1 2Tender documents process for Tender finalization Earnest

1. 2_Tender documents, process for Tender finalization, Earnest money, Security deposit, Performance guarantee. Tender committee, General Condition of Contract (works contract & service contract) & Special Condition of Contract, SOR for P. Way works, Quality control measures at site, PERIODS 4 1

Importance • Understanding Contracts and Tenders has become inevitable to be Dealt by almost any hierarchy of an Administration.

Powers for Calling of Tenders- Model SOP le Tender SLT LT Open tender Type and Value Authority Upto Rs. 4 Crore Above Rs. 4 Crore and upto Rs. 20 crore Above Rs. 20 Crore and upto Rs. 50 crore Above Rs. 20 Crore and upto Rs. 75 crore Above Rs. 20 Crore and upto Rs. 300 crore Above Rs. 20 Crore and upto Rs. 500 crore Full Powers Selection Grade/JA Grade SAG/ADRM DRM/CWM CHOD in SA Grade AGM/PHOD in HAG CAO/RE in HAG CAO/Construction in HAG General Manager Upto Rs. 37. 5 lakh Above Rs. 37. 5 lakh and upto Rs. 1. 5 crore Above Rs. 1. 5 Crore and upto Rs. 7. 5 crore Works of Specialised Nature- Upto Rs 10 L Up to Powers of acceptance Works of urgent Nature- Upto Rs 10 L Up to Powers of acceptance Selection Grade/JA Grade DRM/ADRM/HOD PHOD/CHOD DRM/ADRM/SAG PHOD/CAO/C DRM/ADRM/HOD CAO/C (i) In case of accidents, breaches involving dislocation to traffic Up to Rs. 20 lakhs per case subject to annual limit of Rs. 1 PHOD Cr Up to Rs. 10 Lakhs per case subject to annual limit of Rs. DRM/ADRM/SAG 50 L (ii) Works of specialized nature -Full Powers CAO/Con 3

Calling of tenders - Powers » ( Model SOP) For Open Tender of approved and sanctioned works : By officer not lower than JAG ü Powers by JAG is restricted to the value of tenders to be accepted at SAG level. ü Pre-vetting of tender schedules is not necessary except in the rare urgent cases where tenders to be called without sanction of detail estimate. ü Pre-Vetting is also not necessary in case of Zonal works and revenue works in Open Line upto Rs. 5 Lakh for which detail estimates need not be framed.

Calling of tenders - Powers Model SOP 2018 – item No. 5 (A) (i) 5

Calling of Tenders - NIT TEN S R DE

Tender Notice • 1238: Tender Notice- Sufficient notice should be given for the submission of tenders, which in the case of large works should not be less than 21 days. • The above prescribed tender notice period may be reduced from 21 days in exceptional circumstances in consultation with the Principal Finance Adviser. • However: • (i) For tenders valued upto and including Rs 2 crore invited through etendering, the tender notice period can be reduced upto 14 days in consultation with Associate Finance. • • 2. For works remote locations or of specialize nature or amount higher than Rs. 50 crore, adequate tender notice period (not less than 21 days) should be given for preparation to the potential bidders in order to ensure competitive and well informed bidding. • GCC – 16 July 2020 • ( RB. 2018/Trans. Cell/S&T/NIT Period Dtd. 26. 07. 2018 ) 7

Tender Notice • GCC 1. 2 (n) Date of inviting tender shall be the date of publishing tender notice on IREPS website if tender is published on website or the date of publication in newspaper in case tender is not published on website. 8

Tender Notice • In case of manual tendering, the tender notice should state : - • (i) The place and time where contract documents can be seen. • (ii) The place and time where blank tenders forms can be obtained. • (iii) The amount, if any, to be paid for such documents. • (iv) The place, where, the date on which and the time when tenders are to be submitted and are to be opened. • However in case of in e-tenders invited on IREPS, the date & time both for submission of tender & opening of tender should be indicated in tender notice.

Earnest Money Deposit (EMD)/ & Tender Document Cost v Earnest Money Deposit (EMD)» Amount to safe guard against withdrawing or altering offer by tenderer [Bid Security ]- Calculated as per GCC » To be submitted by the tenderers along with their offer » Forfeited if the tenderer: § withdraws or amends its/ his tender; § If the successful tenderer fails to sign the contract or furnish the required performance » Waiver § Any firm recognized by Department of Industrial Policy and Promotion (DIPP) as ‘Startups’ shall be exempted from payment of earnest money deposit detailed above. § 100% Govt. owned PSUs shall be exempt from payment of earnest money deposit detailed above. § Labour Cooperative Societies shall deposit only 50% of above earnest money deposit detailed above. § Service/ Goods Tender for STARTUP Firm and MSE Firm v Tender document cost- 10

NOTICE INVITING TENDER (NIT) - NOTICE (Bd’s Lr. No. 2015/CE-I /CT/5/1 dt 31. 08. 16) • For the purpose of Corrigendum NIT is splitted as: – Advertisement period: Time during which all information pertaining to tender shall be available, but offer cannot be submitted. – Offer submission period: 15 days prior to opening date. During which tenderer can submit offer. No corrigendum is permitted during offer submission period and cases requiring corrigendum during this period shall be retendered.

NOTICE INVITING TENDER (NIT) - NOTICE • to be published in newspapers and on website (Now ireps) • Description of work • Approx. cost work • Time of Completion • Earnest Money details • Cost of tender documents

NOTICE INVITING TENDER (NIT) - NOTICE • Place, date and time of submission/opening of tender • Place and time of availability of tender documents • Basic eligibility criteria • Authority inviting tender • NOW USE ireps IT WILL TAKE CARE OF ALL

Documents forming integral part of contracts (Tender Document) • The conditions of contract, standard or special • The specifications, standard or special • Any plans/drawings necessary • The schedule of items, quantities and rates • The agreement form • Instructions to tenderers • Tender forms

Specification and Drawings • The execution of works and supply of materials on contract should be according to standard specifications and drawings, whenever possible rather than to sample. • If no standard specifications exist for any item or work or supply, a complete specification of the item and of the materials to be used should be prepared and embodied to the contract documents. • For special works, complete sets of drawings showing the general dimensions of the proposed work, and if need be, details of the various parts should be prepared and made available for reference by intending tenderers.

Standard Tender Document S. No 1 Tender at a glance 2 3 Description Section I- Tender information- ( Tender Notice and Forwarding letter from the tenderer while submitting the tender) Section II ---- Instructions to the tenderer 4 Section III --- Important Clauses of General Conditions of Contract. 5 Section IV--Special Conditions of Contract (General ) 6 Section V-- Safety Precautions during execution of work. 7 Acceptance of tender 8 Agreement for works 9 Section VI-- Scope of Work & Specification for ………… 10 Section VII-- Tender schedule & Offer sheet

Conditions of Contract • The conditions of contract may be either standard or special. • The standard conditions of contract are prescribed by the Railway Board (GCC). • In addition special conditions may be prescribed when considered necessary.

General Condition Of Contract ( GCC) § Framed by Railway Board, but published by each Zonal Railway separately. § They are applicable for all the Works Contracts. GCC of Service Contracts is also available. § If any of the GCC Clause is to be varied , the same shall be done with concurrence of Finance and approval of GM, before calling tender; unless some other variation is allowed by Railway Board. § In case of any conflict between provisions of GCC and SCC, the provisions of SCC prevail.

Advertisement E-1213 v By public advertisement in newspapers and on website (Now IREPS/CPPP) E-1238 ( Modified by Letter No. 2018/ Trans. Cell/S&T/NIT period dated 26 -07 -2018) v Minimum period of advertisement (No. of days between Publishing NIT on Internet & last Date of Submission of Bid) • In the case of large works should not be less than twenty one days except in the exceptional circumstances in consultation with the Principal Financial Advisor. However for works in remote location or of specialised nature or valued more than Rs. 50 crore, Not less than 21 days in case of tender – For tenders valued upto and including Rs 2 crore invited through e -tendering, the tender notice period can be reduced upto 14 days in consultation with associate finance • For Limited tender or Special Limited tenders, the notice period mentioned above should not be less than 14 days 19

Pre- Bid Meeting/ Clarifications 20

Pre- Bid Meeting/ Clarifications • Pre- Bid Meeting – To explain the intricacies of project/ work to prospective bidders – Should be held well in advance of date of opening – Useful in case of high value contracts/ technically complex work – Attended by executives and finance officers – Clarifications given during the Pre-Bid Meeting be made part of Tender Documents • Clarification – Clarification to Discrepancies/ Omissions notified by any Tenderer shall be available to all prospective Bidders 21

Corrigendum Notice (Amendment ) • Modification to published NIT and Tender Document is permitted through Approved Corrigendum Notice • To be approved by NIT approving authority • Sufficient time for Tenderer after corrigendum Notice Board Letter No. 2015/CE-I /CT/5/1 dt 31. 08. 16 v Can be issued in IREPS during Advertisement period only but not during Offer submission period (Normally 15 days prior to opening date, during which tenderer can submit offer) Cases requiring corrigendum during Offer submission period shall be retendered 22

Opening of Tenders

Tender Opening - Provisions • E-1248 • Tender should be opened at specified time, date and place. • By the Executive officer nominated for this purpose. • Jointly by Accounts & Executive officer, above threshold value • In presence of intending tenderers. IREPS- No Such Issues v E-1249: Precautions while opening the tenders • Initial (with date) the cover, front cover page of the tender and every page of the tender on which the rates or special tender conditions are quoted. • Initial (with date) all corrections in the schedule of 24 quantities, schedule of materials to be issued and

Tender Opening -Provisions v E-1249: Precautions while opening the tenders IREPS- No Such Issues • The corrections, overwriting and omissions should be serially numbered and the total number of such corrections etc. should be clearly mentioned at the end of each page and attested with date. • Clearly indicate any ambiguities in rates quoted by the tenderer in words or figures. • Should specifically record whether samples have been supplied or not along with the tender. • E-1250: • The names and the rates of each tenderer should be read out, to the tenderers or the representative who may be present at the time of opening of the tenders. • No opportunity to repudiate, amend or explain the rate and or any condition quoted in the tender. IREPS- No Such Issues 25

Tender Opening –Precaution • Manual • • All the tenders (for one work) to be numbered Number to be put on any loose sheets All important pages to be initialed with date Number of conditions quoted is counted and written on tender form. Rates to be recorded in Tender Opening Register and signature of tenderers’ representative to be obtained. Samples of material to be initialed and kept in safe custody. Tender papers to be kept in safe custody. Availability of EMD to be recorded. EMD to be kept in safe custody IREPS- No Such Issues • • • IREPS • Only Authorised Digital Signature Certificate & Digital Encryption Certificate required. 26 • All Bidder can see opening online

Comparative Statement & Briefing Note 27

Comparative Statement E-1252 § A statement of rates & other important tender conditions mentioned in all received tenders § Prepared by the Executive Branch and verified by Accounts § Put up to the Tender Committee directly 28

Briefing Note E-1253 v Note indicating following details duly authenticated : » Name of work » Authority for calling tender (Estimate) » Tender notice number, Tender opening date & time » Tenders sold; offers received » Officials opening Tender & their Observation, if any » Earnest money details » Validity of tenders » Eligibility stipulated and Credentials submitted by tenderers » Special conditions by tenderers, if any » Comparative Statement » Samples submitted, if any » Recent Last Accepted Rates » Tender committee nomination and Accepting authority v Each page of briefing note to be signed v Sent to associate finance for scrutiny along with original tenders v Reply to Finance observations by executive should be put up to TC v In IREPS, briefing note is prepared by system No Role of finance in Briefing Note & Comparative Statement removed in IREPS Tenders Letter no. 2017/Trans/01/Policy dt 08. 02. 2018 29

Constitution Of Tender Committee E-1255 • Accepting Authority nominates Tender Committee as per delegation of power • Normally Standing Tender Committees are there in different level as per SOP • If General Manager is Accepting Authority- Head of the Department to constitute the Tender Committee • Generally consist of three members – One from the concerned Executive department – One should be from the Accounts department – Third from other department dealing with such contract matters • Level of TC decided based on value of Lowest bidder, TC member can be of higher grade in case of non- availability (2 Bid tender) • If officer competent to be the accepting authority is a TC member, Accepting authority will be next higher grade 30

Tender Committee Letter No. 2015/CE-I/CT/O/20/1 dt 14/09/17 & 08. 01. 20 v. Two member tender committee - with one member should essentially be from Finance dept. and other from concerned Executive dept. ØFor open tender invited through e-tendering, Tenders above Rs. 50 Lakh and up to Rs 5 cr ØFor Other tenders up to Rs. 20 Lakh v. Three member tender committee ØAll Other Cases 31

Powers for Acceptance of Tenders RB letter no. 2015/CE-I/CT/O/20/1 dated 01. 2020 SL Power of Acceptance of Works Tenders (For each Tender) 1 2 3 4 5 6 7 8 9 Accepting Authority Upto Rs. 50 lakhs SG/JAG/SS holding independent charge Upto Rs. 4 Crore Selection Grade/JA Grade Above Rs. 4 Crore and upto Rs. 20 crore SAG/ADRM Above Rs. 20 Crore and upto Rs. 50 crore DRM/CWM Above Rs. 20 Crore and upto Rs. 75 crore CHOD in SA Grade Above Rs. 20 Crore and upto Rs. 300 crore AGM/PHOD in HAG Above Rs. 20 Crore and upto Rs. 300 crore CAO/RE in HAG Above Rs. 20 Crore and upto Rs. 500 crore CAO/Construction in HAG Full Powers General Manager Note: (i) Where no AGM is posted, such tenders shall also be accepted by GM. (ii) The Tender Committee for Tenders to be accepted by “CHOD in SA Grade” shall be of SA Grade level. (iii) The Tender Committee composition and the accepting authority should be at least one step higher than the members nominated in case of Open Tenders/Limited Tenders 32 except where G. M. is the accepting authority.

Standing Tender Committee 33

Consideration Of Tender By TC/AA • Necessary Sanctions/Approvals, Requirement of Work, Fund Availability • Tendering procedure • Validity of tender, EMD, Sample, Only tender, Delayed / Late tender • Eligibility Criteria • Credentials • Bid capacity • Other Conditions, if any • Reasonableness of Rates – – – Nature and quantum of work, Competition, Period of completion, Market conditions, Law & order situation 34

TC Meeting- Procedure & precaution • Do not suppress unfavourable information • Reasonableness of rates to be assessed for each schedule/item. Factors cited for higher rates must be explained adequately • If high rates are justified on the basis of urgency, the relevant facts should be available on record. • TC should recommend (if needed): – Restriction on use of ALRs/AHRs as LAR for future tenders. – Restriction on variation in Quantities for ALR/AHR items • All pages/corrections to be signed by TC members • Dissenting notes in the body of Minutes • Involvement of supervisory/subordinate staff not permitted and not to be guided by any other authority • Clearly mention the TAA, preferably with reference of SOP clause. 35

Accepting Authority • Accepting authority has full authority to accept, modify or reject the recommendation of TC • AA to record reasons if TC recommendation not accepted • Normally case not to be sent back to TC for reconsideration • Part Acceptance Of Tender • Legally and procedurally permissible, as provided in Tender documents and GCC • However, basic nature of tender should not change, i. e. only minor changes can be made at this stage. • To be finalised within Validity Period Offer 36

Direct Acceptance Without Tender Committee Letter No. 2015/CE-I/CT/O/20/1 dt 14/09/17 v. Direct Acceptance by AA without TC ØOpen tender Upton Rs. 50 L invited through e-tendering: » By SG/JAG or SS holding independent charge » Record a reasoned note in the form of speaking order with regard to evaluation and acceptance, duly observing that • No splitting has been done • Sanctioned detailed estimate is available • Tender schedule within sanctioned detailed estimate ØItems, Rates & Quantities of LOA to be vetted before issue v. Direct Acceptance Not Allowed, if ØTender notice period is less than 21 days, or ØOffer other than lowest financial offer to be accepted 37

Delayed Tenders & Late Tenders Para E- 1251 • Delayed Tenders IREPS- No – Tenders received before the time of opening but after the due date and time of receipt of the tenders – opened and dealt with in the same manner as the tenders received before the due date and time. • Late Tenders – Tenders received after the specified time of opening. – opened by the concerned Branch Officer and marked distinctly preferably in the red ink, prominently on the envelope as well as on the tender papers. – not to be considered, except in rarest of situation with the approval of Railway Board Such Issues • A suitable remark in regard to both the delayed and late tenders should be made 38

Recommendation of TC – Acceptance • Unconditional • Conditional or Counter Offer – Negotiation – Discharge 39

Tender Finalisation- Counter Offer RB Letter No. 94/CE-1/CT/4 dated 17. 10. 2002 • When overall value of L-1 is not unreasonably high but the rate(s) for certain item(s) in a schedule or total value for a schedule happen to be higher than those quoted by other tenderers in the same tender or higher than LARs • Any rate(s) considered reasonable by TC may be adopted as Counter Offer rate • Issue : – If tenderer does not accept counter offer 40

Negotiations RB Letter No. 94/CE-1/CT/4 dated 22. 10. 2001 RB Letter No. 99/RS(G)/779/2 dated 15. 10. 2007 RB Letter No. 2008/CE-I/CT/1 dated 12. 09. 2008 41

Negotiations • Negotiation, whenever held, with L 1 only. – Who is L 1? – Is valid, eligible, technically acceptable tenderer having lowest value • Tenderer should be given sufficient time to analyse and submit negotiated offer after negotiations • Negotiated offer to be signed by authorised person • Negotiations should be scarcely resorted to. • Not to be resorted unless substantial financial gain is expected. 42

Negotiations ü Declaration by Tenderer before negotiations: I ______ do declare that in the event of failure of contemplated negotiations relating to Tender No. _______ opened on ____ my original tender shall remain open for acceptance on its original terms and conditions. I also declare that I am aware that during this negotiation, I cannot increase originally quoted rates against any of the individual items and in event of my doing so, the same would not be considered at all i. e. reduction in rates during negotiation alone would be considered and for some items if I increase the rates, the same would not be considered and in lieu my originally quoted rates alone would be considered and my offer would be evaluated accordingly. 43

Consideration of Tender • If L-1 Withdraw ? CVC Circular No. 98/ORD/1 dt. 24. 8. 2001 • If L 1 withdraws before work order is placed or supply/execution takes place, there should be re-tendering. • Exception vide RB letter no. 2017/Trans/01/Policy dated 17. 11. 2017 for Stores & Non-Consultancy services • Multiple L-1 ? Letter No. 2017/Trans/01/Policy dt 08. 02. 2018 • Tender may be awarded as per higher BID Capacity • If Bid capacity is also same, tenderer having done more value of similar work in last 3 pervious financial year and current financial year • Only/Lone Tender • Single offer in response to open tender can be considered by TC • Single offer in response to LT should be considered with great caution 44

Discharge Of Tenders • Reasons for Discharge: Exceptionally high rates Ring/ cartel formation Insufficient response Unacceptable Special conditions by tenderer If major modifications proposed in tender documents, quantities etc. – Work may not be required – – – 45

Discharge of Tenders Letter no. 2017/Trans/01/Policy dt 08. 02. 2018 • Before Discharging tender due to higher rates etc, TC and TAA may examine – – Possibility of Getting lower rates as a result of retendering Loss of transparency in re-invited tender Opportunity cost for delay in execution of work Cost of retendering • TC and TAA to keep in view, the Model cost estimate for the process of tendering, which is to be work out by Zonal railways • Discharging Open tenders for Petty Reasons has Severe Cost & Transparency Consequences 46

Why GCC : • Rules of The Contract – Before the game start • Written Procedures for Uniform Implementation • To avoid mistakes • Each Para is numbered for easy reference • Both for Railways and Contractors • If any of the GCC Clause is to be varied , the same shall be done with concurrence of Finance (PFA) and approval of GM, before calling tender; unless some other variation is allowed by Railway Board. 47

GCC • GCC : It is a simplified, outcome focussed GCC catering specifically to services to improve contract management, delivery of services and to reduce government litigation. • Objective : To define the terms and condition for contractors engaged in service contracts for non-operational area such as House keeping, facilities management, consultancy etc as distinct from Works. 48

GCC • Main Features: The concept of Digital labour management system, stepped performance Guarantee in place of security Deposit, access to liquidity as a qualifying criteria and specific violations of which will lead to disqualification of bidders. • The digital management labour system mandates contractor to maintain a data base of all workers including their attendance data and salary details. 49

GCC • It also states that a contractor bidding for a service will be disqualified if penalty has been levied three times in last two years for violation of labour laws • Service contracts are characterized by regular requirement of funds; therefore access to liquidity has been included as a qualifying criterion. • Apart from labour laws, non performance in previous contracts will also lead to bidders being disqualified in future. This is expected to put a premium on good performance. 50

GCC • • • Advantages : The new contract system will. . Ease the registration process for bidders. Promote competitiveness, Help Railways to save more on cost. Will bring transparency and accountability in the system to make it more efficient and beneficial for the people. 51

52

GCC-Contents • PART-I • REGULATIONS FOR TENDERS AND CONTRACTS (FOR THE GUIDANCE OF ENGINEERS & CONTRACTORS FOR WORKS CONTRACTS) • PART II • STANDARD GENERAL CONDITIONS OF CONTRACT (FOR USE IN CONNECTION WITH WORKS CONTRACTS) 53

GCC-Contents Part-I: Regulation for Tenders and Contract Para 1. 2. 3. 4. 5. 6. 7. 7 A. 8. 9. Subject Meaning Of Terms: 1. 01 -Order of Precedence of Document. Credentials Of Contractors Application For Registration Tenders For Works Tender Forms Omission And Discrepancies Earnest Money Care In Submission Of Tenders Consideration Of Tenders Right Of Railway To Deal With Tenders Two Packets System of Tendering Contract Documents Execution Of Contract Documents Form Of Contract Documents Annexures for Tender Form, Agreement For Zone Contract, Work Order Under Zone Contract, Form For Contract Agreement Of Works, Format for Affidavit, Bid capacity. 54

Para Subject Annexures : Annexure-I Tender Form First Sheet Second Sheet 10. 1 10. 2. 11. Eligibility Criteria: Technical Eligibility Criteria: Financial Eligibility Criteria: Tenderer Credentials Third Sheet Annexure-II Agreement for Zone Contract Annexure-III Work Order Under Zone Contract Annexure-IV Form for Contract Agreement Of Works Annexure-V Format for Certificate Affidavit to be submitted / Uploaded by Tenderer alongwith the tender documents 55 Annexure-VI Tenderer’s Credentials (Bid Capacity)

PART-I REGULATIONS FOR TENDERS AND CONTRACTS 56

ORDER of PRECEDENCE of Documents : In a tender/contract Where there is any discrepancy, conflict or contradiction, with regard to conditions of tender/contract, the following shall be the order of precedence: i. Letter of Award ii. Schedule of Items, Rates & Quantities iii. Special Conditions of Contract. In case of any conflict between provisions of GCC and SCC, the provisions of SCC prevail iv. Technical Specifications as given in tender documents v. Drawings 57

• vi. Indian Railways Standard General Conditions of Contract updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents. • vii. CPWD Specifications 2019 Vol I & II updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents, if applicable in the contract. • viii. Indian Railways Unified Standard Specification (IRUSS-2019) updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents, if applicable in the contract. This is to be clearly stated in the tender document 58

• ix. Indian Railways Unified Standard Specifications (Works and Material) 2010 • updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents, if applicable in the contract. • x. IR Specifications/Guidelines • updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents. • xi. Relevant B. I. S. Codes • updated with correction slips issued up to date of inviting tender or as otherwise specified in the tender documents. 59

TENDER 1. 2 Definition: (GCC) • (f) “Tenderer” shall mean the person / firm / cooperative or company whether incorporated or not who tenders for the works with a view to execute the works on contract with the Railway and shall include their representatives, successors and permitted assigns. • (m) “Contractor’s authorized Engineer” shall mean a graduate engineer or equivalent, having more than 3 years experience in the relevant field of construction work involved in the contract, duly approved by the Engineer. 60

1. 2 Definition: • “Railway” : President of the Republic of India or the Administrative Officers of the Railway or Successor Railway authorized to deal with any matters. • “ENGINEER” : Divisional Engineer or the Executive Engineer, DSTE, DEE in executive charge of the works. Includes the superior officers of Open Line and Construction organisations i. e. the Senior Divisional Engineer/Deputy Chief Engineer. 61

1. 2 Definition: GCC July 2020 • (n) Date of inviting tender shall be the date of publishing tender notice on IREPS website if tender is published on website or the date of publication in newspaper in case tender is not published on website. 62

TENDERS FOR WORKS GCC July 2020 • 3. Tender Form: Tender Forms shall embody the contents of the contract documents either directly or by reference and shall be as per specimen form, Annexure-I. • e-Tender Forms shall be issued free of cost to all tenderers. GCC July 2020 63

4. Omissions & Discrepancies • Discrepancies/ omissions should be notified by Tenderer to the authority inviting tenders, The tender inviting authority may, if deemed necessary, clarify the same to all tenderers. • It shall be understood that every endeavour has been made to avoid any error and successful tenderer shall take upon himself and provide for the risk of any error which may subsequently be discovered and shall make no subsequent claim on account thereof. 64

5. EARNEST MONEY 2% of the estimated tender value for works costing up to Rs one crore. Rs 2 lakh plus ½ % (half percent) of amount excess of Rs 1 crore for works costing more than Rs one crore subject to a maximum of Rs. 1 crore. • Shall be applicable for all modes of tendering i. e. Open/ Limited/ Single, etc. (i) To be rounded off to nearest Rs. 100/(ii) Any firm recognized by Department of Industrial Policy and Promotion (DIPP) as ‘Startups’ shall be exempted from payment of earnest money deposit detailed above. (iii) 100% Govt. owned PSUs shall be exempt from payment of earnest money deposit detailed above. (GCC July 2020) (iv) Labour Cooperative Societies shall deposit only 50% of above earnest money deposit detailed above. (GCC July 2020) 65

5. EARNEST MONEY Refund of EMD to Unsuccessful Tenderers Ref: RB no. 2007/CE-I/CT/18(Pt. I) dt 10. 09. 2008 • In case of single packet: On issue of LOA refund EMD of all tenderers except awarded one. • If Negotiation: On acceptance of TC for Negotiation, refund all except negotiation party. • In Two Packet System : After TC acceptance of first packet refund EMD of those not found suitable. • EMD of successful tenderer to be converted into SD. 66

7. Rights of the Railway to deal with Tender: GCC July 2020 • 7. The Railway reserves the right of • not to invite tenders for any of Railway work or works or to invite open or limited tenders and • when tenders are called to accept a tender in whole or in part or reject any tender or all tenders without assigning reasons for any such action. • 7 B. Provisions of Make in India Policy 2017 issued by Govt. of India, as amended from time to time, shall be followed for consideration of tenders. 67

8. Execution of Contract Document • The Tenderer whose tender is accepted shall appear in person and execute the contract documents within 7 days of notice that the contract agreement is ready. • The Contract Agreement shall be executed only after submission of valid Performance Guarantee. • If the successful tenderer refuses to execute the contract document the Railway may conclude that tenderer has abandoned the contract and acceptance shall be treated as cancelled. • Railway shall be entitled to forfeit the full amount of the EMD and other dues payable to the contractor. • The failed Contractor shall be debarred from participating in the re-tender for that work. 68

• PART-II STANDARD GENERAL CONDITIONS OF CONTRACT (FOR USE IN CONNECTION WITH WORKS CONTRACTS) 69

Part-II: Standard General Conditions of Contract Para 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13 14. 15. 16. 17. Subject Definitions And Interpretation General Obligations Execution, Co-Relation And Intent Of Contract Documents (1) Law Governing The Contract (2) Compliance To Regulations And Bye-Laws Communication To Be In Writing Service Of Notices On Contractors Occupation And Use Of Land Assignment Or Sub-Letting Of Contract Assistance By The Railway For The Stores To Be Obtained By The Contractor Railway Passes Carriage Of Materials Use Of Ballast Train Representation On Works Relics And Treasures Excavated Material Indemnity By Contractors (1) Security Deposit (2) Recovery Of Security Deposit (3) Interest On Amount (4) Performance Guarantee Force Majeure Clause 70

Part-II: 17 -A. 17 -B. 18. 19. 20. 21. 22. 23. 24. 25. Extension Of Time In Contracts (i) Extension Due To Modification (ii) Extension For Delay Not Due To Railway/Contractor (iii) Extension Of Time For Delay Due To Railway Extension Of Time For Delay Due To Contractor (1) & (2) Illegal Gratification Execution Of Works (1) Contractor's Understanding (2) Commencement Of Works (3) Accepted Programme Of Works (4) Setting Out Of Works (1) Compliance To Engineer's Instructions (2) Alterations To Be Authorised (3) Extra Works (4) Separate Contracts In Connection With Works Instructions Of Engineer's Representative (1) Adherence To Specification And Drawings (2) Drawings And Specifications Of The Works (3) Ownership of Drawings And Specifications (4) Compliance With Contractor's Request For Details (5) Meaning And Intent Of Specifications And Drawings Working During Night Damage To Railway Property Or Private Life And Property Sheds, Stores-Houses And Yards GCC-Contents 71

Part-II: 26. 26 A. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. Provision Of Efficient And Competent Staff At Work Sites By Contractor GCC-Contents Deployment Of Qualified Engineers At Work Sites By Contractor (1) Workmanship And Testing (2) Removal Of Improper Work And Materials Facilities For Inspection Examination Of Works Before Covering Up Temporary Works (1) Contractor To Supply Water For Works (2) Water Supply From Railway System (3) Water Supply By Railway Transport (4) (A) Contractor To Arrange Supply Of Electric Power For Works (B) Electric Supply From The Railway System Property In Materials And Plants (1) Tools, Plant And Materials Supplied By Railway (2) Hire Of Railway Plant (1) Precautions During Progress Of Works (2) Roads And Water Courses (3) Provision Of Access To Premises (4)safety of Public (4) Safety of Public (5) Display of Board Use Of Explosives (1) & (2) Suspension Of Works (3) Suspension Lasting More Than Three Months Rates For Items Of Works Demurrage And Wharfage Dues Rates For Extra Items Of Works (1) Handing Over Of Works (2) Clearance Of Site On Completion 72

GCC-Contents 41. 42. 43. 44. 45. 46. 46 A. Part-II: Variations In Extent Of Contract Modification To Contract To Be In Writing (1) & (2) Power Of Modifications To Contract (3) Valuation Of Variations (4) Variations In Quantities During Execution Of Works Contracts Claims (1) Quarterly Statement Of Claims (2) Signing Of ’No Claim Certificate’ Measurement, Certificates And Payments Quantities In Schedule Annexed To Contract Measurements Of Works (1) "On Account” Payments (2) Rounding Off Amounts (3) "On Account” Payments Not Prejudicial To Final Settlement (4) Manner Of Payment Price Variation Clause (PVC) 1. - Applicability 2. - Base Month 3. - Validity 4. to 6. - Components & Percentages 7. to 9. - Formulae etc. 10. - Price Variation During Extended Period Of Contract 73

GCC-Contents 47. Part-II: Maintenance Of Works (1) Certificate Of Completion Of Works 48. (2) Contractor Not Absolved By Completion Certificate (3) Final Supplementary Agreement 49. Approval Only By Maintenance Certificate (1) Maintenance Certificate 50. (2) Cessation Of Railway’s Liability (3) Unfulfilled Obligations 51. 51 -A. 52 -A. 53. (1) Final Payment (2) Post Payment Audit Production Of Vouchers Etc. By The Contractor Withholding And Lien In Respect Of Sums Claimed Lien In Respect Of Claims In Other Contracts Signature On Receipts For Amounts 74

Part-II: Labour 54. 54 -A. 55 -A. 55 -B. 55 -C. 56. 57 -A. 58. 59. 60. Wages To Labour Apprentices Act Provisions Of Payments Of Wages Act Provisions Of Contract Labour (Regulation And Abolition) Act, 1970 Provisions of Employees Provident Fund and Miscellaneous Provisions Act, 1952 Provisions of “The Building and Other Construction Workers (RECS) Act, 1996” and “The Building and Other Construction Workers’ Welfare Cess Act, 1996” : Reporting Of Accidents Provision Of Workmen's Compensation Act Provision Of Mines Act Railway Not To Provide Quarters For Contractors (1) Labour Camps (2) Compliance To Rules For Employment Of Labour (3) Preservation Of Peace (4) Sanitary Arrangements (5) Outbreak Of Infectious Diseases (6) Treatment Of Contractor's Staff In Railway Hospitals (7) Medical Facilities At Site (8) Use Of Intoxicants (9) Restriction On The Employment Of Retired Engineers Of Govt. Services Within Two Years Of Their Retirement (1) (2) (3) (4) Non-Employment Of Labourers Before The Age Of 15 Years Medical Certificate Of Fitness For Labour Period Of Validity Of Medical Fitness Certificate Medical Re-Examination Of Labourer 75

Part-II: 61. 62. 63. 64. GCC-Contents Determination Of Contract (1) Right of Railway To Determine Contract (2) Payment On Determination Of Contract (3) No Claim On Compensation (1) Determination Of Contract Owing To Default Of Contractor (2) Right Of Railway After Rescission Of Contract Owing To Default Of Contractor Settlement Of Disputes Reconciliation of disputes (1) Matters Finally Determined By The Railway (1) Demand For Arbitration (2) Obligations During Pendency Of Arbitration (3) Appointment Of Arbitrator (4), (5), (6) & (7) - Arbitral Award &General Annexures : Proforma For Time Extension, Certificate Of Fitness, Proforma Of 7 Days’ Notice, Proforma Of 48 Hrs. Notice, Proforma Of Termination Notice, Proforma Of 48 Hrs. Notice & Termination Notice (Part termination) 76

1. 1 Definitions & Interpretation (f) "Engineer's Representative" shall mean the Assistant Engineer, in direct charge of the works and shall include any Sr. Section/Junior Engineer (g) "Contractor" shall mean the Person/Firm/Co-operative Society or Company whether incorporated or not who enters into the contract with the Railway and shall include their executors, administrators, successors and permitted assigns. (h) ‘Contractor’s authorized Engineer’ shall mean a graduate Engineer or equivalent, having more than 3 years experience in the relevant field of construction work involved in the contract, duly approved by Engineer. 77

Clause 2 -Execution Co-relation and Intent of Contract Documents • The contract documents shall be signed in triplicate. The contract documents are complementary and what is called for by anyone shall be as binding as if called for by all. Materials or works described in words which so applied have a well-known technical or trade meaning. • If a work is transferred from the jurisdiction of one Railway to another Railway or to a Project authority or vice versa while contract is in subsistence, the contract shall be binding to both parties 78

Clause 3 -Law Governing The Contract • The contract shall be governed by the law for the time being in force in the Republic of India. • The Contractor shall conform to the provision of any statute relating to the works and regulations and bye-laws of any local authority and of any water and lighting companies or undertakings, with whose system the work is proposed to be connected. . The Contractor shall be bound to give all notices required by statute, regulations or bye-laws as aforesaid and to pay all fees and taxes payable to any authority in respect thereof 79

Clause 4 -Communication To be In Writing v. All notices, communications, reference and complaints by the Railway (the Engineer or the Engineer's Representative) or the Contractor shall be in writing or e-mailed on registered e-mail IDs 80

Clause 5 -Service Of Notices On Contractors v. The Contractor shall furnish to the Engineer- the name, designation and address of his authorized agent v. All communications and references shall be deemed to have been duly given to the Contractor, if delivered to the Contractor or his authorised agent or left at or posted to the address so given. vshall be deemed to have been so given in the case of posting on day on which they would have reached such address in the ordinary course of post or on the day on which they were so delivered or left v In the case of contract by partners, any change in the constitution of the firm shall be forthwith notified by the Contractor to the Engineer 81

Clause 6 -Occupation and Use of Land • No Railway land shall be occupied by the Contractor, without permission from Railway; • Subject to levy of Conservancy charges. 82

Clause 7 -Assignment or Subletting of contract • Not without permission of Railway (a) (i) Max value of work to be assigned shall not be more than 50% (ii) Eligibility Criteria for Sub-Contractor too -The subcontractor shall have successfully completed at least one work similar to work proposed for subcontract, costing not less than 35% value of work to be subletted, in last 5 years through a works contract directly given to him by a Govt. Department; or by a Public listed company (iii)There is no banning of business with the sub-contractor in force over IR. (b) No subcontract allowed without a formal agreement between Contractor and Subcontractor without approval of Chief Engineer (d) Contractor shall intimate date of commencement of subcontractor’s work not less than 7 days in advance (e) Discontinue such arrangement, only with prior intimation to Chief Engineer. (h) Subcontractor shall also issued with work experience certificate for subcontracted work (i) Subcontracting in no way relieve the Contractor to execute the work (k) The permitted subcontracting of work by the Contractor shall not establish any contractual relationship between the sub-contractor and the Railway 83

Clause 7 -Assignment or Subletting of contract (j) Contractor has to remove the subcontractor from the work, in case Engineer is of the view that subcontractor’s performance is not satisfactory. No claim of Contractor whatsoever on this account shall be entertained by the Railway and this shall be deemed as ‘excepted matter’). (k) The permitted subcontracting of work by the Contractor shall not establish any contractual relationship between the sub-contractor and the Railway and shall not relieve the Contractor of any responsibility under the Contract. • Petty subletting under direct and personal supervision of contractor or his agent shall not be deemed as subletting • Any breach shall entitle Railway to rescind under Cl. 62 84

Clause 9 -Railway Passes No free railway passes shall be issued by the Railway to the Contractor or any of his employee/worker Clause 10 -Carriage of Materials No forwarding orders shall be issued by the Railway for the conveyance of Contractor's materials, tools and plant by train which may be required for use in the works and the Contractor shall pay full freight charges at public tariff rates therefor 85

Clause 12 -Representation On Works • The Contractor during his absence shall keep a responsible agent at the works during working hours, when he is not personally present on the site. • Orders given by the Engineer or the Engineer's representative to the agent shall be deemed to have the same force as if they had been given to the Contractor. • Failure to comply with this provision will entitle the Rly to rescind under Clause 62. 86

Clause 15 -Indemnity by Contractors • The Contractor shall Indemnify Railway from and against all actions/ suit, proceedings/ losses/ costs/ damages/ charges/ claims and demands of every nature and description by reason of any act/omission of the Contractor/ his agents/employees, in the execution of the works. 87

Clause 16 -Security Deposit Clause 16. (1) For the due and faithful fulfillment of the contract (all the contract conditions) by the contractor” v 5% of contract value v EMD to be converted into SD and v Full SD May be deposited by the Contractor before release of first on account bill in cash or Term Deposit Receipt issued from Scheduled Bank, or may be recovered at @6% of the bill amount. v Contracts valued more than ₹ 50 crore, SD may be deposited as Bank Guarantee Bond also, before payment of 1 st on A/C bill. v In case SD has been submitted as Term Deposit Receipt/Bank Guarantee Bond in full amount, the EMD by the Contractor with his tender will be returned by the Railways. v After physical completion of the work, SD recovered from the running bills can be returned to contractor, if he so desires, in lieu of TDR / BG bond for from Scheduled Bank Covid effect- 2018/CE-I/CT/38/GCC/Correspondence dt 21. 05. 20 In All on-going works contracts irrespective of value a) Cash SD recovered may be returned on submission of BG b) Rate of recovery @ 6% in place of 10% of bill amount. 88

Clause 16 - Security Deposit Clause 16. 2 -Forfeiture of SD • Whenever the contract is rescinded as a whole, SD already with railways under the contract shall be forfeited. • In case the contract is rescinded in part or parts under, SD shall not be forfeited. • Shall be returned to the Contractor along with /after : o Final Payment of the Contract and o Execution of Final Supplementary Agreement or Certification by Engineer that Railway has No Claim on Contractor and o Issue of Maintenance Certificate (Min JA Grade- Cl 50(1) )issued on expiry of the maintenance period, in case applicable. § Approval of competent authority competent to sign the contract. § C. A. –Contract Signing Authority, but not below SS -It. 11(C)(ii) of MSOP Clause 16. 3 • No interest shall be payable upon the EM or SD or amount payable to the contractor. But Govt. securities deposited will be payable with interest accured thereon 89

Clause 16. (4) -Performance Guarantee (a) To be deposited within 21 days of issue of LOA and before signing of agreement. Extension to the time of submission of PG beyond 21 days can be given by the authority competent to sign the agreement (upto 60 days), however a penal interest @12% per annum would be applicable for delay beyond 21 days i. e. 22 nd day after the date of issue of LOA In case contractor fails to submit requisite PG even after 60 days, contract is liable to be terminated duly forfeiting EMD and other dues, if payable against that contract In case of Startup firms, DIPP under Ministry of Commerce and Industry shall be informed The failed contractor shall be debarred from participating in re-tender for that work. (b) PG @5% of contract value in acceptable Forms 90

Clause 16(4) -Performance (b) (i) – (xi) Forms of PG Guarantee (i)A deposit of cash, (ii)Irrevocable Bank Guarantee, (iii) Government Securities including State Loan Bonds at 5 percent below the market value, (iv) Deposit Receipts, Pay Orders, Demand Drafts and Guarantee Bonds either of the State Bank of India or of any of the Nationalized Banks; (v) Guarantee Bonds executed or Deposits Receipts tendered by all Schedules Banks; (vi) a Deposit in the Post Office Saving Bank; (vii) a Deposit in the National Savings Certificates; (viii)Twelve years National Defence Certificates; (ix) Ten years Defence Deposits; (x) National Defence Bonds; and (xi) Unit Trust Certificates at 5 per cent below market value or at the face value whichever is less (xii) FDR in favour of FA&CAO/C, (free from any encumbrance) 91

Clause 16(4) -Performance Guarantee (c) To be valid till initial or extended date of completion plus 60 days (d) PG amount would not change for a variation upto (+/-) 25%. Beyond 25% increase -additional PG required @5% of contract amount in excess of original agreement value Beyond 25% decrease- PG of 5% of decrease value be returned to contractor, on his request duly safeguarding the interest of Railways (h)The tenderer who has offered lower total cost as compared to tender value by more than 10 %, shall be required to submit additional Performance Guarantee of value equal to percentage of tender value by which offer is lower than 10% (e) To be released after physical completion of work to be certified by competent authority (Engineer- clause 40(1) ) C. A. – Contract Signing Authority’ but not below SS -It. 11(C)(i) of MSOP Covid Effect- Letter No. 2018/CE-l/CT/37/GCC/Policy dated 15. 05. 2020 Executive in case of non-performance attributable to lockdown of Covid-19, may return part PG proportional to completed work, where (a) an application is made by a contractor who is not in default of any contractual obligations; or (b) FMC is invoked by a contractor and the requirements of FMC are fulfilled 92

Clause 16(4) -Performance Guarantee (g) The Engineer shall not make a claim under the Performance Guarantee except for amounts to which the President of India is entitled. • Failure by contractor to extend validity of PG (Full) • Failure to pay the President of India any amount due either as agreed by contractor or determined under any of the clauses/conditions of the agreement within 30 days of service of notice to this effect by Engineer (Part/Full) • Contract being determined or rescinded under provision of GCC(Full) (h) The tenderer who has offered lower total cost as compared to tender value by more than 10 %, shall be required to submit additional Performance Guarantee of value equal to half the percentage of tender value by which offer is lower than 10% 93

Example • Original tender value- Rs 100 Crore v. Case II Offer Cost (9% Below) i. e. Rs 91 crore Required PG @5% of 91 Crore Offer Cost (20% Below) i. e. Rs 80 crore Required PG @5% of 80 Crore =Rs 4 Crore Additional PG for Rate quoted Below 10% i. e. Rs 90 crore @1/2 of 10% (Rs 10 crore) = Rs 5 Crore Total PG = Rs 9 crore Rs 4. 55 Crore 94

Clause 18 - Illegal Gratification 18. (1) Illegal Gratification: Any bribe, commission, gift or advantage given, promised or offered by or on behalf of the Contractor or his partner or agent or servant or anyone on his behalf, to any officer or employee of the Railway or to any person on his behalf in relation to obtaining or execution of this or any other contract • Any criminal liability which he may incur, • Rescission of the contract and all other contracts with the Railway • Payment of any loss or damage resulting from such decision 18. (2) If Contractor lend or borrow from or enter into any monitory dealings either directly or indirectly with any employee of the Railway • Railway shall be entitled forthwith to rescind the contract and all other contracts with the Railway. • Any question or dispute as to the commission of any such offence or compensation payable to the Railway under this Clause shall be 95 settled by the General Manager of the Railway

Clause 19 -Commencement of 19(2)- The Contractor shall. Works commence the works within 15 days receipt of an order in writing from the Engineer 19(3)- To submit the detailed programme of work indicating the time schedule of items of works in the form of Bar Chart/PERT/CPM as soon as possible after the date of receipt of the acceptance letter but - Not later than 30 days in respect of contracts with initial completion period of two years or less - Not later than 90 days for other contracts - Details of organisation (in terms of labour and supervisors) plant and machinery that he intends to utilize (from time to time) for execution of the work within stipulated date of completion § The Programme of work amended as necessary by discussions with the Engineer, shall be treated as the agreed programme. The progress of work will be watched 96 accordingly

Clause 19(4)-Setting Out of Works v Contractor shall be responsible for the correct setting out of all works at his cost. v Contractor shall execute the work true to alignment, grade, levels and dimensions as shown in the drawing and as directed by the Engineer's representative and check these at frequent intervals. v The Contractor shall provide all facilities like labour and instruments and shall co-operate with the Engineer's representative to check all alignment, grades, levels and dimensions. v Such checking shall not absolve the Contractor of his own responsibility of maintaining accuracy in the work. v The Contractor shall carefully protect and preserve all bench marks, sight rails, pegs and other things used in setting out the work. Clause 20(2)-Alterations to be Authorized v Contractor shall be responsible to obtain in each and every case in writing from the Engineer, If any alterations in or additions to or omissions or abandonment of any part of the works warranted. 97

Clause 21 -Instruction Of Engineer's Representative • Any instructions or approval given by the Engineer's representative shall bind the Contractor, provided always as follows: (a)Failure of the Engineer's representative to disapprove any work or materials shall not prejudice the power of the Engineer thereafter to disapprove such work or material and to order the removal or breaking up thereof. (Work Approved By Engineer’s Representative Can Be Disapproved / Rejected By Engineer). (b)If the Contractor shall be dissatisfied by reason of any decision of the Engineer's representative, he shall be entitled to refer the matter to the Engineer who shall there upon confirm or vary such decision. 98

Clause 22(4)- Compliance with Contractor's request for Details The Engineer shall furnish with reasonable promptness, after receipt of the Contractor's request, additional instructions by means of drawings or otherwise which shall be consistent with the Contract Documents and reasonably inferable there from Clause 22(5)- Meaning & Intent of Specification & Drawings If any ambiguity to the meaning and intent of any portion of the Specifications and Drawings or as to execution or quality of any work or material, or as to the measurements of the works- Ø The decision of the Engineer shall be final Ø Subject to the appeal (within 7 days of such decision being intimated to the Contractor) to the Chief Engineer, whose decision in the matter in dispute or doubt shall be final and conclusive. 99

Clause 23 - Working During Night The Contractor shall not carry out any work between sun-set and sunrise without the previous permission of the Engineer However, if the Engineer is satisfied that the work is not likely to be completed in time except by resorting to night work, he may order the same without confirming any right on the Contractor for claiming any extra payment for the same Clause 24 - Damage to Railway Property or Private Life and Property Contractor shall be responsible for all risk to the work and for trespass and shall make good at his own expense all loss or damage whether to the works themselves or to any other property of the Railway or the lives, persons or property of others in connection with the works until they are taken over by the Railway In case the Railway shall be called upon to make good any 100 costs, loss or damages, or to pay any compensation shall be

Clause 25 -Sheds, Stores Houses And Yards • The Contractor shall at his own expense provide as per requirement in the opinion of the Engineer. • The Engineer's representative shall have free access for the purpose of inspecting the stock of materials or plant 101

Clause 26 - Provision of Efficient and Competent Staff at Work Sites by the Contractor 26. 1)Contractor shall keep efficient and competent staff to give necessary directions to his workmen and to see that they execute work in sound & proper manner. 26. 2)The Contractor shall remove from works any agent/subcontractor/supervisor/workman/ labour who is objected to by Engineer and if required by Engineer, he shall submit a return showing names of all staff and workmen employed 26. 3) In the event of Engineer being of the opinion that Contractor is not employing sufficient number of staff and workmen, the Contractor shall deploy additional number of staff and labour as specified by the Engineer within 7 days of being so required. Failure on the part of Contractor will entitle the Railway to rescind the contract under Cl. 62 of GCC. 102

Clause 26 A- Deployment of Qualified Engineer at Work sites by The Contractor 1. The contractor shall also employ Qualified Graduate Engineer(s) or equivalent, or Qualified Diploma Holder Engineer(s), as prescribed in the tender documents. 2. In case the contractor fails to employ the Engineer, he shall be liable to pay LD at the rates, as prescribed in the tender documents. 3. No. of qualified engineers required to be deployed by the Contractor for various activities contained in the works contract shall be specified in the tender documents as ‘special condition of contract’ by the tender inviting authority. ” 103

Clause 26 A - Deployment of Qualified Engineer at Work sites By The Contractor Letter No. 2012/CE-I/CT/O/20 dated 10 -05 -2013 Qualified Graduate Engineer- when cost of work to be executed is Rs. 2 Cr and above, Qualified Diploma Engineer- when cost of work to be executed is more than Rs. 25 lakh, but less than Rs. 2 Cr Default – Liable to LD of Rs. 40, 000/ Rs. 25, 000 per month or part thereof Condition for not engaging the engineer can be kept by Tender Inviting Authority, with approval at minimum SAG level and reasons in writing 104

Clause 27. (2)- Removal of Improper Work and Materials • The Engineer or the Engineer's Representative shall be entitled to order from time to time: (a) The removal from the site, of any materials which in his opinion are not in accordance with the specifications or drawings. (b) The substitution of proper and suitable materials, and (c) The removal and proper re-execution, notwithstanding any previous tests thereof or on account payments therefor, of any work In case of default on the part of the Contractor in carrying out such order, the Railway shall be entitled to rescind the contract under Clause 62 of these conditions. 105

Clause 28 - Facilities For Inspection • The Contractor shall afford the Engineer and the Engineer's Representative every facility for entering in and upon every portion of the work at all hours for the purpose of inspection or otherwise • Provide all labour, materials, planks, ladders, pumps, appliances and things of every kind required for the purpose and • The Engineer and the Engineer's Representative shall at all times have free access to every part of the works and to all places at which materials for the works are stored or being prepared 106

Clause 29 - Examination Of Work Before Covering Up • The Contractor to give '7 days' notice to the Engineer or the Engineer's Representative whenever any work or materials are intended to be covered up in the earth, in bodies or walls or otherwise to be placed beyond the reach of measurements. • Otherwise Engineer's measured allowance materials. at the option of the Engineer or the Representative be uncovered and at the Contractor's expense or no shall be made for such work or 107

Clause 30 -Temporary Works • All temporary works for the proper execution of works shall be provided and maintained by the Contractor and be removed by him at his expenses on the direction of Engineer • If Contractor fail to remove the temporary works, the Engineer will arrange and cost, as increased by supervision and other incidental charges, shall be recovered from the Contractor. • Contractor shall arrange for handing over vacant possession of land after the work is completed; • If Contractor's labour refuse to vacate, and have to be evicted by the Railway, necessary expenses incurred by the Railway in connection shall be borne by the Contractor. 108

Clause 32 -Property in Materials and Plant • The materials and plant brought by the Contractor upon the site or on the land occupied by the Contractor in connection with the works and intended to be used for the execution thereof, be deemed to be the property of the Railway. • Such of them as rejected by Engineer or declared by him not needed for execution of works or those which remain unused after grant of certificate of completion may be removed by contractor from the site. • This in no way diminishes liability of Contractor or makes Railway answerable for any loss or damage which may happen due to same being lost, stolen, injured or destroyed by fire, tempest or otherwise. . 109

Clause 34. (4)-Safety of Public • The Contractor shall be responsible to take all precautions to ensure the safety of the public whether on public or railway property. • Post necessary look out men as advised of the Engineer. • Ensure placement of barricading / partitions at the place of work to ensure safety of habitants of adjacent area, otherwise Engineer may advise stoppage of work as per his discretion. 110

Clause 37 -Rates for Items of Works • The rates, entered in the accepted Schedule of Rates of the Contract are intended to provide for works and deemed to include and cover everything under any provision of law for the purpose of or in connection with the execution of the contract and all such other incidental charges or contingencies as may have been specially provided for in the Specifications. • However, if rates of existing GST or cess on GST for Works Contract is increased or decreased, or any new tax /cess on Works Contract is imposed or removed by Statute after the date of opening of tender but within the original date of completion/date of completion extended under clause 17 & 17 A, the amount so paid/ saved shall be reimbursed/ recovered from the Contractor 111

Clause 39 - Rates for Extra Items of Works • Any item of work not included in Schedule of Work, shall be executed at SOR rates modified by the tender percentage and for Non-SOR items, at rate agreed upon between the Engineer and the Contractor before the execution of such items of work. • For items not included in SOR, Contractors is bound to notify the Engineer at least 7 days before the necessity arises for the execution of such items of works. The rates payable for such items shall be decided at the meeting in as short a period as possible • In case the Contractor fails to attend the meeting after being notified to do so or in the event of no settlement being arrived at, the Railway shall be entitled to execute the extra works by other means and the Contractor shall have no claim for loss or damage that may result from such procedure. 112

Clause 39 - Rates for Extra Items of Works 39(1) Rates for extra items shall be arrived at based on the prevailing rates and guidance from following documents in order of priority: § Analysis of Unified Schedule of Rates of Indian Railways § Analysis of Delhi Schedule of Rates issued by CPWD § Market Analysis 39(2) If the Contractor commences work or incurs any expenditure before finalisation of rates, then the Contractor shall only be entitled to be paid according to the rates as shall be fixed by the Engineer However, if the Contractor is not satisfied with the decision of the Engineer in this respect, he may appeal to the Chief Engineer within 30 days of getting the decision of the Engineer, supported by analysis of the rates claimed The Chief Engineer's decision after hearing both the parties in 113 the matter would be final and binding on the Contractor and the

Clause 40(1)- Handing Over of Works • The Contractor to hand over the works, executed under the contract to the satisfaction of the Engineer. • The Engineer determine the date which full work or any particular section of the work is considered to have been completed, and his certificate shall be considered as sufficient evidence for all purposes 114

Clause 40(2)-Clearance of Site on Completion • On completion of the works, the Contractor shall clear the site to the satisfaction of the Engineer. • No final payment shall be paid till site clearance shall have been done by contractor. • Such clearance may be made by the Engineer at the expense of the Contractor in the event of his failure within 7 days after receiving notice to that effect. • Railway shall not be held liable for any loss or damage to the Contractor's property, may be affected by means of public sales of such materials and property or in such a way as deemed fit and convenient to the Engineer. 115

Clause 40(A) -Offloading of works At the final stage of commissioning of work, completion and üin case the contractor’s failure is limited to only some of the works costing not more than 2% of the original contract value, üContractor should request that such works may be offloaded from him and got executed through another agency and additional cost incurred, if any, should be recovered from his dues; üEngineer on being convinced that the anticipated additional cost can be recovered from the dues of the contractor and that such offloading will help in completion and commissioning of work, may agree to such offloading. üWill not have any adverse repercussion on the performance guarantee and security deposit of the Contractor. 116

Clause 43 -Claims • 43(1) Quarterly Statement Of Claims ü Contractor shall furnish once every quarter an account giving full and detailed particulars of all claims for any additional expenses to which he considers himself entitled to and of all extra or additional works ordered which he has executed during the preceding quarter. ü No claim for payment will be considered which has not been included in such particulars. • 43(2) Signing Of "No Claim" Certificate ü Contractor shall not be entitled to make any claim nor shall the Railway entertain/consider such claim, if made by the Contractor after he shall have signed a "No Claim" Certificate 117 after the works are finally measured

Clause 61. (1)- Right Of Railway To Determine The Contract The Railway shall be entitled to determine and terminate the contract at any time should, in the Railway's opinion, the cessation of work becomes necessary owing to paucity of funds or from any other cause. Notice in writing from the Railway of such determination and the reasons therefor shall be conclusive evidence thereof. In such cases the value of approved materials at site and of work done to date by the Contractor will be paid for in full at the rate specified in the contract. 118

Payment on Determination of Contract Clause 61. (2) • Contractor's claim for payment for expenditure incurred by him in the expectation of completing the whole of the work, the Railways shall admit and consider such claims as are deemed reasonable and are supported by vouchers to the satisfaction of the Engineer. The Railway's decision shall be final and conclusive. Clause 61. (3) • The Contractor shall have no claim to any payment of compensation on account of any profit or advantage which he could not derive due to determination of contract. 119

Clause 62. (1)- Determination of Contract Owing to Default of Contractor (i) Becomes bankrupt or insolvent, or…. . (iii) Being a Company or Corporation, go into liquidation (other than a voluntary liquidation for the purposes of amalgamation or reconstruction), or……… (vii) Persistently disregard the instructions of the Engineer, or contravene any provision of the contract, or (viii) Fail to adhere to the agreed programme of work by a margin of 10% of the stipulated period, or (ix) Fail to Execute the contract documents in terms of Clause 8 of the Regulations for Tenders and Contracts. (x) Fails to submit the documents pertaining to identity of JV and PAN in terms of Clause 17. 11 of Tender Form available in the Regulations for Tenders and Contracts. 120

Clause 62. (1)- Determination of Contract Owing to Default of Contractor (xi) Fail to remove materials from the site or to pull down and replace work after receiving from the Engineer notice to the effect that the said materials or works have been condemned or rejected under Clause 25 and 27 of these Conditions, or (xii) Fail to take steps to employ competent or additional staff and labour as required under Clause 26 of the Conditions, or (xiii) Fail to afford the Engineer or Engineer's representative proper facilities for inspecting the works or any part thereof as required under Clause 28 of the Conditions, or (xiv)Promise, offer or give any bribe, commission, gift or advantage… (xv) Fail to adhere to the provisions of Clause 16 of Tender Form (Second Sheet) of Annexure I of Part I ‘Regulations for Tenders and Contract’, or provision of above Clause 59(9) (xvi) Submits copy of fake documents / certificates in support of credentials, submitted by the tenderer 121

Clause 62. (1)- Determination of Contract Owing to Default of Contractor • Engineer on behalf of the Railway may serve the Contractor with a notice (Annexure-IX) and if the Contractor does not within seven days after the delivery of such notice proceed to make good his default. • Railway shall be entitled after giving 48 hours’ notice (Annexure-X) to rescind the contract as a whole or in part or parts (as may be specified in such notice) and • After expiry of 48 hours’ notice, a final termination notice (Annexure-XI) should be issued. • Engineer at his discretion may resort to the part termination of contract with notices (Annexure- IX, XII and XIII), only in cases where progress of work is more than or equal to 80% of 122 the original scope of work. Annexures

Clause 62. (2)- Right Of Railway After Rescission Of Contract Owing To Default Of Contractor (a)The Contractor shall have no claim to compensation for any loss sustained by reason of his having purchased or procured any materials or entered into any commitments or made any advances with a view to the execution of the works or the performance of the contract. Contractor shall not be entitled to recover or be paid any sum for any work thereto for actually performed under the contract unless and until the Engineer shall have certified. 123

Clause 62. (2)- Right Of Railway After Rescission Of Contract Owing To Default Of Contractor (b) In case Termination of Work as a Whole • SD to be forfeited. • PG to be encashed. • Balance work shall be got done independently without risk & cost of original contractor • Original contractor debarred from participating in tender for balance work • “Completion certificate” not issued to the contractor. • If failed contractor is JV or partnership firm, every member/ partner to be debarred from participating individually or as another JV/ Partnership. • Authorised representative of the failed contractor cannot be accepted as authorised representative in new contract. 124

Clause 62. (2)- Right Of Railway After Rescission Of Contract Owing To Default Of Contractor (c) In case Termination of Work in Parts • Encash full PG. • SD is not forfeited. • “Completion certificate” not issued to the contractor. • Get balance work done independently without Risk & Cost of failed contractor. The contractor shall be debarred from participating in the tender for executing balance work. • Authorised representative of the failed contractor cannot be accepted as authorised representative in new contract. 125

Clause 62. (2)- Right Of Railway After Rescission Of Contract Owing To Default Of Contractor (d)The Engineer or the Engineer's Representative shall be entitled to take possession of any materials, tools, implements, machinery and buildings and to retain and employ the same in the further execution of the works or any part thereof until the completion of the works without the Contractor being entitled to any compensation for the use and employment thereof or for wear and tear or destruction thereof. (e)Engineer shall as soon as practicable, determine what amount had been reasonably earned/would accrue to Contractor at the time of recession and what was the value of unused materials/ construction plant/any temporary works. The legitimate amount due, after making necessary deductions, should be released expeditiously. 126

ANNEXURE – IX PROFORMA OF 7 DAYS NOTICE ______ RAILWAY (Without Prejudice) To M/s _______________ Dear Sir, Contract Agreement No. _______________________ In connection with _________________________ In spite of repeated instructions to you by the subordinate offices as well as by this office in various letters of even no. ________, dated _____; you have failed to start work/show adequate progress and/or submit detailed programme for completing the work. 2. Your attention is invited to this office/Chief Engineer’s office letter no. ______, dated _____ in reference to your representation, dated ______. 3. As you have failed to abide by the instructions issued to commence the work/to show adequate progress of work you are hereby given 7 days’ notice in accordance with Clause 62 of Standard General Conditions of Contract to commence works / to make good the progress, failing which further action as provided in Clause 62 of the Standard General Conditions of Contract viz. to terminate your Contract and complete the balance work without your participation will be taken. Kindly acknowledge receipt. faithfully Yours For and on behalf of the President of India 127

ANNEXURE – X PROFORMA OF 48 HRS. NOTICE ______ RAILWAY (Without Prejudice) To M/s _______________ Dear Sir, Contract Agreement No. _______________________ In connection with _________________________ 1. Seven days’ notice under Clause 62 of Standard General Conditions of Contract was given to you under this office letter of even no. , dated ______; but you have taken no action to commence the work/show adequate progress of the work. 2. You are hereby given 48 hours’ notice in terms of Clause 62 of Standard General Conditions of Contract to commence works / to make good the progress of works, failing which and on expiry of this period your above contract will stand rescinded and the work under this contract will be carried out independently without your participation and your Security Deposit shall be forfeited and Performance Guarantee shall also be encashed and consequences which may please be noted. Kindly acknowledge receipt. Yours faithfully 128 For and on behalf of the President of India

ANNEXURE – XII Registered Acknowledgement Due PROFORMA OF 48 HRS. NOTICE FOR PART OF THE WORK……………. (DETAILS OF PART OF WORK TO BE MENTIONED) ______ RAILWAY (Without Prejudice) To Dear Sir, Contract Agreement No. _______________________ In connection with _________________________ 1. Seven days’ notice under Clause 62 of Standard General Conditions of Contract was given to you under this office letter of even no. , dated ______; but you have taken no action to commence the work/show adequate progress of the part of work…………………. . (details of part to be mentioned). 2. You are hereby given 48 hours’ notice in terms of Clause 62 of Standard General Conditions of Contract to commence works / to make good the progress of works, failing which and on expiry of this period your above part of work………………… (Details of part to be mentioned) in contract will be rescinded and the work will be carried out independently without your participation. 3. Your full Performance Guarantee for the contract shall be forfeited and you shall not be issued any completion certificate for the contract. However, no additional Performance Guarantee shall be required for balance of work being executed through the part terminated contract. 4. The contract value of part terminated contract shall stands reduced to ……………. . Kindly acknowledge receipt. Yours faithfully For and on behalf of the President of India 129

ANNEXURE – XI PROFORMA OF TERMINATION NOTICE _______ RAILWAY (Without Prejudice) No. _______ Dated ______ To M/s _______________ Dear Sir, Contract Agreement No. _______________________ In connection with _________________________ Forty eight hours (48 hrs. ) notice was given to you under this office letter of even no. , dated ________; but you have taken no action to commence the work/show adequate progress of the work. Since the period of 48 hours’ notice has already expired, the above contract stands rescinded in terms of Clause 62 of Standard General Conditions of Contract and the balance work under this contract will be carried out independently without your participation. Your participation as well as participation of every member/partner in any manner as an individual or a partnership firm/JV is hereby debarred from participation in the tender for executing the balance work and your Security Deposit shall be forfeited and Performance Guarantee shall also be encashed. Kindly acknowledge receipt. Yours faithfully For and on behalf of the President of India 130

ANNEXURE – XIII Registered Acknowledgement Due PROFORMA OF TERMINATION NOTICE FOR PART OF THE WORK……………. (DETAILS OF PART OF WORK TO BE MENTIONED) (Without Prejudice) No. ________________ Dated ______ Dear Sir, Contract Agreement No. _______________________ In connection with _________________________ 1. Forty eight hours (48 hrs. ) notice was given to you under this office letter of even no. , dated ________; but you have taken no action to commence the work/show adequate progress of the part of work…………………. . (details of part to be mentioned). 2. Your above part of work in contract …………………. . (details of part to be mentioned) stands rescinded in terms of Clause 62 of Standard General Conditions of Contract and the same will be carried out independently without your participation. Your participation as well as participation of every member/partner in any manner as an individual or a partnership firm/JV is hereby debarred from participation in the tender for executing the balance work 3. Your full Performance Guarantee for the contract shall be forfeited and you shall not be issued any completion certificate for the contract. However, no additional Performance Guarantee shall be required for balance of work being executed through the part terminated contract. 4. The contract value of part …………………. . terminated contract stands reduced to Kindly acknowledge receipt. Yours faithfully 131

Published in February 2018 132

Highlights • 8 Chapters, 78 pages + 17 Annexures • “GCC for Works” was the reference Document • ED’s committee (Traffic, Accounts, Mechanical) • Approved by Civil Engg & Legal Dte • Concurred by Finance • Approved by Railway Board (ME, MRS, FC, CRB) 133

The Chapters are : I. Meaning of Terms (4 Sub-sections) II. Eligibility of Bidders and Evaluation of Bids ( 8 Sub-sections) III. Bid Documentation (6 Sub-sections) IV. General Obligations (47 Sub-sections) V. Variations, Measurement and Payments (11 Sub-sections) VI. Labour Laws and Related Obligations (17 Sub-sections) VII. Determination of Contracts (5 Sub-sections) VIII. Statement of Disputes- Arbitration Rules (4 Sub-sections) 134

• • • • LIST OF CONTENTS I MEANING OF TERMS 1. 1 Interpretation 1. 2 Definition 1. 3 Singular and Plural 1. 4 Headings and Marginal Headings II ELIGIBILITY OF BIDDERS AND EVALUTATION OF BIDS 2. 1 Elements of Service Contracts and Procedural Thereof 2. 2 Qualification Criteria 2. 3 Lead Partner/Non Substantial Partners/Change in JV/Consortiurn 2. 4 Joint Venture (JV)Firms in Bids 2. 5 Disqualification of Bidders 2. 6 Bid Evaluation System 2. 7 Application for Registration for Approved List of Vendors 2. 8 Right of Railway to Deal with Bids 135

LIST OF CONTENTS • • • • • III 3. 1 3. 2 3. 3 3. 4 3. 5 3. 6 IV 4. 1 4. 2 4. 3 4. 4 4. 5 4. 6 4. 7 4. 8 4. 9 BID DOCUMENTATION Bid (Tender) Form Omissions & Discrepancies Earnest Money Care in Submission of Bids Execution of Contract Document Form of Contract Document GENERAL OBLIGATIONS Execution Co-Relation And Intent of Contract Documents Law Governing The Contract Service of Notices on Contractors Occupation and Use of Land Assignment or Subletting of Contract Railway Passes Carriage of Materials Representation on Works Relics, Treasures, Lost and Found 136

LIST OF CONTENTS • • • • 4. 10 4. 11 4. 12 4. 13 4. 14 4. 15 4. 16 4. 17 4. 18 4. 19 4. 20 4. 21 4. 22 4. 23 4. 24 4. 25 Indemnity By Contractors Performance Guarantee Force Majeure Clause Illegal Gratification Contractor's Understanding Commencement of Works Accepted Programme Compliance to Managers Instructions Alterations to be Authorized Extra Works Separate Contract in Connection With Works Instruction of Manager's Representative Adherence to Specifications and Drawings Working During Night Damage to Railway Property or Private Life and Property Sheds and Stores Houses 137

LIST OF CONTENTS • • • • 4. 26 Provision of Efficient and Competent Staff at Sites By The Contractor 4. 27 Workmanship and Testing 4. 28 Removal of Improper Materials/tools and Plant 4. 29 Facilities for Inspection 4. 30 Temporary Works 4. 31 Contractor to Supply Water for Works 4. 32 Contractor to Arrange Supply of Electric Power for Services 4. 33 Property in Materials and Plant 4. 34 Tools, Plant and Material Supplied by Railway 4. 35 Hire of Railways' Plant 4. 36 Precaution During Progress of Services 4. 37 Roads and Water Courses 4. 38 Provision of Access to Premises 4. 39 Safety of Public 4. 40 Use of Explosives 4. 41 Suspension of Services 138

• • • • • 4. 42 4. 43 4. 44 4. 45 4. 46 4. 47 V 5. 1 5. 2 5. 3 5. 4 5. 5 5. 6 5. 7 5. 8 5. 9 5. 10 5. 11 LIST OF CONTENTS Rates for Items of Work Clearance of Site on Completion Digital Contract Labour Management System Environmental Requirements Data Protection Intellectual Property Rights VARIATIONS, MEASUREMENT AND PAYMENTS Extension of Time for Delay Due to contractor Modification to Contract to be in writing Claims Measurement Payments Price Variation Clause (PVC) Price Variation During Extended Period of Contract Maintenance of Works, if applicable Certificate of Completion of Services Final Payment 139

LIST OF CONTENTS • • • • • VI 6. 1 6. 2 6. 3 6. 4 6. 5 6. 6 6. 7 1952 6. 8 6. 9 6. 10 6. 11 6. 12 6. 13 6. 14 6. 15 6. 16 6. 17 LABOUR LAWS AND RELATED OBLIGATIONS Independent Contractor Legal Obligations Labour Law Awareness Provisions of Contract Labour (Regulation and Abolition) Act, 1970/Rule 1950 Minimum Wages Act, 1948/Rules 1950 Provisions of Payments of Wages Act Provisions of Employees Provident Fund and Miscellaneous Provisions Act, Provisions of Workmen's Compensation Act The Maternity Benefit Act, 1961 The Sexual Harassment of Women at the Workplace Safai Karannchari Act, 1993 Child Labour (Prohibition and Regulation) Act, 1986 Apprentices Act, 1961 Miscellaneous Provisions Medical Certificate of Fitness for Labour Police Verification of Labour Employed by Contractor Mandatory Compliance of Government Scheme 140

LIST OF CONTENTS • • • VII DETERMINATION OF CONTRACT 7. 1 Right of Railway to Determine the Contract 7. 2 Payment on Determination of Contract 7. 3 No Claim on Compensation 7. 4 Determination of Contract Owing to Default of Contractor 7. 5 Right of Railway After Rescission of Contract Owing to Default of Contractor • VIII SETTLEMTNT OF DISPUTES- INDINAN RAILWAY ARBITRATION RULES • 8. 1 Matters Finally Determined by the Railways • 8. 2 Demand for Arbitration • 8. 3 Obligation During Pendency of Arbitration • 8. 4 Appointment of Arbitrator 141

ANNEXURES • • • • I II III IV V VI VIII Bid Evaluation-Technical Criteria (sample) Bid Form (First Sheet) Bid Form (Second Sheet)-Instructions to Bidders Bid Form (Third Sheet)- Schedule of Rates and Quantities Contract Agreement of Services Employment Card (Form XIV) Service Certificate (Form XV) Register of Wages (Form XVII) Wage Slip (Form XIX) Return to be sent by the Contractor to the Licensing Officer (Form )0(IV) 142

Chapter 1 Meaning of Terms WORKS Tender Engineer Tenderer SERVICE Bid Manager Bidder Chief Engineer Works Engineering Department Competent Authority Service User Department (Mechanical, Commercial etc) Execution of Works He, His Delivery of Services She, Her 143

New Terms added and Defined • Service ( 1. 2. 10) • Earning Contract ( 1. 2. 11) • Two bid System/Two Packet System (1. 2. 21) • QCBS (Quality and Cost based Selection) ( 1. 2. 22) 144

Chapter 2 Eligibility of Bidders and Bid Evaluation 145

Minimum Eligibility Criteria • In Works – No Criteria defined for value < 50 Lakh • In services -- Criteria is defined for ALL values of contracts 146

Quality and Cost Based Selection Shall mean a system of bid evaluation where weightages are assigned to technical and financial criteria, wherein higher weightages is assigned to technical criteria based on the importance of quality of consultancy services sought. The evaluation is made on the basis of combining the weighted scores for technical and financial criteria. May be used for consulting services where quality of consultancy is of the prime concern such as management consultancy, feasibility studies. Shall be used for all consultancy service contracts having bid value > 50 Lakh. 147

Chapter III BID DOCUMENTATION 148

EMD/SD/PG EMD (Cl. 3. 3) a) For works / services estimated to cost up to Rs. 1 crore - 2% of the estimated cost of the work b) For works/ services estimated to cost more than Rs. 1 cr. - Rs. 2 lakh plus ½% of the excess of the estimated cost of work beyond Rs. 1 cr. subject to a max. of Rs. 1 crs. EMD of successful Bidder is returned after taking PG (3. 3. 3). No security Deposit PG – 10% (instead of 5% as in works) 149

Chapter IV GENERAL OBLIGATION 150

Performance Guarantee Issue LOA to Successful Bidder To deposit PG within 30 days(4. 11) P G 2. 5% Return EMD to Unsuccessful Bidders In any of the 11 forms specified(4. 11. 5) 2. 5% PG within 30 Days OK PG Within 60 Days 15% Penalty beyond 30 days 61 st Day Issue Notice to Bidder & wait 91 st Day Terminate LOA. Forfeit EMD 10% Return EMD(3. 3. 3) to successful Bidder (if PG is Deposited) 151

contd ……Performance Guarantee Validity of PG DOC + Maintenance Period + 60 Days PG Received Contract Agreement to be signed jointly- 3 Sets Contract completed successfully + Completion Certificate issued Return 100% PG if No Warranty/Maintenance Retain 25% PG if Warranty/Maintenance(4. 11. 7) 152

4. 44 Digital Contract Labour Management System (New) New Concept in Indian Railways For creating database and for attendance. For safeguarding worker’s welfare Mandatory in Labour intensive Service Contracts. • Overtime/Double shift can be logged • Applicability of this clause to be made in special condition. • Create a Database – next slide • • 153

Contd. . Digital Contract Labour Management System • Bio data: Personal, Education, family, hometown, police verification, Medical, Insurance, PF registration • Identification: Aadhar, Voter card, PAN, DL • I Card: Photo, Blood group, Colour Band • Biometric: Photo, fingerprint, iris • Attendance: biometric machines • Restricted Entry, Shift Logic, Time sheet generation, Consumables, Safety/performance/Labour Law training, Who’s where and Alerts(in Emergency) 154

Digital Labour Management System The Computer calculates how much they (Labour) will be paid as per when they entered and exited the workplace 155

Data Protection(4. 46) • If Contractor is processing personal data, she should comply all instructions and Laws • Should protect data against unauthorized or unlawful processing • Protect against loss • Provision shall apply during the period and indefinitely. 156

Intellectual Property Rights(4. 47) • All IPRs shall be with the Railways; The clause binds the Contrator into assigning them to the Railways in perpetuity. • If she uses a 3 rd party licence, she shall grant to the Railways an authorised sub-licence to use the same. 157

Environmental requirements(4. 45) • The contractor shall abide by the IR Environememnt Policy , which is to conserve natural resources , phase out use of ozone depleting substances, reduce waste and minimise green house gases etc. 158

Use of sub contractors(4. 5) • GCC for services allows hiring of sub contractors only after approval. 159

• Work timings(4. 23): Round the clock • Age of Workmen(6. 12. 1): Employment of labour not below 18 years of age 160

Water supply • 4. 31. 1 Water Supply From Railway System: The Railway may supply to the Contractor part or whole of the quantity of the water required for the execution of services from the Railway's existing water supply system at or near the site of services on specified terms and conditions and free of cost (unless specified otherwise), provided that the Contractor shall arrange, at her own expense, to effect the connections and lay additional pipe lines and accessories on the site and that the Contractor shall not be entitled to any compensation for interruption of failure of the water supply. • 4. 31. 2 In case the Railway is unable to provide water for the services, the contractor shall be responsible for the arrangements of supply of water necessary for the services. 161

Electricity supply • 4. 32. 1 Electric Supply From The Railway System: The Railway may supply to the Contractor part or whole of the electric power wherever available and possible, required for execution of services from the Railway's existing electric supply systems on specified terms and conditions free of cost (unless otherwise specified) only for the services rendered provided the cost of arranging necessary connections shall be borne by the Contractor and that the Contractor shall not be entitled to any compensation for interruption or failure of the electric supply system. • 4. 32. 2. In case the Railway is unable to provide electricity for the services, the contractor shall be responsible for the arrangements of supply of electricity necessary for the services. 162

Chapter VII Determination of Contract 163

Revised regimen of Notices • 7 days notice replaced by “Performance Notice”( 7. 4. 1). The Railways is at a liberty to invite fresh bids immediately – Asses Performance on Weekly Basis – If Improved – Letter of revocation • 48 hr notice is replaced by 7 days notice. • Terminationn notice • Open financial bids 164

INDIAN RAILWAY Standard Schedule Of Rates 2019 For Execution of Bridgeworks, Formation Works Materials & Works and P. Way Works. On Indian Railways

Railway board have decided vide Letter No. 2018/CE-I/USSOR/W&M/1 Dt. 26. 11. 2019 that IRUSSOR-2019 and IRUSS-2019 to be adopted for P. way Works with effect from 26. 11. 2019

Salient Features of IRUSS-2019 / IRUSS 2019. a) IRUSSOR-2019 is consists of 21 chapters for execution of Formation Works, bridge Works, and P. way Works. b) IRUSSOR -2019 software including Basic data Input, Analysis of Rates & Schedule of rates has been prepared in Excel file named IRUSSOR 2019. xlsx and uploaded on Civil engineering Directorate webpage of Railway Board for preparing and publishing Zonal SOR by Zonal railways.

c) All Zonal Railways shall prepare their own SOR by updating the rates of all components in “Basic Rates’ sheet of IRUSSOR-2019. xlsx file. These rates shall be excusive of GST. d) Zonal railways shall update the “: Basic Rates”sheet with concurrence of Associate Finance, at least once in two years to have duly updated USSOR of each Zonal railway every two year. e) Zonal Railways are not authorized to make any change in the Item no. , Description of Item, and Unit of Item.

f) In case of any Railway finds any ambiguity in these fields of any item during development of their SOR, they shall refer the same to Railway board for issuing the suitable modification uniformly across the Indian railways. g) Production Units & other organization shall adopt the SOR of nearby Zone. h) The downloadable copy of IRUSSOR-2019 is available on Civil Engineering Directorate Webpage of Railway Board. i) Separate tender schedule have to be prepared for IRUSSOR and CPWD DSR in case a tender is having both IRUSSOR and CPWD DRS items.

GENERAL INSTRUCTIONS v Cost of cement is not included in any item except where specifically mentioned in the item. v Cost of carriage of materials up to the site of work is included in the input cost of basic items. v In Rate Analysis, misc. expenditure has been taken care of under the heading ‘Sundries’ (indicated by Item Code 9901 in the Basic Rates Sheet). v Rate for ‘Sundries’ has been taken as 1. 00 and will remain constant for all Zonal Railways. This shall be increased @ 5% per annum, i. e. rate after one year shall be changed from 1. 00 to 1. 05.

v Rates include all freight charges, lead and lift upto the site of the work for all materials used in the work unless specified otherwise.

OPERATING INSTRUCTIONS Numbering System Of SOR Items – (i) The system of numbering SOR items has been adopted for easy identification of item and linkage between item number & description of item. Each Item number of SOR consists of 6 numeric digits, as detailed below (ii) First 2 digits (left side) indicate Chapter no. from 01 to 21. (iii) Next one digit indicates Sub-Group within the Chapter. It can value from 1 to 9 only. (iv) Next 2 digits are Main Item nos. , varying from 01 to 99. Item nos. are continuous within one Sub-group; but restart from 01 with change of Subgroup. (v) Next one digit, i. e. right-most digit indicates Sub-item within the main item. It can vary from 0 to 9. It will have value 0, if there is no Sub -item. Also, it will be 0 for main item with Sub-items, but in this case this item will not have any unit or rate, since unit & rate are associated with Sub-item.

Zonal railways shall prepare their SOR by updating the rates of all components in ‘Basic Rates’ sheet of IRUSSOR-2019. xlsx file in consultation with associate finance. These rates shall be Exclusive of GST. Basic Rates shall be updated once in two years by respective Zonal railway with concurrence of associate finance, so as to have duly updated USSOR of each zonal railway every two year.

Procedure To Finalise ‘Standard Schedule Of Rates’ of all Zonal railway – (i) The IRUSSOR-2019 software including Basic Data Input, Analysis of Rate &Schedule of Rates has been prepared in Excel file named ‘IRUSSOR-2019. xlsx’ and uploaded on Railway Board Civil Engineering Directorate webpage. (ii) The rates reflected in ‘IRUSSOR-2019. xlsx’ are representative rates of different components to confirm consistency in ‘Analysis of Rates (AOR)’.

Operating Procedure of Preparation Of ‘SOR’ – (i) The ‘Schedule of Rates’ (SOR) and ‘Analysis of Rates’ (AOR) are given in one excel file named ‘IRUSSOR-2019. xlsx’. This file contains 43 Sheets; containing 1 Sheet for Basic Rate (Basic Rates), 21 Sheets of AOR (A-1, A-2, …. , A 21) and 21 Sheets of SOR(S-1, S-2, …. , S 21). (ii) ‘Nomenclature’, ‘Item’, ‘Rate Code’, Unit and Rates of ‘Basic Items’ have been given in one separate sheet, named ‘Basic Rates’. This sheet is noneditable except the cells containing Rates. Editing in these cells shall be password protected.

(iii) SOR Sheets are in non-editable form and corrections to these can be done by Railway Board only duly considering the suggestion of Zonal Railways etc. (iv) The AORs are editable except for Item and Unit of the Item. Zonal Railways may finalize the analysis with the concurrence of associate finance. However in case Railway makes any change in analysis due to any reasons, whatsoever, the same shall be communicated to Railway Board. (v) Since, all the sheets are mutually linked within the workbook; any attempt to modify any sheet except editable cells may distort other files. Therefore, only the competent and authorized person allowed to access the soft file shall prepare the Railway USSOR without adding or deleting any sheet as well as without any change in noneditable cell.

Procedure for initial preparation & subsequent updation of SOR (i) Open ‘IRUSSOR-2019. xlsx’. The initial password is IRUSSOR 2019. (ii) Make the changes in the rate column of the "Basic Rates” Sheet. It will ask for a password for making changes. This is the most important stage and Railways must ensure that password is suitably secured. The initial password to allow editing in rate column is Basic Rates. (iii) Both the passwords shall be changed by the competent authority before commencing any work for development of SOR to ensure authorized changes and correctness of such changes. (iv) As soon as change in rate of any item in ‘Basic Rates’ Sheet is made, the rates of items of SOR stands updated automatically. Changes in SOR will be effective only when ‘IRUSSOR-2019. xlsx’ file is saved & closed properly. (v) AOR sheets are editable. However, normally AOR sheets shall not require any change.

Analysis Of Rates (AOR) • AOR for each item in IRUSSOR-2019 is given in the book of AOR (21 Chapters). • Each Chapter of USSOR is covered in Sheets Named A 1, A 2, …. . A 21 (for 21 Chapters) • AOR is prepared in format given below

Item no. Description Unit Rate Code Rate (Rs) Quantity Components of AOR. 1) Material 2) Labour 3) Consumables if any 4) Machinery 5) Water Charges@ 1% 6) GST @ 12% 7) Contractors Profit and Overhead @ 15% 8) Cess @ 1 % Labour Cost (Rs. ) Material Cost (Rs) Labour & Material Cost (Rs)

Explain AOR of few Items by downloading the same from http: //indianrailways. gov. in/railwayboard/view_section. jsp? lang=0&id=0, 1, 304, 366, 526, 2240

Procedure For Banning Of Item From ‘Standard Schedule Of Rates’ – PCE shall be the authority to ban execution of any particular item on the Zonal Railway, if they find that the particular item is not suitable to their Railway system due to any reason. A letter under the signature of PCE informing list of items which shall not be operated by field units shall be issued to all concerned on the Railway with a copy to EDCE(G), Railway Board for examination and its incorporation in IRUSSOR. xlsx as well as IREPS database.

QUALITY CONTROL AND ASSURANCE: • Quality control and assurance means execution of each specific component of the project (i. e. earthwork, blanketing, ballast, track laying, RCC, building work etc. ) in time bound and recursive manner, complying with laid down quality standards and identifying ways to eliminate cause(s) of unsatisfactory performance.

QUALITY CONTROL AND ASSURANCE: … • Contract document must mention clear, complete, and accurate description of the standards and specifications to be followed for each component of the project, facilities to be developed by agencies either in the project area or through the third party and the documentation to be ensured and preserved while undertaking the inspections and tests for each component. • For having an effective and well-documented quality control and assurance plan, following basic elements of a Quality Control and Assurance Plan must be adhered to:

THANKS 184