General Principles of Railway Contracts

Different types of contracts handled across various railway departments like commercial, engineering, operating/mechanical, and stores.

Contracts related to goods movement, public transport, and coaching services at stations, transshipment points, and goods sheds.

Contracts for food and beverage services at railway stations.

Contracts related to railway station facilities (stands, stalls, booking offices, land lease, siding contracts).

Contracts for maintenance of railway infrastructure, land lease for development purposes, and civil maintenance.

Contracts for activities like waste disposal, ash-pit cleaning, and foundry waste handling in railway maintenance workshops.

Different Railway departments deal with various types of contracts—Commercial, Engineering, Operating/Mechanical etc., as well as collaboration and material purchase-related tasks.

To ensure the best possible value for money spent on contracts.

1. Open tenders (advertised): open to all firms.
2. Limited tenders (bulletin): invited to a select group.
3. Single tender: invitation to one specific firm.

21 days or more.

In exceptional circumstances, with consultation with the Financial Advisor and Chief Accounts Officer, the minimum notice period for larger works can be reduced. This applies to Works, Earnings, and Service Contracts (with modifications).

Up to 14 days, in consultation with Associate Finance.

They still require a minimum notice period of 21 days to allow for thorough preparation by bidders.

The date the tender is published on the e-tendering website.

Government e-Marketplace. A platform for procuring common use goods and services.

Yes, it is mandatory for goods and services available on the GeM platform.

Contract terms should be clear and unambiguous, leaving no room for misinterpretation.

A contract should clearly define what the contractor must deliver, including timelines, location, and quality standards.

The contract must outline the payment amount, coverage, recipient, and payment methods.

Contracts should include clauses about the contractor's responsibility for supervision, safeguarding government property, and protecting staff and the public.

Contracts should clearly define how alterations or modifications can be made, the authorized parties, and the assessment process.

The contract should outline consequences for either party failing to fulfill their obligations, methods to resolve disputes, and dispute resolution procedures.

It's essential to consult with legal and financial experts before finalizing any contract.

Use standardized contract forms wherever possible, but ensure thorough review of their terms before implementation.

Contract terms should not be significantly changed without consultation with relevant legal and financial authorities.

Contracts with unclear or indefinite liabilities or unusual terms require approval from legal and financial authorities.

For tenders worth Rs. 50 lakh to Rs. 1 crore, the committee has 2 members from the Accounts and Stores Departments. For tenders above Rs. 1 crore, it has 3 members - Accounts, Stores, and Indenting Departments.

The officer recommending a tender should not be the same person who accepts it. If they're the same person, acceptance must be done by a higher authority.

If the lowest bidder isn't on the approved list, they need to prove their capacity to handle the work and their financial stability.

When a lower bid is rejected, the reasons must be recorded for future reference.

If there are significant changes to tender specifications, new tenders should be called for with sufficient notice.

Tenders missing the required earnest money will be rejected immediately.

The tender committee may be responsible for the acceptance of a tender.

The tender committee consists of members from different departments depending on the value of the tender.

The tender process involves several steps, from issuing a tender notice to accepting the winning bid.

The process of inviting bids for a project or contract, used by railway authorities to select the best supplier or contractor.

The authority responsible for signing a contract needs to have the power to handle the specific "class" of contract (e.g., commercial, engineering) and the financial capacity to cover the contract's "amount" or value. This authority also needs to ensure the contract aligns with existing rules and regulations and doesn't exceed authorized limits.

In urgent situations like life-threatening events or track damage, contracts can be executed before works begin. However, a written document outlining the agreed rates and conditions should be prepared as soon as possible, even if it's just a basic agreement.

For less critical situations where immediate action is necessary, prior consultation with the Financial Advisor & Chief Accounts Officer (F&CAO) is required before contracts are signed.

No authority can execute a contract exceeding its permitted "class" or "amount". Any excess beyond authorized limits requires approval from a higher authority.

A contract cannot be executed if it breaks any existing rules or orders from a higher authority.

Commercial contracts at railways cover various services like catering, cycle stands, bookstalls, weighing machines, city booking offices, land lease, siding contracts, and sanitation.

Engineering contracts mainly involve civil works, railway infrastructure maintenance, land lease for development, and zonal contracts for maintenance.

Operating/Mechanical contracts deal with practical tasks like ash-pit cleaning, cinder picking, foundry waste disposal, and technical collaboration.

The Stores department handles contracts for sales of scrap materials, auctions, tenders, and potentially material purchases.

Tendering guidelines ensure fairness, transparency, and value for money in procuring goods and services. They dictate how contracts are awarded, ensuring the best bidders are selected.

The guiding principles emphasize transparent tendering procedures, including inviting bids, conducting scrutiny, and adhering to rules in the Indian Railway Code for Stores and Engineering departments.

The authority executing a contract must have the power to handle the specific contract type (e.g., commercial) and sufficient financial capacity to cover the contract's value. Any contract exceeding authorized limits must be approved by a higher authority.

The time frame for which a tender is open for bids, calculated from the date it's published on the e-tendering website.

The duration for which a winning bidder's offer remains valid after the tender closing date.

The shortest period required for opening tenders, varying based on contract type: 21 days for supply contracts, 30 days for global tenders.

The ability to accept tenders for works up to Rs. 50 lakh directly by executive officers, subject to certain conditions.

A group formed to evaluate tenders, ensuring they meet financial and technical requirements before acceptance.

The use of Government e-Marketplace for procuring common goods and services.

Pre-designed templates for tendering, uploaded on IREPS by relevant departments for use in the tendering process.

The process of inviting and accepting bids for construction and maintenance projects in the railway sector.

The officer recommending a tender cannot be the same person who accepts it. If they are, acceptance must be done by a higher authority.

If there are significant changes to the tender specifications, new tenders should be called for with sufficient notice.

Tenders without the required earnest money will be rejected immediately.

The authority accepting a tender should have the power to handle the type of contract (e.g., commercial, engineering) and the financial capacity to cover the contract's value.

No authority can execute a contract exceeding their permitted type or value. Any excess requires higher approval.