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86 addressed to the
General Managers, All Indian Railways and others.
Sub:- Pre-qualification of contracts and consultancy of contracts etc.
With a view to improving the administration of contracts and quality of works
executed through the agency of contractors the Board had appointed a committee
of:
i)
ii)
iii)
iv)
v)
From:
Excellent/very Good/Good/Average/
Below Average.
Promptness in execution
Excellent/Very Good/Good/Average
Below Average.
Dependability in regard
To time of completion.
Organisation:
a)
Labour
Excellent/Very Good/Good/Average
Below Average.
b)
Equipment
c)
Technical Supervision
Adequate/Not Adequate/
Totally insufficient.
Adequate/Not Adequate/
Totally insufficient.
Adequate/Not Adequate/
Totally insufficient.
Justified claim
:
:
:
:
1) To seek arbitration
2) Take to the Court.
1) Settle by mutual consent.
2) Tendency for arbitration.
3) Tendency to take to Court
:
Yes/No
:
:
Signature of the Reporting Officer
Name:
Designation:
Date
1.2
For the following works, it is desirable to pre-qualify tenders for the Indian
Railways:
(Para 3 page 8)
i) Earth work involving:
a) Mechanical compaction where the contract value is likely to exceed
Rs. 50 lakhs;
b) Soil stabilization e.g. sand piling, vibration floatation, chemical
treatment of soils etc.irrespective of the value of contract;
c) Heavy and deep rock cutting requiring department of heavy plant and
machinery or expensive blasting operation irrespective of the value of
the contract;
ii) Tunnelling where the contract value is likely to exceed Rs. 50 lakhs;
iii) Cut and cover construction where the contract value is likely to exceed Rs.
50 lakhs;
iv) Bridge works involving;
a) pile foundations of large diameter;
b) Caissons or deep well foundations for important bridges;
c) Long span pre-stressed concrete bridges;
d) Cable stayed bridges;
e) Continuous girder bridges;
f) Fabrication and launching of girders exceeding 60 M spans;
v) Building and structural works where the contract value is likely to exceed
Rs. 50 lakhs and/or involving;
a) Pile foundations;
b) Constructions of important multi-storeyed buildings, auditoriums etc.
requiring superior workmanship;
c) Shell and folded plate construction;
d) Special architectural features;
vi) Electrification works involving;
a) Design and installation of overhead equipment;
b) Design, supply and erection of traction sub-station;
c) Design, supply and erection of supervisory remote control
equipment;
vii) Miscellaneous works such as;
a) Construction of diaphragm walls;
b) Water and sewerage treatment wells costing over Rs. 50 lakhs;
c) Heavy sheet piling works;
d) Other major construction works involving an element of
e) Construction works requiring large mobilization of plant and
machinery.
ix) S&T works such as;
a) Route relay interlocking;
b) Provision of automatic warning system;
c) Provision of centralized traffic control;
d) Mechanization hump yards with provision of retarders.
e) Microwave installation including provision of towers.
(Accepted)
1.3 The need for pre-qualification bids in a particular case should be included by the
Head of Department concerned with the concurrence of Associate Finance. The
pre-qualification bid should be invited by advertisement in the most open public
manner possible.
(para 4.2 Page 10)
(Accepted)
1.4 The number of contractors in the short list for pre-qualification bids should range
between 3 and 6
(Para 4.5 Page 11)
(The number of contractors on the short list to be qualified should be about 5 and the upper
list may be around 10. However, the minimum number should not be less than 3.)
1.5 A non-refundable fee of say Rs. 2,000/- should be charged from the indenting
bidders.
(Para 4.5, Page 11)
(Accepted)
1.6
All the tenderers who were pre-qualified should be invited to bid for the regular
contract.
(Para 4.7 Page 11)
(Accepted)
2.
2.1
i)
ii)
iii)
iv)
Pre-investment studies;
Preparation service.
Implementation service; and
Traffic assistance and council service.
c)
d)
e)
f)
v)
vi)
vii)
viii)
ix)
x)
xi)
xii)
xiii)
(Accepted)
Centralized Air-Conditioning of large buildings. Accordingly, following schedule of
powers are recommended:GMs may be authorized to enter into Consultancy contract upto a value not
exceeding Rs. 5 lakhs.
Chief Engineerings may be delegated powers to accept Consultancy
Contracts up to Rs. 2 lakhs.
(Power to accept consultancy contracts in the first instance is delegated to GM. only, up toRs.5 lakhs in each case. This will be
subject to Rs.20 lakhs only p.a. The selection of consultants to be at the level of HODs committee.)
5.
(Accepted)
3.2
Selection of contractors (Para4.3, page 44)
Selection of contractors should be carried out by Selection committee consisting
of the following officers:
Class
Selection Committee
B
C
D&E
Accepting authority
CE/CE(Con) (Level 1)
CE/CE(Con) or ACE/ACE(CN)
ACE/ACE/(CN)
Sr. DEN/Sr. XEN/Dy.CE(CN)
(Accepted)
3.3 For considering the enrolment of contractors in various categories, the following
criteria may be followed :- (Para 4.4, Page 44-85)
a) Class A
i)
They should have a permanent engineering organization and should
maintain a minimum of transport equipments and construction tools and
plants required for the works.
ii)
b)
ii)
At the time of enlistment, they should have satisfactorily executed at least two works, each two
each individually costing not less than Rs.10 lakhs.
c)
Class C.
i)They should have an engineering organisation or one of the partners should be a
Graduate Engineer with at least 10 years Experience.
ii)At the time of enlistment, they should have satisfactorily executed at least two
works, each individually costing not less than Rs. 25 lakhs.
d)
Class D
i) At the time of enlistment, they should have satisfactorily executed at least two
works, each individually costing not less than Rs. 50,000/e)
3.4
Class E
i) No specific minimum requirement need be insisted upon.
Confidential Reports.
There should be a standard proforma for recording confidential Reports of contractors.
The standard proforma is appended as Annexure-I.
(Para 4.5 page 45)
(Accepted. The Confidential Reports of Contractors in Standard Proforma given
as Annexure I. These should be done annually and maintained property in the
record.)
3.5
In Departments like C.P.W.D etc. even open tenders are invited from amongst
registered contractors only. It is therefore recommended that even on the Railways
tenderers should be picked up from the approved list only. Indenting tenderers should
be advised at the tender notice stage itself to get themselves registered if they have not
already done so by furnishing all the necessary information and credential, so that their
application for registration can be considered and settled before finalising the
acceptance of the tender (para 5, page 46)
(This is under consideration and separate order will follow.)
3.6
Limited Tenders.
Presently limited tenders are invited for contracts upto a value of Rs.10 Lakhs. This
value may be enhanced upto Rs. 50 Lakhs (para 5.2 page 47)
(This is under consideration and separate order will follow.)
3.7
Earnest Money.
As regards Earnest Money for the purpose of registration of contractors in A,B & C
Classes, Standing Earnest Money of Rs.25,000 need not be insisted upon. Contractors
may be given the choice of either depositing earnest money with each and every tender
as per tender condition or alternatively depositing a standing earnest money (Para 6,
Page 47).
(Accepted)
3.8
5.
c)
bringing equipment. actual commencement of work, the advance shall carry rate
of interest of 10% per annum)
d)
5.3
5.4
5.5
Committees recommendations.
Stage III 2 % of the contract value, against an irrevocable bank guarantee from a
nationalised bank of India or the State Bank of India in a form acceptable to the
Railways after physically commencing work
(This may be recovered through on account bills in instalments, the recovery
commencing when the finalisation of the work executed and paid for reaches 15%
of the provisional value of the contract and shall be completed when the value of
the work executed reaches 85% of the original value of contract. The instatments
on each on account bills will be on pro-rata basis.)
Advance against Machinery and Plant (Para 4.7, Page 66)
Advance on the security of machinery and equipment brought to site should be limited
only to New Machinery and equipment which are essentially required for the work and
involve a substantial outlay. The advance should not exceed 75% of the purchase price
of such equipment. The extent of this advance should be limited to a maximum of 10%
of the contract value and the advance should be payable only if the plant and
equipment have been brought to site and hypothecated to President of India by a
suitable bond or hypothecated to a bank. The plant and equipment should also be
insured for the full value and for the entire period they are required for the work. The
advance should be insured for the full interest free. The advance shall be covered in
instalments through on account bills.
The recovery shall commence when the value of the contract executed reaches 85% of
the original value of contract. The instalment on each on account bill will be on prorata basis.
(Accepted, except that advance shall not be interest free. All advances shall be
subject to 10% interest per annum.)
Advance for accelerating the progress of work may be granted during the course of
execution of the contract. Each case should be dealt with on merit. Any contract lying
within the powers of G.M.(Rs. 2 Crores and less) he should be empowered to sanction
such advance on the basis of recommendation of the Chief Engineer incharge with the
concurrence of Associate Finance. The advance should not exceed 10% of the value of
the contract (Para 4.9,Page 66).
(Accepted, subject to a maximum of 5% of the contract value or Rs. 5 Lakhs
whichever is less. The rate of interest to be levied will be 20% p.a. Normally no
advance should be given after the contract is signed.)
No advance should ordinarily be granted in case of works costing less than Rs.50
Lakhs even for specialised or capital intensive work. The G.Ms may, however, be
detegated powers to grant in exceptional cases an advance upto a maximum of Rs. 5
Lakhs in respect of contract value of less than Rs. 50 Lakhs if the tenderer insists
payment of such advances as a part of his offer. The powers should be exercised only
on the basis of recommendation of the Chief Engineer duly concurred by Associate
Finance. No interest should be charged for the advance. Recovery of the advance
should be made from the contractor through on account bills on pro-rata basis
commencing from the stage at which 15% of the work has been completed and entire
amount recovered before 85% of the work has been completed. (Para 4.10, Page 67).
(Accepted, except that advance will not be interest free, Rate of interest to be
levied will be 10% per annum.)
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