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1.

SOME IMPORTANT GUIDELINES FOR WORKS - TENDERS

1.1 An overview

In Railways large number of tenders are being finalized. ‘Tenders’ being a


very important and sensitive subject, it is essential that officials involved in dealing
with them should be abreast with various guidelines issued by Railway Board from
time to time on the subject, so that avoidable mistakes can be got rid off. Some of the
important points extracted from such letters /Engineering Code are detailed below:-
1.1.1. No work included in an abstract estimate should be commenced till a detailed
estimate for the same is prepared and sanctioned and adequate funds are
allotted by the competent authority.
(Para E 703)
1.1.2. The tenders should be invited only after the sanction of detailed estimate
However, in case of extreme urgency, approval of competent authority with
prior concurrence of associated finance is to be obtained. Financial limits to
be observed as per latest instructions of Railway Board.
(94/CE-1/CT/4 dated 17-9-97)
1.1.3. Estimated cost is to be worked out based on the last accepted rates considering
any special features such as site conditions, type of work, weather, completion
period, law & order, availability of labour, materials adopting RBI indices and
building cost index for enhancement over last accepted rates.
(94-CE-1/CT/4 dated. 17-09-97)
1.2 - Tender notice
1.2.1. The tender notices should in all cases state:
(i) The place and time where contract documents and drawings can be
seen.
(ii) The place and time where blank tender forms can be purchased.
(iii) The amount, if any, to be paid for such documents.
(iv) The place, date and time tenders are to be submitted and opened
there upon.

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(v) Website address is to be given for facilitating the tenderers to download
the tender documents.
(Para E 1239)

1.2.2. Tender notice should be scrutinised carefully and ensured that Notice inviting
Tenders contains all relevant information.
1.2.3. Dates and copies of publication in newspapers to be perused, cutting to be kept
on tender file. Copy of release order given by CPRO also to be perused.
1.2.4. Sufficient time should be given for the submission of tenders, which in the
case of large works should not be less than a month from the date of
publication in newspaper. The prescribed period may be departed in the
exceptional circumstances only and that too in consultation with the Financial
Adviser and Chief Accounts Officer.
(Para E 1238)
1.2.5. The system of invitation of tender (open tender) by public advertisements in
the most public manner possible should be ensured as a general rule and must
be adopted, subject to the exceptions noted in Para E 1211 & E 1214.
(Para E 1213)
1.2.6. Notice for inviting limited tenders shall be published in local newspapers and
displayed on the notice board kept in the concerned Railway office and also
put on Internet wherever possible. It will be the duty of prospective tenderers
to keep trace of the tender notice issued through any of these media.
(94/CE-1/CT/4 dated 17-10-2002)
1.3 - Tender documents
1.3.1. One copy of the booklet containing tender documents duly approved by the
competent authority inviting tender should be kept on the tender file, each
page duly signed with date by the officer authorized and folio numbered.
1.3.2. Whenever tender documents are issued to any tenderer, the document should
be initialed on each page by the section incharge, dealing with the tender,
thereby certifying that the documents being given to the tenderer are not at
variance with the original approved copy.
(93/CE-1/CT/11 dated. 4-5-93)

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1.3.3. In case of risk and cost tenders, conditions are to be identical with original
tender and tender notice should also be normally served on the defaulting
contractor.
(88/CE-1/CT/31 dated.29-1-96)
1.3.4. Description of items should be clear, precise and definite. Special conditions
should be without any ambiguity and scope for interpretation.
1.3.5. Wherever operation of non-schedule items is inescapable, it should be derived
from the item included in the standard Schedule Of Rates (SOR), where new
item vary marginally from SOR item, market rate should be used only to the
extent of variation to work out new rate.
(94/CE-1/CT/4 dated. 17-9-97)
1.4 - Opening of Tenders
1.4.1. Tenders to be opened at the specified time, date and place by departmental and
accounts officials nominated and in presence of intending tenderers.
1.4.2. The officer opening the tenders should invariably put date and initial on
corrections in the schedule of quantities, schedule of materials to be issued and
specification and other essential parts and contract documents.
1.4.3. The officers concerned should mark all corrections and over writings, number
them and attest them in red ink. In case of number of corrections in rate,
either in words or in figures or in both, the number of corrections, marked
should indicate corrections serially.
(61/W-T/CT/6 dated. 4-6-61)
1.4.4. In case of more than one correction, where the correction is not legible, the
rate should be written afresh in hand by the officer opening the tenders.
(61/W-1/CT/6 dated. 4-6-61).
1.4.5 Tender boxes can be kept at more than one place, collected and opened as
scheduled. (90/CE-1/CT/1 dated. 28-10-98)
1.4.6. All rates, conditions, offer period, should be circled and initialed and all blank
pages to be scored out.
1.4.7. Check whether all pages are intact, signed by tenderer wherever required and
rates for all items as required are quoted.

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1.4.8. Tender received by post to be entered in the Tender register recording the time
of receipt on the cover and deposited in tender box before closing time.
(Para E 1247)
1.4.9 i) Delayed tenders also are to be opened and dealt along with other tenders
received in time. (Para E 1251)
ii) Late tenders to be opened by the concerned Branch officers, marked in red
ink duly mentioning in the tender register. (Para E 1251)

1.5 - Earnest money


1.5.1.(a) Tenders without valid Earnest Money Deposit should be summarily rejected.
(66/W-1/CT/22/A dated 20-5-67).
b) Amount of EMD to be deposited should be sufficiently large to be a
security against loss, in the event of contractor failing to undertake the contract or to
furnish the required security within the appointed time after acceptance of his tender
or until such time as the sums due to him form a sufficient guarantee, as the case may
be. (Para E 1241)
(c) The amount of EMD required to be deposited with the tenders as initial
security shall be as under:

Value of the work EMD


For works estimated to cost 2% of the estimated cost
upto Rs.25 crores
For works estimated to cost Rs.50 lakhs plus 1% of the excess
more than Rs.25 crores of the estimated cost beyond Rs.25
crore

(2003/CE-1/CT/4/Pt.I dated 7-12-2006).


1.5.2. It is to be checked whether EMD is submitted in acceptable forms. EMD in
the form of guarantee bonds should not be accepted.
(Para E 1246).
1.5.3. IRFC Bonds can be accepted as EMD and SD.
(90/C-I/CT/66 dated. 31-01-1992).

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1.5.4. Lower or higher EMD can be fixed in consultation with FA & CAO.
(Para E 1243).
1.5.5. In case the tenderer withdraws his offer within the validity period or fails to
undertake the work after acceptance, full EMD is to be forfeited.
(88/CE-1/CT/1/Vol.II dated 16-8-96).

1.6. Security Deposit and Performance Guarantee

1.6.1. Unless otherwise specified in the special conditions, if any, the Security
Deposit/rate of recovery/mode of recovery shall be as under:-

a) Security Deposit for each work should be 5% of the contract value.


b) The rate of recovery should be at the rate of 10% of the running bill amount
till the full security deposit is recovered.
c) Security Deposit will be recovered only from the running bills of the
contract and no other mode of collecting SD such as SD in the form of
instruments like BG, FD, etc. shall be accepted towards Security Deposit.

1.6.2. Security Deposit shall be returned to the contractor after the physical
completion of the work as certified by the Competent Authority. The Competent
Authority shall normally be the authority who is competent to sign the contract. If
this Competent Authority is of the rank lower than JA Grade, then a JA Grade Officer
( concerned with the work) should issue the certificate. The certificate, interalia,
should mention that the work has been completed in all respects and that all the
contractual obligations have been fulfilled by the contractors and that there is no due
from the contractor to Railways against the concerned contract. Before releasing the
SD, an unconditional and unequivocal ‘no claim certificate’ from the contractor
concerned should be obtained.
(2003/CE-I/CT/4/PT.I dated 12/16-5-06).
1.6.3. The procedure for obtaining Performance Guarantee is outlined below:
a) The successful bidder should give a Performance Guarantee in the form of
an irrevocable bank guarantee amounting to 5% of the contract value.

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b) The Performance Guarantee should be furnished by the successful
contractor after the letter of acceptance has been issued, but before signing the
agreement and should be valid upto expiry of the maintenance period. The agreement
should normally be signed within 15 (fifteen) days after the issue of LOA and
Performance Guarantee should also be submitted within this time limit.

c) Performance Guarantee shall be released after satisfactory completion of the


work and maintenance period is over. The procedure for releasing should be same as
for Security Deposit.

d) Wherever the contracts are rescinded, the security deposit should be


forfeited and the Performance Guarantee shall be encashed and the balance work
should be got done separately.

e) The balance work shall be got done independently without risk and cost of
the original contractor.

f) The original contractor shall be debarred from participating in the tender for
executing the balance work. If the failed contractor is a Joint Venture or a partnership
firm, then every member/partner of such a firm would be debarred from participating
in the tender for the balance work either in his/her individual capacity or as a partner
of any other JV/partnership firm.
(2003/CE-I/CT/4/PT.I dated 12/16-5-2006)

1.7 - Briefing note and Comparative Statement

1.7.1. To be prepared by the executive to facilitate the work of Tender Committee.


(61/W-V/LCT/41 dated 23-12-1961 and 21-12-1961).
1.7.2. To be prepared as per proforma and signed by official one step lower than the
level of T.C. on each page . (78/W-1/CT/47/TF dated 03-03-1979)
1.7.3. Last accepted rate for same or similar works for the particular or contiguous
area to be furnished. ( Para E 1253)

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1.7.4. Credentials about previous experience of contractor are to be furnished.
(Para E 1253)
1.7.5. Important tender conditions contained are to be reproduced
. (Para E 1252)
1.7.6. Latest data about availability of materials and prices thereof and working
conditions are to be mentioned. (Para E 1253)
1.7.7. Any special conditions put forths by the tenderers as well as technical data in
the offers, are to be evaluated wherever possible. (Para E 1253)
1.7.8 To be vetted by accounts after verification along with original tenders and
signed on each page by section officer. ( Para E 1254)
1.7.9. Briefing note to be prepared and signed by atleast Junior Administrative
Grade (JAG) Officer and checked by SAO for tenders of value for more than
Rs. 30 lakhs. ( Para E 1254)
1.7.10 Officer who evaluated technical conditions in financial terms and signed the
briefing note is solely responsible. ( Para E 1254)
1.7.11. Staff of Accounts department is responsible for checking arithmetical
accuracy. (78/W-1/CT/47/TF dated 03-03-1979)
1.7.12. Details in support of eligibility criteria stipulated and whether satisfactory.
(78/W-1/CT/47 (TF dated 03-03-1979)
1.7.13. Details of late and delayed tenders are to be furnished. (-do-)
1.7.14. The departmental officer associated with the opening of tenders should check
the comparative statement. The Section Officer associated should check
comparative statement and sign on each page.

1.8 - Tender Committee Proceedings.

1.8.1. Nomination of Tender Committee members:


(a) In case of single tender, Tender Committee and accepting authority should
be one step higher than in case of open tenders.
(94/CE-1/CT dated. 17-9-97)
(b) Member of Tender Committee should not be accepting authority of the
same Tender. The case has to be put up to the next higher authority for
acceptance.

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(83/CE-1/CT/76 dated. 23-12-88)

1. 8.2. Deliberation of Tender Committee Proceedings:


Before proceeding on tender committee deliberation, T.C. should go through
the comparative statement, Briefing Note and Tender Papers carefully.
(78/W-1/CT/47 (Task Force) dated. 3-3-79)
1.8.3. (a) The aspects such as physical and financial capacity, technical competence
of tenderers should be examined carefully and recorded in detail by the T.C
minutes. (No.67-B(c) PAC-III/72 /13 dated. 8-4-70).
(b) Ensure the financial capacity, capability and past performance of the
tenderer/contractor is investigated /examined in detail by the Tender
Committee before recommending the tenderer/contractor for awarding a
contract duly considering the existing work load with the tenderer/contractor.
(c) “No work or supply should ordinarily be entrusted for execution to a
contractor whose capability, technical competence and financial status has not
been investigated and found satisfactory……”. (Para E 1215 ).
(d) “In the case of open tenders, if the lowest tenderer is not on the approved
list of contractors maintained by the Railways, but his tender is otherwise
satisfactory, he should be asked to produce evidence of his capacity to carry
out the proposed work or supply efficiency and his sound financial capacity.
If he is unable to produce this evidence and it is proposed to pass over his
tender and consider the next higher one, the fact of the lowest tenderer having
failed to produce necessary evidence of his capacity and sound financial
position should invariably be placed on record and discussed in detail by TC”.
(Para No.617 of IRFC, Volume-1 Reprint 1998).
1.8.4. In case there are more than one contracting agencies under the same
management, there seems no harm in their tendering. Railways cannot discard
such tenders. However, when such offers are evaluated, norms of adequate
and fair competition must be ensured.
(94/CE-1/CT/4 dated. 17-09-97).
1.8.5. In case of adverse remark against a contractor otherwise, suitable for
consideration, the orders of the HOD are to be obtained on the matter, before
ignoring the offer. (73/W-1/8/52 (CT) dated.27-10-73)

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1.8.6. It is the responsibility of the Tender Committee to scrutinize carefully the
tendered rates to ensure that the rates quoted for individual items are realistic
and are not unreasonable in respect of any item of work.
(72/W-1/CT/42 dated. 17-12-92)
1.8.7. To check reasonability of rates, it is not enough to compare with LAR.
Checking of current market rates and rates analysis also needs to be
undertaken.
1.8.8. T.C. recommendation is to be signed on each page by all TC members.
1.8.9. (i) In work contracts negotiations are to be held with L-1 only.
(ii) L1 should be defined as the lowest, valid, eligible and technically
acceptable Tenderer who would have been otherwise considered for award
of contract, directly, if rates were not unreasonably high.
(No.94/CE-1/CT/4 dated.17-10-2002)
1.8.10. If negotiations are approved by the tender accepting authority, the call letter
for negotiations should be as per the instructions contained in Board’s Letter
No.61/W-II/CT/24 dated. 31-10-65 and all guidelines as contained Board’s
Letter No.73/W-II/CT/15 dated. 15-03-74 and Letter No.84/W-1/CT/28(P)
dated. 09-07-85 with the modification that it will apply to L-1 only and not to
all tenderers. Negotiation should be conducted in the presence of all members
of TC and signed by all members of TC.
(94/CE-1/CT/4 dated. 17-10-2002)
1.8.11. Ensure two bid system is followed (techno-commercial) so that proper
assessment of the offers is made before the award of contract and if L-1
tenderer backs out, there should be re-tendering in a transparent and fair
manner. The authority in such a situation may call for a limited or short notice
tender if so justified in the interest of work and take a decision on the basis of
lowest tender.
( CVC’s Letter No.98/Ord./1 dated 24-8-2000)
1.8.12 (i) Ensure a regulatory mechanism as a part of contract itself to control
payment in case the agreemental value goes beyond 25% as follows so that the
contracts are not vitiated.
(a) For the first 15% increase in the value beyond 25% of agreemental
value, the rates will have a reduction of 2% in the incremental value of
the agreement.

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(b) For next 10% increase in the value, rates will have an additional
reduction of 2% in the further incremental value of the agreement.
(ii) Ensure beyond 50% of the overall agreemental value, execution of work
should not be permitted without proper approval of Competent authority or
revised.. To decide whether the agreemental value will go beyond 50% as and
when 75% of the agreement has been executed, the contract should be
subjected to a detailed review and administrative decision by an appropriate
authority should be recorded in writing. Ensure monitoring of further
execution atleast at the level of JAG Officers.
1.8.13. Tenders should be finalized before expiry of validity and delay if any to be
explained by T.C. (94/CE-1/CT/4 dated 17-09-1997)
1.8.14. Late and delayed tenders and post tendered offers are to be rejected.
(71/RS (G) 777 dated 01-08-1981)
1.8.15. In case where lowest offer is rejected, full reasons should be recorded.
(68 W-1/CT/15 dated 15-07-1968)
1.8.16. T.C. should meet and deliberate on the date fixed to be recorded in TCP. No
notes or comments are to be made on files. After discussion, arrive at
recommendation, minutes to be drafted by convener at the earliest, thereafter
sent to the other members for signature. T.C. members should not refer the
case to any other official for scrutiny/comments. Time schedule prescribed for
finalization to be followed. (87/RS/G 77773 dated 06-11-1987
1.8.17 TC should examine whether the tender is identical in case of risk and cost
tenders and whenever there is delay in finalization within the time limit
prescribed, to be explained.
1.8.18. Clear reasons are to be recorded by the T.C for recommending higher rates
than accepted in the same area, a short while earlier, for the same nature of
work considering lowest rate for similar work in particular or contagious
areas, working conditions, availability and prices of materials, labour and time
lag between LAR and present. (61/W-V/LCT/41 dated 23-10-1961)
1.8.19. The following aspects are also to be examined and commented by the T.C.;
i) Examine the concerned TCPs while comparing LAR
ii) Ensure satisfaction of eligibility stipulated.
iii) Examine the rates critically including vitiation aspects.
iv) Is the response adequate?

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v) Is ring formation suspected?
vi) Clear reasons to be furnished for recommendations.
vii) Lapses in procedures at all stages.
viii) Rates reasonability and workability.
ix) Ascertain whether there are any other LAR for similar works.
1.8.20. It is not practicable or desirable to lay down hard and fast limits for
determining reasonability of rates. The tender committee is expected to
review the prevailing rates for similar works in the same area and take all
other relevant consideration into account before concluding that the lowest
rates are high. From the experience they should ordinarily be in a position to
judge whether the lowest tender should be recommended for acceptance or
rates could be brought down by negotiations.
(56/B (C) 2983 - pt dated 03-10-1961)
1.8.21. In case eligibility clause is prescribed, it is for the tender committee to
evaluate whether the tenderer satisfies the prescribed criteria.
(2000/CE/1/CT/42 dated 12-02-2001)
1.9 - Acceptance of Tenders.
1.9.1. Tender Accepting Authority (TAA) is also responsible for the acceptance of
the Tender Committee’s recommendation. However, when he disagrees with
T.C., he alone shall be responsible for the irregularities/lapses.
1.9.2. The T.A.A. to check up while accepting the recommendations whether it is
within his competency.
1.9.3. The higher level T.C. when remitted from lower level, must deal with the case
as one entity and not in piecemeal, and the tender to be examined as a whole
de-novo.
1.9.4. Only unqualified acceptance constitutes a binding contract. A conditional
acceptance requires the consent of the tenderer before binding contract takes
place.
1.9.5. In case of disagreement, the views of individual members to be recorded only
in the T.C. minutes. Even where a separate note becomes necessary, it should
be only after full discussion and this fact should be indicated thereon. It is the
responsibility of the convener to ensure that note appended is seen by the other
members before putting upto the TAA.

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1.9.6. TC’s specific observation as accepted, is to be advised to the executive.
1.9.7. Accepting authority not to call for the files or interfere with TC.
1.9.8. In case of disagreement of recommendation, TAA need not put up to next
higher authority. He should record the reasons for not accepting the
recommendation of any members of T.C.

2. ROLE OF TENDER COMMITTEE MEMBERS

2.1 T.C. essentially consists of :


1. A Technical Member, who is normally known as Convenor.
2. A Finance Member, a person from Associate Finance.
3. A Third member drawn from any other Technical Department.
2.2. THE ROLE OF CONVENOR:
He has normally full knowledge and technical know-how of work to be
executed, all special features, site conditions, specifications of the work, credential of
the tenderers, timeframe, urgency, etc. Market survey for rate analysis and
implication of special conditions, if any, are also to be evaluated by him. He must
fully brief the TC.
2.3. ROLE OF FINANCE MEMBER:
He must ensure that all tenderers have fulfilled the pre-requisite qualification
and eligibility condition, i.e.:
a) Tenders are in properly issued form.
b) Tenders are signed by authorised persons.
c) Tenders have been opened correctly.
d) All tenders are correctly filled and if there are corrections and overwritings
then they have been initialed by tender opening officials.
e) Earnest money is requisite and in acceptable form.
f) All valid tender offers are serially placed and put up in a comparative
statement along with a briefing note, duly vetted by Accounts.
g) All special conditions have been mentioned and those having financial
implications are evaluated. Conditions put forth by the tenderer if any, to be
detailed.
h) The arithmetical accuracy of the offer is ensured.

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i) A proper rate analysis has been prepared and placed on record by the
Convenor duly certified with proper facts and evidences and signed.
j) The funds position and if work is sanctioned.
k) The partnership deed and any legal issue involved is examined.
l) All special conditions having financial repercussions have been examined.
m) Consistent approach is taken in dealing with tender for all similar cases, as
he is a common member for all tenders.
2.4. ROLE OF THIRD MEMBER:
He must ensure that rules are followed in general, i.e.
a) Reasonableness of rates has been properly examined.
b) A uniform and consistent approach has been adopted in dealing with the
tender.
In cases of difference of opinion between Members of T.C., he gives his definite
opinion.
2.5. RESPONSIBILITY OF TC AS A WHOLE:
It is collective responsibility of the TC to give a definite recommendation with
full facts and reasons bringing out all the known facts, background and valid
apprehensions, which have formed the basis for its recommendations.
It must also clearly specify the authority competent to consider
recommendations of the TC.

2.6. ROLE OF TENDER ACCEPTING AUTHORITY (TAA)


2.6.1. TAA is finally and ultimately responsible for the acceptance, although the TC
is also responsible for its recommendations.
2.6.2. Therefore, TAA, while considering the TC proceedings, should examine
whether:
a) Work is essentially required and is covered by sanction and funds are
available.
b) In case of Open Tender, full opportunity has been given to all the tenderers.
This includes sufficient notice for the tender.
c) Response has been adequate, i.e. the number of tender sold vis-à-vis
number of offers received. In case of poor response, this aspect should be
specially examined.
d) Reasonableness of offers has been properly examined by the TC.

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2.7. HOW TO EXAMINE REASONABLENESS OF OFFERS?
2.7.1 Reasonableness of rates should be based on:
2.7.1.1. A current market survey with a proper rate analysis of atleast those
items, which constitute about 75-80% of the total cost, i.e. by an
ABC analysis.
2.7.1.2. The rate analysis is prepared by the Convenor but TAA must
examine whether the analysis is based on data/survey from the
market and certified properly.
2.7.1.3. Comparison of last accepted rate for items which are similar and
comparable. All such rates may be brought out and not only those,
which are favourable.
2.7.1.4. If a lower offer is being overlooked, sufficient reasons have to be
given for doing so, by the T.C.
2.7.1.5. If some adverse factors are cited for justifying higher rates, they
must be explained adequately to justify the action.
2.7.1.6. If high rates are justified on the basis of urgency, the fact should be
available on record.
2.8. DEALING WITH TC RECOMMENDATIONS:
2.8.1. The first step is to examine all the basic facts about the tender,
whether the recommendations of TC is unanimous or otherwise.
Even in case of unanimous recommendations, all the aspects about
reasonableness of rate must be examined. Any deficiency noticed
may be referred back to the same TC.
2.8.2. TAA cannot function as a rubber stamp and must apply his/her
mind independently and such application should be visible. The
acceptance or otherwise must be recorded on the body of TC
proceedings itself. In case of non-unanimous recommendations, if
TAA wants to accept either single or majority recommendation, he
should record detailed reasons for doing so.
2.8.3. TC recommendations should normally be accepted but in case
TAA rejects/modifies the same, clear cut detailed grounds and
reasons should be given for the same. It is not correct to obtain
additional details from a third person but if such details are

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considered necessary, TC should be asked to obtain them and put
upto TAA after proper examination of the same by TC members.
2.8.4. TAA should take the decision in a reasonable period of time.
Unavoidable delays should be explained.

3. TENDERS AND CONTRACTS

3.1. Malpractice in Tenders and Contracts:

The malpractice in the finalization of tenders, can be at various stages like calling of
tenders, processing of tenders and acceptance of tenders. A brief list of the same is
mentioned hereunder:-

• Splitting of work or non-clubbing of demands for the same materials and


issuing separate tenders for piecemeal work/demand to keep the value at a
particular level so as to fall within the powers of a particular
executive/purchase officer or to award to a particular class of contractors.
• By sending tender enquiries (in case of limited tenders) to only a selected set
of firms ignoring other approved firms.
• By sending limited tender enquiries to firms who are not registered/approved
for that particular item, work and classification.
• By drafting tender conditions suiting to a particular contractor.
• Publishing of advertisement in newspapers at far off places rather than the area
of demand.
• Defective tender schedule: lacunae in technical description requiring
clarifications or negotiations after opening of tenders.
• Non incorporation of complete scope and sequence of sub-activities required
for any item of schedule causing either missing sub-activity or more than once
payment of same sub-activity under different items/schedules.
• Making alterations in the quotation subsequent to opening of tenders if the
rates/conditions are not encircled and initialed by both opening officer and
accounts member.
• Basic price can be changed if the rate is not written in both figures and words
and ‘as read value’ of cuttings/over writings not indicated while opening of
tender itself.

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• Adding alternative offer when total No. of offers received while opening of
tender, not recorded on the top of tender of each case.
• Additional levies/taxes or conditions mentioned if the offer of the firm being
favoured is much lower than the next higher offer.
• Adding subsequent to opening, a clause offering discount where offer of
favoured firm is higher, so as to make it lower.
• Non-finalisation of tenders within the validity period.
• Playing with technical aspects for rejecting inconvenient bids on grounds of
filmsy technical unsuitability.
• Changing the scope of work/certain items to enable acceptance of alternative
items after repeated negotiations.
• Delay in finalization of tenders necessitating the extension of validity period
thereby discouraging the competitors to extend their validity.
• Rejection of offers on account of credentials not well substantiated
particularly when no criterion was pre laid or conclusion drawn wrongly.
• Rejection of tender on account of poor performance in a particular case while
allotting the work to the same tenderer in case of some other work.
• Acceptance of unsolicited offer from other than the lowest tenderer and
awarding of the contract without giving an equal opportunity to others.
• Placement of orders at higher rate on-

- flimsy grounds, technical or otherwise; shorter completion


period/delivery schedule but the period is extended later; and

- the excuse that the lower tenderers do not belong to a developed source,
when they might have been supplying the same materials to other
Organisation.
• Comparison of rates with selected last accepted rate overlooking lower last
accepted rate or average of last accepted rates for similar works in same or
adjacent areas. Preparing inflated rate analysis.
• Comparison of rates with selected last accepted rate with much lesser lead on
TKM basis.
• Over dependence on last accepted rates without doing independent rate
analysis.

16
• Unequal evaluation of financial impact of conditions or overlooking the
financial impact of certain conditions proposed to be accepted.
• TAA directly entering into reference with tenderers or entertaining post tender
correspondence without referring back the case with his observation for
examination of TC.
3.2. DOs

• Visit the site of work before preparation of estimates.


• Allow adequate and reasonable minimum time (as prescribed ) for opening of
a tender to encourage proper response – except in emergencies.
• Ensure timely supply of copies of approved plans for tenders where special
items/rates have to be quoted for the particular detail from the approved plans.
• Ensure that tender abstract (comparative statement) and briefing note have
been prepared and duly signed by the concerned officials on each page, with
dates.
• Consider the offers which are accompanied by requisite valid earnest money.
• Survey the market rate, consider the rebates offered by the
manufacturers/supplier on the rates quoted in the price list and make a
proper/realistic rate analysis before finalizing the estimate and tender
schedules.
• Attempt identification of sister concerns to detect ring formations - especially
in the case of limited tenders.
• Ensure consideration of reasonableness of rates in the tender committee
minutes. This should not only be with reference to previously accepted rates
but also after taking into account of market rates and analysis of rates.
• Deal the delayed/late tenders as per the extant orders.
• Ensure that the reasonableness of rates is examined critically, logically and
technically, economically, practically and specifically, both in respect of total
cost and rates of important individual items.
• Obtain views of the concerned HOD to deal with the lowest acceptable offer
of contractors with adverse reports/CR.
• Treat the TC recommendations with dissenting notes carefully.

17
• Remember negotiations should be an exception ( like where rates are
unreasonably high and re-tendering is not possible or desirable ) and not the
rule in acceptance of tenders.
• Ensure negotiating rates with lowest eligible tenderer only after getting
approval of competent authority.
• Record relevant valid reasons for overlooking the lowest offer if it is not
acceptable.
• Order calling for fresh tenders if scope as well as items are to be revised or
their value is to be enhanced.
• Incorporate contract condition with respect to wastage of materials while
return of Railway materials, those supply for consumption in work like steel
and cement and similarly those hired for executing the works (rails, girders,
wooden sleepers); and “proportionate recovery” clause for the damages caused
making it unserviceable further..
• Ensure that special conditions do not give scope for acceptance of high rates
(like mentioning steel to be supplied by the tenderers and later including
payment for such supply, which has a tendency to boost the percentage rates
quoted by the tenders).
• Ensure that the tender committee minutes contain the relevant information as
the date, venue of the meeting and dated signatures of all members.
• Record the acceptance or otherwise on the body of the tender committee
minutes only and pages correctly numbered.
• Ensure that the reasonableness of rates is examined critically, logically and
specifically, both in respect of cost and rates of important individual items,
leads involved, supplies and transportation contracts.
• Check that lowest offers are in fact so in reality and price differential for
similar but different items of schedule is reasonable, practicable and possible
one when compared to reserve price and departmental rates.
• Ensure that tender committee is only constituted of competent level of officers
specified as per extent orders nominated by appropriate level.
• Ensure that all special conditions having financial implications are evaluated
to arrive at correct inter-se position of the offers.

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• Deliberate on all the conditions made by the tenderer along with tender offer
and specific recommendation in respect of those conditions and it must be
recorded in the TC minutes.
• Consider all the relevant information available about similar items in the same
or similar/adjoining areas for arriving at reasonableness of the rates in respect
of individual items as well as total cost.

3.3. DON’Ts

• Do not prepare a vague estimate, schedule and do not split the work keeping
SOP alone in view.
• Do not split work to call separate tenders to keep the value of the work within
the powers of a particular executive.
• Do not restrict the participation of all eligible contractors by including
unnecessary/irrelevant special conditions.
• Do not send tender enquiries to only a few selected firms ignoring other
firms/contractors borne on the approved list in case of limited tenders.
• Do not draft tender conditions suiting a particular tenderer/contractor.
• Do not entertain modification to offer(s) subsequent to opening of the tenders.
• Do not reject the offers/tenders on account of poor performance while
awarding another work to the same tenderer in other cases/adjacent areas.
• Do not alter the eligibility criteria laid down while calling tender during
consideration of the offers received.
• Do not change the TC members once constituted, without prior approval of
competent authority and proper valid recorded reasons, if any.
• Do not recommend placement of orders at higher rates on flimsy technical
grounds, shorter completion period or citing discount.
• Do not consider delayed / late tenders except under specified exceptional
circumstances.(it requires RB’s approval to consider late/delayed offer)
• Do not treat the TC recommendations with dissenting notes from one or more
members of the tender committee as a unanimous recommendation.
• Do not order negotiation on the repeated advice of tender committee to invite
fresh tenders, particularly where response to the call for negotiation is poor.

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• Do not exercise the powers of the accepting authority in case you have been a
member of the tender committee.
• Do not hold negotiations with those who had either not tendered originally or
whose tender was rejected because of unsatisfactory credentials, inadequacy of
capacity or where tenders were unaccompanied with adequate EMD or any
other invalid offer.
• Do not accept open quotations (not sealed and incomplete original form) from
the contractors during negotiations.
• Do not entertain letters/representations of tenderers subsequent to the opening
or negotiation while considering of tenders.
• Do not accept modified offers, not considered by the Tender Committee.
• Do not allow subsequent revision of the TC minutes, unless the reconsidered
minutes are put up in addition.
• Do not record the acceptance /otherwise of the tenders anywhere else than the
body of the tender committee minutes. Noting side of the file is to endorse
action taken only.
• Do not advise the tender committee prior to their deliberations on the
suitability or otherwise of any particular offer.
• Do not allow anomalies in evaluation of special conditions to affect the
acceptance of the offer recommended.
• Do not operate/incorporate any new non-schedule items without sanction of
the competent authority. In exceptional cases where it has to be done,
maintain necessary site records.
• Do not award works or quotations in a routine manner and strictly following
the annual financial limits laid down.
• Do not accept the individual items rates abnormally high and unworkable in
respect of major items of work in a tender.
• Do not accept a single tender received in response to a call of limited tender
unless it is very urgent and permission from competent authority (HOD) is
obtained.

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4. EXECUTION OF WORKS CONTRACTS

4.1. Malpractices or irregularities committed during execution of works:

4.1.1.Earthwork:

• Non establishment of continuous relative Bench marks with accurate


error free levelling instruments by check levelling and non-closure of
levelling on BM established and certified by the officer.
• Proposed longitudinal working section to be approved by the competent
authority with proper gradients as per standards.
• Incorrect recording of initial levels. Not recording initial levels in ink,
enabling tampering of the same.
• Not ensuring test check (i.e. recording of levels afresh) of 100%
longitudinal levels and not less than 20% of cross levels in an earth work
contract by ADEN/AXEN upon which JAG officer should conducst
20% test check at random.
• Intentional delay in plotting and inking of initial cross sections and in
turn allowing the execution of works to start before plotting and signing
of initial cross sections with required proposals (cutting/ filling/
widening /cess making) marked therein.
• Wrong classification of soil/rock in cuttings.
• Recording inflated measurements for on-account bill involving advance
payments.
• Allowing earth being taken from railway land and paying against items
of earth work from private land (i.e. contractor’s own earth).
4.1.2. Building and structural works:
• Changing the scope of work to increase the quantities of profitable items
and decrease the quantities of losing items.
• Issue of excess quantities of critical items like cement and steel -
amounting to unintended advance without proper assessment as per
approved drawings.
• Supplying large quantities of tools and plant, equipments not provided
for in the contractual conditions and pending recovery of hire charges till

21
last on-account or final bill and non-returning of such materials by
contractor.
• Delay in making payment for the work executed thereby harassing the
contractor to extract money.
• Accepting the supply of substandard materials by contractor.
• Deputing departmental labour in the scope of work of the contractor in
the name of progress/urgency without observing the formalities with the
contractor viz. taking request from the contractor debiting the cost of
labour or issuing the proper notice to the contractor.
• Arranging material from out station to the site of work (at the cost of
Railway) thereby benefiting the Contractor by way of transportation cost
to the site and helping in loss items.
• Fake payments specially in Zonal works.
• Use of weaker mixer of mortar and concrete to misappropriate Railway’s
cement as well as pay for contractor’s cement.
• Execution of work with lesser thickness or depth than that provided in
the approved drawings or paid for.
• Use of under size rolled steel sections for fabrication works.
• Use of undersize or lighter sections of water supply and sanitation pipes
and fittings.
• Acceptance of uneconomical mix design and failure to upgrade the mix
design based on actual field results of tests on the ingredients like
gradation , specific gravity.
• Keeping some weigh batcher and not adopting weigh batch properly.
• Acceptance of unlimited scrap returns (i.e. misuse of food material into
invaluable scrap pieces).
• Excessive material consumption in foundations.
• Improper/inadequate records of piling operations and material
consumptions and inadequate length of liner driven.
• Sanctioning of interest free advances without provision in the contract
itself.

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4.2. DOs for building works, earth work and concrete works:

4.2.1.General:

• Visit the site of work with the contractor and draw the plan of action/execution
before commencing the work and closely monitor the progress of work.
• Open the site/field register and record the day-to-day progress of work in it.
• Inspect the materials, record the data of inspection results in the field/site
register and allow only correct/standard materials for execution.
• Record the correct measurements in the Measurement Book at site.
• Ensure to collect the drawings of works to be executed.
• Reply promptly to all sorts of queries raised by the contractor in time.
• Avoid unnecessary correspondence with the contractor and do make valid
timely correspondence by competent authority.
• Ensure good workmanship by proper supervision especially for the items for
which subsequent verification of quality and/or quantity is not possible.
• Keep proper accountal of cement and other Railway materials issued to the
contractors at the site of work.
• Ensure inspection and passing of materials supplied by contractors on through
rate contracts before these are used in work. Maintain proper records of the
work /items not possible for subsequent verification.
• Keep proper accountal and classification of released materials.
• Issue materials to the contractors only through authorized agents and control
the issues commensurate with the progress of actual work at site .
• Maintain necessary records at site as well as at Divisional Office, as required
based on the instructions contained in the Engineering Code, relevant manuals
and instructions issued from time to time.
• Ensure prior sanction of competent authority before executing additional
quantities (beyond 50%) in each item (overall for earth work) so that the
contracts are not vitiated. .

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4.2.2.Earth work:

• After taking initial levels by the AFDEN/AXEN and field officials, the
original machine numbered level books may be handed over to
DEN/Dy.CE/Sr.DEN’s Office for safe custody to avoid possibility of
manipulations.
• Based on the initial levels, layer diagram shall be prepared for each cross
section which should indicate the number of layers of prescribed thickness to
be provided during the actual execution duly considering extra width, berm,
etc. additional 50 cm. wide.
• Width of embankment for each layer of earth work shall be worked out and
proper marking given to ensure compaction of entire width of layer. Any
mistake at this stage would lead to inadequate bank width and steeper side
slopes, which are difficult to rectify and patch up later.
• While sending samples for initial approval of quarry, samples shall be
collected in the presence of Railway officials. Also all details necessary to
identify the location of quarry like survey number, name of village, name of
the owner etc. shall be available on record.
• If there is a change in the type of soil in the quarry, tests shall be conducted for
MDD& OMC afresh before using the same.
• Ensure dressing of side slopes of embankments to the prescribed slopes before
passing final bill, even if the cross section provided is larger than the required
section, as the un-compacted/steep slopes are more prone for rain cuts, some
times which may extend even into the standard cross section.

4.2.3. Concrete works:

• Conduct trial mix for the mix designs submitted by the agency and check for
the adequacy of workability, especially in the case of PSC /RCC works for
which water cement ratio is comparatively small. If the slump is inadequate,
mix shall be re-designed with/without admixer.
• Ensure quality of concrete works by (i) conducting prescribed tests on all
materials periodically (ii) ensuring proper gradation of aggregates (iii)
ensuring proper control in measurement of ingredients especially water (iv)

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proper non-leaky shuttering arrangement (v) providing proper construction
joints only at appropriate places after each lift of concrete by removing the
laitance concrete by wire brushes and (vi) curing for the prescribed period.
• In the case of Zonal contracts for maintenance, work orders shall be issued to
the contractors well in time for the value of agreement.

4.2.4. Measurements:

• Record levels on machine numbered level books only


• Carry out prescribed test checks of measurements at all appropriate levels
(Asst. Officer and JAG Officer) paying particular attention to the hidden
measurements. Quality should also be tested.
• Ensure by inspection, correct thickness of items payable on ‘area
measurements’ such as slabs, flooring, premixed road carpet, wood work etc.
Test check must cover this aspect also.
• Ensure deduction of prescribed shrinkage/voids in earth work and loading
contracts as per conditions both during on account and final payment.
• Ensure recovery at penal rates for excess consumption of cement and steel as
per terms of contract.

4.2.5. DON’Ts

• Don’t allow passing of CC IVh/Vth bill of earth work without detailed


measurements.
• Don’t allow time extensions under Clause 17(2) and 17(3) when contractor is
at fault.
• Don’t pass escalation bills including payment/refund of taxes without taking
into account all relevant contract conditions and price variation clauses
stipulated..
• Don’t pay longer leads without physical verification and preparing a lead
diagram for this purpose.
• Don’t endorse test check certificates without putting dated initials against
individual identifiable items of works. There should be enough evidence of
having the test checks done for quantity and quality.

25
• Don’t allow recoveries on account of use of departmental machinery by
contractors to be accumulated upto the final bill.
• Don’t allow execution of works without proper sanctioned work order except
in special circumstances and obtain sanction of appropriate authority promptly
in advance.
• Don’t allow execution of partly left over work by another agency before
taking final measurements of earlier contract and getting them accepted both
by the old and new contractors.
• Don’t permit use of substandard materials.
• Don’t allow the contractor to first execute only those items considered more
profitable by him at his discretion so that contractor’s interest in completing
the whole work remains vague (indefinite).
• Don’t authorise issue of materials to subordinates of other Departments unless
approved by their controlling officers.
• Do not execute the schedule of items in excess of the scheduled quantities
without approval of the competent authority.
5. Ballast supply
5.1.1.Malpractices in supply of ballast:
• Materials supplied not as per the specification.
• Justification of higher rates based on unrealistic leads.
• Undulating stacking ground - area near toes of stack intentionally dressed
down to get higher measurements.
• Artificial tunnels made in boulder stacks.
• Camouflaging of bad quality/oversize materials by covering with proper size
materials.
• Minimum height specified for stacks not maintained.
• Collection of non-representative samples of ballast for screening and
recording lesser percentage of oversize/undersize.
• Duplicate measurements of same stacks by not removing the stack or partial
removal and dumping fresh supply over the same stack.
• Tendency of making ballast stack tops of concave surface.

26
5.1.2. DO’s
• Ensure proper levelling of stacking ground with good drainage duly certifying
ground level.
• Satisfy generally that artificial tunnels (specially in case of boulder supplied )
have not been left inside the stacks.
• Ensure minimum height of stacks prescribed in specifications or contract
conditions. The height of stack shall not be less than 1 metre except in hilly
areas where it may be 0.5 metres. Also, the height of stack should not exceed
2 metres.
• Ensure that the top width of stack should not be less than 1 metre.
• Ensure that the top of stack should be kept parallel to the ground plane.
• Ensure that the side slopes of stacks should not be flatter than 1.5:1
(Horizontal : Vertical).
• Ensure that the cubical content of each stack should normally not be less than
30 cubic metres in plain areas and 15 cubic metres in hilly areas.
• Watch against artificial depressing of ground levels at ballast stack corners.
• Guard against camouflaging of bad quality/oversize ballast in the stacks.
• Ensure deduction of prescribed shrinkage/voids from the stacks as well as all
types of wagon measurements /quantities.
• Do test checks of quantities and quality (both physical and mechanical) of
ballast before accepting supplies.
• Indicate the approximate quantity of ballast below the stack measurements in
the measurement book.
• Use prescribed sieves and do proper sampling.
• Ensure preparation of challans before dispatch of wagons.
• After each loading indicate the approximate balance quantity in each stack and
after unloading indicate balance quantity in wagons.
• Ensure wagon measurements at the destination before unloading in the track.
5.1.3. DON’Ts
• Don’t allow simultaneous collection and training out from the same area.
Follow Railway Board’s instructions as per letter No.91/CE-II/MB/3 dated 10-
9-93.

27
• Don’t allow concave tops in a ballast stack. Have it rectified before
measurements.
• Don’t depend upon visual inspection to assess oversize ballast.
• Don’t accept dust beyond the specified percentage in the contract.
• Don’t enter ballast stack measurements directly from ballast registers without
100% physical verification at site.
• Don’t allow dumping of ballast into the track in case of supplies along the line
until clearance from Sr.DEN/DEN/XEN has been obtained as prescribed.
Follow Railway Board’s instructions as per letter No.91/CE-II/MB/3 dated
10.9.93.
• .
6. Piling work )bored and driven cast in situ pile works)
6.1.DOs
• Ensure the weight and outer dia of the hammer is within the tolerance limit
specified in IS 2911.
• Ensure the outer/inner dia of casing pipe is within the tolerance limit specified
in the IS 2911.
• Check the verticality of the bore at frequent interval and record the same in the
bore/pile register within tolerance prescribed.
• Secure samples from bore for change of soil strata and preserve the same in
the order of bore log and recorded, initialled, levelled for reference in future
and for record of HQrs.
• The depth of required founding strata reached should be compared with the
initial trial bore depth for eliminating the possibility of founding on isolate
boulders.
• In the case of end bearing piles, the advancement of bore in founding strata is
to be monitored for a specified time interval to ensure the hardness apart from
collecting sample.
• The cover blocks shall be made of cement concrete of same proportion as used
for the pile. This shall be cast well in advance and cured properly before use
to avoid crushing during erection of reinforcement cage.
• The reinforcement cage shall be fabricated so that it is rigid and the length
shall be restricted according to the height of tripod to avoid force lowering

28
which may cause collapse of bore as well as cage (provide inner rings outer
rings welded properly to keep intact position of reinforcements.
• Ensure bore is passed for concreting at the level of not less than Asst. Officer.
• Just before starting the concreting, do flushings continuously keeping the
tremie end upto the bottom of bore.
• In the case of driven cast in situ piles, ensure the set calculation is approved
by higher authorities Proper record of weight of Hammer, dropping, height,
no. of blows of penetration for three consecutive 25 blows.
• Ensure that tremie pipe is always inside the concrete by atleast 1 m.
throughout during concreting till completion.
• Check the actual cement consumption Vs. theoretical consumption and record
the same in the concrete register when removing the tremie pipe in the case of
tremie pipe concreting/under water concreting.
• Ensure the slump of the concrete between is 150 mm to 180 mm.
• Ensure proper overflow of concrete.
• Ensure the chemical composition of MS liner and bend test are conducted
confirming to relevant IS Code if the same is left in the bore permanently.
7. PSC Works
7.1. DOs
• Ensure that HTS wires /tendons are procured from authorized/established
firms as stipulated in agreements.
• Ensure that contractor produces manufacturer’s test certificate, bill copy,
voucher, etc. Indicating Batch No., Coil No. etc of the material, along with
supply of HTS wires.
• Ensure that HTS wires/tendons are tested in a recognized institutions for
physical, chemical properties, 100 hours and 1000 hours relaxation tests, etc.
and are conforming to the relevant IS Specifications from specimen collected
at site.
• Send the material for testing duly collecting samples on receipt of the material
at site.
• Ensure that chemical composition test for other elements such as bearing
plates, seating, sheathing, etc. are done.

29
• Secure one master gauge for calibrating the pressure gauges used for
prestressing
• Ensure that the pressure gauges are calibrated periodically in approved
laboratory.
• Do only weigh batching for design mix concrete.
• Cast adequate no. of concrete cubes as specified in the IS Code specifications
for concreting works.
• Cast cement cubes at the time of grouting the cable.
• Ensure that at the time of prestressing, the elongation at various stages are
measured.
• Maintain elongation Vs. load chart for each cable of prestressing and ensure
that the cables are stressed only in straight line of stress line curve (i.e. in
elastic range).

8. Painting of girder bridges


8.1.DOs
• Ensure paints to be used are of approved manufacturers and conforming to
relevant IS standards.
• Ensure proper time intervals between subsequent coats.
• Ensure that the supplier furnishes the required test certificate from approved
test houses/labs.
• Ensure that the labels on the containers indicate complete information
regarding date of manufacturing, Batch/lot number, IS specification, etc.
• Ensure that samples are sent for testing on recognized labs on receipt of paints
at site.
• Ensure that paints are used within the prescribed shelf life.
• Ensure that first coat of painting is done only after the surface preparation and
approved by suitable railway bridge authorities/bridge inspectors/site
supervisors at correct atmospheric conditions (not in moist weather condition).
• Ensure that materials such as spirit or turpentine for mixing, use of kerosene or
diesel are strictly prohibited.

30
• Each coat of paint shall be inspected by railway authority and certified as
satisfactory before applying the subsequent coat.
• Ensure that consumption of paint vis-à-vis actual area covered for each coat
of paint is maintained separately in a Record (monitored with standard
coverage area per litre).
• Ensure that to distinguish between the first and second coats of paints:
i) a little quantity of lamp black is added to paint red oxide to obtain a darker
line to distinguish the first coat of red - oxide paint to the second coat.
ii) in the case of aluminium paint and red lead to be added for the first coat to
distinguish from the 2nd coat.
9. Track works
9.0. DOs
9.1.THROUGH PACKING WORKS:
• Record track parameters before commencing the packing.
• Record track parameters after packing.
• Record date of lifting Speed Restriction in the register.
• Ensure final RL is achieved along with packing.
• On PSC sleeper track, use only mechanical tampers for packing.
• Maintain chart/diagram if repeated through packing is involved indicating the
date of packing, etc.
9.2. THROUGH SLEEPER RENEWAL:
• Record inventory of track along with the contractor or his authorized
representative.
• Ensure inventory is test checked by ADEN.
• Ensure inventory is signed by contractor.
• Ensure that classification of released materials to be identified by
SE/P.Way/In-charge and is test checked by the ADEN.
• Ensure proper accountal of materials received and released.
• Maintain records for disposal of released materials.
• Record track parameters before and after attention.
• Maintain daily progress of TSR and through packing.
• Make entries in the sleeper register and track diagram.

31
• Relax speed restriction in stages.
• Ensure that handing over and taking over of materials between contractor and
department is done and is recorded in a register.
• Record the initial and proposed Rail level and mark the same in level pegs
fixed at interval not exceeding 30 m.
• Provide required ballast cushion with or without deep screening.
• In case of renewal of CST 9 /wooden sleepers with PSC sleeper, deep
screening and TSR may be done simultaneously to avoid repeated through
packing and lifting of track.
• Re-spacing the sleepers to be ensured in the case of change of sleeper density.
Ensure maintenance of contractor ledger for materials account.
9.3. TRR WORKS:
• Record inventory of track along with contractor or his authorized
representative .
• Identify areas for stacking released materials.
• Prepare the lead charges for trucking out new materials.
• Revise track diagram and section register after renewal.
• Maintain record of line block not permitted and not availed.
• Record daily progress.
• Ensure that in case of PSC sleeper track, renewal of rubber pad and liners are
done during TRR itself.
• Ensure that oiling and greasing of fish plates and greasing of pandrol clips are
also done along with TRR/TSR/CTR..
9.4.WELDING OF RAILS:
• Pre record the rails requiring drilling.
• Test the quality of weld as prescribed in the agreement.
• Test the quality of welding portions and time of expiry.
• Record date of welding and other particulars in welding register allow
sufficient cooling as stipulated.
• Maintain register for Consumable items like petrol.
• Maintain record for line Block availed and not availed.
• Post the details in welding register.

32
9.5.DEEP SCREEING:
• Prepare the proposed RL diagram before calling tender and assess the max.
lift.
• Collect required ballast in advance.
• Drive level pegs and mark initial and proposed level at an interval not
exceeding 30 m.
• Ensure required cushion achieved.
• Ensure that muck is levelled to make good proper cess/formation drainage.

9.6. ROAD SURFACING:


• Pre record pot holes.
• Measure soling stone and gravel by stack measurement duly deducting
prescribed % of avoids.
a. Carry out tests to ensure that the Bitumen is conforming to the standard
specifications.
b. Arrive volumetric proportion of bitumen, sand and metal for each mix
according to the capacity of mixing plant brought to site.
• Assess the theoretical requirement and consumption of bitumen in a separate
register.
• Ensure test check is done by higher authorities as per the prescribed norms.
• Ensure the required quantity of materials (bitumen, sand and metal) is brought
to site in advance and with the approval of Engineer in charge.
• Preserve the empty bitumen/tar barrel till completion of the work.
• Ensure that disposal of the barrel is done with the knowledge of the concerned
incharge of the work.
• Dump moorum and soling stones only after measurements.

10.PASSING AND PAYMENT OF BILLS


10.1. DOs
• Ensure that the recurring charges which are payable on fulfillment of
certain conditions or until occurrence of certain event, a certificate from

33
the drawing officer is forthcoming to the effect that the necessary
conditions have been duly fulfilled.
• Ensure that the expenditure has been properly and fully vouched and has
been so recorded as to render the second claim on the same account is
impossible.
• Ensure that the bill should be in original and in prescribed form.
• Ensure that the rates claimed in the bill agree with those entered in the
agreement.
• Ensure that the bill bears certificate, wherever necessary, from the
responsible executive officer that the services for which payment is passed
have actually been rendered.
• Ensure that the claim is not time barred.
• Ensure that the bill has been signed by the officer competent to sign the
same and that his/her signatures tally with those available in the record.
• Ensure that the prescribed percentage test checks are done at appropriate
levels.
• Ensure that the advance payment is released only in accordance with the
provision of contract and that such payment is adjusted while making final
payment.
10.2.DON’Ts
• Do not allow payment of rates higher than those included in the agreement
without specific competent authority’s approval.
• Do not forget to record the fact of payment so as to render a second claim
being passed for the same transaction impossible.
• Do not delay in passing Contractor’s bill.
• Do not delay refund of Earnest Money to the unsuccessful tenderers after the
tenders are finalized.
Do not fail to exercise sample check in the matter of pending items of passing of bills,
refund of Earnest Money, Security Deposit to the Contractors.

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11. ARBITRATION
11.0. Preventive measures to check tendency of inflating the claims:
• Keep an eye, watch on contractor’s tendency to create records for
unjustified claims, prompt replies bringing out factual position must be
ensured in time..
• Ensure signing of all level books. M.Bs, bills in ink and with prescribed
certificate.
• Maintain authenticated registers day to day record of actual progress,
cement and steel consumed and labour employed by the contractor at site,
machine deployed , hindrance in working, etc.
• Proper record of reinforcement as actually provided including laps/cut
pieces etc. to be maintained.
• Refute all vague or wrong allegations for holding up the progress of work.
• While granting extension of completion time, clearly mention in the letter,
the reasons accepted/repudiated and the extent to which accepted vis-à-vis
contractor’s letter for extension of time.
• Do not leave any procedural or legal lacunae in the process of finalization
or termination of contract.
• As soon as some dispute arises and the tendency of the contractor to go for
arbitration is noticed all basic records like level books, cross sections,
M.Bs., correspondence file, sites records should be sealed and kept under
custody of a responsible officer.
• Detailed programs /revised programs for execution of work should be got
signed by the contractor and kept on record.
• Record of actual progress of work should also be available duly signed by
contractor at regular intervals during the course of work execution.
• Ensure that proper numbering or folio numbers are given to each letter,
particularly at the time of transfers, closing the file or when reference to
arbitration is anticipated so that it is impossible to remove any crucial
letter that are in favour of Railways.
• Ensure monthly statement of claims as per Clause 43(1) of GCC. If
contractor does not submit then the executive should ask for it every
month. Repudiate the claims not submitted as above in arbitration.

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11.1. Measures to avoid contractual problems:
• Proper professional and courteous attitude on the part of both the parties.
• Clear knowledge of all contract conditions, rules and orders.
• Adequate pre-contract planning leading to a fair, accurate tender, specially
scheduled items, descriptions, quantities, specifications, special conditions
drafted to be realistic.
• Selection of an appropriate contractor.
• Refrain from making changes in the scope of the work, specifications,
conditions after entering into contract.
• Alertness and fairness in the administration of the contract, especially
avoidance of oral instructions and instructions outside the scope of the
contract.
• Maintain minimum and neat correspondence and proof of delivery.
• Maintain proper records and register with signed acknowledgements in
site orders.
• Ensure quick response to Contractor’s letters, e.g. giving decisions.
• Do not allow potential claims by refuting mischievous statements and
allegations.
• Timely fulfillment of Railway’s obligations like:
 land
 issue of drawings.
 issue of materials
 payments, etc. as per contract conditions.
• Ensure that files are handled by minimum but reliable staff.

11.2. Measures to avoid Arbitration:


As per laid down procedures, tenders should be called after approval of
drawing, estimate and also clearance of site.
(a) During Tender Stage:
i) Drafting of Special Conditions related to work.
ii) Assessment of correct quantity, as per Drawing/Estimate.
iii) Drafting of Specifications and Schedule to suit the requirement of work.
iv) Assessment of Realistic Completion Period.

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v) Assessment of PVC if completion period is more than one year.
vi) Inclusion of Railway Board circulars applicable for the work.
vii) Timely finalization of tender.

(b) During execution stage:-


i) Ensure timely commencement of work.
ii) Handing over site immediately after issue of Letter of Acceptance, issue of
approved / full set of drawings in time officially, with proper
acknowledgement.
iii) Collecting signed programme from contractor whenever warrants.
iv) Monitoring of progress as per programme submitted by the contractor.
v) Compliance of specifications of Works and Materials, by conducting tests.
vi) Maintaining various registers and records.
vii) Removal of obstacle/hindrance below G/L and throughout the period of
work.
viii) Processing of new items before execution.
ix) Prompt reply to contractor’s letters.
x) Timely measurement and payment.
xi) Making FCC and closing agreement after obtaining NOC.

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