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Chapter 10: Contracts for Works Section 1: General 10.1.1 Code References for Contracts: The procedure and rules for the calling for tenders and entering into contracts for execution of works and supply of materials are containe...

Chapter 10: Contracts for Works Section 1: General 10.1.1 Code References for Contracts: The procedure and rules for the calling for tenders and entering into contracts for execution of works and supply of materials are contained in Chapter XII of the Indian Railway Code for the Engineering Department and Chapters III, IV and VII of the Indian Railway Code for the Stores Department. 10.1.2 Basis for Inviting Tenders and Entering into Contracts (a) Tender schedules shall be prepared keeping in view scope of work, tentative drawing issued, existing installation and after careful site survey. Where ever feasibile, works shall be dovetailed to avoid infructuous expenditure uniformity of equipment in a section/division shall be kept in view. (b) The documents which form a contract are as follows: (i) Instructions to parties tendering, (ii) Tender form, if any, (iii) Specifications − Standard and special, (iv) Schedule of items and quantities, rates, etc. (v) Conditions of contract − General and Special, (vi) Agreement Form, (vii) Scope of the work, Time scales, (viii) Location particulars of the work, Equipment details in case of Annual maintenance contract (if any). Note: Items above shall be comprehensive and explicit so that there is the least possibility of conflicting, even differing, interpretations being placed on the intentions of the contract. (c) Each Sr Divisional Signal and Telecommunication Engineer shall be in possession of copies of items mentioned in Para 10.1.2(b) and acquaint himself with the provisions contained therein. SSE/JE (Signal) may be supplied with copies of these where necessary. (d) Copies of items mentioned at Paras 10.1.2(b) shall be available in the Office of the concerned Chief Signal and Telecommunication Engineer/Construction/ Projects and the Senior Divisional Signal and Telecommunication Engineer/ Deputy Chief Signal and Telecommunication Engineer/Field unit for information to contractors who shall be advised to make themselves conversant with the provisions contained therein before tendering for works or supply of materials. This information may be given in Electronic Form for e-Tenders. Chapter 10: Contracts for Works Page 208 of 530  (e) Amendments when considered necessary to any para, clause or items of the regulations for tenders and contract, the general conditions of contract, the specifications for materials and works and the schedule of rates shall be authorised solely by the Principal Chief Signal and Telecommunication Engineer and intimated to the Executive Officers and supervisors who shall acknowledge receipt of the same. Note: Where ever schedule of Rates is available, the same shall be adopted. Quantities shall be arrived at after site survey and as per plans, drawings issued. Section 2: Tenders/E-Tenders 10.2.1 Calling for Tenders: Tenders/e-Tenders may be invited for any of the works required to be carried out under contract. When calling for tenders for works, the provisions contained in para 1211E of Engineering code shall be observed. Tenders may be invited by the Sr Divisional Signal and Telecommunication Engineer, Deputy Chief Signal and Telecommunication Engineer/Construction, Divisional Railway Manager or the Chief Signal and Telecommunication Engineer depending on the contract value or works (s) according to the procedure that may be prescribed by the Administration for the purpose. The common methods of obtaining tenders are by advertisement (Open Tenders), by direct invitation to a limited number of contractors (Limited Tender) and in exceptional cases by invitation to one contractor (Single Tender). 10.2.2 Tender Notices/e-Tender Notices (a) Notice for inviting tenders (NIT) shall be in the Format prescribed by the Administration and shall embody the stipulations contained in para 1239E. (b) When open tenders are invited, Tender Notices shall be available for participation for all subject to eligibility criteria mentioned. In addition, if so prescribed by the Administration, tender notices shall be published in the newspapers on the approved list of the Government of India, and/or on official web portal for on line tendering, it being left to the authority inviting enders to select the newspapers and the number of insertions for this purpose. 10.2.3 Tender Forms: Tender forms shall embody the contents of the contract document either directly or by reference. Documents pertaining to Technical & financial eligibility criteria if any and special conditions should also be available. Tender forms shall be down loaded from the official web portal by paying prescribed fees on line by the tenderers. Tenderers shall be required to submit evidence regarding their financial status, previous experience and ability to execute the works and an authorised copy of the Income Tax clearance Certificate along with other documents mentioned in Tender Notice, at the time of submitting their bid online without which their tenders shall not be considered. 10.2.4 Drawings and Specifications (a) Unless otherwise agreed to specifically, the execution of works and supply of materials on contract shall be according to the Railway's Drawings and the Specifications. Chapter 10: Contracts for Works Page 209 of 530  (b) If no specification exists for any item of work or supply, a complete specification of the item and of the materials to be used shall be prepared and incorporated in the contract documents or made available for referencing by intending tenderers. 10.2.5 Earnest Money, Security Deposit and Performance Guarantee (a) The tenderer shall be required to deposit earnest money along with the tender offer at the rates prescribed by the Administration as initial security. In case of acceptance of the tender, the earnest money will be retained by the Railway as a part of the security for the due and faithful fulfillment of the contract and the balance to make up the security deposit at the rates stipulated by the Administration or will be recovered by percentage deductions from the Contractor "on account" bills. (b) The earnest money of all unsuccessful tenderers shall be refunded as expeditiously as possible as per extant instructions from Railway Board issued from time to time. The successful bidder will have to submit a Performance Guarantee (PG) as per conditions laid down in GCC. 10.2.6 Opening of Tenders & Tender Committees: At the advertised time and place Tenders/ e-Tender shall be opened. The Administration will specify; (a) The constitution and functions of Tender Committees, Convenor for the purpose of evaluation and submission of recommendations to competent authority, should be as per latest Railway Board guidelines/SOP. (b) The powers of acceptance of tenders and entering in to contract and signing of contract agreement etc., shall be exercised by the competent authority as per latest Railway Board guidelines/SOP. (c) The conditions in regarding to acceptance of single tenders. Note: (1) When a single tender is received in response to a call for limited or open tenders, the urgency of the work shall be the criterion for its acceptance, provided the tendered rates are considered as reasonable. (2) If the rates in a single tender are considered inordinately high, negotiations may be carried out by the Tender Committee with the tenderer in the interest of work. 10.2.7 Acceptance of Tenders (a) Tenders opened and duly initialled at the Tender Committee Meeting shall be valued in the office of the Chief Signal and Telecommunication Engineer, Divisional Railway Manager, Deputy Chief Signal and Telecommunication Engineer as the Divisional Signal and Telecommunication Engineer as the case may be, the stipulations made, if any, being duly assessed and a comparative statement prepared. The comparative statement together with a note shall be sent to the Accounts Department for vetting. Based on the vetted comparative statement, the tenders will be adjudged by the Tender Committee and recommendations made to the authority empowered to accept the tender. Chapter 10: Contracts for Works Page 210 of 530  (b) Ordinarily the lowest eligible tender may be accepted by the Railway unless such acceptances would not be in the public interest. The acceptance or rejection of any tender is left entirely to the discretion of the authority empowered to deal with the matter and no explanation can be demanded by any tenderer as to the cause of rejection of his tender. 10.2.8 Entering into Contracts: No contract shall be entered into unless authority exists for commencement of the work. No authority shall enter into a contract beyond its own powers of sanction. 10.2.9 Execution of Contract Documents (a) The tenderer whose tender is accepted shall be required to appear at the office of the concerned Chief Signal and Telecommunication Engineer/ Construction/Projects or Sr. Divisional Signal and Telecommunication Engineer/Dy. Chief Signal and Telecommunication Engineer as the case may be, in person or if a firm or corporation, a duly authorised representative shall so appear, and execute the contract within stipulated time period. Failure to do so shall constitute a breach of the agreement effected by the acceptance of the tender in which case the earnest money accompanying the tender may be forfeited. (b) In the event of any tenderer, whose tender is accepted, refusing to execute the contract documents the authority may determine that such Tenderer has abandoned the contract and thereupon his tender and the acceptance thereof shall be null and void and the earnest money accompanying the tender shall be forfeited. 10.2.10 Form of Contract Documents (a) Every contract shall be complete in respect of the documents it constitutes. (b) The contract agreement required to be executed by the successful tenderer shall be in the form prescribed by the Administration for the purpose. The draft of the contract agreement shall be vetted by the Accounts Department. 10.2.11 Copies of Contract Documents (a) Sufficient number of copies of the contract documents shall be available for use in the offices of the Sr Divisional Signal and Telecommunication Engineer/ Dy. Chief Signal and Telecommunication Engineer and the SSE/JE (Signal)/ incharge. If materials are to be inspected by an agency other than the consignee, a copy of the contract documents shall be supplied to the inspecting agency also. No deviations in the contract documents shall be permitted without the sanction of the competent authority. (b) The executive Officers and incharge supervisor shall thoroughly study the contract documents for works to be carried out and shall adhere to the provisions contained therein. Chapter 10: Contracts for Works Page 211 of 530 10.2.12 Items of Works not Included in Contract Documents (a) Officer/incharge & supervisor/incharge of the work shall ensure that no item of work that is not included in the contract is carried out without the sanction of the competent authority. (b) Items of work not included in a contract may, if deemed expedient, be executed under the contract at the rates mutually agreed on by the contracting parties. 10.2.13 Modifications to Contract: In the event of any of the provisions of the contract requiring to be modified after the contract documents have been signed, the modifications shall be made in writing and signed by the Railway and the contractor and no work shall proceed under such modifications until this has been done. Any verbal or written arrangement abandoning modifying, extending, reducing or supplementing the contract or any of the terms thereof shall be deemed conditional and shall not be binding on the Railway unless and until the same is incorporated in a formal instrument signed by the Railway and the contractor, and till then the Railway shall have the right to repudiate such arrangement. 10.2.14 Issue of Departmental Materials to Contractors: When so specified in the contract, cables and other S&T materials shall be issued to contractor and receipts obtained for the same, It shall be ensured that the Contractors takes reasonable care of all materials made over to him and that on completion of the works the unused balance of the same are handed over by him in good order. Section 3: Measurements and Measurement Books 10.3.1 Code References: The rules regarding the recording of measurements in measurement books, care and custody of measurement books and the preparation of contract bills are given at Para 1313 E. (Annexure 10-A1) of Engineering code. 10.3.2 Measurement Books (a) Each measurement book shall have; (i) Instructions printed at the commencement. (ii) An Index which should be posted up-to-date. A form of measurement book is attached as Annexure: 10-A1. (b) Measurement books shall be issued to the SSE/JE(Signal)/incharge of the work, by the Sr Divisional Signal and Telecommunication Engineer/Dy Chief Signal and Telecommunication Engineer as required, duly numbered thus M. B. No................ of yyyy. As few books shall be issued as can conveniently meet the requirements. (c) A register of measurement books shall be maintained by the Sr Divisional Signal and Telecommunication Engineer/Dy Chief Signal and Telecommunication Engineer where in the contents and the movement of each measurement book shall be indicated. Chapter 10: Contracts for Works Page 212 of 530  (d) Measurement books shall be sent from one Office to another in the personal custody of a responsible person. (e) Completed measurement books and those not in use although not completely exhausted, shall if they are no longer required, be sent to the Sr Divisional Signal and Telecommunication Engineer/Dy Chief Signal and Telecommunication Engineer to be filed in his Office. (f) If a measurement book is lost, immediately after the loss is discovered, the matter shall be reported to the Sr Divisional Signal and Telecommunication Engineer Dy Chief Signal and Telecommunication Engineer, who will obtain sanction to write off the book from the registers of Measurement Books. 10.3.3 Recording Measurements (a) Every entry in a measurement book shall be commenced with a Statement as to how it is to be billed. The instructions for recording measurements contained in Annexure: 10-A1 shall be followed. (b) The pages of every measurement book shall be machine numbered, no page on any account shall be torn out, nor shall any entry be erased or defaced so as to be illegible. (c) Entries shall be recorded continuously in the measurement book. No blank pages shall be left. Any page left blank inadvertently shall be cancelled by diagonal lines drawn across the pages, the cancellation being attested. (d) When any measurements are cancelled, the cancellation shall be supported by the initials with date of the Officer ordering the cancellation or by the Official who made the measurements. The reasons for cancellation shall be recorded. (e) Should it be found necessary to make any additions to measurements already taken owing to omission at the time of the measurements, such additions shall be detailed in a subsequent page of the book, giving reference to the page containing the original measurements and explaining the reasons for the same. (f) Entries of the measurements shall be made direct into the measurement book at the site of the work in the presence of the contractor or his agent. The copying of entries from a rough note book or other record is forbidden. (g) The Contractor or his authorised agent shall be present at the time of all on account and 'final' measurements and should sign the measurements recorded in the measurement book as acknowledgement of his acceptance of the accuracy of the measurements and the classification of materials. The contractor shall be given due notice of the time and date on which the measurements are to be taken. Failing his attendance, the work may be measured up in his absence and such measurements shall not withstanding such absence, be binding upon him whether or not be shall have signed the measurement book provided that any objection to any measurement that is made by him in writing within seven days of the date of such measurements shall be duly investigated and considered. Chapter 10: Contracts for Works Page 213 of 530  (h) After the contractor's dated signature has been obtained, the official recording the measurements shall attest his full signature and designation at the end of the measurements. RTGS/NEFT – mandate Form must be collected. 10.3.4 'On Account' Measurements (a) For measurements against which on account bills are prepared and which are subject to adjustment in final bills, the official incharge may use percentage measurements for the part the work completed. (b) Quantities for payment' on account' shall never exceed the estimated quantities of actual work done upto the time of payment. In order to ensure this, the following certificate shall be recorded by the official incharge in the measurement book for all' on account' measurements. "I hereby certify that not less than the quantity of work paid for has actually been done and that the measurements are from plans/approximately estimated". 10.3.5 Responsibility of the Assistant/Divisional Signal and Telecommunication Engineer for Measurements of Works The Assistant/Divisional Signal and Telecommunication Engineer shall be responsible for the correctness of the measurements Quantity and adherence to clauses & specifications laid down in the contract for all works in his charge. He shall ensure that the measurements are made Timely in the specified manner and recorded by the SSE/JE(Signal)/incharge of the work. Test check of works as per extant norms shall be done by ASTE/DSTE and recorded, accordingly on the measurement book. 10.3.6 Computation of Quantities After measurements for a work are recorded, the quantities shall be computed and entered in the 'contents' column of the measurement book. This may be done by the official recording the measurements himself or in the office. 10.3.7 Preparation of Abstracts in Measurements Books (a) After the quantities are computed, an abstract shall be prepared in the measurement book in the office of Sr. Divisional Signal and Telecommunication Engineer/Dy Chief Signal and Telecommunication Engineer. The abstract shall be headed thus "Abstract of pages............to...........". The abstract shall show the correct description of the item, total quantity done up-to-date, rate and the total value for each item measured/checked, in connection with the work. The total of the values of all the items will be the total value of the work done up-to-date. (b) In the case of a first and final bill, this amount will not be subject to any deduction and will be paid in full to the contractor, except Security Deposit and other taxes. Chapter 10: Contracts for Works Page 214 of 530  (c) In the case of an 'on account' bill, the prescribed percentage of the value of the work done since the last certificate shall be deducted as security deposit towards the due fulfillment of the contract. The balance will be the amount payable to the Contractor and this amount must be written clearly in words as well as in figures. (d) On satisfactory completion of the work, the security deposit will be refunded to the contractor after the final payment for the work is made. Part of the security deposit may be kept with the Railway in specified cases whenever it is necessary to watch the results of the work and to ensure that there will be no failure of the work for the period stipulated in the contract. (e) The abstract shall be signed and dated by the Assistant/Divisional Signal and Telecommunication Engineer. (f) Each paragraph of the measurement book to which the abstract pertains shall be crossed in Red Ink diagonally thus. (g) See Abstract pages ………………… (h) At the foot of each abstract the relevant bill number and date of preparation of the bill shall be entered. 10.3.8 Submission of Bills: After the abstract is prepared in the measurement book, the bill shall be prepared in the Sr. Divisional Signal and Telecommunication Engineer's/Dy. Chief Signal and Telecommunication Engineer's Office on the prescribed form or submitted by firm. 10.3.9 Checking of Bills (a) The quantities in measurement books submitted by the Assistant Signal and Telecommunication Engineer/Divisional Signal and Telecommunication Engineer shall be checked for arithmetical accuracy in the Sr. Divisional Signal and Telecommunication Engineer's/Dy. Chief Signal and Telecommunication Engineer Office where it will be verified that; (i) The description of items is according to the contract schedule. (ii) There are no delays in recording measurements. (iii) The quantities executed are according to sanctioned plans and estimates. (iv) Where measurements are not recorded, correct reference to the standard measurements is clearly given, and (v) The quantities recorded in the bill agree with those shown in the measurement book and rates higher than those sanctioned are not allowed. (b) An endorsement shall be made at the end of Assistant/Divisional Signal and Telecommunication Engineer's abstract in the measurement book under the signature of Sr. Divisional Signal and Telecommunication Engineer/Dy. Chief Signal and Telecommunication Engineer giving reference to the particulars of the bill passed. Chapter 10: Contracts for Works Page 215 of 530  (c) RTGS/NEFT mandate form shall be obtained from contractor for enabling electronic payments. (d) The Railway Administration may lay down a time schedule for preparation and checking of bills. 10.3.10 Bill Registers The Sr. Divisional Signal and Telecommunication Engineer's/Dy. Chief Signal and Telecommunication Engineer’s Office shall maintain Bill Registers in which all bills prepared in their office shall be recorded. The Register shall be kept upto date and complete information with reference to agreements, work orders, abstracts in measurement books and amounts. 10.3.11 Disputes with Contractors Every effort must be made to ensure supply of drawings, handing over of site, deputing of staff for supervision, materials (if any), budget for work, Timely payments to contractor, to avoid disputes with the contractor. (a) On the completion of every work, 'No claims certificate' shall be obtained from the Contractor according to the relevant clause or clauses in the condition of contract. Every month or when 'on account' bills are made out, the contractor shall be instructed to submit a list of outstanding claims, if any. (b) If there is any likelihood of a dispute with a contractor, all documents, measurements and letters bearing on the case shall be at once collected and stored in safe custody with the officer responsible for the case. In all such cases care shall be taken to commence all correspondence with the contractor with head line 'without prejudice'. The contractor shall be instructed to submit complete details of his claims in writing with a certificate to the effect that these are final. (c) In spite of all reasonable efforts as per agreement, if the contractor refuses to sign the final contract certificate, the final contract certificate shall be forwarded to the Accounts Officer to make payment. The contractor may accept payment, if he wishes under protest. (d) Disputes arising out of the contract for a work, between the contractor on the one hand and the Railway Administration on the other, shall be referred for arbitration in accordance with the relevant clause in the General Conditions of Contract. 10.3.12 Completion Reports (a) After completion of a work as per its scope, Completion report shall be drawn by the Sr. DSTE/Dy. CSTE incharge of the work. All expenditures like stores, contract, adjustment memos, work shop debits, D&G charges etc., shall be properly accounted. (b) Finance concurrence of Completion estimate shall be obtained from associated finance and sanction from the competent authority. (c) Work shall be deleted from list of the works and same shall be intimated to PCSTE/CSTE(C). Chapter 10: Contracts for Works Page 216 of 530  Note: This Chapter has under mentioned Annexures S.No. Annexure No. Description 1 10-A1 Instructions for Recording Measurements Chapter 10: Contracts for Works Page 217 of 530 Para No. 10.3.1, 10.3.2(a), 10.3.3(a) Annexure: 10-A1 Instructions for Recording Measurements 1. The measurement book is the basis of all accounts of quantities of work done by contract and shall be so kept that the transactions may be readily traceable into the accounts by the entry of the number and date of bill in this book when the bill has been prepared and the entry of the number and page if the measurements affected shall then be crossed red ink diagonally thus 2. All measurements are to be taken down in ink in this book and in no others. The description of work must be lucid so as to admit of easy identification and check.The measurements shall show the quantities of work done as par last measurement and the total to date. A reference to the pages of the measurement book, where the previous measurements are to be found, also be given. 3. No erasures are allowed. If a mistake is made, the wrong wordings or figures shall be neatly scored out and correct entries made. Every such correction shall be initialled. 4. For large works, a separate measurement book may be specially set apart, or if found convenient, even two or more books may be set apart for different classes of works. 5. The measurements book must be looked upon as important records; they shall be carefully checked by the Engineer-in-charge to set that they are kept up as complete records of each kind of work done for which certificates have been granted. The eventual return of all books to the Sr Divisional Signal and Telecommunication Engineer's Office or Dy. Chief signal and Telecom Engineer’s office for record shall be insisted upon. 6. Whenever an Divisional/Assistant Signal and Telecommunication Engineer is required to submit his measurement book to the Sr Divisional Signal and Telecommunication Engineer's Office or Dy. Chief signal and Telecom Engineer’s office a Second book may be provided for his use where necessary. 7. Whenever progress on a work is reported in lump sum quantities under sub-heads of works, the number and page of the measurement books shall invariably be quoted. 8. It will be found convenient to keep the measurement relating to one work together and to effect this, the number of pages likely to be wanted for a work for sub-head shall be estimated and set apart for the purpose of recording the measurements consecutively. Chapter 10: Contracts for Works Page 218 of 530 9. Before detailing the measurements relating to a work the following information shall invariably be given at the top of the first page of such measurements, each item being underlined in red ink: 1. Final/on account contract certificate No. 2. For previous on account bill see page...................of measurement Book No. 3. Name of work. 4. Situation of work. 5. Agency by which work executed. 6. Reference to Agreement of work order. 7. Date commenced. 8. Date completed. 9. Date of measurement. 10. For facility of reference and to assist in carrying out the instructions given in para 8 above, the index shall be kept up-to-date. Chapter 10: Contracts for Works Page 219 of 530