Contract Administration Powers Quiz

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Questions and Answers

What is the requirement for terminating a contract that is not in accordance with the conditions of the contract?

No specific requirements are mentioned.

Finance concurrence and legal vetting are required. (correct)

Only finance concurrence is required.

Only legal vetting is required.

If the Managing Director (MD) has accepted the tender, who has the power to exercise the forfeiture of Earnest Money Deposit and Security Deposit of the Licensee/Lessee/Concessionaire?

The Director, without any additional requirements.

The Dy.HoD, with finance concurrence.

The MD, without any additional requirements.

The Director, with finance concurrence. (correct)

What is the requirement for refunding the Security Deposit when the MD has accepted the tender?

Legal vetting is required.

No specific requirements are mentioned.

Both finance concurrence and legal vetting are required.

Finance concurrence is required. (correct)

If the revised value of a contract still lies within the powers of acceptance, what is the requirement for termination of the Full Power contract?

No specific requirements are mentioned. Signup and view all the answers

What is the requirement for imposing penalties?

Penalties shall be imposed strictly in accordance with the agreement. Signup and view all the answers

What is the requirement for terminating a contract on grounds other than the failure of the Licensee/Lessee?

Finance concurrence and legal vetting are required. Signup and view all the answers

Who has the authority to deal with subsequent contract management issues such as extension and variation?

Power Director Signup and view all the answers

For contracts involving earning from Licensee, leasing of Kiosk, shops, etc., who can approve estimates or reserve prices up to Rs. 5 Cr?

ED/HoD Signup and view all the answers

What is the maximum limit for Director's approval to invite open tenders for earning matters as per the text?

Rs. 5 Cr Signup and view all the answers

In case of tenders with an annual earning above Rs. 10 Lakh, what should a duly constituted Tender Committee recommend before opening financial bids?

Reserve price Signup and view all the answers

Who has the authority to approve works that have been approved in accordance with item R1?

Dy.HoD Signup and view all the answers

What is the maximum limit for Powers to invite limited tenders for earning matters as per the text?

Rs. 2 Cr Signup and view all the answers

According to the table, who has the authority to approve bidding documents/RFP/RFQ up to Rs. 2 crore?

ED/HoD Signup and view all the answers

For acceptance of bids up to Rs. 10 crore, what is the composition of the tender committee?

Three members at one level below the Accepting Authority, with the Convener from the Concerned Department and other members from different departments including finance Signup and view all the answers

For the purpose of constituting the tender committee for the technical package, what value is considered?

The estimated value of the project Signup and view all the answers

What is the maximum value up to which the Power Director can dispense with negotiations for deciding lease/license terms and conditions?

Rs. 5 crore Signup and view all the answers

For entering into lease/license/concession agreements with government/semi-government organizations, PSUs, and autonomous bodies on a single tender/nomination basis, what is the composition of the tender committee?

Three HoDs from PD, Finance, and another executive department Signup and view all the answers

According to the table, who has the authority to approve open tenders/public auctions up to Rs. 50 crore?

Power Director Signup and view all the answers

What method is prescribed for assessing the powers related to financial figures mentioned in the Statement of Procedure (SOP) for Property Development (PD) matters?

Net Present Value (NPV) of all cash flows to DMRC on the date of bid submission using Discounted Cash Flow (DCF) technique Signup and view all the answers

Which Statement of Procedure (SOP) is applicable for awarding consultancy contracts (including Transaction/Advisory/Estate Services) for Property Development (PD) Projects?

SOP for Project Signup and view all the answers

Which Statement of Procedure (SOP) is applicable for works contracts related to construction or execution of any works in Property Development (PD) areas?

SOP for Project Signup and view all the answers

Which authority approves the Reserve Price/Guidance Value for Property Development projects up to Rs. 50 crore each?

Director Signup and view all the answers

What is the prescribed process for bidding for leasing/licensing/concessioning of land/PD areas?

Transparent, fair and competitive bidding process by inviting open tenders for selection of the highest financial bidder Signup and view all the answers

Which authority approves the valuation of sites for Property Development projects up to Rs. 10 crore each?

Executive Director/Head of Department (PD) Signup and view all the answers

What is the maximum variation that a Head of Department (HoD) can sanction for contracts approved by the Managing Director (MD)?

5% of the contract value or Rs. 3 Crore, whichever is less Signup and view all the answers

What is the maximum variation that a Director can sanction for contracts approved by the Managing Director (MD)?

5% of the contract value or Rs. 25 Crore, whichever is less Signup and view all the answers

What is considered for the approval of variation(s) by the Competent Authority?

The net variation in a proposal, provided the value of the contract is still within the acceptance powers Signup and view all the answers

What is the maximum variation that can be sanctioned by the Competent Authority for contracts approved under the Lump Sum schedule?

There is no specific limit mentioned Signup and view all the answers

What is the requirement for exercising the powers related to variation over the original contract value?

The powers will be exercised with finance concurrence up to the power of acceptance Signup and view all the answers

Which of the following is NOT considered for variation over the original contract value?

Variation in the contract duration Signup and view all the answers

Match the following authority with their corresponding power to accept tenders: Dy.COS, Mgr./AM, Managing Director (MD), HoD

Dy.COS = Can directly accept tenders up to Rs. 10 Lakh Mgr./AM = Can accept tenders up to Rs. 1 Lakh Managing Director (MD) = Can exercise forfeiture of earnest money deposit and security deposit HoD = Can sanction contracts approved by the MD with a maximum variation Signup and view all the answers

Match the following tender procedures with their corresponding thresholds: Technical Package constitution, Financial Evaluation, Items under DMRC’s rate contract/GeM, Leasing of land/PD areas

Technical Package constitution = Considered based on estimated value Financial Evaluation = Considered based on the lowest bid received Items under DMRC’s rate contract/GeM = Can be accepted by Competent Authority Leasing of land/PD areas = Approval up to Rs. 5 Cr by designated authority Signup and view all the answers

Match the following contract management powers with their corresponding authority: Director, Competent Authority, HoD, Managing Director (MD)

Director = Full Power up to powers of acceptance Competent Authority = Can approve works in accordance with item R1 HoD = Maximum variation sanction for contracts approved by MD Managing Director (MD) = Termination of contract on grounds of failure of contractor Signup and view all the answers

Match the following financial matters with their corresponding requirements: Refund of Security Deposit, Extension of time for completion, Termination of contract, Forfeiture of earnest money

Refund of Security Deposit = Full Power up to powers of acceptance Extension of time for completion = Full Power up to powers determination Termination of contract = Full Power up to acceptance of liquidated damages Forfeiture of earnest money = Full Power up to powers determination Signup and view all the answers

Match the following urgency levels in tender procedures with their corresponding actions: Tender Committee not required, Acceptance by Competent Authority, Direct acceptance by designated roles

Tender Committee not required = Items under DMRC’s rate contract/GeM Acceptance by Competent Authority = Acceptance of Open Tenders Direct acceptance by designated roles = Up to Rs. 10 Lakh by Dy.COS, Up to Rs. 1 Lakh by Mgr./AM Signup and view all the answers

Match the following terms with their corresponding meanings:

NIT = Notice Inviting Tender RFP = Request for Proposal RFQ = Request for Quotation PD = Property Development Signup and view all the answers

Match the following financial limits with their corresponding approval authority:

Rs. 50,000 = Prior finance concurrence Rs. 40 Lakh = Small Value Open Tender with NIT Rs. 5 Cr. = Lease/License/Concession agreements on single tender/nomination basis Rs. 10 Cr. = Valuation of sites for Property Development projects Signup and view all the answers

Match the following committee compositions with the level of authority for tender acceptance:

3 members from Director's level = Tenders requiring MD's level acceptance 3 members including Convener from Concerned Department = Open tenders/tenders up to Rs. 20 Cr. Members from other departments and finance = Limitation on tender value for Limited Tenders Committee at Director's level = Technical Package tender committee constitution Signup and view all the answers

Match the following procedures with their applicable contract type:

SOP - MARCH 2024 = Works contracts related to construction or execution in PD areas Awarding consultancy contracts = Consultancy contracts for PD Projects Bidding process for leasing/licensing/concessioning of land = Lease Basis works Imposing penalties = Terminating a contract on grounds other than failure of Licensee/Lessee Signup and view all the answers

Match the following statements with the correct requirement in tender procedures:

Minimum notice period of 03 days = Observing notice period before tender acceptance Powers to be exercised sparingly in special cases = Urgency consideration in exercising powers Register of works maintenance for monitoring annual ceiling = Tracking work progress and annual expenditure Acceptance of all tenders as per delegated power limit = Ensuring compliance with delegation limits Signup and view all the answers

Match the following with their correct description:

Single tenders = Invited as no other vendors submit bids Open tenders = Invited from all interested vendors Limited tenders = Invited from pre-qualified vendors only Small value open tender with NIT value upto Rs. 40 Lakh = Does not require a tender committee for acceptance Signup and view all the answers

Match the following financial values with the correct tender procedures:

Upto Rs. 10 Lakh = Acceptance of work Upto Rs. 40 Lakh = Small value open tender with NIT value Upto Rs. 50 Lakh = Tenders for repair/CAMC/AMC Upto Rs. 1 Cr. = Open tenders/tenders from pre-qualified tenderers Signup and view all the answers

Match the following positions with their roles in the tender committee:

Convener from Concerned Department = Leads the tender committee Other members from other departments and finance = Participate in the tender committee Director's level committee for MD's level tenders = Constituted for tenders requiring MD's acceptance Tender committee of three members = Ensures proper evaluation and acceptance of tenders Signup and view all the answers

Match the following procedures with the corresponding financial values:

Inviting tenders through e-portal by HoD = Small value open tender with NIT value upto Rs. 40 Lakh Following a two-package system = Included in the procedure for small value open tenders Evaluation and acceptance by HoD without a tender committee = Applicable to tenders upto Rs. 40 Lakh Constitution of technical package based on estimated value = For technical evaluation in tender process Signup and view all the answers

Match the following terms with their meanings:

CAMC / AMC from OEM / Authorized representative of OEM = Maintenance contracts with original equipment manufacturer or their representatives Acceptance of consultancy works = Approval process for consultancy contracts Full Power = Authority to make decisions without limitations Remarks W6 (b) = Not applicable for certain financial values Signup and view all the answers

Match the procedure with the corresponding tender value limit for open tenders in the Full Power Nil protocol:

Tender acceptance by HoD = Rs. 40 Lakh Financial bid acceptance by director = Rs. 50 Lakh Reinvitation process under W6 (a) (i) = Beyond Rs. 50 Lakh Constitution of tender committee = Upto Rs. 5 Cr. Signup and view all the answers

Match the following with their corresponding power delegation for consultancy works acceptance:

Tender committee composition = Three members below Accepting Authority Convener's department in tender committee = Concerned Department Acceptance of tenders at MD's level = Director's level tender committee Considered value for technical package tender committee = Estimated value Signup and view all the answers

Match the type of tenders with their corresponding financial limit for pre-qualified consultants:

Open tenders = Upto Rs. 5 Cr. Limited Tenders = Upto Rs. 2 Cr. Single Tenders = Nil Page 11 of SOP - MARCH 2024 Sl.No. = 50 Signup and view all the answers

Match the authority with the corresponding approval limit for leasing matters:

Approve estimates/reserve prices up to Rs. 5 Cr. = Contracts involving earning from Licensee, leasing of Kiosk, shops, etc. Composition of tender committee = Lease/license/concession agreements with government/semi-government organizations, PSUs, and autonomous bodies on a single tender/nomination basis Maximum variation sanction by Director = Contracts approved by Managing Director (MD) Deal with subsequent contract management issues = Power Director Signup and view all the answers

Match the urgency situation with the corresponding tender procedure requirement:

Requirement for termination of Full Power contract = Revised value within acceptance powers Recommendation before opening financial bids = Annual earning above Rs. 10 Lakh Requirement for termination on grounds other than failure of Licensee/Lessee = Contract conditions Requirement for refunding Security Deposit = MD's acceptance of the tender Signup and view all the answers

Match the following tender values with the corresponding number of members in the tender committee:

Upto Rs. 1 Lakh = Two members Upto Rs. 2 Crore = Three members Upto Rs. 5 Crore = Three members Upto Rs. 10 Lakh = Full Power Signup and view all the answers

Match the type of tender (Open, Limited, Single) with the corresponding value limit for operation of parking lots for short duration:

Open Tender = Upto Rs. 5 Crore Limited Tender = Upto Rs. 2 Crore Single Tender = Upto Rs. 25 Lakh Signup and view all the answers

Match the nature of power (Full Power, Nil) with the corresponding value limit for dispensing with calling & acceptance of quotations for operation of parking lots for short duration:

Full Power = Upto Rs. 2 Crore Nil = Upto Rs. 3 Crore Signup and view all the answers

Match the composition of the tender committee for deciding Lease / License Rent / Premium and Terms and Conditions of agreement with the corresponding departments:

Three HoDs from Executive department, Finance, another Executive Department = Director/MD for approval One member of executive department, one member of finance, one member of any other department = One level below Accepting Authority One member of executive department, convener, one member of finance, one member of any other department = One level below Accepting Authority Two members at one level below Accepting Authority with one member of the executive department as convener and one member of finance = Three HoDs from Executive department, Finance, another Executive Department Signup and view all the answers

Match the power basis (Nomination Basis, Full Power) with the corresponding value limit for approving consultancy contracts (including Transaction/Advisory/Estate Services) for Property Development Projects:

Nomination Basis = Head of Department (HoD) Full Power = Director ED/HoD Dy.HoD Signup and view all the answers

Match the following terms related to tender procedures with their corresponding meanings:

Tender committee = A committee responsible for evaluating and accepting tenders NPV = Net Present Value, used to assess project values based on cash flows DCF technique = Discounted Cash Flow technique used for assessing project values Acceptance letter vetting = Process of verifying acceptance letters exceeding a certain value by the finance authority Signup and view all the answers

Match the following financial terms with their corresponding limits mentioned in the text:

Open tenders up to Rs. 400 = Nil Cr. Acceptance of tenders up to Rs. 100 Cr. = Full Power Agreements vetted by finance above Rs. 10 Lakh = Upto Rs. 5 Cr. Contracts approval under Lump Sum schedule = Maximum variation sanctioned by Competent Authority Signup and view all the answers

Match the consultancy contract terms with their corresponding regulations mentioned in the text:

Consultancy contracts for PD projects = Applicable SOP Approval of bidding documents/RFP/RFQ up to Rs. 2 crore = Director's authority Awarding consultancy contracts = Consultancy contracts SOP Consultancy contract value exceeding Rs. 25 Lakh = Vetting by tender accepting authority Signup and view all the answers

Match the urgency requirements in tender procedures with their corresponding actions:

Tenders requiring MD's level acceptance = Tender committee of Director's level Agreements above Rs. 10 Lakh value = Vetting by finance Acceptance letters over Rs. 25 Lakh = Vetting by finance authority Terminating a contract within powers of acceptance = Forfeiture of Earnest Money Deposit and Security Deposit Signup and view all the answers

Match the Lease Basis works terms with their corresponding clauses mentioned in the text:

Powers to accept tenders on Lease Basis without equity participation = Full Power Upto Rs. 100 Cr. Approving works approved on Lease Basis (PPP Model) = Upto Rs. 5 Cr. Dispensing negotiations for lease/license terms and conditions = Power Director up to a certain limit Approval for leasing of Kiosk, shops, etc. = Up to Rs. 5 Cr. Signup and view all the answers

Match the following financial values with their corresponding authority for acceptance of tenders beyond the threshold: Rs. 40 Lakh, Rs. 50 Lakh, Rs. 20 Lakh, Rs. 25 Lakh

Director = Cases beyond Rs. 50 Lakh HoD = Cases beyond Rs. 25 Lakh Finance = All acceptance letters exceeding Rs. 25 Lakh Competent Authority = Value upto Rs. 20 Lakh Signup and view all the answers

Match the following tender procedures with their corresponding actions under the SOP for Property Development: Two package system shall be followed, Tender committee not required, Vetting of acceptance letters, Invitation through e-portal

Inviting tenders through e-portal by HoD = Two package system shall be followed Concerned HoD evaluating and accepting technical/financial offer = No tender committee required Finance vetting acceptance letters over Rs. 25 Lakh = All acceptance letters exceeding Rs. 25 Lakh Director accepting financial bids over Rs. 20 Lakh = Cases reinvited beyond Rs. 25 Lakh Signup and view all the answers

Match the following urgency levels in tender procedures with their corresponding actions: Tender Committee not required, Acceptance by Competent Authority, Direct acceptance by designated roles, Invitation through e-portal by concerned HoD

Inviting tenders through e-portal by HoD = Tender Committee not required Director accepting financial bids over Rs. 20 Lakh = Acceptance by Competent Authority Finance vetting acceptance letters over Rs. 25 Lakh = Direct acceptance by designated roles Concerned HoD evaluating and accepting technical/financial offer = Invitation through e-portal by concerned HoD Signup and view all the answers

Match the following financial thresholds with their corresponding authority for financial concurrence: Rs. 10 Lakh, Rs. 20 Lakh, Rs. 50 Lakh, Rs. 5 Cr.

HoD = Upto Rs. 20 Lakh Director = Upto Rs. 50 Lakh Finance = Upto Rs. 5 Cr. Signup and view all the answers

Match the following actions in lease basis works with their corresponding authority for approval: Approve estimates or reserve prices upto Rs. 5 Cr., Legal vetting for complicated agreements, Vetting agreements above Rs. 10 Lakh, Agreement signing responsibilities

HoD = Approve estimates or reserve prices upto Rs. 5 Cr. Executive/Finance decision = Legal vetting for complicated agreements Finance = Vetting agreements above Rs. 10 Lakh Director = Agreement signing responsibilities Signup and view all the answers

Study Notes

Acceptance of Tenders and Contracts

The powers of acceptance are delegated to different authorities based on the value of the contract.
The Director has full power to accept tenders up to ₹50 crore, ED/HoD up to ₹10 crore, and Dy.HoD up to ₹2 crore.
For contracts approved by MD/Director, HoD can sanction variations up to 5% of the contract value or ₹3 crore, whichever is less.
For contracts approved by MD, Director can sanction additional variations over and above HoD's power up to 5% of the contract value or ₹25 crore, whichever is less.

Tendering Process

Open tenders, limited tenders, and single tenders are invited based on the estimated value of the project.
The tender committee consists of three members, including a convener from the concerned department, one from finance, and one from another department.
Tenders requiring acceptance of MD's level shall have a tender committee of Director's level.

Powers for Acceptance of Consultancy Works

The powers for acceptance of consultancy works are delegated to different authorities based on the value of the contract.
The Director has full power to accept consultancy works up to ₹5 crore, ED/HoD up to ₹2 crore, and Dy.HoD up to ₹1 crore.
For small value open consultancy tenders up to ₹40 lakh, the HoD is the accepting authority.

Refund of Security Deposit

The refund of security deposit, including performance security, safe custody guarantee, and retention money, is done as per the powers of acceptance.

Variation in Contract Value

Variation in contract value is allowed up to 5% of the contract value or ₹3 crore, whichever is less, for contracts approved by MD/Director.
For contracts approved by MD, additional variations can be sanctioned up to 5% of the contract value or ₹25 crore, whichever is less.

Termination of Contract

Termination of contract is done with finance concurrence and legal vetting.
Forfeiture of earnest money deposit and security deposit is done as per the powers of acceptance.

Powers for Lease/License Agreements

The powers for lease/license agreements are delegated to different authorities based on the value of the agreement.
The Director has full power to accept lease/license agreements up to ₹100 crore, ED/HoD up to ₹5 crore, and Dy.HoD up to ₹1 crore.
Powers for lease/license agreements on a single tender/nomination basis are also delegated to different authorities.

Other Powers

The powers for small value open tenders, acceptance of work, and signing of agreements are delegated to different authorities based on the value of the project.
The powers for operation of parking lots for short duration up to six months and entering into joint ventures (JVs) without equity participation are also delegated to different authorities.

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Test your knowledge on the powers related to contract administration, including refund of security deposit, variation in contract values, and financial decision-making authority. See how well you understand the different aspects of managing contracts.