Purchase Manual

CHAPTER I
INTRODUCTION
The Purchase Manual is a handbook developed with the objectives of outlining policies and procedures governing the following functions : Purchase of materials and supplies and award of construction/ service contracts. Disposal of obsolete, surplus, unserviceable and slowmoving materials and equipment as well as scrap.
All the purchase policies and procedures currently prevalent in our organisation, as also the guidelines issued by the Government from time to time, have been incorporated in the manual in a comprehensive and lucid manner. This Manual should be read in conjunction with the Limits of Authority Manual (LAM). The authorities as provided in LAM should be strictly exercised in carrying out purchase and disposal activities. The responsibility for interpreting the policies and the procedures, and also clarifications on matters about which specific mention is not available in this Manual, rests with the Systems & Procedures Division. Hence, requests for interpretation or clarification and suggestions for any revision that is desired to be incorporated in the Manual should be referred to this group in writing.
________________________________________________________________________________ Chapter I (Introduction) I. 1 Systems & Procedures Purchase Manual HPCL, Mumbai
CHAPTER - II
PURCHASE ORGANISATION
A. PURCHASING AUTHORITY
The Purchasing Authority for procurement/disposal includes : 1. Materials Dept. in a. Mumbai Refinery - Refinery Materials - Project Materials b. Visakh Refinery - Refinery Materials - Project Materials 2. Purchase departments in Marketing divisions viz. 3. 4. 5. HQO, HB - SBU wise Zonal Offices - Zones (Retail, Direct Sales) LPG Zones Terminals Regional Offices - ROs (Retail, Direct Sales) LPG ROs
Purchase department in Corporate office i.e. HQO, PH Central Engineering Cell (CEC), PH Such other projects/groups/ crash committees approved by CFD / Functional Director to perform the purchase activity.
Purchasing authorities are responsible for adherence to the Purchase Procedure, LAM and guidelines issued by Systems & Procedures, HQO from time to time.
_____________________________________________________________________________ Chapter II (Purchase Organisation) II:1 Systems & Procedures Purchase Manual HPCL, Mumbai REVISED CHAPTER: 23/09/2008
STRUCTURE OF PURCHASING AUTHORITIES FOR MARKETING/HQO SR. NO. 1. BUSINESS UNIT / ENTITY Lubes BU, HQO PURCHASING AUTHORITY COMMERCIAL AUTHORITY Head - Commercial Direct Sales (Lubes) S/G - F/G Head - Commercial (LPG) S/G - F/G Head - Commercial (Proj. & Pipe) S/G - F/G Head - Credit & Disb. (S/G - D) or Head - Corp. Accounts (S/G F/G) or Head - Oil Exchange/ PVA (S/G F/G) Head - Commercial (Retail) S/G - F/G Manager-Commercial, LPG S/G - D Accounts Officer LPG RO S/G - A/B/C
2.
3.
4.
Head Procurement (Lubes) S/G - E/F LPG BU, HQO Head - Equip. Plng. & Procurement (LPG) S/G - E/F Projects & Head - Procurement Pipelines, HQO (Proj. & Pipe) S/G - E/F Admn., Corporate Head - Admn. HQO S/G - F/G
5.
Retail HQO
Head - Upgradation S/G - E/F Head - Engg. & Purchase (LPG Zone) S/G - D Operations Officer (LPG Plant) S/G - A/B/C Head Purchase (Zone) S/G - E/F
6.
LPG Zone
7.
LPG Region
8.
9.
10. 11.
12. 13.
Sr. Manager/Manager Commercial , Retail S/G - E/D Retail, Direct Sales Retail E&P/Direct Sales Finance Officer-Region - Region Region/O&D S/G - D or A/B/C S/G - E/F or D or A/B/C Depot Executive- Depot Accounts Officer S/G - A/B/C S/G - A/B/C Terminal Executive - M&R and Head - Fin. (Terminal) Projects S/G - C OR D S/G - A/B/C Aviation BU Mgr./Sr. Mgr. Projects (S/G Sr./Ch. Manager Commercial D/E) (S/G E/F) Aviation Service Station Manager Accounts Officer S/G A/B/C Facility (ASF) S/G E/F
Zone -Retail
STRUCTURE OF PURCHASING AUTHORITIES FOR REFINERIES/CEC SR. BUSINESS UNIT / NO. ENTITY 1. Refinery 2. 3. 4. Mega Projects Ref. Projects PURCHASING AUTHORITY G M Materials DGM Project Purchase DGM Project Purchase COMMERCIAL AUTHORITY GM Finance DGM -. Proj Finance DGM Proj Finance
CEC Items (Central DGM Purchase &Materials GM - Finance Engg. Cell)
B.
PURCHASE COMMITTEES Administration of the purchase functions including disposal activities is carried out by individual authority or appropriate combination of hierarchical functionaries and committees : - Bids Committee - Contracts Committee - Executive Committee - Committee of Functional Directors - Disposal Committee (Refer Chap. VII Disposal Procedure) The various purchase committees/ individual purchase authorities by functions/SBUs have been identified in this chapter. 1. Constitution of various committees: a. Marketing/Corporate Committees - constitution of all Bids/Contracts/ Executive Committee vests with CFD. Refinery Committees - constitution of Committees vests with : y y y 2. Bids Committee Contracts Committee Executive Committee - ED Refinery - Director Refinery - CFD
b.
Committees decision to be taken by consensus. In case of difference of opinion, Chairman of the respective Committee is the final decisive authority.
3. -
Quorum for the meetings: Bids Committee at Marketing/HQO/Zone/Refineries and Contracts Committee at Marketing HQO/Zone/Refineries : The quorum for the meetings will consist of Chairman, Member Finance and Member Secretary & other members wherever applicable i.e. all members must be present. Special Projects : The quorum for the meetings will consist of Chairman, Member-Secretary, Member-Finance and one member. In case of Project items for Refineries, Ch.Mgr.-Major Projects must be present for Bids Committee meetings and DGM-Proj. must be present for Contracts Committee meetings. (No nominations are permitted) Employees who are being given acting or officiating assignments for the officers who are members of Committee (Bids/Contracts) are not construed as nominations & such officers will form part of the that Committee & discharge duties & responsibilities of the officer for whom they are acting/officiating. As and when any position is operated at a lower level than the designated salary grade, the authority constituting the committee may authorise such officer at a lower salary grade to discharge responsibilities / functions and exercise authorities as per LAM or may define such area in which such officer should exercise such authorities as per LAM. In case of prolonged absence of Member Finance: Bids Committee: HQO Bids - Director Finance shall appoint a Member Finance on meeting to meeting basis not lower than the S/G of the regular member finance. Zonal Bids - DGM-Finance shall appoint a Member Finance on meeting to meeting basis but of a salary grade not lower than S/G D.
4.
5.
6. a.
b.
Refinery Bids - In the absence of any member (incl. Finance Member) alternate member to be appointed by the authority constituting the committee. Contracts Committee: Director-Finance shall appoint a Member Finance on meeting to meeting basis but of a salary grade not lower than the salary grade of the regular Member Finance. Purchase Committees formed for specific projects or departments shall be defunct and inoperative after the completion/JV formation of the projects e.g VVPL, PRP, etc. or if they are replaced by a different committee in case of a re-organization. Purchase Committee Heads (Chairman/Tender approving authority) may appoint Negotiating Team (comprising of at least 3 members) headed by grades not below 2 levels of the approving authority. Composition of such Negotiating Team has been outlined in Chapter IV of this Manual.
c.
7.
8.
COMPOSITION - BIDS COMMITTEE I

Sr 1.
2.
3.
4.
Marketing HQO Bids Committee: Business Chairman Member Finance Unit Head Commercial Direct Sales Head-Product (S/G- E/F) Supply (Lubes) (S/G-G/H) Head LPG BU Head-Operations Facilities Commercial (excl. LPG & Planning (LPG) (LPG) Projects) (S/G F/G) (S/G G) Head LPG Projects Head LPG Commercial Projects (LPG) (S/G F/G) (S/G F/G) Head Comm. E&P Head E&P (Proj. & Pipe) (S/G F/G) (S/G H)
Pipelines
5.
7.
Head Procurement (Proj & Pipe) (S/G E/F) Head 9. Retail BU Upgradation (Retail) (S/G D/E) Head 10. Other Procurement Common (P&)(S/GE/F) Items 11. Aviation BU Head - Aviation Ch./Sr. Manager Mgr./Sr. Manager (S/G - G/H) Comm. (S/G -E/F) Projects (S/G- D/E) 12. R&D Centre, DGM - R&D/ GM Manager - Finance Manager - M&R Vashi (QC & R&D) (S/G - D) (S/G - D) (S/G-G/H) Routing of Agenda items & minutes: Head Audit (S/G H OR I) at HQO, PH. 8. Head Commercial (Proj. & Pipe) (S/G F/G) Head Retail Head Commercial Mktg. (Retail)(S/G (S/G G OR H) F/G) Head E&P Head Comm. (S/G H) P&P (S/G F/G)
GGSRL Projects (Evacuation) Pune Sholapur Pipeline (PSPL) SOD (incl Head SOD tank (S/G H) wagons)
Member Secretary Head Vendor Dev. & Procurement (Lubes) (S/G E/F) Head Equip Plg & Procurement (LPG) (S/G E/F) Head Equip Plg & Procurement (LPG) (S/G E/F) Head Procurement (Proj. & Pipe) (S/G E/F) Head Pipelines Head Comm. Head Procurement (Proj (S/G H) (Proj. & Pipe) & Pipe) (S/G F/G) (S/G E/F) DGM - GGSRL Ch./Sr. Mgr. Fin. Ch./Sr. Mgr. Procurement Proj. (Evacuation) Sr. Manager DGM - PSPL Sr.Manager Purchase PSPL (S/G - G) Finance PSPL (S/G- E) (S/G - E)
Member Others -----
-----
-----
-----
-----
Ch. Mgr. Project Or Ch./Sr. Mgr. Terminal -----
-----
-----
-----
---------
_____________________________________________________________________________ Chapter II (Purchase Organisation) II:5 Systems & Procedures Purchase Manual HPCL, Mumbai
REVISION: PUR-033/ 25-26.08.2008
II Corporate HQO Bids Committee : Sr. Business Chairman Member Finance Unit 1 Corporate Head Admn. Head Credit & Items (S/G F/G) Disbursements (excluding (D) OR Head E&P Corp. Accounts Project (F/G) OR Head items) Oil Exchange / PVA (S/G - F/G) Routing of Agenda items & Head Audit (S/G H or I) at HQO, PH. minutes: III. Refinery Bids Committee: Sr. Business Chairman Member Finance Unit 1. Refinery Head Ch./Sr. Mgr. Maintenance Finance (Not below S/G G)
Member Member Others Secretary Head Purchase ----and miscellaneous Services (Admn.) (S/G D)
Member Member Others Secretary Sr. Mgr. /Mgr. Ch. Materials Refinery Materials Mgr. Refinery MR Ch. Mgr. Procuremen & Contracts VR DGM/Ch. Materials Mgr. Project DGM/Ch. Materials Mgr. Project Ch./Sr. Mgr. Mechanical, CEC
2.
Mega Projects Ref. Projects
Head Project
3.
Head Project
DGM - Fin. Proj./ Sr. Mgr./Mgr. Ch. Mgr. Fin. Proj. Materials Proj. Ch./Sr. Mgr. Fin. Sr. Mgr./Mgr. Proj. Materials
4.
CEC Items DGM - DGM/Ch.Manage Sr. Mgr/Mgr. (Central Mechanical, CEC r - Finance Purchase, CEC Engg. Cell) Routing of Agenda items & minutes: Head - Audit Refinery (S/G E/F) Head Audit (S/G H/I) at HQO, PH for CEC items. IV Zonal Bids Committee : Sr. Business Chairman Member Finance Member Unit Secretary 1. Retail Head Retail Manager Finance Manager Purchase Engineering Upgradation Retail 2. LPG Zone Head LPG Zone Manager Commercial (LPG Zone)
Member Others -----
Head Engg. & ----Purchase (LPG Zone)
Routing of Financial Controller at HQO, PH (S/G `H) & Head Audit (S/G E/F) at Zones. Agenda items & minutes: _____________________________________________________________________________ Chapter II (Purchase Organisation) II:6 Systems & Procedures Purchase Manual HPCL, Mumbai REVISED CHAPTER: 23/09/2008
V Regional Bids Committee : (Retail only) Sr. Business Chairman Member Finance Member Member Others Unit Secretary 1. Regional Head Region Finance Head Engineering ----Bids (S/G-D/E/F) Functionary at at Region Committee Region Routing of Head Finance Zone & Head Audit at Zones. Agenda items & minutes: VI Special Projects Bids Committee : Sr. Business Chairman Member Finance Members Member Secretary Unit 1. Mega DGM-Mega DGM/Ch Finance Any 3 officers in Sr. Mgr/Mgr. Project Manager Mega Project Purchase (Mega Project) Routing of - For Mega Projects : ED-Corporate Finance Agenda items & minutes: N.B.: Bids Committee as constituted for project items at respective Refineries or Marketing will approve purchase proposals for Mega/Pipeline Projects as the case may be.
COMPOSITION CONTRACTS COMMITTEE I Marketing HQO Contracts Committee : Sr Business Chairman Member Finance Unit 1. Direct Sales Head-DS Head (S/G - H / I) Commercial (S/G - F/G)
2.
3.
4.
Head Sr./Ch. Manager - ----Commercial Retail Upgradation (S/G H or I) (Retail) (S/G E/F) (S/G F/G) Routing of Agenda Head Audit (S/G H or I) at HQO, PH. items & minutes: II Contracts Committee at Retail Zone: Sr. Business Chairman Member Finance Member Member Others Unit Secretary 1. Retail Zone Head Retail, Head Finance Head O&D Zone -----Zone Zone Routing of Agenda Head Audit (S/G H or I) at HQO, PH. items & minutes: III Corporate HQO Contracts Committee : Sr. Business Chairman Member Finance Member Unit Secretary
1. Head IT Corporate Items (excl. (S/G H/I) E&P Project items) Head Credit & Head Admn. Disb. (D) OR Head (S/G F/G) Corporate Accounts (F/G) OR Head Oil Exchange /PVA (S/G F/G)
LPG (incl Head LPG LPG SBU Projects) (S/G H/I) Projects & Head Proj. & Pipelines Pipelines SOD including (S/G I) tankwagons), Common Items Retail Head Retail SBU
Head Commercial (LPG) (S/G F/G) Head Head ----Commercial (Proj Procurement (Proj & Pipe) & Pipe) (S/G-F/G) (S/G E/F)
Member Member Others Secretary Head - Vendor ----Development & Procurement, (Lubes) (S/G -E/F) Head Equip Plg & ----Procurement (LPG)
Member Others
-----
Routing of Agenda Head Audit (S/G H or I) at HQO, PH. items & minutes: _____________________________________________________________________________ Chapter II (Purchase Organisation) II:8 Systems & Procedures Purchase Manual HPCL, Mumbai REVISED CHAPTER: 23/09/2008
IV Sr 1.
Refinery Contracts Committee : Business Unit Refinery Chairman ED Refinery Member Finance Member Secretary DGM Finance - Ch. Materials Mgr.MR Refinery MR GM Finance - GM Materials VR VR DGM Fin.Proj./ DGM/Ch.Materials Ch. Mgr. Fin. Mgr. Project DGM Finance DGM/Ch.Materials Mgr. DGM - Finance, DGM - Purchase & CEC Materials, CEC Member Others GM Operations MR GM Operations VR GM Projects
2.
Mega Projects
ED Refinery
3.
Ref. Projects 4. CEC (Central Engg Cell incl. Mega Projects) Routing of Agenda items & minutes:
ED Refinery Head - CEC S/G H/I
GM Projects/ Maint./Technical GM - CEC
Member Finance of Executive Committee & Head Audit (S/G - H or I) at HQO, PH Head Audit (S/G H/I) at HQO, PH for CEC items.
V Sr 1.
Marketing Project Contracts Committee : Business Unit Project Member Finance Member Member Others Secretary Head Proj. & Head Comm. Head Vendor ----Pipelines Proj. & Pipelines Dev. & S/G I S/G F/G Procurement (Proj. & Pipelines) S/G E/F at GM - Marketing DGM - Finance Ch. Manager ----Projects (South Zone) Projects, Ennore S/G - H S/G - G Terminal (S/G F) Chairman
2.
Project Chennai
_____________________________________________________________________________ Chapter II (Purchase Organisation) II:9 Systems & Procedures Purchase Manual HPCL, Mumbai
REVISION: PUR-033/ 25-26.08.2008
COMPOSITION EXECUTIVE COMMITTEE MARKETING REFINERY REFINERY MEGA PROJECTS Director-Ref. CORPORATE
CHAIRMAN
Director-Mktg.
Director-Ref.
Senior of Director-F/ Director-HR ED IS ED CF GM HR GM IR Co. Secretary
MEMBER
MEMBER FINANCE
ED - Retail ED Refineries, Director-Finance ED - LPG Corporate ED Refineries, ED - Projects ED MR Corporate & Pipelines ED VR ED MR ED - DS ED CEC ED VR GM- Mktg. ED CEC Projects (for related Mktg. Projects) To be nominated by Director Finance in S/G H/I. GM/DGM Materials & Purchase MR / VR / CEC DGM Project Purchase/ Materials MR / VR /CEC
DGM / Ch. Manager MEMBER SECRETARY Purchase
DGM Administration
To be nominated by concerned Functional Director. - A minimum quorum of 4 members comprising of Chairman of the Committee/Finance Representative/Member Secretary and the concerned Member should be present - In the absence of specific member, the concerned Functional Director shall nominate alternate member on meeting to meeting basis. Concerned GM / DGM UNANIMOUSLY Circulation only in emergency with prior concurrence of Funct. Director. Head Audit (S/G 'H/I') at HQO, PH Concerned GM / Concerned GM / DGM DGM Concerned GM / DGM
NOTE
INVITEE(s) EC APPROVAL EC PROPOSAL ROUTING OF AGENDA ITEMS & MINUTES
C.
BASIC RESPONSIBILITIES OF PURCHASING AUTHORITY 1. Procurement of materials, supplies and services of the right quality/ specifications at the appropriate time and at the most economic price, consistent with sound purchasing practices. Disposal of surplus, obsolete, unserviceable and equipment as well as scrap. slow-moving materials and
2.
Purchase/disposal function, however, should be carried out within the framework specified for each Purchasing Authority.
D.
FUNCTIONS OF PURCHASING AUTHORITY 1. Select potential vendors who have the capability, capacity and facilities, convenient geographical location, financial standing, reputation, business ethics, trade experience and dependability to supply quality and diverse materials and services within schedule. Maintain and update Approved Vendor's List, after deleting incompetent vendors. For this purpose maintain cordial relationship with vendors, review and evaluate their performance regularly. Also exchange information with other oil companies, Public Sector Enterprises, D.G.S.&D etc. Keep abreast of market trends, scientific and technological developments and be on the look-out for new/improved materials, equipment and process supplies that will meet our needs. Attempt at locating more suppliers for each commodity, with the objective of substituting imported materials by indigenous ones. Evaluate products and services to develop and disseminate ideas and suggestions relating to cost reduction and import substitution. Encourage small-scale/ancillary industries and self-entrepreneurs.
2.
3.
4.
5. 6.
Keep abreast of the Government's/BPE's policies and notifications affecting the purchasing functions and be guided accordingly. Maintain contact with Government authorities, industry members and other Public Sector Enterprises with a view to safeguarding Corporation's interest in respect of purchasing functions. Arrange for import of materials and equipment, where essential. (Responsibility for this activity is centralised with the Materials Department, Mumbai Refinery for Marketing, Corporate and Mumbai Refinery and with Materials Dept. Visakh Refinery for Visakh Refinery. CEC at HQO is authorised to import materials and equipment.)
7.
9. 10.
Administer warehouse in the refineries and ensure proper inventory controls. Co-ordinate in the utilisation elsewhere of materials and equipment identified as surplus and arrange for disposal of the balance, as also obsolete, unserviceable and scrap. (as per Disposal procedure Chapter VII of Purchase Manual) Institute proper controls to ensure that the purchasing activities are carried out in conformity with established policies and procedures, and in line with the Limits of Authority Manual. Insert the liquidated damages clause in the terms and conditions of tender in all applicable cases unless otherwise specified by the user in the Purchase Requisition. (In this context, please refer subsequent clauses of Chap IV - A.13 and B.12 of Purchase Manual) Encourage/promote processes. e-procurements, e-auction, reverse auction & e-payment
11.
12.
13
E.
EXCEPTIONS TO PURCHASING AUTHORITY'S FUNCTIONS The following types of purchases are kept outside the purview of the Purchasing Authority's functions to allow the user department/offices/units the flexibility of making small value purchases to meet spot needs without referring to the Purchasing Authority. However, in such cases, it is essential to adhere to the normal purchasing norms and principles. 1. Low Value Purchases/Cash Purchases / Spot Purchases can be made directly by the user with the exception of : a. b. c. Office equipment/machine/furniture Warehouse material HQO/ERP stationery which is centrally procured
Requirements of materials/services of a repetitive nature should be covered by a Purchase Requisition on a consolidated basis for a minimum of three month's requirements, to enable placement of a standing Purchase Order. 2. Purchases within limits as specified in the LAM : Chapter VI - Purchase/Disposal & Mega Projects Miscellaneous Purchases can be made : a. b. without Purchase Requisition or Purchase Order as the case may be Purchases with Purchase Requisition but without Purchase Order
The detailed procedure has been spelt out in Chapter IV Purchase Procedures _____________________________________________________________________________ Chapter II (Purchase Organisation) II:12 Systems & Procedures Purchase Manual HPCL, Mumbai REVISED CHAPTER: 23/09/2008
3.
Purchases of undermentioned materials/services may be handled by the user department without Purchase Requisition/Purchase Order. (Shifted from Annex 1 of Chap. VI) Ships' repairs on owners' behalf, chartering vessels, all purchases of crude and petroleum products, purchases of products from other oil companies under purchase/sale arrangement. Hotel/travel arrangements including hire of cars on casual basis. Lease/rental commitments for immovable properties. Daily cash purchases for Dining Room/Canteen provisions and stores for HQO/Zonal/Regional Offices/Terminals/Refinery except when it is desirable to place Standing Purchase Orders. Railway freight, demurrage, air freight and such other statutory levies. Purchase of fuel and motor oils for automotive equipment. Professional services such as legal, Personnel matters, Auditors, Consultants, Advertising Agencies, etc. Utilities such as telephones, electricity, water, telecommunications. Purchase of Sports equipment. Purchase of Uniforms from units of National Textiles Corporation. Purchase of Air Tickets from IAC/Air India and Private Air Taxi operators on domestic flights. Service contracts for computer system, elevators, air-conditioning, office furniture and equipment, weigh bridges, etc. having proprietary considerations. Acquisition/disposal of immovable properties, securities and such investments. (However, the user shall initate action for acquisition/disposal of land only after obtaining specific approval from the authorities as per LAM.) Purchase for sales promotion/customer relations programs. Advertisements. Purchases for Guest Houses, Company Housing, Holiday Homes, Beach Houses, and Social and Recreational Activities controlled by Personnel Department other than those covered by Standing Purchase orders. Hire of Office/Welfare equipment. (Limits as per LAM) Services/charges of Port Trust/Customs authorities. Purchase of books, newpapers and periodicals. (Limits as per LAM) Purchases authorised to be made out of Petty Cash Imprest Funds, Special Cash Advances and Travel Expense Advances. Purchase of materials/services authorised by Fixed Charge Records. Purchase made on the specific authority of certain approved contracts. Purchases/services for maintenance and repairs of office buildings and company vehicles, upto a maximum of Rs.20,000/- as per Chapter VI Purchase/Disposal & Mega Projects of the LAM. Printing and publishing the Company's Annual Report. (For approval refer LAM, Section : Public Relations & Corporate Affairs.) Expenses relating to matters concerning convening Company meetings/conducting Share Dept. activities viz. printing of dividend warrants and notices, use of outside mailers etc., arising out of Board decisions. (For approval, refer LAM, Section: Company Secretary.)
4.
Purchases on Nomination basis: Purchase of certain preferred items as listed below may be procured on nomination/single tender basis by specifying the source of supply on the Purchase Requisition. Inclusion of any new items to this list of preferred items needs to be approved by the Contracts Committee on the recommendation of the User / Purchasing Authority. Further procurements made on single tender/nomination should be brought to the notice of the Board on quarterly basis. (Shifted from Annex 2 of Chap. VI) Air-conditioners and spares Refrigerators Forklift spares Tank truck chassis (generally Leyland or Tatas) at government controlled rates. Spares supplied by manufacturers of original equipment. Office equipment and their spares (for the sake of standardisation for ease of use by a number of employees and countrywide services capability of the supplier). Office furniture (for the sake of standardisation for optimum utilisation of office space and appearance). Certain engineering goods Standardisation for maintenance to cut overall recurring costs and spare parts inventory. Consistency with the available skill of the maintenance staff of the Corporation/gangs used for maintenance. Flexibility for alternative use in plant/installation. These items would cover a range of service station equipment, air compressors, electric motors, welding machines/rods, safety equipment, pumps, electrical fixtures, standardised stationery like forms used in the computer, canalised imports and supplies from statutory bodies. Purchasing Authority should seek enquiries from other sources where suppliers / services from the selected vendors are not available.
F.
EMERGENCY PURCHASES: In the interest of business/production operations, it may sometimes become necessary to make certain emergency purchases when the situation is critical , if not remedied immediately, would result in a heavy loss or suspension of operations. Such situations are termed as "Emergencies" in the sense that time is the critical factor and adherence to the standard purchasing procedure is not possible. Detailed procedure including the procedure for Payment of Bills has been specified in Chapter IV, Section-F. Limits of emergency purchases without P.O. have been specified in Chapter VI - Purchase/Disposal & Mega Projects of LAM. Materials/items which are of routine nature should be planned in advance and sufficient time given to purchase authority for procurement of the same. In these cases emergency purchases should not be resorted to.
CHAPTER III
PURCHASE POLICIES
1.
All purchases and commitments to purchase will be handled by the Purchasing Authority. In both corporate and legal sense, the Purchasing authority will be responsible for all commitments made to suppliers for equipment, materials, spares, supplies and services. No other department/person can make such commitments unless specifically authorised. Securing of price quotations for materials, equipment spares, supplies and services, will be the responsibility of the Purchasing Authority. Deviations from this policy would invariably undermine the position of the Purchasing Authority and could prove detrimental to the interests of the Corporation. The selection of sources of supply is the responsibility of the Purchasing Authority. If the user has a preference for a certain source, the Purchasing Authority should be apprised of it, giving reasons for the preference. When appropriate, and if considered advantageous and in the best interest of the Corporation, the Purchasing Authority may suggest alternative specifications for the requisitioned materials. Under international competitive bidding, task specifications shall be given instead of performance specifications such as brand names, catalog numbers and other specifications since such task specifications on internationally acceptable standard are more transparent. All tenders shall be opened in the presence of intending bidders irrespective of value or whether such tenders are limited, public, single tender or otherwise. This shall also apply to all contracts, tenders for supply and disposals. Purchase of items required purely for the personal use of an employee shall not be made. Purchase/services shall not be made/availed from employees and their dependants. Negotiations should be resorted to only in exceptional cases depending upon circumstances and market trend and subject to the direction of the approving authority prescribed in the LAM for appointment of the negotiation team. Two Bid system should be resorted to when strict technical standards are to be adhered to.
2.
3.
4.
# 5.
6.
7. 8.
9.
____________________________________________________________________________ Chapter III (Purchase Policies) III.1 Systems & Procedures Purchase Manual HPCL, Mumbai
10.
Single supplier will be considered in those cases where the material/services are of a specialized or critical nature. The Purchasing Authority should be convinced on this aspect before sending `single' tender enquiry. Public Tender will be resorted to in cases of all tenders having a value of Rs. 300 lakhs (high value) and above. Exemption from Public tender will be approved by the Contracts Committee. EMD should be insisted upon in case of all Public tenders. Lowest tender means the lowest of the technically acceptable tenders. The award of contract for purchases made for modvatable locations is subject to the bidder confirming to the satisfaction of HPCL through documentation, that the amount of modvatable Excise Duty/CVD quoted by him is a genuine pre-estimate of the amount of modvatable Excise Duty/CVD on the basis of indigenous/imported supplies included in their bid. The purchase order for modvatable locations should clearly mention the basic price and the MODVAT component separately so as to ensure that the total payment against the submission of modvatable documents does not exceed the amount of MODVAT so mentioned in the purchase order. e-procurement including reverse auction will be an acceptable method for procurement of materials, services and works contract. In case e procurement is resorted to, clauses mentioned in Chapter IV B, read in conjunction with other provisions of the purchase manual will apply.
# 11.
12. 13.
14.
15.
____________________________________________________________________________ Chapter III (Purchase Policies) III.2 Systems & Procedures Purchase Manual HPCL, Mumbai
CHAPTER IV PURCHASE PROCEDURES A. REQUISITIONING USER DEPARTMENT/UNIT A.1 Prepare form "Purchase Requisition" (LPR) for materials/services above the value of Rs.3000/Rs.5000/- as the case may be, usually three months in advance of the actual requirement. For Sales Officer and T&E Stn. I/c., LPR to be made for value of items above Rs.3000/-. For others at all offices, LPR to be made for value of items above Rs.5000/-. Where purchases of low value items below the above limits are repetitive in nature, Purchase Requisition should be prepared for such items to enable placement of Standing Purchase Order. A.2.a Prepare LPR in triplicate. Original and duplicate will be sent to Purchase Authority and the third copy of LPR will be retained by User Dept. The total estimated value will be given in the LPR. The detailed breakdown, wherever applicable, of estimated value (breakdown by individual items) will be sent in a sealed envelope alongwith the second copy of the LPR for consideration at the time of opening tenders.
A.2.b Estimate delivered cost of the materials/job. The estimates will not be based solely on previously awarded contracts, though they would certainly be one of the factors for arriving at fairly accurate estimates. It will be the responsibility of user Dept. or the consultant entrusted with this task to explain the basis to the approving authority of their estimates, if bids are received at abnormally higher or lower prices. In such cases, the Purchasing Authority shall obtain from the user/consultant and enclose with the recap the explanation by the user/consultant of the basis of their estimation. The appproving authority in such cases will review the explanation before approving the tender. In the case of major projects, the estimator shall also estimate the cost that a project might incur at different stages of its progress in the form of estimated percentage of cost for every one of the stages. The break up of Basic cost, taxes, duties, freight, packing, octroi, other elements of cost will be made available to purchasing authority, whenever required. For specific items/services, such as licensors/technology/consultancy where estimation is generally not possible, approval of Functional Director may be taken by user department for dispensation. A.3 Provide in the Purchase Requisition complete details of purchased/job to be carried out, such as : the materials to be
Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008
IV:1
Systems & Procedures HPCL, Mumbai
Description of materials/job Quantities Specifications (as per established standards, as applicable) Period covered Desired delivery schedules and completion date Adequate copies of drawings and sketches Number of suppliers/contractors desired. Details of materials / utilities / tools / other facilities, if any, which will be provided by the Corporation. Quantity and value of Corporation's materials which will be issued as free issues" material or otherwise to suppliers/contractors and kept in their custody or utilised in carrying out the job. Inventory on hand of raw materials, chemicals, packages etc.
A.4
Indicate, without fail, the account code to which the cost of materials/job is to be charged. Where the requisitions are for standing Purchase Orders for jobs to be carried out at various locations and Charge Code can be assigned only at the time of receipt of material/services, a notation can be put on Purchase Requisition that Charge Code will be shown on MRR. Purchase Requisition relating to Capital Budget items should indicate the Appropriation No., Approved Amount, Amount Committed, Balance Available, Value of Purchase Requisition and Balance Carried Forward against respective appropriations. Necessary approvals as specified in Section: V `CAPITAL PROJECTS' of LAM, be obtained in advance before LPR for project purchases is originated. Purchase Requisitions nominating the source of supply should normally be restricted to items listed in Chapter VI (Annexure-2 - List of preferred items, Page No. VI-3). In such cases, the "best price terms" should be insisted upon. Whenever nomination basis/single tender procedure is adopted in procurement, the matter should be placed before the Board for information through the Co. Secretarys Dept.
A.5
A.6
A.7
Provide adequate justification on the Purchase Requisition when nominating the source of supply for any particular item which is not covered in the approved list of preferred items. If the Purchasing Authority is not satisfied with the justification, the Purchase Requisition should be referred to the next higher authority. Inclusion of any item in the list of Preferred Items can be done with the approval of the Contracts Committee.
IV:2
A.8
Where the requirements are clear and capable of being assessed more or less accurately, requisitioning should be done for one lot, preferably to meet annual requirement, to take advantage of quantity price concessions while tendering. Splitting of quantity requirements should be discouraged unless there are strong reasons against tendering in one lot. In order to avoid the need for upward revision in the value of materials/ contracts after placement of order/award of contract, it is desirable to conduct adequate site investigations and prepare proper plans, designs and estimates of the jobs to be executed. Get the Purchase Requisition approved as per the limits prescribed in the LAM. For approval, total delivered cost shall be considered. After completing the Purchase Requisition in all respects, route the same to the employee designated for assigning / controlling the Purchase Requisition serial number. In case more than one supplier is required for whatever reason, it should be stated in LPR. (Refer clause B-11 of this chapter, on Page IV-33) If the liquidated damage clause is not to be inserted in the tender enquiry (refer Item 12 of Chapter II on page II.15), such exclusion should be justified on the LPR. In case of cancellation of LPR, User Department will inform Purchasing Authority accordingly. EMPLOYEE DESIGNATED WITHIN USER DEPT./OFFICE/LOCATION FOR ASSIGNING PURCHASE REQUISITION SERIAL NO. Maintain a Serial Number Control for the assigned Purchase Requisition Series. Assign 3-digit number serially from 001 to 999 irrespective of calender month/year. Prefix the number with the applicable prefix as per attached list in Chapter VI - Annexure 3. Enter the details in the Serial Number Control Register with the following format : ----------------------------------------------------------------------------------------------------- ----Date LPR No. Date of Originated Brief Description of LPR by Entry ---------------------------------------------------------------------------------------------------- ------
A.9
A.10
A.11
A.12
A.13
A.14
A.16
A.16.1 A.16.2
A.16.3
A.16.4
Route the original and duplicate of the Purchase Requisition to the concerned Purchasing Authority. The duplicate which specifies the value will be submitted in a sealed envelope and the same will be opened at the time of opening of tenders.
IV:3
A.17 A.17.1
PURCHASING AUTHORITY Maintain a serial number control by each series of Purchase Requisition in the Control Register in the following format: ------------------------------------------------------------ --------------------------------------------Purchase Requisition Purchase Date Brief Officer Number Date Received Description assigned Purchase order Supplier's Name No. & Date ----------------------------------------------------------------------------------------------------Follow up for missing requisitions. Tender due on
A.17.2
Ensure that the Purchase Requisition is complete in all respects and approved by the authority prescribed in LAM.
A.17.3 If the Purchase Requisition is incomplete or incorrect, return to the originator for correction/clarification/proper approval, etc. A.17.4 Where the materials are of a capital nature, ensure that Appropriation No. is given on the Purchase Requisition. In Refinery, the Warehouse in-charge should screen the requisitions for materials (including Project materials) against the surplus list to ensure that the requisitioned material is not appearing in the surplus list. Projects Dept. in Marketing shall carry out this activity before preparation of the Purchase Requisition.
A.17.5
A.17.6 Obtain price quotation for each item as per Bid Procedures, except in the following circumstances: a) If the requirement can be properly classified as "Emergency" due to circumstances which would not permit the delay in obtaining price quotations, in writing. (In such cases, quotations can be obtained over the phone or by personal contact or by fax with approved suppliers before the purchase is made.) For definition of emergency purchases, refer Section F of this chapter. If the materials are available from only one known supplier and such supplier is known to sell at only fixed/published rates, e.g. sole franchise dealers in equipment and parts. If written quotations for the materials required have been accepted during the previous six months and the concerned supplier confirms that the current requirement will be supplied at the same price or less than that.
b)
c)
IV:4
B.
BIDDING All purchases shall normally be made on the basis of competitive quotations obtained from vendors. In case of Limited Tender, purchases are to be made from suppliers / contractors who are on the Approved Vendors' List. The other types of Tenders can also be resorted to depending upon the nature and value of the requirement. Uniform standard terms and conditions should be used on tender documents. Changes in the terms and conditions must have finance/legal concurrence. Standard Terms & Conditions for works contract have been included in chapter VI, Annexure-7.
Procedure for engagement of Professional/Technical Services (including consultancy) excluding ex-employees of the Corporation as furnished in Chapter VI, Annexure-4 should be followed. A firm which is not a PSU or an associate or a joint venture of a PSU and which has been engaged to provide goods or works for a project and any of its affiliates will be disqualified from providing consultancy services for the same project. Conversely, a firm which is not a PSU or an associate or a joint venture of a PSU, hired to provide consultancy services for the preparation or implementation of a project, and any of its affiliates, will be disqualified from subsequently providing goods or works or services related to the initial assignment for the same project.
Consultants or any of their affiliates who are not PSUs or an associate or a joint venture of a PSU will not be hired for any assignment, which by its nature, may be in conflict with another assignment of the consultants. The above clauses, however, will not be applicable to a firm engaged in preparation of Detailed Feasibility Report (DFR) but will apply to an EPC (Engineering Procurement Contractor) or PMC (Project Management Consultant) If a contractor submits his bid, qualifies and does not get the contract because of his being not the lowest, he will be prohibited from working as a subcontractor for the contractor who is executing the contract . The bid document should clearly state a. that the bidder will submit a list giving full particulars of the goods supplied and used by him, including available sources, current prices of spare parts and special tool etc. which shall remain valid for a period of two years. that a clause-by-clause commentary on the owners Technical specifications, demonstrating the responsiveness of the goods and services to these specifications will be given by the bidder. and that exceptions will be given clearly and separately in a statement.
b.
c.
The bidding documents will clearly state that if the contractor fails to complete the work and the order is cancelled, the amount due to him on account of work executed by Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:5 Systems & Procedures HPCL, Mumbai
him, if payable, shall be paid to him, only after due recoveries as per the provisions of contract, and that too after alternative arrangements to complete the work has been made.
All tender enquiries shall incorporate a clause requiring the bidder to give a declaration that they have not been banned or delisted by any government or quasi Government agencies or PSUs. If a bidder has been banned by any Government or quasi Government agencies or PSU, this fact must be clearly stated and it may not necessarily be a cause for disqualifying him. If this declaration is not given , the bid will be rejected as non-responsive. While inviting bids, the pre-qualification criteria mentioned vide pt. no. B.1.2.a below must be clearly spelt out in the tender. [(Applicable to Refineries only) : The tender should include AMC rates wherever possible for 3 years. ED/ CGM-Refinery in absence of GM-I/c to approve in all other cases where tender does not include AMC clause for proprietary items. ]
B.1
APPROVED VENDORS' LIST Purchases shall normally be made by obtaining quotations from suppliers/ contractors who are on the Approved Vendors List.
B.1.1
Maintainence of approved Vendors' list shall be by the Purchasing Authorities listed in Chapter II (Annexures I & II) of the Purchase Manual. The Purchasing Authorities above should should assist the Field Offices (Zones, ROs, Terminals) in maintaining regional lists applicable to them.
B.1
Approved Vendor List Following are the guidelines to identify, select and enlist suitable vendors who are technically competent and financially sound, to supply materials and provide services at optimal cost within specified time as per desired quantity, quality and specifications. Purchases shall normally be made from vendors who are on Approved Vendors List.
B.1.1
Purchasing Authority listed in Chapter II, Annexure I & II of the Purchase Manual, shall maintain approved vendors list in coordination with Vendor Management committee (VMC). Composition of SBU wise Vendor Management Committee: (i) SBUs will have Vendor Management Committee, comprising of members from user, technical, inspection, materials, finance etc. as detailed in Clause (iii). Central Engg Cell (CEC) will not have separate VMC, instead, it will seek the assistance of VMC of MR and VR. Respective Contracts Committee shall nominate the member/s of VMC. These VMCs shall review/ approve registration/rejection of vendors basis the proposals put up by Vendor Management Officer. Decision of approval / non approval of registration of vendor will be communicated IV:6 Systems & Procedures HPCL, Mumbai
B.1.1.a
(ii) (iii)
to vendor through respective Vendor Management Officer (VMO). VMC will be at liberty to additionally co-opt members or seek view of locations/ other departments for specific requirements. (iv) List of VMCs : Sr. No. 1 2 3 4 5 6 7 8 Note: a. Chairman of VMC will be the Head Purchase of the concerned SBU. b. Minimum number of members in the VMC to be four inclusive of Chairman. Minimum quorum will consist of Purchase , Finance and atleast one member from technical stream /user department in the VMC. c. No. of members to be decided as per the requirement of the SBU by respective Contracts Committee. (v) There shall be one Vendor Management Officer (VMO) in Salary grade B or above, each at the respective VMC listed in clause (iv) above, exclusively handling/coordinating VMC activities. This officer will report to Head Purchase of respective SBU. Each VMO should be backed by another officer in case of his non availability, leave etc. VMO at Mumbai Refinery will handle all applications related to MR Refinery purchase, Projects Purchase and Central Engineering Cell. VMO at Visakh Refinery will handle all applications related to VR Refinery purchase and Projects Purchase. VMO at Corp. (Admn.) HQO-PH shall handle all applications related to Corporate such as applications of Information Systems, International Trade & Shipping etc. Role and responsibilities of Vendor Management Officer : a. To receive and acknowledge the application b. To verify whether application is complete in all respects duly signed, sealed. c. In case vendor wishes to register for SBU(s), other than selected Primary SBU, after completing the activity at primary location, forward his application to next desired SBU (secondary location) and have communication from the secondary location and forward it to vendor. Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:7 Systems & Procedures HPCL, Mumbai SBU / Location Retail HQO-HB LPG HQO-HB Direct Sales HQO-HB Projects & Pipelines-HB Corp. (Admn.) HQO-PH Mumbai Refinery Visakh Refinery Aviation HQO-HB Primary Location for Registration (As in Vendor Registration Form) Retail/Terminal/Depots LPG (Mktg.) Direct Sales (I&C Lubes) (Mktg.) Projects & Pipelines (Mktg.) Corporate Admin-PH Mumbai Refinery Visakh Refinery Aviation (Mktg.)
(vi)
d . To scrutinize applications and originate proposals for the consideration of VMC. e. To arrange for VMC meetings f. To monitor processing activity and ensure the processing is completed as per scheduled time frame. g. To communicate to vendors regarding any deficiency in documents, requirements of additional information, documents etc .Hold registration of vendor whose particular license is expiring. h. To communicate approval of registration. i. To communicate rejection to vendor with reasons. j. To correspond/reply to queries of the vendors. k. Reminder to vendor for providing information, documents whenever required. l. Maintain the file of applications with related documents. m. Update Approved Vendors List continuously, including performance of the vendors. n. Communicate promptly regarding blacklisting (banning totally), holiday listing (banning locally), lifting of holiday listing, etc. (blacklisting shall be done category wise. E.g. ECC can be black listed and not entire L &T) o. To update/approve the profile of the vendor viz; any change in address, increase/decrease in capacity, change in work location etc after due approvals from VMC wherever required. p. Facilitate development of new vendors in coordination with user department, other PSUs, consultants, GOI institutions etc. q. Supplement the vendor list from other PSEs., DGS&D, EIL etc, after approval from VMC. r. Ensure all existing vendors are listed in the Approved Vendors List through proper application procedure, within the time frame prescribed by respective Contracts Committee. s. Maintain unregistered / temporary vendor list to ensure procurement of materials / services which are not available from existing registered vendors, or when sufficient number of registered vendors are not available for any particular category. t. To transfer vendor from unregistered vendor list to Approved Vendors List through application procedure. u. Synchronization of Approved Vendors List with JDE Vendor Master. v. To submit Quarterly MIS to respective Contracts Committee for information. w. Maintain and update categories of vendor registration depending of new developments in the field/ new business requirements, after approval from VMC B.1.1.b Role and Responsibilities of Vendor Management Committee : i. The respective committee, upon receipt of application and initial scrutiny by Vendor management officer, shall verify the documents, scrutinise and complete the assessment of the vendor, approve / reject the application for registration. Creditworthiness, manufacturing capability, quality control system, past performance (for the goods/services in question), facilities Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:8 Systems & Procedures HPCL, Mumbai
available for aftersales service, financial standing, reputation, dependability etc. of the vendors should be carefully reviewed. ii. VMC can seek assistance from Location, Terminal, Regional Office, Zonal Office wherever required for verification of data, inspection/survey of plant, establishment, quality control, other related facilities of the vendor, etc. The respective Location, RO, shall attend to such activity promptly and submit their report, duly signed by Head of the Location / Terminal / RO. Wherever information, verification, inspection etc. is required at Zonal level, an officer in salary grade D and above nominated by Head Zone shall submit the report. iii. To ensure review of application for registration in stipulated time and approve/reject the same. Communicate the approval/rejection of vendor registration to vendor within 90 days from receipt of the application, wherever required documents, information have been received. In case of deficiency in documents, or requirement of additional information, documents etc, reasonable time to be given to vendor to submit the same. In any case, the application to be closed in six months from the date of receipt of application, with due communication to vendor in case of inadequate response etc. All communication to vendors will be through vendor management officer basis instructions from VMC. iv. Record cancellation of registration to CC. v. Consider and approve revision /addition to categories of vendor depending on new developments in the field/ new business requirements B.1.1.c Cancellation of Registration Authority of black listing of vendors shall be with the concerned EC. Refer clause B.1.5 for placing the vendors on holiday list. Registration can be cancelled by giving prior notice to vendor when : i Vendor fails to abide by the terms and conditions under which the registration has been given. ii Vendor makes any false declaration. iii Vendor supplies the goods of inferior quality or uninspected goods. iv Vendor render services (including aftersales service and maintenance service) of inferior quality than the contracted ones. v Vendor fails to execute a contract or fails to execute it satisfactorily or there are inordinate delays in execution of the contract beyond the contractual delivery period. vi The required technical/operational staff or equipment or facilities are no longer available with the vendor or there is change in its production/service line affecting its performance adversely. vii Vendor is declared bankrupt or insolvent viii Vendor fails to submit the required documents/information for review of the registration authority whenever it is sought. ix Vendor adopts unethical business practices. Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:9 Systems & Procedures HPCL, Mumbai
in the opinion of the VMC, there exists a reason (to be recorded) for cancelling a registration.
B.1.1.d
Online Vendor Registration Form : Online Vendor Registration Form is available on My HPCL Portal giving the detailed requirements as well as instructions to the vendors.
B.1.1.e
Administration of the Vendor Management System : i) All vendors will be required to register Online on a web based system. All inputs will also be required to be submitted online. A hard copy print out of the information entered online in predetermined format will be submitted by vendor to VMO along with necessary registration fee amounting Rs. 5,000/(nil for existing vendors). VMO will scrutinize the application, seek additional details if required and put up the proposal for the consideration of appropriate VMC basis system generated reports. VMC will approve /reject or seek clarifications which will again be managed by VMO. Decision taken in respect of approval of registration or rejection, shall be recorded and will be available in the vendor database. ii) Updation / revision of any information, vendor profile etc., shall also be done online and on a continuous basis. All the data entered shall be available in the system and can be retrieved with predetermined report formats or query based information. iii) Periodical system generated exception reports for location wise pending applications , new vendors approved , rejected and existing registration cancelled shall be forwarded to respective CC on quarterly basis.
B.1.2 SELECTION OF VENDORS Enlistment of Vendors should be done on a continuing basis and approved by the Purchasing Authority. Where technical evaluation is considered necessary, assistance of Technical personnel, wherever required, should be obtained for Vendor evaluation. Also, where necessary, User Department can furnish - technical specifications/ benchmark. The Contracts Committee will constitute a Selection Committee of three members consisting of Chief Materials Manager, an Officer from Finance and an Officer from the department other than above which will recommend inclusion of names in the vendor's list. The Selection Committee will follow the basic approach of having as many competitors as possible, without compromising on quality, on the basis of their financial status and performance. The Selection Committee shall give cogent reasons for laying down specific and unambiguous qualification requirements which are not open to interpretation later. The recommendations of the Selection Committee shall be approved by the Contracts Committee. For contracts exceeding Rs.5 crores, the Contracts Committee itself shall be the Selection Committee and shall lay down the qualification requirements. Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:10 Systems & Procedures HPCL, Mumbai
It is desirable to establish an independent inspection wing from Technical Groups for inspection of materials and facilities of a new supplier. To enlarge and update the Approved Vendors' List, public advertisement must be given once in three years stipulating on the registration form the qualifications of vendors to be enlisted. In addition to enrolling Vendors on current basis, while registering vendors/contractors, consideration should be given for the following attributes: 1) 2) 3) 4) 5) 6) 7) 8) Vendors' capabilities Turnover : The audited balance sheet and Profit & loss accounts of last 3 years of the vendors should be used as tools. Size and facilities available, Geographical location, Financial standing, Reputation, Trade experience Dependability etc. Etc.
If the criteria for qualification of party is only turnover of similar jobs in the past, the increase in turnover, after registration may be considered for qualifying the party for jobs to be allotted later. It should be ensured that maximum number of vendors should be enrolled by this process depending on their meeting these considerations. To the extent possible, preference should be given to manufacturers or their authorised dealers. For this purpose, advertisement for application should indicate that for goods/services that can be offered by manufacturers themselves or their authorised agents, the selection would be restricted to such Vendors. The Approved Vendors' List may be supplemented by the D.G.S.&D.'s Vendors' List. Even after the above steps, where the number of selected vendors is considered restrictive, the Purchasing Authority may obtain a list of suitable parties from other Public Sector Undertakings/Oil Companies. Wherever necessary or desirable, secure performance certificate from parties who had availed of the service of the vendor, before registration.
B.1.2.a PRE QUALIFICATION CRITERIA:
Public tender shall contain a pre-qualification criteria as per the following financial and technical parameters : 1. Financial: Annual Financial Turnover criteria, on annualised basis, shall be as follows : For Contracts:
IV:11
2.
More than Rs. 100 Cr. : 60% of the estimated cost Rs. 50 cr Rs. 100 cr. : 80% of the estimated cost Less than Rs. 50 cr. : 100% of the estimated cost Example : Tender cost = Rs.60 crores Time duration of the job = 18 months Annual financial turnover on annualised basis = 60/18*12*0.8 = Rs.32 crores Technical: Applicants shall have experience of having successfully completed similar work during last 7 years ending last day of month previous to the one in which applications are invited should be either of the following : a. Three similar completed works, each costing not less than the amount = 40% of the estimated cost or Two 2 similar completed works, each costing not less than the amount = 50% of the estimated cost or One similar completed work costing not less than the amount = 80% of the estimated cost
b.
c.
Definition of similar work should be clearly spelt out in the tender. Note :
y y
Both the above criteria to be met for qualification of applicants. Any deviation in Pre qualification Criteria for contracts upto Rs. 100 crores, to be duly approved by Contracts Committee. Any deviation in Pre qualification Criteria for contracts above Rs. 100 crores, to be duly approved by Executive Committee. Parties who are affiliates of one another can decide which Affiliate will make a bid. Only one affiliate may submit a bid. Two or more affiliates are not permitted to make separate bids directly or indirectly. If 2 or more affiliates submit a bid, then any one or all of them are liable for disqualification. However upto 3 affiliates may make a joint bid as a consortium, and in which case the conditions applicable to a consortium shall apply to them. Affiliate of a Party shall mean any company or legal entity which: (a) (b) controls either directly or indirectly a Party, or which is controlled directly or indirectly by a Party; or
3.
IV:12
(c)
is directly or indirectly controlled by a company, legal entity or partnership which directly or indirectly controls a Party. Control means actual control or ownership of at least a 50% voting or other controlling interest that gives the power to direct, or cause the direction of, the management and material business decisions of the controlled entity.
4.
Bids may be submitted by: a) b) a single person/ entity (called sole bidder); a newly formed incorporated joint venture (JV) which has not completed 3 financial years from the date of commencement of business; a consortium (including an unincorporated JV) having a maximum of 3 (three) members; an Indian arm of a foreign company.
c) d) 5.
Fulfilment of Eligibility criteria and certain additional conditions in respect of each of the above 4 types of bidders is stated below, respectively: a) The sole bidder (including an incorporated JV which has completed 3 financial years after date of commencement of business) shall fulfil each eligibility criteria. In case the bidder is a newly formed and incorporated joint venture and which has not completed three financial years from the date of commencement of business, then either the said JV shall fulfil each eligibility criteria or any one constituent member/ promoter of such a JV shall fulfil each eligibility criteria. If the bid is received with the proposal that one constituent member/ promoter fulfils each eligibility criteria, then this member/promoter shall be clearly identified and he/it shall assume all obligations under the contract and provide such comfort letter/guarantees as may be required by Owner. The guarantees shall cover inter alia the commitment of the member/ promoter to complete the entire work in all respects and in a timely fashion, being bound by all the obligations under the contract, an undertaking to provide all necessary technical and financial support to the JV to ensure completion of the contract when awarded, an undertaking not to withdraw from the JV till completion of the work, etc. In case the bidder(s) is/are a consortium (including an unincorporated JV), then the following conditions shall apply: 1) 2) Each member in a consortium may only be a legal entity and not an individual person; the Bid shall specifically identify and describe each member of the consortium;
b)
c)
IV:13
3)
the consortium member descriptions shall indicate what type of legal entity the member is and its jurisdiction of incorporation (or of establishment as a legal entity other than as a corporation) and provide evidence by a copy of the articles of incorporation (or equivalent documents); One participant member of the consortium shall be identified as the Prime member and contracting entity for the consortium; this prime member shall be solely responsible for all aspects of the Bid/Proposal including the execution of all tasks and performance of all consortium obligations; the prime member shall fulfil each eligibility criteria; a commitment shall be given from each of the consortium members in the form of a letter signed by a duly authorized officer clearly identifying the role of the member in the Bid and the members commitment to perform all relevant tasks and obligations in support of the Prime/lead member of the Consortium and a commitment not to withdraw from the consortium; No change shall be permitted in the number, nature or share holding pattern of the Consortium members after pre-qualification, without the prior written permission of the Owner. No change in project plans, timetables or pricing will be permitted as a consequence of any withdrawal or failure to perform by a consortium member; No consortium member shall hold less than 25% stake in a consortium; Entities which are affiliates of one another are allowed to bid either as a sole bidder or as a consortium only; Any person or entity can bid either singly or as a member of only one consortium.
4)
5)
6) 7)
8)
9)
10)
11)
12)
d)
In case the bidder is an Indian arm (subsidiary, authorized agent, branch office or affiliate) of a foreign bidder, then the foreign bidder shall have to fulfill each eligibility criteria. If such foreign company desires that the contract be entered into with the Indian arm, then a proper back to back continuing (parent company) guarantee shall be provided by the foreign company clearly stating that in case of any failure of any supply or performance of the equipment, machinery, material or plant or completion of the work in all respects and as per the warranties/ guarantees that may have been given, then the foreign company shall assume all obligations under the contract. Towards this purpose, it shall provide such comfort letter/guarantees as may be required by Owner. The guarantees shall cover IV:14 Systems & Procedures HPCL, Mumbai
inter alia the commitment of the foreign company to complete the entire work in all respects and in a timely fashion, being bound by all the obligations under the contract, an undertaking to provide all necessary technical and financial support to the Indian arm or to render the same themselves so as to ensure completion of the contract when awarded, an undertaking not to withdraw from the contract till completion of the work, etc. B.1.3 Updating Vendors' list : The list of vendors should be regularly and continuously developed and updated as per the procedure laid down in clause B.1.2. RM/TM should also advise updates of their approved vendors' list to Zonal Bids Committee annually. The Approved Vendors' List should be reviewed and updated periodically. Updated lists should be circulated among the Purchasing Authorities.
B.1.4 PERFORMANCE EVALUATION OF VENDORS It will be the responsibility of the user department/office/location to advise the Purchasing Authority of any failure on the part of a Vendor considered major by the User Dept. to meet the commitments/obligations in regard to time/ performance standard. The concerned Purchasing Authority should, in turn, advise the other purchasing authorities regarding such failure of the Vendor. B.1.5 SUSPENSION/DELETION OF VENDORS FROM THE VENDORS' LIST On receipt of an advice as mentioned in Clause B.1.4 above ( Performance Evaluation of Vendors), the Purchasing Authority should review the case and make a report to the Contracts Committee giving details of the poor performance/ alleged misdemeanour. If necessary, assistance of the Vigilance Department may be availed for investigation. If certain vendors on approved list do not respond to three tender enquiries sent on continuous basis, Purchase Authority shall advise the Contracts Committee. The Contracts Committee will decide the action to be taken as to whether the Vendor should be suspended or deleted from the Approved Vendors' List based on the partys explanation, if any. In case of suspension, the duration should be specified. Advice of suspension/ deletion should be sent to Head-Vigilance. Suspension/deletion of a vendor from the Approved Vendors' List should be circulated by the Contracts Committee to all Purchasing Authorities subordinate to that Contracts Committee and to other Contracts Committees. The other Contracts Committees on receipt of such a circular will review the same and after review take necessary action including circularising to Purchasing Authorities subordinate to that Contracts Committees. Advices received from Ministry from time to time blacklisting/banning vendors should be reviewed and action taken accordingly.
IV:15
B.2
TYPES OF TENDERS
B.2.a Limited Tender As per MOP&NG circular (No. C-25011/25/2003-Vig dated Dec. 13, 2004): Tenders of a value less than Rs. 300 lakhs shall be through a limited tender except : a b Where global tenders are considered necessary When the sources of supply are not known.
In cases of high value purchases (over Rs. 300 lakhs) limited tender may be resorted to after approval of the Contracts Committee in: a b a case of established urgency a case where sources of supply are definitely known and possibility of fresh sources being tapped is remote
All purchases shall normally be made on the basis of Limited Tender Enquiry i.e by obtaining quotations from suppliers/contractors who are on the Approved Vendors' List. As far as possible, all suppliers registered for a particular item should get the Tender Enquiry for that item. However, if the list is too long, the enquiry may be restricted to a minimum of six parties, unless the number of suppliers on the list for any particular item is less than six. In the case of tenders of estimated value of Rs. 5 lakhs and above, enquiry should be sent to a minimum of six parties and for tenders of less than Rs. 5 lakhs, a minimum of 3 parties. In case of items of special nature where specific expertise/credentials are required and if six vendors are not available, prior approval from the GM in-charge (of the User department) shall be sought by the Purchasing Authority for floating of enquiries to less than six vendors. Justification shall be provided on the LPR which shall be approved by the GM in-charge . While selecting the vendors from the approved list, as far as possible 50% of them should be existing tried suppliers and the balance those to whom tender enquiries had not been sent in the past. Proximity of supply source may be kept in view while inviting tenders. In any case, not less than three tenders should be invited. As far as possible, Purchase authority should ensure that vendors to whom tender enquiry is sent are registered for the supply of that material(s) for which quotation is called for. When the number of vendors listed for supply of a particular service is too large, enquiries will be handled as under : i. ii. class of stores/
Reference will be made only to manufacturers or their authorised distributors/ agents, by rotation, if necessary. By selecting six vendors from the list by rotation.
Tender enquiries shall be mailed on the same day to all the Vendors under "Certificate of Posting"/"Courier"/Fax. Hand delivery shall not be made, except by an authorised Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:16 Systems & Procedures HPCL, Mumbai
Officer of the Purchasing Group after obtaining an acknowledgement signed by the Vendor and countersigned by the Officer handing over the enquiry. B.2.b Single Tender "Single tender means tender floated to one party". For definition of single offer, refer Clause B.8.c (Note iv) on Page IV:30. Note : Single tender enquiry would generally arise in the case of : i. Proprietary/Preferred items Proprietary items are spares and component parts of a particular brand of existing machinery/equipment which need replacement and which can be obtained only from a single manufacturer/authorised agent, or special formulations available from a single source. Preferred items are those which are listed in Annexure-2 of Chapter VI. Make and other details of the preferred items will be available with the Purchasing Authority. ii. iii. When the Services are of a specialised or critical nature which can be rendered only by a single supplier. Where cost particulars cannot be obtained in advance of awarding the job, like repairs to/ overhauling of equipment. When the material to be purchased is of a proprietary brand and there is no other party manufacturing the same or of equivalent specifications, purchase of this item can be made on a single tender basis from the manufacturers or their authorised agents at standard rate. Purchasing authority should, however, ensure that the material is, in fact, of a proprietary nature and there are no alternative sources of supply. Purchase of preferred items/proprietary items (including spares.) will require approval on single tender basis as per LAM. B.2.c Public Tender Tenders should be invited by public advertisement in the press (leading newspaper by circulation) in the following circumstances : i. Any tender of a value either equal to or above Rs. 300 lakhs (high value) for all contracts (including cost of construction/erection) or supplies (Ref. MOP&NG circular No. C-25011/25/2003-Vig dated Dec. 13, 2004). ii. Where global tenders are considered necessary. iii. When the sources of supply are not known. Exceptions : Procurement of Additives by Lubes Dept., shall be exempted from the public tender process under the following conditions specified CFD 08/2008 of March 20, 2008: Lubes Dept. will explore & develop new vendors on continuous basis and update vendor list every 2 years. Tender enquiries are sent to only vendors approved by Technical Services.
Proprietary & non proprietary procurements of Additives should be recommended by Technical Services Dept.
The advertisement should clearly indicate the date for receipt of tenders and time of opening, apart from tender conditions. Postponement of date for receipt and opening of tenders should be notified in the same manner as the original advertisement inviting tenders.
IV:17
Clarifications, if and when called for, from vendors after submission of quotations, should be obtained in writing or discussions minuted and signed before any decision on the tender is taken by the approving authority. In the case of public tenders in addition to publishing Notice for Inviting Tenders (NIT) by public advertisement in the press as mentioned above it shall be necessary to publish such notice on the Corporations Web Site also. Wherever feasible the tender documents and other details may also be published on the Corporations Web Site. In the cases mentioned above, the tenderer shall have a choice of either obtaining the document from the office of the Corporation mentioned in the advertisement in the news papers or alternatively by down loading the relevant tender documents. The tender document shall clearly and separately specify any cost to be paid by the tenderer, who down loads the tender documents. Such cost shall be paid by such tenderer at the time of submission of his tender. The above clause will be applicable only in the case of public tenders and not to limited or single tenders. Where in the Notice Inviting Tender there is a clause that tender applications can be rejected without assigning any reason, the Commission has emphasized that this clause in the bid document does not mean that the tender accepting authority is free to take any decision in any arbitrary manner. The authority is bound to record clear, logical reasons for such action of rejection/recall of tenders on the file. Where an open tender consists of documents of classified/secret nature in the case of strategic installations like Refineries etc. the organisation may go in for prequalification of the bidders in the first stage of the tender. Once the bidders are prequalified the complete tender including the classified/secret documents which form part of the tender may be made available to them for submitting their technocommercial and priced bids. Such secret documents may include a process scheme or process flow diagram which require prior approval of the process licensor before they are provided to the individual bidder. Invitation of Pre-qualification applications /bids through public notices shall be treated as Public tender and provisions of LAM for Public tender shall be applicable. All public tenders shall prominently www.hindustanpetroleum.com B.2.d DGS&D Rate Contracts : Purchasing Authority will arrange to procure at the DGS&D rates wherever applicable.
In order to take advantage of DGS&D/State Government Rate Contracts, Tender enquiry to the vendors in case of limited tenders or single tender should include following clause. "The vendor is requested to advise whether he is registered with D.G.S. & D/State Government and if so whether he can extend same rate to HPCL". In case the vendor agrees to extend DGS&D/State Government Rate Contract, a copy of the extract of the Rate Contract showing the prices and other terms and conditions including validity of the same should be obtained from the vendor and kept on record. If the market price happens to be lower than DGS&D/State Government Rate Contract, the vendor should give an undertaking in writing that he will charge lower rate viz. the market rate.
mention
the
HPCL
website
URL
IV:18
B.2.e
Extension of Due Dates of the Tenders: Whenever the situation demands, the tender due date extension for single/limited/public tender to be granted sufficiently in advance. However, extension is to be granted not less than 2 days before the tender due date/extended due date, if any. The extension should be given by Chief/ Sr.Material/Purchase Manager HQO/Refineries and DGM - O&E at Zones and reasons recorded. at
The extended tender date should be promptly advised to all tenderers by fastest mode of communication like fax, e-mail, newspaper notices, letters etc. Late/delayed tenders: On no account should late/ delayed/post tender offers be accepted but should be returned to the vendors unopened with a forwarding letter. B.2.f Publishing information of tenders on website: Public Tenders: Summary of all tenders/contracts of the following threshold values shall be published on the HPCL website by the concerned Purchasing Authority as per the format indicated in Annexure 15 of Chapter VI. Category Mega Projects - Tendrs/Contracts Others - Civil Contracts - Other tenders/contracts B.2.g Display of Limited Tenders as per CVC guidelines. Category All B.3 PRICED AND UNPRICED TENDERS For inviting tenders requiring procedure should be adhered to: B.3.a strict technical standards, the following Threshold value Rs.20 lakhs Threshold value Rs. 500 lakhs Rs. 20 lakhs Rs. 50 lakhs
Where specifications are not clear, invite tenders for technical specifications after discussing with vendors and arriving at standard specifications. For this purpose, a meeting called "pre-tender meeting" may be convened to arrive at a consensus on the standard specifications which will be inscribed in the tender document. A pre-bid meeting may be held at the discretion of the Project Head for: all major/complex public tenders for limited tenders as and when required
IV:19
Date/Time/venue of the pre-bid meeting is to be specified in the tender notice or through subsequent separate communication to all the bidders. After the pre bid meeting: In case of public tender: Revision/Addendum/Corrigendum to be published in the press/same manner as was done while publishing the original NIT and also to be hosted on the website of HPCL/Consultant, wherever applicable. In case of limited tender: Revision/Addendum/Corrigendum will be sent to all parties to whom the tender is floated. Note: Pre-bid discussion shall be confined to techno-commercial discussions and site appraisals and there shall be no revision/discussion to Pre-qualification criteria.
B.3.b Where specifications are clear, invite tenders in two parts : i. ii. Technical and commercial tenders Priced tenders
The sealed envelopes should clearly indicate "Priced" or "Unpriced", as the case may be. On receipt of the above tenders, the "Unpriced" tenders should be opened first and sent to concerned user department for technical evaluation. While sending these tenders for
technical evaluation, Purchase Department will specify which the technical evaluation is to be completed.
the number of days
by
In case of deviation of technical/ commercial nature, which do not involve major changes in technical specifications given in the bid documents, all such deviations should be resolved with all such tenderers. Revision in priced bids : After Technical Queries/Commercial Queries (TQ/CQ), price implication may be sought, in case of minor changes in techno-commercial scope, terms and conditions. Equal opportunity is to be given by circulating all amendments to all the technically qualified/acceptable bidders. In the event of major changes after Technical Queries/Commercial Queries (TQ/CQ) discussion on account of bidder/owner, revised priced bids may be sought from all the technically qualified/acceptable bidders. Equal opportunity is to be given by circulating all amendments to all the technically qualified/acceptable bidders. Approval for seeking revised price bid shall be sought from GM with finance concurrence.
If required, a revised cost estimate from user should be obtained.
IV:20
Note: No change in technical and/or commercial qualifying criteria shall be done. Deviations sought by the bidders, whether they are commercial or technical deviations must be clearly disclosed and cross-referred in the tender. Failure/omission to provide such disclosure and cross reference in the tender will render the tender liable to be rejected. After establishing technical and commercial suitability of the offers, the corresponding "Priced" tenders should be opened and evaluated within reasonable time from the opening of technical/commercial bid. If three techno-commercial acceptable parties are available, evaluation shall be conducted by rejecting any and all the parties seeking deviations, after giving them one opportunity to withdraw the deviations. Their priced offers should be returned unopened under certificate of posting before placement of order. The bids with commercial deviation, if any, should not be rejected in general and should be suitably loaded for evaluation. However, in exceptional cases of commercial deviation or wherever the bids do not meet pre- qualification criteria on the financial parameters, the same can be rejected with finance concurrence by the User Dept. Head (not less than the level of Sr. Manager). In all other cases of rejection of bids it shall be certified by the User Department Head (not less than the level of Sr. Manager) and the same shall be accepted by Purchase Department for further action. Note: In a two bid tender situation, the period for finalisation of the tender includes technical as well as financial evaluation. While sending tender enquiries, purchase authority will ensure that rates mentioned in the quotation of the potential vendor remain valid till the issuance of purchase order. If it becomes necessary, a letter should be taken from the potential vendor for extension of the validity of rates quoted by him. In addition, the technical evaluation should be kept strictly confidential. (except in the case of public tenders where the same can be made available to the qualified bidders for a price as per clause B.8.a of this chapter.) It is suggested that the following clause be added in the notice inviting tender: Bid validity to be as follows: (Refer Annexure 7, Clause No. 3.10) Upto 90 days for Single/Limited tender. 120 days for National public / Global public / Global limited tender including wherever architect/PMC/consultants are involved. Validity for Product Transportation Contracts should be 6 months. B.4 OPENING/ESTABLISHING VALIDITY OF TENDERS Tenders should be accepted upto the specified date and time. Tenders of the following nature should not be considered: i) Late tenders - Tenders received after the specified time of opening. - Tenders received before the time of opening, but after the due date and time for receipt of tenders. IV:21 Systems & Procedures HPCL, Mumbai
ii)
Delayed tenders
iii) iv)
Post tenders Tenders received
- Tenders posted after the date of opening. - Exemption only under certain conditions as spelt out on by Fax/e-mail (Refer Page IV-15, item B.4.a)
Tenders shall be treated as confidential and shall not be revealed to competing tenderers. (For exceptions refer clause B.8.a of this chapter) This responsibility should be shared by all personnel concerned with purchase/disposal activity. Tenders should be opened by not less than two officers authorised as per LAM, one of whom should be a finance functionary, within two working days from the closing date. All efforts should be made to ensure that the concerned officers meet on the scheduled date and time. Under unforeseen circumstances, if tenders are not opened on the due date, it should be done on any other day authorised by the head of the Purchasing Group. In any case, it should be ensured that there is no undue delay in opening the tenders. While opening bids which are in the Consultant's scope and when consultancy organisation is in the Public Sector, such opening of the tenders shall be witnessed by the personnel from Consultant's organisation and should include the Finance Functionary. In the case of open/public/limited tenders, representatives of tenderers shall be allowed to witness the opening. In case Project Management Consultant (PMC) is a private party, tender opening shall be witnessed by HPCL Purchase and Finance functionaries. Prices, delivery and payment terms as well as special conditions quoted by the tenderers shall be read out to them. In order to speed up purchase decisions and also prevent occurrence of any impropriety that may arise as a result of receipt of tenders after the stipulated opening time, the following guidelines should be observed : B.4.a Late/delayed tenders should not be considered at all. The following clause should be included in the tender enquiry : "Tenders received after the stipulated date and time for receipt of the tenders, to any reasons, will not be considered". due
Quotations received by Fax and e-mail can also be used for placing orders in case of Emergency procurement (For definition, refer Section-F, Page No.IV.55) Proprietary items (For definition, refer Clause B.2.b on Page IV.11) Single Tender (For definition, refer Clause B.2.b on Page IV.11) on
(Party should not be requested to give quotations by Fax/e-mail. However, if their own initiative they send the same, it shall be used as above)
An exclusive fax machine inside a box under lock is required with Purchasing Authority to receive quotations by fax. The box needs to be opened in line with procedure for opening of tender. Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:22 Systems & Procedures HPCL, Mumbai
Similarly, quotation by e-mail can be accepted only if it is with adequate security and confidentiality measures. E-mail quotations need to be printed in line with procedure for opening of tender. However, vendor should clearly advise the mode of sending quotation well in advance for action by Purchasing Authority. B.4.b Public tenders must be opened immediately after the notified time upto which tenders were to be received. In other words, there should not be any delay between the time stipulated for receipt and opening of tenders. B.4.c All tenders whether public or limited should be opened by the authorised officers in the presence of the intending tenderers. (The above clause has been modified - refer IT:RKM:S&P dated Jan. 13, 2005 and MOP&NG (Vigilance Section) letter No. C-25011/25/2003-Vig. Dated Dec. 13, 2004) B.4.d When the tenders are under review, no unauthorised person should be allowed to make queries or call for reports as it leads to delays in taking decisions, apart from the impropriety involved. B.4.e In case of public tenders, following clause should be included in the advertisement released to the press : "Where parties are requesting tender documents by post, HPCL is not responsible for delay due to any reason including postal delays in receiving the party's request as well as receipt of these documents by the party." B.5 NEGOTIATIONS
B.5.a As regards Negotiations, the following guidelines are spelt out : Whenever tenders are invited, either open or limited, detailed specifications should be given in the tender enquiry so as to avoid further deliberations. As far as possible, the quotations should be quickly evaluated and orders placed on the basis of the lowest technically and commercially acceptable offer and negotiations avoided. Once this becomes a normal practice, we would be able to attract real competitive offers and also finalise the placement of orders quickly. If, on the other hand, vendors know that negotiations are invariably conducted, they may not initially offer their best price. Negotiations can be carried out with bidders only for reduction in price offered by them and not for clarifications or change in specifications, delivery terms etc. The scope of negotiations, if carried out must be intimated in advance to the bidder to ensure that there is no increase in price offered by the bidder consequent to negotiation . Central Vigilance Commission has given the following directive vide letter reference given herein below : Tenders are a major source of corruption. In order to avoid corruption, a more transparent and effective system must be introduced. As post-tender negotiations are the main source of corruption, post-tender negotiations are banned with immediate effect except in the Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:23 Systems & Procedures HPCL, Mumbai
case of negotiations with L1 (i.e. Lowest tenderer). (Reference : Directive from the Central Vigilance Commission vide letter No. 8(1)(h)/98(1) dated Nov. 18. 1998) circularised vide S&P circular No. Ref. IT:SB:S&P dated Dec. 03, 1998)
As per the Office Order No. 68/10/05 dated 25/10/2005 received from Central Vigilance Commission the Purchasing Authorities are required to :
record the reasons for justifying negotiations to adhere to the model time frame which should be within the validity period of tender/contract.
B.5.b Such negotiations with the lowest tenderer can be resorted to only in the following circumstances:
i)
Where the acceptable lowest offer is within +/-20% of the estimated cost, no negotiation will be carried out.
Where the acceptable lowest offer is more than 20% of the estimated cost, even after negotiation, project authority shall provide/obtain justification from User/Project Management Consultant (PMC) and place the proposal for consideration of the same approving authority as per LAM. Convincing reasons must be recorded by the authority recommending the negotiation.
ii)
When identical competitive offers are received and it is not possible to split the order on equal basis.
iii)
In the case of Post Tender Negotiations, as per the procedure laid down in S&P circular reference IT:S&P:PUR dated May 18, 1999 reproduced in Clause B.11 of this Chapter.
IV:24
B.5.c
Appointment of negotiating teams Negotiating teams should be appointed as given hereunder : COMPOSITION OF NEGOTIATING TEAM APPOINTING AUTHORITY
CHAIRMAN
MEMBER-FIN. Dy.Mgr.-Fin.
MEMBER-SECRETARY Dy.Mgr.-Purchase Mgr.Pur./ Dy. Mgr. Pur. Mgr.-Materials Sr.Mgr.-Materials Ch.Mat.Mgr. Ch.Mat.Mgr.
CMM/SMM-HQO/REF. Chairman-Zonal Bids Committee Chairman-HQO/Ref. Bids Committee Chairman-HQO/Ref. Contracts Committee Chaiman -Excecutive Committee Funct. Director Note:
Dy.Mgr./Mgr. Sr./Ch.Mgr. Sr./Ch.Mgr.
Dy.Mgr./Mgr.Fin. Sr.Mgr.Fin./ Mgr.Fin.
DGM/Ch.Mgr. Sr./Ch.Mgr.Fin. GM ED/GM DGM-Fin. DGM-Fin.
Concerned Funct. Director shall be the authority to appoint Negotiating Team for matters that require approval of the CFD as per the Limits of Authority Manual.
All tender approving authorities (other than Committees) against Limited/Public Tender can appoint a Negotiating Team consisting of 3 members viz. User/Member Finance/Member Secretary (Purchase) headed by grades not below two levels of the approving authority. B.5.d Procedure during negotiations As a result of the negotiations, if it becomes necessary to ask the tenderers for revised quotations, the tenderers who have been called for negotiations should be asked to submit their revised quotations in a sealed envelope by a specified date and time. If the tenderers called for negotiations do not give revised offer or do not attend negotiation meetings, then original quotation given by them will be considered for evaluation. Where validity period for offer has expired, confirmation for extension of validity period should be obtained before approval by the respective authorities. The Purchasing Authority should prepare a report with recommendations of the negotiating team which should be signed by all the members and placed before the tender approving authority, as per LAM, for consideration. B.6.a RATIONALISATION Wherever the lowest bidder has been selected for award of contract and a need is felt for amendment in any terms, including prices quoted by him, the awarding authority may use his discretion to authorise : Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:25 Systems & Procedures HPCL, Mumbai
- the Purchasing Authority - the Finance Representative - User/Quality Control Department to approach the selected vendor for such amendments. This is called Rationalisation. As this does not amount to negotiations, the need for appointment of Negotiating Team does not arise. Rationalisation need not be resorted to, if the LPR estimate is below Rs.1 lakh. Example of Rationalisation : In case of Works Contracts, if party, lowest on overall basis has quoted substantially higher rates for some items as compared to cost estimate in purchase requisition/rates quoted by other parties for those items, the selected party may be asked to match its rates with LPR estimates/rates quoted by other parties. B.6.b MATCHING THROUGH COUNTER OFFERS
If the lowest acceptable offer is more than 20% of the estimated cost as per purchase requisition, counter offers for matching with rates as per cost estimate may be made to the lowest tenderer.
This should be read in conjunction with Clause B.5.b - Negotiations. The decision on acceptance of counter offer shall be taken by the Purchasing Authority with Finance Concurrence. In case of selection of more than one supplier where rates differ, counter offers are required to be made of rates to other than lowest bidders. For detailed procedure refer to clause B.11 of this chapter. B.6.c BOUGHT OUT ITEMS In the case of bought out items which are distinct and not related to one another, the order may be split and placed on the party who is the lowest for an item even if he is not overall the lowest. However, the tender conditions must include the condition that for any item where the bidder is not the lowest, the Corporation reserves the right to place the order on any party who is the lowest for that item and to place the balance order on the bidder if he is found to be overall the lowest. Where the right to split the order is not included in the tender conditions, the lowest tenderer may be called to match the lowest quote of any other tenderers for any item. If the party does not agree to match the lowest rate of other tenderers for that item, approval will be obtained to place the order for that tender on other than lowest basis. B.7 PURCHASE PREFERENCE
B.7.a Public Enterprises Public Enterprise can be defined as a Unit where Central/State Government has a shareholding of 51% or above in the paid up share capital of the concerned unit. Hence, enterprises in joint sector are not treated as Public Enterprises.
IV:26
In view of new environment of liberalised industrial policy with an emphasis on performance improvement in Public Enterprises, no price preference is given to PSUs. Purchase preference should be given to Central Government Public Enterprises only. The following guidelines should be observed for purchases from Public Enterprises on a case-to-case basis : Purchase preference can be considered where the quoted price of Public Enterprise is within 10% of the lowest valid price, other things being equal. However, the concerned Public Enterprise should match the lowest valid price bid. Every effort should be made to bring competitiveness. down the price and achieve
(This refers to Ministry of Industry, Department of Public Enterprises Office Memorandum No.DPE/13/(19)/91-Fin dated January 13, 1992 and February 14, 1994). As per clarifications received from DPE the above preference products and services. covers both
Vide Office Memorandum (OM) DPE/13(9)/91-FIN dated 31st October 1997, the Government of India had extended upto 31.03.2000 the purchase preference for products and services of Public Enterprises. The policy provided for purchase preference in supply of goods and services to the government departments and public sector enterprises where the price quoted by supplying PSE was within 10% of the lowest valid bid price, other things being equal. The OM also provided for the condition that the scheme would be applicable upto 31.03.2000 for manufactured items produced by PSEs or joint ventures with PSEs with a minimum value added content of over 20% by the latter, subject to the purchase being in excess of Rs.5 crores. This has been extended by the OM in the next paragraph. Department of Public Enterprises, Govt. Of India vide their OM DPE/13(9)/2000-FIN-GL 30 dated September 14, 2000 has advised that the Government have decided to extend the policy of purchase preference for products and services of Central Public Sector Undertakings for two more years i.e. upto 31.03.2002 with the existing parameters except the minimum value of purchase as specified in the scheme may be Rs.1 crore instead of Rs.5 crores as mentioned in the DPE OM dated 31.10.1997 referred to above. The OM also requires that the provisions relating to purchase preference should be specified in the Notice inviting tender (NIT) in each case. The memorandum has also advised that it has also been decided that the Public Enterprises which avail benefits of the purchase preference should be subjected to adequate penalties for cost overruns etc. This has been extended by the OM in the next paragraph. DPE O.M. No.DPE/13(3)/2000-Fin. dated October 30, 2000 clarifies that in view of the extension of the policy vide DPE O.M. No. DPE/13(9)/2000-FIN/GL 30 dated September 14, 2000, the provision of the policy will be applicable to all pending cases also subject to the same parameters as specified in the above OM. Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:27 Systems & Procedures HPCL, Mumbai
Where the quoted price of the public enterprise is within10% of the lowest price, other things being equal, purchase preference may be granted to the public enterprise concerned, at the lowest valid price bid. ( Refer para (c) of the OM dated 13.1.1992) DPE O.M. No.DPE/13(3)/2000-Fin. dated November 08, 2000 clarifies that comparison of bids is done after evaluation of the bids. Therefore, the valid bid price referred to in para (c) of OM dated 13.1.1992, renewed from time to time, is to be construed as the evaluated price and not the quoted price. Vide Office Memorandum DPE.13(12)/2003-Fin Vol. II dated July 18, 2005 that the existing Purchase Preference Policy for products & services of Public Sector Enterprises has been extended for a period of three years i.e upto March 31, 2008. Accordingly, other things being equal, purchase preference will be granted to the Central Public Sector Enterprises (CPSEs) at the lowest valid price bid (L1) if the price quoted by a CPSE is within 10% of the L1 price. The Office Memorandum states that the policy has the following provisions : i. PPP will continue for a further period of three years with clear stipulation that it will be terminated with effect from 31.3.2008. PPP support will be extended to the contracts of the value of Rs. 5 crore and above but not exceeding Rs. 100 crore. If civil works are included as part of the contract for supply of goods and/or if the contract is a turnkey contract, such contracts would also be covered by PPP subject to the condition that the total value of the contract does not exceed Rs. 100 crore. iii. PPP will apply only to CPSEs and their subsidiaries (i.e where PSE owns 51% or above shareholding), but not to a joint venture owned by a PSE and a private sector partner. A minimum value addition of 20% by the CPSEs/subsidiaries companies by way of manufacturing and/or services would be a prerequisite for availing of purchase preference. The provisions relating to purchase preference should be specified in the Notice Inviting Tenders (NIT) for Rs.5 crore and above but not exceeding Rs. 100 crore. PSEs should be subject to the same qualification process as any other bidder. If the PSE does not meet the minimum qualifications it should be subject to disqualification. However, in suitable cases, the purchasers/clients may relax the condition of net worth from the list of minimum qualifications.
ii.
iv.
v.
vi.
IV:28
vii.
If the PSE, which has had the benefit of the Purchase Preference Policy, fails to perform, it should also be subject to payment of liquidated damages or any other penalty included in the contract. Each Ministry shall make a list of CPSEs that would require PPP support and if there is no possibility of making a positive list, they may attempt a negative list of CPSEs which may not require PPP support. Ministry of Power is granted exemption from the PPP, subject to the condition that they will place certain orders upon BHEL on a negotiated basis price bench marked through competitively bid projects every year. Ministry of Power and Department of Heavy industry will work out at the beginning of the year the number and value of the orders to be placed upon BHEL during the financial year.
viii.
ix.
2.
All Ministries/Departments/CPSEs/Autonomous Bodies except ministry of Power will continue to grant purchase preference to CPSEs/subsidiary companies. Respective Ministries/Departments/CPSEs/Autonomous Bodies will be responsible for implementing the Purchase Preference Policy in letter and in spirit. For any deviation including exclusion of the purchase preference clause from NIT, it will be obligatory on the concerned Ministry/Department/CPSE/Autonomous Body to obtain prior exemption from the cabinet in consultation with the Department of Public Enterprises. The cases which were under consideration from 1.4.2005 till the date of issue of this order would stand under the policy except those which have been decided otherwise.
3.
4.
B.7.b Small scale, Village and Cottage Industries The products identified by the Government from time to time for exclusive purchase from the Small Scale Sector should be purchased only from Small Scale Industries. In respect of all other items produced in the Small Scale Sector, all efforts should be made to make increasing purchases from such small units. For this purpose, price preference upto 15% can be extended to Small Scale Industries, if their products are otherwise acceptable in terms of quality, specifications, delivery schedule, capacity etc. The actual quantum of price preference upto a maximum of 15% should be decided on the merits of individual cases. In all these cases, it is to be ensured that SSI certificate contains the items to be purchased. Offers from Small Scale Industries with price preference not exceeding 15% over the "lowest tender" from other parties should be treated on par with the "lowest tender". Even the price preference upto 15% should not be taken for granted. All efforts should be made to obtain maximum advantage of excise duty including Modvat, tax concessions and bring down the price to achieve competitiveness. Since the Government attaches great importance to the successful implementation of this policy, deviation from it should occur only after the most careful consideration of the factors involved and fully supported by grounds to the satisfaction of the Ministry.
IV:29
In order to enable review of progress in the implementation of this policy, a report in the prescribed format should be submitted at six monthly intervals to the Public Sector Unit in the Department of Industrial Development with a copy to the D.C., Small Scale Industries (SSI) in his capacity as Member-Secretary of the Standing Review Committee. Situations where preference not granted to Small Scale Units To make the grant of price preference more meaningful, price preference should be accorded on a tender-to-tender basis. The question of granting price preference will not arise in the following situations: Where the Small Scale Unit had succeeded in securing orders for same items, in competition (i.e. without price preference) with the large scale units during the preceeding 12 months. For this purpose the SSI Unit will be required to give a declaration in writing in case they have obtained orders on the above lines. Where Small Scale Unit is lowest for some items without price preference and lowest for other items with price preference. (In such case, order for items where SSI is lowest with price preference will be placed only if SSI matches the rates with lowest delivered rates for those items.) Where competition is amongst Small Scale Units alone. Where Units. the items are exclusively reserved for purchase from the Small Scale
Where tenders are received from both Small Scale and Large Scale Units, and the lowest offer is from the Small Scale Unit and its capacity is more than sufficient to meet the requirement. Where the value of the tender exceeds the value limit given in the certificate produced by the SSI Unit or where the certificate does not cover the commodity tendered for.
Tender Notice A copy of the tender notice should invariably be endorsed to each of the liaison offices of the National Small Scale Industries Corporation (NSIC) simultaneously with the issue of tender notice in the Indian Trade Journal. In respect of materials where Small Scale Units have already completed contracts successfully, tender enquiries should be sent to them direct instead of through NSIC to save time. Competency Certificate In respect of Small Scale Units registered with D.G.S. & D, no competency certificate or capacity report is required. In respect of units not registered with D.G.S. & D. but with NSIC, a competency certificate on prescribed form from NSIC is required before orders are placed. The competency certificate is valid for a period of one year for that particular material.
IV:30
Exemption from payment of Tender Fee, Earnest Money and Security Deposit: Units registered under NSIC are entitled to exemption from payment of earnest money, fee for tender documents and security deposit for performance upto specified limits of volumes. Payment It should be ensured that payments are made to Small Scale Units promptly. In this regard provisions of Interest on Delayed Payments to Small Scale and Anciliary Industrial Undertakings Act , 1993 must be complied with. As per said Act the payments to Small Scale and Anciliary Industrial Undertakings must be made on or before the date agreed upon or within 30 days from the acceptance of the goods or services by the buyer, whichever is earlier. It has also been provided in the Act that if the payment is not made to these Industrial Undertakings within the time limit as aforesaid, the purchaser shall be liable to pay interest. Moreover, the payment of said interest will not be allowed to be deducted in the computation of income of the purchaser for income tax purpose. B.7.c PRICE PREFERENCE TO INDIAN MANUFACTURERS : Government have decided that the domestic manufacturers of capital goods supplied to fertilizer, power and petroleum projects under international competitive bidding would be accorded a price preference to offset Central Sales Tax to the extent of 4% or actuals, whichever is less, as well as Octroi at actuals. This dispensation would be subject to 30% of local content norm as stipulated for World Bank funded projects. B. 8 ACCEPTANCE OF TENDERS
B. 8.a Evaluation Bid Evaluation Report(Recap): The Evaluation report will be prepared by the Purchasing Authority . It will evaluate bids only on the basis of set criteria which will be clearly stated in the bid documents.It will not, nor will it be compelled to change the criteria, after the price bids have been opened. No document presented by the bidder after the closing date and time of the bid will be taken into account at the time of evaluation unless it is of a purely technical nature which has no bearing financially on the contract and which does not seek major changes in technical specifications given in the bid documents. If a bidder offers a rebate unilaterally after the closing date and time of the bid, it will not be taken into account for evaluating purposes, but if that bidder emerges as the lowest evaluated, the rebate offered will be taken into account by the Purchasing Authority while forwarding the evaluation report to the approving authority as per the Limits of Authority Manual for awarding the contract. The Purchasing Authoritys recommendation to the approving authority will be self-contained, clear and unambiguous.If any cost compensation is carried out on account of technical deviations or on other factors, it will be mentioned in the evaluation report, in terms which can easily be understood by non-technical officials. The Purchasing Authority shall in every case also complete the checklist in Annexure - 14 and enclose it alongwith the Evaluation report. The authority approving the tender shall approve the same only after reviewing the checklist. Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:31 Systems & Procedures HPCL, Mumbai
In the case of public tenders, the Bid Evaluation Report shall be available, to all qualified bidders on demand at a price to be fixed by the Purchasing Authority, provided the bidders themselves have no objection to the details of their financial status being revealed. In any case, the technical evaluation part of the report can be made available to the qualified bidders on demand at a price to be fixed by the Purchasing Authority. The disqualified bidder in the case of public tenders may demand and be given at a price to be fixed by the Purchasing Authority, the reasons for disqualifying them. The tenders will be evaluated by deducting the amount of MODVAT established in terms of Item 13 of the Purchase Policy from the quoted purchase price. The Recap statement should be prepared showing the comparative cost evaluation covering vendor-wise details of prices, delivery/payment terms, deviation from standard specifications/terms, escalation clause etc., with a view to bringing the prices on a comparable basis. Tenders should be accepted based on such comparative cost evaluation. In cases where the party quotes payment terms (including any advance payment) earlier than our normal payment terms viz. "30 days from the date of receipt of materials (vide MRR or receipted challan)/completion of activity or 15 days from receipt of bill alongwith proof of delivery to HPCL, whichever is later", interest cost at the prevailing rate for the period of variation should be loaded while arriving at the cost. As far as liquidated damages in respect of delay in supply of materials are concerned, these should not be considered at the time of evaluation of tenders because these do not represent definite cost. However, if any vendor refuses to accept such liquidated damages clause, the value of the same may be loaded at the time of financial evaluation of tenders.
Where a bidder states that the clauses in GTCC are not acceptable to them the differences may be discussed and resolved. Where the deviations can be monetised, the same shall be consdiered while evaluating tenders as stated in this clause. Where the differences can not be resolved and monetised these may be forwarded to the Legal Dept and their opinion be obtained. The bid evaluation along with the legal opinion shall be forwarded to the approving authority as per
LAM. If some discrepancies are found between the quoted rates by bidders given in words and figures of the amount in the tender, the following procedure shall be applied : (a) When there is a difference between the rates in figures and words, the rate which corresponds to the amount worked out by the tenderer shall be taken as correct. When the rate quoted by the tenderer in figures and words tallies but the amount is incorrect, the rate quoted by the tenderer shall be taken as correct . When it is not possible to ascertain the correct rate in the manner prescribed above the rate as quoted in words shall be adopted.
(b) (c)
Where necessary, user department may be involved during evaluation, alongwith an officer from Finance. As a rule, order shall be placed on the basis of lowest acceptable tender; exceptions, if and when made, shall be recorded in writing with reasons and duly approved.
IV:32
Where the lowest bid is very low compared to the cost estimate and other higher bids, the approving authority shall review the tender offers regarding their workability of rates and shall carry out meeting through Negotiating Team to ascertain whether party has properly quoted with reference to scope. In such cases, the Negotiating team may require the bidder to produce detailed price analysis for any or all items to demonstrate the internal consistency of these prices. After evaluation of the price analysis, the Purchase Authority/ approving Authority may require that the amount of the performance security is increased to a level sufficient to protect against financial loss in the event of default of the successful bidder under the contract. It will be the responsibility of user Dept. or the consultant entrusted with the task of estimation to explain the basis to the approving authority of their estimates, if bids are received at abnormally lower prices. In such cases, the Purchasing Authority shall obtain from the user/consultant and enclose with the recap the explanation by the user/consultant of the basis of their estimation. The appproving authority in such cases will review the explanation before reviewing the tender offers regarding their workability of rates. Where based on workability assessment, the vendor's bid is non-workable, the same will be rejected and EMD, if any, forfeited. Cogent reasons will be given for rejecting such bids as non-responsive/non-workable. The CVC has given the following clarification where L-1 withdraws his offer before the work order is placed, or before the supply or execution of work order takes place : Some of the organisations have sought clarifications as to whether they can consider the L-2 offer or negotiate with that firm if L-1 withdraws his offer before the work order is placed, or before the supply or execution of work order takes place. In this regard, it is clarified that such a situation may be avoided if a two-bid system is followed (techno-commercial) so that proper assessment of the offers is made before the award of the work order. Therefore, if L-1 party backs out, there should be retendering in a transparent and fair manner. The authority may in such a situation call for limited or short notice tender if so justified in the interest of work and take a decision on the basis of lowest tender. (Ref : Directive from Central Vigilance Commission vide letter No. 98/ORD/I dated August 24, 2000) circularised vide S&P circular Ref. IT:RKM:S&P dated September 18, 2000. B. 8.b Value limits for approval of tenders The following quidelines on value limits should be observed by the purchasing authorities to ensure uniformity: i. Indigenous purchases: For approval, only the basic cost (Ex-Works Cost) of the item, i.e. excluding excise duty, freight, sales tax and other local levies, packing and forwarding etc. should be taken as value. For cost evaluation, the delivered cost should be taken, i.e. cost including duty, sales tax, packing and forwarding, insurance, freight and local levies as well as the interest cost in case payment terms are different, to arrive at a common basis for evaluating tenders. IV:33 Systems & Procedures HPCL, Mumbai
ii.
Imported items: For approval, the FOB value should be taken. For cost evaluation, the CIF cost + Import Duty i.e. landed cost at site should be taken (freight and insurance may be calculated on estimated basis). Wherever comparison with indigenous items is involved, cost evaluation should be done on landed cost of the imported item as compared to the delivered cost of the indigenous items at site.
B. 8. c Approval Approval of tenders should be obtained as per the limits prescribed in the Limits of Authority Manual. Authority for issue of Purchase Order, after tender is approved, is covered under LAM, Section : Materials/Disposal. The approving authority will ensure that the factors mentioned in the following paragraphs which indicate a potential for fraud are not present in the documents before awarding the contract. Fraud Indicators: The presence of factors which indicate a potential for fraud does not establish that fraud has been committed. These factors should be taken in the context of a particular procurement action to alert the management to the possibility of fraud. The following indicators, which are illustrative and by no means exhaustive, focus on the tendering process: Submission of tenders: a. b. Improper acceptance of late bids. Information contained in bids concerning contractors qualifications, financial capability, facilities etc. which does not agree with third party information or knowledge gained from previous contracts. Collusion or tender rigging between bidders (complementary tendering, tender rotation, sharing of market) for example : Contractors who are qualified and capable of submitting their tenders do not do so for no apparent reason. The successful tenderer subcontracts works to companies that had submitted higher tenders. A pattern in rotation of lowest tenders between companies who have tendered. Joint venture bids when the partners of that venture could have bid individually.
c.
Award of Contract: Disqualification of the lowest tenderer on flimsy grounds, especially the one who has already been executing contracts, with the Corporation. - Unexplained changes in contract shortly after award. - Contracts awarded to those with poor performance record. - Poor documentation of contract award process. IV:34 Systems & Procedures HPCL, Mumbai
Notes : i. Standing Purchase Orders/Rate Contracts including renewals only upto five years' duration can be approved by authorised functionaries. For periods above five years, approval of Board of Directors would be necessary. Long term purchase agreements/contracts including renewals over 3 years but not exceeding 5 years and having value exceeding Rs. 100 crores to be reported to the Board. For the purpose of approval, the value limit should be based on the value of the firm commitment for the entire contract period. In case of limited tender enquiries, competence of the selected vendors with proven performance and technical capabilities, cannot be made a condition for rejection of an offer, since the technical competence must be determined in advance before the selection of the vendor for sending the enquiries. In situations where it is not possible to determine technical competence in advance (e.g. in case of Works Contract) tender may be floated under Ùnpriced' and `Priced' bids system and the parties may be asked to furnish details on Vendor Data form alongwith Ùn-priced' bids. The parties may be shortlisted and `Priced' bids of only those parties may be opened. iv. Single offer is an offer received from a single vendor in response to a regular tender enquiry sent to a number of parties (limited tender). For the purpose of authority for approval, single offer against limited/public tender will go under respective categories i.e. limited or public tender as the case may be. v. Even though quotations are not invited from SAIL/TISCO and purchase is made based on proforma invoice, necessary approval should be obtained on single/limited / public tender as applicable.
ii.
iii.
Information on tenders above thresholdvalue: The Central Vigilance Commission vide its Office Order No 13/3/05 dated March 16, 2005 has decided that as a follow up of its directive on use of web site in public tenders all organisations must post a summary every month (refer Annexure - 15) of all the contracts/purchases made above a certain threshold value to be decided by the CVO in consultation with the C&MD. Accordingly, the following threshold values have been fixed for the Corporation: a. Mega Projects b Others Tenders/contracts : Rs. 5 crores Civil Works : Rs. 20 lakhs Other tenders/contracts : Rs. 50 lakhs
All tenders/contracts of a value above the threshold values fixed shall be published on the HPCL web site by the concerned Purchasing Authority as per the format enclosed with the CVCs Office Order. Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:35 Systems & Procedures HPCL, Mumbai
B.9 B.9.a
EARNEST MONEY DEPOSIT (EMD) Applicability Public Tenders : In the case of Public Tenders, EMD should be insisted upon. If the bids are not accompanied by EMD, they should not be considered at all. Note : The following clause should be included in the tender enquiry where is essentially required : "Tenders received without Earnest Money Deposit will be rejected." Limited Tenders : In the case of Limited Tenders, EMD can be called for at the discretion of the Purchasing Authority, preferably for the tenders with value exceeding Rs.25 lakhs. However, where EMD is called for, it should be insisted upon from all the tenderers. EMD
B.9.b
Exceptions : The following categories of tenderers are exempted from EMD : Public Sector Enterprises Vendors registered with National Small Scale Industries Corporation (NSIC). For this purpose, in the event of the tendering company being a Public Sector Enterprise, a declaration to that effect and in the case of Vendors registered with NSIC, a copy of the registration certificate should be obtained.
B.9.c
Quantum of EMD : Limited Tender : In case of limited tender, Purchasing Authority will exercise his discretion to demand EMD, if required, as mentioned under Clause B.9.a above. The EMD amount shall be the same as for Public Tender.
Public Tender
: EMD amount 2% of the value of the job/LPR Rs.10 lakhs + 1.5% of the amount exceeding Rs.500 lakhs Rs.25 lakhs + 1% of the amount exceeding Rs.1500 lakhs Rs. 35 lakhs + 0.5% of the amount exceeding Rs. 2500 lakhs.
Value of the job/LPR Upto Rs. 500 lakhs From Rs.501 lakhs to Rs.1500 lakhs From Rs.1501 lakhs to Rs.2500 lakhs Above Rs. 2500 lakhs
When a range of the job value is mentioned in the LPR, EMD shall be calculated on the higher value of the range. 1. EMD can be given either by DD or Non-revocable Bank Guarantee on Scheduled banks (other than co-operative banks). EMD can be collected as follows :-
2.
IV:36
Upto Rs. 50,000/-
by way of account payee pay order/demand draft on scheduled bank (other than cooperative banks) in favour of Corporation or cash (duly receipted) by way of pay order/demand draft or bank guarantee on any scheduled bank (other than cooperative. banks) For bank guarantees over Rs.5 crores, clearance shall be obtained from Treasury Dept. before accepting the bank guarantee.
Above Rs. 50,000/-
In case of two bid tender situation, EMD should accompany the technical bid. In any case EMD should be received in a separate envelope earmarked "EMD Money" apart from the priced /unpriced quotation, so that if the EMD is not in line with the amount called for, the EMD as well as the quotations will be returned unopened to the tenderer. If the EMD does not accompany the technical bid and accompanies the priced bid, such bids will not be considered at all.
B.9.d Refund of EMD EMD should be refunded to other than lowest evaluated bidder(s), immediately upon completion of price evaluation, by means of A/c Payee cheques.
In case, more than one order is required, EMD of such bidders may be retained.
B.9.e Mobilisation Advance Where Mobilisation Advance is to be given the same shall be expressly stated in the NIT/Bid documents and a Bank Guarantee of equivalent amount obtained. The advance shall be released in stages depending on the progress of the work and mobilisation of the required equipment. There shall be a provision in the contract to adjust the advance progressively as the bills are cleared for payment.
Interest shall be charged at SBIs PLR rate + 0.5% on any mobilisation advances paid. Treasury Department shall advise SBIs PLR rate from time to time.
The maximum quantum of interest free Mobilisation Advance will be as per the prevailing limits laid down in the Limits of Authority Manual. It is clarified that any payment against milestones specified in the tender shall not be deemed as Mobilisation Advance attracting interest thereon.
The maximum quantum of Mobilisation advance shall be upto 10% of total contract value, with bank guarantee and shall be given at the discretion of the project authorities after approval.
B. 10 Bank Guarantee Bank Guarantee on stamp paper of requisite value should be obtained from suppliers/contractors against EMD, advance payment made and/or our own materials issued to them. This requirement should be included as a standard term forming part of general terms and conditions. A duly approved list of parties exempted from
IV:37
furnishing such Bank Guarantee should be maintained by the Purchasing Authorities. Any addition/ deletion to this list, by the user department shall be submitted to the Contracts Committee for approval. A list of banks whose bank guarantees are acceptable to the corporation shall be developed by the Treasury Dept. and maintained by the Purchasing Authorities. For any addition/ deletion to this list, assistance of the Treasury Dept. HQO, may be sought. In case the Corporation has decided not to accept any bank guarantee from a particular bank, such a list shall also be maintained by the Purchasing Authorities in consultation with the Treasury Dept. Wherever Bank Guarantee is required, it should be clearly specified on tender enquiry as well as on Purchase Order. It is essential to have an acceptable and legally valid Bank Guarantee in our possession until contractual obligations are fully met. All bank guarantees must be unconditional and should be encashable on presentation to the issuing bank. Bank guarantees shall be accepted from Scheduled banks (other than co-operative banks). For bank guarantees over Rs. 5 crores clearance shall be obtained from Treasury Dept. before accepting the bank guarantee. Bank guarantees must provide for sufficient time to lodge a claim after the expiry date.
All foreign bank guarantees will be confirmed by a bank located in India acceptable to the Corporation . Public Sector Enterprises and Central/State Government Department are exempted from furnishing Bank Guarantee against advance payment. B.11 SELECTION OF MORE THAN ONE SUPPLIER WHERE RATES DIFFER If a situation demands that more than one supplier is desirable, the same may be recommended in the LPR and the number of suppliers should be determined by the authority taking purchase decision. Generally, apportionment after matching of rates will be made on 60:40 basis for two parties, 50:30:20 basis for three parties and such other basis for more than three parties. The Purchasing Authority, should, in the first instance, place orders on the parties whose quotations are the lowest to the extent of their capacity to meet our requirements or when it is considered desirable to assure a minimum quantity from that supplier. As a second step, the Purchasing Authority should write to required number of tenderers in the order of their ranking, seeking their agreement to accept the lowest price and the quantities they will be able to offer at the said rate, so that they also could be considered for placement of order. If the quantities offered by the tenderers at the stipulated rate exceed the total quantity required, then order should be placed first on the initial lowest tenderers, and then on others in the ascending order only after matching of lowest price by those tenderers. If the parties do not revise their quotation or are not agreeable to match the lowest price but offer a rate higher than lowest and less than their original offer, order may be placed on those parties at rates agreed by them after obtaining approval from the authority prescribed in the LAM "other than lowest" based on the total value of the contract. Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:38 Systems & Procedures HPCL, Mumbai
If parties not originally lowest, offer rates lower than originally lowest rates, order may be placed at those rates but original ranking should be considered while apportioning the quantity to be ordered. In case of selection of more than one supplier where rates differ, counter offers required to be made of rates to other than lowest bidders. are
On the above, the CVC has issued the following clarification vide letter No.98/ORD/1 dated March 18, 1999. Post tender negotiations can be carried out if purchase is being done in a fair, transparent and equitable manner. In this regard, the circular laying down the procedure on Post Tender Negotiations and having reference IT: S&P:PUR dated May 18, 1999 is reproduced herein below : Further to our letter IT:SB:S&P dated December 3, 1998, we have received a letter No.98/ORD/1 dated March 18, 1999 from Central Vigilance Commission, issuing clarifications on Post tender negotiations as follows :
i.
The Government of India has a purchase preference policy so far as the public sector enterprises are concerned. It is clarified that the ban on the post tender negotiations does not mean that the policy of the Government of India for purchase preference for public sector should not be implemented. Another issue that has been raised is that many a time the quantity to be ordered is much more than L1 alone can supply. In such cases, the quantity order may be distributed in such a manner that the purchase is done in a fair transparent and equitable manner. As per the said clarifications, post tender negotiations can be carried out if purchase is being done in a fair, transparent and equitable manner.
ii.
To meet this objective, the efforts should be to make the process fair and transparent by incorporating the following relevant data in the tender documents : 1. The quantity to be procured should be clearly specified in both the LPR and the tender document irrespective of whether the tender is limited or public. Similarly, if quantity/number/quantum of services required is such that multiple vendors may be required to meet the full requirement, then the LPR and the tender documents (limited or public) should clearly indicate the manner in which the distribution of the quantities will take place. In the event, more than one vendor is required for providing flexibility/assured supplies, then the specific number of vendors required alongwith distribution ratios of the quantities required as per purchase procedures, should be clearly mentioned in the LPR and also in the tender documents (limited or public).
2.
3.
In item 2 above, since multiple suppliers/service providers will be required as per the tender conditions, instead of one lowest (L1) tenderer, there would be a number of tenderers which together make the set of lowest (sL1) tenderers, basis the lowest rate Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:39 Systems & Procedures HPCL, Mumbai
ranking. If required, negotiations with all such tenderers can be carried out by the Negotiating Team as appointed in line with the LAM/Purchase Manual. Purchase Orders placed on the set of such tenderers at the rates as finalised shall not be treated as discretionary or other than the lowest rate and will not be required to be reported and published as per the CVC guidelines. It is also being clarified that Rationalisation of rates and terms as well as Counter Offers shall be made within the set of lowest tenderers. The distribution of the Purchase Orders should be made on the basis of procurement of full quantities offered by the vendors so as to avoid any financial loss to the Corporation and keeping in mind the relative ranking of the vendors. (An illustration is given below in the Annexure) In case of item 3 above, negotiations can be held only with L1, but counter-offer dependent on rates finalised through negotiation can be made to vendors as specified in the tender document. If other vendors agree to match L1, then approval as per lowest tender should be obtained, else approval as per other than lowest be obtained. Needless to mention that distribution of the purchase order should be made to reflect the relative ranking of vendors. As an e.g., where in a tender document, it is specified that 3 vendors are required for providing flexibility/assured supplies, counter offer can be made to L2 and L3 only and not to L4 or beyond. If L2 and L3 vendors agree to match L1 then approval as per the lowest tender shall be obtained, else approval as per other than lowest shall be obtained. However, in both cases, it need not be put up on the notice board because no discretion is involved. An illustration of the case of multiple vendors required to meet full quantities : Total requirements : Valid offers received : Ranking based on rate L1 L2 L3 40 Tank Trucks 10 for total 200 Tank Trucks No. of Tank Trucks 10 20 20 10 20 10 Accepted Remarks
Procure full quantity offered Procure full quantity offered Procure balance quantity required
L4 L10
30
15 ---200 IV:40
--40 Systems & Procedures HPCL, Mumbai
Total : Chapter IV (Purchase Procedures) Purchase Manual
REVISION: PUR-034/09/10.09.2008
In order to meet the total requirement of 40, the first 3 lowest vendors will form the set of vendors who will be considered for negotiations/rationalisation or counter-offer. Prior to December 3, 1998, negotiations could be restricted to 3 lowest vendors or technically qualified parties, whichever is lower or counter-offer to all the ten vendors or rationalise with the lowest vendor. However, as per the revised guidelines, only the set of lowest vendors can be considered (three vendors in the above example) for the purpose of negotiation/ rationalisation/counter-offer. B.11.1 TIME EXTENSION CLAUSE:
i. ii. iii.
iv. v. vi.
Request and grant of time extension should be well before expiry of Contractual Delivery Date (CDD). Provisional time extension shall be granted against submission of Bank Guarantee (BG) for LD amount, with approval of GM well in advance. A written change order shall be issued for all time extensions duly granted as per the existing procedure. Head Projects is provided with the authority for time extension. LD should not be deducted in the beginning. Payments upto 90% of contract value in lieu of additional Bank Guarantee of 10% can be made. GM-Projects/Head Project to decide the LD to be levied within 6 months of expiry of the contract.
B.12
LIQUIDATED DAMAGES CLAUSE A suitable Clause should be incorporated in purchase contracts for liquidated damages to ensure that contractors supply the materials or any instalments thereof or spares or services, within the stipulated delivery period. The liquidated damages clause in the contract is not restrictive in its application only to the main equipment, but it also covers the supplies of spares. In case of delays, appropriate action could be taken on the merits of each case in terms of the conditions of the contract. If the supplier failed in the performance of the contract within the time fixed under the contract, or any extension thereof, he has to be made liable to pay as agreed, liquidated damages and not by way of penalty as follows : General Contracts : a sum equivalent to 0.5 percent of the contract value for every week or part thereof of the delay subject to a maximum of 5 percent of the total contract value. However, Contracts Committee/CFD on a case to case basis may increase the Liquidated Damages in a manner that the maximum LD does not exceed 15% of the total contract value. In such cases, approval of the Functional Director will be taken for increasing the maximum of 5% to 15% of the total contract value. In the case of Mega Projects, on a case to case basis, approval of the GM in-charge of that project may be taken on the LPR for increasing the liquidated
Specific Contracts (Requiring strict adherence to delivery schedules)
IV:41
damages from the maximum of 5% to 15% of the total contract value. This will also apply to VVPL Project.
If the delivery is inordinately delayed, the contract may be terminated in respect of the balance supply so delayed or some other suitable arrangement could be arrived at with the supplier/contractor. Once specifications and delivery schedules are approved, the Liquidated Damages Clause where accepted, should be inserted even in the agreement with Public Sector Enterprises. Insert the liquidated damages clause in the terms and conditions of tender in all applicable cases unless otherwise specified by the user in the Purchase Requisition. If the liquidated damage clause is not to be inserted in the tender enquiry (refer page II.15, Item 12), such exclusion should be justified on the LPR. NOTE: ii ii.
iii.
LD shall be applicable only on the basic cost and on full complete week (s) and for fractional days LD shall be applicable on pro-rata, if any. GM shall grant provisional time extension with/without receipt of PMC/user recommendation and to finalise the same subsequently. Initially LD shall be applicable for total contract value and final LD settlement to be on unexecuted portion/quantity of work for contracts in the contractual completion period. LIQUIDATED DAMAGES: LEVY THEREOF: "CLARIFICATORY NOTE ON TOTAL CONTRACT VALUE" Liquidated Damages are referred to as a percentage of total contract value in various sections/attachments of Purchase Manual. a. TOTAL CONTRACT VALUE damages shall be as under: for the purpose of levy of liquidated
B.12.a
TOTAL CONTRACT VALUE shall have to be defined on a case to case basis very clearly on the face of the purchase orders. In otherwords, should there be an eventuality arising leading to recovery of liquidated damages, the value on which the same shall be applicable shall have to be made known very clearly to both parties to the contract right before floating of tender/awarding the contract. Towards this, the tender conditions will have to be very specific.
IV:42
b.
THE CONTRACT VALUE: DEFINITION i. MATERIAL SUPPLY CONTRACT: The contract value would mean the basic cost excluding taxes, duties, levies, freight etc. unless and until specifically specified on LPR/PO. SERVICES/JOBS/WORKS CONTRACTS: The contract value would mean the total cost inclusive of taxes, levies and all other costs at which the contract is awarded but exclusive of value of items in scope of Corporation's supply. LUMPSUM/TURNKEY CONTRACTS: The contract value would mean the total cost and all other costs inclusive of taxes, duties, levies, freight etc. In cases of material supplies/Turnkey/job/works contracts where the certain imported components are involved, the total contract value for recovery of Liquidated Damages shall include Foreign Exchange variations also unless specifically excluded in purchase order. Similarly in respect of contracts involving imported components to be supplied over a specified period, it may have been agreed to as part of the original contracts that exchange rate variations upto the specified period are reimburseable. In such cases the total contract value for LD purposes will have to include the exchange rate variations upto the period agreed to be reimbursed by the company in terms of the contract.
ii.
iii.
NOTE 1.
NOTE 2.
The total contract value for levy of LD shall include types of escalations agreed to in terms of the contract awarded. In all cases the percentages to be levied shall be either as per general terms and conditions attached to the tender or different percentages as identified in the purchase orders. Ideally, the LD percentage to be levied should explicitly be specified on the tender document itself together with definition of contract value so that no controversies arise at a later date. The general guiding principle is that it should sufficiently cover all the additional costs to the company due to non performance and should be a deterrent to the contractor also for non performance.
NOTE 3.
NOTE 4.
The Cabinet Committee on Economic Affairs had directed that in turn-key contracts in addition to liquidated damages, an attempt should be made to have a provision for consequential damages also on account of time and cost overruns. (Ref : Office Memorandum No.G-38011/6/98-Fin.II dated November 22, 2000, from Ministry of Petroleum and Natural Gas enclosing thereunder copy of O.M. No.1(2)/PF.II/ 99 dated November 13, 2000 from Ministry of Finance, Department of Expenditure.) IV:43 Systems & Procedures HPCL, Mumbai
B.12.b
DETERMINATION REDUCTION :
OF
UNDELIVERED
QUANTITY
IN
CASE
OF
PRICE
Whether LD shall be computed for the whole ordered quantity or quantity undelivered beyond the agreed date of supply, shall be decided by the Project authorities In-charge, in advance after taking into consideration all relevant factors covering the proposed purchase. The said particulars regarding recovery of LD shall by clearly specified in the tender documents while floating the tender so as to avoid ambiguity in this regard/dispute in future and specified on PO. In case the P.O. is silent on the definition of undelivered quantity, the following clause will be applicable : Undelivered quantities are required to be ascertained at the time of each consignment made after scheduled completion time and period of delay should be calculated for each individual consignment supplied after the scheduled date of delivery. In other words, LD is to be applied on diminishing balance of undelivered quantities for the period of actual date of supply less last date of scheduled delivery for each consignment supplied. B.13 B.13.a ESCALATION AND ARBITRATION CLAUSES General : In all the purchase contracts entered into, it is advisable to provide for a properly worded clause for escalation of costs based on the indices showing the increase in prices of materials and labour, as well as for a clause for redressal of disputes through arbitration to avoid payment outside the terms of contract which can involve impropriety and also unpleasant situations. With a proper Escalation Clause in the contract, the contractor would quote his price taking this clause into consideration and would not include the extra element in his tendered cost to cover future escalation. The Arbitration Clause (see Chapter VI- Annexure 5) would ensure speedy settlement of disputes. It should provide for a sole arbitrator to be appointed by the Functional Director. For all contracts of completion period beyond 12 months, an escalation/ descalation clause towards major components like Steel / Cement etc. to be incorporated in the tender, in line with the existing provision of Purchase manual. The escalation clause shall be approved by the LPR approving authority (not below DGM) with FC. B.13.b Public Sector v/s. Government Department or vice versa : In case of contracts/agreement to be executed between Public Sector Enterprises / Government Departments, the following clause will be incorporated. Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:44 Systems & Procedures HPCL, Mumbai
"In the event of any dispute or difference between the parties hereto, such dispute or difference shall be resolved amicably by mutual consultation or through the good offices of empowered agencies of the Government. If such resolution is not possible, then, the unresolved dispute or difference shall be referred to arbitration of an arbitrator to be nominated by Secretary, Department of Legal Affairs ("Law Secretary"). The Arbitration & 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 dispute, provided, however, that any party aggrieved by such award may appeal for setting aside or revision of the award to Law Secretary whose decision shall bind the parties finally and conclusively. The said appeal should be filed within the period specified in the award of the arbitrator." It is essential that, to avoid delay in nomination of arbitrator or initiation of arbitration proceeding, the Arbitration Clause or Agreement, as the case may be, is forwarded without fail at the time of making request for reference to the Law Secretary or Department of Legal Affairs. B.13. In case of on-going contracts/agreements, which do not contain Arbitration Clause, the concerned parties should execute arbitration agreements as per Annexure 5 of this Purchase Manual (Page VI-10) THIRD PARTY INSPECTION CLAUSE Third Party Inspection Clause may be introduced in the contract for purchase of equipments such as Pipes, Valves, Gensets, Pumps, Compressors, Motors, Transformers, Switch Gears etc. Third Party Inspection shall be carried out by parties to be approved by Purchase authority at rates finalised with them. However, this list will be periodically reviewed and where necessary additions will be made. Deletions from this list will done if the Third Party is found to be "incompetent". The inspection shall be carried out in terms of the equipment meeting our specifications and shop test etc. Such clause would be necessary when equipments are purchased from stockists/traders. The respective User Department may directly enter into an agreement with reputed parties like Bureau of Indian Standards, Llyod Registrar of Shipping, Bureau Veritas, etc. and Third Party Inspection charges paid by them as per agreement. The agreement should also be witnessed by Purchase authority not below S/G `D'. The specifications will clearly indicate the acceptance norms against which supplies of equipment/materials are to be accepted. The specification shall clearly state that inspection will be carried out to establish conformance to the acceptance criteria specified and in case the equipment and materials may not conform to the acceptance norms, they will be summarily rejected unless the deviations in this regard have for good and sufficient reasons to be recorded in writing been accepted by the Corporation. It shall also be clearly indicated that any cost implications as a result of deviations in such cases will be invariably taken into account. The contractor/vendor will give clear notice period offering the materials/equipment for inspection by the Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:45 Systems & Procedures HPCL, Mumbai
B.14
user/ technical group/third party and they will not be despatched unless they are inspected and cleared for despatch by the Corporations representative. B.15 PERFORMANCE GUARANTEE CLAUSE The following Performance Guarantee Clause should be introduced in Purchase Order/Contracts where necessary: "The supplies made against this order shall be fully guaranteed against any manufacturing defects/poor workmanship/inferior quality etc. for a period of 12 months from the date of commissioning or 18 months from the date of supply whichever is earlier. During this period, you will arrange to repair/replace any defective parts free of cost or replace complete set if required. Guarantee Certificate should be submitted alongwith despatch documents. You will furnish performance Bank Guarantee in favour of HPCL issued by Scheduled bank (other than co-operative banks) for 10% value of the material supplied and valid during the above guarantee period." Composite PBG for 10% of PO value towards Performance Bank Guarantee inclusive of Security Deposit shall be accepted (in lieu of deduction of retention money of 10% from each bill); Such composite PBG shall be valid upto a period of 3 months beyond the expiry of defect liability period. Demand Draft should be drawn on Scheduled Banks (other than cooperative banks). C. C. 1 ORDERING REGULAR PURCHASE ORDER For purchases by all offices upto Rs.3000/-, (for Sales Officer/T&E Stn I/c. and Rs.5000/for others) Local Purchase Requisitions (LPR) need not be issued. Similarly, Purchases above the value of Rs.3001/Rs.5000/- upto Rs.10000/- shall be made on the basis of LPR only. If the supplier insists on a written order, an order in the form of a letter may be provided to him. Accordingly, all purchases above Rs.10000/- will be made through placement of regular Purchase Order. These limits have been specified earlier in this manual under "Exceptions to Purchase Authority's functions" in Chapter II on page II-15. However, all other procedures relating to obtaining of quotations, selection of vendors as well as payment must be followed. Purchasing Authority a. Prepare Purchase Order(s) based on the Purchase Requisition and the accepted quotations(s). The Purchase Order prefix representing each Purchasing Authority and the serial number of the Purchase Order are preprinted in the Purchase Order set. The following prefixes have been assigned to the Purchase Orders issued by various Purchasing Authorities :
IV:46
Purchasing Authority Purchase Department, Marketing, HB Purchase Department, * Marketing, HB Materials Department, Fuels Refinery Fuels Refinery Projects Materials Department, Visakh Refinery Materials Department, Visakh Refinery Projects Field Offices
Catering to Marketing Divn. Corporate Divn. Mumbai Refinery (Fuels & Lube) Mumbai Refinery Projects Visakh Refinery Visakh Refinery Projects North Zone East Zone West Zone South Zone ROs/Terminals
P.O. Prefix M C MR MRP VR
VRP NZ EZ WZ SZ Prefix by applicable LPR Series CEC
Central Engineering Cell, PH b. c.
Refineries
Ensure that the Purchase Order is complete in all respects. Obtain signature of the authorised officer as per LAM on the Purchase Order and route the copies as under : Original - White - Supplier 2nd copy - Pink - Purchase Authority (Correspondence File) 3rd copy - White - Purchase Authority (Numerical File + Circulation copy) 4th copy - White - Disbursement Section - File Copy 5th copy - Yellow - Material Received Report (Accounting Dept.- Authority to pay Invoice) 6th copy - Green - Material Received Report - Storage Point Quantity record. (User Department/Unit/Location copy)
d.
Provide assistance to users, if requested, to ensure that: The supplier has received the Purchase Order. The supplier makes delivery as per schedule. The supplier submits bill for materials supplied/ job completed. NOTE: Letter of Intent is an acceptance of offer by the Corporation and it need not be accepted by the tenderer. But the tenderer should acknowledge a receipt of the Purchase order within 15 days of mailing of the Order and
IV:47
any delay in acknowledging the receipt will be a breach of contract and compensation for the loss caused by such breach will be recovered by the Corporation by forfeiting earnest money deposit. C.2 CHANGE ORDER User Department/Office/Unit C.2.a It may be sometimes necessary to revise the quantity of materials or the rates/total value of materials/job after placing the Purchase Order to cover certain exceptional circumstances like construction/ major maintenance jobs and equipment repairs involving spares which cannot be predetermined and spot decisions to replace specified types/makes of equipment/spares due to non-availability of the ones specified in the Purchase Order. In the case of variations in quantities/value from the original Purchase Order, upto the limit stipulated in the Materials/Disposal Section of the LAM, payments can be made directly by the Disbursement Section/ paying authority on receipt of certification by user department/ office/ unit and also valid documents, without the need for issue of a Change Order. For revisions beyond the stipulated limits, requests for issue of change Order should be made by the user department/unit by means of a Revision Purchase Requisition. C.2.b Revision Purchase Requisition will normally be restricted to the following situations: i. Circumstances encountered during civil works/works contract arising unanticipated site conditions. out of
ii.
Work details which could not be assessed prior to commencement of the work and supported by inspection reports. Changes required in the original design/layout arising out of beyond control, including adherence to mandatory stipulations. circumstances
iii.
iv.
Changes in the scope of the job leading to economics/cost reduction. In the above circumstances, revision Purchase Requisition should clearly identify the exact scope of revision in terms of quantities, specifications, delivery schedules, new items, etc., and indicate the net value of change in monetary terms to be incorporated in the original Purchase Order. The requisition should also give justification as to why the changes are deemed necessary and why they could not be foreseen while initiating the original Purchase Requisition.
C.2.c Revision Purchase Requisition should be given the same number as the original Purchase Requisition with the suffix "Rev." in brackets, as GEN-555 (Rev.).
IV:48
Purchasing Authority a. On receipt of Revision Purchase Requisition, or whenever change are necessary to be made in the original Purchase Order, issue Change Order using a Change Order set, after approval by the approriate authority. Copies should be distributed as printed on individual copies. Copies of the Change Order should be filed behind the respective copies of the original Purchase Order. All changes in quantity, price, etc., should be reflected on the respective copies of the original Purchase Order and initialled by the employee making the change, giving reference to the Change Order/s. If the changes are of an extensive nature, which cannot be conveniently recorded on the copies of the original Purchase Order, make a notation in red ink on the copy of the original order to refer to Change Order No. 1, 2, etc.
b. c.
NOTE REGARDING CHANGE ORDER : (SENSITIVITY ANALYSIS : This clause stands deleted applicable henceforth) 1. and shall not be
Where purchase order involving works contract have been executed and quantity increases have arisen and where the vendor does not remain the lowest as per the recap with actual quantities, the vendors should be asked to match the lowest offer. In case, the vendor agrees to match, approvals will be obtained as above. In case, the vendor does not match the lowest offer, approval as per LAM from one authority higher (max. CFD) shall be obtained for placement of change order for the revised value If due to change, revised value limit for total order is falling under higher approving authority, revisions will be approved only by such authority who would approve of such value. It should be ensured that entire job as per original P.O. will/has been completed and it should be certified by Project-in-charge/ Loc.in-charge. Any change in the contracts approved by the Government/Board will be made only on the approval of the Government/Board, as the case may be. If any contract is originally approved by the Government, any change in the contract exceeding 10% as a result of change in quantity can be made only with the approval of the Government. Any change in payment terms (except for imported items) for whatever reasons must be cleared with the Committee /authority who originally approved the contract. If, as a result of change in rate, the value exceeds specified limits, clearance from the next higher Committee/authority must be obtained. Revision in rates for transportation of bulk petroleum products by tank lorries will be subject to the condition that the revised rates are not higher than the revised rates of the industry. IV:49 Systems & Procedures HPCL, Mumbai
2.
3.
4. 5.
6.
7.
8.
9.
Any revision in the rates for transportation by tank lorries in excess of 20% of the existing rates or where the financial implication exceeds Rs.5 lakhs in each case, whichever is lower, should be reported to the Board. Where change in scope occurs while executing a job under Works Contract, approval for new items wil be obtained from the authority as applicable on single tender basis and a separate P.O. to be issued where additional work is to be carried out by the same contractor.
10.
C.3
REPEAT ORDER User Department/Office/Unit When the need arises for materials/services which have been received in the recent past, the user department/unit can give reference of the previous Purchase Order in the Purchase Requisition and request for placement of Purchase Order (Repeat Order) on the same party, provided the following conditions are fulfilled :
C.3.a A repeat order can be placed within One year of the issuance of the original P.O. by the same Purchasing Authority upto 100% of the original quantity i.e. provided that i) ii) iii) iv) The present P.O. rates are not higher (equal or less) than original P.O. rates. The quantity proposed to be purchased is either equal or less than the quantity of the previous order. The previous order had resulted from formal public or limited enquiries not being other than lowest. The previous order was not placed on delivery preference basis . In case, an order against original LPR was placed in stages, then the date of last purchase order against that LPR should be recognised as the date of original purchase for the purpose of repeat order.
C.3.b
The Purchasing Authority is satisfied that there has not been any downward trend in prices and it is recorded accordingly. The quantity proposed to be purchased is either equal or less than the quantity of the previous order. The previous order had resulted from formal open, limited or single tender enquiries as per procedure. Purchasing Authority On receipt of approved Purchase Requisition, a Repeat Order can be placed on the nominated supplier/contractor, if all the above conditions are fulfilled. In such case, there is no need for referring to original tender approving authority for placement of repeat order.
C.3.c
C.3.d
IV:50
C.4 C.4.a
TERMINATION OF CONTRACT/PURCHASE ORDER For the purpose of termination of any contract/purchase order, unless the contract otherwise specifies, the term owner or the authority empowered to decide such termination shall be the same authority empowered to award/approve/grant the contract. The communication of such termination shall be made by the Project Executing Head in salary grade not lower than D. The above shall apply after placement of LOI/FOI/PO but before the term/extended term of the contract is completed. In case of termination after the term/extended term of the contract, the authority empowered to approve shall be the GM incharge of execution of the project. RECEIPT OF MATERIALS/SERVICES Department/Unit/Location receiving materials/services 1. When materials are received or jobs completed, ensure that the quality, quantity and other specifications are met by the supplier/contractor. Where necessary and feasible, get the materials/jobs inspected by the Inspection Group/third party. Reject the off- specification materials. Report variations in quality, quantity, specifications, delivery schedule, etc. to the concerned Purchasing Authority for appropriate action against the supplier/ contractor. Enter the quantities of each item received on the Materials Received Report (Authority to pay) copy of the Purchase Order in the appropriate columns against "Total Received". Sign the Material Received Report against the caption "Above noted quantities received". The officer, while signing the MRR, will append his name and designation also. Route Material Received Report to Disbursement Section/Paying Authority.
C.4.b
D.
2.
3.
4.
5.
Partial Deliveries As a general policy, partial deliveries shall not be permitted. If, due to special circumstances, partial deliveries are permitted, the following procedure should be adopted: 1. On receipt of partial delivery of quantities/ services against a Purchase Order, make the first acknowledgement in the Material Received Report (Authority to Pay) Copy of the Purchase Order. Indicate Partial Receipt No. "A" after the serial number and route to Disbursement Section. Retain an extra copy of Purchase Order for quantity control purposes. For subsequent partial receipts, prepare a set of Material Received Report Partial Receipt, in triplicate by transcribing on to it Order No. and date, supplier's name and address, description of item, quantity ordered and unit, from IV:51 Systems & Procedures HPCL, Mumbai
2. 3.
the extra copy of the Purchase Order. Indicate Partial Receipt No. B, C, D, etc., after the serial number. 4. For products and packages (for which brand codes are assigned), indicate the Stock Batch Control Number on Material Received Report - Partial Receipt (Quantity Record) to which it is attached. Route the Material Received Report (Authority to Pay) copy to Disbursement Section and Material Received Report (Accounting Department - Quantity Record) under cover of Stock Batch Control for accounting of receipt of merchandise stocks. Retain Material Received Report Originating location copy. Partial Receipt (Quantity Record) i.e.
5. E. E.1 E.1.a
PAYMENT: Disbursement Section/Paying Authority Advance Receive Disbursement Section copy of the Purchase Order and retain in a numerical file. Make advance payment, if specified in the Purchase Order, as per terms which have been duly approved as per LAM and charge to the relevant A/c or Appropriation, as the case may be. Obtain bank guarantee where applicable before release of the Purchase Order. Make a notation of the details of the advance on the Purchase Order copy. Adjust the advance at the time of final/part payment; if the advance is 100%, then adjust it against bills and Material Received Report (MRR) and charge to the appropriate account. Payment of Bills against Purchase Order Receive Disbursement Section copy of the Purchase Order and retain in a file. Receive MRR/Partial MRR from the user department/unit/location duly receipted by the authority, if any, specified on the P.O. or by the Division Head /Location In-charge or his duly authorised officer. Ensure that the MRR/partial MRR relating to work on service and construction contracts is certified by the Engineer/Supervisor in charge of the work in addition to the other designated personnel as mentioned on the P.O. This is important especially when payment is made periodically based on the progress of the job. The certifying authority shall make sure that documents as specified in the Purchase Order are obtained from the vendor and verified. MRRs to be released by concerned Materials Dept./User Dept./ Receiving Dept. Imediately on receipt of materials after procedural compliance. In case of bills of contractors, the approving authority in the User Dept. shall approve the bills immediately on submission thereof after procedural compliance. IV:52 Systems & Procedures HPCL, Mumbai
E.1.b
E.1.c E.1.d
E.2. E.2.a E.2.b
E.2.c
E.2.d
E.2.e
E.2.f
Receive bills from the vendors direct or through the user department/ unit / location. If bill is received through the User department/unit/ location, the User department/ unit/ location will attach MRR (either partial or full) alongwith the bill. Verify the bill with the MRR and the Disbursement Section copy of Purchase Order for quantity, rates, etc. the
E.2.g
E.2.h
Check for other items such as financial limit, time factor and delivery, deduction towards materials supplied by the Corporation such as cement, steel, power taxes & levies etc., and ensure that these are in line with the terms of the Purchase Order. Check for deduction of retention money. Deduct Income Tax as specified by Income Tax Rules, if applicable. Prepare Income Tax Deduction Certificate in duplicate. Prepare applicable Tax Certificate(s) for local/central tax on materials consumed, when required. Prepare payment order and obtain cheque based on the payment order. Exceptions can be made at the discretion of the Unit Head in cases where payment by cheque may cause hardship to small vendors. Forward the cheque, Income Tax Certificate and Sales Tax Certificate to the party. Post the cheques in the numerical control of Purchase Orders by Purchase Order Series. Indicate the payment details on the Disbursement Section copy of the Purchase Order. Payment terms : - User/Materials/Finance to ensure that all documentation are completed to ensure release of all payments within 15 days of the receipt of bill by HPCL. Applicable for Rate Contracts & Supply items: 75% of the bill amount duly recommended by consultant / user shall be paid in 7 days of receipt of bill. Balance 25% to be paid after verification / certification in 15 days of receipt of bill. In any case, the final bill payment should not exceed 30 days.
E.2.i E.2.j E.2.k E.2.l
E.2.m
E.2.n E.2.o
E.2.p E.2.q
Note: The Consultant/User/Finance whoever may be receiving the bill first, from the contractor shall acknowledge it for the date of receipt. It is this date from which the stipulated
number of days as mentioned above shall be reckoned. Progressive/stagewise payment terms are permissible in the case of : -
IV:53
fabrication/erection of specific items viz. towers, exchangers, drums, transformers, compressors, HT/LT panels etc. (other than bought-out items) AND where the delivery period is in the range of over 8 months or cost is greater than Rs. 50 lacs, provided these terms have been spelt out in the LPR/tender enquiry as follows: For e.g. 10% - payment against drawing approvals 20% - payment against identification of materials 60% - payment within 30 days after receipt of material or running account payments 10% - payment after submission of performance Bank Guarantee.
Payments held up against delayed Performance test runs, on account of HPCL, to be released within a certain time frame against BG, which should be spelt out in the tender. E.2.r Payment against modvatable documents submitted by the contractor/supplier shall be only if these documents have been found acceptable by local Central Excise Department. The total amount payable against the modvatable documents would not exceed the amount considered for the purpose of evaluation of the purchase price and incorporated in the purchase order. Payment of Bills against purchases without Purchase Order. User Department Purchases within the monetary limits stipulated from time to time can be made without Purchase Requisition/Purchase Order. However, purchases of materials of the following nature by the User, are not normally allowed. (Such items should be purchased through the Purchasing authority at HQO/Refinery/Zonal/Regional Office/Terminal with the approval of Divn./ Dept.Head.) Office machines/equipment/furniture Warehouse material Stationery without having any serial number control can be procured/stored at Zonal offices for issuance to various locations under Zones, for having more operational flexibility and effective control against budget.
E.3
However, stationery having serial number control will be designed by S&P Division, HQO. Printing of such forms having a relevance to systems pertaining to All-India activity can be made at Zones for storage/ issuance under the guidance/advice of S&P section, HQO.
IV:54
E.3.a
Purchases without Purchase Requisition Refer Clause 11.1 - Miscellaneous Purchases Mega Projects of the LAM. of Chapter VI - Purchase/Disposal &
On receipt of bill for purchases without Purchase Requisition, affix a rubberstamp having the following blocks in a suitable space on the bill (either on the face or on the reverse), without defacing the particulars of the bills : Accounting Code Material Code Quantities (A/c 021) Terms OK Rates OK Goods received/bill unpaid Due Date Extension/totals OK Payment particulars
Indicate the accounting code to which the amount is to be charged, complete all other relevant blocks on the rubber-stamp impression and obtain approval as per LAM. Forward the bill to Disbursement Section/Paying Authority for passing it for payment.
E.3.b Purchases with Purchase Requisition but without Purchase Order Refer Clause 11.1 - Miscellaneous Purchases Mega Projects of the LAM. of Chapter VI - Purchase/Disposal &
Purchases are to be restricted to the Functional areas only User Department/Office/Location Prepare Purchase Requisition and obtain approval. On receipt of the bill, certify on the bill that the materials have been received in good condition/services carried out satisfactorily. - Forward the bill, along with the Purchase Requisition, to Disbursing Authority after obtaining Functional approval from Purchasing Authority not below the S/G `D'.
IV:55
Purchase Authority On receipt of the Purchase Requisition from the user Department/office/location, place the order on the selected vendor either verbally or by means of a Letter Purchase Order, if insisted upon by the vendor.
Disbursing Authority F. Ensure that the bill has been certified by the user department/office/location. Ensure that the bill is supported by a duly approved Purchase Requisition. Make payment by cheque.
EMERGENCY PURCHASES Definition of emergency procurement : Procurement in the event of a critical situation which could result in heavy loss or suspension of operation and where normal norms of purchase procedures cannot be resorted to as time is the most critical factor. The approving authority shall review the justification given in the LPR to ensure that the justification is adequate to warrant classifying the purchase as emergency procurement. In such situations of established urgency as stated in MOP&NG Circular No. C-25011/25/2003-Vig. limited tender may be resorted to. In case of critical situations requiring emergency purchases, any one of the following three alternatives may be followed : a. Refer to Standing Purchase Orders, if any, and carry out the work at the rates stipulated therein. Avail the service of Vendor(s) selected out of a minimum of three bids. Avail the service of manufacturers or suppliers in respect of equipment. their authorised dealers/agents/
b. c.
In situations where even the above steps are not feasible, the head of the department/ unit, can, at his discretion, take whatever steps he may choose to meet the emergency. In circumstances, where there is heavy damage requiring large outlay of funds for repairs, etc., the concerned Director, after taking cognizance of the situation, may appoint a separate Purchase Committee to deal with it expeditiously. The users/special committee should substantiate the expenditure of such emergency purchases giving details of jobs carried out (including quantities where applicable), manpower deployed, regular and overtime hours worked, rates paid, equipment hired, etc. They should also explain reasons for the emergency purchases as also the basis for selection of the Vendor/Contractor for awarding the job in the form of a file note. Emergency purchases should be regularised by obtaining ratification as per Purchase Procedures. The following requirements should be complied with to regularise emergency purchases: Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008 IV:56 Systems & Procedures HPCL, Mumbai
a)
User department/location which has made the emergency purchase should originate a Purchase Requisition giving usual information and, in addition, the following details: Why was the emergency purchase made? Whether the Vendor was selected through bid procedure; if not, the basis for selection. Basis for establishing the rates and a certification that the rates are reasonable. Any other relevant information in support of the emergency purchase.
b)
Purchase Requisition should be approved by Department Head as per the LAM and assigned a serial number as per the procedure. The Supplier/Contractor should be asked to submit the bill in duplicate to the user department/location. The user department/location should obtain approval of the bill duly supported by the LPR. Further, Functional approval should be taken from the Purchasing Authority as provided in the LAM. The Purchasing Authority will give Functional approval of the bill and retain the Purchase Requisition on his records. The bill duly approved will be forwarded to the concerned Accounting/Disbursement Section for payment under advice to the user department/location. The post-facto Purchase Order need not be placed unless the supplier/ contractor insists on a formal Purchase Order.
c)
d)
e)
G.
FIELD PURCHASES Purchases at Zones/ROs/Terminals will be conducted on the same lines as spelt out in the above chapters, subject to the authority being exercised as per the Limits of Authority Manual. The prescribed form of field purchase orders should be used in this regard so as to seggregate the same from the purchase orders issued by Purchasing Authority at HQO/Refineries.
INTEGRITY PACT Effective 1st September, 2007, all tenders and contracts shall comply with the requirements of the Integrity Pact (IP) if the value of such tenders or contracts exceed Rs.1 crore. Failure to sign the Integrity Pact shall lead to outright rejection of bid. Integrity Pact (refer Annexure - 17) is a Pact between HPCL (as a purchaser) on one hand and the prospective bidder/contractor (vendor) on the other hand stating that the two parties shall make certain commitments to each other in regard to ensuring transparency and fair dealings in the purchasing activities of the Corporation.
IV:57
All Purchase Departments shall incorporate the following as part of the tender documents : A suitable Clause to form part of the tender document as mentioned below (H.3) H.1 Agreement to be handed over\signed at the time of sale of tender documents to the vendors as per Annexure - 16. Where the tenders are downloaded from the Net, this Agreement shall be a precondition to the downloading of the tender documents. Integrity Pact (IP) form (Annexure - 17) to be received from the bidder duly signed along with the technical bid. IP Clause to be included in the Tender / Bid Documents Integrity Pact (applicable for cases above Rs.1 crore) The Integrity Pact duly signed by the authorized official of HPCL and the Contractor, will form part of this contract / supply order. Proforma of Integrity Pact (which is issued along with the bidding document Annexure - 17) shall be returned by the bidder along with technical bid, duly signed by the same signatory who signs the bid i.e. who is duly authorized to sign the bid. All the pages of the Integrity Pact shall be duly signed by the same signatory. Bidders failure to return the Integrity Pact along with the bid, duly signed, shall lead to outright rejection of such bid. If the Bidder has been disqualified from the tender process prior to the award of contract according to the provisions under Integrity Pact, HPCL shall be entitled to demand and recover from bidder Liquidated damages amount by forfeiting the EMD/Bid security (Bid Bond) as per provisions of Integrity Pact. If the contract has been terminated according to provisions of the Integrity Pact, or if HPCL is entitled to terminate the contract according to provisions of Integrity Pact, HPCL shall be entitled to demand and recover from the Contractor liquidated damages amount by forfeiting the Performance Bank Guarantee / Security Deposit as per Integrity Pact. I Grievance Redressal Mechanism: In line with instructions received from MOP&NG, a Greievance Redressal Mechanism for parties participating in HPCL tenders has been developed which is enclosed as Chaptder - VIII and is also available on the Corporations website. The Greievance Redressal Mechanism should be followed in the event of any representation received from the parties to the Corporations tenders. All tender documents shall contain a clause indicating the availability of the Greievance Redressal Mechanism for parties participating in the tender.
H.2.
H.3
IV:58
CHAPTER IV-A SECTION:A - MEGA PROJECTS DEFINITION : A Mega Project is one which involves : Project cost exceeding Rs.600 Crores Carried out at a single location/unit.
SPECIAL PROVISION/PROCEDURES AS APPLICABLE TO MEGA PROJECTS ARE BEING SPECIFIED IN THIS SECTION IN ORDER TO EXPEDITE AND ENSURE TIMELY COMPLETION OF THE PROJECT. FOR ALL OTHER ITEMS REFERENCE SHOULD BE MADE TO THE OTHER SECTIONS OF THE PURCHASE MANUAL. FOR PURCHASE ORGANISATION - COMPOSITION OF BIDS COMMITTEE/ CONTRACTS COMMITTEE REFER ANNEXURE - I, CHAPTER II OF THE PURCHASE MANUAL. Items marked as have been approved by the Board at the 492nd Board Meeting held on April 07, 2005. PROVISION OF COST ESTIMATE: FOB / Delivered cost of the material / job is required to be estimated. However such estimates will not be made for bulk items of a value less than Rs.50 lakhs. Such orders will not be on nomination basis /single offer. LIQUIDATED DAMAGES CLAUSE: In case of Mega Projects, on a case to case basis, approval of the GM-In-charge of the Project may be taken on the LPR for increasing the liquidated damages from the maximum of 5% to 15% of the total contract value. BONUS CLAUSE: Bonus clause upto a maximum of 10% of the order value for all packages/items/contracts falling on critical path may be offered. It has to be ensured that in each case of the bonus, it will be equal to or less than the liquidated damages. HPCLs scope of work in each tender and the quantum of bonus will be specified in the tender itself. REVISION PUR-017/13.06.2007
_____________________________________________________________________________ Chapter IVA (Mega Projects) IVA.1 Systems & Procedures Purchase Manual HPCL, Mumbai
TYPES OF TENDERS: LIMITED TENDER: In case of tenders of equipment or supplies, procurement shall be through limited tender irrespective of value, basis known sources with HPCL / available from the Project Consultants. Tenders for contracts with a value upto Rs. 1000 lakhs shall also be through limited tender. In case of items of special nature where specific expertise/credentials are required and if six vendors are not available, prior approval from the GM-Incharge. shall be sought for floating of enquiries to less than six vendors. Justification should be provided on the LPR. PUBLIC TENDER: Tenders for contracts shall be invited by public advertisement in the press where the value of contract exceeds Rs.1000 lakhs (Rs.10 Crores). OPENING OF TENDERS : While opening bids which are in the Consultant's scope and when consultancy organistion is in the Public Sector, such openings of the tenders shall be witnessed by the Personnel from Consultant's organisation and should include the Finance Functionary. NET WORTH : Vendors / contractors with negative net worth will not be considered barring PSUs approved by PMC and / or HPCL. HOLIDAY LIST OF PMC : Enquiries are not to be issued to vendors on HOLIDAY list of PMC or whose performance in the recent refinery sector projects under implementation was far from satisfactory. If a
vendor/contractor is put on HOLIDAY during evaluation process, the rejection of offer can only be resorted to with concurrence of HPCL. REVISION PUR-011/07.04.2005
SENSITIVITY ANALYSIS: Prior to finalisation of any order involving works contract, sensitivity analysis of +/- 25% will have to be carried out and the Purchase Order will be placed on the lowest vendor. If the vendor does not remain the lowest, as per the sensitivity analysis, the vendor would be asked to match the lowest offer. In case the vendor does not accept the offer and overall value of the bid does not exceed 120% of estimated cost, approval from the same approving authority as per LAM shall be obtained, if it exceeds 120%, then project authority shall provide / obtain justification from project consultant and place the proposal for the consideration of the same Approving Authority as per LAM. No further sensitivity analysis will be carried out once an order is placed. PAYMENT TERMS: Progressive/stagewise payment terms are permissible in case of : FOR SUPPLY ITEMS : Fabrication/erection of specific items viz. towers, exchangers, drums, transformers, HT/LT panels etc. (other than bought out items) AND Where the delivery period is in the range of over 8 months or cost is greater than Rs.50 lakhs.
Provided these terms have been spelt out in the LPR/Tender enquiry for e.g: 10% - payment against drawing approvals 20% - payment against identification of materials 60% - payment within 30 days after receipt of material or running account payments. 10% - payment after submission of performance Bank Guarantee FOR CONTRACTS : 75% of the bill amount duly recommended by EIL/HPCL shall be paid within 7 days of receipt of bill. Balance 25% to be paid after due verification / certification within 30 days of receipt of bill. Payment terms to be mentioned in the Tender enquiry.
MOBILISATION ADVANCE : Advance upto 33-1/3% shall be approved by the same authority approving the order placement with Bank Guarantee and interest which will be at SBI PLR + 1% (as will be advised by Treasury Dept. HQO). Tender enquiry should indicate this for the information of Bidders. REVISION PUR-011/07.04.2005
NEGOTIATIONS : APPOINTMENT OF NEGOTIATING TEAM : The authority to appoint the Negotiating Team will be the same authority who approves the tender as indicated above. In the case of Committees, the authority to appoint the team vests with Chairman of the respective Committee. VARIATION: Where the acceptable lowest offer is within +/- 20% of estimated cost, no negotiation will be carried out. Where the acceptable lowest offer exceeds 120% of the estimated cost even after negotiation, project authority shall provide / obtain justification from the project consultant and place the proposal for consideration of the same approving authority as per LAM. In cases where for few items quoted price is abnormally higher than estimated cost then no further negotiation will be carried out for items where individual cost does not exceed 2% of the total Material Requisition cost. UNWORKABLE OFFER : If L1 offer is unworkable and recommended by user dept. / Project Management Consultant, same to be rejected immediately and re-floating to be done within a short time period for quotations excluding the party whose offer is unworkable. In such a case, enquiries shall be sent to : a. b. the remaining techno-commercially acceptable bidders from whom the quotes have been received. where (a) has resulted in a single tender, enquiries shall also be sent to other parties
Alternatively, order can be placed on L2 vendor subject to user dept. / consultants recommendation after CVC guidelines are suitably modified.
REPEAT ORDER: Repeat Order on Materials/services which have been received in the recent past can be placed within one year, on recommendation of user dept. / Project Consultant. This can be placed even before the earlier order is completed subject to value limit of individual items being not more than Rs.1 crore and quantity not more than 100%. Consultant / user dept., to confirm that there is no downward price trend for the items recommended for repeat order. SCRAP DISPOSAL : Where existing facilities/ tanks are to be dismantled, such tenders may include dismantling and taking away the scrap thus generated so as to deal with the project in composite manner The purchase requisition value for the purpose of determining approving authority shall be taken as the aggregate value of cost of dismantling/repair and estimated realizable value of the scrap generated. No separate RFD shall be processed in such cases When segregation / weighment / removal from the position is not possible, debris / scrap to be sold on as is where is basis without weighment etc. through Public Tender REVISION: PUR-029/10.07.2008)
SECTION : B - VREP - II MEGA PROJECT ONLY In case of CDU/VDU/VBU for Civil jobs by Rashtriya Ispat Nigam Ltd.: Following actions were recommended/approved to expedite civil jobs by the vendor-M/s.RINL: a) Existing Rates of Contract of RINL shall be revised upward suitably after detailed scrutiny and negotiation with the party (by the proposed permanent negotiating team at VR) upto a ceiling of 7.5% in case schedule is advance by a clear one month and 15% in case schedule is advanced by a clear two months or more. The amount due consequent to revision in rates shall be paid after the advancement by one month or two months, as the case may be after the completion schedule has been achieved. RINL shall advance the schedule by a minimum period of two months. In the event of RINL's failure to meet this agreed schedule, revision in rates mentioned above will not be paid. Performance of RINL shall be monitored for 1-1 1/2 months and if it is not found satisfactory then the revised rates will not be applicable. Simultaneously, Action Plan to be kept ready for off-loading the critical jobs, in the event of RINL's failure to perform satisfactorily during the period of monitoring and such off-loading will be done at the risk and cost of M/s.RINL as per the existing contract. After negotiation, a proposal would be forwarded for necessary management approval.
b)
c) d) e) f)
g)
In case of FCCU/MEROX/BBU/SRU : PURCHASE PROCEDURES : I) BIDDING : All enquiries for equipment/contracts shall be made on a Limited Tender Basis as per the updated masterlist/vendorlist prepared by EIL after due scrutiny and approval by HPCL to reduce ordering time. Enquiry are not to be issued to Vendors in `HOLIDAY' list of EIL or whose performance in the recent refinery sector projects under implementation was far from satisfactory. If a vendor/contractor is put on `HOLIDAY' during evaluation process, his bid will not be pursued further. Vendors/contractors with negative net worth will not be considered. II) DELIVERY PERIOD Delivery period shall be the essence of the contract. However, in order to ensure active participation/ competition, the parties quoting delivery period upto 20% more than the stipulated delivery period shall also be considered. This will be for internal evaluation only and will not be specified in the Tender. In case any of these parties is found to be the most competitive bidder, they should be asked to match the stipulated delivery period.
III)
BONUS/PENALTY CLAUSE : Bonus/Penalty Clause shall be included for items falling on the critical path. A list of such items will be furnished to CFD for approval, along with justification, HPCL's scope of work in each tender, and quantum of Bonus/Penalty. This shall be specified in the Tender itself. Bonus & Penalty clause can be offered to bidders of lumpsum turnkey (LSTK) packages of DHDS projects with ceiling as under:- A penalty of 1% per week or part thereof subject to a maximum of 10% of the contract value and similarly a bonus of 1/2% per week or part thereof subject to a maximum of 5% of the contract value.
GENERAL : NEGOTIATION/RATIONALISATION : VARIATION IN COST ESTIMATE : Acceptable variation between ÈIL Cost Estimate' and `lowest quoted price' shall be revised to 20% from the existing 10% to avoid loss of time in negotiation/rationalisation In case of variation upto 20% (instead of 10% as existing now) of overall Contract value negotiations will not be carried out and orders will be placed on the lowest bidder, as the Tenders are floated prior to completion of detailed engg. Sensitivity analysis for all items of the Contract shall be carried out for +/- 20%. Rationalisation of item rates, if necessary, shall be carried out. PERMANENT NEGOTIATING TEAM : A permanent Negotiating Team will be constituted as given in LAM for Mega Projects : a) wherever C&MD's approval is required for nominating a Negotiating Team, the constitution will be as follows : Chairman - GM-Projects Member - DGM-Finance Secretary - Ch.Materials Manager (Projects) b) Whenever Director (P) and Director (F)'s joint approval is required for nominating a negotiating team, the permanent negotiating team will be as constituted for case (a) above. Similarly, where approval required is that of Director-P, the team will be as follows : Chairman - DGM-Projects Member - Ch./Sr.Manager-Finance Secretary - Sr.Manager (Materials) PURCHASE PREFERENCE For procurement of structural steel : Procurement of structural steel shall be made from three principle manufacturers viz. TISCO, VSP and SAIL only on competitive bid basis. Award of order on nomination basis : Award of order for columns/vessels, exchangers may be considered on nomination basis on BHPV to save ordering time, transportation time etc.
c)
PAYMENTS TERMS A) FOR FABRICATED ITEMS : Payment terms for fabricated items like columns, exchangers etc. to be as follows : - 10% advance against LOI/FOI against Bank Guarantees - 10% against approval of drawings - 20% against receipt of material at fabricator's shop - 20% progressive payment during manufacturing against identified milestones and - 40% on completion, of which - 30% on receipt of material at HPCL site (within 30 days) - 10% against Performance Bank Guarantee B) Others - Running Bills : - 75% of the bill amount duly certified by EIL and HPCL shall be paid within 7 days. - Balance 25% to be paid after due verification/certification within 30 days. PERFORMANCE BANK GUARANTEES Performance Bank Guarantee shall not be sought for the bulk material like pipes and pipe fittings etc. (excluding valves). AUTHORITY TO EIL ON TRANSPORTATION & CUSTOM ACTIVITIES : The following are the authorities to EIL - Chennai on transportation and custom activities : a) b) c) To operate an account for an amount of Rs.10 lacs towards clearing consignment of small value from customs. This would exclude transportation. To operate HPCL funds towards payment of customs duty of the consignment. To give purchase preference to PSUs, prior to forwarding of techno-commercial recommendation.
SECTION : C - DHDS MEGA PROJECTS ONLY (VR/MR) BIDDING Enquiries to be made on limited tender basis as per the latest updated vendor list prepared by EIL. Enquiry will not be issued to vendors/contractors on `Holiday' list of EIL or whose performance in the recent refinery sector/projects under implementation was far from satisfactory. If a vendor/contractor is put on `Holiday' during evaluation process, his bid will not be pursued further. Vendors/contractors with negative net worth will not be considered. RATE CONTRACT Rate contract for indigenous bulk material by assuring certain quantum to various vendors and procurement from time to time for requisite quantity on Rolling MTO basis. OPENING/ESTABLISHING VALIDITY OF TENDERS : OPENING OF BIDS : EIL is authorised for opening of "priced bid" after the in-house approved technical bid analysis (in techno-commercial evaluation) with association of HPCL representative/s. In case if three technically acceptable vendors emerge after the technical bid review, then in order to reduce evaluation time, further technical queries from other vendors need not be sought. Basis this, it is decided that even if 3 technically acceptable vendors emerge, one TQ would be sought to explore the possibility of qualifying additional vendors. Multiple TQs would be sent, if only a single acceptable bid arises. PAYMENT TERMS Payment terms to vendors/contractors to be linked with salient milestones in order to ensure timely delivery. PURCHASE PREFERENCE For HPC-VR only on BHPV on nomination basis : Award of order for columns, vessels and exchangers may be considered on nomination basis on BHPV to save ordering time, transportation time and thus cost. DELIVERY PERIOD Delivery period shall be the essence of the contract. However, in order to ensure active participation/ competition, the parties quoting delivery period upto 20% more than the stipulated delivery period shall also be considered. This will be for internal evaluation only and will not be specified in the Tender. In case any of these parties is found to be the most competitive bidder, they should be asked to match the stipulated delivery period.
REPEAT ORDER Repeat Order can be placed on the same party provided the following conditions are fulfilled : Repeat Order can be placed within a year of the date of placement of earlier order, to have greater flexibility Quantity that can be repeat ordered for an item shall be limited to 300% of the original quantity subject to the overall value ceiling of the original purchase order. The condition of `receipt of material at site' is withdrawn since long delivery items cannot be repeat ordered. Consultant should guarantee performance. Consultant should also guarantee that prices have not gone down in the interim period.
MOBILISATION ADVANCE A mobilisation advance of 10% can be paid against Bank Guarantees since tender values are likely to be high and also since heavy equipment mobilisation is involved. This clause is to be included in the enquiry/tender document itself indicating 10% mobilisation advance in the payment terms. EXTENSION OF BID DUE DATE : Extension of bid due date, if required, will be given by EIL on the next working day after the due date, since EIL can establish the receipt of the number of bids only on the next working day after the bid due date. RETENTION MONEY As the Contract Value of Mega Project is high, 10% of the total value in the form of Bank Guarantee before execution of the job as Retention Money can be taken. This would facilitate better cash flow situation to the vendor and enable effective mobilisation for the job. GENERAL : For items that are required for both VR and MR while opening the tender for one location, price should be negotiated for the other location also so that price benefit could be achieved. where feasible, global tender should be placed for procurement of items on competitive basis. Project authority should ensure that Bank Guarantees given by the parties are current.
CHAPTER IV-B e-Procurement
e-procurement will be an acceptable method of procurement. The steps to be carried out on e-procurement portals/software will generally be as follows: a. b. Floating tender and Receiving bids in soft form. Opening of unpriced bids electronically by designated officers, in system in secured mode. Electronic opening of priced bids or use of reverse auction methodology to establish prices , with techno commercially acceptable bidders. System generated bid analysis.
c.
d. 2
In case of e - procurement the following clauses read in conjunction with other provisions of the Purchase Manual will apply : a. All communication done with vendors in soft form will be acceptable and considered valid, including Tender enquiries/NIT/RFP sent to prospective vendors, responses received as Tenders/Proposals from bidders and communications during the tendering process. No hard copy confirmation will be required for the same, provided the same is properly authenticated by suitable means like digital certification etc. Since there will not be any hard copy of the tenders received, the opening of the bids on due date and time will be in the system with access passwords to the designated officers. Tender opening can be witnessed by participating bidders through remote logins to the system. Reverse auction will be an acceptable method for determining prices on tenders. In case reverse auction methodology is to be followed for determining the prices the same to be decided by Purchasing authority with Finance concurrence before opening of price bids with adequate advance notice to the parties. In such cases price bids obtained before reverse auction will not be opened. If applicable, valid EMD received by HPCL or their service provider, either thru electronic receipts or other acceptable means, on or before the due date/ time will be considered as if the same is received with the Bid. For a particular tender, submission of the bids will be either completely on electronic mode or completely on manual mode meaning some vendors on manual and others on electronic mode for the same tender, shall not be acceptable .
b.
c.
d.
e.
_____________________________________________________________________________ Chapter IVB (e-Procurement) IVB.1 Systems & Procedures Purchase Manual HPCL, Mumbai REVISION : PUR-016/27.03.2007
f.
In case of reverse auction, prices of various bidders and L1 bid will get established only at the conclusion of reverse auction event. However in case, reverse auction option is not exercised then L1 bidder will be established based on the priced bids obtained and relevant CVC clauses related to negotiation will apply. e tendering and reverse auction can be operated as mutually independent events for the same tender meaning it will be acceptable to go for : i reverse auction on e procurement portal for a bid which is called in manual mode provided price bids are not already opened or to go for face to - face negotiations with L1 bidder electronically called bid subject to CVC guidelines. for an
g.
ii
h.
Till the time, e procurement is made mandatory for all the tenders, decision to follow manual or e tendering mode will rest with individual purchasing authorities. Audit trails and system logs to be maintained for all transactions on the e procurement portals/software during complete tendering process. Historical records for required number of years to be maintained in soft form with adequate data backup, recovery and archival.
i.
j.
_____________________________________________________________________________ Chapter IVB (e-Procurement) IVB.2 Systems & Procedures Purchase Manual HPCL, Mumbai REVISION : PUR-016/27.03.2007
CHAPTER V FOREIGN PURCHASES A. RESPONSIBILITY The Materials Department, Mumbai / Visakh Refineries and VVPL Project are responsible for obtaining import licenses and to make all foreign purchases based on Purchase Requisitions received from user Departments/Units. Foreign purchases of individual SBUs will be handled by respective Purchasing Authorities of the SBUs. Approval will be taken on the basis of the amount and will be approved by the appropriate Committee i.e. Bids Committee, Contracts Committee, Executive Committee or CFD. In respect of Corporate items, foreign purchases will be handled by the Purchase Dept. in Petroleum House and will be approved on the basis of the amount by the appropriate Committee i.e. Bids Committee, Contracts Committee and CFD. Foreign purchases, if any, pertaining to Zones will be handled by the respective SBUs at HQO in their area of operation. For instance, Foreign purchases of items pertaining to LPG-Zone will be handled by the Purchasing Authority of LPG SBU. The following points will also have to be considered by the Purchase Departments of the respective SBUs and Corporate Office : 1) Maintaining and updating the vendor data base shall be done by the Individual SBU. A six monthly review and updation of the foreign vendor list shall be made which will be approved by the respective Contracts Committee of the individual SBU's. The respective Contracts Committee of the individual SBU's shall certify that the list of foreign vendors for any item which is proposed to be procured is adequate and exhaustive; otherwise the tender shall be floated on a global basis. Each Refinery/SBU/Dept. should consult the other Refinery/SBU/Dept. about rate and performance of similar items imported by them. 2) Opening of L.C. and payment thereof based on Purchase Order/Sales Agreement from SBU shall be done upto Rs.4 crores by the respective authorities as stated in Clause 7.5.a on Page 3 of Chapter IV-Finance of the LAM in co-ordination with Banking Division, HQO and above Rs.4 crores by the Banking Division, HQO as per Clause 7.5.b on Page 3 of Chapter IV-Finance of the LAM,.
_____________________________________________________________________________ Chapter V (Foreign Purchases) V.1 Systems & Procedures Purchase Manual HPCL, Mumbai
In view of the above, foreign purchases are to be handled as under : Materials Dept., Mumbai Refinery For Mumbai Refinery Materials Dept., Visakh Refinery Purchase Dept. - a) Respective SBUs in HB For Visakh Refinery For respective SBUs and items pertaining to Zones. For Project & Pipelines For Corporate items
b) Project & Pipelines in HB Purchase Dept., PH B. a) TENDERING -
Tender should be invited directly from manufacturers either through Limited Tender or through Global Tender. Chief Materials Manager can approve import of canalised items through sources like State Trading Corporation and Steel Authority of India Limited, without any value limit. In respect of purchases of materials including plant, machinery, equipment, steel plates, etc., from foreign suppliers, tender enquiries/documents, including notice, whether through Limited Tender or Global Tender, should clearly indicate that the foreign suppliers should forward their quotations directly to the specified officer named in the Tender Notice. Tender Notices should also specify that quotations should be sent in sealed envelopes duly superscribed "Quotation against Tender Enquiry No. ......... due on ........... ". In case of urgency, the quotations may be conveyed over the telex/fax to the specified officer on or before the stipulated date. The same shall be followed by a confirmatory letter from the party. In the liberalised economic environment, foreign suppliers are operating through Indian representative(s) either under joint venture arrangements or on commission basis. It will be necessary for the foreign bidder to identify and disclose alongwith copy of the agreement, the Indian representative, while responding to the tender. Information on such arrangement should be submitted to the C&MD. At a later stage, before entering into the contract, the Indian representative can be allowed with the approval of C&MD. Tender conditions for imported items should contain a standard stipulation that tender should be submitted directly and not through the Indian representative. Commission payable shall be paid in Indian rupees only in compliance with FERA, 1973. Suitable clause should be incorporated to provide in the contract, that in the event of any breach or default on the part of the supplier to disclose the agency arrangements in India, there would be a penalty of banning business dealings and also payment of specified sum.
C.
FINANCIAL ASSISTANCE FROM OVERSEAS SUPPLIERS The possibility for obtaining financial assistance from overseas suppliers should be explored through the areas detailed below (wherever the value of the Purchase Order is Rs. 1 crore or over) : (1) (2) (3) (4) Supplier's credit Credit from Export financing agencies Credit from Export Credit and Insurance Institutions Government to Government Credit/Aid
For this purpose, the following clauses should be included in the tender documents: "Please indicate the details of the terms and conditions under which such credits would be available and also enclose a copy of the official document offering such credits as well as the procedure for availing the credit." "In case the above credits are not available for full value of the tender, please indicate the percentage upto which the credits are available." "In case any financing fee/commission is payable by the purchasers over and above the interest rate, please specify and give details." D. BANK GUARANTEE FOR BID EARNESTNESS In the case of overseas tenderers, submission of a Bank Guarantee issued by a reputed international bank should be stipulated.
#
All foreign bank guarantees will be confirmed by a bank located in India acceptable to the Corporation EVALUATION/APPROVAL OF TENDERS - Where quotations are received in foreign currency, exchange rates prevailing on the date of opening of tender shall be considered in evaluating quotations. For approval of tenders normal procedure should be followed.
E.
F.
The Arbitration clause as given in Annexure 6 shall be incorporated while entering into all contracts with foreign companies so that the Govt. of India will not be unnecessarily brought into the picture.
ANNEXURE - 1 CHAPTER VI ANNEXURES (Refer Clause B of Chapter II on Page II.6) EXCEPTIONS TO PURCHASING AUTHORITY'S ACTIVITIES Purchases/services listed below should be handled without Purchase Requisition/Purchase Order : by the concerned departments
Ships' repairs on owners' behalf, chartering vessels, all purchases of crude and petroleum products, purchases of products from other oil companies under purchase/sale arrangement. Hotel/travel arrangements including hire of cars on casual basis. Lease/rental commitments for immovable properties. Daily cash purchases for Dining Room/Canteen provisions and stores for HQO/Zonal/Regional Offices/Terminals/Refinery except when it is desirable to place Standing Purchase Orders. Railway freight, demurrage, air freight and such other statutory levies. Purchase of fuel and motor oils for automotive equipment. Professional services such as legal, Personnel matters, Auditors, Consultants, Advertising Agencies, etc. Utilities such as telephones, electricity, water, telecommunications.
Purchase of Sports equipment. Purchase of Uniforms from units of National Textiles Corporation. Purchase of Air Tickets from IAC/Air India and Private Air Taxi operators on domestic flights. Service contracts for computer system, elevators, air-conditioning, office furniture and equipment, weigh bridges, etc. having proprietary considerations.
_____________________________________________________________________________ Annexure 1 (Exceptions to Purchasing Authorities Activities) Systems & Procedures Purchase Manual VI.1 HPCL, Mumbai REVISED CHAPTER: 23/09/2008
Acquisition/disposal of immovable properties, securities and such investments. (However, the user shall initate action for acquisition/disposal of land only after obtaining specific approval from the authorities as per LAM.) Purchase for sales promotion/customer relations programs. Advertisements. Purchases for Guest Houses, Company Housing, Holiday Homes, Beach Houses, and Social and Recreational Activities controlled by Personnel Department other than those covered by Standing Purchase orders. Hire of Office/Welfare equipment. (Limits as per LAM) Services/charges of Port Trust/Customs authorities. Purchase of books, newpapers and periodicals. (Limits as per LAM) Purchases authorised to be made out of Petty Cash Imprest Advances and Travel Expense Advances. Funds, Special Cash
Purchase of materials/services authorised by Fixed Charge Records. Purchase made on the specific authority of certain approved contracts. Purchases/services for maintenance and repairs of vehicles, upto Rs.5000/-. Printing and publishing the Company's Annual Report. Chapter XII : Co. Secretary) office buildings and company
(For
approval refer LAM,
Expenses relating to matters concerning convening Company meetings/conducting Share Dept. activities viz. printing of dividend warrants and notices, use of outside mailers etc., arising out of Board decisions. (For approval, refer LAM, Chapter XII: Company Secretary.)
_____________________________________________________________________________ Annexure 1 (Exceptions to Purchasing Authorities Activities) Systems & Procedures Purchase Manual VI.2 HPCL, Mumbai REVISED CHAPTER: 23/09/2008
ANNEXURE - 2
(Refer clause A.6 of Chapter IV, A- Requisitioning, User Dept./Unit - Page IV-3)
LIST OF PREFERRED ITEMS
Air-conditioners and spares Refrigerators Forklift spares Tank truck chassis (generally Leyland or Tatas) at government controlled rates. Spares supplied by manufacturers of original equipment. Office equipment and their spares (for the sake of standardisation for ease of use by a number of employees and countrywide services capability of the supplier). Office furniture (for the sake of standardisation for optimum utilisation of office space and appearance). Certain engineering goods for the following considerations: Standardisation for maintenance to cut overall recurring costs and spare parts inventory. Consistency with the available skill of the maintenance staff of the Corporation/gangs used for maintenance. Flexibility for alternative use in plant/installation.
These items would cover a range of service station equipment, air compressors, electric motors, welding machines/rods, safety equipment, pumps, electrical fixtures, standardised stationery like forms used in the computer, canalised imports and supplies from statutory bodies. Purchasing Authority should seek enquiries from from the selected vendors are not available. other sources where suppliers / services
Note : The items to be included in this list will be approved by the recommendation of users/Purchasing Authority.
Contract
Committee
on
_____________________________________________________________________________ Annexure 2 (List of Preferred Items) VI.3 Systems & Procedures Purchase Manual HPCL, Mumbai REVISED CHAPTER: 23/09/2008
ANNEXURE - 3 (Refer item No.A.16 of Chapter IV-Page No. IV.4 under heading "Employee designated ....... Sr.No.) PURCHASE REQUISITION SERIES (PREFIXES) SERIES (PREFIX) DEPARTMENT/FUNCTION CORPORATE
PER
( ( (
Human Resources Development Industrial Relations and Administration Medical Audit C.&M.D. and Directors Corporate Planning & Projects Finance - Corporate Management Systems Corporate Affairs Public Relations Company Secretary Legal Vigilance Management Development Institute, Nigdi Shipping Department MARKETING
( ( ( ( ( GEN ( ( ( ( ( MDI SHP (
ENG FM LPG PUR SAL SOD BPP LPP PAL
Engineering & Projects Finance - Marketing LPG Marketing Purchase Sales Supply, Operations & Disribution Bombay - Pune Pipeline LPG Projects Palam Aviation Station GM'S OFFICES
NZ EZ WZ SZ
North Zone East Zone West Zone South Zone
_____________________________________________________________________________ Annexure 3 (Purchase Requisition Series - Prefixes) VI.4 Systems & Procedures Purchase Manual HPCL, Mumbai
SERIES (PREFIX)
DEPARTMENT/FUNCTION REGIONAL OFFICES
AHM BAN BEL BHO BHU BOM-I BOM-II CAL CHA COC DEL JAI LUC MAD PAT PNA SEC VIS NAG
Ahmedabad Bangalore Belgaum Bhopal Bhubaneswar Mumbai RO I Mumbai RO II Calcutta Chandigarh Cochin Delhi Jaipur Lucknow Madras Patna Poona Secunderabad Visakhapatnam Nagpur TERMINALS
BBM BBV CCN ERN KAN LPM LPV MDM MDV MAH PAH RAM SWM SWV VAS WDM WDV VSH LNI
Budge Budge I Budge Budge II Cochin Ernakulam Kandla Lube Plant I Lube Plant II Madras I Madras II Mahul Paharpur Ramnagar Sewree I Sewree II Vasco Wadala I Wadala II Vashi Loni
SERIES (PREFIX)
DEPARTMENT/FUNCTION
BOMBAY REFINERY } VISAKH REFINERY } as applicable
FGN FAD FMN FMC FMT FWH FOP FTM FTC LGN LMN LMC LFN LTC LTM PGN PFR PVR
Fuels - General Fuels - Administration Fuels - Maintenance Fuels - Maintenance Contract Fuels - Materials Fuels - Warehouse Fuels - Operations Fuels - Technical - Materials Lube - Technical - Contracts Lube - General Lube - Maintenance Lube - Maintenance Contract Lube - Finance Lube - Technical Lube - Technical - Maintenance Projects - General Projects - Fuels Refinery Projects - Visakh Refinery
ANNEXURE - 4
PROCEDURE FOR ENGAGEMENT OF PROFESSIONAL/TECHNICAL SERVICES (INCLUDING CONSULTANCY) EXCLUDING EX-EMPLOYEES OF THE CORPORATION. The Limits of Authority Manual contains financial limits upto which various authorities/committees can exercise authority to engage professional/technical services (including consultants and advisors) for performing specific jobs etc. The procedure to be followed for appointment of consultants is given below: PROCEDURE : The procedure will not be applicable in cases where the consultant appointed is a Public Sector Enterprise or a Government Department. The subject matter is divided into three broad classifications as under : A. Appointment of Consultants for projects costing Rs.5 crores and above. to be
B.
Appointment of Consultants for projects costing less than Rs.5 Crores.
C.
Appointment of Consultants irrespective of the value of the Projects upto a maximum fee of Rs.25 lakhs plus other expenses . PROCEDURE OF APPOINTMENT OF CONSULTANTS PROJECTS COSTING RS.5 CRORES AND ABOVE. issue a pre-qualification advertisement in papers having a inviting bids from the professionals/ consultants. FOR
A.
National coverage,
if the nature of job necessitates getting consultancy vendors/consultants, Global advertisement will be given.
from
foreign
other things being equal, preference will be given to the Indian bidders.
REVISION : PUR- 015/12.10.2006
_____________________________________________________________________________ Annexure 4 (Procedure for Engagement of Professionals) Systems & Procedure Purchase Manual VI.7 HPCL, Mumbai
the advertisement will set forth in clear terms the nature of expertise required, magnitude of the job etc., and the party/parties concerned will be required to furnish precise information with supporting documents in regard to their professional expertise/proven experience on similar jobs. the Contracts committee will act as a screening committee to evaluate the applications received. If need be, a separate screening committee can be appointed by them to assist them in screening and evaluating the applications received. in regard to "Works and Purchase contracts" executed by Projects Group, the authority of Contracts Committee is exercised by concerned General Manager-Projects. In that event, the General Manager-Projects will appoint a suitable Technical Committee to scrutinise the applications. in case of specialised jobs, technical experts from within the Corporation, if available, or experts from outside will be co-opted on the screening committee. tender enquires with complete details will be sent only to those parties who have been shortlisted by the screening committee.
B.
PROCEDURE OF APPOINTMENT OF CONSULTANTS FOR PROJECTS COSTING LESS THAN RS.5 CRORES. the Contracts Committee in the case of HQO/Refinery or the Bids Committee at Zonal Offices, will appoint a screening committee. The Screening Committee after studying scope of the job, the availability of personnel, the local conditions etc. will shortlist consultants. the list will be updated periodically and once in three years a fresh list will be prepared. enquiries with complete details will be sent only to those professionals who have been shortlisted.
COMMON NORMS APPLICABLE TO SECTIONS A AND B ABOVE : selection Manual. will be finalised as per authority provided in the Limits of Authority
an agreement will be entered into with the selected party setting forth in clear cut terms, the jobs to be carried out and the payment terms etc. Alternately a Purchase Order can be placed setting out the terms & conditions.
thereafter, there should be continuous interaction with the selected party. the selected party will be required to submit feasibility report. Only after approval of same a detailed Project Report will be submitted.
C.
APPOINTMENT OF CONSULTANTS IRRESPECTIVE OF THE VALUE OF PROJECTS UPTO FEE OF RS. 25 LAKHS PLUS OTHER EXPENSES.
Appointment of consultants / advisors may be made on single bid basis subject to approval as stipulated in the Limits of Authority Manual, by providing proper justification for recommending single party.
The fee upto Rs.25 lakhs mentioned above does not include expenses like travel, telephone etc., incurred by the Advisors which will be reimbursed separately for which an overall limit would need to be taken and approved.
REVISION : PUR- 015/12.10.2006
ANNEXURE - 5 SPECIMEN # ARBITRATION CLAUSE 1) All disputes and differences of whatsoever nature, whether existing or which shall at any time arise between the parties hereto touching or concerning the agreement, meaning, operation or effect thereof or to the rights and liabilities of the parties or arising out of or in relation thereto whether during or after completion of the contract or whether before after determination, foreclosure, termination or breach of the agreement (other than those in respect of which the decision of any person is, by the contract, expressed to be final and binding) shall, after written notice by either party to the agreement to the other of them and to the Appointing Authority hereinafter mentioned, be referred for adjudication to the Sole Arbitrator to be appointed as hereinafter provided.
The appointing authority shall either himself act as the Sole Arbitrator or nominate some officer/retired officer of Hindustan Petroleum Corporation Limited (referred to as owner or HPCL) or a retired officer of any other Government Company in the Oil Sector of the rank of Ch. Manager & above or any retired officer of the Central Government not below the rank of a Director, to act as the Sole Arbitrator to adjudicate the disputes and differences between the parties. The contractor/vendor shall not be entitled to raise any objection to the appointment of such person as the Sole Arbitrator on the ground that the said person is/was an officer and/or shareholder of the owner, another Govt. Company or the Central Government or that he/she has to deal or had dealt with the matter to which the contract relates or that in the course of his/her duties, he/she has/had expressed views on all or any of the matters in dispute or difference. In the event of the Arbitrator to whom the matter is referred to, does not accept the appointment, or is unable or unwilling to act or resigns or vacates his office for any reasons whatsoever, the Appointing Authority aforesaid, shall nominate another person as aforesaid, to act as the Sole Arbitrator. Such another person nominated as the Sole Arbitrator shall be entitled to proceed with the arbitration from the stage at which it was left by his predecessor. It is expressly agreed between the parties that no person other than the Appointing Authority or a person nominated by the Appointing Authority as aforesaid, shall act as an Arbitrator. The failure on the part of the Appointing Authority to make an appointment on time shall only give rise to a right to a Contractor to get such an appointment made and not to have any other person appointed as the Sole Arbitrator.
2)
3)
4)
______________________________________________________________________________ Annexure 5 (Arbitration Clause) VI.10 Systems & Procedures Purchase Manual HPCL, Mumbai
REVISION (Effective PUR-020/13.09.2007)
5)
The Award of the Sole Arbitrator shall be final and binding on the parties to the Agreement. The work under the Contract shall, however, continue during the Arbitration proceedings and no payment due or payable to the concerned party shall be withheld (except to the extent disputed) on account of initiation, commencement or pendency of such proceedings. The Arbitrator may give a composite or separate Award(s) in respect of each dispute or difference referred to him and may also make interim award(s) if necessary. The fees of the Arbitrator and expenses of arbitration, if any, shall be borne equally by the parties unless the Sole Arbitrator otherwise directs in his award with reasons. The lumpsum fees of the Arbitrator shall be Rs. 40,000/- per case for transportation contracts and Rs. 60,000/- for engineering contracts and if the sole Arbitrator completes the arbitration including his award within 5 months of accepting his appointment, he shall be paid Rs. 10,000/- additionally as bonus. Reasonable actual expenses for stenographer, etc. will be reimbursed. Fees shall be paid stagewise i.e. 25% on acceptance, 25% on completion of pleadings/documentation, 25% on completion of arguments and balance on receipt of award by the parties. Subject to the aforesaid, the provisions of the # Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof and the rules made thereunder, shall apply to the Arbitration proceedings under this Clause. The Contract shall be governed by and constructed according to the laws in force in India. The parties hereby submit to the exclusive jurisdiction of the Courts situated at _______ (say Mumbai*) for all purposes. The Arbitration shall be held at ________ (preferably the location where the work is being carried out, or nearest major controlling city or from where PO is placed, say Mumbai*) and conducted in English language. The Appointing Authority is the Functional Director** of Hindustan Petroleum Corporation Limited.
6)
7)
8)
9)
10)
11)
(Note:- * = Delete the bracketed portions after mentioning the correct place. ) ** Purchasing authorities may mention, if considered necessary, the proper designation such as Director-Refineries, etc.
______________________________________________________________________________ Annexure 5 (Arbitration Clause) VI.11 Systems & Procedures Purchase Manual HPCL, Mumbai
REVISION (Effective PUR-020/13.09.2007)
ANNEXURE - 6
ARBITRATION CLAUSE IN FOREIGN PURCHASE AGREEMENTS
1.
Disputes or difference arising out of or in relation to this agreement shall be settled by Arbitration in India. The arbitration shall be by a Sole Arbitrator appointed by HPCL. The Sole Arbitrator will adjudicate the disputes and differences between the parties except those in respect of which the decision of any person is by the agreement expressed to be final and binding. In the event of the Sole Arbitrator to whom the matter is originally referred to, is unable to act or he/she vacates the office, HPCL, shall nominate another Sole Arbitrator to settle the said disputes and differences. The second Sole Arbitrator shall be entitled to proceed with the arbitration from the stage at which it was left by his/her predecessor. The award of the arbitrator shall be final, conclusive and binding on all the parties to the agreement subject to the provisions of the # Arbitration & Conciliation Act, 1996, as in force in India and the rules made thereunder and for the time being in force. This agreement shall be covered by the laws of India. The award shall be made in writing and shall be published by the Sole Arbitrator within six months after entering upon reference or within such further time mutually extended by the parties. The Sole Arbitrator shall have power to order and direct the parties to abide by, observe and perform such directions as the Sole Arbitrator may think fit and proper to issue having regard to the fact that the arbitration proceedings have to be completed within the specified period solely on the principles of Natural Justice. The Sole Arbitrator shall be at liberty to appoint, if so necessary, any Accountant or Engineer or other person to assist him/her and act by the opinion so taken. The Sole Arbitrator shall have powers to make one or more awards whether interim or otherwise in respect of the disputes and differences, and in particular, shall make separate awards in respect of each claim or cross claim of the parties. The Sole Arbitrator shall be entitled to direct any of the parties to pay the cost of arbitration in such a manner and to such an extent as the Sole Arbitrator may in his discretion determine and shall also be entitled to require one or both the parties to deposit funds in such proportions to meet the arbitration expenses. The parties to arbitration, whenever called upon to do so, shall be bound to comply with such directions without any demur.
2.
3.
4.
5.
6.
7.
8.
_____________________________________________________________________________ Annexure 6 (Arbitration Clause in Foreign Purchase Agreement) Systems & Procedures Purchase Manual VI.12 HPCL, Mumbai
# REVISION (Effective 01/05/2001)
9.
Notwithstanding anything contained to any other law, the parties hereby agree that the courts in the city of _________________ (say Bombay) alone shall have jurisdiction in respect of all or anything arising under this agreement and any award(s) made by the Sole Arbitrator hereunder shall be filed in the court in the city of _______________ (say Bombay ___________) only.
_____________________________________________________________________________ Annexure 6 (Arbitration Clause in Foreign Purchase Agreement) Systems & Procedures Purchase Manual VI.13 HPCL, Mumbai
ANNEXURE - 7 (SPECIMEN)
GENERAL TERMS & CONDITIONS OF WORKS CONTRACT
PRELIMINARY
1.1
This is a Contract for execution of __________________ work at _______________________. (please fill up the blanks) The tenderer for the abovementioned item of work is ____________________________. (please give the name and address of the tenderer) The terms and conditions mentioned hereunder are the terms and conditions of the Contract for the execution of the work mentioned under item 1.1 above. It is the clear understanding between Hindustan Petroleum Corporation Limited and the tenderer ______________________________________ that (name and address of the tenderer) in case the tender of ______________________________________________________________ is (name and address of the tenderer) accepted by Hindustan Petroleum Corporation Limited and an intimation to that effect is so issued and also a Purchase Order is placed with ________________________________________________________ (name and address of the tenderer) this document will be termed as a Contract between the parties and terms and conditions hereunder would govern the parties interest. Interpretation of Contract Documents: All documents forming part of the Contract are to be taken mutually explanatory. Should there be any discrepancy, inconsistency, error or omission in the contract, the decision of the Owner/Engineer-in-Charge/Site-in-Charge shall be the final and the contractor
1.2
1.3
1.4
1.5
_____________________________________________________________________________ Annexure 7 (General Terms & Conditions of Works Contract) Systems & Procedures Purchase Manual VI.14 HPCL, Mumbai REVISION : PUR-024/13.02.2008
shall abide by the decision. The decision shall not be arbitrable. Works shown upon the drawings but not mentioned in the specification or described in the specifications without being shown on the drawings shall nevertheless be deemed to be included in the same manner as if they are shown in the drawings and described in the specifications. 1.6 Special conditions of Contract : The special conditions of contract, if any provided and whenever and wherever referred to shall be read in conjunction with General Terms and Conditions of contract, specifications, drawings, and any other documents forming part of this contract wherever the context so requires. Notwithstanding the subdivision of the documents into separate sections, parts volumes, every section, part or volume shall be deemed to be supplementary or complementary to each other and shall be read in whole. In case of any misunderstanding arising the same shall be referred to decision of the Owner/ Engineer-in-Charge/Site-in-Charge and their decision shall be final and binding and the decision shall not be arbitrable. It is the clear understanding that wherever it is mentioned that the Contractor shall do/perform a work and/or provide facilities for the performance of the work, the doing or the performance or the providing of the facilities is at the cost and expenses of the work not liable to be paid or reimbursed by the Owner. 2. DEFINITIONS In this contract unless otherwise specifically provided or defined and unless a contrary intention appears from the contract the following words and expressions are used in the following meanings; 2.1 The term "Agreement" wherever appearing in "Contract". this document shall be read as
2.2
The "Authority" for the purpose of this Contract shall be the Chairman and Managing Director or any other person so appointed or authorised. The "Chairman and Managing Director" shall mean the Chairman and Managing Director of HINDUSTAN PETROLEUM CORPORATION LIMITED or any person so appointed, nominated or designated and holding the office of Chairman & Managing Director. The "Change Order" means an order given in writing by the Engineer-in-Charge or by Owner to effect additions to or deletion from or alterations into the Work. The "Construction Equipment" means all appliances and equipment of whatsoever nature for the use in or for the execution, completion, operation or maintenance of the work except those intended to form part of the Permanent Work.
2.3
2.4
2.5
2.6
The "Contract" between the Owner and the Contractor shall mean and include all documents like enquiry, tender submitted by the contractor and the purchase order issued by the owner and other documents connected with the issue of the purchase order and orders, instruction, drawings, change orders, directions issued by the Owner/Engineer-in-Charge/Site-in-Charge for the execution, completion and commissioning of the works and the period of contract mentioned in the Contract including such periods of time extensions as may be granted by the owner at the request of the contractor and such period of time for which the work is continued by the contractor for purposes of completion of the work. "The Contractor" means the person or the persons, firm or Company whose tender has been accepted by the Owner and includes the Contractor's legal heirs, representative, successor(s) and permitted assignees. The "Drawings" shall include maps, plans and tracings or prints thereof with any modifications approved in writing by the Engineer-in-Charge and such other drawings as may, from time to time, be furnished or approved in writing by the Engineer-in-Charge. The "Engineer-in-Charge or Site-in-Charge" shall mean the person appointed or designated as such by the Owner and shall include those who are expressly authorised by the owner to act for and on its behalf. "The Owner" means the HINDUSTAN PETROLEUM CORPORATION LIMITED incorporated in India having its Registered office at PETROLEUM HOUSE, 17, JAMSHEDJI TATA ROAD, BOMBAY 400020 and Marketing office at ____________________________________________ or their successors or assignees. The "Permanent Work" means and includes works which form a part of the work to be handed over to the Owner by the Contractor on completion of the contract. The "Project Manager" shall mean the Project Manager of HINDUSTAN PETROLEUM CORPORATION LIMITED, or any person so appointed, nominated or designated. The "Site" means the land on which the work is to be executed or carried out and such other place(s) for purpose of performing the Contract. The "Specifications" shall mean the various technical and other specifications attached and referred to in the tender documents. It shall also include the latest editions, including all addenda/corrigenda or relevant Indian Standard Specifications and Bureau Of Indian Standards.
2.7
2.8
2.9
2.10
2.11
2.12
2.13
2.14
2.15
The "Sub-Contractor" means any person or firm or Company (other than the Contractor) to whom any part of the work has been entrusted by the Contractor with the prior written consent of the Owner/Engineer-in-Charge/Site-in- Charge and their legal heirs, representatives, successors and permitted assignees of such person, firm or Company. The "Temporary Work" means and includes all such works which are a part of the contract for execution of the permanent work but does not form part of the permanent work confirming to practices, procedures applicable rules and regulations relevant in that behalf. The "Tender" means the document submitted by a person or authority for carrying out the work and the Tenderer means a person or authority who submits the tender offering to carry out the work as per the terms and conditions. The "Work" shall mean the works to be executed in accordance with the Contract or part thereof as the case may be and shall include extra, additional, altered or substituted works as maybe required for the purposes of completion of the work contemplated under the Contract. SUBMISSION OF TENDER Before submitting the Tender, the Tenderer shall at their own cost and expenses visit the site, examine and satisfy as to the nature of the existing roads, means of communications, the character of the soil, state of land and of the excavations, the correct dimensions of the work facilities for procuring various construction and other material and their availability, and shall obtain information on all matters and conditions as they may feel necessary for the execution of the works as intended by the Owners and shall also satisfy of the availability of suitable water for construction of civil works and for drinking purpose and power required for fabrication work etc. Tenderer, whose tender may be accepted and with whom the Contract is entered into shall not be eligible and be able to make any claim on any of the said counts in what so ever manner for what so ever reasons at any point of time and such a claim shall not be raised as a dispute and shall not be arbitrable. A pre-bid meeting may be held as per the schedule mentioned in the tender. The Tenderer shall be deemed to have satisfied fully before tendering as to the correctness and sufficiency of his tender for the works and of the rates and prices quoted in the schedule of quantities which rates and prices shall except as otherwise provided cover all his obligations under the contract. It must be clearly understood that the whole of the conditions and specifications are intended to be strictly enforced and that no work will be considered as extra work and allowed and paid for unless they are clearly outside the scope, spirit, meaning of
2.16
2.17
2.18
3. 3.1
3.2
3.3
the Contract and intent of the Owner and have been so ordered in writing by Owner and/or Engineer-in-Charge/Site-in-Charge, whose decision shall be final and binding. 3.4 Before filling the Tender the Contractor will check and satisfy all drawings and materials to be procured and the schedule of quantities by obtaining clarification from the Owner on all the items as may be desired by the Tenderer. No claim for any alleged loss or compensation will be entertained on this account, after submission of Tender by the Tenderer/Contractor and such a claim shall not be arbitrable. Unless specifically provided for in the tender documents or any Special Conditions, no escalation in the Tender rates or prices quoted will be permitted throughout the period of contract or the period of actual completion of the job whichever is later on account of any variation in prices of materials or cost of labour or due to any other reasons. Claims on account of escalation shall not be arbitrable. The quantities indicated in the Tender are approximate. The approved schedule of rates of the contract will be applicable for variations upto plus or minus 25% of the contract value. No revision of schedule of rates will be permitted for such variations in the contract value, including variations of individual quantities, addition of new items, alterations, additions/deletions or substitutions of items, as mentioned above. Quantities etc. mentioned and accepted in the joint measurement sheets shall alone be final and binding on the parties. Owner reserve their right to award the contract to any tenderer and their decision in this regard shall be final. They also reserve their right to reject any or all tenders received. No disputes could be raised by any tenderer(s) whose tender has been rejected. The Rates quoted by the Tenderer shall include Costs and expenses on all counts viz. cost of materials, transportation of machine(s), tools, equipments, labour, power, Administration charges, price escalations, profits, etc. etc. except to the extent of the cost of material(s), if any, agreed to be supplied by Owner and mentioned specifically in that regard in condition of Contract, in which case, the cost of such material if taken for preparation of the Contractor's Bill(s) shall be deducted before making payment of the Bill(s) of the Contractor. The description given in the schedule of quantities shall unless otherwise stated be held to include wastage on materials, carriage and cartage, carrying in and return of empties, hoisting, setting, fitting and fixing in position and all other expenses necessary in and for the full and complete execution and completion of works and in accordance with good practice and recognised principles in that regard. Employees of the State and Central Govt. and employees of the Public Sector Undertakings, including retired employees are covered under their respective service conditions/rules in regard to their submitting the tender. All such persons should
3.5
3.6
3.7
3.8
3.9
ensure compliance to the respective/applicable conditions, rules etc. etc. Any person not complying with those rules etc. but submitting the tender in violation of such rules, after being so noticed shall be liable for the forfeiture of the Earnest Money Deposit made with the tender, termination of Contract and sufferance on account of forfeiture of Security Deposit and sufferance of damages arising as a result of termination of Contract. 3.10 In consideration for having a chance to be considered for entering into a contract with the Owner, the Tenderer agrees that the Tender submitted by him shall remain valid for the period prescribed in the tender conditions, from the date of opening of the tender. The Tenderer shall not be entitled during the said validity period, to revoke or cancel the tender without the consent in writing from the Owner. In case the tenderer revokes or cancels the tender or varies any of terms of the tender without the Consent of the Owner, in writing, the Tenderer forfeits the right to the refund of the Earnest Money paid along with the tender. 3.11 The prices quoted by the Tenderer shall be firm during the validity period of the bid and Tenderer agrees to keep the bid alive and valid during the said period. The Tenderers shall particularly take note of this factor before submitting their tender(s). 3.12 The works shall be carried out strictly as per approved specifications. Deviations, if any, shall have to be authorised by the Engineer-in-Charge/Site-in-Charge in writing prior to implementing deviations. The price benefit, if any, arising out of the accepted deviation shall be passed on to the Owner. The decision of Engineer-in-Charge shall be final in this matter. The contractor shall make all arrangements at his own cost to transport the required materials outside and inside the working places and leaving the premises in a neat and tidy condition after completion of the job to the satisfaction of Owner. All materials except those agreed to be supplied by the Owner shall be supplied by the contractor at his own cost and the rates quoted by the Contractor should be inclusive of all royalties, rents, taxes, duties, octroi, statutory levies, if any, etc. etc. The Contractor shall not carry on any work other than the work under this Contract within the Owners premises without prior permission in writing from the Engineer-in-Charge/Site-in-charge. The Contractor shall be bound to follow and ensure compliance to all the safety and security regulations and other statutory rules applicable to the area. In the event of any damage or loss or sufference caused due to non-observance of such rules and regulations, the contractor shall be solely responsible for the same and shall keep the Owner indemnified against all such losses and claims arising from the same.
3.13
3.14
3.15
3.16
At any time after acceptance of tender, the Owner reserves the right to add, amend or delete any work item, the bill of quantities at a later date or reduce the scope of work in the overall interest of the work by prior discussion and intimation to the Contractor. The decision of Owner, with reasons recorded therefor, shall be final and binding on both the Owner and the Contractor. The Contractor shall not have right to claim compensation or damage etc. in that regard. The Owner reserves the right to split the work under this contract between two or more contractors without assigning any reasons. Contractor shall not be entitled to sublet, sub contract or assign, the work under this Contract without the prior consent of the Owner obtained in writing. All signatures in tender document shall be dated as well as all the pages of all sections of the tender documents shall be initialled at the lower position and signed, wherever required in the tender papers by the Tenderer or by a person holding Power of Attorney authorising him to sign on behalf of the tenderer before submission of tender. The tender should be quoted in English, both in figures as well as in words. The rates and amounts tendered by the Tenderer in the Schedule of rates for each item and in such a way that insertion is not possible. The total tendered amount should also be indicated both in figures and words with the signature of tenderer. If some discrepancies are found between the rates given in words and figures of the amount shown in the tender, the following procedure shall be applied : (a) When there is a difference between the rates in figures and words, the rate which corresponds to the amount worked out by the tenderer shall be taken as correct. When the rate quoted by the tenderer in figures and words tallies but the amount is incorrect, the rate quoted by the tenderer shall be taken as correct. When it is not possible to ascertain the correct rate in the manner prescribed above the rate as quoted in words shall be adopted.
3.17
3.18
3.19
(b)
(c)
3.20
All corrections and alterations in the entries of tender paper will be signed in full by the tenderer with date. No erasures or over writings are permissible. Transfer of tender document by one intending tenderer to the another one is not permissible. The tenderer on whose name the tender has been sent only can quote.
3.21
3.22
The Tender submitted by a tenderer if found to be incomplete in any or all manner is liable to be rejected. The decision of the Owner in this regard is final and binding. In case of any error/discrepancy in the amount written in words and figures, the lower amount between the two shall prevail. DEPOSITS a) EARNEST MONEY DEPOSIT (EMD) The tenderer will be required to pay a sum as specified in the covering letter, as earnest money deposit alongwith the tender either thru a crossed demand draft or a non-revokable Bank Guarantee in favour of Hindustan Petroleum Corporation Limited, from any Scheduled Bank (other than a Co-Operative Bank) payable at Mumbai in favour of Hindustan Petroleum Corporation Limited, Mumbai in the proforma enclosed. The earnest money deposit will be refunded after finalisation of the contract. Note: Public sector enterprises and small scale units registered with National Small Scale Industries are exempted from payment of Earnest Money Deposit. Small scale units registered with National Small Scale Industries should enclose a photocopy of their registration certificate with their quotation to make their quotation eligible for consideration. The Registration Certificate should remain valid during the period of the contract that may be entered into with such successful bidder. Such tenderers should ensure validity of the Registration Certificate for the purpose.
4.
b)
SECURITY DEPOSIT: The tenderer, with whom the contract is decided to be entered into and intimation is so given will have to make a security deposit of one percent (1%) of the total contract value in the form of account payee crossed demand draft drawn in favour of the Owner, within 15 days from the date of intimation of acceptance of their tender, failing which the Owner reserves the right to cancel the Contract and forfeit the EMD. 1% of PO/Contract value as Security deposit will be acceptable in the form of Demand draft upto Rs. 50,000/- and in the form of Demand draft / Bank guarantee beyond Rs. 50,000/-. Composite Performance Bank Guarantee (CPBG) for 10% of PO value towards Performance Bank Guarantee inclusive of Security Deposit shall be accepted (in lieu of deduction of retention money); such CPBG shall be valid upto a period of 3 months beyond the expiry of defect liability period.
Demand Draft should be drawn on Scheduled Banks, other than co-operative bank. _____________________________________________________________________________ Annexure 7 (General Terms & Conditions of Works Contract) Systems & Procedures Purchase Manual VI.21 HPCL, Mumbai REVISION : PUR-024/13.02.2008
5.
EXECUTION OF WORK All the works shall be executed in strict conformity with the provisions of the contract documents and with such explanatory details, drawings, specifications and instructions as may be furnished from time to time to the Contractor by the Engineer-in-Charge/ Site-in-Charge, whether mentioned in the Contract or not. The Contractor shall be responsible for ensuring that works throughout are executed in the most proper and workman- like manner with the quality of material and workmanship in strict accordance with the specifications and to the entire satisfaction of the Engineer-in- Charge/Site-in-Charge. The completion of work may entail working in monsoon also. The contractor must maintain the necessary work force as may be required during monsoon and plan to execute the job in such a way the entire project is completed within the contracted time schedule. No extra charges shall be payable for such work during monsoon. It shall be the responsibility of the contractor to keep the construction work site free from water during and off the monsoon period at his own cost and expenses. For working on Sundays/Holidays, the contractor shall obtain the necessary permission from Engineer Incharge/Site Incharge in advance. The contractor shall be permitted to work beyond the normal hours with prior approval of Engineer-In-Charge/Site-In-Charge and the contractors quoted rate is inclusive of all such extended hours of working and no extra amount shall be payable by the owner on this account.
5.a. 5.a.1.
SETTING OUT OF WORKS AND SITE INSTRUCTIONS The Engineer-in-Charge/Site-in-Charge shall furnish the Contractor with only the four corners of the work site and a level bench mark and the Contractor shall set out the works and shall provide an efficient staff for the purpose and shall be solely responsible for the accuracy of such setting out. The Contractor shall provide, fix and be responsible for the maintenance of all necessary stakes, templates, level marks, profiles and other similar things and shall take all necessary precautions to prevent their removal or disturbance and shall be responsible for consequences of such removal or disturbance should the same take place and for their efficient and timely reinstatement. The Contractor shall also be responsible for the maintenance of all existing survey marks, either existing or supplied and fixed by the Contractor. The work shall be set out to the satisfaction of the Engineer-in-Charge/Site-in-Charge. The approval thereof or joining in setting out the work shall not relieve the Contractor of his responsibility.
5.a.2.
5.a.3.
Before beginning the works, the Contractor shall, at his own cost, provide all necessary reference and level posts, pegs, bamboos, flags ranging rods, strings and other materials for proper layout of the work in accordance with the scheme, for bearing marks acceptable to the Engineer-in-Charge/Site-in-Charge. The Centre longitudinal or face lines and cross lines shall be marked by means of small masonary pillars. Each pillar shall have distinct marks at the centre to enable theodolite to be set over it. No work shall be started until all these points are checked and approved by the Engineer-in-Charge/Site-in-Charge in writing. But such approval shall not relieve the contractor of any of his responsibilities. The Contractor shall also provide all labour, materials and other facilities, as necessary, for the proper checking of layout and inspection of the points during construction. Pillars bearing geodetic marks located at the sites of units of works under construction should be protected and fenced by the Contractor. On completion of works, the contractor shall submit the according to which the work was carried out. geodetic documents
5.a.4.
5.a.5.
5.a.6.
The Engineer-in-Charge/Site-in-Charge shall communicate or confirm his instructions to the contractor in respect of the executions of work in a "work site order book" maintained in the office having duplicate sheet and the authorised representative of the contractor shall confirm receipt of such instructions by signing the relevant entries in the book. All instructions issued by the Engineer-in-Charge/Site-in-Charge shall be in writing. The Contractor shall be liable to carry out the instructions without fail. If the Contractor after receipt of written instruction from the Engineer-in-Charge/ Site-in-Charge requiring compliance within seven days fails to comply with such drawings or 'instructions' or both as the Engineer-in-Charge/Site-in-Charge may issue, owner may employ and pay other persons to execute any such work whatsoever that may be necessary to give effect to such drawings or ìnstructions' and all cost and expenses incurred in connection therewith as certified by the Engineer-in-Charge/ Site-in-Charge shall be borne by the contractor or may be deducted from amounts due or that may become due to the contractor under the contract or may be recovered as a debt. The Contractor shall be entirely and exclusively responsible for the horizontal and vertical alignment, the levels and correctness of every part of the work and shall rectify effectually any errors or imperfections therein. Such rectifications shall be carried out by the Contractor, at his own cost. In case any doubts arise in the mind of the Contractor in regard to any expressions, interpretations, statements, calculations of quantities, supply of material rates,
5.a.7.
5.a.8.
5.a.9.
5.a.10.
etc. etc., the contractor shall refer the same to the Site-in-Charge/ Engineer-in-Charge for his clarification, instructions, guidance or clearing of doubts. The decision of the Engineer-in-Charge/Site-in-Charge shall be final and the contractor shall be bound by such a decision. 5.a.11. "The Contractor shall take adequate precautions, to ensure that his operations do not create nuisance or misuse of the work space that shall cause unnecessary disturbance or inconvenience to others at the work site". 5.a.12. "All fossils, coins articles of value of antiquity and structure or other remains of geological or archaeological discovered on the site of works shall be declared to be the property of the Owner and Contractor shall take reasonable precautions to prevent his workmen or any other persons from removing or damaging any such articles or thing and shall immediately inform the Owner/ Engineer-in-Charge/Site-in-Charge." 5.a.13. "Contractor will be entirely and exclusively responsible to provide and maintain at his expenses all lights, guards, fencing, etc. when and where even necessary or/as required by the Engineer-in-Charge/Site-in-Charge for the protection of works or safety and convenience to all the members employed at the site or general public." COMMENCEMENT OF WORK The contractor shall after paying the requisite security deposit, commence work within 15 days from the date of receipt of the intimation of intent from the Owner informing that the contract is being awarded. The date of intimation shall be the date/day for counting the starting day/date and the ending day/date will be accordingly calculated. Penalty, if any, for the delay in execution shall be calculated accordingly. Contractor should prepare detailed fortnightly construction programme for approval by the Engineer-in-Charge within one month of receipt of Letter Of Intent. The work shall be executed strictly as per such time schedule. The period of Contract includes the time required for testing, rectifications, if any, re-testing and completion of work in all respects to the entire satisfaction of the Engineer-in-Charge. A Letter of Intent is an acceptance of offer by the Owner and it need not be accepted by the contractor. But the contractor should acknowledge a receipt of the purchase order within 15 days of mailing of Purchase Order and any delay in acknowledging the receipt will be a breach of contract and compensation for the loss caused by such breach will be recovered by the Owner by forfeiting earnest money deposit/bid bond .
5.b.
5.c. 5.c.1.
SUBLETTING OF WORK No part of the contract nor any share or interest thereof shall in any manner or degree be transferred, assigned or sublet, by the Contractor, directly or indirectly to any firm or corporation whatsoever, without the prior consent in writing of the Owner. At the commencement of every month the Contractor shall furnish to the Engineer-in-charge/Site-in-Charge list of all sub-contractors or other persons or firms engaged by the Contractor. The contract agreement will specify major items of supply or services for which the Contractor proposes to engage sub-Contractor/sub-Vendor. The contractor may from time to time propose any addition or deletion from any such list and will submit the proposals in this regard to the Engineer-in-charge/Designated officer-in-charge for approval well in advance so as not to impede the progress of work. Such approval of the Engineer-in-charge/Designated officer-in-charge will not relieve the contractor from any of his obligations, duties and responsibilities under the contract . Notwithstanding any sub-letting with such approval as resaid and notwithstanding that the Engineer-in-Charge shall have received copies of any sub-contract, the Contractor shall be and shall remain solely to be responsible for the quality and proper and expeditious execution of the works and the performance of all the conditions of the contract in all respects as if such subletting or sub-contracting had not taken place and as if such work had been done directly by the Contractor. Prior approval in writing of the Owner shall be obtained before any change is made in the constitution of the contractor/Contracting agency otherwise contract shall be deemed to have been allotted in contravention of clause entitled sub-letting of works and the same action may be taken and the same consequence shall ensue as provided in the clause of subletting of works. EXTENSION OF TIME 1) If the Contractor anticipates that he will not be able to complete the work within the contractual delivery/ completion date (CDD), then the Contractor shall make a request for grant of time extension clearly specifying the reasons for which he seeks extension of time and demonstrating as to how these reasons were beyond the control of the contractor or attributable to the Owner. This request should be made well before the expiry of the Contractual Delivery/ Completion Date (CDD). If such a request for extension is received with a Bank Guarantee for the full
5.c.2.
5.c.3
5.c.4.
5.c.5
5.d
2)
Liquidated Damages amount calculated on the Total Contract Value, the concerned General Manager of the Owner shall grant a Provisional extension of time, pending a decision on the request. 3) The concerned General Manager of the Owner shall expeditiously decide upon the request for time extension and decide the levy of liquidated damages within a maximum period of 6 months fom the CDD or date of receipt of the request, whichever is later. 4) Grant of any extension of time shall be by means of issuance of a Change Order. 5) In order to avoid any cash crunch to the Contractor, a Bank Guarantee could be accepted against LD, as stated above. Once a decision is taken, the LD shall be recovered from any pending bills or by encashment of the BG. Any balance sum of Contractor or the BG (if LD is fully recovered from the bills) shall be promptly refunded/returned to the Contractor. 5.e. 5.e.1. SUSPENSION OF WORKS Subject to the provisions of this contract, the contractor shall if ordered in writing by the Engineer- in-Charge/Site-in-Charge for reasons recorded suspend the works or any part thereof for such period and such time so ordered and shall not, after receiving such, proceed with the work therein ordered to uspended until he shall have received a written order to re-start. The Contractor shall be entitled to claim extension of time for that period of time the work was ordered to be suspended. Neither the Owner nor the Contractor shall be entitled to claim compensation or damages on account of such an extension of time. In case of suspension of entire work, ordered in writing by Engineer-in-Charge/Site-in-Charge, for a period of 30 days, the Owner shall havethe option to terminate the Contract as provided under the clause fortermination. The Contractor shall not be at liberty to remove from the site of the works any plant or materials belonging to him and the Employer shall have lien upon all such plant and materials. The contract shall, in case of suspension have the right to raise a dispute and have the same arbitrated but however, shall not have the right to have the work stopped from further progress and completion either by the owner or through other contractor appointed by the owner. OWNER MAY DO PART OF WORK Not withstanding anything contained elsewhere in this contract, the owner upon failure of the Contractor to comply with any instructions given in accordance with _____________________________________________________________________________ Annexure 7 (General Terms & Conditions of Works Contract) Systems & Procedures Purchase Manual VI.26 HPCL, Mumbai REVISION : PUR-024/13.02.2008
5.e.2.
5.e.3.
5.f.
of entire work, place additional labour force, tools, equipment and materials on such parts of the work, as the Owner may decide or engage another Contractor to carryout the balance of work. In such cases, the Owner shall have the right to deduct from the amounts payable to the Contractor the difference in cost of such work and materials with ten percent overhead added to cover all departmental charges. Should the total amount thereof exceed the amount due to the contractor, the Contractor shall pay the difference to the Owner within 15 days of making demand for payment failing which the Contractor shall be liable to pay interest at 24% p.a. on such amounts till the date of payment. 5.g. 5.g.1. INSPECTION OF WORKS The Engineer-in-Charge/Site-in-Charge and Officers from Central or State Government will have full power and authority to inspect the works at any time wherever in progress, either on the site or at the Contractor's premises/workshops of any person, firm or corporation where work in connection with the contract may be in hand or where the materials are being or are to be supplied, and the Contractor shall afford or procure for the Engineer-in-Charge/Site-in-Charge every facility and assistance to carryout such inspection. The Contractor shall, at all times during the usual working hours and at all other times at which reasonable notice of the intention of the Engineer-in-Charge/Site-in-Charge or his representative to visit the works shall have been given to the Contractor, either himself be present to receive orders and instructions, or have a responsible agent, duly accredited in writing, present for the purpose. Orders given to the Contractor's agent shall be considered to have the same force as if they had been given to the Contractor himself. The Contractor shall give not less than seven days notice in writing to the Engineer-in-Charge/Site-in-Charge before covering up or otherwise placing beyond reach of inspection and measurement any work in order that the same may be inspected and measured. In the event of breach of above, the same shall be uncovered at Contractor's expense for carrying out such measurement and/or inspection. No material shall be removed and despatched by the Contractor from the site without the prior approval in writing of the Engineer-in-charge. The contractor is to provide at all times during the progress of the work and the maintenance period proper means of access with ladders, gangways, etc. and the necessary attendance to move and adapt as directed for inspection or measurements of the works by the Engineer-in-Charge/Site-in-Charge. SAMPLES The contractor shall furnish to the Engineer-in-charge/Site-in-Charge for approval when requested or required adequate samples of all materials and finishes to be used in the work. Samples shall be furnished by the Contractor sufficiently in advance and before commencenent of the work so as the Owner can carry out tests and
5.g.2.
5.h. 5.h.1.
5.h.2.
examinations thereof and approve or reject the samples for use in the works. All material samples furnished and finally used/applied in actual work shall fully be of the same quality of the approved samples. 5.i. 5.i.1. TESTS FOR QUALITY OF WORK All workmanship shall be of the respective kinds described in the contract documents and in accordance with the instructions of the Engineer-in-Charge / Site-in- Charge and shall be subjected from time to time to such tests at Contractor's cost as the Engineer-in-Charge/Site-in-Charge may direct at the place of manufacture or fabrication or on the site or at all or any such places. The Contractor shall provide assistance, instruments, labour and materials as are normally required for examining, measuring and testing any workmanship as may be selected and required by the Engineer-in-Charge/Site-in-Charge. All the tests that will be necessary in connection with the execution of the work as decided by the Engineer-in- charge/Site-in-Charge shall be carried out at the contractors cost and expenses. If any tests are required to be carried out in connection with the work or materials or workmanship to be supplied by the owner, such tests shall be carried out by the Contractor as per instructions of Engineer-in-Charge/Site-in-Charge and expenses for such tests, if any, incurred by the contractor shall be reimbursed by the Owner. The contractor should file his claim with the owner within 15 (fifteen) days of inspection/test and any claim made beyond that period shall lapse and be not payable. ALTERATIONS AND WORKS AND ADDITIONS TO SPECIFICATIONS, DESIGNS
5.i.2.
5.i.3.
5.j.
5.j.1.
The Engineer-in-Charge/Site-in-Charge shall have powers to make any alterations, additions and/or substitutions to the schedule of quantities, the original specifications, drawings, designs and instructions that may become necessary or advisable or during the progress of the work and the Contractor shall be bound to carryout such altered/extra/new items of work in accordance with instructions which may be given to him in writing signed by the Engineer-in-Charge/Site- in-Charge. Such alterations, omissions, additions or substitutions shall not invalidate the contract. The altered, additional or substituted work which the Contractor may be directed to carryon in the manner as part of the work shall be carried out by the Contractor on the same conditions in all respects on which he has agreed to do the work. The time for completion of such altered added and/or substituted work may be extended for that part of the particular job. The rates for such additional altered or substituted work under this Clause shall, be worked out in accordance with the following provisions:
5.j.2.
If the rates for the additional, altered or substituted work are specified in the contract for similar class of work, the Contractor is bound to carryout the additional, altered or substituted work at the same rates as are specified in the contract. If the rates for the additional, altered or substituted work are not specifically provided in the contract for the work, the rates will be derived from the rates for similar class of work as are specified in the contract for the work. In the opinion of the Engineer-inCharge/Site-in-Charge as to whether or not the rates can be reasonably so derived from the items in this contract, will be final and binding on the Contractor. If the rates for the altered, additional or substituted work cannot be determined in the manner specified above, then the Contractor shall, within seven days of the date of receipt of order to carry out the work, inform the Engineer-in-Charge/ Site-in-Charge of the rate at which he intends to charge for such class of work, supported by analysis of the rate or rates claimed and the Engineer-In-Charge/ Site-in-Charge shall determine the rates on the basis of the prevailing market rates for both material and labour plus 10% to cover overhead and profit of labour rates and pay the Contractor accordingly. The opinion of the Engineer-inCharge/Site-in-Charge as to current market rates of materials and the quantum of labour involved per unit of measurement will be final and binding on the contractor. The quantities indicated in the Tender are approximate. The approved schedule of rates of the contract will be applicable for variations of upto +25% of the estimated contract value. No revision of schedule of rates will be permitted for such variations in the contract value, even for variations of individual quantities, addition of new items, alterations, additions/deletions or substitutions of items, as mentioned above.
5.j.3.
5.j.4.
5.j.5.
(Already covered under Clause No. 3.6)

5.j.6. In case of any item of work for which there is no specification supplied by the Owner and is mentioned in the tender documents, such work shall be carried out in accordance with Indian Standard Specifications and if the Indian Standard Specifications do not cover the same, the work should be carried out as per standard Engineering Practice subject to the approval of the Engineer-in-Charge/ Site-in-Charge. PROVISIONAL ACCEPTANCE Acceptance of sections of the works for purposes of equipment erection, piping, electrical work and similar usages by the Owner and payment for such work or parts of work shall not constitute a waiver of any portion of this contract and shall not be construed so as to prevent the Engineer from requiring replacement of defective work that may become apparent after the said acceptance and also shall not absolve the Contractor of the obligations under this contract. It is made clear that such an acceptance does not indicate or denote or establish to the fact of execution of that _____________________________________________________________________________ Annexure 7 (General Terms & Conditions of Works Contract) Systems & Procedures Purchase Manual VI.29 HPCL, Mumbai REVISION : PUR-024/13.02.2008
5.k.
5.l.
COMPLETION OF WORK AND COMPLETION CERTIFICATE As soon as the work is completed in all respects, the contractor shall give notice of such completion to the site in charge or the Owner and within thirty days of receipt of such notice the site in charge shall inspect the work and shall furnish the contractor with a certificate of completion indicating: a) b) c) defects, if any, to be rectified by the contractor items, if any, for which payment shall be made in reduced rates the date of completion.
5.m.
USE OF MATERIALS AND RETURN OF SURPLUS MATERIALS
5.m.1. Notwithstanding anything contained to the contrary in any or all of the clauses of this contract, where any materials for the execution of the contract are procured with the assistance of Government either by issue from Government stocks or purchase made under orders or permits or licences issued by Government, the contractor shall use the said materials economically and solely for the purpose of the contract and shall not dispose them of without the permission of the Owner. 5.m.2. All surplus(serviceable) or unserviceable materials that may be left over after the completion of the contract or at its termination for any reason whatsoever, the Contractor shall deliver the said product to the Owner without any demur. The price to be paid to the Contractor, if not already paid either in full or in part, however, shall not exceed the amount mentioned in the Schedule of Rates for such material and in cases where such rates are not so mentioned, shall not exceed the CPWD scheduled rates. In the event of breach of the aforesaid condition the contractor shall become liable for contravention of the terms of the Contract. 5.m.3. The surplus (serviceable) and unserviceable products shall be determined by joint measurement. In case where joint measurement has failed to take place, the Owner may measure the same and determine the quantity. 5.m.4. It is made clear that the Owner shall not be liable to take stock and keep possession and pay for the surplus and unserviceable stocks and the Owner may direct the Contractor to take back such material brought by the Contractor and becoming surplus and which the Owner may decide to keep and not to pay for the same. DEFECT LIABILITY PERIOD The contractor shall guarantee the work executed for a period of 12 months from the date of completion of the job. Any damage or defect that may arise or lie undiscovered at the time of completion of the job shall be rectified or replaced by the contractor at his own cost. The decision of the Engineer In-charge/Site-Incharge/Owner shall be the final in deciding whether the defect has _____________________________________________________________________________ Annexure 7 (General Terms & Conditions of Works Contract) Systems & Procedures Purchase Manual VI.30 HPCL, Mumbai REVISION : PUR-024/13.02.2008
5.n.
to be rectified or replaced. Equipment or spare parts replaced under warranty/guarantees shall have further warranty for a mutually agreed period from the date of acceptance. The owner shall intimate the defects noticed in writing by a Registered A.D. letter or otherwise and the contractor within 15 days of receipt of the intimation shall start the rectification work and complete within the time specified by the owner failing which the owner will get the defects rectified by themselves or by any other contractor and the expenses incurred in getting the same done shall be paid by the Contractor under the provision of the Contract. Thus, defect liability is applicable only in case of job/works contract (civil, mechanical, electrical, maintenance etc. ) where any damage of defect may arise in future (i.e. within 12 months from the date of completion of job) or lie undiscovered at the time of completion of job. In other words, in case of service contracts (like car hire etc.) where there is no question of damage or defect arising in future, the defect liability clause is not applicable. 5.o. 5.o.1. DAMAGE TO PROPERTY Contractor shall be responsible for making good to the satisfaction of the Owner any loss of and any damage to all structures and properties belonging to the Owner or being executed or procured by the Owner or of other agencies within the premises of the work of the Owner, if such loss or damage is due to fault and/or the negligence or willful acts or omission of the Contractor, his employees, agents, representatives or sub-contractors. The Contractors shall indemnify and keep the Owner harmless of all claims for damage to Owner's property arising under or by reason of this contract. DUTIES AND RESPONSIBILITIES OF CONTRACTOR EMPLOYMENT LIABILITY TOWARDS WORKERS EMPLOYED BY THE CONTRACTOR The Contractor shall be solely and exclusively responsible for engaging or employing persons for the execution of work. All persons engaged by the contractor shall be on Contractor's payroll and paid by Contractor. All disputes or differences between the Contractor and his/their employees shall be settled by Contractor. Owner has absolutely no liability whatsoever concerning the employees of the
5.o.2.
6. 6.a.
6.a.1
6.a.2.
Contractor. The Contractor shall indemnify Owner against any loss or damage or liability arising out of or in the course of his/their employing persons or relation with his/their employees. The Contractor shall make regular and full payment of wages and on any complaint by any employee of the Contractor or his sub contractor regarding non-payment of wages, salaries or other dues, Owner reserves the right to make payments directly to such employees or sub- contractor of the Contractor and recover the amount in full from the bills of the Contractor and the contractor shall not claim any compensation or reimbursement thereof. The Contractor shall comply with the Minimum Wages Act applicable to the area of work site with regard to payment of wages to his employees and also to employees of his sub contractor. 6.a.3. The Contractor shall advise in writing or in such appropriate way to all of his employees and employees of sub-contractors and any other person engaged by him that their appointment/employment is not by the Owner but by the Contractor and that their present appointment is only in connection with the construction contract with Owner and that therefore, such an employment/appointment would not enable or make them eligible for any employment/appointment with the Owner either temporarily or/and permanent basis. NOTICE TO LOCAL BODIES The contractor shall comply with and give all notices required under any Government authority, instruction, rule or order made under any act of parliament, state laws or any regulations or by-laws of any local authority relating to the works. 6.c. 6.c.1 FIRST AID AND INDUSTRIAL INJURIES Contractor shall maintain first aid facility for his employees and those of his sub-contractors. Contractor shall make arrangements for ambulance service and for the treatment of all types of injuries. Names and telephone numbers of those providing such services shall be furnished to Owner prior to start of construction and their name board shall be prominently displayed in Contractor's field office. All industrial injuries shall be reported promptly to owner and a copy of contractor's report covering each personal injury requiring the attention of a physician shall be furnished to the Owner. SAFETY CODE The Contractor shall at his own expenses arrange for the Safety provisions as may be necessary for the execution of the work or as required by the
6.b.
6.c.2.
6.c.3.
6.d. 6.d.1.
Engineer-in-Charge in respect of all labours directly or indirectly employed for performance of the works and shall provide all facilities in connections therewith. In case the contractor fails to make arrangements and provide necessary facilities as aforesaid, the Owner shall be entitled to do so and recover the cost thereof from the Contractor. 6.d.2. From the commencement to the completion of the works, the contractor shall take full responsibility for the care thereof and of all the temporary works (defined as meaning all temporary works of every kind required in or for the execution, completion or maintenance of the works). In case damage, loss or injury shall happen to the works or to any part thereof or to temporary works or to any cause whatsoever repair at his (Contractor's) own cost and make good the same so that at the time of completion, the works shall be in good order and condition and in conformity in every respect with the requirement of the contract and Engineer-in-Charge's instructions. In respect of all labour, directly or indirectly employed in the work for the performance of the Contractor's part of this agreement, the contractor shall at his own expense arrange for all the safety provisions as per relevant Safety Codes of C.P.W.D Bureau of Indian Standards, the Electricity Act/I.E. Rules. The Mines Act and such other Acts as applicable. The Contractor shall observe and abide by all fire and safety regulations of the Owner. Before starting construction work, the Contractor shall consult with Owner's Safety Engineer or Engineer-in-Charge/Site-in-Charge and must make good to the satisfaction of the Owner any loss or damage due to fire to any portion of the work done or to be done under this agreement or to any of the Owner's existing property. The Contractor will be fully responsible for complying with all relevant provisions of the Contract Labour Act and shall pay rates of Wages and observe hours of work/conditions of employment according to the rules in force from time to time. The Contractor will be fully responsible for complying with the provision including documentation and submission of reports on the above to the concerned authorities and shall indemnify the Corporation from any such lapse for which the Government will be taking action against them.
6.d.3.
6.d.4.
6.d.5.
6.d.6.
6.d.7. Owner shall on a report having been made by an inspecting Office as defined in the Contract Labour Regulations have the power to deduct from the money due to the Contractor any sum required or estimated to be required for making good the loss suffered by a worker(s) by reasons of non-fulfillment of conditions of contract for the benefit of workers no-payment of wages or of deductions made from his or their wages which are not justified by the terms of contract or non observance of the said contractor's labour Regulation. _____________________________________________________________________________ Annexure 7 (General Terms & Conditions of Works Contract) Systems & Procedures Purchase Manual VI.33 HPCL, Mumbai REVISION : PUR-024/13.02.2008
6.e.
INSURANCE AND LABOUR Contractor shall at his own expense obtain and maintain an insurance policy with a Nationalised Insurance Company to the satisfaction of the Owner as provided hereunder.
6.e.1. EMPLOYEES STATE INSURANCE ACT i. The Contractor agrees to and does hereby accept full and exclusive liability for the compliance with all obligations imposed by Employees State Insurance Act, 1948, and the Contractor further agrees to defend indemnify and hold Owner harmless from any liability or penalty which may be imposed by the Central, State or local authority by reason of any asserted violation by Contractor, or sub-contractor of the Employees' State Insurance Act, 1948 and also from all claims, suits or proceedings that may be brought against the Owner arising under, growing out of or by reason of the work provided for by this contract whether brought by employees of the Contractor, by third parties or by Central or State Government authority or any political sub-division thereof. ii. The Contractor agrees to file with the Employees State Insurance Corporation, the Declaration forms and all forms which may be required in respect of the Contractor's or sub-contractor's employee whose aggregate emuneration is within the specified limit and who are employed in the work provided or those covered by ESI Act under any amendment to the Act from time to time. The Contractor shall deduct and secure the agreement of the sub-contractor to deduct the employee's contribution as per the first schedule of the Employee's State Insurance Act from wages and affix the employee's contribution cards at wages payment intervals. The Contractor shall remit and secure the agreement of the sub contractor to remit to the State Bank of India, Employee's State Insurance Corporation Account, the Employee's contribution as required by the Act. iii. The Contractor agrees to maintain all records as required under the Act in respect of employees and payments and the Contractor shall secure the agreement of the sub contractor to maintain such records. Any expenses incurred for the contributions, making contribution or maintaining records shall be to the Contractor's or sub-contractor's account. The Owner shall retain such sum as may be necessary from the total contract value until the Contractor shall furnish satisfactory proof that all contributions as required by the Employees State Insurance Act, 1948, have been paid.
WORKMAN'S INSURANCE COMPENSATION AND EMPLOYEE'S LIABILITY
iv.
v.
Provide Insurance for all the Contractor's employees engaged in the performance _____________________________________________________________________________ Annexure 7 (General Terms & Conditions of Works Contract) Systems & Procedures Purchase Manual VI.34 HPCL, Mumbai REVISION : PUR-024/13.02.2008
of this contract. If any of the work is sublet, the Contractor shall ensure that the sub contractor provides workmen's compensation and Employer's Liability Insurance for the latter's employees who are not covered under the Contractor's insurance. vi. AUTOMOBILE LIABILITY INSURANCE Contractor shall take out an Insurance to cover all risks to Owner for each of his vehicles plying on works of this contract and these insurances shall be valid for the total contract period. No extra payment will be made for this insurance. Owner shall not be liable for any damage or loss not made good by the Insurance Company, should such damage or loss result from unauthorised use of the vehicle. The provisions of the Motor Vehicle Act would apply. vii. FIRE INSURANCE Contractor shall within two weeks after award of contract insure the Works, Plant and Equipment and keep them insured until the final completion of the Contract against loss or damage by accident, fire or any other cause with an insurance company to be approved by the Employer/Consultant in the joint names of the Employer and the Contractor (name of the former being placed first in the Policy). Such Policy shall cover the property of the Employer only. 6.e.2. ANY OTHER INSURANCE REQUIRED UNDER LAW OR REGULATION OR BY OWNER i. Contractor shall also provide and maintain any and all other insurance which may be required under any law or regulations from time to time. He shall also carry and maintain any other insurance which may be required by the Owner. The aforesaid insurance policy/policies shall provide that they shall not be cancelled till the Engineer-in-Charge has agreed to their cancellation. The Contractor shall satisfy to the Engineer-in-Charge/Site-in-Charge from time to time that he has taken out all insurance policies referred to above and has paid the necessary premium for keeping the policies alive till the expiry of the defects liability period. The contractor shall ensure that similar insurance policies are taken out by his sub-contractor (if any) and shall be responsible for any claims or losses to the Owner resulting from their failure to obtain adequate insurance protections in connection thereof. The contractor shall produce or cause to be proceed by his sub-contractor (if any) as the case may be, the relevant policy or policies and premium receipts as and when required by the Engineer-in-Charge/Site-in-Charge.
ii.
iii.
iv.
6.e.3.
LABOUR AND LABOUR LAWS i. The contractor shall at his own cost employ persons during the period of contract and the persons so appointed shall not be construed under any circumstances to be in the employment of the Owner. All payments shall be made by the contractor to the labour employed by him in accordance with the various rules and regulations stated above. The contractor shall keep the Owner indemnified from any claims whatsoever inclusive of damages/costs or otherwise arising from injuries or alleged injuries to or death of a person employed by the contractor or damages or alleged damages to the property. No labour below the age of eighteen years shall be employed on the work. The Contractor shall not pay less than what is provided under the provisions of the contract labour (Regulations and Abolition) Act, 1970 and the rules made thereunder and as may be amended from time to time. He shall pay the required deposit under the Act appropriate to the number of workman to be employed by him or through sub contractor and get himself registered under the Act. He shall produce the required Certificates to the Owner before commencement of the work. The Owner recognises only the Contractor and not his sub contractor under the provisions of the Act. The Contractor will have to submit daily a list of his workforce. He will also keep the wage register at the work site or/and produce the same to the Owner, whenever desired. A deposit may be taken by the Owner from the Contractor to be refunded only after the Owner is satisfied that all workmen employed by the Contractor have been fully paid for the period of work in Owner's premises at rates equal to or better than wages provided for under the Minimum Wages Act. The contractor shall be responsible and liable for any complaints that may arise in this regard and the consequences thereto. The Contractor will comply with the provisions of the Employee's Provident Fund Act and the Family Pension Act as may be applicable and as amended from time to time. The Contractor will comply with the provisions of the payment of Gratuity Act, 1972, as may be applicable and as amended from time to time. IMPLEMENTATION OF APPRENTICES ACT, 1961 The Contractor shall comply with the provisions of the Apprentices Act, 1961 and the Rules and Orders issued thereunder from time to time. If he fails to
ii.
iii.
iv.
v.
vi.
do so, his failure will be a breach of the contract and the Engineer-in-Charge may, at his discretion, cancel the contract. The Contractor shall also be liable for any pecuniary liability arising on account of any violation by him of the provision of the Act. vii. MODEL RULES FOR LABOUR WELFARE The Contractor shall at his own expenses comply with or cause be complied with Model rules for Labour Welfare as appended to those conditions or rules framed by the Government from time to time for the protection of health and for making sanitary arrangements for worker employed directly or indirectly on the works. In case the contractor fails to make arrangements as aforesaid the Engineer-in-Charge/Site-in-Charge shall be entitled to do so and recover the cost thereof from the contractor. 6.f. 6.f.1. DOCUMENTS CONCERNING WORKS All documents including drawings, blue prints, tracings, reproducible models, plans, specifications and copies, thereof furnished by the Owner as well as all drawings, tracings, reproducibles, plans, specifications design calculations etc. prepared by the contractor for the purpose of execution of works covered in or connected with this contract shall be the property of the Owner and shall not be used by the contractor for any other work but are to be delivered to the Owner at the completion or otherwise of the contract. The Contractor shall keep and maintain secrecy of the documents, drawings etc. issued to him for the execution of this contract and restrict access to such documents, drawings etc. and further the Contractor shall execute a SECRECY agreement from each or any person employed by the Contractor having access to such documents, drawings etc. The Contractor shall not issue drawings and documents to any other agency or individual without the written approval by the Engineer-in-Charge/Site-in- Charge. Contractor will not give any information or document etc. concerning details of the work to the press or a news disseminating agency without prior written approval from Engineer-in-charge/Site-in-Charge. Contractor shall not take any pictures on site without written approval of Engineer-in-Charge/Site-in-Charge. PAYMENT OF CONTRACTOR'S BILLS Payments will be made against Running Accounts bills certified by the Owner's Engineer-in-Charge/Site-in-Charge within 15 days from the date of receipt of the bill.. Running Account Bills and the final bill shall be submitted by the Contractor together with the duly signed measurements sheet(s) to the Engineer-in-Charge/
6.f.2.
6.f.3.
7. 7.1.
7.2.
Site-in-Charge of the Owner in quadruplicate for certification.
The Bills shall also be accompanied by quantity calculations in support of the quantities contained in the bill along with cement consumption statement, actual/theoretical, wherever applicable duly certified by the Engineer-in-Charge/ Site-in-Charge of the Owner. 7.3. All running account payments shall be regarded as on account payment(s) to be finally adjusted against the final bill payment. Payment of Running Account Bill(s) shall not determine or affect in any way the rights of the Owner under this Contract to make the final adjustments of the quantities of material, measurements of work and adjustments of amounts etc.etc. in the final bill. The final bill shall be submitted by the Contractor within one month of the date of completion of the work fully and completely in all respects. If the Contractor fails to submit the final bill accordingly Engineer-in-Charge/Site-in-Charge may make the measurement and determine the total amount payable for the work carried out by the Contractor and such a certification shall be final and binding on the Contractor. The Owner/Engineer- in-Charge/Site-in-Charge may take the assistance of an outside party for taking the measurement, the expenses of which shall be payable by the Contractor. Payment of final bill shall be made within 30 days from the date of receipt of the certified bill by the Disbursement Section of the owner. Wherever possible, payment shall be tendered to the contractor in electronic mode (e-payment) through any of the designated banks. The contractor will comply by furnishing full particulars of Bank acount (mandate) to which the payments will be routed. Owner reserves the right to make payment in any alternate mode also. MEASUREMENT OF WORKS All measurements shall be in metric system. All the works will be jointly measured by the representative of the Engineer-in-Charge/Site-in-Charge and the Contractor or their authorised agent progressively. Such measurement will be recorded in the Measurement Book/Measurement Sheet by the Contractor or his authorised representative and signed in token of acceptance by the Owner or their authorised representative. For the purpose of taking joint measurement, the Contractor/representative shall be bound to be present whenever required by the Engineer-in-Charge/Site-in-Charge. If, however, they are absent for any reasons whatsoever, the measurement will be taken by the Engineer-in-Charge/Site-in-Charge or his representative and the same would be deemed to be correct and binding on the Contractor.
7.4.
7.5. 7.6
7.a. 7.a.1.
7.a.2.
7.a.3.
In case of any dispute as to the mode of measurement for any item of work, the latest Indian Standard Specifications shall be followed. In case of any further dispute on the same the same shall be as per the certification of an outside qualified Engineer/ Consultant. Such a measurement shall be final and binding on the Owner and the Contractor. BILLING OF WORKS EXECUTED The Contractor will submit a bill in approved proforma in quadruplicate to the Engineer-in-Charge/Site-in-Charge of the work giving abstract and detailed measurement for the various items executed during a month, before the expiry of the first week of the succeeding month. The Engineer-in-Charge/Site-in-Charge shall take or cause to be taken the requisite measurements for the purpose of having the bill verified and/or checked before forwarding the same to the disbursement office of the Owner for further action in terms of the Contract and payment thereafter. The Engineer-in-Charge/Site-in-Charge shall verify the bills within 7 days of submission of the Bill by the Contractor.
7.b.
7.c.
RETENTION MONEY 10% of the total value of the Running Account and Final Bill will be deducted and retained by the Owner as retention money on account of any damage/defect liability that may arise for the period covered under the defect liability period clause of the Contract free of interest. Any damage or defect that may arise or lie undiscovered at the time of issue of completion certificate connected in any way with the equipment or materials supplied by contractor or in workmanship shall be rectified or replaced by the contractor at his own expense failing which the Owner shall be entitled to rectify the said damage/defect from the retention money. Any excess of expenditure incurred by the Owner on account of damage or defect shall be payable by the Contractor. The decision of the Owner in this behalf shall not be liable to be questioned but shall be final and binding on the Contractor. Thus, deduction towards retention money is applicable only in case of job/works contracts (civil, mechanical, electrical, maintenance etc.) where any damage or defect may arise in future (i.e. within 12 months from the date of completion of job) or lie undiscovered at the time of issue of completion certificate.
7.d. STATUTORY LEVIES 7.d.1 The Contractor accepts full and exclusive liability for the payment of any and all taxes, duties, octroi, rates, cess, levies and statutory payments payable under all or any of the statutes etc. Variations of taxes and duties arising out of the amendments to the Central / State
enactments, in respect of sale of goods / services covered under this bid shall be to HPCLs account, so long as :
They relate to the period after the opening of the price bid, but before the contracted completion period ( excluding permitted extensions due to delay on account of the contractors, if any) or the actual completion period, whichever is earlier; and The vendor furnishes documentary evidence of incurrence of such variations, in addition to the invoices/documents for claiming Cenvat /Input Tax credit, wherever applicable.
All contributions and taxes for unemployment compensation, insurance and old age pensions or annuities now or hereafter imposed by Central or State Governmental authorities which are imposed with respect to or covered by the wages, salaries or other compensations paid to the persons employed by the Contractor and the Contractor shall be responsible for the compliance with all obligations and restrictions imposed by the Labour Law or any other law affecting employer-employee relationship and the Contractor further agrees to comply and to secure the compliance of all sub-contractors with all applicable Central, State, Municipal and local laws, and regulations and requirements of any Central, State or Local Government agency or authority. Contractor further agrees to defend, indemnify and hold harmless from any liability or penalty which may be imposed by the Central, State or Local authorities by reason of any violation by Contractor or sub-contractor of such laws, regulations or requirements and also from all claims, suits or proceedings that may be brought against the Owner arising under, growing out of, or by reasons of the work provided for by this contract by third parties, or by Central or State Government authority or any administrative sub-division thereof. The Contractor further agrees that in case any such demand is raised against the Owner, and Owner has no way but to pay and pays/makes payment of the same, the Owner shall have the right to deduct the same from the amounts due and payable to the Contractor. The Contractor shall not raise any demand or dispute in respect of the same but may have recourse to recover/receive from the concerned authorities on the basis of the Certificate of the Owner issued in that behalf. 7.d.2. The rates quoted should be inclusive of all rates, cess, taxes and sales tax on works contracts wherever applicable. However, wherever the sales tax on works contract is applicable and is to be deducted at source, the same will be deducted from the bills of the Contractor and paid to the concerned authorities. The proof of such payments of sales tax on works contract will be furnished to the contractor. 7.d.3. Income tax will be deducted at source as per rules at prevailing rates, unless certificate, if any, for deduction at lesser rate or nil deduction is submitted by the Contractor from appropriate authority. _____________________________________________________________________________ Annexure 7 (General Terms & Conditions of Works Contract) Systems & Procedures Purchase Manual VI.40 HPCL, Mumbai REVISION : PUR-024/13.02.2008
7.d.4 The contractor shall provide accurate particulars of PAN number as required, to enable issuance of TDS (Tax Deduction at Source) certificate. 7.e. MATERIALS TO BE SUPPLIED BY CONTRACTOR
7.e.1. The Contractor shall procure and provide the whole of the materials required for construction including tools, tackles, construction plant and equipment for the completion and maintenance of the works except the materials viz. steel and cement which may be agreed to be supplied as provided elsewhere in the contract. The contractor shall make arrangement for procuring such materials and for the transport thereof at their own cost and expenses. 7.e.2. The Owner may give necessary recommendation to the respective authority if so desired by the Contractor but assumes no responsibility of any nature. The Contractor shall procure materials of ISI stamp/certification and supplied by reputed suppliers borne on DGS&D list. All materials procured should meet the specifications given in the tender document. The Engineer-in-charge may, at his discretion, ask for samples and test certificates for any batch of any materials procured. Before procuring, the Contractor should get the approval of Engineer-in-Charge/Site-in-Charge for any materials to be used for the works. Manufacturer's certificate shall be submitted for all materials supplied by the Contractor. If, however, in the opinion of the Engineer-in-Charge/Site-in-Charge any tests are required to be conducted on the material supplied by the Contractor, these will be arranged by the Contractor promptly at his own cost. MATERIALS TO BE SUPPLIED BY THE OWNER Steel and Cement maybe supplied by the Owner to the contractor against payment by Contractor from either godown or from the site or within work premises itself and the contractor shall arrange for all transport to actual work site at no extra cost. The contractor shall bear all the costs including loading and unloading, carting from issue points to work spot storage, unloading, custody and handling and stacking the same and return the surplus steel and cement to the Owner's storage point after completion of job. The contractor will be fully accountable for the steel and cement received from the Owner and contractor will give acknowledgement/receipt for quantity of steel and cement received by him each time he uplifts cement from Owner's custody. For all computation purposes, the theoretical cement consumption shall be considered as per CPWD standards.
7.e.3.
7.e.4.
7.f. 7.f.1.
7.f.2.
7.f.3.
7.f.4.
7.f.5.
Steel and Cement as received from the manufacturer/stockists will be issued to the contractor. Theoretical weight of cement in a bag will be considered as 50 Kg. Bags weighing upto 4% less shall be accepted by the contractor and considered as 50 Kg. per bag. Any shortage in the weight of any cement bag by more than 4% will be to the Owner's account only when pointed out by the Contractor and verified by Engineer-in-Charge/Site in Charge at the time of Contract or taking delivery. The contractor will be required to maintain a stock register for receipt, issuance and consumption of steel and cement at site. Cement will be stored in a warehouse at site. Requirement of cement on any day will be taken out of the warehouse. Cement issued shall be regulated on the basis of FIRST RECEIPT to go as FIRST ISSUE. Empty cement bag shall be the property of the Contractor. Contractor shall be penalised for any excess/under consumption of cement. The penal rate will be twice the rate of issue of cement for this work. All the running bills as well as the final bills will be accompanied by cement consumption statements giving the detailed working of the cement used, cement received and stock-on-hand. The Contractor will be fully responsible for safe custody of cement once it is received by him and during transport. Owner will not entertain any claims of the contractor for theft, loss or damage to cement while in their custody.
7.f.6.
7.f.7.
7.f.8.
7.f.9.
7.f.10. The contractor shall not remove from the site any cement bags at any time. 7.f.11. The Contractor shall advise Engineer-in-charge/Site-in-charge in writing atleast 21 days before exhausting the Cement stocks already held by Contractor to ensure that such delays do not lead to interruptions in the progress of work.
7.f.12. Cement shall not be supplied by the Owner for manufacturing of mosaic tiles, precast cement jali and any other bought out items which consume cement and for temporary works. 7.f.13. Cement in bags and in good usable condition left over after the completion of work shall be returned by the contractor to the Owner. The Owner shall make payment to the Contractor at the supply rate for such stocks of cement they accept and receive. Any refused stock of cement shall be removed by the Contractor from the site at his cost and expenses within 15 days of completion of the work. 8. 8.1. PAYMENT OF CLAIMS AND DAMAGES Should the Owner have to pay money in respect of claims or demands as aforesaid
the amount so paid and the costs incurred by the Owner shall be charged to and paid by the Contractor and the Contractor shall not be entitled to dispute or question the right of the Owner to make such payments notwithstanding the same may have been without his consent or authority or in law or otherwise to the contrary. 8.2. In every case in which by virtue of the provisions of Workmen's Compensation Act, 1923, or other Acts, the Owner is obliged to pay Compensation to a Workman employed by the Contractor in execution of the works, the Owner will recover from the Contractor the amount of compensation so paid and without prejudice to the rights of Owner under the said Act. Owner shall be at liberty to recover such amount or any part thereof by deducting it from the security deposit or from any sum due to the Contractor whether under this contract or otherwise. The Owner shall not be bound to contest any claim made under Section 12 sub section (1) of the said Act, except on the written request of the Contractor and upon his giving to the Owner full security for all costs for which the owner might become liable in consequence of contesting such claim. ACTION AND COMPENSATION IN CASE OF BAD WORK If it shall appear to the Engineer-in-Charge/Site-in-Charge that any work has been executed with bad, imperfect or unskilled workmanship, or with materials, or that any materials or articles provided by the Contractor for execution of the work are not of standards specified/inferior quality to that contracted for, or otherwise not in accordance with the contract, the CONTRACTOR shall on demand in writing from the Engineer-in-Charge/Site-in-Charge or his authorised representative specifying the work, materials or articles complained of, notwithstanding that the same may have been inadvertently passed, certified and paid for, forthwith rectify or remove and reconstruct the work so specified and at his own charge and cost and expenses and in the event of failure to do so within a period of 15 days of such intimation/ information/knowledge, the Contractor shall be liable to pay compensation equivalent to the cost of reconstruction by the Owner. On expiry of 15 days period mentioned above, the Owner may by themselves or otherwise rectify or remove and re-execute the work or remove and replace with others, the materials or articles complained of as the case may be at the risk and expenses in all respects of the Contractor. The decision of the Engineer-in- Charge/ Site-in-Charge as to any question arising under this clause shall be final and conclusive and shall not be raised as a dispute or shall be arbitrable. 8.b. INSPECTION AND AUDIT OF CONTRACT AND WORKS This project is subject to inspection by various Government agencies of Government of India. The contractor shall extend full cooperation to all the Government and other agencies in the inspection of the works, audit of the Contract and the documents of Contract Bills, measurements sheets etc. etc. and examination of the records of works and make enquiries interrogation as they may deem fit, proper and necessary. Upon inspection etc. by such agencies if it is _____________________________________________________________________________ Annexure 7 (General Terms & Conditions of Works Contract) Systems & Procedures Purchase Manual VI.43 HPCL, Mumbai REVISION : PUR-024/13.02.2008
8.a.
pointed out that the contract work has not been carried out according to the prescribed terms and conditions as laid down in the tender documents and if any recoveries are recommended, the same shall be recovered from the contractors running bills/final bill/from ordered/suggested Security Deposit/retention money. The Contractor shall not rise any dispute on any such account and the same shall not be arbitrable. 9. CONTRACTOR TO INDEMNIFY THE OWNER The Contractor shall indemnify the Owner and every member, officer and employee of the Owner, also the Engineer-in-Charge/Site-in-Charge and his staff against all the actions, proceedings, claims, demands, costs, expenses, whatsoever arising out of or in connection with the works and all actions, proceedings, claims, demands, costs, expenses which may be made against the Owner for or in respect of or arising out of any failure by the Contractor in the performance of his obligations under the contract. The Contractor shall be liable for or in respect of or in consequence of any accident or injury to any workmen or other person in the employment of the Contractor or his sub contractor and Contractor shall indemnify and keep indemnified the Owner against all such damages, proceedings, costs, charges and expenses whatsoever in respect thereof or in relation thereto. 10. LIQUIDATED DAMAGES i) In case of any delay in completion of the work beyond the CDD, the Owner shall be entitled to be paid Liquidated Damages by the Contractor. The liquidated damages shall be initially at the rate of 0.5% (half percent) of the total contract value for every week of the delay subject to a maximum of 5% of the total contract value. The liquidated damages shall be recovered by the Owner out of the amounts payable to the Contractor or from any Bank Guarantees or Deposits furnished by the Contractor or the Retention Money retained from the Bills of the Contractor, either under this contract or any other contract. The Contractor shall be entitled to give an acceptable unconditional Bank Guarantee in lieu of such a deduction if Contractor desires any decision on a request for time extension. Once a final decision is taken on the request of the Contractor or otherwise, the LD shall be applicable only on the basic cost of the contract and on each full completed week(s) of delay (and for part of the week, a pro-rata LD amount shall be applicable). This final calculation of LD shall be only on the value of the unexecuted portion/quantity of work as on the CDD.
ii)
iii)
iv)
v)
Contractor agrees with the Owner, that the above represents a genuine pre-estimate of the damages which the Owner will suffer on account of delay in the performance of the work by Contractor. The Contractor further agrees that the LD amount is over and above any right which owner has to risk purchase under Clause 12.4 and any right to get the defects in the work rectified at the cost of the contractor.
11.
DEFECTS AFTER TAKING CONTRACT BY OWNER
OVER
OR
TERMINATION
OF
WORK
The Contractor shall remain responsible and liable to make good all losses or damages that may occur/appear to the work carried out under this Contract within a period of 12 months from date of issue of the Completion Certificate and/or the date of Owner taking over the work, which ever is earlier. The Contractor shall issue a Bank Guarantee to the Owner in the sum of 10% of the work entrusted in the Contract, from any nationalised Bank acceptable to the Owner and if however, the Contractor fails to furnish such a Bank Guarantee the Owner shall have right to retain the Security Deposit and Retention Money to cover the 10% of the Guarantee amount under this clause and to return/refund the same after the expiry of the period of 12 months without any interest thereon. 12. 12.1 12.2 TERMINATION OF CONTRACT The owner may terminate the contract at any stage of the construction for reasons to be recorded in the letter of termination. The Owner inter alia may terminate the Contract for any or all of the following reasons that the contractor a) b) has abandoned the work/Contract. has failed to commence the works, or has without any lawful excuse under these conditions suspended the work for 15 consecutive days. has failed to remove materials from the site or to pull down and replace the work within 15 days after receiving from the Engineer written notice that the said materials or work were condemned and/or rejected by the Engineer under specified conditions. has neglected or failed to observe and perform all or any of the terms acts, matters or things under this Contract to be observed and performed by the Contractor.
c)
d)
e)
has to the detriment of good workmanship or in defiance of the Engineer's instructions to the contrary sub-let any part of the Contract. has acted in any manner to the detrimental interest, reputation, dignity, name or prestige of the Owner. has stopped attending to work without any prior notice and prior permission for a period of 15 days. has become untraceable. has without authority acted in violation of the terms and conditions of this contract and has committed breach of terms of the contract in best judgement of the owner. has been declared insolvent/bankrupt. in the event of sudden death of the Contractor.
f)
g)
h) i)
j) k) 12.3
The owner on termination of such contract shall have the right to appropriate the Security Deposit, Retention Money and invoke the Bank Guarantee furnished by the contractor and to appropriate the same towards the amounts due and payable by the contractor as per the conditions of Contract and return to the contractor excess money, if any, left over.
12.4 In case of Termination of the contract, Owner shall have the right to carry out the unexecuted portion of the work either by themselves or through any other contractor(s) at the risk and cost of the Contractor. In view of paucity of time, Owner shall have the right to place such unexecuted portion of the work on any nominated contractor(s). However, the overall liability of the Contractor shall be restricted to 100 % of the total contract value. 12.5 The contractor within or at the time fixed by the Owner shall depute his authorised representative for taking joint final measurements of the works executed thus far and submit the final bill for the work as per joint final measurement within 15 days of the date of joint final measurement. If the contractor fails to depute their representative for joint measurement, the owner shall take the measurement with their Engineer-in-Charge/Site-in-Charge or any other outside representatives. Such a measurement shall not be questioned by the Contractor and no dispute can be raised by the Contractor for purpose of Arbitration. The Owner may enter upon and take possession of the works and all plant, tools, scaffoldings, sheds, machinery, power operated tools and steel, cement and other materials of the Contract at the site or around the site and use or employ the same for completion of the work or employ any other contractor or other person or persons to
12.6
completion of the work or employ any other contractor or other person or persons to complete the works. The Contractor shall not in any way object or interrupt or do any act, matter or thing to prevent or hinder such actions, other Contractor or other persons employed for completing and finishing or using the materials and plant for the works. When the works shall be completed or as soon thereafter the Engineer shall give a notice in writing to the Contractor to remove surplus materials and plant, if any, and belonging to the Contractor except as provided elsewhere in the Contract and should the Contractor fail to do so within a period of 15 days after receipt thereof the Owner may sell the same by public auction and shall give credit to the contractor for the amount realised. The Owner shall thereafter ascertain and certify in writing under his hand what (if anything) shall be due or payable to or by the Owner for the value of the plant and materials so taken possession and the expense or loss which the Owner shall have been put to in procuring the works, to be so completed, and the amount if any, owing to the Contractor and the amount which shall be so certified shall thereupon be paid by the Owner to the Contractor or by the Contractor to the Owner, as the case may, and the Certificate of the Owner shall be final and conclusive between the parties. 12.7 When the contract is terminated by the Owner for all or any of the reasons mentioned above the Contractor shall not have any right to claim compensation on account of such termination. FORCE MAJEURE Any delay in or failure of the performance of either part hereto shall not constitute default hereunder or give rise to any claims for damage, if any, to the extent such delays or failure of performance is caused by occurrences such as Acts of God or an enemy, expropriation or confiscation of facilities by Government authorities, acts of war, rebellion, sabotage or fires, floods, explosions, riots, or strikes. The Contractor shall keep records of the circumstances referred to above and bring these to the notice of the Engineer-in-Charge/Site-in-Charge in writing immediately on such occurrences. The amount of time, if any, lost on any of these counts shall not be counted for the Contract period. Once decision of the Owner arrived at after consultation with the Contractor, shall be final and binding. Such a determined period of time be extended by the Owner to enable the Contractor to complete the job within such extended period of time. If Contractor is prevented or delayed from the performing any of its obligations under this Agreement by Force Majeure, then Contractor shall notify Owner the circumstances constituting the Force Majeure and the obligations performance of which is thereby delayed or prevented, within seven days of the occurrence of the events. ARBITRATION
13. 13.1.
13.2.
14.
time arise between the parties hereto touching or concerning the agreement, meaning, operation or effect thereof or to the rights and liabilities of the parties or arising out of or in relation thereto whether during or after completion of the contract or whether before after determination, foreclosure, termination or breach of the agreement (other than those in respect of which the decision of any person is, by the contract, expressed to be final and binding) shall, after written notice by either party to the agreement to the other of them and to the Appointing Authority hereinafter mentioned, be referred for adjudication to the Sole Arbitrator to be appointed as hereinafter provided.
14.2 The appointing authority shall either himself act as the Sole Arbitrator or nominate some officer/retired officer of Hindustan Petroleum Corporation Limited (referred to as owner or HPCL) or a retired officer of any other Government Company in the Oil Sector of the rank of Ch. Manager & above or any retired officer of the Central Government not below the rank of a Director, to act as the Sole Arbitrator to adjudicate the disputes and differences between the parties. The contractor/vendor shall not be entitled to raise any objection to the appointment of such person as the Sole Arbitrator on the ground that the said person is/was an officer and/or shareholder of the owner, another Govt. Company or the Central Government or that he/she has to deal or had dealt with the matter to which the contract relates or that in the course of his/her duties, he/she has/had expressed views on all or any of the matters in dispute or difference. 14.3
In the event of the Arbitrator to whom the matter is referred to, does not accept the appointment, or is unable or unwilling to act or resigns or vacates his office for any reasons whatsoever, the Appointing Authority aforesaid, shall nominate another person as aforesaid, to act as the Sole Arbitrator. Such another person nominated as the Sole Arbitrator shall be entitled to proceed with the arbitration from the stage at which it was left by his predecessor. It is expressly agreed between the parties that no person other than the Appointing Authority or a person nominated by the Appointing Authority as aforesaid, shall act as an Arbitrator. The failure on the part of the Appointing Authority to make an appointment on time shall only give rise to a right to a Contractor to get such an appointment made and not to have any other person appointed as the Sole Arbitrator.
14.4
14.5 14.6
The Award of the Sole Arbitrator shall be final and binding on the parties to the Agreement. The work under the Contract shall, however, continue during the Arbitration proceedings and no payment due or payable to the concerned party shall be withheld (except to the extent disputed) on account of initiation, commencement or pendency of such proceedings. The Arbitrator may give a composite or separate Award(s) in respect of each dispute or difference referred to him and may also make interim award(s) if necessary.
14.7
14.8 The fees of the Arbitrator and expenses of arbitration, if any, shall be borne equally by _____________________________________________________________________________ Annexure 7 (General Terms & Conditions of Works Contract) Systems & Procedures Purchase Manual VI.48 HPCL, Mumbai REVISION : PUR-024/13.02.2008
the parties unless the Sole Arbitrator otherwise directs in his award with reasons. The lumpsum fees of the Arbitrator shall be Rs. 40,000/- per case for transportation contracts and Rs. 60,000/- for engineering contracts and if the sole Arbitrator completes the arbitration including his award within 5 months of accepting his appointment, he shall be paid Rs. 10,000/- additionally as bonus. Reasonable actual expenses for stenographer, etc. will be reimbursed. Fees shall be paid stagewise i.e. 25% on acceptance, 25% on completion of pleadings/documentation, 25% on completion of arguments and balance on receipt of award by the parties 14.9 Subject to the aforesaid, the provisions of the Arbitration and Conciliation Act, 1996 or any statutory modification or re-enactment thereof and the rules made thereunder, shall apply to the Arbitration proceedings under this Clause.
14.10 The Contract shall be governed by and constructed according to the laws in force in India. The parties hereby submit to the exclusive jurisdiction of the Courts situated at _______ (say Mumbai*) for all purposes. The Arbitration shall be held at ________ (say Mumbai*) and conducted in English language. 14.11 The Appointing Authority is the Functional Director of Hindustan Petroleum Corporation Limited. (Note:- * = While printing the GTCs, each Purchasing Authorities at various location, may mention the correct place before printing the GTC and not leave Clause 14.10 blank or as stated above. Bracketed portion is to be removed.
15. 15.1. GENERAL Materials required for the works whether brought by the or supplied by the Owner shall be stored by the contractor only at places approved by Engineer-in-Charge/Site-in-Charge. Storage and safe custody of the material shall be the responsibility of the Contractor. Owner and/or Engineer-in-Charge/Site-in-Charge connected with the contract, shall be entitled at any time to inspect and examine any materials intended to be used in or on the works, either on the site or at factory or workshop or at other place(s) manufactured or at any places where these are laying or from which these are being obtained and the contractor shall give facilities as may be required for such inspection and examination. In case of any class of work for which there is no such specification supplied by the owner as is mentioned in the tender documents, such work shall be carried out in accordance with Indian Standard Specifications and if the Indian Standard Specifications do not cover the same the work should be carried out as per standard Engineering practice subject to the approval of the Engineer-in-Charge/Site-in-Charge. Should the work be suspended by reason of rain, strike, lockouts or other cause the
15.2.
15.3.
15.4.
contractor shall take all precautions necessary for the protection of the work and at his own expense shall make good any damages arising from any of these causes. 15.5 The contractor shall cover up and protect from injury from any cause all new work also for supplying all temporary doors, protection to windows and any other requisite protection for the whole of the works executed whether by himself or special tradesmen or subcontractors and any damage caused must be made good by the contractors at his own expense.
15.6
If the contractor has quoted the items under the deemed exports, then it will be the responsibility of the contractor to get all the benefits under deemed exports from the Government. The Owners responsibility shall only be limited to the issuance of required certificates. The quotation will be unconditional and phrases like subject to availability of deemed exports benefit etc. will not find place in it. Integrity Pact : Effective 1st September, 2007, all tenders and contracts shall comply with the requirements of the Integrity Pact (IP) if the value of such tenders or contracts exceed Rs.1 crore. Failure to sign the Integrity Pact shall lead to outright rejection of bid. Grievances of parties participating or intend to participate in the tender shall be addressed in writing to the officer designate of the Grievance Redressal Cell where the tenders have to be submitted within the stipulated period. Detailed mechanism of Grievance Redressal is available on the HPCL website.
16.
# 17.
ANNEXURE - 8 (SPECIMEN)
BANK GUARANTEE FOR MOBILISATION ADVANCE (On Non-Judicial stamp paper of appropriate value) Hindustan Petroleum Corporation Ltd., (Address as applicable)
1.
In consideration of M/s Hindustan Petroleum Corporation Ltd., Government of India Company registered under the Companies Act, 1956 having its Registered Office at 17, Jamshedji Tata Road, Bombay - 400 020 (hereinafter called the "Corporation" which expression shall include its successors in business and assigns having placed an order on M/s ___________________________________ a partnership firm/sole proprietor/a Company registered under the Companies Act 1956, having its office at ________(complete address) ______________ (hereinafter called "the supplier/contractor" (which expression shall include its successors in business and assigns) vide Purchase Order No. _________________ dated __________________ for (specify nature of job) ________________ (hereinafter called "the Order" which expression shall include any amendments / alterations thereto as issued by "the Corporation") for the supply of goods to/the execution of service for "the Corporation" and having agreed to pay the suppliers as and by way of advance upto a sum of Rupees __________________ being _________ % of the value of "the Order" in terms of "the order" on production of an acceptable Bank Guarantee for an amount of Rs. _________________.
2.
We, __________________ Bank (hereinafter referred to as "the Bank") , do at the request and on behalf of "The Suppliers / Contractor" hereby agree to pay to "the Corporation" without any demur on first demand an amount not exceeding Rs. ________ (in words) against any loss or damage, costs, to or suffered by "the Corporation" by reason of any breach on the part of "the Supplier/Contractor" of any of the terms and conditions of the said "Order".
_____________________________________________________________________________ Annexure 8 ( Bank Gaurantee and Mobilisation Advance) Systems & Procedures Purchase Manual VI.52 HPCL, Mumbai
3.
We, ________________ Bank, further agree that "the Corporation" shall be the sole judge whether the said "Supplier/Contractor" has committed breach of any of the terms and conditions of "the Order" and the extent of loss, damage, cost, charges and expenses suffered or incurred or would be suffered or incurred by "the Corporation" on account thereof and we waive in favour of "the Corporation" all the rights and defense to which we as guarantors and/or the supplier may be entitled to.
4.
We, __________________ Bank, further agree that the amount demanded by "the Corporation" as such shall be final and binding on "the Bank" as to "the Bank's" liability to pay the amount demanded and "the Bank" undertake to pay "the Corporation" the amount so demanded on first demand without any demur notwithstanding any dispute raised by "the Supplier/Contractor" or any suit or other legal proceedings including arbitration pending before any court, tribunal or arbitrator relating thereto, our liability under this guarantee being absolute and unconditional.
5.
We, _____________ Bank, further agree that the guarantee herein contained shall remain in full force and continue to have full effect so long as the said amount remains unadjusted.
6.
We, _______________ Bank, further agree with "the Corporation" that "the Corporation" shall have the fullest liberty without any consent and without affecting in any manner our obligations hereunder to vary any of the terms and condition of the said "Order" or to extended time of performance by "the Supplier/Contractor" from time to time or to postpone for any time or from time to time any of the powers exercisable by "the Corporation" against "the Supplier / Contractor" and to forbear to enforce any of the terms and conditions relating to "the Order" and we shall not be relieved from our liability by reason of any such variation or extension being granted to "the Corporation" or for any forbearance, act or omission of "the Supplier/Contractor" or any such matter of things, whatsoever which under the law relating to sureties would, but for these provisions, have the effect of relieving us.
7.
We, __________________ Bank, hereby lastly undertake not to revoke this guarantee during its currency except with the previous consent of "the Corporation" in writing.
8.
Not withstanding anything contained herein above : i) Our liability under this guarantee shall not exceed Rs..........
ii) iii)
This
Bank Guarantee shall be valid
upto
and including .......; and
We are liable to pay the guarantee amount or any part thereof under this Bank Guarantee only and only if you serve upon us a written claim or demand on or # before the expiry of 30 days from the date of expiry of this guarantee.
9.
This guarantee shall not be determined or affected by the liquidation or winding up, dissolution or change of constitution or insolvency of "the Supplier/Contractor", but shall in all respects and/for all purposes be binding and operative on "the Bank" until payment of all moneys payable by "the Supplier/Contractor" in terms thereof.
10.
"The Bank" has power to issue this guarantor in favour of "the Corporation" in terms of the documents and/or the agreement/contract or MOU entered into between "the Supplier/Contractor" and "the Bank" in this regard.
IN WITNESS whereof, Bank of _________________, has executed ____________________ on _________________ 199 .
this document at
____________________________ (FOR _________ BANK) (by its constituted attorney) (signature of a person authorized to sign on behalf of "the Bank")
ANNEXURE -9 (SPECIMEN)
BANK GUARANTEE FOR ADVANCES
(on non-judicial stamp paper of appropriate value)
To, Hindustan Petroleum Corporation Ltd., (Address as applicable)
In CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM CORPORATION LIMITED, a Government of India Company registered under the Companies Act 1956, having its registered office at 17, Jamshedji Tata Road, Bombay - 400 020 (hereinafter called "the Corporation" which expression shall include its successors in business and assigns) having placed an order on Messrs ___________________ a partnership firm/sole proprietor business/ a company registered under the Companies Act, 1956 having its office at _______________________ (hereinafter called "the Supplier" which expression shall include its successors and assigns) vide Order No. ____________ dated _________ (hereinafter called "the Order" which expression shall include any amendments/alterations thereto as issued by "the Corporation") for the supply of goods/to the execution of Service for "the Corporation" and having agreed to pay the supplier as and by way of advance upto a sum of Rs. _________ (Rupees ____________________________________ only ) being _____ % of the value of the order in terms of "the Order" on production of an acceptable Bank Guarantee for an amount of Rs. ____________ (Rupees __________________________________ only)
1.
We, ____________________ Bank having office at _________________ (hereafter referred to as "the Bank") do at the request and on behalf of "the Supplier's" hereby agree to pay "the Corporation" without any demur on first demand an amount not exceeding Rs. _________ (Rs. ______________________ only) against any loss or damage, costs, charges and expenses caused to or suffered or would be caused to or suffered by "the Corporation" by reason of any breach on the part of "the Supplier" of any of the terms and conditions of the said order.
_____________________________________________________________________________ Annexure 9 ( Bank Guarantee for Advances) Systems & Procedures Purchase Manual VI.55 HPCL, Mumbai
2.
We, _______________ Bank further agree that "the Corporation" shall be sole judge whether the said "Supplier" has committed breach of any of the terms and conditions of "the Order" and the extent of loss, damage, cost charges and expenses suffered or incurred or would be suffered or incurred by "the Corporation" on account thereof and we waive in favour of "the Corporation" all the rights and defences to which we as guarantors and/or "the Supplier" may be entitled to.
3.
We, ___________________ Bank further agree that the amount demanded by "the Corporation" as such shall be final and binding on "the Bank" as to "the Bank's" liability to pay and amount demanded and "the Bank" undertake to pay "the Corporation" the amount so demanded on first demand and without any demur notwithstanding any dispute raised by "the Supplier" or any suit or other legal proceedings including arbitration pending before any court tribunal or arbitrator relating thereto, our liability under this guarantee being absolute and unconditional. (We __________________ Bank further agree that the guarantee herein contained shall remain in full force and continue to have full effect so long as the said amount remains unadjusted, provided, however, the value of the guarantee shall progressively reduce upon any adjustments being made by "the Corporation" against the said advance and "the Corporation" rights shall extend only to the value of the unadjusted amount.
4.
We, __________________ Bank further agree with "the Corporation" that "the Corporation" shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said "order"/or to extend time of performance by "the Supplier" from time to time or to postpone for any time or from time to time any of the powers exercisable by "the Corporation" against "the Supplier" and to forbear to enforce any of the terms and conditions relating to "the Order" and we shall not be relieved from our liability by reason of any such variation or extension being granted to "the Supplier" or for any forbearance, act or omission on "the Supplier" or by any such matter or things whatsoever which under the law relating to suretics would be for this provisions have the effect of relieving us.
5. Not withstanding anything contained herein above : i) Our liability under this guarantee shall not exceed Rs.......... ii) This Bank Guarantee shall be valid upto and including .......; and iii) We are liable to pay the guarantee amount or any part thereof under this Bank Guarantee only and only if you serve upon us a written claim or demand on or # before the expiry of 30 days from the date of expiry of this guarantee 6. We, ________________ Bank further undertake not to revoke this guarantee during its currency except with the previous consent of "the Corporation" in writing.
7. We, ____________________ Bank lastly agree that "the Bank" liability under this guarantee shall not be affected by any change in the constitution of "the Supplier".
8. We, _________________ Bank has power to issue this guarantee in favour of "the Corporation" in terms of the documents and/or the agreement/contract or MOU entered into between"the supplier" and "the Bank" in this regard.
IN WITNESS WHEREOF the Bank has executed this document on this ________________ day of ___________________
____________________________ (FOR _________ BANK) (by its constituted attorney) (signature of a person authorized to sign on behalf of "the Bank")
ANNEXURE - 10
(SPECIMEN)
BANK GUARANTEE FOR PERFORMANCE OF THE OBLIGATIONS OF SUPPLIER CONTRACTOR (on non-judicial stamp paper of appropriate value) To, Hindustan Petroleum Corporation Ltd., (Address as applicable)
IN CONSIDERATION OF THE HINDUSTAN PETROLEUM CORPORATION LTD. a Government of India Company registered under the Companies Act, 1956, having its registered office at 17, Jamshedji Tata Road, Bombay - 400 020 (hereinafter called "the Corporation" which expression shall include its successors and assigns) having awarded to M/s ___________________________________________________ a partnership firm/sole proprietor business/a company registered under the Companies Act, 1956 having its office at ______________________________ (hereinafter referred to as "the Supplier" which expression shall wherever the subject or context so permits includes its successors and assigns) a supply contract in terms inter alia, of "the Corporation's" Order No. ____________ dated __________________ and the General purchase conditions of "the Corporation" and upon the condition of "supplier's" furnishing security for the performance of "the Supplier's" obligations and/or discharge of "the supplier's" liability under and/or in connection with the said supply contract upto a sum of Rs. _______________ (Rupees_____________________) amounting to 10% (ten percent) of the total contract value. We, ______________________ (hereinafter called "the Bank" which expression shall include its successors and assigns) hereby jointly and severally undertake and guarantee to pay to "the Corporation" in rupees forthwith on demand in writing and without protest or demur of any and all moneys anywise payable by "the Supplier" to "the Corporation" under, in respect of or in connection with the said supply contract inclusive of all the Corporation's losses and damage and costs, (inclusive between attorney and client) charges, and expenses and other moneys anywise payable in respect of the above as specified in any notice of demand made by "the Corporation" to the Bank with reference to this Guarantee upto and aggregate limit of Rs.___________ (Rupees __________________________ ) and "the Bank" hereby agrees with "the Corporation" that:
_____________________________________________________________________________ Annexure 10 ( Bank Gaurantee for Perf. Of Supplier/Contractor) Systems & Procedures Purchase Manual VI.58 HPCL, Mumbai
1.
This Guarantee/Undertaking shall be a continuing Guarantee / Undertaking and shall remain valid and irrecoverable for all claims of "the Corporation" and liabilities of "the Supplier" arising upto and until midnight of _______________ This Guarantee/Undertaking shall be in addition to any other guarantee or security whatsoever that "the Corporation" may now or any time anywise have in relation to "the Supplier's obligation/liabilities under and/or connection with the said supply contract, and "the Corporation" shall have full authority to take recourse to or enforce this security in preference to the other security(ies) at its sole discretion and no failure on the part of "the Corporation" to enforcing or requiring enforcement to any other security shall have the effect of releasing "the Bank" from its full liability hereunder. "The Corporation" shall be at liberty without reference to "the Bank" and without affecting the full liability of "the Bank" hereunder to take any other security in respect of "the Supplier's" obligation and/or liabilities under or in connection with the said supply contract and to vary the term vis-a-vis "the supplier" of the said supply contract or to grant time and/or indulgence to "the Supplier" or to reduce or to increase or otherwise vary the prices of the total contract value or to release or to forebear from enforcement of all or any of the obligations of "the supplier" under the said supply contract and/or the remedies of "the Corporation" under any other security(ies) now or hereafter held by "the Corporation" and no such dealing(s), variation(s) or other indulgence(s) or agreement(s) with "the supplier" or release of forbearance whatsoever shall have the effect of releasing "the Bank" from its full liability to "the Corporation" hereunder or of prejudicing rights of "the Corporation" against "the Bank". This Guarantee/Undertaking shall not be determined or affected by the liquidation or winding up, dissolution or change of constitution or insolvency of "the supplier" but shall in all respects and for all purposes be binding and operative until payment of all moneys payable to "the Corporation" in terms hereof. "The Bank" hereby waives all rights at any time inconsistent with the terms of this Guarantee/Undertaking and the obligations of "the Bank" in terms hereof shall not be anywise affected or suspended by reason of any dispute having been raised by "the suppliers" (whether or not pending before any arbitrator, officer, tribunal or court) or any denial of liability by "the supplier" or any other order of communication whatsoever by "the supplier" stopping or preventing or purporting to stop or prevent any payment by "the Bank" to "the Corporation" in terms hereof.
2.
3.
4.
5.
6.
The amount stated in any notice of demand addressed by "the Corporation" to "the Bank" as liable to be paid to "the Corporation" by "the supplier" or as suffered or incurred by "the Corporation" on account of any losses or damages or costs, charges/and/or expenses shall be as between "the Bank" and "the Corporation" be conclusive of the amount so liable to be paid to "the Corporation" or suffered or incurred by "the Corporation", as the case may be, and payable by "the Bank" to "the Corporation", in terms hereof. Not withstanding anything contained herein above : Our liability Rs.......... under this guarantee be shall valid not upto exceed and
7. i) ii)
This Bank Guarantee including .......; and
shall
iii) We are liable to pay the guarantee amount or any part thereof under this Bank Guarantee only and only if you serve upon us a written claim or demand on or # before the expiry of 30 days from the date of expiry of this guarantee. 8. "The Bank" has power to issue this guarantee in favour of "the Corporation" in terms of the documents and/or the agreement/contract or MOU entered into between "the supplier" and "the Bank" in this regard. this
IN WITNESS Where of __________________ Bank, has executed document at ________________ on _______________ 199 .
____________________________ Bank (by its constituted a sign attorney) (signature of person authorized to on behalf of "the Bank")
ANNEXURE - 11
(SPECIMEN) COMPOSITE BANK GUARANTEE FOR MOBILISATION DEPOSIT/RETENTION MONEY/PERFORMANCE GUARANTEE ADVANCE, SECURITY
(On Non-Judicial stamp paper of appropriate value) TO : Hindustan Petroleum Corporation Limited (Address as applicable) IN CONSIDERATION a Act, Tata and OF 1956, Road, MESSRS. having HINDUSTAN its PETROLEUM registered office CORPORATION under at the 17, "The in on
LIMITED, Companies Jamshedji business Messers
Government
of India Company Bombay-20 having
registered (hereinafter placed a
called order
Corporation"
(which
expression shall include its an
successor
assigns)
............................
partnership
firm/sole
proprietor business/a company registered under the Companies Act, 1956 having its office at .............. (hereinafter called "the supplier" (which expression (hereinafter include services any for shall called include "the executors, order" to of and supply which "the goods "the for of administrators and assigns) vide order dated.............. expression order" to/execution a) b) shall of issued No.......................
amendments/alterations "the Corporation"
by "the Corporation") for the
Corporation" having agreed : not to insist upon immediate payment of Security deposit the fulfilment and performance of the said order to pay "the supplier" as and by way of advance upto a sum Rupees__________ (Rupees _____________________________ being ____% of the value of "the order"; c) that of "the "the supplier" shall furnish a security for the with for the said "the the and performance of "the supplier's" obligations and/or supplier's" liability in connection with and to "the accept Corporation" a composite having Bank agreed Guarantee "order"; supplier" discharge only)
mobilisation
advance, security deposit, retention money
performance guarantee.
_____________________________________________________________________________ Annexure 11 (Composite Bank Gaurantee for Mobil. Systems & Procedures Purchase Manual Advance,Security Dep. Etc.) VI.61 HPCL, Mumbai
We,
.................................................... office at referred to as "the Bank" which expression
Bank shall
having
............................................
(hereinafter
includes its successors and assigns) at the request and on behalf of "the supplier" hereby agree to pay to "the Corporation"without any demur on first demand an amount not exceeding against Rs........... any loss or for and (Rupees.............................only) Corporation"
damage, costs, charges and expenses caused to or suffered by "the by reason of non performance and fulfilment or any breach on the part of "the supplier" of any of the terms conditions of the said "order". 2. We, ............................. Bank further agree "the in Corporation" terms thereof of shall or be sole judge whether of any the terms "Supplier" has failed to perform or fulfill the said committed breach conditions cost, and we suffered or rights and "the order" and the extent of loss, that said "order" and be the "the damage,
charges and expenses suffered or incurred or would waive in the favour of "the Corporation" all
incurred by "the Corporation" on account thereof defences to which we as guarantors and/or
Supplier" may be entitled to. 3. We, that be ................................. final and to binding on "the Bank" as pay and Bank to further "the and agree shall 's Bank" any legal court, under
the amount demanded by "the Corporation" as such and the amount demanded without any demur "the
Bank"
liability first
undertake to pay "the Corporation" the amount so demanded on demand notwithstanding dispute raised by "the Supplier" or any suit or other including arbitration pending before any
proceedings
tribunal or arbitrator relating thereto, our liability this guarantee being absolute and unconditional. 4. We, .................................. Bank further
agree the in of to
with "the Corporation" that "the Corporation" shall have fullest liberty without our consent and without affecting and conditions by of "the the said "order"/or to Supplier" from time extend to time or
any manner our obligations hereunder to vary any of the terms performance time
postpone enforce order" reason "the the
for any time to time any of the powers any and of the terms and conditions
exercisable to "the by to on "the or
by "the Corporation" against "the Supplier" and to forbear to relating we shall not be relieved from our liability granted by matter to ommission
of any such variation or extension being Supplier" or for any forbearance, act or of "the Corporation" or any to "the Supplier" or
part
indulgence such
Corporation" things
by any
whatsoever which under the law relating
sureties
would but for this provision have the effect of relieving us. 5. However, Guarantee performance the it has been agreed between "the Supplier" and that for there shall be only the advance and one Composite both security "the Bank till of bill to the
Corporation"
deposit
guarantee/Retention Money @ of ____% valid
end of the defects liability period as per the terms with the recovery of advance @ ______% per
the P.O. No. _______________ dated ______________ and that in proportion the as till fully full same amount/value automatically stands credited the case may be and will continue to be the entire advance of
defects liability account/security deposit or retention money credited/treated is of Rs._______________________ Rs.__________________ fully valid in as
recovered from the running bills and from the date recovery of the advance of money/defects unto
this ____% all
guarantee automatically, shall stand valid towards the retention liability,
respects
a further period of 3 (three)
months,
per the Purchase Order of "the Corporation". 6. i) Not withstanding anything contained herein above : Our liability under this guarantee shall not exceed
Rs.......... ii) This Bank Guarantee shall be valid upto and
including .......; and iii) We are liable to pay the guarantee amount or any part
thereof under this Bank Guarantee only and only if you serve upon us a written claim or demand on or before the expiry of
30 days from the date of expiry of this guarantee. _____________________________________________________________________________ Annexure 11 (Composite Bank Gaurantee for Mobil. Systems & Procedures Advance,Security Dep. Etc.) HPCL, Mumbai Purchase Manual VI.63 REVISION : PUR-030/22.08.2008
7.
We,
........................................ not to revoke this guarantee during the previous consent of "the with
Bank its
further currency in
undertake except writing. 8. We, not
Corporation"
......................................... be
Bank
lastly shall "the of
agree that "the Bank"'s liability under this guarantee affected by any change in the constitution Supplier".
9.
"The "the
Bank"
has power to issue this guarantee in in terms of the documents
favour and/or
of the
Corporation"
Agreement/Contract or MOU entered into between "the Supplier" and "the Bank" in this regard. IN WITNESS WHEREOF the Bank has executed this document on this
............................. day of ...........................
For ........................ Bank (by its constituted attorney) (Signature of a person authorised to sign on behalf of "the Bank")*
ANNEXURE - 12
(SPECIMEN)
(INDEMNITY BOND)
(TO BE NOTORISED AND ON STAMP PAPER OF APPROPRIATE VALUE)
TO, HINDUSTAN PETROLEUM CORPN. LTD. (Address as applicable) Dear Sirs, WHEREAS Hindustan Petroleum Corporation Limited, a Government of India Company, registered under the Companies Act, 1956, having its Registered Office at 17, Jamshedji Tata Road, Bombay - 400020 (hereinafter called "the Indemnified" which expression shall include its successors and assigns) has awarded to M/s. .......................................... a Partnership Firm/Sole Proprietor Business/a company having its Registered Office at ....................................................... (hereinafter called "the Indemnifier", which expression shall include its successors and assigns) a contract for conditions set out, inter-alia, in "the Indemnified" 's Purchase Order No. ............................. dated .................. (hereinafter referred to as "The Said Contract") to "the Indemnifier". AND WHEREAS "the Indemnified" has agreed to supply to "the Indemnifier" raw material/components to the value of Rs......... (Rupees .............................................. only) for incorporation in fabrication by "the Indemnifier" in terms of "the said contract", the components/raw material to be supplied by "the Indemnified" to "the Indemnifier" for the said fabrication, (hereinafter, for the sake of brevity, referred to as "the said material") and pending fabrication and delivery at job-site of the completed fabricated work(s) incorporating "the said material" and accounting for "the said material" shall be under the sole custody and charge of "the Indemnifier" and shall be kept, stored, altered, worked upon and/or fabricated at the sole risk and expenses of "the Indemnifier" ;
________________________________________________________________________________ Annexure12 (Indemnity Bond) Systems & Procedures Purchase Manual VI.65 HPCL, Mumbai
As a Pre-condition to the supply of "the said material" by "the Indemnified" to "the Indemnifier", the Indemnified" has required "the Indemnifier" to furnish to "the Indemnified" security in the manner and upon terms and conditions hereinafter indicated : NOW THEREFORE, in consideration of the premises aforesaid "the Indemnifier" Shri ..................................., Shri ............................ all directors/partners/sole proprietor of "the Indemnifier" in consideration of aforesaid "contract" hereby irrevocably and unconditionally and jointly and severally undertake to idemnify and always keep "the Indemnified" from and against all loss, damage and destruction (inclusive but not limited to any or all loss or damage or destruction to or of "the said material" or any item or part thereof) by theft, fire, flood, storm, tempest, lightning, explosion, storage, chemical or physical action or reaction, bending, wrapping, exposure, rusting, faulty workmanship, faulty fabrication or faulty method of technique of fabrication, riot, civil commotion or other act of omission or commission whatsoever within or beyond the control of "the Indemnifier", misuse and misappropriation by "the Indemnifier's" servants and/or agents whatsoever to, of or in "the said material" or any part or item thereof between the date that the same or relative part or item thereof was supplied to "the Indemnifier" upto and until the return to "the Indemnified" on due dates of "the said material" or relative part or item thereof or completed fabricated work(s) incorporating the said material AND jointly and severally undertake to pay to "the Indemnified" forthwith on first demand in writing without protest or demur the value of "the said material" or item part thereof lost, damaged, destroyed, misused and/or misappropriated, as the case may be, inclusive of "the Indemnified" 's cost and expenses (inclusive but not limited to handling, transportation, cartage, insurance, freight, packing and inspection costs and/or expenses) as specified in the said demand. AND "the Indemnifier" hereby agree with "the Indemnified" that : 1. This Indemnity shall remain valid and irrevocable until the settlement of all claims of "the Indemnified" arising hereunder : This Indemnity shall be in addition to any other Indemnity, Guarantee or Security whatsoever that "the Indemnified" may now or any time anywise have in relation to "the Indemnifier" 's obligations/liabilities under and/or in connection with the said contract inclusive of "the said material" and "the Indemnified" shall have full authority to
2.
take recourse to or enforce this security in preference to the other security (ies) at its sole discretion, and no failure on the part of "the Indemnified" in enforcing or requiring enforcement of any other security shall have the effect of releasing "the Indemnifier" from its full liability hereunder : 3. "The Indemnified" shall be at liberty without reference to "the Indemnifier" and without affecting the full liability of "the Indemnifier" hereunder to take any other such security in respect of "the Indemnifier" 's obligations and/or liabilities under or in connection with the "said contract" inclusive of "the said material" and to vary the terms vis-avis "the Indemnifier" of "the said contract" or to grant time and/or indulgence to "the Indemnifier" or to reduce or to increase or otherwise vary the prices or the total contract value or the quantity, quality, description or value of the said material or to release or to forbear from endorsement of all or any of the obligations of "the Indemnifier" under the said contract (inclusive of anything in respect of "the said material") and/or the remedies of "the Indemnified" under any other security(ies) now or hereinafter held by "the Indemnified" and no such dealing(s), variations(s), reduction(s), increase(s) or other indulgence(s) or arrangement(s) with "the Indemnifier" or release or forbearance whatsoever shall have the effect of releasing "the Indemnifier" from their full liability to "the Indemnified" hereunder or of anywise prejudicing rights of "the Indemnified" against "the Indemnifier" and "the Indemnifier" hereby waive all rights, if any, at any time, inconsistent with the terms of this Indemnity. This Indemnity shall not be determined or affected by the liquidation or winding up, dissolution, or change of constitution or insolvency of "the Indemnifier" and the obligations of "the Indemnifier" in terms hereof shall not be anywise affected or suspended by reason of any dispute or disputes having been raised by "the Indemnifier" (whether now pending before any Arbitrator, Officer, Tribunal or Court) or any denial of liability by "the Indemnifier" or any other order or communication whatsoever by "the Indemnifier" stopping or preventing or purporting to stop or prevent any payment by "the Indemnifier" to "the Indemnified" in terms hereof :
4.
5.
The mere statement made by or on behalf of "the Indemnified" in any notice or demand or other writing addressed to "the Indemnifier" as to any of "the said material" or item or part thereof supplied to "the Indemnifier" having been lost, damaged, destroyed, misused or misappropriated while in the custody of "the Indemnifier" before or after completion of the completed fabricated work(s) incorporating "the said material" and delivery at job site thereof shall as between "the Indemnifier" and "the Indemnified" be conclusive of the factum of "the said material" or item or part thereof having been supplied to "the Indemnifier" and/or the loss, damage, destruction, misuse or misappropriation thereof, as the case may be, while in the custody of "the Indemnifier" and/or prior to the completion of the completed fabricated work(s) and delivery to job site thereof without necessity on the part of "the Indemnified" to produce any documentary proof or other evidence whatsoever in support of this; The amount stated in any notice of demand addressed by "the Indemnified" to "the Indemnifier" as the value of any of "the said material", lost, damaged, destroyed or misused or misappropriated, inclusive relative to the cost and expenses incurred by "the Indemnified" in connection therewith shall as between "the Indemnifier" and "the Indemnified" be conclusive of the value of such "said material" and the said costs and expenses as also of the amount liable to be paid by "the Indemnifer" to "the Indemnified" in terms and for the purpose of, without necessity for "the Indemnfied" to produce any voucher, bill or other documentation or evidence whatsoever in support thereof.
6.
In witness whereof "the Indemnifier" have hereunto set and subscribed his hand this day and year first hereinabove written in the presence of witnesses. Yours faithfully, 1) 2) 3) WITNESSES 1.
2.
ANNEXURE - 13
(SPECIMEN)
(On TO :
BANK GUARANTEE IN LIEU OF EARNEST MONEY Non-Judicial stamp paper of appropriate value) Petroleum Corporation Limited
Hindustan
(Address as applicable) IN CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM CORPORATION LIMITED a Government of India Company registered under the Companies Act, 1956, having its registered office at 17, Jamshedji Tata Road, Bombay-20 (hereinafter called "The Corporation" which expression shall include its successor in business and assigns) issued a tender on Messrs. ................................................ a partnership firm/sole proprietor business/a company registered under the Companies Act, 1956 having its office at (hereinafter called "the Tenderer" which expression shall include its executors, administrators and assigns) against Tender no............ dated .................... (hereinafter called "the tender" which expression shall include any amendments/ alterations to "the tender" issued by "the Corporation") for the supply of goods to/execution of services for "the Corporation" and "the Corporation" having agreed not to insist upon immediate payment of Earnest Money for the fulfilment of the said tender in terms thereof on production of an acceptable Bank Guarantee for an amount of Rs....... (Rupees ................................. only). We, ................................... Bank having office at ..................................................... Bombay (hereinafter referred to as "the Bank" which expression shall include its successors and assigns) at the request and on behalf of "the Tenderer" hereby agree to pay to the Corporation without any demur on first demand an amount not exceeding Rs........... (Rupees ...................................... only) against any loss or damage, costs, charges and expenses caused to or suffered by "the Corporation" by reason of non performance and fulfilment or for any breach on the part of "the Tenderer" of any of the terms and conditions of the said "tender".
________________________________________________________________________________ Annexure 13 ( Bank Guarantee in lieu of Earnest Money) Systems & Procedures Purchase Manual VI.69 HPCL, Mumbai
2.
We, ........................................ Bank further agree that "the Corporation" shall be sole Judge whether the said "Tenderer" has failed to perform or fulfill the said "tender" in terms thereof or committed breach of any of the terms and conditions of "the order" and the extent of loss, damage, cost, charges and expenses suffered or incurred or would be suffered or incurred by "the Corporation" on account thereof and we waive in favour of "the Corporation" all the rights and defences to which we as guarantors and/or "the Tenderer" may be entitled to. We, ................................. Bank further agree that the amount demanded by "the Corporation" as such shall be final and binding on "the Bank" as to "the Bank" 's liability to pay and the amount demanded and "the Bank" to undertake to pay "the Corporation" the amount so demanded on first demand and without any demur notwithstanding any dispute raised by "the Tenderer" or any suit or other legal proceedings including arbitration pending before any court, tribunal or arbitrator relating thereto, our liability under this guarantee being absolute and unconditional.
3.
4.
We, ....................................... Bank further agree with "the Corporation" that "the Corporation" shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder to vary any of the terms and conditions of the said "tender"/or to extend time of performance by "the Tenderer" from time to time or to postpone for any time to time any of the powers exercisable by "the Corporation" against "the Tenderer" and to forbear to enforce any of the terms and conditions relating to "the tender" and we shall not be relieved from our liability by reason of any such variation or extension being granted to "the Tenderer" or for any forbearance, act or ommission on the part of "the Corporation" or any indulgence by "the Corporation" to "the tenderer" or by any such matter or things whatsoever which under the law relating to sureties would but for this provision have the effect of relieving us.
5.
NOTWITHSTANDING anything hereinbefore contained, our liability under this Guarantee is restricted to Rs. ......... (Rupees....................................... only). Our liability under this guarantee shall remain in force until expiration of six months from the due date of opening of the said "tender". Unless a demand or claim under this guarantee is made on us in writing within said period, that is, on or before .................................... all rights of "the Corporation" under the said guarantee shall be forfeited and we shall be relieved and discharged from all liabilities thereunder. We, ........................................ Bank further undertake not to revoke this guarantee during its currency except with the previous consent of "the Corporation" in Writing. We, ......................................... Bank lastly agree that "the Bank" 's liability under this guarantee shall not be affected by any change in the constitution of "the Tenderer". "The Bank" has power to issue this guarantee in favour of "the Corporation" in terms of the documents and/or the Agreement/Contract or MOU entered into between "the Tenderer" and "the Bank" in this regard.
6.
7.
8.
IN WITNESS WHEREOF the Bank has executed this document on this .......................... day of ........................
For ........................ Bank (by its constituted attorney)
(Signature of a person authorised to sign on behalf of "the Bank")
Annexure - 13 A (SPECIMEN)
# BANK GUARANTEE IN LIEU OF LIQUIDATED DAMAGES
(On Non-Judicial stamp paper of appropriate value) (Clause B.11.1 of Chapter IV) To: Hindustan Petroleum Corporation Limited (Address as applicable) IN CONSIDERATION OF MESSRS. HINDUSTAN PETROLEUM CORPORATION LIMITED a Government of India Company registered under the Companies Act, 1956, having its registered office at 17, Jamshedji Tata Road, Churchgate, Mumbai 400 020 (hereinafter called "The Corporation" which expression shall include its successor in business and assigns) agreeing to grant a provisional extension of time in respect of the contract entered into with Messrs. ................................................ a sole proprietorship business/ partnership firm/ a company registered under the Companies Act, 1956 having its office at ........................................................... (hereinafter called "the Contractor", which expression shall include its executors, administrators and assigns) against Purchase Order No. .......... dated .................... (hereinafter called "the Contract" which expression shall include any amendments/ alterations to "the contract" issued by "the Corporation") for . (state the purpose of the Contract), and the Contractor having requested for extension of time without deduction of any Liquidated Damages from the bills in terms of the Contract and "the Corporation" having agreed to grant provisional extension of time pending a decision on the request for extension of time and not to insist upon immediate deduction/payment of Liquidated Damages upon receipt of this unconditional irrevocable Bank Guarantee for an amount of Rs....... ..(Rupees ....................................................... only). We, ................................... Bank having our office at ..................................................... Bombay (hereinafter referred to as "the Bank" which expression shall include its successors and assigns) at the request and on behalf of "the Contractor" hereby agree to pay to the Corporation without any demur and on first demand an amount not exceeding Rs.......... (Rupees ...................................... only) against any loss or damage, costs, charges and expenses caused to or suffered by or likely to be caused to or suffered by "the Corporation" by reason of the delay in performance of work or the Corporation agreeing to grant such provisional extension of time without insisting on deduction of Liquidated Damages. We, ........................................ Bank further agree that "the Corporation" shall be sole Judge whether the said "Contractor" has failed to perform or fulfill the said "Contract" in terms thereof or committed breach of any of the terms and conditions of "the purchase ______________________________________________________________________________ Annexure 13 A (BANK GUARANTEE IN VI:71a Systems & Procedures LIEU OF LIQUIDATED DAMAGES) HPCL, Mumbai Purchase Manual 2.
order/Contract" or was not entitled to any extension of time and also the extent of loss, damage, cost, charges and expenses suffered or incurred or would be suffered or incurred by "the Corporation" on account thereof and we waive in favour of "the Corporation" all the rights and defences to which we as guarantors and/or "the Contractor" may be entitled to. 3. We, ................................. Bank further agree that the amount demanded by "the Corporation" as such shall be final and binding on "the Bank" as to "the Bank" 's liability to pay the amount demanded and "the Bank" undertakes to pay to "the Corporation" the amount so demanded on first demand without further proof or conditions and without any demur, reservation, contest, recourse or protest and without any enquiry of you or the Contractor, forthwith and in full without any deductions or set-offs or counterclaim whatsoever, the sum claimed by you in such Demand, notwithstanding any dispute raised by "the Contractor" or the pendency of any suit or other legal proceedings including arbitration pending before any court, tribunal or arbitrator relating thereto, our liability under this guarantee being absolute and unconditional. We further agree that the Corporation shall not be bound to disclose any reasons while demanding any amount under the Bank Guarantee.
4.
We, ....................................... Bank further agree with "the Corporation" that "the Corporation" shall have the fullest liberty without our consent and without affecting in any manner our obligations hereunder, to vary any of the terms and conditions of the said "Contract"/or to extend time of performance by "the Contractor" from time to time or to postpone for any time or from time to time any of the powers exercisable by "the Corporation" against "the Contractor" and to forbear to enforce any of the terms and conditions relating to "the Contract" and we shall not be relieved from our liability by reason of any such variation or extension being granted to "the Contractor" or for any forbearance, act or omission on the part of "the Corporation" or any indulgence by "the Corporation" to "the Contractor" or by any such matter or things whatsoever which under the law relating to sureties would, but for this provision, have the effect of relieving us. Any waivers or other forbearance given or variations required under the Contract or any invalidity, unenforceability or illegality of the whole or any part of the Contract or rights of any party thereto, or amendment or other modification of the Contract or any other fact, circumstance, provision of statute or law which might, were our liability to be secondary and not primary, entitle us to be released in whole or in part from our undertaking, shall not in any way release us from our obligations under this Guarantee. Our obligations hereunder in respect of the sum or sums demanded by the Corporation under this Guarantee are primary, independent and absolute and not by way of surety only. The Corporation may make an unlimited number of Demands under this Guarantee provided that the aggregate of all sums paid shall not exceed the entire Guarantee Amount. ______________________________________________________________________________ Annexure 13 A (BANK GUARANTEE IN VI:71b Systems & Procedures LIEU OF LIQUIDATED DAMAGES) HPCL, Mumbai Purchase Manual
5.
Notwithstanding anything hereinbefore contained, our liability under this Guarantee is restricted to Rs. ......... . (Rupees....................................... only). Our liability under this guarantee shall remain in force until expiration of six months from the expiry of the said "Contract". Unless a demand or claim under this guarantee is made on us in writing within said period, that is, on or before .................................... all rights of "the Corporation" under the said guarantee shall be forfeited and we shall be relieved and discharged from all liabilities thereunder. We, ........................................ Bank further undertake not to revoke this guarantee during its currency except with the previous consent of "the Corporation" in Writing. We, ......................................... Bank lastly agree that "the Bank" 's liability under this guarantee shall not be affected by any change in the constitution of "the Contractor" or its insolvency winding up, reorganisation, amalgamation or liquidation (including any appointment of a receiver, administrator, administrative receiver or supervisor of the Contractor or any of its assets) nor in case of any dispute or disagreement whatsoever under the Agreement. We shall indemnify you immediately on demand against any cost, loss or liability suffered by you as a result of our this obligation being or becoming unenforceable, invalid or contrary to the laws of India (except in the case of a fraud by you). "The Bank" has power to issue this guarantee in favour of "the Corporation" in terms of the documents and/or the Agreement/Contract or MOU entered into between "the Contractor" and "the Bank" in this regard. This Guarantee shall be governed by and construed in accordance with the laws of the Republic of India. Any demand, notice or other communication given in connection with or required by this Guarantee shall be made in writing in English be delivered by hand to, or sent by pre-paid registered post, or facsimile transmission to: ________________________ ________________________ ________________________
6.
7.
8.
9.
IN WITNESS WHEREOF the Bank has executed this document on this .......................... day of ........................
For ........................ Bank (by its constituted attorney) Signature of a person authorised to sign on behalf of the bank") ______________________________________________________________________________ Annexure 13 A (BANK GUARANTEE IN VI:71c Systems & Procedures LIEU OF LIQUIDATED DAMAGES) HPCL, Mumbai Purchase Manual
ANNEXURE - 14 (Refer Chapter IV, Clause B.8.a, Page No.IV.25)
# CHECKLIST
Annexure 1. Cost Estimate a. Whether the evaluated cost is within 20% of the estimated cost b. If the answer is no, indicate the relevant pages on which this aspect has been discussed in the evaluation report. Whether there is any change in the technical specifications after the cost estimate has been prepared. If the answer is Yes, indicate the relevant pages on which this aspect has been discussed in the evaluation report. Yes/No Yes/No
c.
d.
Evaluation a. Whether the bidder recommended for award of contract is the lowest evaluated bidder. b. If no, indicate relevant pages on which this aspect has been discussed in the evaluation report. Whether the lowest evaluated bidder is also the one who has quoted the lowest price. If no, indicate the pages on which this aspect discussed in the evaluation report. has been Yes/No Yes/No
d.
Whether all the correspondence that have been exchanged between the Corporation and bidders prior to price bid opening has been taken into account for evaluation Whether all the deviations sought by the bidders have been taken into account for evaluation of their bids. The details of cost-compensated deviations sought by the three lowest evaluated bidders may be explained in brief separately in a statement
Yes/No
Yes/No
REVISION : PUR-019/07.08.2007
______________________________________________________________________________________ Annexure 14 (Checklist) Systems & Procedures Purchase Manual VI.72 HPCL, Mumbai
Annexure 6 The evaluated price of the bidder to whom the contract is proposed to be awarded The award price recommended by the Committee It is certified that a. The bids have been evaluated in accordance with the set criteria ---
7 8
---
b. All deviations sought by the bidders has been suitably cost compensated wherever required. c. That other deviations that have been sought have no cost implications and will not render the bid technically non-responsive. And D. The past performance of the lowest evaluated bidder has been found generally satisfactory (wherever possible)
Purchasing Authority
______________________________________________________________________________________ Annexure 14 (Checklist) Systems & Procedures Purchase Manual VI.73 HPCL, Mumbai
Tender No
1
Item/Nature of work
2
Mode of tender enquiry

3
Date of publication of NIT Type of bidding (single/two bid system) Last date of receipt of tender Nos. of tenders received Nos. & names of parties qualified after technical evaluation Nos. and names of perties not qualified after technical evaluation Whether contract awarded to lowest tenderer/evaluated L1 Contract No. & Date Name of contractor Value of contract Scheduled date of completion Actual date of start of work Actual date of completion Reasons for delay, if any
4 5 6 7
* Monthly data to be provided by user Dept. to Purchasing Authority. ______________________________________________________________________________ Annexure 15 (Summary of Award of Tenders) VI:74 Systems & Procedures Purchase Manual HPCL, Mumbai # (Refer Chapter IV, Clause B.2.f) SUMMARY OF TENDERS FOR THE MONTH OF ______________________
8 9 10 11 12 13
REVISION : PUR-016/27.03.2007
14 15* 16* 17*
ANNEXURE - 15
Annexure - 16 AGREEMENT (Under Integrity Pact) No. To, HINDUSTAN PETROLEUM CORPORATION LIMITED Sub : Purchase of Bidding Documents Ref. Tender no. Dated
HPCL and the Bidder agree that the Notice Inviting Tender (NIT) is an offer made on the condition that the bidder will sign the Integrity Pact and the Bid would be kept open in its original form without variation or modification for a period of (state the number of days from the last date for the receipt of tenders stated in the NIT) . days and the making of the bid shall be regarded as an unconditional and absolute acceptance of this condition of the NIT. We confirm acceptance and compliance with the Integrity Pact in letter and spirit. We further agree that the contract consisting of the above conditions of NIT as the offer and the submission of Bid as the Acceptance shall be separate and distinct from the contract which will come into existence when bid is finally accepted by HPCL. The consideration for this separate initial contract preceding the main contract is that HPCL is not agreeable to sell the NIT to the Bidder and to consider the bid to be made except on the condition that the bid shall be kept open for days after the last date fixed for the receipt of the bids and the Bidder desires to make a bid on this condition and after entering into this separate initial contract with HPCL. HPCL promises to consider the bid on this condition and the Bidder agrees to keep the bid open for the required period. These reciprocal promises form the consideration for this separate initial contract between the parties. If Bidder fails to honour the above terms and conditions , HPCLshall have unqualified , absolute and unfettered right to encash / forfeit the bid security submitted in this behalf. Yours faithfully, Yours faithfully
(BIDDER)
(PURCHASER)
(One copy of this agreement duly signed must be returned alongwith offer). ______________________________________________________________________________ Annexure 16 (AGREEMENT) Systems & Procedures Purchase Manual VI.75 HPCL, Mumbai REVISION : PUR-019/07.08.2007
Annexure - 17 (To be executed on plain paper and applicable for all tenders of value above Rs.1 crore) INTEGRITY PACT Between Hindustan Petroleum Corporation Limited (HPCL) hereinafter referred to as The Principal, and . hereinafter referred to as The Bidder/Contractor Preamble The Principal intends to award, under laid down organization procedures, contract/s for The Principle values full compliance with all relevant laws and regulations, and the principles of economic use of resources, and of fairness and transparency in its relations with its Bidders/s and Contractor/s. In order to achieve these goals, the Principal cooperates with the renowned international Non-Governmental Organisation Transparency International (TI). Following TIs national and international experience, the Principal will appoint an external independent Monitor who will monitor the tender process and the execution of the contract for compliance with the principles mentioned above. Section 1 Commitments of the Principal (1) The Principal commits itself to take all measures necessary to prevent corruption and to observe the following principles: 1. No employee of the Principal, personally or through family members, will in connection with the tender for, or the execution of a contract, demand, take a promise for or accept, for him/herself or third person, any material or immaterial benefit which he/she is not legally entitled to. 2. The principal will, during the tender process treat all Bidders with equity and reason. The Principal will in particular, before and during the tender process, provide to all Bidders the same information and will not provide to any Bidder confidential / additional information through which the Bidder could obtain an advantage in relation to the tender process or the contract execution. ______________________________________________________________________________ Annexure 17 (INTEGRITY PACT) Systems & Procedures Purchase Manual VI.76 HPCL, Mumbai REVISION : PUR-019/07.08.2007
3.
The principal will exclude from the process all known prejudiced persons.
(2) If the Principal obtains information on the conduct of any of its employees which is a criminal offence under the relevant Anti-Corruption Laws of India, or if there be a substantive suspicion in this regard, the Principal will inform its Vigilance Office and in addition can initiate disciplinary actions. Section 2 Commitments of the Bidder / Contractor (1) The Bidder / Contractor commits itself to take all measures necessary to prevent corruption. He commits himself to observe the following principles during his participation in the tender process and during the contract execution. 1. The Bidder / Contractor will not, directly or through any other person or firm, offer, promise or give to any of the Principals employees involved in the tender process or the execution of the contract or to any third person any material or immaterial benefit which he/she is not legally entitled to, in order to obtain in exchange any advantage of any kind whatsoever during the tender process or during the execution of the contract. 2. The Bidder / Contractor will not enter with other Bidders into any undisclosed agreement or understanding, whether formal or informal. This applies in particular to prices, specifications, certifications, subsidiary contracts, submission or non-submission of bids or any other actions to restrict competitiveness or to introduce cartelisation in the bidding process. 3. The Bidder / Contractor will not commit any offence under the relevant Anti-corruption Laws of India; further the Bidder / Contractor will not use improperly, for purposes of competition or personal gain, or pass on to others, any information or document provided by the Principal as part of the business relationship, regarding plans, technical proposals and business details, including information contained or transmitted electronically. 4. The Bidder / Contractor will, when presenting his bid, disclose any and all payment he has made, is committed to or intends to make to agents, brokers or any other intermediaries in connection with the award of the contract. (2) The Bidder / Contractor will not instigate third persons to commit offences outlined above or be an accessory to such offences.
Section 3-Disqualification from tender process and exclusion from future contracts
______________________________________________________________________________ Annexure 17 (INTEGRITY PACT) Systems & Procedures Purchase Manual VI.77 HPCL, Mumbai REVISION : PUR-019/07.08.2007
If the Bidder, before contract award has committed a transgression through a violation of Section 2 or in any other form such as to put his reliability or credibility as Bidder into question, the Principal is entitled to disqualify the Bidder from the tender process or to terminate the contract, if already signed, for such reason. (1) If the Bidder/Contractor has committed a transgression through a violation of Section 2 such as to put his reliability or credibility into question, the Principal is entitled also to exclude the Bidder / Contractor from future contract award processes. The imposition and duration of the exclusion will be determined by the severity of the transgression. The severity will be determined by the circumstances of the case, in particular the number of transgressions, the position of the transgressors within the company hierarchy of the Bidder and the amount of the damage. The exclusion will be imposed for a minimum of 6 months and maximum of 3 years. (2) A transgression is considered to have occurred if the Principal after due consideration of the available evidence, concludes that no reasonables doubt is possible. (3) The Bidder accepts and undertakes to respect and uphold the Principals absolute right to resort to and impose such exclusion and further accepts and undertakes not to challenge or question such exclusion on any ground, including the lack of any hearing before the decision to resort to such exclusion is taken. This undertaking is given freely and after obtaining independent legal advice. (4) If the Bidder / Contractor can prove that he has restored / recouped the damage caused by him and has installed a suitable corruption prevention system, the Principal may revoke the exclusion prematurely.
Section 4 Compensation for Damages (1) If the Principal has disqualified the Bidder from the tender process prior to the award according to Section 3, the Principal is entitled to demand and recover from the Bidder liquidated damages equivalent to Earnest Money Deposit/Bid Security. (2) If the Principal has terminated the contract according to Section 3, or if the Principle is entitled to terminate the contract according to Section 3, the Principal shall be entitled to demand and recover from the Contractor liquidated damages equivalent to Security Deposit / Performance Bank Guarantee. (3) The bidder agrees and undertakes to pay the said amounts without protest or demur subject only to condition that if the Bidder / Contractor can prove and establish that the exclusion of the Bidder from the tender process or the termination of the contract after the contract award has caused no damage or less damage than the amount of the liquidated damages,
the Bidder / Contractor shall compensate the Principal only to the extent of the damage in the amount proved.
Section 5 Previous Transgression (1) The Bidder declares that no previous transgression occurred in the last 3 years with any other Company in any country conforming to the TI approach or with any other Public Sector Enterprise in India that could justify his exclusion from the tender process. (2) If the Bidder makes incorrect statement on this subject, he can be disqualified from the tender process or the contract, if already awarded, can be terminated for such reason. Section 6 Equal treatment of all Bidders / Contractors / Subcontractors (1) The Bidder / Contractor undertakes to demand from all subcontractors a commitment in conformity with this Integrity Pact, and to submit it to the Principal before contract signing. (2) The Principal will enter into agreements with identical conditions as this one with all Bidders, Contractors and Subcontractors. (3) The Principal will disqualify from the tender process all bidders who do not sign this Pact or violate its provisions. Section 7 Criminal charges against violating Bidders/Contractors/Subcontractors If the Principal obtains knowledge of conduct of a Bidder, Contractor or Subcontractor, or of an employee or a representative or an associate of a Bidder, Contractor or Subcontractor which constitutes corruption, or if the Principal has substantive suspicion in this regard, the Principal will inform the Vigilance Office. Section 8 External Independent Monitor / Monitors (three in number depending on the size of the contract) (to be decided by the Chairperson of the Principal) (1) The Principal appoints competent and credible external independent Monitor for this Pact. The task of the Monitor is to review independently and objectively, whether and to what extent the parties comply with the obligations under this agreement. The Monitor is not subject to instructions by the representatives of the parties and performs his functions neutrally and independently. He reports to the Chairperson of the Board of the Principal.
(2)
(3)
The Contractors accepts that the Monitor has the right to access without restriction to all Project documentation of the Principal including that provided by the Contractor. The Contractor will also grant the Monitor, upon his request and demonstration of a valid interest, unrestricted and unconditional access to this project documentation. The same is applicable to Subcontractors. The Monitor is under contractual obligation to treat the information and documents of the Bidder / Contractor / Subcontractor with confidentiality. The Principal will provide to the Monitor sufficient information about all meetings among the parties related to the Project provided such meetings could have an impact on the contractual relations between the Principal and the Contractor. The parties offer to the Monitor the option to participate in such meetings. As soon as the Monitor notices, or believes to notice, a violation of this agreement, he will so inform the Management of the Principal and request the Management to discontinue or heal the violation, or to take other relevant action. The Monitor can in this regard submit non-binding recommendation. Beyond this, the Monitor has no right to demand from the parties that they act in a specific manner, refrain from action or tolerate action. However, the Independent External Monitor shall give an opportunity to the bidder / contractor to present its case before making its recommendations to the Principal. The Monitor will submit a written report to the Chairperson of the Board of the Principal within 8 to 10 weeks from the date of reference or intimation to him by the Principal and, should the occasion arise, submit proposals for correcting problematic situations. Monitor shall be entitled to compensation on the same terms as being extended to / provided to Outside Expert Committee members / Chairman as prevailing with Principal. If the Monitor has reported to the Chairperson of the Board a substantiated suspicion of an offence under relevant Anti-Corruption Laws of India, and the Chairperson has not, within reasonable time, taken visible action to proceed against such offence or reported it to the Vigilance Office, the Monitor may also transmit this information directly to the Central Vigilance Commissioner, Government of India. The word Monitor would include both singular and plural. Section 9 Pact Duration
(4)
(5)
(6)
(7)
(8)
(9)
This Pact begins when both parties have legally signed it. It expires for the Contractor 12 months after the last payment under the respective contract, and for all other Bidders 6 months after the contract has been awarded.
If any claim is made / lodged during this time, the same shall be binding and continue to be valid despite the lapse of this pact as specified above, unless it is discharged / determined by Chairperson of the Principal. Section 10 Other provisions (1) This agreement is subject to Indian Law. Place of performance and jurisdiction is the Registered Office of the Principal, i.e. Mumbai. The Arbitration clause provided in the main tender document / contract shall not be applicable for any issue / dispute arising under Integrity Pact. Changes and supplements as well as termination notices need to be made in writing. Side agreements have not been made. If the Contractor is a partnership or a consortium, this agreement must be signed by all partners or consortium members. Should one or several provisions of this agreement turn out to be invalid, the remainder of this agreement remains valid. In this case, the parties will strive to come to an agreement to their original intentions.
(2)
(3)
(4)
----------------------------For the Principal Place. Date ..
----------------------------For the Bidder/Contractor Witness 1:
Witness 2:
ANNEXURE - 18
(SPECIMEN)
BANK
GUARANTEE
FOR SECURITY DEPOSIT
(On Non-Judicial stamp paper of appropriate value) TO : Hindustan Petroleum Corporation Limited (Address as applicable) IN CONSIDERATION a Act, Tata and OF 1956, Road, MESSRS. having HINDUSTAN its PETROLEUM registered office CORPORATION under at the 17, "The in on
LIMITED, Companies Jamshedji business Messers
Government
of India Company Bombay-20 having
registered (hereinafter placed a
called order
Corporation"
(which
expression shall include its an
successor
assigns)
............................
partnership
firm/sole
proprietor business/a company registered under the Companies Act, 1956 having its office at .............. (hereinafter called "the supplier") (which expression (hereinafter include services any for shall called include "the executors, order" to of and supply which "the goods "the administrators and assigns) vide order dated.............. expression order" to/execution shall of issued No.......................
amendments/alterations "the Corporation"
by "the Corporation") for the
Corporation" having agreed : a) not to insist upon immediate payment of Security Deposit the fulfilment and performance of the said order b) that of "the "the supplier" shall furnish a security for the with the said "the for
performance of "the supplier's" obligations and/or supplier's" liability in connection with and to "the Corporation" Bank having agreed the accept Guarantee for "order"; supplier" deposit.
discharge
security
_____________________________________________________________________________ Annexure 18 (Bank Gaurantee for Systems & Procedures Security Dep. Etc.) VI.82 HPCL, Mumbai Purchase Manual REVISION : PUR-030/22.08.2008
We,
.................................................... office at referred to as "the Bank" which expression
Bank shall
having
............................................
(hereinafter
includes its successors and assigns) at the request and on behalf of "the supplier" hereby agree to pay to "the Corporation"without any demur on first demand an amount not exceeding against Rs........... any loss or for and (Rupees.............................only) Corporation"
damage, costs, charges and expenses caused to or suffered by "the by reason of non performance and fulfilment or any breach on the part of "the supplier" of any of the terms conditions of the said "order". 2. We, ............................. Bank further agree "the in Corporation" terms thereof of shall or be sole judge whether of any "Supplier" has failed to perform or fulfill the said committed breach conditions cost, and we suffered or rights and "the order" and the extent of loss, that said and be the "the "order" damage,
the terms
charges and expenses suffered or incurred or would waive in the favour of "the Corporation" all
incurred by "the Corporation" on account thereof defences to which we as guarantors and/or
Supplier" may be entitled to. 3. We, that be ................................. final and to binding on "the Bank" as pay and Bank to further "the and agree shall Bank" any legal court, under
the amount demanded by "the Corporation" as such and the amount demanded without any demur "the
Bank's
liability first
undertake to pay "the Corporation" the amount so demanded on demand notwithstanding dispute raised by "the Supplier" or any suit or other including arbitration pending before any
proceedings
tribunal or arbitrator relating thereto, our liability this guarantee being absolute and unconditional. 4. We, .................................. Bank further
agree the in of to
with "the Corporation" that "the Corporation" shall have fullest liberty without our consent and without affecting and conditions by of "the the said "order"/or to Supplier" from time extend to time or
any manner our obligations hereunder to vary any of the terms performance time
postpone enforce order" reason "the the
for any time to time any of the powers any and of the terms and conditions
exercisable to "the by to on "the or
by "the Corporation" against "the Supplier" and to forbear to relating we shall not be relieved from our liability granted by matter to ommission
of any such variation or extension being Supplier" or for any forbearance, act or of "the Corporation" or any to "the Supplier" or
part
indulgence such
Corporation" things
by any
whatsoever which under the law relating
sureties
would but for this provision have the effect of relieving us. 5. However, Valid Order it has been agreed between "the Supplier" and Bank Guarantee for security months "the
Corporation"
deposit is of the
upto a period of 3 (Three) No.
beyond the expiry
of the defects liability period as per the terms _______________ dated __________.
6. i)
Not withstanding anything contained herein above : Our liability under this guarantee shall not exceed
Rs.......... ii) This Bank Guarantee shall be valid upto and
including .......; and iii) We are liable to pay the guarantee amount or any part
thereof under this Bank Guarantee only and only if you serve upon us a written claim or demand on or # before the expiry of
30 days from the date of expiry of this guarantee.

7. We, ........................................ not to revoke this guarantee during the previous consent of "the with Bank its further currency in
undertake except writing. 8. We, not
Corporation"
......................................... be
Bank
lastly shall "the of
agree that "the Bank"'s liability under this guarantee affected by any change in the constitution Supplier".
9.
"The "the
Bank"
has power to issue this guarantee in in terms of the documents
favour and/or
of the
Corporation"
Agreement/Contract or MOU entered into between "the Supplier" and "the Bank" in this regard. IN WITNESS WHEREOF the Bank has executed this document on this
............................. day of ...........................
For ........................ Bank (by its constituted attorney) (Signature of a person authorised to sign on behalf of "the Bank")*
CHAPTER VII PROCEDURE ON DISPOSAL OF MATERIALS/CHEMICALS/SUPPLIES, FIXED ASSETS, SCRAP DISPOSAL PROCEDURE AT A GLANCE DISPOSAL PROCESS - STEPS INVOLVED 1. Identification and Segregation of items for disposal & Preparation of Request for Disposal (RFD) Location/Department will-Identify and keep items for disposal separately. Prepare/forward list of project surplus items to GM E&P HB in Mktg./ GM/DGM projects in Refinery & for other items thru controlling Office/Dept. Head for circulation to other Locations/Refineries and take suitable action.
Note: In regard to office furniture/equipments, computers and peripherals, clearance shall be obtained for disposal from Head-Administration (from Head IT - Zone, Ref. or HQO for computers) . Similarly, in regard to housing and welfare items, clearance from Head-IR&A shall be obtained. Prepare `Request For Disposal' format for sale of items, and get this cleared by Disposal committee/Team and then forward to Controlling Office/Dept.Head for approval of RFD. In case of Materials, Chemicals, Supplies and Scrap where estimated sale value is less than Rs.1000/- RFD will be prepared, cleared by two man local committee and kept in location. The item shall be disposed of to the highest bidder by the location.
(The above action is required to be initiated atleast quarterly at Refineries for cylinders/ Regulators and half yearly for other locations). (Ref.Sec.I) (Page VII.3) 2. Approval of Request for Disposal/Reserve Price : Controlling Office/Dept.Head will-Get RFD approval including Reserve Price from appropriate approving authorities (Refer Clause 4 on Page 7 of Chapter VI - Materials/Disposal of the LAM) Refer to the purchase group for tendering process. (The above process to be completed within 1 month)
(Ref.Sec.II) (Page VII.12)
____________________________________________________________________________ Chapter VII (Disposal Procedures) VII.1 Systems & Procedures Purchase Manual HPCL, Mumbai
3.
Actual disposal The respective authorities for opening of tenders as specified in LAM (Chapter VI Materials/Disposal, Clause 5.2, Page No. 11) will Invite tenders for disposal. Evaluate tenders received and obtain approval of appropriate approving authorities (Same as for Purchase) Place sale or disposal order/s on selected party/parties Communicate same to the concerned location.
(The above process recommended to be completed within a month) (Ref. Sec. III) (Page VII.14) 4. Delivery and documentation Location/Refinery will-Prepare relevant documents such as invoice/debit note, Cash receipt, EMR, etc. Make delivery of items as specified in Disposal Order/Letter. (Ref.Sec.IV) (Page VII.17) 5. For, authority to approve RFD, Reserve Price, Invitation/Approval of tenders for disposal, reference may be made to LAM (Chapter VI - Materials/Disposal, Clause 5, Page Nos. 10 to 14).
SECTION I - IDENTIFICATION AND SEGREGATION OF ITEMS FOR DISPOSAL AND PREPARATION OF REQUEST FOR DISPOSAL (RFD) FORMAT. 1. INTRODUCTION Disposal shall be made under one of the following circumstances : - Surplus to company requirement - Obsolete/uneconomical to operate/uneconomical to repair - Unserviceable - Slow-moving/non-moving - Scrap The definitions of above are given in Attachment I (Page VII.19). 2. APPLICABILITY Items for disposal have been divided into following categories : CATEGORY I CATEGORY II CATEGORY III SCRAP i) Materials/Chemicals/ Supplies ii) Plant & Equipment (Fixed Assets) other than category III y CATEGORY IV Crude Sludge, Oily sludge & Hazardous wastes Note: Oily sludge includes sludge from crude tanks, product tanks or effluent treatment plants Cylinders/Regulators/Valves (After crushing, disposal as scrap)
GENERAL : a. This procedure is not applicable to disposal of immovable property for which Chap VII-A will be applicable. Sulphur at Mumbai Refinery will be sold as a normal product through Marketing and hence, disposal procedures will not apply to such sales. REVISION : PUR- 014/12.10.2006
b.
c.
Procedure for disposal of small value items (In Marketing Locations by I/c /in HQO/Zones by the Division Head : For materials, chemicals, supplies and scrap (not Fixed Assets) where the estimated sale value is less than Rs.1000/-, such items are excluded from detailed disposal procedures. However, in such cases, Request for Disposal form shall be prepared in original which should include the reserve price and kept at the location/Divn., for verification by Audit and other inspection authorities. In single officer locations, the RFD will be approved by location I/c and in other cases location I/c will approve along with Accounts Officer or with any other officer. These items shall be disposed of under advice to Controlling office/Dept.Head and after inviting necessary quotations and placing disposal order/letter on the highest bidder. If the quotation received is more than Rs. 1000/-, then approval will be obtained from next higher authority. Items of personal use like cars, motor cycles, typewriters, personal computers, furniture will be offered to employees in a work location on highest bid basis. (Ref. Sec. III, Item ii - Page VII.14 for details) In case of Crude Sludge, Oily sludge & Hazardous wastes , disposal will be done as follows: i. Crude Sludge, Oily sludge & Hazardous wastes shall be disposed of as per the guidelines issued by the Ministry of Environment & Forest/Petroleum & Natural Gas or the Central/State Pollution Control Boards from time to time. The authority originating the Request for Disposal of Crude Sludge, Oily sludge & Hazardous wastes shall ensure that the same is as per the guidelines mentioned in note (i) from time to time upto the date of preparation of RFD. A remark shall be given in the RFD by the originator to confirm that the said guidelines as amended from time to time have been complied. Copies of the guidelines amended upto the date of preparation of the RFD shall be enclosed to enable the approving authority to review whether the guidelines have been complied.
d.
e.
ii.
iii.
In the case of disposal of Crude Sludge, Oily sludge & Hazardous wastes the Permanent Disposal Committee shall inspect the quantum to be disposed of.
REVISION : PUR- 014/12.10.2006
HAZARDOUS WASTES (MANAGEMENT & HANDLING) RULES 1989:
The Hazardous Wastes (Management & Handling) Rules, 1989 were
notified by the
Ministry of Environment & forests under the Environment (Protection) Act, 1986. These Rules provide for a control for the generation, collection, treatment, transport, import,
storage disposal of wastes listed in the schedule annexed to these rules. The implementation of these rules are through the identified State agencies viz. State Pollution Control Boards and the State Government (Department of Environment). The applicability of these
rules have been stated in Rule 2 and the definitions are provided in Rule 3.
1.
Categories of Wastes : 18 categories of wastes have been identified along with regulatory quantities in the schedule annexed to these Rules. wastes. The Rules shall apply to these categories of
2. Responsibility of Generator :
i. ii.
To report the State agencies about the wastes being handled (Rule 4). To apply for authorisation for handlingin Form-1 provided in the Rules (Rule 5).
iii.
Proper packaging, labeling and transportation in accordance with the provisions in Motor Vehicles Act, 1988 (Rule 7)
iv.
To maintain records on the generation and disposal in Form-3 prescribed in the Rules (Rule 9)
v.
To file the annual return in Form-4 to the concerned Pollution Control Board (Rule 9)
vi. 3.
To report accidents to State Pollution Control Boards (Rule 10)
Responsibility of State Pollution Control Boards : i. To examine the authorisation applications and grant authorisation in Form (Rule 5)
ii. iii. 4.
To suspend or cancel the authorisation (Rule 6) Examine the import cases and grant/refuse permission after examining each case on merit. (Rule 11)
Responsibility of the State Governments : i. Identification of sites for the disposal of hazardous wastes in their States after ascertaining the suitability of the sites through the Environment Impact Assessment Studies (Rule 8) Prepare and maintain an inventory of such sites (Rule 8)
ii. 3.
HANDLING : Locations will keep items for disposal separately for easy identification in lots and ensure that they do not get mixed up with other items/lots. Lotting shall be done in such a way as to maximise realisation.
A)
Category I : SCRAP The Scrap should be segregated into Ferrous and Nonferrous items by each category like, Iron, Nickel, Copper, etc., and kept separately, where feasible. Ferrous scrap need not be further segregated before disposal. Where the scrap consists of RCC foundation, gunnated steel structure, concreted lined pipes etc., the reserve price for such scrap should be fixed after fixing a reasonable value on best estimates, by a Government approved assessor/surveyor for all the items independently in a detailed manner. Category II : i. MATERIALS / CHEMICALS / SUPPLIES, PLANT & EQUIPMENT (FIXED ASSETS) OTHER THAN CATEGORY III
B)
Every quarter, the concerned Office/Location will review disposable items. In case of Refineries, the Division Head-Maintenance will initiate action immediately after "Turn-around" is over. In the case of Marketing, the location shall send a report to the Controlling RO/Zone giving details of surplus and slow moving with a view to find outlet within the Corporation. With regard to Refinery, similar list will be prepared and sent to other HPC Refineries. The list can also be sent to other Department Heads within the Refinery in case it is felt that items may be required there.
Note:
In regard to office furniture/equipments, computers and peripherals clearance shall be obtained for disposal from Head-Administration. Similarly, in regard to housing and welfare items, clearance from Head-IR&A shall be obtained. With regard to Equipment Scrap where the first cost of the equipment is not ascertainable, valuation based on RBI indexation should be followed and the approval of the concerned SBU Heads for the same should be
i.a
REVISION: PUR-025/03.03.2008 ____________________________________________________________________________ Chapter VII (Disposal Procedures) VII.6 Systems & Procedures Purchase Manual HPCL, Mumbai
obtained before disposal. Wherever such equipments are older than a period of 20 years, the indexation should be worked out & taken for a period of maximum of 20 years. The value so arrived at for such equipments should be derived from the Fixed Assets. (Refer LAM Chap VI : Cl. 4.3.3) ii. PROJECT SURPLUSES : Surplus Project Materials after completion of projects will be handled as follows : If the material/equipments are required for other projects handled by the project group, these will be transferred to respective projects. The respective Project Group will make list of surplus project material/equipment alongwith cost data. The Refinery Project Group will send the list to GM/DGM Projects attached to their Refineries. The Marketing Project Group will send the list to the GM-EM&P. The GM-EM&P/GM-DGM Projects Refinery will co-ordinate with each other the activity of getting utilization of the surplus material/equipment by communicating to other Project Group in Refinery/Marketing. They will also communicate the list to other oil companies to find out whether they require any of the materials/ equipments, by giving them suitable time to respond. If no reply is received within due date, the GM-EM&P/GM-DGM Projects will suitably advise the concerned Project Group to dispose off the items as per the steps laid down in this procedure. Where, however, the materials/equipments, are required by other project group/oil company, then they will suitably advise concerned to transfer the materials /equipments. The necessary documents will be completed and transfer will be arranged. iii) The authority for transfer of Plant and Equipment within the Corporation is given in LAM under Chapter III-B - Supply/Operations/Distribution, Clause 11, Part III on Page 10. Based on the requests, locations/departments will transfer material to other location/departments Process necessary transfer document EMR (Equipment Movement Record) for Marketing & PTR (Plant Transaction Report) /Interfunctional Dr/Cr Advice for Refinery. (Refer Clause 12.1, Part III of Chapter III-B - Supply/ Operations/Distribution, of LAM.)
iv)
The concerned Office/Location will initiate disposal process for items which are not required.
C.
Category III : CYLINDERS/REGULATORS/VALVES Filling Plant will keep cylinders/regulators that have completed their life span and identified as unserviceable separately. Periodically location I/c will advise condition of such cyls/regs to Sr.Manager LPG HQO/ZONE.
4. A)
Preparation of Request for Disposal (RFD) Once in six months, or as and when items for disposal have piled up, locations will prepare `Request for Disposal' (Attachment II, Page VII.21) form in line with instructions (mentioned on the reverse of RFD) in triplicate. Location in-charge/Division Head shall recommend RFD. The Terminals/ROs/Refineries/HQO will assign a 6 digit serial numbers for RFD. First three digits will represent Department. For this purpose, the Department code given in Annexure 3, Chapter VI of the Purchase Manual will be used. The next 3 digits will be serial number. (Similar to LPR number control). In case of IRD/ASF/LPG/TOP they will assign 6 digit serial Nos. for RFD as follows: Location Code xxxx/ Serial Number xx e.g.: In case the RFD is prepared by Mahul Filling Plant (location code 0112), they will assign serial No. as: 0112/01. The locations shall maintain details in Serial No. control register as per format given in attachment IV (page VII.23).
B)
C)
The location in-charge/Division Head shall items mentioned in RFD.
provide justification for disposal of
D)
Location in-charge/Division Head shall provide estimated sales value of the items for disposal in RFD. The Location Incharge will get the requisite activities Disposal/Inspection Team and then route RFD as follows: Original and duplicate to the concerned approving Controlling Office/Department Head for approval. Triplicate retain as file copy. carried out by
E)
authorities through
In case any local parties are interested/available, the name of the parties can also be furnished F) In case of administrative offices where Inspection/Disposal committee does not exist, concerned Division Head shall fix the Reserve Price and give justification for the same in a sealed envelop enclosed with RFD.
5. A) B)
INSPECTION/DISPOSAL COMMITTEE : Constitution of the Committees (Refer Attach. III, Page VII.22) The Disposal Committee/Team will review RFDs, inspect the items, if necessary, and give its recommendations for disposal. It should also fix reserve price and provide justification for the same and enclose it in a sealed envelope. Note : If it is felt that due to the specific nature of the item for disposal, it is not possible for ìn house' committee to decide, the matter can be referred to any Govt./Govt. approved Agency/Valuer for fixing up reserve price.
MARKETING LPG CYLINDERS/REGULATORS The GM-Zone will constitute the Inspection team from time to time as per the constitution prescribed. The team will visit once in a quarter all the Filling Plants in the Zone and carry out the requisite activity in regard to RFD. TERMINALS/DEPOTS : As and when, any functionary prescribed in the constitution of the Disposal Committee visits the location, the Location Incharge will get the requisite activity in regard to RFD completed. REFINERY : The Departments within refinery will forward RFD to the Chairman - Disposal Committee. The Disposal Committee shall meet at least once in a quarter and carry out the requisite activity in regard to RFD. 6. A) A note on distinction between Estimated Sales Price and Reserve Price : ESTIMATED SALES VALUE:
Estimated Sales Value is the very rough realisable price which items are expected to fetch in market. It is to be fixed by the concerned location/office preparing RFD. The estimated sales value given in RFD is used for the following purposes : - Sale of Scrap : Authority to approve RFD is dependent on the estimated sale value. - In case of Materials,Chemicals, Supplies & Scrap, where estimated sale value is less than Rs.1000/-, the location in-charge has authority to approve the sale. ____________________________________________________________________________ Chapter VII (Disposal Procedures) VII.9 Systems & Procedures Purchase Manual HPCL, Mumbai
(Refer Clause 5.2.e on Page 14 of Chapter VI - Materials/Disposal of the LAM) - For determination of tendering authorities, after RFD has been approved. B) RESERVE PRICE Reserve Price is the minimum price which items for disposal are expected to fetch and it is desirable that the items should not be disposed of for less than this price. Reserve price shall not be disclosed until opening of the price bids. 7. i) Responsibility for fixation of Reserve Price will be as under : ------------------------------------------------------------------------------------------- ----AT LOCATIONS/REFINERY/ADMINISTRATIVE OFFICES -------------------------------------------------------------------------------------------- --Disposal/Inspection Disposal Committee Committee For immovable property Refer Chap. VII - A. ------------------------------------------------------ ------------------------------------ ---ii) THE BASIS FOR FIXING RESERVE PRICE The reserve price (excluding sales tax) shall be based on the following aspects, as applicable : a. For Category II - (Other Than Scrap) - First cost - Date in plant - Book value (for other than plant and equipment) - Replacement cost - Working condition - Estimated sale price OR - Valuation given by approved Government Valuer. In some locations, Govt. approved agencies or valuers may be available. e.g. In case of fixation of values for cars at Bombay, the W.I.A.A. Bombay carries out same at a nominal fee. Therefore, where it is possible to get reserve price fixed for items to be disposed without much loss of time and money from such valuers, the same can be obtained from them. b. For Category I & Category III- (Scrap & Crushed Cylinders, Regulators, Valves)
The Newspapers on day to day basis publish the price of Ferrous and Nonferrous metals and also scrap metal price by categories viz. steel, nickel, copper etc. The reserve price should be fixed taking into account the price of metals as also the scrap price of the same. The relationship of the previous sale price vis-a-vis the then prevailing metal scrap price may serve as a guide for fixing Reserve Price. iii) Reserve Price shall not be disclosed on RFD. The authorities fixing Reserve Price shall put the same alongwith justification in a closed envelope. Location/Dept. shall forward the same alongwith RFD to Controlling Office/Dept.Head for getting approval of Reserve Price alongwith approval of RFD.
SECTION II: APPROVAL OF REQUEST FOR DISPOSAL AND RESERVE PRICE: 1. The Controlling Office/Department Head approved by concerned Authority. will get the RFD and Reserve Price
THE ACTION ON RFD IN ANY CASE SHOULD BE COMPLETED BY CONTROLLING OFFICE/DEPARTMENT HEAD WITHIN 1 MONTH FROM THE DATE OF RECEIPT BY THEM. The Controlling Office/Dept. Head will review periodically pending RFDs and take appropriate action for speedy disposal. In case of delay, this will be reported to next higher authority. RFD and Reserve Price will be approved by the respective authority as per Limits of Authority Manual under Chapter VI - Materials/ Disposal, Clause 4 on Page 7 of LAM. Inasmuch as the Reserve price has to be disclosed only at the time of opening tender, the reserve price after necessary approval shall be put in a sealed envelope by authorities approving RFD and Reserve Price After approval, Controlling office/Dept. Head will forward the RFD alongwith sealed envelope containing Reserve Price to the respective Purchasing authorities for tendering process. The Controlling Office/Dept. Head will retain one copy for their file and follow up. 2. Procedure for disposal of unserviceable LPG Cylinders/Regulators/Valves The tendering process will be done centrally by concerned Zone as per Purchase Procedure and Limits of Authority Manual. For the purpose of disposal, the authority approving tender will be as that applicable to Scrap as given in LAM, Chapter VI - Materials/Disposal, Clause 4.4 on Page 9. This is to expedite sale of crushed cylinders/regulators/valves. The procedure for disposal of cylinders/regulators/valves, is same as applicable to other items but with following additional steps. After receipt of RFD duly approved as per LAM, i) Filling Plant will transfer such cylinders/regulators from sound to unserviceable in stock ledger (MSL) by preparing inventory entry (TT 43/93) ii) Where facilities are available, Filling Plant can arrange to crush cylinders/regulators/valves and stack it separately for delivery after disposal procedure is cleared. EMR for write off of cylinders/regulators shall be prepared before crushing of cylinders/regulators. ____________________________________________________________________________ Chapter VII (Disposal Procedures) VII.12 Systems & Procedures Purchase Manual HPCL, Mumbai
iii)
Where it is not possible to crush all the cylinders/regulators at a time and/or uplifting thereof takes place in staggered manner, then the cylinders/regulators will be crushed as per the delivery schedule. Outgoing Gate Pass will be prepared for each batch and the signature of the party concerned be obtained. On completion of the full delivery, EMR for write off will be prepared and Outgoing Gate Pass copies prepared for staggered delivery will be attached to same.
iv) EMR for write off will be released to Fixed Assets Section for accounting after the disposal. Filling Plant will provide details of cash receipt number, date, name and address of buyer, value realised (excluding Sales Tax), approved RFD/Disposal Order reference on EMR. The EMR will be approved by Location Incharge.
SECTION III : ACTUAL DISPOSAL (Same as Purchase Procedure) Purchase authority at Terminal/RO/Zone/Refinery/HQO will receive RFD duly approved by respective authorities. Purchase Authority will maintain a serial number control register for Request for Disposal received by them as per format attached. (Attachment IV, Page VII.23). The register should be periodically reviewed by Divn. Head Purchase/Materials/O&E/ RM/ TM and action taken for delay. Within one month of receipt of duly approved R.F.Ds, purchase authority shall obtain price quotations as per bidding procedure & issue Disposal Order which is summarised below for ready reference. i) Inviting tenders : Tenders shall be invited in one of the following manners: Limited tender by referring to list of scrap dealers or prospective buyers Where the estimated sale value of the items for disposal is above Rs.5 Lakhs, Public tender shall be invited. No disposal shall be made on single tender basis. [For public and limited tender, same procedure as applicable to Purchase Procedures shall be followed.] Important norms for tender For items of personal use like cars, jeeps, motor cycle, typewriters, personal computers, furniture etc. which have no value by way of commercial usage, offers will be made to all employees in a work location viz. employee working in a city/town by displaying the notice on the Notice Boards in all the offices on highest bid basis and not below the reserve price. Earnest money shall also be collected from the employees. Payments will be made through Bank Pay Order (drawn on Scheduled banks other than Co-operative banks) only and not through cheques. Time limits for offer and removal will be fixed and strictly adhered to. Tender shall not be considered if not accompanied by earnest money deposit. Where existing facilities/ tanks are to be dismantled/repaired, such tenders may include dismantling and taking away the scrap thus generated so as to deal in composite manner. The quote should have a break up in two parts viz; y repairing/dismantling cost for the existing facilities/tanks y the quote for the scrap The purchase requisition value for the purpose of determining approving authority shall be taken as the aggregate value of cost of dismantling/repair and estimated realizable value of the scrap generated. No separate RFD shall be processed in such cases. Tenders may be developed for placing Standing Order for disposal of regular scrap for e.g. empty lube oil/asphalt/chemicals & catalyst drums, aluminum /galvanized sheets etc. for a period upto 6 months.
ii)
REVISION: PUR-029/10.07.2008)
Miscellaneous scrap should be disposed off on the basis of identified quantity or lot.
Estimated quantity given in the disposal tender is indicative. However, bidders are required to lift the total quantity of the scrap in lot specified in the tenders at specified location on as is where is basis on same terms & conditions of the purchase order. In case available scrap in the lot offered for the sale is less than the estimated quantity, owner do not have any obligation to make the scrap quantity available to bidders from other scrap lots. Sales Tax as applicable will be recovered at the time of delivery. Company reserves the right to accept or reject any tender without assigning any reason Last date for submission shall be mentioned in the tender forms Tenderer must specify the last date upto which his offer is valid A successful tenderer must take delivery within specified time. Failure to do so shall result in forfeiture of earnest money/tender amount
iii)
Earnest Money Deposit : EMD should be 10% of the estimated sales value for total tender or proportionately for quoted items under the tender. Maximum EMD value to be Rs.10 lakhs. EMD to be rounded off to the next nearest Rs.1000/-. In the case where the estimated sales value is less than Rs.10,000/-, EMD can be called for at the discretion of the Purchasing Authority. However, where EMD is called for, it should be insisted upon from all the tenderers. The advice/letter inviting sealed offers shall specify EMD amount in absolute terms based on the estimated sales value. The tenderer will be advised to send a Demand Draft/Bank Pay Order in a separate sealed envelope apart from the priced quotation. Both these envelopes duly earmarked either "EMD Money" or "Priced Quotation" as the case may be, will be submitted simultaneously. If the EMD is not in line with the amount requested, the priced quotation will be returned unopened alongwith the EMD to the tenderer.
iv)
Approval of tenders : NO DISPOSAL SHALL BE MADE ON SINGLE TENDER BASIS. 1. Single offer against limited tender to be refloated. 2. If the highest offer against the limited tender is less than the Reserve Price by more than 20% of the Reserve Price, retendering to be made. REVISION: PUR-025/03.03.2008
3. If the single offer against the Public Tender or single offer against refloated limited tender or highest offer against refloated limited tender is less than the Reserve Price by more than 20% of the Reserve Price, one level up (max. EC) to approve. The approval of tenders shall be as stipulated in LAM under Chapter VI Materials/Disposal. It may be noted that for items other than scrap, the authority for disposal is same as that for purchase, Clause 5.2 on Page 11, whereas for disposal of Scrap, the authority for approval of tenders is given separately in Clause 5.2.e on Page 14 of Chapter VI - Materials/Disposal of the LAM. # 4. Where the difference between the reserve price and the highest bid is more than 20% in the case of sale of vehicles (cars/jeeps) through a public tender and where it is considered that retendering will not serve any purpose it shall not be necessary to refer the proposal to one authority higher than the normal approving authority and the decision shall be taken on the basis of the highest bid received. The delivery period shall depend upon the nature and sale price of an item. Normally the period shall be one calendar month from the date of approval of tender. In exceptional cases it can be raised to 60 days maximum by the respective Purchase authorities. Retendering & Negotiations a. Where a single offer is received against a public tender, get the approval from the same approving authority as per LAM. If offer is below reserve price, recommend negotiation (as stated in item-c below). Where a single offer is received against a refloated limited tender, then either obtain approval from one authority higher than normal approving authority or refloat the tender. b. If the highest price offered by the prospective buyer is less than the reserve price within 10%. (i.e. if highest bid received is between 90% to 99% of reserve price) then purchase authority shall have authority to accept the highest bid. c. If the maximum price offered by the prospective buyer is less than the reserve price by more than 10% of the reserve price the purchase authority will have the option : 1. to call for fresh bids OR 2. to recommend negotiations with the parties when it is considered that retendering will not serve any purpose OR 3. to send it to one authority higher than the normal approving authority for acceptance of the price offered OR
v)
vi)
4. authority can also refer the RFD back to authority who have originally fixed the reserve price for reconsidering/revising the same. vii) When identical competitive offers are received, selection of parties will be made either by drawing a lot or making equal distribution of quantity to be disposed of. If lot has to be drawn, it will be done by the Purchase authority in the presence of an Accounts Officer. In case of Public Tender, lot will be drawn in the presence of the concerned bidders. Purchasing Dept. HQO/Zonal/RO/Terminal shall place Sale/Disposal order on the successful bidder with a copy to location and request the party to deposit balance amount and then take delivery within stipulated time.
viii)
SECTION IV : DELIVERY AND DOCUMENTATION : 1) On receipt of copy of Disposal order, locations will prepare dummy invoice/debitnote for sale of scrap showing Sales Tax amount separately. In case of stock items (empty rejected packages, TBA ) inventory entry shall be prepared & booked thru stock system. Note : 2) Items having HP markings should be defaced to prevent misuse.
In case they are authorised to receive the balance amount, the location will receive balance by demand draft and issue Cash Receipt with full name and address of the buyer using following codes: For basic price - scrap - fixed assets - Stores - crushed cylinders Regulators valves Sales Tax A/c M.087.06.07 M.588.05 1.225.02 M.087.06.08.01 M.087.06.08.02 M.087.06.08.03 M 619.aa
In case the balance amount is received by Materials Department, then cash receipt will be prepared by the Cashier of the respective office as per details given above and advise the location concerned to deliver the material after furnishing the cash receipt details. 3 a) Verify the cash receipt, obtain signature of the person taking delivery on the Delivery Receipt copy of the Invoice. While giving delivery, ensure that only relevant item is delivered. The quantity delivered should be verified by Accounting functionary. (Where no Accounting Functionary is posted, by another Management employee) If the party seeks extension of time on reasonable grounds within the stipulated time, the matter may be considered on the merits of the case by respective purchase authority. If the buyer has paid the full amount but not uplifted the item within the stipulated time, advise the Controlling Office/Dept. Head for taking suitable action in consultation with Legal Dept. However, EMD shall not be refunded. If the tenderer has not paid the full amount within the stipulated/extended time, approving authority will have the authority to refloat the tender or accept the next highest bidder, provided the next highest bid is equivalent to or more than Reserve Price.
b)
c)
d)
e)
Refund of Earnest Money Deposit to unsuccessful bidders shall be made within 30 days from the opening of bids. The authority for refund is provided in the Limits of Authority Manual under Chapter Materials/Disposal (Clause 11, Page No. 18). Refund of E.M.D. will not be made to successful tenderer who has not taken delivery within stipulated time. If the disposal is a plant item, prepare Equipment Movement Record giving details of cash receipt No., date name and address of the buyer, value realised (excluding Sales Tax), approved RFD reference, Disposal order reference and forward to Fixed Assets section, HQO for processing. In case of Stores items, details of cash receipt number, date, name of party quantity sold and value realised (without sales tax) will be advised to Fixed Assets/Plant & Warehouse Section. Fixed Assets (Plant & Warehouse in case of Refinery) will process necessary Journal entries for transferring the difference between book value and amount realised to profit/loss on sale of surplus/obsolete storehouse material (A/c 030 CE 28/29 in Mktg., A/c 025 in Refineries). In case of scrap items preparation of Inventory entry and EMR is not required. Only invoice and cash receipt will be prepared. In case of cylinder / regulator, Refer Section II (Page VII-12) for details on preparation of EMR & Inventory entry.
4)
5)
6)
7)
REQUEST FOR DISPOSAL

LOCATION NO : DATE :
ATTACHMENT I
PLANT & EQUIPMENT SL. NO.
MATERIAL/CHEMICAL/
SUPPLIES
SCRAP
CYLS./REGS./VALVS TAG NO./ MAT. CODE @ DATE IN PLANT @
CRUDE SLUDGE/HAZ. WASTE BOOK VALUE @
DISMANTLING OF FACILITIES ESTIMATED COST-REPAIRS / OPEERATIONS @

ESTIMATED SALES VALUE
DESCRIPTION
QTY./HEIGH T/LENGTH
NATURE *
FIRST COST @
JUSTIFICATION FOR DISPOSAL (BY THE INITIATOR) :
REMARKS DISPOSAL COMMITTEE # :
REMARKS APPROVING AUTHORITY :
INSPECTION/DISPOSAL COMMITTEE DISPOSAL REQUEST

SIGNATURE / INITIALS DESIGNATION DATE DISPOSAL MATERIALS / PURCHASE AUTHORITY DATE RECD : PO NO. & DATE PRICE ENQ. ISSUED DATE :
CHAIRMAN
MEMBER SECRETARY
SECRETARY
MEMBER FINANCE
APPROVAL
RFD CLOSED
INDICATE WHETHER SURPLUS OBSOLETE, UNSERVICABLE, SLOW MOVING, SCRAP @ NOT APPLICABLE IN CASE OF SCRAP# RESERVE PRICE SHALL BE ENCLOSED IN A SEALED ENVELOPE ALONGWITH JUSTIFICATION.
REVISION: 03/2008
REQUEST FOR DISPOSAL

PERMANENT DISPOSAL COMMITTEES MARKETING: 1) For LPG Cylinders : (as specified in LAM) (to be nominated by GM-Zone) i. Sr. Manager LPG/O&E Zone ii. Manager LPG/Operations of respective RO iii. Plant In-Charge 2) a) For Terminals/Lube Blending/Filling Plant including LPG Filling Plant i. Divisional Heads-HQO/Zone from Operation/Maintenance/Marketing ii. In-charge of the Plant/Location iii. Accounting Functionary at the location b) For Depots i. Manager-RO (Sales/Operations/ LPG) ii. Location In-charge iii. Accounting Functionary (for locations where assigned) REFINERY: i. Deputy General Manager Maintenance (Ch. Maintenance Manager where the DGM position is not there) - Chairman ii Senior Manager - Inspection - Member iii. Ch./Sr. Finance Manager - Member iv. Sr.Manager / Manager - Materials - Secretary FOR IMMOVABLE PROPERTY Ch. Manager Admn. Ch. Manager Accounts I/c - Facilities and Maintenance. HEADQUARTERS OFFICE :
ATTACHMENT I
1) Ch.Manager Administration 2) Sr.Accounts Officer 3) In-charge - Facilities & Maintenance
PIPELINES: DGM - Pipelines, HQO Head of Pipelines Sr. Accounts Officer
REVISION: 03/2008
ATTACHMENT - I DEFINITIONS
1. Surplus : An item is in good condition, but not required for further use. 2. Obsolete : An item is in operating condition, but is better to replace for one of the following reasons: Change in the design of plant and equipment It's use is a safety hazard/public nuisance/prohibited by law Operating/repairing cost uneconomical Non-availability of spares Alternate modern equipment economical to operate
3. Unserviceable: An item which has outlived its life and cannot be economically operated or repaired. 4. Slow-moving: time. An item in good condition, but not required for use within reasonable
5. Scrap: GENERAL : Damaged drums/packages which have become unserviceable Unserviceable consumable store items like tyres, tubes, batteries and such other automotive accessories Empty bottles, empty rusted tins, old cartons, wooden cases/planks/broken pallets, junk items Old newspapers and periodicals Old gunny bags, polythene bags Crushed Cylinders/Regulators/Valves after RFD has been approved. Items which have become Scrap as part of normal operation/usage and for which no inventory is maintained. All Fixed Asset items have tag numbers. While carrying out repairs, replacement etc. if whole item having a tag no. is replaced, then the item replaced will be treated as plant item for disposal purpose. However, if a part of it is replaced, then the part removed will become scrap. For example, a pipe length of 20' is having tag no.xxxxxxx. If a leaky/damaged portion of 3' is cut and replaced, the portion removed will be treated as scrap.
IN CASE OF MAJOR INSTALLATIONS/REFINERIES Similarly, while carrying out Turn Around or Annual Maintenance, valves/pipes etc. are replaced. Where the unit replaced is having a separate Tag No. then that unit will be treated as Plant item and others as Scrap for the purpose of disposal. 6. Residual assets at closed down facilities: Residual assets at facilities closed for marketing/operating reasons, after effectively utilising all items in other locations, remaining items are to be classified as per the nature and disposed of. 7. The definitions of Estimated sale value and Reserve price have been furnished in Section I, item 6 (Page VII-10).
ATTACHMENT III PERMANENT DISPOSAL COMMITTEES MARKETING: For LPG Cylinders : (as specified in LAM) (to be nominated by GM-Zone) i. Sr. Manager LPG/O&E Zone ii. Manager LPG/Operations of respective RO iii. Plant In-Charge For Terminals/Lube Blending/Filling Plant including LPG Filling Plant i. Divisional Heads-HQO/Zone from Operation / Maintenance/Marketing ii. In-charge of the Plant/Location iii. Accounting Functionary at the location For Depots i. Manager-RO (Sales/Operations/LPG) ii. Location In-charge iii. Accounting Functionary (for locations where assigned) REFINERY: i. Deputy General Manager Maintenance (Ch. Maintenance Manager where the DGM position is not there) - Chairman ii. Senior Manager - Inspection - Member iii Ch./Sr. Finance Manager - Member iv Manager - Materials - Secretary PIPELINES: MPPL : i. DGM - Pipelines, HQO ii. Head - MPPL (Ch. Mgr. MPPL Opns.) iii. Sr. Accounts Officer HEADQUARTERS OFFICE : i. Ch.Manager Administration ii. Sr.Accounts Officer iii. In-charge - Facilities & Maintenance
VVSPL: i. DGM - Pipelins (HQO) ii. Head - VVSPL (Ch. Mgr. VVSPL Opns.) iii. Manager Finance
MDPL: i. DGM - Pipelines (HQO) ii. Head - MDPL (DGM - MDPL Opns.) iii. DGM - Commercial P&P
IMMOVABLE PROPERTY: i. Ch. Manager Admn. ii. Ch. Manager Accounts iii. I/c - Facilities and Maintenance. REVISION: PUR-026/26.03.2008
ATTACHMENT - IV
CONTROL REGISTER - REQUEST FOR DISPOSAL (RFD)
(Note : Columns 6 to 8 are applicable in case of Purchase Authority only)
RFD No. & Date
Originated by
Brief Description
RFD APPROVAL --------------------------------Due Date Actual Date (4) (5)
Date Recd.
Tender Finalisation ---------------------------------Due Date Actual Date (7) (8)
Disposal Order No. & Date
Partys Name
(1)
(2)
(3)
(6)
(9)
(10)
VII.23
CHAPTER VII - A PROCEDURE ON DISPOSAL OF IMMOVABLE PROPERTY 1. INTRODUCTION The procedure laid down in this Chapter is for disposal (including abandonment on as is where is basis) or surrender of immovable property which is not required for further use by the Corporation. Immovable property shall include embedded pipelines or tanks which are abandoned or jetties, railway sidings and such other fixtures or super structures which can not be removed and therefore form part of land . Note: In addition to the procedure laid here other clauses of Chapter VII of the Purchase Manual - Disposal Procedures wherever applicable shall be applied. Wherever a superstructure including buildings is demolished the scrap (if it has value) arising there from shall be disposed off using the procedure laid down in Chapter - VII. 1.A ACTION DEPENDING ON CLASSIFICATION OF IMMOVABLE PROPERTY: Where immovable property is on lease to the Corporation and the lease agreement is required to be terminated or where the property not belonging to the Corporation is to be surrendered, all movable property belonging to the corporation shall be removed after appropriate Equipment Movement Record (EMR) for transfer is prepared. The enclosed checklist shall be completed and the checklist (Attachment II) and the EMR shall be forwarded to the Fixed Assets Section. The other requirements of this chapter from clause 2 onwards will not apply to such cases. Where the Corporation has leased out land and the land is to be disposed after termination of the agreement, the procedure outlined below will apply to such disposal after the agreement is terminated. Where movable property is embedded or where structures/super structures can not be removed/demolished, such property will be considered as part of land in the procedure given below at the time of disposal of the immovable property. Where a super structure on a land leased to the corporation can be demolished, the disposal procedure laid down in Chap. VII of the Purchase Manual shall apply to any scrap, debris (if it has value) or to any residual arising there from (with value).
____________________________________________________________________________ Disposal procedure for immovable property Systems & Procedures Purchase Manual VII-A.1 HPCL, Mumbai
2. 2A.
DISPOSAL PROCESS - STEPS INVOLVED Identification of property and Preparation of RFD Location/Department will-Identify the Immovable Property such as land, building, apartment, flat or other immovable property which is to be disposed, abandoned or surrendered. In cases where there is alienation or surrender/termination of leases of any immovable property vested in the Corporation a proposal giving full description and reason for disposal shall be forwarded to the authority for approval under clause No. 8 of Chapter VII - Leases of the LAM. In other cases, a proposal giving full description and reason for disposal shall be forwarded to the authority for approval under clause No. 15 of Chapter III B Supply/ Operations/ Distribution of the LAM. The proposal sent as above shall also give a commitment that action shall be taken on all points in the checklist in Attachment II and the same shall be enclosed duly completed while originating the Request For Disposal (RFD). (Note: The process mentioned here in below has to be completed within one month from the date of approval mentioned above.) Obtain valuation reports in sealed envelopes from atleast 2 Govt. approved valuers, where the property is owned by the Corporation and is proposed to be sold. Prepare RFD for disposal of immovable property . RFD shall contain the following description : In case of Land details such as whether the title is freehold, leasehold or free of encumbrances, land record details i.e title/sale deed, lease agreements and identification of CTS/Survey No. etc. Enclose relevant documents. In case where movable property is embedded or where structures/super structures can not be removed/demolished, give details of the property being abandoned along with the first cost and other details required in the RFD format in attachment I. The estimated sales value in this case shall be nil since the same is being disposed off along with the land which is being valued.
In case of Building, Apartment/Flat/Bungalow in addition to above, year of construction, condition of property, year of possession, area details, Builders/Architects Plan, Occupation/Completion Certificate and such other details shall be given in the RFD and relevant documents enclosed. Further, if the building/flat/apartment is constructed on the land obtained from the State/City Development Authority, permission from these authorities for disposal/sale of the land with the structure is to be obtained and the same shall be confirmed on the RFD. The Estimated Sales Value column shall be filled by the location/department as per its rough estimate of the sales value. The location/department shall assign a Serial No. from the series maintained by the location/department for assigning to RFDs as mentioned in clause 4. (B) of chapter VII - Disposal Procedure of the Purchase Manual. Send the RFD along with the checklist in Attachment II duly completed. A copy of the approval obtained above under clause No. 15 of Chapter III B Supply/Operations/Distribution or clause 8 of Chapter VII - Leases of the LAM and the valuation reports (in sealed envelopes), where applicable. These documents shall be sent through RO to Head Zone/DGM Funct. - SBU HQO/Refinery for recommendation. Head Zone/DGM Funct. - SBU HQO/Refinery will send the RFD along with the checklist and attachments duly recommended to GM-HRD, HQO. Head Zone/DGM Funct. - SBU HQO/Refinery shall review the checklist to ensure all necessary action has been taken.
2B. -
Approval of Request for Disposal/Reserve Price : GM-HRD will get the RFD and the enclosed documents reviewed by the Disposal Committee, HQO comprising of Ch. Manager Admn., Ch. Manager Accounts & I/c Facilities and Maintenance. Disposal Committee will record their remarks, if any, for the disposal of the immovable property in the remarks column of the RFD form. The RFD form will be routed back to GM-HRD after the members of the Disposal Committee have reviewed and signed the form. The Reserve Price Committee comprising of GM-E&P and Pipelines, GM-HRD and Financial Controller will determine the Reserve Price for the immovable property under disposal after opening and reviewing the sealed valuation reports received from location/dept.
Note : Reserve Price is the minimum price which the items for disposal are expected to fetch and it is desirable that the items should not be disposed off for less than this price. Reserve price sent along with the valuation reports in a sealed envelopes is to be opened by the Purchase Dept. only after opening of price bids. The Reserve Price and the RFD will be approved as per Clause 4.3A of Chap. VI Materials/Disposal of the LAM). After approval, GM-HRD will forward the RFD along with the sealed envelope containing the Reserve Price and the valuation reports to the respective Purchase Authorities for tendering. Office of GM-HRD will retain one copy for their file and follow up. Actual disposal (The process mentioned herein below to be completed within 3 months) The purchasing authority shall Invite public tenders for disposal of immovable property. Disposal of Immovable Property shall be through Public Tender only. Evaluate tenders received and obtain approval of the appropriate approving authorities as per clause 5.2.f of Chap. VI - Materials/ Disposal. Communicate the same to the concerned location/Zone / office responsible for delivery and documentation. A copy of the communication shall also be sent to Systems & Procedures Dept., PH-4 for information. Systems & Procedures Dept. shall in coordination with Fixed Asset Section, HQO make the location code inactive once the compliance report mentioned in the next para is received by Fixed Asset Section, HQO.
2.C
2.D
Delivery and Documentation The appropriate authority on receipt of the communication shall initiate the process of disposal of the immovable property along with appropriate documentation in consultation with Legal Dept.
Prepare Equipment Movement Record giving details of cash receipt No., date name and address of the buyer, value realised, approved RFD reference, disposal order reference and forward to Fixed Assets section, HQO for processing along with copies of cash receipt(s) issued for receipt of sale proceeds received towards the immovable property disposed. In the case of property such as pipelines, tanks which are embedded or structures/super structures which are disposed off along with land EMR for write off shall accompany RFD to the Fixed Assets Section.
2.E
Format A specimen of the Request for Disposal of immovable property is enclosed in attachment - I.
REQUEST FOR DISPOSAL OF IMMOVABLE PROPERTY

LOCATION WITH CODE: __________________________________ ITEM :
SL. NO.
Attachment I
RFD NO.: ___________
DATE: ______________________ OTHER IMMOVABLE PROPERTY

HP FIRST COST BOOK VALUE ESTIMATED SALES VALUE
LAND
BUILDING
DESCRIPTION
APARTMENT/FLAT/BUNGALOW
TAG NO.
DATE IN PLANT (SERVICE DATE)
JUSTIFICATION FOR DISPOSAL (BY THE INITIATOR): SIGNATURES: ENSURE CHECKLIST DULY COMPLETED IS ENCLOSED REQUESTED RECOMMENDED AT AT LOCN. RO ZONE/SBU HQO/REF. SIGN/DATE DESIGNATION NAME DESIGNATION CH. MGR. ADMN. CH. MGR. ACCTS. I/c F&M, HQO NAME SIGN/DATE
DISPOSAL COMMITTEE AT HQO REMARKS:
CONCURRENCE BY RESERVE PRICE COMMITTEE REMARKS:
PURCHASE AUTHORITY DESIGNATION GM EM&P AND PIPELINES FINANCIAL CONTROLLER GM-HRD NAME SIGN/DATE DATE RECEIVED: TENDER ENQ. ISSUED DATE:
TENDER EVALUATION DATE:
LETTER ISSUED DATE :
(P.T.O. FOR INSTRUCTIONS)
INSTRUCTIONS
1. 2. 3. Enter location reference & date. Enter RFD No. from the series maintained locally for RFDs. Tick appropriate box to indicate type of property to be disposed such as Land, Building or other. Give SL. NO. and Description of the immovable property to be disposed: - For Land give brief details such as whether the title is freehold, leasehold, free of encumbrances, land record details such as title/sale deed, lease agreements and identification of CTS/Survey No. etc. Enclose relevant documents. - In the case of pipelines, jetties, railway sidings, tanks which can not be removed and is abandoned state that the item is abandoned with reasons therefore in the remarks column. Give other details such as date in plant, tag no. below. Enter estimated sales value as nil. - In case of Building, Apartment/Flat/Bungalow in addition to above, year of construction, condition of property, year of possession, area details, Builders/Architects Plan, Occupation/Completion Certificate and such other details shall be given in the RFD and relevant documents enclosed. Also where building/flat/apartment is constructed on land obtained from the State/City Development Authority, enclose their permission for disposal/sale of land with structures. Enter Tag No. Enter Date in Plant (date of capitalisation-service date) from the FAIL. Give details of HP First Cost and Book Value for the item under disposal in the respective columns of the form (refer FAIL). The Estimated Sales Value column shall be filled by the location as per its rough estimate of the sales value. Sealed valuation reports from 2 Govt. valuers shall be enclosed.. Give briefly the justification for disposal. Enclose approval obtained under Clause 15 of Chapter IIIB of the LAM. Signatures: All columns shall be signed & dated. Enclose the checklist in Attachment II. Proposal is to be sent along with the checklist and attachments through RO to Head Zone/DGM (Funct.) SBU HQO/Ref. for recommendation. Head Zone/DGM (Funct.) SBU HQO/Ref. shall ensure that the checklist is duly completed before recommending the proposal to GM-HRD. The Disposal Committee shall record their remarks, if any, for the said disposal in the Remarks column and route the same duly completed Back to GM-HRD for consideration of Reserve Price Committee. The Reserve Price Committee shall record their comments, if any. All members from Reserve Price Committee shall sign in the respective columns. The RFD is then to be sent to the respective purchasing authority for their further action. Purchasing authority shall make appropriate entries.
4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15.
ATTACHMENT II
CHECKLIST
Sr. GENERAL : 1 Ensure all property and other taxes have been paid up to date. In this and subsequent clauses wherever available attach No Claim Letters from the authorities wherever applicable. Ensure all legal/tax disputes (if any) in respect of the location being closed/property under disposal have been settled. Check with Tax/Legal Dept. at Zone/Ref./HQO for pending issues. If there are pending issues obtain letter of clearance from these departments before disposal. Attach letter of clearance. In case of lease agreements ensure the agreement is terminated. Also ensure ARFCs for rental payments have been discontinued. In case of petty cash (if any) close the imprest account Ensure electricity, water, telephone and other utilities have been discontinued. Obtain all security deposits wherever paid. Ensure Fixed Asset/equipments have been reconciled with the Fixed Assets Investment Ledger (FAIL) before disposal. Obtain and enclose confirmation from the Fixed Asset Section, HQO. Ensure that a total listing of all assets for the location where immovable property is being disposed has been obtained for reconciliation tag numberwise. Ensure that the explosive and other licenses have been terminated after ensuring all dues are paid. In the case of manufacturing locations ensure all excise, customs and such manufacturing related, storage and other licenses have been terminated. Ensure all security contracts, handling contracts and other contracts are terminated or will be terminated within 2 months from the date of approval of the RFD. Description Status
4 5
6 7
Page 1 of 3
Sr.
Description ADDITIONAL CHECKS FOR RETAIL PUMP OUTLETS:
Status
10 11 12
In the case of Retail Outlets ensure the retail agreement has been formally terminated. Ensure as per clause 11 of Chap. II - Sales of the LAM the TAR accounts have been reconciled. Receive fixed assets/equipments and reconcile with the FAIL. In the case of LPG dealerships receive & reconcile LPG floor stock. FOR LOCATIONS (INCLUDING MANUFACTURING LOCATIONS):
16 17
Ensure inventory, if any, are moved and PSL/MSL reconciled. Obtain and enclose confirmation from Zonal Finance. Where the location is responsible for materials lying with fabricators/repairers receive all material after ensuring the PSL/MSL of the Pseudo Location is completed. Alternatively prepare change SMUA to make another location the controlling PSL/MSL location. In the case of railway sidings ensure agreements with the Railways have been terminated. Stop payment for Railway Employees Quarters. NAME & DESIGNATION SIGNATURE DATE
18
PREPARED BY: (AT LOCATION)
LOCATION I/C
HEAD REGION
DGM - FIN. HEAD ZONE/DGM FUNCT. SBU (HQO)/ REF.
Page 2 of 3
Ensure checklist is completed and attached to the RFD.
Page 3 of 3
# CHAPTER
VIII
GRIEVANCE REDRESSAL MECHANISM 1.0 Background Hindustan Petroleum Corporation (HPCL) has developed the following mechanism to deal with references / grievances if any that are received from Parties who participated/intends to participate in the Corporation Tenders. The scheme is as under : 2.0 Definitions : Grievance For the purpose of this scheme, the word 'Grievance' would mean a written and signed representation received from party, who has participated/intends to participate in the tender of the Company, seeking inter-alia a review of the process of finalisation of tender on the grounds that his right as a party to the tender has been affected for the reason to be provided by him which needs to be examined and decided in the interest of equity. Grievance Redressal Cell (GRC) It is the group that will review the references received from the Parties and decide the matter. 3.0 3.1 Authorities to handle grievances There will be a process to deal with the grievances received from the tendering parties or the prospective tenderers based on the Tender document issued. The first level of such process will comprise of a Grievance Redressal Cell. will consist of the following : VISAKH REFINERY
ED - Refinery Head- Finance Head- Materials (Co-ordinator)
3.2
This Cell
MUMBAI REFINERY
ED - Refinery Head - Finance Head - Materials (Co-ordinator)
MKTG. /Corporate
ED - Retail/Direct Sales/ Corporate (Finance) LPG/Projects & Pipelines GM - O & D DGM - Aviation Head Finance (Commercial) Head- Procurement (SBU/ Dept. concerned) (Co-ordinator)
3.3
The Co-ordinator for each of the Cell is respective Head - Materials/Procurement of Visakh Refinery, Mumbai Refinery, Marketing SBUs & Corporate. All the grievances will be lodged with the Co-ordinator of the Cell.
3.4
Chapter VIII (Grievance Redressal Mecha. Systems & Procedures Purchase Manua HPCL, Mumbai
VIII:1
3.5 3.6
This Cell will examine the grievances and decide the matter. The second level of Grievance Redressal Mechanism is the Executive Committee Refineries for both Mumbai & Visakh Refineries, Executive Committee - Marketing & Executive Committee -Corporate for respective functions. The decision of the Executive Committee is final. Grievance Redressal Process LEVEL - I If a grievance is received by the Grievance Redressal Cell, the Co-ordinator will first acknowledge the receipt of the grievance to the aggrieved party within 48 hours from the time of receipt of the grievance (Excluding intervening Holidays). The Grievance Redressal Cell (GRC) will forward the Grievance to the Tender Inviting Authority at the earliest, who will offer his comments/views to the Cell within 2 days of receipt from GRC. On receipt of comments from Tender Inviting Authority, the Grievance Redressal Cell will meet and look into the grievances expressed by the aggrieved party along with the views/comments of the Tender Inviting Authority. The Grievance Redressal Cell can call for relevant records and documents to enable it to firm up its decision on the grievance. The Grievance Redressal Cell will decide the matter within 14 days and thereafter communicate the decision to the aggrieved party. LEVEL - II
4.0
4.1
4.2
4.3
4.4
4.5
The second level of Grievance Redressal Mechanism is the Executive Committee Refineries for both Mumbai & Visakh Refineries and Executive Committee - Marketing & Executive Committee -Corporate for respective functions which would examine and decide on any appeal / representation on the decision of the Grievance Redressal Cell. Parties aggrieved by the decision of the Grievance Redressal Cell, can appeal / represent to the Executive Committee. The decision of the Executive Committee is final. Time limitations for the handling of grievances Grievances regarding the Pre-qualification process should be lodged by the aggrieved party within one week from the date of Publication calling for pre-qualification bid. Grievances received after one week from date of Publication will not be considered. The decision on Grievance pertaining to Pre-Qualification should be finalised before the shortlisting of the parties is concluded. Specific Grievances regarding the Notice Inviting Tender (NIT) should be lodged by the aggrieved party within one week from the last date of sale of tender document, or one week prior to the Due date for Bid Submission, whichever is earlier. Grievances regarding NIT, received thereafter shall not be considered.
4.6
5.0 5.1
5.2
5.3
VIII:2
5.4
Grievances relating to the tender process (other than Notice Inviting Tender related grievances) should be lodged within one week from the date of opening the unpriced bids. The Grievance Redressal Cell shall examine the case and decide within 15 working days from the date of receipt of the grievance and advise the function concerned of the same so that they can process the tender further. Any grievance after price bid opening should be redressed before award of the contract. No grievances shall be entertained which are received after one week of price bid opening. The Co-ordinator of the Grievance Redressal Cell, on receipt of the grievance by the aggrieved party, should inform the Tender Inviting Authority not to finalise the contract till the disposal of the grievance by the Grievance Redressal Cell. The grievance lodged should be disposed of within a reasonable period of 14 working days so that there is no undue delay in awarding the contract. Interim Suspension of Tendering Process After any grievance is received by the Co-ordinator of the Grievance Redressal Cell, the Cell Members will meet and examine whether the tendering process relating to the concerned matter is to be suspended or not in consultation with the Tender Inviting Authority. The Cell will examine whether there exists a prima facie ground for suspending the tendering process and decide the matter. It may consult, if required, the Executive Committee as to whether the tendering process has to be suspended till a final decision is taken on the grievance. The decision to suspend the tendering process or not and disposal of the grievance should preferably be taken by the Grievance Redressal Cell and/or Executive Committee at the earliest but not later than 14 working days from the receipt of grievance keeping in mind the schedule of activities connected with the tender concerned. When it is decided to suspend the Tendering Process, the grievance should be examined and disposed off by the Grievance Redressal Cell & Executive Committee at the earliest, but not later than 15 days since it will be necessary to either continue with the tender as per earlier norms or it is decided to re-invite the tender with suitable changes. Other General Provisions A final written reply to the aggrieved party will be given by Coordinator of Grievance Redressal Cell / Executive Committee within 21 working days from the date of receipt of the grievance, in line with the minutes of respective GRC/ EC. The Grievance Redressal Cell / Executive Committee, while firming up its recommendations, can seek the views of other relevant Departments like Finance, Vigilance and Legal or any other Department concerned with the issue.
5.5
5.6
5.7
6.0 6.1
6.2
6.3
7.0 7.1
7.2
VIII:3
7.3
The Grievance Redressal Cell & Executive Committee is entitled to give a personal hearing to the aggrieved party, if necessary. If a Grievance is related to a contract already awarded and acted upon, and if the Grievance Cell & Executive Committee is of the view that the grievance needs review for remedial action for future tenders, it would submit its recommendation to the concerned SBU/Dept. head for future tenders. Companys Tender Grievance Redressal Mechanism will be displayed in its Website in the Tenders Page. The Grievance Redressal Cell & Executive Committee will maintain a grievance register giving details of the tender number, date of receipt of grievance letter, nature of grievance in brief, details of the decisions taken and the date of communication to the aggrieved party. The Grievance Redressal Cell & Executive Committee will also submit a quarterly report on the grievances handled to the Committee of Functional Directors. A copy of Yearly Report will be submitted to the Board for information. The relevant clause/provision of Grievance Redressal Mechanism should also be incorporated in GTC of all Tender documents giving the Officer-designate of the Grievance Redressal Cell, to whom the grievance letter should be addressed.
7.4
7.5
7.6
7.7
7.8
VIII:4

Purchase Manual

Încărcat de

Informații document

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Purchase Manual

Încărcat de

Drepturi de autor:

Formate disponibile

CHAPTER I

CEC Items (Central DGM Purchase &Materials GM - Finance Engg. Cell)

COMPOSITION - BIDS COMMITTEE I

Member Others -----

Ch. Mgr. Project Or Ch./Sr. Mgr. Terminal -----

Mega Projects Ref. Projects

Member Others -----

Head Engg. & ----Purchase (LPG Zone)

ED Refinery Head - CEC S/G H/I

GM Projects/ Maint./Technical GM - CEC

Senior of Director-F/ Director-HR ED IS ED CF GM HR GM IR Co. Secretary

DGM / Ch. Manager MEMBER SECRETARY Purchase

INVITEE(s) EC APPROVAL EC PROPOSAL ROUTING OF AGENDA ITEMS & MINUTES

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

B.1.2.a PRE QUALIFICATION CRITERIA:

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

the number of days

If required, a revised cost estimate from user should be obtained.

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Post tenders Tenders received

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Dy.Mgr./Mgr. Sr./Ch.Mgr. Sr./Ch.Mgr.

Dy.Mgr./Mgr.Fin. Sr.Mgr.Fin./ Mgr.Fin.

DGM/Ch.Mgr. Sr./Ch.Mgr.Fin. GM ED/GM DGM-Fin. DGM-Fin.

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Chapter IV (Purchase Procedures) Purchase Manual REVISION: PUR-034/09/10.09.2008

Systems & Procedures HPCL, Mumbai

Upto Rs. 50,000/-

IN WITNESS whereof, Bank of _, has executed on _ 199 .