained from the contractors for the materials issued to them (especially in the case of electrical materials and fittings), and even when these are issued free of cost as stipulated in the agreement, makes of materials / fittings and full technical details of the accessories shall be clearly indicated to ensure that the same materials / fittings as issued by the Employer are kept in safe custody by the Contractor at all times, and used on the works for which these are issued.

6) Drawing of stipulated materials by the Contractor

It is not permissible for the contractor to obtain the materials otherwise where the contract stipulates the issue of materials by the Employer, unless in a case of emergency the supply has been entrusted by the Engineer-in-charge for recorded reasons to the Contractor himself at suitable rates.

7) Stipulation of materials that are not available

RITES should not make any provision in the tender for the supply of materials by the Employer to the contractors if the materials are not available for issue from the Employer stores, or where they cannot be arranged in time for issue.

15.2 ISSUE, SUPPLY AND RECOVERY OF COST OF MATERIALS

15.2.1 It should be ensured that the materials are not issued to contractors arbitrarily and without keeping an eye on the actual requirement at site. It is essential that issues to contractors should be regulated and restricted to actual requirements depending on the progress of the work.

15.2.2 The theoretical consumption statement for consumption of cement on the work executed from the start of the work upto and including the work included in the bill should be invariably prepared along with every running bill. This should be got signed by the contractor at the time of obtaining his signature on the running account bill so that he is aware of the basis on which the theoretical quantity of cement is worked out and it will be possible for the contractor as well as RITES to exercise a check over the consumption of cement during the execution of the work. The theoretical quantity so worked out should be compared with the actual issue of cement as per cement register as on the last date of the measurement of the work. Should there be any difference beyond the normal limits of variations between these two quantities, such difference should be properly explained both for less or more consumption, by the Site Engineer.

15.2.3 In order to have an effective control, the following drill should be observed:–

a) The cement godowns should be properly and effectively double locked, keys of one of the locks remaining with RITES and that of the other with the contractor.

b) The pages of cement register should be as per Annexure 20.5 machine numbered and each page initialed by Site Engineer. The cement godown and the register should be checked by the inspecting officials during their visit.

c) For additional safeguard, the following instructions should be followed:

i) For all major works using cement, the contractor shall distinctly display on a board at the cement store indicating the opening balance on a particular date, receipt during the day, issue during the day and closing balance at the end of the day (The entries for receipts and issues shall be updated immediately on physical receipt and physical issue and also at the end of the day).

ii) While issuing an indent for fresh cement / steel, the balance material available at the site should be checked. The Site Engineer must record on the body of the indent, the balance of such material available at the time

and date of issue of the indent which should be taken into account for further issue to the Contractor.

iii) The cement / steel and other materials received on any particular day, shall not be used in the work or transferred to any other work for 24 hours from the time of receipt at site, to facilitate physical check and verification by the Site Engineer. Cement already available in the store at site should be consumed first, before issue from the new consignment. Similarly new steel items should be stacked in countable shape before these are used, to facilitate physical check. The principle of first in and first out in issuing cement bags should be strictly followed.

iv) The recovery from the contractor shall be regulated as per Clause 42 of the contract.

15.2.4 For making comparison of the actual consumption of steel with the theoretical consumption, each diameter of steel bars should be treated as an individual item and check on theoretical consumption should be applied to each diameter.

15.2.5 Theoretical consumption statement for steel bars should be prepared along with every running bill. Should there be any case of issue being less or just equal in any particular diameter / section than the actual consumption, this should be properly investigated. If such issue diameter wise / section wise or in total is very much higher than the consumption, it should be generally ensured that balance steel is available at site in good condition and this should be certified by the Site Engineer. Any serious discrepancies noticed should be reported to the Engineer in charge.

15.2.6 Similar precautions should be taken in the case of all other materials issued by RITES.

15.3 ISSUE RATES

15.3.1 Issue rates of cement, steel or any other items in the contracts should not be less than the market rates of these commodities. This will be however subject to provisions in the contract.

15.3.2 The recovery from a contractor on account of the cost of materials issued to him for use on a work should ordinarily be made by deduction from the first bill authorizing an advance payment or an on account payment to him for the work. However, the recovery from contractor on account of the cost of materials issued to him for use on a work may be made gradually on the basis of the theoretical consumption plus wastage of the material used in the work measured upto date. For each bill the field staff should certify that balance material is available in Contractor’s custody. In case of shortage, the cost of the same should be recovered.

15.3.3 The official holding stock of such materials shall maintain a proper accountal of the issue to the contractor and return by him.

15.3.4 Where bitumen is supplied at a fixed rate, issue rate plus 10% recovery should be made for supply in excess of permissible variation over theoretical consumption. Where less than theoretical requirement of bitumen is used, recovery at issue rate plus cartage should be made for quantity consumed less as compared to theoretical requirement of bitumen.

15.4 RETURN OF SURPLUS MATERIALS

15.4.1 Where any materials for the execution of the contract are procured with the assistance of RITES/ Employer either by issue from the Employer’s stocks or purchase made under orders or recommendations issued by the Employer, the contractor is required to use the said materials economically and solely for the purpose of the contract and not dispose of them without the written permission of RITES and return, if required by the Engineer in Charge, all surplus or unserviceable materials that may be left with him after the completion of the contract or at its termination for any reason whatsoever . In such cases the Contractor shall be paid or credited with such price as the Engineer in charge shall determine having due regard to the condition of the materials. The price allowed to the contractor however shall not exceed the amount charged to him excluding the element of storage charges. The decision of the Engineer in charge shall be final and conclusive. In the event of breach of the aforesaid condition the contractor shall, in addition to throwing himself open to action for contravention of the terms of the contract and / or for criminal breach of trust, be liable to RITES for all moneys, advantages or profits resulting or which in the usual course would have resulted to him by reason of such breach.

15.4.2 The exact proportion in which the materials are to be used by the Contractor for which he has tendered for finished items of works is laid down in the Specifications / Schedule of Rates. Theoretical quantities of the materials which should have been used by the contractor on execution of the work should be calculated according to the Specifications/ Schedule of Rates provided in the contract. According to clause 42 of the contract, difference of theoretical consumption and the total actual issues, not returned by the contractor, is to be recovered at the prescribed rate after allowing variation permitted therein. Similarly the cost of the materials less used, based on the stipulated issue rates etc. is to be regulated according to the provision of the said clause.

The excess consumption of materials beyond permissible limit as given in Clause 42 of the contract will be recovered at normal stipulated rate + 10% unless any other rate has been stipulated in Schedule F.

15.5 INSTRUCTIONS REGARDING STORAGE OF CEMENT IN GODOWNS

15.5.1 The provisions of para 3.1.2.2 of CPWD Specifications Volume 1 need not be followed in respect of construction of cement godowns for works where consumption of cement does not exceed five Tonnes. In such cases the contractor shall be permitted to store cement at site inside a covered shelter providing adequate safeguards against clodding of cement due to action of water and against theft. The Site Engineer shall inspect such shelter and satisfy himself that adequate safeguards as mentioned above exist.

15.6 ISSUE OF MATERIALS AGAINST BANK GUARANTEE

In cases of contract, where material is to be supplied by RITES against any Bank Guarantee of equivalent value, the amount of security deposit in the shape of FDR, Bank guarantee etc. should at no time be less than the cost of the material supplied to the contractor and such materials should be supplied only after ensuring receipt of Bank guarantee / FD / SD etc., adequate to cover the cost of the items supplied.

15.7 RECOVERY TOWARDS MATERIALS ISSUED FOR RECTIFICATON OF DEFECTS / REDOING WORKS

15.7.1 In order to discourage contractors from doing bad work, no allowance is to be given for the materials issued for rectification of defects. The materials issued for rectification of defective work should be recorded separately and recovered at double the issue rate. The work re-done should be measured for record purpose only and not for payment, if the dismantled work had already been measured for payment.

15.7.2 If, however, it becomes necessary to issue cement for rectification of defects or for redoing works necessitated due to natural calamity beyond the control of the contractor, i.e. floods, earthquakes, etc such issues should be treated as legitimate consumption on works and should not be charged at rates higher than the issue rates. On the question whether redoing of work of rectification of defects had, in a particular case, been necessitated by natural calamities etc the decision of the Engineer in Charge will be final.

SECTION 16

MATERIALS ARRANGED BY CONTRACTOR AND MANDATORY TESTS

16.1 GENERAL PRINCIPLES

16.1.1 Except in very rare cases where the contract conditions provide for some stipulated materials to be supplied by RITES at rates as fixed and mentioned in the Contract, it is the entire responsibility of the contractor to arrange all materials, store them properly and use them in works. In the case of cement and steel, being vital items, even if the materials are to be arranged by the contractors, stored and issued for specific items of works, a close watch is to be kept by the Site Engineer to ensure that the actual consumption agrees with the theoretical requirements.

16.1.2 The following general principles are required to be followed in the cases of material arranged by the contractor:–

i) The materials to be arranged should comply strictly with the specifications laid down and referred to in the contract.

ii) Whenever materials are available in the market as per Indian Standard Specifications laid down by Bureau of Indian Standards, the contractor should arrange for only materials with ISI marking. In case of materials for which IS specifications have not been laid down, the contract will specify the specification such as British Standard, American Standard etc. to be complied with and where nothing is laid down in the contract, the specifications will be laid down by the Engineer-in-Charge. The Contractor should arrange for the materials as per the specifications indicated in the contract.

iii) If the contract stipulates in the case of materials like cement, steel etc the desirable brand names, the contractor should arrange the materials of one of the brands recommended. Where there is difficulty in arranging such procurement, the contractor will take prior approval of the Engineer in Charge for procurement of other brands. If brands are to be specified, minimum three brands of equivalent prices may be specified in general subject to materials under these Brands being easily available in the area of work. For major items like cement and steel, atleast four and if possible more, major reputed brands of equivalent prices may be specified. In the case of specialized items like Steel / Aluminium Doors / Windows, they should be got fabricated from reputed workshops.

iv) The theoretical consumption of materials like cement, steel pipes etc. shall be worked out as per procedure prescribed in Clause 42 of the Contract and in case the consumption of any such material is less than the theoretical consumption including permissible variations, recovery at the rate as prescribed shall be made.

v) Before start of work, the contractor shall at his own expense supply to the Engineer-in-Charge samples of materials to be used in the work and get them approved in advance. For this purpose, the contractor shall furnish

Test Certificates or have the materials tested at his cost to satisfy the Engineer-in-Charge that the materials comply with the specifications. Materials as per the sample may be arranged by the contractor for use in works only after the samples have been approved by the Engineer-in-Charge. The samples shall be kept in safe custody to check that material of same quality as the approved sample is actually used in the work.

vi) When the work is in progress, for the materials like cement and steel, the contractor should continue to arrange to supply to the Engineer-in-Charge the test certificates from the manufacturers.

vii) The Site Engineer will ensure that the mandatory tests are carried out as stipulated in subsequent para 16.2 for the stipulated materials / products. These tests are to be carried out in the field or laboratory as indicated against each item. The cost of materials / products and the entire cost of testing will be borne by the contractor.

viii) In addition to the mandatory tests, the Engineer-in-Charge may require other non-mandatory tests to be carried out on the materials / products. In all such cases, the contractor shall supply the samples free of cost. The cost of such tests, wherever carried out, however shall be borne by the contractors/ RITES in the manner described below, unless otherwise specified in the Conditions of Contract.

a) By the Contractor, if the results show that the material / product does not conform to relevant BIS Codes or other Specifications as laid down in the Contract.

b) By RITES, if the results show that the material / product conforms to relevant BIS Codes or other Specifications as laid down in the Contract.

ix) Whenever the Head Quarters officers or SBU Heads inspect the site of work, in addition to reviewing the progress of work and checking of site documents, in case any quality control tests are programmed to be done on the date of their inspection, the same may be got conducted in their presence.

x) In major works, Special Conditions will provide for the contractor setting up a Field Laboratory so that the Mandatory Tests can be carried out. In smaller works, where such a Field Laboratory is not required to be set up, the tests can be carried out in an outside laboratory selected by the Engineer-in-Charge. In all works sites, the contractor shall maintain Field Testing Instruments.

16.2 MANDATORY TESTS - CPWD SPECIFICATIONS

16.2.1 CPWD Specifications 2009 as amended upto date lay down the details of Mandatory Tests on materials and finished products. Mandatory Tests as laid down are given in the enclosed Annexures 16.1 to 16.9 with brief details below. Details have been given in the Anneuxres on the clauses / annexures of CPWD Specifications to be referred to for the tests.

Chapter No.

of CPWD Specifications

Subject Material Annexure

3 MORTARS i)WATER

ii) CEMENT

iii) SAND

iv) FLY ASH

16.1

4 CEMENT CONCRETE

i) STONE AGGREGATE

ii) CONCRETE

16.2

5 REINFORCED CEMENT

CONCRETE

i) NOMINAL MIX

ii) DESIGN MIX

iii) READY MIX

iv) STEEL

16.3

6 BRICK WORK i) BRICKS / BRICK TILES

ii) SEWER BRICKS

iii) BURNT CLAY PERFORATED BUILDING BRICKS

16.4

8 MARBLE WORK i) MARBLE

ii) GRANITE

16.5

9 WOOD WORK i) TIMBER

ii) FLUSH DOOR

iii) MORTICE LOCKS

16.6

10 STEEL WORK i) STEEL

ii) STEEL TUBULAR PIPES

16.7

11 FLOORING i) TERRAZO TILES

ii) PRESSED CERAMIC TILES

16.8

16 ROAD WORK i) COARSE AGGREGATE

ii) FINE AGGREGATE

iii) BITUMEN

16.9

iv) EMBANKMENT UNDER OMC CONDITIONS

v) BITUMINOUS MACADAM

vi) BITUMEN MASTIC WEARING COURSE

vii) DENSE BITUMEN MACADAM

viii)CEMENT CONCRETE PAVEMENT (UNDER CONTROLLED CONDITIONS)

ix) FINE AGGREGATE

16.3 DESIGN MIX CONCRETE - ACCEPTANCE TEST

In chapter 5 of CPWD Specifications on Reinforced Cement Concrete, Mandatory Tests have been laid down for “Design Mix”. In terms of Clause 9.3 of IS 456-2000, Nominal Mix Concrete may be used only for Concrete of M 20 or lower. For Concrete of higher strength, Design Mix Concrete has to be necessarily used. For “Designed Concrete Mix”, it is necessary to carry out 28 days Compressive strength tests to check if the Concrete complies with the Acceptance Criteria as laid down in IS 456-2000. A copy of the relevant extracts on “Sampling and Strength of Designed Concrete Mix” from IS 456 of 2000 is at Annexure 16.10. Number of samples of Concrete to be taken out for testing depending on quantity of Concrete of a particular Grade produced in a batch, has been indicated in Clause 15.2.2 of IS 456-2000. As mentioned in Clause 15.3, three test specimens (Cubes) shall be made for each sample for testing at 28 days. As given in Clause 15.4, the test results of each sample shall be the average of the strength of three specimens. The individual variation should not be more than + or - 15 percent of the average. If more, the test results of the sample are invalid. The Acceptance Criterion on Compressive Strength has been indicated in Clause 16.1 of IS 456:2000. In terms of this, the concrete shall be deemed to comply with the strength requirements when both the following conditions are met.

a) The mean strength determined from any group of four consecutive test results complies with the appropriate limits in Col. 2 of Table 11 of IS 456-2000.

b) Any individual test result complies with the appropriate limits in Col. 3 of Table 11 of IS 456-2000.

Thus if a group of 4 consecutive samples A, B, C, D is tested for Compressive Strength with Cubes A1, A2, A3, B1, B2, B3; C1, C2, C3 and D1,D2,D3 the following have to be satisfied:–

i) Compressive strength of each individual Cube A1, A2 and A3 should not vary by more than + or - 15 Percent of average Compressive Strength of the three Cubes A1, A2 and A3 (say) Am. Similarly for Cubes B1, B2, B3; C1, C2, C3 and D1,D2, D3.

ii) Mean Compressive Strength of four samples A, B, C & D (Average of Cube Strength Am, Bm, Cm and Dm) should comply with the limits in Col. 2 of Table 11 of IS 456:2000.

iii) Am, Bm, Cm and Dm should each comply with the limits in Col 3 of Table 11 of IS 456-2000.

16.4 NOMINAL MIX CONCRETE - ACTION IN CASE OF FAILURE OF CONCRETE IN MANDATORY CUBE TESTS

Action to be taken shall be as indicated in Clause 5.4.10 of Chapter 5 of CPWD Specifications (Copy at Annexure 16.11.)

16.5 DESIGN MIX CONCRETE - ACTION IN CASE OF FAILURE OF CONCRETE IN CUBE TESTS

As indicated in Clause 17.3 of IS 456-2000 extracts at Annexure 16.10, in case of doubt regarding the grade of Concrete used, either due to poor workmanship or based on results of Cube Strength tests, Core Test and / or Load Test may be carried out as described in Clauses 17.4 and 17.6 respectively of IS 456-2000. As given in Clause 17.7 of IS 456-2000, concrete members other than flexural members should be preferably investigated by analysis. As an alternative to Core Tests, Non destructive Tests as explained in Clause 17.8 of IS 456-2000 may be carried out for estimating the strength of concrete in a structure. Any of the non-destructive test methods may be adopted subject to agreement on acceptance Criteria before testing.

SECTION 17

EXTRA, SUBSTITUTED AND DEVIATED ITEMS OF WORK

17.1 DEVIATION

Deviation means deviation in quantities of items, i.e. where there is increase or decrease in the quantities of items of work in the agreement. In other words, the nomenclature of item of work remains the same but the quantities vary over those provided in the agreement. The powers of the officers to approve such deviations in quantities of agreement items are given in SOP. These powers, to be exercised with Finance Concurrence, are for quantities over and above the limits provided in the Contract for which rates have been stipulated.

17.2 PRIOR SANCTION OF COMPETENT AUTHORITY NECESSARY – DEVIATED QUANTITY

17.2.1 No deviation in the quantity of any item over and above the limits provided in the Contract and for which rates for payment to the Contractor have been stipulated should be made at site without the prior in-principle approval of the competent authority (Ref. SOP)

17.2.2 The Site Engineer in charge of the work shall be responsible to assess the anticipated deviation and to initiate Deviation Item Statement for the work to be done in excess of the agreement quantity of any item including the excess permitted as per Contract for which rates have been stipulated, well in advance. They shall allow the execution of work in excess of the agreement quantity with permissible deviation for which rates have been stipulated in the contract, only after the excess over the agreement quantity with permissible deviation as mentioned above has been approved in-principle by the competent authority.

17.2.3 The fact that the deviations are shown in the approved plans through modifications should not be construed as having the sanction of the competent authority. Prior concurrence of the Competent Authority as per SOP should be taken for making deviations from the approved plans, on the basis of which estimates have been framed and tenders called for.

17.2.4 Pending approval of the Competent Authority for revised rate payment for the work done in excess of the quantity upto which unit rates have been specified in Clause 12.2 of GCC will be allowed by the Bill paying authority only at 75% of the Contract (BOQ) rate for that item. Efforts should be made to obtain the approval of competent authority expeditiously for the revised rate applicable to such quantity so as to regularize the payment to the Contractor.

17.3 EXTRA / SUBSTITUTED ITEMS

17.3.1 Extra items of work are items, which are completely new and in addition to the items in contract.

17.3.2 Substituted items are items which are taken up in lieu of those already provided in the contract. These are generally with partial modification in items of work in the contract. If an agreement item is completely changed, the new item taken up in lieu of it is an Extra item.

17.3.3 Wordings of extra / substituted items sanctioned by competent authority should be properly formulated so as to reflect the exact mode of execution in the field.

17.3.4 No extra / substituted item should be executed without the prior in principle approval of the Competent authority as per SOP.

17.3.5 Till sanction of rates of Extra/Substituted items by the Competent Authority as per SOP, the contractor may be paid @ 75% of the rates assessed by Bill Passing Officer for such items.

17.3.6 The payment of extra item and deviation item beyond the permissible limit for which rates have been stipulated in the agreement will be worked out at based on market rates prevailing at the time of commencement of execution of these items. For substituted items the agreement rate of the original item will be adjusted for the difference in market rates of original and substituted items. (Refer Clauses 12.2 and 12.3 of Clauses of Contract)

17.4 FIXATION OF RATES FOR DEVIATED / EXTRA / SUBSTITUTED ITEMS

Rates in all these cases are to be worked out at market rates by the contractor alongwith proper analysis.

For checking the reasonableness of rates submitted by the Contractor for deviation by way of Extra item, Substituted items and Deviated Quantities beyond permissible limit for which rates exist in the contract the Market Rate Analysis will be on similar lines as adopted in the justificaion of tender as per para 4.9.

17.5 RATES FOR DEVIATION (EXTRA / SUBSTITUTED/ DEVIATED QUANTITIES) ITEMS ALLOWING PROFITS & OVERHEADS ON STIPULATED MATERIALS SUPPLIED TO THE CONTRACTOR

Where materials are supplied by RITES free or at fixed rates, 5% of Cost of such material may be added as profit and over heads, while analysing rates for such items. The percentage represents the following charges:

i) Office Expenditure of the contractor

ii) Storage of materials

iii) Handling expenses and other incidental charges

The percentage does not include transport charges

17.6 MEASUREMENTS FOR INADMISSIBLE ITEMS

In case of items which are claimed by the contractor but are not admissible according to RITES, measurements should be taken and recorded in the site register for record purposes only under the signature of RITES official concerned and without prejudice so that in case it is subsequently decided to admit the contractor’s claims, there should be no difficulty in determining the quantities of such work done.

17.7 DEVIATIONS IN QUANTITIES OF BOQ ITEMS

17.7.1 Deviation Limits (D.L.) for all items will be indicated in Schedule ‘F’ of Contract Agreement.

Following DLs are recommended to be stipulated in Schedule F.

i) For Non Foundation Items plus 25%; Minus No limit

ii) For Foundation Items plus 100%; Minus No limit

Note : For item of Earthwork individual classification quantity can vary to any extent. But overall Deviation Limits will be as above.

For quantities in excess of the limits for which rates have been stipulated in Clause 12.2 (C) of RITES’ GCC for works, approval of the Competent Authority (as per SOP) will be required to be taken for increase in quantities and revised rates for such increased quantities.

SECTION 18

FAIR WAGE CLAUSE AND CONTRACTOR’S

LABOUR REGULATIONS

18.1 PROVISIONS OF ACT As required under Section 2 (i) (g) of the Contract Labour (Regulation and Abolition) Act, 1970, Principal Employer has to be identified as he will be held accountable for compliance with the provisions of the Act. In CPWD, the Ministry concerned has declared every Divisional officer (Executive Engineer etc) or any Sub-Divisional Officer in charge of an independent Sub Division as a Principal Employer. Since RITES carries out works on behalf of Clients, as far as possible RITES should persuade the Clients to register themselves as Principal Employer. In case the client does not agree to register himself as the Principal Employer, it will be necessary for RITES to register itself as the Principal Employer. In pursuance of Section 12 of the Contract Labour (Regulation & Abolition) Act, 1970 no Contractor to whom the said Act applies, shall undertake or execute any work through contract labour except under and in accordance with a license issued in that behalf by the Licensing Officer.

In all the contracts awarded by RITES, where RITES is registered as the Principal Employer for the labour engaged by the contractor it becomes the duty of Project Manager of RITES to ensure that the Contractor Complies with the provisions of Contract Labour (R&A) Act, 1970 and Rules made there under.

18.1.1 The Contract Labour (Regulation and Abolition) Act, 1970 applies to every establishment in which 20 or more workers are employed or were employed on any day of the preceding 12 months as contract labour and to every contractor who employs or who employed on any day of the preceding 12 months, 20 or more workmen. The Act also provides for registration of establishment and Licensing of Contractors. Accordingly, every Principal Employer is to make an application to the Registering Officer for registration of the establishment. Section 9 of the Act lays down that no Principal Employer of an establishment, required to be registered under Section 7 but which has not been registered within the prescribed time limit, shall employ contract labour after the date.

18.1.2 It has been clarified by the Ministry of Labour that the 20 contract labourers can be through one or more contractors and it does not matter that a single contractor may not be employing 20 or more contract workers. It is sufficient that a total of 20 contract workers (through contractors) are working in an establishment of Principal Employer.

18.1.3 If a contractor employs 20 or more workmen on any day in the preceding year, the contractor is legally bound to take licence from the Licensing Officer concerned.

18.1.4 The fees to be paid for the grant of Certificate of registration shall be as prescribed under the Act. RITES will have the responsibility to ensure that the Contractors comply with the legal requirements mentioned above.

18.2 ACTS / OMISSIONS 18.2.1 The Appropriate authority in terms of Section 6(ii) of the RITES’ Contractors’

Labour Regulations to approve the list of acts and omissions for which fines are liable to be imposed is the “Chief Labour Commissioner”.

18.2.2 The list of Acts and Omissions for which fines can be imposed on workers by contractors is given in General Conditions of Contract under Proforma of Registers forming part of RITES Contractors Labour Regulations.

18.3 FAIR WAGES 18.3.1 ‘Fair Wages’ under RITES Contractors’ Labour Regulations means wages fixed

and notified under the provisions of the Minimum Wages Act, 1948 from time to time. The Fair Wages Clause is applicable only to those employees whose wages do not exceed the limit prescribed in the Act.

18.3.2 It should be the duty of the Labour Officer to make enquiries about non-payment of wages for preventing claims of Contractor’s labour falling in arrears. For this purpose, it is essential that Labour Officer should make frequent site inspections as this is the only way of contacting labour in the field and thus preventing wages falling in arrears. Any case of accumulation of arrears should be specifically brought to the notice of Engineer in Charge.

18.3.3 The responsibility of identifications of labour rests with the Labour Officer. He will, however, be afforded all assistance by the Site Engineers.

18.3.4 The contractor shall also abide by the provisions of the Child Labour (Prohibition and Regulation) Act, 1986. No labour below the age specified in the Act shall be employed on the work.

18.3.5 Normally working hours of an employee should not exceed 9 hours a day. The working day shall be so arranged that inclusive of interval of rest, if any, it shall not spread over more than 12 hours a day.

18.3.6 When a worker is made to work for more than 9 hours on any day or for more than 48 hours in any week he shall be paid overtime for the extra hours put in by him at double the ordinary rate.

18.4 RESPONSIBILITIES OF FIELD OFFICERS

18.4.1 In order to ensure regular payment of wages to the labour by the Contractor, the Fair Wages Clause 19B (d) provides that the Site Engineer concerned shall have the right to deduct from the money due to the contractor any sum required or estimated to be required for making good the loss suffered by the workers by

way of non-payment of wages or of deductions from his or their wages which are not justified by the terms of the contract or non observance of the Labour Regulations. In view of this provision and other provisions of Fair Wage Clause as embodied in the agreement, it is incumbent upon the Site Engineer to see that the labour employed by the Contractor is paid regularly and no arrears are allowed to accumulate on this account. For this purpose, they should see that the returns prescribed are duly submitted by the contractor and they should scrutinize them with a view to see that the contractor is duly fulfilling the conditions of the contract.

18.4.2 In case a Site Engineer finds it difficult to take action on the advice tendered by the Labour Officer for any reasons, the matter should immediately be reported to the Engineer in Charge concerned and obtain direction from him.

18.4.3 In terms of provisions under Clause 45 of the Contract in Standard Tender Documents, Security Deposit of the work shall not be refunded till the Contractor produces a clearance certificate from the Labour Officer. As soon as the work is virtually complete the contractor shall apply for the clearance certificate to the Labour Officer under intimation to the Engineer in Charge. The Engineer in Charge, on receipt of the said communication, shall write to the Labour Officer to intimate if any complaint is pending against the contractor in respect of the work. If no complaint is pending on record till after 3 months after completion of the work and / or no communication is received from the Labour Officer to this effect till six months after the date of completion, it will be deemed to have received the clearance certificate and the Security Deposit will be released, if otherwise due.

18.5 RESPONSIBILITIES OF CONTRACTOR

18.5.1 The Contractor shall comply with all the provisions of Minimum Wages Act, 1948, Contract Labour (Regulation and Abolition) Act, 1970 and rules framed there under, Building and other Construction Workers (Regulation of Employment & Conditions of Service) Act, 1996, Building and other Construction Workers’ Welfare Cess Act, 1996 and other labour laws affecting contract labour that may be brought into force from time to time.

18.5.2 It shall be the duty of the Contractor to ensure the disbursement of the wages in the presence of the Site Engineer or any other authorised representative of the Engineer in Charge who will be required to be present at the place and time of disbursement of wages by the Contractor to workmen.

18.5.3 The Contractor shall obtain from the Site Engineer or any other authorized representative of the Engineer in Charge, as the case may be, a certificate under his signature at the end of the entry in the prescribed “Register of Wages” or the “Wage -cum- Muster Roll” as the case may be, in the following form:-

“Certified that the amount shown in column No. ________ has been paid to the workman concerned in my presence on ___ at _____

18.6 DEDUCTIONS TO BE MADE FROM CONTRACTOR’S BILLS

18.6.1 The Labour Officer or other persons authorized as aforesaid shall submit a report of result of his investigation or enquiry to the Engineer in Charge concerned indicating the extent, if any, to which the default has been committed with a note that necessary deductions from the contractor’s bill be made and the wages and other dues be paid to the labourers under Clause 13 of these regulations. Actual payment to labourers will be made by the Site Engineer after the Engineer in Charge has given his decision on such appeal.

18.6.2 The Site Engineer shall arrange payments to the labour concerned within 45 days from the receipt of the report from the Labour Officer or the Engineer in Charge as the case may be.

18.6.3 The Contractors working for RITES are required to pay to the labour employed by them either directly or through sub-contractors, Fair Wage as defined in RITES’ Contractor’s Labour Regulations.

18.6.4 No deduction on account of Jamadar’s commission charges etc. is to be made from the wages of labourers.

18.7 PROCEDURE IN CASE OF ACCIDENTS TO CONTRACT LABOUR

18.7.1 In case of fatal accidents or accidents involving permanent total disability, the accident must invariably be reported to the Engineer in Charge, with a copy to the Labour Officer, immediately after the accident.

SECTION 19

ARBITRATION AND LITIGATION

19.1 APPLICATION OF ARBITRATION CLAUSE 25 OF STANDARD CONTRACT FORM

19.1.1 Clause 25 of the RITES STANDARD CONTRACT Form provides for appointment of an Arbitrator in case of disputes relating to certain matters, specified therein arising at any stage, whatever, between the parties. This, however, does not apply to action taken under clauses where the decision of the specified officer is final and binding on the Contractor as well as those stipulated as “Excepted Matters”.

19.1.2 The Contractor cannot have recourse to a court of law for the redress of his grievances, unless he has exhausted the channel of arbitration as envisaged in relevant arbitration clause. Even if the contractor goes to court, the Engineer in Charge should take a plea that the contractor being a signatory to the agreement containing arbitration clause, any dispute arising out of or in any way connected with the execution of work has first to be settled by reference to arbitration.

19.1.3 RITES staff having to deal with Arbitration cases as Claimant or Respondent or as an Arbitrator, under Arbitration and Conciliation Act, 1996 are, advised to familiarize themselves with the contents of the Booklet. “Guidelines for Arbitration under Arbitration and Conciliation Act, 1996” issued by RITES in June 2007.

19.2 APPLICATION FOR APPOINTMENT OF ARBITRATOR

19.2.1 A standard application form for seeking appointment of arbitrator has been evolved. Contractors seeking arbitration should apply in this form Annexure 19.1.

19.2.2 The application form in triplicate duly filled in shall be submitted by the Contractor to the Appointing Authority specified in Schedule F through the Engineer in Charge. All the three copies of the application form shall be accompanied by a statement of claims in the matter indicated in the application form.

19.2.3 The party invoking arbitration clause should give information enough to justify existence of a dispute. For this purpose the party has to give details about the demand having been made and its refusal by the other party. It is held by Courts of law that a “dispute” implies an assertion of right by one party and repudiation thereof by the other. Existence of a dispute is a condition precedent to arbitration. If there is no existence of dispute, there cannot be any right to demand arbitration.

19.2.4 In view of the above, Divisional Head / Director (RITES), before appointing an arbitrator, should ensure that existence of dispute (s) has been established. For this purpose the party invoking arbitration clause should be asked to produce documentary evidence of its claims having been duly lodged with the other party within the stipulated time and refusal by the other party thereto to accede to them. It will be observed from Clause 25 of Contract that the Contractor has to first raise his claims with the Engineer-in-charge and if not satisfied with his response, should refer the disputes to the Appellate Authority. It is only if the contractor is not satisfied with the decisions of the Appellate Authority that the Contractor can refer to the Appointing Authority for appointment of the Arbitrator.

19.3 PREPARATION FOR ARBITRATION CASES

19.3.1 The following steps should be taken by the officer nominated by the Engineer in Charge with a view to properly defend the Arbitration cases:

i) As soon as a Contractor applies for arbitration, Site Engineer should prepare a detailed history sheet containing the data regarding estimate, designs and drawings, NIT, agreement, extra and substituted items, items accepted at reduced rates, extension of time / notices issued under clause 3 etc and send a copy to the Engineer in Charge.

ii) List out important letters in respect of the issues raised by the contractor and the important notices by as well as to the contractor and place these originals in a separate file. In the routine file, true copies of these documents may be placed.

iii) Keep original agreements, plans, designs including the calculations for these, if available, details of measurements and analysis of rates attached to the technically sanctioned estimates, all the MBs connected with the work, Hindrance Register, Site Order Book, Cement Register, Reinforcement Registers etc. in safe custody of the Site Engineer along with originals listed in para (ii).

iv) The measurement books should be closed.

v) All the files connected with the work should be properly page-numbered stitched and sealed and kept by the Site Engineer along with the above record.

vi) If there are important situations or circumstances, the details of which are not available on the file but only known to the executive staff, their signed statements regarding the factual information should be obtained and kept on record, as after a lapse of time, they may not be available for personal discussions or they may be unable to recall past events.

vii) The Site Engineer may call the executive staff in charge of the work from their new stations for any information that he may need to collect by personal discussions, but only under orders from the Engineer in Charge concerned.

19.3.2 If the work has been completed, the final bill should be prepared as early as possible, in any case before the submissions are made to the arbitrator. The Engineer in Charge / Site Engineer should ensure that the bills are finalized immediately, if not already done.

19.3.3 In cases of claims against RITES, the Engineer-in-charge shall inform the authority with whom Extra / Substituted / Deviations / Reduced Rate items are pending, about the Arbitration case with a request to decide on the items urgently. The concerned Authority should ensure that all such pending items are finalized before Counter Statement of Facts of RITES is submitted.

19.3.4 A detailed note on the facts of the case dealing with each and every item of the claims and / or counter claims should be prepared by the Site Engineer along

with reference to various relevant documents supporting RITES case or negating the Contractor’s claim.

19.4 PROCESSING OF CONTRACTOR’S APPLICATION

19.4.1 The Site Engineer shall send one copy of the application of contractor to Engineer in Charge for forwarding to the Competent RITES official (Ref. SOP) with the under noted information, without waiting for a reference from the Engineer in Charge, within 7 days from the date of receipt of Contractor’s application in his office. Engineer in Charge should send his report to SBU Head / Divisional Head / Director without delay.

a) An attested copy of relevant arbitration clause.

b) A note regarding verification of the factual data furnished by the Contractor in the application form.

c) Brief comments on each claim of the Contractor. While giving such comments, the admissibility of the claims in the light of arbitration clause, existence of dispute and provisions under Limitation Act, should be kept in view and commented upon.

d) Statement of Counter Claims of RITES, if any. However, if counter claims are not readily enlisted or available, comments on contractor’s claims should not be delayed. Counter Claims should be supported by full details.

19.5 APPOINTMENT OF ARBITRATOR

19.5.1 The Standard form of appointment letter at Annexure 19.2 is to be used for appointing an Arbitrator by the Authority.

19.5.2 The person thus appointed shall be the sole Arbitrator and his award shall be final and binding on all parties to the contract, unless it is set aside by the Court.

19.5.3 Whenever a notice for appointment of an arbitrator is received from a Contractor in terms of Clause 25 of Contract, the Authority competent to appoint the Arbitrator in terms of contract should process the case so as to appoint an arbitrator within 30 days from the receipt of such a notice. The time limit of 30 days for appointment of arbitrator should be strictly adhered to, failing which the Appointing Authority may lose its right to appoint the arbitrator.

19.5.4 In cases, where no agreement exists or where no clause exists in an agreement for referring the matter of dispute to the arbitration by a person to be appointed by Divisional Head / Director in terms of SOP Item 9.2 the disputes should not be referred to arbitration by mutual consent and no agreement should be drawn up for this purpose.

19.5.5 The authority of an appointed arbitrator does not become revocable except with the order of the court. It shall not be revocable by the death of any party or parties to the contract.

19.5.6 The draft letter for appointment of new arbitrator due to transfer or vacation of office by the old arbitrator shall be as per Annexure 19.3.

19.6 ACTION SUBSEQUENT TO APPOINTMENT OF ARBITRATOR

19.6.1 When the Arbitrator enters into reference and writes to the parties to the contract to file the statement of facts and counter statement of facts before him, the Site

Engineer should take prompt action to prepare the defence duly supported by adequate documentary evidence and witnesses and arrange for submission to the Project Co-ordinator who shall finalise the defence statement with the approval of the Engineer in Charge and send to the Arbitrator by the date specified by him.

19.6.2 Site Engineers should deal with submission of Counter Statement through Project Coordinator / Engineer in Charge with utmost urgency and priority within time limit laid down by the Arbitrator.

19.6.3 The Engineer in Charge should invariably follow the time limit set by the Arbitrator. However, in cases where they foresee some unavoidable delay in adhering to the time limit they should explain the position to the Arbitrator and obtain extension of time before the expiry of the stipulated date.

19.6.4 a) It should be noted that any plea / objection with reference to any requirement under the arbitration agreement, jurisdiction or any other aspect not taken before the arbitral tribunal cannot be taken before the Court of Law and a party shall be deemed to have waived its right to so object. In this regard, provisions under Section 4 of the Arbitration and Conciliation Act, 1996 are reproduced below.

“ A party who knows that -

a) any provision of this part from which the parties may derogate or

b) any requirement under the arbitration agreement,

has not been complied with and yet proceeds with the arbitration without stating the objection to such non-compliance without undue delay or if a time limit is provided for stating that objection, within that period, shall be deemed to have waived his right to so object.”

Therefore, all the possible pleas / objections should invariably be raised before the arbitral tribunal while defending the case well within the time.

b) In case of time barred claims, issuance of a No-claim Certificate by Contractor, acceptance and receipt of the final bill / payment by the Contractor and/or disputes / claims not raised in accordance with the Contract stipulations, objections/ plea that the arbitral tribunal does not have the jurisdiction should invariably be raised by RITES Officer concerned at the very beginning of the arbitral proceedings (i.e.) at the time of submission of the Counter Statement / Statement of defence and also in the first hearing. In case the Arbitral Tribunal is exceeding the scope of its authority / reference, objection/ plea should be raised as soon as any matter / claim beyond the scope of authority / reference is raised during the arbitral proceedings. Provision under Section 14 of the Arbitration and Conciliation Act, 1996 may also be referred to in this regard.

19.6.5 In case of arbitration proceeding where RITES have signed the Works Contract with the Contractor for and on behalf of the Employer (Client), it should be made amply clear to the arbitrator in the arbitral proceedings that RITES is only the custodian of deposit funds provided by the Principal Employer / Client / owner for disbursement of payment to Contractors from time to time and under no circumstances RITES can and will be able to pay the arbitration award, if any, to the Contractor / Claimant on their own.

19.6.6 There is need for special care in fighting the arbitration cases on behalf of RITES since once the Arbitrator gives his award, it will be very difficult to get it set aside in a Court of Law except in circumstances listed in sub sections (2) and (3) of Section 34 of Arbitration and Conciliation Act, 1996. These sub sections basically refer to items which do not have a bearing on the merits of the case under Arbitration. As far as the merits of the Arbitration Award are concerned, following is the legal position contained in a judgement of the Supreme Court.

“An Arbitral Tribunal is a domestic Tribunal of the choice of the parties. Its decisions do not admit of interference by Civil Courts except on very special grounds. The Arbitrator’s power is not taken away or the efficacy and finality of his award whittled down by reason of any error in the Award. An erroneous decision of the Arbitrator is as much binding as a correct one. Courts do not sit in judgements over the Awards as if in appeal. An Award can be interfered with when it is vitiated by misconduct or suffers from errors of law manifest on the face of the record. It is no misconduct on the part of the Arbitrator to come to an erroneous decision whether his error is one of law or fact. There is no appeal from his verdict. The Court cannot review his Award and correct any mistake in his adjudication, unless illegality of the award is apparent on its face”.

Provisions contained in Para 19.13.1 below may also be seen for better appreciation of this matter.

19.7 ENGAGEMENT OF LAWYERS

19.7.1 Where it is considered desirable to avail of the services of a local lawyer to conduct a case on behalf of RITES, fees may be paid keeping in mind the powers under SOP. It is desirable that a lump sum fee may be fixed with payment in installments such as after filing petition / reply and after final disposal of the case instead of breaking it into elements such as for legal advice on Counter Statement, for appearing in each hearing etc.

19.7.2 However, the mere fact that legal counsel has not been able to attend before the arbitrator for a particular date of hearing should not ordinarily call for adjournment of whole case. In such circumstances, the arbitrator may be requested to deal with the claims involving technical and non legal points. For hearing on legal issues, the Arbitrator may be requested to adjourn the case to another date.

19.7.3 In all cases, where the value of the claims is Rs.Ten lacs or more and where legal matters are involved, a lawyer may be engaged to defend the cases with the help of the Engineer in Charge concerned before the Arbitrator. In all cases, which are defended by the lawyer, the Engineer in Charge should be in touch with him from the very early stage and should ensure that the dates and timings for hearings are fixed by the Arbitrators to suit the availability of the lawyer. The Engineer in Charge concerned should make it a point to contact the counsel and discuss the arbitration case with relevant documents. A copy of the detailed note made out by the Engineer along with copies of the documents referred to therein should also be forwarded to the lawyer with a draft counter statement / counter claims. Engineer in Charge concerned should decide whether a particular arbitration case be defended by himself or by the Project Co-ordinator/ Engineer and with or without the assistance of the lawyer.

19.7.4 All the documentary evidence in the case has to be examined carefully and placed before the Arbitrator as the situation and circumstances in each hearing demand, stressing the points of the RITES to counter-act the Contractor’s claims.

19.7.5 Where the Contractor’s claims are based on entries in the measurement books recorded by RITES officer who may have in rare cases colluded with the Contractor and made false entries, it is necessary that sufficient evidence contesting the correctness or veracity of the entries in the Measurement Books should be placed before the Arbitrator in support of the contention of RITES and special care should be taken with regard to selection of the witnesses and evidence to be placed before the Arbitrator.

19.8 PRODUCTION OF OFFICIAL DOCUMENTS BEFORE COURT / ARBITRATORS

19.8.1 In the course of legal / arbitration proceedings, the Court /Arbitrators may either themselves or at the instance of the opposite party, require production of official records, e.g. files, correspondence, register or the other documents which are supposed to have a bearing upon the case. While the Court / Arbitrator may require production before them of any document relevant to the case, it must be checked with Legal experts if in terms of Sections 123 &124 of the Indian Evidence Act, RITES can claim privilege for not producing documents, the disclosure of which may be considered detrimental to public interest. If legal advice agrees, such privilege may be claimed in respect of all “unpublished records” of RITES (i.e. documents which have not come to the knowledge of the other party). For this purpose “Notes Portion” of a file and all communications and letters other than those emanating from or sent to the party (original or copies) should be treated as “unpublished” records of RITES in respect of which privilege, as aforesaid, can be claimed. This will be done by producing before the court / arbitrators declaration signed by the Competent Authority of RITES stating that documents referred in the declaration contain unpublished official information and that the privilege in respect of the same is being claimed as their disclosure would be detrimental to the public interest.

19.8.2 RITES officer may appear as a witness, if summoned by the Arbitrator at the request of a contractor also. He is expected to give true and correct facts of the case. Deterrent action should be taken against the officials concerned, if they are found responsible for giving wrong evidence or concealing material facts in an arbitration case.

19.9 DEFAULT OF A PARTY

If the claimant fails to communicate his statement of facts within the time determined by the Arbitrator, without showing sufficient cause, the Arbitrator can terminate the proceedings. If the respondent fails to communicate his counter statement of facts within the time determined by the Arbitrator, the Arbitrator can continue the proceedings without treating the failure in itself as an admission of allegations by the claimant. In case a party fails to appear at hearing or fails to produce documentary evidence, the Arbitrator may continue the proceedings ex-parte and make the award based on the evidence before him.

19.10 MAKING OF AWARD

19.10.1Whenever an award is made by an Arbitrator appointed otherwise than through a court and if under the award, some money is payable to RITES by the Contractor, the Engineer in Charge should first supply to the Arbitrator, stamp papers of appropriate value, as may be asked for by the Arbitrator according to amount of the award, as per the rules of the State, where the award is likely to be

made by the Arbitrator and request the Arbitrator to write the award on the stamp papers (Non-judicial) so supplied to him.

19.10.2 It is open to objection in a court of law to write the award on ordinary paper and afterwards rewrite it on the stamp papers. The award should therefore, always be obtained on the stamp papers. It is for the Arbitrator to say as to which party should supply the stamp papers in such cases.

19.10.3As per the provision in the arbitration clause, in all cases the arbitrator shall have to give the reasons for the award, against each claim.

19.11 ACCEPTANCE OF AWARD

19.11.1Schedule of Powers shows the powers delegated for acceptance of arbitration awards.

19.11.2Since, for filing objections against an award, the period of limitation prescribed under the Arbitration and Conciliation Act, 1996 is three months from the date of receipt of award by the party, the decision regarding acceptance of an arbitration award should be taken by the competent authority on priority basis.

19.11.3The procedure followed in scrutinizing the awards consists of examination on merits from factual, technical and legal points of view. The Engineer in Charge should, within 7 days of receipt of arbitration award, send a self- contained reference together with a copy of the agreement, a copy each of the statement and counter statement of facts and claims, a copy of the award, financial statement and his comments to the Competent Authority for his decision.

19.11.4Payment should be made to the contractor after obtaining an undertaking from the contractor for acceptance of the award in full and final settlement. Immediate payment or payment within the grace period stipulated by the Arbitrator ensures that RITES/Employer is absolved of the liability of payment of interest on the amount awarded. The undertaking is to be obtained from the contractor on stamp paper.

19.11.5Immediately on taking a decision to accept the award by the Competent Authority, a communication as per Annexure 19.4 should be issued to the contractor intimating the fact of such acceptance and offering of payment in terms of the award subject to the contractor communicating his acceptance of the award within the specified time. Payment so made would bar the contractor from suing again in respect of the same dispute.

19.11.6Engineer in Charge should make payment to the Contractor in terms of the award within a period of 30 days from the receipt of acceptance of award from the Competent Authority and intimate the actual date of payment of award to it. Payment should be made within the time limit stipulated by the Arbitrator in his Award.

19.11.7The payments made to the Contractors on the arbitration awards made by the Arbitrator or by Court are to be taken as part of the cost of work normally payable by the client, as per standard provisions in the Agreement between RITES and the Client which should be referred to for details.

19.11.8The arbitration award means the total award including the interest awarded by the arbitrator. The amount of such interest is to be worked out upto the date specified in the award. Therefore, the amount of the interest has to be taken into consideration while deciding the authority competent to accept the award. However, in case no fixed date is specified in the award and the interest is to be

paid upto the date of actual payment of award amount to the contractor, the likely date of such payment may be taken into consideration. There may be a situation that after acceptance of the award by the competent authority, the actual payment to the contractor gets delayed beyond the anticipated date due to some unavoidable circumstances and the amount of interest increases to an extent that the total amount of award exceeds the power of acceptance of the authority that accepted the award. In such cases, the payment may be made to the contractor as early as possible and the case may be submitted to the next higher authority, competent to accept the increased amount of award, for ex-post facto approval.

19.11.9In cases where the decision taken is to challenge the award, the award amount should not be deposited in the Court unless otherwise directed by the Court. This is in view of the fact that the liability to pay further interest does not cease even if the award amount is deposited in Court.

19.11.10Whenever amount of an arbitration award is deposited in court; intimation to this effect should simultaneously be given to the contractor.

19.12 REVIEW OF ARBITRATION AWARD

19.12.1 In all arbitration cases where awards of the Arbitrators go against RITES (whether by upholding the claims of the contractors or by rejecting the counter claims of RITES), detailed reasons and lapses, if any, on the part of concerned officials due to which the awards have gone against RITES should be advised to Director (Projects) by the SBU concerned and should be gone into in detail by the official nominated by Director (Projects). The official should send his recommendations to Director (Projects) on the issue of fixing of responsibility for taking action against the officers, wherever necessary and on any modifications required to be made in the Standard format of Tender Documents as well on the need for issue of instructions to SBU Heads to avoid recurrence of similar lapses in future.

19.13 SETTING ASIDE OF AWARD

19.13.1The question of challenging the arbitral award in a court of law should be considered very carefully. Under Section 34 of Arbitration and Conciliation Act, 1996, there are very few grounds available to challenge the arbitral award as follows:-

a) The party making the application furnishes proof that -

i) a party was under some incapacity, or

ii) the arbitration agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, under the law for the time being in force, or

iii) the party making the application was not given proper notice of the appointment of an arbitrator or of the arbitral proceedings or was otherwise unable to present his case, or

iv) the arbitral award deals with a dispute not contemplated by or not falling within the terms of submission to arbitration, or it contains decisions on matters beyond the scope of submission to arbitration,

provided that, if the decisions on matters submitted to arbitration can be separated from those not submitted, only that part of the arbitral award

which contains decisions on matters not submitted to arbitration may be set aside; or

v) the composition of the arbitral tribunal or arbitral procedure was not in accordance with the agreement of the parties, unless such agreement was in conflict with a provision of Part I of the Act from which the parties cannot derogate, or, failing such agreement, was not in accordance with Part I of the Act, or

b) The court finds that -

i) the subject matter of the dispute is not capable of settlement by arbitration under the law for the time being in force, or

ii) the arbitral award is in conflict with the public policy of India.

19.13.2 Since almost all the awards are interest bearing, the question of depositing the awarded amount in the court should invariably be examined by the Competent Authority (Refer SOP) to save payment of interest. Engineer-in-Charge should give specific recommendations in this respect while recommending challenging of awards in the case of interest bearing awards.

19.13.3 An application for setting aside an arbitral award has to be made within three months from the date on which the party making that application had received that arbitral award or from the date on which his application for correction in or interpretation of arbitral award in terms of Section 33 of the Arbitration and Conciliation Act, 1996 was disposed of by the arbitral tribunal / arbitrator. Under section 33, a party can make an application for correction or interpretation within thirty days of receipt of the arbitral award. In terms of Section 34 (3) of the Arbitration & Conciliation Act, 1996, even if the Court is satisfied that the Applicant was prevented by sufficient cause from making application within the said period of 3 months the Court may entertain the application within a period of 30 days only but not thereafter.

19.13.4 If the award is found to be in order from all aspects, it need not and should not be challenged. Legal proprieties and prudence demand that such matters should be examined by a competent lawyer, if the Competent Authority feels that there is a strong case for challenging the Award. This reference for legal advice should be taken with least delay.

19.14 PERIOD OF LIMITATION

19.14.1 It is a term of the RITES Contract in the relevant arbitration clause (Clause 25) that if the contractor does not make any demand for arbitration in respect of any claim (s) in writing within 120 days of receiving intimation from RITES that the final bill is ready for payment, the claim of the contractor(s) will be deemed to have been waived and absolutely barred from the liabilities under the contract in respect of these claims. In spite of above specific provision in the arbitration clause, the Competent Authority should not withhold appointment of arbitrator on the ground that the request was received after the expiry of the specific period mentioned in the relevant arbitration clause of the agreement, but should appoint the arbitrator clarifying in the letter of appointment of the arbitrator that the reference is without prejudice to the defence that may be raised by RITES regarding the tenability of the claim on all necessary and available grounds

including those of Limitation and the parties to the agreement will be free to raise the question of limitation before the Arbitrator. While examining the request for arbitration from a contractor or supplier or any claim in a litigation case, the Engineer-in-Charge should examine whether the claim of the contractor is time barred, in accordance with the provisions of the Limitation Act 1963. This point should be taken into consideration in preparing the defence.

19.14.2 The question as to whether any dispute had become time barred will itself be a dispute which can only be settled by arbitration. The stage of reference is not concerned with the question whether the claim of the party to the arbitration agreement is barred by the Law of Limitation and that question falls within the purview of the arbitrator to whom the dispute is referred. The reference of the disputes, even though seemingly time barred, would therefore be made to the arbitrator. The parties would be free to agitate the question of Limitation before the arbitrator, who would no doubt consider this point and give his award. However, it can be clarified in the letter of appointment of the arbitrator that the reference is without prejudice to the defence that may be raised by RITES regarding the tenability of the claims on all necessary and available grounds including those on limitation.

19.14.3 In the case of any appeal before the Division Bench, the appeal is to be filed within thirty days of pronouncement of judgement by the High Court. If for any reason, delay occurs, the Court has to be approached for condo nation of delay in filing the appeal, and RITES has to explain the day to day delay, to the satisfaction of the Court. Every care should therefore, be taken in handling such arbitration / court cases and it should be ensured that timely and prompt action is taken within the period of limitation.

19.14.4 There can be cases where RITES may have to file Arbitration claims against the Client and in rare cases against the Contractor. It has to be ensured that in such cases, the Arbitration Clause is invoked before the period of Limitation expires. The period of limitation commences from the date the cause of action for the claim arises. For this purpose, the date when cause of action has arisen is when the amount has been claimed by RITES in writing from the other Party. It may be mentioned that such a claim letter should be issued by RITES within the period, if any, stipulated in the contract with the other Party. Issue of formal letter to the other Party for appointment of Arbitrator / filing a suit in the Court of Law where there is no Arbitration clause in the Agreement with the other Party, should be done by RITES within the period of Limitation. On works Contracts, RITES not falling under the definition of a Government Department, the Period of Limitation is three years. Thus, if the other Party, receiving letter of claim from RITES goes on corresponding with RITES without giving any specific acknowledgement by it’s Competent Authority accepting its liability to pay the claimed amount, RITES should invoke the Arbitration clause by asking for the claims to be referred for Arbitration or file a suit, as is applicable within three years from the date RITES sent the claim letter. In case, the other Party’ has categorically acknowledged its liability in writing, a fresh period of limitation will start from the date of such acknowledgement by the other Party. It may be noted that for Government Department, the period of Limitation is 30 years and hence if the Client is a Government Department, it can invoke the provisions of Arbitration clause / file a suit against RITES within a limitation period of 30 years, whereas RITES will have a Limitation Period of only 3 years to pursue its claim against the Government Department. On the Period of Limitation, there can be different legal

views as to when it commences and when it ends and hence, where necessary, RITES should take legal advice.

19.15 COURT CASES

19.15.1 Before any action is taken in a court of law against some party for amounts due to RITES, a reliable report of its financial standing should be obtained and simultaneously the expenditure likely to be incurred to recover this amount should be carefully estimated so that unnecessary expenditure on litigation may be avoided, where there is no reasonable chance of recovering the judgement debts from the party concerned.

19.15.2 Although it is the primary responsibility of the RITES official at the particular station where the case has jurisdiction, to ensure proper defence of the case, it is equally the responsibility of superior officers of RITES to keep constant watch over the progress of these cases and see that all such cases, at every stage, are processed properly so that the cases do not go against RITES interests by default resulting in financial loss etc to RITES.

19.15.3 The SBU Heads should therefore, see that all such cases are reported to the Executive Director concerned as soon as a suit against RITES is threatened by any aggrieved party or RITES itself intends to file a suit against a contractor or third party. The first report from the SBU Heads about such cases should give a brief description of the case and the steps which are being taken or have been taken for the proper defence or prosecution of the suit. Thereafter, fortnightly reports on each such case should be sent to the Executive Director detailing the progress of the case and further action taken or to be taken for its defence or its successful prosecution.

19.16 JUDGEMENTS IN COURT CASES

The progress of the cases in the Court should be watched closely by the SBU Heads in charge of the cases. It will be the responsibility of the SBU Head to send a report to the Executive Director concerned within 48 hours after the Court has delivered a judgement which is addressed to RITES. It shall also be his responsibility to apply for and furnish with minimum delay, a copy of the judgement and all other relevant papers, his own comments and the opinion of the counsel conducting the case on the advisability of filing an appeal / revision petition to enable the Executive Director concerned to come to a decision whether an appeal / revision petition should be filed or not. The appeal / revision petition should be filed, if it is decided to be filed, within the time limit laid down by Law.

19.17 LEGAL CHARGES ON CIVIL SUITS / ARBITRATION CASES

19.17.1The costs and expenses incurred on civil suits / arbitration cases in connection with the execution of Deposit Works for Clients may be divided into categories given below:

i) The amount of the claim for which a decree / award is given.

ii) The amount of incidental costs incurred by RITES in connection with the court / arbitration case.

19.17.2 The decretal award amount of the claim vide item (i) above should be debited in all cases to the works concerned and the charges referred to the client. As

regards (ii) also the amount should be borne by the Client on whose behalf the work is undertaken on the ground that the action of RITES was as agent and taken in the interests of the work.

19.17.3 When, however, it is established that the law suit / arbitration proceeding has been caused by a deliberate act of an employee of RITES for his personal gain, the charges should be adjusted by recovery from the individual concerned after taking legal advice; If it is determined to be a case of organizational failure of RITES, and the client has reservation in including the Cost of such items as Cost of Work, the extent to which item (i) and (ii) can be claimed under “Professional Indemnity Insurance” should be looked into.

19.18 DOCUMENTATION FOR ARBITRATION CASES

19.18.1 In order to enable the Engineer in Charge to put up proper defence of the case, it is necessary that as and when the incumbents hand over charge of the office / transfer arbitration cases/ works, they should, unless all the facts and arguments are already explained in the written Counter Statement of Facts, prepare and place on record a self-contained note giving all the facts of the case and detailed comments on the claims.

19.18.2 In order to enable speedy disposal of cases, the Engineer incharge should not ask for adjournment to the extent possible.

19.18.3 The Engineer in Charge should always maintain a separate file on the disputes that have cropped up on the work during the progress of the work. In case of his transfer or relinquishing charge due to any reason, he should leave a self contained note on the file, at the time of his handing over charge, giving full background of all the disputes that have cropped up to the time of his incumbency, various developments thereon and the orders passed with due reference to the connected files. This should form a necessary and essential feature of all the handing over notes. Such files should be carefully preserved and become available at a later stage to the Engineer-in-Charge who is required to defend the case.

19.18.4 The transferred Engineer-in-Charge should make a comprehensive note about the pending claims of all the contractors for works in progress or completed in his time except those where counter statement of facts have already been prepared. The note should indicate the admissibility or otherwise of each claim and the orders of the competent authority. The note along with attested true copies of important letters mentioned therein should be handed over to his successor.

19.18.5 It should be made a rule in the Engineer-in-Charge’s office that all drawings issued with the NIT and those subsequently followed for execution of works are properly preserved and kept along with the contract documents. It should be ensured by the Engineer in Charge that suitable and adequate arrangements are made in his office regarding preservation of all important documents, registers etc. Besides others, a list of all such records should be prepared and kept handy so that correct position of each case may be known at any time to conduct the case on proper lines.

19.19 DISPOSAL OF OLD RECORDS

Norms for disposal of old records are at ANNEXURE 19.5. If there is any arbitration or court case, the relevant records should be retained till the final

disposal of arbitration case / court cases including appeals at various levels subject to minimum period stipulated in Annexure 19.5.

SECTION 20

RECORDS TO BE MAINTAINED AT SITE OF WORK

20.1 GENERAL PROVISIONS

20.1.1 Records to be maintained at site and the purpose of each have been given below along with the proforma. The records may be maintained in the form of a register or in a file form. The Engineer in Charge who has signed the Works Contract Agreement will arrange to supply the bound registers / loose - sheets as the case may be. The records should be maintained properly by the Controlling Site Engineers and preserved for a period of 3 years after financial closure of the project or upto the time all disputes / arbitration cases of the work are finally settled, whichever is later. In the case of bound registers, machine numbering of pages should be done to avoid tampering with the same. In the case of files formed of loose sheets proper folio numbering should be done. The registers / files should be reviewed periodically by the Engineer in Charge and other inspecting officers who should record their remarks. In no case will the register be issued by the same official who is to record details on the same on day to day basis as a Primary Record.

20.1.2 All communications of any appreciable consequence with Contractors by RITES which may become material evidence in a future arbitration or court case, should be sent by Registered Post / Ack. Due and exact copies kept carefully in RITES’ files. These will include all notices to the contractor under various Clauses of Contract.

20.1.3 Field Book of Site Engineers:-

a) Every Site Engineer should keep a Field Book in which will be entered any particulars with reference to the progress of works which may be relevant such as nature of soil in which foundations are to be provided, the quality of materials delivered at site of work, the quality of workmanship etc.

b) Remarks may also be made in the note book regarding the qualifications of subordinates, artisans and others employed by the Contractor on the works, the satisfactory or unsatisfactory operation of the contractors and in fact anything relating to the works in progress which should be brought to the notice of his superior officers, either being of general professional interest or as requiring immediate action or order.

c) The dates of all inspections with a list of the works, and a memorandum of the items inspected with details on various points considered worthy of remarks, should also be given and these note books should be considered as official records, to be produced whenever called for by superior officers. They should be neatly and systematically kept and indexed.

20.2 SITE ORDER BOOK (Format at Annexure 20.1)

It is meant for the Site Engineer and the supervisory Engineers to record their observations if they find any defective work going on or the Contractor not complying with the terms of Contract. This record should be in a bound register form with pages machine numbered. The Contractor’s representative at site should be shown the observations and asked to acknowledge the same in the Site Order Book. The action taken by the Contractor should be recorded against

the relevant item and this should be acknowledged by the Site Engineer. The Site Order Book should be maintained on the site of works and should never be removed there from under any circumstances. While forwarding the bills submitted by the Contractor for payment, the Site Engineer should consult the Site Order Book to ensure that the defects pointed out have been rectified. If defects continue to be there, action can be taken to issue Show Cause Notice as mentioned in Para 14.1.2.

20.3 PERIODIC INSPECTION OF WORKS - INSPECTION RECORD (Format at Annexure 20.2)

a) It is incumbent upon the various officers concerned with the work to inspect the works frequently to ensure that the works are in general being executed according to the design, drawings and specifications laid down in the contract and aspects of safety, environmental issues, accountal, maintenance of records, mandatory tests etc. All the visiting senior officers shall issue inspection notes, follow up action on which may be properly filed by Project Manager in one file. The instructions to be complied by the contractor shall be carried on to the Site Order Book/communicated to the contractor for ensuring compliance as dealt in para 20.2 above.

b) To watch action taken on the various inspection notes, consolidated record of inspection notes may be kept in format at Annexure 20.2 in the same file itself which may be reviewed by the inspecting officers during their subsequent visits.

c) Periodicity of inspections by various officers is laid down in Table below for adherence in general. The periodicity of inspections by SBU Head/ED may be deviated suitably in consultation with ED/Director, depending upon number of large projects in his Division, the nature, complexity, sensitivity, geographical spread and accessibility of the projects.

Periodicity of inspections per year

Awarded value of project

Project Coordinator SBU Head / GM ED

Upto Rs. 10 Crores 1 As considered necessary

As considered necessary

10 to 50 Crores 1 1 As considered necessary

More than Rs.50 Crores

2 1 Atleast 50% of the Projects

d) "Check features" on different types of works are enclosed in Annexure 20.2 for guidance of inspecting official. These represent most probable defects. Depending on time available, the inspection may cover additional items for

which 'CHECK LIST OF SPECIFICATIONS FOR CIVIL ENGINEERING WORKS' issued by RITES may be referred to.

e) The direct responsibility for ensuring proper quality of work as per approved specifications, designs and drawings rests with the construction team of Project Manager and his Engineering subordinates. The officer who records/test checks the measurements for an item of work will be responsible for the quality, quantity and dimensional accuracy of the work.

20.4 HINDRANCE REGISTER: (Format at Annexure 20.3)

This is a basic record for dealing with the application of the Contractor for Extension of Time. Whenever any hindrance comes to the notice of the Site Engineer or the contractor, a note of such hindrances should be recorded in the Hindrance Register which can be a bound one with pages machine numbered. The register should be reviewed by the supervisory officials whenever they come for inspection and by the Engineer in Charge atleast once in a month. The following points should be kept in mind while entering the particulars in the register.

i) The entry on date of start of hindrance and date of removal of hindrance should be made on the same day on which the hindrance takes place or the cause of hindrance is removed respectively.

ii) Overlapping period, net period of hindrances and weight age of each hindrance should be worked out by the Engineer in charge within 15 days of removal of cause of hindrance or whenever he visits the site. This can be delegated to the Controlling Site Engineer.

iii) Items of work affected due to any hindrance should be clearly mentioned in the hindrance register by the Site Engineer on the basis of which only the weight age should be allowed.

iv) Each hindrance entered in the hindrance register should be authenticated by the Controlling Site Engineer.

vi) Hindrances which are in the Control of the Contractor should not be entered in the Hindrance Register.

v) Hindrance should be recorded carefully in the Hindrance Register considering its effect on completion of work.

vi) Senior officers from Project Offices should review the Hindrance Register during their inspection.

20.5 DAILY PROGRESS RECORD (Format at Annexure 20.4)

This is a basic document to review the progress of work on a daily basis so that the Performance of the Contractor with reference to his programme of work for completion within the stipulated time can be kept under watch. This may be maintained in a Register form with one page allotted for each day. The pages should be machine numbered.

20.6 CEMENT REGISTER (Format at Annexure 20.5)

With free availability of cement in the market, the contracts invariably provide for the contractor to make arrangements for the cement required for execution of Works. Hence normally the cement stores will be under the control of the Contractor. Still it will be necessary for RITES to keep a close watch on the consumption of cement in various components of work to ensure that the required quantity of cement has been used. The format accordingly provides for its maintenance in two Parts A and B. Part B on review of actual consumption as against theoretical requirement should be filled in based on the details in Part A.

20.7 STEEL REGISTER (Format at Annexure 20.6)

Just as in the case of cement, the present day contracts provide for steel supply to be arranged by the Contractor. Through the storage and accountal of steel will be the responsibility of the Contractor, it will be necessary to keep a close watch on the actual consumption vis a vis the theoretical requirement determined based on “Good for Construction” drawings.

20.8 NON CONFORMANCE ITEMS RECORD (Format at Annexure 20.7)

During the course of execution of works, there can be some cases of substandard work by the Contractor. The normal procedure is for the Contractor to be directed to redo the work or rectify it so that it conforms to the specifications. There can be some rare cases where the defect or non-conformance has been noticed so late that it is structurally impossible to get the work redone. If otherwise structurally sound, such defective work can be accepted at a reduced rate. The detailed procedure to be adopted has been explained in Section 14. This record should be kept in a register form with the pages machine numbered.

20.9 QUALITY AUDIT RECORD (Format at Annexure 20.8)

It is necessary to keep a record of “Quality Audits” done by the inspecting officials and Quality Audit Organisation members and action taken thereon. These records may be kept in file form. Along with Quality Audit Record in the proforma laid down, a copy of the Quality Audit Report should be maintained.

20.10 SITE COORDINATION MEETINGS RECORD (Format at Annexure 20.9)

To ensure that the problems, if any, faced by the Contractor are identified in the initial stage itself to facilitate taking corrective action and also to give an early warning to the contractor if he is seen slipping behind the scheduled programme of work, it is necessary to hold periodic progress meetings. In the case of works where the progress of work is dependent on action by other organisations such as those responsible for shifting of services in the site, such meetings can be organized as coordination meetings. The record of such site progress / coordination meetings should be maintained in the proforma laid down. This record can be maintained in file format. Along with record for each meeting, a copy of the minutes of meeting shall also be kept.

20.11 GUARANTEE BONDS RECORD (Format at Annexure 20.10)

The contract provides for the Contractor submitting a Bank Guarantee for claiming Mobilization Advance. The Contract also permits “Performance Guarantee” being provided by the Contractor in the form of Bank Guarantee Bond. There can also be other cases such as issue of materials free of cost to the Contractor where Bank Guarantee should be insisted upon. In all cases, the contract will provide for the Bank Guarantee to be made available for a stipulated amount and for a stipulated period in the first instance. The contract also provides for the validity period of the Bank Guarantee to be got extended under some circumstances. Though the responsibility for keeping the Bank Guarantee Bond in safe custody and checking with the Site Engineer if the validity period is to be got extended, will rest with the Accounts Wing in the office of Engineer in Charge who has executed the Contract Agreement, the Site Engineer should also maintain a copy of the Bank Guarantee in site and see that the validity is got extended as required. The record should be maintained in the proforma laid down, in a register form.

20.12 INSURANCE POLICIES RECORD (Format at Annexure 20.11)

RITES Standard Contract Conditions provide for the Contractor taking the following insurances.

i) On Secured Advance on perishable materials

ii) On Plant & Machinery advance

iii) Comprehensive All Risk Insurance on Cost of works

iv) Third Party insurance

v) Workmen’s Insurance.

Where the Client desires, other insurance policies may also be required to be taken by the Contractor as provided for in the Contract.

ll these cases of insurance, the amount and initial period are laid down in the Contract which also provides for getting the insurance cover extended for further period under certain circumstances. While it will be the responsibility of the office of Engineer in Charge to keep custody of the original policies and take action to pursue the Contractor for extension of validity, a copy of the Policies should be retained in the Site Office and the Site Engineer should keep in touch with the office of Engineer in Charge and see that the Policy validity is got extended as required. The record should be maintained in the proforma laid down, in a register form.

20.13 DRAWINGS RECORD (Format at Annexure 20.12)

One of the main issues raised by the Contractors for delay in execution of the works is the delay in making available “Good for Construction Drawings”. It is hence necessary to maintain the details in the format laid down in a register form.

20.14 RECORD OF MANDATORY AND NON MANDATORY TESTS (Format at Annexure 20.13)

CPWD Specifications stipulate that certain mandatory tests are required to be carried out on materials / finished product. Full details of tests required to be carried out have been described in Section 16 and they cover a number of items. Depending on the scope of work, tests on the stipulated materials will be required to be carried out as per frequency laid down for each material. To check if the mandatory tests are being carried out as required, records are to be kept by the Site Engineer. Specimen format for cement is at Annexure 20.13. Similar format can be adopted for other materials. This record can be maintained in a file form with an index sheet on top.

A separate file can also be opened with details in similar format for non mandatory tests. As mentioned in Para 16.1.2 (viii) of this book, the Engineer in Charge can get non mandatory tests on materials and products carried out at his discretion. The details to be maintained in file form will include all tests whether carried out in the site laboratory or outside laboratory.

20.15 PAINT AND CHEMICALS RECORD (Format at Annexure 20.14)

Special care is to be exercised in checking quality of painting works and works of specialized nature such as anti termite treatment and water proofing of structures. These involve use of paints and chemicals whose quality and consumption have to be kept under close watch, even though invariably Contract Conditions provide for their supply by the Contractor. Record of paint and chemicals may be maintained in the form of a register in proforma at Annexure 20.14.

FORMATS OF RECORDS TO BE MAINTAINED BY RITES’ SITE ENGINEER

Sl. No SUBJECT Annexures1 Site Order Book 20.1 2 Inspection Record 20.2 3 Hindrance Register 20.3 4 Daily Progress Record 20.4 5 Cement Register 20.5 6 Steel Reinforcement Register 20.6 7 Non Conforming Items Record 20.7 8 Quality Audit Record 20.8

Sl. No SUBJECT Annexures9 Site Coordination Meetings Record 20.9

10 Guarantee Bonds Records 20.10 11 Insurance Policies Record 20.11 12 Drawings Record 20.12 13 Mandatory Tests and Non-Mandatory Tests

Record 20.13

14 Paints / Chemicals Register 20.14

SECTION 21

MEASUREMENT BOOKS

21.1 MEASUREMENT BOOK - GENERAL INSTRUCTIONS

21.1.1 (a) The Measurement Book is the basis of all accounts of quantities whether of work done by contract or by labour employed departmentally or of materials received and should be so kept that the transactions may be readily traceable in the accounts of RITES.

(b) Measurement Books should be considered as very important accounts records and maintained very carefully and accurately as they may have to be produced as evidence in a Court of Law.

(c) Each SBU Head will nominate an official by designation, of a level not below that of a Manager, for receipt and safe custody under lock and key of blank MBs and for issue of the same to controlling Site Engineers. The official so nominated will be responsible for checking the blank MBs when received from the printer/supplier to see if they are complete in all respects with machine numbering of MB and its pages.

21.1.2 (a) All the books belonging to a SBU should be numbered serially and a register should be maintained by the nominated official, in format at Annexure 21.1 showing the serial number of each book, the name and designation of official issuing the MB as well as of the official to whom issued, the date of issue and the date of its return, so that its eventual return to the SBU office may be watched. Both the issuing and receiving officials should sign in the register indicating the date of transaction.

(b) A similar register should be maintained at the site of work showing the names of the officials to whom the Measurement Books have been issued. Books no longer in use should be withdrawn promptly even though not completely written up so that they can be reissued, if necessary.

(c) Field officers are required to submit the Measurement Books in use to the SBU office from time to time so that, at least once a year the entries recorded in each book may be subjected to a percentage check by the Accounts Section under the supervision of the SBU Head.

21.1.3 When an officer or a subordinate in executive charge of works or stores is transferred, he should hand over the Measurement Books issued to him to his successor and in the prescribed register (Format at Annexure 21.1) they should be shown as received back from the Relieved Officer and issued to the Relieving Officer. The transfer should also be recorded after the last entry in each book and signed and dated by the Relieved and Relieving Officer or subordinate.

21.1.4 Each set of measurements should commence with entries starting -

i) in the case for bills for works done -

a) full name of work as given in estimate,

b) situation of work,

c) name of contractor,

d) number and date of the agreement,

e) date of written order to commence work,

f) date of actual completion of work,

g) date of measurement, and

h) reference to previous measurements, if any.

(ii) In the case of bills for supply of materials:–

a) name of supplier,

b) number and date of the agreement or order,

c) purpose of supply in one of the following forms applicable to the case:-

- stock (for all supplies for stock purpose),

- “Purchases” for direct issue to (here enter full name of work as given in the estimate),

- “Purchase” for (here enter full name of work as given in estimate)_______

for issue to contractor _______________ on ________________

d) date of written order to commence supplies,

e) date of actual completion of supplies, and

f) date of measurement.

21.1.5 A suitable abstract should then be prepared which should indicate in the case of measurements for works done, the total quantities of each distinct item of work relating to each sanctioned sub-head. The measurement book used for recording Measurements will also be used for recording Abstract of Measurements in a manuscript form. Details to be recorded in the Abstract will include quantities upto previous Bill, in the Current Bill and upto date along with rates. Paras 21.1.15 and 21.5 may be referred to for further details.

21.1.6 For recording measurements and also for preparing abstract, the agreement item no. both in words as well as in figure should be given neatly, instead of writing the description of the item in full or in abbreviated form which would not be necessary.

21.1.7 In case of extra / substituted item of work that is not covered in the agreement, the full nomenclature shall be reproduced in full in the MB and in the bill form.

21.1.8 The full nomenclature of all the items shall be adopted in preparing abstract of final bill in the measurement book and also in the bill form for final bill.

21.1.9 If the measurements are taken in connection with a running contract, a reference to the last set of measurements, if any, should be recorded. If the entire job or contract has been completed, the date of completion should be duly noted in the prescribed place. If the measurements taken are the first set of measurements on a running account or the first and final measurements, this fact should be suitably noted against the entries in the Measurement Book and in the latter case, the actual date of completion should be noted in the prescribed place.

21.1.10All measurements should be recorded neatly in the Measurement Book. Detailed measurements may be dispensed with in cases in which payments “on account” for work actually executed are made on the certificate of a responsible officer (not below the rank of Assistant Manager/ Engineer, if specially authorised) to the effect that not less than the quantity of work recorded in MB has actually been done and that the measurements are from plans or are approximately estimated. The signature of the contractor or his authorized representative should be obtained in the measurement book for each set of measurements.

21.1.11a) Before taking any measurement of any work, the Engineer in Charge or a subordinate deputed by him shall give at least 3 days notice to the contractor. If the contractor fails to attend to take the measurements after such notice or fails to countersign or to record objection within a week from the date of measurement, then the measurements recorded in his absence by the Engineer in Charge or by the subordinate deputed by him as the case may be, shall be deemed to have been accepted by the contractor.

b) It happens sometimes that when the measurements recorded by the Site Engineer are not accepted by the contractor, the fact is not brought to the notice of his superior officers immediately with the result that prompt action under clause 6 of contract of RITES Standard Form cannot be taken. The idea of clause 6 is to bind the contractor to file objection, if any, to the measurement recorded by RITES officers within a week so as to avoid any disputes later on. In all cases of works executed on RITES Standard Contract Form, when the contractor fails to attend at the time of measurements or to countersign the measurement books in token of his having accepted the measurements recorded therein, or to record the difference, the Site Engineer taking the measurements should report this fact within 72 hours to the Controlling Site Engineer / Coordinating Officer in SBU office in writing. The latter on receipt of such a report should take immediate action under clause 6 of Contract and inform the contractor, in writing that the measurements as taken by the Site Engineer are final as per clause 6 of Standard Form of RITES and no claim whatsoever on this account shall be entertained.

c) The above instructions will not apply in cases when the Contractor is to submit completed measurements to RITES as detailed in Para 21.6.

21.1.12The measurements shall be recorded in ink. No entry shall be erased or overwritten. If a mistake is made, it should be corrected by crossing out the incorrect words or figures and inserting the correction. The correction thus made shall be initialed and dated by officer recording / checking measurements. The person recording the measurements should record a dated certificate “Measured by me” over his full signature in the Measurement Book.

21.1.13The pages of the MBs should be machine numbered. Blank pages, if any, without machine numbering should be cancelled by a diagonal line and dated and initialed by the Measurement Book Issuing Officer. Entries should be recorded continuously and no blank page left or torn out. Any page or space left blank inadvertently should be cancelled by diagonal line, the cancellation being attested and dated. This is to ensure that no entry is inserted later. In cases where “part rate” is proposed for any items, brief reason for the same should be recorded in the Measurement Book. In such cases the quantities should be

correctly indicated based on measurements and payment made at less than BOQ rates.

21.1.14When any measurements are cancelled or disallowed, these must be endorsed by the dated initials of the officer ordering the cancellation or by a reference to his orders, initialed by the officer who made the measurements, the reasons for cancellation being also recorded.

21.1.15 On completion of the abstract to be recorded in the MB at the end of record of Measurements for any RAB / Final Bill (refer Para 21.5 for the Proforma), the book should be submitted by the official who had recorded the measurements to the Controlling Site Engineer/ Project Coordinator who after carrying out his test check / getting the test check carried out, should enter the word “Check and bill” with his dated initials. The Site Office clerk, if posted, should then check the calculations of quantities in the abstract, and the bill furnished by the Contractor in case of work carried out by contract, sign in token of checking and should then place the measurement book and the bill before the Controlling site Engineer, who, after comparing the two, should sign the bill and the measurement book at the end of the abstract. From the measurement book all quantities should be clearly traceable into the documents on which payments are made. When a bill is prepared for a work or supplies, every page containing the detailed measurements must be invariably scored out by a diagonal red ink line. When the payment is made, an endorsement must be made in red ink, on the abstract of measurements, giving a reference to the number and date of the voucher of payment.

21.1.16 Any corrections to calculations or rates made by the Site Engineer or in SBU office should be made in red ink and brought to notice of the Controlling Site Engineer or the SBU Head, as the case may be and of the person recording the original measurements. In the case of final bill, payment should be deferred until the corrections have been accepted by the person making the measurements. All corrections made by the clerical staff should be in red ink.

21.1.17 When work which is susceptible to measurements is carried out by daily labour, similar plan should be adopted, the quantities of work done as shown on the Muster Roll being compared with the entries in the Measurement Book before payment is authorized.

21.1.18 Measurement Book should be sent only by Registered Post or by Special Messenger.

21.1.19 Measurements should be recorded only by the officials in charge of the work and to whom the Measurement Book has been issued for this purpose. Guidelines on this subject are at Annexure 21.2 and may be strictly adhered to.

21.1.20 In case of works of repetitive type, detailed measurements of 20% of the total number of units, subject to a minimum of 20 Units, need only be recorded.

21.1.21 In case of supply of steel, the measurements should be recorded as under:-.

i) On actual weight basis for bars upto 10mm dia and

ii) On standard sectional weight basis for bars above 10mm dia. In the case of latter the measurements should indicate the total number with length of bars in each bundle, total number of bundles, standard weight per running meter, weight of each bundle, total weight of all bundles etc. The entry should not be a copy form the invoice issued by the firm. The issues will also be made in the same manner in the two cases.

21.2 TEST CHECKING OF MEASUREMENTS

21.2.1 The Controlling Site Engineer / Coordinating Officer must satisfy himself before passing a bill for payment or before submitting it to the SBU office for payment that the work or supply billed for has actually been carried out / completed in accordance with the terms and conditions of the contract. In case of doubt, he should personally inspect all works of any magnitude before authorising final payments in connection therewith.

21.2.2 Instructions on test check of measurements are at Annexure 21.2 and will be required to be adhered to strictly.

21.2.3 The individual items checked should be clearly shown in the Measurement Book and the result recorded by the officer concerned. The items thus checked should be attested by the dated initials of the Checking Officer.

21.2.4 A collective record of all the checks carried out from time to time will be prepared in each measurement book in the following tabular form:-

i) Date of check

ii) Page recording measurements subject to test check

iii) Value of measurements checked

iv) Result of the check exercised v) Dated initials and designation of the checking officer. The result will be indicated by the word “Satisfactory” or “Unsatisfactory” as judged at the time on merits of each case.

21.3 RECORDING LEVELS FOR EARTH LEVELLING WORK 21.3.1 In case of leveling operations and earthwork, measurements are required to be

recorded in Level Books in addition to Measurement Books. The Level Books should be numbered, accounted for and handled like Measurement Books.

21.3.2 Before starting the earth work, the following steps should be taken:- i) Original ground levels should be recorded in the Level Book in the

presence of the contractor, ii) A suitable baseline should be fixed with permanent masonry pillars @ 150

metres centres to provide a permanent reference line, iii) Circuit should be closed by taking final levels of the starting point or any

other point, the R.L. of which was previously determined, iv) Plans showing initial levels, locations of bench marks and reduced levels

should be prepared and signed by both the parties and attached to the agreement. Work should be done according to the specifications.

21.3.3 Test checks should be done as stipulated in the instructions at Annexure 21.2. The test check of the levels should be carried out independently by each officer and readings should be recorded in the prescribed Level Book in red ink against the old levels which should be neatly scored out wherever necessary. If the test checking carried out reveals serious mistakes in the original levels, these should be taken or retaken and rechecked. The test check by an officer should be as representative as possible for the entire work done.

21.3.4 On completion of work, the levels should again be recorded in the Level Book and the contractor’s signatures obtained. These levels should also be test checked within one month of the date of completion of the earth work and according to the procedure as laid down in the case of initial levels as indicated above. The formation levels as per final execution of the work should be

compared with the proposed formation levels and work got rectified within permissible tolerance.

21.3.5 Every fourth running bill and the final bill should be paid on the basis of levels. 21.3.6 Intermediate payments can, however, be made on the basis of borrow pit

measurements. The Controlling Site Engineer should take care that the quantities thus assessed are not in any case more than the actual work done.

21.3.7 In case of large scale leveling works involving both cutting and filling, an accurate site plan should be prepared before the work is commenced. The portions requiring cutting and filling shall then be divided into squares and corresponding squares into filling, which are complementary to the squares in cutting given the same number. A table may be written upon the plan showing leads involved between the various complementary squares. This would form a lead chart for the work to be done. Before the work of leveling is commenced, the lead chart shall be checked by a responsible officer of RITES as indicated in Annexure 21.2 in presence of the contractor or his authorized representative and his signature shall be obtained on the same. This should form an integral part of the contract and should be duly signed by both the parties before commencement of the work. The quantity payable for earthwork shall be lower of the quantity derived from cutting or filling. The payment for lead shall be based on lead chart prepared in the aforesaid manner.

21.3.8 In case of earth to be imported, the area from where the earth is to be imported, should be carefully predetermined before the start of the work and wherever feasible, average lead should be worked out and stipulated in the tender. After this is determined, initial levels of this area should be recorded along with the initial levels of the area to be filled. The levels should be properly checked during the progress of work and on completion, measurements of earth work should be recorded in both places to determine correctly the earth excavated and carted. Payment for the earth work shall be made on the basis of the lesser of the quantity in filling or cutting. Distances between the two places should be measured correctly which should also be test checked.

21.3.9 In respect of import of sweet earth required for horticulture operations, the quantity of good earth required is very small and there may be more than one source from where the agriculture soil is readily available. Also, good earth is lifted by contractors for different works from the same source and as such it is not possible to take levels of the area from where the earth is imported. Hence, Provision of Para 21.3.8 will not apply in respect of horticulture works. The payments in such cases will be made on the basis of levels in the area where earth is to be filled.

21.3.10 Similar procedure as in para 21.3.8 should be followed while recording measurements of disposal of earth.

21.3.11 In case of small works, borrow pit measurements and stack measurements of earth may be recorded indicating clearly the place of borrowing or disposal, as the case may be so that the distances can be verified.

21.4 LOSS OF MEASUREMENT BOOK When a Measurement Book is lost, an FIR should be lodged with the Police. An

immediate report of the facts of the case together with an explanation of all parties concerned responsible for loss should also be made promptly to Executive Director concerned who is empowered to sanction the write off of the lost MB. It is necessary that the measurements in the lost MB should be

reconstructed at the earliest. Proforma in which details are to be furnished while requesting for write off of a lost MB is at Annexure 21.3.

21.5 PROFORMA FOR MEASUREMENT BOOK

The Proforma for various pages of MB is at Annexure 21.4. As indicated in Para 21.1.15 after recording of Measurement for any RAB / Final Bill, Abstract of Measurements should be recorded at the end in the same MB. The Abstract will cover all items for which payment has been done / proposed through the current Bill. The proforma in which Abstract is to be made out is at Annexure 21.5. This Abstract is to be recorded in the M.B. on the format stipulated, in a manuscript form.

21.6 Computerised Measurement Books (CMB’s) and Bills to be submitted by the Contractor

21.6.1 Application and format of the Computerised MB.

(1) In works of estimated cost put to tender of Rs.15 lakh and above, subject to approval of SBU Head, the conventional Measurement Books may be replaced by a bound volume of computerized measurements to be furnished by the contractor, duly machine numbered for the pages, and with an MB number given by the SBU Office. The pages of these Measurement Books shall be of A-4 size. All these Measurement Books belonging to a SBU shall be serially numbered, and a record of these Computerised Measurement Books shall be maintained in a separate Register in Form at Annexure 21.1.

(2) The same format as in existing Measurement Books shall be used for the Computerised Measurement Books. The measurements shall be carried forward from the previous recorded measurements as per the existing procedure.

21.6.2 Mode of Measurements

1) The measurements shall be recorded and entered in computerized format in the first instance by the contractor, and a hard copy shall be submitted to the Engineer-in-charge. All entries shall be made exactly as per the existing procedure.

2) These measurements shall then be 100% checked by the Controlling Site Engineer. If Controlling site Engineer is not available, the Project Coordinator shall arrange for 100% check of the measurements. The contractor shall incorporate all such changes or corrections as may be done during these checks, in his draft computerized measurements, and submit to the Engineer-in-charge the corrected computerized measurements in the form of a book, duly hard bound in red colour on the lines of the conventional Measurement Books now in use, and with its pages machine numbered.

3) Test check of these computerized measurements shall be carried out as per the existing instructions at Annexure 21.2.

4) The Site Engineer, Controlling Site Engineer and the Project Coordinator shall record the necessary certificates for their checks and test checks as per the existing procedure in this Computerised Measurement Book.

5) The Computerised Measurement Book shall be allotted a serial number as per the Register of Computerised Measurement Books.

21.6.3 Cutting or over-writing in the computerized M.B. not allowed

1) The Comptuerized Measurement Book given by the contractor, duly bound, with its pages machine numbered, shall have no cutting or over-writing.

2) It is the responsibility of the Site Engineer or the Controlling Site Engineer as the case may be to ensure that the checks and test checks done by them in the initial draft measurements are correctly incorporated in the Computerized Measurement Book before they record their certificates.

3) In case of any error, the Computerized Measurement Book shall be cancelled, and the contractor shall re-submit a fresh Computerized Measurement Book. This should be done before the corresponding computerized bill is submitted to the Engineer in charge for payment.

4) The contractor shall submit as many copies of Computerised Measurement Books as may be required, and as are specified in the NIT / contract, for the purpose of reference and record in the various offices of RITES.

21.6.4 Computerized Bill to be submitted by the Contractor

1) The contractor shall submit his running and final bills in a computerized form in the same format as the existing conventional bills, with all the pages machine numbered, and hard bound, and with all the entries made as per the existing procedure.

2) The contractor shall submit as many copies of the computerized bills as may be required for the purpose of reference and record in the various offices of RITES.

3) The bill shall be carried forward from the previous running account bill as per the existing procedure.

4) These computerized bills shall be processed for payment, as per the existing procedure.

SECTION 22

PAYMENTS TO CONTRACTORS

22.1 REQUIREMENT OF CLAUSE 7

22.1.1 Clause 7 of the Clauses of Contract of Standard Form of RITES provides that no payments shall be made for works or supplies estimated to cost less than rupees one lakh till after the whole of the work or supply shall have been completed and a certificate of completion given. In the case of works or supplies estimated to cost more than Rs.1 Lakh, the contractor shall on submitting the bill thereof be entitled to receive a monthly payment proportionate to the part thereof then executed and passed by the Engineer-in-Charge. The contractors should be required by the Engineer-in-Charge to submit their bills by a fixed date in accordance with the terms of clause 7 of Contract of Standard Form of RITES. The Controlling Site Engineer should supply to the contractor a copy of the measurements and statement of “part rates” to be paid, at least three clear days in advance of such date fixed by the Engineer-in-Charge. Part rate can be proposed by the Controlling Site Engineer after taking into account the approximate value of the components of that BOQ item of work already completed vis-à-vis all the components covered by that BOQ item. The payment to the contractor shall be made only on submission of the bill by him.

22.1.2 Ordinarily, running payments shall be made monthly with billing not less than the stipulated minimum amount as per terms of the contract, unless specifically authorized otherwise by the Engineer in charge in specific cases. The stipulations in the Special Conditions of Contract, if different to the above provisions, will prevail. While fixing the minimum amount for billing per month, it should normally not be less than half the average monthly value of contract (i.e.) contract value divided by the stipulated period in months.

22.1.3 The SBU Head, should maintain a register to keep a record of the monthly running payments made to the contractors in respect of contracts in the proforma prescribed in Annexure 22.1. As and when a bill is submitted, the same shall be entered in this register. The register should be reviewed by the SBU Head regularly to ensure that payments are being made to the contractors in time. If any objection is raised by the SBU Accounts Unit for payment of a particular item or rate in any bill, the Engineer-in-Charge should make up his mind and pass final orders then and there whether the item on which objection has been raised should be allowed or not with or without modification of the proposed rate and if it is not to be allowed then the item should be deleted from the bill but in no circumstances the payment should be delayed. The register should be posted at the time of making monthly running payment to the contractor.

22.2 FINAL PAYMENTS

Final measurements should be recorded within one month of the completion of work. Final payments for works costing more than Rs. One Crore should be made within six months of the completion of work and for other works within three months.

22.3 TIME SCHEDULE FOR PAYMENT OF BILLS

22.3.1 The following time schedule for payment of bills and issue of completion certificates has been prescribed in various Clauses of Contract.

Stage Time Limit

Payment of running bill/Interim 75% of the bill amount before expiry of 3 working days from the presentation of the bill at the office of Engineer-in-Charge, except where otherwise provided for in the Special Conditions of Contract. (5 working days in case work is outside HQ of SBU). Balance payment within 15 working days. (Clause 7)

Contractor’s notice of Completion of work 10 days of completion of the work (Clause 8)

Issue of completion certificates for works Within 30 days of receipt of Contractor’s notice

(Clause 8). May be “Provisional” or “Final”

Submission of final bill by the contractor

Within one month of the date of the final certificate of completion furnished by the Engineer-in-Charge or three months of the physical completion of the work whichever is earlier(Clause 9)

Payment of final bills for Works up to Rs. One Crore 3 months of receipt of final bill from the

contractor in the office of Engineer-in-Charge

(Clause 9)

Payment of final bills for works over Rs. One Crore

6 months of receipt of final bill from the Contractor in the office of Engineer-in-Charge. (Clause 9)

22.4 INSPECTION OF WORK NEARING COMPLETION / AFTER COMPLETION

22.4.1 Before the work is declared as completed in all respects and final payment is released to the contractor in respect of the following works, it has to be inspected by the Engineer-in-Charge as far as possible. Failing this, the inspection will be done by the Project Coordinator in SBU office.

i) Building Works Rs. One Crore and above

ii) Electrical, Water Supply / Rs. Forty Lakhs and above

Sanitary Works

iii) Road /Runway Works Rs. One Crore and above

iv) Horticulture Work Rs. Six Lakhs and above.

22.4.2 The Engineer-in-Charge / Project Coordinator shall also record the following certificate:-

“I have inspected the work of ......................contract value of which is Rs. ......................vide Agreement No. .......................today. As a result of this inspection and my previous inspections I find that the work has been completed satisfactorily. There are no noticeable defects except for the following:-__________________

22.4.3 The above certificate is required to be recorded within a period of three months from the date of completion of the work.

22.4.4 In the case of works whose contract value is less than the above mentioned values, the Controlling Site Engineer has to record similar certificate.

22.4.5 The defects noticed should be rectified by the contractor or by RITES at his cost, action for which should be taken in terms of the contract.

22.4.6 The Engineer-in-Charge or the Project Coordinator in SBU office is also required to record the above certificate in respect of contracts for building works exceeding Rs. Thirty Lacs where such contracts are in respect of part of a technically sanctioned estimate of Rs. Two Crores and above.

22.5 COMPLETION CERTIFICATE

22.5.1 An attested copy of the completion certificate will be attached with the office copy of the final bill of the contractor and remain on the record of the SBU. Engineer-in-Charge shall not make final payment till this certificate is recorded, and attached to the office copy. This certificate, however, will in no way reduce the responsibility of the Engineer-in-Charge and Accounts Officer of SBU office for due check of the work and the bill as required by this Guide book.

22.5.2 The certificate is required to be recorded by the Engineer-in-Charge / Project Coordinator in whose time the work is completed irrespective of the fact that a part of the work may have been done during the incumbency of his predecessor. The Engineer-in-Charge / Project Coordinator recording the certificate is not responsible for bad work which may have been covered up during the incumbency of his predecessor as for instance, work in foundations or below the concrete flooring. But he is required to point out the defects which appear outwardly, for instance, defects in the doors and windows, plastering, flooring, painting etc. The Engineer-in-Charge / Project Coordinator should necessarily record the completion certificate for the works completed in his tenure on the post before he hands over the charge to his successor on transfer.

22.6 PAYMENT THROUGH BANK

Payment due to contractor, if so desired by him can be made to his Bank instead of direct to him provided the contractor furnishes to the Engineer-in-Charge the following:-

i) An authorization in the form of a legally valid document such as a power of attorney conferring authority on the Bank to receive payment.

ii) His own acceptance of the correctness of the accounts made out as being due to him by RITES or his signature on the bill or other claim preferred against RITES before settlement by the Engineer-in-Charge of the account or claim by payment to the Bank. While receipt given by such Bank shall constitute full and sufficient discharge for the payment, the contractor should wherever possible, present his bill duly receipted and discharged through his Bankers.

22.7 DEDUCTION OF INCOME TAX AT SOURCE

22.7.1 Under Section 194C of the Income Tax Act, 1961, deduction of Income Tax is required to be made at source by disbursing officers from payments made to contractors in certain cases.

Before signing the first and final bill/running account/or the final bill, the SBU office should see that:

i) the statutory deduction on account of income tax wherever due has been made from the bill of the contractors and

ii) the same is specifically shown in the form of running and final bills forms as described in Para 24.2.

22.7.2 It is open to the contractor to make an application to the Income Tax Officer concerned and obtain from him a certificate authorizing the payee to deduct tax at such lower rate or deduct no tax as may be appropriate to his case.

22.7.3 The tax deducted should be paid to the credit of the Central Government within one week from the last day of the month in which the deduction is made.

22.7.4 RITES should issue a certificate of ‘Tax Deducted at Source’ to the contractor as per provisions in the Income Tax Act.

22.8 DEDUCTION OF “SALES TAX ON WORKS/VAT ON WORKS CONTRACT” AT SOURCE

In states, where Sales Tax / VAT on Works Contracts is applicable and the relevant Act provides for deduction of tax at source, similar action as in case of Income Tax will be required to be taken by the Engineer-in-Charge / SBU Office. Most of the states have switched over to VAT on Works which is in lieu of Sales Tax on Works.

22.9 DEDUCTION OF BUILDING AND OTHER WORKERS WELFARE CESS AT SOURCE

Cess Act is a Central Legislation but is to be implemented by the State Governments. In the Cess Act, there are provisions for deduction of cess from contractor’s bills and depositing them with State Welfare Board. These provisions should be followed in cases of Works in States where Building and other Workers’ Welfare Cess Act has been brought into force.

22.10 DEDUCTION OF “SERVICE TAX ON WORKS” AT SOURCE

Though the contractor is expected to pay Service Tax on Works executed for non-Government bodies, as yet there is no statutory responsibility on RITES to make any deduction from Contractor’s bills on this account.

SECTION - 23

ADVANCES TO CONTRACTOR

23.1 TYPES OF ADVANCES

23.1.1 Clause 10 B of Clauses of Contract deals with the subject of payment and recovery of the following types of advances:

i) Secured Advance on non-perishable materials / items of perishable nature.

ii) Mobilization Advance.

iii) Plant & Machinery Advance.

23.1.2 The provisions in this clause should be carefully gone through and it should be ensured that the conditions laid down are strictly complied with while paying such advances. Special care will also have to be exercised in recovery of the principal amount of advances as well as the interests on Mobilization Advance and Plant & Machinery Advance. To maintain proper accountal, the payment of advances and recovery with interest should be effected through running bills. Necessary provision has been made in the format for running account bills to show the breakups of different types of advances to be paid to the contractor and the amount to be recovered from the contractor through the running bills for each type of advance. In the case of Secured advance on Contractor’s materials, details have to be appended to the running bills in the format specified. The recovery of Secured ADVANCE ON materials is without interest and is linked to the incorporation of the materials in works.

23.1.3 (a) Mobilisation Advance shall be made applicable only for specialized and capital intensive works where estimated cost put to tender is Rs. Two Crores and above. It shall be admissible upto10% of the tendered value at 10% simple interest and such advance shall be released in two equal installments on specific request of contractor as per terms of the agreement.

(b) The second installment of Mobilisation Advance should be released only after getting satisfactory utilization certificate from the contractor for the first installment.

(c) The power to make provision for Mobilisation Advance in a tender document for any particular work shall rest with the NIT Approving Authority. In case, it is proposed to provide for mobilization advance more than 10% of the cost of the work, prior approval of the concerned Director, with the concurrence of finance, should be obtained before inviting the tenders. This is in partial modification of SOP item 2.2 which had given powers to EDs in some cases.

(d) The interest on advance shall be calculated from the date of payment to the date of recovery, both days inclusive. In case it is proposed to provide interest free Mobilization Advance, prior approval of the concerned Director with the concurrence of finance should be obtained before inviting the tenders. This is also in partial modification of SOP item 2.2 which has given powers to EDs in some cases.

(e) The Mobilization Advance shall be against BGs. of a Scheduled Bank for 110% of the full amount of that installment. Number of BGs shall not exceed three.

(f) The recovery should be commenced after 10% of work is completed and billed. The entire amount together with interest shall be recovered by the time 80% of the gross value of contract is executed and billed.

(g) Recovery of Mobilisation Advance at an intermediate stage should be effected, if necessary by encashment of part B.G., if the appropriate prorata amount of advance is not available from the work done by the Contractor.

23.2 CERTIFICATES TO ACCOMPANY BILLS

23.2.1 The certificates as per format in Paras 23.2.2 or 23.2.3 or 23.2.4 should be recorded by the bill signing officer and should accompany the running accounts/final bill submitted to the Engineer-in-Charge.

23.2.2 (a) Payment to contractor “Secured Advance on non-perishable materials”:

i) The materials for which Secured Advance is being proposed are non-perishable, non-fragile and non-combustible.

ii) The quality of materials is as per stipulated specifications.

iii) The quantities of materials for which advance is being proposed have actually been brought to site.

iv) The materials are adequately stored and protected against damage by weather or other causes.

v) The materials have not been incorporated in the work.

vi) The Secured Advance can be paid upto an amount not exceeding 90% of the assessed market value of the materials or an amount not exceeding 90% of the material element cost in the tendered rate of the finished item, whichever is lower.

b) Payment to contractor “Secured Advance on perishable materials”

i) The materials are covered by comprehensive insurance for their full cost and for the period stipulated in the contract.

ii) The quality of materials is as per Specifications.

iii) The quantities of materials for which advance is being proposed have actually been brought to site.

iv) The materials are adequately stored and protected against damage by weather or other causes.

v) The materials have not been incorporated in the work.

c) Recovery from the contractor towards “Secured Advance for non-perishable and perishable materials”

The materials have actually been incorporated in the works.

23.2.3 Payment to contractors “Mobilization Advance”

The advance is covered by a Bank Guarantee Bond from a Scheduled Bank as specified by the Engineer-in-Charge for 110% of the Installment amount of Advance and for the period as stipulated in the Contract.

23.2.4 Payment to contractor “Plant & Machinery Advance”

i) The Plant / Machineries have been insured for a sum adequate for their replacement at site for the period stipulated in the Contract.

ii) The items for which advance is proposed have been hypothecated to RITES.

iii) The items are considered necessary for the works and have been maintained in good working condition and are available at site.

SECTION 24

PREPARATION, EXAMINATION, VERIFICATION AND PASSING BILLS FOR PAYMENTS

24.1 PREPARATION OF BILLS

24.1.1 The Contractor is required to prepare the bill, in one of the forms prescribed, as applicable in each case, for the work done by him and submit the same to the Controlling Site Engineer.

24.1.2 Before the bill of a Contractor / Supplier is passed, the entries in the Measurement Book relating to the description and quantities of work / supplies should be scrutinized by the Controlling Site Engineer and the calculations of “Contents or Area” should be checked arithmetically under his supervision. The bill should then be checked, passed and paid in the office of the Engineer in Charge from the Measurement Book entries.

24.1.3 Full rates, as per agreement / supply order should be allowed only if the quality of work done or supplies made conforms to the specifications / standards as laid down under the agreement. If the contract is determined, or an on account payment is to be made when the contract is to run, a “part rate” as considered reasonable may be allowed on BOQ item, with due regard to components of the work remaining to be done under the BOQ item and general terms of the agreement, after getting the “part rate” statement approved from the bill passing authority.

24.1.4 In case of supplies, the payment is not permissible until the stores have been received, examined and accepted. In case payment has been permitted on production of despatch documents etc., the payment should be treated as advance against the final settlement on receipt, examination and acceptance of the stores.

24.1.5 If the contract is for a completed item of work and the Contractor has been supplied materials of any description from RITES, necessary recoveries on account of the cost of the materials supplied to him by RITES should be effected from each bill at the recovery rates fixed for the purpose.

24.2 FORMS OF BILL FOR PAYMENT

24.2.1 The authorized forms of bills to be used for payment to contractors/ suppliers and their utility are described below:-

a) First and Final bill form should be used for making payments both to contractors for work and to suppliers, when a single payment is made for a job or contract i.e. on its completion. A single form may be used for making payments to several payees, if they relate to the same work / section of work or to the same head of account in the case of suppliers. RITES Form referred to in Para “b” below may be adopted for First and Final Bill also.

b) Running Account Bill / Final Bill RITES FORM - (Copy at Annexure 24.1) This form is used for all running and final payments to contractors and suppliers (other than those relating to lump sum contracts) including cases where advance payments are proposed to be made or are already

outstanding in respect of the same work against the contractor. In case where advances are to be made or are already outstanding in respect of the same work against the contractor, account of such advances, should be attached to the bill as per relevant Annexure in the Form of RITES.

24.3 AUTHORITIES TO PASS THE BILLS

Payment of the Running Bills will be authorized by the Project Coordinator who will attend to the queries, if any, of the Accounts Section. The Final Bills will also be processed by the Project Coordinator in a similar manner though payments of Final Bill will be subject to approval by the Engineer-in-charge/ SBU Head.

24.4 PAYMENT FOR WORK DONE

Payment for work done or supplies made on running account should be made periodically on submission of the bill by the contractor / supplier as per provisions in Clause 7 of Clauses of Contract read with Special Conditions.

24.5 DEVIATION STATEMENT

Deviation Statement in the Proforma at Annexure 24.2 should be submitted with every running bill starting from the bill when gross value of work done exceeds 50% of Contract Value and with final bill.

24.6 BANK GUARANTEES - CHECK AND CUSTODY

Guidelines on Check and Custody of Bank Guarantees furnished by the Contractors are at Annexure 24.3

24.7 DOCUMENTS TO ACCOMPANY BILLS

Documents to accompany running account bills are listed at Annexure 24.4 and those for final bills at Annexure 24.5.

24.8 CHECK OF BILLS AT SBU OFFICE

Check list of items to be scrutinised by SBU office on the running account bills is at Annexure 24.6 and that for final bill at Annexure 24.7.

SECTION 25

QUALITY ASSURANCE AND CHECK LISTS

25.1 INTRODUCTION

(1) The Quality Assurance activity has to ensure a progressively improved and uniform quality of finished work. 'Process Control' is essential in building construction to ensure that the work in different phases is executed in a manner predetermined and laid down in specifications. In order to achieve above, the pre-requisites cover among other things, an inbuilt provision in the contract for a system of continuous check on quality by the field staff and the contractor.

(2) Maintenance of quality has to be imbibed in the minds of the contractor as well as the field staff of RITES. It is better to have a system in which quality of work is achieved during the construction stage itself, rather than indulge in ‘fire fighting’ activities after the damage has been done, by way of post-construction ‘quality control.’

25.2 QUALITY ASSURANCE PLAN

A Quality Assurance Plan has to be a part of the tender documents. This shall indicate all the required tests to be done during the construction stage, all the relevant and applicable Codes, Specifications and Standards, as well as acceptable criteria for each relevant item of work, materials used and the processes employed. All these have to be checked/tested periodically at the required intervals by the contractor and the RITES field staff and the reports shall have to be signed by the contractor as well as field staff. Copies of all such reports at various stages shall be appended with each running bill and the final bill, failing which no payment shall be released to the contractor. The Engineer in Charge shall, not be absolved of his responsibility to ensure that the ‘Quality Assurance Plan’ is complied with in every work under his charge.

25. 3 METHODS STATEMENT

In all major works of contract costing more than Rs. 10 Crores, provision shall be made in the tender documents for the contractor to submit a 'Methods Statement' for approval of Engineer-in-charge, soon after the award of work to him. The "Methods Statement" is a statement by which the construction procedures for important activities of construction are stated, checked and approved. The ‘Method Statement‘ should have a description of the item with elaborate procedures in steps to implement the same, the specifications of the materials involved, their testing and acceptance criteria, equipments to be used, precautions to be taken, mode of measurements etc.

25.4 RESPONSIBILITY FOR QUALITY ASSURANCE

The direct responsibility for ensuring proper quality of work as per approved specifications rests with the field staff. The Engineer-in-Charge shall be overall responsible for management of Quality System and Procedures for the works under his charge. The power of acceptance of substandard work delegated to the Engineer-in-Charge should be used sparingly and under exceptional circumstances as emphasised under para 14.2 of this Guidebook.

25.5 CHECKLISTS

(1) The Controlling Site Engineer should ensure that members of his construction team, as well as the contractor’s supervisors-in-charge are fully aware of the specifications and method of execution of any new/fresh item of work to be taken up in the next 2 weeks. The field staff shall carry

the required field testing instruments to ensure on-site quality assurance check on a regular basis and to enable senior officers to conduct checks during their site visits.

(2) ‘Checklists of Specifications for Civil Engineering Works for Quality Control' have separately been issued to all RITES officers and staff. As and when any item is taken up for execution, the field staff should go through the check list and answer each and every query there in. If answer to any query is in the negative, suitable remedial measure should be taken at the process stage itself.

(3) To avoid dampness and leakage, the Controlling Engineer shall ensure that necessary tests are carried out for proper slopes of canopies, chajjas, terracing, drainage arrangements, water tightness of expansion joints, joints in the water supply, drainage and sanitary works before these are covered/concealed and also ensure rectification of defects noticed.

(4) As early as possible after award of work, full-scale sample should be prepared for repetitive items. Such samples should be approved by the Engineer-in-Charge. Some examples are

(i) Sample quarter for residential areas

(ii) Sample unit like corridors, toilet, room in case of non-residential areas

(iii) AC ducts/AC grills

(iv) Window grills with or without coolers and ACs

(v) False ceiling

(vi) Shafts

(vii) External and internal finishing

(viii) Electrical switch board/electrical fittings/points

(ix) Kitchen

(x) Door/window fittings etc.

25.6 TESTING LABORATORY

(1) In all major works of contract costing more than Rs 10 Crores, the contractor shall be required to establish complete field testing laboratory and arrange all the relevant codes and standards. The list of such testing equipments, codes and standards shall be specified in the tender documents. The contractor shall also provide the minimum staff, as specified, for quality assurance.

(2) Need also arises for carrying out specialised tests, physical, chemical, ultrasonic, X-ray and various other types of tests which cannot possibly be carried out in a site laboratory. Such tests may be got carried out in approved laboratories in Govt. Sector, Semi Govt sector or in private sector. In case of laboratories in private sector, past record and reputation of the laboratory must invariably be given due consideration before approval by the Engineer-in-Charge.

SECTION 26

CHIEF TECHNICAL EXAMINER’S ORGANISATION AND COMMON IRREGULARITIES OBSERVED

26.1 FUNCTIONS OF CTE ORGANISATION

The Chief Technical Examiner’s Organisation is the technical wing of the Central Vigilance Commission. The Chief Technical Examiner’s Organisation conducts inspections of works of RITES from the vigilance angle on its own or on a complaint being received by/referred to them. The inspections can be carried out by them for works of any magnitude.

26.2 RETURNS

26.2.1 In order to facilitate selection of work for inspection, a quarterly return has been prescribed for submission to them giving the list of works in progress. These returns are consolidated for various units of RITES and sent to CTE. The returns indicate clearly the name and address of Engineer-in-Charge under whose charge the work is being got executed. The Quarterly Progress Reports are to include all civil works where accepted tender value exceeds Rs. One Crore, electrical works exceeding Rs. Thirty lacs and horticulture works exceeding Rs. 2 lacs and these are to be submitted on separate sheets for civil, electrical and horticultural works. These returns are required to be submitted for quarters ending March, June, September and December.

26.3 INSPECTION BY CTE

26.3.1 Intimation regarding the inspection/examination of works by CTE is sent by him to the Engineer-in-Charge concerned with a copy to CVO/RITES well in advance. In order to enable the inspection to be carried out property, various documents relevant to the work are generally asked for by CTE to be kept ready at site. A list of such documents is given in Annexure 26.1. This list is not exhaustive/comprehensive. Any other record considered relevant for inspection can be called for by CTE.

26.3.2 The inspection reports are sent by CTE to the Engineer-in-Charge concerned, which the Engineer-in-Charge shall reply within 30 days or the period mentioned in the letter. Any matter of serious nature or such matters pertaining to sanctions of estimates, NITs, acceptance of tenders etc. dealt by higher officers may be referred by CTE for reply directly by the higher officers. In respect of such paras, the Engineer-in-Charge shall send his comments, if required by the higher officers, to the concerned officer and not directly to CTE.

26.3.3 In order to expedite replies and settle the points and to ensure timely action, it is essential that the time limit fixed by CTE is strictly adhered to by the officers of RITES at all levels. For keeping a proper watch on the disposal, the Engineer-in-Charge shall maintain a register.

26.4 RECOVERIES OF OVERPAYMENTS POINTED OUT BY THE CTE

26.4.1 Normally the recoveries of over payments pointed out by the CTE should be made within a period of three months from the date of issue of memorandum by CTE. The overpayments arising out of the defects pointed out by the CTE should

be promptly assessed and if accepted by the Engineer-in-Charge, the recoveries should be effected from the money due to the contractor either from the same work from the immediate running bill or from any other work or from the security deposit. In no case, action to recover the overpaid amount should be kept pending or kept in abeyance on account of the case being before the arbitrator. Action in terms of the award can be taken after the award is received and accepted by the competent authority. Recoveries/adjustment of the amount in question should, in no case, be effected by debiting the amount to RITES account. In order that the recoveries of over payments pointed out by CTE are promptly effected, a register of over payments pointed out by the CTE Organisation and subsequent recoveries effected should be maintained by the Engineer-in-Charge in the proforma given at Annexure 26.2.

26.4.2 Although the inspection of CTE is a part of the activities relating to the Works Contract with the Contractor, yet the CTE is not a party to the contract. No reference should be made to CTE’s inspections/examinations of works in any correspondence made with the contractor. Notice for rectification of defects, recoveries to be made etc. shall be issued by the Engineer-in-Charge, who is the party to the contract, acting for and on behalf of RITES.

26.5 COMMON IRREGULARITIES POINTED OUT BY THE CTE

A compilation of common irregularities pointed out by CTE during examination of projects handled by RITES and other similar Government Organisations is at Annexure 26.3 for guidance.

SECTION 27

OPENING, CUSTODY AND FINAL DISPOSAL OF ESSENTIAL PROJECT DOCUMENTS

27.1 PREAMBLE

27.1.1 The successful execution of any project depends to a large extent on the proper maintenance of essential records till all final accounts are settled with the Client, sub consultants, if any, and contractors. Some of the documents or records will be required to be opened and maintained, some in SBU Office and some in Field Offices. The documents will be required to be retained for a specified period, depending on the type of document, as stipulated in Annexure 19.5 of this Guide-book. The documents pertaining to projects where there are arbitration or court cases have to be retained till the cases including appeals are settled. A proper system has also to be evolved for periodic review and weeding out of documents for which the stipulated period for retention has expired.

27.2 COMMON DEFICIENCIES OBSERVED IN SYSTEM OF MAINTENANCE AND DISPOSAL OF RECORDS

i) No uniform system on numbering/name of file and the officer at different stage responsible for maintenance/custody of files.

ii) Non-maintenance of Index of Documents resulting in problems in retrieval of relevant documents, even if they are available.

iii) Site office documents not sent to Project Office on completion of works and even in cases where sent to Project Office, sent without any index of such documents.

iv) No systematic weeding out of old documents resulting in uneconomic usage of storage space.

27.3 PROCEDURE ORDER ON OPENING, CUSTODY AND FINAL DISPOSAL OF ESSENTIAL PROJECT DOCUMENTS

Printed Manual of Office Filing System had been issued in March 2005 indicating the procedure to be adopted in maintenance and disposal of records pertaining to projects. This has now been rationalised and the Procedure Order on “Opening, Custody and Final Disposal of Essential Project Documents” is given at ANNEXURE 27.1.

GUIDELINES ON CONSTRUCTION PROJECT MANAGEMENT

JULY 2011

LIST OF ANNEXURES

Annexure No.

SUBJECT PAGE No.

2.1 Agreement between the CLIENT and RITES Ltd. 5.1 Proforma for Amendment to the Contract Agreement 5.2 Lumpsum Contract 6.1 Guidelines for Calling and Accepting Quotations instead of

Tenders

6.2 Nomination of Tender Committee- Procedure for Calling and Acceptance of Single Tender

6.3 General Guidelines for fixing requirement of Technical staff for a work

6.4 Typical Press Notification on Notice Inviting Tender 6.5 Qualifying Criteria for Works Contracts

8.1A Comparative Statement – Item Rate Tender 8.1B Comparative Statement – Percentage Rate Tender 8.2 Form of Letter of Acceptance 8.3 Form of Agreement 8.4 Time Limit for Finalization of Tender (Two Packet System of

Technical Bid and Financial Bid)

10.1 Form of Guarantee Bond to be executed by Contractors for removal of defects after completion in respect of Water Proofing Works

10.2 Form of Guarantee Bond to be executed by Contractors for removal of defects after completion in respect of Anti-termite Treatment works

12.1 Proforma for Letter to be issued by the Site Engineer on behalf of Engineer in Charge to the Contractor in cases of Failure by Contractor under Clause 3 of Contract to Rectify / Reconstruct / Replace any Defective Work

12.2 Proforma for Letter to be issued by the Site Engineer on behalf of Engineer-in-Charge to the Contractor in cases of Failure by Contractor under Clause 3 of Contract to lift Suspension of Work / To proceed with the work with due Diligence

Annexure

No. SUBJECT PAGE No.

12.3 Proforma for Letter to be issued by the Site Engineer on behalf of Engineer-in-Charge to the Contractor in cases of Failure by Contractor under Clause 3 of Contract to Accelerate the Progress of Work for Completion by the Stipulated Completion Date

12.4 Proforma for Letter to be issued by the Site Engineer on behalf of Engineer-in-Charge to the Contractor in cases of Failure by Contractor under Clause 3 of Contract to carry out his obligations under the Contract

12.5 Proforma for Letter to be issued by the Engineer-in-Charge to the Contractor on Determination of Contract under Clause 3 of Contract

12.6 Proforma for Letter to be issued by the Engineer-in-Charge to the Contractor on Foreclosure of Contract under Clause 13 of Contract

12.6A Proforma for letter to be issued by the Site Engineer on behalf of the Engineer-in-charge to the Contractor if due to default of the Contractor, part work / part incomplete work is proposed to be taken out of his hands, under Clause 14 of Contract

12.6B Proforma for letter to be issued by the Engineer-in-charge to the Contractor in case action is finally proposed to be taken against the Contractor under Clause 14 of Contract

12.7 Proforma for Letter from the Site Engineer on behalf of Engineer-in-Charge to the Contractor for Rectification of Defects during the Maintenance Period under Clause 17 of Contract

12.8 Proforma for Provisional Certificate of Physical Completion to be issued by the Engineer-in-Charge

12.9 Proforma for Final Completion Certificate to be issued by the Engineer-in-Charge

12.10 Proforma for letter to the State Government Mining Department 13.1 Form of Application by the Contractor for seeking Extension of

Time

13.2 Proforma for Grant of Extension of Time- (Advance intimation Pending Decision on Levy of Liquidated Damages)

13.3 Proforma for Grant of Extension of Time – Without Levy of Liquidated Damages

13.4 Proforma for Show Cause Notice to the Contractor regarding Compensation under Clause 2 In case Termination of Contract is not Contemplated.

13.5 Proforma for intimating the Contractor regarding Levy of Compensation under Clause 2. (Applicable to both cases of Contract being allowed to be Continued or Terminated).

Annexure


13.6 Proforma for Show Cause Notice to the Contractor regarding Compensation under Clause 2 (in case Contract is determined under Clause 3)

14.1 Specimen of Letter by Engineer-in-Charge to Contractor for Provisional Reduction in Rate for Substandard work

14.2 Specimen of Letter of Acceptance by the Contractor of Provisional Reduction of Rate for Substandard work

MANDATORY TESTS – CPWD SPECIFICATIONS (Annexures 16.1 to 16.9)

16.1 Mortars 16.2 Cement Concrete Work 16.3 Reinforced Cement Concrete Work 16.4 Brick Work 16.5 Marble Work 16.6 Wood Work 16.7 Steel Work 16.8 Flooring 16.9 Road Work

16.10 Extracts from IS 456-2000 16.11 Extracts from Chapter 5 of CPWD Specifications on RCC Work 19.1 Contractor’s Notice for Appointment of Arbitrator 19.2 Letter of Appointment of Arbitrator 19.3 Letter of Appointment of Alternate Arbitrator 19.4 Letter to Contractor on Acceptance of Arbitration Award 19.5 Norms for Disposal of Old Records

FORMS FOR RECORD TO BE MAINTAINED (Annexures 20.1 to 20.14)

20.1 Site Order Book 20.2 Inspection Record 20.3 Hindrance Register 20.4 Daily Progress Record 20.5 Cement Register 20.6 Steel Reinforcement Register 20.7 Non-Conforming Items Record 20.8 Quality Audit Record 20.9 Site Coordination Meetings Record

20.10 Guarantee Bonds Record 20.11 Insurance Policies Record 20.12 Drawings Record

Annexure


20.13 Mandatory Tests and Non-Mandatory Tests Record – Specimen Format for Cement

20.14 Paints / Chemical Register 21.1 Register of Measurement Books 21.2 Guidelines on Recording of Measurements and Test Checking 21.3 Proforma for Write Off of Lost MB 21.4 Format for Measurement Book 21.5 Format for Abstract of Measurement to be recorded in MB at

the end of details of measurements recorded for any Bill.

22.1 Register of Payment of Bills to Contractors 24.1 Format for Running Account Bill and Final Bill 24.2 Deviation Statement 24.3 Guidelines on Check and Custody of Bank Guarantee

submitted by the Contractor

24.4 Documents to accompany Running Account Bills 24.5 Documents to accompany Final Bill 24.6 Checklist for check at SBU Office before passing of Bill

(Running Account Bill)

24.7 Checklist for check at SBU Office before passing of Bill (Final Bill)

26.1 List of Documents considered essential for Inspections by CTE and which may be called for Examination of Work

26.2 Register showing over Payment assessed / pointed out by CTE Organisation and subsequent recoveries effected

26.3 Common irregularities pointed out by CTE 27.1 Procedure Order on Opening, Custody and Final Disposal of

essential Project Document.

ANNEXURE 2.1 (Refer Para 2.1)

AGREEMENT BETWEEN _____ (CLIENT) AND RITES LTD. FOR _____ ( WORK)

THIS AGREEMENT MADE ON THIS ____ day of __________ between ________________ having its Office at ________________________________ represented by its ___________ (hereinafter referred to as the “CLIENT”) which expression shall wherever the context so admits or requires include its successors and assigns of the ONE PART and the RITES Ltd., a Govt. of India Enterprise, under the Ministry of Railways having its Registered Office at SCOPE MINAR, Laxmi Nagar, Delhi-110092 represented by its Managing Director _____________ (hereinafter referred to as the ‘CONSULTANT’) which expression shall wherever the context so admits or required include its successors and assigns of the OTHER PART.

WHEREAS

1. The Client is interested to take up Construction of ________ (Name of work) and in that regard wants to avail the services of a Consultant who will be in a position to undertake design, detailed engineering and project management services for the construction of the said Works for and on behalf of the Client.

2. The Consultant is engaged in providing services of the kind in which the Client is interested including survey, design, detailed engineering and project management of the constructions complete in all respects including planning, tendering, contracting, procurement, construction, inspection, site supervision and commissioning of the new works.

3. The Client accordingly desires to avail the services of the Consultant as its Agent and Power of Attorney Holder for the purpose of Construction of __________ (name of work) and the Consultant is willing to render their services to the Client for the Construction of the said works for and on behalf of the Client upon the terms and conditions of this Agreement.

4. Now therefore, in consideration of the mutual promises and covenants hereinafter contained, it is mutually agreed and declared by and between the parties hereto as follows:-

ARTICLE 1–DEFINITIONS

1.1 ‘APPROVAL’ shall mean and include the written consent, either manuscript, type written or printed statement, under signature or seal, as the case may be, given from time to time by the Client or their authorized representative on documents, drawings or other particulars in relation to this Agreement.

1.2 ‘COMMENCEMENT DATE OF CONTRACT’ with reference to Works Contract for actual execution of works shall mean the date on which the land for the work is handed over to the Consultant.

1.3 ‘COMPLETION PERIOD’ with reference to Works Contract shall mean the period from the commencement date of contract to physical completion of the project.

1.4 ‘CONTRACT’ shall mean this AGREEMENT including all exhibits hereto and all documents herein specified and amendments which the parties may hereafter agree in writing to be made to this Agreement.

1.5 ‘CONTRACTOR’ means any agency appointed by the Consultant on behalf of the Client for carrying out construction of different types of works involved in the Project.

1.6 ‘COORDINATING OFFICER’ shall mean the official nominated by the Client to whom all the matters related to the Project shall be referred to by the Consultant for views, decisions, help, approvals etc. as per Scope of Services of the Contract and who shall provide and communicate such views, decisions, help, approvals etc. to the Consultant on behalf of the Client.

1.7 ‘DRAWINGS’ shall mean and include Engineering drawings, sketches showing plans, sections and elevations related to the Project together with modification and/ or revisions thereto.

1.8 ‘ENGINEER / ENGINEER IN CHARGE’ shall mean the person nominated from time to time by the Consultant and shall include those who are expressly authorized by the Consultant to act for and on behalf of the Consultant for the provision of the services related to this Agreement.

1.9 ‘MONTH’ shall mean calendar month.

1.10 ‘PHYSICAL COMPLETION’ with reference to Works Contract shall mean readiness of the Works except in minor respects, which does not prevent occupation of the works for the purpose for which the works have been designed.

1.11 ‘PROJECT or WORKS’ shall mean the Construction of ____________ (Brief description of the Project)

1.12 ‘PROJECT COMPLETION’ with reference to Works Contract shall mean the readiness of all the works in all respects for use, after attending to minor repairs / adjustments.

1.13 ‘SERVICES’ shall mean the responsibilities to be discharged by the Consultant for fulfilling the obligations under this Agreement.

1.14 ‘SPECIFICATIONS’ shall mean and include schedules, detailed descriptions, statement of technical data, performance characteristics, standards as applicable and specified in the Works Contract.

1.15 ‘STANDARDS’–The goods and equipments, utilized for the Works in the Project and the Works in the Project shall conform to the standards mentioned in the Technical Specifications or such other standards which ensure an equal or higher quality and when no applicable standard is mentioned, to the authoritative standard appropriate to the Goods / Equipments utilized in the Works in India and such Standard shall be the latest issued by the concerned Institution like Bureau of Indian Standards etc.

1.16 ‘SUB-CONSULTANT’ shall mean any agency engaged by the Consultant for providing any of the services.

1.17 ‘TEST’ shall mean such process or processes to be carried out by the Consultant as are prescribed in the Works Contract in order to ascertain quality, workmanship, performance and efficiency of goods / equipments or part thereof.

1.18 ‘VENDOR’ means any agency appointed by the Consultant on behalf of the Client for supply of Goods / Equipments for the Project.

1.19 ‘WORDS’ in the singular include the plural and vice versa.

1.20 ‘WRITING’ includes matter either in whole or in part, in manuscript, typewritten, lithographed, cyclostyled, photographed or printed form under or over signature or seal as the case may be.

ARTICLE 2–SCOPE OF WORK

The detailed scope of the work to be rendered by the Consultant is as follows:-

2.1 Ascertain the Client’s requirements, carry out detailed survey of the area and make out conceptual plans for various alternatives as required by the Client, keeping in view the topographical features and functional needs of the location, with respect to the buildings if any, already existing at site, utilities etc. To make out Preliminary Estimates for the various alternatives based on plinth area rate or similar acceptable basis of rate. Freeze the Conceptual Plan as finally decided by the Client and obtain Administrative approval and Expenditure Sanction from the Client for the Estimated Cost of the Works and Consultants’ fee with Service Tax, payable thereon in terms of Article 4 of this Agreement along with 10% permissible excess on both items to take care of possible increase in Cost due to any factor at the stage of preparation of Detailed Estimates based on Detailed Designs and Drawings.

2.2 Carry out detailed soil including Geo-technical investigation to ascertain the safe bearing capacity for design of foundation.

2.3 Carry out architectural design of the buildings keeping in view the need to harmonise with the landscape and other architectural features of the buildings, if any, already existing in the area. (This para may be modified as required)

2.4 Carry out Detailed Designs and Drawings for actual execution of the Work and obtain the approval of the Client.

2.5 Prepare a Detailed Estimate with items based to the extent possible on Standard Schedule of Rates such as that of CPWD duly escalated by Cost Index to reflect the current day Cost and balance as Non Scheduled items. The Estimate will cover Civil Engineering Works, Electrical Engineering Works, other Engineering Works and Special installation like lifts, generators and the other Equipments.

Detailed Estimate shall be prepared to reflect the likely Current Cost of the

Complete works and Clients’ approval taken for the same. If the Total of (i) Detailed Estimate of Cost of Works as made out now (ii) Consultants’ fee payable thereon (iii) Service Tax on item (ii) in terms of Article 4 of this Agreement and (iv) 10% excess over items (i) to (iii) to take care of possible price escalation and minor modifications during the course of execution of Works, exceeds the amount for which the Client has already accorded sanction for Expenditure under Article 2.1 above, the Client will accord Revised Sanction for

Expenditure for the enhanced amount determined on the basis of Detailed Estimate with additions as described above.

2.6 Prepare detailed specifications, tender schedule & tender documents and call tenders for Civil, Electrical, other Engineering and Specialized works. The Bill of Quantities shall be based on the Detailed Estimates as approved by the Client. Where required by the Client, Prequalification of Tenderers shall be done. Otherwise, two Packet system shall be adopted with evaluation of Technical Bid including Check of Satisfaction of Qualification Criteria done first and Financial Bids of only those Tenderers whose Technical Bids are considered acceptable opened. In all cases, Client’s approval for Tender Documents shall be obtained by the Consultant.

2.7 Finalise the Tender adopting RITES’ procedure, after determining the reasonable cost of works based on market rate analysis of major items, duly associating a representative of the Client as a member of the Tender Committee. Take the approval of the Client for engagement of the selected Contractor and the Contract Documents to be adopted. Take Revised Sanction for Expenditure from the Client if the Contract Value along with RITES’ Fees including Service Tax, all enhanced by 10%, exceeds the Sanction for Expenditures taken under Article 2.5.

2.8 Execute the Agreement with the Contractor for and on behalf of the Client as an Agent and Power of Attorney Holder.

2.9 Take single point responsibility for supervision in and execution of the proposed Works by deployment of adequate technical and supporting staff at various sites of works.

2.10 Liaise with Local Bodies and obtain their approvals for the Works and for shifting/ relocating existing utilities as necessary. The Client will provide all possible assistance in this regard. Any delay by the Local Bodies in according their approval for the Works and for shifting/relocation of existing utilities will not be to Consultants’ account.

2.11 Submit periodic Progress Reports in the format and periodicity as stipulated by the Client.

2.12 Assessing, planning and arranging to procure materials and procure/hire construction equipments for Engineering Works, if required as per the Works Contract Conditions.

2.13 Coordinating with main and sub-contractors and rendering technical advice; Holding periodic Progress Meetings and sorting out problems arising if any due to action or inaction of the Client and/ or the Consultant.

2.14 Providing adequate supervising personnel in the field to coordinate, control, supervise, inspect, liaise and report on the works at site;

2.15 Keeping a close watch on Deviations by way of Extra items, Substituted items and Deviations in Quantities of Schedule items. Fixation of Rates for items/quantities covered by Deviation orders adopting RITES procedure. Client to be kept advised of the Deviation orders and rates as fixed. In cases where the Client desires omission or substitution of any BOQ item, check if this is likely to lead to vitiation of Contract and if so draw the attention of the Client to the same

and take his specific approval for the omissions / substitutions. Clients’ Revised Expenditure Sanction to be taken by the Consultant whenever found necessary if the Cost of the work with its Deviation and Price Escalation (if provided for in the Contract) and the Consultant’s fee and Service Tax in terms of Article 4 of Agreement exceed the amount for which Expenditure Sanction has been obtained from the Client as provided for in Articles 2.5 and 2.7.

2.16 Ensuring that the construction is being carried out in accordance with the approved working designs, drawings and specifications and as per programme laid down in the Works Contract Agreement.

2.17 Ensure quality control of the Work including materials and workmanship, certify measurement of work executed, and make progressive payments based on physical realization / completion of works, as per approved procedure and schedule of payments to Contractors;

2.18 Sanction of Extension of Time to the Contractor for completion of Works, with or without Liquidated Damages, subject to keeping the Client advised of the same with full details including the effect on completion Cost of works, if any.

2.19 Finalisation of accounts and closing Works Contracts and furnishing the Accounts along with 4 copies of “As Built” drawings on reproduceable papers to the Client.

2.20 Settling the Claims / disputes, if any, made by the Works Contractors, keeping the Client advised of the same. Where there is disagreement between the Consultant and the Works Contractor, such disputes shall be referred for Arbitration by an Arbitrator as provided for in the Works Contract between the Consultant acting for on behalf of the Client as Agent and Power of Attorney Holder and the Contractor. All amounts payable to the Contractor on his claims decided by the Consultant directly and agreed to by the Contractor will be charged to the Cost of Works. In cases where the Contractor resorts to settling his claims through an Arbitrator, the Client being the Principal Employer will implead himself as a Party in the Arbitration Proceedings along with the Consultant. The Consultant will however fight the Arbitration case for and on behalf of the Client. All claims in favour of the Contractor as per Arbitration Award and the legal expenses involved in dealing with the arbitration proceedings, other than those attributable to gross negligence of the Consultant, will be chargeable to Cost of Works. Items where the Arbitrator gives award in favour of the Contractor overruling the decisions taken by the Consultant in items coming under the powers of the Consultant such as fixation of rates for deviation items, Non scheduled items & substituted items, grant of extension of time etc will not come under the Category of “Gross negligence by the Consultant”.

As regards other items, where there is a dispute between the Client and the Consultant as to whether the item of Award in favour of the Contractor is to be classified as due to “Gross negligence of Consultant” or not, they will be settled by mutual discussions between the Consultant and the Client. If no agreement is reached by such discussions, the issue will be settled through Arbitration under Article 19 of this Agreement. Pending decision by the Arbitrator, the amount covered by such items of award will be tentatively charged to Cost of Works. Same principles as above will also apply to decisions if any in favour of the Contractor in a Court of Law.

2.21 Credit to the Cost of the Works all Liquidated and other damages levied on the Works Contractors.

2.22 Complete administration and management of Contract with the Works Contractor till expiry of the maintenance period and payment of final dues to the Contractor.

2.23 Collect and deliver to the Client, Guarantee Bonds executed by the Contractor for Specialised items of Works such as Waterproofing of structures, Termite Proofing of Structures etc which involve maintenance period extending well beyond the normal maintenance period of structures. Collect and deliver to the Client, Insurance Policies, if any, of Works still current at the time of handing over of works.

2.24 Attend to the inspection, if any, carried out by Government Agencies such as Central Vigilance Commission, comply with their Statutory requirement and effectively arrange for replying to their observations.

2.25 Assist the Client in obtaining the necessary clearance from the Agencies / Departments / Local Bodies concerned for the occupation of the Completed works.

2.26 Getting defects, if any, rectified by the contractor during the 'Defect Liability Period'.

2.27 In all matters, to conform to the conditionalities of and documents approved by the Funding Agency such as World Bank, as stipulated by the Client.

ARTICLE 3–OBLIGATIONS OF THE CLIENT

3.1 The Client will furnish layout plan of the existing structures, if any, and services, if any, in the area where new Works are proposed.

3.2 The Client will nominate a suitable Officer as the Coordinating Officer who shall perform the duties as listed in Article 1.6.

3.3 The Client will hand over vacant possession of land / Site to the Consultant. The Consultant may, if so required, take responsibility for demolition / disposal of existing buildings / structures. Works Contract shall not be awarded by the Consultant for and on behalf of the Client till the site is available free of all encroachments and Local Bodies’ approval obtained for use of the site for the purpose for which it is intended to be used by the Client.

3.4 The Client will make available to the Consultant adequate resources and funds for proper execution of Works and timely payment to the Contractors. The Client shall deposit with the Consultant 33 1/3% of Estimated Cost of Works as per the sanctioned Detailed Estimate, as first instalment. The Client shall release further instalments based on the progress of work and financial projections as described in Article 9 (a). The initial deposit of 33 1/3% would be retained by the Consultant for adjustment against the last portion of the estimated expenditure. In case the Client fails to provide the funds as per requirements of the Consultant, it may be necessary for the Consultant to suspend/abandon the Work. In such an eventuality, the Client shall be solely responsible for all the consequences arising out of such stoppage/ abandonment of the Work including Claims of the Contractors for Compensation/damages etc. due to non payment of dues of the Contractors.

3.5 The Client will assist the Consultant in obtaining from Local Bodies approvals for the Works and shifting / relocating existing utilities as necessary. Any delay by the local Body in according the approval may adversely affect the completion period for which the Consultant will not be responsible. The Client will, with the assistance of the Consultant, obtain the necessary clearance from the Agencies/Departments/Local Bodies concerned for the occupation of the Completed Works.

3.6 The Client will communicate his decisions whenever referred to, within 7 days of such a request from the Consultant.

3.7 The Client shall provide the necessary redeemable Power of Attorney to the Consultant to discharge their obligations under this Contract on behalf of the Client.

3.8 The Client shall pay the consultancy charges to the Consultant, in line with the agreed payment schedule.

3.9 The Client shall not be responsible for any liability arising out of Consultant’s contractual obligations with the Consultant’s architects, personnel, Sub-Consultants, licensors, collaborators, vendors and subordinates who are engaged by the Consultant and whose remuneration / fees are paid by the Consultant from his Consultancy fee.

3.10 The Client shall promptly take over the Works/Project facilities within 15 days from the date of certified completion in all aspects. If for any reason, the Client is unable to comply with the above requirements within the period mentioned above, the Consultant shall allow the Client a further period of 15 days for the taking over of the Works. If the Client fails to take over even within the extended period, the Consultant shall become eligible to claim extra fees as may be mutually agreed between the Parties.

ARTICLE 4–CONSULTANT’S REMUNERATION

a) Consultant’s remuneration would be at ____ per cent on the total of the final Built up cost fully to be borne by the Client as defined in Article 5 below. The fee payable will be initially calculated on the basis of the Cost of Work as per Detailed Estimate as sanctioned. Later on it shall be adjusted on the basis of Works Contract Cost. Finally the fee shall be adjusted as per Percentage of “As Built Up Cost” as defined in ARTICLE 5.

b) The Consultant’s remuneration as determined in Para “a” above will be valid for the period of Validity of this Agreement as stipulated in Article 17, determined on the basis of the Scheduled Completion date of the Works as per the Works Contract initially executed. If the period for Completion of Works gets extended due to any reason with or without liquidated damages to the Works Contractors the Consultant will be paid extra remuneration determined on the basis of Remuneration calculated as in Para “a” above divided by the period of this Agreement in days counting from the date of this Agreement till the expiry of 60 days after the completion of Maintenance Period as per the Works Contract initially executed, multiplied by the number of days of extension sanctioned for the execution of the Work.

c) In addition to the Fee mentioned in Para “a” and “b” above, the Consultant will also be entitled to ‘Service Tax’ on the fees at the rates as stipulated by the Government of India from time to time. Presently the Service Tax is payable at ___ per cent.

d) If, after the date of execution of this Agreement, the Central Government or the concerned State Government imposes any fresh Tax or Charges on the Consultancy fee payable to the Consultant, the same shall be reimbursable to the Consultant by the Client.

e) The stages of payment of Consultancy fees and Service Charges thereon will be as under:-

i) Mobilization fees on Signing of this Agreement 10%

ii) Preparation of Concept Plan to the satisfaction of the Client along with Preliminary Estimate based on it 5%

iii) Preparation of Detailed Designs, Drawings and Estimates 5%

iv) Preparation of Tender Documents 5%

v) Issue, receipt and evaluation of Tenders and appointment of Works Contractors 5%

vi) Balance prorata on the basis of Certification of Works executed.70%

Total 100%

f) Once a month, in the first week, the Consultant shall submit the Consultancy bill at the percentage rates as indicated above, based on the value of works done in the previous month towards the “Built Up Cost” as defined in Article 5 below. The Client will deduct Tax as due and pay the net Consultancy fee to the Consultant within 7 days from the date of receipt of the bill. The Client will also issue Tax Deduction at Source Certificate to the Consultant within the time stipulated in the Income Tax Act.

ARTICLE 5–BUILT UP COST

“Built Up Cost” will consist of the expenditure incurred towards the following, all to be borne by the Client.

i) Gross amount paid to the Contractor towards Construction of the Works as per Works Contract agreement.

ii) Cost of any materials supplied free to the Contractor including Cost of handling, transportation and storage incurred by the Client/Consultant.

iii) Charges, if any, levied by Local Authorities for approval of plans and services and for issue of “Completion”/“No- objection” Certificate for occupation of the Works on Completion.

iv) Charges, if any, levied by Local Authorities/Providers of services such as Water Supply, Drainage, Sewerage etc. for Shifting/relocation of Utilities as well as their disconnection/connection.

v) Cost of Soil tests/Geotechnical investigations.

vi) Cost of litigation, if any, with a Third Party or individual organization to remove legal barriers in the execution of works.

vii) Advertisement Charges for issuing Notice Inviting Tenders.

viii) Cost of testing of materials/workmanship for items for which the Contractor is not required to pay in terms of the provisions in the Works Contracts.

ix) Any amount paid/payable to the Contractor towards his claims as considered reasonable by the Consultant.

x) Any amount paid/payable to the Contractor towards his claims not accepted by the Consultant but decided in favour of the Contractor by an Arbitrator or Court of Law. The amount will include the Cost involved in defending the stand of the Client/Consultant in the Arbitration or Court proceedings. The amount will however exclude the elements of Award of the Arbitrator/Court of Law on items which are finally attributed to Gross negligence of the Consultant.

ARTICLE 6–PROJECT PLANNING AND MONITORING & PROGRESS REPORTING

6.1 The Consultant shall submit an overall Project Schedule in the form of a Network on time scale highlighting all major milestones of the Project. This shall be approved by the Client and would form the basis for monitoring as well as dovetailing function schedules. The Consultant shall update this document once in every quarter and submit to the Client.

6.2 Monthly reports will be sent by the Consultant to the Client so as to reach him by seventh of the next month as per format to be mutually agreed to.

6.3 Review meetings to be organized by the Client will be held every month either at site or at the Clients’ office as decided by the Client and the Consultant.

ARTICLE 7–TENDERING PROCEDURE FOR WORKS

7.1 The Consultant shall follow the Tendering Procedure including Calling of Tenders, Tender Documentation, Evaluation and execution of Contract Agreement with the successful Tenderer, adopting that of _____ (Funding Organization)/or that laid down by the Consultant for similar works, as approved by the Client, with or without modifications as decided jointly by the Client and the Consultant.

7.2 Tenders shall provide for supply of all materials required for the Works and for arrangement for the Tools, Plant and Machinery required in Contractor’s scope except to the extent indicated below as Clients’ supply/arrangement. (list out the details)

7.3 Tender Conditions shall provide that the Tenderer shall include in the rates quoted by him the elements of Sales Tax/VAT on Materials, Sales Tax on Works Contracts and any other Tax on Materials or Labour statutorily applicable as well as Cost of obtaining Insurance Cover as per Statutory requirements. Service Tax as applicable may be let left as reimbursable to the contractor if actually paid and if determined as legally leviable.

7.4 The Consultant shall decide in consultation with the Client if prequalification of Tenderers is required to be done in advance or Two Packet System can be

adopted with Technical Bids and Financial Bids received simultaneously and the Financial Bids of only those Tenderers whose Technical Bids inclusive of Qualification Criteria are found acceptable, opened and evaluated.

7.5 The Tenders shall be evaluated by the Consultant through a Tender Committee set up by the Consultant duly including a representative of the Client in the Committee. Selection of the Contractor for award of work based on the recommendations of the Tender Committee, will be decided by the Competent Authority of the Client. The Tender Committee proceedings along with the decision of the Tender Accepting Authority of the Consultant shall be forwarded to the Client and the Clients’ approval taken before execution of Contract Agreement with the selected Contractor.

7.6 The Competent Authority of the Consultant shall enter into the Contract Agreement with the selected Contractor as Agent and Power of Attorney Holder for and on behalf of the Client as “Employer”. The Arbitration Clause of the Works Contract Agreement shall specifically provide that in the Arbitration Proceedings, both the Client and the Consultant shall be representing the “Employer”.

7.7 All payments made by the Consultant to the Contractor and other agencies within the scope of this Agreement shall be made as per the approved Payment procedure of ___ (Funding Organisation)/Payment procedure of the Consultant for similar works, as approved by the Client with or without modifications as decided jointly by the Client and the Consultant.

7.8 The Consultant shall be responsible for due compliance of all procedural requirements of ____ (Funding Organization) as advised by the Client.

ARTICLE 8–COST TO BE BORNE BY THE CONSULTANT

The Consultant shall bear the Cost of the following items and these are deemed to have been included in the Consultancy fees payable by the Client to the Consultant under Article 4.

8.1 Payments to all personnel engaged by the Consultant including their employees, architects, engineers, Sub-Consultants etc.

8.2 All travel, conveyance, living, boarding, lodging, salary and perks of Consultant’s personnel engaged in the Project, insurance of all kinds for Consultant’s personnel including accident benefits, postage, communication and telephone charges, Internet charges, cost of preparation and printing of all tender documents, electricity and water consumption charges for the Consultants’ Office and all other expenses of the Consultant for the purpose of implementation of the project.

8.3 To meet their obligations under this Agreement, the Consultant shall employ at site their own manpower so that on completion of the project the Client shall have no responsibility for absorbing any of them in its service.

8.4 Income Tax payable by the Consultant.

ARTICLE 9–PAYMENT AND ACCOUNTAL PROCEDURE

As stipulated in Article 3.4, the Client shall provide the Consultant with necessary funds in advance from time to time for meeting out on behalf of the Client, the cost involved in various items under “Built Up Cost” as described in Article 5, to the extent payment is to be effected through the Consultant.

For this purpose, the Client shall make payment of advance amount into the account of the Consultant in ______ (Bank) in ______ (City). These funds will be replenished on quarterly basis based on advance projections provided by the Consultant duly certified by the Consultant’s Accounts Department. Procedure for such projection shall be as under:

a) The Consultant shall make financial projections and forward request of funds for each quarter at least 45 days in advance.

b) The Client shall provide necessary replenishment of funds on quarterly basis based on the Consultant’s request for funds as stated above. These replenishments shall be treated as advance against the Project.

c) The Consultant will open, maintain and operate a separate Bank Account for the project in the name of the Consultant in _____ (Bank) _____ (City). The amount left in the Bank Account will be refunded to the Client at the time of closing of Account, after all accounts are certified by Consultant’s Accounts Department.

d) The Consultant shall ensure that the EMDs/amounts of liquidated damages/penalties recovered from the successful Suppliers/Contractors are deposited in the separate bank account mentioned in Para “c” above. Any interest accruing through short term Fixed Deposits from the Accounts will be retained by the Consultant.

e) Monthly statement of accounts shall be furnished to the Client by the Consultant by end of the following month duly certified by the authorized Finance & Accounts representative of the Consultant. Expenditure particulars of funds shall be submitted to the Client in the format approved by ____ (Funding Agency) for the Client to claim reimbursement / in the format laid down by the Client.

f) Whenever the need arises for obtaining Revised Sanction of Expenditure from the Client as explained in Articles 2.7 and 2.15, the Consultant shall take prompt action to approach the Client with full justification.

g) After completion of work, the Consultant will prepare detailed statement of accounts as per agreed formats covering various works contract wise and the expenditure thereof duly certified by the Consultant’s Authorized Finance & Accounts representative with necessary supporting documents, including copies of final bills and ‘As built’ drawings, duly certified by the Consultant’s Engineers containing all the details of the work.

h) The amounts of Security Deposit and Bank Guarantees received from the Contractors which remain to be refunded as per the contract conditions, at the time of handing over the works or earlier to the handing over, as the case may be, shall be handed over to the Client with details of dates when they become due for refund. Similarly, all amounts of liquidated damages /

penalties, forfeited EMDs/ Security Deposits shall be transferred to the Accounts of the Client.

ARTICLE 10—LABOUR LAWS

10.1 The Consultant shall undertake to ensure compliance of all labour laws which are applicable to their workmen and also obtain through suitable provision in the Works Contracts commitments by the Contractors to whom any part of the Works Contracts envisaged under this Agreement is entrusted, in respect of their workmen.

10.2 The Consultant shall be responsible for all statutory obligations and any other laws in the above regard, in force from time to time, regarding employment or conditions of service of their Sub-Consultants and employees.

10.3 The Consultant shall ensure compliance by the Works Contractors of all safety rules as required under various statutes in India, through suitable provision in the Works Contracts.

10.4 The Consultant shall incorporate third party risk clause in all Works Contracts awarded by the Consultant, so as to ensure that the Client is held harmless and indemnified against any damage or injury to third party on account of any act or omission to act by the employees or representatives of the Contractors engaged for the execution of the work.

ARTICLE 11–MODIFICATION IN WORKS CONTRACTS

Any modification in the Works Contracts with respect to technical or commercial aspects including time limit for completion and deviation by way of extra items, substituted items and deviations in quantities of Schedule items as well as fixation of rates for Deviation, shall be considered by the Consultants and authorized subject to the following.

i) The Client shall be kept advised for information of the Modifications with details of the implications and the justification.

ii) Where the Modification is likely to result in the need for obtaining approval of “Revised Expenditures Sanction” from the Client for an increased amount as mentioned in Article 2.15, the Consultant shall approach the Client promptly with full details and justification.

ARTICLE 12–TIME SCHEDULE

12.1 Time is the essence of contract.

12.2 The Consultant shall complete all items of work indicated in Article 2.1 to 2.6 of this Agreement within ___ months from the date the Client intimates, in writing, the availability of land free from encroachments and Local Bodies approval for the use of the land for the purpose proposed by the Client. However, in the case of works of specialized nature, the time required for completion of items of work indicated in articles 2.1 to 2.6 of this Agreement shall be decided after mutual discussions.

12.3 The Consultant shall furnish to the Client a detailed time-schedule for getting the Works executed, after finalization of the Detailed Estimate based on Detailed Designs and Drawings.

12.4 The Consultant shall make all efforts to get the Works executed as per the time schedule finalized in Consultation with the Client.

ARTICLE 13–RESPONSIBILITY OF CONSULTANT

13.1 The Consultants shall be liable for consequences of errors and omissions arising out of gross negligence on their part or on the part of their employees and shall take necessary action to remedy the defects and deficiencies arising from said negligence. The liability of the Consultant shall be restricted to the period of Validity of this Agreement under Article 17.

13.2 The Consultants shall discharge their obligations under this Agreement in accordance with the agreed time schedule and with due care, diligence and competence generally as stipulated under Article 2 of “Scope of Work”.

ARTICLE 14–LIQUIDATED DAMAGES

14.1 In case the work described in Articles 2.1 to 2.6 is delayed beyond the stipulated period of completion as indicated in Article 12.2, for reasons directly attributable to Consultants, a sum equivalent to ½% (half per cent) of fees for each completed week by which the work has been delayed subject to maximum of 5% of the fees, shall be levied by way of liquidated damages and not by way of penalty. This shall however not absolve the Consultants of the responsibilities and obligations under the contract to complete the execution of work indicated in Articles 2.1 to 2.6 as per the completion time schedule as stipulated in Article 12.2.

14.2 In case the designs prepared by the Consultants are found to be defective as per the standard engineering practices, involving redoing of the work already executed.

i) a sum not exceeding 5% of the fees for that work will be levied on Consultants as liquidated damages.

ii) the Consultants shall prepare schemes for rectification and modification for redoing the work free of cost.

14.3 The total of all liquidated damages will not be more than 10% of Consultancy fees.

14.4 In case this Agreement envisages execution of a number of Works under different Works Contracts, the stipulations in Articles 14.1 to 14.3 above will apply to each such work.

ARTICLE 15–FORCE MAJEURE

15.1 Neither the Consultant nor the Client shall be considered as defaulting in the Performance of their contractual obligations under this Agreement, as long as such performance is prevented or delayed, for reasons, beyond the reasonable Control of the party claiming the existences of Force Majeure such as Acts of God, severe earthquake, cyclone (except monsoon), floods, lightning, land slide, fire or explosions, plague or epidemics, strikes/ lockouts (lasting more than 14 consecutive calendar days), sabotage, blockade, war, riots, invasion, acts of foreign enemies, hostilities (whether war be declared or not), civil war, rebellion, revolution, insurrection or military usurped power or confiscation or trade

embargoes or destruction or requisition by order of any Government or any Public Authority. The party claiming the existence of Force Majeure shall within ten days or within shortest possible period without delay, as the case may be, notify the other party about the occurrence of the Force Majeure event and provide the other details of arising and ceasing of the impediment. At the end of the impediment, the party claiming the existence of Force Majeure shall provide necessary documental proof of cessation.

15.2 As soon as the cause of Force Majeure has got removed, the party whose ability to perform its obligations has been affected shall notify the other of such cessation and of the actual delay incurred in such affected activity, adducing necessary evidence in support thereof. From the date of occurrence of a case of Force Majeure, obligations of the party affected shall be suspended during the continuance of Force Majeure Conditions along with any inability so caused until the cause itself and the inability so caused resulting there from have been removed and the agreed time of completion of the respective obligations under this contract shall stand extended by a period equal to the period of delay occasioned by such events.

15.3 Should one or both the parties be prevented from fulfilling the contractual obligations by state of Force Majeure lasting continuously for a period of six months, the parties shall consult each other regarding the future implementation of the Project.

ARTICLE 16 –AMENDMENTS TO AGREEMENT

Any amendments or modifications to this AGREEMENT must be in writing and shall be signed by both the parties.

ARTICLE 17–TIME LIMIT FOR VALIDITY OF THIS AGREEMENT

(a) This agreement will be valid for a period of 90 days beyond the date when all the following documents are made available by the Consultant to the Client. (i) Final account after closing of works contracts (Refer Article 2.19 and

Article 9g and 9h).

Note: Where there is no Arbitration/Court Proceeding on any claim by Works Contrator, the Final Account will be made out for each such work forming part of the Project, in one part. Where there is any Arbitration/Court Proceeding on any claim by the Works Contractor, the Final Accounts for each such work will be submitted by the Consultant in two parts with the first comprising of all items other than those covered by the Arbitration/Court Proceedings and the second and final part comprising of items arising out of the Arbitration/Court Award.

(ii) Four Copies of “As Built Drawing” on reproducible paper (Refer Article 2.19 and Article 9g)

(iii) Guarantee Bond for Specialized Works and Insurance Policies on Works, if any (Refer Article 2.23)

(b) Any request for clarifications desired by the Client on items (i) to (iii) above or an any other item pertaining to the Agreement or for copies of any missing documents should be made to the Consultant within a period of 30 days from the date of receipt by the Client of each of the documents (i) to (iii) above. If no such request is recevied within the period of 30 days as

mentioned above, the Client shall be deemed to have waived his right to ask for such clarifications and/copies of missing documents.

(c) Where the request for clarifications and/or copies of missing documents has been recevied within period of 30 days as mentioned above and the Consultant fails to furnish his response within the time limit of 30 days before expiry of Validity of the Agreement as defined in Para (a) above, the Validity of the Agreement shall be automatically extended for a futher period of 30 days from the date when the request of the Client is complied with by the Consultant.

ARTICLE 18–TERMINATION OF AGREEMENT

a) The Agreement herein may be terminated at any time by either Party (Client / Consultant) by giving a written notice of two months to the other party. With the termination of the Agreement, the Works Contracts will be operated directly by the Client. Even after the termination of the Agreement, the Consultant shall be liable and be responsible for due certification/approval of any Bills submitted by the Works Contractors at any time, in respect of the Work executed before the termination of the Agreement.

b) In case there is any change in the Constitution of the Consultant, the details will be promptly communicated to the Client. In case the Client is of the opinion that this will affect the Performance of the Consultant under this Agreement, the Client shall be entitled to terminate this Agreement after giving due notice and entrust the work to some other Agency.

c) In case of the Termination under Para “a” or “b” the Consultant shall not be entitled to fees or compensation except of the fees payable to them for the work actually done. The amount of fees so payable shall be decided by mutual discussions between the Client and the Consultant.

d) In case of the Termination under Paras “a” or “b”, the Client may make use of all or any drawings, estimates or other documents prepared by the Consultant, after a reasonable payment for the services of the Consultant for preparation of the same.

ARTICLE 19–ARBITRATION

a) In the event of any dispute or difference relating to the interpretation and application of the provisions of the Contract, such disputes or difference shall be referred by either Party to the Arbitrator or one of the Arbitrators in the Department of Public Enterprises to be nominated by the Secretary to the Government of India in charge of the Department of Public Enterprises. The Arbitration and Conciliation Act 1996 shall not be applicable to the Arbitration under this Clause. The award of the Arbitrator shall be binding upon the parties to the disputes provided, however any Party aggrieved by such award may make a further reference for setting aside or revision of the award to the Law Secretary, Department of Legal Affairs, Ministry of Law and Justice, Government of India. Upon such reference, the dispute shall be settled by the Law Secretary or the Special Secretary / Additional Secretary when so authorized by the Law Secretary, whose decision shall bind the parties finally and conclusively. The Parties in the disputes will

share equally the Cost of Arbitration as may be intimated by the Arbitrator. (Applicable in case the client is a Ministry/Deptt./a PSU of Central Govt.)

OR

In the case of Dispute or difference arising between the Consultant and the Client relating to any matter arising out of or connected with the Agreement, such dispute or difference shall be settled in accordance with the Arbitration and Conciliation Act, 1996 with all up-to-date amendments and Rules made thereunder. The Arbitral Tribunal shall consist of a Sole Arbitrator to be appointed by agreement between the parties and failing such agreement, by the Chairman/Standing Conference of Public Enterprises. (Applicable in case the client is not a Ministry/Deptt./a PSU of Control Cont.)

b) The decision of the Sole Arbitrator shall be final and binding upon both the parties. The Cost and expenses of Arbitration proceedings will be paid by the Parties as determined by the Arbitrator. However, the expenses incurred by each party in connection with the preparation, presentation etc. of its proceedings shall be borne by each party itself.

c) Performance under this Agreement shall continue during the Arbitration Proceedings and payments due to the Consultant by the Client shall not be withheld unless they are the subject matter of the Arbitration proceedings.

d) The Arbitrator shall adjudicate on only such disputes as are referred to him in the Claim Statement and give separate award against each dispute and claim referred to him along with reasons for the award.

e) The fees payable to the Arbitrator shall be paid equally by both the Parties.

f) The Venue of the Arbitration shall be such place as may be fixed by the Arbitrator in his sole discretion.

g) The demand for Arbitration by either Party on the other Party in respect of any claims should be made within the Time Limit for Validity of the Agreement stipulated under Article 17 of this Agreement. Any demand for Arbitration beyond this time limit shall be treated as Time barred and the Party on whom the claims are made shall be discharged and released of all liabilities under this Agreement in respect of such Claims.

ARTICLE 20 – ARBITRATION / COURT CASES INVOLVING WORKS CONTRACTOR

Where the Consultant signs the Agreement with the Contractor for and on behalf of the Client as an Agent/Power of Attorney Holder, in case of any Arbitration / Court claims by the Contractor, both the Client and the Consultant will implead themselves as parties to the Arbitration/Court proceedings. The Consultant will defend the Arbitration/ Court proceedings in coordination with the Client. Award amount including interest, if any declared by the Arbitrator / Court as payable to the Contractor will be made available by the Client to the Consultant. Consequence of any delay in providing funds as required will be to the Client’s account. Award amount including interest and cost of defending the case will form a part of Built up Cost as defined in Article 5(x). The Consultant and the Client will, by mutual discussions, decide on what items of claims, if any, are

attributable to gross negligence of the Consultant. If there is any disagreement on this issue, the same will be referred to for Arbitration under Article 19.

ARTICLE 21–JURISDICTION

The Parties hereby agree that the Courts in the City of ______ alone shall have the jurisdiction to entertain any application or other proceedings in respect of anything arising under this Agreement and any award or awards made by the Arbitrator hereunder shall be filed in the concerned Courts in the aforesaid City only.

(Note: Article 21 is to be deleted in case Article 19 (a) is with provision for Arbitration by an Arbitrator by an Arbitrator in the Department of Public Enterprises).

IN WITNESS HEREOF, the parties have hereunder signed this AGREEMENT the date first written.

For the Client (Signature with For the (Signature with Name, Designation Name, Designation & Seal) & Seal) Consultant Witnesses: Witnesses

1. 1.

2. 2.

ANNEXURE 5.1

(Refer Para 5.1.6)

PROFORMA FOR AMENDMENT TO THE CONTRACT AGREEMENT

Contract No. dated Amendment No. Name of Works Serial Page No. of Contract WHEREAS on the ____ day of ___ an Agreement was entered into by the undersigned ___________________ (Designation) of RITES LIMITED acting for and on behalf of as Agent/Power of Attorney Holder of ______ (hereinafter referred to as the “Employer”) and ____ (hereinafter referred to as the “Contractor”) under which the said Contractor among other conditions contracted to provide ____ (Name of work). AND WHEREAS the said parties are now mutually desirous of amending the said Agreement in certain respects. It is therefore hereby agreed by and between the Parties thereto as follows:- Firstly (First item of amendment)______ (say) Secondly (Second item of amendment ) _____ (say) Thirdly (Third item of amendment) _________ (say) Fourthly–That this Amendment shall be numbered as No. ____with Page No. ___ of the Contract and that the total number of pages on the INDEX of the Contract shall be amended to read as ____ in lieu of ____. Finally–That all other Terms of the Contract shall hold good in all other respects and be in full force and effect. In witness thereof the said Parties have hereto set their respective hands as shown below on ____ date. Signature of Contractor Signature of Engineer in Charge Date Seal

Signature and address of Witness Copy to (Tender Accepting Authority)

Copy to The Employer For information.


Lump Sum Contract

1) This form, as its name indicates, is used for work in which contractors are required to

quote a lump-sum amount for completing the works in accordance with the given designs, drawings, specifications and functional requirements as the case may be. Lump-sum tender can be either: i) For only executing the work as per design, drawing and specification given by RITES / Employer or ii) For executing the work including the element of doing design work and preparation of structural drawings as well, which shall be in keeping with the given functional, structural and architectural parameters, and subject to approval by the competent authority before hand.

2) Drawing and design by RITES/ Client

i) In cases where work is to be executed as per designs and drawing to be supplied to the contractor, all the detailed working drawings, both architectural and structural must be prepared before-hand, and should form part of the tender documents, which should also contain complete and detailed specifications of the work. The tender documents must set out complete scope of the work. Only the drawings and the detailed specifications as contained and / or referred to in the tender documents shall form the basis of execution and payment.

ii) The extra payment or recovery over and above the accepted rate shall be called

for only in the event of authorized deviations from the drawings and specifications (as given and / or referred to in the tender documents) in course of execution and not otherwise.

3) Drawing and design by the contractor – after the award of work

i) In cases where the detailed architectural and structural drawings are to be provided by the contractor, all the architectural and structural data / parameters necessary to work out the cost of the work, details of the functional requirement and complete / detailed specification thereof, including preliminary drawings, if any, must be finalized before call of tenders, and the tender documents must contain all these details so that there is little scope of guess work on the part of the contractor while tendering, and chances of dispute at a later stage are minimized. Any clarification or doubt as may be raised by the intending tenderer should be cleared before the receipt of tender.

ii) A condition should be stipulated in the tender documents that the work shall be

executed as per detailed design and architectural / structural drawings to be prepared by the successful contractor conforming to the given parameters and functional / design requirements as mentioned in the tender documents, and submitted to the department within specified time after the award of work. The contractor shall accordingly get the designs / drawings approved by RITES / Client before taking up execution of the work.

iii) In case any modification for any reason is ordered in course of execution, suitable adjustment for extra payment or recovery shall be effected only if such modification results in change in the scope of work as given in the tender documents, or any change from the specified parameters.

4) Drawing and design by the contractor – before the award of work

i) Where the contractor is required to give the design and structural drawings, the contract can suffer from the following infirmities: (a) The contractor may under-design the structure in order to reduce the cost and win the contract, or (b) During the proof checking of the structural design, there could be a tendency on the part of the contractor not to agree to RITES genuine contention for revising the structural design that may increase the cost of structure to his disadvantage. ii) Wherever the above problem (s) is / are anticipated, the tenders shall be invited in a two –bid system,

a) The technical bid, containing the architectural plans, structural design calculations, structural drawings, service plans, the detailed measurement sheets, and other technical parameters as may be required, etc.

b) The price bid.

iii) The technical bids shall be evaluated by a Committee chaired by the

tender accepting authority and comprising of officers at appropriate level from the disciplines concerned with the work. The Committee shall obtain clarifications from the tenderer (s) and / or call them for discussions wherever required, and select a final scheme. The same shall be made available or made known to all the participating tenderers, preferably through a pre-bid conference, and invite revised technical bids from them, if required.

iv) After examining the technical bids / revised technical bids, and equalizing the same in respect of all the tenderers, the price bids shall be opened. If the tenderers are asked to modify their structural design and calculations as a result of this exercise, or if the validity period of the price bids expire, they shall be given the chance of offering revised price bids, and in that event, only the revised price bids shall be opened.

v) The NIT approving authority shall consider paying to all the participating tenderers a reasonable and specified amount for furnishing all the above details along with their tenders, if it is felt that the specified requirements so warrant. In that event, the same should be suitably incorporated in the Tender Document as well as in the advertisements through website / press.

5) The lump sum tender documents where Drawings and Designs are to be

supplied by RITES / Client (refer Para 2 above) shall contain - i) a) the detailed architectural and structural drawings

b) detailed specifications for the various items and components of the work

c) the schedule of quantities for the various items and components of the work

d) the inclusions in and exclusions from the scope of the contract, if required, for better clarity, and

e) the various stages of work, and the percentage of the contract value for each stage for release of intermediate and final payments.

ii) The schedule of quantities referred to above is only limited for the

purpose of assessing the quantum of work involved by the tenderers. It is not meant for subsequent measurement and payment in the course of execution of the work. Before submitting their tenders, the tenderers shall, therefore, have to satisfy themselves that the quantities given in the tender documents for the various items and components of the work are correct. Deficiencies noticed, if any, should be immediately brought to the notice of the tender inviting authority, who shall examine the same, and make necessary corrections, if required, to the tender documents before receipt of he tenders.

iii) The contractor shall execute the work as per the drawings and specifications as given in the tender documents, and shall have no claim for any payment on account of deviations and variations in quantity of any items (s) or component (s) of the work, unless they are authorized deviations from the parameters, drawings and specifications contained in the tender documents.

iv) The rates of deviated items shall be determined on the lines of clause 12.2 of Clauses of Contract for percentage / item rate contracts.

v) The Controlling Site Engineer and the Project Coordinator shall satisfy themselves that the work has been done in each stage in conformity to the drawings and specifications contained in the tender documents and certify the same before recommending to the SBU Office for the release of the stage payment. Project Coordinator shall conduct test checks to the prescribed levels.

ANNEXURE 6.1 (Refer Para 6.1.1)

GUIDELINES FOR CALLING AND ACCEPTING QUOTATIONS

INSTEAD OF TENDERS

1. The quantity of work/supply should not be split with an intention to bring the value down to a level of quotation.

2. Quotation should be called in cases of one time delivery only within a short period or any emergent/immediate requirement or for small items costing not more than Rs. 20,000/-. No repeat order is permitted in case of work undertaken on quotation basis.

3. Minimum three sealed quotations should be collected/called from reputed and known contractors/ suppliers. There need not be prior finance concurrence but the basis of selection of the firms should be recorded.

4. There is no need to form a tender opening committee for the quotations. The same should be opened by an officer of the rank of Manager and a comparative statement prepared and got vetted from Finance as in the case of the tenders.

5. Based on the comparative statement, the competent authority can decide the quotations without going through process of tender committee. The accepting authority should satisfy him / her about the reasonability of rates and other terms with reference to the estimate and prevailing market conditions.

6. The basis of acceptance should be the lowest qualified quotation. All principles of financial propriety applicable to tender evaluation should be followed.

7. Requirement of deposit of earnest money or submission of performance guarantee may be waived by the accepting authority. Warranties should, however be insisted depending upon nature of work or equipment.

8. Advance payment should be avoided as far as possible.

9. A formal acceptance order should be issued.


NOMINATION OF TENDER COMMITTEE–PROCEDURE FOR

CALLING AND ACCEPTANCE OF SINGLE TENDER

Prior administrative approval of the authority competent to call for single tender, as per Schedule of Powers in force shall be obtained, besides obtaining finance concurrence.

Before according such administrative approval, the competent authority shall satisfy himself that the following conditions are fulfilled:

a) That the situation is emergent.

Emergent situations would cover:

(i) Accidents, force majeure, etc. invloving dislocation of essential services/work.

(ii) Works of specialized nature to be personally approved by the Divisional Head with prior concurrence of Finance.

(iii) Any other situation where the Executive Director personally considers it inescapable to call for single tender subject to the following provisions:

* This power cannot be sub-delegated.

* Prior financial concurrence is obtained.

b) There have been no bids to tenders on minimum two times)

c) That in the case of proprietary articles, it is certified that a similar article is not manufactured by any other firm which could be used in lieu.

Tight targets and urgency cannot be accepted as a reason for calling a single

tender.

ANNEXURE 6.3

(Refer Para 6.4.1. VIII)

GENERAL GUIDELINES FOR FIXING REQUIREMENT OF TECHNICAL STAFF FOR A WORK

Cost of work

Rs. In lakh)

Requirement of Technical staff Minimum experience

(Years)

Designation

Qualification Number

More than 1000 i) Project Manager with degree in corresponding discipline of Engineering

ii) Graduate Engineer

iii)Graduate Engineer

or

Diploma Engineer

1

1

2

2

10

5

Nil )

)

5 )

Principal Technical Representative

Technical representative

Technical representatives

500 to 1000 i) Graduate Engineer


or

Diploma Engineer

1

2

2

5

Nil )

)

5 )


Technical Representatives

200 to 500 i) Graduate Engineer


or

Diploma Engineer

1

1

1

5

Nil )

)

5 )


Technical Representative

50 to 200 Graduate Engineer 1 5 Principal Technical Representative

10 to 50 Graduate Engineer

Or

Diploma Engineer

1

1

Nil )

)

5 )


Notes: 1. ‘Cost of work’, in Table above means cost of work put to tender plus the market value of cost of materials, if any, to be supplied free to the contractor.

2. Rate of recovery in case of non compliance of Clause 36 (iv) will be as stipulated in Schedule F of Tender Document.


RITES LIMITED (A Government of India Enterprise)

NOTICE INVITING TENDER

N I T No. ____________

GM ( ), RITES Limited on behalf of _____________ invites sealed tenders from contractors who fulfill Qualifying Criteria stipulated in the Tender document for the following work: Name of work ___________ Estimated Cost ______________EMD _______________ Completion period ______________ Last date of submission of tender _____________ Completed Tender documents including Qualifying Criteria, can be purchased from (Address) __________ Phone _____________ Fax___________ at a cost of Rs. ___________ or downloaded from our web’ site www.rites.com. Amendments/Corrigendum, if any, would be hosted on the website only


QUALIFYING CRITERIA FOR WORKS CONTRACTS

1) General “Qualifying Criteria for Works Contracts” as appearing in Annexure I of RITES Standard Tender and Contract Document as corrected upto date, will be applicable subject to the following guidelines. 2) Categories of Works i) Small Works Costing upto and including Rs.1 Crore ii) Normal Works Costing above Rs.1 Crore and upto and including Rs.30

Crores iii) Large Works Costing above Rs.30 Crores 3) Packet Systems to be followed i) Small works - Single Packet ii) Normal Works - Two Packets iii) Large Works - Two Packets 4) Specific provision for Small works For small works, only the criterion of Works Experience will be applicable. Criteria of Annual Turnover, Solvency and Profitability will not be applicable. 5) Normal and Difficult areas Difficult areas are North East States, J&K, Jharkhand, Chattisgarh and Andaman & Nicobar Islands. Rest of India will fall under the category of Normal areas. 6) Estimated cost of work Estimated cost of work put to Tender is the anticipated Contract cost payable to the Contractor. The Value of materials, if any, to be supplied free to the contractor, will be taken as ‘Nil’ while working out the Estimated cost of work. 7) Annual Financial Turnover The minimum Annual Financial Turnover in any one of the last five financial years should be fixed as under: i) For works in Normal Areas - 1.0 x Estimated Cost of Works x 12 Completion Time in months

ii) For works in Difficult areas - 0.5 x Estimated Cost of work x 12 Completion Time in months If the completion period is less than 12 months, the Minimum Annual Financial Turnover required shall be restricted to one time the cost of work for Normal Areas and Half the cost of work for Difficult Areas. 8) Work Experience (A) Similar Works Experience The following stipulations should be kept in mind while indicating the minimum value of Similar works in Qualifying criteria.

i) For works in Normal Areas One similar work of Minimum value of 80% of the Estimated Cost of work plus the assessed value of Materials, if any stipulated to be issued by the Employer free of cost. Or Two Similar Works each of Minimum value of 50% of the Estimated Cost of work plus the assessed value of materials, if any stipulated to be issued by the Employer free of cost. Or Three similar works each of Minimum Value of 40% of the Estimated Cost of work plus the assessed value of materials, if any stipulated to be issued by the Employer free of cost.

ii) For works in Difficult Areas One similar work of Minimum Value of 50% of the Estimated Cost of work plus the assessed value of materials, if any stipulated to be issued by the Employer free of cost. Or Two similar works each of Minimum value of 40% of the Estimated Cost of work plus the assessed value of materials, if any stipulated to be issued by the Employer free of cost. (B) Construction Experience in Key Activities / specified components With the approval of the Tender Approving Authority, a few specialized components of work may be stipulated.

9) Solvency Certificate The minimum Solvency requirement should be fixed as 40% of the Estimated cost of work. 10) Profitability The Bidder should be a Profit (Net) making firm and shall have made profit in each of the two immediately preceding Financial Years and in atleast one out of three earlier Financial Years.

ANNEXURE 8.2

(Refer Para 8.14.2)

(FORM OF LETTER OF ACCEPTANCE)

(By REGD POST / ACK.DUE)

(On the letter head of RITES)

NO. : RITES/ Dated :

To

_________________

(Name & Address of the Contractor)

Dear Sirs,

Sub: TENDER No. FOR THE WORK OF

Ref: Your Tender dated _________________ and letters dated _____________

and this office letter Nos. ___________ dated___________ in reply to the same.

This is to notify you that your Tender for the work under reference has been accepted by the Competent Authority of RITES LIMITED for a total Contract Price of Rs. _______ (Rupees _____________only) in its capacity as an Agent /Power of Attorney Holder acting for and on behalf of ______ (the Employer).

Pursuant to Clause 1 of the Contract, you are required to furnish irrevocable Performance Guarantee for an amount equivalent to 5% (Five percent) of the Contract Price and on Additional Performance Guarantee for an amount of Rs. ‐‐‐‐‐‐‐‐‐‐‐‐ (if applicable). The Guarantee Bonds arranged for an amount of Rs.______________ are required to be submitted within ___ days of issue of this Letter of Acceptance. Bank Guarantees issued by the following Banks will not be acceptable _____________________ (Names of Banks _________)

The time of ________months allowed for execution of the work will be reckoned from the date of start as defined in Schedule F or from the first day of the handing over of the site, whichever is later, in accordance with phasing, if any, indicated in tender document.

You are requested to contact _________ (complete designation and address of the Project Coordinator) for carrying out the contract.

You are also requested to attend this office within Twenty Eight days from the date of issue of this letter for execution of the formal agreement. It may be noted that no payment shall be

made for any work carried out by you till the Agreement is executed and till such time the Performance Guarantee and Additional Performance Guarantee (where applicable) has/have been submitted by you.

This Letter of Acceptance is being sent to you in duplicate and you are requested to return without delay one copy of the letter duly signed and stamped, as a token of your acknowledgement.

Kindly note that this Letter of Acceptance shall constitute a binding Contract between us pending execution of formal Agreement.

Your letters as well as this office letters referred to above shall form part of the Contract.

Yours faithfully,

RITES LIMITED

Agent / Power of Attorney Holder

For and on behalf of______ (The Employer)

Copy to :

1. ___________ (The Employer) for information.

(To be included on the Original sent to the Contractor)

2. Project Coordinator (Complete designation and address)

3. Associated Finance (Not in original)


FORM OF AGREEMENT

(ON NON JUDICIAL STAMP PAPER OF APPROPRIATE VALUE)

Agreement No. ________ dated ________

THIS AGREEMENT is made on _________ day of _______ Two thousand ________ between RITES Ltd., a Government of India Enterprise and a Company registered under Companies Act, 1956 having its registered office at SCOPE Minar, Laxmi Nagar, Delhi-110012 and its Corporate Office at RITES BHAWAN, Plot No.1, Sector 29, Gurgaon (Haryana) representing through ___________ RITES LIMITED acting for and on behalf of and as an Agent / Power of Attorney Holder of _____ , hereinafter called the Employer (which expression shall, wherever the context so demands or requires, include their successor in office and assigns) on one part and M/s. _______ hereinafter called the Contractor (which expression shall wherever the context so demands or requires, include his/their successors and assigns) of the other part.

WHEREAS the Employer is desirous that certain works should be executed viz. (brief description of the work) ______ and has by Letter of Acceptance dated ______ accepted a tender submitted by the Contrctor for the execution, completion, remedying of any defects therein and maintenance of such works at a total Contract Price of Rs. _______ (Rupees _________________ only)

Now THIS AGREEMENT WITNESSETH as follows:-

1. In this agreement words and expressions shall have the same meaning as are respectively assigned to them in the Conditions of Contract hereinafter referred to.

2. The following documents in cojunction with Addenda/ Corrigenda to Tender Documents shall be deemed to form and be read and construed as a part of this Agreement viz.

(a) The Letter of Acceptance dated ..............

(b) Priced Schedule (Bill) of Quantities

(c) Notice Inviting Tender and Instructions to Tenderers

(d) RITES Tender & Contract Form

(e) Special Conditions

(f) Schedules A to F

(g) Technical specifications

(h) Drawings

(i) Amendments to Tender Documents (list enclosed)

(j) General Conditions of Contract (read with Correction Slip Nos. 1 to ___ ) comprising of:

(i) Conditions of Contract

(ii) Clauses of Contract

(iii) RITES Safety Code

(iv) RITES Model Rules for the protection of Health and Sanitary arrangements for Workers

(v) RITES’ Contractor’s Labour Regulations

3. In consideration of the payment to be made by the Employer to the Contractor as hereinafter mentioned, the Contrator hereby covenants with the Employer to execute, complete, remedy defects therein and maintain the works in conformity in all respects with the provisions of the Contract.

4. The Employer hereby covenants to pay to the Contractor in consideration of the execution, completion, remedying of any defects therein and maintenance of the works, the contract price or such other sum as may become payable under the provisions of the contract at the time and in the manner prescribed by the Contract.

IN WITNESS where of the parties here to have caused their respective common seals to be hereinto affixed (or have herewith set their respective hands and seals) the day and year first above written.

SIGNED, SEALED AND DELIVERED BY

_________________________ _____________________

In the capacity of ______ representing RITES LIMITED

In the capacity of Agent / Power of

of Attorney Holder

On behalf of M/s. _______ For and on behalf of ________

(The Contractor) (The Employer)

In the presence of In the presence of

Witnesses (Signature, Name & Witnesses (Signature, Name &

Designation) Designation)

1. 1.

2. 2.


TIME LIMIT FOR FINALISATION OF TENDER

(TWO PACKET SYSTEM OF TECHNICAL BID AND FINANCIAL BID)

NOTE: In case of Single Packet System total time can be reduced to 40 days in place of 70 days.

i) Opening of Tender (Technical Bid) D

ii) Submission of Briefing note to Tender Committee by the Briefing Committee (D + 5)

iii) Tender Committee dispatches letters asking for clarifications from the tenderers (D + 7)

iv) Tender Committee reviews the clarifications and submits its recommendations to the Accepting Authority (D + 22)

v) Tender Accepting Authority communicates its decision about the Tenderers whose Technical Bids are acceptable. Tenderers concerned advised of Date and Time for opening Of Financial Bids. (D + 30)

vi) Opening of Financial Bids (D + 40)

vii) Submission of Briefing Note and Comparative Statement to the Tender Committee by Briefing Committee (D + 45)

viii) Tender Committee reviews the above and submits its recommendations to the Accepting Authority (D + 55)

ix) Accepting Authority’s decision (D + 68)

x) Issue of Letter of Acceptance to the Successful Tenderer (D + 70)


FORM OF GUARANTEE BOND TO BE EXECUTED BY CONTRACTORS FOR REMOVAL OF DEFECTS AFTER

COMPLETION IN RESPECT OF WATER PROOFING WORKS (ON NON-JUDICIAL STAMP PAPER OF Rs.10/-)

The Agreement made this ______ day of _____ Two thousand and ____ between _____ (hereinafter called the “GUARANTOR” of the one part) and ________ (hereinafter called the “EMPLOYER”) on the other part.

Whereas this agreement is supplementary to a contract (hereinafter called the Contract) dated ______ and made between the Guarantor of the one part and the Employer acting through RITES Ltd. as Agent / Power of Attorney Holder of the other part, whereby the Contractor, inter alia, undertook to render the buildings and structures in the said contract cited completely water and leak-proof.

And whereas Guarantor agreed to give a guarantee to the effect that the said structures will remain water and leak-proof for five years from the date of giving of water proofing treatment.

Now the Guarantor hereby guarantees that water proofing treatment given by him will render the structures completely leak-proof and the minimum life of such water proofing treatment shall be five years to be reckoned from the date after the maintenance period prescribed in the contract.

Provided that the Guarantor will not be responsible for leakage caused by earthquake or structural defects or misuse of roof or alteration and for such purpose.

a) Misuse of roof shall mean any operation which will damage water-proofing treatment, like chopping of firewood and things of the same nature which might cause damage to the roof.

b) Alteration shall mean construction of an additional storey or a part of the roof or construction adjoining to existing roof whereby water-proofing treatment is removed in parts.

c) The decision of the Employer with regard to cause of leakage shall be final.

During this period of guarantee, the Guarantor shall make good all defects and in case of any defect being found, render the building water proof to the satisfaction of the Employer at his cost and shall commence the work for such rectification within seven days from the date of issue of the notice from the Employer calling upon him to rectify the defects failing which the work shall be got done by the Employer by some other contractor at the Guarantor’s cost and risk. The decision of the Employer as to the cost, payable by the Guarantor shall be final and binding.

That if Guarantor fails to execute the water proofing or commits breach thereunder then the Guarantor will indemnify the Employer and his successors against all loss, damage, cost expense or otherwise which may be incurred by him by reason of any default on the part of the Guarantor in performance and observance of this supplementary agreement. As to the amount of loss and / or damage and / or cost incurred by the Employer the decision of the Employer will be final and binding on the parties.

In witness whereof these present have been executed by the Guarantor _______ and by ________ (Name and Designation of Officer of RITES Ltd. ) acting for and on behalf of the Employer as Agent / Power of Attorney Holder on the day, month and year first above written.

SIGNED, SEALED and delivered by GUARANTOR in the presence of :-

1. 2. SIGNED for and on behalf of RITES LTD. by ________ in the presence of:- 1. 2.

Copy to the Employer


FORM OF GUARANTEE BOND TO BE EXECUTED BY CONTRACTORS FOR

REMOVAL OF DEFECTS AFTER COMPLETION IN RESPECT OF ANTI TERMITE TREATMENT WORKS

(ON NON JUDICIAL STAMP PAPER OF Rs. 10/-)

This Agreement made this ___ day of Two Thousand ____ between M/s.____________ (hereinafter called the “GUARANTOR” of the one part) and the ____ (hereinafter called the “EMPLOYER” of the other part).

Whereas this agreement is supplementary to a contract (hereinafter called the Contract) dated _____ made between the Guarantor of the one part and the Employer acting through RITES Ltd. as Agent / Power of Attorney Holder of the other part, whereby the Contractor, interalia, undertook to render the Buildings and structures in the said contract cited completely Termite proof.

And whereas the Guarantor agreed to give a guarantee to the effect that the said structures will remain Termite-proof for ten years to be reckoned from the date after the maintenance period prescribed in the contract expires.

During this period of guarantee the Guarantor shall make good all defects and for that matter, shall replace at his risk and cost, such wooden members as may be damaged by termites and in case of any other defect being found he shall render the building termite proof at his cost to the satisfaction of the Employer and shall commence the works of such rectification within seven days from the date of issuing notice from the Employer calling upon him to rectify the defects failing which the work shall be got done by the Employer by some other Agency at the Guarantor’s cost and risk and in the latter case the decision of the Employer as to the cost recoverable from the Guarantor shall be final and binding.

That if the Guarantor fails to execute the Anti Termite Treatment or commits breaches there under, then the Guarantor will indemnify the Employer and his successors against all loss, damage, cost expense or otherwise which may be incurred by him by reason of any default on the part of the Guarantor in performance and observance of this supplementary agreement. As to the amount of loss and / or damage and / or cost incurred by the Employer, the decision of the Employer will be final and binding on the parties.

In witness whereof these present have been executed by the Guarantor ___________ and by ___ (Name and Designation of Officer of RITES Ltd.) for and on behalf of the Employer as Agent / Power of Attorney Holder on the day, month and year first above written..

SIGNED, SEALED and delivered by the GUARANTOR in the presence of ___

1. 2. SIGNED for and on behalf of RITES LTD. by —— in the presence of - 1. 2.

Copy to the Employer


PROFORMA FOR LETTER TO BE ISSUED BY THE SITE ENGINEER ON BEHALF

OF ENGINEER-IN-CHARGE TO THE CONTRACTOR IN CASES OF FAILURE OF

CONTRACTOR UNDER CLAUSE 3 OF CONTRACT TO RECTIFY/

RECONSTRUCT/REPLACE ANY DEFECTIVE WORK

(Same Proforma can be used with some modification if work is being performed in an inefficient or improper or unworkman like manner)

BY REGD. POST / ACK. DUE (NOTICE UNDER CLAUSE 3 (i) OF CONTRACT)

Office of _______ (Site Engineer)

Letter No. dated

To

(Contractor) Address

Dear Sir,

Sub: Contract Agreement No. ______ dated ____ Name of work ___________

Your attention is invited to the instructions issued on ______ in the Site Order Book wherein you have been directed to rectify/reconstruct/replace the following defective work. ___________________

1. It is noticed that in spite of the fact that considerable time has elapsed since the issue of such instructions, you have not taken any action to rectify/reconstruct/replace the defective work.

2. It is accordingly felt that you are not in a position to discharge your obligations under the contract. I therefore hereby on behalf of _______ (Engineer in charge) give you notices that if the said rectification/reconstruction/replacement of the defective work is not taken up by you within 7 days of the date of issue of this letter and you complete the same within the next —— days thereafter, the undersigned will be obliged to recommend to the Competent Authority for determination of the Contract on account of your default in the discharge of your contractual obligation. In the event of such a Determination of the Contract, in terms of Clause 3 (i) of the Contract, the Earnest Money Deposit, Security Deposit already recovered and Performance Guarantee shall be forfeited by the Employer and further action will be taken as stipulated in Clause 3 of the contract, without prejudice to the other rights or remedies available to the Employer under the terms of the Contract or under law.

3. Please acknowledge receipt of this letter.

Yours faithfully,

for Engineer-in-Charge

Copy to:

(Engineer-in-Charge) for information.


PROFORMA FOR LETTER TO BE ISSUED BY THE SITE ENGINEER ON BEHALF OF ENGINEER-IN-CHARGE TO THE CONTRACTOR IN CASES OF FAILURE BY CONTRACTOR UNDER CLAUSE 3 OF CONTRACT TO LIFT SUSPENSION OF

WORK / TO PROCEED WITH THE WORK WITH DUE DILIGENCE

BY REGD. POST / ACK. DUE (NOTICE UNDER CLAUSE 3 (ii) OF CONTRACT)


Letter No. dated

To


Dear Sir,

Sub: Contract Agreement No. ______ dated ____ Name of work ___________

Your attention is invited to the instructions issued on ______ in the Site Order Book wherein you have been directed to restart the work which has been kept suspended since ______ (date) without any reasonable cause / to proceed with the work with due diligence so as to complete the work within the stipulated completion date _____.

1. It is noticed that in spite of the fact that considerable time has elapsed since the issue of such instructions, you have not taken any action to restart the work / to proceed with the work with due diligence.

2. It is accordingly felt that you are not in a position to discharge your obligations under the contract. I therefore hereby on behalf of _______ (Engineer-in-charge) give you notices that if the said restarting of the work/ proceeding with the work with due diligence is not taken up by you within 7 days of the date of issue of this letter and you complete the same within the contract period the undersigned will be obliged to recommend to the Competent Authority for determination of the Contract on account of your default in the discharge of your contractual obligation. In the event of such a Determination of the Contract, in terms of Clause 3 (ii) of the Contract, the Earnest Money Deposit, Security Deposit already recovered and Performance Guarantee shall be forfeited by the Employer and further action will be taken as stipulated in Clause 3 of the contract, without prejudice to the other rights or remedies available to the Employer under the terms of the Contract or under law.


Yours faithfully,

For Engineer-in-Charge

Copy to:



PROFORMA FOR LETTER TO BE ISSUED BY THE SITE ENGINEER ON BEHALF OF ENGINEER-IN-CHARGE TO THE CONTRACTOR IN CASES OF FAILURE BY

CONTRACTOR UNDER CLAUSE 3 OF CONTRACT TO ACCELERATE THE PROGRESS OF WORK FOR COMPLETION BY THE STIPULATED

COMPLETION DATE

BY REGD. POST / ACK. DUE (NOTICE UNDER CLAUSE 3 (iii) OF CONTRACT)


Letter No. dated

To (Contractor) Address

Dear Sir,

Sub: CONTRACT AGREEMENT NO. ______ DATED ____ NAME OF WORK ___________

The date of completion of work under the above mentioned contract is ___ and I notice that the progress of the work has been very slow and unless you proceed with due diligence and accelerate the progress of the work, you are not likely to complete the work by the stipulated completion date.

1. I on behalf of ______ (Engineer-in-charge) hereby draw your attention to the fact that time is of the essence of this contract and accordingly give you notice that if you do not take necessary action to accelerate the progress of work, within 7 days of issue of this letter, I will be obliged to recommend to the Competent Authority for determination of the Contract on account of your default in the discharge of your contractual obligation. In the event of such a Determination of the Contract, in terms of Clause 3 (iii) of the Contract, the Earnest Money Deposit, Security Deposit already recovered and Performance Guarantee shall be forfeited by the Employer and further action will be taken as stipulated in Clause 3 of the contract, without prejudice to the other rights or remedies available to the Employer under the terms of the Contract or under law.


Yours faithfully,

For Engineer-in-Charge

Copy to : (Engineer-in-Charge) for information.


PROFORMA FOR LETTER TO BE ISSUED BY THE SITE ENGINEER ON BEHALF OF ENGINEER-IN-CHARGE TO THE CONTRACTOR IN CASES OF FAILURE BY

CONTRACTOR UNDER CLAUSE 3 OF CONTRACT TO CARRY OUT HIS OBLIGATIONS UNDER THE CONTRACT

BY REGD. POST / ACK. DUE (NOTICE UNDER CLAUSE 3 (iv) OF CONTRACT)


Letter No. dated

To


Dear Sir,


Your attention is invited to the instructions issued on __ in the Site Order book wherein you had been directed to carry out the following obligations under the contract / to comply with the following terms and conditions of the contract. ______________ _________

1. It is noticed that in spite of the fact that considerable time has elapsed since the issue of such instructions, you have not taken any corrective action.

2. It is accordingly felt that you are not in a position to discharge your obligations under the contract. I therefore hereby on behalf of _______ (Engineer in charge) give you notice that if you do not take necessary correction action within 7 days of the date of issue of this letter the undersigned will be obliged to recommend to the Competent Authority for determination of the Contract on account of your default in the discharge of your contractual obligation. In the event of such a Determination of the Contract, in terms of Clause 3 (iv) of the Contract, the Earnest Money Deposit, Security Deposit already recovered and Performance Guarantee shall be forfeited by the Employer and further action will be taken as stipulated in Clause 3 of the contract, without prejudice to the other rights or remedies available to the Employer under the terms of the Contract or under law.


Yours faithfully,

for Engineer-in-Charge

Copy to :



PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-CHARGE TO THE

CONTRACTOR ON DETERMINATION OF CONTRACT UNDER CLAUSE 3 OF CONTRACT

BY REGD. POST / ACK. DUE

Office of _______ (Engineer-in-Charge)

Letter No. dated

To


Dear Sir,


Ref: Show Cause Notice under Clause 3(____) of Contract issued vide letter No. _______ dated _____ by ______ (Site Engineer)

In spite of the Notice issued to you through letter under reference in connection with the work to be executed under the above mentioned contract, you have failed to (score out whatever is not applicable and add / delete as required)

• Rectify / reconstruct / replace the following defective work _______

• Stop performance of the following work in an inefficient, improper and unworkman like manner.

• Lift suspension of work imposed by you without any reasonable cause and proceed with the work with due diligence.

• Complete the work within the stipulated date of completion of _______

• Carry out your obligation under the Contract and comply with the terms and conditions of the contract as detailed below______

• No reply has been received to the Show Cause Notice under reference till date/Your reply vide your letter No._____ dated _____ in response to the Show Cause Notice has been considered carefully but not found to the satisfaction of the Engineer-in-charge due to reasons mentioned below. __________ (strike out whichever alternative is not applicable).

1. Therefore, the undersigned ____ (Designation) of RITES Limited acting for and on behalf of as Agent / Power of Attorney Holder of __________ (the Employer) in exercise of the powers vested in me in terms of Clause 3 of Contract and without prejudice to any other right or remedy which shall have accrued or shall accrue hereafter to the Employer under the terms of the above said Contract, hereby terminate your Contract on account of your default and the said contract shall stand terminated with effect from ____ (date).

2. You are advised that with the termination of the Contract in your favour, in terms of Clause 3 of Contract, your Earnest Money Deposit, Security Deposit already recovered and Performance Guarantees under the Contract shall stand forfeited and shall be absolutely at the disposal of the Employer.

3. You are accordingly requested to report to office of ____ (Site Engineer) in person or through an accredited representative at _____ on ______ where an inventory of complete / incomplete works will be made and recorded jointly. In the event of your failure to keep up this appointment, inventory will nevertheless be prepared not withstanding your absence and the same shall be final and fully binding on you.

4. Please also note that in terms of the provisions under Clause 3 of Contract, the works remaining unexecuted by you and now taken out of your hands, will be got executed by another Contractor and you will not be allowed to participate in the tendering process for the balance work.

5. It may also be noted that in terms of Clause 3 of Contract, with this Termination of Contract you shall have no claim to compensation for any loss sustained by you by reason of your having purchased or procured any material or entered into any engagements or made any advances on account or with a view to execution of the work or performance of the contract. You shall be entitled to be paid only for the work actually performed under the contract upto the date of Termination of the Contract as certified by _____ (Engineer).

6. This is without prejudice to any other right or remedy which shall have accrued or accrue hereafter to the Employer.


Yours faithfully,

Engineer-in-Charge

for and on behalf of

: RITES Ltd.

N.O.O.

Copy to:

i) Tender Accepting Authority for information. ii) Site Engineer

Copy to The Employer for information


PROFORMA FOR LETTER BY ENGINEER-IN-CHARGE TO THE CONTRACTOR ON

FORECLOSURE OF CONTRACT UNDER CLAUSE 13 OF CONTRACT

BY REGD. POST. / ACK. DUE.

Office of (Engineer in Charge)

Letter No._____ dated_____

To


Dear Sir,

Sub: CONTRACT AGREEMENT No. _____ DATED ______ NAME OF WORK___________

It has been decided by the Employer to abandon / reduce the scope of works and accordingly the items of works listed at Annexure 1 are not required to be carried out by you. In terms of Clause 13 of Contract, this foreclosure of Contract is within the Competence of the Employer by giving you notice in writing.

1. In terms of Clause 13 of Contract, the undersigned _____ (Designation) of RITES Ltd. acting for and on behalf of as Agent / Power of Attorney Holder of ____ (the Employer) hereby foreclose the Contract under reference with the direction that the items of works listed at Annexure 1 are not to be carried out by you.

2. You are accordingly requested to report to the office of ______ (Site Engineer) in person or through an accredited representative at ____ on _____ when an inventory of complete / incomplete items of works and the materials at the site will be made and recorded jointly. In the event of your failure to keep this appointment, the inventory will nevertheless be prepared not withstanding your absence and the same shall be fully binding on you.

3. The undersigned will determine the amount payable to you for the works executed at contract rates and a reasonable amount as determined for the items listed in Items (i) to (v) of Clause 13 of Contract subject to the limit mentioned therein. You will be advised the details of the documents and other information to be made available by you, to facilitate completion of the above exercise.

4. Your attention is invited specially to the provisions in Clause 13 of the Contract to the effect that you shall have no claim to any payment of compensation or otherwise whatsoever, an account of any profit or advantage which you might have derived from the execution of the works listed at Annexure 1.

5. This Notice is without prejudice to any other right or remedy which shall have accrued or may accrue to the Employer under the terms of this Contract.

6. Kindly acknowledge receipt of this letter.

Encl: Annexure 1

Yours faithfully,

Engineer-in-Charge

N.O.O. for and on behalf of

Copy to : RITES Ltd.

i) Tender Accepting Authority for information. ii) Site Engineer

Copy to the Employer for information.

ANNEXURE 12.6A

(Refer Para 12.9)

PROFORMA FOR LETTER TO BE ISSUED BY THE SITE ENGINEER ON BEHALF OF THE ENGINEER-IN-CHARGE TO THE CONTRACTOR IF DUE TO DEFAULT OF THE CONTRACTOR, PART WORK / PART INCOMPLETE WORK IS PROPOSED TO BE TAKEN OUT OF HIS HANDS, UNDER CLAUSE 14 OF CONTRACT

BY REGISTERED POST / ACK. DUE

(SHOW CAUSE NOTICE UNDER CLAUSE 14 of CONTRACT)

Office of _____________ (Site Engineer) Letter No. ___________ Dated To (Contractor) Address Dear Sir, Sub: CONTRACT AGREEMENT No.________ DATED ____ NAME OF WORK __________ Your attention is invited to the instructions issued on _________ in the Site Order Book wherein you had been advised to have the part work / part incomplete work items listed at Annexure completed by _________ (Date). 2) It is noticed that inspite of the fact that considerable time has elapsed since the issue of such instructions, you have not taken any corrective action. 3) It is accordingly felt that you are not in a position to discharge your obligations under the Contract. I therefore hereby on behalf of _________ (Engineer-in-charge) give you a notice that if you do not take necessary corrective action within 7 days of the date of issue of this letter, the undersigned will be obliged to recommend to the Competent Authority for taking away part work / part incomplete work items as listed at Annexure, from your hands and get them carried out by any other Agency, thus leaving you to carry out only rest of the work excluding those listed at Annexure. In the event of such an action by the Competent Authority, in terms of Clause 14 of Contract, you will be liable for loss / damage likely to be suffered by the Employer and hence will be required to pay to the Employer by way of compensation a sum equivalent to 20% of the value of part work / part incomplete work items as per details listed at Annexure with the cost determined on the basis of your Contract rates. The amount to be paid by you will however be subject to a maximum of 10% of the Tendered Value. This is without prejudice to any other right or remedies available to the Employer under the terms of the contract or under law.

4) Please acknowledge receipt of the letter.

Yours faithfully,

Encl: Annexure For Engineer in Charge.

Copy to (Engineer in chare) For information.

ANNEXURE – 12.6 B

(Refer Para 12.9) PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-CHARGE TO THE CONTRACTOR IN CASE ACTION IS FINALLY PROPOSED TO BE TAKEN AGAINST THE CONTRACTOR UNDER CLAUE 14 OF CONTRACT

BY REGD POST / ACK. DUE Office of ------------- (Engineer-in-Charge) Letter No. ………………. Dated: To: (Contractor) Address Dear Sir, Sub: CONTRACT AGREEMENT NO. ---------------------- DATED ----------------------- NAME OF WORK ---------------------- Ref: SHOW CAUSE NOTICE UNDER CLAUSE 14 OF CONTRACT ISSUED VIDE

LETTER NO. --------------------- DATED -------------- BY ------------------- (SITE ENGINEER)

In spite of the Show Cases Notice issued to you through letter under reference in connection with the work to be executed under the above mentioned contract, you have failed to carry out your obligations under the contract as listed in the Show Cases Notice. 2) Therefore, the undersigned ------------- (Designation) of RITES LTD., acting for

and on behalf of a Agent/Power of Attorney Holder of ----------- (the Employer), in exercise of the powers vested in me in terms of Clause 14 of contract, and without prejudice to any other right or remedy which shall have accrued or shall accrue to the Employer under the terms of the above said contract or under Law, hereby withdraw from your hands the part work/part incomplete work items listed at Annexure with effect from --------- on account of your default.

3) You are advised that in terms of the provisions under Clause 14 of the contract,

you are liable to pay to the Employer within 30 days from the date of issue of this letter, an amount equivalent to 20% of the value of part work/part incomplete work as detailed at Annexure enclosed. The amount to be paid by you has been determined based on your contract rates including Price Variation as applicable on the date of issue of this letter. The amount to be paid by you will however be subject to the limit of maximum of 10% of Tendered Value. If the payment is not

effected within the stipulated period of 30 days, action will be taken to recover the amount as per procedure laid down in Clause 14 of contract.

4) Please note that the part work/part incomplete work being taken out of your

hands, will be got executed by another Agency at the discretion the Employer and you will not be allowed to participate in the Terdering process for the same.

5) You are directed to continue with execution of the rest of work excluding that

taken out of your hands and complete them within the Scheduled date of completion/extended date of completion for which all conditions of contract under reference will be applicable.

6) Please also note that you will have no claim to compensation for any loss

sustained by you by reason of having purchased or procured any materials or entered into any engagement or made any advance on any account with a view to execution of work or the performance of the contract so far as they relate to the part work/part incomplete work items now taken out of your hands.

7) This is without prejudice to any other right or remedy which has accrued or shall

accrue hereafter to the Employer under the Contract or under Law. 8) Please acknowledge receipt of this letter.

Yours faitufully,

Encl: Annexure Engineer-in-Charge For and on behalf of

RITES LTD. Not in Original Copy to: (i) Tender Accepting Authority - for information (ii) Site Engineer Copy to: The Employer - for information


PROFORMA FOR LETTER FROM THE SITE ENGINEER ON BEHALF OF

ENGINEER-IN-CHARGE TO THE CONTRACTOR FOR RECTIFICATION OF DEFECTS DURING THE MAINTENANCE PERIOD UNDER

CLAUSE 17 OF CONTRACT

BY REGD. POST / ACK. DUE

Office of ____ (Site Engineer)

Letter No. ____ dated____

To

The Contractor Address

Dear Sir,

Sub: Contract Agreement No. ____ dated ____Name of work _____________________

In the works completed by you under the above mentioned Contract since the date of taking over of the works from you, the following defects have been observed to have developed.

a)

b)

In terms of the provisions under Clause 17 of Contract, you are liable to rectify the defects observed during the currency of the Maintenance period which in this Contract extends upto ____ (date). You are accordingly hereby called upon to rectify the said defects by ___ (date) failing which the same shall be got rectified through any other agency at your risk and cost without any further notice to you and you shall solely be liable there for.

Please acknowledge receipt.

Yours faithfully,

(for Engineer-in-Charge)

Copy to (Engineer-in-Charge)


PROFORMA FOR PROVISIONAL CERTIFICATE OF PHYSICAL COMPLETION TO

BE ISSUED BY THE ENGINEER-IN-CHARGE

Office of _______ (Engineer in charge)

Letter No. _______ dated _______

To

(Contractor) (Address)

Dear Sir,

Sub: CONTRACT AGREEMENT No. ______ DATED ____ NAME OF WORK ___________

In pursuance of provisions under Clause 8 of Contract, I hereby certify that the work under Contract Agreement No. ______ dated _____ for the work of ______ has been satisfactorily completed by Shri ________ (Contractor) on ____ (date) subject to the following.

i) Rectification of the defects listed in the statement at Annexure 1. ii) Clearance of site as stipulated in Clause 8 of Contract. iii) Completion of items of works listed at Annexure 2 which are dependent

on execution by other Agencies.

2. Please ensure that the defects listed in Annexure 1 are rectified to my satisfaction not later than ____ (dates) at your cost and under your own arrangement. It may also be ensured that by that date, the site is made clear of all items other than permanent work.

3. Please note that items listed at Annexure 3 are proposed to be accepted at lower rates due to their not being strictly as per the specifications laid down in the contract.

4. Final Completion Certificate shall be issued on completion of the items listed above.

Yours faithfully,

(Engineer-in-Charge)

Encl: Annexures 1, 2 & 3

Not in Original

Copy to ____ (Tender Accepting Authority) with a statement indicating the position of Extension of Contract Period / Deviation orders / Special rates yet to be finalized and Claims from the Contractors on which decisions are yet to be conveyed. The officials of RITES LTD. with whom the papers are pending are indicated against each item in the statement enclosed.



PROFORMA FOR FINAL COMPLETION CERTIFICATE TO BE ISSUED BY

THE ENGINEER-IN-CHARGE

Office of _______ (Engineer-in-Charge)

Letter No._____ dated_____

To


Dear Sir,

Sub: CONTRACT AGREEMENT No. _____ DATED ______ NAME OF WORK___________

Ref: Provisional Certificate of Physical Completion issued under No. _______ dated _______

In continuation of the Provisional Certificate of Physical Completion issued under _______ dated ______ in pursuance of the provisions under Clause 8 of Contract, I hereby certify that the work under Contract Agreement No. ___ dated _____ for the work of _____ has been taken over by RITES Ltd. for and on behalf of and as Agent / Power of Attorney Holder of ________ (the Employer).

Items listed at Annexure will be paid for at reduced rates as indicated against each item at the Annexure. They are strictly not as per specification but since they are otherwise structurally sound, they have been accepted at reduced rates as a special case. (PARA TO BE DELETED IF NOT APPLICABLE)

Yours faithfully,


Encl: Annexure

Not in Original

Copy to ____ (Tender Accepting Authority) with a statement indicating the position of Extension of Contract Period / Deviation orders / Special rates yet to be finalized and Claims from the Contractors on which decisions are yet to be conveyed. The officials of RITES LTD. with whom the papers are pending are indicated against each item in the statement enclosed.


ANNEXURE 12.10 (Refer Para 12.12A)

PROFORMA FOR LETTER TO THE

STATE GOVT. MINING DEPARTMENT

Office of ___________ (Engineer-in-charge) Letter No. _________________ dated _____________ To, _________________ , Mining Department, Govt. of ________________ Dear Sir, Sub: ROYALITY CHARGES CLEARANCE CONTRACT AGREEMENT NO.______________________ BETWEEN RITES LTD. AND _____________________ CONTRACTOR The Contract Agreement under reference has been executed by RITES on behalf of _________________________(Employer) with __________________(Contractor) for the work of _______________________. In the execution of the Contract, the Contractor has used minor minerals_______________. A copy of letter no. __________________ dated ___________issued by the Contractor to your Department requesting for issue of Royalty Clearance Certificate in his favour is enclosed. You are requested to kindly advise if any amount is due from the said Contractor towards royalty charges to enable us to decide on release of final bill to the Contractor. If no reply is received from your end within four month from the date of issue of this letter, it will be presumed that there is nothing due from the Contractor towards Royalty charges and the final bill to the Contractor will be released.

Yours faithfully,


Encl: Contractor’s letter dated __________ Copy for information to: (Contractor)


FORM OF APPLICATION BY THE CONTRACTOR FOR SEEKING

EXTENSION OF TIME

PART -I

1. Name of Contractor

2. Name of work as given in the Agreement

3. Agreement No.

4. Estimated amount put to tender

5. Date of commencement of work as per agreement

6. Period allowed for completion of work as per agreement

7. Date of completion as stipulated in agreement

8. Period for which extension of time has been given previously:

a) 1st extension vide No.Dated From________To_______(_____Days) b) 2nd extension vide No.Dated From________To_______(_____Days) c) 3rd extension vide No.Dated From________To_______(_____Days) d) 4th extension vide No.Dated From________To_______(_____Days)

Total extension previously given.

9. Reasons for which extensions have been previously given (Copies of the previous sanctions should be attached)

10. Period for which extensions is applied for now From______To______(_____Days)

11. Hindrances on account of which extensions is applied for with dates on which hindrances occurred and the period for which these are likely to last. (Details are to be filled in for each of the Hindrance)

a) Serial No. b) Nature of hindrance c) Date of occurrence d) Period for which it is likely to last e) Period for which extension required for this particular hindrance f) Overlapping period if any, with reference to item________ g) Net extension applied for h) Remarks, if any.

Total period on account of hindrances mentioned above _____ Months ____ Days

12. Extension of time required for extra work

a) Details of extra work and the amount involved:-

b) Proportionate period of extension of time based on estimated amount put to tender on account of extra work.

13. Total extension of time required for 11 & 12

Submitted to the Site Engineer

Signature of Contractor Dated

APPLICATION FOR EXTENSION OF TIME

PART II

(To be filled in by the Site Engineer)

1. Date or receipt of application from _______

Contractor for the work of ________

2. Acknowledgement issued vide No._______ dated

3. Remarks of Site Engineer on the reasons given by the contractor as to whether they are correct and what extension, if any, is recommended by him. If he recommends the extension with liquidated damages reasons for the same should be given.

Signature of Site Engineer Dated

(To be filled in by the Engineer in Charge who has signed the Contract on behalf of RITES)

1. Date of receipt in the Office

2. Engineer in Charge’s remarks regarding hindrances mentioned by the Contractor.

i) Serial No. ii) Nature of hindrance iii) Date of occurrence iv) Period for which hindrance is likely to last v) Extension of time applied for by the contractor vi) Overlapping period, if any, giving reference to items which overlap vii) Net period for which extension is recommended viii) Remarks as to why the hindrance occurred and justification for extension

recommended.

3 Engineer-in-Charge’s Remarks on Request for Extension of time for extra works.

4 Engineer-in-Charge’s recommendations on whether extension can be given with or without penalty. The present progress of the work should be stated and whether the work is likely to be completed by the date upto which extension has been applied for. If extension of time is recommended with penalty what compensation is recommended to be levied under Clause 2 of the agreement.

Signature of Engineer-in-Charge Date

Remarks of Associated Finance

Decision by the Competent Authority Signature (Sl. No. 8 of SOP) Date Designation

Copy to the Employer for information


PROFORMA FOR GRANT OF EXTENSION OF TIME

(ADVANCE INTIMATION PENDING DECISION ON LEVY OF LIQUIDATED DAMAGES)

To Name_______ Address of the Contractor ______ Agreement No. & date

Subject:

Dear Sir(s),

Reference your letter No._______ dated _____ in connection with the grant of extension of time for completion of the work ________

The date of completion for the above mentioned work is ________ as stipulated in the agreement dated the ____. Last extension of time granted was upto _______ vide this office Letter No._________________________ dated ________.

Extension of time for completion of the above mentioned work is now granted upto ____ without prejudice to the right of RITES to recover liquidated damages in accordance with the provision of Clause 2 of the said agreement dated the ____. Decision by the Competent Authority on levy of liquidated damages will be communicated to you in due course.

Provided that notwithstanding the extension hereby granted, time is and shall still continue to be the essence of the said agreement.

Yours faithfully,

Engineer-in-Charge

For and on behalf of RITES LTD. N.O.O



PROFORMA FOR GRANT OF EXTENSION OF TIME

WITHOUT LEVY OF LIQUIDATED DAMAGES

To Name:- Address of the Contractor:- Agreement No. & Date:-

Subject:

Dear Sir(s),

Reference your letter No. dated in connection with the grant of extension of time for completion of the work upto _______ and this office Letter No._________________ dated ______ granting extension upto ______ reserving the right to levy Liquidated Damages in accordance with the provisions of Clause 2 of the Agreement.

The date of completion for the above mentioned works is _______ as stipulated in the Agreement dated _______ Last Extension of time granted is upto ____ vide this office letter No._______________ dated_____.

Taking into overall consideration the points brought out by you and also the delays on your part in execution of the work, Extension of time for completion of the above mentioned work is granted upto ____ without levy of Liquidated damages by the Authority Competent to grant such extension in terms of Clause 2 of the Agreement.

Notwithstanding the extension hereby granted, time is and shall continue to be the essence of the said agreement.

Yours faithfully,

Engineer-in-Charge

For and on behalf of RITES LTD.



PROFORMA FOR SHOW CAUSE NOTICE TO THE CONTRACTOR REGARDING COMPENSATION UNDER CLAUSE 2 IN CASE TERMINATION OF CONTRACT IS

NOT CONTEMPLATED

To

Name & Address of the Contractor

___________________

___________________

Sub: Show Cause Notice for delayed completion / likely to be delayed completion of work ____ under Agreement No.______________

Dear Sir (s),

The date of completion for the above mentioned work was / is ______ as stipulated in the agreement number ________ for the work ______________

Extension of time for completion of the above mentioned work was granted by the Engineer-in-charge vide his letter No. ___________ upto ______________ under clause 5 of the said agreement without prejudice to the right of RITES to recover compensation in accordance with the provisions of Clause 2 of the said agreement.

The work entrusted to you under the agreement referred above could not / is unlikely to be completed within stipulated / extended date of completion due to your wrongful delay or suspension of work or slow progress of work or because of reasons within your control. The work has finally been completed on _________ / cannot be completed within stipulated / extended date of completion. Therefore, under the provisions of clause 2 of the above said agreement you have rendered yourself liable to pay compensation.

Therefore, in exercise of the power conferred on me by the aforesaid agreement on behalf of the Competent Authority, I hereby give you notice to show cause within _____ days to the satisfaction of the Competent Authority as to why compensation should not be imposed upon you under the provisions of clause 2 of the said agreement for delayed / likely to be delayed completion of the work. Please note that in case no cause is shown by you within the stipulated period or the cause shown is not to the satisfaction of the Competent Authority, such actions will be taken against you as are contemplated under Clause 2 thereunder of the said agreement without further notice.

Yours faithfully,

(Engineer in charge)

For and on behalf of RITES Ltd.

Note: Strike out whichever is not applicable. Notice may be modified suitably if it is intended to impose compensation for any item or group of items of work for which a separate period of completion is originally given.

ANNEXURE 13.5

(Refer Para 13.9)

PROFORMA FOR INTIMATING THE CONTRACTOR REGARDING LEVY OF COMPENSATION UNDER CLAUSE 2

(APPLICABLE TO BOTH CASES OF CONTRACT

BEING ALLOWED TO BE CONTINUED OR TERMINATED)

To

Name _________

Address of the Contractor _________

______________________________

Subject: Intimation regarding levy of compensation under clause 2.

Dear Sir (s)

The date of completion for the above mentioned work was ________ as stipulated in the agreement number ________ for the work of _____________

Extension of time of completion of the above mentioned work was granted by the Engineer-in – Charge vide his letter No. upto _________ under clause 5 of the said agreement without prejudice to the right of Employer / RITES to recover compensation in accordance with the provisions of Clause 2 of the said agreement.

The work has finally been completed / determined (strike out whichever not applicable) on ____. You were issued show cause vide this office letter No. __________ to explain why compensation not be imposed upon you under the provisions of clause 2 of said agreement for delayed completion of the work.

Your reply vide letter No._________ received in response to show cause has been considered carefully, (Reasons for not agreeing with hindrances as claimed by the contractor and total delay on part of contractor to be indicated in brief). After taking into consideration all the facts & circumstances, the Competent Authority has come to the conclusion that you are solely responsible for delay of ___ months ____ days.

In exercise of the powers conferred on him under Clause 2 of the agreement the Competent Authority has decided and determined that you are liable to pay Rs.____ as and by way of compensation as stipulated in Clause 2 of the agreement. The said amount of compensation is hereby levied on you for the period of ______ and at the rate of ______ as determined by the Competent Authority on the tendered amount of the work shown in the agreement and you are hereby called upon to pay the same to RITES Ltd. within _____ (here mention the period) failing which the said amount shall be

recovered from your Security Deposit and / or Performance Guarantee lying with RITES Ltd. adjusted or set – off against any sum payable to you under this or any other contract with RITES Ltd.

Yours faithfully,


For and on behalf of RITES Ltd.

N.O.O


ANNEXURE 13.6

(Refer Para 13.9)

PROFORMA FOR SHOW CAUSE NOTICE TO THE CONTRACTOR REGARDING COMPENSATION UNDER CLAUSE 2 (IN CASE CONTRACT IS DETERMINED

UNDER CLAUSE 3)

To

Name & Address of the Contractor

___________________

___________________

Sub: Show Cause against agreement No. ___________ for the work ___________.

Dear Sir (s),

The date of completion for the above mentioned work was ____ as stipulated in the agreement number _______ for the work of ______________.

Extension of time for completion of the above mentioned work was granted by the Engineer –in- charge vide his letter no. upto _____ under clause 5 of the said agreement without prejudice to the right of RITES to recover compensation in accordance with the provisions of Clause 2 of the said agreement. (Delete this Para if work was determined before stipulated date of completion)

The work entrusted to you under the agreement referred above could not be completed within stipulated / extended (strike out whichever not applicable) date of completion and the work has been finally determined under clause 3 vide letter dated _____. Under the provisions of clause 2 of the above said agreement you have rendered yourself liable to pay compensation.

Therefore, in exercise of the powers conferred on me by the aforesaid agreement, on behalf of the Competent Authority. I hereby give you notice to show cause within ------- days to the satisfaction of the Competent Authority as to why compensation should not be imposed upon you under the provisions of clause 2 of said agreement for your failure to complete the work by the stipulated date of completion / extended date of completion (Strike out as the case may be). Please note that in case no cause is shown by you within the stipulated period or the cause shown is not to the satisfaction of the Competent Authority, such actions will be taken against you as are contemplated under Clause 2 of the said agreement without further notice.

Yours faithfully,


For and on behalf of RTIES Ltd.


SPECIMEN OF LETTER BY ENGINEER-IN-CHARGE TO CONTRACTOR FOR

PROVISIONAL REDUCTION IN RATE FOR SUB-STANDARD WORK

To M/s.————— ———————- Dear Sir(s)

Sub: Construction of __________________ Agreement No.________________

1. RITES considers that the items of work (specified in the statement appended herewith) relating to the work undertaken by you in terms of the above agreement have not been executed in accordance with the prescribed specifications and / or in a workmanlike manner and therefore, cannot be accepted in terms of the above said agreement for payment at the rates specified in the agreement.

2. RITES, however, are willing to consider acceptance of the same should you agree to receive payment at rates suitably reduced taking into consideration the sub-standard nature of the said items of work. Competent Authority of RITES will determine as to what suitable reductions in the rates should be made from the agreed rates for the said items. His decision shall be final and binding on you. Pending such decision of the Competent Authority, however, the payment for the said items of work will be made at the provisional rates indicated against each item in the Statement enclosed.

3. If you agree to the aforesaid conditions for acceptance of payment for the said items of work you may please return the enclosed form duly executed by you.

4. If no reply is received from you within three weeks of the date of receipt of the letter it shall be presumed that the offer is not acceptable to you. In the said event the offer shall stand withdrawn, without prejudice to the rights and remedies of RITES in terms of the contract.

Yours faithfully,

Engineer-in-Charge Encl: Statement (refer Para 2) For and on behalf of RITES



SPECIMEN OF LETTER OF ACCEPTANCE BY THE CONTRACTOR OF

PROVISIONAL REDUCTION OF RATE FOR SUB STANDARD WORK

To _____________ _____________

Sub: Construction of ____________

Ref.: Your letter No. ____________

Sir,

I / We have carefully read the terms and conditions offered in your letter dated ____ and they are acceptable to me / us.

Pending the decision of the Competent Authority of RITES of the final rates of payment against the items of work specified in the statement attached to your above letter, which rates will be final and binding. I / We agree to the same being paid at the provisional rates indicated against each of the said item of work for the above work as mentioned in your statement.

Yours faithfully,

Contractor (s)

Annexure 16.10 (Refer Para 16.3)

EXTRACTS FROM IS 456 : 2000

Table 2 grades of Concrete (Clause 6, 1, 9. 22, 15. 1.1 and 36.1)

Group Grade Designation Specific Characteristic Compressive Strength of 150 mm Cube at 28 days in N / Sqmm.

(1)

Ordinary Concrete

(2)

M 10

M 15 M 20

(3)

10

15

20

Standard Concrete

M25

M30

M35

M40

M45

M50

M55

25

30

35

40

45

50

55

High Strength Concrete

M 60

M 65

M 70

M 75

M 80

60

65

70

75

80 Notes:

1. In the designation of concrete mix M refers to the mix and the number to the specified compressive strength of 150 mm size cube at 28 days, expressed in N/sqmm.

2. For Concrete of compressive strength greater than M 55, design parameters given in the standard may not be applicable and the values may be obtained from specialist literatures and experimental results.

Table 8 Assumed Standard Deviation (Clause 9.2.4.2 and Table 11)

Grade of Concrete Assumed Standard Deviation N/sq.mm.

(1) (2)

M 10 3.5 M 15 M 20 4.0 M 25 M 30 5.0 M 35 M 40 M 45 M 50 NOTE: The above values correspond to the site control having proper storage of

cement; weigh batching of all materials; controlled addition of water, regular checking of all materials, aggregate gradings and moisture content; and periodical checking of workability and strength. Where there is deviation from the above, values given in the above table shall be increased by 1N/sqmm.

Table 9 Proportions for Nominal Mix Concrete (Clause 9.3 and 9.3.1)

Grade of Total Qunatity of Dry AggregatesProprotion of Fine Aggregate toQuantity of Concrete by Mass per 50 kg of Cement, Coarse Aggregate (by Mass) Water per to be Taken as the Sum of the 50 kg. of Individual Masses of Fine and Cement, Max Coarse Aggregates, kg. Max

(1) (2) (3) (4)

M 5 800 Generally 1: 2 but subject to an 60

M 7.5 625 upper limit of 1: 1 1/ 2 and a 45

M 10 480 lower limit of 1: 2 1 / 2 34

M 15 330 32

M 20 250 30 NOTE: The proportion of the fine to coarse aggregates should be adjusted from upper

limit to lower limit progressively as the grading of fine aggregates becomes finer and the maximum size of coarse aggregate becomes larger. Graded coarse aggregate shall be used.

Example: For an average grading of fine aggregate (that is, zone II of Table 4 IS 383), the

proprotions shall be 1: 1 1/2, 1:2 and 1:2 1 /2 for maximum size of aggregates 10 mm, 20 mm and 40 mm respectively.

ANNEXURE 16.10 (Contd.)

EXTRACTS FROM IS 456-2000 (contd)

15. SAMPLING AND STRENGTH OF DESIGNED CONCRETE MIX

15.1 General

Samples from fresh concrete shall be taken as per IS 1199 and cubes shall be made, cured and tested at 28 days in accordance with IS 516.

15.1.1 In order to get a relatively quicker idea of the quality of concrete, optional tests on beams for modulus of rupture at 72 + or - 2h or at 7 days, or compressive strength —tests at 7 days may be carried out in addition to 28 days compressive strength test. For this purpose the values should be arrived at based on actual testing. In all cases, the 28 days compressive strength specified in Table 2 shall alone be the criterion for acceptance or rejection of the concrete.

15.2 Frequency of Sampling

15.2.1 Sampling Procedure

A random sampling procedure shall be adopted to ensure that each concrete batch shall have a reasonable chance of being tested that is, the sampling should be spread over the entire period of concreting and cover all mixing units.

15.2.2 Frequency

The minimum frequency of sampling of concrete of each grade shall be in accordance with the following:

Quantity of Concrete in the Work (cum) Number of samples

1-5 1

6-15 2

16-30 3

31-50 4

51 and above 4 plus one additional sample for each additional 50 cum. or part thereof.

NOTE- At least one sample shall be taken from each shift. Where concrete is produced at continuous production unit, such as ready mixed concrete plant, frequency of sampling may be agreed upon mutually by suppliers and purchasers.

15.3 Test Specimen

Three test specimens shall be made for each sample for testing at 28 days. Additional samples may be required for various purposes such as to determine the strength of concrete at 7 days or at the time of striking the form work, or to determine the duration of curing, or to check the testing error. Additional samples may also be required for testing samples cured by accelerated methods as described in IS 9103. The specimen shall be tested as described in IS 516.

15.4 Test Results of Sample

The test results of the sample shall be the average of the strength of three specimens. The individual variation should not be more than + or – 15 per cent of the average. If more, the test results of the sample are invalid.

16 ACCEPTANCE CRITERIA

16.1 Compressive Strength

The concrete shall be deemed to comply with the strength requirements when both the following conditions are met:

a) The mean strength determined from any group of four consecutive test results complies with the appropriate limits in col 2 of Table 11.

b) Any individual test result complies with the appropriate limits in col 3 of Table 11.

16.2 Flexural Strength

When both the following conditions are met, the concrete complies with the specified flexural strength.

a) The mean strength determined from any group of four consecutive test results exceeds the specified characteristic strength by at least 0.3 N / sqmm.

b) The strength determined from any test result is not less than the specified characteristic strength less 0.3 N/sqmm.

16.3 Quantity of Concrete represented by Strength Test Results

The quantity of concrete represented by a group of four consecutive test results shall include the batches from which the first and last samples were taken together with all intervening batches.

For the individual test results requirements given in col 2 of Table 11 or in item (b) of 16.2 only the particular batch from which the sample was taken shall be at risk.

Where the mean rate of sampling is not specified, the maximum quantity of concrete that four consecutive test results represent shall be limited to 60 cum.

16.4 If the concrete is deemed not to comply pursuant to 16.3, the structural adequacy of the parts affected shall be investigated (see 17) and any consequential action as needed shall be taken.

16.5 Concrete of each grade shall be assessed separately.

16.6 Concrete is liable to be rejected if it is porous or honey- combed, its placing has been interrupted without providing a proper construction joint, the reinforcement has been displaced beyond the tolerances specified, or construction tolerances have not been met. However, the hardened concrete may be accepted after carrying out suitable remedial measures to the satisfaction of the Engineer in Charge.

Table 11 Characteristic Compressive Strength Compliance Requirement (Clauses 16.1 and 16.3)

Specified Grade Mean of the group of 4 Individual Test Results in Non-Overlapping N/ sqmm. consecutive Test Results in N/ sqmm.

(1) (2) (3)

M 15 > f� + 0.825 x established > fa -3 N/sqmm standard deviation (rounded off to nearest 0.5 N / sqmm) or f� + 3 N / sqmm. Whichever is greater

M20 or above > f� + 0.825 x established > fa - 4 N/sqmm standard deviation (rounded off to nearest 0.5 N / sqmm)

or f� + 4 N / sqmm. Whichever is greater

NOTE - 1. In the absence of established value of standard deviation, the values given in Table 8 may be assumed, and attempt should be made to obtain results of 30 samples as early as possible to establish the value of standard deviation.

2. fa stands for 15 in case of M15, 20 in case of M 20 etc.

17. INSPECTION AND TESTING OF STRUCTURES

17.1 Inspection

To ensure that the construction complies with the design, an inspection procedure should be set up covering materials, records, workmanship and construction.

17.1.1 Tests should be made on reinforcement and the constituent materials of concrete in accordance with the relevant standards. Where applicable, use should be made of suitable quality assurance schemes.

17.1.2 Care should be taken to see that:

a) Design and detail are capable of being executed to a suitable standard, with due allowance for dimensional tolerances;

b) There are clear instructions on inspection standards;

c) There are clear instructions on permissible deviations;

d) Elements critical to workmanship, structural performance, durability and appearance are identified and

e) There is a system to verify that the quality is satisfactory in individual parts of the structure, especially the critical ones.

17.2 Immediately after stripping the form work, all concrete shall be carefully inspected and any defective work or small defects either removed or made good before concrete has thoroughly hardened.

17.3 Testing

In case of doubt regarding the grade of concrete used, either due to poor workmanship or based on results of cube strength tests, compressive strength tests of concrete on the basis of 17.4 and/or load test (see 17.6) may be carried out.

17.4 Core Test

17.4.1 The points from which cores are to be taken and the number of cores required shall be at the discretion of the engineer in charge and shall be representative of the whole of concrete concerned. In no case, however, shall fewer than three cores be tested.

17.4.2 Cores shall be prepared and tested as described in IS 516.

17.4.3 Concrete in the member represented by a core test shall be considered acceptable if the average equivalent cube strength of the cores is equal to atleast 85 per cent of the cube strength of the grade of concrete specified for the corresponding age and no individual core has a strength less than 75 per cent.

17.5 In case the core test results do not satisfy the requirements of 17.4.3 or where such tests have not been done, load test (17.6) may be resorted to.

17.6 Load Tests for Flexural Member

17.6.1 Load test should be carried out as soon as possible after expiry of 28 days from the time of placing of concrete.

17.6.2 The structure should be subjected to a load equal to full dead load of the structure plus 1.25 times the imposed load for a period of 24 h and then the imposed load shall be removed.

NOTE - Dead load includes self weight of the structural members plus weight of finishes and walls or partitions, if any, as considered in the design.

17.6.3 The deflection due to imposed load only shall be recorded. If within 24 h of removal of the imposed load, the structure does not recover at least 75 per cent of the deflection under superimposed load, the test may be repeated after a lapse of 72 h. If the recovery is less than 80 per cent, the structure shall be deemed to be unacceptable.

17.6.3.1 If the maximum deflection in mm, shown during 24 h under load is less

than 40 l2/D where l is the effective span in m; and D, the overall depth of the section in mm, it is not necessary for the recovery to be measured and the recovery provisions of 17.6.3 shall not apply.

17.7 Members Other Than Flexural Members

Members other than flexural members should be preferably investigated by analysis.

17.8 Non-destructive Tests

Non-destructive tests are used to obtain estimation of the properties of concrete in the structure. The methods adopted include ultrasonic pulse velocity (see IS 13311 (Part I)) and rebound hammer (IS 13311 (Part 2)), probe penetration, pullout and maturity. Non-destructive tests provide alternatives to core tests for estimating the strength of concrete in a structure or can supplement the date obtained from a limited number of cores. These methods are based on measuring a concrete property that the bears some relationship to strength. The accuracy of these methods, in part, is determined by the degree of correlation between strength and the physical quality measured by the non-destructive tests.

Any of these methods may be adopted, in which case the acceptance criteria shall be agreed upon prior to testing.


EXTRACTS FROM CHAPTER 5 OF CPWD SPECIFICATION ON RCC WORK

5.4.10 Standard of Acceptance – for Nominal Mix

5.4.10.1 Mandatory Lab. Test: For concrete sampled and tested as prescribed in Appendix A of Chapter 5, the following requirement shall apply.

5.4.10.2 Out of six sample cubes, three cubes shall be tested at 7 days and remaining three cubes at 28 days.

5.4.10.3 7 days’ Tests

Sampling: The average of the strength of three specimen shall be accepted as the compressive strength of the concrete provided the variation in strength of individual specimen is not more than + 15% average. Difference between the maximum and minimum strength should not exceed 30% of average strength of three specimen. If the difference between maximum and minimum strength exceeds 30% of the average strength, then 28 days test shall have to be carried out.

Strength: If the actual average strength of sample accepted in para ‘sampling’ above is equal to or higher than specified strength upto + 15% then strength of the concrete shall be considered in order.

In case the actual average strength of sample accepted in the above para is lower than the specified or higher by more than 15% then 28 days’ test shall have to be carried out to determine the compressive strength of concrete cubes.

5.4.10.4 28 days’ Test

(a) The average of the strength of three specimen be accepted as the compressive strength of the concrete provided the strength of any individual cube shall neither be less than 70% nor higher than 130% only for computation of strength .

(b) If the actual average strength of accepted sample exceeds specified strength by more than 30% the Engineer-in-Charge, if he so desires, may further investigate the matter. However, if the strength of any individual cube exceeds more than 30% of specified strength, it will be restricted to 130% only for computation of strength.

(c) If the actual average strength of accepted sample is equal to or higher than specified strength upto 30% then strength of the concrete shall be considered in order and the concrete shall be accepted at full rates.

(d) If the actual average strength of accepted sample is less than specified strength but not less than 70% of the specified strength, the concrete may be accepted at reduced rate at the discretion of Engineer-in-Charge (see para 5.4.13.2).

(e) If the actual average strength of accepted sample is less than 70% of specified strength, the Engineer-in-Charge shall reject the defective portion of work represented by sample and nothing shall be paid for the rejected work. Remedial measures necessary to retain the structure shall be taken at the risk and cost of contractor. If, however the Engineer-in-Charge so desires, he may order additional tests (See Appendix B of Chapter 5) to be carried out to ascertain if the structure can be retained. All the charges in connection with these additional tests shall be borne by the contractor.

5.4.10.5 Acceptance Criteria of Field Test (Additional Test – Non Mandatory)

(A) Preparation of Standard Test Cubes for calibration of Rebound Hammer at site

(a) In the beginning the standard test cubes of the specified mix shall be prepared by field units before undertaking any concrete work in each project.

(b) At least 18 standard cubes necessary for formation of one specimen of specified mix, shall be cast by site staff well in advance. From these 18 cubes any 3 cubes may be selected at random to be tested for crushing strength of 7 days. The crushing strength obtained should satisfy the specified strength for the mix as per specification or agreement. If the strength is satisfactory then the remaining cube will form the standard samples for calibration of rebound hammer. In case of failure, the site staff should totally reject the samples and remove them also and then make another set of samples by fresh mixing or alternatively, out of the remaining 15 cubes, 3 cubes will be tested on 28 days. If the 28 days’ tests are found satisfactory then remaining 12 cubes will form the standard sample for calibration at 28 days’ strength otherwise all samples shall be rejected and whole procedure repeated to form a fresh specimen. All the results shall be recorded in a register.

(c) No concreting will be allowed unless the standard specimen cubes are obtained..

The criteria for acceptance and calibration of hammer will be 28 days’ strength. The 7 days’ strength is only to facilitate the work to start.

(d) No work (for the concrete cast between 8th and 28th day) shall be allowed to be paid unless 28 days’ cube strength is obtained. For the concrete cast between 8th and 28th day, the decision to make the payment may be taken by the Engineer-in-Charge on the basis of existing criteria. Concrete work will be rejected if 28 days’ strength falls short as per acceptance criteria. No further work will be allowed till the acceptable standard cubes are obtained.

(e) Frequency, if will be once in each quarter or as per the direction and discretion of Engineer-in-Charge. Whenever the acceptance criteria is changed or concrete mix or type of cement is changed or Engineer-in-Charge feels it necessary for recorded reasons with the approval of the authority according to technical sanction, fresh specimen shall be prepared.

(B) Calibration of Hammer

(a) Simultaneously, same three cubes to be tested on 28 days as referred in para A (b) above shall be used to correlate the compressive strength of their concrete with rebound number as per procedure described in para 5.2 of the IS: 13311 (Part 2) “Indian Standard for non-destructive testing of concrete Method of test by rebound hammer which is given below in para B (b). The average of values of the rebound number (minimum readings) obtained in respect of same three cubes passing on 28 days’ work test shall form the datum reference for remaining cubes for the strength of cubes.

(b) The concrete cubes specimens are held in a compression testing machine under a fixed load, measurements of rebound hammer taken and then compressive strength determined as per IS: 516. The fixed load required is of the order of 7 N/mm2 when the impact energy of the hammer is about 2.2 NM.

If the specimen are wet cured, they should be removed from wet storage & kept in the laboratory atmosphere for about 24 hours before testing.

Only the vertical faces of the cubes as cast should be tested for rebound number. At least nine readings should be taken on each of the three vertical faces accessible in the compression testing machine when using rebound hammers. The points of impact in the specimen must not be nearer than 20 mm from the edge & should not be less than 20 mm from each other. The same points must not be impacted more than once.

(c ) The rebound number of hammer will be determined on each of the remaining (18-3-3=12) cubes. Whenever the rebound number of hammer of any individual cube varies by more than +25% form the datum readings referred to in para B (a) above, that cube will be excluded and will not be considered for standard specimen cubes for calibration. It must be ensured that at least 8 cubes out of 12 that is 66.67% are within the permissible range of variation of rebound number i.e. + 25% or otherwise whole procedure shall have to be repeated and fresh specimen prepared.

These 8 cubes will form one standard sample in the beginning before commencement of work and shall be kept carefully for the visiting officers who will calibrate their hammers on these cubes.

(c) This calibration will be done by field staff with their hammer and then chart of calibration giving the details of the average readings, date & month of casting, mix of the concrete etc., shall be prepared and signed by Engineer-in-Charge and will be duly preserved for future reference as and when required.

(C) Preservation of Cubes at site

Standard sample cubes cast shall be carefully preserved at site under the safe custody of AE or his representative for making them available together with the charts, to the officers of QCTA/CTE or any other senior departmental officer, during their inspection of the work. They will calibrate their hammer on these cubes if required.

(D) Testing at Site

(D-1) Testing Equipments

(D-2) Testing will be done generally by non-destructive methods like rebound hammers etc. Each field Division/Sub Division/Unit will purchase rebound hammers and keep them in working order at work site. The testing will be done only by hammers which are duly calibrated.

(D-3) The relative strength of actual field work will be tested with reference to strength of these standard cubes and calibration charts of a hammer for determining the rebound number on the field work. The hammer will be used as per manufacturer’s guidelines at various locations chosen at random. The number of location/reading on each wall, beam or column etc., shall not be less than 12. All the readings should be within the + 25% range of values prescribed in calibration chart normally. However, reading indicating good strength will be when it is at per with calibrated value or between 100% & 125% and very good if more than 125% any value between 100% & 75% of calibrated value shall be considered satisfactory. Values from 75% to 50% shall be considered for payment at rates reduced on prorate basis. The concrete indicating rebound number less than 50% of calibrated value shall be rejected and not paid for.

(E) Acceptance of Field Tests and Strength

If the relative strength of actual field work is found satisfactory considering the calibration charts with reference to the standard cube test kept at site, the representative work will be considered satisfactory. If the work is considered below satisfactory, the same will be dealt as stated in para D-3 above.

(F) 7 days’ Strength in Rare Cases only

Normally cube crushing strength on 28 days’ test shall form the basis of acceptance. However in rare cases of time bound projects/urgent repairs 7 days’ cube test strength criteria may be adopted on similar lines using 7 days’ standard test cubes and calibration graphs/curves/charts for 7 days’ in lieu of 28 days’ and testing work done at 7 days’.

(G) Precautions

(G-1) The testing shall be done generally as per guidelines of manufacture of the apparatus and strictly in accordance with the procedure laid down in clause 6 of IS: 13311 (Part 2) . Indian Standard for Non-Destructive Testing of Concrete – Method of Test by Rebound Hammer.

(G-2) The rebound hammers are influenced by number of factor like type of cement aggregate, surface conditions, moisture content, age of concrete & extent of calibration of concrete

etc., hence care shall be taken to compare the cement, aggregate etc., and tested under the similar surface conditions having more or less same moisture content and aged. However effect of age can be ignored for concrete between 3 days & 3 months old


Contractor’s Notice for Appointment of Arbitrator

To

Appointing Authority (SOP Item 9.2) RITES.

Dear Sir,

In terms of clause 25 of the agreement, particulars of which are given below, I / We hereby give notice to you to appoint an arbitrator for settlement of disputes mentioned below: 1. Name of applicant 2. Whether applicant is Individual / Prop. Firm / Partnership Firm / Ltd. co. 3. Full address of the applicant 4. Name of the work and contract number in which arbitration sought 5. Name of the RITES Office which entered into contract 6. Contracted amount in the work 7. Date of contract 8. Date of start of work 9. Stipulated date of completion of work 10. Actual date of completion of work (if completed) 11. Total number of claims made 12. Total amount claimed 13. Date of intimation of final bill (if work is completed) 14. Date of payment of final bill (if work is completed) 15. Amount of final bill (if work is completed) 16. Date of request made to Engineer in charge for decision 17. Date of receipt of Engineer in charge’s decision 18. Date of appeal to Appellate Authority 19. Date of receipt of Appellate Authority’s decision

Specimen signature of the applicant (only the person / authority who signed the contract should sign)

I/ We certify that the information given above is true to the best of my / our knowledge. I / We enclose following documents.

1. Statement of claims with amount claimed against each claim. 2. 3. 4.

Yours faithfully, (Signature)

Copy in duplicate to 1. —— Engineer-in-Charge, RITES


LETTER OF APPOINTMENT OF ARBITRATOR

Dated the ______ 20___

Subject: In the matter of arbitration between ______ and RITES LIMITED, regarding the work ____ Agreement No. ___________ Date _______

Whereas _____ has / have written to me vide his / their letter no. ____ dated _____ that certain disputes have arisen between the above noted parties in respect of the above noted work. I ......................... ED/Dir, RITES by powers conferred on me under Clause 25 of the said Agreement hereby appoint Shri _____ as Sole Arbitrator to decide and make his award regarding the claims / disputes by the Contractor as well as counter claims of RITES, if any, arising out of the same contract subject to the admissibility of the claims and counter claims under clause 25 of the aforesaid agreement.

The arbitrator shall give his award in respect of each claim and also give reasons for the award in respect of each claim / dispute.

ED/ DIRECTOR

(As per SOP Item 9.2)

To

1. Shri Arbitrator

2. M/s.________ (Contractor), with reference to his / their letter No. _____ dated ____

(NOT IN ORIGINAL)

Copy to:

1. Shri ____________, (Engineer in Charge) with reference to letter no. _____ dated _____ Arrangements may please be made to defend the case effectively. Legal assistance of the Counsel may be obtained where necessary.

Engineer-in-charge should ensure that the bills of the contractors are finalized immediately, if not already done.

ED/DIRECTOR

Copy to: ______ (Employer) for information.


LETTER OF APPOINTMENT OF ALTERNATE ARBITRATOR

No.________________ Dated, the ________ 20___

Subject: In the matter of Arbitration between:

________________ Claimant

Vs

_________________ Respondent

Arbitration Case No. ______ of __________

Whereas Shri ______ was appointed sole arbitrator by letter No. ______ dated _____ in the above matter and whereas the aforesaid Arbitrator has been transferred / has vacated his office on _____ I ______ (ED/Director) RITES, in exercise of my powers under Clause 25 of the Contract appoint Shri ____ as the sole arbitrator to determine the claims / disputes as well as counter claims, if any, referred to the aforesaid arbitrator in accordance with and subject to their admisibility under said clause 25. Shri ___ may start the proceedings from the stage at which the aforesaid arbitrator left off.

2. The arbitrator shall give his award in respect of each claim and also give reasons for the award in respect of each claim / dispute.

ED/Director

(As per SOP Item 9.2)

Copy to:

1. Shri _______ (Arbitrator being relieved) with the request to transfer the records of the case to Shri ___ at the earliest.

2. Shri ______ (Relieving Arbitrator) with the request to take over the records of the case from Shri ____ at the earliest.

Copy to M/s. _____ (Contractor) for information

Copy to Shri _______ (Engineer-in-Charge) for information

Copy to ___________ (Employer) for information


LETTER TO CONTRACTOR ON ACCEPTANCE OF ARBITRATION AWARD

To

___________

___________ (CONTRACTOR)

Sub: Award dated ____ made by Shri ____ Arbitrator in regard to the disputes arising out of agreement No. _____ and referred to arbitration in arbitration case No._____

Dear Sirs,

With reference to the award mentioned above, I am to say that RITES has decided to accept the said award provided you accept the same as final and binding. Please intimate latest by---------that you agree to accept payment of the sum awarded in full and final settlement of all your claims forming the subject matter of the reference to arbitration in the above case. Your acceptance of the offer may be communicated on a Stamp Paper of Value ----------.

Yours faithfully,

Engineer-in-Charge

For & on behalf of RITES

N.O.O

Copy to ________ (Employer) for information.

ANNEXURE 19.5

(Refer Para 19.19)

NORMS FOR DISPOSAL OF OLD RECORDS

NOTE

1. Where the proposed “Period of preservation of Records” is indicated as 10 years or less and relates to any Project awarded to RITES, the records will have to be retained for a further period. If there is any Arbitration or Court Case pending, till the proceedings are completed in all respects.

2. Where the proposed “Period of preservation of Record” is indicated as “Permanent”, the hard copies of CDs or both, as the case may be, should be numbered serially for each category of records and for each Financial year and duly indexed with brief details of contents so that they can be retrieved easily when required in future.

3. Where “Permanent Records” by way of two hard copies to be retained are indicated, one copy is to be retained in SBU Office and one copy is to be sent to Central Library in RITES Head Quarters, Gurgaon.

4. In case of contracts between RITES and a Central/State Government Department wherever the period of preservation of record has been shown as less than 10 years the records should be maintained for a period of 10 years after Financial closure of the Project or till the proceedings on any Arbitration or Court case are completed in all respects, whichever is later.

Sl. No.

CATEGORY OF RECORD PERIOD OF PRESERVATION OF RECORD

REMARKS REFER

NOTE NO. HARD COPY SOFT COPY

(CD)

1 2 3a 3b 4

(A) COMMON FILES TO BE MAINTAINED BY SBU OFFICE

1. Policy Files on “Technical Matters”

Permanent - 2

2. Policy File on “Establishment Matters”

Permanent - 2

3. Policy File on “Accounts Matters”

Permanent - 2

4. Business Development File on Projects for which no offer made by RITES

Till beginning of next Financial Year

- -

(B) DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY TECHNICAL WING FOR EACH PROJECT FOR WHICH OFFER IS MADE

1. Business Development File

(a) If RITES offer not accepted

Till beginning of next Financial Year

-

-

(b) If RITES offer is accepted and has resulted in execution of Agreement with Client.

Three years after Financial closure of the Project

-

1

4

2. Input Estimate relating to Agreement between RITES and the Client/Correspondence & copy of the Estimate


- 1

4

3. Consultancy Agreement between RITES and the Client – LOI as well as copy of Agreement

Permanent Permanent 2

4. Sub-Consultancy Agreement between RITES and Sub Consultant


5. Correspondence file on Estimates


- 1

4

6. Detailed Estimate for Works Three years after Financial closure of the Project

- 1

4

7. Drawings – Correspondence File


- 1 4

8. Correspondence on Sub-consultancy Agreement between RITES and the Subconsultant.


- 1

4

9. Works Contract Agreement between RITES and the Contractor


- 1

2 4

10. Correspondence on Works Three years - 1

Contract Agreement between RITES and the Contractor / Site Office

after Financial closure of the Project

4

11. Consultancy Agreement – Correspondence with the Client on Technical matters


- 1

4

12. Correspondence with RITES Head Quarters on all matters relating to the Project


- 1

4

(C ) DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY ACCOUNTS WING FOR EACH PROJECT FOR WHICH CONSULTANCY AGREEMENT HAS BEEN SIGNED WITH THE CLIENT

1. Correspondence with the Client on Financial Matters


- 1

4

2. Correspondence with the Contractor on Financial Matters


- 1

4

3. Correspondence with the Subconsultant on Financial Matters


- 1

4

(D) DOCUMENTS TO BE MAINTAINED BY THE SITE OFFICE FOR THE WORKS FOR WHICH WORKS CONTRACT HAS BEEN EXECUTED

1. Correspondence with SBU Office on all matters.


- 1

4

2. Correspondence with the Contractor on all matters


- 1

4

3. Correspondence with the Client on all matters


- 1

4

(E) MISCELLANEOUS RECORDS / DOCUMENTS

1. Reports / Drawings relating to each Project

(i) Site Survey Reports-Field Survey / Soil Investigation Survey / Hydrographic Survey etc.,


-- 1

2

4

(ii) Feasibility Study Report Permanent (two copies)

Permanent 2, 3

(iii) Inception Report Permanent (two copies)

Permanent 2, 3

(iv) Final Report / DPR Permanent (two copies)

Permanent 2, 3

(v) As Built Completion Drawings


2. Site Records – Progress Reports / Labour and Machinery Reports / Level Books / Site Registers as per SITES Guidelines etc.,


- 1

4

3. Measurement Books and Detailed Design Calculation for Structures

Ten years after Financial closure of the Project

- 1

4. Statutory approvals from Local Bodies / Government Departments etc.


- 1

4

5. Land Possession / Taking over Certificate


- 1

4

6 Operation and Maintenance Manuals

Permanent Permanent

2

7. Arbitration / Court proceedings files

Till final settlement of the Arbitration/ Court Proceedings

- -

8. Bid Documents of unsuccessful tenderers


- 1

4

9. Photographs of site Permanent Permanent 2

construction activities

10.. Certificates from the Client Permanent Permanent 2


FORMAT FOR SITE ORDER BOOK

Name of work: Date of Commencement: Scheduled Date of Completion: Sl. No.

Instructions on action to be taken by the contractor on Non conformities

observed during work

Action taken on instruction for removal of non-conformities

Date RITES Ltd. Representative’s

Remarks with Signature & Designation

Contractor’s Representative’s

acknowledgement with Signature &

Name

Contractor’s Representative’s

Remarks with Signature,

Name & Date

RITES Ltd. Representative’s acceptance with

Signature, Designation &

Date


FORMAT FOR INSPECTION RECORD

Date of Inspection

Name and designation of

Inspecting Officer

Reference of Inspection

note

Date on which remarks taken

over to Site Order Book/ conveyed to contractor in

writing

Remarks

ANNEXURE 20.2 Contd

“CHECK FEATURES” FOR GUIDANCE OF INSPECTING OFFICIALS

Type of work Check Features

1. Concrete Plain and reinforced a) Strength of concrete cube test

b) Quality of exposed surface (Honey

combing etc.)

c) Lines, Levels and verticality

2. Reinforcement a) Bending, Binding and cage size w.r.t.

drawings

b) Cover to reinforcement

c) Staggering of laps, adequacy of length

of laps and anchorage

3. Centering and Shuttering a) Gap and cracks, evenness of surfaces

of shuttering materials and form work.

b) Centering supports size. Spacing, side

supports and cross bracing (Structural

aspects of arrangements)

c) Evenness and camber of surface to

come in contact of concrete

4. Masonry work a) Filling of mortar in Joints and mortar

strength

b) Lines, levels of courses and verticality

c) Staggering of Joints, Bonding in

courses and at junctions (Bondstones

for stone masonry)

5. Wood Joinery Work a) Quality of timber, absence of sap and

knots

b) Finishing of edges and surface, proper

joinery work, process of warping

c) Fixing, gaps, cracks in panels &

members

6. Flush Door Shutters a) Finish of edges and surface, absence

of warpage

b) Fixing, Convenience of Operation of

openable shutters Tests

7. Windows/Doors a) Ease / convenience of operations of

openable shutters

b) Proper welding/grinding

c) Soundness of floor

8. Flooring a) Surface finish and joints

b) Slope of floor and surface finish

c) Soundness of floor.

9. Roofing (Point Roofs) a) Soundness and geometray of sheets

b) Adequacy and uniformity of slopes and

overlaps of sheets and troughs.

(c) Fixing of sheets, j/books, attach bolts.

10. Roof Treatment a) Slopes and drainage

b) Proper junction with parapet and with

rain water pipes (KHURRAH)

c) Evenness and soundness of finished

surface and grouting of points

11. Finishing Plasters and wall tilling etc., a) Soundness of the finishing layers,

flashing

b) Surface evenness, outward slopes of

chajjas and inward slopes of top of

parapet, rounded junction with walls

c) :Lines, levels in general.

12. Pipes work for Damage and Sewerage a) Jointing, verticality, concentricity and

water tightness

b) Gradient and slopes

c) Water seal and Gap between top of trap

and top of floor (Jali)

13. Pressure Pipes Work a) Jointing and water fightness

b) Proper alignment and fixing of exposed

pipes

14. Door, Window Fittings a) Dimensions and weights

b) Finish of fittings

c) Use of adequate no. and proper type

screws

15. CP/Brass Fittings a) Plunger, washer, seating of washer

b) Convenient working

c) Weight and finish

16 Sanitary Wares a) ISI marking and CPWD Specification

b) General shape, size and absence of

visual defect

c) Fixing, Gaps, water tightness and

jointing of WC pans with the trap

17. Pipes and Fittings a) Dimension and weights

b) Coating internal and external

c) Fixing

ANNEXURE 20.4

(Refer Para 20.5)

FORMAT FOR DAILY PROGRESS RECORD

1. Date

2. Whether Conditions

a) Temperature Maximum ________ Minimum_______

b) Rainfall

c) General Weather (Tick relevant item)

(i) Sunny

(ii) Cloudy

(iii) Windy

3. Details of Plant & Equipment of Contractor available at site

4. Details of Supervisors / Labour of Contractor available at site

5. Details of Work done

Sl. No. Item Executed Quantity Location

6. Any Special Difficulties / happening

For Contractor For RITES LTD

Signature: Signature:

Date: Date:

Name of Contractor: Name:

ANNEXURE 20.7

(Refer Para 20.8)

FORMAT FOR “NON-CONFORMING ITEMS” RECORD

1. Item No. (as per Bill of Quantities)

2. Brief Details of the BOQ Item

3. Name & Designation of Official of RITES LTD., deciding on the non-conformation (Defective Workmanship)

Name Designation

4. Nature of Non Conformation

5. Comments YES NO N/A

5.1 Whether the item is structurally sound

5.2 Whether the item can be accepted at Reduced rates

5.3 Whether the item requires demolition and re-execution

6. Remarks indicating the action taken by the contractor and whether accepted by RITES LTD., at full or reduced rates.

7. Details of Tests carried out before acceptance by RITES LTD.

8. If accepted at Reduced Rates by RITES, basis for reduction proposed in rate and Name & Designation of RITES’ Authority deciding on the same.



Date: Date:

Name of Contractor Name:

ANNEXURE 20.8

(Refer Para 20.9)

FORMAT FOR QUALITY AUDIT RECORD

1. Date of Quality Audit

2. Venue of Inspection

3. Department of Auditing Team

4. Head of Audit Party

5. Other members of the Audit Team

Name Designation

(i)

(ii)

(iii)

6. Reference of Audit Report

7. No. of Paras

8. 1st Reply to Audit Report

Reference of Reply

Rejoinder to reply

No. of paras dropped

Paras Outstanding



Date: Date:


2nd Reply to Audit Report

Reference of Reply

Rejoinder to reply

No. of paras dropped

Paras Outstanding



Date: Date:


ANNEXURE 20.9

(Refer Para 20.10)

FORMAT FOR SITE COORDINATION MEETINGS RECORD

1. Coordination Meeting No.

2. Venue of Meeting

3. Date and Time of Meeting

4. Name of Chairman and Designation

5. Names of Other Participants

Sl. No.

Name of Participant Designation Organization Telephone No.

Signature

6. Designation of the person who is to issue Minutes of Meeting

7. Reference of Letter under which Minutes of Meeting issued

8. Reference of Action taken Report by each of the Participants

Sl. No.

Action Taken Report received from

Report kept in File No.

Signature, name, Date & Designation of RITES Site Engineer

ANNEXURE 20.10

(Refer Para 20.11)

FORMAT FOR GUARANTEE BONDS RECORD

1. Purpose for which Guarantee Bond submitted by the Contractor

2. Details of Bank issuing Bond & amount covered by the Bond

3. Date of issue of Bond

4. Reference on confirmation by Bank on authenticity of Bond

5. Reference of Acceptance of Bond by RITES LTD. after check

6. Period of Bond including Extensions

Note: The Site Engineer should advise the office of Engineer-in-Charge as soon as

circumstances arise requiring the validity period of Bond to be got extended.

Sl. No. Details of Period covered by Bond

Date upto which valid

Signature, Name, Designation & Date of RITES Site Engineer

1

2

3

Initial Period

First Extension

Second Extension etc.

ANNEXURE 20.11

(Refer Para 20.12)

FORMAT FOR INSURANCE POLICIES RECORD

1. Purpose for which Insurance Policy taken and submitted by the Contractor

2. Details of Insurance Company issuing Insurance Policy & Amount covered by the

Policy

3. Date of issue of Insurance Policy

4. Reference of Acceptance of Policy by RITES LTD. after check

5. Period covered by Insurance Policy including Extensions

Note: The Site Engineer should advise the office of Engineer-in-Charge as soon as

circumstances arise requiring the validity period of Insurance Policy to be got extended.

Sl. No. Details of Period covered by Insurance

Policy

Date upto which valid

Signature, Name, Designation & Date of RITES Site Engineer

1

2

3

Initial Period

First Extension

Second Extension etc.

ANNEXURE 21.1

(Refer Para 21.1.2)

REGISTER OF MEASUREMENT BOOKS

SBU

PARTICULARS

Note: MB should be preserved for 10 years after Financial closure of the Project

Serial No. of the Measurement Book

Date of Receipt

Name & Designation of the person to whom issued

Date of issue

Name & Designation of the person to whom transferred

Date of Transfer

Date of Return of Completed Book

Remarks

ANNEXURE 21.2

(Refer Para 21.2 & 21.3)

GUIDELINES ON RECORDING OF MEASUREMENTS AND TEST CHECKING

In supersession of the provisions relating to “Recording of Measurements and Test Checking” contained in “Guidelines for Managers, Assistant Managers, Engineers / Technical Assistants for Civil Engineering Projects” issued under RITES:P:10-01:ADMN dated 01.01.1997, following comprehensive instructions are issued for strict implementation by the officials concerned.

1. Depending on the Financial Value and Complexity of work, the Field unit will be manned by one or more Site Engineers who may be in grades of Technical Assistant, Senior Technical Assistant, Engineer, Assistant Manager, Manager, Dy. GM etc. Where there are more than one Site Engineer, the senior most will be designated as “Controlling Site Engineer”.

2. In the SBU Office, one officer will be nominated as the “Project Coordinator” who will be responsible for coordination at the SBU Office level of all activities relating to the Project or Work.

3. Where there is shortage of regular staff of RITES, the Field Unit may be manned by one or more “Contract Engineers” deputed specifically for part or full duration of the work. Contract Engineers will be deployed to assist “Controlling Site Engineers”. Contract Engineers will not be put in independent charge at any site.

4. a) Normally the initial recording of measurements will be done by the Site Engineers who are regular staff of RITES and to whom the Measurement Books have been issued. Measurement Books should not be issued in the names of Contract Engineers or Contract Technical Assistants. In special circumstances, the Engineer-in-Charge who has signed the Works Contract on behalf of RITES Ltd., can authorize in writing by name any Contract Engineer or Contract Technical Assistant to do the initial recording of measurements. In such cases, the Measurement Books should be issued in the name of the Controlling Site Engineers.

b) In all cases of Earthwork, the Measurements in the MB should be supported by details to be recorded in the Level Books.

5. Test checking of measurements is to be carried out by an official senior to the Site Engineer who has recorded the initial measurements, either in the same Grade or in a higher grade. If the Field Unit consists of only one Site Engineer, the “Project Coordinator” in the SBU office will either himself do the test checking or nominate in writing by name an official deputed to do the Test Checking. If the Field Unit consists of more than one Site Engineer, the Controlling Site Engineer will himself carryout the Test Checks. Alternatively he can nominate in writing by name another Site Engineer to do the Test Checking, subject to the Condition that the nominated Site Engineer is senior in same grade or in a higher grade with respect to the Site Engineer who has recorded the initial measurements.

6. The extent of Test Checking to be carried out will be as under:

a) Hidden Measurements below Ground Level

Atleast 20% of each item of works.

b) Earthwork

Initial Ground Level, Final Formation Level, Quantity and Lead diagram for all types of Earthwork in Embankment and cutting.

Atleast 20% of items of work.

c) Soil / Rock Classification for Earthworks


d) Ballast Supply


e) Other Items

Atleast 10% of the Monetary Value of measurements of work done.

f) General

In all cases where a Contract Engineer or a Contract Technical Assistant has been authorised to take initial measurements, the extent of Test Checking will have to be enhanced by 50% for all items mentioned at (a) to (e) above. For example the extent of Test Checking will be 30% instead of 20% in case of item 6 (b) i.e. Earthwork”.

ANNEXURE 21.3

(Refer Para 21.4)

PROFORMA FOR WRITE OFF OF LOST MBs

1. Serial number of the MB

2. To whom issued

3. The date on which the M.B. was lost

4. Details of FIR lodged with the police

5. From whose custody it was lost?

6. Detailed circumstances leading to its loss

7. What efforts were made to trace the M.B.?

8. By whom the last measurements were recorded?

9. Whether the measurements have been checked upto the required % age by the Superior Officer as required under the rules? If not, why?

10. Is any register being maintained to watch the movement of the M.B.?

11. Whether the M.B. contained the details of any work for which payment has not been made or all the works have been finalized?

12. Whether any accounts/audit/igilance objection or contractor’s dispute relating to the M.B. is pending, and if so, nature thereof, and how it is proposed to settle up?

13. Whether work is susceptible of measurement again? It not, what is the basis on which the Controlling Site Engineer proposes to make final payment for outstanding bills?

14. Whether the Project Coordinator is satisfied that by writing of fresh measurements on the basis of other subsidiary records, if any, the Employer will not be put to any loss, and there will be no dispute from any quarter? If not, what are the steps suggested to safeguard against any such shortcoming?

15. Details of disciplinary action taken against the person (s) responsible for the loss.

16. Details of remedial measures taken to avoid recurrence of such cases

17. Any other remarks

--------

Engineer-in-Charge

(If Subordinate to SBU Head)

Remarks if any, of SBU Head --------

SBU Head


FORMAT FOR MEASUREMENT BOOK

PAGE Nos.

CONTENTS REMARKS

(i) Certificate on the Number of Leaves in the M.B. and major deficiencies observed on Yearly Check and check on final return done by the Accounts Officer of SBU Office

--

(ii) (iii)

Certificate by Accounts officer of SBU office on checks carried out

2 Pages with same proforma

(iv) Details of initial issue and subsequent Transfers -- (v) Details of Measurements recorded by Holders -- (vi) (vii)

Review Notes by Superior Inspecting Officers 2 Pages with same proforma

(viii) Review by Accounts Officer of SBU Office and SBU Head

--

(Ix to xi) Index 3 Pages with same proforma

(xii) Entries to be recorded in Manuscript at the beginning of each set of measurements relating to each work

--

1 to 100 Format for Recording Measurements 100 Pages with same proforma

CERTIFIED that the Measurement Book contains 100 leaves.

Signature of Officer receiving the Measurement Book

YEARLY CHECK AND CHECK ON FINAL RETURN OF MB BY SBU ACCTS. OFFICER

- MAJOR DEFICIENCES OBSERVED

Date of Check Particulars of major Deficiencies

Dated Initials of Accounts Officer

(Page No. i of MB)

CERTIFICATE BY ACCOUNTS OFFICER OF SBU OFFICE

CHECK LIST OF ITEMS COVERED BY Yearly check & Check on Final Return of MB

CERTIFIED that this Measurement Book No. ___________ has been checked and it is found that

YES

NO

a) No page is torn out and missing and blank pages have not

been left uncancelled

b) Corrections are properly made and initialed by responsible person

c) Entries have been recorded only in ink and there are no pencil entries

d) The number and date of each voucher in which the quantities are entered for payment are noted

e) The entries have been crossed off on preparation of Bill

f) In the case of cancelled measurements the reason for cancellation has been given and cancellation attested by the person who made the measurements and by the Controlling Site Engineer

g) The index is complete

h) Each set of measurements is signed by the Officer by whom they were actually made

I) Test checks have been made as stipulated

J) Each set of measurements bears, in addition to the signature of the Officer or the subordinate who made the measurements, the signature of the official if any who checked the calculations and the signature of the Controlling Site Engineer who passed the measurements and signed the bill

Certified also that necessary entries have been carried out in Page (i) of MB.

Date_____________ Signature _____________________ ACCTS. OFFICER IN SBU OFFICE

________________ OFFICE

(Page No. ii & iii of MB)

MEASUREMENT BOOK

Details of Initial issue and subsequent transfers.

_________ _________ NAME OF SBU OFFICE NAME OF FIELD OFFICE NAME, DESIGNATION AND SIGNATURE NAME, DESIGNATION AND OF ISSUING OFFICIAL SIGNATURE OF RECEIVING OFFICIAL

M.B. No._______

Issued to ____________ (Site Engineer) on ______________ by *_________

*Dated initials of the official in charge in Field Office

Transferred by ____________ (Transferring Site Engineer)

To _____________________ (Transferee Site Engineer)

Signature with date Transferring Officer ( .......................

Transferee Officer ( .......................

Controlling Site Engineer____

Transferred by _________ (Transferring Site Engineer) ______________ to ______________ (Transferee Site Engineer)


Transferee Officer ( ....................... Controlling Site Engineer ______

Transferred by _________ (Transferring Site Engineer) _________ to ______________ (Transferee Site Engineer)


Transferee Officer ( ....................... Controlling Site Engineer____

(Page No. iv of MB)

MEASUREMENT BOOK

DETAILS OF MEASUREMENTS RECORDED BY HOLDERS

____ ____ NAME OF SBU OFFICE NAME OF FIELD OFFICE

M.B. No.______

Sl. No.

NAME OF HOLDER

DESIGNATION OF HOLDER

DETAILS OF FIRST ENTRY IN MB

DETAILS OF LAST ENTRY IN MB

DATE OF ENTRY

PAGE NOS. FROM TO

DATE OF ENTRY

PAGE NOS. FROM TO

(Page No. v of MB)

REVIEW NOTES

By Superior Inspecting Officers of RITES

Date Pages recording measurements

subjected to test check

Value of measurements

checked

Result of the check exercised Satisfactory or unsatisfactory

Dated initials and designation of the Checking Officer

(Page No. vi & vii of MB)

REVIEW NOTES

By ACCOUNTS OFFICER OF SBU OFFICE & SBU HEAD

Pages reviewed generally

Calculations selected by Accounts Officer / SBU Head

for re-check

Defects, discrepancies etc., Noticed

Dated initials of

Pages Dated initials Accts. SBU Head Officer

(Page No. viii of MB)

INDEX (To be filled in as each set of measurements is recorded. If an entry for a work or a contractor already exists, value of work done and pages for new measurements only should be added thereto)

Full name of work or propose of supply

Name of Contractor

Value of work done proposed

for payment through the bill

Pages of MB

From To

(Page No. ix, x, xi of MB)

Entries to be recorded in manuscript at the beginning of each set of Measurements relating to each work

a) Name of work –

b) Situation / Location –

c) Agency by which work is executed –

d) Number and date of agreement or work order –

e) Date of measurement –

f) Reference to previous measurement –

g) Date of commencement of work –

h) Date of completion of work –

(Page No. xii of MB)

ANNEXURE – 21.5

(Refer Para 21.5)

FORMAT FOR ABSTRACT OF MEASUREMENTS TO BE RECORDED IN M.B AT THE END OF DETAILS OF MEASUREMENTS RECORDED FOR ANY BILL

NOTE: (i) Abstract should include all items (BOQ. NS including Extra and

Substituted) for which payments have been proposed. Items not operated

upto date need not figure in the Abstract of Measurements

(ii) If, for the same item, payment has been made/proposed at different rates for various quantities such as Part rate/BOQ rate/0.98 BOQ rate/0.96 BOQ rate/Special rate based on Market rate, the quantities involved may be shown in Cols 4a & 5a with the corresponding rates in Col. 4b & 5b.

(i) For last Abstract of Measurements refer MB No. -------------- Page No. ------------

BOQ/ NS Item No.

Brief Descripti

on of Item

Unit UPTO PREVIOUS BILL CURRENT BILL UPTO DATE

Quantity

Rate Paid (Rs. )

Gross amount

paid (Rs.)

Quantity

Rate Paid (Rs.)

Gross amou

nt Paid (Rs.)

Quantity

Rate

Paid

Rs.

Total

Gross

Amt.Pai

d

1 2 3 4a 4b 4c 5a 5b 5c 6 a 6b 6c

RECORD OF MEASUREMENTS

PARTICULARS Details of actual Measurements Contents – Volume or area

No. L B D

1 2a 2b 2c 2d 3

(Page No. 1 to 100 of MB)

ANNEXURE 24.1

(Refer Para 24.2.1)

RITES FORM

FORMAT FOR RUNNING ACCOUNT BILL AND FINAL BILL

(Final Bill to be made in the same format but printed on Yellow Paper to distinguish it from RA Bills)

Note for Contractors

(i) Form 1 A provides for BOQ and NS items for which payment is claimed on basis of Detailed Measurements recorded in Measurement Book.

(ii) Form 1 B provides for BOQ and NS items for which payment is claimed on basis of Approximate Quantities recorded in MB without Detailed Measurements

1. Name of SBU

2. Name of Project Office

3. Voucher No. & Date


5. Name of work

6. Serial No. of the Bill

7. No. and date of previous bill for this work

8. Agreement No. & Date

9. Date of written order to commence work

10 Scheduled Date for Completion including Extension (if any) granted.

11. Date of Actual Completion of Work

FORM II CERTIFICATES AND SIGNATURE

1. The measurements on which are based the entries in Cols. 1 to 6 of Form 1A were made by _________________ on ______________ and are recorded at Pages _____________________ of MB No.________________________

2. The Lump Sum Quantities on which are based the entries in Cols. 1 to 6 of Form 1B were assessed by _______________________ on ____________________ and are recorded of Pages ________________ of the MB No. ____________________. Certified that Quantities and not less than the Lump Sum Quantities recorded in the MB for various items, have been actually executed at site and the quantities recorded in MB have been assessed on approximate basis and roughly computed.

Contractor Site Engineer who Name:

(Name of Company) has recorded the Measurements Signature:

In M.B Date:

Controlling Site Engineer who Name:

has test Checked the Signature:

Measurements& Checked Bill Date:

FORM III – DETAILS OF GROSS PAYMENTS (Rs.)

Sl No. DETAILS Upto Previous Bill (Rs.)

Since Previous Bill (Rs. )

Total Upto date (Rs. )

REMARKS

(1) (2) (3a) (3b) (3c) (4)

1 Items for which Detailed Measurements recorded in MB (From Cols. 6a, 6b,6c of Form 1A)

2 Items for which payment proposed on Lump Sum Quantity without Detailed Measurements (From Cols. 6a, 6b, 6c of Form 1B)

3 Secured Advance on Materials

* ** (As proposed)

- * Details at Annexure IA of RAB No. ** Details enclosed at Annexure 1A

4 Mobilization Advance

* ** (As proposed)

* Details at Annexure II of RAB No. ** Details enclosed at Annexure II

5 Plant & Machinery Advance

* ** (As proposed)

* Details at Annexure III of RAB No. ** Details enclosed at Annexure III

6 Price Escalation under Clause 10 CC of Contract

TOTAL

* ** (As proposed)

* Details at Annexure IV of RAB No. ** Details enclosed at Annexure IV

FORM IV – DETAILS OF RECOVERIES (Rs.)

Sl No. DETAILS Upto Previous Bill (Rs.)

Since Previous Bill (Rs. )

Total Upto date (Rs. )

REMARKS

(1) (2) (3a) (3b) (3c) (4)

1 Secured Advance on Materials

* ** (As proposed)

* Details at Annexure IB of RAB No. ** Details enclosed at Annexure IB

2 Mobilization Advance including interest

* ** (As proposed)

* Details at Annexure II of RAB No. **Details enclosed at Annexure II

3 Plant & Machinery Advance including interest

* ** (As proposed)

- * Details at as Annexure III of RAB No. ** Details enclosed as Annexure III

4 Materials supplied by the Employer at rates given in the Contract.

* ** (As proposed)

* Details at Annexure V of RAB No. ** Details enclosed at Annexure V

5 Security Deposit * ** (As proposed)

* Details at Annexure VI of RAB No. ** Details enclosed at Annexure VI

6 Tax Deduction at source towards Income Tax & Sales Tax on works/VAT, Labour Welfare Cess etc.,

* ** (As proposed)

* Details at Annexure VII of RAB No. ** Details enclosed at Annexure VII

7 Compensation and Dues (if any) recoverable from the Contractor

TOTAL

* ** (As proposed)

* Details at Annexure VIII of RAB No. **Details enclosed at Annexure VIII

FORM V MEMORANDUM OF PAYMENT

1) Gross Payment due through Current Bill Rs.

(Col. 3b of Form III)

2 Recoveries through Current Bill Rs.

(Col. 3b of Form IV)

3) Net Payment due to be Contractor Rs.

(Item 1 – Item 2)

Pay Rs. _______________________ (in words)

by Cheque

Disbursing Date:

Officer Signature:

Designation:

RECEIVED Rs.

as per above Memorandum through Cheque No. Dated on

account of this work.

WITNESS STAMP Signature of

Contractor

with Seal

PAID BY ME VIDE CHEQUE NO.____________________ DATED ________________

Official ) Date:

actually ) Signature:

making ) Designation:

the payment )

FORM VI REMARKS

Note: The Disbursing Officer and SBU Head can record Remarks if any on Check of Measurements, State of Contractor’s Account etc.,


DEVIATION STATEMENT

1. Following instructions are on the basis of following Deviation Limits

(i) Non Foundation items (+) 25%; (- ) unlimited (ii) Foundation items (+) 100%; (- ) unlimited

Instructions on filling up Columns of Deviation Statement.

Note: 1. For BOQ-Non Foundation items – Permissible Deviation will be + 25%. For quantity in excess of 125% of BOQ quantity, 0.97 BOQ rate and market rates will apply for quantities as stipulated in the Contract. If quantity executed is less than BOQ quantity, payment for quantity executed will be only at BOQ rate.

o For BOQ–Foundation Items – Permissibile deviation will be + 100%. For quantity of any foundation items in excess of 200% of BOQ quantity, 0.97 BOQ rate and market rates will apply for quantities as stipulated in the Contract. If quantity executed is less than BOQ quantity, payment for quantity executed will be only at BOQ rate.

Explantory Statements as per Proforma attached should accompany Deviation Statement.

NOTE:

RUNNING ACCOUNT BILLS

1. Col. 1 BOQ Item Nos. to be as in Contract Agreement. Substituted as well as Extra items to be serially numbered in the order in which they are proposed.

2. Col. 4 For BOQ Items BOQ Rate; For Substituted and Extra items, Rates as recommended.

3. Col. 5 For definition of Foundation items, refer Clause 12.5 of Clauses of Contract and Schedule F of Contract.

4. Col. 6d To be filled based on a reasonable assessment.

5. Col. 7a Amount to be worked out only for BOQ Items at BOQ rate (Col. 6f x Col. 4).

6. Col. 7b For BOQ items, Amount may be worked out as under:

(i) Non Foundation items (No Deviation or Deviation to any extent on lower side)

If Col. 6e shows quantities upto 125% of Col. 6f.

At BOQ Rate shown in Col. 4 x Quantity shown in Col. 6e

(ii) Non Foundation items (Deviation on higher side)

If Col. 6e shows more than 125% of BOQ Quantity shown in Col 6f - At BOQ Rate in Col. 4 x 125% of BOQ Quantity shown in Col. 6f + at 0.97 BOQ rate for Quantity between 125% and 150% at recommended market rate x Quantity of Col. 6e in excess of 150% of Quantity in Col. 6f.

Note: If recommended rate has not been worked out, till that time take at BOQ Rates for Deviated Quantity in excess of 150% of BOQ Quantity.

(iii) Foundation Items

(a) (No Deviation or Deviation to any extent on lower side):- At BOQ Rates shown in Col. 4 x quantity shown in Col. 6e.

(b) (Deviation on higher side)

If Col. 6e shows more than 200% of BOQ Qnty shown in Col. 6f - At BOQ rate in Col 4 × 200% of BOQ Qnty. shown in Col. 6f + at 0.97 BOQ rate for Quantity between 200% and 240% at recommended Market Rate × Quantity of Col 6 e in excess of 240% of qnty. in Col. 6f.

Note: If recommended rate has not been worked out, till that time take at BOQ Rate for the Deviated Quantity in excess of 240% of BOQ Quantity.

(iv) Substituted and Extra items

For Substituted and Extra items, amount may be worked out as under

Recommended Rate in Col. 4x Entire Quantity in Col. 6e.

FINAL BILLS

1. Col. 1 BOQ Item No. to be as in Contract Agreement. Substituted and Extra items to be serially numbered in the order they were proposed.

2. Col. 4 For BOQ Items at BOQ Rates; For Substituted and Extra items, Rates as approved by Competent Authority (Refer relevant item of SOP)

3. Col. 6d This will be Nil.

4. Col. 6e Quantities will be as finally executed

5. Col. 7a Amount to be filled in for only BOQ items at BOQ Rate (Col. 6f x Col. 4)

6. Col. 7b For BOQ Items, amount may be worked out as under:— Non Foundation Items

Same as in items (i) and (ii) under “Running Account Bills” except that “Recommended Market Rate” shall be replaced by “Market Rate approved by Competent Authority under relevant item of SOP” and “Anticipated Quantity at Completion Stage” replaced by “Quantity as finally executed”.

Foundation Items

Same as in items (iii) (a) and (b)under “Running Account Bills”.

For Substituted and Extra items, Amount may be worked out as

under:– Market Rate approved by Competent Authority under relevant item of

SOP x Quantity actually executed in Col. 6e

EXPLANATORY STATEMENTS TO ACCOMPANY DEVIATION STATEMENT (I) Foundation Items of BOQ – Deviation on higher side – (Anticipated

Quantity at Completion stage likely to exceed 240% of BOQ quantity)

BOQ Item No. Description of item in brief

Unit Anticipated Qty. at

completion stage as % of

BOQ Qty.

Remarks on action

proposed to restrict

completion qty to less

than 240% of BOQ Qty.

Position on submission of Market Rate Analysis for approval of competent

authority for Deviated Quantity

(ii) Non Foundation Items of BOQ – Deviation on Higher Side (Anticipated Quantity at Completion Stage likely to exceed 150% of BOQ

Qty.)

BOQ Item No. Description of

item in brief Unit Anticipated

Qty. at completion

stage as % of BOQ Qty.

Remarks on action

proposed to restrict

completion qty to less

than 150% of BOQ Qty.

Position on submission of Market Rate Analysis for approval of competent

authority for Deviated Quantity

(iii) Where anticipated cost is such the approval of a higher Authority or client is

required to be taken, details of action taken for the same.


GUIDELINES ON CHECK AND CUSTODY OF BANK GUARANTEES SUBMITTED BY THE CONTRACTOR

1.0 GENERAL

1.1 The Contractor may submit Bank Guarantees for the following from any Scheduled Bank except those Banks with whom business dealings have been suspended/banned. Custody of Guarantee Bonds will be the responsibility of Accounts Section of SBU Office.

i) Performance Guarantee (under Clause 1 of Contract)

ii) Guarantee towards Mobilization Advance (under Clause 10B of Contract)

iii) Guarantee towards Free supply of Materials (under Clause 11 of Contract)

iv) Any other circumstance as provided for in the Contract.

1.2 Banks have already the practice of sending original of B.G to the Beneficiary directly under Registered Post/Acknowledgement Due. In all cases where the contractors are to furnish B.G in favour of RITES, they should be advised to request the Bank to send the orginal B.G directly to RITES under Registered Post/Acknowledgment Due.

2.0 POWERS OF BANKS TO ISSUE GUARANTEE BOND

2.1 Scheduled Banks approved by the Reserve Bank of India in this behalf shall be eligible to issue Guarantee Bonds upto certain specified limits without being required to lodge Government Securities as cover.

2.2 The Bank authorizes certain officials of the Branch concerned to sign the Guarantee Bond binding the Guarantor Bank.

2.3 The Bank Guarantee is drawn on a non-judicial stamp paper of appropriate value.

3.0 CHECKS TO BE EXERCISED BY ACCOUNTS SECTION OF SBU OFFICE ON RECEIPT OF BANK GUARANTEE FROM THE CONTRACTOR

3.1 Is the Bank Guarantee on Non-judicial Stamp paper of appropriate value purchased in the name of the Bank?

3.2 Is it in the approved format, for the amount required and valid for the period specified in the Contract Agreement?

3.3 Is the Bank Guarantee a genuine one? On receipt of every Bank Guarantee Bond, a reference should be made to the Regional Office of the Bank to ascertain the bonafides of the Bond. A proper record should be maintained of the confirmation from the Regional Office of the Bank. It is to be noted that individual Bank Branches are usually authorized to issue Guarantee Bonds upto a certain specified limit by the Regional Offices of the Bank and also only certain officials

of the Branch are authorized to sign the Guarantee Bond on behalf of the Bank. As an extra precautionary measure, a certified True copy of Bank Guarantee should be sent to the Branch of Bank furnishing the Bond and Regional Office of Bank for their record.

3.4 A Register should be maintained of the Bank Guarantee Bonds in custody of each SBU Office. An index should be made out in the Register indicating the following details.

i) Guarantee Bond No. and Date

ii) Name of the Bank Branch issuing the Bond

iii) Details of the Regional Office of Bank Controlling the Branch

iv) Purpose for which Guarantee Bond issued such as Performance Guarantee, Mobilisation Advance Guarantee etc.

v) Name of Contractor

vi) Contract Agreement No. with the Contractor

vii) Name of work

viii) Amount of Bank Guarantee

ix) Validity of Bank Guarantee upto (Date)

x) Whether Genuineness of BG confirmed by the Regional Office?

In the Register separate pages should be earmarked for each month in which should be listed all BGs (No. and Date of issue) whose validity expires during that month. A review of the Register should be done regularly in the first working day of the month to list out the BGs whose Validity will be expiring in the fourth month counting from the month of review. Thus, if the review is done on (say) first of January, all BGs whose Validity will be expiring in April of that year should be listed. A reference should be made to the Engineer in charge / Project Coordinator concerned to get a confirmation on whether the validity of BG is to be got extended and if so for what period. If the reply is in the affirmative, prompt action should be taken to advise the Contractor to arrange for extension of validity of BG. If the Contractor does not extend the validity in spite of a reminder, the BG should be encashed within the Validity period under advice to the Contractor. Similarly, when the Engineer in Charge recommends encashment of BG on grounds of recovery of dues from the Contractor, BG should be encashed within validity period under advice to the Contractor.

3.5 When the purpose for which the Bank Guarantee has been furnished by the Contractor has been fulfilled, the BG may be returned in original to the Branch of the Bank which had issued it with an advice to cancel the BG. A copy of the BG should however be retained in the office of SBU for record along with a copy of advice sent to Bank for cancellation of BG.


DOCUMENTS TO ACCOMPANY RUNNING ACCOUNT BILLS

GENERAL DETAILS

1. Contract Agreement No. & Date

2. Contract Value (Rs.)


4. Name of Work

5. Scheduled Date of Completion / Extended Date of Completion

6. Date of Measurement

7. RA Bill No. & Date of Bill

SPECIFIC DETAILS

1. PERFORMANCE GUARANTEE (CLAUSE 1 OF CONTRACT)

i) Guarantee Bond issued by Bank Name & Branch:-

ii) Guarantee Bond No. & Date:-

iii) Amount Covered by Bond:-

iv) Bond Valid upto (Date):-

2. BANK GUARANTEE BOND ON FREE SUPPLY OF MATERIALS TO THE CONTRACTOR (CLAUSE 10 OF CNTRACT)

(I) Issued by Bank Name and Branch:-

(ii) Guarantee Bond No. & Date:_

(iii) Amount covered by Bond:-

(iv) Bond valid upto (Date)

3. MANDATORY TESTS ON MATERIALS (CLAUSE 10 A OF CONTRACT)

Sl. No.

Name of Material

Full Quantity of material required as per Agreement

Frequency of tests as per CPWD specifications

No. of Tests to be done for full Quantity

Upto date Qty. received at site

No. of Tests required for upto date quantity

No. of Tests actually carried out upto date

Remarks on short fall (if any) and reasons for the same

1 2 3 4 5 6 7 8 9

4. SETTING UP OF SITE LABORATORY (CLAUSE 10 A OF CONTRACT)

i) Whether Site Laboratory has been set up fully equipped as stipulated in Clause 10 A of Clauses of Contract?

ii) Whether the Laboratory is manned by Competent Staff?

5. INSURANCE POLICY ON SECURED ADVANCE ON PERISHABLE MATERIALS (CLAUSE 10B OF CONTRACT)

i) Amount of Secured Advance covered by Insurance Policy:-

ii) Insurance Policy No. & Date:-

iii) Name of Insurance Co. & Branch issuing the Policy:-

iv) Policy Valid upto (Date):-

6. BANK GUARANTEE BOND ON MOBILISATION ADVANCE (CLAUSE 10B OF CONTRACT)

i) Issued by Bank Name & Branch:-

ii) Guarantee Bond No. & Date :-

iii) Amount covered by Bond:-

v) Bond Valid Upto (Date):-

7. HYPOTHECATION DEED ON PLANT & MACHINERY ADVANCE (CLAUSE 10B OF CONTRACT)

i) Deed No. & Date:-

ii) Details of Plant & Machinery covered:-

iii) Amount of Advance sanctioned:-

8. INSURANCE POLICY ON PLANT & MACHINERY ADVANCE (CLAUSE 10B OF CONTRACT)

i) Amount of Advance covered by Insurance Policy:-

ii) Details of Plant & Machinery covered:-

iii) Insurance Policy No. & Date:-

iv) Name of Insurance Co. & Branch issuing the Policy:-

v) Policy Valid upto (Date):-

9. LICENSE UNDER THE CONTRACT LABOUR (R&A) ACT & RULES (CLAUSE 19 OF CONTRACT)

i) Labour Office which has issued the License:-

ii) License No. & Date:-

iii) License valid Upto (Date):-

10. INDEMNITY BOND INDEMNIFYING RITES AGAINST PAYMENT TO LABOUR UNDER LABOUR LAW (CLAUSE 19B I(vi) OF CONTRACT)

i) Indemnity bond No. & Date

11. INDEMNITY BOND AGAINST PATENT RIGHTS (CLAUSE No. 26 OF CONTRACT)

i) Indemnity bond No. & Date

12. INDEMNITY BOND ON EMPLOYER’S PLANT & MACHINERY HIRED TO THE CONTRACTOR (CLAUSE 34 OF CONTRACT)

i) Indemnity bond No. & Date:-

ii) Details of Plant & Machinery concerned:-

iii) Amount for which Bond executed-

13. AVAILABILITY OF TECHNICAL STAFF AT SITE (CLAUSE No. 36 OF CONTRACT)

Requirement as per Clause 36 of GCC Available at Site

Min. Qualification & Experience No

14. REGISTRATION WITH SALES TAX DEPARTMENT FOR SALES TAX ON WORKS / VAT

(CLAUSE No. 37 OF CONTRACT) i) Registration No. & Date ii) Sales Tax / VAT Office Name iii) Registration Valid Upto (Date) 15. REGISTRATION WITH EXCISE DEPARTMENT FOR SERVICE TAX (CLAUSE NO. 37 OF CONTRACT) i) Registration No. & Date ii) Service Tax Office Name iii) Registration Valid Upto (Date)

16. INSURANCE POLICY ON COST OF WORKS (CLAUSE 47.1 OF ADDITIONAL CLAUSES OF CONTRACT)

i) Cost of Works covered by Insurance Policy:-



iv) Policy Valid Upto (Date):-

17. THIRD PARTY INSURANCE (CLAUSE 47.2 OF ADDITIONAL CLAUSES OF CONTRACT)

i) Amount Covered by Insurance Policy:-




18. WORKMEN’S INSURANCE (CLAUSE 47.3 OF ADDITIONAL CLAUSES OF CONTRACT)

i) Amount Covered by Insurance Policy:-




19. INDEMNITY BOND ON DAMAGES TO PERSONS AND PROPERTY (CLAUSE 47.9 OF ADDITIONAL CLAUSES OF CONTRACT)

i) Indemnity Bond No. & Date:-

20. DEVIATION STATEMENT

(To be furnished in the Proforma stipulated in Annexure 24.2. To be furnished starting from the Running Bill when the gross value of work done exceeds 50% of Contract Value)

21. CERTIFICATE ON CONTRACT COST

Certificate that the Cost of Work as executed has not exceeded the Contract Cost as sanctioned by the Competent Authority of RITES/Client. Action proposed for processing sanction of Competent Authority for increase in Contract Value, if trend of expenditure shows the need for the same.

22. CERTIFICATE ON TIME OF COMPLETION

Certificate that the Time limit specified in the Contract has not been exceeded. Action proposed for processing sanction of Competent Authority for extension of time if the trend of progress of work shows the need for the same.

23. DETAILS OF RECOVERY OF REMITTANCE OF EPF DUES OF CONTRACTOR’S EMPLOYEES.

OFFICIAL SUBMITTING THE BILL

Signature

Name

Designation

Date


DOCUMENTS TO ACCOMPANY FINAL BILL

GENERAL DETAILS

1. Contract Agreement No. & Date:

2. Contract Value (Rs.):-

3. Name of Contractor :-

4. Name of work:-

5. Scheduled Date of Completion / Extended Date of Completion:-

6. Actual Date of Completion:-

7. Final Value of Contract (Rs.)

8. Date of Measurement:-

9. Date of Final Bill:-

10. Date of issue of Final Completion Certificate:-

A) CERTIFICATE TO BE FURNISHED ALONG WITH COPIES OF SUPPORTING DOCUMENTS

1. All following advances given to the Contractor in terms of Clause 10B of Contract have been recovered along with interest where due.

i) Secured advance on Materials

ii) Mobilization Advance

iii) Plant & Machinery Advance

2. All amounts due to be recovered from the Contractor towards Hire Charges for Plant & Machinery, Water Charges, Electricity charges, rent for Employee’s building (if any given on rent) License fee for Employee’s Land (if any given on license) and Liquidated Damages and other Compensation have been recovered.

3. All Mandatory Tests as specified in Contract have been carried out.

4. All Deviations by way of Extra items, Substituted items and Deviations in Quantities of Scheduled Items as detailed in Clause 12 of Contract have been approved by the Competent Authority of RITES along with Rates.

5. The Final Contract Value is within the Expenditure sanction limit of the Client and within the Contract Value sanctioned by the Competent Authority of RITES.

6. The work has been completed within the Stipulated Completion Date / Extended Completion Date as approved by the Competent Authority of RITES.

7. The MBs and Bill have been signed by the Authorized Signatory of the Contractor.

8. The Contractor has submitted an unconditional No Claim Certificate.

Or

The Contractor has submitted list of Claims enclosed as Annexure A along with the comments of the Site Engineer on each claim.

Encl.: Annexure A


Signature

Name

Designation

Date

B) DOCUMENTS TO BE ENCLOSED

1. DETAILS OF PERFORMANCE GUARANTEE (CLAUSE 1 OF CONTRACT)

i) Guarantee Bond issued by Branch Name & Branch:-


iii) Amount covered by Bond:-

iv) Bond Valid Upto (Date):-

2. COPY OF GUARANTEE BOND FOR SPECIALISED WORKS (CLAUSE 17 of CONTRACT)

i) Item of Work Covered:-


iii) Bond Valid Upto (Date):-

3. DEVIATION STATEMENT (As per Proforma at Annexure 24.2)

4. COPY OF COMPLETION CERTIFICATE (CLAUSE 8 OF CLAUSES OF CONTRACT)

5. SET OF COMPLETION PLANS AND OPERATING & MAINTENANCE MANUAL (CLAUSE 8 B OF CLAUSES OF CONTRACT)

6. CHARGE PAPER - HANDING OVER OF COMPLETED WORKS TO THE CLIENT AND HIS TAKING OVER


Signature

Name

Designation

Date

ANNEXURE 24.6

(Refer Para 24.8)

CHECK LIST FOR CHECK AT SBU OFFICE BEFORE

PASSING OF BILL

(RUNNING ACCOUNT BILLS)

1. Contract Agreement No. & Date:-

(Reference of Client’s approval for the Agreement)

2. Contract Value (Rs.):-

3. Name of Contractor:-

4. Name of Work:-

5. Scheduled Date of Completion / Extended Date of Completion:-

6. Date of Measurement:-

7. RA Bill No. & Date:-

1. Whether all Documents stipulated to be submitted with RA Bill submitted

YES / NO

2. Whether the Scheduled Date of Completion / Extended Date of Completion is already over. If “Yes” whether any application for Extension of Time received and what is the Present position.

YES / NO

3. Whether the following Bank Guarantees are in proper form and Valid for the desired amount and period? Whether the authenticity of the Guarantee Bonds has been cross checked with Regional Office of Bank.

(i) Performance Guarantee (Clause 1 of Contract) YES / NO

(ii) Mobilization Advance (Clause 10B of Contract) YES / NO

(iii) Free Supply of Materials (Clause 10 of Contract) YES / NO

4. Whether the following insurance Policies are Valid for the desired amount and period?

(i) Secured Advance on Perishable Materials (Clause 10B

of Contract)

YES / NO

(ii) Plant & Machinery Advance (Clause 10B of Contract) YES / NO

(iii) Cost of Works (Clause 47.1 of Contract) YES / NO

(iv) Third Party Insurance (Clause 47.2 of Contract) YES / NO

(v) Workmen’s Insurances (Clause 47.3 of Contract) YES / NO

5. Whether the following Indemnity Bonds of the Contractor are in desired form and signed by the Authorized Signatory of the Contractor

(i) Payment to Labour (Clause 193 vi of Contract) YES / NO

(ii) Patent Rights (Clause 26 of Contract) YES / NO

(iii) Employers Plant & Machinery hired to the Contractor

(Clause 34 of Contract)

YES / NO

(iv) Damages to persons and property (Clause 47.9 of

Contract)

YES / NO

6. Whether the Hypothecation Deed executed by the Contractor is in proper form and signed by the Authorized Signatory of the Contractor

(i) Plant and Machinery Advance (Clause 10B of Contract) YES / NO

7. Whether the Contractor has submitted the following documents

(i) License under Contract Labour (R & A) Act and Rules


YES / NO

(ii) Registration with Sales Tax Department on Sales Tax on

Works Contracts and Current and Valid Tax Clearance

Certificate (Clause 37 of Contract)

YES / NO

(iii) Registration with Service Tax authorities if applicable


YES / NO

8. Whether the Contractor has arranged for the following?

(i) Setting up of Site Laboratory (Clause 10 A of Contract) YES / NO

(ii) Mandatory Tests as per CPWD Specifications (Clause 10

B of Contract)

YES / NO

(iii) Availability of Technical Staff at Site (Clause 36 of

Contract)

YES / NO

9. Whether the Deviations by way of Extra items, Substituted items and Deviations in quantities of Schedule items have been approved by the Competent Authority of RITES and the Rates have been sanctioned? Whether the Client advised of the Deviation and the Rates

YES / NO

10. Whether the Contract Cost is likely to be exceeded and if so whether the Sanction of Competent Authority of RITES and Clients’ Revised sanction for Expenditure taken?

YES / NO

11. (i) Whether Quantities of items executed as shown in Bill are

as shown in the Measurement Book, the rates for items

are as given in Contract / approved by Competent

Authority of RITES in case of deviations and the

arithmetical calculations are correct.

YES / NO

(ii) In cases where payment is proposed on Lump sum

Quantities whether the Engineer recording the

measurements has certified that not less than the quantity

billed for has actually been executed at site.

YES / NO

(iii) Whether the MB has been signed by Site Engineer /

Controlling Officer and the Authorized Signatory of

Contractor? Whether Test Checks carried out as per

Stipulations in Guidelines?

YES / NO

(iv) Whether the Engineer entering the Measurements in MB

has certified that the works have been carried out as per

approved drawings and specifications.

YES / NO

(v) Whether arithmetical checks have been done on Quantities

and Amount with reference to upto end of previous bill,

Through the Current Bill and upto the end of Current Bill.

YES / NO

12. Whether there is adequate amount available in the Bank Account for this work? If “No” what is the action taken to get the additional funds required from the client as per the

YES / NO

provisions in the Agreement between RITES and the Client.

13. Whether the Contractor has submitted evidence of recovery and remittance of EPF dues of his employees

YES / NO

ACTION PROPOSED WHEN CHECK REVEALS THE NEED FOR THE SAME

ITEM NO. ACTION PROPOSED

CHECKING OFFICIAL

Signature:

Name :

Designation:

Date:

ANNEXURE 24.7

(Refer Para 24.8)

CHECK LIST FOR CHECK AT SBU OFFICE BEFORE PASSING OF BILL

(FINAL BILL)

1. Whether the following Advances under Clause 10B of Contract have been recovered form the Contractor along with interest as due as checked from the Final Bill.

(i) Secured Advance on Materials YES / NO

(ii) Mobilisation Advance YES / NO

(iii) Plant & Machinery Advance YES / NO

2. Whether all amounts due from the Contractor towards hire charges for Plant & Machinery, Water Charges, Electricity Charges, Rent for use of Buildings, License fee for land, Liquidated damages and other compensations have been recovered?

YES / NO

3. Whether all Mandatory Tests as stipulated in Contract have been carried out.

YES / NO

4. Whether the Deviations by way of Extra items/Substituted items and Deviations in Quantities of Scheduled items have been approved along with Rates by the Competent Authority of RITES and whether the Client has been apprised of the details?

YES / NO

5. Whether the Final Contract Value is within the Amount as sanctioned by the Competent Authority of RITES and for which Expenditure Sanction has been accorded by the Client?

YES / NO

6. Whether Sanction of Competent Authority for extension of time as required exists and the Client has been apprised with full details of the period for which extension of date for completion of work has been granted by the Competent Authority of RITES?

YES / NO

7. (i) Whether Quantities of items executed as shown in Bill are as shown in the MB, the rates for the items are as given in the Contract / approved by Competent Authority of RITES in case of Deviations and the arithmetical calculations are correct?

YES / NO

(ii) Whether the MB has been signed by the Site Engineer / Controlling Officer and the Authorized Signatory of the Contractor? Whether Test Checks have been carried out as stipulated in Guidelines?

YES / NO

(iii) Whether the Engineer entering the Measurements in MB has certified that the works have been carried out as per approved drawings and specification?

YES / NO

(iv) Whether the total quantities of different items as entered in the MB and billed for, agree generally with the quantities as computed from approved drawings.

YES / NO

(v) Whether arithmetical checks have been done on quantities and amount with reference to upto end of previous bill, through the Current Bill and upto end of

YES / NO

Current Bill?

8. Has the Contractor submitted “No claim” Statement YES / NO

9. Whether there is adequate amount available in the Bank Account for this work from the Deposits of the Client.

YES / NO

10. Whether the Completion Certificate issued by the Engineer in Charge is the final one and is in order.

YES / NO

11. Whether the Guarantee Bonds furnished by the Contractor for specialized Works are in proper form and are for the period required as per Contract.

YES / NO

12. Whether the Completion plans and Operation and Maintenance Manuals furnished by the Contractor are in order.

YES / NO

13. Whether the Charge Papers on handing over / Taking over of completed works are in order.

YES / NO

ACTION PROPOSED WHEN CHECK REVEALS THE NEED FOR THE SAME

ITEM NO. ACTION PROPOSED

CHECKING OFFICIAL

Signature:

Name :

Designation:

Date:

ANNEXURE 26.1

(Refer Para 26.3.1)

LIST OF DOCUMENTS CONSIDERED ESSENTIAL FOR INSPECTIONS BY CTE AND WHICH MAY BE CALLED FOR

EXAMINATION OF WORK

(1) (a) Press Cuttings, including extended dates, if any

i) For pre-qualification of Architects/Consultants

ii) For pre-qualification of contractors

iii) Call of tenders

(b) Register of sale of tenders.

(c) Register of opening of tenders.

(2) File giving reference to financial sanction and approval of competent administrative authority.

Preliminary estimate

(3) Copy of Detailed Estimate and its technical sanction by the competent technical authority.

(4) Approved N.I.T (Notice Inviting Tenders) in original.

(5) Rejected tenders and comparative statements for:

(a) Selection of Architects/Consultants.

(b) Short listing or pre-qualification of Tenderers.

(c) Other tenders.

(6) Justification statement and corresponding noting in support of tender/offer accepted.

(7) Details of negotiations, if any, made before acceptance of tender.

(8) Original contracts with consultant/contractor.

(9) Guarantee Bonds etc. towards security for work, machinery/mobilization advance etc. including extension of validity.

(10) Insurance policies for work, materials, equipment, men etc. including extension of validity.

(11) Guarantee for water tightness, termite proofing etc.

(12) Standard specifications

(13) Standard Schedule of Rates.

(14) Drawings (Architectural and Structural).

(15) All connected Measurement Books, level books, field books and lead chart.

(16) All Running Account Bills with all connected statements/vouchers etc.

(17) Statement showing details of check of measurements by Superior Officers-Copies of orders laying down such requirements.

(18) Materials at site accounts/dismantled materials record.

(19) Site order Books/other records/Log Books.

(20) Details of Extra/substituted items and of deviated quantities being executed/considered for execution in the work along with Analysis of Rates.

(21) Hindrance Register.

(22) Office correspondence files and inspection notes, if any, issued by Inspecting Officers.

(23) Complaint records, if any.

(24) Any other documents relevant to the works.

ANNEXURE – 26.2

(Refer Para 26.4.1)

REGISTER SHOWING OVERPAYMENT ASSESSED/POINTED OUT BY CTE OREGANISATION AND SUBSEQUENT

RECOVERIES EFFEECTED

S.No. CTE”s Ref. No. and date

Name of work and Agreement No.

Name of

Contractor

Amount of over payment assessed/pointed out by CTE

Amount of over payment accepted by Engineer-in-Charge for recovery

Actual date of Recovery of over payment

Remarks

1 2 3 4 5 6 7 8


COMMON IRREGULARITIES POINTED OUT BY CTE

1.0. Administrative Approval and Expenditure Sanction

(i) A/A and E/S not available/taken

(ii) Major change in scope made during execution

(iii) No check on the estimate prepared by the consultant

2.0. Detailed estimate and technical sanction

(i) Detailed estimate not prepared

(ii) Backup calculations not kept properly

(iii) Nomenclature of item ambiguous.

(iv) No Standard Schedule of rates followed.

(v) No analysis for non-schedule items

(vi) No details and reference to drawings for check of quantities adopted

(vii) Same component in more than one item

(viii) Rate only items without indicating Quantity (Nil Quantity items)

(ix) No check on consultant in providing costly items

(x) Technical sanction based on the earlier accepted rates and not the Current rates

(xi) No check on estimates & design prepared by consultants

3.0 Appointment of Consultants

(i) No maximum limit fixed for payment of consultants fee

(ii) Paid for services not rendered.

(iii) No Publicity for appointment of Consultant.

(iv) Selection from old Panel

(v) Adhoc Rates.

(vi) Consultants given free hand in pre-qualification of contractors.

(vii) Consultants allowed receiving sale proceeds of tenders.

(viii) No control of payments on travelling expenses of consultants for site visits.

(ix) No check on consultants’ planning, design and execution. Contractors benefited in the process.

4.0 Preparation of Tender Documents

(i) Approval of competent authority not available.

(ii) Contain conflicting, vague and ambiguous provisions resulting in disputes, delays and financial loss.

(iii) Pre-qualifying criteria ambiguous/stringent.

(iv) Rate only items (Nil Quantity items).

(v) Advance for old machinery already in possession of contractor.

(vi) Mobilisation advance without interest.

(vii) Unworkable period of construction.

(viii) Tender documents prepared by splitting bigger works deliberately to fall within the competency of subordinate officers.

(ix) Particular brand of products stipulated.

(x) No specifications for non-schedule items provided in tender document.

5.0 INVITING AND OPENING OF TENDERS

(i) Publicity period not adequate.

(ii) Tenders issued to ineligible applicants.

(iii) Tender sale and opening registers not maintained.

(iv) Opening tenders in the absence of tenderers.

(v) Corrections, omissions etc. in tender not numbered and attested by the tender opening authority.

(vi) Tenders invited without availability of land/approval of local body.

(vii) Limited tenders invited labelling works as emergency ones but later on either work delayed or not put to immediate use on completion.

6.0 TENDER SCRUTINY AND AWARD OF WORK

(i) Pre-qualification done without verifying prescribed parameters

(ii) Contractor qualified without the Contractor satisfying all the prescribed parameters

(iii) Certificates on Satisfactory completion of work executed for private parties accepted without TDS certificate while evaluating PQ Documents.

(iv) Accepting additional conditions during negotiations to give undue benefit to contractor.

(v) Non-finalisation of tenders within validity period

(vi) Purchase preference not given to PSUs, when Government Orders permit the same.

(vii) L1 ignored pointing out non-satisfactory performance or other flimsy grounds.

(viii) Tender Conditions not taken into account to bring all the tenders on par before acceptance.

(ix) Tender split up and awarded to all or some tenderers, by dividing the work

(x) Single tender accepted without recorded reasons

(xi) Market rate justification not prepared to assess the reasonability of quoted rates before acceptance

(xii) Tenders during second call accepted on higher rates

(xiii) Items deleted after opening price bid to make the favoured contractor as the lowest tenderer (L1)

(xiv) Work awarded without proper verification of papers furnished by the tenderer.

(xv) Tender documents and related documents kept in loose files and not arranged properly; page numbers also not marked.

7.0 WORKS AGREEMENT

(i) Unwanted papers in the agreement

(ii) Important papers such as negotiation letter missing

(iii) Execution of agreement much after commencement of work

(iv) Agreement not signed by witnesses

(v) Performance guarantee obtained late

(vi) Insurance not taken as per conditions

(vii) Allowing validity of bank guarantee and insurance policies to lapse.

(viii) Bank guarantee not verified through issuing bank

(ix) Labour licence not obtained by contractor

(x) Technical staff not employed by contractor

(xi) Labour report not sent periodically

(xii) Safety precautions and other facilities not provided by the firms

(xiii) Schedule of quantity has rates only in figures and not in words.

(xiv) Stipulations regarding supply of water, electricity etc., not complied with. Recovery not made in case of supply by department

(xv) Conditions on Issue of materials/machinery not stipulated in contract

(xvi) Extension of time granted by authority not competent to do so

(xvii) Stipulations regarding approval of materials/samples not adhered to.

(xviii) Price escalation paid though not stipulated.

8.0 PAYMENT TO CONTRACTORS

(i) Excessive deviations allowed without approval of competent authority

(ii) Items substituted to the advantage of the contractor

(iii) Inadmissible extra items paid.

(iv) Exorbitant rates fixed and paid for extra and substituted items. Measurements not recorded in MBs.

(v) Test checks not carried out

(vi) Excessive part rates allowed.

(vii) Mobilisation advance recovered without interest for a long time.

(viii) Part rates paid instead of secured advance

(ix) Secured advance paid for larger quantities than required.

(x) Secured advance paid for perishable materials without comprehensive insurance cover

(xi) Secured advance paid without adequate testing of materials

(xii) Not effecting recoveries of secured advance on time

(xiii) Non recovery of Income Tax & Works Contract Sales Tax

(xiv) Erratic escalation payments by taking provisional indices. (xv) Escalation paid beyond stipulated period without sanction of Competent

Authority. (xvi) Undue payments made by over measurement of items. (xvii) Non-recovery of cost of materials from bills even though utilised in the

items paid for. (xviii) Excess quantities of materials issued to contractors not returned. (xix) Payment made by measurement under wrong item to the benefit of the

contractor. (xx) All rebates of the contractor not availed while making payment. (xxi) Short recovery of materials issued from bills (xxii) Retention money released before due date (xxiii) Recording fictitious date of completion of works not completed (xxiv) Rebate not accounted for in extra/substituted items. (xxv) Excise duty & sales tax/VAT reimbursed without proof of payment.

9.0 SITE RECORDS: (i) Registers not issued by Engineer in Charge with pages numbered. (ii) Hindrance register not maintained. (iii) Site order book not maintained. (iv) Compliance in site order book not recorded. (v) Test certificates of cement & steel not available. (vi) Many cuttings/over writings in the cement register (vii) Test checks not done by senior officers. (viii) On many test reports, acceptability limits and whether test meets the

requirements as per contract has not been mentioned. (ix) Cement & steel brought in small quantity at site without testing. (x) Mandatory tests not carried out. (xi) Proper records for bitumen, paints, anti-termite and water proofing

chemicals etc., not maintained to check whether theoretical requirement has been used.

(xii) Guarantees for water proofing treatment/Anti-termite treatment not obtained.

(xiii) Materials got tested from unapproved private laboratoreis. (xiv) Samples failed but action not taken. (xv) Site lab not set up in spite of existence of agreement provisions. (xvi) Record of fineness modulus (Gradation) and silt content of sand not

maintained. (xvii) Record of sieve analysis, hardness, deleterious content flakiness etc., of

coarse aggregate not maintained.

(xviii) Design of mix not done by the approved lab, and with every change of source of material, make & grade of cement.

(xix) Record of design mix not maintained though specified. (xx) Cube strength/rebound hammer test not done as per specified frequency

& record not maintained. (xxi) Test of water not maintained and test not carried out as per specified

frequency. (xxii) Water cement ratio/slump record not maintained or slump provided higher

than specified in design mix report. (xxiii) Record of check of surface undulations in case of cement concrete

pavement/ bitumen pavement not maintained. (xxiv) Record of test of sample of Dense Asphaltic Concrete, Semi Dense

Asphaltic Concrete & Bituminous macadam for bitumen content, grading of aggregate & field density not maintained.

(xxv) Record of pumping of water not maintained. (xxvi) Record of use of road roller not maintained. (xxvii) Record of test of compaction of earth not maintained. (xxviii) Record of testing of earth brought from outside not maintained. (xxix) Record of testing of earth disposed off declaring as unserviceable not

maintained. (xxx) Record of expiry date of anti-termite treatment, receipts and consumption

not maintained. (xxxi) Record of serviceable material retrieved not maintained. (xxxii) Record of disposal of rejected material by specifying truck no. & date of

disposal not maintained. (xxxiii) Water table not recorded to check the measurement of work executed

under water. (xxxiv) Record and proof of foul condition not maintained. (xxxv) Testing of pile not done and record not maintained. (xxxvi) Record of level of bottom/top of D.A.C., S.D.A.C & bituminous macadam

not maintained. (xxxvii) Record of receipt & consumption of bitumen not maintained. (xxxviii) Record of temp. of bitumen macadam, D.A.C &

S.D.A.C not maintained. (xxxix) Record of core test or proctor density test of B.M., D.A.C and S.D.A.C not

maintained. (xl) Daily bitumen consumption register of hot mix plant not maintained. (xli) Verification of BG and test results taken through contractor; when these

were checked by investigating agency, found forged. (xlii) Hindrance on account of rain has been recorded, period of rain fall is

already included in stipulated period of completion. 10. QUALITY IN CONSTRUCTION 10.1 Earthwork

(i) Earth work calculations not done based on levels where specified. (ii) Hard rock/soft rock not stacked separately. (iii) Voids not deducted.

(iv) Measurements not restricted as per drawing. (v) Lead/lift chart of earth not used. (vi) Proper quality of earth not used (vii) Compaction of earth by road roller paid within building.

10.2 Concrete Work (i) Over size/disintegrated/soft aggregates used. (ii) Sand with more silt content used. (iii) Honey combing noticed. (iv) Less thickness of PCC under floors. (v) Less reinforcement provided. (vi) Proper overlaps not provided. (vii) Lesser dia binding wire used. (viii) Cover of mortar blocks of adequate strength not used. (ix) Expansion joint not properly located/not provided. (x) Steel centering and shuttering not used. (xi) Lower floors not supported during casting. (xii) Wrong classification of RCC items. (xiii) Reinforcement found exposed. (xiv) Design mix not used though specified in contract.

10.3 Wood Work/Aluminium Work (i) Spices of Wood other than specified used. (ii) Cracks/dead knots apparent in wood. (iii) Kiln seasoning not done where specified. (iv) Less size of stile/rail. (v) Coal tar/wood preservative not used for timber in contact with masonry. (vi) Size of hold fast found less. (vii) Glass panes of less thickness provided. (viii) Non ISI marked fittings used. (ix) Glue not used in joints. (x) Doors/Windows not fabricated in approved factory. (xi) Local make flush doors used. (xii) Less size & number of hinges. (xiii) Aluminium sections of approved brand not used. (xiv) Lighter aluminium sections than specified provided. (xv) Proper sealing between frame and opening not done. (xvi) PVC weather strip/EDPM lining not provided. (xvii) Less thickness of anodizing/powder coating. (xviii) Aluminium work specified in square meter, but drawing showing sections

to be used and their Unit weights not given.

10.4 Steel Work (i) Non standard steel section used. (ii) Single piece section not used. (iii) Metal beading and glazing clips not provided.

(iv) Inferior quality hinges and fittings used. (v) Steel hinges not fixed by cutting slot. (vi) Brass striking plate not provided. (vii) Windows not anchored at top and bottom. (viii) Angle frames provided instead of T-iron frames.

10.5 Flooring (i) Less width and thickness of glass strips. (ii) Less thickness of flooring. (iii) Less thickness of kota/marble stone/granite used. (iv) Flooring sounding hollow. (v) Larger panel size than specified.

(vi) Poor workmanship with reference to lines and levels.

10.6 Roofing (i) Brick coba treatment having cracks, local undulations, sounding hollow,

less thickness, inadequate slopes. (ii) Water proofing treatment done by non-specialised firm. (iii) Guarantee Bond not obtained. (iv) Gobar and straw not used in plaster over mud phuska. (v) Less thickness of PVC sheet in khurra. (vi) Non ISI rain water pipe.

10.7 Finishing (i) Ceiling plaster thicker than specified. (ii) Non smooth plastered surface. (iii) Plaster not in line and level. (iv) Cement mortar of less strength. (v) Small size grit used in external grit plaster. (vi) Less thickness of cement plaster/POP (vii) Surface not properly prepared before painting. (viii) Distemper/White wash coming to hand. (ix) Brush marks noticed. (x) Paint register not maintained.

10.8 Water Supply, Sanitary Installations and Drainage (i) Non ISI SCE/GI pipes used. (ii) Under weight SCI/GI pipes (iii) Clamping of GI pipe not done at proper spacing (iv) Under size MS holder bat clamp. (v) Clamps not fixed in CC blocks. (vi) Less lead used in joints. (vii) Defective nahani traps. (viii) Testing of water supply and sanitary system not done. (ix) Commercial quality sanitary ware used. (x) Under weight bib taps/pillar taps/stop cocks

(xi) Brackets of wash basin etc., not provided. (xii) Under weight PVC water storage tanks provided. (xiii) Under weight gully gratings and manhole. (xiv) Inferior quality SW/RCC pipes used. (xv) Water tightness of joints and slopes not checked.

10.9 Road Work

(i) Undulations in surface. (ii) Slopes, line and levels not maintained. (iii) Over size aggregates used. (iv) Non proper consolidation. (v) Less thickness of individual layers of WBM/BM/SDAC/DAC. (vi) WBM paid as per stack measurement. (vii) Less contents of bitumen and constituents aggregates. (viii) Less quantity bitumen used in tack coat. (ix) Proper density of individal layers of pavement not achieved. (x) Less flexural strength of CC Pavement (xi) Non proper expansion/construction joint. (xii) Non uniform corrugation on finished CC pavement.

Annexure 27.1

(Refer Para 27.3)

PROCEDURE ORDER ON OPENING, CUSTODY AND FINAL DISPOSAL OF ESSENTIAL PROJECT DOCUMENTS

1.0 GENERAL INSTRUCTIONS

1.1 In maintenance of files, the following procedure shall be ensured by the custodian of the file.

i) The file will consist of a Correspondence side attached to the bottom cover of file and Noting Side attached to the top cover of the file.

ii) Correspondence side documents should be numbered serially starting from 1, on the right hand top corner on each page or folio. Rubber stamp marking

B.R

F.R

shall be inscribed on the middle of top of each page/Folio. B.R. stands for “Back Reference” or the earlier Folio No. dealing with the same subject. F.R. stands for “Forward Reference” or the subsequent Folio No. dealing with the same subject.

iii) Noting-side documents should also be numbered serially starting from N/1, on the top middle of each page. In the Notings any reference to Correspondence / Folio Number should be made as C/ ____ (Page No.) Similarly any reference to an earlier Noting Page should be made as N/_____ (Page No.).

iv) There should be no blank pages either in the Correspondence or Noting side. Blank space if found unavoidable or left by mistake, should be scored out to prevent subsequent additions.

1.2 SBU Head will nominate an official of the Project Office to be in charge of the Central Registry for custody of all Documents relating to closed projects, whether emanating from the Project Office itself or received from the Site Office. This official will also maintain a Register with Project wise Index of all Documents received from the Project Coordinators and from the Accounts Section.

2.0 GROUPS AND DOCUMENTS COVERED BY EACH GROUP

GROUP DOCUMENT / FILE NAME

A) COMMON FILES TO

BE MAINTAINED IN

SBU OFFICE

1. Policy File on “Technical Matters”

2. Policy File on “Establishment

Matters”

3. Policy File on “Accounts Matters”

4. Business Development File on

Projects for which no offer is

Proposed to be made

B) DOCUMENTS TO BE MAINTAINED

IN SBU OFFICE BY TECHNICAL

WING FOR EACH PROJECT FOR

WHICH OFFER IS PROPOSED TO

BE MADE

1. Business Development File

2. Input Estimate File

3. Consultancy Agreement between

RITES and the CLIENT

4. Sub Consultancy Agreement

between RITES and the SUB

CONSULTANT

5. Correspondence File on Estimate

6. Detailed Estimate for Works

7. Drawings – Correspondence file

8. Correspondance between

RITES and the SUB CONSULTANT

9. Works Contract Agreement between

RITES and the CONTRACTOR

10 Correspondence between RITES

and the CONTRACTOR / Site

Offices

11 Consultancy Agreement –

Correspondence with the CLIENT

on Technical matters

12 Correspondence with RITES

Headquarters on all matters

C) DOCUMENTS TO BE MAINTAINED

IN SBU OFFICE BY ACCOUNTS

WING FOR EACH PROJECT FOR

WHICH CONSULTANCY

AGREEMENT HAS BEEN SIGNED

WITH THE CLIENT

1. Correspondence with the CLIENT

on Financial matters

2. Correspondence with the

CONTRACTOR on Financial matters

3. Correspondence with the SUB

CONSULTANT on Financial matters

D) DOCUMENTS TO BE MAINTAINED

BY THE SITE OFFICE FOR THE

WORK FOR WHICH WORKS

CONTRACT HAS BEEN

EXECUTED

1. Correspondence with SBU Office on

all matters

2. Correspondence with the

CONTRACTOR on all matters

3. Correspondence with the CLIENT on

all matters

2.1 In addition to the essential Documents listed in Para 2.0, SBU Head can open other files as required, following the same system on numbering of files.

3.0 PROCEDURE TO BE ADOPTED ON OPENING AND CUSTODY OF DOCUMENTS UNDER DIFFERENT GROUPS

3.1 GROUP (A)-COMMON FILES TO BE MAINTAINED IN SBU OFFICE

NOTES

i) The official nominated by SBU Head will be responsible for opening of the files (Items 1 to 4) including giving File Number.

ii) Policy Files (Items 1,2 & 3) are to be retained as permanent records and will continue to remain in the custody of official nominated by SBU. At the time of his transfer/ retirement, the official concerned should hand over the files to his successor under clear signature. The top covers of all Policy Files should be prominently marked with the words “PERMANENT RECORD/NOT TO BE DESTROYED”.

iii) Business Development Files (Item 4), relating to each Financial Year shall be maintained separately. File relating to each Financial Year may be

retained for a year more and disposed off at the beginning of the second succeeding Financial Year.

A (1) POLICY FILE ON TECHNICAL MATTERS

a) File Name : Policy Letters and Correspondence on Technical Matters

b) File Number: RITES/PO/Hd.Qtrs. of PO/POLICY/ TECHNICAL/VOL. No. (Note: Head Quarters of Project Office can be in a short form such as SC for Secunderabad, NGP for Nagpur etc)

c) Contents: All Policy letters issued by RITES Head Quarters including correspondence on all Technical matters.

A (2) POLICY FILE ON ESTABLISHMENT MATTERS

a) File Name : Policy Letters and Correspondence on Establishment Matters

b) File Number: RITES/PO/Hd.Qtrs. of PO/POLICY/ ESTAB/VOL. No.

c) Contents: All Policy letters issued by RITES Head Quarters including correspondence on all Establishment matters.

A (3) POLICY FILE ON ACCOUNTS MATTERS

a) File Name : Policy Letters and Correspondence on Accounts Matters

b) File Number: RITES/PO/Hd.Qtrs. of PO/POLICY/ACCTS/VOL. No.

c) Contents: All Policy letters issued by RITES Head Quarters including Correspondence on all Accounts matters.

A (4) BUSINESS DEVELOPMENT FILE ON PROJECTS FOR WHICH NO OFFER IS PROPOSED TO BE MADE

a) File Name: “No- Offer” Projects

b) File Number: RITES / PO/Hd.Qtrs. of PO/ BD/ No Offer / Financial Year

(Note: One file to be opened for each Financial year)

c) Contents: Newspaper or other advertisements, Tender / Details collected and correspondence / Notings on the decision not to quote for the Tender.

3.2 GROUP (B)-DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY TECHNICAL WING FOR EACH PROJECT FOR WHICH OFFER IS PROPOSED TO BE MADE

NOTES

i) The Project Coordinator will be responsible for opening of the files (Items 1, 2, 5, 7, 8, 10, 11, & 12) including giving File numbers.

ii) The Project Coordinator will also be responsible for making out three copies of documents (Items 3, 4, 6 & 9) in Bound Book form and arrange

to supply one copy each to the Accounts Section in SBU Office and to the Site office. He will also be responsible to make out two copies of Input Estimate (Item 3) and arrange to supply one copy to the Accounts Section in SBU Office.

iii) The Project Coordinator will keep custody of all documents (Items 1 to 12) as well as all the Documents received from the Controlling Site Engineer till Refund of the Security Deposit to the Works Contractor or Finalisation of Arbitration / Court Case, if any, whichever is later. The Project Coordinator will then hand over all the Records to the official in charge of the Central Registry duly indexed and under clear signature, after marking in bold letters on top cover of each Document the Expiry Date (Date upto which the document is to be preserved as per the provisions in Annexure 19.5 of these Guidelines).

B (1) BUSINESS DEVELOPMENT FILE

a) File Name: B.D. Correspondence on _____ (Name of the Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in Brief / Name of

Project in brief / BD/Financial Year of Offer

c) Contents: i) Notification on Project (NIT)

ii) Tender Document

iii) Papers relating to preparation of Technical & Financial Bids

iv) Correspondence with the Client on Clarifications

v) Minutes of Pre-Bid Meeting

vi) Technical Bid as submitted (complete)

vii) Financial Bid as submitted (complete)

viii) Results of Negotiation, if any

ix) Letter of Acceptance / Letter of Rejection of Bid by the Client.

B (2) INPUT ESTIMATE

(Note: Input Estimate as finally sanctioned should be maintained in a bound Book form in two copies with one copy retained with Project Coordinator and one with Accounts Section)

a) File Name: Correspondence on Input Estimate on ________________ (Name of the

Project) – Consultancy Agreement No. ________ dt.________

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in Brief / Name of

Project in brief / INPUT ESTIMATE

c) Contents: All correspondence relating to Input Estimate till sanction by the Competent Authority along with a copy of Input Estimate as sanctioned.

B (3) CONSULTANCY AGREEMENT BETWEEN RITES AND THE CLIENT

(Note: To be maintained in a bound Book form in three copies, one with Project Coordinator, one with Accounts Section in SBU Office and one in Site Office. The Contract Agreement duly signed by both parties should be complete with all enclosures).

Details to be inscribed on top cover of the Bound Book

CONTRACT AGREEMENT FOR PROJECT CONSULTANCY

i) Contract Agreement No. & Date

ii) Name of the Client

iii) Name of the Project

iv) Brief details of scope of Consultancy

v) Period of Consultancy (From ________ to __________)

vi) Consultancy Value

B (4) SUB CONSULTANCY AGREEMENT BETWEEN RITES AND THE SUB-CONSULTANT

(Note: To be maintained in a Bound Book form in three copies, one with Project Coordinator, one with Accounts Section in SBU Office and one in Site Office. The Contract Agreement duly signed by both parties should be complete with all enclosures).

Details to be inscribed on Top Cover of the Bound Book

CONTRACT AGREEMENT FOR SUB CONSULTANCY

i) Contract Agreement No. & Date

ii) Name of the Sub Consultant

iii) Name of the Project

iv) Brief details of scope of Sub Consultancy

v) Period of Sub Consultancy (From ________ to __________)

vi) Sub Consultancy Value

B (5) CORRESPONDENCE FILE ON ESTIMATE

a) File Name: Estimate for ______ (Name of the Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in brief / Name of

Project in brief/ ESTIMATE

c) Contents: i) Abstract Estimate with details of calculation on rates

and quantities of items

ii) Correspondence with the Client and his acceptance of

Abstract Estimate

iii) Detailed Estimate with supporting calculations and data

relied upon

iv) Correspondence with Client and his acceptance of Detailed Estimate

v) Technical Sanction of Detailed Estimates by Competent

Authority of RITES.

B (6) DETAILED ESTIMATE FOR WORKS

(Note: To be maintained in a Bound Book form in three copies, one with Project Coordinator, one with Accounts Section in SBU Office and one in Site Office. The Estimate copy should include the Letter of Acceptance of the Client and the Technical Sanction by the Competent Authority of RITES).


DETAILED ESTIMATE

i) Name of the work

ii) Brief Details of items covered

iii) Client Acceptance Ref. No. & date

iv) Sanction Ref. No. & date

v) Estimate Amount

B (7) DRAWINGS – CORRESPONDENCE FILE

a) File Name: Drawings for ______ (Name of the Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in brief / Name of Project in brief/ DRAWINGS

c) Contents: Correspondence with the Site Office / Sub Consultant / Client on Drawings

B (8) CORRESPONDENCE BETWEEN RITES AND THE SUB-CONSULTANT

a) File Name: Sub Consultancy for __________ (Item of work) for ____________ (Name of the Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Project in brief / Item of work in brief/ SUB CONSULTANCY

(Note: Under Column “Item of Work in brief” indicate Design / Survey / Geo-tech

etc.)

c) Contents: i) Notification (NIT)

ii) Tender Document

iii) Technical & Financial Bids received

iv) Correspondence on Clarifications from Bidders

v) Evaluation of Bids

vi) Negotiation papers

vii) Letters of Rejection to unsuccessful Bidders

viii) Letter of Acceptance to successful Bidder and further correspondence on technical matters till execution

of Contract Agreement for Sub consultancy.

ix) Correspondence during execution of works.

B (9) WORKS CONTRACT AGREEMENT BETWEEN RITES AND THE CONTRACTOR

(Note: To be maintained in a Bound Book for in three copies, one copy with Project Coordinator, one with Accounts Section in SBU Office and one in Site Office. The Contract Agreement duly signed by both the parties should be complete with all enclosures.)


CONTRACT AGREEMENT FOR WORKS

i) Contract Agreement No. and Date

ii) Name of the Contractor

iii) Name of the Work

iv) Brief details of Scope of Work

v) Period of Contract ( From ______ To _______)

vi) Contract Value

B (10) CORRESPONDANCE BETWEEN RITES AND THE CONTRACTOR / SITE OFFICES

a) File Name: Works Contract for ______ (Name of the Work)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Contractor in brief / Name of Work in brief/ WORKS CONTRACT

c) Contents i) Notification (NIT)

ii) Tender Documents

iii) Pre-Bid Meeting Minutes

iv) Correction Slips to Tender Documents

v) Technical & Financial Bids received

vi) Evaluation of Bids

vii) Negotiation Papers

viii) Letters of Rejection to unsuccessful Bidders

ix) Letter of Acceptance to the successful Bidder and further correspondence with contractor till

execution of Works Contract Agreement

x) Correspondence during execution of works.

xi) Correspondence with site office.

B (11) CONSULTANCY AGREEMENT – CORRESPONDENCE WITH THE CLIENT ON TECHNICAL MATTERS.

a) File Name: Correspondence with _______ (Name of the Client) on __________ (Name of Project) Consultancy Agt. No.________ Dated:

b) File Number: RITES/PO/Hd.Qr. of PO/ Name of Project in Brief / Name of Client in Brief / Vol.No.

c) Contents: Correspondence between SBU Office and the Client on the Consultancy Agreement on Tech.matters.

B (12) CORRESPONDENCE WITH RITES HEAD QUARTERS ON ALL MATTERS.

a) File Name: Correspondence with RITES / Name of Division / Gurgaon on ______(Name of Project)

b) File Number: RITES/PO/Hd.Qr. of PO / Name of Project in Brief / Name of Client in Brief / R.I. / B.A. / _______/Vol.No.

c) Contents: Correspondence between SBU Office and RITES Corporate Office on the Project on all Matters.

3.3 GROUP (C)- DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY ACCOUNTS WING FOR EACH PROJECT FOR WHICH CONSULTANCY AGREEMENT HAS BEEN SIGNED WITH THE CLIENT.

NOTES

i) The Accounts Wing Officer nominated by SBU Head will be responsible for opening of files (Items 1,2 & 3) including giving File numbers. He will also be responsible for collecting from the Project Coordinator, Bound copies of Consultancy Agreement between RITES and the Client, Input Estimate, Subconsultancy Agreements between RITES and the Sub Consultants, Detailed Estimate for Works and Works Contract Agreement between RITES and the Contractors.

ii) The Accounts Wings Officer nominated by SBU Head will keep custody of all Documents referred to in Para (i) above till finalisation of Accounts with the Works Contractors, Sub Consultants and the Client or Finalisation of Arbitration / Court case if any, whichever is later. The Accounts Wing Officer will then hand over all the Documents to the official in charge of the Central Registry duly indexed and under clear signature, after marking in bold letters on top cover of each Document the Expiry Date (Date upto which the document is to be preserved as per the provisions in Annexure 19.5 of these Guidelines).

C (1) CORRESPONDENCE WITH THE CLIENT ON FINANCIAL MATTERS

a) File Name: Correspondence with _________ (Name of Client) on ______(Name of Project) – Consultancy Agreement No.__________ Dated:_________

b) File Number: RITES/PO/Hd.Qr. of PO / Name of Project in brief / Name of Client in brief/ACCTS./Vol.No.

c) Contents: Correspondence between SBU Office and the Client on the Consultancy Agreement on Financial Matters.

C (2) CORRESPONDENCE WITH THE CONTRACTOR ON FINANCIAL MATTERS.

a) File Name: Correspondence with __________ (Name of Contractor) on ______(Name of Project) – Works Contract Agreement No. __________ Dated:

b) File Number: RITES/PO/Hd.Qr. of PO/ Name of Project in brief/ Name of Contractor in brief / ACCTS. / Vol.No.

c) Contents: Correspondence between SBU Office and the Contractor on Financial Matters.

C (3) CORRESPONDENCE WITH THE SUBCONSULTANT ON FINANCIAL MATTERS.

a) File Name: Correspondence with __________ (Name of Sub- Consultant) on ______(Name of Project) – Consultancy Agreement No. ________Dated:___________

b) File Number: RITES/PO/Hd.Qr. of PO/ Name of Project in Brief / Name of Consultant in brief / ACCTS. / Vol.No.

c) Contents: Correspondence between SBU Office and the Subconsultant on the Subconsultancy Agreement on Financial Matters.

3.4 GROUP (D)-DOCUMENTS TO BE MAINTAINED BY THE SITE OFFICE FOR THE WORK FOR WHICH WORKS CONTRACT HAS BEEN EXECUTED

NOTES

i) The Controlling Site Engineer will be responsible for opening of Files (Items 1,2 & 3) including giving File numbers. He will also be responsible for collecting from the Project Coordinator Bound copies of Consultancy Agreement between RITES and the Client, Sub Consultancy Agreement between RITES and the Subconsultants, Detailed Estimate for Works and Works Contract Agreement between RITES and the Contractor.

ii) The Controlling Site Engineer will keep custody of all the Documents referred to in Para (i) above till expiry of the maintenance period of Works Contract. The Controlling Site Engineer will thereafter hand over all the Documents to the Project Coordinator, duly indexed and under clear signature.

D (1) CORRESPONDENCE WITH SBU OFFICE ON ALL MATTERS

a) File Name: Correspondence with __________ (Name of SBU Office) on ________ (Name of Work) – Works Contract No. __________ Dated: ___________

b) File Number: RITES/ S.O. / Station of Site Office in brief / Name of Work in

brief / Name of SBU Office / Vol.No.

c) Contents: Correspondence between Site Office and the SBU Office on the Works Contract on all matters.

D (2) CORRESPONDENCE WITH THE CONTRACTOR ON ALL MATTERS

a) File Name: Correspondence with __________ (Name of Contractor) on ______ (Name of Work) – Works Contract No._____________Dated:__________

b) File Number: RITES/ S.O. / Station of Site Office in brief / Name of Work in brief / Name of Contractor in brief/ Vol.No.

c) Contents: Correspondence between Site Office and the Contractor on the Works Contract on all matters.

D (3) CORRESPONDENCE WITH THE CLIENT ON ALL MATTERS

a) File Name: Correspondence with __________ (Name of Client) on ______(Name of Work) – Works Contract No. Dated:

b) File Number: RITES / S.O. / Station of Site Office in brief / Name of Work in brief / Name of Client / Vol.No.

c) Contents: Correspondence between Site Office and the Client on the Works Contract on all matters.

4.0 FINAL DISPOSAL OF PROJECT DOCUMENTS

(Note: Instructions below are applicable to all Documents covered by all Groups A, B, C & D)

i) The final disposal of Documents will be governed by the “Norms for disposal of old records” at Annexure 19.5 of these Guidelines.

ii) Policy files on Technical Matters, Establishment Matters and Accounts Matters (Refer Group A) should be retained as permanent records. Business Development Files on Projects for which no offer is proposed to be made (Refer Group A) are required to be maintained for each financial year and may be disposed off at the beginning of the second succeeding financial year.

iii) The official in charge of the Central Registry, when taking over custody of the Documents from the Project Coordinators / Accounts Wing Officers, as the case may be, will check that the top covers of the Documents have been marked in bold letters with the Expiry date (Date upto which the Document is to be preserved as per the provisions in Annexure 19.5 of these Guidelines)

iv) Every year in the month of April, SBU Head will organize a drive to have the documents under the custody of the official incharge of the Central Registry scrutinised carefully. The Time Expired Documents, as observed from the Top covers of the Documents should be disposed off after keeping a list of such documents with relevant details such as, File Number, File Name, Agreement no. & Date, Names of Parties to the Agreement, Purpose of Agreement, Details of Site Record etc.

v) Similarly Documents to be kept as Permanent Records should be preserved duly indexed.

UNIT RATE (Rs. )

AMOUNT (Rs. )

UNIT RATE

QUOTED (Rs. )

AMOUNT QUOTED

(Rs. )

UNIT RATE QUOTED AS % OF

ESTIMATE RATE OF

RITES

UNIT RATE QUOTED

(Rs. ) UNIT

AMOUNT QUOTED

(Rs. )

UNIT RATE QUOTED AS

% OF ESTIMATE RATE OF

RITES

Total --- --- --- --- ----' --- ------ ---- --- ---

--- ---- ---- ---

Note:

(i)

(ii)

(iii)

(iv)

(v)

(iv) NO. OF TENDERS EVALUATED

Note: If there is any unconditional Rebate its financial implication should be determined and shown below suitably.

TENDERER No.

Rating Tenderer based on Total Amount Quoted

QUANTITY RATE AS GIVEN IN SANCTIONED

ESTIMATE

TENDERER No.

Name:

Brief Details of BOQ item

UNIT

ANNEXURE 8.1 A(Refer Para 8.8.3)

COMPARATIVE STATEMENTITEM RATE TENDER

(i) TENDER NO: (ii) NAME OF WORK (iii) DATE OF OPENING OF TENDER

In the case of item Rate Tenders, only rated quoted against each item shall be considered. Any Tender containing percentage below/above Schedule Rate against the item shall be rejected. However, any unconditional rebate as a percentage of the total amount quoted is to be accepted. Discrepancies in rates and amount will be dealt with as under.

Conditions (if any) Quoted

BOQ Item No.

In the event that no rate has been quoted for any item (s) leaving space both in figure (s) or word (s) and the amount blank, it will be presumed that the Tenderer has included the cost of this / these items on other items and rate for such item (s) will be considered as zero.

Name:

For any conditional rebate, its financial implication should not be taken into consideration for evaluation of bid price, but the same should be shown separately suitably.

If for any item rate in figures and words and the amount have been given and the rates in figures and words don’t agree with each other, the rate which corresponds with the amount quoted by the Tenderer, shall unless otherwise proved, be taken as correct.

If the amount of an item is not worked out by the Tenderer or it does not correspond with the rates written either in figures or in words, then the rate quoted by the Tenderer in words shall be taken as correct.

Where the rates quoted by the Tenderer for any item in figures and words tally but the amount for that item is not worked out correctly, the rate quoted by the Tenderer, unless otherwise proved, should be taken as correct and the amount worked out accordingly.

Note:

ESTIMATED COST PUT TO TENDER AS PER

SANCTIONED ESTIMATE

TOTAL AMOUNT (Rs. )% ABOVE

/BELOW OF E.C. AS

QUOTED

AMOUNT (Rs. )

% ABOVE / BELOW OF

E.C. AS QUOTED

AMOUNT (Rs. )

A B

Scheduled items Non Scheduled items

---- ---------

-----

Note:

i)

ii)

iii)

iv)

TOTALRating of Tenderer based on Total Amount Quoted

If the total amount of the Tender is not worked out by the Tenderer or if worked out it does not correspond with the percentage written either in figures or in words, then the percentage quoted by the Tenderer in words shall be taken as correct.

Where the Percentage quoted by the Tenderer in figures and in words tally but the amount is not worked out correctly, the percentage quoted by the Tenderer, shall unless otherwise proved, be taken as correct and the amount worked out accordingly.

ANNEXURE 8.1 B(Refer Para 8.8.3)

COMPARATIVE STATEMENTPERCENTAGE RATE TENDER

For any conditional rebate, its financial implication should not be taken into consideration for evaluation of bid price, but the same should be shown separately suitably.

(iii) DATE OF OPENING OF TENDER

If there is any unconditional Rebate, its implications should be determined and shown below suitably.

In the case of Percentage Rate Tenders, only percentage quoted shall be considered. Any Tender containing item rate is to be rejected. Discrepancies in percentage quoted and amount quoted will be dealt with as under:-

If the Tenderer has worked out the Tender amount and if any discrepancy is found in the Percentages quoted in words and figures, the percentage which corresponds with the total amount worked out by the Tenderer shall, unless otherwise proved, be taken as correct.

Conditions (if any) Quoted

(I) TENDER NO. (ii) NAME OF WORK

(iv) NO. OF TENDERS EVALUATED

SCHEDULE BRIEF DETAILS OF SCHEDULE

TENDERER NO. TENDERER NO.

NAME NAME

Sl. No. of Item

Date of Receipt

Name of Field Unit to

which the bill pertains

Name of work

Name of Contractor

Amount of the Bill

Date of preparation of bill by the bill

preparing office

Date of completion of work if final bill

Date of last

payments, if a

running Acctt. Bill

Signature of

receiving clerk in

SBU office

Date on which

cheque is drawn

Date of Return of M.B. to

field Unit

Initial of Project

Coordinator Officer of

SBU

Remarks

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)

ANNEXURE - 22.1(Refer Para 22.1.3)

REGISTER OF PAYMENT OF BILLS TO CONTRACTORS

BILL BOOK OF ____________________ SBU FOR THE YEAR

NOTE:

REMARKS

(i) Ref. of sanction 4b

(ii) Others if any(1) (2) (3) (4a) (4b) (5a) (5b) (5c) (6a) (6b) (6c) (7)

TOTAL

QUANTITY EXECUTED AS PER MB (Rs. )

AMOUNT FOR QTY. EXECUTED (Rs. )

Upto date Upto Previous

Bill

Upto dateSince Previous

Bill

FORM 1 A - ACCOUNT OF WORK EXECUTED FOR WHICH DETAILS HAVE BEEN RECORDED IN THE MB

BOQ items should be recorded first and then Nonscheduled (NS) items which will include extra and substituted items. In the case of BOQ items the quantities shall be indicated separately as under:-

(i) that paid at BOQ Rate upto permitted Deviation Limit and (ii) that paid at 0.97 BOQ rate and at Special Rate approved by Competent Authority beyond permitted Deviation Limit. For NS items only special Rates will apply.

BOQ NS ITEM No.

Brief Description of Item

Unit RATE (Rs. )

Upto Previous

Bill

BOQ/ 0.98 BOQ/ 0.96 BOQ

Special Since Previsous

Bill

NOTE:

REMARKS

(i) Ref. of sanction 4b (ii) Others if any

(1) (2) (3) (4a) (4b) (5a) (5b) (5c) (6a) (6b) (6c) (7)

TOTAL

Upto Previous

Bill

BOQ NS ITEM No.

Brief Description of Item

Unit RATE (Rs. )

FORM 1 B - ACCOUNT OF WORK EXECUTED FOR WHICH ONLY APPROXIMATE LUMP QUANTITY RECORDED IN THE MB

If for any item, Detailed Measurements have been taken since last bill, the Quantity so measured and the amount for the same will get reflected in Form 1-A with corresponding Negative entries in this Form 1 -B.

QUANTITY (LUMP SUM) SHOWN IN MB (Rs. )

AMOUNT FOR QTY. SHOWN IN MB (Rs. )

BOQ/ 0.98 BOQ/ 0.96 BOQ

Special Since Previsous

Bill

Upto date Upto Previous

Bill

Since Previous

Bill

Upto date

Date of Receipt

Source of Receipt with details if any

Batch No. Date of Manufacture

Date of expiry

Qty. received

Progressive Total of Quantity received

Date of issue

Qty. issue for work

Items of work for which issued

Qty. Returned at the end of day's work

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

By ___ By ___

(16) (17) (18)

(Refer Para 20.14)

SPECIMEN FORMATDETAILS OF MANDATORY TESTS AND NON MANDATORY TESTS CARRIED OUT - SPECIMEN FORMAT FOR CEMENT

(13) (14) (15)

PROFORMA FOR PAINTS / CHEMICAL REGISTERNAME OF PAINT / CHEMICAL

ANNEXURE 20.14(Refer Para 20.15)

ANNEXURE 20.13

(12)

Particulars of Receipt & Issue

Net Qty. Issued Progressive Total of Quantity issued for works

Upto date Quantity in stock

Contrator's Initial Periodical Check Engineer's Initial

DATE OF TEST &

LABORATORY

WHERE TESTED

RESULTS SATISFACT

ORY OR NOT

RESULTS FILED IN

FILE NO./FOLIO

NO.

(i) Fineness Every 50 MT or Part

thereof

RAB - 1 RAB - 2 RAB - 3 FINAL

(ii) Soundness --do -- RAB - 1 RAB - 2 RAB - 3 FINAL

(iii) Setting Time (Initial & Final)

--do -- RAB - 1 RAB - 2 RAB - 3 FINAL

(iv) Compressive Strength


(v) Consistency of Standard Cement Paste


REMARKSTESTS CARRIED OUT Sl. No. ITEM TESTED

FREQUENCY LAID DOWN

BILL NO. QUANTITY USED IN WORKS DONE

DURING BILL

QUANTITY USED IN WORKS

UPTO DATE

No. OF TESTS TO BE DONE

AS PER FREQUENCY

FOR UPTO DATE QTY.

DETAILS OF TESTS: IN CASE OF MANDATORY TESTS - CHAPTER 3 OF CPWD SPECIFICATIONS / NON MANDTORY TEST

COMMODITY: CEMENT

Drawing No. and its

Revision

Title of Drawing

Date of Receipt

No. of Copies received

Issue Date No. of Copies issued to the Contractor

Receipt of Drawings Issue of Drawings Signature of RITES LTD.

Site Engineer

Signature of Contractor's

representative

Sl.No.


FORMAT FOR DRAWINGS RECORD

Status of Drawing (Advance/Good

for Construction)

Details of Drawing

SL. No. Nature of Hindrance

Item of works which could not be executed on account of

this Hindrance

Date of start of Hindrance

Date of removal of Hindrance

Overlapping period if any

Net Hindrance

in days

Weightage of this

Hindrance

Net effective days of

Hindrance

Signature of Site

Engineer

Signature of Contractor or

his represenative

Sign. of Inspecting

Officer (Controlling

Officer)

Remarks of Engineer-in-

Charge

(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13)


FORMAT FOR HINDRANCE REGISTER

Type of Cement ________

Source / Batch No. / Challan

No.

Test Certificates Reference

No. Bags received

Cumulative Quantity (No.

of Bags) received upto date

Issued (Bags)

Returned (Bags)

Net Consump-tion (Bags)

CumulativeQuantity (No. of Bags)

Consumed upto date

Contractor RITES

Quantity Received Quantity ConsumedDate Opening Balance (Bags)


PART "A"

Balance at the end of the day (No.of Bags)

Item of Work in which

consumed during the

day

Signature

FORMAT FOR CEMENT REGISTER

From To

Signature: : Signature Date: Date:Name: Name:

Remarks, if any on

reasons for the

Difference


PART "B"

Theoretical and Actual Consumption Statement

NOTE: Calculations on "Theoretical Cement Quantity required" have to be kept in record

Period Sl. No. Item of work

Quantity Executed

(cum)

Theoretical Cement Qty.

Required (No. of Bags)

Actual Cement Qty. Consumed

(No. of Bags)

Difference between the

theoretical and actual

consumption (No. of Bags)

Source / Challan No.

Test Certificates Reference

MT received

Cumulative Quantity (MT) received upto

date

Issued (MT)

Returned (MT)

Net Consump-tion (MT)

Cumulative Quantity

(MT) Consumed upto date

Contractor RITES


FORMAT FOR STEEL REINFORCEMENT REGISTER

PART "A"

Signature

Type of Steel and Diameter___ ________

Item of Work in which

consumed during the

day

Balance at the end of the day

(MT)

Quantity Received Quantity ConsumedDate Opening Balance

(MT)

From To

Signature: : Signature Date: Date:Name: Name:

Theoretical Quantity

Required as per Drawing

(MT)

Actual Quantity

Consumed (MT)

Difference between the

theoretical and actual

consumption (MT)

Remarks, if any on reasons for the Difference


PART "B"

Theoretical and Actual Consumption Statement

NOTE: Calculations on "Theoretical Quantity required" have to be kept in record

Period Sl. No. Item of work