Lecture None on One Day Workshop on Capacity Building of PWD Engineers on Preparation of Tender Document and Contract Administration

Transcription

1 1 Lecture None on One Day Workshop on Capacity Building of PWD Engineers on Preparation of Tender Document and Contract Administration Introduction: What is Contract? Atop Lego SSW (EZ) When two or more persons have common intention communicated to each other to create some obligation between then, there said to be an agreement. An agreement which is enforceable by law is called contract. As per Indian Contract Act 1872, the agreement enforceable by law are those made by free consent of the parties competent to contract for a lawful consideration with lawful object and not expressly declared to be void. This is subject to any special law to which, a contract should be in writing and attested by witnessed. The essential ingredients of a contract are:- a) Offer made by one person called promisor. b) Acceptance of offer made by the other persons called promisee. c) Doing of an act or abstinence from doing a particular act by promisor for promise called consideration. d) Acceptance of offer should relate to something which is not prohibited by law. e) Offer and acceptance constitute an agreement, which is enforceable by law, become contract. f) In order to make a valid and binding agreement, the parties entering into such an agreement should be competent to make such agreement. g) For the purpose of the agreement there must be a communication of intention between the parties there. Hence, in the form of a contract there is:- (i) A proposal. (ii) Communication of proposal. (iii) A Communication of the acceptance of the proposal. The communication of the acceptance completes the agreement. Offer may lapse for want of acceptance or be revoked before acceptance. Acceptance produces something which cannot be recalled back or redone

2 2 A contract spring up as soon as the offer is accepted and imposes obligation upon the person making the offer. As per the provisions of Indian Contract Act, the agreement can be drawn on standard contract form devised for respective type of works. Arunachal PWD, do not of have of its own standard form of contract and hence adopts the CPWD Form of Contract or MORTH Standard Bidding Document depending on the nature of works. Hence the brief note of forms of contract adopted by CPWD is given below:- 1. PWD Form No. 6. This Notice Inviting Tender and in brief known as NIT is required to be issued in respect of works for which tenders are to be called. The salient features of PWD Form-6 are:- 1) It include name of work. 2) Estimated cost put to tender. 3) Period of completion. 4) Time and date of receipt of tender and its opening date and time. 5. Qualification information like experience, financial capability etc. for participating in tender. 2. PWD, Form -7(Percentage Rate Tender). In this form, the contractor is required to offer his rate in percentage above or below the cost put to tender. As per CPWD Manual use of this form is restricted upto works of Rs.1.00 lakh. For adopting this form, the department should have their updated schedule. 3. PWD-Form 8 ( Item Rate Tender) In the item rate tender the contractors are required to quote rates for individual works on the basis of the schedule of qualities furnished by the department. 4. PWD Form 9: Supply of materials. This form is used where the purchase of materials involved. According to the Form 9, the contractor are required to quote rate for supply of the required quality of materials whether raw or finished. 5. PWD Form No.10 Piece Work Agreement : This form is used: a) For a work costing less than Rs. 60,000/- b) In cases in which it is necessary to start the work in anticipation of formal acceptance of contract. c) For running contracts i.e. those for pipes, laying of sewerage etc.

3 3 6. PWD Form No. 11 Work Order. This form is used for works costing upto six lakhs or below. Any work awarded on Form No. 11 may be stopped by the Engineer - in - charge at any time and the contractor is also entitled to stop the work at any time. 7. PWD Form No. 11 A Work Order. This form may be used for works costing less than six lakhs where it is not considered necessary to use regular Form-7,8 and 12 and at the same time it is desired to bind the contractor in respect of the quality of the work and the time in which it is to be completed. 8. PWD-12 Lump-sum Contract. In this, the contractors are required to quote a lump-sum figure for completing the work as per given drawings, design and specifications. The lumpsum contract may be for executing the work as per approved design, drawing or specifications or it may include work, and preparation of structural drawing as well keeping functional, structural and architectural parameters. 9 PWD Form Tender for Demolition of Building. This Form is used in tender for the demolition of building which are written off by competent authority. 10 MORTH-Standard Bidding Documents This standard bidding document is to be used for National Highway works which has been basically developed for Road and Bridge works. 11 FIDIC Document. The FIDIC (FEDERATION INTERNATIONALE DES INGENIEURS CONSEILS) is international condition of contract for procurement. The World Bank and Asian Bank also have their own documents which are to be followed for the work funded by them. 12. Mode of obtaining security of bidding process: (i) Earnest Money/Bid Security The Earnest Money/Bid Security is paid by each Bidder to enable government to ensure that a tenderer does not refuse to execute the work after it has been awarded to him. In case where the tenderer fails to commence the work, after it has been awarded to him, the earnest money is absolutely forfeited to Government.

4 4 (ii) Rate of Earnest Money The Rate of the earnest money shall be as below: Sl.No. Value of work Rate of Earnest Money 1 For work costing upto Rs % of estimated cost put to tender 2 For works estimated to cost more than Rs Crore, Rs lakhs plus 1% excess of estimated cost of Rs Crore. Rules of Enlistment of contractor in CPWD, 2001 do not provide for exemption of depositing earnest money with the individual tender by contractor. Therefore, no exemptions of earnest money against lumpsum deposit exist as on date. 13. Mode of Deposit The earnest money may be accepted in the following forms:- i) Cash upto Rs.10, 000/- ii) Treasury Challan iii) Deposit at call Receipt of a Scheduled Bank, guaranteed by RBI. iv) Bankers Cheque v) Demand Draft. vi) Fixed deposit receipt pledged in favour of tender inviting authority. vii) Bank Guarantee. The bank guarantee is accepted when the amount of the earnest money is more than 5 lakhs. In such cases, minimum 50% of the earnest money (but not less than Rs Lacs) or Rs. 25 lakhs which ever is less will have to be deposited in the shape mentioned at SL.No. 2 to 6. For balance amount, the bank guarantee shall be accepted. Further, the FDR pledged in favour of tender inviting authority as earnest money should be valid for a period of six more months after the last date of the receipt of the tender. 14. Performance Guarantee The Performance Guarantee shall be submitted by the contractor at the rate of 5% of the tendered amount in addition to other deposit as per relevant clauses of contract for his proper performance of the contract. The Performance Guarantee shall be provided in the form of irrevocable bank guarantee bond on any scheduled Bank or State bank of India in accordance with the form prescribed, or in cash or fixed deposit receipt etc.

5 5 The validity of performance guarantee shall be upto 60 days beyond the date of completion. 15. Security Deposit The contractor shall permit the Government to deduct a sum at rate of 10% of the gross amount from each running bill till the sum along with the sum already deposited as earnest money, amount to 5% of the tendered value of the works. The security deposit can also be deposited in cash or in the form of government securities or fixed deposit receipt. The performance guarantee shall be refunded to the contractor on completion of the work and recording completion certificate and the security deposit shall be refunded after the expiry of the defect liability period. 16. Advances to contractor as per contractual provisions (i) Mobilization Advance The mobilization advance enabling the contractor to mobilize starting of the work at site is granted for certain specialized and capital intensive works costing not less than Rs Crore. The rate of mobilization advance is limited to maximum value of 10% of the estimated cost put to tender or tendered value or Rs. One Crore which ever is less.the mobilization advance shall also carry a simple 10% per annum. The mobilization advance shall be released against Bank Guarantee for schedule bank for the full amount of advance. The advance should be released in not less than two installments. In the case of MoRTH SBD/FIDIC mobilization advance are granted without any interest. (ii) Secured Advance The secured advance is given on the security of non-perishable material brought to site for use in the work. The amount of secured advance is limited to maximum of 75% of value of material as assessed by Engineer-in-charge, or an amount not exceeding 75% of material element cost in the tendered rate of the finished item of work which ever is lower. (iii) Advance to Contractor When an account bill has been received in the provisional office and there is likely to be delay in authorizing payment for special reasons, which should be recorded. The Divisional Officer may make a lumpsum advance payment on Hand Receipt Form-28, with the following conditions:-

6 6 (i) Contractor should make application for immediate financial aid. (ii) The tender amount is within the competency of Executive Engineer and has been accepted by him. (iii) Approval has been received for releasing Aid to contractor from Superintending Engineer for the contract amount beyond his power. (iv) The amount should not exceed 75% of the net amount of bill under check. (v) Undertaking has been obtained from contractor that if the advance amount paid is more than the amount due to him on running account bill, he will refund the same to government. 17. Pre-qualification of contractor Pre-qualification is a process of pre-qualifying panel of contractor for a particular type of works before actual tenders are invited. In the pre-qualification process, the list of contractor for a work is pre-selected based on their technical experience and financial capacity as required for a particular type of works. The tender are directly issued to the pre-qualified contractor only. (i) Pre-qualification of contractors are resorted in the following cases:- a) The estimated cost of the works exceeds Rs.5.00 Crore. b) The estimated cost of works is upto Rs Crore but more than Rs Crore, and ADG concerned, in his discretion and for recorded reason may pre-qualify contractor on the following grounds:- i) When the work is to be executed in great speed for which all the contractors are not in a position to generate. ii) Work of special nature requiring specialized equipment which is not likely to be available with all contractors. iii) The work is to be executed in sensitive area. The evaluation shall be as per the guidelines in Appendix-18. (ii) Post-Qualification of contractors The Post qualification is the process in which the prequalification documents are submitted along with Financial Bid, instead of prior pre qualification of contractor..the Post Qualification is carried out when:

7 7 1) Cost of work is more than Rs. 10 (Ten) Crore (MoRTH Specifies minimum limit as Rs Crore) 2) ADG can decide to go for post qualification for works costing between 5 Crore to Rs.10 Crore. (Chief Engineer can also decide the minimum limit with recorded grounds). In post qualification the tenders are invited in two envelop system. One shall contain earnest money along with the Technical Bid and document in support of the eligibility. The other envelop shall have Financial Bid. There shall be pre-bid conference for intending contractor for clarification of doubt. The envelop containing earnest money and Technical Bid shall be opened first. The Technical Bid having valid earnest money deposit shall be evaluated and qualified by competent authority. The Financial Bid of qualified contractor shall be opened at notified time. There shall be gap between opening of Technical Bid and Financial Bid as decided by the competent authority. The validity of the tender shall be reckoned from the date of opening of Financial Bid. 18. Clause of contract to be attended while preparation of Tender Documents In Arunachal Pradesh PWD, in general the Form of Contract PWD Form 8 is adopted. The contract document shall consist of two parts i.e. PWD Form 6, Notice Inviting Tender and PWD Form 8, Conditions of Contract. The clauses to be given attention at the time of preparation of tender document are as below:- a) PWD Form 6 (NIT) b) Clause -1: Name of work should be mentioned clearly. c) Clause- 1.3: Criteria of eligibility for issue of tender document. SL. No. Estimated cost of work put to Tender Experience of contractor in execution of similar works. 1 For works costing above Rs. 25 lakhs but upto Rs. 2 crore Three similar works costing not less than Rs. (50%) 2 For works costing above 2 crore but upto Rs crore. Three similar works of value 40% of estimated cost put to tender or two similar works of 50% cost or one of 80% of estimated cost in last 7 year ending last day of month previous to one in which the tender are invited (To be

8 8 3 For works costing above Rs crores. rounded to nearest to Rs.1.00 lakhs) Two similar work of each value 60% of the estimated cost or one works costing not less than the estimated cost. (Rounded off to Rs lakhs) in last seven 7 years. The similar works should also be clearly specified as what type of works shall be taken as similar works. (d) (e) Clause-4. Availability of site should be clearly mentioned. Whether it is available by parts. Cluase-5 (i) The cost of tender and date from when it would be issued should be mentioned. (ii) Mode of deposit of earnest money should be indicated. As per Form CPWD- 6 mode of deposit are as below: SL.No. Amount of Earnest Money. Mode of Deposit Acceptable. 1 Upto Rs. 10,000/- In cash demand draft. 2 Upto Rs. 5,00,000/- Receipted Treasury Challan /Deposit at call Receipt of any schedule bank/fixed deposit receipt of any scheduled bank demand draft of a scheduled bank. 3 Above Rs lakhs. 50% of earnest money but not less than Rs lakhs or Rs lakhs whichever is less shall be deposited in above Form. 50% shall be acceptable upto bank guarantee. (f) Clause-14 The validity of tender period should be checked. It is generally sixty days from the date of opening tender.

9 9 19. Important Clauses of General Condition Of Contract: (a) Clause-1 : Performance Guarantee Contractor has to deposit 5% of the tendered value as performance guarantee. The validity of performance guarantee should be 60 days beyond the stipulated date of completion. (b) Clause 1 A Recovery of security deposit clauses should be checked. (c) Clause 10 This clause relates to the issue of materials by the department. The list of materials to be issued should be decided along with issue rate and place of issue. (d) (e) Clause 10 B i) Secured advance upto 75% of the assessed value of non-perishable ii) materials is admissible. Hence, this clause should be checked. Mobilization advance of 10 % of estimated cost put to tender of tendered price or Rs.1.00 crore whichever is less, is intended to be given for certain specialized and capital intensive works costing not less than Rs crore. Hence, it should be checked where the clause is to be deleted or not. Clause 10 C, 10CA &10CC The increase in price of materials or labour due to direct results of fresh law coming into force or order shall be compensated as per clause 10C & 10CA. Similarly, any reduction shall also be deducted from the tender prices Similar compensation is also provided by clause 10 CC, which becomes applicable when the stipulated period is more than 18 months. Hence, the materials components required for the clause should be checked. As per CPWD Manual the materials component are as below:- SL.No. Category of work Cement Steel Material Labour POL 1. Building 75% 25% - 2 Road work 90% 5% 5% 3 Bridge works 25%

10 10 As per present clause 10.CC. the components of materials like, Cement, Steel are to be worked out separately in the material components. (f) Clause12 As per this clause the Engineer-in charge can order for execution of extra works or make alteration, omission of items etc. The limit of such deviation should be decided before approval of tender document for incorporation in the draft NIT. In general, the limit is specified as 30%. (g) Clause 34 This relates to issue of T & P to contractor on hire charges (Schedule C). The list of T & P to be issued should be decided along with the rate of hire charges, place of issue etc. (h) Clause 36 The list of technical staffs to be employed by the contractor shall be furnished. This is required for proper technical communication. The minimum qualification and experience required for such technical staffs shall be indicated in Schedule F. For guidelines of fixing requirement refer Appendix-16A (i) Clause 42 The theoretical consumption with authorized variation is specified. The rate of penal recovery in the event of excess consumption shall be decided and recovery rate shall be incorporated in Schedule F. 20. The Preparation of Tender Document Before tenders are invited, detailed estimate, rate and amount of various items of work and also the specification to be adopted should be prepared. Working drawing should also be prepared for adoption in execution of drawing contract. (a) The tender document in CPWD Form shall comprise of the following:- (i) Notice Inviting Tender in Form CPWD - 6. (ii) The Form of Tender to be used along with set of conditions, particular specifications and special condition should not be repetitive and in contradiction to each other. Additional condition to be decided by NIT approving authority and he should be responsible for the same. (iii) Schedule of quantities of work.

11 11 (iv) A set of drawing referred in schedule of quantities. (v) Specification of work to be done. The tenders are to be approved by the competent authority who is empowered to accept the same. Some of the important points to be attended at the time of preparation of the tenders are as below: (i) Availability of site to be ascertained. (ii) Confirmation that materials to be issued to the contractor would be available. (iii) Drawings to be adopted in execution are available well in advance. (iv) The NIT should not have unit using symbol as % and /100 in schedule. It should be clearly written like, per hundred square metres or per thousand. (v) In case of lumpsum tender drawing and specification should have a prior approval of competent authority. (vi) All corrections or modifications should be numbered and signed by competent authority as a token of approval. Surveyor of Works will attach corrections in the tender at the level of Chief Engineer. (b) Issue of Tenders (i) The tender papers shall exactly be replicate of the draft NIT approved by the competent authority. (ii) The issuing authority of the tender like Executive Engineer/Assistant Engineer should invariable date and initial corrections, in schedule of quantities, schedule of materials to be issued and other essential parts of the contract documents, Abstract of total corrections, insertions and overwriting at each page of the tender documents must also be recorded with dated initials. (iii) Tenders should be issued to the contractors who fulfill the initial eligibility criteria mentioned in the press notice. The fact of issue of the tender document to a particular contractor should be recorded on the cover page of the tender document, since the documents are not transferable.

12 12 (c) Publicity of Tender Wide publicity of the Notice Inviting Tender should be given by publishing the same in News Papers, posting in public places and office etc, Further, the tender notice should also be published in Website of the department. The Advertisement for NIT should be sent to Director DIPR (For Arunachal Pradesh PWD only) for insertion in the press. The advertisement inserted in the press should be brief and clear in meaning. For economy in cost, the following guidelines should be kept in view:- i) Combined tender notice may be issued for all the works to be awarded around same time. ii) Official Designation and Address of Executive Engineer should not be repeated at the bottom since the official designation is given at the beginning of the press notice. iii) Title such as Government of Arunachal Pradesh, Public Work Department is at the top of NIT should also be dropped. iv) Name of Executive Engineer inviting tender should not be printed. (d) The Limit for Publicity of Tenders: The following time limits between the date of call of tenders and the date of opening of the tender should generally be followed. i) 10 days in case of work costing upto Rs lakhs. ii) 2 weeks in case of work costing between Rs lakhs to Rs lakhs. iii) 3 weeks in the case of works costing more than Rs lakhs. (e) Sale of Tender Document The cost of tender document shall be fixed as below:- SL. No. Cost of Works Cost of Tender document 1 Works costing upto Rs lacs Rs (One copy of agreement to be free of cost to whom the tender is awarded) 2 Work costing Rs.1.00 lacs to Rs lacs Rs (One copy of agreement to be supplied to contractor to whom work is awarded).

13 13 3 Work costing is Rs lacs to Rs Crore. 4 Work costing above Rs Crore Rs (One copy of agreement to be supplied to contractor to whom work is awarded) Rs (One copy of agreement to be supplied to contractor to whom work is awarded.) Authorities competent to approve NIT have got discretion to add to the prices mentioned above, any additional cost of drawing to be supplied along with the tender document and additional cost on the labour actually involved in their preparation. (f) Procedural Requirement for Sale of Tender (i) (ii) (iii) (iv) (v) Eligibility criteria should be clearly mentioned in press notice and tender papers should be issued to eligible contractor only. In the cases where the registration of contractor exists, the tender documents shall be issued to Register contractor of appropriate class only. The Tender Form which is issued for sale should be issued under signature of Divisional Officer only or Sub-Divisional Officers as the case may be. Receipt of application forms should be stopped at 1600 hrs of four days before the date fixed for opening of tenders. Issue of tender forms will be stopped three days before the date fixed for opening of tenders. Tender document shall not be transferable. Hence, Divisional Officer should clearly mention the name of firm to whom the document is issued while authorizing the issue of document. The tender document dispatched by post should be sent through courier or Registered A.D.post. (g) Accounting of Tender Document The following procedure shall be followed for the accounting of tender document. (i) In Division the draft NIT shall be prepared by Planning Branch and obtain approval of Executive Engineer. Thereafter the required number of tender document shall be prepared by Planning Branch and handed over to Account Branch.

14 14 (ii) (iii) (iv) (v) (vi) (vii) The tender document should be priced and the price should be given on document. All documents shall be kept in the custody of cashier in the Divisional Office and Sub-Divisional Clerk in the case of Sub-Division. All the tender document received from Planning Branch by the cashier/sdc shall be entered in a Register. The Register should contain the chronological record of issue of tender documents showing the name of persons to whom issued, the number of forms issued and amount received. Cash receipt should be accounted as per provisions of account code. Surplus tender document must be destroyed after one month of acceptance of tender. 21. Double Bid System Introduction The double Bid System is a process of post qualification in which the prequalification documents are submitted alongwith the Financial Bid. As per the instruction of MORTH, the double Bid System should be adopted when cost of the works is more than Rs. 5 Crore (Rs crore for North Eastern States). In CPWD, the Double Bid System should be adopted when the cost of works is more than 10 crore. In double Bid System, the tenders are invited in two envelope system. One envelope shall contain Earnest Money along with Technical Bid and document in support of eligibility. The second envelope shall contain Financial Bid. There shall also be pre-bid conference for intending contractor in which any doubt of the contractor shall be clarified besides, discussion on any additional condition proposed by the tenders. If found necessary addendum or corrigendum to the tender documents would be issued. While opening the tender in double bid system the envelope containing Earnest Money and Technical Bids shall be opened first. The Technical Bid having valid Earnest Money shall be evaluated and qualified by the competent authority for the work in question. The Financial Bid of qualified contractor shall be opened on a notified date. There shall be a gap between opening of Technical Bid and Financial Bid as decided by NIT approving authority.

15 MoRTH Standard Bidding Documents The contract documents based on MORTH Standard Bidding document consist of mainly two sections. The first section is Instruction to Bidders (ITB) and second section is Condition of Contracts. The ITB contains the pre qualification information to be furnished by the contractor. The Condition of Contract contains the contact data, which are to be filled up at the time of preparation of tender documents. The tender as per MORTH Standard Bidding document in double bid system is to be submitted in two parts in two separate envelopes i.e. Part-I (Technical Bids) and Part-II (Financial Bid). (a) Part-1 Technical Bid shall Comprise of:- i) Bid Security. ii) Qualification Information and supporting documents a specified in relevant clause. iii) Certificate of undertaking/affidavits etc. in specified form. iv) Any other information on qualification data. v) Undertaking that the bid shall remain valid for the period specified. vi) Acceptance of Dispute Review Expert proposed. (b) Part-II-Financial Bid shall comprise of:- i) Forms of bid as specified. ii) Price Bill of quantities for items specified in BOQ. Each part shall be marked and sealed separately as instructed. (c) Important Points in ITB The important points to be attended at the time of the preparation of bid documents using MoRTH SBD are as below:- (i) Clause4.2 The documents against this clause are to be submitted only if the pre-qualification of contractor has already been carried out. (ii) Clause 4.3. In double bid system the following information shall be submitted in Technical Bid.

16 16 a) Copies of original document defining the constitution or legal status, place of registration and principal place of Business, Power of Attorney of the signatory of the Bidder committing the Bid. b) Total Monetary Value of construction works performed in each of the last five years. c) Experience in works of a similar nature and size for each of the last five years. d) Details of works underway or contractually committed. e) Bids submitted for which client may contact for further decision. f) Major items of construction equipment proposed to be displayed to carry out the contract. g) Qualification and experience of key site management and technical personnel proposed for the contract. h) Report on the financial standing of the Bidder, such as profit or loss statement and auditors report in the part five years. i) Evidence of access to line(s) of credit and availability other financial resource facilities (10% of contract value certified by the Bankers (Not more than 3 months old). i) Undertaking that the bidder will be able to invest minimum cash upto 25% of the contract value of work during implementation of work. k) Authority to seek references from the Bidders bankers. l) Information regarding litigations during last five years in which bidder is involved the parties concerned, and disputed amount. m) Proposal for sub-contracting components of works amounting to more than 10 % of the Bid price (Qualification and experience of the identified subcontractor in the relevant field should be annexed). n) Proposed methodology and programme of construction backed with equipment planning and deployment dually supported with broad calculations should be submitted. (iii) Clause 4.5 To qualify for the award each bidder should have the following record/experience in last five years.

17 17 a) Minimum financial turns over usually not less than two and half times the annual payment under the contract. b) Should satisfactorily complete 90% of the contract value of one similar works costing not less than 50% of the estimated cost put to tender as prime contractor or as nominated contractor involving all items in the schedule. c) Executed in any one year in last five years the quantities indicated in appendix involving same type of items. [To be filled up at the time of preparation of document] [The quantity shall be usually 80% of the peak rate of construction] d) Availability of key equipment either owned or leased. [The tentative list of equipment required shall be projected by the department. Bidder can also make their own studies and submit with their planning and methodology. e) Availability of personnel [Tentative requirement shall be projected by the department] f) Liquid assets and or availability of credit facilities not less than estimated cash flow for 3 months in peak construction period. g) The bid capacity of the bidder shall be more than the total bid value. The bid capacity of the bidder shall be calculated as below:- Assessed bid Capacity= A N 2 B A= maximum value Civil engineering works executed in any one year during last five years.[ Price level updated] taking into account the completed as well as works in progress. N= Number of years prescribed for completion of the project for which bids are invited. B= Value [Update to price level]of the existing commitments and ongoing works to be completed during next period] period of completion for which the bids are invited. Inspite of being qualified as per the criteria, the bidder can be disqualified for the reasons:- For misleading or false representation of data. Record of poor performance such as abandoning works, not properly completing the contract in time, inordinate delays in completion, litigation history or financial failures. Participated in the previous bidding for the same work and had quote unreasonably high bid prices and could not furnish rational justification to the employer.

18 18 (iv) Clause 5 One Bid per bidder and the bidder participating in more than one bid shall lead to disqualification (v) Clause 16 - Bid Security The bid Security/Earnest money shall be deposited in following forms:- a) Receipt in Challan of Cash Deposit in Govt. Treasury. b) Deposit at call Receipt any scheduled bank of India by RBI. c) Indian Post Office/ National Saving Certificate. d) Bank Guarantee in the format given. In the case of call of tender using SBD the bid security of unsuccessful bidder will be returned within 28 days of the end of the bid validity period. The Bid Security of successful bidder shall be discharged when the bidder has signed the agreement and furnished the required performance guarantee. (vi) `Clause 22 Modification or withdrawal of bids shall be permitted before the date of opening of the tender. (vii) Clause 29.5 If the Bid of the successful bidder is seriously unbalanced in relation to Engineers estimate of the cost of work, the employer may ask the bidder to produce justification with detailed analysis. He may increase the performance guarantee as security of the work, if reliable justification is not provided. (viii) Clause 34 Performance 5% of the contract price is to be deposited within the 21 days of receipt of acceptance in the a) Form of Bank Guarantee. b) Certified Cheque or Bank draft. (ix) Clause 36. The name of the Dispute Review Expert should be proposed by the department. --xxx--

19 19 Important point of General Condition of Contract of SBD The important clauses in the General Condition of contract in the SBD are condensed in the Contract data which are to be filled in while preparing the Tender Documents. The MORTH Bidding Document also contain the condition relating to the advance payment, Price adjustment on account of increase or decrease in the cost of materials etc. as that of the CPWD Form 8. Therefore, the important provisions are not repeated as the same has been covered in the CPWD form of contract. In order to acquaint the officers with the provisions the contract data is filled in using the exercise given above. Receipt of Tenders 1) All the tender in the power of Executive Engineer or higher officers shall be received in the Divisional Office. 2) The tenders shall be asked to put earnest money in acceptable form and the tender in sealed covers marked as earnest money and tender respectively. Both envelope should than be put in another seal cover for submission. In cases where earnest money in cash, the same shall be deposited to cashier and receipt should be placed. 3) In case of double bid system the technical bid and the financial bid in two separate envelopes shall be adopted. Opening of Tenders 1) The tender shall be opened in presence of intending contractor or their representative. 2) The tender shall be entered in the Register Form PWD 41. 3) The envelope marked as earnest money should be opened first. If the earnest money is found in order then only the envelope marked as tender should be opened. If the earnest money is not in order tender should be returned to the tendered on the spot if he is present otherwise later by Registered Post. Only an entry shall be made in the tender opening Register to this effect. 4) In case of two Bid system envelopes marked as Technical Bid shall be opened first. After evaluation of Technical Bid the financial offer shall be opened for qualified bidder only. 5) The officer opening tender should mark all corrections and over writing and number them and attest them in red ink.

20 20 6) The number of corrections cuttings, conditions, additions and over writing should be clearly mentioned in each page of schedule attached and properly attested with date. 7) Ambiguities rates quoted by tendered in words and figure must be clearly indicated on each page of schedule attached to the tender. 8) In case where contractor has quoted in Rupees, and no paise, the words only be added. 9) Where contractor has committed rate in figure or in words, the officer opening the tender should record omission on each page. 10) The officer should see that the contractor quote entire rate in words including paise to avoid chances of tempering in rates. If the contractor fails to do so, the Executive Engineer should himself write rates in words at the time of opening the tender. 11) DAO should present at the time of opening of tenders. 12) After opening comparative statement should be prepared by Executive Engineer and send the same to officer of Superintending Engineer / Executive Engineer (accepting authority) with justifications. Detailed scrutiny shall be done by accepting authority.