GOVERNMENT OF ANDHRA PRADESH WATER RESOURCES DEPARTMEN From To, Sri K.Srinivas, M.Tech, MIE, MIGS All the members of Engineer-in-Chief (Admin), Board of Chief Engineers. Water Resources Department, & Chairman, Board of Chief Engineers, D.No.48-10-9/1,NH Feeder Road, Currency Nagar, Vijayawada - 520008 Lr. No. RC/ENC(AW)/ADA/AEE/24686/Vol.XI /2018 _Dt,10-01-2019 Sir, Sub: BOCEs - 11" Meeting of Board of Chief Engineers’ during the year 2018, held @ 03.00 P. M on 27-12-2018 in the Conference hall of the (Admin), Water Resources Department, 1° Floor, Engineer-in-C Currency Nagar, Ramavarappadu, Vijayawada - Minutes of the meeting communicated -Regarding. It is to inform that the Minutes of the 11" Board of Chief Engineer's meeting during the year 2018 held @ 03.00 P. M on 27-12-2018 in the Conference hall of Engineer-in-Chief (Admin), Water Resources Department, Vijayawada are placed in the Water Resources Department official web site i.e ‘www. ni 101 All the members are therefore requested to download the same and take further necessary action. Encls: As stated above Yours faithfully Sd/-K.Srinivas, Dt.10-01-2019 Engineer-in-Chief (Admin) Water Resources Department & Chairman, Board of Chief Engineers Al Chief (Admin)MINUTES OF 11° BOARD OF CHIEF ENGINEERS MEETING HELD ON 27.12.2018 @ 3.00 P.M, IN THE CONFERENCE HALL OF ENGINEER.IN- CHIEF(A.W/LW) PERTAINING TO AGENDAS 2,3 AND 4. At the outset, the Engineer-in-Chief(IW) & Chairman, Board of Chief Engineers has welcomed all the Engineers-in-Chief, Chief Engineers of Engineering Departments to the Board of Chief Engineers meeting to discuss on the agenda items. The list of members attended the meetings are appended vide Annexure-l. The Engineer-in-Chief (AW/IW) initiated the discussions. A :2_ Implementation of Pre-GST machinery hire charges for all the ongoing works as on 01-07-2017 or thereafter for which agreements were concluded based on estimates sanctioned with subsumed tax element included The Engineer-in-Chief, R&B Department, while enclosing the Builders Association of India (BA) representation dt: 04.12.2018, had informed, vide his Lr. No. R&B Dep/ ENC/ DEC(RY/ EE(TEC/ DEE7/ AEE2/ 2018 dt06.12.2018, that the Pre-GST machinery charges were restricted for the agreements that were concluded before 01.07.2017 only as per G.O.Ms.No.118, WR(Reforms) Dept dt09.11.2018 and requested to extended the implementation of G.O for the works estimates prepared with SoR 2016-17 and previous years & 2017-18 with VAT @ 5% irrespective of date of agreement. Further, it is submitted that the Goods and Service Tax came into force from 01 07-2017 onwards. In order to implement the GST Act, the Goverment of Andhra Pradesh has issued instructions vide Government Memo No. 47027/ 297/ 2017, Finance(WR.!) Department, dt. 13-09-2017. Accordingly, the Board of Chief Engineers had revised the SoR 2017-18 with bastc material rates after deducting the subsumed taxes from the approved rates of SoR 2017-18 and republished as Reformulated SoR 2017-18 in the Water Resources Department website with the proceedings dt. 13-10-2017 with instructions to field staff to arrive Revised Estimates for the balance works pending after 01-07-2017 with the above finalized rates with the relevant Reformulated SoR and to conclude Supplemental agreements with the executing agencies, Subsequently, the Government have issued guidelines for implementations of GST vide G. O. Ms. No. 58, Finance (WRI) Dept, dt. 08-05-2018.Based on the above said G.0., the BoCEs had revised the SoRs 2009-10 to 2016-17 with basic material rates after deducting the subsumed taxes and the same were published in the Water Resources Department in the form of Reformulated SoRs. Meanwhile, based on the representation of Builders Association of India(BAl), after detailed discussions, the BoCEs recommended to the Government for implementation of Pre-GST machinery rates for the ongoing works for which agreements were concluded prior to 01-07-2017. The Government have issued 6.0. Ms. No. 118, Water Resources (Reforms) Dept, dt, 09-11-2018, allowing the Pre-GST machinery rates for all the ongoing works as on 01-07-2017 which are continued after 01-07-2017 for which agreements were concluded before 01-07-2017. The Builders Association of India(BAl), in turn, have submitted a representation to Engineer-in-Chief(R&B) with a request to consider the implementation of Pre-GST Machinery rates for all the agreements concluded prior to enforcement of the Reformulated SoR 2017-18 with a request to implement the Go Ms. No. 118 WR(Reforms) Dept., dt. 09-11-2018 for all the works agreements concluded with VAT @ 5% ie, prior to the enforcement of estimates with Reformulated SOR 2017-18. With the above representations by BAI, the Engineer-in-Chief(R&B) had requested the Engineer-in-Chief (Admn), Water Resources Dept, to place the above issue before BoCEs for taking further necessary action. The same is placed before the Board of Chief Engineers for discussion and appropriate recommendation on the matter. “The members have discussed the matter in detail and examined the proposal of Builders Association of India (BAI) submitted by Engineer-in- Chief(R&B). After detailed discussions, it is observed that the proceedings for issue of Reformulated SoR 2017-18 (ie, basic material rates exclusive of subsumed taxes) was issued on 13-10-2017. Further, it is observed that In between the period of date of implementation of GST and the issue of proceedings for Reformulated SoR 2017-18, agreements were concluded with the estimates prepared with SoRs having subsumed taxes included.In view of the above, the BoCEs have opined that it is reasonable to extend the G.O. Ms. No. 118, WR(Reforms) Dept, dt. 09-11-2018 for the agreements concluded after 01-07-2017(te, date of implementation of GST) with estimates prepared with SoRs having subsumed taxes included for the reason that there were no proper instructions and guidelines on implementation of GST Act in work contracts during the transition period and the agencies quoted their rates based on the then prepared estimated rates. Finally, the BoCEs have recommended fot issuing amendment for the G.0. Ms. No. 118, WR(Reforms) Dept, dt. 09-11-2018, duly allowing the Pre- GST machinery hire charges for all the ongoing works as on 01-07-2017 or thereafter for which agreements were concluded based on estimates sanctioned with subsumed tax element included” Action: Engineer-in-Chief, Admn, WR Department Agenda:3 Allowing the Contractors Profit_and Overhead charges on subsumed taxes for all the ongoing works as on 01-07-2017 or thereafter for which agreements were concluded based _on estimates sanctioned with subsumed tax element included. The Engineer-in-Chief, R&B Department, while enclosing the Builders Association of India (BAI) representation dt: 04.12.2018, had informed, vide his Lr. No. R&B Dep/ ENC/ DEC(RY/ EE(TEC)/ DEE7/ AEE2/ 2018 dt06.12.2018, that the Pre-GST machinery charges were restricted for the agreements that were concluded before 01.07.2017 only as per G.O.Ms.No.118, WR(Reforms) Dept dt09.11.2018 and requested to extended the implementation of G.O for the works estimates prepared with SoR 2016-17 and previous years & 2017-18 with VAT @ 5% irrespective of date of agreement. Further, It is submitted that the Goods and Service Tax came into force from 01- 07-2017 onwards. In order to implement the GST Act, the Government of Andhra Pradesh has issued’ instructions vide Government Memo No. 47027/ 297/ 2017, Finance(WR.l) Department, dt. 13-09-2017. Accordingly, the Board of Chief Engineers had revised the SoR 2017-18 with basic material rates after deducting the subsumed taxes from the approved rates of SOR 2017-18 and republished as Reformulated SoR 2017-16 in the Water Resources Department website with the proceedings dt. 13-10-2017 with instructions to field staff to arrive Revised Estimates for the balance works pending after 01-07-2017 with 8the above finalized rates with the relevant Reformulated SoR and to conclude Supplemental agreements with the executing agencies, Subsequently, the Government have issued guidelines for implementations of GST vide G. 0. Ms, No. 58, Finance (WR.!) Dept, dt. 08-05-2018. Based on the above said G.., the BoCEs had revised the SoRs 2009-10 to 2016-17 with basic material rates after deducting the subsumed taxes and the same were published in the Water Resources Department in the form of Reformulated SoRs. The Builders Association of India(BAl), have submitted a representation to Engineer-in-Chief(R&B) with a request to consider a methodology to implement GST for works agreement concluded with VAT so as to deduct the eligible subsumed taxes without altering the parameters of OH & Contractors Profit committed earlier, since the Overhead charges are to be borne by the contractors remain the same both in pre and post GST era. With the above representations by BAI, the Engineer-in-Chief(R&B) had requested the Engineer-in-Chief(Admn), Water Resources Dept, to place the above issue before BoCEs for taking further necessary action, The same is placed before the Board of Chief Engineers for discussion and appropriate recommendation on the matter. The members have discussed the matter in detail and examined the proposal of Builders Association of India (BAI) submitted by Engineer-in- Chief(R&B). After detailed discussions, it is observed that the proceedings for issue of Reformulated SoR 2017-18 (Le, basic material rates exclusive of subsumed taxes) was issued on 13-10-2017. Further, it is observed that In between the period of date of implementation of GST and the issue of proceedings for Retormulated SoR 2017-18, agreements were concluded with the estimates prepared with SoRs having subsumed taxes included. In view of the above, the BoCEs have opined that it is reasonable to allow the Contractors Profit and Overheads on subsumed taxes for the agreements concluded after 01-07-2017 with estimates prepared with SoRs having subsumed taxes included for the reason that there were no proper instructions and guidelines on implementation of GST Act in works contracts during the 4transition period and the agencies quoted their rates based on the then prepared estimates. Finally, the BoCEs have recommended to allow the Contractors Profit and Overhead charges on subsumed taxes for all the ongoing works as on 01-07- 2017 or thereafter for which agreements were concluded based on estimates sanctioned with subsumed tax element included. ~ , Action: Engineer-in-Chief, Admn, WR Department Agenda:4 : Request of the Engineer-in-Chief(R&B), SH& Managing Director, APRDC, Vijayawada for adopting the block period of 10 years instead of 5 years for Long Term Performance Based Maintenance Contracts(LTPBMC) works-Request to place the matter in BOCEs and furnish the report to the Government. The Government, vide memo No. ICD01-COOROMISC/2/2018 WR(Reforms) Dept dt:06.11.2018, while enclosing the proposal of Engineer-in-Chief(R&B), SH & Managing Director, APRDC, for adopting the block period of 10 years instead of 5 years for Long Term Performance Based Maintenance Contracts(LTPBMC) works, have requested the Engineer-in- Chief(IW), WR Dept., to place the matter in Board of Chief Engineers and furnish the recommendations of BoCEs to the Government for taking further necessary action. The Engineer-in-Chief(R&B)SH& Managing Director, APRDC, in his letter, has submitted to the Government that the proposed 38 packages for a length of 4758 Km in all 13 districts are identified for maintaining roads under Long Term Performance Based Maintenance Contract System (LTPBMC) with contract period of 5 years. In order to meet the qualification criteria as per the G.O.Ms.no 94 (je the experience gained by the bidder uring the last five years is being considered in case of similar works, physical quantities, Bid ‘Capacity etc)many of the agencies are not meeting the above criteria. Further, the Engineer-in-Chief(R&B) SH& Managing Director, APRDC, has also submitted that formerty, the Government, R&B Department, vide memo no.1351/R.1(2)/2014 dt:08.12.2014, have issued orders, for better participation of tenders for bridge works, by considering last 10 years experience in the bidding process, instead of 5 years experience, in respect of bridge works in R&B Department.In view of the above, the Engineer-in-Chief(R&B)SH& Managing Director, APRDC has requested the Government for adopting the block period 10 years for LTPBMC works instead of 5 years. In this context, the Government has requested this office to examine the matter and furnish the recommendation of BoCEs to the Government. The same was discussed in the BoCEs meeting held on 22.11.2018, the members after detailed discussions have opined that the above relaxation may be extended to all the Departments and requested the members to come up with proper suggestions. The proposal is placed again before the Board of Chief Engineers meeting held on 27.42.2108. The members have discussed the matter in detail and observed that the proposal of EnC(R&B), SH & Managing Director, APRDC for adopting block period of 10 years instead of 5 years for the works of maintaining of roads under Long Term Performance Based Maintenance Contract System(LTPBMCS) with contract. period of 5 years is reasonable in order to enable many of the executing agencies to meet the eligibility criteria and hence the BoCEs recommend to Government to allow the block period of 10 years instead of 5 years for similar nature of works for the LTPEMCS works and directed the Engineer-in-Chief(R&B), SH& Managing Director, APRDC to act accordingly. we Action: Engineer-in-Chief, R&B Department, SH & Managing Director, APRDC 4\\\\ 9) Engineer-in-Chief(Admn),'WR'Dept., & Chairman, BoCEs Water Resources Department,ANNEXURE- I MEMBERS PRESENT TO THE 11" BOARD OF CHIEF ENGINEERS MEETING DURING THE YEAR 2018 HELD AT 3.00 PM ON 27-12-2018 IN THE CONFERENCE HALL OF ENGINEER-IN-CHIEF(Admin), WATER RESOURCES DEPARTMENT, CURRENCY NAGAR, VIJAYAWADA. S.No | Name of the Engineer- in | Designation -Chief / Chief Engineer | 1 Sri.K.Srinivas | Engineer-in-Chief(Admin), | L Chairman of BOCEs, W R Dept. {2 Sri.K.Srinivas ~~ | Chief Engineer, CDO, WR Dept, | Vijayawada. Sri.K.Varada Rajulu Chief Engineer, H.R.D 4 Sri. T.V.N-A.R Kumar Chief Engineer (Hydrology) 5 Sri.R.Muralinath Reddy Chief Engineer, NTR TGP, Tirupati 6 Sri.Ch.V.Soma Sekhar Chief Engineer, R&B MDR 7 | Sri.P.Sreemannarayana Chief Engineer , NABARD 8 Sri K. Nayeemulla Chief Engineer (R&B), Building & RSW 9 Sri M.Sreemannarayana Chief Engineer APTIDCO 10 | Sri R.G. Krishna Reddy Chief Engineer APTIDCO | | i1 ‘Sri.B.Raja Gopla Rao Chief Engineer, A.P.Housing Board |