GUIDELINES

ON

CONSTRUCTION PROJECT
MANAGEMENT

APRIL 2019
 FOREWORD

1.0 RITES has been handling Project Management Consultancy assignments for the
past few decades. While some of the Clients, particularly Government Departments
and Public Sector Undertakings, insist upon RITES adopting the Tender Document
and Contract Management procedures of specific organizations such as that of
Railways, CPWD, State PWD, MES, World Bank etc, there are also cases of Clients
leaving it to RITES to decide on the documentation and procedures.

2.0 The need to have well documented Guidelines in an organisation to execute its
construction activities in a uniform and well coordinated manner with least time and
cost over-runs cannot be over emphasised. Such Guidelines are required to guide
officials in their day to day work, so that there is systematic and uniform approach in
decision making. The purpose behind issue of these Guidelines is to bring uniformity
in dealing with various aspects of Project/Contract Management by all the Project
Offices. The Guidelines on Construction Project Management were first issued in
2005 and revised in 2009, 2011 and 2015. The 'Guidelines 2019' is the revised
edition of ‘Guidelines 2015’.

3.0 Since the issue of Guidelines 2015, a number of amendments/new clauses/new

paras have been incorporated by way of issue of circulars/correction slips. RITES
Standard E-Tendering Document was thoroughly revised and issued in April, 2018.
The GCC for Works is under revision. A number of circulars have also been received
from CVC. All these changes that have taken place since the publication of 2015
edition have been considered and suitably incorporated in the Guidelines 2019.

4.0 These Guidelines have been made out generally on the basis of CPWD Works
Manual 2014 but also incorporate good practices in the Manuals/Instructions of other
major organizations like Indian Railways, World Bank, Military Engineering Service
etc. A few examples in this context are given below. These are only illustrative in
nature and do not cover all such items.

(i) Contract Documents of World Bank, CPWD and Indian Railways provide for
Pre-qualification Criteria different to what has been indicated in this
Guidebook.

(ii) World Bank does not provide for any negotiations even with the lowest
tenderer.

(iii) In the Indian Railways Contract Documents, the practice is to go in mostly for
Percentage Rate Tenders in place of Item Rate Tenders.

(iv) In CPWD Contract Documents, there is no provision for a Tender Committee.

5.0 These Guidelines do not, however, supersede specific provisions, if any, in the
Contract Documents. Where on any issue, specific instructions exist in the Contract
Documents, they will take precedence over the provisions in these Guidelines, but
the provisions in Contract which give full powers to the Engineer-in-charge in dealing
with the Contract would not override the internal powers of authorities competent to
take decisions in various matters vis-à-vis Engineer-in-Charge.

i
6.0 Revised Standard E-Tendering Document 2018 has been issued separately. Where
the Client leaves it to RITES to adopt its own set of Tender Documents, these
Documents should be adopted and the Guidelines will be fully applicable in such
cases. In other cases where the Client insists on adoption of other Standard form of
Tender Documents such as of Indian Railways, World Bank, MES etc., the
Guidelines should be followed subject to the stipulation that the provisions, if any, in
the Contract Documents on any specific aspect of Contract Management will
supersede the corresponding provisions in these Guidelines.

7.0 The Guidelines are divided into 29 Sections with Annexures kept at the end.
Annexures have been numbered separately for each Section and reference has also
been given therein to the corresponding Para number. Important modifications made
in Guidelines 2015 and incorporated in these Guidelines, are attached.

8.0 The attention of RITES SBU Heads who will be involved in entering into Agreements
with the Clients for Project Management is specifically invited to Annexure 2.1 of the
Guidelines giving details of a Model Agreement between RITES and the Client in
cases where RITES acts for and on behalf of the Client as a Power of Attorney Holder
and enters into the Works Contract with the Contractor. The provisions in this
Annexure are the ideal ones and may require modification depending on the scope of
works of the assignment and the provisions in vogue in similar consultancy
agreements which the Client organization may insist on adoption.

9.0 The attention of all RITES Engineers is also specially invited to Para 1.6 of the
Guidelines on "Essential features of Good Project Management". The provisions
should be carefully gone into and efforts made to follow the same. In exceptional
circumstances where they cannot be observed in totality because of exigencies of
work, reasons for the same should be kept on record with proper follow up action.

10.0 Soft copy of this Guidelines in PDF Format is available in RITES ESS Portal. RITES
staff and officials are advised to read the Guidelines and make themselves
conversant with the Contents of the Guidelines. Same procedures will be required to
be followed in future when dealing with Addenda & Corrigenda that may be issued to
the Guidelines.

11.0 SBU Heads should organize training programmes for the Engineers in their Units so
that doubts, if any, can be got clarified.

12.0 It will be appreciated that in Guidelines of this nature, it may not be feasible to include
material to cover each and every contingency that may arise in the course of
execution of works, though efforts have not been spared to make it as
comprehensive as possible. In the event of any contingency that might arise
requiring supplementing/deviating from what is contained in these Guidelines so as
to suit the conditions on a particular project, the same may be done with the approval
of the Director Projects who is the appropriate authority in such cases.

13.0 The first edition of `Guidelines’ issued in 2005 was largely prepared by Late Shri R.
Balasubramanian, ex-General Manager, Kolkata Metro and Shri B.K.Makhija, the
then Director/Projects. They were also associated with the revised editions issued in
2007 and 2011. The December 2015 edition of ‘Guidelines’ was the result of the
efforts put in by, Shri G.V.Chanana, Advisor, Contract Policy Cell and Shri Alok
Garg, ED (B&A) and Head Contract Policy Cell who were assisted by Shri K. Murali
krishna, the then JGM/CP. This revised edition of ‘Guidelines 2019’ has been

ii
 prepared by, Shri G.V.Chanana, Advisor, Contract Policy Cell and Shri Alok Garg,
ED(HW&P/B&A) and Head Contract Policy Cell. Since updating Guidelines is a
dynamic process, Shri K. Murali Krishna, AGM/Civil assisted Contract Policy Cell till
his joining Vigilance cell in Jan 2019. No amount of words of appreciation and
gratitude to them will be adequate for the purpose.

14.0 It is sincerely hoped that the ‘Guidelines 2019’ would serve the needs for which it has
been published.

V.G.SURESH KUMAR
Gurgaon Director Projects
April, 2019 RITES Ltd.

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IMPORTANT MODIFICATIONS MADE IN THE GUIDELINES “DECEMBER, 2015”

AND INCORPORATED IN THE GUIDELINES “April, 2019”

The following are the salient changes made in the “Guidelines 2015” and incorporated in
these Guidelines.

SECTION 2

Para 2.1
In the Model Agreement between RITES and the Client given as Annexure 2.1, Sub-Article
10.5 which was inadvertently not printed, has been added to clarify that the Client shall be
the Employer under various labour laws. Further, Article 19 has been amended to provide, in
case the client is a Government Department/Organization or CPSE/State PSE, for resolution
of disputes through AMRCD in accordance with Govt. of India, Ministry of Heavy Industries &
Public Enterprises, Department of Public Enterprises OM No. 4(1)/2013-DPE(GM)/FTS-1835
dated 22-05-2018. Article 20 has been amended to include NITI Aayog’s directive to pay
75% of the amount awarded by Arbitrator/Court to the contractor against a Bank Guarantee
of the like amount.
Para 2.6
Para in connection to Article 20 of Annexure 2.1 has been added stating that it is essential to
take consent of client to pay 75% of the amount awarded by Arbitrator/Court to the
contractor against a Bank Guarantee of the like amount.

SECTION 3

Para 3.3

This para has been amended to provide that the SBU Head will allocate projects among his
senior technical officers with the approval of the Divisional Head.

Para 3.4

The desirable level of organization has been modified in view of increase in the cost of
construction since publication of the 2015 edition.

Para 3.5.1 (c)

Sub-para (xv) has been amended in the light of coming into force GST regime.

SECTION 4

Sub-paras 4.1.1 C), 4.5.1 c), 4.9.2a) i) and 4.9.4 have been amended sub-para 4.5.1(d) has
been deleted in the light of coming into force GST regime and publishing of DSR 2018
recently.

Sub Para 4.4.1 (v) has been added specifying the Contractor’s OH & Profit to be adopted in
case of DSR items adopted in detailed estimate for Track works, Highway works and Bridge
works

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Para 4.4.4: This Para has been added which deals with market rate analysis without taking
GST element on input materials and labour and applying GST on works Contract Service at
the end of estimate.

Para 4.4.5: This Para has been added which deals with market rate of Non-Schedule items
which are specialized or composite in nature and for which it is difficult to analyse/ derive the
rate as per the provisions of Para 4.4.1

SECTION 5

Para 5.1.6

The provision relating to ‘Amendments to Accepted Contracts’ has been amended requiring
financial and legal vetting of the proposal and approval of the competent authority as per
SOP.

SECTION 6

Para 6.8: Annexure 6.5

The criteria for Annual turnover for works in Normal Area and in Difficult Areas is slightly
modified to attract more competition

SECTION 8

Para 8.3.2

Sub-para (iii) has been modified and Annexure 8.5A has been added to provide for
exemption from payment of Earnest Money to ‘Startups’ due to amendment to Rule 170(I) of
GFR 2017

Para 8.3.2(iv): This Para has been added stating that The benefits under Public
Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 are applicable to
only Supply and Service Contracts.

Para 8.3.5

It has been modified to provide that in case the Tender opening Committee has any doubt
regarding the authenticity or acceptability of the instruments of Earnest Money and Cost of
Tender Document furnished by a bidder, they should open the further packets of such
bidder, putting on record the reasons for such doubt and leave the matter for deliberation by
Tender Committee and final decision of the accepting authority.

Para 8.5.3

The para has been amended to provide that the Project Co-ordinator while forwarding the
Briefing Note to the Tender Committee, should also enclose statement of market rates of
major items and peculiar situations/circumstances, if any, so as to facilitate preparation of
Market Rate Cost/Justified Amount, by the Tender Committee, if required.

Para 8.8.6

The para has been amended so as to be in sync with the amended para 8.5.3.

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Para 8.9.2.1 & 8.9.2.2

The paras and its sub-paras have been amended to modify rigid parameters of determining
reasonability and to provide some flexibility to the Tender Committee particularly in the case
of greenfield projects and Railway projects.

Paras 8.9.2.3 and 8.9.2.4

These have been modified in the light of Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order, 2012.

SECTION 12

Para 12.7.8

This para has been added to clarify about payment of escalation under Clause 10CC of
RITES GCC for Works so far as Substituted Items are concerned.

SECTION 13

Para 13.6.4

This Para has been added according to which The Engineer-in-Charge can extend the
currency of the contract reserving the right to levy compensation at a later date in the format
given at Annexure 13.2 of ‘Guidelines’ on not more than two occasions consecutively.

SECTION 20

Para 20.3

Periodic Inspection Schedule as per awarded value of contract has been modified
considering the increase in cost of construction since the last revision. In addition, sub-para
(f) regarding the details to be included in the Inspection Report, has been added.

SECTION 21

Para 6 of Annexures 21.2 relating to the extent of test checking of measurements, has been
modified.

Para 21.2.5 & Para 21.2.4A : These Paras have been added giving reference to Format of
Test Check Statement at Annexure 21.6 to be submitted along with each RA bill/Final Bill.

SECTION 22

Para 22.3.2

This Para has been added giving time lines for processing and release of the payment of
final bills to be adhered to by RITES staff in cases where RITES supervises the work and
releases the payments to contractors from fund deposited by client:

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Para 22.8 to 22.10

The Para 22.9 has been retained as Para 22.8 & Para 22.8 & 22.10 has been deleted due to
GST.

SECTION 24

Para 24.3

The Engineer-in-Charge has been designated as the authority to approve payment of all
running bills and final bill which should be processed by the Project Coordinator.

SECTION 28

Paras 28.9 and 28.10 have been added alongwith Annexures 28.1, 28.2 and 28.3

SECTION 29

Consequent upon RITES shifting to Government E-procurement system provided by NIC’s

Central Public Procurement Portal (CPPP), Section 29 has been thoroughly revised.

vii
 CONTENTS

SECTION PARA SUBJECT PAGE

NO.

1 INTRODUCTION

1.1 Preamble 1
1.2 RITES Documents 1
1.3 Integrity Pact 2
1.4 Types of Project Consultancy Assignments 3
1.5 Financial Liability of RITES 4
1.6 Essential Features of Good Project Management 4

2 CONTRACT WITH CLIENT

2.1 Signing of Contract with Client 7

2.2 Definition of Deposit Works 7
2.3 Realization of Contribution for Deposit Works 7
2.4 Execution of Deposit Works 9
2.5 Endorsement of Copies of Documents to the Client 9
2.6 Arbitration / Court cases involving Works Contractor 10

3 PROJECT ORGANISATION AND RESPONSIBILITY

FOR PROJECT IMPLEMENTATION

3.1 Organizational Set up 11

3.2 Field Organization 11
2.3 Organization at SBU Office 11
3.4 Desirable Level of Organization 12
3.5 Field Activities for which Controlling Site Engineer will 12
be responsible
3.6 SBU Office Activities for which the Project Coordinator 15
will be responsible

4 PREPARATION OF ESTIMATES

4.1 Preliminary Estimate / Abstract Estimate 18

4.2 Detailed Estimate / Technical Sanction 19
4.3 Detailed Estimate for Technical Sanction – Procedure 22
for Preparation
4.4 Detailed Estimate – Market Rate Analysis for Non- 22
Schedule Items
4.5 Detailed Estimate – Compilation 26
4.6 Technical Check of Detailed Estimates 28
4.7 Supplementary Estimate 28
4.8 Revised Estimate 29
4.9 Market Rate Analysis 29
4A 4A Preparation of Estimates for Survey/Geotech/Planning/ 31
Consultancy/Design etc.

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5 CONTRACTS AND FORMS

5.1 Definition of Contract 32

5.2 Contract Documents 33
5.3 Lumpsum Contract 36

6 PREPARATION OF TENDER DOCUMENTS AND

PUBLICIT

6.1 Tender System 37

6.2 Single Tender 37
6.3 Limited Tender 37
6.4 Contents of Tender Documents 39
6.5 Invitation of Tenders for Component Parts 41
6.6 Publicity of Tenders 41
6.7 Pre Bid Conference 44
6.8 Pre Qualification of Tenderers – Joint Ventures 44
6.9 One Packet and Two Packet Systems 44
6.10 Time Limit for Publicity of Tenders 45
6.11 Re-invitation of Tenders – Extension of Period 45

7 SALE OF TENDER DOCUMENTS

7.1 Documents to be ready in time 46

7.2 Supply of Duplicate set of Tender Documents 46
7.3 Time Interval between Sale of Tender Documents and 46
Opening of Tenders
7.4 Scale of Charges for Tender Documents 46
7.5 Supply of Drawings 47
7.6 Precautions in Sale of Tender Documents 47

8 RECEIPT, OPENING AND ACCEPTANCE OF

TENDERS

8.1 Procedure to be adopted 48

8.2 Delayed and Late Tenders 48
8.3 Instructions for Tender Opening Officers 49
8.4 Evaluation of Tenders 53
8.5 Preparation and Scrutiny of Briefing Note for Technical 54
Bids (Applicable for both Single Packet and Two
Packet Systems)
8.6 Evaluation of Technical Bids by Tender Committee 56
(Applicable for both Single Packet and Two Packet
Systems)
8.7 Opening of Financial Bids 59
8.8 Preparation and Scrutiny of Briefing Note and 59
Comparative Note for Financial Bids (Applicable for
both Single Packet and Two Packet Systems)
8.9 Evaluation of Financial Bids by Tender Committee 61
(Applicable for both Single Packet and Two Packet
Systems)
8.10 Tender Committee’s Recommendations and Action by 65
the Tender Accepting Authority

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 8.11 Purchase Preference to Public Sector Enterprises 66
8.12 Acceptance of Single Tender 66
8.13 Procedure for Conducting Negotiations 67
8.14 Communication of Acceptance of Tender 67
8.15 Time Limit for Finalization of Tenders 69
8.16 Reinvitation of Tenders 69

9 EARNEST MONEY

9.1 Necessity for Earnest Money 70

9.2 Rates of Earnest Money 70
9.3 Mode of Deposit 70
9.4 Refund of Earnest Money 70
9.5 Forfeiture of Earnest Money 70

10 PERFORMANCE GUARANTEE AND SECURITY

DEPOSIT

10.1 Performance Guarantee 72

10.2 Validity of Performance Guarantee 72
10.3 Claim under Performance Guarantee 72
10.4 Refund of Performance Guarantee 72
10.5 Recovery of Security Deposit 73
10.6 Claims under Security Deposit 73
10.7 Validity Period of Security Deposit and Refund 73
10.8 Miscellaneous Provisions 74
10.9 Refund of Security Deposit – Guarantee on Specialised 75
Items of Works
10.10 SBUs Responsibility for Prompt Refund of Security 76
Deposit and Performance Guarantee

11 AGREEMENTS/CONTRACTS – ESSENTIAL
FEATURES

11.1 General Features 77

11.2 Power to Sign Agreements 78
11.3 Recording of Date of Acceptance of Tender in the 78
Agreement
11.4 Supply of Copies of Contract to Contractors 78
11.5 Certification and Custody of Agreements 79
11.6 Contents of Agreements 79
11.7 Safe Custody of Contract Agreement and Related 79
Documents

12 GENERAL GUIDANCE FOR OPEATION OF

CONTRACT CLAUSES

12.1 Clause 2 80
12.2 Clause 3 81
12.3 Clause 5 82
12.4 Clause 7 84
12.5 Clause 8 85

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 12.6 Clause 10 (C ) and Clause 10 CA 86
12.7 Clause 10 (CC) 87
12.8 Clause 12 89
12.9 Clause 14 91
12.10 Clause 16 93
12.10A Clause 21 94
12.11 Clause 36 94
12.12 Clause 42 95
12.12A Clause 45A 96
12.13 Clause 47 96
12.14 Performance for Notices to Contractor under various 97
Clauses of Contract and for Completion Certificate

13 EXTENSION OF TIME AND COMPENSATION FOR

DELAY

13.1 General Principles 98

13.2 Requirements of Clause 5 99
13.3 Powers of Officers for Grant of Extension of Time 99
13.4 Grant of Extension of Time without Application 99
13.5 Form of Application for Extension of Time 99
13.6 Procedure for Granting Extension of Time 100
13.7 Compensation under Clause 2 101
13.8 Section 74 of the Indian Contract Act, 1872 101
13.9 Proforma for Intimating the Contractor on Levy of 102
Compensation Under Clause 2

14 PAYMENT FOR SUB – STANDARD WORK

14.1 Procedure for Acceptance of Substandard Works 103

14.2 Acceptance of Substandard Work 103

15 ISSUE OF MATERIALS TO CONTRACTOR

15.1 Issue of Materials to be an Exception 105

15.2 Issue, Supply and Recovery of Cost of Materials 107
15.3 Issue Rates 108
15.4 Return of Surplus Materials 109
15.5 Instructions regarding Storage of Cement in Godowns 110
15.6 Issue of Materials against Bank Guarantee 110
15.7 Recovery towards materials issued for verification of 110
defects/Reclosing of work

16 MATERIALS ARRANGED BY CONTRACTOR AND

MANDATORY TESTS

16.1 General Principles 111

16.2 Mandatory Tests – CPWD Specifications 112
16.3 Design Mix Concrete – Acceptance Test 114
16.4 Nominal Mix Concrete – Action in case of Failure of 115
concrete in Mandatory Concrete Cube Tests
16.5 Design Mix Concrete – Action in case of Failure of 115
Concrete in Cube Tests

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17 EXTRA, SUBSTITUTED AND DEVIATED ITEMS OF
WORK AND PLACING OF REPEAT ORDERS

17.1 Deviation 116

17.2 Prior Sanction of Competent Authority Necessary 116
17.3 Extra / Substituted Items 116
17.4 Fixation of Rates for Deviated / Extra /Substituted 117
Items
17.5 Rates for Deviation (Extra / Substituted / Deviated 117
Quantities) Items allowing Profits and Overheads on
Stipulated Materials supplied to the Contractor
17.6 Measurements for Inadmissible Items 117
17.7 Deviations in Quantities of BOQ Items 118
17.8 Placing of Repeat Orders 118

18 FAIR WAGE CLAUSE AND CONTRACTOR’S

LABOUR REGULATIONS

18.1 Provisions of Act 120

18.2 Acts / Omissions 121
18.3 Fair Wages 121
18.4 Responsibilities of Field Officers 121
18.5 Responsibilities of Contractor 122
18.6 Deductions to be made from Contractor’s Bills 123
18.7 Procedure in case of Accidents to Contract Labour 123

19 ARBITRATION AND LITIGATION

19.1 Application of Arbitration Claus 25 of Standard Contract 124

Form
19.2 Application for Appointment of Arbitrator 124
19.3 Preparation for Arbitration Cases 125
19.4 Processing of Contractor’s Application 126
19.5 Appointment of Arbitrator 126
19.6 Action Subsequent to Appointment of Arbitrator 127
19.7 Engagement of Lawyers 129
19.8 Production of Official Documents before 129
Court/Arbitrators
19.9 Default of a Party 130
19.10 Making of Award 130
19.11 Acceptance of Award 131
19.12 Review of Arbitration Award 132
19.13 Setting Aside of Awards 132
19.14 Period of Limitation 134
19.15 Court Cases 135
19.16 Judgements in Court Cases 136
19.17 Legal Charges on Civil Suits / Arbitration Cases 136
19.18 Documentation for Arbitration Cases 136
19.19 Disposal of Old Records 137

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20 RECORDS TO BE MAINTAINED AT SITE OF WORK

20.1 General Provisions 138

20.2 Site Order Book 139
20.3 Periodic Inspection of Works – Inspection Record 139
20.4 Hindrance Register 140
20.5 Daily Progress Record 141
20.6 Cement Register 141
20.7 Steel Register 141
20.8 Non Conformance Items Record 142
20.9 Quality Audit Record 142
20.10 Site Coordination Meetings Record 142
20.11 Guarantee Bonds Record 142
20.12 Insurance Policies Record 143
20.13 Drawings Record 143
20.14 Record of Mandatory and Non Mandatory Tests Carried 143
out
20.15 Paint and Chemicals Record 144

21 MEASUREMENT BOOKS

21.1 Measurement Book – General Instructions 145

21.2 Test Checking of Measurements 149
21.3 Recording Levels for Earth Levelling Work 150
21.4 Loss of Measurement Book 151
21.5 Proforma for Measurement Book 152
21.6 Compressed Measurement Books (CMBs) and Bills to 152
be submitted by the Contractor

22 PAYMENTS TO CONTRACTOR

22.1 Requirement of Clause 7 161

22.2 Final Payments 162
22.3 Time Schedule for Payment of Bills 162
22.4 Inspection of Work Nearing Completion/After 163
completion
22.5 Completion Certificate 164
22.6 Payment through Bank 164
22.7 Deduction of Income Tax at Source 164
22.8 Deduction of Building and other Workers Welfare Cess 165
at Source

23 ADVANCES TO CONTRACTOR

23.1 Types of Advances 166

23.2 Certificates to Accompany Bills 167

24 PREPARATION, EXAMINATION, VERIFICATION

AND PASSING BILLS FOR PAYMENTS

24.1 Preparation of Bills 169

24.2 Forms of Bills for Payment 169

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 24.3 Authorities to Pass the Bills 170
24.4 Payment for Work done 170
24.5 Deviation Statement 170
24.6 Bank Guarantees – Check and Custody 170
24.7 Documents to Accompany Bills 170
24.8 Check of Bills at SBU Office 170

25 QUALITY ASSURANCE AND CHECK LISTS

25.1 Introduction 171

25.2 Quality Assurance Plan 171
25.3 Methods Statement 171
25.4 Responsibility for Quality Assurance 171
25.5 Checklists 172
25.6 Testing Laboratory 172

26 CHIEF TECHNICAL EXAMINER’S ORGANIZATION

AND COMMON IRREGULARITIES OBSERVED

26.1 Functions of CTE Organisation 174

26.2 Returns 174
26.3 Inspection by CTE 174
26.4 Recoveries of Over Payments pointed out by the CTE 175
26.5 Common Irregularities pointed out by the CTE 175

27 OPENING , CUSTODY AND FINAL DISPOSAL OF

ESSENTIAL PROJECT DOCUMENT

27.1 Preamble 176

27.2 Common Deficiencies Observed in System of 176
Maintenance and Disposal of Records
27.3 Procedure Order on Opening, Custody and Final 176
Disposal of Essential Project Documents.

28 Performance of Contractors 177

29 E-Tendering 179

Index – List of Annexures 186

*****

xiv
 SECTION 1

INTRODUCTION

1.1 PREAMBLE
RITES has been handling Project Management Consultancy assignments for the
past few decades. While some of the Clients, particularly Government
Departments and Public Sector Undertakings, insist upon RITES adopting the
Tender Document and Contract Management procedures of specific
organizations such as that of Railways, CPWD, State PWD, MES, World Bank
etc, there are also cases of Clients leaving it to RITES to decide on the
documentation and procedures. Some organizations such as Indian Railways,
CPWD, MES, World Bank etc, have also printed their Standard Tender
Documents and Manuals for the guidance of the officers and field Engineers and
these are followed in execution of works in their organizations.

1.2 RITES’ DOCUMENTS

For dealing with Projects in which the Clients permit RITES to adopt any System
considered good by RITES, the following documents have been made out by
RITES for uniform application by all RITES Offices while handling such projects.

(i) Guidelines on Construction Project Management 2019

This document is based mainly on CPWD Works Manual 2014 but with
substantial modifications by incorporating the good practices of other
organizations like Indian Railways, World Bank etc. The guidelines are
comprehensive and cover almost all aspects of Contract Management of
particular interest to the Site Engineers and officers in SBUs. The Guidelines
should be read along with the Standard RITES Tender Documents referred
to in item (ii) below. Various instructions/circulars/guidelines issued by
different Deptts like CVC, Railway Board etc in the past have also been
taken into consideration in preparing this revised edition. The provisions
contained in this book can be adopted also in the Management of Contracts
based on the formats of other organizations like Indian Railways and World
Bank in so far as they are not in conflict with them.

(ii) Standard Tender Document Dec 2016 (Physical/Hard Copy Tender) and
April 2018 (E-Tendering)

The Standard Tender and Contract Documents with components indicated

below have been made out basically adopting CPWD Format but with some
major modifications. It consists of three parts.

Part 1 (Technical Bid) comprises the following six sections.

1
 1) Notice Inviting Tender and Instructions to Tenderers including Annexures

2) Tender and Contract Form

3) Special Conditions

4) Schedules A to F

5) Technical Specifications

6) Drawings

Part 2 : Financial Bid–Schedule (Bill) of Quantities

Part 3 : General Conditions of Contract

Section (7) Conditions of Contract

Section (8) Clauses of Contract

Section (9) RITES Safety Code

Section (10) RITES Model Rules for Workers

Section (11) RITES Contractor”s Labour Regulations

Depending on the nature and scope of work, Bill of Quantities, Drawings and
site/work specific Special Conditions/Specifications will be required to be
made out by NIT Approving Authority. The Standard Tender Document may
be adopted in all cases other than those where the Client insists upon
adoption of a specific format such as that of Railways, MES, World Bank etc.

iii) Guidelines for Arbitration under Arbitration & Conciliation Act 1996 –
July 2007

iv) Checklist of Specifications for Civil Engineering Works for Quality

Control – August 2008

v) Specifications for Railway Track and Bridge Works – September 2010

1.3 INTEGRITY PACT

RITES in cooperation with CVC has signed MOU with Transparency International
(India) for adoption of Integrity Pact (IP) as a vigilance tool for promoting integrity
/ transparency and competitiveness in matter of major procurements. It has been
decided by RITES that to begin with, Integrity Pact shall be made part of Bid
Documents to be issued to all intending bidders, for works of estimated cost
above Rs.10 Crore. For works of estimated cost of above Rs.10 Crores,
Independent External Monitor (IEM) shall be pre-nominated to review
independently, the compliance of Integrity Pact. The Competent Authority to
appoint IEM is the CMD/ RITES. The Integrity Pact is available as Annexure VIII
2
 to Section I (Part I) of Bid Document viz. NIT & Instructions to Tenderers, in all
Tender Documents for works of estimated cost above Rs.10 Crores.

The essential ingredients of the Pact and its implementation procedure envisage:

a) IP shall cover all phases of the contract i.e. from the stage of NIT / Pre-Bid stage till
completion of contract. Any violation of the same would entail disqualification of
bidders.

b) Entering into this Pact by the bidder would be a preliminary qualification.

c) IP would be implemented through a panel of IEMs appointed by RITES. For

ensuring liaison between IEM and Contractor / Employer, RITES will nominate a
suitable officer at HQ as Liaison Officer.

d) Detailed guidelines for banning of business dealings are incorporated in Annexure

to the Integrity Pact. The guidelines lay down a transparent process specifying the
grounds for banning and envisaging issuing of a notice to the Agency. According to
these guidelines, the Director concerned is the competent authority for banning
business dealings with an Agency and the CMD is the Appellate Authority. A
Banning Committee is also envisaged for examining the case and submitting its
recommendations to the Competent Authority. The Banning Committee to be
constituted by the Director / CMD will comprise members from Finance, Legal Cell
and one other member to be nominated by the Director/CMD. Additional member(s)
can also be co-opted but none of the members should have been connected with
the tendering process under question.

1.4 TYPES OF PROJECT CONSULTANCY ASSIGNMENTS

RITES as a Premier Consultancy Organization has been handling Project

Management Consultancy Works of different types as detailed below, mostly for
Central Government / State Government Departments and Organizations and in a
few cases, for private parties.

(i) Project management on Supervision basis:- Client Organisation with

adequate technical expertise, handles the Planning and Tendering phases,
signs the Works Contract with the Contractor and entrusts to RITES, the
complete responsibility of Project Management. Here the payments to the
Contractor are effected by the Client on certification by RITES. There are
some cases where the Client Organisation has taken the help of RITES in
planning stage as well as in Tendering Stage. In some cases the Client,
while deploying his own staff for day to day supervision, entrusts to RITES,
General Supervision including Quality Control.

(ii) Project management on Deposit/Turnkey basis:- Client Organization

entrusts through a Power of Attorney or other instrument like a Contract,
complete responsibility to RITES for the Works including Planning,
Tendering and Supervision of works. The funds are made available by the
3
 Client to RITES either in a lump sum or in installments. In such cases, the
Works Contract with the Contractors are signed by RITES for and on behalf
of the Client and RITES makes payment to the Works Contractors. In
these cases, the Client generally does not possess the technical expertise
to handle major works. But in all cases, even if Client does not possess the
technical expertise, the Client expects RITES to keep them apprised of any
developments with financial implications.

1.5 FINANCIAL LIABILITY OF RITES

The type of Project Management Contracts in 1.4 (i) above generally does not
entail any financial liability on RITES since the Client is the Employer in the
Works Contracts with the Contractor. But in the type of Project Management
Contracts, in 1.4 (ii) above the financial liability of RITES can be of a large
magnitude which may end up in disputes leading to Arbitration or Court case.
With the Agreement executed between RITES and the Contractor, the legal
provision is that there is no privity of Contract between the Client and the
Contractor even though the Agreement may have been executed by RITES for
and on behalf of the Client and the Client has granted a Power of Attorney to
RITES or appointed RITES as his Agent. There is hence the necessity for
RITES staff to understand clearly the various aspects of Project Management in
the Planning, Tendering and Supervision stages.

Irrespective of whether the Works Contract is signed by RITES or by the Client,

the guidelines in this document should be followed to protect the interest of
RITES in Project Management Consultancy Contracts. While various aspects of
Project Management from tendering to execution have been covered in detail in
subsequent Sections, the basic items to be kept in view for successful
implementation of a Construction Project are detailed below.

Efforts should be made to ensure observance of the essential features discussed

in para 1.6 below. However wherever it is not possible to observe the same in
totality because of exigencies of work, reasons for the same should invariably be
kept on record. Sufficient care should also be taken to ensure that follow up
action on all such issues is taken up in a reasonable and defined time schedule.

1.6 ESSENTIAL FEATURES OF GOOD PROJECT MANAGEMENT

(i) Work should not be awarded to the contractor until ideally all the required
construction drawings are available. However, in case of any exigency,
which should be recorded, it should be ensured that construction drawings
of foundation and floor one above or equivalent in other types of works are
available for construction activities for at least 3 to 4 months. It shall be
the responsibility of the Project Coordinator to ensure that balance
drawings are finalized during this period.
(ii) Contract should not be awarded to the contractor until the site is available
and ready for the construction with clear title deed and free from
encroachments, encumbrance etc. If the Client insists on award of
4
 contract with only part land available and if RITES is to sign the works
Contract as Agent / Power of Attorney Holder, the Client has to be advised
in writing that if balance land is not made available as per the Project
Schedule in the Tender Document, the Contract may have to be
terminated and the resultant liability which may include claims from the
contractor will be to Client’s account. It should also be checked in
advance to ensure that the approval of the Local Authorities is available for
use of the land for the intended purpose. Contract may not be awarded till
approval of local body to the Layout and building plans is available.
(iii) Work should not be awarded till sufficient funds are deposited by the
Client. Where the full contract amount is not made available in advance by
the Client who desires to make available funds in installments, the Client
should be advised right at the initial stage that in case funds are not made
available promptly as asked for, the Works Contract will have to be
terminated and the resultant liability which may include claims from the
Contractor will be to Client’s account.

(iv) Contract conditions and BOQ items should not be ambiguous and vague.
Proper care should be taken at the time of preparation of BOQ.

(v) All out efforts should be made to avoid any delay on part of RITES in
issuance of drawings, clarifications on specifications of items, processing
of bills for payment and giving decisions on matters referred to by the
Contractor.

(vi) No extra or substituted item should be executed at site without prior in-
principle approval from the competent authority of RITES and of the client,
if the agreement with RITES requires the same. However in case of
exigency the permission to execute the Substituted or Extra Item should
be taken from the SBU Head or project coordinator respectively. Pending
processing of the rate of Extra/Substituted Item, payment to contractor
should be released @ 75% of the rates as tentatively determined by the
SBU Head of RITES.

(vii) Quantities should not be executed beyond the permissible deviation limits
in BOQ items for which rates have been fixed in the Contract, without the
in principle approval of the Competent Authority of RITES and of the
Client, if the Agreement with RITES requires the same. Payment to
contractors for such deviated quantities should be made in accordance
with contract provisions. Where the Contractor presses for payment for
quantity executed in excess of specified limits, for which rate can be
derived from BOQ rate, payment may be effected at 75% of BOQ rate with
the approval of SBU Head. But expeditious action should be taken to
decide on the revised rate.

(viii) It should be ensured that rates of Extra / Substituted Items as well as rates
for the BOQ items for quantities beyond the Limits for which rates are

5
 available in the contract are duly accepted by the Contractor, before
releasing payment of Final Bill.

(ix) Decisions sought by Project Coordinators with regard to drawings, details,

specifications, additional items, Extra / Substituted Items, operation of
BOQ items beyond permitted Limit etc. shall positively be communicated
to them by the respective SBUs within a reasonable time (say 15 days).

(x) Whenever there is any likelihood of increase in the cost of work beyond
the Clients’ Expenditure Sanction figure, Revised Estimate should be
prepared well in advance and submitted to the Client for revised
Administrative Approval and Expenditure Sanction.

(xi) All the letters and references of the Contractor should be replied to
promptly. No letter or reference of the Contractor should remain
unanswered.

(xii) Proper records should be maintained at site with regard to handing over of
the site and issue of drawings as well as daily progress reports with details
of plant, machinery and equipment deployed at site by the Contractor,
supervisors and labours deployed at site and hindrance details. Site Order
Book is an important document to be maintained at site. Signature of the
Contractor should invariably be obtained as token of his acceptance in the
relevant records.

(xiii) All possible avenues should be explored to avoid contractual problems

such as arbitration etc. All disputes should be attempted to be settled
amicably within the frame-work of the Contract during the currency of the
Contract.
(xiv) The contract should be kept live by extending the contract, even suo-moto,
without prejudice to the right of RITES/Employer to levy Liquidated
Damages. The contract must be extended within the contract
period/extended period.

6
 SECTION 2

CONTRACT WITH CLIENT

2.1 SIGNING OF CONTRACT WITH CLIENT

Any project management starts with the entering into a Contract with the Client.
A good project management therefore has to start with a well drafted Contract
document where the responsibilities and scope of the work of RITES and the
Client are well defined. It is also to be ensured that the Contract does not result
in RITES entering into long term liabilities with the Client or with the contractors
engaged either by RITES or the Client.

Special care needs to be taken where RITES awards and signs the Contract with
Contractor for execution of work, even if these are for and on behalf of the Client.

In order to ensure uniformity, a format for Model Agreement between RITES and
the Client generally in line with the above stipulation is enclosed as Annexure
2.1. The Conditions in the model agreement are generally based on CPWD
Practice which are the ideal ones to protect the interest of RITES. They may be
relaxed to the minimum extent necessary, by the Competent Authority of RITES
during discussions / negotiations with the Client, keeping in view the scope of
work to be carried out.

2.2 DEFINITION OF DEPOSIT WORKS

Works which are got executed by RITES where Works Contracts are signed by
RITES for and on behalf of the Client and the Client makes funds available to
meet the Works Contract expenditure, RITES fees and other related expenses,
come under the category of Deposit Works. Before taking up any Deposit Work,
an Agreement has to be executed between RITES and the Client indicating
clearly the scope of work, the financial arrangements envisaged by the Client for
smooth progress of works and the items on which RITES should take prior
approval of the Client as well as the items on which RITES can take a decision
on its own with or without advice to the Client, during the course of execution of
work.

2.3 REALIZATION OF CONTRIBUTION FOR DEPOSIT WORKS

2.3.1 Whenever a Deposit Work is to be carried out, full contribution should normally
be realized before any liability is incurred on account of the work. However, in
cases where RITES is satisfied that money will be forthcoming when required,
RITES may accept the request of the Client to make available the funds in
suitable installments. Efforts should be made to realize about 1% of the
anticipated project cost before preparation of preliminary estimates.

7
2.3.2 In cases of deposit works of financially sound Clients from whom receipt of
money is generally assured, ideally 33-1/3% of the estimated cost of the work
may be got deposited as advance. Thereafter, the expenditure incurred may
be got reimbursed through monthly bills simultaneously with rendering of monthly
accounts on the progress of work. The deposit of 33-1/3% or any other
percentage mutually agreed to between RITES and the Client; obtained as the
first installment should be retained for adjustment against the last portion of the
estimated expenditure. With regard to Deposit Works involving Clients who have
earlier defaulted in payments, or where the works outlay is predominantly for
purchase of capital equipments and machineries, the entire deposit should be
obtained in advance.

2.3.3 Where delays are experienced in obtaining funds and where expenditure has to
be incurred out of the 33-1/3% or agreed percentage reserve to keep the works
going, the matter should be brought up by the Project Coordinator to the notice of
SBU Head promptly for taking up the matter with the Client. It is reiterated that
no expenditure is to be incurred on Deposit Works out of RITES’ funds.

2.3.4 To enable the Client to provide additional funds in time, Revised Estimates
should be sent to the Client, at the appropriate stages during the execution of
works wherever required.

2.3.5 It should be ensured that in no case deposits received in respect of one Deposit
Work are diverted to other Deposit Works even for the same Client. The only
exception will be in case when the Client specifically authorizes in writing such
diversions.
2.3.6 The Client on whose behalf the work is to be done is also to be made clear that
RITES does not bind itself to complete the work within the amount of estimate
and that the Client should agree to finance the excess that may occur.
2.3.7 It should be ensured that the expenditure is not more than the deposits received
for the work. Where the SBU Head is doubtful about the timely receipt of the
deposits, matter should be taken up with the Client by giving notice that if further
deposit is not received, work may be stopped and any contractual liability arising
out of such stoppage of work will have to be borne by the Client. Efforts should
also be made by higher officers, if need be, to follow up with the Client. In
exceptional circumstances, if the work has to be continued, permission of the
Divisional Head or tender accepting authority, whoever is higher should be
obtained.
2.3.8 While submitting preliminary estimates for Deposit Works for obtaining
Administrative Approval and Expenditure Sanction from the Client, a copy of the
terms and conditions under which the works would be taken up by RITES
generally as given in Annexure 2.1 should also be enclosed with the estimate.
Alternatively these provisions should be incorporated in the Agreement between
RITES and the Client.

8
2.4 EXECUTION OF DEPOSIT WORKS

2.4.1 With regard to design, estimation and execution of work, instructions as

contained in subsequent sections should be followed. The scope of work should
not be altered without written permission of the Client.
2.4.2 SBU Heads should keep a close watch on the progress of expenditure on
Deposit Works, particularly on the estimated cost of work, RITES fees and
related expenses, the total deposit received and the progressive expenditure. A
copy of the monthly expenditure statement should be forwarded to the Client by
the SBU Head indicating the additional funds, if any, to be made available,
keeping in view the trend of progress of works. Ideally a separate Bank account
should be maintained for each Deposit Work which should be credited with all
deposits of the Client and debited with payments to the Contractor, RITES’ fees
and other expenses as per provisions in the Agreement between RITES and the
Client. This will facilitate easy reconciliation of accounts, monthly and on
completion of works. It is desirable that in case of opening of such Bank
Account, the Agreement between RITES and the Client clearly stipulates whether
interest accruing out of short term deposits from the surplus funds if any available
in the Account from time to time will be retained by RITES or refunded to the
Client. The consultancy fee to be quoted by RITES should take into
consideration this factor. Where the Client does not agree for the interest on such
short term Fixed Deposits being credited to RITES account, keeping in mind the
Income Tax implications on accrued interest and expenditure in management of
such short term fixed deposits, the Client’s funds may be kept in current account
without any conversion into Short Term fixed deposits.
2.5 ENDORSEMENT OF COPIES OF DOCUMENTS TO THE CLIENT

2.5.1 The Agreement between RITES and the Client will indicate what items will
require prior approval of the Client, what items will require post facto approval of
the Client and what items can be decided by RITES and the Client just kept
advised.

2.5.2 Irrespective of the provisions in the Agreement between RITES and the Client,
copy of the following documents should be endorsed to the Client without any
delay.
(i) Detailed Estimate as sanctioned by RITES
(ii) Detailed drawings as approved by RITES

(iii) Tender Document

(iv) Letter of Acceptance to the selected Contractor

(v) Contract with the Contractor / Supplementary Agreement

(vi) Letters of Extension of Time issued to the Contractor

9
 (vii) Deviations and Rates as approved by RITES for Extra items, Substituted
items and Deviation in Quantity of BOQ items

(viii) Notice to Contractor on Termination / Rescission / Foreclosure of Contract.

(ix) Running Account Bills and Final Bill with supporting documents

(x) As–built drawings / Maintenance & Operation Manuals (where applicable).

(xi) Completion Certificate

(xii) Maintenance Certificate

2.6 Arbitration / Court cases involving Works Contractor

This shall be dealt as per Article 20 of Annexure 2.1. In case any amount is
awarded by Arbitrator/Court and it is decided by the Client to challenge the said
award, the Client may be informed that as per NITI Aayog guidelines, 75% of the
awarded sum will be payable to the contractor and the amount may be made
available to RITES within 15 days. It will be essential that the consent of client for
release of funds out of the client’s fund against the Bank Guarantee is obtained
before advising the contractor to comply with the instructions to open an Escrow
account and submit Bank guarantee,. A format of letter to be issued to client,
seeking consent may be obtained from Legal Cell of RITES.

10
 SECTION 3

PROJECT ORGANISATON AND RESPONSIBILITY

FOR PROJECT IMPLEMENTATION

3.1 ORGANISATIONAL SET UP

Every project involving field supervision will have :
i) A field unit headed by a Controlling Site Engineer designated as
Controlling Engineer/Project Manager/Chief Project Manager, who may be
assisted by one or more Engineers and Technical Assistants designated
as Site Engineers.
ii) One of the officers at SBU office designated as Project Coordinator for
liaison with the field office and who will be responsible for all actions to be
taken in the SBU office in connection with that project.

3.2 FIELD ORGANISATION

The strength of field organization will depend on the magnitude of the project in
terms of its financial value and the complexity of works involved. The staff
strength will be deployed on the basis of the funds provided in the approved input
estimate and the average monthly expenditure for different grades of staff. In
cases where a definite commitment has been given to the Client on the number
and grades of staff that will be deployed by RITES for the Project, this
requirement should be kept in mind while deciding on the field organization.
Where required, deployment of Technical staff on contract terms for limited
periods may be resorted to.

The senior most officer in the field organization irrespective of his grade, will be
designated as the “Controlling Site Engineer/Project Manager /Chief Project
Manager” and the technical staff working under him will be designated as “Site
Engineers”. While the Controlling Site Engineer will be overall responsible for all
the field activities as defined in a subsequent para 3.5, he can allocate specific
duties to his supporting technical staff depending on the number available and
their grades.

3.3 ORGANISATION AT SBU OFFICE

The SBU Head who may be of the grade of GGM, GM or CPM will be dealing
with a number of projects at any one time. He will also be assisted by officers
and staff in both technical and financial matters. SBU Head will allocate projects
among his senior technical officers with the approval of the Divisional Head.
Such officers will work as Co-ordinating Officers for the Project or Project
Coordinators. Each such technical officer who may be GGM/GM, Addl.GM,
Jt.GM, Sr. Dy.GM, Dy.GM or Manager may be required to deal with one or more
projects and it will be his responsibility to take care of all activities related to the
Project for which the SBU office is responsible as indicated in subsequent Para
11
 3.6. The nominated Project Coordinator will also keep the SBU Head advised
fully on the Project and initiate action for referring through SBU Head to the
higher authorities in the Head Quarters, proposals which require sanction of
higher authorities at Head Quarters level. In case, the Engineer-in-Charge of the
project is junior in rank to the SBU Head, the Project Coordinator will route all
papers through the Engineer-in-Charge.
The nominated Project Coordinator will take the assistance of the officers and
staff in the Technical Section of the SBU office for dealing with all technical
matters related to the project. He will liaise with the Accounts Officer dealing with
all financial matters related to the Project.
3.4 DESIRABLE LEVEL OF ORGANIZATION

The table below gives the desirable level of organization for projects of different
values. The SBU Head can modify them suitably depending upon the nature and
complexity of the project and the availability of engineering personnel under him:

Project Size (Rupees in Crore) Project Controlling Site

Coordinator Site Engineer
Engineer

For Projects costing up to 20 Manager Engineer NIL

For Projects costing between 20 & 50 Manager AM Engineer
For Projects costing between 50 & 100 DGM / Sr. Manager / AM
DGM DGM /Engineer
For Projects costing above 100 Jt. GM/ DGM/ Sr. AM
AGM/GM/G DGM/ Jt /Engineer
GM GM/ AGM

3.5 FIELD ACTIVITIES FOR WHICH CONTROLLING SITE ENGINEER WILL BE

RESPONSIBLE
3.5.1 PRE-CONSTRUCTION STAGE
a) Check the “Good for Construction Drawings” with the site conditions and
see if any modification will be required to be made in the drawings such as
change in the layout, type of foundation, increase in depth of foundation,
increase in plinth height etc. If any such modifications are called for, the
same should be brought to the attention of SBU office promptly for taking
necessary action.

b) Do a general check of the BOQ in the Contract Agreement with the “Good
for Construction Drawings” and see if there are any obvious errors such as
missing items of work, incorrect estimation of quantity of any item, rates in
figures and words not tallying for any item etc. If any such error is noticed,
it should be brought to the attention of SBU office promptly for taking
necessary corrective action.
12
c) Check if the Contractor has submitted the following documents and if so,
xerox copies of the same should be retained in the Site Office and the
originals sent to SBU Office. The list given below is based on CPWD
General and Special Conditions of Contract and may require modification
depending on the provisions contained in GCC & SCC of other type of
contracts such as that of World Bank, Indian Railways etc as will be
required to be followed for that work.

i) Performance/ Additional Performance Guarantee Bond.

ii) Insurance Policy on Secured Advance on perishable materials.
iii) Bank Guarantee Bond on Mobilization Advance.
iv) Hypothecation deed on Plant, Machinery Advance

v) Insurance Policy on Plant & Machinery Advance

vi) Bank Guarantee Bond on free supply of materials.

vii) License under the Contract Labour (R&A) Act and Rules.
viii) Indemnity Bond against patent rights.
ix) Indemnity Bond on Employer’s Plant & Machinery hired to the
Contractor.
x) Registration in respect of CGST and SGST as applicable with Central
Government and the State Government concerned.
xi) Insurance Policy on Cost of Works.
xii) Third Party Insurance.
xiii) Workmen’s Insurance.
xiv) Indemnity Bond on damages to persons and property.

d) Check with the provisions in the General and Special Conditions of

Contract and see if the following requirements have been complied with
i) Site Laboratory fully equipped and manned by adequate numbers of
technically qualified staff.
ii) Availability of qualified and experienced technical personnel at site.
e) Check the quality of construction materials arranged by the Contractor by
arranging tests where required and see if the Manufacturers’ Test
Certificates have been furnished, where the Contract provides for the
same.

f) Check if proper storage arrangements for Cement, Steel and other

materials have been provided by the Contractor.

13
3.5.2 CONSTRUCTION STAGE (WORKS IN PROCESS)

a) Maintenance of records at site of work as detailed in Sections 20 and 27 of

this book.

b) Conducting mandatory and other tests on materials and workmanship as

indicated in Section 16 of this book, and as per ‘Checklists of Specifications
for Civil Engineering works for Quality Control’ issued separately.

c) Quality control and Technical Audit on works.

d) Keeping a watch on the Contractor’s compliance with Labour Regulations

as detailed in Section 18 of this book.

e) Taking measurements of work including test checking as detailed in

Section 21 of this book.

f) Submission of Running Account Bills with all accompanying documents as

stipulated in Section 24 of this book.

g) Processing Contractor’s submissions with his recommendations to SBU

office on the following:-

i) Rates for deviated quantities of BOQ items, substituted items and

nonscheduled items.
ii) Extension of Time with or without compensation.
iii) Acceptance of substandard work and reduced rates for the same.
iv) Contractor’s claims.
h) Issue of notices to the Contractor on progress of work, quality of work,
number and competence of technical personnel deployed, functioning of
Site Laboratory etc.

i) Keeping a watch on deviation of quantities, reasons thereof and

recommend to SBU office, measures to minimise deviations.

3.5.3 CONSTRUCTION STAGE (ON PHYSICAL COMPLETION)

a) Inspect the works on receipt of report from the Contractor that the works
are completed, point out the deficiencies, if any, and inform the Project
Coordinator for issuance of Provisional Certificate of Physical Completion/
Completion Certificate by the Engineer-in-Charge.

b) Submission of Final Bill with all accompanying documents as stipulated in

Section 24 of this book.

14
 c) Furnish to SBU office comments on the claims, if any, submitted by the
Contractor along with the Final Bill.

d) Ensure that the Contractor cleans up the area before handing over the
completed works.

e) Hand over the completed work to the Client under proper Handing over /
Taking over Notes along with Guarantees /Warrantees (if any), Completion
plans and Operations & Maintenance Manual (if any).

3.5.4 POST CONSTRUCTION STAGE

a) Check on the defects if any pointed out by the Client during the
maintenance period and give notice to the Contractor for rectification of the
defects.

b) Arrange for issuance of “Maintenance Certificate” to the Contractor on

expiry of Maintenance Period after checking that all defects have been
rectified. Arrange refund of the balance Security Deposit as per provisions
in the Contract.

c) Furnish to SBU office for passing on to the Client, copies of Guarantee

Bonds for specialized works.

d) Furnish to SBU office all relevant records properly indexed to facilitate

dealing with further Arbitration/Court cases, if any.

3.6 SBU OFFICE ACTIVITIES FOR WHICH THE PROJECT COORDINATOR WILL
BE RESPONSIBLE

3.6.1 PRE-CONSTRUCTION STAGE

a) Co-ordinate with client regarding:

(i) Entering into contract with client in the format given at Annexure 2.1
modified, if necessary with the approval of competent authority.

(ii) Obtaining his functional requirements relating to the project.

(iii) Obtaining his approval for preliminary drawings/General

Arrangement Drawings, specifications etc

(iv) Obtaining his approval for preliminary cost estimates

(v) Realization of funds for initial expenses

b) Take necessary action for:

i) Preparation of drawings, design and estimates, if required, through

sub-consultants.

15
 ii) Appointment of sub-consultants.

iii) Preparation of input estimates and obtaining approval of the same

from competent authority after vetting by finance.

iv) Preparation of tender documents, obtaining approval of the same

from Competent Authority, inviting tenders, co-ordinating for
opening of tenders, for evaluation of tenders by Tender Committee
and for award of work after acceptance of tender by the accepting
authority.

v) Signing of contract by competent authority and sending copies of

the same to finance and Controlling Site Engineer.

c) Where the Controlling Site Engineer recommends modifications of “Good” for

Construction Drawings” as indicated in Para 3.5.1(a), to issue, in consultation
with the Client, necessary corrections to the drawings, workout the Contract
implications and advise the Contractor suitably.

d) Where the Controlling Site Engineer points out errors in the BOQ in the
Contract Agreement when compared with “Good for Constructions Drawings”
as indicated in para 3.5.1 (b), to scrutinize and take corrective action in
consultation with the Client to advise the Contractor suitably.

e) Check the originals of the documents sent by the Controlling Site Engineer in
terms of para 3.5.1(c) and see if they are in order. Keep them in safe custody
along with the originals of Contract Agreement and one set of “Good for
Construction Drawings.”

3.6.2 CONSTRUCTION STAGE (WORKS IN PROGRESS)

a) Do periodic inspection of the site of work and see if the records are being
maintained as detailed in Sections 20 and 27 of this book. Record
inspection notes in the Register covering progress and quality of the
materials and workmanship. Carry out mandatory tests, if any, due at the
time of inspection. Test check measurements, particularly on classification
of soil and items of large value, where there is only one Site Engineer at
the project site.

b) Check the Running Bills and accompanying documents as stipulated in

Section 24 of this book and take necessary follow up action.

c) Submit to the Client, periodic Progress Reports and Statements of

Accounts as stipulated in the Agreement between RITES and the Client.

d) Take prompt action in processing approval of the competent authority and

the Client where necessary, and advise the Client, Contractor and the
Controlling Site Engineer on the following:

16
 i) Rates of deviated quantities of BOQ items, Substituted items and Non-
schedule items.
ii) Extension of Time with or without levy of compensation.
iii) Acceptance of substandard work and rates for the same.
iv) Contractor’s claims.
e) In cases where the Controlling Site Engineer foresees large deviation of
quantities, to take prompt action to study his recommendations and advise
the Controlling Site Engineer on the action to be taken.

f) Keep a watch on the validity of Bank Guarantees and take action as

detailed in Section 24 of this Document.

3.6.3 CONSTRUCTION STAGE (ON PHYSICAL COMPLETION)

a) Check the Final Bill and the accompanying documents as stipulated in

Section 24 of this book and take necessary follow up action.

b) Scrutinize the claims, if any, submitted by the Contractor along with the
Final Bill and get the decision of the Competent Authority in consultation
with the Client on action to be taken for dealing with the claims.

c) Submit to the Client the Final Statement of Accounts as provided for in the
Agreement between RITES and the Client.

d) Submit to the Client the following documents:

i) Completion Certificate
ii) Sets of Completion Plans and Operating & Maintenance Manual as
provided for in the Contract
iii) Charge Paper-Handing over by the Controlling Site Engineer to the
representative of the Client, the completed works.
3.6.4 POST CONSTRUCTION STAGE

a) Submit to the Client the following documents:

i) Maintenance Certificate
ii) Bank Guarantees/Guarantees for specialized works.
b) Keep safe custody of all records as detailed in Annexure 19.5 of this book.

c) Deal with Arbitration/Court cases as detailed in Section 19 of this book.

d) Deal with Inspection Notes of CTE as detailed in Section 26 of this book.

17
 SECTION 4

PREPARATION OF ESTIMATES FOR WORKS

4.1 PRELIMINARY ESTIMATE/ABSTRACT ESTIMATE

4.1.1 Preliminary Estimate is required to be prepared in order to facilitate the Client to
accord Administrative Approval and Expenditure Sanction. These estimates
should be prepared on the following basis
Building Works:- On the basis of plinth area rates published by CPWD
with Delhi Base index of 100 as on 1/10/2007 read with upto date
correction slips and updating it with cost index. CPWD issues such Cost
Index figures from time to time to facilitate updating of plinth area rates.
Extra provisions for superior specifications not covered in the scope of
PAR to be taken in the Preliminary Estimate.
Railway Works:- Where supply of P. Way material is to be given by Zonal
Railway:-

Track items based on the rates circulated by Railway Board/Zonal

Railways and adding the factors of transportation by road, contractor’s
profit, taxes etc. Earthwork and ballast supply based on the prevailing
rates in the project area.

Railway Works:- Where supply of P. Way material is not to be given by

Zonal Railway:-

A) P. Way Material
i. The rates of rails from SAIL which can be obtained from their Delhi
or Zonal / State Offices.
ii. The rates of sleepers shall be based on rates to be obtained from
PSC sleeper manufacturing company or companies supplying
sleepers to the Railways in the area where work is to be executed
or else based on recently accepted rates in the area, if available.
Rates should be for supply of sleepers to parties other than Indian
Railways.
iii. The rates of Points& Crossings and PSC sleepers for the same
shall be based on rates circulated by Railway duly enhanced by the
% by which the rates of rails/sleepers as obtained vide (i) & (ii)
above are over and above Railway circulated rates.
B) Execution of work
The rates for execution of PW works should be based on rates
circulated by Railways.
C) General:
In addition to above, provision shall be made for–
i) CGST, SGST as applicable.

18
 ii) Freight including handling charges.
iii) General charges including charges for Bank Guarantees and
Insurance etc. as required.
iv) T & P charges.
v) Contractor’s profit and overheads
vi) Workers Welfare Cess Act 1996 etc.
Road Works:- Length of road, no. of lanes etc worked out and the rate per
unit area, length or other such method adopted for ready and rough
calculation, so as to give an approximate idea of the cost involved in the
proposal.

Railway Bridges:- On the basis of Bridge opening / span and the number
of Tracks to be crossed, adopting Unit Rate per metre of opening per
Track.

Road Over Bridges:- On the basis of area of road on bridge proper and
on approaches, Unit rate per Sq. Metre of approach will vary depending on
the design.

4.1.2 The Preliminary estimate should invariably provide for the probable escalation in
the prices based on trend of increase in price of materials and labour for the
period between estimate preparation and start of work as also during the period
of construction. In case these provisions are not accepted/approved by client, its
implication should be conveyed to them in writing.
4.1.3 The estimate should include RITES’ fee which should include fees of sub-
consultants, for project management.
4.1.4 Following steps need to be taken before preparation of the estimates:
Freeze the requirement of project and specifications of work with the Client.
Prepare concept plan based on the requirement and obtain approval of the
Client.
Where required, conduct sub-soil investigations and tests to determine subsoil
strata and the safe bearing capacity of soil for design of foundations.
4.1.5 While forwarding the Preliminary Estimate to the Client for according
Administrative Approval and Expenditure Sanction, an indication shall be given in
the history sheet that the cost projected in the Preliminary Estimate is liable to
revision due to probable escalation in cost of construction apart from reasons
such as change in scope, design and specifications etc, which may be desired
by the Client at a later date.

4.2 DETAILED ESTIMATES/TECHNICAL SANCTION

4.2.1 As soon as Administrative Approval and Expenditure Sanction for Work is

received based on the Preliminary Estimate and an assurance from the Client
19
 that the site is available duly approved by the Local Body for its use for the
purpose intended, General Arrangement Drawings and Detailed drawings will be
prepared by RITES or got prepared from RITES sub-consultant. Based on the
drawings, Detailed Estimate will be prepared.
4.2.2 Detailed Estimate should, as far as possible, be prepared for the entire project as
a whole. It will, however, be essential to decide on the tender packages in
advance and obtain the approval from Competent Authority for Packaging of
tenders as per SOP and then prepare estimates package wise. Technical
sanction to the Detailed Estimate should be obtained from the competent
authority as per schedule of powers of RITES.
In case of a Composite Estimate, the concerned disciplines like
Civil/Electrical/Signal/Mechanical etc, shall obtain Technical Sanction for their
respective portion from the SBU Head and then forward the same to the
competent Authority for consolidation and sanction.
4.2.3 In case of exigencies of work/requirement of the Client, Detailed Estimate for a
part project may be prepared and Technical Sanction obtained for the same.
Reasons for the same, however, should invariably be kept on record endorsing
copy to Competent Authority to accord approval for Packaging of tenders as per
SOP
4.2.4 In case the Estimated Cost including the element of RITES fees, Price Escalation
during the course of execution of works and unforeseen items, exceeds the
amount for which Administrative Approval and Expenditure Sanction has been
obtained inclusive of the allowable %age excess as per contract agreement with
the Client, the Client should be advised of the revised increased Cost for fresh
Administrative Approval and Expenditure Sanction.
4.2.5 When RITES undertakes a project where Detailed Estimate/ DPR has already
been approved by the Client, no separate Technical Sanction to the estimate is
required from the competent authority of RITES. However during the scrutiny of
such estimates, if deficiencies are noticed which have cost implications, the
same should be brought to the notice of the Client after it is seen by the
competent authority of RITES. The Project Coordinator will be responsible for
such scrutiny of estimate and for taking necessary follow up action with the
Client.

4.2.6 The Detailed Estimate will include:

References of Name of Work, Estimate Number and a report as detailed in para
4.2.7.
Name and Designation of the official preparing the Estimate and the official doing
technical check.
Detailed Statement of Measurements for each item of Work based on the
drawings.
Rate analysis for items not available in Standard Schedules of Rates along with
supporting documents for rates of materials and labour.
Supporting documents when rates are based on prevailing market rates in the
project area.

20
 Supporting documents when rates are based on the trend of rates of items in
tenders accepted in the recent past duly updated for factors likely to affect the
cost.

4.2.7 Report on the Estimate should be prepared in a lucid form understandable by the
Client. It should be comprehensive enough under each sub-head as mentioned
below.
i. History: - Particulars relating to the initiation of and reasons leading up to
the proposal and its general purposes including reference to previous
correspondence, documents and specifications, where necessary.
ii. Design:- A description of the original proposals and those finally adopted
particularly with regard to location, sitting and design, also with reference
to specifications, calculations and drawings, where necessary, type of
foundation, type of superstructure plinth area and no of storeys.

iii. Scope:- An explicit statement as to what work is and what is not covered
by the estimate; also a reference to what arrangements are being made for
any portions of work which are not included in the estimate.

iv. Rates:- Particulars and basis as to how the rates have been arrived at
giving references to the Standard Schedule of Rates and Non-Scheduled
Rates and also to the details accompanying the estimate, where
necessary, with any special explanation connected therewith.

v. Cost:- Estimated Cost of the work and a comparison with the amount
originally provided under any previous administrative sanction or detailed
estimate in case of revision.

vi. Method:- The method proposed for carrying out the work - whether by
lump sum contract, item rate or percentage rate contract or any
combination of these.

vii. Establishment:- Details of any provision made in the estimate for work-
charged establishment, when necessary.

viii. Construction Plants:- Any special methods of construction to be adopted

with reference to specifications, etc. and details of the arrangements that
have been provided for necessary Construction Plant, tools etc.

ix. Land:- Whether land for the work is available free of encumbrance.
Arrangements for acquisition of land, where necessary.

x. Time:- Estimated time of completion from the date of award of Works

Contract.
xi. Brief note on the special construction difficulties, if any, that are likely to be
encountered during the project construction stage.

21
4.3 DETAILED ESTIMATES FOR TECHNICAL SANCTION - PROCEDURE FOR
PREPARATION

The procedure to be adopted for preparation of Detailed Estimate will be as

under:

i. As far as possible for building works, the items of works should be

classified under various items of DSR (Delhi Schedule of Rates). The
latest version now in use is DSR 2018. While working out the estimate for
DSR 2018 items, the rates for these item should be taken after deducting
GST on works Contract for each item and cost of all items should be
worked out like this based on their quantities. The cost as per DSR should
be enhanced by prevailing %age of Cost Index in the project area,
circulated by CPWD. CPWD issues from time to time the prevailing Cost
Index in different regions of the country.
ii. Where other Schedules are applicable (MES, Railways, State PWD etc.),
the items may be taken from the corresponding Schedule of Rates duly
enhanced by the prevailing Cost Index.

iii. Items that cannot be covered by any Standard Schedule of Rates will
come under the category of Non Schedule items. The estimates for these
items should be prepared as per procedure explained in para 4.4.
Alternatively, the estimated cost can be worked out on the basis of the
trend of rates of such items in tenders accepted in the recent past duly
updated for factors likely to affect the cost. Average rate of two or three
(preferably three) accepted tenders may be considered.

iv. The minimum level for preparation of Detailed Estimate shall be Engineer.
The Detailed Estimates are to be technically checked by the Project co-
ordinator or a nominated officer not below the rank of a Manager, before
putting up the same to the competent authority for Technical Sanction. In
case where the Detailed Estimate has been got made out and approved
by the Client, para 4.2.5 may be referred to.

4.4 DETAILED ESTIMATE - MARKET RATE ANALYSIS FOR NON-SCHEDULE

ITEMS

4.4.1 For Non Schedule items, the cost has to be determined for each item based on
Market Rate Analysis which will include the cost of the materials and labour to
the contractor at site of work plus a certain percentage of such cost to cover all
overheads and profit. This percentage representing the element of overheads
and profits has been fixed at different levels by different organizations like
CPWD, MES, NHAI, State PWDs etc. For the purpose of uniformity in RITES,
the following procedure may be adopted to work out the Market Rates for any
non-Scheduled item based on a breakup into the elements of Materials, Labour,
Hire / Running charges of Plant & Machinery, Sundries and Overheads & Profit.
a) (i) Materials (other than Track Works):- The quantity of materials of
different types including permissible wastage may be determined.
CPWD has made out Rate Analysis for various DSR items. They can
22
 be taken for guidance if the Non Scheduled item is an item similar to a
DSR item. In case there is no similar DSR item, the quantity of
materials will have to be assessed from publications such as Nabhi’s
Compilation of Analysis of Rates or similar publications, technical
literature of manufacturers of specialized products, experience in
execution of similar works in the past etc. The cost of materials should
include the element of transport to site.
Market rate for materials should be ascertained by getting at least 3
quotations in writing from suppliers preferably for delivery and stacking
at site. The least rate out of the quotations, obtained for the lowest
accepted/acceptable make/specification should be adopted and based
on the rates for supply at site and the quantity including permissible
wastage, the cost of the materials to be arranged by the contractor at
site of work can be determined.
In case of difficulty in getting written quotations due to reluctance of the
suppliers, the rates should be collected and recorded with name and
address of the suppliers by the concerned officer. Where the rate
quoted by the supplier is for supply at the Dealers’ godown, the
element of cost of transport to site and stacking should be added and
this can be based on DSR rates for similar items increased by the Cost
Index notified by CPWD.
If the Contract is to provide for supply of any materials at a fixed cost
to the Contractor, the cost of materials should be based on the issue
rate at site of work.

(ii) Materials (Track Works):- In the case of Track Works, for assessing
the quantity of different items of Track materials such as rails, sleepers
and fittings, including wastage, sanctioned estimates for similar works
in the recent past by the Zonal Railways may be taken for guidance.

Market rates for the track materials should be ascertained from the
likely suppliers irrespective of the number of such suppliers. The rate
should be assessed for supply and stacking at site inclusive of all
duties and taxes.

The least rate from amongst the three or more quotations or as

ascertained from the likely suppliers as indicated above should be
adopted and based on the quantity including permissible wastage, the
cost of materials to the Contractor at site of work can be determined.

If the contract provides for supply of Track materials to the Contractor,

at fixed rate, the cost of Track materials should take into account such
issue rate at site of works. If materials are to be supplied elsewhere,
the cost of transport and stacking at site of work should be added
suitably.

b) (i) Labour(Other than Track works):- The requirement of labour will

cover different categories - unskilled, semiskilled, skilled and highly
23
 skilled. The requirement per unit of work in terms of mandays has to
be assessed based on previous experience or from literature, if any,
available. If the Non Scheduled item is similar to a DSR item, that can
be taken for guidance. In case there is no similar item, action may be
taken on the same line as indicated for materials in Sub Para a(i)
above. As regards the prevalent daily market rates for different
categories of labour, the same has to be ascertained from Market by
either of the following methods :

 Rate being paid by the contractors operating in the area.

 Rate at which Labour contractors supply labour. From the rates
quoted, 10% may be deducted towards Labour Contractor’s profit,
to arrive at the rate at which the Labour is paid by the Labour
Contractor.
 While ascertaining the Market Rates, the following may be kept in
mind.

i. Rates should be ascertained from at least three different sources.

ii. Rate should be for casual Labour and should include the elements
of compensation towards weekly rest and other facilities, if any,
such as housing, medical attention, Insurance etc.
The daily rate to be considered shall be the least of the rates obtained
from 3 or more different sources. It should be checked if there are any
Statutory Minimum Daily Wages declared by the Central or State
Government for that category of Labour. If there is any such rate, the
Daily rate to be adopted for Market Rate Analysis should not be less
than the highest of the Statutory Minimum Daily Wages laid down by
different Bodies. Based on the Daily rates as determined for different
Categories of Labour and the requirements in terms of Mandays per
Unit of work, the Labour element can be worked out.

(ii) Labour (Track Works ):- The requirement of labour of different

categories unskilled, semiskilled, skilled and highly skilled for different
types of works should be ascertained from the Zonal Railways. Where
recent sanctioned estimate of Railways for similar work is available,
the details can also be extracted from such estimate. Assessment of
the daily market rate and statutory minimum wages shall be done in
the same manner as indicated in Sub para b(i) above. If however,
such details of manpower category-wise for different types of works
are not readily available from the Zonal Railways, the Labour element
cost per unit of the particular type of work inclusive of provision for
Tools and Plants can be ascertained from the Zonal Railways for any
recently concluded contract.
c) Hire / Running charges of Plant, Machinery and Sundries:- If any
heavy/specialised Plant / Machinery / Equipment is required for the
work, its hire/running charges be ascertained.

24
d) (i) Contractor’s Overheads and Profit:-(Building Works, Colony
roads etc.) For uniformity, this should be taken at 15% of the cost of
materials, labour and on hire/running charges for Plant and Machinery
based on CPWD practice.
(ii) Contractor’s Overheads and Profit (Track Works)
The following provisions should be made towards Contractor’s
Overhead & Profit

a) On TrackMaterials

If arranged by the contractor at his cost @ 15% of the cost of such

material

If arranged by RITES and supplied free or at fixed rates to the

contractor - @ 5% of cost of such materials.

b) On other than Track Material arranged by the contractor - @ 15%

of the cost of such material.

c) On Labour

If cost of labour has been assessed based on manpower category –

wise @ 15% of cost of labour.

If cost of labour has been assessed based on recently concluded

contract for similar works – no provision need be made.

d) On Hire/ running charges of Plant & Machinery and sundries - @

15% of the cost of such items.

(iii) Contractor’s Overheads and Profit (Highway Works):- Contractor’s

Overheads and Profit should be taken @ 20% over cost of materials,
labour and hire/running charges for projects costing upto Rs. 50
Crores. For projects costing over Rs. 50 Crore, the same may be taken
@ 18% based on MORTH practice as per their “Standard Data Book
for Analysis of Rates-2003.”

(iv) Contractor’s Overheads and Profit (Bridge Works):- Contractor’s

overheads and profit may be taken as follows on cost of materials,
labour and hire / running charges of Plant and Machinery: (Based on
MORTH practice as per their “Standard Data Book for Analysis of
Rates-2003”)
(i) For major bridges including State-of-Art Bridges – 35%

(ii) Minor bridges included in Highway/Rail packages – 30%

(iii) Rehabilitation of bridges – 40%

(v) If DSR items are also adopted in detailed estimate for Track works,
Highway works and Bridge works , the Contractor’s Overheads and

25
 Profit should be taken as given in Para 4.4.1 (d) (i) above for those
items.
4.4.2 The Non Scheduled item rate as worked out above, should be compared with the
prevalent Contract rate for same item in the same area, under other ongoing or
recently executed contracts, if such information is available. This will facilitate a
cross check of the reasonableness of rate as worked out. It should however be
ensured that the Contract rate ascertained is itself a reasonable one determined
on basis of open tender and is not an abnormally high or low rated item. All
records in support of the analysis for Non Scheduled item rate should be
maintained and these will include quotations for different materials and different
categories of labour, Statutory Orders of Central / State Government on Minimum
Wages for Labour and’ notifications on GST on Works Contract.

4.4.3 For small-value items having total value of less than 1% of the cost of non-
schedule items, where the time and effort involved in preparing detailed market
rate analysis may not be commensurate with the accuracy to be achieved, the
estimated cost can be worked out from rates of such items in accepted tenders.
If, even that is not possible for a few items due to absence of such items in
recently accepted tenders, the rates may be taken on the basis of fair judgement
by the engineer.

4.4.4 Market rate analysis for Non- Schedule items shall be carried out based on
prevailing market rates of Materials, Labour, Hire / Running charges of Plant &
Machinery without GST. The Construction workers Welfare Cess can be added
at the end of the each item rate if applicable in that State in which work site falls
and GST on works contract shall be added at the end of the estimate for taking
the approval of the same from client/Competent Authority of RITES. However,
while working out the cost put to tender, the GST on works Contract shall not be
included in the cost since there is a provision in Standard Tender Document of
RITES to pay GST on works Contract separately to contractor. While working out
the cost put to tender, it should be ensured that GST is not included at any stage
ie on input materials, Labour, Hire / Running charges of Plant & Machinery and
also on Works Contract.

4.4.5 For Non-Schedule items which are specialized or composite in nature and for
which it is difficult to analyse/ derive the rate as per the provisions of Para 4.4.1,
market rates for the items can be assessed by taking least value of at least 3
quotations obtained for such items. While obtaining quotations, the nomenclature
of the item and required technical specifications should be given in detailed along
with rough sketch or drawing if required to enable the vendor giving quotation to
understand the item and to quote the rate accordingly.

4.5 DETAILED ESTIMATE - COMPILATION

4.5.1 The Detailed Estimate will first be made out to reflect the following elements :

a) Cost of Schedule of Rate items (Published Rates) with escalation as per

prevalent Cost Index declared by CPWD / as accepted for similar works in
the recent past for Non CPWD contracts.
26
b) Cost of Non Schedule items based on Market Rate Analysis. Normally
items of Stores conforming to relevant IS Specifications or other approved
and specified standard specifications like BS, DIN should be considered
unless Client specifically wants certain makes to be included in which case
Detailed Estimate/Justified Cost should be based on lowest acceptable
Make / Brand specified, provided it is available near the project site.

c) Since CPWD published DSR 2018 taking into the effect of GST on Works
contracts, market rate analysis for Schedule items shall be carried out
based on prevailing market rates of Materials, Labour, Hire / Running
charges of Plant & Machinery without GST. For preparing the market rate
analysis for Schedule items, provisions of Para 4.9.2 (a) shall be followed
by deriving the rates based on prevailing market rates of Materials, Labour,
Hire / Running charges of Plant & Machinery without GST. Market rate
analysis for Non- Schedule items shall be carried out based on prevailing
market rates of Materials, Labour, Hire / Running charges of Plant &
Machinery without GST. The Construction workers Welfare Cess can be
added at the end of the each item rate if applicable in that State in which
work site falls and GST on works contract shall be added at the end of the
estimate for taking the approval of the same from client/Competent
Authority of RITES. However, while working out the cost put to tender, the
GST on works Contract shall not be included in the cost since there is a
provision in Standard Tender Document of RITES to pay GST on works
Contract separately to contractor. While working out the cost put to tender,
it should be ensured that GST is not included at any stage ie on input
materials, Labour, Hire / Running charges of Plant & Machinery and also
on Works Contract.
The element of Building and other Construction Workers’ cess as
applicable to the State / Union Territory will not be applicable in the case of
supply contracts.
d) Building and other construction workers Welfare Cess at 1% of cost of
items (a) and (b) above. This rate may vary from State to State and may
be modified accordingly.

e) Provision for probable escalation during the contract period should be

made if the tender is for fixed rate contract (Without provision for payment
of escalation) as contractor quotes taking in to account probable
escalation. Provision for probable escalation during the contract period
should also be made when the tender has provision for payment of
escalation.

f) Contingencies at 5% on items (a) to (e) if the total is upto Rs.1.00 Crore

and at 3% on items (a) to (e) subject to minimum of Rs.5 lakhs in case
the total of items (a) to (e) is more than Rs.1 Crore.

27
 g) RITES’ fee at the rate agreed to between RITES and Client on items (a) to
(f) and GST on RITES fee.

4.5.2 In case of works of specialized nature such as Box Pushing, Construction of PSC
Girder Bridge over Railway Tracks etc where the cost of enabling Works is
substantially high and also dependant on site conditions, the Detailed Estimate
may be made out based on the last accepted rate for similar works in that area,
duly enhanced by the relevant cost Index.

4.6 TECHNICAL CHECK OF DETAILED ESTIMATES

The Detailed Estimate is to be technically checked by the Project Coordinator or

a nominated officer not below the rank of a Manager before putting up the same
to competent authority for Technical Sanction. In case of a composite estimate,
the concerned disciplines like Electrical/Signal/ Mechanical shall obtain technical
sanction of their competent authority before sending it to Co-ordinating
SBU/group. The Technical Sanction for the entire work shall be obtained from the
Competent Authority of SBU/group considering the overall estimated cost as per
SOP. The technical check shall cover the following in particular in addition to the
general check on the lines indicated in Paras 4.3 and 4.4 above.

a) The Cost Index adopted on the DSR or other schedules items has been
correctly taken.
b) Cost of Non-schedule items has been prepared, where feasible, correctly
by comparison with a similar item existing in the Standard Schedule of
Rates.
c) In case of Non-schedule items prepared based on the manufacturer’s
specifications or RITES’ experience, the quantities of materials, wastages,
etc. have been correctly considered.

d) The elements of taxes/cesses, overheads and profit, contingences and

RITES’ fee have been taken as per standard norms or provisions in the
contract agreement with the Client as applicable.

4.7 SUPPLEMENTARY ESTIMATE

Any modification of a project subsequently becomes necessary, while a Work is

in progress, which is a material modification to the Scope of Work as already
sanctioned must be covered by a Supplementary Estimate, accompanied by a
full report of the circumstances, which render it necessary. The abstract must
show the amount of the original estimate and the total amount for which sanction
is required including the supplementary amount. This Estimate will also have to
be got sanctioned by the Competent Authority of RITES for overall cost after
acceptance by the Client.

28
4.8 REVISED ESTIMATE

When an excess over the Sanctioned Estimate is foreseen and there is likely to
be unavoidable delay in the preparation of a Revised Estimate, an immediate
report of the circumstances should be made to the RITES’ authority whose
sanction will ultimately be required and to the Client. When a Revised Estimate
is submitted, it must be accompanied by a statement comparing it with the latest
existing sanction of the competent authority and by a report showing the
progress made upto date. The Revised Estimate will have to be got sanctioned
by the Competent Authority of RITES and accepted by the Client well in time
before any contractual liability can be entered into with the Works contractor for
the increased Cost of Work.

4.9 MARKET RATE ANALYSIS

4.9.1 Market rate analysis is required to be prepared by the Tender Committee for
assessing the reasonableness of rates of tenders. Immediately after call of
tenders, the project co-ordinator should start the exercise to obtain market rates
of materials, labour, hire / running charges and other inputs necessary for
preparing Justified Cost/Market Cost taking into consideration special problems,
if any, likely to be encountered in the area / site of work. Complete data for
preparation of Market Rate Cost/Justified Amount by the tender committee
should also be sent by Project Coordinator while forwarding Briefing Note of
Technical bids to the Tender Committee.

4.9.2 Procedure for preparation of market rate analysis for evaluation of tenders based
on CPWD Practice shall be as under:

a) DSR Items
i) Items constituting about 90% of the estimated cost of the work should
be considered for preparation of market rate analysis. Items to be
considered should be selected which have higher estimated cost. One
should start with items having the highest estimated amount and next
lower in the decreasing order and so on, till about 90 % of estimated
amount is reached. For each such DSR item, the Market Rate Analysis
should be done strictly adopting the procedure laid down in CPWD’s
Standard Analysis of Rates without adding GST on works Contract in
that item rate. The Market Rate Cost of each identified DSR item for
the Estimated Quantity of that item should be worked out. The total
Market Rate Cost of all the identified DSR items should be compared
with the total estimated cost of the same identified items considering
the Base DSR 2018 rates without GST on Works Contract and justified
percentage computed. This justified percentage which may be different
to Cost Index advised by CPWD for the period when Estimate has
been made out should be applied on the base DSR 2018 Rates for the
remaining DSR items contributing to balance about 10% of the cost of

29
 DSR items put to tender. The rates so derived for balance about 10%
items should not contain GST on works Contract.
ii) Thus the Market Rate Cost of DSR items can be worked out as under:-
· Identified DSR Items totally costing about 90% of cost of DSR items
put to Tender:-
- Total amount for all such items based on Market Rate worked out
for each individual item as described above multiplied by
Quantity of that item.

· Remaining DSR items, totally costing about 10% of Cost of DSR

items put to Tender:-

- Total amount for all such items based on DSR 2018 Base Rate
for each item enhanced by Computed Cost Index as explained in
sub-para (i) above multiplied by Quantity of that item.

b) Non-DSR Items or Non-schedule Items.

For the Non DSR or Non Scheduled items, the Detailed Estimate made
out as described in Para 4.4 will continue to hold good, as the procedure
envisages Market Rate Analysis.

4.9.3 For estimates based on other than CPWD practice, the following procedure shall
be adopted for making out Market Rate Analysis.
(a) Schedule Items: In case “Standard Analysis of Rates” is available for each
SOR item with breakup of quantities of materials of different types and
labour of different categories, procedure similar to what has been indicated
in Para 4.9.2 (a) may be adopted. If however such “Standard Analysis of
Rates” is not available as in the case of Indian Railways, such Market Rate
Analysis of Schedule of Rate items need not be made out. The
reasonableness of rates received will have to be assessed only by
comparing the percentage above SOR of all items put together with the
Percentage above SOR as accepted for similar works in the same or
adjacent area for recently concluded contracts.
(b) Non Schedule Items: Provisions in Para 4.9.2 (b) will be equally applicable
in this case also.

4.9.4 In both cases of Market Rate Analysis of Cost of Work under Paras 4.9.2 and
4.9.3, the element of GST on Works Contracts (i.e, on the total amount of the
estimate) may be got confirmed from Internal Finance Unit concerned.

30
 SECTION 4 A

PREPARATION OF ESTIMATES FOR SURVEY /GEOTECH/ PLANNING/

CONSULTANCY/ DESIGN ETC.

4.1A Considering the fact that there are no standard / published Schedule of Rates
or Analysis of Rates for preparing estimates for Survey, Geotech
Investigations, Planning, Consultancy or Design assignments etc. the estimates
for such services may be prepared on the basis of past experience of cost of
hiring such services. This can be done by adopting one of the following two
methods.

i.) From the trend of accepted tenders : The estimated cost may be prepared
on the basis of the trend of tenders for similar works accepted in the recent
past duly updated for factors likely to affect the cost. Average cost of two or
three accepted tenders may be considered. The factors affecting the cost
can be

a) Time lag between the date of acceptance of tenders and the preparation
of estimate. In such cases, the effect of general escalation in costs due
to inflation, can be factored in.

b) Difference in the scope of work between the accepted tenders and the
work for which the estimate is being prepared.

c) Complexity of the assignment, remoteness of area, law and order issues

etc.

The impact of the above factors and any other factor which may be
relevant, should be assessed and quantified as accurately as possible
and then considered in preparation of the estimate.

ii.) By analysis of input costs: The scope of the assignment can be divided into
various items and the estimate can be framed for each item by assessing the
cost of inputs involved like rentals of survey/geotech instruments, salary of
surveyors, engineers, CAD operators and other skilled/unskilled workers,
expenditure on transportation of staff and equipment to site and adding
overheads and profits @ 15% on the cost elements. The quantity of
manhours / months and the salary of engineers/designers etc. can be
assessed on the basis of experience.

31
 SECTION 5

CONTRACTS AND FORMS

5.1 DEFINITION OF CONTRACT

5.1.1 When two or more persons have common intention communicated to each other
to create some obligation between them, there is said to be an “Agreement”. An
“Agreement” which is enforceable by law is a “Contract”.
5.1.2 According to Section 10 of the Indian Contract Act, 1872 only those Agreements
are enforceable by law which is made by the free consent of parties competent to
contract, for a lawful consideration and with a lawful object and, are not expressly
declared to be void. This is subject to any special law according to which a
contract should be in writing and attested by witnesses.

5.1.3 The following are the essential ingredients of a contract:-

a) Offer made by one person called the “Promisor”.

b) Acceptance of the offer, by the other person called the “Promisee”.
c) Doing of an act or abstinence from doing a particular act by promisor for
promisee called “Consideration”.
d) The offer and acceptance should relate to something which is not
prohibited by law.
e) Offer and acceptance constitute an “Agreement”, which when enforceable
by law, becomes a “Contract”.
f) In order to make a valid and binding agreement, the parties entering into
such an agreement should be competent to make such agreement.
5.1.4 For the purpose of an Agreement, there must be a communication of intention
between the parties thereto. Hence in the forms of a Contract there is:
- A proposal
- Communication of the proposal
- A communication of the acceptance of the proposal.
5.1.5 The communication of acceptance of the proposal completes the Agreement. An
offer may lapse for want of acceptance or be revoked before acceptance.
Acceptance produces something which cannot be recalled or undone. A contract
springs up as soon as the offer is accepted and imposes an obligation upon the
person making the offer. It has been opined by the Ministry of Law that before
communication of acceptance of an offer, the tenderer would be within his right to
withdraw, alter and modify his tender unless there is a specific promise to keep
the offer open for a specific period backed by a valid consideration.
5.1.6 Amendments to accepted Contracts:-
The conditions and clauses of contract cannot be varied except through a written
Supplementary Agreement with mutual consent of parties to the contract. This

32
 can be done in exceptional cases by the competent authority as per SOP Item
No.7.3 in overall interest of the project, provided that;

i) Concurrence of Finance and RITES Legal Department is obtained.

ii) It does not involve enhancing the Contract rates originally quoted by the
Contractor
iii) Consent of Client is obtained if needed in terms of the contract with them.
iv) The amendment is signed by both the parties to the original agreement.
Proforma for Amendment to the Contract Agreement is at Annexure 5.1.
5.2 CONTRACT DOCUMENTS

5.2.1 RITES Standard Tender & Contract Document Dec 2016 ( Physical & Hard copy
Tenders) and April 2018 (E-Tendering), alongwith its amendments are generally
based on CPWD practices and has been issued separately and/or revised
version to be issued shall be under three parts namely, Part I ‘Technical Bid’,
Part II ‘Financial Bid’ and Part III ‘General Conditions of Contract.’

(A) Part I–Technical Bid

This consists of following sections
Section 1) Notice Inviting Tender and Instructions to Tenderers.

Section 2) Tender & Contract Form

Section 3) Special Conditions

Section 4) Schedules A to F

Section 5) Technical Specifications

Section 6) Drawings
(B) Part II–Financial Bid
The revised standard formats for Percentage and Item Rate Tenders have
been issued separately. These should be followed as applicable.

(C) Part III–General Conditions of Contract (Dec 2016 Edition)

Section 7) Conditions of Contract
Section 8) Clauses of Contract
Section 9) RITES ‘Safety Code’.

Section 10) RITES ‘Model Rules for Protection of Health and Sanitary
arrangements for Workers’.
Section 11) RITES Contractor’s Labour Regulations'.

5.2.2 General Clauses of Contract (Compilation of Sections 7 to 11) should be issued

as part of bidding document. Part III GCC will also be available with up to date
Correction Slips uploaded in RITES’ website< www.rites.com>
33
5.2.3 In the case of tenders to be invited based on CPWD practice, Part III-GCC of the
Standard Tender Documents should be adopted as far as possible without any
modifications. In respect of Part I (sections 1 to 6), blanks should be filled up to
suit exigencies of a specific work taking care that there is no contradiction
between provisions in different sections. In all cases of modifications the sanction
of the Authority Competent to approve deviations from Standard Tender
Documents (SOP Item 2.2) should be obtained.

5.2.4 Special case has to be exercised in preparation of Section 3, depending on the

requirements of the client and scope of work. While standard formats have been
laid down for all sections other than 3,5 and 6; the Project Coordinators will be
required to make out these sections 3,5 and 6 with the assistance of Controlling
Site Engineer and SBU office. General Guideline for preparation of these
sections are given in subsequent paras.

5.2.5 Special Conditions

These should be made out in two parts as described below:

(i) Special Conditions relating to Clauses of Contract as covered by Section

8

These will cover modifications to Clauses of Contract (Section 8) by way

of deletions, additions and alterations. For such items of Special
Conditions, specific reference should be made to the Clause of Contract
being modified, with Clause Number and Heading along with details of
what modifications have been proposed. Clause numbers of these
Special Conditions of Contract may be same as in GCC for ease of
reference. In all cases of modifications, sanction of Competent Authority
Competent to approve deviations from the Standard Tender Documents
(SOP item 2.2) should be obtained.

(ii) Additional Special Conditions

These will deal with items not covered by “Clauses of Contract” (Section
8). Since existing Clauses of Contract cover in detail practically all
requirements of a Works Contract, there may not be the need for many
clauses of “Additional Special Conditions”. But if there are any items, not
relating to Technical Specifications but are required to be included based
on Client’s requirements or Site specific needs, they can be included
under “Additional Special Conditions”.

5.2.6 Technical Specifications

(a) These have to be made out in two parts as under:

i) Standard Specifications:

34
 These are printed documents issued by different organizations such as
CPWD for Building works. Ministry of Surface Transport (Indian Road
Congress) for Road and Road Bridge works and Indian Railways
/RDSO for Track works and Railway Bridge Works. CPWD and MOST
have also made out Standard Schedule of Rates corresponding to
Standard Specifications and also Standard Analysis of Rates for each
item of Schedule of Rates. As far as Indian Railways Standard
Specifications, Schedule of Rates and Analysis of Rates for Building
works are concerned, though they have been approved by Railway
Board, they have not been brought into force by all the Zonal Railways.
Each Zonal Railway has made its own Standard Specifications and
Schedule of Rates and they will be in use till they are replaced by
Unified Indian Railway Specifications and Schedule of Rates/Analysis
of Rates.

ii) Special Specifications

For non-schedule items which are not covered by Standard Schedule

of Rates and hence by the Standard Specifications of the relevant
organization, it will be necessary to draft Special Specifications for
each item. These can be framed on basis of IS Specification/British
Standard Specification or based on the Specifications issued by
manufacturers. The Special Specifications should cover the exact
scope of the item including specifications for materials, workmanship,
method of measurement, quality control tests etc.

For Railway Track and Bridge works, for the present, the details
contained in “RITES Specifications for Railway Track and Bridge
works (September 2010)” may be used with any modification as
required for items of works covered by the Book. Soft copy of these
Specifications is available with Track and Survey wing of Rail
Infrastructure Division at Gurgaon. For items not covered by the
Book, extracts of relevant RDSO or Indian Railway Specifications or
Specifications made out by the Zonal Railways may be relied upon to
draft the “Special Specifications”.

(b) While the Tender Document will cover all identified Schedule and non-
schedule items, during the course of execution of works, some extra or
substituted items may be required to be operated. For such items, the
same principles outlined in Para (a) above will apply depending on the
scope of the item concerned.

5.2.7 Drawings

At the stage of invitation of Tender all drawings, adequate to understand the

specific scope of work involved and those required for execution of the work at

35
 site for at least the first few months should be ready and included in the Tender
Document.

5.3 LUMPSUM CONTRACT

RITES Standard Tender Documents envisage the works being carried out on
item rate or percentage rate basis. But occasionally the clients may require that
the Tenders be called on Lump sum basis. A note on Lump sum contract is at
Annexure 5.2. The Tender Documents for Lump Sum Tenders will have to be
made out with special care by suitably modifying RITES Standard Tender
Document.

36
 SECTION 6

PREPARATION OF TENDER DOCUMENTS AND PUBLICITY

6.1 TENDER SYSTEM

6.1.1 The Tender System is one of the most effective methods of securing competitive
rates for execution of works. The exceptions made to the general rule that the
tenders should be called for in all cases are based only on practical consideration
in order to avoid delay and unnecessary formalities in cases of works of
comparatively small value. The powers of RITES’ officials for calling and
accepting quotations instead of calling tenders have been laid down in Schedule
of Powers. The guidelines to be followed for resorting to quotations in place of
tenders have been laid down in Annexure E of SOP and a copy is at Annexure
6.1.
6.1.2 Tenders can be classified into the following classes;

i) Single Tender
ii) Limited Tender
iii) Open Tender
6.2 SINGLE TENDER
(i) The system of Single Tender should be resorted to only in exceptional
circumstances. Powers of RITES’ officers for calling of Single Tenders are
laid down in SOP. Powers for Nomination of Tender Committee and
acceptance of its recommendations in the case of Single Tender are laid
down in SOP. In addition to getting the approval of the Client, calling and
acceptance of Single Tender will be governed by the guidelines laid down in
Annexure D of SOP and a copy is at Annexure 6.2. Tight target and urgency
cannot be accepted as a reason for calling Single Tender.

(ii) All such cases of Single Tender shall be posted on the web site ex-post-facto.

6.3 LIMITED TENDER

6.3.1 The powers of RITES’ officers for calling of Limited Tenders, subject to approval
by the Client (wherever required, in terms of the Agreement between RITES and
the Client), have been laid down in SOP. The Powers for nomination of
Tender Committee and acceptance of its recommendations have also been
given in SOP. Decision for calling Limited Tenders in place of Open Tenders,
which should normally be resorted to, should be taken keeping in view the
following:
a) Work is required to be done in urgency and in short period and / or
b) The job is of a special nature which could be executed only by a few
special type of Consultants / Contractors who are well versed with the job.
c) Justification for hiring of consultant should be available on file.

37
6.3.2 Limited tenders for works

a) Each SBU (Tender Issuing Office) should maintain a list of working

contractors who have substantially completed works (Billed more than 90% of
the awarded value) satisfactorily with the SBU in the last 5 years, with details
like name/nature/value of work, specifically mentioning the performance in
each case. The list should be prepared/ updated once in a year in the month
of April.
b) Tender enquiry should be sent to all the contractors on the list who would
have qualified had open tenders been invited.
c) For any work of a specialized nature or for any work in an area where
adequate number of suitable contractors are not available, such list of
suitable contractors should be prepared by ascertaining
information/enquiries from offices of Central/State Government
Departments/PSUs operating in the region/Yellow Pages of Directory. The
list should contain at least 6 names.
d) The Limited Tender enquiry must be sent to all eligible contractors in the
approved list under Registered cover / Acknowledgement due and record
kept. A register should be maintained with details of the contractors to whom
the Limited Tenders have been issued.
e) Notwithstanding provisions above, Open tenders should be invited in the
following circumstances:-
i) In the event of insufficient response to the Limited Tender from the
Contractors borne on the Approved list or
ii) When the minimum of 6 Contractors with requisite experience in similar
type of work are not available for placement in the Approved list or
iii) When ring formation is suspected.
6.3.3 Limited Tenders for Survey / Design / Investigation / Planning / Consultancy
Jobs.
a) In cases where a SBU requires such services frequently and Limited
Tenders are resorted to for above jobs, a panel of contractors/sub-
consultants should be formed by each SBU. Panel can be kept valid for
three financial years at a time. This will require an open advertisement in the
papers specifying the general requirement of technical capability and past
experience. For such work, stress may be given to quantum of similar jobs
done over financial capability while calling for Expression of Interest for
enlistment in the panel of Contractors/Sub-consultants. The advertisement
shall be uploaded on the RITES Website also. The Contractors/Sub-
consultants will be advised to give details of their experience in the
specialized field for a period of at least 5 years with supporting documents
and also proof of their satisfactory financial status. There is no objection if
empanelment of contractors/consultants is done for more than one category
for awarding contracts in different financial limits provided intention for
enlisting in various categories is spelt out in press notice along with
applicable PQ Criterion. The applications should be called for, atleast three
38
 months before the starting date of Panel life of three years so that the Panel
can be finalized well in time after scrutiny and verification of the documents.
The selected Contractors/Sub-consultants should be advised of their being
placed in the panel and the period of validity of the panel.
b) The Panel of contractors/sub consultants my be reviewed periodically by the
SBU Head for weeding out of such enlisted contractors/sub-consultants who
have not remained active in RITES or have not performed well. Fresh
applications received from time to time for enlistment, may also be
considered periodically, say after interval of 6 months for inclusion of new
names in the Panel, subject to the fulfillment of PQ Criteria by the
applicants. The empanelment of such contractors/sub-consultants shall be
valid only for residual validity period of the panel.
c) For Limited Tenders for above types of jobs/works in Difficult Areas
(Northeast States, J & K, Andaman & Nicobar Islands) for which, if in the
opinion of SBU Head, adequate response from empanelled
consultants/contractors is not likely, the panel may be supplemented by
ascertaining information/enquiries regarding suitable contractors/consultants
as per procedure described in para 6.3.2 (b).
6.3.4 Small value design/drafting/consultancy jobs, specialized studies, proof
checking, Lab testing etc.
These should generally be executed as per SOP Item No. 4 / 11.4.2 / 11.4.2
(a).
6.4 CONTENTS OF TENDER DOCUMENTS
6.4.1 In case of works for which tenders are to be invited, except in cases where the
Client insists upon adoption of a particular format such as that of CPWD,
Railways, World Bank, MES etc, RITES Standard Tender Document which has
been issued separately should be adopted. Changes in the standard documents
are permitted only to the extent indicated in Para 5.2.4. Any deviations required
to General Conditions of Contract should be included in the Special Conditions of
Contract. In all cases of modifications of the Standard Tender Documents,
specific approval of the Competent Authority (SOP Item 2.2) should be taken
before issue of NIT. While putting up the Tender Document for approval of the
Competent Authority, the Project Coordinator should list out all deviations
proposed in RITES Standard Tender Document and reasons for the same. If, as
per contract between RITES and the Client, the tender document is to be
approved by the Client, no separate approval of Tender Document is required
from the competent authority of RITES. The approval of RITES competent
authority will, however, be necessary if the pre-qualification criteria is different
from RITES standard tender and contract document for works.
While approving the tender documents, following must be particularly ensured:

i) No modifications to the Statutory Clauses have been made.

ii) Special Conditions, if any, are not repetitive and contradictory.
iii) The Schedule of Quantities (BOQ) is based on the detailed estimate duly
sanctioned by the competent authority.
iv) The BOQ does not have any item with ‘0’ quantity.
v) Set of drawings referred to in the BOQ is available.

39
 vi) Technical specifications of all items of work, specially Non schedule items
have been included.
vii) The Completion Period should be decided keeping in view the complexity
of the nature of work involved and keeping in mind the requirements of the
Client. For multistoried buildings, the following guidelines laid down by
CPWD may be kept in mind and may be modified based on site
constraints. Basement may be taken as one storey.
a) Upto 4 storeys – 8 to 12 months
b) Beyond 4 and upto 6 storeys – 12 to 16 months
c) Beyond 6 storeys - 16 to 21 months
viii) Clause 36 of Clauses of Contract in GCC stipulates that details of
Technical staff to be employed in the works should be indicated in
Schedule F. The norms being followed by CPWD in this matter are given
in Annexure 6.3 for guidelines and the same may be adoptedor modified
depending on the complexity of the work by Tender approving authority..
Rates for recovery for Non-deployment of Engineers to be indicated in
Schedule F are also given in Annexure 6.3
6.4.2 The Project Coordinator should personally ensure that there is no deviation
between the Tender Document to be issued to the Tenderer and the Document
approved by the Competent Authority. The Project Coordinator either himself or
by an authorized representative (not below the rank of AM) should date and initial
all corrections, particularly in the Schedule of Quantities, Schedule of Materials to
be issued and Specifications and generally in other essential parts of contract
documents, and also date and initial on all pages of the tender documents
irrespective of the fact whether they contain or do not contain any corrections or
overwritings etc. This is to ensure that any tenderer does not intentionally
replace any page of the Tender Document by his own page.

6.4.3 Before approval of NIT, the following should be ensured as far as possible.

i) Availability of site, funds and approval of plans from local bodies.

ii) Confirmation that materials to be issued to the contractor would be
available.
iii) Availability of structural drawings for the foundations and arrangement for
issue of drawings well in advance of actual requirement at site as per the
program of construction.
iv) Layout plan for all services.

6.4.4 When the Tender Document has been made out by the Client for issue by RITES,
it will be the responsibility of the Project Coordinator to check the same and bring
out the deficiencies, if any, to the attention of the Client and effect modification to
the document as required.
6.4.5 The following should be kept in mind while making out the Tender Documents.
a) In the Schedule of Quantities (Price Bid) use of symbols such as % is
prohibited. For example Per hundred Sq.metre must be written and not %
sq.metre. The units should thus be more specific.

40
 b) In the case of Lumpsum Tenders where Detailed Drawings and Specifications
are to be supplied to the Tenderers, it should be ensured that the Drawings and
Specifications are approved by the Competent Authority. The Cost of the various
items forming part of the work should be correctly assessed with reference to the
relevant Schedule of Rates and in the case of Non Schedule items, on the basis
of rates supported by detailed analysis thereof.

6.5 INVITATION OF TENDERS FOR COMPONENT PARTS

6.5.1 Generally, splitting of works for the purpose of inviting tenders should not be
resorted to. However, due to administrative convenience client’s requirement
and expediency, works may be split up with the approval of competent authority
as per SOP and tenders may be invited separately for the split portions as per
powers delegated.
6.5.2 Accord of Technical Sanction and call of tenders for component parts of the
project, the amount of which appears as a distinct sub-head in the sanctioned
estimate, will not amount to splitting the work and can be dealt with by the
respective authorities as per powers delegated even if the overall amount of the
project may be beyond the competence of any such individual authority.

6.6 PUBLICITY OF TENDERS

6.6.1(i) For ‘Open Tenders’ of works costing over Rs.50 Lac wide publicity should be
given to the Notice Inviting Tenders. Tenders must be invited in the most open
and public manner possible by advertisement in the press both in English and
Hindi as also in the local language dailies, if the local language is different from
Hindi. The number of newspapers in which advertisement should be published
would depend upon the cost of work as per details given below:

a) For works costing more than Rs.25 Crore

English Newspapers Hindi/Regional Language Newspapers

Four Hindi dailies, or

Three Hindi dailies and one Regional

Language daily, or
Two National dailies And
Two Hindi dailies and two Regional
Language dailies

41
 b) For works costing more than Rs.5 Crore but less than Rs.25 Crore

English Newspapers Hindi/Regional Language Newspapers

Two Hindi dailies, or

One National daily And One Hindi daily and one Regional
Language daily

c) For works costing more than Rs.50 Lac but less than Rs.5 Crore

English Newspapers Hindi/Regional Language Newspapers

Two Hindi dailies, or

Regional/Local edition of And One Hindi daily and one Regional

Language daily
one daily

In case several advertising agencies are empanelled with RITES, orders on them
may be issued by rotation as far as possible.

For works costing up to Rs.50 Lac, while press notification of NIT is not required,
it has to be ensured that NIT is positively uploaded on RITES’ website.

In all cases, the NIT should be posted on the Notice Board of the office issuing
the tender. A copy of the NIT should also be sent by the SBU concerned to the
controlling GGM/ED of the Project Office. The newspapers to be selected should
be such that they are popular and will attract the attention of the contractors
operating in the region where the work is to be carried out.

6.6.1(ii)In case decision is taken to lower the pre-qualification/eligibility criteria

subsequent to appearance of NIT in the newspapers, suitable corrigendum
should be got uploaded in RITES website. In such cases, the relevant dates like,
last date of issue of tender documents, of pre-bid meeting, of submission of
tenders and of opening of tenders may also be suitably extended.

6.6.2 Action to post the NIT on RITES website will be taken by the IT division at
Gurgaon. Website address must be given in the advertisement/NIT published in
the newspapers.
6.6.3 In the case of open tender, complete set of tender documents including drawings
should be posted on the website of RITES in downloadable form. In case of
Limited Tenders involving Works/Supplies costing over Rs. 10 lakhs, only NIT

42
 need be posted on the website and firms informed individually by Registered post
also. Tenders/applications made on such downloaded document shall be
considered valid for participating in the tender process. In case of tenders
submitted by the tenderers after downloading from the website, the tenderers
shall furnish the cost of documents by separate demand draft or in any other
form as stipulated in the Tender Document in favour of RITES Limited along with
bid document. In case the cost of documents is not furnished the tender should
be summarily rejected.
Even though the bidder has been permitted to submit his bid in the documents
downloaded from the website, the contract agreement on award of work should
be signed only on the manual copy as issued originally by the concerned RITES
Office.
Suitable provision has accordingly been made in the RITES Tender And Contract
Document 2016 (Physical & Hard copy tenders) and 2018 (E-Tendering)
6.6.4 The advertisement inserted in the Press should be brief but clear in meaning.
The following should be kept in mind.
i) Combined tender notice may be issued for a number of works to be
awarded around the same time by the same SBU.
ii) The Press Notice should indicate the name of work, Estimated Cost,
Earnest Money, Completion Period, cost of the tender document, RITES
Office / website where tender document will be available, last date for
submission of tender, and any other salient details of interest to the
tenderers.
iii) The name of the Tender Inviting Authority should not be included and only
the designation indicated.
Draft specimen of Press Notice for a tender is given at Annexure 6.4 for
guidance.
In case any amendment / corrigendum is required to be issued to the NIT,
there is no need to issue a press notification on the amendment /
corrigendum. But it should be ensured that all such amendments /
corrigenda to NIT as well as the Tender Document are uploaded in RITES
website.
6.6.5 The following guidelines are to be followed by the Tender Inviting Authorities
regarding publicity of tenders:-
a) A watch should be kept on publication of advertisement in the selected
newspapers. Newspaper cuttings in each case should be collected and
kept on record as a proof of publicity actually achieved. Full details of the
dates on which advertisements have actually appeared in the newspapers
should be indicated while sending tender cases to higher officers.
b) It should be ensured that in cases where the tender document/NIT is to be
posted on the website as indicated in para 6.6.3 above, the actual posting
on the website has been done prior to publication of NIT in the
newspapers. A certificate to the effect that the tender document/NIT as the
case may be, has been posted on the website and the date on which
posted, should be indicated while forwarding tender cases to higher
officers.
43
6.6.6 In the case of Open Tenders where pre-qualification of the tenderers has been
resorted to, it will be adequate if the NIT is sent by Registered Post /
Acknowledgement due or issued in person after taking clear acknowledgement,
to only the pre-qualified tenderers.

6.7 PRE BID CONFERENCE

In case of normal works estimated to cost Rs. twenty crores and above and for
specialised works, a pre bid conference may be held by the SBU about 10days
before the last date of submission of the tenders, for clarification of any doubts of
the prospective tenderers on any Condition of the Contract, Specifications etc.
Requests for such clarification, if any, must be sent in advance by the Bidder to
reach RITES concerned office not later than 10 days prior to the deadline for
submission of Tender. Minutes of the meeting and Addenda / Corrigenda to
Tender Document if any will be uploaded in RITES website only and no individual
advice will be sent to any Bidder. Even in case of works costing less than Rs.
twenty crores, where necessary, Pre Bid conference may be held in a manner
described above at the discretion of the NIT approving authority with similar
action to upload the Minutes of the meeting and Addenda / Corrigenda if any.
There is no bar to hold more than one Pre Bid conference in complex types of
works.

6.8 PRE QUALIFICATION OF TENDERERS – JOINT VENTURES

Annexure 1 of RITES Standard Tender & Contract Document lays down the
Qualification Criteria and the requirements to be fulfilled if the bidder happens to
be a Joint Venture. Joint Ventures may be permitted only for Large Works. Joint
Ventures may also be permitted for Composite Works falling in the category of
Normal Works. Composite Works are defined as works involving two or more
components which are of distinctly different character like Formation & Bridges,
P-way Linking, Signalling, Long Span Bridges (span more than 45 metres),
Railway Electrification, Highway/Runway, Building, Air-Conditioning etc.
Annexure 6.5 lays down the guidelines for fixing the qualifying limits for Small,
Normal and Large Works and should be adhered to while preparing Tender
Document based on RITES Standard Tender & Contract Document.

6.9 ONE PACKET AND TWO PACKET SYSTEMS

6.9.1 For works costing upto Rs.3 Crores, Single Packet System shall be adopted with
both Technical and Financial Bids opened simultaneously.
6.9.2 For works costing more than Rs.3 Crores, normally Two Packet System shall be
adopted with the Technical Bid opened first and evaluated. The Financial Bids of
only those tenderers who have come out successful in the Technical Bid will be
opened at a later date. The Financial Bids shall as far as possible be opened
within 30 days of date of receipt of tenders.
However where it is desirable to take up prequalification process separately first
and issue tender documents to only the prequalified applicants, prior approval of
competent authority shall be taken. This decision is to be taken based on the
44
 nature of work, time available and likely response to the qualification process.
There shall be no objection if P.Q. process is taken up simultaneously for more
than one work, indicating particulars of each work distinctly. In such a case,
applicants need not submit credentials separately for each work. But applicants
have to be judged separately for each work and list of applicants qualifying for a
particular work cannot be adopted for another work.
6.10 TIME LIMIT FOR PUBLICITY OF TENDERS
The following time limits between the date of uploading of tenders on website,
and the date of opening of the tenders are laid down but this period may be
varied at the discretion of the officer competent to accept the tenders in terms of
SOP. In order to ensure keen competition, the time schedule given below shall
be adhered to as the minimum. Any reduction in time period shall be only in rare
cases if approved by the Competent Authority under SOP for recorded reasons.
10 days in the case of works costing up to Rs two crores.

2 weeks in the case of works costing more than Rs. two crores and up to Rs. ten
crores.

3 weeks in case of works costing more than Rs.10 crores.

It has to be ensured that the Tender Documents are ready well before the date of
Call of Tender date from which the Tender Papers will be available for issue to
the tenderers/ date of uploading of Tender Document in RITES website.

6.11 RE-INVITATION OF TENDERS / EXTENSION OF PERIOD

6.11.1 In case of re-invitation of tenders, all the formalities mentioned above shall be
observed. The circumstances leading to the need for retendering should be
carefully considered so that necessary modifications in the Tender Documents
may be made while retendering. In cases when the dates and time for sale and
receipt of tenders are required to be extended or qualification criteria are to be
changed due to unavoidable circumstances, a proper notice for the same will be
put up on the notice board of SBU and in the Web Site of RITES. While
retendering for the work, tender will not be issued to the contractor, who has
defaulted leading to forfeiture of Earnest Money.
6.11.2 All tenders should be invited in the name of the Client. It is therefore, necessary
that the words “RITES Ltd. on behalf of the Client” should be incorporated in the
press notice for publication in the newspapers.

45
 SECTION 7

SALE OF TENDER DOCUMENTS

7.1 DOCUMENTS TO BE READY IN TIME

Tender documents should be prepared and kept ready for sale to the contractors
and for uploading in RITES website as per provisions in Para 6.6.3, before the
notice actually appears in press or is pasted on the Notice Board and every
contractor desiring to tender shall be asked to make a written application. It is
the responsibility of the SBU Head to see that tender documents are made
available to the contractors as soon as the application is made. In the case of
open Tenders, where prequalification has not been done in advance, Tender
Documents should be issued individually against acknowledgement to all those
who deposit the cost of Tender Document, ( unless they are exempted from
payment of such cost as a matter of Government Policy) irrespective of whether
eligibility criteria prescribed in the NIT are satisfied or not. It is only the Tender
Committee which is competent to decide whether the tenderer has satisfied the
qualification or other criteria or not. It is not a matter within the competence of
Tender Issuing Officer.

7.2 SUPPLY OF DUPLICATE SET OF TENDER DOCUMENTS

If so desired by a tenderer, a duplicate set of tender documents, duly stamped as
“Duplicate”, may be issued to him at the cost of the original set of documents at
the time of issue of the original papers. Duplicate copy cannot be submitted as a
tender. In case of loss of original set of documents, the contractor should be
required to buy a second set and submit it as tender.

7.3 TIME INTERVAL BETWEEN SALE OF TENDER DOCUMENTS AND

OPENING OF TENDERS

Any tender form which is issued either for sale or for office use should be issued
under the signature of the Tender Inviting Authority in terms of SOP or his
authorized assistant (not below the rank of AM). In order to give contractors
sufficient time to study tender documents and work out reasonable rates, the
tender papers shall be sold as per following time schedule :–

Receipt of applications for issue of forms will be stopped by 1600 hours 3 days
before the date fixed for opening of tenders. Issue of tender forms will be
stopped 2 days before the date fixed for opening of tenders.

7.4 SCALE OF CHARGES FOR TENDER DOCUMENTS

7.4.1 The following will be the scale of charges for the sale of tender forms to
contractors unless they are exempted from payment of such cost as a matter of
Government Policy :-

a) Works costing up to Rs. 1.00 crore: Rs. 2500/-.

46
 b) Works costing upto Rs.10 crores Rs.7000/- (minimum) and Rs.10,000/-
(maximum) depending on the number of drawings/other documents to be
issued with the tenders.
c) Works costing more than Rs.10 crores Rs.12,000/- (minimum) and
Rs.18,000/- (maximum) depending on the number of drawings/other
documents to be issued with the tenders.
7.4.2 In special cases authorities competent to approve NITs have got the discretion to
add to the prices, mentioned above any additional cost of drawings to be
supplied along with tender documents depending on the labour actually involved
in their preparation.
7.5 SUPPLY OF DRAWINGS
Plans and drawings adequate for understanding, the scope of work and thus
facilitating the Bidders to quote competitive rates must be supplied along with
tender documents. Detailed drawings required for actual construction can be
issued to the successful tenderer after execution of the Contract Agreement.

7.6 PRECAUTIONS IN SALE OF TENDER DOCUMENTS

To avoid the possibility of bogus and fake tenders being submitted, it is

necessary that tender documents are sold individually and acknowledgements
taken from contractors or their accredited representatives in the Sale Register of
Tenders while handing over tender documents to them. In cases where tender
documents are transmitted by post, these should be dispatched by Registered
A.D. Post or by equivalent means to ensure availability of proof of actual dispatch
of Tender Documents.

47
 SECTION 8

RECEIPT, OPENING AND ACCEPTANCE OF TENDERS IN MANUAL/PHYSICAL

FORM
(For E-tendering, Refer Section 29)

8.1 PROCEDURE TO BE ADOPTED

8.1.1 With a view to avoiding the possibility of original Tender Documents being
tampered with, the following procedure shall be adopted in connection with the
receipt and opening of tenders and their acceptance. Detailed instructions
contained in the “Notice Inviting Tender and Instructions to Tenderers” contained
in the Standard RITES’ Tender Document should also be studied carefully.
8.1.2 Receipt of Tenders
All the tenders shall be received in the office indicated in the NIT where Tender
Box shall be kept. The Box shall be locked and sealed so that documents
dropped in the Box cannot be tampered with. If the Tender Documents to be
deposited are bulky and cannot be put in the Tender Box, the NIT should
specifically indicate the name and designation of the official /s who will receive
the Tender Documents in person. The nominated official when receiving the
Tender Document should check if it is in sealed condition and give
acknowledgement of receipt to the Tenderers with date and time of receipt. He
should sign on the top of the envelope with the time and date of receipt. Similarly
in case any tender offers are received by post, the official nominated for receiving
the same should send by post the acknowledgement after checking if the seal of
envelope is intact, indicating the date and time of receipt. He will also record on
the envelope the time and date of receipt and affix his signature thereon. If the
envelop can be accommodated in the Tender Box, he shall drop it in the box. If
the envelope is bulky, he shall keep it in safe custody.
At the time and date indicated in NIT as closing time for receipt of Tenders, the
opening in the Tender Box for dropping of tender will be sealed with paper
bearing the signature of the authorized official along with date and time.
8.2 DELAYED AND LATE TENDERS
Late or delayed tenders are not to be opened or considered at all and the
unopened envelopes should be returned to the tenderer indicating the reasons
for the same.

48
8.3 INSTRUCTIONS FOR TENDER OPENING OFFICERS
8.3.1 A Tender Opening Committee consisting of two Regular officers, one from the
SBU concerned (not below the rank of Engineer) and the other from Finance (not
below the rank of Accountant) should be nominated by the Tender Accepting
Authority or the SBU Head (whoever is of the lower rank) for opening the
tenders.
8.3.2 The nominated Tender Opening Officers shall report to the Project Coordinator at
least half an hour before the deadline for receipt of tenders. They should
familiarize themselves especially with the following:–
i) Earnest Money - Amount and Form in which it can be submitted and
Validity Period as given in Section 9 of this Guideline.
ii) Cost of Tender Document and the form in which to be furnished, applicable
in cases where the tender is submitted in the form downloaded from
RITES’ website.
iii) Government policy regarding exemption from payment of Cost of Tender
Document and Earnest Money to a certain class of bidders. (See
Annexure 8.5) and Government policy regarding exemption from payment
of Earnest Money alone and not Cost of Tender Document to a certain
class of bidders (See Annexure 8.5A).
iv) The benefits under Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order, 2012 are applicable to only Supply and
Service Contracts.
8.3.3 The Tender Opening Officers shall make themselves thoroughly conversant with
the procedure for opening and dealing with the opened tenders. After obtaining
instructions from the Project Coordinator or the officer deputed by him for this
purpose, Tender Opening Officers shall take out the tenders from the Tender
Box. Before opening the Tender Box, the Opening Officers shall verify that the
seal put on the opening in Tender Box and the seal on the lock for the door of the
Tender Box are intact. If not, the fact must be immediately brought to the
personal notice of the Project Coordinator for his instructions.
8.3.4 Tenders shall be taken out from the Tender Box and opened at the time
stipulated thereof in the presence of such of the tenderers who have submitted
tenders or their representative who are present. Tenderers should also be
encouraged to be present at the time of opening of the tenders. The names of
the tenderers and / or their representatives who are present at the time of
opening shall be recorded by the Opening Officers in the register meant for this
purpose and it shall be signed by both of them. While opening the tenders, no
opportunity should be given to any tenderer to repudiate, amend or explain any
rate or condition quoted in the tender.

8.3.5 In the case of Single Packet System where the Technical Bid and the Financial
Bid are to be opened at the same time, the officers opening the tender should first
open Envelope 1 marked (i) `Earnest Money’ (ii) `Cost of Tender Document’ (if
applicable), or `Documents Substantiating Exemption from Payment of Earnest
Money and Cost of Tender Documents’ and if the Earnest Money in terms of the
Form, Amount and Period of Validity is in order, and where the tender has been
49
 made out in the form downloaded from RITES website, the cost of Tender
Document has been furnished for correct amount and in one of the stipulated
forms (unless exempted from making such payments as substantiated with
documents), then only should they proceed to open the Technical Bid and
Financial Bid Envelopes. In case the Earnest Money is not found in order, and
where applicable, the Cost of Tender Document has not been furnished correctly
(unless exempted from making such payments), the Technical Bid and Financial
Bid should be returned to the tenderer on the spot if he is present there; otherwise
later by Registered Post Acknowledgement Due. An entry shall be made in the
Tender Opening Register to this effect. The Technical Bids and Financial Bids of
those tenderers whose Earnest Money Deposit is found acceptable, and where
applicable the cost of Tender Documents has been furnished correctly (unless
exempted from making such payments), will then be opened. The rates and
amounts quoted and conditions stipulated by the tenderers, if any, will be read
out.In case Tender Opening Committee has any doubt regarding the authenticity
or acceptability of the instruments of Earnest Money and Cost of Tender
Documents furnished by a bidder, they should open the further packets of such
bidder, putting on record the reasons for such doubt and leave the matter for
deliberation by Tender Committee and final decision of the accepting authority.

8.3.6 In case of Two Packet System, Technical Bids shall be opened first following the
procedure indicated in Para 8.3.5 and after Technical Bid evaluation is
completed, which may take some days, Financial Bid in respect of only those
Tenderers whose technical Bids are found acceptable shall be opened on a date
to be fixed and advised to the Tenderers concerned. In rare cases where
deposition of Earnest Money along with the tender was not insisted upon due to
expected long time in evaluation of Technical Bids, the Financial Bids should be
opened only after getting the Earnest Money unless the tenderer is exempted
from payment of Earnest Money as a matter of Government Policy. Whenever
the Financial Bids are opened, the rates and amounts quoted as well as the
conditions if any, stipulated by the Tenderers will be read out.
8.3.7 In the Two Packet System where only Technical Bid is to be opened first, the
Tender Opening Officers will also sign each and every unopened Financial Bid
envelope and seal them in another outer envelope. The signatures with date of
the Tenderers or their representatives present at the time of opening of Technical
Bid shall also be taken on the outer envelope which should be kept in safe
custody by the Project Coordinator.
8.3.8 In both Single Packet System and Two Packet System, whenever the Technical
Bids and Financial Bids are opened, the following procedure shall be adopted :–
Both the Tender Opening Officers shall sign with date on all the following
pages:–
Technical Bid
i) Tender and Contract Form signed by the tenderer.
ii) Qualification Information filled in and signed by the tenderer.

50
 iii) Where Integrity Pact is applicable as per NIT, the Integrity Pact duly
signed and witnessed by the tenderer.
Financial Bid
Schedule of Quantities (BOQ) filled in and signed by the tenderer.
8.3.9 If by any chance there are any pages where any modification has been done by
any tenderer by way of corrections, over writing, omissions, additions or
conditions, such pages should also be signed with date by both the Opening
Officers. While going through the pages of the Tender Document issued by
RITES, the Tender Opening Officers should also check if each page bears the
signature of an official of the office of Tender Inviting Authority.

8.3.10 Officers opening the tenders shall date and initial all corrections, overwritings,
omissions, additions and conditions in both Technical and Financial Bids,
specially in RITES Tender and Contract Form, Qualification Information and
Schedule of Quantities as indicated in Para 8.3.8 and in the other pages referred
to in Para 8.3.9 above. Use of correction fluid in tender documents should not be
allowed. In case use of correction fluid is noticed, such tender will be liable for
rejection.

8.3.11 The officers concerned should mark all corrections, over writings, omissions,
additions and conditions and attest them in red ink. In case there area number of
corrections, over writings, omissions, additions and conditions in any page, each
such correction, over writing, omission, addition and condition should be allotted
an independent number and this numbering should be in serial order. Thus if
there are three corrections in one page, they should be numbered serially as
Correction No.1, No.2 and No.3. Similarly, Overwriting No.1, No.2, No.3 etc.

8.3.12 The total number of such corrections, over writings, omissions, additions and
conditions on each page should be clearly mentioned at the bottom of that page.
The Tender Section will supply a suitable rubber stamp to the Tender Opening
Officers so that they can put the rubber stamp impression in all pages where
corrections etc have been made by the Tenderers and number of corrections etc
filled in the relevant columns along with their initial and date. If in any page there
is no correction etc, even then the rubber stamp impression is to be put and at
bottom of page “Nil” should be written against correction etc.

8.3.13 Any ambiguities in rates quoted by the tenderer, in words or in figures, must be
clearly indicated on each page of the schedule attached to the tender to which it
concerns.

8.3.14 In case where the contractor has quoted rates in rupees and no paisa is
mentioned the word “only” should invariably be added after the words rupees and
the corrections should be initialed and dated with suitable remarks at the end.

8.3.15 Where the contractors have omitted to quote the rates in figures or in words, the
officers opening the tender should record the omissions on each such page of
the Schedule.
51
8.3.16 The contractors are required to quote rates in words including paise to avoid
chances of tampering in rates and if the contractor fails to do so, the Tender
Opening Officers should write the rates in words at the time of opening of tenders
under dated initials in addition to recording the omission on the part of tenderer.

8.3.17 The Tender Opening Officers shall scrutinize the tenders to ascertain whether
any of these contain any conditions/stipulations by the tenderer. If there is any
covering letter attached to the tender, the letter shall be initialed and dated by
both the Opening Officers.

8.3.18 In case any tenderer has failed to total the amount of his tender, the fact should
be stated by the Tender Opening Officers in the Schedule of Quantities and in
the Tender Opening Register. If the rate for any item in Schedule of Quantities is
missing, the Opening Officer shall insert a remark to that effect in the relevant
place in Schedule of Quantities and this fact should also be stated in Tender
Opening Register. The remarks shall be initialed and dated by the Tender
Opening Officers.

8.3.19 In the case of Percentage and Lump Sum Tenders, the Percentages and Total
Amount quoted should be read out to the tenderers as far as possible. In the
case of Item Rate Tenders the Rates and the total amounts worked out by
different tenderers may be read out, if requested by the tenderers present.

8.3.20 The Tender Opening Officers will be fully responsible for ensuring that they sign
the tender documents at all the places wherever required as per these
instructions before handing over the tender documents to the designated officer
of the Tender Cell. They will be fully responsible for any consequences arising
out of their failure to sign the tender documents at the places required as per
these instructions.

8.3.21 At the time of opening of tenders, the Tender Opening Officers shall initial and
date in ink on every envelope and also at the following places in every tender in
addition to the places indicated in paras above.

a) On the right hand top corner of the first page of the tender document.
b) General Summary filled in by the tenderer.
c) Writing in different ink, and different hand-writing when compared with the
general writing.
Extensions and totals need not be checked by Opening Officers.

8.3.22 Each of the Tenders received shall be given a serial number. If (say) 6 Tenders
are received, they should be numbered as 1/6, 2/6 etc.

8.3.23 The serial number of the tenders shown on the envelope shall be shown along
side the initials of the Tender Opening Officers on the first page of the tender

52
 documents, covering letter and also on the envelope(s) containing the Financial
Bid.

8.3.24 If a blank tender has been received, the words ‘Blank Tender’ shall be written on
the envelop containing tender and the fact shall be noted in the Tender Opening
Register against the name of the tenderer concerned. Similarly, if no tender is
received the words “No tender” shall be written against the name of the person /
firm concerned to whom a tender was issued. Similarly “Late Tender” or
“Delayed Tender” should be written against the name of the concerned Tenderer.

8.3.25 For the purpose of arriving at the number of tenders to be filled in the Tender
Opening Register, a blank tender shall be reckoned as a tender received.

8.3.26 The Tender Opening Officers must fill up all information in Tender Opening
Register in the format given at Annexure 8.6.

8.3.27 The Tender Opening officers have to fill and complete the Proforma of Tender
Opening Register properly and the same has to be got signed by all the
tenderers / their representatives present and has also to be signed by the Tender
Opening Officers before handing over to the Project Coordinator or his
representative.

8.3.28 If for any exceptional reason a tender box is not opened at the appointed time for
opening of tenders, the fact shall be brought out in Tender Opening Register
giving reasons there for by the tender Opening Officers. If for any exceptional
reason there is time to clear the box but not enough time to open the tenders, the
fact with reasons shall be brought out properly in the Tender Opening Register.
The key shall also be handed over to the concerned Project Coordinator along
with the unopened Packets of Tender Documents for safe custody and for
opening of the Packets on a subsequent date after due advice to the Tenderers.

8.3.29 Late or Delayed tenders shall be returned unopened to the tenderers and Tender
Opening officers shall mention this fact in the Tender Opening Register and
should be discussed in the briefing note.
8.3.30 On completion of work of opening of tenders the tender Opening Officers will
hand over the tender documents along with EMD received and Cost of Tender
Document if any furnished by any Bidder who has submitted the Bid in the form
downloaded from RITES website, to the officer deputed by the Project
Coordinator concerned. Both the opening officers and the deputed officer will
date and sign in the Tender Opening Register as token of proper Handing over /
Taking over of the tender documents. Deputed Tender receiving officer will bring
to the notice of the Tender Opening Officers any non-compliance of the above
instructions observed by him while taking over the tender documents.
8.4 EVALUATION OF TENDERS
Following steps shall be required in evaluation of tenders:-
1. Preparation of Briefing Note on Technical Bids by Tender Briefing
Committee and its scrutiny by Project Co-ordinator as per procedure
explained in para 8.5.
53
 2. Evaluation of Technical Bids as per procedure explained in para 8.6.
3. Verification of authenticity of credentials relating to Work Experience and
any other documents as per tender provisions submitted by the bidders
whose Technical Bids are otherwise found acceptable. This is a parallel
activity to be done simultaneously with the steps to be taken as per Sl.
Nos. 4, 5 & 6 of this para. The project Coordinator concerned, however,
should ensure that before submission of recommendations by the Tender
Committee on financial bid to the Tender Accepting Authority, verification
of authenticity of Credentials/documents of 'L-1' bidder is completed. The
project Coordinator may make use of fax/email or depute an officer not
below the rank of a Manager for verification of the credentials discreetly
and expeditiously so that tenders are decided within their validity.
4. Opening of Financial Bids as per procedure explained in para 8.7.
5. Preparation of Briefing Note on Financial Bids by Tender Briefing
Committee and its scrutiny by the Project Co-ordinator as per procedure
explained in para 8.8.
6. Evaluation of Financial Bids as per procedure explained in para 8.9.
7. No Post-tender modification by any tenderer shall be taken into
consideration. As regards suo-moto rebate / discount offered by any
tenderer after opening of tenders, provision in Para 8.9.1 and 8.10.9 will
be applicable.
8. In case any of the self attested documents turns out to be misleading or
false, the EMD of the concerned tenderer will be forfeited and Business
dealings banned after following the procedure laid down in Annexure VIII
of Section I of RITES Standard Tender & Contract document. Such tender
will not be treated as a valid tender for the purpose of determining the
lowest tenderer.
8.5 PREPARATION AND SCRUTINY OF BRIEFING NOTE ON TECHNICAL BID
(APPLICABLE FOR BOTH SINGLE PACKET AND TWO PACKET SYSTEMS)
8.5.1 A Briefing Committee consisting of two members - one from the concerned SBU
(An officer not below the rank of regular Engineer, preferably AM) and one from
Finance (not below the rank of regular Junior Manager) shall be nominated by
the concerned SBU Head or his representative (not below the level of Project
Coordinator) in consultation with Finance. The committee will take over the
tender opening register and tenders received and go through the same. The
Briefing Committee will prepare briefing note as detailed below and record the
following certificate:
“We have personally gone through the Tender offers and we certify that the
Briefing Note and the Comparative Statement correctly reflect the contents of the
Tender Offers”.
The date up to which the Tenders are valid should be clearly marked on the
forwarding Note to the Tender Committee so as to keep a watch on finalization of
the tender within the validity date of tender.
8.5.2 The Briefing Note will include the following details:–

54
General
i) Tender No.
ii) Name of work _______________________________________
iii) Whether retender: If so, the reasons leading to retender:-
________________
iv) Reference to Administrative Approval by Client_____________
Sanction for Expenditure by Client________________________
v) Reference to Technical Sanction of Detailed Estimate by
Competent Authority of RITES (Ref. SOP) or Detailed Estimate
sanctioned by the Client and adopted after checks by RITES
vi) Reference to approval of Tender Documents including NIT by Competent
Authority of RITES (Ref. SOP) or Tender Document furnished by the
Client and adopted after check by RITES.
vii) Date NIT published in the News papers (when applicable)
viii) Date NIT / uploaded in RITES website.
ix) Date Tender Document uploaded in RITES website (where applicable)
x) No. of tender papers sold
xi) No. of tenders, with breakup of those in hard copy supplied by RITES and
those submitted in the form downloaded from website, received and
Earnest Money Deposit envelopes and Envelopes with Cost of Tender
Document (where applicable) opened.
xii) No. of tenders whose Earnest Money Deposit and / or cost of Tender
Document (where tender has been submitted in form downloaded) not
found in order with the names and addresses of Tenderers ______
xiii) No. of tenders whose Earnest Money Deposit and Cost of Tender
Document where Tender has been submitted in form downloaded from
RITES website found in order and addresses of tenderers and Tender No.
allotted ______
xiv) No. of Delayed / Late Tenders received to be returned, unopened, with
names and addresses of Tenderers _____
xv) RTGS details of bidders.
Salient Features of Tender

i) Brief Scope of Work

ii) Estimated Cost
iii) Type of Tender - Item Rate or Percentage Rate or Lump Sum
iv) Stipulated Period of Completion
v) Names of News Papers and dates when NIT published
vi) Date of Pre-Bid Conference
vii) Date and Time When tenders opened
viii) Date upto which tender offers are valid.

55
 Salient details of offer by each tenderer (Those whose EMD and Cost of
Tender Document of Bids submitted in form downloaded from RITES
website) are prima facie in order)
i) Name of tenderer
ii) Number allotted to the tenderer
iii) Technical Bid
a) Earnest Money Deposit
– Form in which furnished
– Amount of Earnest Money
– Validity Period
– Whether Earnest Money Deposit acceptable as per Contract Conditions
b) i) Authority to Sign - Whether the person who has signed the
Documents has the necessary Authority to Sign
ii) Integrity Pact : Whether the Integrity Pact annexed to Section I – NIT and
Instructions to Tenderers, has been signed by authorized representative of
Bidder and duly witnessed.
c) Qualification Information
(Supporting Data / Calculations to be annexed)

Sl. Criterion of Minimum Qualification of Reference (Vol. No. & page

No. Qualification qualification tenderer as per No. ) where qualification
required as details details have been furnished
per Tender furnished
Document

d) Deficient documents /information in the Technical Bid.

8.5.3 The Briefing Note should be scrutinized for its completeness by the Project
Coordinator before putting up the same to the nominated Tender Committee (in
cases where he is not the Tender Committee Member). While forwarding Briefing
Note to the Tender Committee, the Project Coordinator shall also enclose
statement of market rates of all major items and peculiar situations/circumstances,
if any, relating to the working conditions in the area where the work is to be
executed, so as to facilitate preparation of Market Rate Cost/Justified Amount, by
the Tender Committee, if required.

8.6 EVALUATION OF TECHNICAL BIDS BY TENDER COMMITTEE

(APPLICABLE FOR BOTH SINGLE PACKET AND TWO PACKET SYSTEMS)

56
8.6.1 Tenders are to be evaluated by a Tender Committee consisting of three
members including one from Finance as stipulated in the relevant SOP item on
‘Serving as Members of the Tender Committee’. The members of the Tender
Committee shall be nominated by the Competent Authority of RITES in terms of
Powers indicated in SOP.

If any member of the Tender Committee as constituted has any personal interest
in any of the tenderers participating in the Tender, he should bring this fact to the
attention of the Competent Authority, who shall arrange to replace that member
by another suitable person. The SBU Head may constitute Standing Tender
Committee (with provision for alternate members) if considered feasible by him.
8.6.2 The Tender Committee may go through the briefing note and tender documents
and evaluate the tender as under:

a. First check whether any of the tenderers is currently on RITES’ Negative List of
Contractors. In case any tenderer is found to be on the Negative List of
Contractors, then his tender may not be processed further and this fact be
brought out in the Tender Committee’s recommendations. In case none of the
tenderers is in the Negative List of Contractors then a certificate to this effect
should be recorded in Tender Committee’s recommendations.

b. Then check the Earnest Money Deposit of the Tenderers whose Technical Bids
have been opened to confirm that the same are in order (unless the tenderers
are exempted from payment of Earnest Money as matter of Government
Policy). If the Earnest Money Deposit is not in order, no further action need be
taken for evaluating the Technical Bids of such Tenderers. Similar action
should be taken with regard to Cost of Tender Document when the tender has
been submitted in a form downloaded from RITES website.

c. The Tender Committee will review the “Authority to sign”, “Integrity Pact” and
“Qualification Criteria” and other details furnished in the Technical Bid of those
Tenderers whose Earnest Money Deposit has been confirmed to be in order
(unless the tenderer(s) is /are exempted from payment of Earnest Money as a
matter of Govt. policy). If any details are deficient or are not in order, the
following procedure shall be adopted.

d. Clarification/information need be called for only to obtain clarifications on

documents originally submitted along with the bid. (Since members of Tender
Opening Committee are required to initial all documents submitted by bidders in
support of meeting the qualification criteria, only such documents as initialled by
the members of Tender Opening Committee, will be considered as “originally
submitted along with the bid”.) In no case should the bidder be asked or allowed
to submit additional documents in support of his meeting the qualifying criteria,
which were not submitted along with the original bid. Where it is decided to call
for information/clarification from any bidder, on any document already submitted
along with the original bid, such request may be issued by a letter giving a
reasonable period of 10 to 12 days for submission. In case no response is
received from the Tenderer concerned, or the response received is incomplete
57
 no further information/clarification need be called and such tender may be
evaluated on the basis of available documents.

e. The decision to obtain clarifications from the tenderers concerned on the

deficiencies noticed in the documents/information can be taken by the
Convenor of the Tender Committee / Project Coordinator. Recommendation on
satisfaction of qualification criteria shall however be from full Tender
Committee.”
8.6.3 In case any bidder in his declaration, furnishes details of (i) record of poor
performance such as abandoning the works, not properly completing the
contract, inordinate delay in completion, litigation history, financial failure etc., or
(ii) banning of business by any Central /State Government, Department / Public
Sector Undertaking or Enterprise of Central / State Government the Tender
Committee may take action as indicated below, duly furnishing all relevant details
to the Tender Accepting Authority.

If the declaration is of record of poor performance as detailed in (i) above, full

details should be called for by the Tender Committee from the bidder concerned
and / or his past employer on the circumstances leading to such poor
performance. The details should be analysed by the Tender Committee to
determine if the poor performance was due to failure of the bidder or due to
circumstances beyond his control. If assessed as due to circumstances beyond
the control of the bidder, the bid may be recommended to be considered by the
Tender Accepting Authority.

If the declaration is on banning of business as detailed in (ii) above, the Tender

Committee may check if the ban is still current. If the ban is no longer current,
the bid may be recommended to be considered. If the ban is current and is by
the Ministry of Railways or by a PSU under the Ministry of Railways or the
Client’s Ministry, the bid should be recommended to be rejected. If ban is still
current but imposed by any other Central Government Department or Central
PSU or State Government Department or State PSU or Corporation / Local Body,
full details should be called for by the Tender Committee from the bidder
concerned / Department, Government concerned. The details should be
analyzed by the Tender Committee to determine if the ban was due to the failure
of the bidder or circumstances beyond his control. Further action may be taken
as indicated for cases of declaration on record of poor performance, in para
above. Normally in cases of fraud, misappropriation, cheating etc., the bid may
be recommended to be rejected.
8.6.4 Based on a review of the details furnished, the Tender Committee will put up to
the Tender Accepting Authority their recommendation indicating which of the
Technical Bids can be accepted, which Bids can be provisionally accepted
subject to making up of deficient documents/confirmation of credentials from past
clients/Banks and which of them are not acceptable.
Based on the decision of the Tender Accepting Authority, the Tenderers whose
Technical Bids have not been found acceptable will be advised by the Project
Coordinator about this fact in writing giving reasons for non-qualification and
asked to take back the Earnest Money and the unopened Financial Bid (in the
case of a Two Packet System).
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 Such intimation about rejection of their Technical Bids should be sent before
opening of Price Bids from Tenderers whose Technical Bids have been found
acceptable.

8.7 OPENING OF FINANCIAL BIDS

In Single Packet System, the Financial Bids are opened along with the Technical
Bids. In the case of a Two Packet System, after decision on recommendations of
Tender Committee on the Technical Bids, Financial Bids in respect of only those
Tenderers whose Technical Bids are found to be acceptable or provisionally
acceptable shall be opened on a date to be fixed and advised in writing to the
Tenderers concerned. The Tenderers whose Bids have been provisionally
accepted should be clearly advised that their prequalification is only provisional
and will be subject to receipt of deficient documents/confirmation of credentials
from past Clients/Bank.
It may be ensured that Tenderers whose technical bids have not been found
acceptable in the 2 pocket system are intimated to that effect mentioning on
which ground the bidder did not qualify before opening of Financial Bids of
Tenderers whose Technical Bids are found acceptable.
Whenever the Financial Bids are opened, the percentages above / below and the
total Amounts quoted as well as the condition if any, given by Tenderers shall be
read out as described in para 8.3.19

8.8 PREPARATION AND SCRUTINY OF BRIEFING NOTE AND COMPARATIVE

NOTE FOR FINANCIAL BIDS (APPLICABLE FOR BOTH SINGLE PACKET
AND TWO PACKET SYSTEMS)
8.8.1 Nominated Briefing Committee will take over the tender opening register and the
tenders received and go through the same. The Briefing Committee will prepare
briefing note as detailed below and record the following certificate:–
“We have personally gone through the tender offers and we certify that the
Briefing Note and the Comparative Statement correctly reflect the contents of the
tender offers”.

The date upto which the tenders are valid should be clearly marked on the
forwarding note to the Tender Committee.

8.8.2 The Briefing Note, besides details mentioned earlier, shall include the following
details:–
a) Discrepancies noticed in rates/amount quoted on BOQ Items:–
Item Rate Tender
 BOQ item numbers where rates in figures and words as well as the
amount for the item are given by the tenderer but the unit rates in
figures and words don’t agree with each other.
 BOQ item numbers where unit rates in figures and words have been
given but the amount for that item not given.

59
  BOQ item numbers where rates in figures and words as well as the
amount for the item are given by the tenderer but the amount does not
correspond with the rate either in figures or in words.

 BOQ item number where unit rates in figures and words agree but the
amount for that item has been given wrongly.

Percentage Rate Tender

 Percentages are quoted in figures and words along with the total tender
amount by the tenderer but the percentages quoted in figures and
words don’t agree with each other.

 Percentages are quoted in figures and words but the total tender
amount is not quoted.

 Percentages are quoted in figures and words along with the total tender
amount but the total tender amount does not agree with the
percentages quoted either in figures or in words

 Percentages quoted in figures and words tally but the total tender
amount has been given wrongly.

b) Conditions stipulated, if any.

c) Total Tender Amount
(To be made out from the details available in the Comparative Statement)

Total amount Tender amount % above / below Remarks (if any)

at unit rates quoted by the RITES’ Total
of RITES for tenderer for all amount, as
all items items quoted

8.8.3 The Comparative Statement will be prepared based on the Financial Bids. The
Performa for Comparative Statements for Item Rate Tenders and Percentage
Rate Tenders are given respectively in Annexures 8.1A and 8.1B. In the case of
discrepancies in rates, amount & percentage, the procedure to be followed will
be as indicated in the Note below Annexure 8.1A and Annexure 8.1B. While
making the Comparative Statement, the estimated effect of the Price Variation
Clause (if any) during the period of implementation of the Contract, will not be
taken into account.
8.8.4 Rates quoted by L-1
In item rate tender, the Comparative Statement made out by the Briefing
Committee will show for each item the estimated unit rate worked out by RITES,
the rate quoted by the tenderer L1 and the percentage above / below RITES’
rates.

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 In Percentage rate tender the comparative chart will show for each Schedule the
percentages above / below on RITES Estimated Cost as quoted by the tenderer
L1.

8.8.5 The Briefing Note should be scrutinized for its completeness by the Project
Coordinator before putting up the same to the nominated Tender Committee in
cases where he is not the Tender Committee member.

8.8.6 While forwarding Briefing Note to the Tender Committee, the Project Co-
ordinator shall draw the attention of the Tender Committee to the statement of
market rates of all major items and peculiar situations/circumstances, if any,
relating to the working conditions in the area where the work is to be executed,
the details of which were forwarded to the Tender Committee in terms of para
8.5.3

8.9 EVALUATION OF FINANCIAL BIDS BY TENDER COMMITTEE (APPLICABLE

FOR BOTH SINGLE PACKET AND TWO PACKET SYSTEMS)

8.9.1 The Tender Committee has to assess the reasonableness of the offers. Tenders
with any condition shall normally be rejected. However tenders with conditional
rebates / discounts may be considered, but without taking into account the
conditional rebates / discounts for the purpose of evaluation of the bid price.
Tender Committee should specifically draw the attention of Tender Accepting
Authority to such conditional rebates/discounts and to the fact that the evaluated
cost of the tenders is without considering such rebates/discounts. Tenders with
unconditional rebates can be accepted. If any rebate / discount is offered suo-
moto by any tenderer after the opening of tenders, the same may be considered
if his tender is otherwise also the lowest. But in case the tender is due for
rejection due to high rates, suo-moto discount should not be considered.

8.9.2.1 Total Amount quoted by valid L-1 tenderer

This should be compared with the estimated cost put to tender duly modified by
variation in Cost Index in case where there is documentary proof in change of
Cost Index between that adopted for framing the Estimate and that prevailing on
the last date for submission of tender. When 80% or more of the estimated cost
is based on a published Schedule of Rates, there is no need for preparing market
rate analysis in case the lowest tender is less than 110% of the Estimated Cost
put to Tender duly modified by variation in Cost Index as detailed above and L1
offer can be recommended for award of work. When less than 80% of the
estimated cost is based on a published Schedule of Rates (say, A%) and the rest
of the estimated cost is based on market rates, or Last Accepted Rates, or Last
Accepted Rates duly modified or assessed rates, then the figure of 110%
specified above, will be suitably modified as under up to which there is no need
for preparing market rate analysis and L1 offer can be recommended for award
of work. -
100 + [10xA + 5x(100 - A)]/100
In case L1 offer is more than the above limit, the following paras will apply.
8.9.2.2 Reasonability of the rates of Tender received is to be seen and commented upon
by the Tender Committee. While analyzing tenders, rates of tenders of similar
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nature of works accepted within about last 6 months may be ascertained without
GST on works Contract. Similar works shall mean works similar in nature,
quantum, specification and located in the near vicinity. If required, cost based on
market rate analysis may be prepared on the basis of market rates of all major
items and peculiar situations / circumstances, if any, relating to the working
conditions in the area where the work is to be executed, as furnished by the
Project Coordinator in terms of Para 8.8.6 above. The cost assessed as justified
based on value of similar works or on market rate analysis as the case may be,
should be compared with L1 offer and following action may be taken. On
methodology for making out Market rate analysis / justified rate analysis Para 4.9
may be referred to.

i) When L-1 offer exceeds the justified cost / market rate analysis cost by
upto 7% (where the estimated cost put to tender is less than Rs.100
crores); upto 6% (where the estimated cost put to tender is more than
Rs.100 crores but less than Rs.200 crores) or upto 5% (where the
estimated cost put to tender is more than Rs.200 crores) the variation can
be ignored and L-1 offer can be recommended for acceptance.

ii) When L-1 offer exceeds the justified cost / market rate analysis cost by
between the aforesaid figures and 12%, L1 offer may be recommended
for acceptance in cases of urgency / emergency and for recorded
reasons. In such cases, detailed recommendations will be required to be
given to the Tender Accepting Authority analyzing the implications of
accepting L-1 offer with or without negotiation as against re-tendering.

iii-a) When L-1 offer exceeds the justified cost / market rate analysis cost by
more than 12%, it should not normally be recommended for acceptance.

In such cases, recommendation to the Tender Accepting Authority should

be for conducting negotiations. If, after negotiations, the negotiated offer
comes within 112% of the justified cost/market rate analysis cost, the
tender should be dealt with in accordance with (ii) above. If, however,
even after negotiations, the negotiated offer exceeds the justified
cost/market rate analysis cost by more than 12%, the recommendation to
the Tender Accepting Authority should be for the Client to be advised on
all the facts and the Client’s decision taken on whether re-tendering
should be done or due to urgency / emergency requirements or for any
other reasons, the negotiated bid of L 1 may be accepted as such.

iii-b) When L-1 offer exceeds the justified cost / market rate analysis cost by
more than 12%, it should not normally be recommended for acceptance.
In such cases, recommendation to the Tender Accepting Authority should
be for conducting negotiations. If, after negotiations, the negotiated offer
comes within 112% of the justified cost/market rate analysis cost, the
tender should be dealt with in accordance with (ii) above. If, however,
even after negotiations, the negotiated offer exceeds the justified
cost/market rate analysis cost by more than 12% in the cases where the
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 Client is Indian Railways having awarded the work to RITES on turnkey
basis, the Tender Committee may apprise to the Tender Accepting
Authority all the facts and recommendations be made for consideration
and approval for acceptance or re-tendering . However, after approval of
the Accepting Authority and before LOA is issued to the
Agency/Contractor, the Engineer-in-Charge need to inform Ministry of
Railways that after finalization of tender, work is being awarded at Rs.
_____ (Contract Price to be mentioned here), which is higher than the
approved estimates. Further, Engineer-in-Charge shall ensure that in the
LOA to be issued to the Agency/Contractor, it should be mentioned that
before commencement of work or making any commitment for the project,
the contractor will seek confirmation from RITES to commence the work.
Agency request for commencement should be approved by the Accepting
Authority after Finance vetting.

iv) In case of all greenfield projects which are located at a distance of more
than 100 kms away by road from a town/city with a municipality,
corporation, cantonment board or notified town area committee, etc., the
figures of justified percentages specified in paras 8.9.2.1 and 8.9.2.2 may
be further relaxed by upto three percentage points.

v) In case, on re-inviting open tenders for the 2nd or 3rd time, the L1 offer
continues to remain higher than 12% (15% in case of greenfield projects
described in para iv above) of the cost of similar works accepted in recent
past or the cost based on market rates, then detailed reasons for the
same should be examined and all factors analysed, if required by
discussions with bidders. Persistent high rates even during 2nd or 3rd
call for open tenders may be a pointer to (a) comparison being made with
a dissimilar work (b) market rates being incorrect due to non-
consideration of transportation cost from source to site (c) site conditions
being difficult due to (i) inaccessibility (ii) non-availability of water & power
(iii) water-logging (iv) no space for labour camp (v) encroachments
on/near site (vi) law and order problems etc. A report covering the above
aspects and suggesting remedial steps should be put up to the accepting
authority for apprising the client.

vi) When L1 offer is less than 85% of the Estimated Cost put to tender, the
Bid should be treated as undervalued. The Tender Committee in its
recommendation to the Tender Accepting Authority may state that in view
of Clause 1 of GCC, the bidder may be asked to furnish Additional
Performance Guarantee to the extent the total quoted cost is lower than
85% of Estimated Cost put to tender.

8.9.2.3 The Convener of the Tender Committee must ensure before submission of
recommendations to the Tender Accepting Authority that verification of
documents/credentials of L1 bidder is completed by Project Coordinator as per
S.No.3 of Para 8.4 and suitable mention is made thereof in the recommendations
of the Tender Committee. In case, a bidder claims to be covered under the Public
Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012
63
 (available at Annexure 8.5 of these Guidelines) and seeks concessions there
under, the Tender Committee should examine the matter on merit and submit its
recommendations to the tender accepting authority. The benefits under Public
Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012 are
applicable to only Supply and Service Contracts

8.9.2.4 All the members of the Tender Committee should furnish a certificate in the
tender evaluation report that the tenderer recommended by them is not in RITES’
Negative List of Contractors and in case the tenderer is a Joint Venture, the
certificate should state that the JV or any individual member of JV is not in the
Negative List of Contractors. Further, they should certify that none of them has
any personal interest in any of the tenderers who have participated. In addition,
the Tender Committee should furnish a certificate that none of the bidders has
claimed to be covered under the Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order, 2012 in case no bidder claims to be covered by the
said order.The benefits under Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order, 2012 are applicable to only Supply and Service
Contracts

8.9A EVALUATION OF FINANCIAL BIDS BY TENDER COMMITTEE (APPLICABLE

FOR TENDERS PERTAINING TO SURVEY/GEOTECHNICAL
INVESTIGATIONS/PLANNING/CONSULTANCY/DESIGN WORKS

8.9.1A The Tender Committee has to assess the reasonableness of the offers. Tenders
with any condition shall normally be rejected. However, tenders with conditional
rebates/discounts may be considered, but without taking into account the
conditional rebates/discounts for the purpose of evaluation of the bid price.
Tender Committee should specifically draw the attention of Tender Accepting
Authority to such conditional rebates/discounts and to the fact that the evaluated
cost of the tenders is without considering such rebates/discounts. Tenders with
unconditional rebates can be accepted. If any rebate/discount is offered suo-
moto by any tenderer after the opening of tenders, the same may be considered
if his tender is otherwise also the lowest. But in case the tender is due for
rejection due to high rates, suo-moto discount should not be considered.

8.9.2A Total amount quoted by valid L-1 tenderer should be compared with the
estimated cost put to tender. The estimated cost should be prepared on the
basis of the trend of tenders for similar works accepted in the recent past duly
updated for factors likely to affect the cost. In such cases a variation of +/- 25%
between the estimated cost and the L-1 offer will be considered normal and the
tender can be considered for acceptance. Otherwise, the following action should
be taken:
i) When L-1 offer exceeds the estimated cost by more than 25% and up to 40%, a
rate analysis should be called from the L-1 tenderer. On examination of the rate
analysis, if the tender committee feels that the rates given by the L-1 tenderer are
justified, tender may be recommended for acceptance. If the L-1 offer is higher
by more than 40% as compared to the estimated cost, tenders should be
discharged and re-invited with the revised estimated cost.

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ii) When L-1 offer is lower by more than 25% as compared to estimated cost, the
bid should be treated as unbalanced. The workability of the rates should be
assessed and commented upon by the Tender Committee in its
recommendations to the Tender Accepting Authority. For this purpose, the
Tender Committee may advise L-1 bidder to produce detailed rate analysis for
any or all items of Bill of Quantities to demonstrate the inherent consistency of
those rates with the estimated cost. If on evaluation, rate analysis is not found to
be satisfactory, the bidder should be asked to furnish Additional Performance
Guarantee to the extent the total quoted price is lower than 75% of estimated
cost.
8.9.3A The Convener of the Tender Committee must ensure before submission of
recommendations to the Tender Accepting Authority that verification of
documents/credentials of L-1 bidder is completed and suitable mention is made
thereof in the recommendations of the Tender Committee.
8.9.4A All the members of the Tender Committee should furnish a certificate in the
tender evaluation report that the tenderer recommended by them is not in RITES
negative list of contractors and in case the tenderer is a JV, the certificate should
state that the JV or any individual member of JV is not in the negative list of
contractors. Further they should certify that none of them has any personal
interest in any of the tenderers who have participated.
8.10 TENDER COMMITTEE’S RECOMMENDATIONS AND ACTION BY THE
TENDER ACCEPTING AUTHORITY
8.10.1 Where Accepting Authority is Client, recommendation of Tender Committee may
be put up direct to the Client.
8.10.2 The Market Rate Cost/Justification Statement to be prepared by Tender
Committee should be as per accepted norms, current and realistic. Reasonability
of the rates of tenders received is to be seen and commented upon by the
Tender Committee. Market rate analysis is to be used as one of the means
among other things for making recommendation by Tender Committee and is not
binding.
8.10.3 The recommendations of the Tender Committee should be carefully considered
and decision taken on acceptance or otherwise of the same. In case any
clarifications are required from the Tender Committee the same shall be sought
without delay.
8.10.4 In case, after receipt of tenders, it becomes necessary to forward the tenders to a
higher authority for acceptance due to the tender offer of L-1 going beyond the
power of original Tender Accepting Authority on account of higher quoted rates,
while forwarding tenders to the higher authority, details like (a) validity period of
the tender, (b) time already taken for scrutiny and (c) balance period available
should be prominently indicated to ensure that there is no delay in processing of
tenders and decisions are taken well in time.

8.10.5 In case of tender where validity period has already expired, decision to accept
the same should be taken only after validity period is got extended.

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8.10.6 Where the Contract amount as decided to be accepted goes beyond the amount
approved by the Client, Client’s prior acceptance is to be taken in light of the
provisions in the Agreement between RITES and the Client.

8.10.7 When tender offer results in exceeding the amount technically sanctioned for the
work by an amount greater than the power of the technical sanctioning authority,
revised Technical Sanction is required to be issued by the next higher Competent
Authority before acceptance of tender.

8.10.8 The Tender Accepting Authority, should normally accept the offer of L1, the
tenderer who has satisfied the Qualification Criteria, (including verification of
authenticity of its certificates/credentials) whose tender is unconditional and is in
order in all respects and whose quoted amount is considered reasonable. If the
quoted amount is considered unreasonably high, the Client should be consulted
on whether, in view of urgency, the tender can still be accepted or retendering
done.

8.10.9 The acceptance of tender should be unconditional. If however L1, whose offer is
otherwise acceptable, has offered conditional rebates/discounts, they can be
accepted, it they are not in violation of any provisions in the Contract Conditions
and can be practically implemented. Such conditional rebates / discounts
should not be taken into account, while evaluating the Tenders. The above
provisions will apply equally well to any suo-moto offer of rebates / discounts by
L-1 after opening of Tenders. No Letter of Acceptance can be treated as valid if
it conveys acceptance subject to conditions.

8.11 PURCHASE PREFERENCE TO PUBLIC SECTOR ENTERPRISES

8.11.1 In consonance with the Government instructions contained in OM

No.DPE/13(1)2007-Fin. Dated 21.11.2007 of Department of Public Enterprises,
Ministry of Heavy Industries & Public Enterprises, Government of India, purchase
preference to the Public Sector Undertakings has been terminated w.e.f.
31.3.2008. Annexure 8.5 may be referred to so far as Public Procurement
Policy for Micro and Small Enterprises is concerned.

8.12 ACCEPTANCE OF SINGLE TENDER

There are occasions when in response to call for open tenders, only single
tender is received. The Powers of Acceptance by RITES officials to be applied
will be under item of Schedule of Powers for Open Tenders. In case of single
tender received against a Limited Tender, fresh tenders should be invited unless
the work is very urgent. Where the single response is proposed to be accepted,
the authority to accept the recommendation of the Tender Committee will be as
for a Single Tender prescribed in relevant item of SOP. In such cases, detailed
reasoning for classifying the work as ‘Very Urgent’ should be recorded by the
Tender Committee and the Tender Accepting Authority in terms of SOP should

66
 specifically confirm its acceptance of such a recommendation due to urgency of
work.

8.13 PROCEDURE FOR CONDUCTING NEGOTIATIONS

i) Normally there should be no post-tender negotiations. Negotiations should

strictly be in certain exceptional situations like, for procurement of proprietary
items, where there is suspicion of pooling/cartel formation with unreasonable
rates etc.

ii) Negotiations, wherever held, should only be with L1 tenderer.

iii) Counter offer to L-1, in order to arrive at an acceptable price, shall amount to
negotiations.
iv) Before resorting to negotiations, adequate care should be taken to scrutinize
the rates received and convincing reasons recorded by Tender Committee
and accepted by Accepting Authority to conduct negotiations to avoid in
fructuous instances of negotiations.
v) There shall be no compromise on transparency, equity or fair treatment to all
the participants in a tender.
vi) It should be ensured that tenders are invariably decided within their validity
period including the time required to conduct negotiations, if any, with L-1
tenderer.
vii) In case L-1 backs out, there should be a re-tender.

8.14 COMMUNICATION OF ACCEPTANCE OF TENDER

8.14.1 The tender for works shall remain open for acceptance for a period of 90 days, or
as stipulated in the Tender Document from the last date of submission of
tenders, unless it is got extended with the consent of Tenderers.
8.14.2 After a decision is taken by the Tender Accepting Authority in favour of the
successful tenderer, “Letter of Acceptance” (LOA) in the Proforma at Annexure
8.2 should be sent to the contractor through Registered Post Acknowledgement
Due or Courier or Fax. It is important to preserve the proof of sending the LOA
and its delivery to the tenderer. The LOA should, inter-alia, contain instructions
to the tenderer to furnish Performance Guarantee and Additional Performance
Guarantee (if applicable) within the period indicated in Schedule F and the form
indicated in Clause 1 of GCC. A copy of the LOA (Letter of Acceptance) should
also be endorsed to RITES officials concerned and the following other officers:

i) Labour Officer concerned

ii) Asstt. Labour Commissioner

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8.14.3 The Tenderers whose tenders are rejected should also be sent written intimation
about the rejection.

8.14.4 (i) In the Letter of Acceptance (Format at Annexure 8.2) reference should be
given to all the Contractor’s letters received with the tender or thereafter
and of RITES’ replies accepting or rejecting such requests. Copies of all
the correspondence will form a part of the Contract.
(ii) The Letter of Acceptance will form a Binding Agreement between RITES
(acting for and on behalf of the Employer as Agent/Power of Attorney
Holder) and the Contractor, till formal Agreement is executed between the
two parties.
(iii) The formal Agreement on Non Judicial Stamp Papers of appropriate value
shall be executed between RITES (acting for and on behalf of the
Employer as Agent/Power of Attorney Holder) and the Contractor within 28
days from the date of issue of LOA. The Agreement will be in the form at
Annexure 8.3 for which the Contractor is to supply the Stamp Papers. As
mentioned in the LOA, no payment to the Contractor for works can be
effected till the formal Agreement is executed.
iv) Copies of the Agreement should be made out as bound volumes with each
page numbered and bearing the dated initials with seal of the authorized
signatory of both RITES and the Contractor.
8.14.5 Letter of Acceptance and Contract Agreement should be got vetted by Finance
before issue. In the copy of these documents to be endorsed to Finance section
concerned, it should be clearly mentioned that they are based on approval of the
tender by the Competent Authority of RITES.

8.14.6 No Letter of Acceptance should normally be issued to the Contractor till the entire
site of work is available without any hindrances and encumbrances, Local Body’s
approval available for use of land for the purpose proposed by the Client and
approval of plans from the Local Body. In case there are delays or problems in
getting a part of site and the work is to be started on Client’s request, the Client
should be made fully responsible for the resultant liability including possible
Contractor’s claims on this account. The Client should be specifically advised of
this.

8.14.7 No Letter of Acceptance should be issued till sufficient funds are deposited by
the Client. The Works Contract should make a provision that the payment to the
Contractor will be made only on receipt of funds from the Employer (Client) for
and on whose behalf RITES are entering into the Contract as an Agent / Power
of Attorney Holder. This aspect has been taken care of in the Standard Format
of RITES Tender Documents.

8.14.8 Copies of Letter of Acceptance and Contract Agreement should be sent to the
Client being the Employer. In the Letter of Acceptance addressed to the
Contractor, endorsement of copy to the Employer should be prominently

68
 displayed to draw the attention of the Contractor to the fact that RITES’ action is
for and on behalf of the Employer as an Agent/Power of Attorney Holder.

8.15 TIME LIMIT FOR FINALIZATION OF TENDERS

Top priority should be given to decide the award of work on receipt of tenders.

Time limits laid down for various stages involved in finalization of tenders have
been indicated in Annexure 8.4 and should be adhered to since the validity
period of tenders is normally only 90 days from the last date of submission of
tender.

8.16 REINVITATION OF TENDERS

If the Lowest Tenderer backs out, there should be retendering in a transparent

and fair manner. In such a situation, the NIT approving authority may advise to
call for Limited Tenders if so justified in the interest of work. While retendering
for the work, tender will not be issued to the Contractor who has backed out.

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 SECTION 9

EARNEST MONEY

9.1 NECESSITY FOR EARNEST MONEY

Earnest Money is paid by each tenderer to enable RITES to ensure that a
tenderer does not back out of his tender before its acceptance or refuses to
execute the work after it has been awarded to him.

9.2 RATES OF EARNEST MONEY

The amount of the Earnest Money which a contractor should deposit with the
tender will be @ 1% of the estimated cost put to tender, subject to a maximum of
Rs. Twenty-fivelakhs unless he is exempted from payment of Earnest Money as
a matter of Government policy.

9.3 MODE OF DEPOSIT

9.3.1 The whole of Earnest Money should be deposited by the bidders in any of the
forms given below -
Banker’s Cheque/Pay Order/Demand Draft issued by State Bank of India or any
Scheduled Commercial Bank drawn in favour of RITES Ltd.
9.3.2 Any tender not accompanied by Earnest Money of stipulated amount in an
acceptable form shall be rejected outright.
9.3.3 EMD submitted by the tenderers should immediately after the opening of tender,
be sent to Accounts department for encashment.

9.4 REFUND OF EARNEST MONEY

9.4.1 (i) The Earnest Money of the tenderer whose Technical Bid is found not
acceptable, will be returned as soon as scrutiny of Technical Bids has
been completed.
(ii) After evaluation of the Financial Bids, the Earnest Money of unsuccessful
tenderers whose Technical Bids were found in order will be returned within
28 days of the end of the Tender Validity Period.
(iii) The Earnest Money of the successful tenderer will be taken as part of the
Security Deposit as stipulated in Clause 1A of Contract.
9.5 FORFEITURE OF EARNEST MONEY

9.5.1 If any tenderer (a) withdraws his tender before expiry of the validity period or
issue of Letter of Acceptance whichever is earlier or (b) makes any modifications
in terms and conditions of the tender which are not acceptable to RITES or (c) in
case any information/document which may result in the tenderer’s disqualification
is concealed by the Tenderer or any statement/information/document furnished
by the Tenderer or issued by a Bank/Agency/third party and submitted by the
tenderer, is subsequently found to be false or fraudulent or repudiated by the

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 said Bank/Agency/Third Party, then RITES shall, without prejudice to any other
right or remedy, be at liberty to forfeit entire Earnest Money absolutely.

9.5.2 In case the successful tenderer / contractor fails to furnish the prescribed
Performance Guarantee within the prescribed period or fails to commence the
work specified in the tender documents by the date as mentioned in Letter of
Acceptance, or in case any Statement / information / document furnished by the
Tenderer is found to be misleading or false representation of facts, RITES shall,
without prejudice to any other right or remedy, be at liberty to forfeit whole of the
Earnest Money absolutely.
9.5.3 In case of forfeiture of E.M. as prescribed in 9.5.1 and 9.5.2 above, the tenderer
shall not be allowed to participate in the retendering process of the work.
9.5.4 In cases where work order / supply order is awarded on the basis of quotations
and a condition for depositing Earnest Money is laid down in the notice inviting
quotations, the following condition shall be stipulated in the NIQ.
“The quotation for the work / supply shall remain open for a period of _____ days
from the date of opening of quotations. RITES shall, without prejudice to any
other right or remedy, be at liberty to forfeit entire Earnest Money if any
quotationer withdraws his quotation before that date or makes any modification in
the terms and conditions of the quotation which are not acceptable to RITES, or
furnishes any statements/ information / document found on check to be
incorrect or false and to forfeit whole of the Earnest Money if the quotationer,
whose quotation is accepted, fails to commence the work / supply specified in the
NIQ (along with changes in scope, if any) in prescribed time or abandons the
work / supply before its completion”.
9.5.5 In composite contract for dismantling of existing structure and construction of
new structures, the Contractor shall be required to deposit caution money
equivalent to 50% of the credit likely to be obtained from dismantled materials
before the site is handed over to the Contractor. This Caution money shall be
refunded after the cost of dismantled material is finally recovered and the site is
cleared by the Contractor.

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 SECTION 10

PERFORMANCE GUARANTEE AND SECURITY DEPOSIT

10.1 PERFORMANCE GUARANTEE

As stipulated in Clause 1 of Contract, Performance Guarantee is to be obtained

from the successful tenderer at 5% of the tendered amount. This is meant to
ensure proper performance of the Contract and is to be deposited by the
Contractor within the period from date of issue of Letter of Acceptance as
indicated in Schedule F. The Performance Guarantee shall be in the form of F.D.
Receipts or Guarantee Bond / B.G. of any Scheduled Bank in accordance with
the format stipulated in Clause 1 of the Contract. In case a F.D Receipt of any
Bank is furnished and the Bank is unable to make payments, the loss caused
thereby shall fall on the Contractor who shall make good the deficit by additional
Security.

10.1A Recovery of additional Performance Guarantee

The successful Tenderer is also to deposit Additional Performance Guarantee in

case of unbalanced bid as explained in para 8.9.2.2. This will also be in the
same form as normal Performance Guarantee and deposited within the same
time limit.

10.2 VALIDITY OF PERFORMANCE GUARANTEE

They shall be valid initially up to the stipulated date of completion plus 60 days
beyond that. In case the completion period gets extended, the validity of the
Performance Guarantee shall also be extended accordingly.

10.3 CLAIM UNDER PERFORMANCE GUARANTEE

The circumstances under which the Engineer in charge can make claim against
the Performance Guarantees have been given in Para (iv) of Clause 1 of
Contract. In case of such claims, in the event of available Performance
Guarantee getting reduced by reason of such deduction or sale, the Contractor
shall within 10 days make good the deficiency to be valid for the same period as
mentioned in Para 10.2.

10.4 REFUND OF PERFORMANCE GUARANTEE

Soon after recording of the Provisional Certificate of Physical Completion for the
works under Clause 8 of Contract by the Competent Authority, the Guarantee will
be returned to the Contractor without interest.

Additional Performance Guarantee can be refunded earlier if the unbalanced

items for which such additional Guarantee had been demanded, are completed
to the satisfaction of the Engineer-in-charge.

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10.5 RECOVERY OF SECURITY DEPOSIT

As stipulated in Clause 1A of Contract, the Security Deposit shall be deducted at

5% of the gross amount of each Running bill till the sum along with the sum
already deposited as Earnest Money will amount to Security Deposit of 5% of the
Tendered Value of work. Earnest Money shall be adjusted first in the Security
Deposit and further recovery of Security Deposit shall commence only when the
upto date amount of SD to be recovered starts exceeding the available Earnest
Money. Such deductions will be made and held by RITES by way of Security
Deposit, unless the Contractor has deposited the amount of Security at the rate
mentioned above in cash or FD Receipts. In case of Bank FDs, if the Bank is
unable to make payment, the loss caused shall fall on the Contractor who
forthwith on demand shall furnish additional security to make good the deficit.
Security Deposit may be released against submission of Bank Guarantee issued
by a scheduled commercial bank or State Bank of India on its accumulation to a
minimum amount of Rs. 5.0 Lacs.The amount of any Bank Guarantee except the
last one, shall not be less than Rs. 5.0 Lacs. Bank Guarantee submitted against
Security Deposit shall be initially valid upto the stipulated date of completion of
work plus maintenance period defined under clause 17 of General Conditions of
Contract. The Bank Guarantee should be got extended further from time to time
when contract period is extended under provisions of clause 2 and 5.

10.6 CLAIMS UNDER SECURITY DEPOSIT

The items for which RITES can claim on the Security Deposit have been given in
Clause 1A of Contract. In the event of Security Deposit being reduced on
account of the claim, the Contractor shall, within 10 days, make good the
deficiency in cash or FD receipts endorsed in favour of Engineer in charge.

10.7 VALIDITY PERIOD OF SECURITY DEPOSIT AND REFUND

10.7.1 On completion of the whole work and issue of Final Completion Certificate, the
Security Deposit may be released against B.G. issued by a Scheduled Bank. The
Security Deposit will be refunded in terms of Clause 17 of Contract which shall
be after the expiry of 12 months or the period as specified in the Works Contract,
of Maintenance period counted from the date of issue of Completion Certificate
(Final or otherwise) under Clause 8 of Contract or after the Final Bill has been
prepared and passed, whichever is later. Release of Security Deposit will also be
subject to Labour Officer’s clearance as per Clause 45 of Contract and State
Govt. clearance as per Clause 45A of Contract.

10.7.2 Refund of security Deposit in cases of delay in final bill

1) Where there is a delay in payment of final bill, the Engineer-in-charge shall

make an assessment of the likely recoveries against the contractor, and order
release of as much security deposit as possible unless he has reasons to
withhold the release of full security deposit to the contractor. These reasons
should be recorded by him in writing.
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 2) The Engineer in charge shall satisfy himself that the following formalities are
completed by all concerned before exercising his discretionary power for part
payment of security deposits.

i) Formalities to be completed by RITES Officers

a) Completion of prescribed test checks of measurements by the Controlling Site

Engineer / Project Coordinator.

b) Sanction of extra / substituted items by the competent authority.

c) Decision on levy of compensation, etc.

ii) Formalities to be completed by Contractor

a) Acceptance of final measurement recorded by RITES Officers

b) Applying for extension of time as and when required immediately.

c) Rectification of defects pointed out by RITES Officers during Maintenance

Period.

d) Completion of work in all respects, including clearance of site etc.

e) Return of surplus materials issued by the Employer immediately on

completion of work or as and when it comes to light.

3) There should be no need for the Contractor to apply for refund of the Security
Deposit. The case for refund shall be processed by the Project Coordinator as
soon as refund is due.

10.8 MISCELLANEOUS PROVISIONS

10.8.1 Deposits of Contractors including percentage deductions from Contractor’s bills
may be converted, at his cost, into one or more of the forms of interest bearing
securities provided
i) that the contractor has expressly desired this in writing and
ii) that the acceptance of the new form of security is permissible under the
rules as well as under the terms of the agreement.
10.8.2 Repayment / Retransfer of Security Deposit
Without the special orders of competent authority, no Security Deposit /
Performance Guarantee should be repaid or re transferred to the depositor, or
otherwise disposed off, except in accordance with the terms of the agreement.
Note : The depositor’s acknowledgement should be obtained in all cases of
security returned. When an interest bearing security is returned or re-transferred,
the acknowledgement should set forth the full particulars of the security.

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10.8.3 FDRs as Security Deposit
a) Since Fixed Deposit Receipts are not Government securities there is no
objection to their being accepted even if the period for the completion of
the work is less than one year. The Fixed Deposit Receipts should be
accepted as security when these cover the stipulated period including
extended period, if the contract period is extended, plus the Maintenance
period mentioned in the contract.
b) Fixed Deposit Receipt tendered by the State Bank of India and Scheduled
Banks is acceptable as security. There is, therefore, no objection to the
investment by RITES of the amount of security, deducted from the running
bills of the contractors in Fixed Deposit Receipts of the State Bank of India
and Scheduled Banks at the request of the Contractors.

c) It may, however be seen that the Fixed Deposits Receipt is made out in
the name of RITES, though Interest accruing at the time of conversion into
BG in terms of Para 10.7 above will be refunded to the Contractor.

10.8.4 Lump sum Deposits, Recoveries and Release

Once the recoveries become due from the Contractor, the same should be
effected from the money due to the Contractor either from the same work or from
any other work or from the Performance Guarantee / Security Deposit. Action to
recover the overpaid amount should not be kept pending or be held in abeyance
on account of the case being before the arbitrator. Action in terms of the award
can be taken after the award is received and accepted by the competent
authority. The recovery of overpaid amounts should be effected as early as
possible and the recovery should not be held in abeyance during the pendency of
arbitration proceeding.
10.8.5 Time Limit on Claims for Refund of Security Deposit
The claim for refund of security deposit is governed by the Limitation Act. The
period of limitation is 3 years commencing from the date the right to due accrues.
In the case of Security Deposit paid along with the individual contract, the right to
due would accrue under Clause 17 after the expiry of maintenance period or
payment of final bill whichever is later.
10.9 REFUND OF SECURITY DEPOSIT - GUARANTEE ON SPECIALISED ITEMS OF WORK
The specialised items of work such as anti-termite treatment, waterproofing work,
providing kiln seasoned and chemically treated wooden shutters etc., shall be
entrusted to specialised firms or registered contractors and the Contractors
should be asked to give a specific guarantee that they shall be responsible for
removal of any defect cropping up in such works within the guarantee period.
The typical form of the guarantee to be executed by the contractors is given vide
Annexures 10.1 and 10.2. The Security Deposit should not be refunded till the
Guarantee is executed by the Contractor for Specialised Works. The SBU office
shall, maintain a register in which all such specialised works carried out in the
SBU jurisdiction shall be entered and which shall be reviewed by the SBU Head.

The Register will contain the following heads:-

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 Name of the work:

Date of completion:

Specifications in brief:

Rate paid:

Name of the firm / or registered contractors:

History of all defects with date when noticed during the guarantee period, till
handing over the completed works to the client along with the Guarantee.

The history will help as a ready reference about the efficiency and the quality of
the work done by the firm.

10.10 SBU’s RESPONSIBILITY FOR PROMPT REFUND OF SECURITY DEPOSIT

AND PERFORMANCE GUARANTEE
In order to avoid delay in the refund of Security Deposit and Performance
Guarantee to the Contractors, the Accounts section of SBU Office, should put up
to the SBU Head, every month a list of all the cases where the Security Deposit /
Performance Guarantee becomes due for refund so that the requisite certificate
is immediately obtained by the SBU Head from the Engineer in charge
concerned and the Security Deposit or Performance Guarantee refunded without
waiting for any application from the Contractor.

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 SECTION 11

AGREEMENTS / CONTRACTS - ESSENTIAL FEATURES

11.1 GENERAL FEATURES

11.1.1 Chairman and Managing Director (CMD) / RITES has full powers to accept
tenders and is authorised to frame rules relating to the calling for, acceptance of
the tenders and the general procedures connected with the contracts. There are,
however, certain general principles and guidelines laid down for acceptance of
tenders which are required to be observed by subordinate authorities empowered
to enter into contract as per Schedule of Powers issued from time to time.

11.1.2 No contract shall be made by a subordinate authority which has not been
authorised to do so under Schedule of Powers. The Powers for signing of
Contracts by officials of RITES have been given in SOP. The official executing
the Agreement on behalf of RITES is designated as the Engineer in charge.

11.1.3 Terms of contract must be precise and definite and there must be no room for
ambiguity or misconstruction therein. In RITES, Standard Contract Forms have
been made out to avoid this contingency. The alternative conditions, if any,
given in the standard forms which are not applicable to a particular contract
should be invariably scored out. In case where Standard Forms of Contracts are
not convenient to be used, legal and financial advice should be taken in drafting
the contracts before they are finally entered into. The Standard Contract Forms
are generally based on CPWD Forms and are to be used in all cases of Works
Contracts which are entered into by RITES as Agent for and on behalf of Client
or under Power of Attorney executed by the Client in favour of RITES. The only
exceptions will be where the Client specifically requests for adoption of any other
type of Contract Forms such as those of Indian Railways, World Bank, MES etc.

11.1.4 No relaxation of specifications in a contract, or relaxation of the terms of an

agreement entered into by RITES should be made without proper examination of
the financial and legal effects involved in consequence of such relaxation. Due
care of the interest of the Client should be taken before agreeing to any
relaxation in agreement or contract. Save in exceptional circumstances, no work
of any kind should be commenced without prior execution of contract documents.
Even in cases where a formal written agreement is not made, no order for
supplies etc. should be placed without at least a written agreement as to the
price and other terms of agreement.

11.1.5 The terms of the contract once entered into should not be materially varied
without the previous consent of the authority competent to accept tender / offer
for the contract as so varied in terms of SOP. No such variation involving
payment to contractors by way of compensation or otherwise outside the strict
terms of the contract or in excess of the contract rates, shall be authorised
without the prior approval of the Client as provided for in the Agreement between

77
 RITES and the Client. A variation of the terms of contract which has been
approved by the Authority Competent to accept the tender shall be made by
writing “executed for and on behalf of RITES” by an Officer who is authorised to
execute the original contract under SOP.

11.1.6 No contract involving an uncertain or indefinite liability or any condition of an

unusual character should be entered into without the previous consent of the
CMD / RITES.
11.2 POWER TO SIGN AGREEMENTS

11.2.1 Competent Authority of RITES (with powers delegated under SOP) shall sign
agreements for execution of works “for and on behalf of RITES” after the
acceptance of tenders by the Competent Authority under SOP.

11.2.2 There should be no delay in executing the agreement as soon as tenders have
been accepted. The Authority executing the Agreement should see that
conditions not existing in the approved tenders are not in any case, allowed to be
embodied in the agreements. A record of the agreements drawn up should be
kept in the Office of SBU.

11.3 RECORDING OF DATE OF ACCEPTANCE OF TENDER IN THE AGREEMENT

11.3.1 The date of acceptance of tender as shown in the Letter of Acceptance of tender
and award of work issued to the Contractor, which forms part of the Agreement,
should be clearly mentioned in the formal Agreement since Letter of Acceptance
binds the parties to the Contract even before execution of the Agreement.

11.3.2 Before signing any Agreement, it must be ensured that no conditions are inserted
which were inadvertently omitted in the tender papers. Similarly, no errors, which
might have inadvertently crept in NIT, should be corrected. In such cases
reference should be made to the Contractor in writing and his acceptance taken
in writing. These letters can be included in LOA by suitable reference to them.

11.4 SUPPLY OF COPIES OF CONTRACTS TO CONTRACTORS

Two sets of contract documents should be prepared and signed by both the
parties on each page. One of the sets should be stamped ”Original” and the
other “Duplicate”. The duplicate copy should be supplied to the contractor free of
cost. For any additional copies required by the contractor the following prices
shall be charged for each copy:-

i) Works costing upto Rs. One Lakh Rs. 1,000/-

ii) Works costing between Rs.One lakh and Rs. 2,000/-
Rs. Fifty Lakhs
iii) Works costing more than Rs. Fifty Lakhs and Rs. 3,000/-
upto Rs.Two Crores
iv) Works costing above Rs. Two Crores Rs. 8,000/-

The additional copies should be certified as True Copy.

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11.5 CERTIFICATION AND CUSTODY OF AGREEMENTS

11.5.1 The agreements should be properly checked and compared in the office of the
Engineer in Charge or in the Office of SBU concerned, with the Tender
Document as approved by the Competent Authority. The Accounts Section will
be held responsible for any mistake which is found subsequently after the
agreement has been formally signed by the Engineer in Charge. Also, the
Engineer-in-charge should ensure that before copies of the accepted agreements
are forwarded to the authorities concerned, they are complete in all respects.

11.5.2 The original contract documents should be kept in the personal custody of the
Engineer in Charge or the SBU Head till disposal as provided for in Section 27.

11.5.3 No payment for the work done should be made to the Contractor till the Contract
Agreement has been signed by the Contractor and the Performance Guarantee
has been received.

11.6 CONTENTS OF AGREEMENTS

Adequate care should be taken to ensure that the agreement to be entered into
between the Contractor and the Engineer in Charge for and on behalf of RITES
is complete in all respects. A complete Agreement will include all items indicated
in the Form at Annexure 8.3. Special care is required to be taken to see that all
corrections, additions, alterations, or slips attached to the agreements are duly
signed both by the Contractor and the Engineer in Charge.

11.7 SAFE CUSTODY OF CONTRACT AGREEMENT AND RELATED

DOCUMENTS

Originals of all documents forming part of the Contract Agreement and all
supporting details / calculations / data should be kept safely in the office of SBU
as they may be required to defend RITES interests in case of Arbitration / Court
case in future. The norms for disposal of old records have been given in
Annexure 19.5. If there is any Arbitration or Court Case, the records will have to
be maintained for a period longer than that stipulated in Annexure 19.5, as
indicated in Note 1 of that Annexure.

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 SECTION 12

GENERAL GUIDANCE FOR OPERATION OF

CONTRACT CLAUSES

(Note : Clauses referred to in this Section are “Clauses of Contract” forming part
of “Technical Bid” under Section 8 of GCC of “RITES Standard Tender Document”
based on CPWD Practice) .

12.1 CLAUSE 2
12.1.1 This Clause refers to recovery of compensation from the contractor for delays
and defaults on his part. This clause can be divided mainly into three parts viz.

a) Observation of time allowed for completion of the work

b) Payment of compensation by contractor for non-commencement, not
finishing in time and slow progress during execution.

c) The decision of the Tender Accepting Authority (as stipulated in Schedule

F) being final on the compensation payable by the contractor.
12.1.2 As explained in Section 13 relating to Extension of time and compensation for
delay, time allowed for completion of the work is essence of the contract on the
part of the contractor. The date for commencement of the work starts from the
date specified in the Letter of Acceptance. For slow performance or delay in the
completion of the work, compensation, subject to a maximum of 10% of the
tendered value, is recoverable.

12.1.3 The compensation for slow progress or non completion of work in stipulated time,
at the rates specified therein, is an “agreed compensation” under clause 2, which
the contractor has to pay in case of default. Therefore, there is no choice for the
Engineer in Charge who has signed the Agreement but to recover the same at
the rates mentioned in clause 2 of the contract, if the progress of the work is slow
or the work is not completed in stipulated time. In case the contractor feels
aggrieved, he may appeal to the Engineer-in-Charge against such recovery, who
may refer the case to the Tender Accepting Authority who may uphold the
recovery at the original rates or at reduced rates or completely waive off the
same depending upon the merits of each case. In such cases the decision of the
Tender accepting Authority communicated through the Engineer-in-charge shall
be final and out of purview of the Arbitration Clause.

12.1.4 In case the Contractor does not achieve a particular milestone as stipulated
under clause 5 of the agreement or as re-scheduled, the amount shown against
that milestone shall be withheld automatically and without notice to the
contractor. However, if the contractor catches up with the progress of the work on
the subsequent milestone, the withheld amount shall be released without any
interest. In case the contractor fails to make up the delay in the subsequent
milestones, the amount mentioned against each milestone missed shall also be
withheld, and may be adjusted against the compensation that may be levied at
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 the final grant of extension of time. Thus the compensation levied against failure
to achieve one or more milestones will, on completion of work, be fully refunded if
extension of time is granted without penalty or adjusted against the Liquidated
damages leviable in case extension of time is granted with penalty. No interest is
payable on any withheld amount.

12.1.5 The Engineer in Charge should identify delay in the execution of the work at the
appropriate stage and issue letter through registered / speed post, courrier or fax
to the contractor under clause 2 of the contract indicating non-fulfillment of the
progress of the work on proportionate time lapse basis mentioned in clause 5 of
the contract.

12.1.6 The Engineer in Charge should also give a notice through registered / speed
post, courier or fax to the contractor, so as to reach him before expiry of the
contract period, of his intention to recover the amount of compensation. The
notice should clearly mention the date on which the stipulated time is going to
expire and that the contractor should complete the work on time otherwise he
shall make himself liable to recovery of compensation under clause 2 of the
contract. The above communication should be conveyed to the Contractor
through Site Order Book also.

12.1.7 In case of tender accepted by an officer of higher status who has the powers of
granting extension of time, (Refer SOP) the Engineer in Charge should, from
time to time, apprise him of the facts about slow progress of the work or its likely
non completion on time. The decision on levy of compensation and recovery of
compensation should be effected after internal decision on extension of time has
been obtained, by Engineer-in-Charge from such authority.

12.1.8 The recovery of compensation should be effected after decision on extension of

time has been obtained. Reply submitted by the Contractor, if any, on the notice
issued to him should be taken into consideration while deciding on the
compensation.

12.1.9 For Proforrma for intimating compensation under Clause 2, Para 13.9 of Section
13 may be referred to.

12.2 CLAUSE 3

12.2.1 This clause deals with determination of contract and forfeiture of Security Deposit
etc. This clause is of vital importance. According to the clause when the
contractor has rendered himself liable to action under relevant clause, the
Engineer in Charge on behalf of RITES shall have powers to determine the
contract. Termination Notice given in writing by the Engineer-in-charge under
his signature shall be considered evidence for the enforcement of this clause.
Upon such determination, the Earnest Money Deposit, Security Deposit already
recovered and Performance Guarantee and Additional Performance Guarantee
(if applicable) shall be liable to be forfeited and shall be absolutely at the disposal

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 of RITES. The contractor, whose contract is determined as above, shall not be
allowed to participate in the tendering process for the balance work. The
provision of clause 3 can be applied even after recovery of compensation under
clause 2, as the two clauses are independently enforceable to the full extent.

12.2.2 i) Model forms of letters to be issued by the Engineer in Charge for and on
behalf of the RITES while serving “Show Cause Notice” as well as “Notice
on final action” to the contractor under clause 3 of the Contract have been
made out. Copies of these model forms are at Annexures 12.1 to 12.5. As
mentioned in Para 12.2.1, action under Clause 2 can be taken in addition to
the above action under Clause 3. Para 13.9 may be referred to in this
connection.

ii) While making use of these forms, the following points should be kept in
view:–
a) Model forms at Annexures 12.1 to 12.4 may be issued by the Site
Engineer only after taking approval of the Engineer-in-Charge
b) Alternatives wherever not applicable should be deleted and suitable
additions made wherever considered necessary.
c) While determining the contract under any of the sub clauses (i) to (xi)
of clause 3 for causes other than the causes as mentioned in the
standard form for “Show Cause Notice”, suitable modifications may be
made, where necessary according to the requirements of the case.
d) Final notice under clause 3 of the contract may, thereafter be drafted
and got approved by the Competent Authority that accepted the tender.
This acceptance is with reference to financial limit as mentioned under
the relevant Item of SOP.

12.2.3 When the Work is in an advance stage, decision on termination of Contract

should be taken after careful consideration of the alternatives for completion of
the balance portion of work. A sincere attempt should be made to discuss the
progress with the Contractor to ascertain his problems and see what can be done
to sort out the problem within the parameters of the contract.

12.3 CLAUSE 5

12.3.1 Under clause 2, time is deemed to be of essence of the contract on the part of
the contractor. It is therefore necessary for a contractor to complete the job within
the stipulated period. If the contractor commits default in commencing execution
of work within the stipulated date, RITES shall, without prejudice to any other
right or remedy available in law, be at liberty to forfeit the Earnest Money and
Performance Guarantee absolutely. As soon as possible after the Contract is
concluded, the contractor shall submit a Time and Progress Chart for each
milestone and get it approved from the Engineer-in-Charge. The Chart shall be
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 prepared in direct relation to the time stated in the contract documents for
completion of the items of work.

12.3.2 The contractor shall, in all cases in which time allowed for any work exceeds one
month, (save for special jobs for which a separate programme has been agreed
upon) complete the work as per milestones given in Schedule ‘F’. If however, he
cannot complete the work against any of the milestone (s) due to having been
unavoidably hindered in execution thereof, or on any other ground he can apply
for rescheduling of the milestones (s) and extension of time. The detailed
procedure of granting extension of time under this clause has been dealt under
Section 13 “Extension of Time”. Extension of Time is also justified to the
contractor for additional work for which quantum is required to be worked out as
provided in clause 12 of the contract. The Engineer in Charge shall give a fair
and reasonable extension of time and reschedule the milestones for completion
of the work. Rescheduling the milestones will include changing the number of
milestones also. The opinion of the Engineer in Charge as to whether the
grounds shown for extension of time are or are not reasonable is final. His
opinion as to quantum of period of extension granted by him is not however final
and is arbitral.

12.3.3 The period during which the contract remains valid is a matter of agreement and
if the period originally set for the completion of the work comes to an end, nothing
short of agreement of the parties can extend the subsistence and validity of the
contract. When the period fixed for the completion of the contract is about to
expire, the question of extension of the contract may be considered at the
instance of the contractor or RITES or of both. The extension, in order to be
binding, will have to be by agreement of both parties - express or implied. It
therefore, follows that if the extension of time is granted by the Engineer in
Charge suo-moto and such extension of time is accepted by the contractor either
expressly or implied by his action, before and subsequent to the date of
completion, the extension of time granted by Engineer in Charge is valid. It is,
therefore, necessary that the Engineer in Charge grants extension of time even
when the contractor does not apply for extension of time in order to keep the
contract alive. If the contractor refuses to act upon the extension granted by the
Engineer in Charge it will attract the provisions of clauses 2 and 3 of the contract.

12.3.4 The compensation for delayed performance, on account of which extension of

time is granted by the Engineer in Charge, could be leviable under clause 2
would be a distinct matter. The decision to levy compensation under clause 2
would depend on:-

i) Prior notice as contemplated by Section 55 of the Indian Contract Act,

1872.
ii) Fault / delay / hindrance being attributable to the contractor and
iii) Proof of the loss occasioned thereby (in case it is challenged by the
contractor before the Arbitrator)
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 The contractor in his application for extension, in addition to items like heavy
rains, law and order problems etc which are not within the control of Contractor
or RITES, generally points out various delays and the lapses on the part of
RITES. Engineer in Charge while recommending or granting extension of time
generally accepts these reasons for delay to be correct. The contractors may
claim damages or compensation in an arbitration for prolongation of work due to
defaults or lapses on the part of RITES When such cases come before the
arbitrator the action of the Engineer in Charge in accepting the reasons for
extension of time may assist the evidence for the claims of the contractors for
damages etc.

12.3.5 Though there may be delays and lapses on the part of RITES, at the same time
there are also delays and lapses on the part of the contractor. For such delays
during the stipulated or extended period of completion, the contractor is
responsible and these are also to be taken into account by the Engineer in
Charge while recommending or granting extension. To safeguard RITES
interest, these lapses on the part of the contractor should invariably be clearly
mentioned by the Engineer in Charge while granting / recommending extension
of time. In granting extension of time a balanced view should be taken of the
delays on the part of the contractor, vis-à-vis delays of RITES. The mention of
the delays on the part of the contractor along with that of RITES would ultimately
help RITES in properly defending its position against the claims of the Contractor
for damages.

12.4 CLAUSE 7
The circumstances under which intermediate payments can be made to the
contractor have been explained in this Clause. The Engineer in Charge should
fix a date by which contractor should submit the bill each month or any other
period as decided by him. 75% of the bill amount may be paid within 3/5 working
days (depending upon whether the work is in SBU HQ or outside) as indicated in
the Clause, after submission of the bill by the contractor to the Engineer in
Charge through the Site Engineer with all required details. Balance amount of bill
may be paid within 15 working days of presentation of bills. The payment to the
contractor shall be made normally only on submission of the bill by him. While
every effort should be made to make the payment within the time laid down, the
Contractor will not be entitled to any interest due to delays in payment as laid
down in this Clause. In cases where the Contractor fails to submit the Bills, the
Engineer-in-charge can make out the Bill and make payment.

On the receipt of written request from the Contractor, and on the basis of a
certificate from the Engineer, interim advance payment without detailed
measurements for work done may be made @ 75% of the assessed value. The
advance payment so allowed shall be adjusted in the subsequent running bill by
taking detailed measurements there of. If at any stage, it is found that the amount
of interim advance payment claimed by the contractor was excessive, this facility
of interim advance payment should be withdrawn.

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 Pending consideration of Extension of time by the Competent Authority of RITES,
Running Account Bills may be continued to be paid without prejudice to the right
of the Employer to take action for delays in completion of the work, under the
terms of the Contract.

12.5 CLAUSE 8

12.5.1 According to this clause a completion certificate is to be given by the Engineer in

Charge to a contractor on completion by him of a work. No final bill will be
accepted from a contractor unless such a bill is supported by a completion
certificate. Further, the date of the completion certificate will determine the date
upto which a contractor can be held responsible for making good damages under
relevant clauses of the agreement. It has been observed that generally no
certificate is given and only the date of completion is noted in the measurement
book. Since this practice is not in conformity with the provision of this clause, a
completion certificate must be recorded in the manner given in Section 22 of
these Guidelines. If, on inspection of work by the Engineer-in-Charge after
receiving intimation from the contractor, the work is not found satisfactorily
complete, the contractor should be intimated of the defects etc in writing.
Provisional certificate of physical completion of work, if issued, should clearly
bring out the defects to be rectified and items proposed to be paid at reduced
rates.

12.5.2 The date of completion of work is the date on which it is finished and not the date
on which the final measurements are recorded by the Engineer in Charge or his
subordinates. It will therefore, be necessary to note the date of its actual
completion both in the bill of the contractor as well as in the Measurement Book
in which the last measurements are recorded.

12.5.3 If the contractor fails to remove the scaffolding, surplus material and rubbish etc.
and does not clean up the dirt from the wood work, doors, windows, walls, floors
and other parts of the building etc, they should be got removed at the cost of the
contractor as laid down in this clause. The completion certificate should not be
given till the site is cleared of all malba, rubbish etc.

12.5.4 The clause further states that, the certificate of completion shall not be issued
until the work is measured by the Engineer in Charge. The intention behind the
provision is that all the measurements for works shall be recorded in time. The
measurements for works are the most vital details, which get measured and
accepted by both the parties. Only by delaying the taking of measurements, by
the Engineer in Charge cannot of course delay the date of completion, since
shelter under this provision cannot be resorted to for the lapse by the party taking
advantage of it. If the contractor delays / avoids finalizing of measurements,
application of this provision will be reasonable.

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12.5.5 The following will be clear from a careful study of provisions under Clause 8,

(i) Once the Contractor gives notice of completion, the Engineer-in-charge

inspects the work and issues Provisional Certificate of Physical
Completion/Completion Certificate.

(ii) The next step is for taking the Final Measurements duly recording the actual
Date of Completion in the Measurement Book.

(iii) The next step is of issue of Final Completion Certificate which is however
issued only after all the defects pointed out at the stage of issue of
Provisional Certificate of Physical Completion are rectified, the contractor
accepts the reduced rates offered by the Engineer-in-charge for specific
BOQ items not strictly conforming to Specifications and the Contractor
clears the site of all obstructions and unwanted materials. The Defect
Liability Period shall start from date of issue of Final Completion Certificate.

(iv) The next step is that of preparation of Final Bill based on Final Measurements
in which the Actual Date of Completion of works is recorded.

12.6 CLAUSE 10C and Clause 10 CA of CPWD (Both clauses deleted from RITES
GCC – 2016)

12.6.1 Clause 10C of CPWD provides for reimbursement to contractor due to increase /
decrease caused as a direct result of coming into force of any fresh law or
Statutory rule or order in the price of materials incorporated in the works
excluding the materials covered under Clause 10CA of CPWD and / or wages of
labour increased or decreased over prices / Wages prevailing at the time of the
last stipulated date of receipt of tenders including extensions, if any. Under this
clause the Price Variation was applicable for the work during the contract period
including the justified period extended under the provisions of clause 5 of the
contract without any action under clause 2. The increase should not be
attributable to any delay in the execution of the contract within the control of the
contractor.

12.6.2 Clause 10CA of CPWD provided for varying the amount of Contract due to
increase or decrease in prices of various materials pertaining to the work. This
clause was applicable for allowing adjustment in cost of work due to variation in
prices of certain materials specified in Schedule F constituting substantial part of
the works.

12.6.3 Since practical difficulties are likely to be faced in implementation of the

provisions in CPWD Clauses 10C and 10CA, these two clauses have been
deleted in RITES Standard GCC. Price Variation under Clause 10CC has been
provided and this is to be made applicable for all works when stipulated in
Schedule F and irrespective of the period of Contract.

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12.7 CLAUSE 10 CC (Based on the earlier version of CPWD GCC 2008 with
Clause 10CC applicable as a Stand alone Clause not linked to Clause 10CA)

12.7.1 This clause provides for compensation in case of increase in price of materials
and / or wages of labour required for execution of work (not for the materials
supplied or services rendered at fixed price in accordance with clauses 10 and
34 thereof), subject to certain conditions and also downward adjustment in case
of decrease in rates in above items.

12.7.2 Clause 10 CC may be made applicable only for contracts where the Estimated
Cost put to Tender is more than Rs.100 Lakhs, unless otherwise desired by the
Client. Whether Clause 10CC is applicable or not should be indicated in
Schedule F.

12.7.3 The components of cement, steel, material, labour and POL as percent of total
value of work for every work will have to be pre-determined and incorporated in
the contract under Schedule 'E' as given below.

XC Cement
XS Steel
XM Materials
Y Labour
Z POL
Total of percentages of XC, XS, XM, Y and Z will be 100. If there is any difficulty
in working out the percentages of different components, the following may be
adopted.

Category of work Cement + Steel + Material Labour POL

1. Buildings 75% 25% —

2. Road Works & Pavements in Air fields 90% 5% 5%

3. External Sewerage 90% 10% —

4. External Water Supply 95% 5% —

5. Bridgework/ Flyover Works 70% 25% 5%

Further break up may be worked out. In case of road works, percentage of

component of bitumen may be mentioned distinctly.

The above percentage components are suggested only for normal types of
works with ordinary/ hard soil strata etc. Where the soil strata is pre-dominantly
rocky, involving heavy cutting or there are other special features, percentages
may be fixed by the authorities approving NIT taking into consideration the
Detailed Estimate.
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12.7.4 In respect of carriage works and for other development works such as leveling
etc. as well as sspecialized types of works, the Tender Document approving
authority may decide on the details of components to be considered and the
percentages applicable for each. In all cases, the components and the
percentages as appearing in the Contract will be applicable for working out the
amount payable to / recoverable from the Contractor towards Price Variation,
irrespective of the variation in components or percentages as observed during
the actual execution of work.

12.7.5 The contractor shall be required to prepare the statements of escalation or de-
escalation at the end of every three months and submit to the Engineer in
Charge. The first statement of escalation shall be prepared at the end of three
months excluding the month in which the work was awarded and the work done
from date of start to the end of this period shall be taken into account. For
subsequent statements, cost of work done during every quarter shall be taken
into account. On the completion of work, the work done during the last quarter or
fraction thereof shall be taken into account. For the purpose of reckoning the
work done during any period, the bills prepared during the period shall be
considered. The dates of preparation of bills as entered in the M.B. by the Site
Engineer shall be the guiding factor to decide the bills relevant to any period.
The date of completion as finally recorded by the competent authority in the MB
shall be the criterion for the last quarter or fraction thereof.

12.7.6 The Engineer in Charge will sanction the compensation for escalation or
deduction on account of de-escalation and the amount thus sanctioned will be
included in the next running account bill or final bill as the case may be. The cost
of work for which escalation/ de-escalation is applicable / deductible shall be
worked out as indicated in Clause 10CC.

12.7.7 `The Engineer-in-Charge shall ensure before sanctioning any amount under
Clause 10CC, that such compensation for escalation in prices and wages shall
be available only for the work done during the stipulated period of contract
including the justified period extended under the provision of Clause 5 of the
contract without any action under Clause 2. However, for works executed during
the justified period extended as above, the compensation towards price variation
will be limited to the indices/wages prevailing at the time of stipulated date of
completion or as prevailing for the period under consideration, whichever is
lower. Monthly Wholesale Price Index for Grey Cement, Steel (Rebars), All
Commodities and High Speed Diesel as published by Economic Advisor, Ministry
of Commerce and Industry, Government of India as well as higher amount of
Minimum Daily Wages of unskilled adult male mazdoor specified by the
Government of India or Local Administration for the periods as stipulated, should
be ascertained by Engineer-in-Charge with relevant copies of official documents
kept on record. Where final indices/Minimum Daily Wages are not available at
the time of preparation of bill for Price Escalation, provisional indices etc. may be

88
 used initially and the adjustments in amount payable carried out through
subsequent bills when the final indices etc. are available.”

12.7.8 According to the Clause the cost of “Extra Items, Substituted Items and
Deviated Quantities paid as per Clause 12 based on prevailing market rates” will
be deducted from the amount of total work done while working out the
escalation amount. Therefore, the amount of only those Extra/Substituted Items
and of Deviated Quantities which are based on market rates, are to be excluded
while working out the cost of work on which escalation is payable. The principle
involved is -

a. Escalation is payable on BOQ (contract) items paid at contract rates; and

b. Escalation is not payable on items / quantities which are paid at market rates.

As per Clause 12 of GCC, Substituted Items are derived from contract rates of
items which are substituted and thus have two components namely, (i) contract
(BOQ) rate and (ii) market rate. Therefore, in the case of Substituted Items,
while no escalation will be payable on the market rate component, escalation
will be payable on the BOQ (Contract Rate) component. Similarly, in the case
of deviated quantities, escalation will be payable on the deviated quantity within
the deviation limit and also for quantity beyond deviation limit but within the limit
specified in Clause 12.2 (C) which is payable @97% of contract rate. However,
no escalation will be payable on the deviated quantities paid at market rates.

12.8 CLAUSE 12

12.8.1 Under this clause the Engineer in Charge has powers to make any alterations in,
omission from, addition to or substitution for the original specifications, drawings,
designs and instructions.

12.8.2 The Engineer in Charge is empowered under this clause to give the necessary
instructions to the contractor and the contractor is bound to carry out the work in
accordance with such instructions but the following three conditions should be
satisfied in the issue of such instructions.

i) Instructions must be given before any additional or substituted item is

taken up or any BOQ item is to be omitted. This holds good also for
Deviation in Quantities of BOQ items beyond the permissible Limits where
revision of unit rates may be required to be worked out on the basis of
market rates.
ii) They must be given in writing.
iii) They must be signed by the Engineer in Charge.

12.8.3 As regards the extra time for completion of the work due to deviations in
agreement items and altered, additional or substituted items, the Engineer in
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 Charge should determine the proportion that the algebraic sum of deviated,
altered, additional or substituted work bears to the original contract work and
certify for such portion. For substituted items, the additional cost of modified
component only is to be taken. In all cases, payment towards Clause 10CC
should not be considered. He should extend the time for the completion of the
work according to such proportion plus 25% thereof. The proportion so based on
Market rate analysis determined by the Engineer in Charge is final and the
contractor cannot raise a dispute as to such proportion and demand arbitration.
However, if the contractor feels that the period of extension given is, having
regard to the proportion so determined miscalculated, it is open to him to request
arbitration under the relevant clause about the propriety or otherwise of such
period of extension.

12.8.4 Some times while sanctioning rates the Engineer in Charge gives the impression
to the Contractor that although he had recommended higher rates, the higher
level competent Authority had reduced them. It should clearly be borne in mind
that under the terms of the contract it is the Engineer in charge who is the
competent authority for according such sanction and it should be so worded as to
convey clearly to the other party that the rates have been sanctioned by him and
not by or at the instance of the higher authority. Sometimes the Engineer in
Charge endorses copies of communication addressed by him to the competent
authority for sanctioning rates for certain items, to the contractor concerned. This
practice is irregular and is likely to cause legal complications. All communications
in connection with fixation of rates etc. should be marked “Confidential” and
copies thereof should not be endorsed to the contractors or any other private
party. In reply to the communications of the contractors asking for early
settlement of rates, where rates are required to be examined and sanctioned by
higher authorities and the sanction is awaited, the contractor should not be
informed that sanction of the competent authority is awaited. They should only be
informed that the matter is under consideration and is receiving attention.

When the contractor insists for a copy of the rate analysis, on which his
signatures are being taken, the same can be given without any
signature/endorsement of RITES official.

12.8.5 In the case of deviation in quantity of BOQ items beyond the Deviation Limit,
Clause 12.2 C of contract lays down that the rate payable for such excess
quantity upto the additional limit specified therein, will be 97% of BOQ rate for the
respective item. For quantity in excess of such specified limit, the contractor is
required to claim revision of his rate supported with proper analysis. On receipt
of analysis of rates from the contractor, the Engineer in Charge should arrange to
get the same checked and vetted and obtain approval of the Competant
Authority. There can be cases where the BOQ rate being high, the Contractor
may not be interested in approaching Engineer-in-Charge for revision of rate for
the excess quantity. In such cases, the Engineer-in-Charge can take suo-moto
action to fix up revised rate. As far as possible, the market rate analysis should

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 be based on coefficients given in the Standard Analysis of Rates of CPWD/Indian
Railways/Ministry of Transport etc. as applicable. The market rate analysis is
required to be done by the Controlling Site Engineer and checked by Project
Coordinator. Where there is likely to be some difficulty in a single individual
making out the analysis, SBU Head may consider setting up a two member
committee, one from Engineering branch and another from Accounts. In cases
where the Contractor does not furnish his analysis of rates, payment should be
effected at the rate arrived at by Market rate analysis subject to a maximum of
97% of BOQ rate. Till the rates are fixed with the approval of the Competent
Authority, the Contractor may be paid at adhoc rate of 75% of BOQ rate. All out
efforts should however be made to obtain the approval of Competent Authority
for the Revised rate at the earliest.

12.8.6 Special care should be taken while agreeing to omissions or substitutions. They
are potential factors leading to undue benefit to contractors. Hence even if the
Client asks for omission or substitution, it should be checked if it will result in
undue benefit to the contractor and if so, the Client should be advised
accordingly and his approval taken in writing.

12.8.7 For operation of this clause, the following points are to be kept in mind.

i) There should be written order for Deviations in excess of the limit for which
rates have been fixed in the contract.

ii) The Contractor is to apply for revision of rates supported by analysis within 15
days after receipt of such communication.

iii) The rates for deviated quantities beyond limits for which rates have been
stipulated in the contract, are to be based on market rate

iv) The work shall not be suspended on the plea of non settlement of rate.

v) It should be noted that the whole operation of Clause 12 is for deviation in

works which appear necessary in the execution of work specified in the scope of
work and not for carrying out major modifications in Scope of Work, which should
be taken care of by either placing a Repeat Order as per provisions of para 17.8
or by fresh tender.

12.9 CLAUSE 14

This Clause on “Carrying out Part work at risk and cost of Contractor” had been
deleted in RITES GCC 2008 Edition, having been merged with Clause 3 which
deals with the subject “When Contract can be determined”.

In the course of execution of work by the Contractor, the following situations may
arise.

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i) The Contractor defaults in carrying out any or all of his obligations under
the Contract resulting in the Employer’s decision to terminate the contract
and get the balance works carried out through any other agency.
ii) The Contractor performs his obligations under the contract satisfactorily
but the Employer decides to abandon or reduce the scope of the works
for any reason whatsoever and hence does not require completion of the
whole or part of the works remaining to be carried out by the Contractor,
thus foreclosing the balance whole or part work.
iii) The Contractor’s performance is not found to be upto the desired level but
he has completed 80% of the tendered value of work and the Employer is
of the opinion that the contractor will not be able to complete the entire
balance work within the scheduled period of completion including
extension granted if any. Under these circumstances, the Employer may
decide to take away part work / part incomplete work items from the
Contractor’s hands leaving him to complete the rest of the work / items of
work under the Contract. The Employer gets the part work / part
incomplete work items so taken out of the hands of the contractor,
completed by any other agency.

In case of Termination of Contract under item (i) above, the procedure to

be adopted has been stipulated in Clause 3 of Contract. The Contractor
is to be issued a Show Cause Notice as per Proforma at Annexure 12.1,
12.2, 12.3 or 12.4 as applicable and a Notice of Termination as per
Proforma at Annexure 12.5.

In case of foreclosure of whole or part of the contract, the procedure to be

adopted has been stipulated in Clause 13 of Contract. This clause will be
applicable only in case a final decision is taken not to carry out in the near
future, the whole balance or part balance work proposed to be foreclosed.
In case of such foreclosure, the contractor is to be issued a Notice in the
Proforma at Annexure 12.6.

In case it is decided by the Employer to take out part work / part

incomplete work from the contractor’s hands for getting it completed
through another Agency, the contractor is to be issued a Show Cause
Notice in the Proforma at Annexure 12.6A calling for his remarks as to
why part work / part incomplete work items should not be taken out of his
hands while leaving him to carry out rest of the work. If the explanation of
the Contractor is not found to be satisfactory and the Employer decides to
take out part work / part incomplete work items from the Contractor,
Notice is to be issued to the Contractor in the Proforma at Annexure
12.6B.

In short, Clause 3 is to be applied for Termination of Contract covering

the entire balance work in case of default of the Contractor, with monetary
penalty imposed on the Contractor as per a defined procedure. Penalty
does not depend on what it costs to the Employer to carry out the balance
work. The Employer has the discretion to get the balance work carried out
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 through another Agency and the Contractor from whom part work is being
taken out is not allowed to participate in the fresh tender.

Clause 13 is to be applied where the Employer decides to foreclose the

full or part balance of the work since it is not required to be carried out.
Since there is no fault of the contractor, the contractor is monetarily
compensated though to a limited extent only, to take care of his loss.

Clause 14 is to be applied in cases where the contractor has completed

80% of the tendered value of work and fails partially in carrying out his
obligations and the Employer decides that to ensure that the work as per
original scope is got completed in a defined time limit, part work / part
incomplete work items should be taken out of the hands of the contractor
and got completed through another agency. In this case, since there is
some default of the contractor, penalty is imposed on the contractor of a
defined amount which however is not dependant on the actual cost at
which the part work/ part incomplete work is got carried out by the
Employer through another Agency. The Contractor is allowed to carry out
the rest of works excluding that taken out of his hands. The Employer
has the discretion to have such part work / part incomplete work taken out
of the hands of the first contractor, completed by any other agency. On
taking action under clause 14, the Employer is entitled to recover a sum
equivalent to 20% of the value of the part work / part incomplete work so
taken away subject to a maximum limit of 10% of the tendered value of
the work. The Contractor from whom part work is taken out, is however
not allowed to participate in the fresh Tender for the part work.

12.10 CLAUSE 16
12.10.1 Under this clause the Contractor may be required to make good the defects in
work at his own expenses or re-execute the work if it is not in accordance with
the specifications, designs etc. and the clause authorizes the Engineer in
Charge to offer lower rates to the contractor for work done below specification,
if the work so done does not compromise structural stability and safety and is
otherwise acceptable to RITES. Instructions on payment for substandard work
may be seen in Section 14 of this Document.

12.10.2 This clause empowers the Engineer in Charge to ask the Contractor to rectify
the defective work including during Defect Liability Period and in the event of
his failing to do so within the period to be specified by the Engineer in charge in
his demand, the contractor shall be liable to pay compensation at the rate
specified in clause 2, while his failure to do so continues and in case of any
such failure the Engineer in Charge may rectify, remove or re-execute the work
at the risk and expenses of the contractor. Notice to contractor, of the intention
to recover compensation, is not necessary under this clause.

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12.10A CLAUSE 21

Permission to sublet or assign the contract to another party may be given to a

contractor under this clause by Engineer in Charge. The Engineer-in-Charge
should keep the following points in view in case he decides to grant such
permission.

i) Sub-letting should be permitted only in exceptional cases and for recorded

reasons as to why contractor himself cannot directly run the contract.
ii) In all cases, Sublettee should be a contractor of the same or higher
capacity or class as the original contractor.
iii) Sanctioning authority must see the terms and conditions of the agreement
between the contractor and the Sublettee in order to satisfy himself that
the contractor is not subletting the work for earning a middle man’s profit.
iv) It should be seen at the time of subletting that RITES will not be put to any
loss on this account and that no risk is involved.
v) Individuals holding general power of attorney cannot operate a contract
awarded to a contractor.
Note: The work done on piece work basis through the labour employed by them
does not come within the definition of subletting the work.

12.11 CLAUSE 36

12.11.1In order to effectively operate the provisions under Clause 36, the Engineer in
Charge should ensure that the Contractor is called upon, immediately after issue
of Letter of Acceptance, to intimate the details i.e. name, qualifications, and
address of the Principal Technical Representative/Project Manager and Deputy
Technical representative or Deputy Project Manager required to be employed by
him as per terms of the contract and to ensure that properly qualified engineer/s
employed by the contractor is / are actually available at site to note down the
instructions conveyed by the representative of the Engineer in charge in the Site
Order Book or otherwise. The Contractor’s Engineer should also be invariably
present at the site of work for supervision at all times when any construction
activity is in progress. The contractor’s Engineer should also be associated with
the measurement of important items of work. In addition, the contractor’s
Engineer shall be present at the site of the work whenever desired by the
Engineer in Charge. In this respect advance intimation shall be given by RITES
verbally or in writing. Suitable directions should be issued to the Site Engineers
to verify this during their inspection of work and measurements recorded by the
Site Engineer. It is also essential that the certificate that a qualified engineer
satisfactorily employed by the contractor as per the provisions of clause 36 has
looked after the work during its execution is recorded by the Site Engineer along
with each running bill. Inspecting Engineers should also verify the fact of
employment during their visit of work.

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12.11.2 Certain administrative instructions as regard this clause are given as under:-

i) Even if a contractor (or partner in case of firm / company) is himself an

Engineer / Overseer, it is necessary on his part to employ Engineer/
Overseer for the supervision of the work as per stipulation.
ii) The Retired Engineers / Asst. Engineers who are holding Diplomas may
be treated at par with Graduate Engineers for the operation of the above
Clause. Diploma holder with minimum 10 year relevant experience with a
reputed construction company can be treated at par with Graduate
Engineers for purpose of such deployment subject to the condition that
such diploma holders should not exceed 50% of requirement of Graduate
Engineers.
iii) Engineers deployed as per stipulation in the contract shall look after only
the work under contract and no other work and shall be available fully
during execution of the work
12.11.3 Requirement of technical staff for a work shall be decided and stipulated in
Schedule ‘F’ as per guidelines given at Annexure 6.3. However, requirement of
technical staff and their experience can be varied depending upon the nature of
work and in case of composite works by Tender Approving Authority.

12.12 CLAUSE 42

12.12.1Clause 42 (ii) and (iii) of Contract lays down that recovery at a specified rate
(higher than the normal issue rates) is to be made from the Contractors for use of
cement and steel in excess over the quantity arrived at by theoretical calculations
when the materials are supplied by RITES. Such situations may arise in cases
where the Employer arranges bulk supply of materials and directs that the
Tender Document should provide for supply of specific materials to be contractor
free of cost or at fixed rates. The intention behind the clause is that the
Contractor shall get issued only the required quantity of materials and if any such
material remained unused at the time of completion or determination of the
contract, it has to be returned to the Engineer-in-Charge. The clause specifically
provides that the cost of material not so returned shall be recoverable at the rates
as specified. The rates so specified form the reasonable compensation for the
breach of the provisions therein. Thus this particular clause is not in the nature of
penalty but provides for a reasonable compensation. The aggrieved party for the
breach of the contract can receive reasonable compensation, not exceeding the
amount so named. The recovery rate specifically mentioned in the particular
clause for such breach is not the black market rate of cement or steel but a
contract between the parties provided as reasonable compensation for breach of
the contract relating to the excess issue of cement and steel, not returned by the
contractor.

12.12.2In order to operate the provision of this clause effectively it is necessary that with
every running account bill a statement showing the theoretical requirements of
cement and steel for the items of work done and measured should be prepared
and got signed by the Contractor at the time of obtaining his signature on the
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 running account bill, so that he is aware of the basis on which the theoretical
calculations are worked out. It will also enable exercise of broad check over the
consumption of these materials during the execution even in cases where the
contractor is to make his own arrangements for cement and steel. As already
mentioned above, the recovery at the rates so specified in the clause is for the
material in excess over the quantity arrived at by theoretical calculations and not
returned by the Contractor (and not for excess consumption). It is thus
particularly essential for the Engineer-in-Charge never to admit that entire
quantity of material issued had actually been consumed in the work. In the
counter statement of facts in arbitration also, statement such as excess material
has actually been used in the work should never be made. It is also absolutely
necessary that a notice in writing should be issued by the Engineer-in-Charge to
the contractor to return the materials issued in excess of the theoretical quantity
as provided in clauses 42 and 10. Only there after action for recovery under
clause 42 is to be taken. Once the distinction that recovery is for excess over
theoretical consumption and not for consumption in the work becomes clear, it
will be inappropriate for the Engineer in Charge to admit that the entire quantity
of materials issued has actually been consumed in the work. In the Counter
Statement of Facts on Arbitration also, Statement such as “Excess materials
have already been used on the work” should never be made.

12.12.3In a judgment, the Delhi High Court has upheld that recovery at double the issue
rate (existing in GCC at that time) for the quantity of materials issued in excess
over the quantity calculated on theoretical basis under Clause 42 (ii) of the
Contract is justified.

12.12A CLAUSE 45A

Some State Governments have enacted legislation holding the consumer of

minor minerals like red bajri, stone, kankar etc. equally responsible as the
agency quarrying the material, for payment of royalty charges to the
Government. In contracts entered into by RITES on behalf of the Employer, it
thus becomes the responsibility of RITES to ensure that the royalty charges are
paid to the Government. In terms of Clause 37A of GCC, the Contractor has
been made responsible for the same. To protect the interest of RITES, Clause
45A has been introduced by linking release of Security Deposit with the
clearance from State Govt. Authority for mineral extraction. Clause 45A also
provides that the State Govts’ clearance will be deemed to have been received if
no reply is forthcoming, from the State Govt. Authority on a reference from
RITES, within four months from the date of issue of such a Notice. Format for
such a Notice to be issued by RITES to the State Govt. Authority is at Annexure
12.10.

12.13 Clause 47

12.13.1Clause 47 of GCC prescribes that the contractor has to arrange insurance for
loss of or damage to the works, plants, materials, equipment etc. Such
insurance shall be for the values as indicated in Clause 47.1.1 and in the case of
insurance for works under Clause 47.1.1 (a) the insurance should include the
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 cost of all materials supplied free of cost or at fixed cost by the Employer for
incorporation in the works. The cost of such materials will be arrived at based on
the anticipated cost of procurement, transportation handling storage etc. and
advised to the Contractor. The Contractor shall be required to obtain
Contractor’s All Risk Policy for this purpose.

12.13.2 The minimum insurance cover for physical property, injury or death may be kept
as Rs. 10 lakh per occurrence (or as provided in the Contract) with the number
of occurrences limited to four. After each occurrence contractor will pay
additional premium necessary to make insurance valid for four occurrences
always.

12.14 PROFORMA FOR NOTICES TO CONTRACTOR UNDER VARIOUS CLAUSES

OF CONTRACT AND FOR COMPLETION CERTIFICATES

Annexures 12.1 to 12.10 as detailed below give the Proforma of Notices to be

issued to the Contractor under various Clauses of Contract. In these Proformae
Engineer in Charge represents the official of RITES who has signed the Works
Contract with the Contractor and Site Engineer is “The Engineer” as defined in
clause 2 (vi) of Section -7 (Conditions of Contract) in RITES Standard Tender
Document which implies that Controlling Site Engineer who is in charge of the
work at site on behalf of Engineer in Charge.

Sl. No. CONTENTS ANNEXURE

No.
1 Notice under Clause 3 (i) for rectification / 12.1
reconstruction / replacement of defective work
2 Notice under Clause 3 (ii) for restarting of work / 12.2
proceeding with the work with due diligence
3 Notice under Clause 3 (iII) to accelerate the pace of 12.3
works to complete it within the stipulated time
4 Notice under Clause 3(Iv) to carry out the specified 12.4
obligations under the Contract
5 Notice under Clause 3 for Determination of Contract 12.5
6 Notice under Clause 13 for Foreclosure of Contract 12.6
7 Show Cause Notice under Clause 14 for taking out 12.6A
part work
8 Notice of action under Clause 14 for taking out part 12.6B
work
9 Notice under Clause 17 for rectification of defects 12.7
during Maintenance period
10 Proforma for Provisional Certificate of Physical 12.8
Completion under Clause 8
11 Proforma for Final Completion Certificate under 12.9
Clause 8
12 Proforma for Notice to the State Government 12.10
Authorities under Clause 45A

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 SECTION 13

EXTENSION OF TIME AND COMPENSATION FOR DELAY

13.1 GENERAL PRINCIPLES

13.1.1 At the time of issuing Notice Inviting Tenders for a particular work, the Tender
Approving Authority should approve the time allowed for completion of the work
consistent with the magnitude and urgency of the work.

13.1.2 The time allowed for carrying out the work as entered in the contract shall be
strictly observed by the contractor. In the LOA, reference is given to the time
limit as reckoned from 15 days or as mentioned in Schedule F after the issue of
LOA or first day of the handing over of the site whichever is later. LOA shall not
be issued unless part of site adequate to execute the work in the first few months
is available, with the assurance that the balance site will be made available
progressively to enable completion of the work within the Scheduled time.

13.1.3 The work shall, throughout the stipulated period of the contract, be proceeded
with all due diligence (time being deemed to be the essence of the contract) on
the part of the contractor.

13.1.4 To ensure good progress of the work during the execution, contractor shall be
bound, in all cases, in which the time allowed for any work exceeds one month
(save for special job), to complete the works as per the milestones given in
Schedule F under Clause 5 of contract or as per the rescheduled milestones.
However, for special jobs if a time schedule has been submitted by the
Contractor and the same has been accepted by the Engineer in Charge the
contractor shall comply with such time schedule. This should be incorporated by
an amendment to the Milestones, if required.

13.1.5 The Tender Approving Authority shall approve the time schedule to be stipulated
for milestones in Schedule ‘F’ in the tender document. The Engineer in Charge
shall as far as possible review the progress of work each month with all the
concerned disciplines including the contractor. The factors affecting the progress
shall be identified and discussed and remedial measures taken, wherever
required. Detailed minutes of these meetings shall be issued. For larger projects,
in addition to the monthly review, the Engineer in Charge shall, in a similar
manner, specifically review in detail the progress of the work just before the
stages of 1/4th, ½, 3/4th and also about a fortnight before completion of the
stipulated contract period. Whenever physical milestones have been specified in
the tender document, the detailed review may be carried out on the dates
specified for such milestones. While processing the extension of time for genuine
hindrances, Engineer in Charge should re-schedule the milestones for the work
appropriately, if required for the approval of the Competent Authority for grant of
EOT as per SOP.

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13.2 REQUIREMENTS OF CLAUSE 5
Clause 5 of Contract empowers the Engineer in Charge to allow extension of
time for the completion of the work in normal course on certain conditions. He
can exercise such powers if the following conditions are satisfied subject to
getting approval of Competent Authority to grant extensions (as per SOP).

i) the Contractor must apply to the Engineer in Charge in writing for

extension of time.
ii) Such application must state the grounds which hindered the contractor in
the execution of the work within the stipulated time.
iii) Such an application must be made within 14 days of the date on which such
hindrance arose.
iv) The Engineer in Charge must be of the opinion that the grounds shown for
the extension of time are reasonable.
13.3 POWERS OF OFFICERS FOR GRANT OF EXTENSION OF TIME
The powers for grant of extension of time have been delegated to RITES Officers
in the Schedule of Powers.

13.4 GRANT OF EXTENSION OF TIME WITHOUT APPLICATION

13.4.1 Based on Hindrance Register where adequate and proper grounds exist, the
Engineer in Charge can grant extension of time even in the absence of
application from the contractor under Clause 5.

13.4.2 The extension, in order to be binding, will have to be by parties’ ‘agreement’

express or implied. It, therefore, follows that if the extension of time is granted by
the Competent Authority and such extension of time is accepted by the
contractor, either expressly or implied by his action before and subsequent to the
date of completion, the extension of time granted is valid. It is, therefore,
necessary that the Engineer-in-Charge grants extension of time even when the
contractor does not apply for extension of time in order to keep the contract alive.
If the contractor refuses to act upon the extension granted by the Engineer-in-
Charge it will attract the provisions of clauses 2&3 of the Contract.

13.4.3 The recovery of liquidated damages for delayed performance, on account of

which extension of time is granted under clause 2, is a distinct matter and would
depend on factors enumerated in para 12.3.4

13.5 FORM OF APPLICATION FOR EXTENSION OF TIME

13.5.1 The form of application for extension of time to be submitted by the contractor
has been standardized and is at Annexure 13.1. Part I of the form is one on
which the contractor is required to apply for grant of extension of time. Part II of
the form is to be used by RITES officers for purposes of dealing with the
application for extension of time.

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13.5.2 Whenever any hindrance comes to the notice of the Site Engineer, he should at
once make a note of such hindrance in the register kept at site and make a report
to the Engineer-in-Charge within a week. The entry of date of removal of
hindrance should be made on the same day as the cause of hindrance is
removed. The Project Coordinator/Engineer-in-Charge shall review the
Hindrance Register during every visit to the site. During such visits, the Project
Coordinator should workout the over-lapping period, net period of hindrance and
weight age of each hindrance and the items of work affected due to the
hindrance. Alternatively, he may delegate such authority to the Controlling Site
Engineer. In such cases, the Project Coordinator must review the Hindrance
Register during each visit.

13.5.3 The Engineer in Charge shall decide the question of extension of time within 15
days of receipt of application of the Contractor for extension of time if it is within
his competence.

13.5.4 Although the Contractor is required to seek extension as soon as possible after
the happening of the event causing delay and not later than three months prior
to the stipulated date of completion in respect of all hindrances encountered till
then, it does not debar the grant of extension sought later, by the competent
authority who can condone such delay in application. The competent authority
should condone the delay only when the contractor shows good reasons for
not seeking it within the period specified in the contract. The contractor cannot
demand for extension but can only request, in case he has not complied with
provisions in Clause 5.

13.6 PROCEDURE FOR GRANTING EXTENSION OF TIME

13.6.1 In cases where the sanction of the higher authority to the grant of extension is
necessary, the Engineer in Charge should forward the application as soon as
possible and if the orders of the Competent Authority (Tender Accepting
Authority) are not received before the expiry of original completion date or the
previously extended completion date, the Engineer in Charge should extend the
Contract before the stipulated date expires so that the Contract remains in force
but while communicating the extension of time, he must inform the Contractor
through a letter in the format at Annexure 13.2 that this is without prejudice to
RITES right to levy compensation under Clause 2 of the Contract. The Tender
Accepting Authority should pass his orders on the application within 15 days of
receipt of the same from the Engineer in Charge.

13.6.2 In case the Competent Authority decides to grant the extension without levy of
Liquidated Damages, the Engineer in Charge will communicate the same to the
Contractor in the format at Annexure 13.3.

13.6.3 The decision in regard to levy of Liquidated Damages for delay in the execution
of works in terms of Clause 2 of the Contract should not be recorded in the
Measurement Book of the work concerned.
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13.6.4 The contractor’s application should be processed and approval of the competent
authority sought and, in case, orders of the competent authority are not received
before the expiry of original completion date, the Engineer-in-Charge should
extend the contract as per format at Annexure 13.2 of ‘Guidelines’. Issuance of
extension of time to the contractor reserving the right to levy compensation at a
later date is a provision meant to be used only as a ‘stop gap’/ temporary
measure till the competent authority decides the issue. It has, however, been
observed that in practice, no efforts are made to obtain contractor’s application
for Extension of Time and ‘provisional’ extension is given repeatedly to the
contractor as a routine reserving the right to levy liquidated damages later and
only after completion of the project, the case for extension of time is put up for
approval of the competent authority. In such circumstances, the case for grant of
Extension of Time becomes fait accompli. This is not only in contravention of
para 13.6.1 of ‘Guidelines’ but is also against the specific provision of Clause 5.4
of RITES’ GCC for works. The Engineer-in-Charge can extend the currency of
the contract reserving the right to levy compensation at a later date in the format
given at Annexure 13.2 of ‘Guidelines’ on not more than two occasions
consecutively. Further, while extending the contract in this fashion (i.e., reserving
the right to levy compensation at a later date), the Engineer-in-Charge should
endorse a copy of his letter addressed to the contractor, to the authority
competent to levy compensation; and on this endorsement (not on the original
letter), the Engineer-in-Charge should give reasons for having to extend the
contract without obtaining approval of the competent authority for grant of
extension of time. The final decision on extension of time should be conveyed to
the contractor only after approval of the competent authority and of client, in case
the contract with client requires so.

13.7 COMPENSATION UNDER CLAUSE 2

The word compensation should be used in relation to clause 2 of the Contract
instead of the word penalty.

13.8 SECTION 74 OF THE INDIAN CONTRACT ACT, 1872

13.8.1 When a contract has been broken, and if a sum is named in the contract as the
amount to be paid in case of such breach or if the contract contains any other
stipulation by way of compensation, the party complaining of the breach is
entitled, whether or not actual damage or loss is proved to have been caused
thereby, to receive from the party who has broken the contract reasonable
amount not exceeding the one so named or as the case may be, the
compensation stipulated for.

13.8.2 According to clause 5 of the Contract all letters of extension of time to be issued
to the contractor should be over the signature of Engineer in Charge as he is the
only officer so empowered contractually to grant extension of time as he has
signed the Contract Agreement. Similarly all letters intending to impose
compensation or to recover liquidated damages under clause 2 of the contract
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 should be issued over the signature of Engineer in Charge conveying the
decision of the officer competent to do so. The above stipulation is to be
adopted even if the decision to give extension of time and / or impose levy of
compensation may have been taken by RITES official at a higher level.

13.9 PROFORMA FOR INTIMATING THE CONTRACTOR ON LEVY OF

COMPENSATION UNDER CLAUSE 2

While Clause 2 of Clauses of Contract stipulates that withholding of amount for

failure to achieve any milestones shall be automatic without any notice to the
contractor, in case action is proposed to levy liquidated damages, this will require
a show cause Notice to be served on the contractor in the Proforma at Annexure
13.4. This Proforma is to be used in cases where it is proposed to allow the work
to be completed by the Contractor without terminating it. The Contractor’s
explanation for the delay in execution of the work should be considered by the
Authority Competent to levy Liquidated Damages as mentioned in Schedule F.
The Competent Authority may decide to grant Extension of Time without levy of
Liquidated Damages. Then the Contractor may be advised accordingly through
a letter generally in the Proforma at Annexure 13.3. If the Extension of Time is
proposed to be given with levy of Liquidated damages, the Contractor may be
advised accordingly in the Proforma at Annexure 13.5. Where it is decided to
terminate the contract, action can be taken under both Clauses 2 and 3. As
regards action under Clause 3, para 12.2 may be referred to. For action under
Clause 2, the Contractor is to be issued Show Cause Notice in the Proforma at
Annexure 13.6 and final advice on Levy of Compensation in the Proforma at
Annexure 13.5.

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 SECTION 14

PAYMENT FOR SUB-STANDARD WORK

14.1 PROCEDURE FOR ACCEPTANCE OF SUB-STANDARD WORK

14.1.1 The contractors are required to execute all works satisfactorily and according to
the specifications. If certain items of work are below specifications, the
Contractor should be asked to redo them according to the specifications. During
the progress of the work, defects/deficiencies in the items of works are to be
noted in time and recorded in site order book. It will be the duty of the Site
Engineer and inspecting officials to point out such defects in the work in time
during the progress of the work. These defects should also be brought to the
notice of Engineer in Charge immediately, so that he may take timely action to
issue notices to the contractor either to rectify the defects or even get the work
dismantled and redone if necessary as per Clauses 3 and 16 of the contract.

14.1.2 Every attempt should be made to issue such notices regarding the defective
items during the progress of the work. Where however this is not found feasible,
the same should be issued within the prescribed maintenance period. Timely
action alone can prevent occurrence of defects which will be difficult or
impossible to rectify later on.

14.1.3 If the Contractor does not rectify the defect, the work should be got redone or
rectified by employing other agencies at the Contractor’s cost in terms of clause
16 of Contract.

14.2 ACCEPTANCE OF SUB-STANDARD WORK

14.2.1 Acceptance of work below specifications and payment of reduced rates should
be resorted to with the approval of the competent authority (Authority competent
to sanction rates for Non Schedule items. Item 8.3 of SOP) only for those items
where it is structurally impossible to get the work redone. Normally, sub-
standard work must be got rectified and if necessary redone. Acceptance of sub
standard work at reduced rates should be done only under exceptional
circumstances as they reflect poorly on the professional competence of the field
staff and adversely affect the image of RITES. Total value of items at agreement
rate, for which the sub-standard work can be accepted in a contract shall not
exceed 5% of the contract value for contracts upto Rs. 20 crores and 3% of the
contract value for contracts above Rs. 20 crores or Rs.1 Crore whichever is
higher. Before a sub-standard work is accepted by RITES, the Engineer in
Charge after getting prior approval of competent authority should write a letter to
the contractor for and on behalf of RITES regarding acceptance of the same and
the provisional rates pending the decision of the competent authority (Item 9.1 of
SOP) with regard to final rates. In reply to this letter the contractor should send
his consent for acceptance of the terms specified by RITES. For this purpose two
forms as per Annexures 14.1 and 14.2 may be used. The decision of the
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Competent Authority (Item 8.3 of SOP) regarding the quantum of reduction as
well as justification thereof in respect of rates for sub standard work which may
be decided will be final and would not be open to arbitration under Clause 25 of
the agreement.

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 SECTION 15

ISSUE OF MATERIALS TO CONTRACTORS

15.1 ISSUE OF MATERIALS TO BE AN EXCEPTION

1) Issue of materials to works, whether from stock or by purchase, transfer or
manufacture, are divided into two classes:

i) Issue to Contractor:

Issue of materials to contractors with whom agreements in respect of

completed items of works, i.e. for both labour and materials, have been
entered into.

ii) Issue direct to works:

Issue of materials when work is done through a contractor whose

agreement is for labour only.

2) The issue of materials to contractors is to be stipulated in contracts, which are

for completed items of work, only in the following circumstances.

i) When it is necessary to retain in the hands of the Employer the supply of

imported materials.

ii) When, in the interest of work, or with the object of utilizing existing stocks
or materials, it is desirable to retain in the hands of the Employer the
supply of certain other materials as well, and a condition to this effect has
been inserted in the contract.

3) Stipulation of materials to be issued by the Employer

i) Stipulated materials shall be issued for use at site on works, for all the
items where such materials are required. Factory made products like pre-
cast cement tiles, pre-cast hollow concrete blocks, pre-cast foam
concrete blocks, pre-cast RCC pipes etc., should not normally be
stipulated for issue.

ii) It should also be ensured that description of the materials to be issued

should be adequately specified in order to obviate chances of any
dispute. For example, if cement is specified for issue, its grade and
colour, i.e. whether it is grey cement or white cement, should be stated
and also whether it will be in bags or otherwise.

iii) The contract should specify:

a) the materials to be supplied by the Employer for use on the work,

b) the place or places of delivery, and

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 c) the rates to be charged to the contractor for each description of
materials.

iv) The rates to be charged to the contractors for materials to be supplied

should be definitely specified (vague provisions e.g. at stock rates should
be avoided) and if intending contractors had been told that the materials
would be supplied at certain rates and asked to tender on that
assumption, then that rate should be adhered to in the contract.

v) No carriage or incidental charges are borne by the Employer for moving

the materials beyond the place where the contractor has agreed to take
delivery thereof.

vi) The contractor should be held responsible for obtaining from the Employer
all such materials required for the work, and for making payment for them
by deduction from his bills at the rates specified, regardless of fluctuation
in the market rates or in the stock rates of the Employer.

vii) Conditions for supply of materials by the Employer should be so explicit

that no doubt or ambiguity is left which may encourage the contractor to
derive undue financial benefit subsequently. The tender documents
should include the specific items of work for which materials are intended
to be issued by the Employer with detailed description of materials.

4) Stipulation of free issue of materials-

In contracts entered into by the Employer for works, stipulation to issue

materials such as steel, cement etc. free of cost should be avoided.
However, in some exceptional cases, if such free issue of materials by the
Employer is stipulated, it should be ensured that suitable provisions are made
in the contract with regard to return of surplus materials and / or material
used in excess of theoretical requirement. The provision for wastage /
variation, if any, that will be permitted should be clearly indicated. The
recovery rate for effecting recovery from the contractor, in case the excess
materials are not returned or if the wastage / variation is more than the
permissible limit, should also be clearly stipulated, and it should be so fixed
that it discourages the contractor from retaining the unused materials.

5) In the receipts obtained from the contractors for the materials issued to them
(especially in the case of electrical materials and fittings), and even when
these are issued free of cost as stipulated in the agreement, makes of
materials / fittings and full technical details of the accessories shall be clearly
indicated to ensure that the same materials / fittings as issued by the
Employer are kept in safe custody by the Contractor at all times, and used on
the works for which these are issued.

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 6) Drawing of stipulated materials by the Contractor

It is not permissible for the contractor to obtain the materials otherwise where
the contract stipulates the issue of materials by the Employer, unless in a
case of emergency the supply has been entrusted by the Engineer-in-charge
for recorded reasons to the Contractor himself at suitable rates.

7) Stipulation of materials that are not available

RITES should not make any provision in the tender for the supply of materials
by the Employer to the contractors if the materials are not available for issue
from the Employer stores, or where they cannot be arranged in time for issue.

15.2 ISSUE, SUPPLY AND RECOVERY OF COST OF MATERIALS

15.2.1 It should be ensured that the materials are not issued to contractors arbitrarily
and without keeping an eye on the actual requirement at site. It is essential that
issues to contractors should be regulated and restricted to actual requirements
depending on the progress of the work.

15.2.2 The theoretical consumption statement for consumption of cement on the work
executed from the start of the work upto and including the work included in the
bill should be invariably prepared along with every running bill. This should be got
signed by the contractor at the time of obtaining his signature on the running
account bill so that he is aware of the basis on which the theoretical quantity of
cement is worked out and it will be possible for the contractor as well as RITES
to exercise a check over the consumption of cement during the execution of the
work. The theoretical quantity so worked out should be compared with the actual
issue of cement as per cement register as on the last date of the measurement of
the work. Should there be any difference beyond the normal limits of variations
between these two quantities, such difference should be properly explained both
for less or more consumption, by the Site Engineer.

15.2.3 In order to have an effective control, the following drill should be observed:–

a) The cement godowns should be properly and effectively double locked,

keys of one of the locks remaining with RITES and that of the other with
the contractor.
b) The pages of cement register should be as per Annexure 20.5 machine
numbered and each page initialed by Site Engineer. The cement godown
and the register should be checked by the inspecting officials during their
visit.
c) For additional safeguard, the following instructions should be followed:
i) For all major works using cement, the contractor shall distinctly display on
a board at the cement store indicating the opening balance on a particular
date, receipt during the day, issue during the day and closing balance at
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 the end of the day (The entries for receipts and issues shall be updated
immediately on physical receipt and physical issue and also at the end of
the day).
ii) While issuing an indent for fresh cement / steel, the balance material
available at the site should be checked. The Site Engineer must record on
the body of the indent, the balance of such material available at the time
and date of issue of the indent which should be taken into account for
further issue to the Contractor.
iii) The cement / steel and other materials received on any particular day,
shall not be used in the work or transferred to any other work for 24 hours
from the time of receipt at site, to facilitate physical check and verification
by the Site Engineer. Cement already available in the store at site should
be consumed first, before issue from the new consignment. Similarly new
steel items should be stacked in countable shape before these are used,
to facilitate physical check. The principle of first in and first out in issuing
cement bags should be strictly followed.
iv) The recovery from the contractor shall be regulated as per Clause 42 of
the
contract.
15.2.4 For making comparison of the actual consumption of steel with the theoretical
consumption, each diameter of steel bars should be treated as an individual item
and check on theoretical consumption should be applied to each diameter.

15.2.5 Theoretical consumption statement for steel bars should be prepared along with
every running bill. Should there be any case of issue being less or just equal in
any particular diameter / section than the actual consumption, this should be
properly investigated. If such issue diameter wise / section wise or in total is very
much higher than the consumption, it should be generally ensured that balance
steel is available at site in good condition and this should be certified by the Site
Engineer. Any serious discrepancies noticed should be reported to the Engineer
in charge.

15.2.6 Similar precautions should be taken in the case of all other materials issued by
RITES.

15.3 ISSUE RATES

15.3.1 Issue rates of cement, steel or any other items in the contracts should not be less
than the market rates of these commodities. This will be however subject to
provisions in the contract.

15.3.2 The recovery from a contractor on account of the cost of materials issued to him
for use on a work should ordinarily be made by deduction from the first bill
authorizing an advance payment or an on account payment to him for the work.
However, the recovery from contractor on account of the cost of materials issued
to him for use on a work may be made gradually on the basis of the theoretical
consumption plus wastage of the material used in the work measured upto date.
For each bill the field staff should certify that balance material is available in
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 Contractor’s custody. In case of shortage, the cost of the same should be
recovered.

15.3.3 The official holding stock of such materials shall maintain a proper accountal of
the issue to the contractor and return by him.

15.3.4 Where bitumen is supplied at a fixed rate, issue rate plus 10% recovery should
be made for supply in excess of permissible variation over theoretical
consumption. Where less than theoretical requirement of bitumen is used,
recovery at issue rate plus cartage should be made for quantity consumed less
as compared to theoretical requirement of bitumen.

15.4 RETURN OF SURPLUS MATERIALS

15.4.1 Where any materials for the execution of the contract are procured with the
assistance of RITES/ Employer either by issue from the Employer’s stocks or
purchase made under orders or recommendations issued by the Employer, the
contractor is required to use the said materials economically and solely for the
purpose of the contract and not dispose of them without the written permission of
RITES and return, if required by the Engineer in Charge, all surplus or
unserviceable materials that may be left with him after the completion of the
contract or at its termination for any reason whatsoever . In such cases the
Contractor shall be paid or credited with such price as the Engineer in charge
shall determine having due regard to the condition of the materials. The price
allowed to the contractor however shall not exceed the amount charged to him
excluding the element of storage charges. The decision of the Engineer in charge
shall be final and conclusive. In the event of breach of the aforesaid condition the
contractor shall, in addition to throwing himself open to action for contravention of
the terms of the contract and / or for criminal breach of trust, be liable to RITES
for all moneys, advantages or profits resulting or which in the usual course would
have resulted to him by reason of such breach.

15.4.2 The exact proportion in which the materials are to be used by the Contractor for
which he has tendered for finished items of works is laid down in the
Specifications / Schedule of Rates. Theoretical quantities of the materials which
should have been used by the contractor on execution of the work should be
calculated according to the Specifications/ Schedule of Rates provided in the
contract. According to clause 42 of the contract, difference of theoretical
consumption and the total actual issues, not returned by the contractor, is to be
recovered at the prescribed rate after allowing variation permitted therein.
Similarly the cost of the materials less used, based on the stipulated issue rates
etc. is to be regulated according to the provision of the said clause.

The excess consumption of materials beyond permissible limit as given in Clause

42 of the contract will be recovered at normal stipulated rate + 10% unless any
other rate has been stipulated in Schedule F.

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15.5 INSTRUCTIONS REGARDING STORAGE OF CEMENT IN GODOWNS

15.5.1 The provisions of para 3.1.2.2 of CPWD Specifications Volume 1 need not be
followed in respect of construction of cement godowns for works where
consumption of cement does not exceed five Tonnes. In such cases the
contractor shall be permitted to store cement at site inside a covered shelter
providing adequate safeguards against clodding of cement due to action of water
and against theft. The Site Engineer shall inspect such shelter and satisfy himself
that adequate safeguards as mentioned above exist.

15.6 ISSUE OF MATERIALS AGAINST BANK GUARANTEE

In cases of contract, where material is to be supplied by RITES against any Bank
Guarantee of equivalent value, the amount of security deposit in the shape of
FDR, Bank guarantee etc. should at no time be less than the cost of the material
supplied to the contractor and such materials should be supplied only after
ensuring receipt of Bank guarantee / FD / SD etc., adequate to cover the cost of
the items supplied.

15.7 RECOVERY TOWARDS MATERIALS ISSUED FOR RECTIFICATON OF

DEFECTS / REDOING WORKS

15.7.1 In order to discourage contractors from doing bad work, no allowance is to be

given for the materials issued for rectification of defects. The materials issued for
rectification of defective work should be recorded separately and recovered at
double the issue rate. The work re-done should be measured for record purpose
only and not for payment, if the dismantled work had already been measured for
payment.

15.7.2 If, however, it becomes necessary to issue cement for rectification of defects or
for redoing works necessitated due to natural calamity beyond the control of the
contractor, i.e. floods, earthquakes, etc such issues should be treated as
legitimate consumption on works and should not be charged at rates higher than
the issue rates. On the question whether redoing of work of rectification of
defects had, in a particular case, been necessitated by natural calamities etc the
decision of the Engineer in Charge will be final.

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 SECTION 16

MATERIALS ARRANGED BY CONTRACTOR AND

MANDATORY TESTS

16.1 GENERAL PRINCIPLES

16.1.1 Except in very rare cases where the contract conditions provide for some
stipulated materials to be supplied by RITES at rates as fixed and mentioned in
the Contract, it is the entire responsibility of the contractor to arrange all
materials, store them properly and use them in works. In the case of cement and
steel, being vital items, even if the materials are to be arranged by the
contractors, stored and issued for specific items of works, a close watch is to be
kept by the Site Engineer to ensure that the actual consumption agrees with the
theoretical requirements.

16.1.2 The following general principles are required to be followed in the cases of
material arranged by the contractor:–

i) The materials to be arranged should comply strictly with the specifications

laid down and referred to in the contract.
ii) Whenever materials are available in the market as per Indian Standard
Specifications laid down by Bureau of Indian Standards, the contractor
should arrange for only materials with ISI marking. In case of materials for
which IS specifications have not been laid down, the contract will specify
the specification such as British Standard, American Standard etc. to be
complied with and where nothing is laid down in the contract, the
specifications will be laid down by the Engineer-in-Charge. The Contractor
should arrange for the materials as per the specifications indicated in the
contract.
iii) If the contract stipulates in the case of materials like cement, steel etc the
desirable brand names, the contractor should arrange the materials of one
of the brands recommended. Where there is difficulty in arranging such
procurement, the contractor will take prior approval of the Engineer in
Charge for procurement of other brands. If brands are to be specified,
minimum three brands of equivalent prices may be specified in general
subject to materials under these Brands being easily available in the area
of work. For major items like cement and steel, atleast four and if possible
more, major reputed brands of equivalent prices may be specified. In the
case of specialized items like Steel / Aluminium Doors / Windows, they
should be got fabricated from reputed workshops.

iv) The theoretical consumption of materials like cement, steel pipes etc. shall
be worked out as per procedure prescribed in Clause 42 of the Contract
and in case the consumption of any such material is less than the
theoretical consumption including permissible variations, recovery at the
rate as prescribed shall be made.

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v) Before start of work, the contractor shall at his own expense supply to the
Engineer-in-Charge samples of materials to be used in the work and get
them approved in advance. For this purpose, the contractor shall furnish
Test Certificates or have the materials tested at his cost to satisfy the
Engineer-in-Charge that the materials comply with the specifications.
Materials as per the sample may be arranged by the contractor for use in
works only after the samples have been approved by the Engineer-in-
Charge. The samples shall be kept in safe custody to check that material
of same quality as the approved sample is actually used in the work.

vi) When the work is in progress, for the materials like cement and steel, the
contractor should continue to arrange to supply to the Engineer-in-Charge
the test certificates from the manufacturers.
vii) The Site Engineer will ensure that the mandatory tests are carried out as
stipulated in subsequent para 16.2 for the stipulated materials / products.
These tests are to be carried out in the field or laboratory as indicated
against each item. The cost of materials / products and the entire cost of
testing will be borne by the contractor.
viii) In addition to the mandatory tests, the Engineer-in-Charge may require
other non-mandatory tests to be carried out on the materials / products. In
all such cases, the contractor shall supply the samples free of cost. The
cost of such tests, wherever carried out, however shall be borne by the
contractors/ RITES in the manner described below, unless otherwise
specified in the Conditions of Contract.
a) By the Contractor, if the results show that the material / product does
not
conform to relevant BIS Codes or other Specifications as laid down in
the
Contract.
b) By RITES, if the results show that the material / product conforms to
relevant BIS Codes or other Specifications as laid down in the
Contract.

ix) Whenever the Head Quarters officers or SBU Heads inspect the site of
work, in addition to reviewing the progress of work and checking of site
documents, in case any quality control tests are programmed to be done
on the date of their inspection, the same may be got conducted in their
presence.
x) In major works, Special Conditions will provide for the contractor setting up
a Field Laboratory so that the Mandatory Tests can be carried out. In
smaller works, where such a Field Laboratory is not required to be set up,
the tests can be carried out in an outside laboratory selected by the
Engineer-in-Charge. In all works sites, the contractor shall maintain Field
Testing Instruments.

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16.2 MANDATORY TESTS - CPWD SPECIFICATIONS
16.2.1 CPWD Specifications 2009 as amended upto date lay down the details of
Mandatory Tests on materials and finished products. Mandatory Tests as laid
down are given in the enclosed Annexures 16.1 to 16.9 with brief details below.
Details have been given in the Anneuxres on the clauses / annexures of CPWD
Specifications to be referred to for the tests.

Chapter No. Subject Material Annexure

of CPWD
Specifications

3 MORTARS i)WATER 16.1

ii) CEMENT

iii) SAND

iv) FLY ASH

4 CEMENT i) STONE AGGREGATE 16.2

CONCRETE
ii) CONCRETE

5 REINFORCED i) NOMINAL MIX 16.3

CEMENT
ii) DESIGN MIX
CONCRETE
iii) READY MIX

iv) STEEL

6 BRICK WORK i) BRICKS / BRICK TILES 16.4

ii) SEWER BRICKS

iii) BURNT CLAY

PERFORATED BUILDING
BRICKS

8 MARBLE WORK i) MARBLE 16.5

ii) GRANITE

9 WOOD WORK i) TIMBER 16.6

ii) FLUSH DOOR

iii) MORTICE LOCKS

10 STEEL WORK i) STEEL 16.7

ii) STEEL TUBULAR

PIPES

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 11 FLOORING i) TERRAZO TILES 16.8

ii) PRESSED CERAMIC

TILES

16 ROAD WORK i) COARSE AGGREGATE 16.9

ii) FINE AGGREGATE

iii) BITUMEN

iv) EMBANKMENT
UNDER OMC
CONDITIONS

v) BITUMINOUS
MACADAM

vi) BITUMEN MASTIC

WEARING COURSE

vii) DENSE BITUMEN

MACADAM

viii)CEMENT CONCRETE
PAVEMENT (UNDER
CONTROLLED
CONDITIONS)

ix) FINE AGGREGATE

16.3 DESIGN MIX CONCRETE - ACCEPTANCE TEST

In chapter 5 of CPWD Specifications on Reinforced Cement Concrete,

Mandatory Tests have been laid down for “Design Mix”. In terms of Clause 9.3 of
IS 456-2000, Nominal Mix Concrete may be used only for Concrete of M 20 or
lower. For Concrete of higher strength, Design Mix Concrete has to be
necessarily used. For “Designed Concrete Mix”, it is necessary to carry out 28
days Compressive strength tests to check if the Concrete complies with the
Acceptance Criteria as laid down in IS 456-2000. A copy of the relevant extracts
on “Sampling and Strength of Designed Concrete Mix” from IS 456 of 2000 is at
Annexure 16.10. Number of samples of Concrete to be taken out for testing
depending on quantity of Concrete of a particular Grade produced in a batch,
has been indicated in Clause 15.2.2 of IS 456-2000. As mentioned in Clause
15.3, three test specimens (Cubes) shall be made for each sample for testing at
28 days. As given in Clause 15.4, the test results of each sample shall be the
average of the strength of three specimens. The individual variation should not
be more than + or - 15 percent of the average. If more, the test results of the
sample are invalid. The Acceptance Criterion on Compressive Strength has been
indicated in Clause 16.1 of IS 456:2000. In terms of this, the concrete shall be
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 deemed to comply with the strength requirements when both the following
conditions are met.

a) The mean strength determined from any group of four consecutive test
results complies with the appropriate limits in Col. 2 of Table 11 of IS 456-
2000.
b) Any individual test result complies with the appropriate limits in Col. 3 of
Table 11 of IS 456-2000.
Thus if a group of 4 consecutive samples A, B, C, D is tested for Compressive
Strength with Cubes A1, A2, A3, B1, B2, B3; C1, C2, C3 and D1,D2,D3 the
following have to be satisfied:–

i) Compressive strength of each individual Cube A1, A2 and A3 should not

vary by more than + or - 15 Percent of average Compressive Strength of
the three Cubes A1, A2 and A3 (say) Am. Similarly for Cubes B1, B2, B3;
C1, C2, C3 and D1,D2, D3.
ii) Mean Compressive Strength of four samples A, B, C & D (Average of
Cube Strength Am, Bm, Cm and Dm) should comply with the limits in Col.
2 of Table 11 of IS 456:2000.
iii) Am, Bm, Cm and Dm should each comply with the limits in Col 3 of Table
11 of IS 456-2000.
16.4 NOMINAL MIX CONCRETE - ACTION IN CASE OF FAILURE OF CONCRETE
IN MANDATORY CUBE TESTS
Action to be taken shall be as indicated in Clause 5.4.10 of Chapter 5 of CPWD
Specifications (Copy at Annexure 16.11.)

16.5 DESIGN MIX CONCRETE - ACTION IN CASE OF FAILURE OF CONCRETE IN

CUBE TESTS
As indicated in Clause 17.3 of IS 456-2000 extracts at Annexure 16.10, in case
of doubt regarding the grade of Concrete used, either due to poor workmanship
or based on results of Cube Strength tests, Core Test and / or Load Test may be
carried out as described in Clauses 17.4 and 17.6 respectively of IS 456-2000.
As given in Clause 17.7 of IS 456-2000, concrete members other than flexural
members should be preferably investigated by analysis. As an alternative to Core
Tests, Non destructive Tests as explained in Clause 17.8 of IS 456-2000 may be
carried out for estimating the strength of concrete in a structure. Any of the non-
destructive test methods may be adopted subject to agreement on acceptance
Criteria before testing.

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 SECTION 17

EXTRA, SUBSTITUTED AND DEVIATED ITEMS OF WORK AND PLACING OF

REPEAT ORDERS

17.1 DEVIATION
Deviation means deviation in quantities of items, i.e. where there is increase or
decrease in the quantities of items of work in the agreement. In other words, the
nomenclature of item of work remains the same but the quantities vary over
those provided in the agreement. The powers of the officers to approve such
deviations in quantities of agreement items are given in RITES Schedule of
Power (SOP). These powers, to be exercised with Finance Concurrence, are for
quantities including the limits provided in the Contract for which rates have been
stipulated in the contract.

17.2 PRIOR SANCTION OF COMPETENT AUTHORITY NECESSARY – DEVIATED

QUANTITY
17.2.1 No deviation in the quantity of any item as stipulated in the BOQ should be made
at site without the prior in-principle approval of the competent authority (Ref.
SOP)

17.2.2 The Site Engineer in charge of the work shall be responsible to assess the
anticipated deviation and to initiate Deviation Item Statement for the work to be
done in excess of the agreement quantity of any item well in advance. They shall
allow the execution of work in excess of the agreement quantity only after the
excess over the agreement quantity has been approved in-principle by the
competent authority.

17.2.3 The fact that the deviations are shown in the approved plans through
modifications should not be construed as having the sanction of the competent
authority. Prior concurrence of the Competent Authority as per SOP should be
taken for making deviations from the approved plans, on the basis of which
estimates have been framed and tenders called for.

17.2.4 Pending approval of the Competent Authority for revised rate payment for the
work done in excess of the quantity upto which unit rates have been specified in
Clause 12.2 of GCC will be allowed by the Bill paying authority only at 75% of the
Contract (BOQ) rate for that item. Efforts should be made to obtain the approval
of competent authority expeditiously for the revised rate applicable to such
quantity so as to regularize the payment to the Contractor.

17.3 EXTRA / SUBSTITUTED ITEMS

17.3.1 Extra items of work are items, which are completely new and in addition to the
items in contract.

17.3.2 Substituted items are items which are taken up in lieu of those already provided
in the contract. These are generally with partial modification in items of work in

116
 the contract. If an agreement item is completely changed, the new item taken up
in lieu of it is an Extra item.

17.3.3 Wordings of extra / substituted items sanctioned by competent authority should

be properly formulated so as to reflect the exact mode of execution in the field.

17.3.4 No extra / substituted item should be executed without the prior in principle
approval of the Competent authority as per SOP.

17.3.5 Till sanction of rates of Extra/Substituted items by the Competent Authority as

per SOP, the contractor may be paid @ 75% of the rates assessed by Bill
Passing Officer for such items.

17.3.6 The payment of extra item and deviation item beyond the permissible limit for
which rates have been stipulated in the agreement will be worked out based on
market rates prevailing at the time of commencement of execution of these
items. For substituted items the agreement rate of the original item will be
adjusted for the difference in market rates of original and substituted items.
(Refer Clauses 12.2 and 12.3 of Clauses of Contract)

17.4 FIXATION OF RATES FOR DEVIATED / EXTRA / SUBSTITUTED ITEMS

Rates in all these cases are to be worked out at market rates by the contractor
along with proper analysis.

For checking the reasonableness of rates submitted by the Contractor for

deviation by way of Extra item, Substituted items and Deviated Quantities
beyond permissible limit for which rates exist in the contract, the Market Rate
Analysis will be on similar lines as adopted in the justification of tender as per
para 4.9. The amount of variation including Extra/Substituted/deviated items over
Contact Value should be got approved from Competent Authority as per SOP

17.5 RATES FOR DEVIATION (EXTRA / SUBSTITUTED/ DEVIATED QUANTITIES)

ITEMS ALLOWING PROFITS & OVERHEADS ON STIPULATED MATERIALS
SUPPLIED TO THE CONTRACTOR
Where materials are supplied by RITES free or at fixed rates, 5% of Cost of such
material may be added as profit and over heads, while analysing rates for such
items. The percentage represents the following charges:

i) Office Expenditure of the contractor

ii) Storage of materials
iii) Handling expenses and other incidental charges
The percentage does not include transport charges

17.6 MEASUREMENTS FOR INADMISSIBLE ITEMS

In case of items which are claimed by the contractor but are not admissible
according to RITES, measurements should be taken and recorded in the site

117
 register for record purposes only under the signature of RITES official concerned
and without prejudice so that in case it is subsequently decided to admit the
contractor’s claims, there should be no difficulty in determining the quantities of
such work done.

17.7 DEVIATIONS IN QUANTITIES OF BOQ ITEMS

17.7.1 Deviation Limits (D.L.) for all items will be indicated in Schedule ‘F’ of Contract
Agreement.

Following DLs are recommended to be stipulated in Schedule F.

i) For Non Foundation Items Plus 25%; Minus No limit
ii) For Foundation Items Plus 100%; Minus No limit
Note : For item of Earthwork individual classification quantity can vary to any extent.
But overall Deviation Limits will be as above.

17.8 PLACING OF REPEAT ORDERS

Sometimes, while a works/services/supplies contract is operational, the clients

desire some additional works/services/supplies to be provided. These additional
works/services/supplies may or may not be a part of the original
work/service/supply contract with the client. The clients generally expect RITES
to provide the additional work/service/supply without any delay. Under the
circumstances, one way to undertake the additional work/service/supply without
delay, is to get the same done within the existing contract under deviation
clause in case the additional work/service/supply relates to the same contract
because our contracts have provision for deviation in BOQ quantities. However,
in case the client wants some additional works/services/supplies to be urgently
undertaken under a separate sanction which may not be related to the original
on-going contract with the client, such works/services/supplies may be
undertaken through a `Repeat Order’ to an existing contractor/consultant /
supplier. In this connection, the following guidelines should be followed.

i. Repeat Order may be given to an existing contractor/consultant/supplier

for undertaking additional work/service/supply if the client desires in
writing for urgently taking up such additional work/service/supply which is
covered under a separate sanction.

ii. Repeat Orders may be placed on the same party, with finance
concurrence, on the same rates, terms and conditions as stipulated in
the original contract. No repeat orders are permitted in case the original
contract is entered into on the basis of a single tender.

iii. The date of Repeat Order will not be more than three months after the
completion of the earlier order.

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iv. The SBU Head should satisfy himself that there has been no downward
trend in prices and should record a certificate to this effect.

v. Repeat order shall not be placed more than once.

vi. If the Price Variation Clause is applicable in the original contract, the
prices of items in the Repeat Order will be adjusted by considering as if
the work/service/supply covered under the Repeat Order is a part of the
original contract. Similarly, if the original contract stipulates that reduced
rates will be payable for increase in BOQ quantities beyond certain
limits, the prices of items in the Repeat Order will be adjusted by
considering as if the work/service/supply covered under the Repeat
Order is a part of the original contract.

vii. The award value of Repeat Order shall not exceed 50% of the original
contract or Rs. Five Crores, whichever is less, in case of works/supplies
contracts and 50% of the original contract or Rs. Fifty Lacs, whichever is
less, in case of services contracts in each case.

viii. The competent authority for award of Repeat Order shall be the same as
the authority which accepted the original tender.

ix. In case of Works Contracts, repeat orders can be placed only when the
additional work is to be carried out at the same site as the original work
or at a site in close vicinity. This restriction does not apply to
services/supplies contracts.

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 SECTION 18

FAIR WAGE CLAUSE AND CONTRACTOR’S

LABOUR REGULATIONS

18.1 PROVISIONS OF ACT

As required under Section 2 (i) (g) of the Contract Labour (Regulation and
Abolition) Act, 1970, Principal Employer has to be identified as he will be held
accountable for compliance with the provisions of the Act. In CPWD, the Ministry
concerned has declared every Divisional officer (Executive Engineer etc) or any
Sub-Divisional Officer in charge of an independent Sub Division as a Principal
Employer. Since RITES carries out works on behalf of Clients, as far as possible
RITES should persuade the Clients to register themselves as Principal Employer.
A provision to this effect has been made in Article 10.5 of the Agreement
between RITES and Client (Annexure 2.1) In case the client does not agree to
register himself as the Principal Employer, it will be necessary for RITES to
register itself as the Principal Employer. In pursuance of Section 12 of the
Contract Labour (Regulation & Abolition) Act, 1970 no Contractor to whom the
said Act applies, shall undertake or execute any work through contract labour
except under and in accordance with a license issued in that behalf by the
Licensing Officer.

In all the contracts awarded by RITES, where RITES is registered as the

Principal Employer for the labour engaged by the contractor it becomes the duty
of Project Manager of RITES to ensure that the Contractor Complies with the
provisions of Contract Labour (R&A) Act, 1970 and Rules made there under.

18.1.1 The Contract Labour (Regulation and Abolition) Act, 1970 applies to every
establishment in which 20 or more workers are employed or were employed on
any day of the preceding 12 months as contract labour and to every contractor
who employs or who employed on any day of the preceding 12 months, 20 or
more workmen. The Act also provides for registration of establishment and
Licensing of Contractors. Accordingly, every Principal Employer is to make an
application to the Registering Officer for registration of the establishment.
Section 9 of the Act lays down that no Principal Employer of an establishment,
required to be registered under Section 7 but which has not been registered
within the prescribed time limit, shall employ contract labour after the date.

18.1.2 It has been clarified by the Ministry of Labour that the 20 contract labourers can
be through one or more contractors and it does not matter that a single
contractor may not be employing 20 or more contract workers. It is sufficient that
a total of 20 contract workers (through contractors) are working in an
establishment of Principal Employer.

18.1.3 If a contractor employs 20 or more workmen on any day in the preceding year,
the contractor is legally bound to take licence from the Licensing Officer
concerned.
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18.1.4 The fees to be paid for the grant of Certificate of registration shall be as
prescribed under the Act. RITES will have the responsibility to ensure that the
Contractors comply with the legal requirements mentioned above.

18.2 ACTS / OMISSIONS

18.2.1 The Appropriate authority in terms of Section 6(ii) of the RITES’ Contractors’
Labour Regulations to approve the list of acts and omissions for which fines are
liable to be imposed is the “Chief Labour Commissioner”.

18.2.2 The list of Acts and Omissions for which fines can be imposed on workers by
contractors is given in General Conditions of Contract under Proforma of
Registers forming part of RITES Contractors Labour Regulations.

18.3 FAIR WAGES

18.3.1 ‘Fair Wages’ under RITES Contractors’ Labour Regulations means wages fixed
and notified under the provisions of the Minimum Wages Act, 1948 from time to
time. The Fair Wages Clause is applicable only to those employees whose
wages do not exceed the limit prescribed in the Act.

18.3.2 It should be the duty of the Labour Officer to make enquiries about non-payment
of wages for preventing claims of Contractor’s labour falling in arrears. For this
purpose, it is essential that Labour Officer should make frequent site inspections
as this is the only way of contacting labour in the field and thus preventing wages
falling in arrears. Any case of accumulation of arrears should be specifically
brought to the notice of Engineer in Charge.

18.3.3 The responsibility of identifications of labour rests with the Labour Officer. He will,
however, be afforded all assistance by the Site Engineers.

18.3.4 The contractor shall also abide by the provisions of the Child Labour (Prohibition
and Regulation) Act, 1986. No labour below the age specified in the Act shall be
employed on the work.

18.3.5 Normally working hours of an employee should not exceed 9 hours a day. The
working day shall be so arranged that inclusive of interval of rest, if any, it shall
not spread over more than 12 hours a day.

18.3.6 When a worker is made to work for more than 9 hours on any day or for more
than 48 hours in any week he shall be paid overtime for the extra hours put in by
him at double the ordinary rate.

18.4 RESPONSIBILITIES OF FIELD OFFICERS

18.4.1 In order to ensure regular payment of wages to the labour by the Contractor, the
Fair Wages Clause 19B (iv) provides that the Engineer-in-Charge shall have
121
 the right to deduct from the money due to the contractor any sum required or
estimated to be required for making good the loss suffered by the workers by
way of non-payment of wages or of deductions from his or their wages which are
not justified by the terms of the contract or non observance of the Labour
Regulations. In view of this provision and other provisions of Fair Wage Clause
as embodied in the agreement, it is incumbent upon the Site Engineer to see that
the labour employed by the Contractor is paid regularly and no arrears are
allowed to accumulate on this account. For this purpose, he should see that the
returns prescribed are duly submitted by the contractor and he should scrutinize
them with a view to see that the contractor is duly fulfilling the conditions of the
contract.

18.4.2 In case a Site Engineer finds it difficult to take action on the advice tendered by
the Labour Officer for any reasons, the matter should immediately be reported to
the Engineer in Charge through Project Manager / Project Coordinator and
directions obtained from him.

18.4.3 In terms of provisions under Clause 45 of the Contract in Standard Tender

Documents, Security Deposit of the work shall not be refunded till the Contractor
produces a clearance certificate from the Labour Officer. As soon as the work is
virtually complete the contractor shall apply for the clearance certificate to the
Labour Officer under intimation to the Engineer in Charge. The Engineer in
Charge, on receipt of the said communication, shall write to the Labour Officer to
intimate if any complaint is pending against the contractor in respect of the work.
If no complaint is pending on record till after 3 months after completion of the
work and / or no communication is received from the Labour Officer to this effect
till six months after the date of completion, it will be deemed to have received the
clearance certificate and the Security Deposit will be released, if otherwise due.

18.5 RESPONSIBILITIES OF CONTRACTOR

18.5.1 The Contractor shall comply with all the provisions of Minimum Wages Act, 1948,
Contract Labour (Regulation and Abolition) Act, 1970 and rules framed there
under, Building and other Construction Workers (Regulation of Employment &
Conditions of Service) Act, 1996, Building and other Construction Workers’
Welfare Cess Act, 1996 and other labour laws affecting contract labour that may
be brought into force from time to time.

18.5.2 It shall be the duty of the Contractor to ensure the disbursement of the wages in
the presence of the Site Engineer or any other authorised representative of the
Engineer in Charge who will be required to be present at the place and time of
disbursement of wages by the Contractor to workmen.

18.5.3 The Contractor shall obtain from the Site Engineer or any other authorized
representative of the Engineer in Charge, as the case may be, a certificate under
his signature at the end of the entry in the prescribed “Register of Wages” or the
“Wage -cum- Muster Roll” as the case may be, in the following form:-

122
 “Certified that the amount shown in column No. ________ has been paid to the
workman concerned in my presence on ___ at _____

18.6 DEDUCTIONS TO BE MADE FROM CONTRACTOR’S BILLS

18.6.1 The Labour Officer or other persons authorized as aforesaid shall submit a report
of result of his investigation or enquiry to the Engineer in Charge concerned
indicating the extent, if any, to which the default has been committed with a note
that necessary deductions from the contractor’s bill be made and the wages and
other dues be paid to the labourers under Clause 13 of these regulations. Actual
payment to labourers will be made by the Site Engineer after the Engineer in
Charge has given his decision on such appeal.

18.6.2 The Site Engineer shall arrange payments to the labour concerned within 45
days from the receipt of the report from the Labour Officer or the Engineer in
Charge as the case may be.

18.6.3 The Contractors working for RITES are required to pay to the labour employed
by them either directly or through sub-contractors, Fair Wage as defined in
RITES’ Contractor’s Labour Regulations.

18.6.4 No deduction on account of Jamadar’s commission charges etc. is to be made

from the wages of labourers.

18.7 PROCEDURE IN CASE OF ACCIDENTS TO CONTRACT LABOUR

18.7.1 In case of fatal accidents or accidents involving permanent total disability, the
accident must invariably be reported to the Engineer in Charge, with a copy to
the Labour Officer, immediately after the accident.

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 SECTION 19

ARBITRATION AND LITIGATION

19.1 APPLICATION OF ARBITRATION CLAUSE 25 OF STANDARD CONTRACT

FORM

19.1.1 Clause 25 of the RITES STANDARD CONTRACT Form provides for

appointment of an Arbitrator in case of disputes relating to certain matters,
specified therein arising at any stage, whatever, between the parties. This,
however, does not apply to action taken under clauses where the decision of the
specified officer is final and binding on the Contractor as well as those stipulated
as “Excepted Matters”.

19.1.2 The Contractor cannot have recourse to a court of law for the redress of his
grievances, unless he has exhausted the channel of arbitration as envisaged in
relevant arbitration clause. Even if the contractor goes to court, the Engineer in
Charge should take a plea that the contractor being a signatory to the agreement
containing arbitration clause, any dispute arising out of or in any way connected
with the execution of work has first to be settled by reference to arbitration.

19.1.3 RITES staff having to deal with Arbitration cases as Claimant or Respondent or
as an Arbitrator, under Arbitration and Conciliation Act, 1996 are, advised to
familiarize themselves with the contents of the Booklet. “Guidelines for
Arbitration under Arbitration and Conciliation Act, 1996” issued by RITES in June
2007.

19.2 APPLICATION FOR APPOINTMENT OF ARBITRATOR

19.2.1 A standard application form for seeking appointment of arbitrator has been
evolved. Contractors seeking arbitration should apply in this form Annexure
19.1.

19.2.2 The application form in triplicate duly filled in shall be submitted by the Contractor
to the Appointing Authority specified in Schedule F through the Engineer in
Charge. All the three copies of the application form shall be accompanied by a
statement of claims in the matter indicated in the application form.

19.2.3 The party invoking arbitration clause should give information enough to justify
existence of a dispute. For this purpose the party has to give details about the
demand having been made and its refusal by the other party. It is held by Courts
of law that a “dispute” implies an assertion of right by one party and repudiation
thereof by the other. Existence of a dispute is a condition precedent to arbitration.
If there is no existence of dispute, there cannot be any right to demand
arbitration.

19.2.4 In view of the above, Divisional Head / Director (RITES), before appointing an
arbitrator, should ensure that existence of dispute (s) has been established. For

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 this purpose the party invoking arbitration clause should be asked to produce
documentary evidence of its claims having been duly lodged with the other party
within the stipulated time and refusal by the other party thereto to accede to
them. It will be observed from Clause 25 of Contract that the Contractor has to
first raise his claims with the Engineer-in-charge and if not satisfied with his
response, should refer the disputes to the Appellate Authority. It is only if the
contractor is not satisfied with the decisions of the Appellate Authority that the
Contractor can refer to the Appointing Authority for appointment of the Arbitrator.

19.3 PREPARATION FOR ARBITRATION CASES

19.3.1 The following steps should be taken by the officer nominated by the Engineer in
Charge with a view to properly defend the Arbitration cases:

i) As soon as a Contractor applies for arbitration, Site Engineer should

prepare a detailed history sheet containing the data regarding estimate,
designs and drawings, NIT, agreement, extra and substituted items, items
accepted at reduced rates, extension of time / notices issued under clause
3 etc and send a copy to the Engineer in Charge.
ii) List out important letters in respect of the issues raised by the contractor
and the important notices by as well as to the contractor and place these
originals in a separate file. In the routine file, true copies of these
documents may be placed.
iii) Keep original agreements, plans, designs including the calculations for
these, if available, details of measurements and analysis of rates attached
to the technically sanctioned estimates, all the MBs connected with the
work, Hindrance Register, Site Order Book, Cement Register,
Reinforcement Registers etc. in safe custody of the Site Engineer along
with originals listed in para (ii).
iv) The measurement books should be closed.
v) All the files connected with the work should be properly page-numbered
stitched and sealed and kept by the Site Engineer along with the above
record.
vi) If there are important situations or circumstances, the details of which are
not available on the file but only known to the executive staff, their signed
statements regarding the factual information should be obtained and kept
on record, as after a lapse of time, they may not be available for personal
discussions or they may be unable to recall past events.
vii) The Site Engineer may call the executive staff in charge of the work from
their new stations for any information that he may need to collect by
personal discussions, but only under orders from the Engineer in Charge
concerned.
19.3.2 If the work has been completed, the final bill should be prepared as early as
possible, in any case before the submissions are made to the arbitrator. The
Engineer in Charge / Site Engineer should ensure that the bills are finalized
immediately, if not already done.

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19.3.3 In cases of claims against RITES, the Engineer-in-charge shall inform the
authority with whom Extra / Substituted / Deviations / Reduced Rate items are
pending, about the Arbitration case with a request to decide on the items
urgently. The concerned Authority should ensure that all such pending items are
finalized before Counter Statement of Facts of RITES is submitted.

19.3.4 A detailed note on the facts of the case dealing with each and every item of the
claims and / or counter claims should be prepared by the Site Engineer along
with reference to various relevant documents supporting RITES case or negating
the Contractor’s claim.

19.4 PROCESSING OF CONTRACTOR’S APPLICATION

19.4.1 The Site Engineer shall send one copy of the application of contractor to
Engineer in Charge for forwarding to the Competent RITES official (Ref. SOP)
with the under noted information, without waiting for a reference from the
Engineer in Charge, within 7 days from the date of receipt of Contractor’s
application in his office. Engineer in Charge should send his report to SBU
Head / Divisional Head / Director without delay.

a) An attested copy of relevant arbitration clause.

b) A note regarding verification of the factual data furnished by the Contractor
in the application form.
c) Brief comments on each claim of the Contractor. While giving such
comments, the admissibility of the claims in the light of arbitration clause,
existence of dispute and provisions under Limitation Act, should be kept in
view and commented upon.
d) Statement of Counter Claims of RITES, if any. However, if counter claims
are not readily enlisted or available, comments on contractor’s claims
should not be delayed. Counter Claims should be supported by full
details.
19.5 APPOINTMENT OF ARBITRATOR

19.5.1 The Standard form of appointment letter at Annexure 19.2 is to be used for
appointing an Arbitrator by the Authority.

19.5.2 The person thus appointed shall be the sole Arbitrator and his award shall be
final and binding on all parties to the contract, unless it is set aside by the Court.

19.5.3 Whenever a notice for appointment of an arbitrator is received from a Contractor

in terms of Clause 25 of Contract, the Authority competent to appoint the
Arbitrator in terms of contract should process the case so as to appoint an
arbitrator within 30 days from the receipt of such a notice. The time limit of 30
days for appointment of arbitrator should be strictly adhered to, failing which the
Appointing Authority may lose its right to appoint the arbitrator.

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19.5.4 In cases, where no agreement exists or where no clause exists in an agreement
for referring the matter of dispute to the arbitration by a person to be appointed
by Divisional Head / Director in terms of SOP Item 9.2 the disputes should not
be referred to arbitration by mutual consent and no agreement should be drawn
up for this purpose.

19.5.5 The authority of an appointed arbitrator does not become revocable except with
the order of the court. It shall not be revocable by the death of any party or
parties to the contract.

19.5.6 The draft letter for appointment of new arbitrator due to transfer or vacation of
office by the old arbitrator shall be as per Annexure 19.3.

19.6 ACTION SUBSEQUENT TO APPOINTMENT OF ARBITRATOR

19.6.1 When the Arbitrator enters into reference and writes to the parties to the contract
to file the statement of facts and counter statement of facts before him, the Site
Engineer should take prompt action to prepare the defence duly supported by
adequate documentary evidence and witnesses and arrange for submission to
the Project Co-ordinator who shall finalise the defence statement with the
approval of the Engineer in Charge and send to the Arbitrator by the date
specified by him.

19.6.2 Site Engineers should deal with submission of Counter Statement through
Project Coordinator / Engineer in Charge with utmost urgency and priority within
time limit laid down by the Arbitrator.

19.6.3 The Engineer in Charge should invariably follow the time limit set by the
Arbitrator. However, in cases where they foresee some unavoidable delay in
adhering to the time limit they should explain the position to the Arbitrator and
obtain extension of time before the expiry of the stipulated date.

19.6.4 a) It should be noted that any plea / objection with reference to any requirement
under the arbitration agreement, jurisdiction or any other aspect not taken
before the arbitral tribunal cannot be taken before the Court of Law and a
party shall be deemed to have waived its right to so object. In this regard,
provisions under Section 4 of the Arbitration and Conciliation Act, 1996 are
reproduced below.

“ A party who knows that -

a) any provision of this part from which the parties may derogate or
b) any requirement under the arbitration agreement,
has not been complied with and yet proceeds with the arbitration without
stating the objection to such non-compliance without undue delay or if a time
limit is provided for stating that objection, within that period, shall be deemed
to have waived his right to so object.”

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 Therefore, all the possible pleas / objections should invariably be raised before
the arbitral tribunal while defending the case well within the time.
b) In case of time barred claims, issuance of a No-claim Certificate by
Contractor, acceptance and receipt of the final bill / payment by the
Contractor and/or disputes / claims not raised in accordance with the Contract
stipulations, objections/ plea that the arbitral tribunal does not have the
jurisdiction should invariably be raised by RITES Officer concerned at the very
beginning of the arbitral proceedings (i.e.) at the time of submission of the
Counter Statement / Statement of defence and also in the first hearing. In
case the Arbitral Tribunal is exceeding the scope of its authority / reference,
objection/ plea should be raised as soon as any matter / claim beyond the
scope of authority / reference is raised during the arbitral proceedings.
Provision under Section 14 of the Arbitration and Conciliation Act, 1996 may
also be referred to in this regard.

19.6.5 In case of arbitration proceeding where RITES have signed the Works Contract
with the Contractor for and on behalf of the Employer (Client), it should be made
amply clear to the arbitrator in the arbitral proceedings that RITES is only the
custodian of deposit funds provided by the Principal Employer / Client / owner for
disbursement of payment to Contractors from time to time and under no
circumstances RITES can and will be able to pay the arbitration award, if any, to
the Contractor / Claimant on their own.

19.6.6 There is need for special care in fighting the arbitration cases on behalf of RITES
since once the Arbitrator gives his award, it will be very difficult to get it set aside
in a Court of Law except in circumstances listed in sub sections (2) and (3) of
Section 34 of Arbitration and Conciliation Act, 1996. These sub sections
basically refer to items which do not have a bearing on the merits of the case
under Arbitration. As far as the merits of the Arbitration Award are concerned,
following is the legal position contained in a judgement of the Supreme Court.

“An Arbitral Tribunal is a domestic Tribunal of the choice of the parties. Its
decisions do not admit of interference by Civil Courts except on very special
grounds. The Arbitrator’s power is not taken away or the efficacy and finality of
his award whittled down by reason of any error in the Award. An erroneous
decision of the Arbitrator is as much binding as a correct one. Courts do not sit in
judgements over the Awards as if in appeal. An Award can be interfered with
when it is vitiated by misconduct or suffers from errors of law manifest on the
face of the record. It is no misconduct on the part of the Arbitrator to come to an
erroneous decision whether his error is one of law or fact. There is no appeal
from his verdict. The Court cannot review his Award and correct any mistake in
his adjudication, unless illegality of the award is apparent on its face”.

Provisions contained in Para 19.13.1 below may also be seen for better
appreciation of this matter.

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19.7 ENGAGEMENT OF LAWYERS

19.7.1 Where it is considered desirable to avail of the services of a local lawyer to

conduct a case on behalf of RITES, fees may be paid keeping in mind the
powers under SOP. It is desirable that a lump sum fee may be fixed with
payment in installments such as after filing petition / reply and after final disposal
of the case instead of breaking it into elements such as for legal advice on
Counter Statement, for appearing in each hearing etc.

19.7.2 However, the mere fact that legal counsel has not been able to attend before the
arbitrator for a particular date of hearing should not ordinarily call for adjournment
of whole case. In such circumstances, the arbitrator may be requested to deal
with the claims involving technical and non legal points. For hearing on legal
issues, the Arbitrator may be requested to adjourn the case to another date.

19.7.3 In all cases, where the value of the claims is Rs.Ten lacs or more and where
legal matters are involved, a lawyer may be engaged to defend the cases with
the help of the Engineer in Charge concerned before the Arbitrator. In all cases,
which are defended by the lawyer, the Engineer in Charge should be in touch
with him from the very early stage and should ensure that the dates and timings
for hearings are fixed by the Arbitrators to suit the availability of the lawyer. The
Engineer in Charge concerned should make it a point to contact the counsel and
discuss the arbitration case with relevant documents. A copy of the detailed note
made out by the Engineer along with copies of the documents referred to therein
should also be forwarded to the lawyer with a draft counter statement / counter
claims. Engineer in Charge concerned should decide whether a particular
arbitration case be defended by himself or by the Project Co-ordinator/ Engineer
and with or without the assistance of the lawyer.

19.7.4 All the documentary evidence in the case has to be examined carefully and
placed before the Arbitrator as the situation and circumstances in each hearing
demand, stressing the points of the RITES to counter-act the Contractor’s claims.

19.7.5 Where the Contractor’s claims are based on entries in the measurement books
recorded by RITES officer who may have in rare cases colluded with the
Contractor and made false entries, it is necessary that sufficient evidence
contesting the correctness or veracity of the entries in the Measurement Books
should be placed before the Arbitrator in support of the contention of RITES and
special care should be taken with regard to selection of the witnesses and
evidence to be placed before the Arbitrator.

19.8 PRODUCTION OF OFFICIAL DOCUMENTS BEFORE COURT /

ARBITRATORS

19.8.1 In the course of legal / arbitration proceedings, the Court /Arbitrators may either
themselves or at the instance of the opposite party, require production of official
records, e.g. files, correspondence, register or the other documents which are
supposed to have a bearing upon the case. While the Court / Arbitrator may
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 require production before them of any document relevant to the case, it must be
checked with Legal experts if in terms of Sections 123 &124 of the Indian
Evidence Act, RITES can claim privilege for not producing documents, the
disclosure of which may be considered detrimental to public interest. If legal
advice agrees, such privilege may be claimed in respect of all “unpublished
records” of RITES (i.e. documents which have not come to the knowledge of the
other party). For this purpose “Notes Portion” of a file and all communications
and letters other than those emanating from or sent to the party (original or
copies) should be treated as “unpublished” records of RITES in respect of which
privilege, as aforesaid, can be claimed. This will be done by producing before the
court / arbitrators declaration signed by the Competent Authority of RITES stating
that documents referred in the declaration contain unpublished official
information and that the privilege in respect of the same is being claimed as their
disclosure would be detrimental to the public interest.

19.8.2 RITES officer may appear as a witness, if summoned by the Arbitrator at the
request of a contractor also. He is expected to give true and correct facts of the
case. Deterrent action should be taken against the officials concerned, if they are
found responsible for giving wrong evidence or concealing material facts in an
arbitration case.

19.9 DEFAULT OF A PARTY

If the claimant fails to communicate his statement of facts within the time
determined by the Arbitrator, without showing sufficient cause, the Arbitrator can
terminate the proceedings. If the respondent fails to communicate his counter
statement of facts within the time determined by the Arbitrator, the Arbitrator can
continue the proceedings without treating the failure in itself as an admission of
allegations by the claimant. In case a party fails to appear at hearing or fails to
produce documentary evidence, the Arbitrator may continue the proceedings ex-
parte and make the award based on the evidence before him.
19.10 MAKING OF AWARD

19.10.1Whenever an award is made by an Arbitrator appointed otherwise than through a

court and if under the award, some money is payable to RITES by the
Contractor, the Engineer in Charge should first supply to the Arbitrator, stamp
papers of appropriate value, as may be asked for by the Arbitrator according to
amount of the award, as per the rules of the State, where the award is likely to be
made by the Arbitrator and request the Arbitrator to write the award on the stamp
papers (Non-judicial) so supplied to him.

19.10.2 It is open to objection in a court of law to write the award on ordinary paper and
afterwards rewrite it on the stamp papers. The award should therefore, always be
obtained on the stamp papers. It is for the Arbitrator to say as to which party
should supply the stamp papers in such cases.

19.10.3As per the provision in the arbitration clause, in all cases the arbitrator shall have
to give the reasons for the award, against each claim.
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19.11 ACCEPTANCE OF AWARD
19.11.1 Schedule of Powers shows the powers delegated for acceptance of arbitration
awards.

19.11.2 Since, for filing objections against an award, the period of limitation prescribed
under the Arbitration and Conciliation Act, 1996 is three months from the date of
receipt of award by the party, the decision regarding acceptance of an
arbitration award should be taken by the competent authority on priority basis.

19.11.3 The procedure followed in scrutinizing the awards consists of examination on

merits from factual, technical and legal points of view. The Engineer in Charge
should, within 7 days of receipt of arbitration award, send a self- contained
reference together with a copy of the agreement, a copy each of the statement
and counter statement of facts and claims, a copy of the award, financial
statement and his comments to the Competent Authority for his decision.

19.11.4 Payment should be made to the contractor after obtaining an undertaking from
the contractor for acceptance of the award in full and final settlement.
Immediate payment or payment within the grace period stipulated by the
Arbitrator ensures that RITES/Employer is absolved of the liability of payment of
interest on the amount awarded. The undertaking is to be obtained from the
contractor on stamp paper.

19.11.5 Immediately on taking a decision to accept the award by the Competent

Authority, a communication as per Annexure 19.4 should be issued to the
contractor intimating the fact of such acceptance and offering of payment in
terms of the award subject to the contractor communicating his acceptance of
the award within the specified time. Payment so made would bar the contractor
from suing again in respect of the same dispute.

19.11.6 Engineer in Charge should make payment to the Contractor in terms of the
award within a period of 30 days from the receipt of acceptance of award from
the Competent Authority and intimate the actual date of payment of award to it.
Payment should be made within the time limit stipulated by the Arbitrator in his
Award.

19.11.7The payments made to the Contractors on the arbitration awards made by the
Arbitrator or by Court are to be taken as part of the cost of work normally
payable by the client, as per standard provisions in the Agreement between
RITES and the Client which should be referred to for details.

19.11.8 The arbitration award means the total award including the interest awarded by
the arbitrator. The amount of such interest is to be worked out upto the date
specified in the award. Therefore, the amount of the interest has to be taken
into consideration while deciding the authority competent to accept the award.
However, in case no fixed date is specified in the award and the interest is to be
paid upto the date of actual payment of award amount to the contractor, the
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 likely date of such payment may be taken into consideration. There may be a
situation that after acceptance of the award by the competent authority, the
actual payment to the contractor gets delayed beyond the anticipated date due
to some unavoidable circumstances and the amount of interest increases to an
extent that the total amount of award exceeds the power of acceptance of the
authority that accepted the award. In such cases, the payment may be made to
the contractor as early as possible and the case may be submitted to the next
higher authority, competent to accept the increased amount of award, for ex-
post facto approval.

19.11.9 In cases where the decision taken is to challenge the award, the award amount
should not be deposited in the Court unless otherwise directed by the Court.
This is in view of the fact that the liability to pay further interest does not cease
even if the award amount is deposited in Court.

19.11.10 Whenever amount of an arbitration award is deposited in court; intimation to

this effect should simultaneously be given to the contractor.

19.12 REVIEW OF ARBITRATION AWARD

19.12.1 In all arbitration cases where awards of the Arbitrators go against RITES
(whether by upholding the claims of the contractors or by rejecting the counter
claims of RITES), detailed reasons and lapses, if any, on the part of concerned
officials due to which the awards have gone against RITES should be advised
to Director (Projects) by the SBU concerned and should be gone into in detail
by the official nominated by Director (Projects). The official should send his
recommendations to Director (Projects) on the issue of fixing of responsibility for
taking action against the officers, wherever necessary and on any modifications
required to be made in the Standard format of Tender Documents as well on
the need for issue of instructions to SBU Heads to avoid recurrence of similar
lapses in future.

19.13 SETTING ASIDE OF AWARD

19.13.1 The question of challenging the arbitral award in a court of law should be
considered very carefully. Under Section 34 of Arbitration and Conciliation Act,
1996, there are very few grounds available to challenge the arbitral award as
follows:-

a) The party making the application furnishes proof that -

i) a party was under some incapacity, or
ii) the arbitration agreement is not valid under the law to which the parties
have subjected it or, failing any indication thereon, under the law for the
time being in force, or
iii) the party making the application was not given proper notice of the
appointment of an arbitrator or of the arbitral proceedings or was
otherwise unable to present his case, or

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 iv) the arbitral award deals with a dispute not contemplated by or not falling
within the terms of submission to arbitration, or it contains decisions on
matters beyond the scope of submission to arbitration,

provided that, if the decisions on matters submitted to arbitration can be

separated from those not submitted, only that part of the arbitral award
which contains decisions on matters not submitted to arbitration may be
set aside; or

v) the composition of the arbitral tribunal or arbitral procedure was not in

accordance with the agreement of the parties, unless such agreement
was in conflict with a provision of Part I of the Act from which the parties
cannot derogate, or, failing such agreement, was not in accordance with
Part I of the Act, or

b) The court finds that -

i) the subject matter of the dispute is not capable of settlement by
arbitration under the law for the time being in force, or

ii) the arbitral award is in conflict with the public policy of India.

19.13.2 Since almost all the awards are interest bearing, the question of depositing the
awarded amount in the court should invariably be examined by the Competent
Authority (Refer SOP) to save payment of interest. Engineer-in-Charge should
give specific recommendations in this respect while recommending challenging
of awards in the case of interest bearing awards.

19.13.3 An application for setting aside an arbitral award has to be made within three
months from the date on which the party making that application had received
that arbitral award or from the date on which his application for correction in or
interpretation of arbitral award in terms of Section 33 of the Arbitration and
Conciliation Act, 1996 was disposed of by the arbitral tribunal / arbitrator.
Under section 33, a party can make an application for correction or
interpretation within thirty days of receipt of the arbitral award. In terms of
Section 34 (3) of the Arbitration & Conciliation Act, 1996, even if the Court is
satisfied that the Applicant was prevented by sufficient cause from making
application within the said period of 3 months the Court may entertain the
application within a period of 30 days only but not thereafter.

19.13.4 If the award is found to be in order from all aspects, it need not and should not
be challenged. Legal proprieties and prudence demand that such matters
should be examined by a competent lawyer, if the Competent Authority feels
that there is a strong case for challenging the Award. This reference for legal
advice should be taken with least delay.

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19.14 PERIOD OF LIMITATION

19.14.1 It is a term of the RITES Contract in the relevant arbitration clause (Clause 25)
that if the contractor does not make any demand for arbitration in respect of any
claim (s) in writing within 120 days of receiving intimation from RITES that the
final bill is ready for payment, the claim of the contractor(s) will be deemed to
have been waived and absolutely barred from the liabilities under the contract in
respect of these claims. In spite of above specific provision in the arbitration
clause, the Competent Authority should not withhold appointment of arbitrator
on the ground that the request was received after the expiry of the specific
period mentioned in the relevant arbitration clause of the agreement, but should
appoint the arbitrator clarifying in the letter of appointment of the arbitrator that
the reference is without prejudice to the defence that may be raised by RITES
regarding the tenability of the claim on all necessary and available grounds
including those of Limitation and the parties to the agreement will be free to
raise the question of limitation before the Arbitrator. While examining the
request for arbitration from a contractor or supplier or any claim in a litigation
case, the Engineer-in-Charge should examine whether the claim of the
contractor is time barred, in accordance with the provisions of the Limitation Act
1963. This point should be taken into consideration in preparing the defence.

19.14.2 The question as to whether any dispute had become time barred will itself be a
dispute which can only be settled by arbitration. The stage of reference is not
concerned with the question whether the claim of the party to the arbitration
agreement is barred by the Law of Limitation and that question falls within the
purview of the arbitrator to whom the dispute is referred. The reference of the
disputes, even though seemingly time barred, would therefore be made to the
arbitrator. The parties would be free to agitate the question of Limitation before
the arbitrator, who would no doubt consider this point and give his award.
However, it can be clarified in the letter of appointment of the arbitrator that the
reference is without prejudice to the defence that may be raised by RITES
regarding the tenability of the claims on all necessary and available grounds
including those on limitation.

19.14.3 In the case of any appeal before the Division Bench, the appeal is to be filed
within thirty days of pronouncement of judgement by the High Court. If for any
reason, delay occurs, the Court has to be approached for condo nation of delay
in filing the appeal, and RITES has to explain the day to day delay, to the
satisfaction of the Court. Every care should therefore, be taken in handling such
arbitration / court cases and it should be ensured that timely and prompt action
is taken within the period of limitation.

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19.14.4 There can be cases where RITES may have to file Arbitration claims against the
Client and in rare cases against the Contractor. It has to be ensured that in
such cases, the Arbitration Clause is invoked before the period of Limitation
expires. The period of limitation commences from the date the cause of action
for the claim arises. For this purpose, the date when cause of action has
arisen is when the amount has been claimed by RITES in writing from the other
Party. It may be mentioned that such a claim letter should be issued by RITES
within the period, if any, stipulated in the contract with the other Party. Issue of
formal letter to the other Party for appointment of Arbitrator / filing a suit in the
Court of Law where there is no Arbitration clause in the Agreement with the
other Party, should be done by RITES within the period of Limitation. On works
Contracts, RITES not falling under the definition of a Government Department,
the Period of Limitation is three years. Thus, if the other Party, receiving letter
of claim from RITES goes on corresponding with RITES without giving any
specific acknowledgement by it’s Competent Authority accepting its liability to
pay the claimed amount, RITES should invoke the Arbitration clause by asking
for the claims to be referred for Arbitration or file a suit, as is applicable within
three years from the date RITES sent the claim letter. In case, the other Party’
has categorically acknowledged its liability in writing, a fresh period of limitation
will start from the date of such acknowledgement by the other Party. It may be
noted that for Government Department, the period of Limitation is 30 years and
hence if the Client is a Government Department, it can invoke the provisions of
Arbitration clause / file a suit against RITES within a limitation period of 30
years, whereas RITES will have a Limitation Period of only 3 years to pursue its
claim against the Government Department. On the Period of Limitation, there
can be different legal views as to when it commences and when it ends and
hence, where necessary, RITES should take legal advice.

19.15 COURT CASES

19.15.1 Before any action is taken in a court of law against some party for amounts due
to RITES, a reliable report of its financial standing should be obtained and
simultaneously the expenditure likely to be incurred to recover this amount
should be carefully estimated so that unnecessary expenditure on litigation may
be avoided, where there is no reasonable chance of recovering the judgement
debts from the party concerned.

19.15.2 Although it is the primary responsibility of the RITES official at the particular
station where the case has jurisdiction, to ensure proper defence of the case, it
is equally the responsibility of superior officers of RITES to keep constant watch
over the progress of these cases and see that all such cases, at every stage,
are processed properly so that the cases do not go against RITES interests by
default resulting in financial loss etc to RITES.

19.15.3 The SBU Heads should therefore, see that all such cases are reported to the
Executive Director concerned as soon as a suit against RITES is threatened by
any aggrieved party or RITES itself intends to file a suit against a contractor or
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 third party. The first report from the SBU Heads about such cases should give a
brief description of the case and the steps which are being taken or have been
taken for the proper defence or prosecution of the suit. Thereafter, fortnightly
reports on each such case should be sent to the Executive Director detailing the
progress of the case and further action taken or to be taken for its defence or its
successful prosecution.

19.16 JUDGEMENTS IN COURT CASES

The progress of the cases in the Court should be watched closely by the SBU
Heads in charge of the cases. It will be the responsibility of the SBU Head to
send a report to the Executive Director concerned within 48 hours after the
Court has delivered a judgement which is addressed to RITES. It shall also be
his responsibility to apply for and furnish with minimum delay, a copy of the
judgement and all other relevant papers, his own comments and the opinion of
the counsel conducting the case on the advisability of filing an appeal / revision
petition to enable the Executive Director concerned to come to a decision
whether an appeal / revision petition should be filed or not. The appeal /
revision petition should be filed, if it is decided to be filed, within the time limit
laid down by Law.

19.17 LEGAL CHARGES ON CIVIL SUITS / ARBITRATION CASES

19.17.1 The costs and expenses incurred on civil suits / arbitration cases in connection
with the execution of Deposit Works for Clients may be divided into categories
given below:

i) The amount of the claim for which a decree / award is given.

ii) The amount of incidental costs incurred by RITES in connection with the
court / arbitration case.

19.17.2 The decretal award amount of the claim vide item (i) above should be debited in
all cases to the works concerned and the charges referred to the client. As
regards (ii) also the amount should be borne by the Client on whose behalf the
work is undertaken on the ground that the action of RITES was as agent and
taken in the interests of the work.

19.17.3 When, however, it is established that the law suit / arbitration proceeding has
been caused by a deliberate act of an employee of RITES for his personal gain,
the charges should be adjusted by recovery from the individual concerned after
taking legal advice; If it is determined to be a case of organizational failure of
RITES, and the client has reservation in including the Cost of such items as
Cost of Work, the extent to which item (i) and (ii) can be claimed under
“Professional Indemnity Insurance” should be looked into.

19.18 DOCUMENTATION FOR ARBITRATION CASES

19.18.1 In order to enable the Engineer in Charge to put up proper defence of the case,
it is necessary that as and when the incumbents hand over charge of the office /
transfer arbitration cases/ works, they should, unless all the facts and
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 arguments are already explained in the written Counter Statement of Facts,
prepare and place on record a self-contained note giving all the facts of the
case and detailed comments on the claims.

19.18.2 In order to enable speedy disposal of cases, the Engineer incharge should not
ask for adjournment to the extent possible.

19.18.3 The Engineer in Charge should always maintain a separate file on the disputes
that have cropped up on the work during the progress of the work. In case of
his transfer or relinquishing charge due to any reason, he should leave a self
contained note on the file, at the time of his handing over charge, giving full
background of all the disputes that have cropped up to the time of his
incumbency, various developments thereon and the orders passed with due
reference to the connected files. This should form a necessary and essential
feature of all the handing over notes. Such files should be carefully preserved
and become available at a later stage to the Engineer-in-Charge who is
required to defend the case.

19.18.4 The transferred Engineer-in-Charge should make a comprehensive note about

the pending claims of all the contractors for works in progress or completed in
his time except those where counter statement of facts have already been
prepared. The note should indicate the admissibility or otherwise of each claim
and the orders of the competent authority. The note along with attested true
copies of important letters mentioned therein should be handed over to his
successor.

19.18.5 It should be made a rule in the Engineer-in-Charge’s office that all drawings
issued with the NIT and those subsequently followed for execution of works are
properly preserved and kept along with the contract documents. It should be
ensured by the Engineer in Charge that suitable and adequate arrangements
are made in his office regarding preservation of all important documents,
registers etc. Besides others, a list of all such records should be prepared and
kept handy so that correct position of each case may be known at any time to
conduct the case on proper lines.

19.19 DISPOSAL OF OLD RECORDS

Norms for disposal of old records are at ANNEXURE 19.5. If there is any
arbitration or court case, the relevant records should be retained till the final
disposal of arbitration case / court cases including appeals at various levels
subject to minimum period stipulated in Annexure 19.5.

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 SECTION 20

RECORDS TO BE MAINTAINED AT SITE OF WORK

20.1 GENERAL PROVISIONS

20.1.1 Records to be maintained at site and the purpose of each have been given below
along with the proforma. The records may be maintained in the form of a register
or in a file form. The Engineer in Charge who has signed the Works Contract
Agreement will arrange to supply the bound registers / loose - sheets as the case
may be. The records should be maintained properly by the Controlling Site
Engineers and preserved for a period of 3 years after financial closure of the
project or up to the time all disputes / arbitration cases of the work are finally
settled, whichever is later. In the case of bound registers, machine numbering of
pages should be done to avoid tampering with the same. In the case of files
formed of loose sheets proper folio numbering should be done. The registers /
files should be reviewed periodically by the Engineer in Charge and other
inspecting officers who should record their remarks. In no case will the register
be issued by the same official who is to record details on the same on day to day
basis as a Primary Record.

20.1.2 All communications of any appreciable consequence with Contractors by RITES

which may become material evidence in a future arbitration or court case, should
be sent by Registered / Speed Post, Courier or Fax and exact copies alongwith
the evidence of having sent the communication should be kept carefully in
RITES’ files. These will include all notices to the contractor under various
Clauses of Contract.

20.1.3 Field Book of Site Engineers:-

a) Every Site Engineer should keep a Field Book in which will be entered any
particulars with reference to the progress of works which may be relevant
such as nature of soil in which foundations are to be provided, the quality of
materials delivered at site of work, the quality of workmanship etc.
b) Remarks may also be made in the note book regarding the qualifications of
subordinates, artisans and others employed by the Contractor on the works,
the satisfactory or unsatisfactory operation of the contractors and in fact
anything relating to the works in progress which should be brought to the
notice of his superior officers, either being of general professional interest or
as requiring immediate action or order.
c) The dates of all inspections with a list of the works, and a memorandum of
the items inspected with details on various points considered worthy of
remarks, should also be given and these note books should be considered as
official records, to be produced whenever called for by superior officers. They
should be neatly and systematically kept and indexed.

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20.2 SITE ORDER BOOK (Format at Annexure 20.1)
It is meant for the Site Engineer and the supervisory Engineers to record their
observations if they find any defective work going on or the Contractor not
complying with the terms of Contract. This record should be in a bound register
form with pages machine numbered. The Contractor’s representative at site
should be shown the observations and asked to acknowledge the same in the
Site Order Book. The action taken by the Contractor should be recorded against
the relevant item and this should be acknowledged by the Site Engineer. The
Site Order Book should be maintained on the site of works and should never be
removed there from under any circumstances. While forwarding the bills
submitted by the Contractor for payment, the Site Engineer should consult the
Site Order Book to ensure that the defects pointed out have been rectified. If
defects continue to be there, action can be taken to issue Show Cause Notice as
mentioned in Para 14.1.2.

20.3 PERIODIC INSPECTION OF WORKS - INSPECTION RECORD (Format at

Annexure 20.2)
a) It is incumbent upon the various officers concerned with the work to inspect
the works frequently to ensure that the works are in general being executed
according to the design, drawings and specifications laid down in the contract
and aspects of safety, environmental issues, accountal, maintenance of
records, mandatory tests etc. All the visiting senior officers shall issue
inspection notes, follow up action on which may be properly filed by Project
Manager in one file. The instructions to be complied by the contractor shall be
carried on to the Site Order Book/communicated to the contractor for
ensuring compliance as dealt in para 20.2 above.

b) To watch action taken on the various inspection notes, consolidated record of

inspection notes may be kept in format at Annexure 20.2 in the same file
itself which may be reviewed by the inspecting officers during their
subsequent visits.

c) Periodicity of inspections by various officers is laid down in Table below for

adherence in general. The periodicity of inspections by SBU Head/ED may
be deviated suitably in consultation with ED/Director, depending upon
number of large projects in his Division, the nature, complexity, sensitivity,
geographical spread and accessibility of the projects.

Periodicity of inspections per year

Project Coordinator SBU Head / GGM ED / Divisional
Awarded value of
/GM Head
project

1 As considered As considered
Upto Rs. 20 Crores
necessary necessary
1 1 As considered
20 to 100 Crores
necessary
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 2 1 Atleast 25% of the
More than Rs. 100
Projects
Crores

d) "Check features" on different types of works are enclosed in Annexure 20.2

for guidance of inspecting officials upto SBU Head level These represent
most probable defects. Depending on time available, the inspection may
cover additional items for which 'CHECK LIST OF SPECIFICATIONS FOR
CIVIL ENGINEERING WORKS' issued by RITES may be referred to. ED /
Divisional Heads during the site inspection may give emphasis on the
workmanship of the contractor for improving overall delivery / aesthetics.

e) The direct responsibility for ensuring proper quality of work as per approved
specifications, designs and drawings rests with the construction team of
Project Manager and his Engineering subordinates. The officer who
records/test checks the measurements for an item of work will be responsible
for the quality, quantity and dimensional accuracy of the work.

f) The inspecting official after his work inspection shall submit the following
details to SBU Head. In case of SBU Head and above being inspecting
official, the details shall be submitted to his controlling official.
1. Name of work:
2. Awarded value of work:
3. Name of Inspecting Official:
4. Date/Period of Inspection:
5. Designation of Inspecting Official:
6. Roll of Inspecting Official: Project Coordinator/Engineer –In-Charge
7. S.No. of present visit to this work: 1st/2nd/3rd
8. Whether Check Features as per Annexure 20.2 of RITES Guidelines have
been checked? (Yes/No)
9. Whether site lab has been set up with necessary
instruments/equipments/testing machines: (yes/No)
10. Whether the records to be maintained at site of work as per section 20 of
RITES Guidelines are being maintained properly/updated properly: (Yes/No)
11. Whether Technical staff to be deployed by the contractor (as per clause no.36
of contract) are available: (Yes/No)
12. In case of any shortcoming in above aspects, action proposed/ advised:
13. Any major deficiency found which requires immediate attention: (Yes/No). If
yes, same may be explained.
14. Remarks

20.4 HINDRANCE REGISTER: (Format at Annexure 20.3)

This is a basic record for dealing with the application of the Contractor for
Extension of Time. Whenever any hindrance comes to the notice of the Site
Engineer or the contractor, a note of such hindrances should be recorded in the
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 Hindrance Register which can be a bound one with pages machine numbered.
The register should be reviewed by the Project Coordinator / Engineer-in-Charge
whenever they come for inspection. The following points should be kept in mind
while entering the particulars in the register.

i) The entry on date of start of hindrance and date of removal of hindrance

should be made on the same day on which the hindrance takes place or
the cause of hindrance is removed respectively.
ii) Overlapping period, net period of hindrances and weight age of each
hindrance should be worked out by the Project Coordinator / Engineer in
charge within 15 days of removal of cause of hindrance or whenever he
visits the site. This can be delegated to the Controlling Site Engineer.
iii) Items of work affected due to any hindrance should be clearly mentioned
in the hindrance register by the Site Engineer on the basis of which only
the weight age should be allowed.
iv) Each hindrance entered in the hindrance register should be authenticated
by the Controlling Site Engineer.
v) Hindrances which are in the Control of the Contractor shall not be given
any weightage while working out the net justifiable delay.
vi) Hindrance should be recorded carefully in the Hindrance Register
considering its effect on completion of work.
vii) Engineer-in-Charge / Project Coordinator from Project Offices / HQ should
review the Hindrance Register during their inspection.

20.5 DAILY PROGRESS RECORD (Format at Annexure 20.4)

This is a basic document to review the progress of work on a daily basis so that
the Performance of the Contractor with reference to his programme of work for
completion within the stipulated time can be kept under watch. This may be
maintained in a Register form with one page allotted for each day. The pages
should be machine numbered.

20.6 CEMENT REGISTER (Format at Annexure 20.5)

With free availability of cement in the market, the contracts invariably provide for
the contractor to make arrangements for the cement required for execution of
Works. Hence normally the cement stores will be under the control of the
Contractor. Still it will be necessary for RITES to keep a close watch on the
consumption of cement in various components of work to ensure that the
required quantity of cement has been used. The format accordingly provides for
its maintenance in two Parts A and B. Part B on review of actual consumption as
against theoretical requirement should be filled in based on the details in Part A.

20.7 STEEL REGISTER (Format at Annexure 20.6)

Just as in the case of cement, the present day contracts provide for steel supply
to be arranged by the Contractor. Through the storage and accountal of steel will
be the responsibility of the Contractor, it will be necessary to keep a close watch

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 on the actual consumption vis a vis the theoretical requirement determined based
on “Good for Construction” drawings.

20.8 NON CONFORMANCE ITEMS RECORD (Format at Annexure 20.7)

During the course of execution of works, there can be some cases of

substandard work by the Contractor. The normal procedure is for the Contractor
to be directed to redo the work or rectify it so that it conforms to the
specifications. There can be some rare cases where the defect or non-
conformance has been noticed so late that it is structurally impossible to get the
work redone. If otherwise structurally sound, such defective work can be
accepted at a reduced rate. The detailed procedure to be adopted has been
explained in Section 14. This record should be kept in a register form with the
pages machine numbered.

20.9 QUALITY AUDIT RECORD (Format at Annexure 20.8)

It is necessary to keep a record of “Quality Audits” done by the inspecting

officials and Quality Audit Organisation members and action taken thereon.
These records may be kept in file form. Along with Quality Audit Record in the
proforma laid down, a copy of the Quality Audit Report should be maintained.

20.10 SITE COORDINATION MEETINGS RECORD (Format at Annexure 20.9)

To ensure that the problems, if any, faced by the Contractor are identified in the
initial stage itself to facilitate taking corrective action and also to give an early
warning to the contractor if he is seen slipping behind the scheduled programme
of work, it is necessary to hold periodic progress meetings. In the case of works
where the progress of work is dependent on action by other organisations such
as those responsible for shifting of services in the site, such meetings can be
organized as coordination meetings. The record of such site progress /
coordination meetings should be maintained in the proforma laid down. This
record can be maintained in file format. Along with record for each meeting, a
copy of the minutes of meeting shall also be kept.

20.11 GUARANTEE BONDS RECORD (Format at Annexure 20.10)

The contract provides for the Contractor submitting a Bank Guarantee for
claiming Mobilization Advance. The Contract also permits “Performance
Guarantee” being provided by the Contractor in the form of Bank Guarantee
Bond. There can also be other cases such as issue of materials free of cost to
the Contractor where Bank Guarantee should be insisted upon. In all cases, the
contract will provide for the Bank Guarantee to be made available for a stipulated
amount and for a stipulated period in the first instance. The contract also
provides for the validity period of the Bank Guarantee to be got extended under
some circumstances. Though the responsibility for keeping the Bank Guarantee
Bond in safe custody and checking with the Site Engineer if the validity period is
to be got extended, will rest with the Accounts Wing in the office of Engineer in
Charge who has executed the Contract Agreement, the Site Engineer should
also maintain a copy of the Bank Guarantee in site and see that the validity is got
extended as required. The record should be maintained in the proforma laid
down, in a register form.
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20.12 INSURANCE POLICIES RECORD (Format at Annexure 20.11)

RITES Standard Contract Conditions provide for the Contractor taking the
following insurances.
i) On Secured Advance on perishable materials

ii) On Plant & Machinery advance

iii) Comprehensive All Risk Insurance on Cost of works

iv) Third Party insurance

v) Workmen’s Insurance.

Where the Client desires, other insurance policies may also be required to be
taken by the Contractor as provided for in the Contract.

ll these cases of insurance, the amount and initial period are laid down in the
Contract which also provides for getting the insurance cover extended for further
period under certain circumstances. While it will be the responsibility of the office
of Engineer in Charge to keep custody of the original policies and take action to
pursue the Contractor for extension of validity, a copy of the Policies should be
retained in the Site Office and the Site Engineer should keep in touch with the
office of Engineer in Charge and see that the Policy validity is got extended as
required. The record should be maintained in the proforma laid down, in a
register form.

20.13 DRAWINGS RECORD (Format at Annexure 20.12)

One of the main issues raised by the Contractors for delay in execution of the
works is the delay in making available “Good for Construction Drawings”. It is
hence necessary to maintain the details in the format laid down in a register form.

20.14 RECORD OF MANDATORY AND NON MANDATORY TESTS (Format at

Annexure 20.13)

CPWD Specifications stipulate that certain mandatory tests are required to be

carried out on materials / finished product. Full details of tests required to be
carried out have been described in Section 16 and they cover a number of items.
Depending on the scope of work, tests on the stipulated materials will be required
to be carried out as per frequency laid down for each material. To check if the
mandatory tests are being carried out as required, records are to be kept by the
Site Engineer. Specimen format for cement is at Annexure 20.13. Similar
format can be adopted for other materials. This record can be maintained in a
file form with an index sheet on top.

A separate file can also be opened with details in similar format for non
mandatory tests. As mentioned in Para 16.1.2 (viii) of this book, the Engineer in
Charge can get non mandatory tests on materials and products carried out at his

143
 discretion. The details to be maintained in file form will include all tests whether
carried out in the site laboratory or outside laboratory.

20.15 PAINT AND CHEMICALS RECORD (Format at Annexure 20.14)

Special care is to be exercised in checking quality of painting works and works of

specialized nature such as anti termite treatment and water proofing of
structures. These involve use of paints and chemicals whose quality and
consumption have to be kept under close watch, even though invariably Contract
Conditions provide for their supply by the Contractor. Record of paint and
chemicals may be maintained in the form of a register in proforma at Annexure
20.14.
FORMATS OF RECORDS TO BE MAINTAINED BY RITES’ SITE ENGINEER

Sl. No SUBJECT Annexures

1 Site Order Book 20.1
2 Inspection Record 20.2
3 Hindrance Register 20.3
4 Daily Progress Record 20.4
5 Cement Register 20.5
6 Steel Reinforcement Register 20.6
7 Non Conforming Items Record 20.7
8 Quality Audit Record 20.8
9 Site Coordination Meetings Record 20.9
10 Guarantee Bonds Records 20.10
11 Insurance Policies Record 20.11
12 Drawings Record 20.12
13 Mandatory Tests and Non-Mandatory Tests 20.13
Record
14 Paints / Chemicals Register 20.14

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 SECTION 21

MEASUREMENT BOOKS

21.1 MEASUREMENT BOOK - GENERAL INSTRUCTIONS

21.1.1 (a) The Measurement Book is the basis of all accounts of quantities whether of
work done by contract or by labour employed departmentally or of materials
received and should be so kept that the transactions may be readily traceable
in the accounts of RITES.

(b) Measurement Books should be considered as very important accounts

records and maintained very carefully and accurately as they may have to be
produced as evidence in a Court of Law.
(c) Each SBU Head will nominate an official by designation, of a level not below
that of Asstt. Manager, for receipt and safe custody under lock and key of
blank MBs and for issue of the same to controlling Site Engineers / Site
Engineers. The official so nominated will be responsible for checking the
blank MBs when received from the printer/supplier to see if they are complete
in all respects with machine numbering of MB and its pages.
21.1.2 (a) All the books belonging to a SBU should be numbered serially and a register
should be maintained by the nominated official, in format at Annexure 21.1
showing the serial number of each book, the name and designation of official
issuing the MB as well as of the official to whom issued, the date of issue and
the date of its return, so that its eventual return to the SBU office may be
watched. Both the issuing and receiving officials should sign in the register
indicating the date of transaction.

(b) A similar register should be maintained at the site of work showing the names
of the officials to whom the Measurement Books have been issued. Books no
longer in use should be withdrawn promptly even though not completely
written up so that they can be reissued, if necessary.
(c) Field officers are required to submit the Measurement Books in use to the
SBU office from time to time so that, at least once a year the entries recorded
in each book may be subjected to a percentage check by the Accounts
Section under the supervision of the SBU Head.

21.1.3 When an officer or a subordinate in executive charge of works or stores is

transferred, he should hand over the Measurement Books issued to him to his
successor and in the prescribed register. (Format at Annexure 21.1) they should
be shown as received back from the Relieved Officer and issued to the Relieving
Officer. The transfer should also be recorded after the last entry in each book
and signed and dated by the Relieved and Relieving Officer or subordinate.

21.1.4 Each set of measurements should commence with entries starting -

i) in the case for bills for works done -

a) full name of work as given in estimate,

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 b) situation of work,
c) name of contractor,
d) number and date of the agreement,
e) date of written order to commence work,
f) date of actual completion of work,
g) date of measurement, and
h) reference to previous measurements, if any.
(ii) In the case of bills for supply of materials:–

a) name of supplier,
b) number and date of the agreement or order,
c) purpose of supply in one of the following forms applicable to the case:-
- stock (for all supplies for stock purpose),
- “Purchases” for direct issue to (here enter full name of work as given in the
estimate),
- “Purchase” for (here enter full name of work as given in estimate)_______
for issue to contractor _______________ on ________________
d) date of written order to commence supplies,
e) date of actual completion of supplies, and
f) date of measurement.

21.1.5 A suitable abstract should then be prepared which should indicate in the case of
measurements for works done, the total quantities of each distinct item of work
relating to each sanctioned sub-head. The measurement book used for recording
Measurements will also be used for recording Abstract of Measurements in a
manuscript form. Details to be recorded in the Abstract will include quantities
up to previous Bill, in the Current Bill and up to date along with rates. Paras
21.1.15 and 21.5 may be referred to for further details.

21.1.6 For recording measurements and also for preparing abstract, the agreement item
no. both in words as well as in figure should be given neatly, instead of writing
the description of the item in full or in abbreviated form which would not be
necessary.

21.1.7 In case of extra / substituted item of work that is not covered in the agreement,
the full nomenclature shall be reproduced in full in the MB and in the bill form.

21.1.8 The full nomenclature of all the items shall be adopted in preparing abstract of
final bill in the measurement book and also in the bill form for final bill.

21.1.9 If the measurements are taken in connection with a running contract, a reference
to the last set of measurements, if any, should be recorded. If the entire job or
146
 contract has been completed, the date of completion should be duly noted in the
prescribed place. If the measurements taken are the first set of measurements
on a running account or the first and final measurements, this fact should be
suitably noted against the entries in the Measurement Book and in the latter
case, the actual date of completion should be noted in the prescribed place.

21.1.10All measurements should be recorded neatly in the Measurement Book.

Detailed measurements may be dispensed with in cases in which payments “on
account” for work actually executed are made on the certificate of a responsible
officer (not below the rank of Assistant Manager/ Engineer, if specially
authorised) to the effect that not less than the quantity of work recorded in MB
has actually been done and that the measurements are from plans or are
approximately estimated. The signature of the contractor or his authorized
representative should be obtained in the measurement book for each set of
measurements.

21.1.11a) Before taking any measurement of any work, the Engineer in Charge or a
subordinate deputed by him shall give at least 3 days notice to the
contractor. If the contractor fails to attend to take the measurements after
such notice or fails to countersign or to record objection within a week from
the date of measurement, then the measurements recorded in his absence
by the Engineer in Charge or by the subordinate deputed by him as the
case may be, shall be deemed to have been accepted by the contractor.

b) It happens sometimes that when the measurements recorded by the Site

Engineer are not accepted by the contractor, the fact is not brought to the
notice of his superior officers immediately with the result that prompt action
under clause 6 of contract of RITES Standard Form cannot be taken. The
idea of clause 6 is to bind the contractor to file objection, if any, to the
measurement recorded by RITES officers within a week so as to avoid any
disputes later on. In all cases of works executed on RITES Standard
Contract Form, when the contractor fails to attend at the time of
measurements or to countersign the measurement books in token of his
having accepted the measurements recorded therein, or to record the
difference, the Site Engineer taking the measurements should report this
fact within 72 hours to the Controlling Site Engineer / Coordinating Officer
in SBU office in writing. The latter on receipt of such a report should take
immediate action under clause 6 of Contract and inform the contractor, in
writing that the measurements as taken by the Site Engineer are final as
per clause 6 of Standard Form of RITES and no claim whatsoever on this
account shall be entertained.
c) The above instructions will not apply in cases when the Contractor is to
submit completed measurements to RITES as detailed in Para 21.6.

21.1.12 The measurements shall be recorded in ink. No entry shall be erased or

overwritten. If a mistake is made, it should be corrected by crossing out the
incorrect words or figures and inserting the correction. The correction thus
made shall be initialed and dated by officer recording / checking measurements.
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 The person recording the measurements should record a dated certificate
“Measured by me” over his full signature in the Measurement Book.

21.1.13 The pages of the MBs should be machine numbered. Blank pages, if any,
without machine numbering should be cancelled by a diagonal line and dated
and initialed by the Measurement Book Issuing Officer. Entries should be
recorded continuously and no blank page left or torn out. Any page or space left
blank inadvertently should be cancelled by diagonal line, the cancellation being
attested and dated. This is to ensure that no entry is inserted later. In cases
where “part rate” is proposed for any items, brief reason for the same should be
recorded in the Measurement Book. In such cases the quantities should be
correctly indicated based on measurements and payment made at less than
BOQ rates.

21.1.14 When any measurements are cancelled or disallowed, these must be endorsed
by the dated initials of the officer ordering the cancellation or by a reference to
his orders, initialed by the officer who made the measurements, the reasons for
cancellation being also recorded.

21.1.15 On completion of the abstract to be recorded in the MB at the end of record of

Measurements for any RAB / Final Bill (refer Para 21.5 for the Proforma), the
book should be submitted by the official who had recorded the measurements
to the Controlling Site Engineer/ Project Coordinator who after carrying out his
test check / getting the test check carried out, should enter the word “Check and
bill” with his dated initials. The Site Office clerk, if posted, should then check
the calculations of quantities in the abstract, and the bill furnished by the
Contractor in case of work carried out by contract, sign in token of checking and
should then place the measurement book and the bill before the Controlling site
Engineer, who, after comparing the two, should sign the bill and the
measurement book at the end of the abstract. From the measurement book all
quantities should be clearly traceable into the documents on which payments
are made. When a bill is prepared for a work or supplies, every page
containing the detailed measurements must be invariably scored out by a
diagonal red ink line. When the payment is made, an endorsement must be
made in red ink, on the abstract of measurements, giving a reference to the
number and date of the voucher of payment.

21.1.16 Any corrections to calculations or rates made by the Site Engineer or in SBU
office should be made in red ink and brought to notice of the Controlling Site
Engineer or the Project Coordinator, as the case may be and of the person
recording the original measurements. In the case of final bill, payment should
be deferred until the corrections have been accepted by the person making the
measurements. All corrections made by the clerical staff should be in red ink.

21.1.17 When work which is susceptible to measurements is carried out by daily labour,
similar plan should be adopted, the quantities of work done as shown on the

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 Muster Roll being compared with the entries in the Measurement Book before
payment is authorized.

21.1.18 Measurement Book should be sent only by Registered Post / Speed Post /
Courier or by Special Messenger.

21.1.19 Measurements should be recorded only by the officials in charge of the work
and to whom the Measurement Book has been issued for this purpose.
Guidelines on this subject are at Annexure 21.2 and may be strictly adhered to.

21.1.20 In case of works of repetitive type, detailed measurements of 20% of the total
number of units, subject to a minimum of 20 Units, need only be recorded.

21.1.21 In case of supply of steel, the measurements should be recorded as under:-.

i) On actual weight basis for bars upto 10mm dia and

ii) On standard sectional weight basis for bars above 10mm dia. In the case
of latter the measurements should indicate the total number with length of
bars in each bundle, total number of bundles, standard weight per running
meter, weight of each bundle, total weight of all bundles etc. The entry
should not be a copy form the invoice issued by the firm. The issues will
also be made in the same manner in the two cases.

21.2 TEST CHECKING OF MEASUREMENTS

21.2.1 The Controlling Site Engineer / Coordinating Officer must satisfy himself before
passing a bill for payment or before submitting it to the SBU office for payment
that the work or supply billed for has actually been carried out / completed in
accordance with the terms and conditions of the contract. In case of doubt, he
should personally inspect all works of any magnitude before authorising final
payments in connection therewith.
21.2.2 Instructions on test check of measurements are at Annexure 21.2 and will be
required to be adhered to strictly.

21.2.3 The individual items checked should be clearly shown in the Measurement Book
and the result recorded by the officer concerned. The items thus checked should
be attested by the dated initials of the Checking Officer.

21.2.4 A collective record of all the checks carried out from time to time will be prepared
in each measurement book in the following tabular form:-

i. Date of check
ii. Page recording measurements subject to test check
iii. Item description and Number, Test Checked
iv. Value of measurements checked
v. Result of the check exercised
vi. Dated initials and designation of the checking officer.

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 The result will be indicated by the word “Satisfactory” or “Unsatisfactory” as
judged at the time on merits of each case.

21.2.5 The Format of Test Check statement to be filled and submitted with each RA
bill/Final Bill is given at Annexure 21.6

21.3 RECORDING LEVELS FOR EARTH LEVELLING WORK

21.3.1 In case of leveling operations and earthwork, measurements are required to be

recorded in Level Books in addition to Measurement Books. The Level Books
should be numbered, accounted for and handled like Measurement Books.

21.3.2 Before starting the earth work, the following steps should be taken:-

i) Original ground levels should be recorded in the Level Book in the

presence of the contractor,
ii) A suitable baseline should be fixed with permanent masonry pillars @ 150
metres centres to provide a permanent reference line,
iii) Circuit should be closed by taking final levels of the starting point or any
other point, the R.L. of which was previously determined,
iv) Plans showing initial levels, locations of bench marks and reduced levels
should be prepared and signed by both the parties and attached to the
agreement. Work should be done according to the specifications.

21.3.3 Test checks should be done as stipulated in the instructions at Annexure

21.2.The test check of the levels should be carried out independently by each
officer and readings should be recorded in the prescribed Level Book in red ink
against the old levels which should be neatly scored out wherever necessary. If
the test checking carried out reveals serious mistakes in the original levels, these
should be taken or retaken and rechecked. The test check by an officer should
be as representative as possible for the entire work done.

21.3.4 On completion of work, the levels should again be recorded in the Level Book
and the contractor’s signatures obtained. These levels should also be test
checked within one month of the date of completion of the earth work and
according to the procedure as laid down in the case of initial levels as indicated
above. The formation levels as per final execution of the work should be
compared with the proposed formation levels and work got rectified within
permissible tolerance.

21.3.5 Every fourth running bill and the final bill should be paid on the basis of levels.

21.3.6 Intermediate payments can, however, be made on the basis of borrow pit
measurements. The Controlling Site Engineer should take care that the
quantities thus assessed are not in any case more than the actual work done.

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21.3.7 In case of large scale leveling works involving both cutting and filling, an accurate
site plan should be prepared before the work is commenced. The portions
requiring cutting and filling shall then be divided into squares and corresponding
squares into filling, which are complementary to the squares in cutting given the
same number. A table may be written upon the plan showing leads involved
between the various complementary squares. This would form a lead chart for
the work to be done. Before the work of leveling is commenced, the lead chart
shall be checked by a responsible officer of RITES as indicated in Annexure
21.2 in presence of the contractor or his authorized representative and his
signature shall be obtained on the same. This should form an integral part of the
contract and should be duly signed by both the parties before commencement of
the work. The quantity payable for earthwork shall be lower of the quantity
derived from cutting or filling. The payment for lead shall be based on lead chart
prepared in the aforesaid manner.

21.3.8 In case of earth to be imported, the area from where the earth is to be imported,
should be carefully predetermined before the start of the work and wherever
feasible, average lead should be worked out and stipulated in the tender. After
this is determined, initial levels of this area should be recorded along with the
initial levels of the area to be filled. The levels should be properly checked during
the progress of work and on completion, measurements of earth work should be
recorded in both places to determine correctly the earth excavated and carted.
Payment for the earth work shall be made on the basis of the lesser of the
quantity in filling or cutting. Distances between the two places should be
measured correctly which should also be test checked.

21.3.9 In respect of import of sweet earth required for horticulture operations, the
quantity of good earth required is very small and there may be more than one
source from where the agriculture soil is readily available. Also, good earth is
lifted by contractors for different works from the same source and as such it is not
possible to take levels of the area from where the earth is imported. Hence,
Provision of Para 21.3.8 will not apply in respect of horticulture works. The
payments in such cases will be made on the basis of levels in the area where
earth is to be filled.

21.3.10 Similar procedure as in para 21.3.8 should be followed while recording

measurements of disposal of earth.

21.3.11 In case of small works, borrow pit measurements and stack measurements of
earth may be recorded indicating clearly the place of borrowing or disposal, as
the case may be so that the distances can be verified.

21.4 LOSS OF MEASUREMENT BOOK

When a Measurement Book is lost, an FIR should be lodged with the Police. An
immediate report of the facts of the case together with an explanation of all
parties concerned responsible for loss should also be made promptly to

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 Executive Director concerned who is empowered to sanction the write off of the
lost MB. It is necessary that the measurements in the lost MB should be
reconstructed at the earliest. Proforma in which details are to be furnished while
requesting for write off of a lost MB is at Annexure 21.3.

21.5 PROFORMA FOR MEASUREMENT BOOK

The Proforma for various pages of MB is at Annexure 21.4. As indicated in Para

21.1.15 after recording of Measurement for any RAB / Final Bill, Abstract of
Measurements should be recorded at the end in the same MB. The Abstract will
cover all items for which payment has been done / proposed through the current
Bill. The proforma in which Abstract is to be made out is at Annexure21.5. This
Abstract is to be recorded in the M.B. on the format stipulated, in a manuscript
form.

21.6 Computerised Measurement Books (CMB’s) and Bills to be submitted by

the Contractor

21.6.1 Application and format of the Computerised MB.

(1) In works of estimated cost put to tender of Rs.15 lakh and above, subject to
approval of SBU Head, the conventional Measurement Books may be replaced
by a bound volume of computerized measurements to be furnished by the
contractor, duly machine numbered for the pages, and with an MB number given
by the SBU Office. The pages of these Measurement Books shall be of A-4
size. All these Measurement Books belonging to a SBU shall be serially
numbered, and a record of these Computerised Measurement Books shall be
maintained in a separate Register in Form at Annexure 21.1.

(2) The same format as in existing Measurement Books shall be used for the
Computerised Measurement Books. The measurements shall be carried
forward from the previous recorded measurements as per the existing
procedure.

21.6.2 Mode of Measurements

1) The measurements shall be recorded and entered in computerized format in

the first instance by the contractor, and a hard copy shall be submitted to
the Engineer-in-charge. All entries shall be made exactly as per the existing
procedure.

2) These measurements shall then be 100% checked by the Controlling Site

Engineer. If Controlling site Engineer is not available, the Project
Coordinator shall arrange for 100% check of the measurements. The
contractor shall incorporate all such changes or corrections as may be done
during these checks, in his draft computerized measurements, and submit to
the Engineer-in-charge the corrected computerized measurements in the

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 form of a book, duly hard bound in red colour on the lines of the conventional
Measurement Books now in use, and with its pages machine numbered.

3) Test check of these computerized measurements shall be carried out as per

the existing instructions at Annexure 21.2.

4) The Site Engineer, Controlling Site Engineer and the Project Coordinator
shall record the necessary certificates for their checks and test checks as
per the existing procedure in this Computerised Measurement Book.

5) The Computerised Measurement Book shall be allotted a serial number as

per the Register of Computerised Measurement Books.

21.6.3 Cutting or over-writing in the computerized M.B. not allowed

1) The Comptuerized Measurement Book given by the contractor, duly bound,

with its pages machine numbered, shall have no cutting or over-writing.

2) It is the responsibility of the Site Engineer or the Controlling Site Engineer as

the case may be to ensure that the checks and test checks done by them in
the initial draft measurements are correctly incorporated in the Computerized
Measurement Book before they record their certificates.

3) In case of any error, the Computerized Measurement Book shall be

cancelled, and the contractor shall re-submit a fresh Computerized
Measurement Book. This should be done before the corresponding
computerized bill is submitted to the Engineer in charge for payment.

4) The contractor shall submit as many copies of Computerised Measurement

Books as may be required, and as are specified in the NIT / contract, for the
purpose of reference and record in the various offices of RITES.

21.6.4 Computerized Bill to be submitted by the Contractor

1) The contractor shall submit his running and final bills in a computerized form
in the same format as the existing conventional bills, with all the pages
machine numbered, and hard bound, and with all the entries made as per
the existing procedure.

2) The contractor shall submit as many copies of the computerized bills as may
be required for the purpose of reference and record in the various offices of
RITES.

3) The bill shall be carried forward from the previous running account bill as per
the existing procedure.

4) These computerized bills shall be processed for payment, as per the existing
procedure.

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 SECTION 21 A

BILLING THROUGH COMPUTERIZED MEASUREMENT BOOK

21.1A GENERAL

21.1.1 (a) The Measurement Book is the basis of all accounts of quantities
whether of work done by contract or by labour employed departmentally
or of materials received and should be so kept that the transactions may
be readily traceable in the accounts of RITES.

21.1.1 (b) A Measurement Books should be considered as very important

accounts records and maintained very carefully and accurately as they
may have to be produced as evidence in a Court of Law.

21.1.2A Project Manager (Controlling Site Engineer) shall maintain a register in

which he will assign a unique number comprising alpha numeral
characters(to identify the name of the work) to each MB upon printing of its
hardcopy and forwarding for payment, for the purpose of identification and
traceability. Essentially, the MB No,, No. of RA Bill, items of measurement
date of printing of its hard copy, No. Of pages, date of forwarding for
payment, Name of officer in whose custody the MBs are kept and Name of
officer to whom MBs are transferred subsequently during the currency of
contract shall be entered in the register. Each entry shall have signature of
controlling site engineer in the register. The register thus prepared at site
shall be handed over to SBU office upon completion of works

21.1.3A When an officer or a subordinate in executive charge of works or stores is

transferred, he should hand over all the Measurement Books received from
the contractor by him to his successor and in the prescribed register
(Format at Annexure 21.1) they should be shown as handed over by the
Relieved Officer and taken over by the Relieving Officer. The transfer
should also be recorded after the last entry in each book and signed and
dated by the Relieved and Relieving Officer or subordinate.

21.1.4A The Computerized Measurement Books (CMBs) and bills are to be

submitted by the contractor. Accordingly, the contractor should be required
to submit each bill with the following entries –

(i) In the case of bills for work done

a. Full name of work as given in the contract

b. Location of work
c. Name of Contractor
d. Number and date of agreement
e. Date of written order to commence the work
f. Date of actual completion of work
g. Period of measurement
h. Reference of MBs having previous measurement
(ii) In the case of bills for supply of materials:–

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 a) name of supplier,
b) number and date of the agreement or order,
c) purpose of supply in one of the following forms applicable to the
case:-
- stock (for all supplies for stock purpose),
- “ Purchases” for direct issue to (here enter full name of work as
given in the estimate),
- “Purchase” for (here enter full name of work as given in
estimate)_______ for issue to contractor _______________ on
________________
d) date of written order to commence supplies,
e) date of actual completion of supplies, and

f) date of measurement.

21.1.5A A separate MB shall be generated by the contractor for abstract of each bill
which should indicate quantity / rate / amount of each distinct item of work.
The measurement book used for recording measurement should not be
bound with Abstract MB. Details in the abstract shall include quantities of
each item up to previous bill, quantity measured in the current bill and up to
date quantities along with rates paid in previous bill, proposed in current bill
and corresponding amounts.

21.1.6A The contractor shall submit separate soft and hard copies of Measurement
Books containing details of measurements and a separate soft and hard copy
of abstract of measurements. For recording measurements and also for
preparing abstract, the contractor shall be required to use black font with
standard type and size. Change of font type, size (font size 12) and colour
shall be seen as violation of billing procedure. The contractor shall be required
to certify that there are no hidden cells in the computerized measurement
books. The Site Engineer shall check 100% of measurements and abstract. In
case, the measurements/abstract submitted by the contractor needs
corrections, the same shall be carried out in ink by the site engineer and the
soft copy along with the corrected hard copy returned to the contractor (after
keeping a photocopy/scanned copy of corrections carried out) with the
direction to re-submit the soft and hard copies of MBs after incorporating the
corrections. This process may have to be repeated till no more corrections are
required. Project Manager (Controlling Site Engineer) shall verify the
correctness of the contractor’s certificate regarding no hidden cells. He will
carry out test-checking of measurements and check all calculations and
correctness of all engineering formulae used in calculating the quantities.
Description of item with item number is to be entered in full text while
recording the abstract. However, while recording the measurements, item
number and description in abbreviated form can be made. PC at HQ will
ensure the checks in CMBs as brought out above have been carried out by
the Controlling Site Engineer before sending it for finance vetting. The Site
Engineer shall be responsible for the explanatory notes / calculations made
under description/ particulars column. The site Engineer shall also be
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 responsible for the correctness of the formulae applied for the purpose of
calculation of the quantity for area/volume wherever required. Finance shall
ensure the arithmetical checks for the area / volume / quantities calculated
and the correctness of the quantities carried over to the Abstract and
calculations of the Abstract.

21.1.7A In case of extra / substituted item of work that is not covered in the agreement,
the full nomenclature shall be reproduced in full in the MB and in the bill form.

21.1.8A The full nomenclature of all the items shall be adopted in preparing abstract of
final bill in the measurement book and also in the bill form for final bill.

21.1.9A If the measurements are taken in connection with a running contract, the
contractor should be asked to record a reference to the last set of
measurements, if any. If the entire job or contract has been completed, the
date of completion should be duly noted in the prescribed place. If the
measurements taken are the first set of measurements on a running account
or the first and final measurements, this fact should be suitably noted by the
contractor against the entries in the Measurement Book and in the latter case,
the actual date of completion should also be noted.

21.1.10A The contractor shall be required to record all measurements neatly in the
Measurement Book. Detailed measurements may be dispensed with in
cases in which payments “on account” for work actually executed are
permitted by the Engineer-in-Charge on the basis of approximate quantities
without detailed measurements. In such cases the contractor shall be
required to give approximate quantities executed by him and also record a
certificate to the effect that not less than the quantity of work recorded in MB
has actually been done. A responsible officer of RITES (not below the rank
of Assistant Manager/ Engineer, if specially authorised) shall verify the
contractor’s certificate and record that not less than the quantity of work
recorded in MB has actually been done and that the measurements are from
plans or are approximately estimated. The bill prepared on the basis of
approximate quantities shall be treated like any other running account bill
and shall be given a new number like other running account bills.

21.1.11A Measurements of measurable work shall be recorded by the contractor and

got checked from RITES’ Site Engineer/ Controlling Site Engineers
authorised representative of Engineer in-chargeat pre-specified intervals of
time (not more than a week). In case of any dispute regarding
measurements the Site Engineer checking the measurements should report
this fact within 72 hours to the Controlling Site Engineer / Project Coordinator
in SBU office in writing. The latter on receipt of such a report should take
immediate action to get the objection withdrawn by getting the
measurements checked in presence of the contractor / his representative.

21.1.12A All pages of the measurement book shall have header giving the name of
work, contract package in abbreviated form and the footer shall be numbered.
Entries should be recorded continuously and no blank page left or torn out.
Any page or space left blank inadvertently should be cancelled by diagonal
156
 line, the cancellation being attested and dated. This is to ensure that no entry
is inserted later. In cases where “part rate” is proposed for any items, brief
reason and rationale for arriving at part rate should be recorded in the
Measurement Book. In such cases the quantities should be correctly
indicated for each part rate (in case of more than one rate assigned for the
same item) based on measurements,

21.1.13A In case the contractor records measurements even for works which have been
executed inconsistent with stipulated specifications, the amount worked out
for such works should be disallowed or kept under hold with suitable remarks,
giving details of defective work, or for any other reason, for which the work
carried out by the contractor is not being allowed or the payment being kept
under hold till the inconsistency is rectified.

21.1.14A The contractor shall submit the Measurement Books containing all
measurements along with Abstract Measurement Book and the Bill. The Site
Engineer should then check the correctness of engineering formulae applied
and also the calculations of quantities and their carrying overto the abstract
and to the bill furnished by the Contractor. Each quantity included in the
abstract for payment should have linkage to the MB containing measurements
of respective item of work. Quantities having wrong or missing linkage shall
not be allowed for payment in the bill. Bills having wrong or missing linkage or
ad-hoc entries of quantity in the abstract shall be treated as non-compliant to
laid down procedure and responsibility for lapse shall be fixed for slackness in
duty.The Site Engineer should sign in token of checking and should then place
the measurement books, Abstract MB and the bill before the Controlling Site
Engineer (if posted), who, after thorough checking of the same should sign the
bill and the measurement book at the end of the abstract and forward the
MBs, Abstract MB and the Bill to the Project Co-ordinator in the SBU. The
Project Co-ordinator shall check the bill from all contractual stipulations
including the contract with the client. After checking, the Project Co-ordinator
shall forward the bill to the Associated Finance of the SBU. The Finance shall
check from the measurement booksthat all quantities should be clearly
traceable to the documents on which payments are made. When a bill is
prepared for a work or supplies, every page containing the detailed
measurements must be invariably scored out by the Associated Finance of the
SBU in diagonal line in red ink when payment is made, An endorsement must
be made in red ink, on the abstract of measurements by the Finance giving
reference of the number and date of the voucher of payment.

21.1.15A Soft copy of the bills shall be e-mailed by the Controlling Site Engineer to the
Project Co-ordinator in SBU office in advance for checking. Hard copy of the
bill including measurement Books, Abstract MB and other documents should
be sent only by Registered Post or courier. In case of urgency, bills can be
sent by Special Messenger. Under no circumstances bills shall be sent using
contractor’s resources.

21.1.16A Even if the work is of repetitive nature each measurement identifying its
location or any other unique feature should be measured and recorded in the
measurement book.

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21.1.17A In case of supply of steel, the measurements should be recorded as under:-.

I. On actual weight basis for bars up to 10mm dia.

Ii. On standard sectional weight basis for bars above 10mm dia. In the case
of latter, the measurements should indicate the total number with length of
bars in each bundle, total number of bundles, standard weight per running
meter, weight of each bundle, total weight of all bundles etc. The entry
should not be a copy from the invoice issued by the firm. If stipulated in the
contract, steel will be issued in the same manner in the two cases.

21.2A Test checking of measurements

21.2.1A Instructions on test check of measurements are at Annexure 21.2 and are
required to be adhered to strictly.

21.2.2A The individual items test checked should be clearly shown in the
Measurement Book and the result recorded by the officer concerned. The
items thus checked should be attested by the dated initials of the Checking
Officer.

21.2.3A A test check statement should be included with each bill giving details of total
amount & quantity billed against each item and percentage test checked
giving reference to page nos of MB for each item. The format of test check
statement shall be included in each measurement book by the contractor in
the following tabular form:-
i. Date of check
ii. Page recording measurements subject to test check
iii. Item description and Number, Test Checked
iv. Value of measurements checked
v. Result of the check exercised
vi. Dated initials and designation of the checking officer.

The statement shall be filled in by the RITES’ officer concerned and the result
indicated by the word “Satisfactory” or “Unsatisfactory” as judged at the time
on merits of each case.

21.2.4A The Format of Test Check statement to be filled and submitted with each RA
bill/Final Bill is given at Annexure 21.6

21.3A Recording of levels for earthwork

21.3.1A In case of levelling operations and earthwork, measurements are required to be

recorded in Level Books in addition to Measurement Books. The Level Books
should be numbered, accounted for and handled like Measurement Books.

21.3.2A Before starting the earth work, the following steps should be taken:-

158
 i) Original ground levels should be recorded in the Level Book in the
presence of the contractor,
ii) A suitable baseline should be fixed with permanent masonry pillars @ 150
meterscenters to provide a permanent reference line,
iii) Circuit should be closed by taking final levels of the starting point or any
other point, the R.L. of which was previously determined,
iv) Plans showing initial levels, locations of bench marks and reduced levels
should be prepared and signed by both the parties and attached to the
Level Book / MB. Work should be done according to the specifications.

21.3.3A Test checks should be done as stipulated in the instructions at Annexure

21.2.The test check of the levels should be carried out independently by each
officer and readings should be recorded in the prescribed Level Book in red
ink against the old levels which should be neatly scored out wherever
necessary. If the test checking carried out reveals serious mistakes in the
original levels, these should be taken or retaken and rechecked. The test
check by an officer should be as representative as possible for the entire work
done. The test check of levels should also be included in the test check
statement showing percentage test check of total entries.

21.3.4A On completion of work, the levels should again be recorded jointly by the Site
Engineer and the Contractor in the Level Book and signed by the contractor
and the Site Engineer. These levels should also be test checked within one
month of the date of completion of the earth work and according to the
procedure as laid down in the case of initial levels as indicated above. The
formation levels as per final execution of the work should be compared with
the proposed formation levels and work got rectified within permissible
tolerance.

21.3.5A Every bill should normally be paid on the basis of levels. However, with the
approval of Engineer-in-Charge, alternate bills can be paid on the basis of
approximate quantities.

21.3.6A No intermediate payment without valid recorded reason shall be permitted in

case of earthwork.

21.3.7A In case of large scale leveling works involving both cutting and filling, an
accurate site plan should be prepared before the work is commenced. The
portions requiring cutting and filling shall then be divided into squares and
corresponding squares into filling, which are complementary to the squares in
cutting given the same number. A table may be written upon the plan showing
leads involved between the various complementary squares. This would form
a lead chart for the work to be done. Before the work of leveling is
commenced, the lead chart shall be checked by a responsible officer of RITES
as indicated in Annexure 21.2 in presence of the contractor or his authorized
representative and his signature shall be obtained on the same. This should
form an integral part of the contract and should be duly signed by both the
parties before commencement of the work. The quantity payable for earthwork
shall be lower of the quantity derived from cutting or filling. The payment for
lead shall be based on lead chart prepared in the aforesaid manner.
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21.3.8A In case of earth to be imported, the area from where the earth is to be
imported, should be carefully predetermined before the start of the work and
wherever feasible, average lead should be worked out and stipulated in the
tender. After this is determined, initial levels of this area should be recorded
along with the initial levels of the area to be filled. The levels should be
properly checked during the progress of work and on completion,
measurements of earth work should be recorded in both places to determine
correctly the earth excavated and carted. Payment for the earth work shall be
made on the basis of the lesser of the quantity in filling or cutting. Distances
between the two places should be measured correctly which should also be
test checked.

21.3.9A In respect of import of sweet earth required for horticulture operations, the
quantity of good earth required is very small and there may be more than one
source from where the agriculture soil is readily available. Also, good earth is
lifted by contractors for different works from the same source and as such it is
not possible to take levels of the area from where the earth is imported.
Hence, Provision of Para 21.3.8A will not apply in respect of horticulture
works. The payments in such cases will be made on the basis of levels in the
area where earth is to be filled.

21.3.10A Similar procedure as in Para 21.3.8A should be followed while recording

measurements of disposal of earth.

21.3.11A In case of small works, borrow pit measurements and stack measurements
of earth may be recorded indicating clearly the place of borrowing or
disposal, as the case may be so that the distances can be verified.

21.4A Contractor’s bill

21.4.1A For each bill scanned copy of certified bill after payment, may be got e-mailed
to the contractor by the Project Co-ordinator and the bill should be archived
by getting it scanning it including all its relevant documents.

21.5A As indicated in Para 21.1.6A, after recording of Measurement for any RABill /
Final Bill, the contractor should be required to record Abstract of
Measurements in a separate MB. The Abstract will cover all items for which
payment has been done in previous bills and proposed through the current
Bill. The proforma in which Abstract is to be made out is at Annexure21.5.

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 SECTION 22

PAYMENTS TO CONTRACTOR

22.1 REQUIREMENT OF CLAUSE 7

22.1.1 Clause 7 of the Clauses of Contract of Standard Form of RITES provides that no
payments shall be made for works or supplies estimated to cost less than
rupees one lakh till after the whole of the work or supply shall have been
completed and a certificate of completion given. In the case of works or supplies
estimated to cost more than Rs.1 Lakh, the contractor shall on submitting the bill
thereof be entitled to receive a monthly payment proportionate to the part thereof
then executed and passed by the Engineer-in-Charge. The contractors should be
required by the Engineer-in-Charge to submit their bills by a fixed date in
accordance with the terms of clause 7 of Contract of Standard Form of RITES.
The Controlling Site Engineer should supply to the contractor a copy of the
measurements and statement of “part rates” to be paid, at least three clear days
in advance of such date fixed by the Engineer-in-Charge. Part rate can be
proposed by the Controlling Site Engineer after taking into account the
approximate value of the components of that BOQ item of work already
completed vis-à-vis all the components covered by that BOQ item. The payment
to the contractor shall be made only on submission of the bill by him.

22.1.2 Ordinarily, running payments shall be made monthly with billing not less than the
stipulated minimum amount as per terms of the contract, unless specifically
authorized otherwise by the Engineer in charge in specific cases. The
stipulations in Schedule ‘F’, if different to the above provisions, will prevail. While
fixing the minimum amount for billing per month, it should normally not be less
than half the average monthly value of contract (i.e.) contract value divided by
the stipulated period in months. However, the minimum amount for billing per
month in Schedule-F at the time of preparation of tender, can be decided by
Tender Approving Authority as per the requirement of work.

22.1.3 The Project Coordinator should maintain a register to keep a record of the
monthly running payments made to the contractors in respect of contracts in the
proforma prescribed in Annexure 22.1. As and when a bill is submitted, the
same shall be entered in this register. The register should be reviewed by the
SBU Head regularly to ensure that payments are being made to the contractors
in time. If any objection is raised by the SBU Accounts Unit for payment of a
particular item or rate in any bill, the Engineer-in-Charge should make up his
mind and pass final orders then and there whether the item on which objection
has been raised should be allowed or not with or without modification of the
proposed rate and if it is not to be allowed then the item should be deleted from
the bill but in no circumstances the payment should be delayed. The register
should be posted at the time of making monthly running payment to the
contractor.

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22.2 FINAL PAYMENTS
Final measurements should be recorded within one month of the completion of
work. Provisions of clause 9 of Clauses of Contract should be followed for
release of Final Bill payment.

22.3 TIME SCHEDULE FOR PAYMENT OF BILLS

22.3.1 The following time schedule for payment of bills and issue of completion
certificates has been prescribed in various Clauses of Contract.

Stage Time Limit

Payment of running bill/Interim
Contractor’s notice of Completion of work
Issue of completion certificates for works
75% of the bill amount before expiry of 3
working days from the presentation of the
bill at the office of Engineer-in-Charge,
except where otherwise provided for in the
Special Conditions of Contract. (5 working
days in case work is outside HQ of SBU).
Balance payment within 15 working days.
(Clause 7)
10 days of completion of the work (Clause
8)
Within 30 days of receipt of Contractor’s
notice

(Clause 8). May be “Provisional” or “Final”

Submission of final bill by the contractor

Within one month of the date of the final
certificate of completion furnished by the
Engineer-in-Charge or three months of
the physical completion of the work
whichever is earlier(Clause 9)

Payment of final bills for Works up to Rs.

One Crore 3 months of receipt of final bill from the

contractor in the office of Engineer-in-

Charge

(Clause 9)

Payment of final bills for works over Rs. 6 months of receipt of final bill from the
One Crore Contractor in the office of Engineer-in-
Charge. (Clause 9)

22.3.2 Though the above time lines are as per relevant clauses of contract, for
processing and release of the payment of final bills for works having Tendered
Value more than Rs. 1.00 crore, the following timelines are to be adhered to by
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 RITES staff in cases where RITES supervises the work and releases the
payments to contractors from fund deposited by client:

1. Processing of bill on the site – 15 days

2. Technical check – 15 days
3. Financial check for deviation and escalation if any – 20 days
4. Technical reply/approval – 10 days
5. Financial Check – 20 days
6. Resolution of queries raised by the finance division and approval – 05 days
7. Release of payment – 05 days

22.4 INSPECTION OF WORK NEARING COMPLETION / AFTER COMPLETION

22.4.1 Before the work is declared as completed in all respects and final payment is
released to the contractor in respect of the following works, it has to be inspected
by the Engineer-in-Charge as far as possible. Failing this, the inspection will be
done by the Project Coordinator in SBU office.

i) Building Works Rs. Ten Crore and above

ii) Electrical, Water Supply / Rs. Three Crore and above
Sanitary Works
iii) Road /Runway Works Rs. Ten Crore and above
iv) Horticulture Work Rs. Thirty Lakhs and above.

22.4.2 The Engineer-in-Charge / Project Coordinator shall also record the following
certificate:-

“I have inspected the work of ......................contract value of which is Rs.

......................vide Agreement No. .......................today. As a result of this
inspection and my previous inspections I find that the work has been completed
satisfactorily. There are no noticeable defects except for the following:-
__________________

22.4.3 The above certificate is required to be recorded within a period of three months
from the date of completion of the work.

22.4.4 In the case of works whose contract value is less than the above mentioned
values, the Controlling Site Engineer has to record similar certificate.

22.4.5 The defects noticed should be rectified by the contractor or by RITES at his
cost, action for which should be taken in terms of the contract.

22.4.6 The Engineer-in-Charge or the Project Coordinator in SBU office is also required
to record the above certificate in respect of contracts for building works
exceeding Rs. Three Crores where such contracts are in respect of part of a
technically sanctioned estimate of Rs. Twenty Crores and above.
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22.5 COMPLETION CERTIFICATE

22.5.1 An attested copy of the completion certificate will be attached with the office copy
of the final bill of the contractor and remain on the record of the SBU. Engineer-
in-Charge shall not make final payment till this certificate is recorded, and
attached to the office copy. This certificate, however, will in no way reduce the
responsibility of the Engineer-in-Charge and Accounts Officer of SBU office for
due check of the work and the bill as required by this Guide book.

22.5.2 The certificate is required to be recorded by the Engineer-in-Charge / Project

Coordinator in whose time the work is completed irrespective of the fact that a
part of the work may have been done during the incumbency of his
predecessor. The Engineer-in-Charge / Project Coordinator recording the
certificate is not responsible for bad work which may have been covered up
during the incumbency of his predecessor as for instance, work in foundations or
below the concrete flooring. But he is required to point out the defects which
appear outwardly, for instance, defects in the doors and windows, plastering,
flooring, painting etc. The Engineer-in-Charge / Project Coordinator should
necessarily record the completion certificate for the works completed in his
tenure on the post before he hands over the charge to his successor on
transfer.

22.6 PAYMENT THROUGH BANK

Payment due to contractor, if so desired by him can be made to his Bank instead
of direct to him provided the contractor furnishes to the Engineer-in-Charge the
following:-
i) An authorization in the form of a legally valid document such as a power of
attorney conferring authority on the Bank to receive payment.
ii) His own acceptance of the correctness of the accounts made out as being
due to him by RITES or his signature on the bill or other claim preferred
against RITES before settlement by the Engineer-in-Charge of the account
or claim by payment to the Bank. While receipt given by such Bank shall
constitute full and sufficient discharge for the payment, the contractor
should wherever possible, present his bill duly receipted and discharged
through his Bankers.

22.7 DEDUCTION OF INCOME TAX AT SOURCE

22.7.1 Under Section 194C of the Income Tax Act, 1961, deduction of Income Tax is
required to be made at source by disbursing officers from payments made to
contractors in certain cases.

Before signing the first and final bill/running account/or the final bill, the SBU
office should see that:

i) the statutory deduction on account of income tax wherever due has been
made from the bill of the contractors and
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 ii) the same is specifically shown in the form of running and final bills forms
as described in Para 24.2.

22.7.2 It is open to the contractor to make an application to the Income Tax Officer
concerned and obtain from him a certificate authorizing the payee to deduct tax
at such lower rate or deduct no tax as may be appropriate to his case.

22.7.3 The tax deducted should be paid to the credit of the Central Government within
one week from the last day of the month in which the deduction is made.

22.7.4 RITES should issue a certificate of ‘Tax Deducted at Source’ to the contractor as
per provisions in the Income Tax Act.

22.8 DEDUCTION OF BUILDING AND OTHER WORKERS WELFARE CESS AT

SOURCE

Cess Act is a Central Legislation but is to be implemented by the State

Governments. In the Cess Act, there are provisions for deduction of cess from
contractor’s bills and depositing them with State Welfare Board. These provisions
should be followed in cases of Works in States where Building and other
Workers’ Welfare Cess Act has been brought into force.

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 SECTION - 23

ADVANCES TO CONTRACTOR

23.1 TYPES OF ADVANCES

23.1.1 Clause 10 B of Clauses of Contract deals with the subject of payment and
recovery of the following types of advances:

i) Secured Advance on non-perishable materials / items of perishable nature.

ii) Mobilization Advance.
iii) Plant & Machinery Advance.

23.1.2 The provisions in this clause should be carefully gone through and it should be
ensured that the conditions laid down are strictly complied with while paying such
advances. Special care will also have to be exercised in recovery of the principal
amount of advances as well as the interests on Mobilization Advance and Plant &
Machinery Advance. To maintain proper accountal, the payment of advances
and recovery with interest should be effected through running bills. Necessary
provision has been made in the format for running account bills to show the
breakups of different types of advances to be paid to the contractor and the
amount to be recovered from the contractor through the running bills for each
type of advance. In the case of Secured advance on Contractor’s materials,
details have to be appended to the running bills in the format specified. The
recovery of Secured ADVANCE ON materials is without interest and is linked to
the incorporation of the materials in works.

23.1.3 (a) Mobilisation Advance shall be made applicable only for specialized and
capital intensive works where estimated cost put to tender is Rs. Two
Crores and above. It shall be admissible upto 15% of the tendered value at
10% simple interest and such advance shall be released in two equal
installments on specific request of contractor as per terms of the
agreement.

(b) The second installment of Mobilisation Advance should be released only

after getting satisfactory utilization certificate from the contractor for the
first installment.
(c) The power to make provision for Mobilisation Advance in a tender
document for any particular work shall rest with the NIT Approving
Authority. In case, it is proposed to provide for mobilization advance more
than 10% of the cost of the work, prior approval of the concerned Director,
with the concurrence of finance, should be obtained before inviting the
tenders. This is in partial modification of SOP item 2.2 which had given
powers to EDs in some cases.
(d) The interest on advance shall be calculated from the date of payment to
the date of recovery, both days inclusive. In case it is proposed to provide
interest free Mobilization Advance, prior approval of the concerned
Director with the concurrence of finance should be obtained before inviting

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 the tenders. This is also in partial modification of SOP item 2.2 which has
given powers to EDs in some cases.
(e) The Mobilization Advance shall be against BGs. of a Scheduled Bank for
110% of the full amount of that installment. Number of BGs shall not
exceed three.
(f) The recovery should be commenced after 10% of work is completed and
billed. The entire amount together with interest shall be recovered by the
time 80% of the gross value of contract is executed and billed.
(g) Recovery of Mobilisation Advance at an intermediate stage should be
effected, if necessary by encashment of part B.G., if the appropriate
prorata amount of advance is not available from the work done by the
Contractor.
23.2 CERTIFICATES TO ACCOMPANY BILLS

23.2.1 The certificates as per format in Paras 23.2.2 or 23.2.3 or 23.2.4 should be
recorded by the bill signing officer and should accompany the running
accounts/final bill submitted to the Engineer-in-Charge.

23.2.2 (a) Payment to contractor “Secured Advance on non-perishable

materials”:
i) The materials for which Secured Advance is being proposed are non-
perishable, non-fragile and non-combustible.
ii) The quality of materials is as per stipulated specifications.
iii) The quantities of materials for which advance is being proposed have
actually been brought to site.
iv) The materials are adequately stored and protected against damage by
weather or other causes.
v) The materials have not been incorporated in the work.

vi) The Secured Advance can be paid upto an amount not exceeding 90%
of the assessed market value of the materials or an amount not
exceeding 90% of the material element cost in the tendered rate of the
finished item, whichever is lower.

b) Payment to contractor “Secured Advance on perishable materials”

i) The materials are covered by comprehensive insurance for their full
cost and for the period stipulated in the contract.
ii) The quality of materials is as per Specifications.
iii) The quantities of materials for which advance is being proposed have
actually been brought to site.
iv) The materials are adequately stored and protected against damage by
weather or other causes.
v) The materials have not been incorporated in the work.

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 c) Recovery from the contractor towards “Secured Advance for non-
perishable and perishable materials”
The materials have actually been incorporated in the works.

23.2.3 Payment to contractors “Mobilization Advance”

The advance is covered by a Bank Guarantee Bond from a Scheduled Bank as

specified by the Engineer-in-Charge for 110% of the Installment amount of
Advance and for the period as stipulated in the Contract.

23.2.4 Payment to contractor “Plant & Machinery Advance”

i) The Plant / Machineries have been insured for a sum adequate for their
replacement at site for the period stipulated in the Contract.
ii) The items for which advance is proposed have been hypothecated to
RITES.
iii) The items are considered necessary for the works and have been
maintained in good working condition and are available at site.

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 SECTION 24

PREPARATION, EXAMINATION, VERIFICATION

AND PASSING BILLS FOR PAYMENTS

24.1 PREPARATION OF BILLS

24.1.1 The Contractor is required to prepare the bill, in one of the forms prescribed, as
applicable in each case, for the work done by him and submit the same to the
Controlling Site Engineer.
24.1.2 Before the bill of a Contractor / Supplier is passed, the entries in the
Measurement Book relating to the description and quantities of work / supplies
should be scrutinized by the Controlling Site Engineer and the calculations of
“Contents or Area” should be checked arithmetically under his supervision. The
bill should then be checked, passed and paid in the office of the Engineer in
Charge from the Measurement Book entries.
24.1.3 Full rates, as per agreement / supply order should be allowed only if the quality of
work done or supplies made conforms to the specifications / standards as laid
down under the agreement. If the contract is determined, or an on account
payment is to be made when the contract is to run, a “part rate” as considered
reasonable may be allowed on BOQ item, with due regard to components of the
work remaining to be done under the BOQ item and general terms of the
agreement, after getting the “part rate” statement approved from the bill passing
authority.
24.1.4 In case of supplies, the payment is not permissible until the stores have been
received, examined and accepted. In case payment has been permitted on
production of despatch documents etc., the payment should be treated as
advance against the final settlement on receipt, examination and acceptance of
the stores.
24.1.5 If the contract is for a completed item of work and the Contractor has been
supplied materials of any description from RITES, necessary recoveries on
account of the cost of the materials supplied to him by RITES should be effected
from each bill at the recovery rates fixed for the purpose.
24.2 FORMS OF BILL FOR PAYMENT

24.2.1 The authorized forms of bills to be used for payment to contractors/ suppliers and
their utility are described below:-

a) First and Final bill form should be used for making payments both to
contractors for work and to suppliers, when a single payment is made for a
job or contract i.e. on its completion. A single form may be used for
making payments to several payees, if they relate to the same work /
section of work or to the same head of account in the case of suppliers.
RITES Form referred to in Para “b” below may be adopted for First and
Final Bill also.
b) Running Account Bill / Final Bill RITES FORM - (Copy at Annexure 24.1)
This form is used for all running and final payments to contractors and
suppliers (other than those relating to lump sum contracts) including cases
where advance payments are proposed to be made or are already
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 outstanding in respect of the same work against the contractor. In case
where advances are to be made or are already outstanding in respect of
the same work against the contractor, account of such advances, should
be attached to the bill as per relevant Annexure in the Form of RITES.
24.3 AUTHORITIES TO PASS THE BILLS

Payment of the Running Bills will be processed by the Project Coordinator who
will attend to the queries, if any, of the Accounts Section. The Final Bills will also
be processed by the Project Coordinator in a similar manner. Payment of
Running Account Bills as well as the Final Bill will be approved by the Engineer-
in-Charge. When Engineer-in-Charge is lower in rank to the SBU Head,
intimation of payment of RA Bills as well as the Final Bill should also be sent to
the SBU Head.
24.4 PAYMENT FOR WORK DONE

Payment for work done or supplies made on running account should be made
periodically on submission of the bill by the contractor / supplier as per provisions
in Clause 7 of Clauses of Contract read with Special Conditions.

24.5 DEVIATION STATEMENT

Deviation Statement in the Proforma at Annexure 24.2 should be submitted with
every running bill starting from the bill when gross value of work done exceeds
50% of Contract Value and with final bill.

24.6 BANK GUARANTEES - CHECK AND CUSTODY

Guidelines on Check and Custody of Bank Guarantees furnished by the

Contractors are at Annexure 24.3

24.7 DOCUMENTS TO ACCOMPANY BILLS

Documents to accompany running account bills are listed at Annexure 24.4 and
those for final bills at Annexure 24.5.

24.8 CHECK OF BILLS AT SBU OFFICE

Check list of items to be scrutinised by SBU office on the running account bills is
at Annexure 24.6 and that for final bill at Annexure 24.7.

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 SECTION 25

QUALITY ASSURANCE AND CHECK LISTS

25.1 INTRODUCTION

(1) The Quality Assurance activity has to ensure a progressively improved and
uniform quality of finished work. 'Process Control' is essential in building
construction to ensure that the work in different phases is executed in a
manner predetermined and laid down in specifications. In order to achieve
above, the pre-requisites cover among other things, an inbuilt provision in
the contract for a system of continuous check on quality by the field staff
and the contractor.
(2) Maintenance of quality has to be imbibed in the minds of the contractor as
well as the field staff of RITES. It is better to have a system in which
quality of work is achieved during the construction stage itself, rather than
indulge in ‘fire fighting’ activities after the damage has been done, by way
of post-construction ‘quality control.’
25.2 QUALITY ASSURANCE PLAN

A Quality Assurance Plan has to be a part of the tender documents. This shall
indicate all the required tests to be done during the construction stage, all the
relevant and applicable Codes, Specifications and Standards, as well as
acceptable criteria for each relevant item of work, materials used and the
processes employed. All these have to be checked/tested periodically at the
required intervals by the contractor and the RITES field staff and the reports shall
have to be signed by the contractor as well as field staff. Copies of all such
reports at various stages shall be appended with each running bill and the final
bill, failing which no payment shall be released to the contractor. The Engineer in
Charge shall, not be absolved of his responsibility to ensure that the ‘Quality
Assurance Plan’ is complied with in every work under his charge.

25. 3 METHODS STATEMENT

In all major works of contract costing more than Rs. 10 Crores, provision shall be
made in the tender documents for the contractor to submit a 'Methods Statement
for approval of Engineer-in-charge, soon after the award of work to him. The
"Methods Statement" is a statement by which the construction procedures for
important activities of construction are stated, checked and approved. The
‘Method Statement‘ should have a description of the item with elaborate
procedures in steps to implement the same, the specifications of the materials
involved, their testing and acceptance criteria, equipments to be used,
precautions to be taken, mode of measurements etc.
25.4 RESPONSIBILITY FOR QUALITY ASSURANCE
The direct responsibility for ensuring proper quality of work as per approved
specifications rests with the field staff. The Engineer-in-Charge shall be overall
responsible for management of Quality System and Procedures for the works
under his charge. The power of acceptance of substandard work delegated to the
Engineer-in-Charge should be used sparingly and under exceptional
circumstances as emphasised under para 14.2 of this Guidebook.
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25.5 CHECKLISTS

(1) The Controlling Site Engineer should ensure that members of his
construction team, as well as the contractor’s supervisors-in-charge are
fully aware of the specifications and method of execution of any new/fresh
item of work to be taken up in the next 2 weeks. The field staff shall carry
the required field testing instruments to ensure on-site quality assurance
check on a regular basis and to enable senior officers to conduct checks
during their site visits.

(2) ‘Checklists of Specifications for Civil Engineering Works for Quality

Control' have separately been issued to all RITES officers and staff. As
and when any item is taken up for execution, the field staff should go
through the check list and answer each and every query there in. If answer
to any query is in the negative, suitable remedial measure should be taken
at the process stage itself.

(3) To avoid dampness and leakage, the Controlling Engineer shall ensure
that necessary tests are carried out for proper slopes of canopies, chajjas,
terracing, drainage arrangements, water tightness of expansion joints,
joints in the water supply, drainage and sanitary works before these are
covered/concealed and also ensure rectification of defects noticed.

(4) As early as possible after award of work, full-scale sample should be

prepared for repetitive items. Such samples should be approved by the
Engineer-in-Charge. Some examples are
(i) Sample quarter for residential areas
(ii) Sample unit like corridors, toilet, room in case of non-residential
areas
(iii) AC ducts/AC grills
(iv) Window grills with or without coolers and ACs
(v) False ceiling
(vi) Shafts
(vi) External and internal finishing
(viii) Electrical switch board/electrical fittings/points
(ix) Kitchen
(x) Door/window fittings etc.

25.6 TESTING LABORATORY

(1) In all major works of contract costing more than Rs 10 Crores, the
contractor shall be required to establish complete field testing laboratory
and arrange all the relevant codes and standards. The list of such testing
equipments, codes and standards shall be specified in the tender
documents. The contractor shall also provide the minimum staff, as
specified, for quality assurance.
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(2) Need also arises for carrying out specialised tests, physical, chemical,
ultrasonic, X-ray and various other types of tests which cannot possibly be
carried out in a site laboratory. Such tests may be got carried out in
approved laboratories in Govt. Sector, Semi Govt sector or in private
sector. In case of laboratories in private sector, past record and reputation
of the laboratory must invariably be given due consideration before
approval by the Engineer-in-Charge.

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 SECTION 26
CHIEF TECHNICAL EXAMINER’S ORGANISATION AND
COMMON IRREGULARITIES OBSERVED

26.1 FUNCTIONS OF CTE ORGANISATION

The Chief Technical Examiner’s Organisation is the technical wing of the Central
Vigilance Commission. The Chief Technical Examiner’s Organisation conducts
inspections of works of RITES from the vigilance angle on its own or on a
complaint being received by/referred to them. The inspections can be carried out
by them for works of any magnitude.

26.2 RETURNS

26.2.1 In order to facilitate selection of work for inspection, a quarterly return has been
prescribed for submission to them giving the list of works in progress. These
returns are consolidated for various units of RITES and sent to CTE. The returns
indicate clearly the name and address of Engineer-in-Charge under whose
charge the work is being got executed. The Quarterly Progress Reports are to
include all civil works where accepted tender value exceeds Rs. Five Crores,
electrical works exceeding Rs. One Crore and horticulture works exceeding Rs.
Ten Lacs and these are to be submitted on separate sheets for civil, electrical
and horticultural works. These returns are required to be submitted for quarters
ending March, June, September and December.

26.3 INSPECTION BY CTE

26.3.1 Intimation regarding the inspection/examination of works by CTE is sent by him

to the Engineer-in-Charge concerned with a copy to CVO/RITES well in advance.
In order to enable the inspection to be carried out property, various documents
relevant to the work are generally asked for by CTE to be kept ready at site. A list
of such documents is given in Annexure 26.1. This list is not
exhaustive/comprehensive. Any other record considered relevant for inspection
can be called for by CTE.

26.3.2 The inspection reports are sent by CTE to the Engineer-in-Charge concerned,
which the Engineer-in-Charge shall reply within 30 days or the period mentioned
in the letter. Any matter of serious nature or such matters pertaining to sanctions
of estimates, NITs, acceptance of tenders etc. dealt by higher officers may be
referred by CTE for reply directly by the higher officers. In respect of such paras,
the Engineer-in-Charge shall send his comments, if required by the higher
officers, to the concerned officer and not directly to CTE.

26.3.3 In order to expedite replies and settle the points and to ensure timely action, it is
essential that the time limit fixed by CTE is strictly adhered to by the officers of
RITES at all levels. For keeping a proper watch on the disposal, the Engineer-in-
Charge shall maintain a register.

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26.4 RECOVERIES OF OVERPAYMENTS POINTED OUT BY THE CTE

26.4.1 Normally the recoveries of over payments pointed out by the CTE should be
made within a period of three months from the date of issue of memorandum by
CTE. The overpayments arising out of the defects pointed out by the CTE should
be promptly assessed and if accepted by the Engineer-in-Charge, the recoveries
should be effected from the money due to the contractor either from the same
work from the immediate running bill or from any other work or from the security
deposit. In no case, action to recover the overpaid amount should be kept
pending or kept in abeyance on account of the case being before the arbitrator.
Action in terms of the award can be taken after the award is received and
accepted by the competent authority. Recoveries/adjustment of the amount in
question should, in no case, be effected by debiting the amount to RITES
account. In order that the recoveries of over payments pointed out by CTE are
promptly effected, a register of over payments pointed out by the CTE
Organisation and subsequent recoveries effected should be maintained by the
Engineer-in-Charge in the proforma given at Annexure 26.2.

26.4.2 Although the inspection of CTE is a part of the activities relating to the Works
Contract with the Contractor, yet the CTE is not a party to the contract. No
reference should be made to CTE’s inspections/examinations of works in any
correspondence made with the contractor. Notice for rectification of defects,
recoveries to be made etc. shall be issued by the Engineer-in-Charge, who is the
party to the contract, acting for and on behalf of RITES.

26.5 COMMON IRREGULARITIES POINTED OUT BY THE CTE

A compilation of common irregularities pointed out by CTE during examination of
projects handled by RITES and other similar Government Organisations is at
Annexure 26.3 for guidance.

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 SECTION 27

OPENING, CUSTODY AND FINAL DISPOSAL OF

ESSENTIAL PROJECT DOCUMENTS

27.1 PREAMBLE

27.1.1 The successful execution of any project depends to a large extent on the proper
maintenance of essential records till all final accounts are settled with the Client,
sub consultants, if any, and contractors. Some of the documents or records will
be required to be opened and maintained, some in SBU Office and some in Field
Offices. The documents will be required to be retained for a specified period,
depending on the type of document, as stipulated in Annexure19.5 of this Guide-
book. The documents pertaining to projects where there are arbitration or court
cases have to be retained till the cases including appeals are settled. A proper
system has also to be evolved for periodic review and weeding out of documents
for which the stipulated period for retention has expired.

27.2 COMMON DEFICIENCIES OBSERVED IN SYSTEM OF MAINTENANCE AND

DISPOSAL OF RECORDS

i) No uniform system on numbering/name of file and the officer at different

stage responsible for maintenance/custody of files.

ii) Non-maintenance of Index of Documents resulting in problems in retrieval

of relevant documents, even if they are available.

iii) Site office documents not sent to Project Office on completion of works
and even in cases where sent to Project Office, sent without any index of
such documents.

iv) No systematic weeding out of old documents resulting in uneconomic

usage of storage space.

27.3 PROCEDURE ORDER ON OPENING, CUSTODY AND FINAL DISPOSAL OF

ESSENTIAL PROJECT DOCUMENTS

Printed Manual of Office Filing System had been issued in March 2005 indicating
the procedure to be adopted in maintenance and disposal of records pertaining
to projects. This has now been rationalised and the Procedure Order on
“Opening, Custody and Final Disposal of Essential Project Documents” is given
at ANNEXURE 27.1.

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 SECTION 28

PERFORMANCE OF CONTRACTORS

28.1 In order to ensure that contractors whose contract has been determined by
RITES and those contractors who have record of poor performance such as
abandoning the work, not properly completing the project, inordinate delay in
completion, litigation history or financial failures etc. in RITES’ one division / SBU
do not get prequalified for a work in some other Division / SBU of RITES, all SBU
Heads are required to periodically review the performance of contractors on all
on-going projects and in case they are of the opinion that some contractors are
performing poorly and that entrusting another project to them would stretch their
resources and affect the progress of current project(s), they should process the
case for declaring such contractors as poor performers.

28.2 In this connection, so far as those contractors are concerned whose contract has
been determined by RITES, they would be deemed to be poor performers in
terms of Clause 3(a)(i) of GCC. The case of such contractors should be sent by
the SBU Head to the Divisional Head for declaring them as poor perfomers and
placing their name in the ‘Negative List of Contractors’. The Divisional Head
would declare such a contractor as a poor performer and place his name in the
‘Negative List of Contractors’.

28.3 In the case of other contractors, the SBU Head should cause a notice to be issued
by the Engineer-in-Charge to the contractor in terms of Clause 52.7 of GCC. In
case no reply is received in response to the notice within the notice period or the
reply received is not satisfactory, the SBU Head would send his
recommendations giving full justification for declaring the contractor as a ‘poor
performer’, to the Divisional Head

28.4 After considering the recommendations of SBU Head, if the Divisional Head is
satisfied about the poor performance of a contractor, he would approve the name
of such a contractor to be declared as a ‘poor performer’ and placing his name
on the ‘Negative List of Contractors’.

28.5 After approval of Divisional Head on placing a contractor on the `Negative List of
Contractors’ the SBU Head shall inform the contractor in writing about the
decision to declare him as a `Poor Performer’ and placing him on the `Negative
List of Contractors’ for the specified period.

28.6 The Divisional Head would send the names of such contractors to the Contract
Policy Cell which will maintain the ‘Negative List of Contractors’ and arrange for
uploading the same on RITES’ website so that the ‘List’ is accessible only to
RITES’ officials. In future, every Tender Committee will be required to certify that
the bidder(s) recommended by them is/are not on RITES’ Negative List of
Contractors. In case of Joint Venture contractors in the Negative List, the JV as

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 well as individual members of JV shall not be considered for future works in
RITES till their names are taken off from the Negative List.

28.7 The Negative List will be reviewed at the beginning of every financial year and the
Divisional Head may consult the SBU concerned before removing the name of a
contractor from the Negative List. However, a contractor’s name will be
automatically removed from the ‘Negative List’ at the end of two years from the
date the name is placed on the list.

28.8 It is to be noted that disqualification for a particular tender and banning of

business dealings with an agency, are two different matters. The guidelines on
banning of business dealings are given at Annexure A to RITES’ Tender and
Contract Document for Works.

28.9 Banning of Business Dealings : The guidelines for banning of business dealings
are given at Annexure A to the Integrity Pact with Bidder/Contractor which is
available as Annexure VIII to RITES’ Tender and Contract Document for
Works. The procedures laid down therein for ‘Suspension of Business Dealings’
and for ‘Banning of Business Dealings’ need to be followed meticulously.

28.10 In order to ensure that there is no legal lacuna in the processing of cases relating
to Suspension/Banning of Business Dealings and in communicating with the
bidder / contractor in this regard, standard proformae for the ‘Show-cause
Notice’ and for conveying the decision of the competent authority for
Suspension/Banning of Business Dealings have been prepared and these are
given at Annexures 28.1, 28.2 and 28.3 for guidance.

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 SECTION 29

E-TENDERING

29.1 INTRODUCTION OF E-TENDERING IN RITES

29.1.1 The system of e-Tendering has been introduced in RITES Ltd. through National
Informatics Centre (NIC).

29.1.2 E-Tendering system shall be applicable for works having estimated cost put to
tender more than Rs. 10 Lakhs.

29.1.3 At present the Application Service Provider (ASP) is NICSI/NIC through Central
Public Procurement Portal (URL: https://etenders.gov.in/eprocure/app). User’s
manual for bidders has been hosted on this web page by ASP.

29.1.4 ASP is available through RITES IT Department to provide support for supply of
documentation covering 'User Manual' and ‘Vendor Manual’ for implementation
of the system along with required training to RITES officials and interested
contractors.

29.1.5 It is mandatory for all bidders to have Class – III Digital Signature Certificate
(DSC) in the name of the person who will sign the bid from any of licensed
Certifying Agency (CA). Bidders can see the list of licensed CAs from the link
http://www.cca.gov.in. Subsequently, bidders are required to get the same
registered with ASP.

29.2 DIGITAL SIGNATURES

29.2.1 All the concerned officials of RITES Ltd. shall have to obtain Class – III Digital
Signature Certificate (DSC) by forwarding their applications in the form available
at URL http://ritesltd.com/upload/misc/DSC_reg_form_4.4.pdf through their SBU
Head to IT Department, RITES.

29.2.2 The Digital Signature Certificate (DSC) shall be valid for a period of 2 (Two)
years.

29.2.3 Each SBU Head shall act as System Administrator. He may nominate an officer
not below the rank of Assistant Manager (Regular) to act on his behalf.

29.2.4 In case of transfer of nominated RITES official dealing with the tender process,
the System Administrator / SBU Head shall immediately nominate another official.

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 The new incumbent if not in possession of digital signature, has to obtain the
same as explained in para 1 above.

In case the new incumbent already has digital signature, then details of his
digital signatures like name & user ID need to be intimated to System
Administrator of concerned SBU or his authorized representative for updating so
as to enable him to use E-Tendering system.

29.2.5 Updating of Digital Signature - To update Digital Signature Certificate to

individual user ID, the officer concerned should send a mail to the System
Administrator of concerned SBU or his authorized representative mentioning
Name and User ID for reference.

29.2.6 Change of password - After login to the e-Tendering portal the user can change
the password by clicking on “My Profile -> Change Password”.

29.2.7 To retrieve the lost password - A mail to the e-mail ID of the System
Administrator of concerned SBU or his authorized representative shall be sent
mentioning name and user ID to retrieve the lost password.

29.3 PREPARATION OF BID DOCUMENT

29.3.1 Relevant paras of Section 4 for Preparation of Estimate and Section 6 for
preparation of Tender Documents of these Guidelines should be referred to. The
Project Co-ordinator and his team will be responsible for correctness of the
formulae adopted in BOQ.

29.3.2 Templates / Formats for various types of financial bids like percentage rate
tenders, item rate tenders and combination of both are available on the CPP
Portal of NICand may be adopted.

29.3.3 For each work, the SBU Head shall nominate on the hard copy the Tender
Creator and Tender Reviewer (Project Coordinator). Tender Approver will be the
authority competent to approve tender document as per SOP.

29.3.4 The tender preparing officer is Tender Creator online. The Tender Creator shall
prepare the tender on hard copy and submit the same to Project Coordinator.
The Project Coordinator shall obtain the approval of Tender Document from the
Competent Authority on hard copy. During this process, the Project Coordinator
shall get the modifications / changes suggested by him or by higher officials or by
Tender Approving Authority, incorporated by Tender Creator in tender document.
The system authorizes only the Tender Creator to make modifications in the
tender created by him. After incorporating all changes / modifications, the Tender
Creator shall submit the tender to Tender Publisher (i.e, tender document
approver) online and if Tender Publisher finds the tender document to be okay,
Tender Publisher will publish the same online. If Tender Publisher finds anything
to be modified, he can not modify the same online. He has to send the tender
document back to Tender Creator. The Tender Creator will modify the tender
document accordingly and shall submit the same to Tender Publisher. In cases
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 where tender document approving authority is above SBU Head rank, the
approval for tender document shall be taken on hard copy and SBU head shall
act as tender approver (i.e, Tender Publisher) online.

29.3.5 The list of documents to be scanned and uploaded by the intending bidder shall
be as per Clause 28.0 of Notice Inviting Tender. However if any, clarification in
documents/deficient documents are required then the same can be sought from
the bidder by Convenor of the Tender Committee. In the cases, where Convenor
of Tender Committee is not associated with the work for which tenders are
invited, Project Coordinator shall assist Convenor of Tender Committee to seek
clarifications from the bidder. The clarifications/deficient documents can be
obtained from bidders online only once. In case, the clarifications/deficient
documents are to be obtained more than once, the same shall be done through
e-mail by concerned officials. The clarifications/deficient documents shall not be
obtained by post/courier.

29.3.6 To avoid failure of system to download the bids submitted by the contractor, it is
suggested that opening of bids during rush hours should be avoided. Opening
time of bids may be kept early in the morning as far as possible.

29.4 PUBLICITY

29.4.1 Time limit for publicity of bids shall be as per the provisions of Para 6.10 of these
Guidelines.

29.4.2 Specimen Press Notice for publication in News Paper:

In case of e-Tendering there is no necessity to publish a large size Press Notice

in News Papers. Only a condensed form of Notice Inviting e-Tenders is to be
published in leading News Papers as per Para 6.6 of these Guidelines for wide
publicity as mentioned below:

RITES LTD

Notice Inviting e-Tenders

The ………… (Designation of the Officer), RITES Ltd. invites on behalf

of …………………. online item rate / percentage rate / combination of item rate &
percentage rate / lump sum bids on single / two packet system for the following work(s):-

1. NIT No. ……………………Name of Work………………..Estimated Cost

Rs……………. Earnest Money………Period of completion…………….Last time & date of
submission of bid………….

2. NIT No. ……………………Name of Work………………..Estimated Cost

Rs……………. Earnest Money………Period of completion…………….Last time & date of
submission of bid………….

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The bid forms and other details can be obtained from the website
https://etenders.gov.in/eprocure/app

Addendum / Corrigendum, if any, shall be hosted online only

The press notice should not be published in the tabular form, which occupies much more
space than required and ultimately increases the cost of advertisement.

29.5 UPLOADING OF BID DOCUMENT

29.5.1 All the documents such as NIT including Information and Instructions for
contractors, all the conditions of NIT, Schedule of Quantities, Drawings and other
documents shall be uploaded at one time.

29.5.2 System Administrator of concerned SBU or his authorized representative shall

enter the names and other required particulars of Tender Creator and Tender
Publisher for every tender in the E-tender system.

29.5.3 Deleted.

29.5.4 Deleted.

29.5.5 Under no circumstances bid document is to be got uploaded through Application

Service Provider (ASP). In case of any difficulty, concerned officials can seek
assistance from IT Department, RITES or ASP.

29.5.6 The tenders can be published online from 9.00 AM up to 6.55 PM on any day
between Monday to Saturday.

29.5.7 There should be a minimum gap of 24 hours between Bid submission End Time
& date and Bid Opening Time & date.

29.5.8 The bid submission end date or Bid opening date should not fall on Sunday

29.5.9 As per Clause 6.1 of Notice Inviting Tenders and Instructions to Tenderers the
tender document can be modified by RITES by issue of addenda/corrigenda till
seven days prior to the deadline for submission of tenders. However, the System
does not permit the Financial Bid to be modified after the Bid Submission Start
Date and Time. Therefore, if any modification is to be made in the Financial Bid,
it has to be done before commencement of Bid Submission Start Date and Time.
The Financial Bid can be changed / modified through addenda/corrigenda by
Tender Creator and Tender Publisher only up to the start of the Bid submission
time and date. The Financial bid cannot be changed/modified once the Bid
submission time and date start. However, extension of the deadline for
submission of tenders may be given at any time before Bid opening date and
time.

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29.6 ADDENDUM / CORRIGENDUM OF BID

29.6.1 Addendum / Corrigendum shall be hosted online only.

29.6.2 The Project Coordinator shall obtain the approval for any addenda / corrigenda
from competent authority on hard copy. The Tender Creator shall make
Addendum / Corrigendum part of tender and forward it to Tender Publisher online
for publishing.

29.7 OPENING OF BIDS

29.7.1 Four officials shall be named for opening of the tender as Tender Openers by the
tender approver (Tender Publisher) at the time of creation of tender. In case
where tender approver (as per SOP) is above SBU Head level, SBU Head shall
name the four officials. Out of those four officials, two shall be nominated (on or
before the Bid Opening Date) by the SBU Head / Project Coordinator as Tender
Openers for opening the tender using their Class-III DSC.

29.7.2 The Tender Openers shall be RITES’ Regular officers not below the rank of
Engineer

29.7.3 The bids opened are to be entered in the bid opening register. The bid opening
register should contain details like 1. Name of Work 2. Tender Number. 3. Form
of bid such as item rate bid, percentage rate bid or lump-sum bid 4. Time & Date
of Opening 5. Name of Bidder 6. Name of representative of bidder attended 7..
Signature of representative of bidder 8 Name & Designation of Opener. Dated
Signature of opener.

29.7.4 Bids withdrawn before opening not to be considered

If the bid is withdrawn before due date & time of opening, the same should not be
included in the Comparative Statement.

29.7.5 Tender Openers should download schedule of quantities of each bidder duly
filled by the bidder and the Comparative Statement. They both shall sign/initial on
each sheet downloaded and the same shall be numbered serially.

29.7.6 Tender Openers should download all the documents specified in Clause 28.0 of
NIT of all the bidders. They both shall sign/initial on each sheet downloaded and
the same shall be numbered serially.

29.7.7 OPENING OF FINANCIAL BIDS

In Single Packet System, the Financial Bids are opened along with the Technical
Bids. In the case of a Two Packet System, after decision on recommendations of
Tender Committee on the Technical Bids, Financial Bids in respect of only those
Tenderers whose Technical Bids are found to be acceptable or provisionally
acceptable shall be opened on a date to be fixed and advised in writing to the
Tenderers concerned. The Tenderers whose Bids have been provisionally
accepted should be clearly advised that their prequalification is only provisional

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 and will be subject to receipt of deficient documents/confirmation of credentials
from past Clients/Bank. This may be done through e-mail to e-mail id given by
bidder on CPP portal while submitting tender.

It may be ensured that Tenderers whose technical bids have not been found
acceptable in the 2 pocket system are intimated to that effect mentioning on
which ground the bidder did not qualify before opening of Financial Bids of
Tenderers whose Technical Bids are found acceptable. This may be done
through e-mail to e-mail id given by bidder on CPP portal while submitting tender.

On CPP Portal Tender Evaluation process should be completed online by

mentioning “provisionally Qualified subject to receipt of deficient
documents/confirmation of credentials from past Clients/Bank” or “ Not Qualified
in ----------------- criteria” against each bidder as the case may be. Further “ Result
of Technical Bid Evaluation and Opening of Financial Bids” should be uploaded
on CPP Portal mentioning Name of work, Tender Number, Bidders who are
provisionally Qualified and whose financial bids will be opened, bidders who did
not qualify mentioning on which ground the bidder did not qualify and Time &
Date of Financial Bid Opening. The Provisionally Qualified bidders may be asked
to attend the opening giving the address at which financials bids are scheduled to
be opened. Scanned copy of TC Minutes on Technical Bid Evaluation should not
be uploaded on CPP Portal.
29.8 PREPARATION / CHECKING OF COMPARATIVE STATEMENT

29.8.1 When the Comparative Statement is generated automatically by the system,

there is no need for getting it vetted by Finance. However, if for any reason, the
system is unable to generate the Comparative Statement, the same shall be got
prepared by the Project Co-ordinator from one of his staff members and got
checked by another staff member. Both the staff members shall write on each
page ’Prepared By’ and ‘Checked By’ respectively and sign over their full name.
The Comparative Statement shall then be got vetted from Finance. The bids and
related papers must be kept under lock & key by the bid opening officials till
these are handed over to Project Coordinator for further necessary action.

29.8.2 Procedure for dealing with ambiguities in rates:

If there are differences between the rates given by the bidder in words and in
figures or in amount worked out by him, the following procedure shall be followed:

a. In e-Tendering intending bidder can quote his rates in figures only. The rates
in words, amount of each item and total is generated automatically.
Therefore, the rate quoted by the bidder in figures is to be taken as correct.

b. In the case of percentage rate bid also, the bid percentage quoted in figures
is to be taken as correct.

c. Corrections, if any, in the comparative statement should be carried out neatly

and clearly, and initialed by the person making the corrections. In case of

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 corrections in the comparative statement, the same shall be attested by the
authorized officer in Finance Division.

d. For credit items (The items for which contractor has to pay to Employer), the
bidder should not put minus/Plus sign as prefix to rate. They should be
instructed to quote their rate without prefix (Either Negative or Positive) in
item rate tender. In Percentage rate tender, the bidder shall be instructed to
choose either Excess or Less over rate given in the financial bid. All credit
items should be clubbed together and put in a separate sub-head at the end
of respective BOQ.

29.9 EVALUATION OF BIDS

29.9.1 This shall be as per relevant provisions in Section 8 of these Guidelines.

29.10 COST OF TENDER DOCUMENT

29.10.1 In E-Tendering the tenders are not being physically sold to the bidders, however
the cost of tenders shall be kept keeping in view the number of documents to be
downloaded. Hence following scale of charges shall be applicable to the bidders:
-

a. Works costing up to Rs.1 crore: Rs.2500/-.

b. Works costing more than Rs.1 crore and up to Rs.10 crores, Rs.7,000/- (minimum)
and Rs.10,000/- (maximum) depending on the number of documents to be
downloaded.

c. Works costing more than Rs.10 crores, Rs.12,000/- (minimum) and Rs.18,000/-
(maximum) depending on the number of documents to be downloaded.

29.11 EARNEST MONEY DEPOSIT (EMD)

29.11.1 The bids shall be accompanied by Earnest Money Deposit (EMD) amounting to
1% of the estimated cost subject to a maximum of Rs.25 lakhs in any one of the
following forms :

Banker’s Cheque / Pay Order / Demand Draft issued by any Scheduled

Commercial Bank drawn in favour of RITES Ltd. and payable at Gurgaon /
Delhi /______

29.12 Request for unconditional extension of bid validity from bidders shall be sought
by Project Coordinator through e-mail

29.13 Regarding exemption from payment of Cost of Tender Document and Earnest
Money Deposit, para 8.3.2 (iii) of these Guidelines may be referred to.

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 GUIDELINES
ON

CONSTRUCTION PROJECT
MANAGEMENT

ANNEXURES
 GUIDELINES ON
CONSTRUCTION PROJECT MANAGEMENT
APRIL 2019

INDEX
LIST OF ANNEXURES
Annexure SUBJECT PAGE
No. No.
2.1 Agreement between the CLIENT and RITES Ltd. 190
5.1 Proforma for Amendment to the Contract Agreement 207
5.2 Lumpsum Contract 208
6.1 Guidelines for Calling and Accepting Quotations instead of 211
Tenders
6.2 Nomination of Tender Committee- Procedure for Calling and 212
Acceptance of Single Tender
6.3 General Guidelines for fixing requirement of Technical staff 213
for a work
6.4 Typical Press Notification on Notice Inviting Tender 215
6.5 Qualifying Criteria for Works Contracts 216
8.1A Comparative Statement – Item Rate Tender 220
8.1B Comparative Statement – Percentage Rate Tender 221
8.2 Form of Letter of Acceptance 222
8.3 Form of Agreement 224
8.4 Time Limit for Finalization of Tender (Two Packet System of 226
Technical Bid and Financial Bid)
8.5 Ministry of Micro, Small and Medium Enterprises, Order dated 227
23.03.2012 of Development Commissioner MSME, duly
amended as per F.No 21(8)/2018-MA dated 09.11.2018
8.5A Ministry of Finance, Department of Expenditure, Procurement 231
Policy Division OM dated 25.07.2017
8.6 Format of Tender Opening Register 232
10.1 Form of Guarantee Bond to be executed by Contractors for 234
removal of defects after completion in respect of Water
Proofing Works
10.2 Form of Guarantee Bond to be executed by Contractors for 236
removal of defects after completion in respect of Anti-termite
Treatment works
12.1 Proforma for Letter to be issued by Engineer in Charge to the 237
Contractor in cases of Failure by Contractor under Clause 3
of Contract to Rectify / Reconstruct / Replace any Defective
Work
12.2 Proforma for Letter to be issued by the Engineer-in-Charge to 239
the Contractor in cases of Failure by Contractor under Clause
3 of Contract to lift Suspension of Work / To proceed with the
work with due Diligence
12.3 Proforma for Letter to be issued by the Engineer-in-Charge to 240
the Contractor in cases of Failure by Contractor under Clause
3 of Contract to Accelerate the Progress of Work for
Completion by the Stipulated Completion Date

186
12.4 Proforma for Letter to be issued by the Engineer-in-Charge to 241
the Contractor in cases of Failure by Contractor under
Clause 3 of Contract to carry out his obligations under the
Contract
12.5 Proforma for Letter to be issued by the Engineer-in-Charge to 242
the Contractor on Determination of Contract under Clause 3
of Contract
12.6 Proforma for Letter to be issued by the Engineer-in-Charge to 244
the Contractor on Foreclosure of Contract under Clause 13 of
Contract
12.6A Proforma for letter to be issued by the Engineer-in-charge to 246
the Contractor if due to default of the Contractor, part work /
part incomplete work is proposed to be taken out of his
hands, under Clause 14 of Contract
12.6B Proforma for letter to be issued by the Engineer-in-charge to 248
the Contractor in case action is finally proposed to be taken
against the Contractor under Clause 14 of Contract
12.7 Proforma for Letter from the Site Engineer on behalf of 250
Engineer-in-Charge to the Contractor for Rectification of
Defects during the Maintenance Period under Clause 17 of
Contract
12.8 Proforma for Provisional Certificate of Physical Completion to 251
be issued by the Engineer-in-Charge
12.9 Proforma for Final Completion Certificate to be issued by the 252
Engineer-in-Charge
12.10 Proforma for letter to the State Government Mining 253
Department
13.1 Form of Application by the Contractor for seeking Extension 254
of Time
13.2 Proforma for Grant of Extension of Time- (Advance intimation 258
Pending Decision on Levy of Liquidated Damages)
13.3 Proforma for Grant of Extension of Time – Without Levy of 259
Liquidated Damages
13.4 Proforma for Show Cause Notice to the Contractor regarding 260
Compensation under Clause 2 In case Termination of
Contract is not Contemplated.
13.5 Proforma for intimating the Contractor regarding Levy of 261
Compensation under Clause 2. (Applicable to both cases of
Contract being allowed to be Continued or Terminated).
13.6 Proforma for Show Cause Notice to the Contractor regarding 263
Compensation under Clause 2 (in case Contract is
determined under Clause 3)
14.1 Specimen of Letter by Engineer-in-Charge to Contractor for 264
Provisional Reduction in Rate for Substandard work
14.2 Specimen of Letter of Acceptance by the Contractor of 265
Provisional Reduction of Rate for Substandard work
MANDATORY TESTS – CPWD SPECIFICATIONS
(Annexures 16.1 to 16.9)
16.1 Mortars 266
16.2 Cement Concrete Work 268

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 16.3 Reinforced Cement Concrete Work 269
16.4 Brick Work 272
16.5 Marble Work 273
16.6 Wood Work 274
16.7 Steel Work 275
16.8 Flooring 276
16.9 Road Work 277
16.10 Extracts from IS 456-2000 280
16.11 Extracts from Chapter 5 of CPWD Specifications on RCC 288
Work
19.1 Contractor’s Notice for Appointment of Arbitrator 294
19.2 Letter of Appointment of Arbitrator 295
19.3 Letter of Appointment of Alternate Arbitrator 296
19.4 Letter to Contractor on Acceptance of Arbitration Award 297
19.5 Norms for Disposal of Old Records 298
FORMS FOR RECORD TO BE MAINTAINED
(Annexures 20.1 to 20.14)
20.1 Site Order Book 302
20.2 Inspection Record 303
20.3 Hindrance Register 307
20.4 Daily Progress Record 308
20.5 Cement Register 309
20.6 Steel Reinforcement Register 311
20.7 Non-Conforming Items Record 313
20.8 Quality Audit Record 314
20.9 Site Coordination Meetings Record 315
20.10 Guarantee Bonds Record 316
20.11 Insurance Policies Record 317
20.12 Drawings Record 318
20.13 Mandatory Tests and Non-Mandatory Tests Record – 319
Specimen Format for Cement
20.14 Paints / Chemical Register 320
21.1 Register of Measurement Books 321
21.2 Guidelines on Recording of Measurements and Test 322
Checking
21.3 Proforma for Write Off of Lost MB 324
21.4 Format for Measurement Book 325
21.5 Format for Abstract of Measurement to be recorded in MB at 334
the end of details of measurements recorded for any Bill.
21.6 Format of Test Check Statement 336
22.1 Register of Payment of Bills to Contractors 338
24.1 Format for Running Account Bill and Final Bill 339
24.2 Deviation Statement 354
24.3 Guidelines on Check and Custody of Bank Guarantee 359
submitted by the Contractor
24.4 Documents to accompany Running Account Bills 361
24.5 Documents to accompany Final Bill 366
24.6 Checklist for check at SBU Office before passing of Bill 369
(Running Account Bill)

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24.7 Checklist for check at SBU Office before passing of Bill (Final 373
Bill)
26.1 List of Documents considered essential for Inspections by 376
CTE and which may be called for Examination of Work
26.2 Register showing over Payment assessed / pointed out by 378
CTE Organisation and subsequent recoveries effected
26.3 Common irregularities pointed out by CTE 379
27.1 Procedure Order on Opening, Custody and Final Disposal of 387
essential Project Document.
28.1 Proforma for letter by Engineer-in-Charge to the contractor for 399
issue of show cause notice under clause 8 of Guidelines on
Banning of Business dealings
28.2 Proforma for letter by Engineer-in-Charge to the contractor on 400
Suspension of Business dealings
28.3 Proforma for letter by Engineer-in-Charge to the contractor on 401
Banning of Business dealings

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 ANNEXURE 2.1
(Refer Para 2.1)

AGREEMENT BETWEEN _____ (CLIENT) AND RITES LTD. FOR _____ ( WORK)
THIS AGREEMENT MADE ON THIS ____ day of __________ between
________________ having its Office at ________________________________
represented by its ___________ (hereinafter referred to as the “CLIENT”) which
expression shall wherever the context so admits or requires include its successors and
assigns of the ONE PART and the RITES Ltd., a Govt. of India Enterprise, under the
Ministry of Railways having its Registered Office at SCOPE MINAR, Laxmi Nagar, Delhi-
110092 represented by its Managing Director _____________ (hereinafter referred to as
the ‘CONSULTANT’) which expression shall wherever the context so admits or required
include its successors and assigns of the OTHER PART.
WHEREAS
1. The Client is interested to take up Construction of ________ (Name of work) and
in that regard wants to avail the services of a Consultant who will be in a position
to undertake design, detailed engineering and project management services for
the construction of the said Works for and on behalf of the Client.
2. The Consultant is engaged in providing services of the kind in which the Client is
interested including survey, design, detailed engineering and project
management of the constructions complete in all respects including planning,
tendering, contracting, procurement, construction, inspection, site supervision
and commissioning of the new works.
3. The Client accordingly desires to avail the services of the Consultant as its Agent
and Power of Attorney Holder for the purpose of Construction of __________
(name of work) and the Consultant is willing to render their services to the Client
for the Construction of the said works for and on behalf of the Client upon the
terms and conditions of this Agreement.
4. Now therefore, in consideration of the mutual promises and covenants
hereinafter contained, it is mutually agreed and declared by and between the
parties hereto as follows:-
ARTICLE 1–DEFINITIONS
1.1 ‘APPROVAL’ shall mean and include the written consent, either manuscript, type
written or printed statement, under signature or seal, as the case may be, given
from time to time by the Client or their authorized representative on documents,
drawings or other particulars in relation to this Agreement.
1.2 ‘COMMENCEMENT DATE OF CONTRACT’ with reference to Works Contract for
actual execution of works shall mean the date on which the land for the work is
handed over to the Consultant.
1.3 ‘COMPLETION PERIOD’ with reference to Works Contract shall mean the
period from the commencement date of contract to physical completion of the
project.

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1.4 ‘CONTRACT’ shall mean this AGREEMENT including all exhibits hereto and all
documents herein specified and amendments which the parties may hereafter
agree in writing to be made to this Agreement.
1.5 ‘CONTRACTOR’ means any agency appointed by the Consultant on behalf of
the Client for carrying out construction of different types of works involved in the
Project.
1.6 ‘COORDINATING OFFICER’ shall mean the official nominated by the Client to
whom all the matters related to the Project shall be referred to by the Consultant
for views, decisions, help, approvals etc. as per Scope of Services of the
Contract and who shall provide and communicate such views, decisions, help,
approvals etc. to the Consultant on behalf of the Client.
1.7 ‘DRAWINGS’ shall mean and include Engineering drawings, sketches showing
plans, sections and elevations related to the Project together with modification
and/ or revisions thereto.
1.8 ‘ENGINEER / ENGINEER IN CHARGE’ shall mean the person nominated from
time to time by the Consultant and shall include those who are expressly
authorized by the Consultant to act for and on behalf of the Consultant for the
provision of the services related to this Agreement.
1.9 ‘MONTH’ shall mean calendar month.
1.10 ‘PHYSICAL COMPLETION’ with reference to Works Contract shall mean
readiness of the Works except in minor respects, which does not prevent
occupation of the works for the purpose for which the works have been designed.
1.11 ‘PROJECT or WORKS’ shall mean the Construction of ____________ (Brief
description of the Project)
1.12 ‘PROJECT COMPLETION’ with reference to Works Contract shall mean the
readiness of all the works in all respects for use, after attending to minor repairs /
adjustments.
1.13 ‘SERVICES’ shall mean the responsibilities to be discharged by the Consultant
for fulfilling the obligations under this Agreement.
1.14 ‘SPECIFICATIONS’ shall mean and include schedules, detailed descriptions,
statement of technical data, performance characteristics, standards as applicable
and specified in the Works Contract.
1.15 ‘STANDARDS’–The goods and equipments, utilized for the Works in the Project
and the Works in the Project shall conform to the standards mentioned in the
Technical Specifications or such other standards which ensure an equal or
higher quality and when no applicable standard is mentioned, to the authoritative
standard appropriate to the Goods / Equipments utilized in the Works in India
and such Standard shall be the latest issued by the concerned Institution like
Bureau of Indian Standards etc.
1.16 ‘SUB-CONSULTANT’ shall mean any agency engaged by the Consultant for
providing any of the services.

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1.17 ‘TEST’ shall mean such process or processes to be carried out by the Consultant
as are prescribed in the Works Contract in order to ascertain quality,
workmanship, performance and efficiency of goods / equipments or part thereof.
1.18 ‘VENDOR’ means any agency appointed by the Consultant on behalf of the
Client for supply of Goods / Equipments for the Project.
1.19 ‘WORDS’ in the singular include the plural and vice versa.
1.20 ‘WRITING’ includes matter either in whole or in part, in manuscript, typewritten,
lithographed, cyclostyled, photographed or printed form under or over signature
or seal as the case may be.
ARTICLE 2–SCOPE OF WORK
The detailed scope of the work to be rendered by the Consultant is as follows:-
2.1 Ascertain the Client’s requirements, carry out detailed survey of the area and
make out conceptual plans for various alternatives as required by the Client,
keeping in view the topographical features and functional needs of the location,
with respect to the buildings if any, already existing at site, utilities etc. To make
out Preliminary Estimates for the various alternatives based on plinth area rate or
similar acceptable basis of rate. Freeze the Conceptual Plan as finally decided
by the Client and obtain Administrative approval and Expenditure Sanction from
the Client for the Estimated Cost of the Works and Consultants’ fee with Goods
&Service Tax (GST), payable thereon in terms of Article 4 of this Agreement
along with 10%permissible excess on both items to take care of possible
increase in Cost due to any factor at the stage of preparation of Detailed
Estimates based on Detailed Designs and Drawings.
2.2 Carry out detailed soil including Geo-technical investigation to ascertain the safe
bearing capacity for design of foundation.
2.3 Carry out architectural design of the buildings keeping in view the need to
harmonise with the landscape and other architectural features of the buildings, if
any, already existing in the area. (This para may be modified as required)
2.4 Carry out Detailed Designs and Drawings for actual execution of the Work and
obtain the approval of the Client.
2.5 Prepare a Detailed Estimate with items based to the extent possible on Standard
Schedule of Rates such as that of CPWD duly escalated by Cost Index to reflect
the current day Cost and balance as Non Scheduled items. The Estimate will
cover Civil Engineering Works, Electrical Engineering Works, other Engineering
Works and Special installation like lifts, generators and the other Equipments.

Detailed Estimate shall be prepared to reflect the likely Current Cost of the
Complete works and Clients’ approval taken for the same. If the Total of (i)
Detailed Estimate of Cost of Works as made out now (ii) Consultants’ fee
payable thereon (iii) Service Tax on item (ii) in terms of Article 4 of this
Agreement and (iv) 10% excess over items (i) to (iii) to take care of possible price
escalation and minor modifications during the course of execution of Works,
exceeds the amount for which the Client has already accorded sanction for
Expenditure under Article 2.1 above, the Client will accord Revised Sanction for

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 Expenditure for the enhanced amount determined on the basis of Detailed
Estimate with additions as described above.
2.6 Prepare detailed specifications, tender schedule & tender documents and call
tenders for Civil, Electrical, other Engineering and Specialized works. The Bill of
Quantities shall be based on the Detailed Estimates as approved by the Client.
Where required by the Client, Prequalification of Tenderers shall be done.
Otherwise, two Packet system shall be adopted with evaluation of Technical Bid
including Check of Satisfaction of Qualification Criteria done first and Financial
Bids of only those Tenderers whose Technical Bids are considered acceptable
opened. In all cases, Client’s approval for Tender Documents shall be obtained
by the Consultant.
2.7 Finalise the Tender adopting RITES’ procedure, after determining the reasonable
cost of works based on market rate analysis of major items, duly associating a
representative of the Client as a member of the Tender Committee. Take the
approval of the Client for engagement of the selected Contractor and the
Contract Documents to be adopted. Take Revised Sanction for Expenditure from
the Client if the Contract Value along with RITES’ Fees including Service Tax, all
enhanced by 10%, exceeds the Sanction for Expenditures taken under Article
2.5.
2.8 Execute the Agreement with the Contractor for and on behalf of the Client as an
Agent and Power of Attorney Holder.
2.9 Take single point responsibility for supervision in and execution of the proposed
Works by deployment of adequate technical and supporting staff at various sites
of works.
2.10 Liaise with Local Bodies and obtain their approvals for the Works and for shifting/
relocating existing utilities as necessary. The Client will provide all possible
assistance in this regard. Any delay by the Local Bodies in according their
approval for the Works and for shifting/relocation of existing utilities will not be to
Consultants’ account.
2.11 Submit periodic Progress Reports in the format and periodicity as stipulated by
the Client.
2.12 Assessing, planning and arranging to procure materials and procure/hire
construction equipments for Engineering Works, if required as per the Works
Contract Conditions.
2.13 Coordinating with main and sub-contractors and rendering technical advice;
Holding periodic Progress Meetings and sorting out problems arising if any due
to action or inaction of the Client and/ or the Consultant.
2.14 Providing adequate supervising personnel in the field to coordinate, control,
supervise, inspect, liaise and report on the works at site;
2.15 Keeping a close watch on Deviations by way of Extra items, Substituted items
and Deviations in Quantities of Schedule items. Fixation of Rates for
items/quantities covered by Deviation orders adopting RITES procedure. Client
to be kept advised of the Deviation orders and rates as fixed. In cases where the
Client desires omission or substitution of any BOQ item, check if this is likely to
lead to vitiation of Contract and if so draw the attention of the Client to the same

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 and take his specific approval for the omissions / substitutions. Clients’ Revised
Expenditure Sanction to be taken by the Consultant whenever found necessary if
the Cost of the work with its Deviation and Price Escalation (if provided for in the
Contract) and the Consultant’s fee and Service Tax in terms of Article 4 of
Agreement exceed the amount for which Expenditure Sanction has been
obtained from the Client as provided for in Articles 2.5 and 2.7.
2.16 Ensuring that the construction is being carried out in accordance with the
approved working designs, drawings and specifications and as per programme
laid down in the Works Contract Agreement.
2.17 Ensure quality control of the Work including materials and workmanship, certify
measurement of work executed, and make progressive payments based on
physical realization / completion of works, as per approved procedure and
schedule of payments to Contractors;
2.18 Sanction of Extension of Time to the Contractor for completion of Works, with or
without Liquidated Damages, subject to keeping the Client advised of the same
with full details including the effect on completion Cost of works, if any.
2.19 Finalisation of accounts and closing Works Contracts and furnishing the
Accounts along with 4 copies of “As Built” drawings on reproduceable papers to
the Client.
2.20 Settling the Claims / disputes, if any, made by the Works Contractors, keeping
the Client advised of the same. Where there is disagreement between the
Consultant and the Works Contractor, such disputes shall be referred for
Arbitration by an Arbitrator as provided for in the Works Contract between the
Consultant acting for on behalf of the Client as Agent and Power of Attorney
Holder and the Contractor. All amounts payable to the Contractor on his claims
decided by the Consultant directly and agreed to by the Contractor will be
charged to the Cost of Works. In cases where the Contractor resorts to settling
his claims through an Arbitrator, the Client being the Principal Employer will
implead himself as a Party in the Arbitration Proceedings along with the
Consultant. The Consultant will however fight the Arbitration case for and on
behalf of the Client. All claims in favour of the Contractor as per Arbitration
Award and the legal expenses involved in dealing with the arbitration
proceedings, other than those attributable to gross negligence of the Consultant,
will be chargeable to Cost of Works. Items where the Arbitrator gives award in
favour of the Contractor overruling the decisions taken by the Consultant in items
coming under the powers of the Consultant such as fixation of rates for deviation
items, Non scheduled items & substituted items, grant of extension of time etc
will not come under the Category of “Gross negligence by the Consultant”.
As regards other items, where there is a dispute between the Client and the
Consultant as to whether the item of Award in favour of the Contractor is to be
classified as due to “Gross negligence of Consultant” or not, they will be settled
by mutual discussions between the Consultant and the Client. If no agreement is
reached by such discussions, the issue will be settled through Arbitration under
Article 19 of this Agreement. Pending decision by the Arbitrator,the amount
covered by such items of award will be tentatively charged to Cost of Works.
Same principles as above will also apply to decisions if any in favour of the
Contractor in a Court of Law.

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2.21 Credit to the Cost of the Works all Liquidated and other damages levied on the
Works Contractors.
2.22 Complete administration and management of Contract with the Works Contractor
till expiry of the maintenance period and payment of final dues to the Contractor.
2.23 Collect and deliver to the Client, Guarantee Bonds executed by the Contractor for
Specialised items of Works such as Waterproofing of structures, Termite
Proofing of Structures etc which involve maintenance period extending well
beyond the normal maintenance period of structures. Collect and deliver to the
Client, Insurance Policies, if any, of Works still current at the time of handing over
of works.
2.24 Attend to the inspection, if any, carried out by Government Agencies such as
Central Vigilance Commission, comply with their Statutory requirement and
effectively arrange for replying to their observations.
2.25 Assist the Client in obtaining the necessary clearance from the Agencies /
Departments / Local Bodies concerned for the occupation of the Completed
works.
2.26 Getting defects, if any, rectified by the contractor during the 'Defect Liability
Period'.
2.27 In all matters, to conform to the conditionalities of and documents approved by
the Funding Agency such as World Bank, as stipulated by the Client.
ARTICLE 3–OBLIGATIONS OF THE CLIENT
3.1 The Client will furnish layout plan of the existing structures, if any, and services,
if any, in the area where new Works are proposed.
3.2 The Client will nominate a suitable Officer as the Coordinating Officer who shall
perform the duties as listed in Article 1.6.
3.3 The Client will hand over vacant possession of land / Site to the Consultant. The
Consultant may, if so required, take responsibility for demolition / disposal of
existing buildings / structures. Works Contract shall not be awarded by the
Consultant for and on behalf of the Client till the site is available free of all
encroachments and Local Bodies’ approval obtained for use of the site for the
purpose for which it is intended to be used by the Client.
3.4 The Client will make available to the Consultant adequate resources and funds
for proper execution of Works and timely payment to the Contractors. The Client
shall deposit with the Consultant 33 1/3% of Estimated Cost of Works as per the
sanctioned Detailed Estimate, as first instalment. The Client shall release further
instalments based on the progress of work and financial projections as described
in Article 9 (a). The initial deposit of 33 1/3% would be retained by the
Consultant for adjustment against the last portion of the estimated expenditure.
In case the Client fails to provide the funds as per requirements of the
Consultant, it may be necessary for the Consultant to suspend/abandon the
Work. In such an eventuality, the Client shall be solely responsible for all the
consequences arising out of such stoppage/ abandonment of the Work including
Claims of the Contractors for Compensation/damages etc. due to non payment of
dues of the Contractors.

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3.5 The Client will assist the Consultant in obtaining from Local Bodies approvals for
the Works and shifting / relocating existing utilities as necessary. Any delay by
the local Body in according the approval may adversely affect the completion
period for which the Consultant will not be responsible. The Client will, with the
assistance of the Consultant, obtain the necessary clearance from the
Agencies/Departments/Local Bodies concerned for the occupation of the
Completed Works.
3.6 The Client will communicate his decisions whenever referred to, within 7 days of
such a request from the Consultant.
3.7 The Client shall provide the necessary redeemable Power of Attorney to the
Consultant to discharge their obligations under this Contract on behalf of the
Client.
3.8 The Client shall pay the consultancy charges to the Consultant, in line with the
agreed payment schedule.
3.9 The Client shall not be responsible for any liability arising out of Consultant’s
contractual obligations with the Consultant’s architects, personnel, Sub-
Consultants, licensors, collaborators, vendors and subordinates who are
engaged by the Consultant and whose remuneration / fees are paid by the
Consultant from his Consultancy fee.
3.10 The Client shall promptly take over the Works/Project facilities within 15 days
from the date of certified completion in all aspects. If for any reason, the Client is
unable to comply with the above requirements within the period mentioned
above, the Consultant shall allow the Client a further period of 15 days for the
taking over of the Works. If the Client fails to take over even within the extended
period, the Consultant shall become eligible to claim extra fees as may be
mutually agreed between the Parties.
ARTICLE 4–CONSULTANT’S REMUNERATION
a) Consultant’s remuneration would be at ____ per cent on the total of the
final Built up cost fully to be borne by the Client as defined in Article 5
below. The fee payable will be initially calculated on the basis of the Cost
of Work as per Detailed Estimate as sanctioned. Later on it shall be
adjusted on the basis of Works Contract Cost. Finally the fee shall be
adjusted as per Percentage of “As Built Up Cost” as defined in ARTICLE 5.
b) The Consultant’s remuneration as determined in Para “a” above will be
valid for the period of Validity of this Agreement as stipulated in Article
17, determined on the basis of the Scheduled Completion date of the
Works as per the Works Contract initially executed. If the period for
Completion of Works gets extended due to any reason with or without
liquidated damages to the Works Contractors the Consultant will be paid
extra remuneration determined on the basis of Remuneration calculated as
in Para “a” above divided by the period of this Agreement in days counting
from the date of this Agreement till the expiry of 60 days after the
completion of Maintenance Period as per the Works Contract initially
executed, multiplied by the number of days of extension sanctioned for the
execution of the Work.

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 c) In addition to the Fee mentioned in Para “a” and “b” above, the Consultant
will also be entitled to ‘Service Tax’ on the fees at the rates as stipulated
by the Government of India from time to time. Presently the Service Tax
is payable at ___ per cent.
d) If, after the date of execution of this Agreement, the Central Government
or the concerned State Government imposes any fresh Tax or Charges on
the Consultancy fee payable to the Consultant, the same shall be
reimbursable to the Consultant by the Client.
e) The stages of payment of Consultancy fees and Service Charges thereon
will be as under:-
i) Mobilization fees on Signing of this Agreement 10%
ii) Preparation of Concept Plan to the satisfaction of the
Client along with Preliminary Estimate based on it 5%
iii) Preparation of Detailed Designs, Drawings and Estimates 5%
iv) Preparation of Tender Documents 5%
v) Issue, receipt and evaluation of Tenders and appointment
of Works Contractors 5%
vi) Balance prorata on the basis of Certification of Works executed.70%
Total 100%
f) Once a month, in the first week, the Consultant shall submit the
Consultancy bill at the percentage rates as indicated above, based on the
value of works done in the previous month towards the “Built Up Cost” as
defined in Article 5 below. The Client will deduct Tax as due and pay the
net Consultancy fee to the Consultant within 7 days from the date of
receipt of the bill. The Client will also issue Tax Deduction at Source
Certificate to the Consultant within the time stipulated in the Income Tax
Act.
ARTICLE 5–BUILT UP COST
“Built Up Cost” will consist of the expenditure incurred towards the following, all
to be borne by the Client.
i) Gross amount paid to the Contractor towards Construction of the Works as
per Works Contract agreement.
ii) Cost of any materials supplied free to the Contractor including Cost of
handling, transportation and storage incurred by the Client/Consultant.
iii) Charges, if any, levied by Local Authorities for approval of plans and
services and for issue of “Completion”/“No- objection” Certificate for
occupation of the Works on Completion.
iv) Charges, if any, levied by Local Authorities/Providers of services such as
Water Supply, Drainage, Sewerage etc. for Shifting/relocation of Utilities
as well as their disconnection/connection.
v) Cost of Soil tests/Geotechnical investigations.

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 vi) Cost of litigation, if any, with a Third Party or individual organization to
remove legal barriers in the execution of works.
vii) Advertisement Charges for issuing Notice Inviting Tenders.
viii) Cost of testing of materials/workmanship for items for which the Contractor
is not required to pay in terms of the provisions in the Works Contracts.
ix) Any amount paid/payable to the Contractor towards his claims as
considered reasonable by the Consultant.
x) Any amount paid/payable to the Contractor towards his claims not
accepted by the Consultant but decided in favour of the Contractor by an
Arbitrator or Court of Law. The amount will include the Cost involved in
defending the stand of the Client/Consultant in the Arbitration or Court
proceedings. The amount will however exclude the elements of Award of
the Arbitrator/Court of Law on items which are finally attributed to Gross
negligence of the Consultant.

ARTICLE 6–PROJECT PLANNING AND MONITORING & PROGRESS REPORTING

6.1 The Consultant shall submit an overall Project Schedule in the form of a Network
on time scale highlighting all major milestones of the Project. This shall be
approved by the Client and would form the basis for monitoring as well as
dovetailing function schedules. The Consultant shall update this document once
in every quarter and submit to the Client.
6.2 Monthly reports will be sent by the Consultant to the Client so as to reach him by
seventh of the next month as per format to be mutually agreed to.
6.3 Review meetings to be organized by the Client will be held every month either at
site or at the Clients’ office as decided by the Client and the Consultant.

ARTICLE 7–TENDERING PROCEDURE FOR WORKS

7.1 The Consultant shall follow the Tendering Procedure including Calling of
Tenders, Tender Documentation, Evaluation and execution of Contract
Agreement with the successful Tenderer, adopting that of _____ (Funding
Organization)/or that laid down by the Consultant for similar works, as approved
by the Client, with or without modifications as decided jointly by the Client and
the Consultant.
7.2 Tenders shall provide for supply of all materials required for the Works and for
arrangement for the Tools, Plant and Machinery required in Contractor’s scope
except to the extent indicated below as Clients’ supply/arrangement. (list out the
details)
7.3 Tender Conditions shall provide that the Tenderer shall quote his rates in
accordance with tender conditions and keeping in view statutory requirements
relating to labour and taxes on materials.
7.4 The Consultant shall decide in consultation with the Client if prequalification of
Tenderers is required to be done in advance or Two Packet System can be

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 adopted with Technical Bids and Financial Bids received simultaneously and the
Financial Bids of only those Tenderers whose Technical Bids inclusive of
Qualification Criteria are found acceptable, opened and evaluated.
7.5 The Tenders shall be evaluated by the Consultant through a Tender Committee
set up by the Consultant duly including a representative of the Client in the
Committee. Selection of the Contractor for award of work based on the
recommendations of the Tender Committee, will be decided by the Competent
Authority of the Client. The Tender Committee proceedings along with the
decision of the Tender Accepting Authority of the Consultant shall be forwarded
to the Client and the Clients’ approval taken before execution of Contract
Agreement with the selected Contractor.
7.6 The Competent Authority of the Consultant shall enter into the Contract
Agreement with the selected Contractor as Agent and Power of Attorney Holder
for and on behalf of the Client as “Employer”. The Arbitration Clause of the
Works Contract Agreement shall specifically provide that in the Arbitration
Proceedings, both the Client and the Consultant shall be representing the
“Employer”.
7.7 All payments made by the Consultant to the Contractor and other agencies
within the scope of this Agreement shall be made as per the approved Payment
procedure of ___ (Funding Organisation)/Payment procedure of the Consultant
for similar works, as approved by the Client with or without modifications as
decided jointly by the Client and the Consultant.
7.8 The Consultant shall be responsible for due compliance of all procedural
requirements of ____ (Funding Organization) as advised by the Client.

ARTICLE 8–COST TO BE BORNE BY THE CONSULTANT

The Consultant shall bear the Cost of the following items and these are deemed to have
been included in the Consultancy fees payable by the Client to the Consultant under
Article 4.
8.1 Payments to all personnel engaged by the Consultant including their employees,
architects, engineers, Sub-Consultants etc.
8.2 All travel, conveyance, living, boarding, lodging, salary and perks of Consultant’s
personnel engaged in the Project, insurance of all kinds for Consultant’s
personnel including accident benefits, postage, communication and telephone
charges, Internet charges, cost of preparation and printing of all tender
documents, electricity and water consumption charges for the Consultants’ Office
and all other expenses of the Consultant for the purpose of implementation of the
project.
8.3 To meet their obligations under this Agreement, the Consultant shall employ at
site their own manpower so that on completion of the project the Client shall have
no responsibility for absorbing any of them in its service.
8.4 Income Tax payable by the Consultant.

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ARTICLE 9–PAYMENT AND ACCOUNTAL PROCEDURE
As stipulated in Article 3.4, the Client shall provide the Consultant with necessary funds
in advance from time to time for meeting out on behalf of the Client, the cost involved in
various items under “Built Up Cost” as described in Article 5, to the extent payment is to
be effected through the Consultant.
For this purpose, the Client shall make payment of advance amount into the account of
the Consultant in ______ (Bank) in ______ (City). These funds will be replenished on
quarterly basis based on advance projections provided by the Consultant duly certified
by the Consultant’s Accounts Department. Procedure for such projection shall be as
under:
a) The Consultant shall make financial projections and forward request of
funds for each quarter at least 45 days in advance.
b) The Client shall provide necessary replenishment of funds on quarterly
basis based on the Consultant’s request for funds as stated above. These
replenishments shall be treated as advance against the Project.
c) The Consultant will open, maintain and operate a separate Bank Account
for the project in the name of the Consultant in _____ (Bank) _____ (City).
The amount left in the Bank Account will be refunded to the Client at the
time of closing of Account, after all accounts are certified by Consultant’s
Accounts Department.
d) The Consultant shall ensure that the EMDs/amounts of liquidated
damages/penalties recovered from the successful Suppliers/Contractors
are deposited in the separate bank account mentioned in Para “c” above.
Any interest accruing through short term Fixed Deposits from the Accounts
will be retained by the Consultant.
e) Monthly statement of accounts shall be furnished to the Client by the
Consultant by end of the following month duly certified by the authorized
Finance & Accounts representative of the Consultant. Expenditure
particulars of funds shall be submitted to the Client in the format approved
by ____ (Funding Agency) for the Client to claim reimbursement / in the
format laid down by the Client.
f) Whenever the need arises for obtaining Revised Sanction of Expenditure
from the Client as explained in Articles 2.7 and 2.15, the Consultant shall
take prompt action to approach the Client with full justification.
g) After completion of work, the Consultant will prepare detailed statement of
accounts as per agreed formats covering various works contract wise and
the expenditure thereof duly certified by the Consultant’s Authorized
Finance & Accounts representative with necessary supporting documents,
including copies of final bills and ‘As built’ drawings, duly certified by the
Consultant’s Engineers containing all the details of the work.
h) The amounts of Security Deposit and Bank Guarantees received from the
Contractors which remain to be refunded as per the contract conditions, at
the time of handing over the works or earlier to the handing over, as the
case may be, shall be handed over to the Client with details of dates when
they become due for refund. Similarly, all amounts of liquidated damages /

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 penalties, forfeited EMDs/ Security Deposits shall be transferred to the
Accounts of the Client.
ARTICLE 10—LABOUR LAWS
10.1 The Consultant shall undertake to ensure compliance of all labour laws which are
applicable to their workmen and also obtain through suitable provision in the
Works Contracts commitments by the Contractors to whom any part of the Works
Contracts envisaged under this Agreement is entrusted, in respect of their
workmen.
10.2 The Consultant shall be responsible for all statutory obligations and any other
laws in the above regard, in force from time to time, regarding employment or
conditions of service of their Sub-Consultants and employees.
10.3 The Consultant shall ensure compliance by the Works Contractors of all safety
rules as required under various statutes in India, through suitable provision in the
Works Contracts.
10.4 The Consultant shall incorporate third party risk clause in all Works Contracts
awarded by the Consultant, so as to ensure that the Client is held harmless and
indemnified against any damage or injury to third party on account of any act or
omission to act by the employees or representatives of the Contractors engaged
for the execution of the work.
10.5 Being the owner of the assets to be created, the Client shall be the `Employer’
under Contract Labour (Regulation and Abolition) Act, 1970 and Building and
Other Construction Workers Welfare Cess Act, 1996 and Rules made under
these Acts. The Consultant shall provide necessary assistance and guidance to
the Client in complying with the Employer’s obligations under These Acts/Rules.

ARTICLE 11–MODIFICATION IN WORKS CONTRACTS

Any modification in the Works Contracts with respect to technical or commercial aspects
including time limit for completion and deviation by way of extra items, substituted items
and deviations in quantities of Schedule items as well as fixation of rates for Deviation,
shall be considered by the Consultants and authorized subject to the following.
i) The Client shall be kept advised for information of the Modifications with details
of the implications and the justification.
ii) Where the Modification is likely to result in the need for obtaining approval of
“Revised Expenditures Sanction” from the Client for an increased amount as
mentioned in Article 2.15, the Consultant shall approach the Client promptly with
full details and justification.
ARTICLE 12–TIME SCHEDULE
12.1 Time is the essence of contract.
12.2 The Consultant shall complete all items of work indicated in Article 2.1 to 2.6 of
this Agreement within ___ months from the date the Client intimates, in writing,
the availability of land free from encroachments and Local Bodies approval for
the use of the land for the purpose proposed by the Client. However, in the case

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 of works of specialized nature, the time required for completion of items of work
indicated in articles 2.1 to 2.6 of this Agreement shall be decided after mutual
discussions.
12.3 The Consultant shall furnish to the Client a detailed time-schedule for getting the
Works executed, after finalization of the Detailed Estimate based on Detailed
Designs and Drawings.
12.4 The Consultant shall make all efforts to get the Works executed as per the time
schedule finalized in Consultation with the Client.

ARTICLE 13–RESPONSIBILITY OF CONSULTANT

13.1 The Consultants shall be liable for consequences of errors and omissions arising
out of gross negligence on their part or on the part of their employees and shall
take necessary action to remedy the defects and deficiencies arising from said
negligence. The liability of the Consultant shall be restricted to the period of
Validity of this Agreement under Article 17.
13.2 The Consultants shall discharge their obligations under this Agreement in
accordance with the agreed time schedule and with due care, diligence and
competence generally as stipulated under Article 2 of “Scope of Work”.

ARTICLE 14–LIQUIDATED DAMAGES

14.1 In case the work described in Articles 2.1 to 2.6 is delayed beyond the stipulated
period of completion as indicated in Article 12.2, for reasons directly attributable
to Consultants, a sum equivalent to ½% (half per cent) of fees for each
completed week by which the work has been delayed subject to maximum of 5%
of the fees, shall be levied by way of liquidated damages and not by way of
penalty. This shall however not absolve the Consultants of the responsibilities
and obligations under the contract to complete the execution of work indicated in
Articles 2.1 to 2.6 as per the completion time schedule as stipulated in Article
12.2.
14.2 In case the designs prepared by the Consultants are found to be defective as per
the standard engineering practices, involving redoing of the work already
executed.
i) a sum not exceeding 5% of the fees for that work will be levied on
Consultants as liquidated damages.
ii) the Consultants shall prepare schemes for rectification and modification for
redoing the work free of cost.
14.3 The total of all liquidated damages will not be more than 10% of Consultancy
fees.
14.4 In case this Agreement envisages execution of a number of Works under
different Works Contracts, the stipulations in Articles 14.1 to 14.3 above will
apply to each such work.
ARTICLE 15–FORCE MAJEURE
15.1 Neither the Consultant nor the Client shall be considered as defaulting in the
Performance of their contractual obligations under this Agreement, as long as

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 such performance is prevented or delayed, for reasons, beyond the reasonable
Control of the party claiming the existences of Force Majeure such as Acts of
God, severe earthquake, cyclone (except monsoon), floods, lightning, land slide,
fire or explosions, plague or epidemics, strikes/ lockouts (lasting more than 14
consecutive calendar days), sabotage, blockade, war, riots, invasion, acts of
foreign enemies, hostilities (whether war be declared or not), civil war, rebellion,
revolution, insurrection or military usurped power or confiscation or trade
embargoes or destruction or requisition by order of any Government or any
Public Authority. The party claiming the existence of Force Majeure shall within
ten days or within shortest possible period without delay, as the case may be,
notify the other party about the occurrence of the Force Majeure event and
provide the other details of arising and ceasing of the impediment. At the end of
the impediment, the party claiming the existence of Force Majeure shall provide
necessary documental proof of cessation.
15.2 As soon as the cause of Force Majeure has got removed, the party whose ability
to perform its obligations has been affected shall notify the other of such
cessation and of the actual delay incurred in such affected activity, adducing
necessary evidence in support thereof. From the date of occurrence of a case of
Force Majeure, obligations of the party affected shall be suspended during the
continuance of Force Majeure Conditions along with any inability so caused until
the cause itself and the inability so caused resulting there from have been
removed and the agreed time of completion of the respective obligations under
this contract shall stand extended by a period equal to the period of delay
occasioned by such events.
15.3 Should one or both the parties be prevented from fulfilling the contractual
obligations by state of Force Majeure lasting continuously for a period of six
months, the parties shall consult each other regarding the future implementation
of the Project.
ARTICLE 16 –AMENDMENTS TO AGREEMENT
Any amendments or modifications to this AGREEMENT must be in writing and
shall be signed by both the parties.

ARTICLE 17–TIME LIMIT FOR VALIDITY OF THIS AGREEMENT

(a) This agreement will be valid for a period of 90 days beyond the date when
all the following documents are made available by the Consultant to the
Client.

(i) Final account after closing of works contracts (Refer Article 2.19 and
Article 9g and 9h).
Note: Where there is no Arbitration/Court Proceeding on any claim by Works
Contrator, the Final Account will be made out for each such work forming
part of the Project, in one part. Where there is any Arbitration/Court
Proceeding on any claim by the Works Contractor, the Final Accounts for
each such work will be submitted by the Consultant in two parts with the
first comprising of all items other than those covered by the

203
 Arbitration/Court Proceedings and the second and final part comprising of
items arising out of the Arbitration/Court Award.
(ii) Four Copies of “As Built Drawing” on reproducible paper (Refer
Article 2.19 and Article 9g)
(iii) Guarantee Bond for Specialized Works and Insurance Policies on
Works, if any (Refer Article 2.23)
(b) Any request for clarifications desired by the Client on items (i) to (iii) above
or an any other item pertaining to the Agreement or for copies of any
missing documents should be made to the Consultant within a period of 30
days from the date of receipt by the Client of each of the documents (i) to
(iii) above. If no such request is recevied within the period of 30 days as
mentioned above, the Client shall be deemed to have waived his right to
ask for such clarifications and/copies of missing documents.
(c) Where the request for clarifications and/or copies of missing documents
has been recevied within period of 30 days as mentioned above and the
Consultant fails to furnish his response within the time limit of 30 days
before expiry of Validity of the Agreement as defined in Para (a) above, the
Validity of the Agreement shall be automatically extended for a futher
period of 30 days from the date when the request of the Client is complied
with by the Consultant.
ARTICLE 18–TERMINATION OF AGREEMENT
a) The Agreement herein may be terminated at any time by either Party
(Client / Consultant) by giving a written notice of two months to the other
party. With the termination of the Agreement, the Works Contracts will be
operated directly by the Client. Even after the termination of the
Agreement, the Consultant shall be liable and be responsible for due
certification/approval of any Bills submitted by the Works Contractors at
any time, in respect of the Work executed before the termination of the
Agreement.
b) In case there is any change in the Constitution of the Consultant, the
details will be promptly communicated to the Client. In case the Client is of
the opinion that this will affect the Performance of the Consultant under
this Agreement, the Client shall be entitled to terminate this Agreement
after giving due notice and entrust the work to some other Agency.
c) In case of the Termination under Para “a” or “b” the Consultant shall not be
entitled to fees or compensation except of the fees payable to them for the
work actually done. The amount of fees so payable shall be decided by
mutual discussions between the Client and the Consultant.
d) In case of the Termination under Paras “a” or “b”, the Client may make
use of all or any drawings, estimates or other documents prepared by the
Consultant, after a reasonable payment for the services of the Consultant
for preparation of the same.

ARTICLE 19–ARBITRATION
a) If the Client is a Government Department/Organization or CPSE / State
PSE then in the event of any dispute or difference relating to the

204
 interpretation and application of the provisions of this contract, such
dispute or difference shall be taken up by either party for resolution
through AMRCD as mentioned in Government of India, Ministry of Heavy
Industries & Public Enterprises, Department of Public Enterprises OM No.
4(1)/2013-DPE(GM)/FTS-1835 dated 22-05-2018.
OR

In the case of Dispute or difference arising between the Consultant and the
Client relating to any matter arising out of or connected with the
Agreement, such dispute or difference shall be settled in accordance with
the Arbitration and Conciliation Act, 1996 with all up-to-date amendments
and Rules made thereunder. The Arbitral Tribunal shall consist of a Sole
Arbitrator to be appointed by agreement between the parties and failing
such agreement, by the Chairman/Standing Conference of Public
Enterprises. (Applicable in case the client is not a
Ministry/Deptt./Organization /a PSU of Central/State Govt.)

b) The decision of the Sole Arbitrator shall be final and binding upon both the
parties. The Cost and expenses of Arbitration proceedings will be paid by
the Parties as determined by the Arbitrator. However, the expenses
incurred by each party in connection with the preparation, presentation etc.
of its proceedings shall be borne by each party itself.
c) Performance under this Agreement shall continue during the Arbitration
Proceedings and payments due to the Consultant by the Client shall not
be withheld unless they are the subject matter of the Arbitration
proceedings.
d) The Arbitrator shall adjudicate on only such disputes as are referred to him
in the Claim Statement and give separate award against each dispute and
claim referred to him along with reasons for the award.
e) The fees payable to the Arbitrator shall be paid equally by both the Parties.
f) The Venue of the Arbitration shall be such place as may be fixed by the
Arbitrator in his sole discretion.
g) The demand for Arbitration by either Party on the other Party in respect of
any claims should be made within the Time Limit for Validity of the
Agreement stipulated under Article 17 of this Agreement. Any demand for
Arbitration beyond this time limit shall be treated as Time barred and the
Party on whom the claims are made shall be discharged and released of
all liabilities under this Agreement in respect of such Claims.

205
ARTICLE 20 – ARBITRATION / COURT CASES INVOLVING WORKS CONTRACTOR

Where the Consultant signs the Agreement with the Contractor for and on behalf
of the Client as an Agent/Power of Attorney Holder and the Contractor files any
claims in Arbitration / Court whether against the Client or against the Consultant,
both the Client and the Consultant will implead themselves as parties to the
Arbitration/Court proceedings. The Consultant will defend the Arbitration/ Court
proceedings in coordination with the Client. In case any amount is awarded by
the Arbitrator/Court in favour of the contractor and if it is decided by the Client to
challenge the said Award, 75% of the Award amount including interest (Payout
Amount), declared by the Arbitrator / Court as payable to the Contractor will be
made available by the Client to the Consultant within 15 days of making of award
by the Arbitrator/court to enable the Consultant to deposit the same (after
obtaining a Bank Guarantee of the like amount from the Contractor) in the
Arbitral Award Escrow Account to be opened by the Contractor in accordance
with NITI Aayog’s OM No. 14070/14/2016 – PPPAU dated 05.09.2016.
Depositing of the said amount in the Escrow Account will be without prejudice to
the rights of the Client and Consultant and subject to final order of the court in the
matter under challenge. Consequence of any delay in providing funds as
required will be to the Client’s account. In case it is decided by the Client to
accept the Award, the Client will directly pay the Award amount together with
interest, if any, to the Contractor in terms of the Award under advice to the
Consultant. Award amount including interest and cost of defending the case will
form a part of Built up Cost as defined in Article 5(x). The Consultant and the
Client will, by mutual discussions, decide on what items of claims, if any, are
attributable to gross negligence of the Consultant. If there is any disagreement
on this issue, the same will be referred to for Arbitration under Article 19.

ARTICLE 21–JURISDICTION
The Parties hereby agree that the Courts in the City of ______ alone shall have
the jurisdiction to entertain any application or other proceedings in respect of
anything arising under this Agreement and any award or awards made by the
Arbitrator hereunder shall be filed in the concerned Courts in the aforesaid City
only.
(Note: Article 21 is to be deleted in case Article 19 (a) is with provision for
Arbitration by an Arbitrator by an Arbitrator in the Department of Public
Enterprises).
IN WITNESS HEREOF, the parties have hereunder signed this AGREEMENT
the date first written.

For the Client (Signature with For the (Signature with

Name, Designation Name, Designation
& Seal) & Seal)
Consultant
Witnesses: Witnesses
1. 1.
2. 2.

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 ANNEXURE 5.1
(Refer Para 5.1.6)

PROFORMA FOR AMENDMENT TO THE CONTRACT AGREEMENT

SUPPLEMENTARY AGREEMENT

Contract No. dated

Amendment No.
Name of Works
Serial Page No. of Contract

WHEREAS on the ____ day of ___ an Agreement was entered into by the undersigned
___________________ (Designation) of RITES LIMITED acting for and on behalf of as
Agent/Power of Attorney Holder of ______ (hereinafter referred to as the “Employer”)
and ____ (hereinafter referred to as the “Contractor”) under which the said Contractor
among other conditions contracted to provide ____ (Name of work).

AND WHEREAS the said parties are now mutually desirous of amending the said
Agreement in certain respects.

It is therefore hereby agreed by and between the Parties thereto as follows:-

Firstly (First item of amendment)______

(say) Secondly (Second item of amendment ) _____
(say) Thirdly (Third item of amendment) _________
(say) Fourthly–That this Amendment shall be numbered as No. ____with Page No. ___
of the Contract and that the total number of pages on the INDEX of the Contract shall be
amended to read as ____ in lieu of ____.
Finally–That all other Terms of the Contract shall hold good in all other respects and be
in full force and effect.

In witness thereof the said Parties have hereto set their respective hands as shown
below on ____ date.

Signature of Contractor Signature of Engineer in Charge

Date

Seal
Signature and address of Witness

Copy to (Tender Accepting Authority)

Copy to The Employer For information.

207
 ANNEXURE 5.2
(Refer Para 5.3)

Lump Sum Contract

1) This form, as its name indicates, is used for work in which contractors are required to
quote a lump-sum amount for completing the works in accordance with the given
designs, drawings, specifications and functional requirements as the case may be.
Lump-sum tender can be either:
i) For only executing the work as per design, drawing and specification given by
RITES / Employer or
ii) For executing the work including the element of doing design work and preparation
of structural drawings as well, which shall be in keeping with the given functional,
structural and architectural parameters, and subject to approval by the competent
authority before hand.

2) Drawing and design by RITES/ Client

i) In cases where work is to be executed as per designs and drawing to be supplied

to the contractor, all the detailed working drawings, both architectural and
structural must be prepared before-hand, and should form part of the tender
documents, which should also contain complete and detailed specifications of the
work. The tender documents must set out complete scope of the work. Only the
drawings and the detailed specifications as contained and / or referred to in the
tender documents shall form the basis of execution and payment.

ii) The extra payment or recovery over and above the accepted rate shall be called
for only in the event of authorized deviations from the drawings and
specifications (as given and / or referred to in the tender documents) in course of
execution and not otherwise.

3) Drawing and design by the contractor – after the award of work

i) In cases where the detailed architectural and structural drawings are to be

provided by the contractor, all the architectural and structural data / parameters
necessary to work out the cost of the work, details of the functional requirement
and complete / detailed specification thereof, including preliminary drawings, if
any, must be finalized before call of tenders, and the tender documents must
contain all these details so that there is little scope of guess work on the part of
the contractor while tendering, and chances of dispute at a later stage are
minimized. Any clarification or doubt as may be raised by the intending tenderer
should be cleared before the receipt of tender.

ii) A condition should be stipulated in the tender documents that the work shall be
executed as per detailed design and architectural / structural drawings to be
prepared by the successful contractor conforming to the given parameters and
functional / design requirements as mentioned in the tender documents, and
submitted to the department within specified time after the award of work. The
contractor shall accordingly get the designs / drawings approved by RITES /
Client before taking up execution of the work.

208
 iii) In case any modification for any reason is ordered in course of execution,
suitable adjustment for extra payment or recovery shall be effected only if such
modification results in change in the scope of work as given in the tender
documents, or any change from the specified parameters.

4) Drawing and design by the contractor – before the award of work

i) Where the contractor is required to give the design and structural drawings, the
contract can suffer from the following infirmities:

(a) The contractor may under-design the structure in order to reduce the cost and
win the contract, or

(b) During the proof checking of the structural design, there could be a tendency
on the part of the contractor not to agree to RITES genuine contention for
revising the structural design that may increase the cost of structure to his
disadvantage.

ii) Wherever the above problem (s) is / are anticipated, the tenders shall be
invited in a two –bid system,

a) The technical bid, containing the architectural plans, structural design

calculations, structural drawings, service plans, the detailed measurement
sheets, and other technical parameters as may be required, etc.

b) The price bid.

iii) The technical bids shall be evaluated by a Committee chaired by the

tender accepting authority and comprising of officers at appropriate level from
the disciplines concerned with the work. The Committee shall obtain
clarifications from the tenderer (s) and / or call them for discussions wherever
required, and select a final scheme. The same shall be made available or
made known to all the participating tenderers, preferably through a pre-bid
conference, and invite revised technical bids from them, if required.
iv) After examining the technical bids / revised technical bids, and equalizing
the same in respect of all the tenderers, the price bids shall be opened. If the
tenderers are asked to modify their structural design and calculations as a
result of this exercise, or if the validity period of the price bids expire, they shall
be given the chance of offering revised price bids, and in that event, only the
revised price bids shall be opened.
v) The NIT approving authority shall consider paying to all the participating
tenderers a reasonable and specified amount for furnishing all the above
details along with their tenders, if it is felt that the specified requirements so
warrant. In that event, the same should be suitably incorporated in the Tender
Document as well as in the advertisements through website / press.

5) The lump sum tender documents where Drawings and Designs are to be
supplied by RITES / Client (refer Para 2 above) shall contain -
i) a) the detailed architectural and structural drawings
b) detailed specifications for the various items and components of the
work

209
c) the schedule of quantities for the various items and components of the
work
d) the inclusions in and exclusions from the scope of the contract, if
required, for better clarity, and
e) the various stages of work, and the percentage of the contract value for
each stage for release of intermediate and final payments.

ii) The schedule of quantities referred to above is only limited for the
purpose of assessing the quantum of work involved by the tenderers.
It is not meant for subsequent measurement and payment in the
course of execution of the work. Before submitting their tenders, the
tenderers shall, therefore, have to satisfy themselves that the
quantities given in the tender documents for the various items and
components of the work are correct. Deficiencies noticed, if any,
should be immediately brought to the notice of the tender inviting
authority, who shall examine the same, and make necessary
corrections, if required, to the tender documents before receipt of he
tenders.
iii) The contractor shall execute the work as per the drawings and
specifications as given in the tender documents, and shall have no
claim for any payment on account of deviations and variations in
quantity of any items (s) or component (s) of the work, unless they
are authorized deviations from the parameters, drawings and
specifications contained in the tender documents.
iv) The rates of deviated items shall be determined on the lines of clause
12.2 of Clauses of Contract for percentage / item rate contracts.
v) The Controlling Site Engineer and the Project Coordinator shall satisfy
themselves that the work has been done in each stage in conformity
to the drawings and specifications contained in the tender documents
and certify the same before recommending to the SBU Office for the
release of the stage payment. Project Coordinator shall conduct test
checks to the prescribed levels.

210
 ANNEXURE 6.1
(Refer Para 6.1.1)

GUIDELINES FOR CALLING AND ACCEPTING QUOTATIONS

INSTEAD OF TENDERS
1. The quantity of work/supply should not be split with an intention to bring the value
down to a level of quotation.
2. Quotation should be called in cases of one time delivery only within a short
period or any emergent/immediate requirement or for small items costing more
than Rs. 50,000/-. No repeat order is permitted in case of work undertaken on
quotation basis.
3. Minimum three sealed quotations should be collected/called from reputed and
known contractors/ suppliers. There need not be prior finance concurrence but
the basis of selection of the firms should be recorded.
4. There is no need to form a tender opening committee for the quotations. The
same should be opened by an officer of the rank of Manager and a comparative
statement prepared and got vetted from Finance as in the case of the tenders.
5. Based on the comparative statement, the competent authority can decide the
quotations without going through process of tender committee. The accepting
authority should satisfy him / her about the reasonability of rates and other terms
with reference to the estimate and prevailing market conditions.
6. The basis of acceptance should be the lowest qualified quotation. All principles
of financial propriety applicable to tender evaluation should be followed.
7. Requirement of deposit of earnest money or submission of performance
guarantee may be waived by the accepting authority. Warranties should,
however be insisted depending upon nature of work or equipment.
8. Advance payment should be avoided as far as possible.
9. A formal acceptance order should be issued.

211
 ANNEXURE 6.2
(Refer Para 6.2)

NOMINATION OF TENDER COMMITTEE–PROCEDURE FOR

CALLING AND ACCEPTANCE OF SINGLE TENDER
Prior administrative approval of the authority competent to call for single tender, as per
Schedule of Powers in force shall be obtained, besides obtaining finance concurrence.
Before according such administrative approval, the competent authority shall satisfy
himself that the following conditions are fulfilled:
a) That the situation is emergent.
Emergent situations would cover:
(i) Accidents, force majeure, etc. invloving dislocation of essential
services/work.
(ii) Works of specialized nature to be personally approved by the Divisional
Head with prior concurrence of Finance.
(iii) Any other situation where the Executive Director personally considers it
inescapable to call for single tender subject to the following provisions:
* This power cannot be sub-delegated.
* Prior financial concurrence is obtained.
b) There have been no bids to tenders on minimum two times
c) That in the case of proprietary articles, it is certified that a similar article is
not manufactured by any other firm which could be used in lieu.

Tight targets and urgency cannot be accepted as a reason for calling a single
tender.

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 ANNEXURE 6.3
(Refer Para 6.4.1. viii)

GENERAL GUIDELINES FOR FIXING REQUIREMENT OF TECHNICAL

STAFF FOR A WORK
Cost of work Requirement of Technical staff Minimum Designation
experience
Rs. In lakh) Qualification Number (Years)
1000 i) Project Manager with 1 10 Principal
degree in corresponding Technical
To discipline of Engineering Representative
2000
1 5
ii) Graduate Engineer Technical
representative
2 Nil Project/Site
iii)Graduate Engineer Engineer
or And
Diploma Engineer 2 5
Project
Planning/Billing
Engineer

500 to 1000 i) Graduate Engineer 1 5 Principal

Technical
Representative
ii) Graduate Engineer 2 Nil Project/Site
or Engineer
Diploma Engineer 2 5 And
Project
Planning/Billing
Engineer

200 to 500 i) Graduate Engineer 1 5 Principal

Technical
Representative
ii) Graduate Engineer 1 Nil Project
or Planning/Site/
Billing
Diploma Engineer 1 5 Engineer

213
 50 to 200 Graduate Engineer 1 5 Principal
Technical
Representative
10 to 50 Graduate Engineer 1 Nil Principal
Technical
Or Representative
Diploma Engineer 1 5 Project
Planning/Site
/Billing
Engineer

Notes: 1. ‘Cost of work’, in Table above means cost of work put to tender plus the
market value of cost of materials, if any, to be supplied free to the contractor.
2. Rate of recovery in case of non compliance of Clause 36 (iv) will be at the
following rates which may be stipulated in Schedule F of Tender Document:

S.No. Qualifications Experience Rate of Recovery

(Years) Per Month
(i) Graduate Engineer 10 Rs. 55,000/-
(ii) Graduate Engineer 5 Rs. 40,000/-
(iii) Graduate Engineer Nil Rs. 25,000/-
(iv) Diploma Engineer 5 Rs. 25,000/-

3. Nothing extra need to be added while preparing market rate justified amount of
the work if stipulation is made as per above recommended scale of requirement
of technical staff.
4. Requirement of technical staff and their experience can be varied depending
upon the nature of work and in case of composite works by Tender Approving
Authority.

214
 ANNEXURE 6.4
(Refer Para 6.6.4)

RITES LIMITED
(A Government of IndiaEnterprise)

NOTICE INVITING TENDER

N I T No. ____________

GGM/ GM ( ), RITES Limited on behalf of _____________ invites sealed tenders

from contractors who fulfill Qualifying Criteria stipulated in the Tender document for the
following work:

Name of work ___________ Estimated Cost ______________EMD _______________

Completion period ______________ Last date of submission of tender _____________

Completed Tender documents including Qualifying Criteria, can be purchased from

(Address) __________ Phone _____________ Fax___________ at a cost of Rs.
___________ or downloaded from our web’ site www.rites.com.

Amendments/Corrigendum, if any, would be hosted on the website only

215
 ANNEXURE 6.5
(Refer Para 6.8)

QUALIFYING CRITERIA FOR WORKS CONTRACTS

1) General

“Qualifying Criteria for Works Contracts” as appearing in Annexure I of RITES

Standard

Tender and Contract Document as corrected upto date, will be applicable subject
to the following guidelines.

2) Categories of Works

i) Small Works - Costing upto and including Rs.3 Crore

ii) Normal Works - Costing above Rs.3 Crore and upto and including
Rs.100 Crores

iii) Large Works - Costing above Rs.100 Crores

3) Packet Systems to be followed

i) Small works - Single Packet

ii) Normal Works - Two Packets

iii) Large Works - Two Packets

4) Specific provision for Small works

For small works, only the criterion of Works Experience will be applicable.
Criteria of Annual Turnover, Net Worth and Profitability will not be applicable.

5) Normal and Difficult areas

Difficult areas are NorthEastStates, J&K, Jharkhand, Chattisgarh and Andaman

& Nicobar Islands. Rest of India will fall under the category of Normal areas.

6) Estimated cost of work

Estimated cost of work put to Tender is the anticipated Contract cost payable to
the Contractor. The Value of materials, if any, to be supplied free to the
contractor, will be taken as ‘Nil’ while working out the Estimated cost of work.

216
7) Annual Financial Turnover

The minimum Annual Financial Turnover in any one of the last three financial
years should be fixed as under:

i) For works in Normal Areas - 1.0 x Estimated Cost of Works x 12

Completion Time in months

ii) For works in Difficult areas -

a) Works estimated to cost Rs.50 crores or more :1.0 x Estimated Cost of work x 12
Completion Time in months

b) Works estimated to cost less than Rs.50 crores :0.5 x Estimated Cost of work x 12
Completion Time in months

If the completion period is less than 12 months, the Minimum Annual Financial Turnover
required shall be calculated by taking the Completion Time as 12 months in the above
formulae.

8) Work Experience

(A) Similar Works Experience

The following stipulations should be kept in mind while indicating the minimum
value of Similar works in Qualifying criteria.

i) For works in Normal Areas

One similar work of Minimum value of 80% of the Estimated Cost of work
Or

Two Similar Works each of Minimum value of 50% of the Estimated Cost of work
Or

Three similar works each of Minimum Value of 40% of the Estimated Cost of
work

ii) For works in Difficult Areas

One similar work of Minimum Value of 50% of the Estimated Cost of work
Or

Two similar works each of Minimum value of 40% of the Estimated Cost of work

217
(A1) In case of railway works involving one or more components like Earthwork,
Bridges, Track Linking, Track Laying, OHE, Signalling etc.the criterion of
Work Experience will be as under :

The following stipulations should be kept in mind while indicating the minimum
value of Similar works in Qualifying criteria.

For works in Normal Areas

One similar work of Minimum value of 65% of the Estimated Cost of work.

Or

Two Similar Works each of Minimum value of 40% of the Estimated Cost of work.

For works in Difficult Areas

One similar work of Minimum Value of 40% of the Estimated Cost of work.

Or

Two similar works each of Minimum value of 25% of the Estimated Cost of work.

(B) Construction Experience in Key Activities / specified components

With the approval of the Tender Approving Authority, a few specialized

components of work may be stipulated.

9) Servicing of Loan / Credit Limit

i) For Normal Works and Large Works -

a) The bidder should furnish a declaration that he has not failed to service the
principal amount or interest or both of a loan account / credit limit from any
Bank or Financial Institution during a period of one year prior to the
deadline for submission of bids.

In case a bidder has defaulted in servicing his loan / credit limit during the
past one year, he shall be disqualified.

10) Net Worth

The bidder should have positive net worth of atleast 15% of the Estimated Cost
of Work. This will be judged from the Audited Balance Sheet of the last financial
year ending on a date not prior to 18 months from the due date for submission of
the tender (or, if the due date is extended, such extended date of submission.)

218
11) Profitability

The Bidder should be a Profit (Net) making firm and should have made profit
during any two of the past 3 Financial Years immediately preceding the deadline
for submission of bids. If the Audited Balance Sheet for the immediately
preceding year is not available in case of tenders opened before 30th
September, Audited Balance Sheets of the three Financial Years immediately
preceding the previous Financial Year shall be considered.

219
 ANNEXURE 8.1 A
(Refer Para 8.8.3)
COMPARATIVE STATEMENT
ITEM RATE TENDER
(i) TENDER NO: (ii) NAME OF WORK (iii) DATE OF OPENING OF TENDER
(iv) NO. OF TENDERS EVALUATED

Note: If there is any unconditional Rebate its financial implication should be determined and shown below suitably.

BOQ Item Brief Details of BOQ UNIT QUANTITY RATE AS GIVEN IN TENDERER No. TENDERER No.
No. item SANCTIONED
ESTIMATE Name: Name:
UNIT AMOUNT UNIT AMOUNT UNIT RATE UNIT RATE AMOUNT UNIT RATE
RATE (Rs. ) RATE QUOTED QUOTED QUOTED QUOTED QUOTED AS
(Rs. ) QUOTED (Rs. ) AS % OF (Rs. ) (Rs. ) % OF
(Rs. ) ESTIMATE UNIT ESTIMATE
RATE OF RATE OF
RITES RITES

Total --- --- --- --- ----' --- ---

Rating Tenderer based on Total --- ---- --- ---
Amount Quoted
Conditions (if any) Quoted --- ---- ---- ---

Note: In the case of item Rate Tenders, only rated quoted against each item shall be considered. Any Tender containing percentage below/above Schedule Rate
against the item shall be rejected. However, any unconditional rebate as a percentage of the total amount quoted is to be accepted. Discrepancies in rates
and amount will be dealt with as under.
(i) If for any item rate in figures and words and the amount have been given and the rates in figures and words don’t agree with each other, the rate which
corresponds with the amount quoted by the Tenderer, shall unless otherwise proved, be taken as correct.
(ii) If the amount of an item is not worked out by the Tenderer or it does not correspond with the rates written either in figures or in words, then the rate quoted by
the Tenderer in words shall be taken as correct.
(iii) Where the rates quoted by the Tenderer for any item in figures and words tally but the amount for that item is not worked out correctly, the rate quoted by the
Tenderer, unless otherwise proved, should be taken as correct and the amount worked out accordingly.
(iv) In the event that no rate has been quoted for any item (s) leaving space both in figure (s) or word (s) and the amount blank, it will be presumed that the
Tenderer has included the cost of this / these items on other items and rate for such item (s) will be considered as zero.
(v) For any conditional rebate, its financial implication should not be taken into consideration for evaluation of bid price, but the same should be shown separately
suitably.

220
 ANNEXURE 8.1B
(Refer Para 8.8.3)

COMPARATIVE STATEMENT PERCENTAGE RATE TENDER

221
 ANNEXURE 8.2
(Refer Para 8.14.2)
(FORM OF LETTER OF ACCEPTANCE)
(By REGD POST ACK.DUE/ COURRIER/FAX)
(On the letter head of RITES)
NO. : RITES/ Dated :
To
_________________
(Name & Address of the Contractor)

Dear Sirs,

Sub: TENDER No. FOR THE WORK OF

Ref: Your Tender dated _________________ and letters dated _____________
and this office letter Nos. ___________ dated___________ in reply to the same.
This is to notify you that your Tender for the work under reference has been accepted by the
Competent Authority of RITES LIMITED for a total Contract Price of Rs. _______ (Rupees
_____________only) in its capacity as an Agent /Power of Attorney Holder acting for and on
behalf of ______ (the Employer).
Pursuant to Clause 1 of the Contract, you are required to furnish irrevocable Performance
Guarantee for an amount equivalent to 5% (Five percent) of the Contract Price and on
Additional Performance Guarantee for an amount of Rs. ------------ (if applicable). The Guarantee
Bonds aggregating to an amount of Rs.______________ are required to be submitted within ___
days of issue of this Letter of Acceptance.
The time of ________months allowed for execution of the work will be reckoned from the date
of start as defined in Schedule F or from the first day of the handing over of the site, whichever
is later, in accordance with phasing, if any, indicated in tender document.
You are requested to contact _________ (complete designation and address of the Project
Coordinator) for carrying out the contract.
You are also requested to attend this office within Twenty Eight days from the date of issue of
this letter for execution of the formal agreement. It may be noted that no payment shall be
made for any work carried out by you till the Agreement is executed and till such time the
Performance Guarantee and Additional Performance Guarantee (where applicable) has/have
been submitted by you.
This Letter of Acceptance is being sent to you in duplicate and you are requested to return
without delay one copy of the letter duly signed and stamped, as a token of your
acknowledgement.
Kindly note that this Letter of Acceptance shall constitute a binding Contract between us
pending execution of formal Agreement.

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Your letters as well as this office letters referred to above shall form part of the Contract.

Yours faithfully,
RITES LIMITED
Agent / Power of Attorney Holder
For and on behalf of______ (The Employer)
Copy to :
1. ___________ (The Employer) for information.
(To be included on the Original sent to the Contractor)
2. Project Coordinator (Complete designation and address)
3. Associated Finance (Not in original)

223
 ANNEXURE 8.3
(Refer Para 8.14.4)

FORM OF AGREEMENT
(ON NON JUDICIAL STAMP PAPER OF APPROPRIATE VALUE)
Agreement No. ________ dated ________
THIS AGREEMENT is made on _________ day of _______ Two thousand ________
between RITES Ltd., a Government of India Enterprise and a Company registered under
Companies Act, 1956 having its registered office at SCOPE Minar, Laxmi Nagar, Delhi-
110012 and its Corporate Office at RITES BHAWAN, Plot No.1, Sector 29, Gurgaon
(Haryana) representing through ___________ RITES LIMITED acting for and on behalf
of and as an Agent / Power of Attorney Holder of _____ , hereinafter called the Employer
(which expression shall, wherever the context so demands or requires, include their
successor in office and assigns) on one part and M/s. _______ hereinafter called the
Contractor (which expression shall wherever the context so demands or requires,
include his/their successors and assigns) of the other part.
WHEREAS the Employer is desirous that certain works should be executed viz. (brief
description of the work) ______ and has by Letter of Acceptance dated ______
accepted a tender submitted by the Contrctor for the execution, completion, remedying
of any defects therein and maintenance of such works at a total Contract Price of Rs.
_______ (Rupees _________________ only)
Now THIS AGREEMENT WITNESSETH as follows:-
1. In this agreement words and expressions shall have the same meaning as are
respectively assigned to them in the Conditions of Contract hereinafter referred
to.
2. The following documents in cojunction with Addenda/ Corrigenda to Tender
Documents shall be deemed to form and be read and construed as a part of this
Agreement viz.
(a) The Letter of Acceptance dated ..............
(b) Priced Schedule (Bill) of Quantities
(c) Notice Inviting Tender and Instructions to Tenderers
(d) RITES Tender & Contract Form
(e) Special Conditions
(f) Schedules A to F
(g) Technical specifications
(h) Drawings
(i) Amendments to Tender Documents (list enclosed)
(j) General Conditions of Contract (read with Correction Slip Nos. 1 to ___ )
comprising of:
(i) Conditions of Contract
(ii) Clauses of Contract
(iii) RITES Safety Code

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 (iv) RITES Model Rules for the protection of Health and Sanitary
arrangements for Workers
(v) RITES’ Contractor’s Labour Regulations
3. In consideration of the payment to be made by the Employer to the Contractor as
hereinafter mentioned, the Contrator hereby covenants with the Employer to
execute, complete, remedy defects therein and maintain the works in conformity
in all respects with the provisions of the Contract.
4. The Employer hereby covenants to pay to the Contractor in consideration of the
execution, completion, remedying of any defects therein and maintenance of the
works, the contract price or such other sum as may become payable under the
provisions of the contract at the time and in the manner prescribed by the
Contract.
IN WITNESS where of the parties here to have caused their respective common
seals to be hereinto affixed (or have herewith set their respective hands and
seals) the day and year first above written.
SIGNED, SEALED AND DELIVERED BY

_________________________ _____________________
In the capacity of ______ representing RITES LIMITED
In the capacity of Agent / Power of
of Attorney Holder

On behalf of M/s. _______ For and on behalf of ________

(The Contractor) (The Employer)

In the presence of In the presence of

Witnesses (Signature, Name & Witnesses (Signature, Name &

Designation) Designation)

1. 1.
2. 2.

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 ANNEXURE 8.4
(Refer Para 8.15)

TIME LIMIT FOR FINALISATION OF TENDER

(TWO PACKET SYSTEM OF TECHNICAL BID AND FINANCIAL BID)
NOTE: In case of Single Packet System total time can be reduced to 40 days in place
of 70 days.
i) Opening of Tender (Technical Bid) D
ii) Submission of Briefing note to Tender Committee by
the Briefing Committee (D + 5)
iii) Tender Committee dispatches letters asking for
clarifications from the tenderers (D + 7)
iv) Tender Committee reviews the clarifications and
submits its recommendations to the Accepting Authority (D + 22)
v) Tender Accepting Authority communicates its decision
about the Tenderers whose Technical Bids are acceptable.
Tenderers concerned advised of Date and Time for opening
Of Financial Bids. (D + 30)
vi) Opening of Financial Bids (D + 40)
vii) Submission of Briefing Note and Comparative
Statement to the Tender Committee by Briefing Committee (D + 45)
viii) Tender Committee reviews the above and submits its
recommendations to the Accepting Authority (D + 55)
ix) Accepting Authority’s decision (D + 68)
x) Issue of Letter of Acceptance to the Successful Tenderer (D + 70)

226
 ANNEXURE 8.5
(Refer Para 8.3.2 (iii) & Para 8.11.1)

Ministry of Micro, Small and Medium Enterprises

Office of Development Commissioner (MSME)

New Delhi,
The 23rd March, 2012

ORDER

Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012

Whereas, the Central Government Ministries, Departments and Public Sector

Undertakings shall procure minimum of 20 per cent of their annual value of goods or
services from Micro and Small Enterprises;

And whereas, the Public Procurement Policy shall apply to Micro and Small
Enterprises registered with District Industries Board or Coir Board or National Small
Industries Corporation or Directorate of Handicrafts and Handloom or any other body
specified by Ministry of Micro, Small and Medium Enterprises;

And whereas, the Public Procurement Policy rests upon core principles of
competitiveness, adhering to sound procurement practices and execution of orders for
supply of goods or services in accordance with a system which is fair, equitable,
transparent, competitive and cost effective; and

And whereas, for facilitating promotion and development of micro and small
enterprises, the Central Government or the State Government, as the case may be, by
Order notify from time to time, preference policies in respect of procurement of goods
and services, produced and provided by micro and small enterprises, by its Ministries or
Departments, as the case may be, or its aided institutions and public sector enterprises.

Now, therefore, in exercise of the powers conferred in section 11 of the Micro,

Small and Medium Enterprises Development (MSMED) Act 2006, the Central
Government, by Order, notifies the Public Procurement Policy (hereinafter referred to as
the Policy) in respect of procurement of goods and services, produced and provided by
micro and small enterprises, by its Ministries, Departments and Public Sector
Undertakings.

2. Short title and commencement –

(1) This Order is titled as `Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order, 2012.’
(2) It shall come into force with effect from Ist April, 2012.

3. Mandatory procurement from Micro Small and Enterprises – (1) Every

Central Ministry or Department or Public Sector Undertaking shall set an annual
goal of procurement from Micro and Small Enterprises from the financial year
2012-13 and onwards, with the objective of achieving an overall procurement of

227
 minimum of 25 per cent, of total annual purchases of products produced and
services rendered by Micro and Small Enterprises in a period of three years.

(2) Annual goal of procurement also include sub-contracts to Micro and Small
Enterprises by large enterprises and consortia of Micro and Small
Enterprises formed by National Small Industries Corporation.

(3) After a period of three years i.e. from Ist April, 2015, overall procurement
goal of minimum of 25 per cent shall be made mandatory.

(4) The Central Ministries, Departments and Public Sector Undertakings which
fail to meet the annual goal shall substantiate with reasons to the Review
Committee headed by Secretary (Micro, Small and Medium Enterprises),
constituted in Ministry of Micro, Small and Medium Enterprises, under this
Policy.

4. Special provisions for Micro and Small Enterprises owned by Scheduled

Castes or Scheduled Tribes – Out of 25 per cent target of annual procurement
from Micro and Small Enterprises, a sub-target of. 4 per cent out of 25 per cent,
shall be earmarked for procurement from Micro and Small Enterprises owned by
the Scheduled Caste or the Scheduled Tribe entrepreneurs and minimum 3
percent(within the above mentioned 25 percent) shall be earmarked for
procurement from women owned MSEs. Provided that, in event of failure of such
Micro and Small Enterprises to participate in tender process or meet tender
requirements and L1 price, 4 per cent and 3 percent sub-target for procurement
earmarked for Micro and Small Enterprises owned by Scheduled Caste or
Scheduled Tribe and women entrepreneurs respectively, shall be met from other
Micro and Small Enterprises.

5. Reporting of targets in Annual Report – (1) The data on Government

procurements from Micro and Small Enterprises is vital for strengthening the
Policy and for this purpose, every Central Ministry or Department or Public Sector
Undertaking shall report goals set with respect to procurement to be met from
Micro and Small Enterprises and achievement made thereto in their respective
Annual Reports.

(2) The annual reporting shall facilitate in better understanding of support being
provided by different Ministries or Departments or Public Sector
Undertakings to Micro and Small Enterprises.

6. Price quotation in tenders – (1) In tender, participating Micro and Small

Enterprises quoting price within price band of L1+15 per cent shall also be
allowed to supply a portion of requirement by bringing down their price to L1 price
in a situation where L1 price is from someone other than a Micro and Small
Enterprise and such Micro and Small Enterprise shall be allowed to supply up to
20 per cent of total tendered value.

(2) In case of more than one such Micro and Small Enterprise, the supply shall
be shared proportionately (to tendered quantity).

228
7. Developing Micro and Small Enterprise vendors – The Central Ministries or
Departments or Public Sector Undertakings shall take necessary steps to
develop appropriate vendors by organizing Vendor Development Programmes or
Buyer-Seller Meets and entering into Rate Contract with Micro and Small
Enterprises for a specified period in respect of periodic requirements.

8. Annual Plan for Procurement from Micro and Small Enterprises on

websites – The Ministries or Departments or Public Sector Undertakings shall
also prepare Annual Procurement Plan for purchases and upload the same on
their official website so that Micro and Small Enterprises may get advance
information about requirement of procurement agencies.

9. Enhancing participations of Micro and Small Enterprises including those

owned by Scheduled Castes or Scheduled Tribes in Government
procurements – For enhancing participation of Scheduled Castes or Scheduled
Tribes in Government procurement, the Central Government Ministries,
Departments and Public Sector Undertakings shall take following steps, namely:-

(a) Special Vendor Development Programmes or Buyer-Seller Meets shall be

conducted by Departments/Public Sector Undertakings for Scheduled
Castes or Scheduled Tribes;
(b) Outreach programmes shall be conducted by National Small Industries
Corporation to cover more and more Micro and Small Enterprises from
Scheduled Castes or Scheduled Tribes under its schemes of consortia
formation; and
(c) National Small Industries Corporation shall open a special window for
Scheduled Castes or Scheduled Tribes under its Single Point Registration
Scheme (SPRS).

10. Reduction in transaction cost – To reduce transaction cost of doing business,

Micro and Small Enterprises shall be facilitated by providing them tender sets
free of cost, exempting Micro and Small Enterprises from payment of earnest
money, adopting e-procurement to bring in transparency in tendering process
and setting up a Grievance Cell in the Ministry of Micro, Small and Medium
Enterprises.

11. Reservation of specific items for procurement – To enable wider dispersal of

enterprises in the country, particularly in rural areas, the Central Government
Ministries or Departments of Public Sector Undertakings shall continue to procure
358 items (Appendix) from Micro and Small Enterprises , which have been
reserved for exclusive purchase from them. This will help in promotion and
growth of Micro and Small Enterprises, including Khadi and Village Industries,
which play a critical role in fostering inclusive growth in the country.

12. Review Committee – (1) A Review Committee has been constituted under the
Chairmanship of Secretary, Ministry of Micro, Small and Medium Enterprises, for
monitoring and review of Public Procurement Policy for Micro and Small
Enterprises vide Order No. 21(1)/207-MA dated the 21st June, 2010 (Annexure).

229
 (2) This Committee shall, inter alia, review list of 358 items reserved for
exclusive purchase from Micro and Small Enterprises on a continuous basis,
consider requests of the Central Ministries or Departments or Public Sector
Undertakings for exemption from 20 per cent target on a case to case basis
and monitor achievements under the Policy.

13. Setting up of Grievance Cell – In addition, a `Grievance Cell’ will be set up in

Ministry of Micro, Small and Medium Enterprises for redressing grievances of
Micro and Small Enterprises in Government procurement. This cell shall take up
issues related to Government procurement raised by Micro and Small
Enterprises with Departments or agencies concerned, including imposition of
unreasonable conditions in tenders floated by Government Departments or
agencies that put Micro and Small Enterprises at a disadvantage.

14. Special Provisions for Defence Procurements – Given their unique nature,
defence armament imports shall not be included in computing 20 per cent goal
for Ministry of Defence. In addition, defence equipments like weapon systems,
missiles, etc. shall remain out of purview of such Policy of reservation.

15. Monitoring of Goals – The monitoring of goals set under the Policy shall be
done, in so far as they relate to the Defence sector, by Ministry of Defence itself
in accordance with suitable procedures to be established by them.

16. Removal of difficulty – Any difficulties experienced during the course of

implementation of the above Policy shall be clarified by Ministry of Micro, Small
and Medium Enterprises through suitable Press releases which would be kept on
the public domain.

(AMARENDRA SINHA)
Additional Secretary and Development Commissioner (MSME)

230
 Annexure- 8.5 A

OFFICE MEMORANDUM

Sub: Amendment to the Rule 170 (i) of General Financial Rules (GFR),
2017.

The reference of Department of Industrial Policy & Promotion (DIPP) to exempt

Startups from submitting Ernest Money Deposit(EMD) has been considered and
it has been decided to revise the Rule 170 (i) of GFRs, 2017 regarding ‘ Bid
Security’ as under:
“Revised Rule 170(i): To safeguard against a bidder’s withdrawing or altering its
bid during the bid validity period in the case of advertised or limited tender
enquiry, Bid Security (also known as Earnest Money) is to be obtained from the
bidders except Micro and Small Enterprise (MSEs) as defined in MSE
Procurement Policy issued by Department of Micro, Small and Medium
Enterprises (MSME) or are registered with the Central Purchase Organization or
the concerned Ministry or Department or Startups as recognized by
Department of Industrial Policy & Promotion (DIPP). The bidders should be
asked to furnish bid security along with their bids. Amount of bid security should
ordinarily range between two percent to five percent of the estimated value of the
goods to be procured. The amount of bid security should be determined
accordingly by the Ministry or Department and indicated in the bidding
documents. The bid security may be accepted in the form of Account Payee
Demand Draft, Fixed Deposit Receipt, Banker’s Cheque or Bank Guarantee from
any of the Commercial Banks or payment online in an acceptable form,
safeguarding the purchaser’s interest in all respects. The bid security is normally
to remain valid for a period of forty-five days beyond the final bid validity period”.

2. This OM is also available on our website http://doe.gov.in -> notification ->

Circular --> Procurement Policy OM.

3. Hindi version of this OM will follow

(Vinayak T. Likhar)

Under Secretary to Govt. Of India

231
 Annexure 8.6
(Ref Para 8.3.26)

Format of Tender Opening Register

Name of Work:
Estimated Cost Put to Tender:
Tender No:
Date & Time of Receipt of Tenders: On ………... / ………... / …………………… upto ………… : ……….. Hrs.
Date & Time of Opening of Tenders: On ………... / ………... / …………………… at ………… : ……….. Hrs.

Details of Late / Delayed Tenders:

No. of Tenders received upto Stipulated Date & Time:
Details of Tenders Opened :
S. Name of the Tenderer Details of EMD Details of Cost of Conditions if * * * * * * * Signature of Remarks, if
No. Tender Document (If any Quoted by Total Amount of Percentage Total Quoted Total Quoted Total Amount Unconditional Total Amount Tenderer or any of Tender
Downloaded) the Tenderer Schedule Items (Above/Below) Amount of Amount of All Quoted (in Rs.) Rebate, if any after Rebate (in his Opening
put to Tender Quoted against Shedule Items (in Items for which (8 + 9) Rs.) Respresentati Committee /
(in Rs.) Shedule Items Quoted on Item Rates have ve with Name Observer
(Applicable in case percentage basis been quoted of Signatory
of Percentage ( in Rs.) including Non- & their
Schedule tenders Shedule Items (in remarks if any
only) Rs.)

1 2 3 4 5 6 7 8 9 10 11 12 14 15

232
 Annexure 8.6
(Contd.)

DECLARATION BY TENDERERS OR THEIR REPRESENTATIVES

1 At the time of dropping our bid, we were satisfied that the tender box was locked and sealed.
2 Tender box was opened in our presence to our satisfaction at the Scheduled Time & Date.
3 All the bids were shown to us in sealed condition before opening.
4 Sealed envelops containing Price Bids of all responsive tenderers were placed in another envlop which was sealed in our presence.

5 *The Percentage quoted above/below Schedule Items in case of Percentage Rate Tender & Amount thereof was read out by the Tender Opening Committee.
*Quoted Rates & Amounts of all the items i/c Non Schedule items for which item rates were invited were read out by the Tender Opening Committee to our
6 satisfaction.
7 Conditions, if any, quoted by tenderers were read out by Tender Opening Committee to our satisfaction.
8 * Unconditional Rebate & Amount after Rebate were read out by Tender Opening Committee to our satisfaction.
9 Relevant features of the tender were read out to our satisfaction.

1. Signature
Name of Tenderer: 2. Signature 3. Signature
Name of Representative: Name of Tenderer: Name of Tenderer:
Designation of Representative: Name of Representative: Name of Representative:
Designation of Representative: Designation of Representative:

4. Signature 5. Signature 6. Signature

Name of Tenderer: Name of Tenderer: Name of Tenderer:
Name of Representative: Name of Representative: Name of Representative:
Designation of Representative: Designation of Representative: Designation of Representative:

1 (i) Signature 2 (i) Signature

(ii) Name of Member of Tender Opening Committee (ii) Name of Member of Tender Opening Committee

*Applicable when Price Bids are opened.

233
 ANNEXURE 10.1
(Refer Para 10.9)

FORM OF GUARANTEE BOND TO BE EXECUTED BY

CONTRACTORS FOR REMOVAL OF DEFECTS AFTER
COMPLETION IN RESPECT OF WATER PROOFING WORKS
(ON NON-JUDICIAL STAMP PAPER OF Rs.10/-)
The Agreement made this ______ day of _____ Two thousand and ____ between
_____ (hereinafter called the “GUARANTOR” of the one part) and ________ (hereinafter
called the “EMPLOYER”) on the other part.
Whereas this agreement is supplementary to a contract (hereinafter called the Contract)
dated ______ and made between the Guarantor of the one part and the Employer acting
through RITES Ltd. as Agent / Power of Attorney Holder of the other part, whereby the
Contractor, inter alia, undertook to render the buildings and structures in the said
contract cited completely water and leak-proof.
And whereas Guarantor agreed to give a guarantee to the effect that the said structures
will remain water and leak-proof for five years from the date of giving of water proofing
treatment.
Now the Guarantor hereby guarantees that water proofing treatment given by him will
render the structures completely leak-proof and the minimum life of such water proofing
treatment shall be five years to be reckoned from the date after the maintenance period
prescribed in the contract.
Provided that the Guarantor will not be responsible for leakage caused by earthquake or
structural defects or misuse of roof or alteration and for such purpose.
a) Misuse of roof shall mean any operation which will damage water-proofing
treatment, like chopping of firewood and things of the same nature which might
cause damage to the roof.
b) Alteration shall mean construction of an additional storey or a part of the roof or
construction adjoining to existing roof whereby water-proofing treatment is
removed in parts.
c) The decision of the Employer with regard to cause of leakage shall be final.
During this period of guarantee, the Guarantor shall make good all defects and in case
of any defect being found, render the building water proof to the satisfaction of the
Employer at his cost and shall commence the work for such rectification within seven
days from the date of issue of the notice from the Employer calling upon him to rectify
the defects failing which the work shall be got done by the Employer by some other
contractor at the Guarantor’s cost and risk. The decision of the Employer as to the cost,
payable by the Guarantor shall be final and binding.
That if Guarantor fails to execute the water proofing or commits breach thereunder then
the Guarantor will indemnify the Employer and his successors against all loss, damage,
cost expense or otherwise which may be incurred by him by reason of any default on the
part of the Guarantor in performance and observance of this supplementary agreement.
As to the amount of loss and / or damage and / or cost incurred by the Employer the
decision of the Employer will be final and binding on the parties.

234
In witness whereof these present have been executed by the Guarantor _______ and by
________ (Name and Designation of Officer of RITES Ltd. ) acting for and on behalf of
the Employer as Agent / Power of Attorney Holder on the day, month and year first
above written.
SIGNED, SEALED and delivered by GUARANTOR in the presence of :-
1.
2.
SIGNED for and on behalf of RITES LTD. by ________ in the presence of:-
1.
2.
Copy to the Employer

235
 ANNEXURE 10.2
(Refer Para 10.9)

FORM OF GUARANTEE BOND TO BE EXECUTED BY CONTRACTORS FOR

REMOVAL OF DEFECTS AFTER COMPLETION IN RESPECT OF ANTI TERMITE
TREATMENT WORKS
(ON NON JUDICIAL STAMP PAPER OF Rs. 10/-)
This Agreement made this ___ day of Two Thousand ____ between M/s.____________
(hereinafter called the “GUARANTOR” of the one part) and the ____ (hereinafter called
the “EMPLOYER” of the other part).
Whereas this agreement is supplementary to a contract (hereinafter called the Contract)
dated _____ made between the Guarantor of the one part and the Employer acting
through RITES Ltd. as Agent / Power of Attorney Holder of the other part, whereby the
Contractor, interalia, undertook to render the Buildings and structures in the said
contract cited completely Termite proof.
And whereas the Guarantor agreed to give a guarantee to the effect that the said
structures will remain Termite-proof for ten years to be reckoned from the date after the
maintenance period prescribed in the contract expires.
During this period of guarantee the Guarantor shall make good all defects and for that
matter, shall replace at his risk and cost, such wooden members as may be damaged
by termites and in case of any other defect being found he shall render the building
termite proof at his cost to the satisfaction of the Employer and shall commence the
works of such rectification within seven days from the date of issuing notice from the
Employer calling upon him to rectify the defects failing which the work shall be got done
by the Employer by some other Agency at the Guarantor’s cost and risk and in the latter
case the decision of the Employer as to the cost recoverable from the Guarantor shall be
final and binding.
That if the Guarantor fails to execute the Anti Termite Treatment or commits breaches
there under, then the Guarantor will indemnify the Employer and his successors against
all loss, damage, cost expense or otherwise which may be incurred by him by reason of
any default on the part of the Guarantor in performance and observance of this
supplementary agreement. As to the amount of loss and / or damage and / or cost
incurred by the Employer, the decision of the Employer will be final and binding on the
parties.
In witness whereof these present have been executed by the Guarantor ___________
and by ___ (Name and Designation of Officer of RITES Ltd.) for and on behalf of the
Employer as Agent / Power of Attorney Holder on the day, month and year first above
written..
SIGNED, SEALED and delivered by the GUARANTOR in the presence of ___
1.
2.
SIGNED for and on behalf of RITES LTD. by —— in the presence of -
1.
2.
Copy to the Employer

236
 ANNEXURE 12.1
(Refer Para 12.2.4)

PROFORMA FOR LETTER TO BE ISSUED BY THE

ENGINEER-IN-CHARGE TO THE CONTRACTOR IN CASES OF FAILURE OF

CONTRACTOR UNDER CLAUSE 3 OF CONTRACT TO RECTIFY/

RECONSTRUCT/REPLACE ANY DEFECTIVE WORK

(Same Proforma can be used with some modification if work is being performed in an
inefficient or improper or unworkman like manner)
BY REGD. POST / ACK. DUE
(NOTICE UNDER CLAUSE 3 (i) OF CONTRACT)
Office of _______ (Engineer in Charge)
Letter No. dated
To
(Contractor)
Address
Dear Sir,
Sub: Contract Agreement No. ______ dated ____ Name of work ___________
Your attention is invited to the instructions issued on ______(Date) in the Site Order
Book wherein you have been directed to rectify/reconstruct/replace the following
defective work. ___________________
1. It is noticed that in spite of the fact that considerable time has elapsed since the
issue of such instructions, you have not taken any action to
rectify/reconstruct/replace the defective work.
2. It is accordingly felt that you are not in a position to discharge your obligations
under the contract. I therefore hereby in the capacity of Engineer in charge give
you notices that if the said rectification/reconstruction/replacement of the
defective work is not taken up by you within 7 days of the date of issue of this
letter and you complete the same within the next —— days thereafter, the
undersigned will be obliged to recommend to the Competent Authority for
determination of the Contract on account of your default in the discharge of your
contractual obligation. In the event of such a Determination of the Contract, in
terms of Clause 3 (i) of the Contract, the Earnest Money Deposit, Security
Deposit already recovered and Performance Guarantee shall be forfeited by the
Employer and further action will be taken as stipulated in Clause 3 of the
contract, without prejudice to the other rights or remedies available to the
Employer under the terms of the Contract or under law.

237
3. Please acknowledge receipt of this letter.

Yours faithfully,

Engineer-in-Charge
For and on behalf of RITES Ltd
Copy to:

Site Engineer

238
 ANNEXURE 12.2
(Refer Para 12.2.4)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-CHARGE TO THE

CONTRACTOR IN CASES OF FAILURE BY CONTRACTOR UNDER CLAUSE 3 OF
CONTRACT TO LIFT SUSPENSION OF WORK / TO PROCEED WITH THE WORK
WITH DUE DILIGENCE
BY REGD. POST / ACK. DUE
(NOTICE UNDER CLAUSE 3 (ii) OF CONTRACT)
Office of _______ (Engineer in Charge)
Letter No. dated
To
(Contractor)
Address
Dear Sir,
Sub: Contract Agreement No. ______ dated ____ Name of work ___________
Your attention is invited to the instructions issued on ____(Date) in the Site Order Book
wherein you have been directed to restart the work which has been kept suspended
since ______ (date) without any reasonable cause / to proceed with the work with due
diligence so as to complete the work within the stipulated completion date _____.
1. It is noticed that in spite of the fact that considerable time has elapsed since the
issue of such instructions, you have not taken any action to restart the work / to
proceed with the work with due diligence.
2. It is accordingly felt that you are not in a position to discharge your obligations
under the contract. I therefore hereby in the capacity of Engineer-in-charge give
you notices that if the said restarting of the work/ proceeding with the work with
due diligence is not taken up by you within 7 days of the date of issue of this
letter and you complete the same within the contract period the undersigned will
be obliged to recommend to the Competent Authority for determination of the
Contract on account of your default in the discharge of your contractual
obligation. In the event of such a Determination of the Contract, in terms of
Clause 3 (ii) of the Contract, the Earnest Money Deposit, Security Deposit
already recovered and Performance Guarantee shall be forfeited by the
Employer and further action will be taken as stipulated in Clause 3 of the
contract, without prejudice to the other rights or remedies available to the
Employer under the terms of the Contract or under law.
3. Please acknowledge receipt of this letter.
Yours faithfully,
Engineer-in-Charge
For and on behalf of RITES Ltd
Copy to: Site Engineer

239
 ANNEXURE 12.3
(Refer Para 12.2.4)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-CHARGE TO THE

CONTRACTOR IN CASES OF FAILURE BY CONTRACTOR UNDER CLAUSE 3 OF
CONTRACT TO ACCELERATE THE PROGRESS OF WORK FOR COMPLETION BY
THE STIPULATED
COMPLETION DATE
BY REGD. POST / ACK. DUE
(NOTICE UNDER CLAUSE 3 (iii) OF CONTRACT)
Office of _______ (Engineer in Charge)
Letter No. dated
To
(Contractor)
Address
Dear Sir,
Sub: CONTRACT AGREEMENT NO. ______ DATED ____ NAME OF WORK ___________
The date of completion of work under the above mentioned contract is ___ and I notice
that the progress of the work has been very slow and unless you proceed with due
diligence and accelerate the progress of the work, you are not likely to complete the
work by the stipulated completion date.
1. I in the capacity of Engineer-in-charge hereby draw your attention to the fact that time is
of the essence of this contract and accordingly give you notice that if you do not take
necessary action to accelerate the progress of work, within 7 days of issue of this letter, I
will be obliged to recommend to the Competent Authority for determination of the
Contract on account of your default in the discharge of your contractual obligation. In
the event of such a Determination of the Contract, in terms of Clause 3 (iii) of the
Contract, the Earnest Money Deposit, Security Deposit already recovered and
Performance Guarantee shall be forfeited by the Employer and further action will be
taken as stipulated in Clause 3 of the contract, without prejudice to the other rights or
remedies available to the Employer under the terms of the Contract or under law.
2. Please acknowledge receipt of this letter.
Yours faithfully,
Engineer-in-Charge
For and on behalf of RITES Ltd
Copy to: Site Engineer

240
 ANNEXURE 12.4
(Refer Para 12.2.4)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-CHARGE TO THE

CONTRACTOR IN CASES OF FAILURE BY CONTRACTOR UNDER CLAUSE 3 OF
CONTRACT TO CARRY OUT HIS OBLIGATIONS UNDER THE CONTRACT
BY REGD. POST / ACK. DUE
(NOTICE UNDER CLAUSE 3 (iv) OF CONTRACT)
Office of _______ (Engineer in Charge)
Letter No. dated
To
(Contractor)
Address
Dear Sir,
Sub: CONTRACT AGREEMENT NO. ______ DATED ____ NAME OF WORK
___________
Your attention is invited to the instructions issued on _______(Date) in the Site Order
book wherein you had been directed to carry out the following obligations under the
contract / to comply with the following terms and conditions of the contract.
______________ _________
1. It is noticed that in spite of the fact that considerable time has elapsed since the
issue of such instructions, you have not taken any corrective action.
2. It is accordingly felt that you are not in a position to discharge your obligations
under the contract. I therefore hereby in the capacity of Engineer in charge give
you notice that if you do not take necessary correction action within 7 days of the
date of issue of this letter the undersigned will be obliged to recommend to the
Competent Authority for determination of the Contract on account of your default
in the discharge of your contractual obligation. In the event of such a
Determination of the Contract, in terms of Clause 3 (iv) of the Contract, the
Earnest Money Deposit, Security Deposit already recovered and Performance
Guarantee shall be forfeited by the Employer and further action will be taken as
stipulated in Clause 3 of the contract, without prejudice to the other rights or
remedies available to the Employer under the terms of the Contract or under
law.
3. Please acknowledge receipt of this letter.
Yours faithfully,
Engineer-in-Charge
For and on behalf of RITES Ltd
Copy to: Site Engineer

241
 ANNEXURE 12.5
(Refer Para 12.2.4)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-CHARGE TO THE

CONTRACTOR ON DETERMINATION OF CONTRACT UNDER CLAUSE 3 OF
CONTRACT
BY REGD. POST / ACK. DUE
Office of _______ (Engineer-in-Charge)
Letter No. dated
To
(Contractor)
Address
Dear Sir,
Sub: CONTRACT AGREEMENT NO. ______ DATED ____ NAME OF WORK
___________
Ref: Show Cause Notice under Clause 3(____) of Contract issued vide letter No.
_______ dated _____ by ______ (Site Engineer)
In spite of the Notice issued to you through letter under reference in connection with the
work to be executed under the above mentioned contract, you have failed to (score out
whatever is not applicable and add / delete as required)
• Rectify / reconstruct / replace the following defective work _______
• Stop performance of the following work in an inefficient, improper and
unworkman like manner.
• Lift suspension of work imposed by you without any reasonable cause and
proceed with the work with due diligence.
• Complete the work within the stipulated date of completion of _______
• Carry out your obligation under the Contract and comply with the terms
and conditions of the contract as detailed below______
• No reply has been received to the Show Cause Notice under reference till
date/Your reply vide your letter No._____ dated _____ in response to the
Show Cause Notice has been considered carefully but not found to the
satisfaction of the Engineer-in-charge due to reasons mentioned below.
__________ (strike out whichever alternative is not applicable).
1. Therefore, the undersigned ____ (Designation) of RITES Limited acting for and
on behalf of as Agent / Power of Attorney Holder of __________ (the Employer)
in exercise of the powers vested in me in terms of Clause 3 of Contract and
without prejudice to any other right or remedy which shall have accrued or shall
accrue hereafter to the Employer under the terms of the above said Contract,
hereby terminate your Contract on account of your default and the said contract
shall stand terminated with effect from ____ (date).

242
2. You are advised that with the termination of the Contract in your favour, in terms
of Clause 3 of Contract, your Earnest Money Deposit, Security Deposit already
recovered and Performance Guarantees under the Contract shall stand forfeited
and shall be absolutely at the disposal of the Employer.
3. You are accordingly requested to report to office of ____ (Site Engineer) in
person or through an accredited representative at _____ on ______ where an
inventory of complete / incomplete works will be made and recorded jointly. In
the event of your failure to keep up this appointment, inventory will nevertheless
be prepared not withstanding your absence and the same shall be final and fully
binding on you.
4. Please also note that in terms of the provisions under Clause 3 of Contract, the
works remaining unexecuted by you and now taken out of your hands, will be got
executed by another Contractor and you will not be allowed to participate in the
tendering process for the balance work.
5. It may also be noted that in terms of Clause 3 of Contract, with this Termination
of Contract you shall have no claim to compensation for any loss sustained by
you by reason of your having purchased or procured any material or entered into
any engagements or made any advances on account or with a view to execution
of the work or performance of the contract. You shall be entitled to be paid only
for the work actually performed under the contract upto the date of Termination of
the Contract as certified by _____ (Engineer).
6. This is without prejudice to any other right or remedy which shall have accrued or
accrue hereafter to the Employer.
7. Please acknowledge receipt of this letter.

Yours faithfully,
Engineer-in-Charge
for and on behalf of
: RITES Ltd.
N.O.O.

Copy to:

i) Tender Accepting Authority

for information.

ii) Site Engineer

Copy to The Employer for information

243
 ANNEXURE 12.6
(Refer Para 12.14)

PROFORMA FOR LETTER BY ENGINEER-IN-CHARGE TO THE CONTRACTOR ON

FORECLOSURE OF CONTRACT UNDER CLAUSE 13 OF CONTRACT
BY REGD. POST. / ACK. DUE.
Office of (Engineer in Charge)
Letter No._____ dated_____
To
(Contractor)
Address
Dear Sir,
Sub: CONTRACT AGREEMENT No. _____ DATED ______ NAME OF
WORK___________
It has been decided by the Employer to abandon / reduce the scope of works and
accordingly the items of works listed at Annexure 1 are not required to be carried out by
you. In terms of Clause 13 of Contract, this foreclosure of Contract is within the
Competence of the Employer by giving you notice in writing.
1. In terms of Clause 13 of Contract, the undersigned _____ (Designation) of
RITES Ltd. acting for and on behalf of as Agent / Power of Attorney Holder of
____ (the Employer) hereby foreclose the Contract under reference with the
direction that the items of works listed at Annexure 1 are not to be carried out by
you.
2. You are accordingly requested to report to the office of ______ (Site Engineer) in
person or through an accredited representative at ____ on _____ when an
inventory of complete / incomplete items of works and the materials at the site
will be made and recorded jointly. In the event of your failure to keep this
appointment, the inventory will nevertheless be prepared not withstanding your
absence and the same shall be fully binding on you.
3. The undersigned will determine the amount payable to you for the works
executed at contract rates and a reasonable amount as determined for the items
listed in Items (i) to (v) of Clause 13 of Contract subject to the limit mentioned
therein. You will be advised the details of the documents and other information
to be made available by you, to facilitate completion of the above exercise.
4. Your attention is invited specially to the provisions in Clause 13 of the Contract
to the effect that you shall have no claim to any payment of compensation or
otherwise whatsoever, an account of any profit or advantage which you might
have derived from the execution of the works listed at Annexure 1.
5. This Notice is without prejudice to any other right or remedy which shall have
accrued or may accrue to the Employer under the terms of this Contract.

244
6. Kindly acknowledge receipt of this letter.
Encl: Annexure 1
Yours faithfully,
Engineer-in-Charge
N.O.O. for and on behalf of
Copy to : RITES Ltd.
i) Tender Accepting Authority for information.
ii) Site Engineer
Copy to the Employer for information.

245
 ANNEXURE 12.6A
(Refer Para 12.9)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-CHARGE TO THE

CONTRACTOR IF DUE TO DEFAULT OF THE CONTRACTOR, PART WORK / PART
INCOMPLETE WORK IS PROPOSED TO BE TAKEN OUT OF HIS HANDS, UNDER
CLAUSE 14 OF CONTRACT

BY REGISTERED POST / ACK. DUE

(SHOW CAUSE NOTICE UNDER CLAUSE 14 of CONTRACT)

Office of _____________ (Engineer in Charge)

Letter No. ___________ Dated

To

(Contractor)
Address

Dear Sir,

Sub: CONTRACT AGREEMENT No.________ DATED ____

NAME OF WORK __________

Your attention is invited to the instructions issued on _________(Date) in the

Site Order Book wherein you had been advised to have the part work / part incomplete
work items listed at Annexure completed by _________ (Date).

2) It is noticed that inspite of the fact that considerable time has elapsed since the
issue of such instructions, you have not taken any corrective action.

3) It is accordingly felt that you are not in a position to discharge your obligations
under the Contract. I therefore hereby in the capacity of Engineer-in-charge give you a
notice that if you do not take necessary corrective action within 7 days of the date of
issue of this letter, the undersigned will be obliged to recommend to the Competent
Authority for taking away part work / part incomplete work items as listed at Annexure,
from your hands and get them carried out by any other Agency, thus leaving you to
carry out only rest of the work excluding those listed at Annexure. In the event of such
an action by the Competent Authority, in terms of Clause 14 of Contract, you will be
liable for loss / damage likely to be suffered by the Employer and hence will be required
to pay to the Employer by way of compensation a sum equivalent to 20% of the value of
part work / part incomplete work items as per details listed at Annexure with the cost
determined on the basis of your Contract rates. The amount to be paid by you will
however be subject to a maximum of 10% of the Tendered Value. This is without
prejudice to any other right or remedies available to the Employer under the terms of the
contract or under law.

246
4) Please acknowledge receipt of the letter.
Yours faithfully,

Encl: Annexure
Engineer-in-Charge
For and on behalf of RITES Ltd
Copy to: Site Engineer

247
 ANNEXURE – 12.6 B

(Refer Para 12.9)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-CHARGE TO THE

CONTRACTOR IN CASE ACTION IS FINALLY PROPOSED TO BE TAKEN AGAINST
THE CONTRACTOR UNDER CLAUE 14 OF CONTRACT

BY REGD POST / ACK. DUE

Office of ------------- (Engineer-in-Charge)

Letter No. ………………. Dated:

To:

(Contractor)
Address

Dear Sir,

Sub: CONTRACT AGREEMENT NO. ---------------------- DATED -----------------------

NAME OF WORK ----------------------

Ref: SHOW CAUSE NOTICE UNDER CLAUSE 14 OF CONTRACT ISSUED VIDE

LETTER NO. --------------------- DATED -------------- BY ------------------- (SITE
ENGINEER)

In spite of the Show Cases Notice issued to you through letter under reference in
connection with the work to be executed under the above mentioned contract, you have
failed to carry out your obligations under the contract as listed in the Show Cases Notice.

2) Therefore, the undersigned ------------- (Designation) of RITES LTD., acting for

and on behalf of a Agent/Power of Attorney Holder of ----------- (the Employer), in
exercise of the powers vested in me in terms of Clause 14 of contract, and
without prejudice to any other right or remedy which shall have accrued or shall
accrue to the Employer under the terms of the above said contract or under Law,
hereby withdraw from your hands the part work/part incomplete work items listed
at Annexure with effect from --------- on account of your default.

3) You are advised that in terms of the provisions under Clause 14 of the contract,
you are liable to pay to the Employer within 30 days from the date of issue of this
letter, an amount equivalent to 20% of the value of part work/part incomplete
work as detailed at Annexure enclosed. The amount to be paid by you has been
determined based on your contract rates including Price Variation as applicable
on the date of issue of this letter. The amount to be paid by you will however be
subject to the limit of maximum of 10% of Tendered Value. If the payment is not

248
 effected within the stipulated period of 30 days, action will be taken to recover the
amount as per procedure laid down in Clause 14 of contract.

4) Please note that the part work/part incomplete work being taken out of your
hands, will be got executed by another Agency at the discretion the Employer
and you will not be allowed to participate in the Terdering process for the same.

5) You are directed to continue with execution of the rest of work excluding that
taken out of your hands and complete them within the Scheduled date of
completion/extended date of completion for which all conditions of contract under
reference will be applicable.

6) Please also note that you will have no claim to compensation for any loss
sustained by you by reason of having purchased or procured any materials or
entered into any engagement or made any advance on any account with a view
to execution of work or the performance of the contract so far as they relate to
the part work/part incomplete work items now taken out of your hands.

7) This is without prejudice to any other right or remedy which has accrued or shall
accrue hereafter to the Employer under the Contract or under Law.

8) Please acknowledge receipt of this letter.

Yours faitufully,

Encl: Annexure
Engineer-in-Charge
For and on behalf of
RITES LTD.
Not in Original

Copy to:

(i) Tender Accepting Authority - for information

(ii) Site Engineer

Copy to:

The Employer - for information

249
 ANNEXURE 12.7
(Refer Para 12.14)

PROFORMA FOR LETTER FROM THE SITE ENGINEER ON BEHALF OF

ENGINEER-IN-CHARGE TO THE CONTRACTOR FOR RECTIFICATION OF
DEFECTS DURING THE MAINTENANCE PERIOD UNDER
CLAUSE 17 OF CONTRACT
BY REGD. POST / ACK. DUE
Office of ____ (Site Engineer)
Letter No. ____ dated____
To
The Contractor
Address
Dear Sir,
Sub: Contract Agreement No. ____ dated ____Name of work
_____________________
In the works completed by you under the above mentioned Contract since the date of
taking over of the works from you, the following defects have been observed to have
developed.
a)
b)
In terms of the provisions under Clause 17 of Contract, you are liable to rectify the
defects observed during the currency of the Maintenance period which in this Contract
extends upto ____ (date). You are accordingly hereby called upon to rectify the said
defects by ___ (date) failing which the same shall be got rectified through any other
agency at your risk and cost without any further notice to you and you shall solely be
liable there for.
Please acknowledge receipt.
Yours faithfully,

(for Engineer-in-Charge)
Copy to (Engineer-in-Charge)

250
 ANNEXURE 12.8
(Refer Para 12.14)

PROFORMA FOR PROVISIONAL CERTIFICATE OF PHYSICAL COMPLETION TO

BE ISSUED BY THE ENGINEER-IN-CHARGE
Office of _______ (Engineer in charge)
Letter No. _______ dated _______
To
(Contractor)
(Address)
Dear Sir,
Sub: CONTRACT AGREEMENT No. ______ DATED ____ NAME OF WORK
___________
In pursuance of provisions under Clause 8 of Contract, I hereby certify that the work
under Contract Agreement No. ______ dated _____ for the work of ______ has been
satisfactorily completed by ________ (Contractor) on ____ (date) subject to the
following.
i) Rectification of the defects listed in the statement at Annexure 1.
ii) Clearance of site as stipulated in Clause 8 of Contract.
iii) Completion of items of works listed at Annexure 2 which are dependent
on execution by other Agencies.
2. Please ensure that the defects listed in Annexure 1 are rectified to my
satisfaction not later than ____ (dates) at your cost and under your own
arrangement. It may also be ensured that by that date, the site is made clear of
all items other than permanent work.
3. Please note that items listed at Annexure 3 are proposed to be accepted at lower
rates due to their not being strictly as per the specifications laid down in the
contract.
4. Final Completion Certificate shall be issued on completion of the items listed
above and the Defect Liability Period shall start from date of issue of Final
Completion Certificate.
Yours faithfully,
(Engineer-in-Charge)
Encl: Annexures 1, 2 & 3
Not in Original
Copy to ____ (Tender Accepting Authority) with a statement indicating the position of Extension
of Contract Period / Deviation orders / Special rates yet to be finalized and Claims from the
Contractors on which decisions are yet to be conveyed. The officials of RITES LTD. with whom
the papers are pending are indicated against each item in the statement enclosed.
Copy to the Employer for information.

251
 ANNEXURE 12.9
(Refer Para 12.14)

PROFORMA FOR FINAL COMPLETION CERTIFICATE TO BE ISSUED BY

THE ENGINEER-IN-CHARGE
Office of _______ (Engineer-in-Charge)
Letter No._____ dated_____
To

(Contractor)
Address
Dear Sir,
Sub: CONTRACT AGREEMENT No. _____ DATED ______ NAME OF
WORK___________
Ref: Provisional Certificate of Physical Completion issued under No. _______ dated
_______
In continuation of the Provisional Certificate of Physical Completion issued under
_______ dated ______ in pursuance of the provisions under Clause 8 of Contract, I
hereby certify that the work under Contract Agreement No. ___ dated _____ for the
work of _____ has been completed on___________(date). The Defect Liability Period
shall start from date of issue of this certificate.
Items listed at Annexure will be paid for at reduced rates as indicated against each item
at the Annexure. They are strictly not as per specification but since they are otherwise
structurally sound, they have been accepted at reduced rates as a special case. (PARA
TO BE DELETED IF NOT APPLICABLE)
Yours faithfully,
(Engineer-in-Charge)
Encl: Annexure
Not in Original
Copy to ____ (Tender Accepting Authority) with a statement indicating the position of
Extension of Contract Period / Deviation orders / Special rates yet to be finalized and
Claims from the Contractors on which decisions are yet to be conveyed. The officials of
RITES LTD. with whom the papers are pending are indicated against each item in the
statement enclosed.
Copy to the Employer for information.

252
 ANEXURE 12.10
(Refer Para 12.12A)

PROFORMA FOR LETTER TO THE

STATE GOVT. MINING DEPARTMENT

Office of ___________ (Engineer-in-charge)

Letter No. _________________ dated _____________

To,

_________________

, Mining Department,

Govt. of ________________

Dear Sir,

Sub: ROYALITY CHARGES CLEARANCE

CONTRACT AGREEMENT NO.______________________
BETWEEN RITES LTD. AND _____________________ CONTRACTOR

The Contract Agreement under reference has been executed by RITES on behalf of
_________________________(Employer) with __________________(Contractor) for
the work of _______________________. In the execution of the Contract, the
Contractor has used minor minerals_______________. A copy of letter no.
__________________ dated ___________issued by the Contractor to your Department
requesting for issue of Royalty Clearance Certificate in his favour is enclosed. You are
requested to kindly advise if any amount is due from the said Contractor towards royalty
charges to enable us to decide on release of final bill to the Contractor. If no reply is
received from your end within four month from the date of issue of this letter, it will be
presumed that there is nothing due from the Contractor towards Royalty charges and the
final bill to the Contractor will be released.

Yours faithfully,

(Engineer-in-Charge)

Encl: Contractor’s letter dated __________

Copy for information to:

(Contractor)

253
 ANNEXURE 13.1
(Refer Para 13.5.1)

FORM OF APPLICATION BY THE CONTRACTOR FOR SEEKING

EXTENSION OF TIME
PART -I
1. Name of Contractor
2. Name of work as given in the Agreement
3. Agreement No.
4. Estimated amount put to tender
5. Date of commencement of work as per agreement
6. Period allowed for completion of work as per agreement
7. Date of completion as stipulated in agreement
8. Period for which extension of time has been given previously:
a) 1st extension vide No.Dated From________To_______(_____Days)
b) 2nd extension vide No.Dated From________To_______(_____Days)
c) 3rd extension vide No.Dated From________To_______(_____Days)
d) 4th extension vide No.Dated From________To_______(_____Days)
Total extension previously given.
9. Reasons for which extensions have been previously given (Copies of the
previous sanctions should be attached)
10. Period for which extensions is applied for now
From______To______(_____Days)
11. Hindrances on account of which extensions is applied for with dates on which
hindrances occurred and the period for which these are likely to last. (Details are
to be filled in for each of the Hindrance)
a) Serial No.
b) Nature of hindrance
c) Date of occurrence
d) Period for which it is likely to last
e) Period for which extension required for this particular hindrance
f) Overlapping period if any, with reference to item________
g) Net extension applied for
h) Remarks, if any.
Total period on account of hindrances mentioned above _____ Months ____
Days
12. Extension of time required for extra work
a) Details of extra work and the amount involved:-

254
 b) Proportionate period of extension of time based on estimated amount put
to tender on account of extra work.
13. Total extension of time required for 11 & 12

Submitted to the Site Engineer

Signature of Contractor
Dated

255
 APPLICATION FOR EXTENSION OF TIME
PART II
(To be filled in by the Site Engineer)
1. Date or receipt of application from _______
Contractor for the work of ________
2. Acknowledgement issued vide No._______ dated
3. Remarks of Site Engineer on the reasons given by the contractor as to whether
they are correct and what extension, if any, is recommended by him. If he
recommends the extension with liquidated damages reasons for the same should
be given.
Signature of Site
Engineer
Dated
(To be filled in by the nominated Project Coordinator).
1. Date of receipt in the Office
2. Project Co-ordinator’s remarks regarding hindrances mentioned by the
Contractor.
i) Serial No.
ii) Nature of hindrance
iii) Date of occurrence
iv) Period for which hindrance is likely to last
v) Extension of time applied for by the contractor
vi) Overlapping period, if any, giving reference to items which overlap
vii) Net period for which extension is recommended
viii) Remarks as to why the hindrance occurred and justification for extension
recommended.
3 Project Co-ordinator’s Remarks on Request for Extension of time for extra
works.
4 Project Coordinator’s recommendations on whether extension can be given with
or without penalty. The present progress of the work should be stated and
whether the work is likely to be completed by the date upto which extension has
been applied for. If extension of time is recommended with penalty what
compensation is recommended to be levied under Clause 2 of the agreement.

Signature of Project Co-ordinator

Date

256
Engineer –in-Charge’s remarks on hindrances, extension of time on account of extra
works and his recommendations on whether extension can be given with or without
liquidated damages.

Signature of Engineer-in-Charge

Remarks of Associated Finance

Signature of AGM/GM (Finance

Decision by the Competent Authority

(Sl. No. 8 of SOP)

Designation

Copy to the Employer for information

257
 ANNEXURE 13.2
(Refer Para 13.6.1)

PROFORMA FOR GRANT OF EXTENSION OF TIME

(ADVANCE INTIMATION PENDING DECISION ON LEVY
OF LIQUIDATED DAMAGES)

To
Name_______
Address of the Contractor ______
Agreement No. & date
Subject:
Dear Sir(s),
Reference your letter No._______ dated _____ in connection with the grant of extension
of time for completion of the work ________
The date of completion for the above mentioned work is ________ as stipulated in the
agreement dated the ____. Last extension of time granted was upto _______ vide this
office Letter No._________________________ dated ________.
Extension of time for completion of the above mentioned work is now granted upto ____
without prejudice to the right of RITES to recover liquidated damages in accordance with
the provision of Clause 2 of the said agreement dated the ____. Decision by the
Competent Authority on levy of liquidated damages will be communicated to you in due
course.
Provided that notwithstanding the extension hereby granted, time is and shall still
continue to be the essence of the said agreement.
Yours faithfully,

Engineer-in-Charge
For and on behalf of RITES LTD.
N.O.O
Copy to the Employer for information.

258
 ANNEXURE 13.3
(Refer Para 13.6.2)

PROFORMA FOR GRANT OF EXTENSION OF TIME

WITHOUT LEVY OF LIQUIDATED DAMAGES
To
Name:-
Address of the Contractor:-
Agreement No. & Date:-
Subject:
Dear Sir(s),
Reference your letter No. dated in connection with the grant of extension of time
for completion of the work upto _______ and this office Letter No._________________
dated ______ granting extension upto ______ reserving the right to levy Liquidated
Damages in accordance with the provisions of Clause 2 of the Agreement.
The date of completion for the above mentioned works is _______ as stipulated in the
Agreement dated _______ Last Extension of time granted is upto ____ vide this office
letter No._______________ dated_____.
Taking into overall consideration the points brought out by you and also the delays on
your part in execution of the work, Extension of time for completion of the above
mentioned work is granted upto ____ without levy of Liquidated damages by the
Authority Competent to grant such extension in terms of Clause 5 of the Agreement.
Notwithstanding the extension hereby granted, time is and shall continue to be the
essence of the said agreement.
Yours faithfully,

Engineer-in-Charge
For and on behalf of RITES LTD.
Copy to the Employer for information.

259
 ANNEXURE 13.4
(Refer Para 13.9)

PROFORMA FOR SHOW CAUSE NOTICE TO THE CONTRACTOR REGARDING

COMPENSATION UNDER CLAUSE 2 IN CASE TERMINATION OF CONTRACT IS
NOT CONTEMPLATED
To
Name & Address of the Contractor
___________________
___________________

Sub: Show Cause Notice for delayed completion / likely to be delayed completion of
work ____ under Agreement No.______________

Dear Sir (s),

The date of completion for the above mentioned work was / is ______ as
stipulated in the agreement number ________ for the work ______________
Extension of time for completion of the above mentioned work was granted by
the Engineer-in-charge vide his letter No. ___________ upto ______________ under
clause 5 of the said agreement without prejudice to the right of RITES to recover
compensation in accordance with the provisions of Clause 2 of the said agreement.
The work entrusted to you under the agreement referred above could not / is
unlikely to be completed within stipulated / extended date of completion due to your
wrongful delay or suspension of work or slow progress of work or because of reasons
within your control. The work has finally been completed on _________ / cannot be
completed within stipulated / extended date of completion. Therefore, under the
provisions of clause 2 of the above said agreement you have rendered yourself liable to
pay compensation.
Therefore, in exercise of the power conferred on me by the aforesaid agreement
on behalf of the Competent Authority, I hereby give you notice to show cause within
_____ days to the satisfaction of the Competent Authority as to why compensation
should not be imposed upon you under the provisions of clause 2 of the said agreement
for delayed / likely to be delayed completion of the work. Please note that in case no
cause is shown by you within the stipulated period or the cause shown is not to the
satisfaction of the Competent Authority, such actions will be taken against you as are
contemplated under Clause 2 thereunder of the said agreement without further notice.
Yours faithfully,

(Engineer in charge)
For and on behalf of RITES Ltd.

Note: Strike out whichever is not applicable. Notice may be modified suitably if it is
intended to impose compensation for any item or group of items of work for which a
separate period of completion is originally given.

260
 ANNEXURE 13.5
(Refer Para 13.9)

PROFORMA FOR INTIMATING THE CONTRACTOR REGARDING LEVY OF

COMPENSATION UNDER CLAUSE 2

(APPLICABLE TO BOTH CASES OF CONTRACT

BEING ALLOWED TO BE CONTINUED OR TERMINATED)
To

Name _________
Address of the Contractor _________
______________________________

Subject: Intimation regarding levy of compensation under clause 2.

Dear Sir (s)

The date of completion for the above mentioned work was ________ as stipulated in the
agreement number ________ for the work of _____________
Extension of time of completion of the above mentioned work was granted by the
Engineer-in – Charge vide his letter No. upto _________ under clause 5 of the said
agreement without prejudice to the right of Employer / RITES to recover compensation
in accordance with the provisions of Clause 2 of the said agreement.
The work has finally been completed / determined (strike out whichever not applicable)
on ____. You were issued show cause vide this office letter No. __________ to explain
why compensation not be imposed upon you under the provisions of clause 2 of said
agreement for delayed completion of the work.
Your reply vide letter No._________ received in response to show cause has been
considered carefully, (Reasons for not agreeing with hindrances as claimed by the
contractor and total delay on part of contractor to be indicated in brief). After taking into
consideration all the facts & circumstances, the Competent Authority has come to the
conclusion that you are solely responsible for delay of ___ months ____ days.
In exercise of the powers conferred on him under Clause 2 of the agreement the
Competent Authority has decided and determined that you are liable to pay Rs.____ as
and by way of compensation as stipulated in Clause 2 of the agreement. The said
amount of compensation is hereby levied on you for the period of ______ and at the rate
of ______ as determined by the Competent Authority on the tendered amount of the
work shown in the agreement and you are hereby called upon to pay the same to RITES
Ltd. within _____ (here mention the period) failing which the said amount shall be
recovered from your Security Deposit and / or Performance Guarantee lying with RITES

261
Ltd. adjusted or set – off against any sum payable to you under this or any other contract
with RITES Ltd.

Yours faithfully,

(Engineer in charge)
For and on behalf of RITES Ltd.
N.O.O

Copy to the Employer for information.

262
 ANNEXURE 13.6
(Refer Para 13.9)

PROFORMA FOR SHOW CAUSE NOTICE TO THE CONTRACTOR REGARDING

COMPENSATION UNDER CLAUSE 2 (IN CASE CONTRACT IS DETERMINED
UNDER CLAUSE 3)
To
Name & Address of the Contractor
___________________
___________________
Sub: Show Cause against agreement No. ___________ for the work ___________.
Dear Sir (s),
The date of completion for the above mentioned work was ____ as stipulated in the
agreement number _______ for the work of ______________.

Extension of time for completion of the above mentioned work was granted by the
Engineer –in- charge vide his letter no. upto _____ under clause 5 of the said agreement
without prejudice to the right of RITES to recover compensation in accordance with the
provisions of Clause 2 of the said agreement. (Delete this Para if work was determined
before stipulated date of completion)

The work entrusted to you under the agreement referred above could not be completed
within stipulated / extended (strike out whichever not applicable) date of completion and
the work has been finally determined under clause 3 vide letter dated _____. Under the
provisions of clause 2 of the above said agreement you have rendered yourself liable to
pay compensation.

Therefore, in exercise of the powers conferred on me by the aforesaid agreement, on

behalf of the Competent Authority. I hereby give you notice to show cause within -------
days to the satisfaction of the Competent Authority as to why compensation should not
be imposed upon you under the provisions of clause 2 of said agreement for your failure
to complete the work by the stipulated date of completion / extended date of completion
(Strike out as the case may be). Please note that in case no cause is shown by you
within the stipulated period or the cause shown is not to the satisfaction of the
Competent Authority, such actions will be taken against you as are contemplated under
Clause 2 of the said agreement without further notice.
Yours faithfully,

(Engineer in charge)
For and on behalf of RTIES Ltd.

263
 ANNEXURE 14.1
(Refer Para 14.2.1)

SPECIMEN OF LETTER BY ENGINEER-IN-CHARGE TO CONTRACTOR FOR

PROVISIONAL REDUCTION IN RATE FOR SUB-STANDARD WORK
To
M/s.—————
———————-
Dear Sir(s)
Sub: Construction of __________________ Agreement No.________________
1. RITES considers that the items of work (specified in the statement appended
herewith) relating to the work undertaken by you in terms of the above
agreement have not been executed in accordance with the prescribed
specifications and / or in a workmanlike manner and therefore, cannot be
accepted in terms of the above said agreement for payment at the rates specified
in the agreement.
2. RITES, however, are willing to consider acceptance of the same should you
agree to receive payment at rates suitably reduced taking into consideration the
sub-standard nature of the said items of work. Competent Authority of RITES will
determine as to what suitable reductions in the rates should be made from the
agreed rates for the said items. His decision shall be final and binding on you.
Pending such decision of the Competent Authority, however, the payment for the
said items of work will be made at the provisional rates indicated against each
item in the Statement enclosed.
3. If you agree to the aforesaid conditions for acceptance of payment for the said
items of work you may please return the enclosed form duly executed by you.
4. If no reply is received from you within three weeks of the date of receipt of the
letter it shall be presumed that the offer is not acceptable to you. In the said
event the offer shall stand withdrawn, without prejudice to the rights and
remedies of RITES in terms of the contract.

Yours faithfully,
Engineer-in-Charge
Encl: Statement (refer Para 2) For and on behalf of RITES
Copy to the Employer for information.

264
 ANNEXURE 14.2
(Refer Para 14.2.1)

SPECIMEN OF LETTER OF ACCEPTANCE BY THE CONTRACTOR OF

PROVISIONAL REDUCTION OF RATE FOR SUB STANDARD WORK

To
_____________
_____________
Sub: Construction of ____________
Ref.: Your letter No. ____________
Sir,
I / We have carefully read the terms and conditions offered in your letter dated ____ and
they are acceptable to me / us.
Pending the decision of the Competent Authority of RITES of the final rates of payment
against the items of work specified in the statement attached to your above letter, which
rates will be final and binding. I / We agree to the same being paid at the provisional
rates indicated against each of the said item of work for the above work as mentioned in
your statement.

Yours faithfully,

Contractor (s)

265
 Annexure 16.1
(Refer Para 16.2.1)

266
267
 Annexure 16.2

268
 Annexure 16.3

269
270
271
 Annexure 16.4

272
 Annexure 16.5

273
 Annexure 16.6

274
 Annexure 16.7

275
 Annexure 16.8

276
 Annexure 16.9

277
278
279
 Annexure 16.10
(Refer Para 16.3)

EXTRACTS FROM IS 456 : 2000

Table 2 grades of Concrete
(Clause 6, 1, 9. 22, 15. 1.1 and 36.1)

Group Grade Designation Specific Characteristic Compressive

Strength of 150 mm Cube at 28 days in N /
Sqmm.
(1) (2) (3)
Ordinary M 10 10
Concrete
M 15 15
M 20
20

Standard M25 25
Concrete
M30 30
M35 35
M40 40
M45 45
M50 50
M55 55
High M 60 60
Strength
M 65 65
Concrete
M 70 70
M 75 75
M 80 80

Notes:
1. In the designation of concrete mix M refers to the mix and the number to the
specified compressive strength of 150 mm size cube at 28 days, expressed in
N/sqmm.
2. For Concrete of compressive strength greater than M 55, design parameters
given in the standard may not be applicable and the values may be obtained
from specialist literatures and experimental results.

280
 Table 8 Assumed Standard Deviation
(Clause 9.2.4.2 and Table 11)

Grade of Concrete Assumed Standard

Deviation N/sq.mm.
(1) (2)
M 10 3.5
M 15

M 20 4.0
M 25

M 30 5.0
M 35
M 40
M 45
M 50

NOTE: The above values correspond to the site control having proper storage of
cement; weigh batching of all materials; controlled addition of water, regular
checking of all materials, aggregate gradings and moisture content; and
periodical checking of workability and strength. Where there is deviation from the
above, values given in the above table shall be increased by 1N/sqmm.

281
 Table 9 Proportions for Nominal Mix Concrete
(Clause 9.3 and 9.3.1)

Grade of Total Qunatity of Dry AggregatesProprotion of Fine Aggregate toQuantity of

Concrete by Mass per 50 kg of Cement, Coarse Aggregate (by Mass) Water per
to be Taken as the Sum of the 50 kg. of
Individual Masses of Fine and Cement, Max
Coarse Aggregates, kg. Max

(1) (2) (3) (4)

M5 800 Generally 1: 2 but subject to an 60

M 7.5 625 upper limit of 1: 1 1/ 2 and a 45
M 10 480 lower limit of 1: 2 1 / 2 34

M 15 330 32
M 20 250 30

NOTE: The proportion of the fine to coarse aggregates should be adjusted from upper
limit to lower limit progressively as the grading of fine aggregates becomes finer
and the maximum size of coarse aggregate becomes larger. Graded coarse
aggregate shall be used.

Example:
For an average grading of fine aggregate (that is, zone II of Table 4 IS 383), the
proprotions shall be 1: 1 1/2, 1:2 and 1:2 1 /2 for maximum size of aggregates 10
mm, 20 mm and 40 mm respectively.

282
 ANNEXURE 16.10 (Contd.)

EXTRACTS FROM IS 456-2000 (contd)

15. SAMPLING AND STRENGTH OF DESIGNED CONCRETE MIX

15.1 General
Samples from fresh concrete shall be taken as per IS 1199 and cubes shall be
made, cured and tested at 28 days in accordance with IS 516.
15.1.1 In order to get a relatively quicker idea of the quality of concrete, optional
tests on beams for modulus of rupture at 72 + or - 2h or at 7 days, or
compressive strength —tests at 7 days may be carried out in addition to
28 days compressive strength test. For this purpose the values should
be arrived at based on actual testing. In all cases, the 28 days
compressive strength specified in Table 2 shall alone be the criterion for
acceptance or rejection of the concrete.
15.2 Frequency of Sampling
15.2.1 Sampling Procedure
A random sampling procedure shall be adopted to ensure that each
concrete batch shall have a reasonable chance of being tested that is,
the sampling should be spread over the entire period of concreting and
cover all mixing units.
15.2.2 Frequency
The minimum frequency of sampling of concrete of each grade shall be
in accordance with the following:
Quantity of Concrete in the Work (cum) Number of samples
1-5 1
6-15 2
16-30 3
31-50 4
51 and above 4 plus one additional sample for each
additional 50 cum. or part thereof.

283
 NOTE- At least one sample shall be takenfrom each shift. Where concrete is
produced at continuous production unit, such as ready mixed concrete
plant, frequency of sampling may be agreed upon mutually by suppliers
and purchasers.
15.3 Test Specimen
Three test specimens shall be made for each sample for testing at 28 days.
Additional samples may be required for various purposes such as to determine
the strength of concrete at 7 days or at the time of striking the form work, or to
determine the duration of curing, or to check the testing error. Additional
samples may also be required for testing samples cured by accelerated methods
as described in IS 9103. The specimen shall be tested as described in IS 516.
15.4 Test Results of Sample
The test results of the sample shall be the average of the strength of three
specimens. The individual variation should not be more than + or – 15 per cent
of the average. If more, the test results of the sample are invalid.
16 ACCEPTANCE CRITERIA
16.1 Compressive Strength
The concrete shall be deemed to comply with the strength requirements when
both the following conditions are met:
a) The mean strength determined from any group of four consecutive test
results complies with the appropriate limits in col 2 of Table 11.
b) Any individual test result complies with the appropriate limits in col 3 of Table
11.
16.2 Flexural Strength
When both the following conditions are met, the concrete complies with the
specified flexural strength.
a) The mean strength determined from any group of four consecutive test
results exceeds the specified characteristic strength by at least 0.3 N / sqmm.
b) The strength determined from any test result is not less than the specified
characteristic strength less 0.3 N/sqmm.
16.3 Quantity of Concrete represented by Strength Test Results
The quantity of concrete represented by a group of four consecutive test results
shall include the batches from which the first and last samples were taken
together with all intervening batches.
For the individual test results requirements given in col 2 of Table 11 or in
item (b) of 16.2 only the particular batch from which the sample was taken shall
be at risk.
Where the mean rate of sampling is not specified, the maximum quantity of
concrete that four consecutive test results represent shall be limited to 60 cum.

284
16.4 If the concrete is deemed not to comply pursuant to 16.3, the structural adequacy
of the parts affected shall be investigated (see 17) and any consequential action
as needed shall be taken.
16.5 Concrete of each grade shall be assessed separately.
16.6 Concrete is liable to be rejected if it is porous or honey- combed, its placing has
been interrupted without providing a proper construction joint, the reinforcement
has been displaced beyond the tolerances specified, or construction tolerances
have not been met. However, the hardened concrete may be accepted after
carrying out suitable remedial measures to the satisfaction of the Engineer in
Charge.
Table 11 Characteristic Compressive Strength Compliance Requirement
(Clauses 16.1 and 16.3)
Specified Grade Mean of the group of 4 Individual Test Results in
Non-Overlapping N/ sqmm.
consecutive Test Results in
N/ sqmm.
(1) (2) (3)
M 15 > f + 0.825 x established > fa -3 N/sqmm
standard deviation (rounded
off to nearest 0.5 N / sqmm)
or
f + 3 N / sqmm. Whichever
is greater
M20 or above > f + 0.825 x established > fa - 4 N/sqmm
standard deviation (rounded
off to nearest 0.5 N / sqmm)
or
f + 4 N / sqmm. Whichever
is greater

NOTE - 1. In the absence of established value of standard deviation, the values

given in Table 8 may be assumed, and attempt should be made to
obtain results of 30 samples as early as possible to establish the
value of standard deviation.
2. fa stands for 15 in case of M15, 20 in case of M 20 etc.

285
17. INSPECTION AND TESTING OF STRUCTURES
17.1 Inspection
To ensure that the construction complies with the design, an inspection
procedure should be set up covering materials, records, workmanship and
construction.
17.1.1 Tests should be made on reinforcement and the constituent materials of
concrete in accordance with the relevant standards. Where applicable,
use should be made of suitable quality assurance schemes.
17.1.2 Care should be taken to see that:
a) Design and detail are capable of being executed to a suitable
standard, with due allowance for dimensional tolerances;
b) There are clear instructions on inspection standards;
c) There are clear instructions on permissible deviations;
d) Elements critical to workmanship, structural performance, durability
and appearance are identified and
e) There is a system to verify that the quality is satisfactory in individual
parts of the structure, especially the critical ones.
17.2 Immediately after stripping the form work, all concrete shall be carefully
inspected and any defective work or small defects either removed or made good
before concrete has thoroughly hardened.
17.3 Testing
In case of doubt regarding the grade of concrete used, either due to poor
workmanship or based on results of cube strength tests, compressive strength
tests of concrete on the basis of 17.4 and/or load test (see 17.6) may be carried
out.
17.4 Core Test
17.4.1 The points from which cores are to be taken and the number of cores
required shall be at the discretion of the engineer in charge and shall be
representative of the whole of concrete concerned. In no case, however,
shall fewer than three cores be tested.
17.4.2 Cores shall be prepared and tested as described in IS 516.
17.4.3 Concrete in the member represented by a core test shall be considered
acceptable if the average equivalent cube strength of the cores is equal
to atleast 85 per cent of the cube strength of the grade of concrete
specified for the corresponding age and no individual core has a strength
less than 75 per cent.
17.5 In case the core test results do not satisfy the requirements of 17.4.3 or where
such tests have not been done, load test (17.6) may be resorted to.

286
17.6 Load Tests for Flexural Member
17.6.1 Load test should be carried out as soon as possible after expiry of 28
days from the time of placing of concrete.
17.6.2 The structure should be subjected to a load equal to full dead load of the
structure plus 1.25 times the imposed load for a period of 24 h and then
the imposed load shall be removed.
NOTE - Dead load includes self weight of the structural members plus weight of
finishes and walls or partitions, if any, as considered in the design.
17.6.3 The deflection due to imposed load only shall be recorded. If within 24 h
of removal of the imposed load, the structure does not recover at least
75 per cent of the deflection under superimposed load, the test may be
repeated after a lapse of 72 h. If the recovery is less than 80 per cent,
the structure shall be deemed to be unacceptable.
17.6.3.1 If the maximum deflection in mm, shown during 24 h under load is less
than 40 l2/D where l is the effective span in m; and D, the overall depth
of the section in mm, it is not necessary for the recovery to be measured
and the recovery provisions of 17.6.3 shall not apply.
17.7 Members Other Than Flexural Members
Members other than flexural members should be preferably investigated by
analysis.
17.8 Non-destructive Tests
Non-destructive tests are used to obtain estimation of the properties of concrete
in the structure. The methods adopted include ultrasonic pulse velocity (see IS
13311 (Part I)) and rebound hammer (IS 13311 (Part 2)), probe penetration,
pullout and maturity. Non-destructive tests provide alternatives to core tests for
estimating the strength of concrete in a structure or can supplement the date
obtained from a limited number of cores. These methods are based on
measuring a concrete property that the bears some relationship to strength. The
accuracy of these methods, in part, is determined by the degree of correlation
between strength and the physical quality measured by the non-destructive tests.
Any of these methods may be adopted, in which case the acceptance criteria
shall be agreed upon prior to testing.

287
 ANNEXURE 16.11
(Refer Para 16.4)

EXTRACTS FROM CHAPTER 5 OF CPWD SPECIFICATION ON RCC WORK

5.4.10 Standard of Acceptance – for Nominal Mix

5.4.10.1 Mandatory Lab. Test: For concrete sampled and tested as prescribed in
Appendix A of Chapter 5, the following requirement shall apply.

5.4.10.2 Out of six sample cubes, three cubes shall be tested at 7 days and
remaining three cubes at 28 days.

5.4.10.3 7 days’ Tests

Sampling: The average of the strength of three specimen shall be accepted

as the compressive strength of the concrete provided the variation in strength of
individual specimen is not more than + 15% average. Difference between the
maximum and minimum strength should not exceed 30% of average strength of
three specimen. If the difference between maximum and minimum strength
exceeds 30% of the average strength, then 28 days test shall have to be carried
out.

Strength: If the actual average strength of sample accepted in para

‘sampling’ above is equal to or higher than specified strength upto + 15% then
strength of the concrete shall be considered in order.

In case the actual average strength of sample accepted in the above para is
lower than the specified or higher by more than 15% then 28 days’ test shall
have to be carried out to determine the compressive strength of concrete cubes.

5.4.10.4 28 days’ Test

(a) The average of the strength of three specimen be accepted as the

compressive strength of the concrete provided the strength of any
individual cube shall neither be less than 70% nor higher than 130% only
for computation of strength .

(b) If the actual average strength of accepted sample exceeds specified

strength by more than 30% the Engineer-in-Charge, if he so desires, may
further investigate the matter. However, if the strength of any individual
cube exceeds more than 30% of specified strength, it will be restricted to
130% only for computation of strength.

288
 (c) If the actual average strength of accepted sample is equal to or higher
than specified strength upto 30% then strength of the concrete shall be
considered in order and the concrete shall be accepted at full rates.

(d) If the actual average strength of accepted sample is less than specified
strength but not less than 70% of the specified strength, the concrete may
be accepted at reduced rate at the discretion of Engineer-in-Charge (see
para 5.4.13.2).

(e) If the actual average strength of accepted sample is less than 70% of
specified strength, the Engineer-in-Charge shall reject the defective
portion of work represented by sample and nothing shall be paid for the
rejected work. Remedial measures necessary to retain the structure shall
be taken at the risk and cost of contractor. If, however the Engineer-in-
Charge so desires, he may order additional tests (See Appendix B of
Chapter 5) to be carried out to ascertain if the structure can be retained.
All the charges in connection with these additional tests shall be borne by
the contractor.

5.4.10.5 Acceptance Criteria of Field Test (Additional Test – Non Mandatory)

(A) Preparation of Standard Test Cubes for calibration of Rebound

Hammer at site

(a) In the beginning the standard test cubes of the specified

mix shall be prepared by field units before undertaking any
concrete work in each project.

(b) At least 18 standard cubes necessary for formation of one

specimen of specified mix, shall be cast by site staff well in
advance. From these 18 cubes any 3 cubes may be
selected at random to be tested for crushing strength of 7
days. The crushing strength obtained should satisfy the
specified strength for the mix as per specification or
agreement. If the strength is satisfactory then the
remaining cube will form the standard samples for
calibration of rebound hammer. In case of failure, the site
staff should totally reject the samples and remove them
also and then make another set of samples by fresh mixing
or alternatively, out of the remaining 15 cubes, 3 cubes will
be tested on 28 days. If the 28 days’ tests are found
satisfactory then remaining 12 cubes will form the standard
sample for calibration at 28 days’ strength otherwise all
samples shall be rejected and whole procedure repeated
to form a fresh specimen. All the results shall be recorded
in a register.

289
 (c) No concreting will be allowed unless the standard
specimen cubes are obtained..

The criteria for acceptance and calibration of hammer will

be 28 days’ strength. The 7 days’ strength is only to
facilitate the work to start.

(d) No work (for the concrete cast between 8th and 28th day)
shall be allowed to be paid unless 28 days’ cube strength
is obtained. For the concrete cast between 8th and 28th
day, the decision to make the payment may be taken by
the Engineer-in-Charge on the basis of existing criteria.
Concrete work will be rejected if 28 days’ strength falls
short as per acceptance criteria. No further work will be
allowed till the acceptable standard cubes are obtained.

(e) Frequency, if will be once in each quarter or as per the

direction and discretion of Engineer-in-Charge. Whenever
the acceptance criteria is changed or concrete mix or type
of cement is changed or Engineer-in-Charge feels it
necessary for recorded reasons with the approval of the
authority according to technical sanction, fresh specimen
shall be prepared.

(B) Calibration of Hammer

(a) Simultaneously, same three cubes to be tested on 28

days as referred in para A (b) above shall be used to
correlate the compressive strength of their concrete with
rebound number as per procedure described in para 5.2
of the IS: 13311 (Part 2) “Indian Standard for non-
destructive testing of concrete Method of test by rebound
hammer which is given below in para B (b). The average
of values of the rebound number (minimum readings)
obtained in respect of same three cubes passing on 28
days’ work test shall form the datum reference for
remaining cubes for the strength of cubes.

(b) The concrete cubes specimens are held in a

compression testing machine under a fixed load,
measurements of rebound hammer taken and then
compressive strength determined as per IS: 516. The
fixed load required is of the order of 7 N/mm2 when the
impact energy of the hammer is about 2.2 NM.

290
 If the specimen are wet cured, they should be removed
from wet storage & kept in the laboratory atmosphere for
about 24 hours before testing.

Only the vertical faces of the cubes as cast should be

tested for rebound number. At least nine readings should
be taken on each of the three vertical faces accessible in
the compression testing machine when using rebound
hammers. The points of impact in the specimen must not
be nearer than 20 mm from the edge & should not be less
than 20 mm from each other. The same points must not
be impacted more than once.

(c ) The rebound number of hammer will be determined on

each of the remaining (18-3-3=12) cubes. Whenever the
rebound number of hammer of any individual cube varies
by more than +25% form the datum readings referred to
in para B (a) above, that cube will be excluded and will
not be considered for standard specimen cubes for
calibration. It must be ensured that at least 8 cubes out
of 12 that is 66.67% are within the permissible range of
variation of rebound number i.e. + 25% or otherwise
whole procedure shall have to be repeated and fresh
specimen prepared.

These 8 cubes will form one standard sample in the

beginning before commencement of work and shall be
kept carefully for the visiting officers who will calibrate
their hammers on these cubes.

(c) This calibration will be done by field staff with their

hammer and then chart of calibration giving the details of
the average readings, date & month of casting, mix of the
concrete etc., shall be prepared and signed by Engineer-
in-Charge and will be duly preserved for future reference
as and when required.

(C) Preservation of Cubes at site

Standard sample cubes cast shall be carefully preserved at site

under the safe custody of AE or his representative for making
them available together with the charts, to the officers of
QCTA/CTE or any other senior departmental officer, during their
inspection of the work. They will calibrate their hammer on these
cubes if required.

(D) Testing at Site

(D-1) Testing Equipments

291
 (D-2) Testing will be done generally by non-destructive methods
like rebound hammers etc. Each field Division/Sub
Division/Unit will purchase rebound hammers and keep
them in working order at work site. The testing will be
done only by hammers which are duly calibrated.

(D-3) The relative strength of actual field work will be tested with
reference to strength of these standard cubes and
calibration charts of a hammer for determining the rebound
number on the field work. The hammer will be used as per
manufacturer’s guidelines at various locations chosen at
random. The number of location/reading on each wall,
beam or column etc., shall not be less than 12. All the
readings should be within the + 25% range of values
prescribed in calibration chart normally. However, reading
indicating good strength will be when it is at per with
calibrated value or between 100% & 125% and very good
if more than 125% any value between 100% & 75% of
calibrated value shall be considered satisfactory. Values
from 75% to 50% shall be considered for payment at rates
reduced on prorate basis. The concrete indicating
rebound number less than 50% of calibrated value shall be
rejected and not paid for.

(E) Acceptance of Field Tests and Strength

If the relative strength of actual field work is found satisfactory

considering the calibration charts with reference to the standard
cube test kept at site, the representative work will be considered
satisfactory. If the work is considered below satisfactory, the
same will be dealt as stated in para D-3 above.

(F) 7 days’ Strength in Rare Cases only

Normally cube crushing strength on 28 days’ test shall form the

basis of acceptance. However in rare cases of time bound
projects/urgent repairs 7 days’ cube test strength criteria may be
adopted on similar lines using 7 days’ standard test cubes and
calibration graphs/curves/charts for 7 days’ in lieu of 28 days’ and
testing work done at 7 days’.

(G) Precautions

(G-1) The testing shall be done generally as per guidelines of

manufacture of the apparatus and strictly in accordance
with the procedure laid down in clause 6 of IS: 13311 (Part
2) . Indian Standard for Non-Destructive Testing of
Concrete – Method of Test by Rebound Hammer.

(G-2) The rebound hammers are influenced by number of factor

like type of cement aggregate, surface conditions, moisture
content, age of concrete & extent of calibration of concrete

292
etc., hence care shall be taken to compare the cement,
aggregate etc., and tested under the similar surface
conditions having more or less same moisture content and
aged. However effect of age can be ignored for concrete
between 3 days & 3 months old

293
 ANNEXURE 19.1
(Refer Para 19.2.1)
Contractor’s Notice for Appointment of Arbitrator
To

Appointing Authority (SOP Item 9.2)

RITES.

Dear Sir,
In terms of clause 25 of the agreement, particulars of which are given below, I / We
hereby give notice to you to appoint an arbitrator for settlement of disputes mentioned
below:
1. Name of applicant
2. Whether applicant is Individual / Prop. Firm / Partnership Firm / Ltd. co.
3. Full address of the applicant
4. Name of the work and contract number in which arbitration sought
5. Name of the RITES Office which entered into contract
6. Contracted amount in the work
7. Date of contract
8. Date of start of work
9. Stipulated date of completion of work
10. Actual date of completion of work (if completed)
11. Total number of claims made
12. Total amount claimed
13. Date of intimation of final bill (if work is completed)
14. Date of payment of final bill (if work is completed)
15. Amount of final bill (if work is completed)
16. Date of request made to Engineer in charge for decision
17. Date of receipt of Engineer in charge’s decision
18. Date of appeal to Appellate Authority
19. Date of receipt of Appellate Authority’s decision
Specimen signature of the applicant
(only the person / authority who
signed the contract should sign)
I/ We certify that the information given above is true to the best of my / our knowledge.
I / We enclose following documents.
1. Statement of claims with amount claimed against each claim.
2.
3.
4.
Yours faithfully,
(Signature)
Copy in duplicate to
1. —— Engineer-in-Charge, RITES

294
 ANNEXURE 19.2
(Refer Para 19.5.1)

LETTER OF APPOINTMENT OF ARBITRATOR

Dated the ______ 20___
Subject: In the matter of arbitration between ______ and RITES LIMITED, regarding the
work ____ Agreement No. ___________ Date _______
Whereas _____ has / have written to me vide his / their letter no. ____ dated _____ that
certain disputes have arisen between the above noted parties in respect of the above
noted work. I ......................... ED/Dir, RITES by powers conferred on me under Clause
25 of the said Agreement hereby appoint Shri _____ as Sole Arbitrator to decide and
make his award regarding the claims / disputes by the Contractor as well as counter
claims of RITES, if any, arising out of the same contract subject to the admissibility of
the claims and counter claims under clause 25 of the aforesaid agreement.
The arbitrator shall give his award in respect of each claim and also give reasons for the
award in respect of each claim / dispute.
ED/ DIRECTOR
(As per SOP Item 9.2)
To
1. Shri
Arbitrator
2. M/s.________ (Contractor), with reference to his / their letter No. _____ dated
____
(NOT IN ORIGINAL)
Copy to:
1. Shri ____________, (Engineer in Charge) with reference to letter no. _____ dated
_____ Arrangements may please be made to defend the case effectively. Legal
assistance of the Counsel may be obtained where necessary.

Engineer-in-charge should ensure that the bills of the contractors are finalized
immediately, if not already done.

ED/DIRECTOR

Copy to: ______ (Employer) for information.

295
 ANNEXURE 19.3
(Refer Para 19.5.6)

LETTER OF APPOINTMENT OF ALTERNATE ARBITRATOR

No.________________ Dated, the ________ 20___

Subject: In the matter of Arbitration between:
________________ Claimant
Vs
_________________ Respondent
Arbitration Case No. ______ of __________
Whereas Shri ______ was appointed sole arbitrator by letter No. ______ dated _____ in
the above matter and whereas the aforesaid Arbitrator has been transferred / has
vacated his office on _____ I ______ (ED/Director) RITES, in exercise of my powers
under Clause 25 of the Contract appoint Shri ____ as the sole arbitrator to determine the
claims / disputes as well as counter claims, if any, referred to the aforesaid arbitrator in
accordance with and subject to their admisibility under said clause 25. Shri ___ may
start the proceedings from the stage at which the aforesaid arbitrator left off.
2. The arbitrator shall give his award in respect of each claim and also give
reasons for the award in respect of each claim / dispute.
ED/Director
(As per SOP Item 9.2)
Copy to:
1. Shri _______ (Arbitrator being relieved) with the request to transfer the records
of the case to Shri ___ at the earliest.
2. Shri ______ (Relieving Arbitrator) with the request to take over the records of the
case from Shri ____ at the earliest.
Copy to M/s. _____ (Contractor) for information
Copy to Shri _______ (Engineer-in-Charge) for information
Copy to ___________ (Employer) for information

296
 ANNEXURE 19.4
(Refer Para 19.11.5)

LETTER TO CONTRACTOR ON ACCEPTANCE OF ARBITRATION AWARD

To
___________
___________ (CONTRACTOR)
Sub: Award dated ____ made by Shri ____ Arbitrator in regard to the disputes arising
out of agreement No. _____ and referred to arbitration in arbitration case
No._____
Dear Sirs,
With reference to the award mentioned above, I am to say that RITES has decided to
accept the said award provided you accept the same as final and binding. Please
intimate latest by---------that you agree to accept payment of the sum awarded in full and
final settlement of all your claims forming the subject matter of the reference to
arbitration in the above case. Your acceptance of the offer may be communicated on a
Stamp Paper of Value ----------.
Yours faithfully,
Engineer-in-Charge
For & on behalf of RITES

N.O.O
Copy to ________ (Employer) for information.

297
 ANNEXURE 19.5
(Refer Para 19.19)
NORMS FOR DISPOSAL OF OLD RECORDS
NOTE
1. Where the proposed “Period of preservation of Records” is indicated as 10 years
or less and relates to any Project awarded to RITES, the records will have to be
retained for a further period. If there is any Arbitration or Court Case pending, till
the proceedings are completed in all respects.
2. Where the proposed “Period of preservation of Record” is indicated as
“Permanent”, the hard copies of CDs or both, as the case may be, should be
numbered serially for each category of records and for each Financial year and
duly indexed with brief details of contents so that they can be retrieved easily
when required in future.
3. Where “Permanent Records” by way of two hard copies to be retained are
indicated, one copy is to be retained in SBU Office and one copy is to be sent to
Central Library in RITES Head Quarters, Gurgaon.
4. In case of contracts between RITES and a Central/State Government
Department wherever the period of preservation of record has been shown as
less than 10 years the records should be maintained for a period of 10 years
after Financial closure of the Project or till the proceedings on any Arbitration or
Court case are completed in all respects, whichever is later.

Sl. CATEGORY OF RECORD PERIOD OF PRESERVATION REMARKS

No. OF RECORD REFER
NOTE NO.
HARD COPY SOFT COPY
(CD)
1 2 3a 3b 4
(A) COMMON FILES TO BE MAINTAINED BY SBU OFFICE
1. Policy Files on “Technical Permanent - 2
Matters”
2. Policy File on “Establishment Permanent - 2
Matters”
3. Policy File on “Accounts Permanent - 2
Matters”
4. Business Development File Till beginning - -
on Projects for which no offer of next
made by RITES Financial Year
(B) DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY TECHNICAL WING
FOR EACH PROJECT FOR WHICH OFFER IS MADE
1. Business Development File
(a) If RITES offer not Till beginning - -
accepted of next
Financial Year

298
 (b) If RITES offer is Three years 1
accepted and has resulted in after Financial
execution of Agreement with closure of the - 4
Client. Project
2. Input Estimate relating to Three years - 1
Agreement between RITES after Financial
and the closure of the 4
Client/Correspondence & Project
copy of the Estimate
3. Consultancy Agreement Permanent Permanent 2
between RITES and the
Client – LOI as well as copy
of Agreement
4. Sub-Consultancy Agreement Permanent Permanent 2
between RITES and Sub
Consultant
5. Correspondence file on Three years - 1
Estimates after Financial
closure of the 4
Project
6. Detailed Estimate for Works Three years - 1
after Financial
closure of the 4
Project
7. Drawings – Correspondence Three years - 1
File after Financial 4
closure of the
Project
8. Correspondence on Sub- Three years - 1
consultancy Agreement after Financial
4
between RITES and the closure of the
Subconsultant. Project
9. Works Contract Agreement Three years - 1
between RITES and the after Financial
2
Contractor closure of the
Project 4

10. Correspondence on Works Three years - 1

Contract Agreement between after Financial
4
RITES and the Contractor / closure of the
Site Office Project
11. Consultancy Agreement – Three years - 1
Correspondence with the after Financial
Client on Technical matters closure of the 4
Project

299
12. Correspondence with RITES Three years - 1
Head Quarters on all matters after Financial
relating to the Project closure of the 4
Project
(C ) DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY ACCOUNTS WING
FOR EACH PROJECT FOR WHICH CONSULTANCY AGREEMENT HAS
BEEN SIGNED WITH THE CLIENT
1. Correspondence with the Three years - 1
Client on Financial Matters after Financial
4
closure of the
Project
2. Correspondence with the Three years - 1
Contractor on Financial after Financial
Matters closure of the 4
Project
3. Correspondence with the Three years - 1
Subconsultant on Financial after Financial
Matters closure of the 4
Project
(D) DOCUMENTS TO BE MAINTAINED BY THE SITE OFFICE FOR THE WORKS
FOR WHICH WORKS CONTRACT HAS BEEN EXECUTED
1. Correspondence with SBU Three years - 1
Office on all matters. after Financial
4
closure of the
Project
2. Correspondence with the Three years - 1
Contractor on all matters after Financial
4
closure of the
Project
3. Correspondence with the Three years - 1
Client on all matters after Financial
4
closure of the
Project
(E) MISCELLANEOUS RECORDS / DOCUMENTS
1. Reports / Drawings relating to
each Project
(i) Site Survey Reports-Field Three years -- 1
Survey / Soil Investigation after Financial
2
Survey / Hydrographic Survey closure of the
etc., Project 4
(ii) Feasibility Study Report Permanent Permanent 2, 3
(two copies)

300
 (iii) Inception Report Permanent Permanent 2, 3
(two copies)
(iv) Final Report / DPR Permanent Permanent 2, 3
(two copies)
(v) As Built Completion Permanent Permanent 2
Drawings
2. Site Records – Progress Three years - 1
Reports / Labour and after Financial
closure of the 4
Machinery Reports / Level
Books / Site Registers as per Project
SITES Guidelines etc.,
3. Measurement Books and Ten years - 1
Detailed Design Calculation after Financial
for Structures closure of the
Project
4. Statutory approvals from Three years - 1
Local Bodies / Government after Financial
Departments etc. closure of the 4
Project
5. Land Possession / Taking Three years - 1
over Certificate after Financial
closure of the 4
Project
6 Operation and Maintenance Permanent Permanent 2
Manuals

7. Arbitration / Court Till final - -

proceedings files settlement of
the
Arbitration/
Court
Proceedings
8. Bid Documents of Three years - 1
unsuccessful tenderers after Financial
closure of the 4
Project
9. Photographs of site Permanent Permanent 2
construction activities
10. Certificates from the Client Permanent Permanent 2

301
 ANNEXURE 20.1
(Refer Para 20.2)

FORMAT FOR SITE ORDER BOOK

Name of work:
Date of Commencement:
Scheduled Date of Completion:

Sl. Instructions on action to be taken by the Action taken on instruction for

No. contractor on Non conformities removal of non-conformities
observed during work
Date RITES Ltd. Contractor’s Contractor’s RITES Ltd.
Representative’s Representative’s Representative’s Representative’s
Remarks with acknowledgement Remarks with acceptance with
Signature & with Signature & Signature, Signature,
Designation Name Name & Date Designation &
Date

302
 ANNEXURE 20.2
(Refer Para 20.3)

FORMAT FOR INSPECTION RECORD

Date of Name and Reference of Date on which Remarks

Inspection designation of Inspection remarks taken
Inspecting note over to Site
Officer Order Book/
conveyed to
contractor in
writing

303
 ANNEXURE 20.2 Contd.

“CHECK FEATURES” FOR GUIDANCE OF INSPECTING OFFICIALS

Type of work Check Features

1. Concrete Plain and reinforced a) Strength of concrete cube test

b) Quality of exposed surface (Honey

combing etc.)

c) Lines, Levels and verticality

2. Reinforcement a) Bending, Binding and cage size w.r.t.

drawings

b) Cover to reinforcement

c) Staggering of laps, adequacy of length

of laps and anchorage

3. Centering and Shuttering a) Gap and cracks, evenness of surfaces

of shuttering materials and form work.

b) Centering supports size. Spacing, side

supports and cross bracing (Structural

aspects of arrangements)

c) Evenness and camber of surface to

come in contact of concrete

4. Masonry work a) Filling of mortar in Joints and mortar

strength

b) Lines, levels of courses and verticality

c) Staggering of Joints, Bonding in

courses and at junctions (Bondstones

for stone masonry)

5. Wood Joinery Work a) Quality of timber, absence of sap and

knots

304
 b) Finishing of edges and surface, proper

joinery work, process of warping

c) Fixing, gaps, cracks in panels &

members

6. Flush Door Shutters a) Finish of edges and surface, absence

of warpage

b) Fixing, Convenience of Operation of

openable shutters Tests

7. Windows/Doors a) Ease / convenience of operations of

openable shutters

b) Proper welding/grinding

c) Soundness of floor

8. Flooring a) Surface finish and joints

b) Slope of floor and surface finish

c) Soundness of floor.

9. Roofing (Point Roofs) a) Soundness and geometray of sheets

b) Adequacy and uniformity of slopes and

overlaps of sheets and troughs.

(c) Fixing of sheets, j/books, attach bolts.

10. Roof Treatment a) Slopes and drainage

b) Proper junction with parapet and with

rain water pipes (KHURRAH)

c) Evenness and soundness of finished

surface and grouting of points

11. Finishing Plasters and wall tilling etc., a) Soundness of the finishing layers,

flashing

b) Surface evenness, outward slopes of

chajjas and inward slopes of top of

305
 parapet, rounded junction with walls

c) :Lines, levels in general.

12. Pipes work for Damage and Sewerage a) Jointing, verticality, concentricity and

water tightness

b) Gradient and slopes

c) Water seal and Gap between top of trap

and top of floor (Jali)

13. Pressure Pipes Work a) Jointing and water fightness

b) Proper alignment and fixing of exposed

pipes

14. Door, Window Fittings a) Dimensions and weights

b) Finish of fittings

c) Use of adequate no. and proper type

screws

15. CP/Brass Fittings a) Plunger, washer, seating of washer

b) Convenient working

c) Weight and finish

16 Sanitary Wares a) ISI marking and CPWD Specification

b) General shape, size and absence of

visual defect

c) Fixing, Gaps, water tightness and

jointing of WC pans with the trap

17. Pipes and Fittings a) Dimension and weights

b) Coating internal and external

c) Fixing

306
 ANNEXURE 20.3
(Refer Para 20.4)

FORMAT FOR HINDRANCE REGISTER

SL. No. Nature of Item of Date of start Date of Period of Overlapping Net Weightage Net Signature Signature of Sign. of Remarks of
Hindrance works which of Hindrance removal of Hindrance period if any Hindrance of this effective of Site Contractor or Inspecting Engineer-in-
could not be Hindrance in days Hindrance days of Engineer his Officer Charge
executed on Hindrance represenative (Controlling
account of Officer)
this
Hindrance

1 2 3 4 5 6 7 8 9 10 11 12 13 14

307
 ANNEXURE 20.4
(Refer Para 20.5)

FORMAT FOR DAILY PROGRESS RECORD

1. Date
2. Whether Conditions
a) Temperature Maximum ________ Minimum_______
b) Rainfall
c) General Weather (Tick relevant item)
(i) Sunny
(ii) Cloudy
(iii) Windy
3. Details of Plant & Equipment of Contractor available at site
4. Details of Supervisors / Labour of Contractor available at site
5. Details of Work done

Sl. No. Item Executed Quantity Location

6. Any Special Difficulties / happening

For Contractor For RITES LTD
Signature: Signature:
Date: Date:
Name of Contractor: Name:

308
 ANNEXURE 20.5
(Refer Para 20.6)
FORMAT FOR CEMENT REGISTER
Type of Cement _______
PART “A”

Date Opening Quantity Received Quantity Consumed Balance Item of Signature

Balance at the Work in
(Bags) Source / Test No. Bags Cumulative Issued Returned Net Consump- Cumulative end of which Contractor RITES
Batch No. / Certificates received Quantity (No. (Bags) (Bags) tion (Bags) Quantity the day consumed
Challan Reference of Bags) (No. of (No.of during the
No. received Bags) Bags) day
upto date Consumed
upto date

309
 PART “B”

Theoretical and Actual Consumption Statement

NOTE: Calculations on "Theoretical Cement Quantity required" have to be kept in

record

Sl. No. Period Item of Quantity Theoretical Actual Difference Remarks, if

work Executed Cement Qty. Cement Qty. between the any on
(cum) Required Consumed theoretical reasons for
(No. of Bags) (No. of and actual the
Bags) consumption Difference
(No. of Bags)
From To

For Contractor For RITES LTD

Signature: : Signature
Date: Date:
Name: Name:

310
 ANNEXURE 20.6
(Refer Para 20.7)
FORMAT FOR STEEL REINFORCEMENT REGISTER

Type of Steel and Diameter _________

PART “A”

Date Opening Quantity Received Quantity Consumed Balance Item of Signature

Balance at the end Work in
(MT) of the day which
(MT) consumed
Source / Test MT Cumulative Issued Returned Net Cumulative during the Contractor RITES
Challan No. Certificates received Quantity (MT) (MT) Consump- Quantity day
Reference (MT) tion (MT) (MT)
received Consumed
upto date upto date

311
 PART “B”
Theoretical and Actual Consumption Statement
NOTE: Calculations on "Theoretical Quantity required" have to be kept in record

Sl. No. Period Item of Theoretical Actual Difference Remarks, if

work Quantity Quantity between the any on reasons
Required as Consumed theoretical and for the
per Drawing (MT) actual Difference
(MT) consumption
(MT)
From To

For Contractor For RITES LTD

Signature: : Signature
Date: Date:
Name: Name:

312
 ANNEXURE 20.7
(Refer Para 20.8)

FORMAT FOR “NON-CONFORMING ITEMS” RECORD

1. Item No. (as per Bill of Quantities)

2. Brief Details of the BOQ Item
3. Name & Designation of Official of RITES LTD., deciding on the non-conformation
(Defective Workmanship)

Name Designation

4. Nature of Non Conformation

5. Comments YES NO N/A

5.1 Whether the item is structurally sound

5.2 Whether the item can be accepted at Reduced rates
5.3 Whether the item requires demolition and re-execution

6. Remarks indicating the action taken by the contractor and whether accepted by
RITES LTD., at full or reduced rates.

7. Details of Tests carried out before acceptance by RITES LTD.

8. If accepted at Reduced Rates by RITES, basis for reduction proposed in rate and
Name & Designation of RITES’ Authority deciding on the same.

For Contractor For RITES LTD

Signature: Signature:
Date: Date:
Name of Contractor Name:

313
 ANNEXURE 20.8
(Refer Para 20.9)
FORMAT FOR QUALITY AUDIT RECORD
1. Date of Quality Audit
2. Venue of Inspection
3. Department of Auditing Team
4. Head of Audit Party
5. Other members of the Audit Team
Name Designation
(i)
(ii)
(iii)
6. Reference of Audit Report
7. No. of Paras
8. 1st Reply to Audit Report
Reference of Reply
Rejoinder to reply
No. of paras dropped
Paras Outstanding
For Contractor For RITES LTD
Signature: Signature:
Date: Date:
Name of Contractor: Name:
2nd Reply to Audit Report
Reference of Reply
Rejoinder to reply
No. of paras dropped
Paras Outstanding
For Contractor For RITES LTD
Signature: Signature:
Date: Date:
Name of Contractor: Name:

314
 ANNEXURE 20.9
(Refer Para 20.10)

FORMAT FOR SITE COORDINATION MEETINGS RECORD

1. Coordination Meeting No.
2. Venue of Meeting
3. Date and Time of Meeting
4. Name of Chairman and Designation
5. Names of Other Participants

Sl. Name of Participant Designation Organization Telephone Signature

No. No.

6. Designation of the person who is to issue Minutes of Meeting

7. Reference of Letter under which Minutes of Meeting issued
8. Reference of Action taken Report by each of the Participants

Sl. Action Taken Report Report kept in File Signature, name,

No. received from No. Date & Designation
of RITES Site
Engineer

315
 ANNEXURE 20.10
(Refer Para 20.11)

FORMAT FOR GUARANTEE BONDS RECORD

1. Purpose for which Guarantee Bond submitted by the Contractor

2. Details of Bank issuing Bond & amount covered by the Bond
3. Date of issue of Bond
4. Reference on confirmation by Bank on authenticity of Bond
5. Reference of Acceptance of Bond by RITES LTD. after check
6. Period of Bond including Extensions

Note: The Site Engineer should advise the office of Engineer-in-Charge as soon as
circumstances arise requiring the validity period of Bond to be got extended.

Sl. No. Details of Period Date upto Signature, Name, Designation

covered by Bond which valid & Date of RITES Site Engineer
1 Initial Period

2 First Extension

3 Second Extension etc.

316
 ANNEXURE 20.11
(Refer Para 20.12)

FORMAT FOR INSURANCE POLICIES RECORD

1. Purpose for which Insurance Policy taken and submitted by the Contractor
2. Details of Insurance Company issuing Insurance Policy & Amount covered by the
Policy
3. Date of issue of Insurance Policy
4. Reference of Acceptance of Policy by RITES LTD. after check
5. Period covered by Insurance Policy including Extensions

Note: The Site Engineer should advise the office of Engineer-in-Charge as soon as
circumstances arise requiring the validity period of Insurance Policy to be got
extended.

Sl. No. Details of Period Date upto Signature, Name, Designation

covered by Insurance which valid & Date of RITES Site Engineer
Policy
1 Initial Period

2 First Extension

3 Second Extension etc.

317
 ANNEXURE 20.12
(Refer Para 20.13)

FORMAT FOR DRAWINGS RECORD

Sl.No. Details of Drawing Status of Drawing Receipt of Drawings Issue of Drawings Signature of Signature of
(Advance/Good Contractor's RITES LTD.
for Construction) representative Site Engineer

Drawing No. Title of Date of No. of Copies Issue Date No. of Copies
and its Drawing Receipt received issued to the
Revision Contractor

318
 ANNEXURE 20.13
(Refer Para 20.14)
SPECIMEN FORMAT
DETAILS OF MANDATORY TESTS AND NON MANDATORY TESTS CARRIED OUT - SPECIMEN FORMAT FOR CEMENT

COMMODITY: CEMENT DETAILS OF TESTS: IN CASE OF MANDATORY TESTS - CHAPTER 3 OF CPWD

SPECIFICATIONS / NON MANDTORY TEST

Sl. No. ITEM FREQUEN BILL NO. QUANTITY QUANTITY No. OF TESTS TESTS CARRIED OUT REMARKS
TESTED CY LAID USED IN USED IN TO BE DONE
DOWN WORKS WORKS AS PER
DONE UPTO DATE FREQUENCY
DURING FOR UPTO
BILL DATE QTY.

DATE OF RESULTS RESULTS

TEST & SATISFAC FILED IN
LABORAT TORY OR FILE
ORY NOT NO./FOLIO
WHERE NO.
TESTED
(i) Fineness Every 50 RAB - 1
MT or Part RAB - 2
thereof RAB - 3
FINAL
(ii) Soundness --do -- RAB - 1
RAB - 2
RAB - 3
FINAL
(iii) Setting Time --do -- RAB - 1
(Initial & RAB - 2
Final) RAB - 3
FINAL
(iv) Compressive --do -- RAB - 1
Strength RAB - 2
RAB - 3
FINAL
(v) Consistency --do -- RAB - 1
of Standard RAB - 2
Cement RAB - 3
Paste FINAL

319
 ANNEXURE 20.14
(Refer Para 20.15)
PROFORMA FOR PAINTS / CHEMICAL REGISTER
NAME OF PAINT / CHEMICAL
Particulars of Receipt & Issue

Date of Source of Batch No. Date of Date of Qty. Progressive Date of Qty. issue Items of Qty. Returned
Receipt Receipt with Manufacture expiry received Total of issue for work work for at the end of
details if any Quantity which day's work
received issued
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

Net Qty. Issued Progressive Total of Upto date Quantity in Contrator's Initial Engineer's Periodical Check
Quantity issued for works stock Initial
By ___ By ___
(12) (13) (14) (15) (16) (17) (18)

320
 ANNEXURE 21.1
(Refer Para 21.1.2)

REGISTER OF MEASUREMENT BOOKS

SBU
PARTICULARS

Note: MB should be preserved for 10 years after Financial closure of the Project

Serial No. of Date of Name & Date Name & Date Date of Remarks
the Receipt Designati of Designation of Return of
Measureme on of the issue of the Transf Completed
nt Book person to person to er Book
whom whom
issued transferred

321
 ANNEXURE 21.2
(Refer Para 21.2, 21.2A, 21.3,
21.3.3A & 21.3.7A)

GUIDELINES ON RECORDING OF MEASUREMENTS AND TEST CHECKING

In supersession of the provisions relating to “Recording of Measurements and Test
Checking” contained in “Guidelines for Managers, Assistant Managers, Engineers /
Technical Assistants for Civil Engineering Projects” issued under RITES:P:10-01:ADMN
dated 01.01.1997, following comprehensive instructions are issued for strict
implementation by the officials concerned.
1. Depending on the Financial Value and Complexity of work, the Field unit will be
manned by one or more Site Engineers who may be in grades of Technical
Assistant, Senior Technical Assistant, Engineer, Assistant Manager, Manager,
Dy. GM etc. Where there are more than one Site Engineer, the senior most will
be designated as “Controlling Site Engineer”.
2. In the SBU Office, one officer will be nominated as the “Project Coordinator” who
will be responsible for coordination at the SBU Office level of all activities relating
to the Project or Work.
3. Where there is shortage of regular staff of RITES, the Field Unit may be manned
by one or more “Contract Engineers” deputed specifically for part or full duration
of the work. Contract Engineers will be deployed to assist “Controlling Site
Engineers”. Contract Engineers will not be put in independent charge at any site.
4. a) Normally the initial recording of measurements will be done by the Site Engineers
who are regular staff of RITES and to whom the Measurement Books have been
issued. Measurement Books should not be issued in the names of Contract
Engineers or Contract Technical Assistants. In special circumstances, the
Engineer-in-Charge who has signed the Works Contract on behalf of RITES Ltd.,
can authorize in writing by name any Contract Engineer or Contract Technical
Assistant to do the initial recording of measurements. In such cases, the
Measurement Books should be issued in the name of the Controlling Site
Engineers.
b) In all cases of Earthwork, the Measurements in the MB should be supported by
details to be recorded in the Level Books.
5. Test checking of measurements is to be carried out by an official senior to the
Site Engineer who has recorded the initial measurements, either in the same
Grade or in a higher grade. If the Field Unit consists of only one Site Engineer,
the “Project Coordinator” in the SBU office will either himself do the test checking
or nominate in writing by name an official deputed to do the Test Checking. If
the Field Unit consists of more than one Site Engineer, the Controlling Site
Engineer will himself carryout the Test Checks. Alternatively he can nominate in
writing by name another Site Engineer to do the Test Checking, subject to the
Condition that the nominated Site Engineer is senior in same grade or in a higher
grade with respect to the Site Engineer who has recorded the initial
measurements.

322
6. The extent of Test Checking to be carried out will be as under:
a) Hidden Measurements
Atleast 20% of each item of works.
b) Earthwork
Initial Ground Level, Final Formation Level, Quantity and Lead diagram for
all types of Earthwork in Embankment and cutting.
Atleast 20% of items of work.
c) Soil / Rock Classification for Earthworks
Atleast 20% of items of work.
d) Ballast Supply
Atleast 50% of items of work.
e) Other Items
Atleast 10% of the Monetary Value of measurements of work done.
f) Electrical / Mechanical Works -
Atleast 20% of items of work.

g) General
In all cases where a Contract Engineer or a Contract Technical Assistant has
been authorised to take initial measurements, the extent of Test Checking
will have to be enhanced by 50% for all items mentioned at (a) to (f) above.
For example the extent of Test Checking will be 30% instead of 20% in case
of item 6 (b) i.e. Earthwork”.

323
 ANNEXURE 21.3
(Refer Para 21.4)
PROFORMA FOR WRITE OFF OF LOST MBs
1. Serial number of the MB
2. To whom issued
3. The date on which the M.B. was lost
4. Details of FIR lodged with the police
5. From whose custody it was lost?
6. Detailed circumstances leading to its loss
7. What efforts were made to trace the M.B.?
8. By whom the last measurements were recorded?
9. Whether the measurements have been checked upto the required % age by the
Superior Officer as required under the rules? If not, why?
10. Is any register being maintained to watch the movement of the M.B.?
11. Whether the M.B. contained the details of any work for which payment has not
been made or all the works have been finalized?
12. Whether any accounts/audit/igilance objection or contractor’s dispute relating to
the M.B. is pending, and if so, nature thereof, and how it is proposed to settle up?
13. Whether work is susceptible of measurement again? It not, what is the basis on
which the Controlling Site Engineer proposes to make final payment for
outstanding bills?
14. Whether the Project Coordinator is satisfied that by writing of fresh
measurements on the basis of other subsidiary records, if any, the Employer will
not be put to any loss, and there will be no dispute from any quarter? If not, what
are the steps suggested to safeguard against any such shortcoming?
15. Details of disciplinary action taken against the person (s) responsible for the loss.
16. Details of remedial measures taken to avoid recurrence of such cases
17. Any other remarks
--------
Engineer-in-Charge
(If Subordinate to SBU Head)
Remarks if any, of SBU Head
--------

SBU Head

324
 ANNEXURE 21.4
(Refer Para 21.5)

FORMAT FOR MEASUREMENT BOOK

PAGE CONTENTS REMARKS

Nos.
(i) Certificate on the Number of Leaves in the M.B.
and major deficiencies observed on Yearly Check --
and check on final return done by the Accounts
Officer of SBU Office
(ii) Certificate by Accounts officer of SBU office on 2 Pages with same
checks carried out proforma
(iii)
(iv) Details of initial issue and subsequent Transfers --
(v) Details of Measurements recorded by Holders --
(vi) Review Notes by Superior Inspecting Officers 2 Pages with same
proforma

(vii)
(viii) Review by Accounts Officer of SBU Office and --
SBU Head
(Ix to xi) Index 3 Pages with same
proforma
(xii) Entries to be recorded in Manuscript at the --
beginning of each set of measurements relating to
each work
1 to 100 Format for Recording Measurements 100 Pages with same
proforma

325
CERTIFIED that the Measurement Book contains 100 leaves.
Signature of Officer receiving the Measurement Book

YEARLY CHECK AND CHECK ON FINAL RETURN OF MB BY SBU ACCTS.

OFFICER

- MAJOR DEFICIENCES OBSERVED

Date of Check Particulars of major Dated Initials of Accounts

Deficiencies Officer

(Page No. i of MB)

326
 CERTIFICATE BY ACCOUNTS OFFICER OF SBU OFFICE

CHECK LIST OF ITEMS COVERED BY

Yearly check & Check on Final Return of MB

CERTIFIED that this Measurement Book No. ___________ has Y N

been checked and it is found that E O
S
a) No page is torn out and missing and blank pages have not
been left uncancelled
b) Corrections are properly made and initialed by responsible
person
c) Entries have been recorded only in ink and there are no pencil
entries
d) The number and date of each voucher in which the quantities
are entered for payment are noted
e) The entries have been crossed off on preparation of Bill
f) In the case of cancelled measurements the reason for
cancellation has been given and cancellation attested by the
person who made the measurements and by the Controlling Site
Engineer
g) The index is complete
h) Each set of measurements is signed by the Officer by whom
they were actually made
I) Test checks have been made as stipulated
J) Each set of measurements bears, in addition to the signature
of the Officer or the subordinate who made the measurements,
the signature of the official if any who checked the calculations
and the signature of the Controlling Site Engineer who passed
the measurements and signed the bill

Certified also that necessary entries have been carried out in Page (i) of MB.

Date_____________ Signature _____________________

ACCTS. OFFICER IN SBU OFFICE

________________ OFFICE

(Page No. ii & iii of MB)

327
 MEASUREMENT BOOK

Details of Initial issue and subsequent transfers.

_________ _________
NAME OF SBU OFFICE NAME OF FIELD OFFICE
NAME, DESIGNATION AND SIGNATURE NAME, DESIGNATION AND
OF ISSUING OFFICIAL SIGNATURE
OF RECEIVING OFFICIAL
M.B. No._______

Issued to ____________ (Site Engineer) on ______________ by *_________

*Dated initials of the official in charge in Field Office
Transferred by ____________ (Transferring Site Engineer)
To _____________________ (Transferee Site Engineer)

Signature with date Transferring Officer ( .......................

Transferee Officer ( .......................
Controlling Site Engineer____

Transferred by _________ (Transferring Site Engineer) ______________ to

______________ (Transferee Site Engineer)

Signature with date Transferring Officer ( .......................

Transferee Officer ( .......................
Controlling Site Engineer ______

Transferred by _________ (Transferring Site Engineer) _________ to

______________ (Transferee Site Engineer)

Signature with date Transferring Officer ( .......................

Transferee Officer ( .......................
Controlling Site Engineer____

(Page No. iv of MB)

328
 MEASUREMENT BOOK

DETAILS OF MEASUREMENTS RECORDED BY HOLDERS

____ ____
NAME OF SBU OFFICE NAME OF FIELD OFFICE

M.B. No.______

Sl. NAME OF DESIGNATION DETAILS OF FIRST DETAILS OF LAST ENTRY

No. HOLDER OF HOLDER ENTRY IN MB IN MB

DATE OF PAGE NOS. DATE OF PAGE NOS.

ENTRY FROM TO ENTRY FROM TO

(Page No. v of MB)

329
 REVIEW NOTES

By Superior Inspecting Officers of RITES

Date Pages recording Value of Result of the Dated initials and

measurements measurements check exercised designation of the
subjected to test checked Satisfactory or Checking Officer
check unsatisfactory

(Page No. vi & vii of MB)

330
 REVIEW NOTES

By ACCOUNTS OFFICER OF SBU OFFICE & SBU HEAD

Pages reviewed Calculations selected by Defects, Dated initials of

generally Accounts Officer / SBU Head discrepancies
for re-check etc., Noticed

Pages Dated initials Accts. SBU Head

Officer

(Page No. viii of MB)

331
 INDEX
(To be filled in as each set of measurements is recorded. If an entry for a work or a
contractor already exists, value of work done and pages for new measurements only
should be added thereto)

Full name of work or Name of Value of work Pages of MB

propose of supply Contractor done proposed
for payment
through the bill

From To

(Page No. ix, x, xi of MB)

332
Entries to be recorded in manuscript at the beginning of each set of Measurements
relating to each work
a) Name of work –
b) Situation / Location –
c) Agency by which work is executed –
d) Number and date of agreement or work order –
e) Date of measurement –
f) Reference to previous measurement –
g) Date of commencement of work –
h) Date of completion of work –

(Page No. xii of MB)

333
 ANNEXURE – 21.5
(Refer Para 21.5)

FORMAT FOR ABSTRACT OF MEASUREMENTS TO BE RECORDED IN M.B AT

THE END OF DETAILS OF MEASUREMENTS RECORDED FOR ANY BILL
NOTE: (i) Abstract should include all items (BOQ. NS including Extra and
Substituted) for which payments have been proposed. Items not operated
upto date need not figure in the Abstract of Measurements

(ii) If, for the same item, payment has been made/proposed at different rates
for various quantities such as Part rate/BOQ rate/0.98 BOQ rate/0.96 BOQ rate/Special
rate based on Market rate, the quantities involved may be shown in Cols 4a & 5a with
the corresponding rates in Col. 4b & 5b.
(i) For last Abstract of Measurements refer MB No. -------------- Page No. ------------
BO Brief Unit UPTO PREVIOUS BILL CURRENT BILL UPTO DATE
Q/ Descripti
NS on of Quanti Rate Gross Qua Rate Gross Qu Rat Tot
Ite Item ty Paid amount ntity Paid amou anti e al
m (Rs. ) paid (Rs.) nt ty Pai Gro
No (Rs.) Paid d ss
. (Rs.) Rs. Amt
.Pai
d
1 2 3 4a 4b 4c 5a 5b 5c 6a 6b 6c

334
 RECORD OF MEASUREMENTS

PARTICULARS Details of actual Measurements Contents – Volume or

area

No. L B D

1 2a 2b 2c 2d 3

(Page No. 1 to 100 of MB)

335
 Test Check Statement

ANNEXURE 21.6
(Refer Para 21.2.5 & 21.2.4A)
Name of work:
RA bill No/Final Bill:
Agreement No and Date:
Name of Contractor:
Name & Designation of Test Checking Officer:

S.No Item BOQ Required Qty Qty test % Test Ref. Qty Qty test
(Col.2) NO/ % Test Executed checked Check page executed checked
(Col.1) NS Check as in this bill in this in this & MB up to up to
Item per bill bill No of Previous previous
NO. Guidelines (Col.5) Test bill. bill.
(Col.6) (Col.7) Check.
(Col.3) (Col.4) (Col.9) (Col.10)
(Col.8)

336
Total Total Total % Amt Amt of Total Total% Ref. Type of Item
Qty Qty of Test of test Amt of Test page & (Hidden/Earth
execute Test Check Test check test Check MB No work/Soil/ Rock/Ballast
till this Check Chec up to check till this of Test Supply/other
bill ed (Col.13) k in previou till this bill on Check items/Electrical/Mechan
(Col.11) till this s bill bill moneta Wrt Col ical works)
this bill ry 14
bill (Col.15) (Col.16) terms (Col.19)
(Col.1 (Col. (Col.18
2) 14) (Col.17) )

(Signature of Test Checking Official)

Name:

Designation

Date:

337
 ANNEXURE 22.1

338
 ANNEXURE 24.1
(Refer Para 24.2.1)

RITES FORM

FORMAT FOR RUNNING ACCOUNT BILL AND FINAL BILL

(Final Bill to be made in the same format but printed on Yellow Paper to
distinguish it from RA Bills)

Note for Contractors

(i) Form 1 A provides for BOQ and NS items for which payment is claimed on basis
of Detailed Measurements recorded in Measurement Book.

(ii) Form 1 B provides for BOQ and NS items for which payment is claimed on basis
of Approximate Quantities recorded in MB without Detailed Measurements

1. Name of SBU
2. Name of Project Office
3. Voucher No. & Date
4. Name of Contractor
5. Name of work
6. Serial No. of the Bill
7. No. and date of previous bill for this work
8. Agreement No. & Date
9. Date of written order to commence work
10 Scheduled Date for Completion including Extension (if any) granted.
11. Date of Actual Completion of Work

339
 FORM II CERTIFICATES AND SIGNATURE

1. The measurements on which are based the entries in Cols. 1 to 6 of Form 1A

were made by _________________ on ______________ and are recorded at
Pages _____________________ of MB No.________________________

2. The Lump Sum Quantities on which are based the entries in Cols. 1 to 6 of Form
1B were assessed by _______________________ on ____________________
and are recorded of Pages ________________ of the MB No.
____________________. Certified that Quantities and not less than the Lump
Sum Quantities recorded in the MB for various items, have been actually
executed at site and the quantities recorded in MB have been assessed on
approximate basis and roughly computed.

Contractor Site Engineer who Name:

(Name of Company) has recorded the Measurements Signature:
In M.B Date:

Controlling Site Engineer who Name:

has test Checked the Signature:
Measurements& Checked Bill Date:

340
 FORM III – DETAILS OF GROSS PAYMENTS (Rs.)

Sl No. DETAILS Upto Since Total Upto REMARKS

Previous Previous date (Rs. )
Bill (Rs.) Bill (Rs. )
(1) (2) (3a) (3b) (3c) (4)
1 Items for which
Detailed
Measurements
recorded in MB
(From Cols. 6a,
6b,6c of Form 1A)
2 Items for which
payment proposed
on Lump Sum
Quantity without
Detailed
Measurements
(From Cols. 6a, 6b,
6c of Form 1B)
3 Secured Advance * ** (As - * Details at AnnexureIA
on Materials proposed) of RAB No.
** Details enclosed at
Annexure 1A
4 Mobilization * ** (As * Details at Annexure II
Advance proposed) of RAB No.
** Details enclosed at
Annexure II
5 Plant & Machinery * ** (As * Details at Annexure
Advance proposed) III of RAB No.
** Details enclosed at
Annexure III
6 Price Escalation * ** (As * Details at Annexure
under Clause 10 proposed) IV of RAB No.
CC of Contract ** Details enclosed at
Annexure IV
TOTAL

341
 FORM IV – DETAILS OF RECOVERIES (Rs.)

Sl No. DETAILS Upto Since Total Upto REMARKS

Previous Previous date (Rs. )
Bill (Rs.) Bill (Rs. )
(1) (2) (3a) (3b) (3c) (4)
1 Secured Advance * ** (As * Details at Annexure
on Materials proposed) IB of RAB No.
** Details enclosed at
Annexure 1B
2 Mobilization * ** (As * Details at Annexure II
Advance including proposed) of RAB No.
interest **Details enclosed at
Annexure II
3 Plant & Machinery * ** (As - * Details at as
Advance including proposed) Annexure III of RAB
interest No.
** Details enclosed as
Annexure III
4 Materials supplied * ** (As * Details at Annexure V
by the Employer at proposed) of RAB No.
rates given in the ** Details enclosed at
Contract. Annexure V
5 Security Deposit * ** (As * Details at Annexure
proposed) VI of RAB No.
** Details enclosed at
Annexure VI
6 Tax Deduction at * ** (As * Details at Annexure
source towards proposed) VII of RAB No.
Income Tax ** Details enclosed at
&Labour Welfare Annexure VII
Cess etc.,
7 Compensation and * ** (As * Details at Annexure
Dues (if any) proposed) VIII of RAB No.
recoverable from **Details enclosed at
the Contractor Annexure VIII
TOTAL

342
 Annexure 1A

SECURED ADVANCE ON MATERIALS PAYABLE THROUGH CURRENT RA BILL No.

NOTE: 1. Sanction Reference for payment of Secured Advance ___________________________

2. Particulars of Comprehensive Insurance in case of Perishable

fragile and Combustible Materials (Refer Clause 10B (i) of Contract _________________

3. Certificate in the format at Para 23.2.2 enclosed if any Advance is proposed to be paid through current RA Bill

Sl. No. Description of Unit 90% of QUANTITY BROUGHT TO SITE AMOUNT OF ADVNCE PAYABLE
Material Assessed
UNIT RATE
(Rs. )
Upto end Since Last Total upto Upto end of Since Last Total upto
of Last Bill Bill date Last Bill (Rs. Bill date
) (Rs.) (Rs. )
(1) (2) (3) (4a) (4b) (5a) (5b) (6a) (6b) (6c)

Total

Annexure 1B

SECURED ADVANCE ON MATERIALS RECOVERABLE THROUGH CURRENT RA BILL No ______

NOTE: 1. Certificate in the format at Para 23.2.2 to be enclosed if any Recovery is proposed through current RA Bill.

Sl. No. Description of Unit 90% of QUANTITY USED IN WORK AMOUNT OF RECOVERY
Material Assessed
UNIT RATE
(Rs. )
Upto end Since Last Total upto Upto Since Last Total upto
of Last Bill Bill date e+H17nd of Bill date
Last Bill (Rs. (Rs.) (Rs. )
)
(1) (2) (3) (4a) (4b) (5a) (5b) (6a) (6b) (6c)

Total

343
 Annexure II

MOBILISATION ADVANCE - RA BILL NO. _________________________

DETAILS OF PAYMENTS AND RECOVERIES

NOTE: 1. Sanction Reference for Payment of Mobilization Advance ____________________
2. Particulars of Bank Guarantee (Refer Clause 10B (ii) of Contract) __________________
3. Col. 7 amount should be more than Col. 5 amount
4. Certificate in the format at Para 23.2.3 enclosed if any Advance is proposed to be paid through current RA Bill

DATE OF DATE OF TIME INTEREST @ TOTAL RECOVERY BALANCE ADDL. TOTAL REMARKS
LAST BILL CURRENT INTERVAL 10% P.A ON OUTSTANDI PROPOSED ADVANCE ADVANCE OUTSTANDING
BILL BETWEEN AMOUNT IN NG (COL. 1 - THROUGH OUTSTANDING PROPOSED TO BE
THE TWO COL.1 FOR COL.5) (Rs. CURRENT (COL.6 - COL.7) THROUGH CARRIED
BILLS PERIOD IN ) BILL (Rs. ) (Rs. ) CURRENT FORWARD TO
COL. 4 (Rs. ) BILL (Rs. ) NEXT BILL
(COL. 8A -
COL.9) (Rs. )
(2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

344
 Annexure III

PLANT AND MACHINERY ADVANCE - RA BILL NO.

DETAILS OF PAYMENTS AND RECOVERIES

NOTE: 1. Sanction Reference for Payment of Plant & Machinery Advance ____________________
2. Particulars of Insurance and hypothecation (Refer Clause 10B (ii) of Contract) __________________
3. Col. 7 amount should be more than Col. 5 amount
4. Details of Col. 9 to be given in the format given below
5. Certificate in the format at Para 23.2.4 B23enclosed if any Advance is proposed to be paid through current RA Bill

DATE OF DATE OF TIME INTEREST @ TOTAL RECOVERY BALANCE ADDL. TOTAL REMARKS
LAST BILL CURRENT INTERVAL 10% P.A ON OUTSTANDI PROPOSED ADVANCE ADVANCE OUTSTANDING
BILL BETWEEN AMOUNT IN NG (COL. 1+ THROUGH OUTSTANDING PROPOSED TO BE
THE TWO COL.1 FOR COL.5) CURRENT (COL.6 - COL.7) THROUGH CARRIED
BILLS PERIOD IN (Rs. ) BILL (Rs. ) (Rs. ) CURRENT FORWARD TO
COL. 4 (Rs. ) BILL (Rs. ) NEXT BILL
(COL. 8 A -
COL.9) (Rs. )
(2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

345
 DETAILS OF PLANT AND MACHINERY

ADVANCE PROPOSED THROUGH CURRENT RA BILL NO.

Sl. No. DETAILS OF ITEM DISTINGLUIS NEW OR ASSESSED VALUE % OF AMOUNT OF REMARKS
HING OLD NEW/DEPRECIATED ASSESSED ADVANCE
NUMBER IF AS APPLICABLE (Rs. VALUE FOR PROPOSED
EXISTING ) GRANT OF (COL. 5 x
ADVANCE COL.6)
(Rs. )
(1) (2) (3) (4) (5) (6) (7) (8)

Total

346
 Annexure IV

PRICE ESCALACTION (ADJUSTMENT) BILL

PAYABLE THROUGH CURRENT RA BILL NO.

NOTE: (I) Price Adjustment Bills under Clause 10 CC of Clauses of Contract shall be
made every quarter as stipulated and paid through next Running Account Bill/
Final Bill.

(II) PAB will be made based on Provisional indices if Final indices are not available
for any of the months of any quarter. In subsequent PAB, necessary monetary
adjustment shall be carried out .

1) P.A.B. No. ____________ 2) For Quarter/Period ending _____________

3) Last PAB paid through 4) RA Bill No. through which

RA BILL NO. ___________________ Current RAB proposed to be paid ____________

Amount payable for Quarter/ Adjustment proposed due to Final Net amount payable Amount paid through Price
period under consideration Indices being different to through current PAB Adjustment Bill
(Detailed Calculations enclosed) Provisional Indices in earlier PAB (Rs. ) (Col. 1 + or -
(Rs. ) (Detailed calculations enclosed) Col. 2b)
PAB No. Amount to be Upto Previous Total upto
adjusted (Rs. ) PAB date (Col. 3 +
( Rs ) Col. 4a)
(Rs. )
(1) (2a) (2b) (3) (4a) (4b)

347
 Annexure V

RECOVERY TOWARDS COST OF MATERIALS STIPULATD FOR SUPPLY BY THE

EMPLOYER RA BILL No. __________________

Sl. No. Description of Unit Rate for QUANTITY SUPPLIED TO AMOUNT TO BE RECOVERED
Material Recovery per CONTRACTOR
Unit (Rs. )

Upto end of Since Last Total upto Upto end Since Last Total upto
Last Bill Bill date of Last Bill Bill (Rs. ) date (Rs.)
(Rs. )
(1) (2) (3) (4a) (4b) (5a) (5b) (6a) (6b) (6c)

TOTAL

348
 Annexure VI

RECOVERY OF SECURITY DEPOSIT

RA BILL No. ___________

NOTE: Col. 1a (Col. 6a of Form 1A + Col. 6a of Form 1 B)
Col. 1b (Col. 6b of Form 1A + Col. 6b of Form 1 B)
Col. 1c (Col. 6c of Form 1A + Col. 6c of Form 1 B)

GROSS AMOUNT OF BILL SECURITY DEPOSIT RECOVERY AT REMARKS

5% OF GROSS AMOUNT OF BILL
(Rs. )
Upto end of Since Last Bill Total upto Upto end of Since Last Total upto
Last Bill (Rs. ) (Rs.) date (Rs. ) Last Bill Bill date

(1a) (1b) (1c) (2a) (2b) (2c) (3)

Total SD recovery to
be restricted to 5% of
Tender value. This will
include Earnest Money
taken as part of SD +
Recovery from Bills @
5% of Gross amount of
Bill

349
 Annexure VII

RECOVERY TOWARDS INCOME TAX

LABOUR WELFARE CESS ETC.

RA BILL No. ___________

NOTE: (I) Col. 2a (Col. 6a of Form 1A + Col. 6a of Form 1B)
Col. 2b (Col. 6b of Form 1A + Col. 6b of Form 1B)
Col. 2c (Col. 6c of Form 1A + Col. 6c of Form 1B)
(II) Breakup for figures in Col. 3(a) & 3 (b) to be enclosed

Type of Tax/Cess covered GROSS AMOUNT OF BILL TAX / CESS TO BE REMARKS ON CALCULATIONS
BY TDS Upto Since Total Upto Since Total OF TDS
end of Last Bill upto end of Last Bill upto
Last Bill date Last Bill date

(1) (2a) (2b) (2c) (3a) (3b) (3c) (4)

350
 Annexure VIII

RECOVERY TOWARDS ANY COMPENSATION OR DUES FROM THE

CONTRACTOR RA BILL No. ___________

NOTE: (1) Col. 2a (Col. 6a of Form 1A + Col. 6a of Form 1B)
Col. 2b (Col. 6b of Form 1A + Col. 6b of Form 1B)
Col. 2c (Col. 6c of Form 1A + Col. 6c of Form 1B)
(2) Breakup for figures in Col. 3(a) & 3 (b) to be enclosed

(3) Authority for recovery of Compensation / Dues from the Contractor _____________

Details of Compensation or GROSS AMOUNT OF BILL AMOUNT RECOVERED REMARKS ON CALCULATIONS

Dues Recoverable Upto Since Total Upto Since Total OF DUES RECOVERED
end of Last Bill upto end of Last Bill upto
Last Bill date Last Bill date

(1) (2a) (2b) (2c) (3a) (3b) (3c) (4)

351
 FORM V MEMORANDUM OF PAYMENT
1) Gross Payment due through Current Bill Rs.
(Col. 3b of Form III)

2 Recoveries through Current Bill Rs.

(Col. 3b of Form IV)

3) Net Payment due to be Contractor Rs.

(Item 1 – Item 2)
Pay Rs. _______________________ (in words)
by Cheque

Disbursing Date:
Officer Signature:
Designation:

RECEIVED Rs.

as per above Memorandum through Cheque No. Dated on

account of this work.

WITNESS STAMP Signature of

Contractor
with Seal

PAID BY ME VIDE CHEQUE NO.____________________ DATED ________________

Official ) Date:
actually ) Signature:
making ) Designation:
the payment )

352
 FORM VI REMARKS

Note: The Disbursing Officer and SBU Head can record Remarks if any on Check of
Measurements, State of Contractor’s Account etc.,

353
 ANNEXURE 24.2
(Refer Para 24.5)

DEVIATION STATEMENT

1. Following instructions are on the basis of following Deviation Limits

(i) Non Foundation items (+) 25%; (- ) unlimited
(ii) Foundation items (+) 100%; (- ) unlimited
Instructions on filling up Columns of Deviation Statement.
Note: 1. For BOQ-Non Foundation items – Permissible Deviation will be + 25%. For
quantity in excess of 125% of BOQ quantity, 0.97 BOQ rate and market rates
will apply for quantities as stipulated in the Contract. If quantity executed is
less than BOQ quantity, payment for quantity executed will be only at BOQ
rate.
o For BOQ–Foundation Items – Permissibile deviation will be +
100%. For quantity of any foundation items in excess of 200% of
BOQ quantity, 0.97 BOQ rate and market rates will apply for
quantities as stipulated in the Contract. If quantity executed is
less than BOQ quantity, payment for quantity executed will be
only at BOQ rate.

Explantory Statements as per Proforma attached should accompany

Deviation Statement.
NOTE:
RUNNING ACCOUNT BILLS
1. Col. 1 BOQ Item Nos. to be as in Contract Agreement. Substituted as well as
Extra items to be serially numbered in the order in which they are
proposed.
2. Col. 4 For BOQ Items BOQ Rate; For Substituted and Extra items, Rates as
recommended.
3. Col. 5 For definition of Foundation items, refer Clause 12.5 of Clauses of
Contract and Schedule F of Contract.
4. Col. 6d To be filled based on a reasonable assessment.
5. Col. 7a Amount to be worked out only for BOQ Items at BOQ rate (Col. 6f x Col.
4).
6. Col. 7b For BOQ items, Amount may be worked out as under:
(i) Non Foundation items (No Deviation or Deviation to any extent
on lower side)
If Col. 6e shows quantities upto 125% of Col. 6f.
At BOQ Rate shown in Col. 4 x Quantity shown in Col. 6e
(ii) Non Foundation items (Deviation on higher side)

354
 If Col. 6e shows more than 125% of BOQ Quantity shown in Col 6f -
At BOQ Rate in Col. 4 x 125% of BOQ Quantity shown in Col. 6f + at
0.97 BOQ rate for Quantity between 125% and 150% at
recommended market rate x Quantity of Col. 6e in excess of 150%
of Quantity in Col. 6f.
Note: If recommended rate has not been worked out, till that
time take at BOQ Rates for Deviated Quantity in excess of 150%
of BOQ Quantity.
(iii) Foundation Items
(a) (No Deviation or Deviation to any extent on lower side):- At BOQ
Rates shown in Col. 4 x quantity shown in Col. 6e.
(b) (Deviation on higher side)
If Col. 6e shows more than 200% of BOQ Qnty shown in Col. 6f - At
BOQ rate in Col 4 × 200% of BOQ Qnty. shown in Col. 6f + at 0.97
BOQ rate for Quantity between 200% and 240% at recommended
Market Rate × Quantity of Col 6 e in excess of 240% of qnty. in Col.
6f.
Note: If recommended rate has not been worked out, till that time
take at BOQ Rate for the Deviated Quantity in excess of 240% of
BOQ Quantity.
(iv) Substituted and Extra items
For Substituted and Extra items, amount may be worked out as
under
Recommended Rate in Col. 4x Entire Quantity in Col. 6e.
FINAL BILLS
1. Col. 1 BOQ Item No. to be as in Contract Agreement. Substituted and Extra
items to be serially numbered in the order they were proposed.
2. Col. 4 For BOQ Items at BOQ Rates; For Substituted and Extra items, Rates as
approved by Competent Authority (Refer relevant item of SOP)
3. Col. 6d This will be Nil.
4. Col. 6e Quantities will be as finally executed
5. Col. 7a Amount to be filled in for only BOQ items at BOQ Rate (Col. 6f x Col. 4)
6. Col. 7b For BOQ Items, amount may be worked out as under:—
Non Foundation Items
Same as in items (i) and (ii) under “Running Account Bills” except that
“Recommended Market Rate” shall be replaced by “Market Rate
approved by Competent Authority under relevant item of SOP” and
“Anticipated Quantity at Completion Stage” replaced by “Quantity as
finally executed”.

355
Foundation Items
Same as in items (iii) (a) and (b)under “Running Account Bills”.
For Substituted and Extra items, Amount may be worked out as
under:–
Market Rate approved by Competent Authority under relevant item of
SOP x Quantity actually executed in Col. 6e

356
 EXPLANATORY STATEMENTS TO ACCOMPANY DEVIATION STATEMENT

(i) Foundation Items of BOQ – Deviation on higher side – (Anticipated

Quantity at Completion stage likely to exceed 240% of BOQ quantity)

BOQ Item No. Description of Unit Anticipated Remarks on Position on

item in brief Qty. at action submission of
completion proposed to Market Rate
stage as % of restrict Analysis for
BOQ Qty. completion approval of
qty to less competent
than 240% of authority for
BOQ Qty. Deviated
Quantity

(ii) Non Foundation Items of BOQ – Deviation on Higher Side

(Anticipated Quantity at Completion Stage likely to exceed 150% of BOQ
Qty.)

BOQ Item No. Description of Unit Anticipated Remarks on Position on

item in brief Qty. at action submission of
completion proposed to Market Rate
stage as % of restrict Analysis for
BOQ Qty. completion approval of
qty to less competent
than 150% of authority for
BOQ Qty. Deviated
Quantity

(iii) Where anticipated cost is such the approval of a higher Authority or client is
required to be taken, details of action taken for the same.

357
 DEVIATION STATEMENT

NAME OF CONTRACTOR CONTRACT AGREEMENT No. RUNNING ACCOUNT BILL NO.

FINAL BILL

NOTE (i) For Foundation BOQ items where quantity at completion stage is expected to exceed 240% of BOQ quantity or For Non Foundation BOQ items where Quantity at
completion stage is expected to exceed150% of BOQ quantity, Explanatory statements to be furnished in the Proforma enclosed.
If total amount as anticipated at completion (Col. 7b) is such that the approval of a higher competant authority and/or client is required to be taken as per SOP, immediate
(ii) action should be initiated for the same.

BOQ ITEM DESCRIPT UNIT UNIT RATE. FOUNDATION QUANTITIES AMOUNT (Rs.)
No./SUBSTITU ION OF BOQ (F) OR NON
TED ITEM ITEM IN RATE/MARKET FOUNDATION
NO../ EXTRA BRIEF RATE FOR (NF) - (FOR
ITEM No. SUBSTITUTED BOQ ITEMS
ITEM/FOR ONLY)
EXTRA ITEM
UPTO CURRE TOTAL ANTICIPATED FINAL AS PER FINAL AS PER AS EXCESS SAVINGS
LAST NT BILL UPTO FURTHER ANTICIPAT BOQ ANTICIPATED BOQ ANTICI (7b - 7a) (7a - 7b)
BILL DATE BEFORE ED UPTO QNTY. AS % FOR PATED
COMPLETION COMPLETI OF BOQ QNTY BOQ AT
ON (100 X 6e/6f)) ITEMS COMPL
ONLY ETION

1 2 3 4 5 6a 6b 6c 6d 6e 6f 6g 7a 7b 8a 8b

Total

358
 ANNEXURE 24.3
(Refer Para 24.6)
GUIDELINES ON CHECK AND CUSTODY OF BANK
GUARANTEES SUBMITTED BY THE CONTRACTOR

1.0 GENERAL

1.1 The Contractor may submit Bank Guarantees for the following from any
Scheduled Bank except those Banks with whom business dealings have been
suspended/banned. Custody of Guarantee Bonds will be the responsibility of
Accounts Section of SBU Office.
i) Performance Guarantee (under Clause 1 of Contract)
ii) Guarantee towards Mobilization Advance (under Clause 10B of Contract)
iii) Guarantee towards Free supply of Materials (under Clause 11 of
Contract)
iv) Any other circumstance as provided for in the Contract.

1.2 Banks have already the practice of sending original of B.G to the Beneficiary
directly under Registered Post/Acknowledgement Due. In all cases where the
contractors are to furnish B.G in favour of RITES, they should be advised to
request the Bank to send the orginal B.G directly to RITES under Registered
Post/Acknowledgment Due.

2.0 POWERS OF BANKS TO ISSUE GUARANTEE BOND

2.1 Scheduled Banks approved by the Reserve Bank of India in this behalf shall be
eligible to issue Guarantee Bonds upto certain specified limits without being
required to lodge Government Securities as cover.
2.2 The Bank authorizes certain officials of the Branch concerned to sign the
Guarantee Bond binding the Guarantor Bank.
2.3 The Bank Guarantee is drawn on a non-judicial stamp paper of appropriate
value.

3.0 CHECKS TO BE EXERCISED BY ACCOUNTS SECTION OF SBU OFFICE ON

RECEIPT OF BANK GUARANTEE FROM THE CONTRACTOR
3.1 Is the Bank Guarantee on Non-judicial Stamp paper of appropriate value
purchased in the name of the Bank?
3.2 Is it in the approved format, for the amount required and valid for the period
specified in the Contract Agreement?
3.3 Is the Bank Guarantee a genuine one? On receipt of every Bank Guarantee
Bond, a reference should be made to the Regional Office of the Bank to
ascertain the bonafides of the Bond. A proper record should be maintained of the
confirmation from the Regional Office of the Bank. It is to be noted that individual
Bank Branches are usually authorized to issue Guarantee Bonds upto a certain
specified limit by the Regional Offices of the Bank and also only certain officials
of the Branch are authorized to sign the Guarantee Bond on behalf of the Bank.
As an extra precautionary measure, a certified True copy of Bank Guarantee

359
 should be sent to the Branch of Bank furnishing the Bond and Regional Office of
Bank for their record.
3.4 A Register should be maintained of the Bank Guarantee Bonds in custody of
each SBU Office. An index should be made out in the Register indicating the
following details.
i) Guarantee Bond No. and Date
ii) Name of the Bank Branch issuing the Bond
iii) Details of the Regional Office of Bank Controlling the Branch
iv) Purpose for which Guarantee Bond issued such as Performance
Guarantee, Mobilisation Advance Guarantee etc.
v) Name of Contractor
vi) Contract Agreement No. with the Contractor
vii) Name of work
viii) Amount of Bank Guarantee
ix) Validity of Bank Guarantee upto (Date)
x) Whether Genuineness of BG confirmed by the Regional Office?
In the Register separate pages should be earmarked for each month in
which should be listed all BGs (No. and Date of issue) whose validity
expires during that month. A review of the Register should be done
regularly in the first working day of the month to list out the BGs whose
Validity will be expiring in the fourth month counting from the month of
review. Thus, if the review is done on (say) first of January, all BGs
whose Validity will be expiring in April of that year should be listed. A
reference should be made to the Engineer in charge / Project
Coordinator concerned to get a confirmation on whether the validity of
BG is to be got extended and if so for what period. If the reply is in the
affirmative, prompt action should be taken to advise the Contractor to
arrange for extension of validity of BG. If the Contractor does not extend
the validity in spite of a reminder, the BG should be encashed within the
Validity period under advice to the Contractor. Similarly, when the
Engineer in Charge recommends encashment of BG on grounds of
recovery of dues from the Contractor, BG should be encashed within
validity period under advice to the Contractor.
3.5 When the purpose for which the Bank Guarantee has been furnished by the
Contractor has been fulfilled, the BG may be returned in original to the Branch of
the Bank which had issued it with an advice to cancel the BG. A copy of the BG
should however be retained in the office of SBU for record along with a copy of
advice sent to Bank for cancellation of BG.

360
 ANNEXURE 24.4
(Refer Para 24.7)

DOCUMENTS TO ACCOMPANY RUNNING ACCOUNT BILLS

GENERAL DETAILS
1. Contract Agreement No. & Date
2. Contract Value (Rs.)
3. Name of Contractor
4. Name of Work
5. Scheduled Date of Completion / Extended Date of Completion
6. Date of Measurement
7. RA Bill No. & Date of Bill
SPECIFIC DETAILS
1. PERFORMANCE GUARANTEE (CLAUSE 1 OF CONTRACT)
i) Guarantee Bond issued by Bank Name & Branch:-
ii) Guarantee Bond No. & Date:-
iii) Amount Covered by Bond:-
iv) Bond Valid upto (Date):-
2. BANK GUARANTEE BOND ON FREE SUPPLY OF MATERIALS TO THE
CONTRACTOR (CLAUSE 10 OF CNTRACT)
(I) Issued by Bank Name and Branch:-
(ii) Guarantee Bond No. & Date:_
(iii) Amount covered by Bond:-
(iv) Bond valid upto (Date)
3. MANDATORY TESTS ON MATERIALS (CLAUSE 10 A OF CONTRACT)
Sl. Name Full Frequency of No. of Upto No. of No. of Remarks on
No. of Quantity of tests as per Tests to date Tests Tests short fall (if
Material material CPWD be done Qty. required actually any) and
required specifications for full received for upto carried reasons for
as per Quantity at site date out the same
Agreement quantity upto
date
1 2 3 4 5 6 7 8 9

361
4. SETTING UP OF SITE LABORATORY (CLAUSE 10 A OF CONTRACT)

i) Whether Site Laboratory has been set up fully equipped as stipulated in

Clause 10 A of Clauses of Contract?
ii) Whether the Laboratory is manned by Competent Staff?
5. INSURANCE POLICY ON SECURED ADVANCE ON PERISHABLE
MATERIALS (CLAUSE 10B OF CONTRACT)
i) Amount of Secured Advance covered by Insurance Policy:-
ii) Insurance Policy No. & Date:-
iii) Name of Insurance Co. & Branch issuing the Policy:-
iv) Policy Valid upto (Date):-
6. BANK GUARANTEE BOND ON MOBILISATION ADVANCE (CLAUSE 10B OF
CONTRACT)
i) Issued by Bank Name & Branch:-
ii) Guarantee Bond No. & Date :-
iii) Amount covered by Bond:-
v) Bond Valid Upto (Date):-
7. HYPOTHECATION DEED ON PLANT & MACHINERY ADVANCE (CLAUSE
10B OF CONTRACT)
i) Deed No. & Date:-
ii) Details of Plant & Machinery covered:-
iii) Amount of Advance sanctioned:-
8. INSURANCE POLICY ON PLANT & MACHINERY ADVANCE (CLAUSE 10B
OF CONTRACT)
i) Amount of Advance covered by Insurance Policy:-
ii) Details of Plant & Machinery covered:-
iii) Insurance Policy No. & Date:-
iv) Name of Insurance Co. & Branch issuing the Policy:-
v) Policy Valid upto (Date):-
9. LICENSE UNDER THE CONTRACT LABOUR (R&A) ACT & RULES (CLAUSE
19 OF CONTRACT)
i) Labour Office which has issued the License:-
ii) License No. & Date:-
iii) License valid Upto (Date):-

10. INDEMNITY BOND INDEMNIFYING RITES AGAINST PAYMENT TO LABOUR

UNDER LABOUR LAW (CLAUSE 19B I(vi) OF CONTRACT)
i) Indemnity bond No. & Date

362
11. INDEMNITY BOND AGAINST PATENT RIGHTS (CLAUSE No. 26 OF
CONTRACT)
i) Indemnity bond No. & Date
12. INDEMNITY BOND ON EMPLOYER’S PLANT & MACHINERY HIRED TO THE
CONTRACTOR (CLAUSE 34 OF CONTRACT)
i) Indemnity bond No. & Date:-
ii) Details of Plant & Machinery concerned:-
iii) Amount for which Bond executed-

13. AVAILABILITY OF TECHNICAL STAFF AT SITE

(CLAUSE No. 36 OF CONTRACT)

Requirement as per Clause 36 of GCC Available at Site

Min. Qualification & Experience No

14. REGISTRATION WITH CGST DEPARTMENT FOR CGST

(CLAUSE No. 37 OF CONTRACT)
i) Registration No. & Date
ii) CGST Office Name
iii) Registration Valid Upto (Date)

15. REGISTRATION WITH SGST DEPARTMENT FOR SGST

(CLAUSE No. 37 OF CONTRACT)

i) Registration No. & Date

ii) SGST Office Name
iii) Registration Valid Upto (Date)

363
16. INSURANCE POLICY ON COST OF WORKS (CLAUSE 47.1 OF ADDITIONAL
CLAUSES OF CONTRACT)
i) Cost of Works covered by Insurance Policy:-
ii) Insurance Policy No. & Date:-
iii) Name of Insurance Co. & Branch issuing the Policy:-
iv) Policy Valid Upto (Date):-

17. THIRD PARTY INSURANCE (CLAUSE 47.2 OF ADDITIONAL CLAUSES OF

CONTRACT)
i) Amount Covered by Insurance Policy:-
ii) Insurance Policy No. & Date:-
iii) Name of Insurance Co. & Branch issuing the Policy:-
iv) Policy Valid Upto (Date):-

18. WORKMEN’S INSURANCE (CLAUSE 47.3 OF ADDITIONAL CLAUSES OF

CONTRACT)
i) Amount Covered by Insurance Policy:-
ii) Insurance Policy No. & Date:-
iii) Name of Insurance Co. & Branch issuing the Policy:-
iv) Policy Valid Upto (Date):-

19. INDEMNITY BOND ON DAMAGES TO PERSONS AND PROPERTY (CLAUSE

47.9 OF ADDITIONAL CLAUSES OF CONTRACT)
i) Indemnity Bond No. & Date:-

20. DEVIATION STATEMENT

(To be furnished in the Proforma stipulated in Annexure 24.2. To be furnished
starting from the Running Bill when the gross value of work done exceeds 50% of
Contract Value)

21. CERTIFICATE ON CONTRACT COST

Certificate that the Cost of Work as executed has not exceeded the Contract
Cost as sanctioned by the Competent Authority of RITES/Client. Action
proposed for processing sanction of Competent Authority for increase in Contract
Value, if trend of expenditure shows the need for the same.

22. CERTIFICATE ON TIME OF COMPLETION

Certificate that the Time limit specified in the Contract has not been exceeded.
Action proposed for processing sanction of Competent Authority for extension of
time if the trend of progress of work shows the need for the same.

364
23. DETAILS OF RECOVERY OF REMITTANCE OF EPF DUES OF
CONTRACTOR’S EMPLOYEES.
24. TEST CHECK STATEMENT AS PER ANNEXURE 21.6

OFFICIAL SUBMITTING THE BILL

Signature
Name
Designation
Date

365
 ANNEXURE 24.5
(Refer Para 24.7)

DOCUMENTS TO ACCOMPANY FINAL BILL

GENERAL DETAILS
1. Contract Agreement No. & Date:
2. Contract Value (Rs.):-
3. Name of Contractor :-
4. Name of work:-
5. Scheduled Date of Completion / Extended Date of Completion:-
6. Actual Date of Completion:-
7. Final Value of Contract (Rs.)
8. Date of Measurement:-
9. Date of Final Bill:-
10. Date of issue of Final Completion Certificate:-

A) CERTIFICATE TO BE FURNISHED ALONG WITH COPIES OF SUPPORTING

DOCUMENTS
1. All following advances given to the Contractor in terms of Clause 10B of Contract
have been recovered along with interest where due.
i) Secured advance on Materials
ii) Mobilization Advance
iii) Plant & Machinery Advance
2. All amounts due to be recovered from the Contractor towards Hire Charges for
Plant & Machinery, Water Charges, Electricity charges, rent for Employee’s
building (if any given on rent) License fee for Employee’s Land (if any given on
license) and Liquidated Damages and other Compensation have been
recovered.
3. All Mandatory Tests as specified in Contract have been carried out.
4. All Deviations by way of Extra items, Substituted items and Deviations in
Quantities of Scheduled Items as detailed in Clause 12 of Contract have been
approved by the Competent Authority of RITES along with Rates.
5. The Final Contract Value is within the Expenditure sanction limit of the Client and
within the Contract Value sanctioned by the Competent Authority of RITES.
6. The work has been completed within the Stipulated Completion Date / Extended
Completion Date as approved by the Competent Authority of RITES.
7. The MBs and Bill have been signed by the Authorized Signatory of the
Contractor.

366
8. The Contractor has submitted an unconditional No Claim Certificate.
Or
The Contractor has submitted list of Claims enclosed as Annexure A along with
the comments of the Site Engineer on each claim.
9. Test Check has been carried out as per Annexure 21.2 and Test Check Statement
as per Annexure 21.6 has been prepared.

Encl.: Annexure A

OFFICIAL SUBMITTING THE BILL

Signature
Name
Designation
Date

B) DOCUMENTS TO BE ENCLOSED
1. DETAILS OF PERFORMANCE GUARANTEE (CLAUSE 1 OF CONTRACT)
i) Guarantee Bond issued by Branch Name & Branch:-
ii) Guarantee Bond No. & Date:-
iii) Amount covered by Bond:-
iv) Bond Valid Upto (Date):-

2. COPY OF GUARANTEE BOND FOR SPECIALISED WORKS (CLAUSE 17 of

CONTRACT)
i) Item of Work Covered:-
ii) Guarantee Bond No. & Date:-
iii) Bond Valid Upto (Date):-

3. DEVIATION STATEMENT (As per Proforma at Annexure 24.2)

4. COPY OF COMPLETION CERTIFICATE (CLAUSE 8 OF CLAUSES OF

CONTRACT)

5. SET OF COMPLETION PLANS AND OPERATING & MAINTENANCE

MANUAL (CLAUSE 8 B OF CLAUSES OF CONTRACT)

367
6. CHARGE PAPER - HANDING OVER OF COMPLETED WORKS TO THE
CLIENT AND HIS TAKING OVER
7. TEST CHECK STATEMENT AS PER ANNEXURE 21.6

OFFICIAL SUBMITTING THE

BILL

Signature
Name
Designation
Date

368
 ANNEXURE 24.6
(Refer Para 24.8)

CHECK LIST FOR CHECK AT SBU OFFICE BEFORE

PASSING OF BILL

(RUNNING ACCOUNT BILLS)

1. Contract Agreement No. & Date:-

(Reference of Client’s approval for the Agreement)

2. Contract Value (Rs.):-

3. Name of Contractor:-

4. Name of Work:-

5. Scheduled Date of Completion / Extended Date of

Completion:-

6. Date of Measurement:-

7. RA Bill No. & Date:-

1. Whether all Documents stipulated to be submitted with RA Bill YES / NO

submitted

2. Whether the Scheduled Date of Completion / Extended Date YES / NO

of Completion is already over. If “Yes” whether any
application for Extension of Time received and what is the
Present position.

3. Whether the following Bank Guarantees are in proper form

and Valid for the desired amount and period? Whether the
authenticity of the Guarantee Bonds has been cross checked
with Regional Office of Bank.

(i) Performance Guarantee (Clause 1 of Contract) YES / NO

(ii) Mobilization Advance (Clause 10B of Contract) YES / NO

(iii) Free Supply of Materials (Clause 10 of Contract) YES / NO

4. Whether the following insurance Policies are Valid for the

desired amount and period?

(i) Secured Advance on Perishable Materials (Clause 10B YES / NO

of Contract)

369
 (ii) Plant & Machinery Advance (Clause 10B of Contract) YES / NO

(iii) Cost of Works (Clause 47.1 of Contract) YES / NO

(iv) Third Party Insurance (Clause 47.2 of Contract) YES / NO

(v) Workmen’s Insurances (Clause 47.3 of Contract) YES / NO

5. Whether the following Indemnity Bonds of the Contractor are

in desired form and signed by the Authorized Signatory of the
Contractor

(i) Payment to Labour (Clause 193 vi of Contract) YES / NO

(ii) Patent Rights (Clause 26 of Contract) YES / NO

(iii) Employers Plant & Machinery hired to the Contractor YES / NO

(Clause 34 of Contract)

(iv) Damages to persons and property (Clause 47.9 of YES / NO

Contract)

6. Whether the Hypothecation Deed executed by the Contractor

is in proper form and signed by the Authorized Signatory of
the Contractor

(i) Plant and Machinery Advance (Clause 10B of Contract) YES / NO

7. Whether the Contractor has submitted the following

documents

(i) License under Contract Labour (R & A) Act and Rules YES / NO

(Clause 19 of Contract)

(ii) Registration with CGST Department (Clause 37 of YES / NO

Contract)

(iii) Registration with SGST Department (Clause 37 of YES / NO

Contract)

8. Whether the Contractor has arranged for the following?

(i) Setting up of Site Laboratory (Clause 10 A of Contract) YES / NO

(ii) Mandatory Tests as per CPWD Specifications (Clause 10 YES / NO

B of Contract)

(iii) Availability of Technical Staff at Site (Clause 36 of YES / NO

Contract)

370
9. Whether the Deviations by way of Extra items, Substituted YES / NO
items and Deviations in quantities of Schedule items have
been approved by the Competent Authority of RITES and the
Rates have been sanctioned? Whether the Client advised of
the Deviation and the Rates

10. Whether the Contract Cost is likely to be exceeded and if so YES / NO

whether the Sanction of Competent Authority of RITES and
Clients’ Revised sanction for Expenditure taken?

11. (i) Whether Quantities of items executed as shown in Bill are YES / NO

as shown in the Measurement Book, the rates for items

are as given in Contract / approved by Competent

Authority of RITES in case of deviations and the

arithmetical calculations are correct.

(ii) In cases where payment is proposed on Lump sum YES / NO

Quantities whether the Engineer recording the

measurements has certified that not less than the quantity

billed for has actually been executed at site.

(iii) Whether the MB has been signed by Site Engineer / YES / NO

Controlling Officer and the Authorized Signatory of

Contractor? Whether Test Checks carried out as per

Stipulations in Guidelines?

(iv) Whether the Engineer entering the Measurements in MB YES / NO

has certified that the works have been carried out as per

approved drawings and specifications.

(v) Whether arithmetical checks have been done on Quantities YES / NO

and Amount with reference to upto end of previous bill,

Through the Current Bill and upto the end of Current Bill.

12. Whether there is adequate amount available in the Bank YES / NO

Account for this work? If “No” what is the action taken to get
the additional funds required from the client as per the
provisions in the Agreement between RITES and the Client.

13. Whether the Contractor has submitted evidence of recovery YES / NO

371
 and remittance of EPF dues of his employees

14 Whether Test Check Statement as per Annexure 21.6 has YES / NO

been submitted

ACTION PROPOSED WHEN CHECK REVEALS THE NEED FOR THE SAME

ITEM NO. ACTION PROPOSED

CHECKING OFFICIAL

Signature:

Name :

Designation:

Date:

372
 ANNEXURE 24.7
(Refer Para 24.8)

CHECK LIST FOR CHECK AT SBU OFFICE BEFORE PASSING OF BILL

(FINAL BILL)
1. Whether the following Advances under Clause 10B of
Contract have been recovered form the Contractor along
with interest as due as checked from the Final Bill.

(i) Secured Advance on Materials YES / NO

(ii) Mobilisation Advance YES / NO

(iii) Plant & Machinery Advance YES / NO

2. Whether all amounts due from the Contractor towards hire YES / NO
charges for Plant & Machinery, Water Charges, Electricity
Charges, Rent for use of Buildings, License fee for land,
Liquidated damages and other compensations have been
recovered?

3. Whether all Mandatory Tests as stipulated in Contract have YES / NO

been carried out.

4. Whether the Deviations by way of Extra items/Substituted YES / NO

items and Deviations in Quantities of Scheduled items have
been approved along with Rates by the Competent Authority
of RITES and whether the Client has been apprised of the
details?

5. Whether the Final Contract Value is within the Amount as YES / NO

sanctioned by the Competent Authority of RITES and for
which Expenditure Sanction has been accorded by the
Client?

6. Whether Sanction of Competent Authority for extension of YES / NO

time as required exists and the Client has been apprised
with full details of the period for which extension of date for
completion of work has been granted by the Competent
Authority of RITES?

7. (i) Whether Quantities of items executed as shown in Bill YES / NO

are as shown in the MB, the rates for the items are as given
in the Contract / approved by Competent Authority of RITES
in case of Deviations and the arithmetical calculations are
correct?

(ii) Whether the MB has been signed by the Site Engineer YES / NO
/ Controlling Officer and the Authorized Signatory of the
Contractor? Whether Test Checks have been carried out as
stipulated in Guidelines?

373
 (iii) Whether the Engineer entering the Measurements in YES / NO
MB has certified that the works have been carried out as per
approved drawings and specification?

(iv) Whether the total quantities of different items as YES / NO

entered in the MB and billed for, agree generally with the
quantities as computed from approved drawings.

(v) Whether arithmetical checks have been done on YES / NO

quantities and amount with reference to upto end of
previous bill, through the Current Bill and upto end of
Current Bill?

8. Has the Contractor submitted “No claim” Statement YES / NO

9. Whether there is adequate amount available in the Bank YES / NO

Account for this work from the Deposits of the Client.

10. Whether the Completion Certificate issued by the Engineer YES / NO

in Charge is the final one and is in order.

11. Whether the Guarantee Bonds furnished by the Contractor YES / NO

for specialized Works are in proper form and are for the
period required as per Contract.

12. Whether the Completion plans and Operation and YES / NO

Maintenance Manuals furnished by the Contractor are in
order.

13. Whether the Charge Papers on handing over / Taking over YES / NO
of completed works are in order.

14 Whether Test Check Statement as per Annexure 21.6 has YES / NO

been submitted

374
ACTION PROPOSED WHEN CHECK REVEALS THE NEED FOR THE SAME

ITEM NO. ACTION PROPOSED

CHECKING OFFICIAL

Signature:

Name :

Designation:

Date:

375
 ANNEXURE 26.1
(Refer Para 26.3.1)

LIST OF DOCUMENTS CONSIDERED ESSENTIAL FOR

INSPECTIONS BY CTE AND WHICH MAY BE CALLED FOR
EXAMINATION OF WORK
(1) (a) Press Cuttings, including extended dates, if any
i) For pre-qualification of Architects/Consultants
ii) For pre-qualification of contractors
iii) Call of tenders
(b) Register of sale of tenders.
(c) Register of opening of tenders.
(2) File giving reference to financial sanction and approval of competent
administrative authority.
Preliminary estimate
(3) Copy of Detailed Estimate and its technical sanction by the competent technical
authority.
(4) Approved N.I.T (Notice Inviting Tenders) in original.
(5) Rejected tenders and comparative statements for:
(a) Selection of Architects/Consultants.
(b) Short listing or pre-qualification of Tenderers.
(c) Other tenders.
(6) Justification statement and corresponding noting in support of tender/offer
accepted.
(7) Details of negotiations, if any, made before acceptance of tender.
(8) Original contracts with consultant/contractor.
(9) Guarantee Bonds etc. towards security for work, machinery/mobilization advance
etc. including extension of validity.
(10) Insurance policies for work, materials, equipment, men etc. including extension of
validity.
(11) Guarantee for water tightness, termite proofing etc.
(12) Standard specifications
(13) Standard Schedule of Rates.
(14) Drawings (Architectural and Structural).
(15) All connected Measurement Books, level books, field books and lead chart.
(16) All Running Account Bills with all connected statements/vouchers etc.
(17) Statement showing details of check of measurements by Superior Officers-
Copies of orders laying down such requirements.
(18) Materials at site accounts/dismantled materials record.

376
(19) Site order Books/other records/Log Books.
(20) Details of Extra/substituted items and of deviated quantities being
executed/considered for execution in the work along with Analysis of Rates.
(21) Hindrance Register.
(22) Office correspondence files and inspection notes, if any, issued by Inspecting
Officers.
(23) Complaint records, if any.
(24) Any other documents relevant to the works.

377
 ANNEXURE – 26.2
(Refer Para 26.4.1)

REGISTER SHOWING OVERPAYMENT ASSESSED/POINTED

OUT BY CTE OREGANISATION AND SUBSEQUENT
RECOVERIES EFFEECTED

S.No. CTE”s Name of Name of Amount of over Amount Actual Remarks

Ref. work and payment of over date of
Contractor
No. Agreement assessed/pointed payment Recovery
and No. out by CTE accepted of over
date by payment
Engineer-
in-
Charge
for
recovery
1 2 3 4 5 6 7 8

378
 ANNEXURE 26.3
(Refer Para 26.5)
COMMON IRREGULARITIES POINTED OUT BY CTE
1.0. Administrative Approval and Expenditure Sanction
(i) A/A and E/S not available/taken
(ii) Major change in scope made during execution
(iii) No check on the estimate prepared by the consultant
2.0. Detailed estimate and technical sanction
(i) Detailed estimate not prepared
(ii) Backup calculations not kept properly
(iii) Nomenclature of item ambiguous.
(iv) No Standard Schedule of rates followed.
(v) No analysis for non-schedule items
(vi) No details and reference to drawings for check of quantities adopted
(vii) Same component in more than one item
(viii) Rate only items without indicating Quantity (Nil Quantity items)
(ix) No check on consultant in providing costly items
(x) Technical sanction based on the earlier accepted rates and not the
Current rates
(xi) No check on estimates & design prepared by consultants
3.0 Appointment of Consultants
(i) No maximum limit fixed for payment of consultants fee
(ii) Paid for services not rendered.
(iii) No Publicity for appointment of Consultant.
(iv) Selection from old Panel
(v) Adhoc Rates.
(vi) Consultants given free hand in pre-qualification of contractors.
(vii) Consultants allowed receiving sale proceeds of tenders.
(viii) No control of payments on travelling expenses of consultants for site
visits.
(ix) No check on consultants’ planning, design and execution. Contractors
benefited in the process.

4.0 Preparation of Tender Documents

(i) Approval of competent authority not available.
(ii) Contain conflicting, vague and ambiguous provisions resulting in
disputes, delays and financial loss.
(iii) Pre-qualifying criteria ambiguous/stringent.

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 (iv) Rate only items (Nil Quantity items).
(v) Advance for old machinery already in possession of contractor.
(vi) Mobilisation advance without interest.
(vii) Unworkable period of construction.
(viii) Tender documents prepared by splitting bigger works deliberately to fall
within the competency of subordinate officers.
(ix) Particular brand of products stipulated.
(x) No specifications for non-schedule items provided in tender document.
5.0 INVITING AND OPENING OF TENDERS
(i) Publicity period not adequate.
(ii) Tenders issued to ineligible applicants.
(iii) Tender sale and opening registers not maintained.
(iv) Opening tenders in the absence of tenderers.
(v) Corrections, omissions etc. in tender not numbered and attested by the
tender opening authority.
(vi) Tenders invited without availability of land/approval of local body.
(vii) Limited tenders invited labelling works as emergency ones but later on
either work delayed or not put to immediate use on completion.
6.0 TENDER SCRUTINY AND AWARD OF WORK
(i) Pre-qualification done without verifying prescribed parameters
(ii) Contractor qualified without the Contractor satisfying all the prescribed
parameters
(iii) Certificates on Satisfactory completion of work executed for private
parties accepted without TDS certificate while evaluating PQ Documents.
(iv) Accepting additional conditions during negotiations to give undue benefit
to contractor.
(v) Non-finalisation of tenders within validity period
(vi) Purchase preference not given to PSUs, when Government Orders permit
the same.
(vii) L1 ignored pointing out non-satisfactory performance or other flimsy
grounds.
(viii) Tender Conditions not taken into account to bring all the tenders on par
before acceptance.
(ix) Tender split up and awarded to all or some tenderers, by dividing the
work
(x) Single tender accepted without recorded reasons
(xi) Market rate justification not prepared to assess the reasonability of
quoted rates before acceptance
(xii) Tenders during second call accepted on higher rates
(xiii) Items deleted after opening price bid to make the favoured contractor as
the lowest tenderer (L1)

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 (xiv) Work awarded without proper verification of papers furnished by the
tenderer.
(xv) Tender documents and related documents kept in loose files and not
arranged properly; page numbers also not marked.
7.0 WORKS AGREEMENT
(i) Unwanted papers in the agreement
(ii) Important papers such as negotiation letter missing
(iii) Execution of agreement much after commencement of work
(iv) Agreement not signed by witnesses
(v) Performance guarantee obtained late
(vi) Insurance not taken as per conditions
(vii) Allowing validity of bank guarantee and insurance policies to lapse.
(viii) Bank guarantee not verified through issuing bank
(ix) Labour licence not obtained by contractor
(x) Technical staff not employed by contractor
(xi) Labour report not sent periodically
(xii) Safety precautions and other facilities not provided by the firms
(xiii) Schedule of quantity has rates only in figures and not in words.
(xiv) Stipulations regarding supply of water, electricity etc., not complied with.
Recovery not made in case of supply by department
(xv) Conditions on Issue of materials/machinery not stipulated in contract
(xvi) Extension of time granted by authority not competent to do so
(xvii) Stipulations regarding approval of materials/samples not adhered to.
(xviii) Price escalation paid though not stipulated.
8.0 PAYMENT TO CONTRACTORS
(i) Excessive deviations allowed without approval of competent authority
(ii) Items substituted to the advantage of the contractor
(iii) Inadmissible extra items paid.
(iv) Exorbitant rates fixed and paid for extra and substituted items.
Measurements not recorded in MBs.
(v) Test checks not carried out
(vi) Excessive part rates allowed.
(vii) Mobilisation advance recovered without interest for a long time.
(viii) Part rates paid instead of secured advance
(ix) Secured advance paid for larger quantities than required.

(x) Secured advance paid for perishable materials without comprehensive

insurance cover
(xi) Secured advance paid without adequate testing of materials

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 (xii) Not effecting recoveries of secured advance on time
(xiii) Non recovery of Income Tax
(xiv) Erratic escalation payments by taking provisional indices.
(xv) Escalation paid beyond stipulated period without sanction of Competent
Authority.
(xvi) Undue payments made by over measurement of items.
(xvii) Non-recovery of cost of materials from bills even though utilised in the
items paid for.
(xviii) Excess quantities of materials issued to contractors not returned.
(xix) Payment made by measurement under wrong item to the benefit of the
contractor.
(xx) All rebates of the contractor not availed while making payment.
(xxi) Short recovery of materials issued from bills
(xxii) Retention money released before due date
(xxiii) Recording fictitious date of completion of works not completed
(xxiv) Rebate not accounted for in extra/substituted items.
(xxv) CGST & SGST reimbursed without proof of payment.
9.0 SITE RECORDS:
(i) Registers not issued by Engineer in Charge with pages numbered.
(ii) Hindrance register not maintained.
(iii) Site order book not maintained.
(iv) Compliance in site order book not recorded.
(v) Test certificates of cement & steel not available.
(vi) Many cuttings/over writings in the cement register
(vii) Test checks not done by senior officers.
(viii) On many test reports, acceptability limits and whether test meets the
requirements as per contract has not been mentioned.
(ix) Cement & steel brought in small quantity at site without testing.
(x) Mandatory tests not carried out.
(xi) Proper records for bitumen, paints, anti-termite and water proofing
chemicals etc., not maintained to check whether theoretical requirement
has been used.
(xii) Guarantees for water proofing treatment/Anti-termite treatment not
obtained.
(xiii) Materials got tested from unapproved private laboratoreis.
(xiv) Samples failed but action not taken.
(xv) Site lab not set up in spite of existence of agreement provisions.
(xvi) Record of fineness modulus (Gradation) and silt content of sand not
maintained.
(xvii) Record of sieve analysis, hardness, deleterious content flakiness etc., of
coarse aggregate not maintained.
(xviii) Design of mix not done by the approved lab, and with every change of
source of material, make & grade of cement.
(xix) Record of design mix not maintained though specified.

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 (xx) Cube strength/rebound hammer test not done as per specified frequency
& record not maintained.
(xxi) Test of water not maintained and test not carried out as per specified
frequency.
(xxii) Water cement ratio/slump record not maintained or slump provided higher
than specified in design mix report.
(xxiii) Record of check of surface undulations in case of cement concrete
pavement/ bitumen pavement not maintained.
(xxiv) Record of test of sample of Dense Asphaltic Concrete, Semi Dense
Asphaltic Concrete & Bituminous macadam for bitumen content, grading
of aggregate & field density not maintained.
(xxv) Record of pumping of water not maintained.
(xxvi) Record of use of road roller not maintained.
(xxvii) Record of test of compaction of earth not maintained.
(xxviii) Record of testing of earth brought from outside not maintained.
(xxix) Record of testing of earth disposed off declaring as unserviceable not
maintained.
(xxx) Record of expiry date of anti-termite treatment, receipts and consumption
not maintained.
(xxxi) Record of serviceable material retrieved not maintained.
(xxxii) Record of disposal of rejected material by specifying truck no. & date of
disposal not maintained.
(xxxiii) Water table not recorded to check the measurement of work executed
under water.
(xxxiv) Record and proof of foul condition not maintained.
(xxxv) Testing of pile not done and record not maintained.
(xxxvi) Record of level of bottom/top of D.A.C., S.D.A.C & bituminous macadam
not maintained.
(xxxvii) Record of receipt & consumption of bitumen not maintained.
(xxxviii) Record of temp. of bitumen macadam, D.A.C &
S.D.A.C not maintained.
(xxxix) Record of core test or proctor density test of B.M., D.A.C and S.D.A.C not
maintained.
(xl) Daily bitumen consumption register of hot mix plant not maintained.
(xli) Verification of BG and test results taken through contractor; when these
were checked by investigating agency, found forged.
(xlii) Hindrance on account of rain has been recorded, period of rain fall is
already included in stipulated period of completion.
10. QUALITY IN CONSTRUCTION
10.1 Earthwork
(i) Earth work calculations not done based on levels where specified.
(ii) Hard rock/soft rock not stacked separately.
(iii) Voids not deducted.
(iv) Measurements not restricted as per drawing.
(v) Lead/lift chart of earth not used.
(vi) Proper quality of earth not used

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 (vii) Compaction of earth by road roller paid within building.
10.2 Concrete Work
(i) Over size/disintegrated/soft aggregates used.
(ii) Sand with more silt content used.
(iii) Honey combing noticed.
(iv) Less thickness of PCC under floors.
(v) Less reinforcement provided.
(vi) Proper overlaps not provided.
(vii) Lesser dia binding wire used.
(viii) Cover of mortar blocks of adequate strength not used.
(ix) Expansion joint not properly located/not provided.
(x) Steel centering and shuttering not used.
(xi) Lower floors not supported during casting.
(xii) Wrong classification of RCC items.
(xiii) Reinforcement found exposed.
(xiv) Design mix not used though specified in contract.
10.3 Wood Work/Aluminium Work
(i) Spices of Wood other than specified used.
(ii) Cracks/dead knots apparent in wood.
(iii) Kiln seasoning not done where specified.
(iv) Less size of stile/rail.
(v) Coal tar/wood preservative not used for timber in contact with masonry.
(vi) Size of hold fast found less.
(vii) Glass panes of less thickness provided.
(viii) Non ISI marked fittings used.
(ix) Glue not used in joints.
(x) Doors/Windows not fabricated in approved factory.
(xi) Local make flush doors used.
(xii) Less size & number of hinges.
(xiii) Aluminium sections of approved brand not used.
(xiv) Lighter aluminium sections than specified provided.
(xv) Proper sealing between frame and opening not done.
(xvi) PVC weather strip/EDPM lining not provided.
(xvii) Less thickness of anodizing/powder coating.
(xviii) Aluminium work specified in square meter, but drawing showing sections
to be used and their Unit weights not given.
10.4 Steel Work
(i) Non standard steel section used.
(ii) Single piece section not used.
(iii) Metal beading and glazing clips not provided.
(iv) Inferior quality hinges and fittings used.
(v) Steel hinges not fixed by cutting slot.
(vi) Brass striking plate not provided.

384
 (vii) Windows not anchored at top and bottom.
(viii) Angle frames provided instead of T-iron frames.
10.5 Flooring
(i) Less width and thickness of glass strips.
(ii) Less thickness of flooring.
(iii) Less thickness of kota/marble stone/granite used.
(iv) Flooring sounding hollow.
(v) Larger panel size than specified.
(vi) Poor workmanship with reference to lines and levels.
10.6 Roofing
(i) Brick coba treatment having cracks, local undulations, sounding hollow,
less thickness, inadequate slopes.
(ii) Water proofing treatment done by non-specialised firm.
(iii) Guarantee Bond not obtained.
(iv) Gobar and straw not used in plaster over mud phuska.
(v) Less thickness of PVC sheet in khurra.
(vi) Non ISI rain water pipe.
10.7 Finishing
(i) Ceiling plaster thicker than specified.
(ii) Non smooth plastered surface.
(iii) Plaster not in line and level.
(iv) Cement mortar of less strength.
(v) Small size grit used in external grit plaster.
(vi) Less thickness of cement plaster/POP
(vii) Surface not properly prepared before painting.
(viii) Distemper/White wash coming to hand.
(ix) Brush marks noticed.
(x) Paint register not maintained.
10.8 Water Supply, Sanitary Installations and Drainage
(i) Non ISI SCE/GI pipes used.
(ii) Under weight SCI/GI pipes
(iii) Clamping of GI pipe not done at proper spacing
(iv) Under size MS holder bat clamp.
(v) Clamps not fixed in CC blocks.
(vi) Less lead used in joints.
(vii) Defective nahani traps.
(viii) Testing of water supply and sanitary system not done.
(ix) Commercial quality sanitary ware used.
(x) Under weight bib taps/pillar taps/stop cocks
(xi) Brackets of wash basin etc., not provided.
(xii) Under weight PVC water storage tanks provided.
(xiii) Under weight gully gratings and manhole.

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 (xiv) Inferior quality SW/RCC pipes used.
(xv) Water tightness of joints and slopes not checked.

10.9 Road Work

(i) Undulations in surface.
(ii) Slopes, line and levels not maintained.
(iii) Over size aggregates used.
(iv) Non proper consolidation.
(v) Less thickness of individual layers of WBM/BM/SDAC/DAC.
(vi) WBM paid as per stack measurement.
(vii) Less contents of bitumen and constituents aggregates.
(viii) Less quantity bitumen used in tack coat.
(ix) Proper density of individal layers of pavement not achieved.
(x) Less flexural strength of CC Pavement
(xi) Non proper expansion/construction joint.
(xii) Non uniform corrugation on finished CC pavement.

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 Annexure 27.1
(Refer Para 27.3)

PROCEDURE ORDER ON OPENING, CUSTODY AND FINAL DISPOSAL

OF ESSENTIAL PROJECT DOCUMENTS

1.0 GENERAL INSTRUCTIONS

1.1 In maintenance of files, the following procedure shall be ensured by the

custodian of the file.

i) The file will consist of a Correspondence side attached to the bottom cover
of file and Noting Side attached to the top cover of the file.

ii) Correspondence side documents should be numbered serially starting

from 1, on the right hand top corner on each page or folio. Rubber stamp
marking

B.R

F.R

shall be inscribed on the middle of top of each page/Folio. B.R. stands for
“Back Reference” or the earlier Folio No. dealing with the same subject.
F.R. stands for “Forward Reference” or the subsequent Folio No. dealing
with the same subject.

iii) Noting-side documents should also be numbered serially starting from N/1,
on the top middle of each page. In the Notings any reference to
Correspondence / Folio Number should be made as C/ ____ (Page No.)
Similarly any reference to an earlier Noting Page should be made as
N/_____ (Page No.).

iv) There should be no blank pages either in the Correspondence or Noting

side. Blank space if found unavoidable or left by mistake, should be
scored out to prevent subsequent additions.

1.2 SBU Head will nominate an official of the Project Office to be in charge of the
Central Registry for custody of all Documents relating to closed projects, whether
emanating from the Project Office itself or received from the Site Office. This
official will also maintain a Register with Project wise Index of all Documents
received from the Project Coordinators and from the Accounts Section.

387
2.0 GROUPS AND DOCUMENTS COVERED BY EACH GROUP

GROUP DOCUMENT / FILE NAME

A) COMMON FILES TO 1. Policy File on “Technical Matters”

BE MAINTAINED IN 2. Policy File on “Establishment

SBU OFFICE Matters”

3. Policy File on “Accounts Matters”

4. Business Development File on

Projects for which no offer is

Proposed to be made

B) DOCUMENTS TO BE MAINTAINED 1. Business Development File

IN SBU OFFICE BY TECHNICAL 2. Input Estimate File

WING FOR EACH PROJECT FOR 3. Consultancy Agreement between

WHICH OFFER IS PROPOSED TO RITES and the CLIENT

BE MADE 4. Sub Consultancy Agreement

between RITES and the SUB

CONSULTANT

5. Correspondence File on Estimate

6. Detailed Estimate for Works

7. Drawings – Correspondence file

8. Correspondance between

RITES and the SUB CONSULTANT

9. Works Contract Agreement between

RITES and the CONTRACTOR

10 Correspondence between RITES

and the CONTRACTOR / Site

Offices

11 Consultancy Agreement –

388
 Correspondence with the CLIENT

on Technical matters

12 Correspondence with RITES

Headquarters on all matters

C) DOCUMENTS TO BE MAINTAINED 1. Correspondence with the CLIENT

IN SBU OFFICE BY ACCOUNTS on Financial matters

WING FOR EACH PROJECT FOR 2. Correspondence with the

WHICH CONSULTANCY CONTRACTOR on Financial matters

AGREEMENT HAS BEEN SIGNED 3. Correspondence with the SUB

WITH THE CLIENT CONSULTANT on Financial matters

D) DOCUMENTS TO BE MAINTAINED 1. Correspondence with SBU Office on

BY THE SITE OFFICE FOR THE all matters

WORK FOR WHICH WORKS 2. Correspondence with the

CONTRACT HAS BEEN CONTRACTOR on all matters

EXECUTED 3. Correspondence with the CLIENT on

all matters

2.1 In addition to the essential Documents listed in Para 2.0, SBU Head can open other
files as required, following the same system on numbering of files.

3.0 PROCEDURE TO BE ADOPTED ON OPENING AND CUSTODY OF

DOCUMENTS UNDER DIFFERENT GROUPS

3.1 GROUP (A)-COMMON FILES TO BE MAINTAINED IN SBU OFFICE

NOTES

i) The official nominated by SBU Head will be responsible for opening of the
files (Items 1 to 4) including giving File Number.

ii) Policy Files (Items 1,2 & 3) are to be retained as permanent records and
will continue to remain in the custody of official nominated by SBU. At the
time of his transfer/ retirement, the official concerned should hand over the
files to his successor under clear signature. The top covers of all Policy
Files should be prominently marked with the words “PERMANENT
RECORD/NOT TO BE DESTROYED”.

389
 iii) Business Development Files (Item 4), relating to each Financial Year shall
be maintained separately. File relating to each Financial Year may be
retained for a year more and disposed off at the beginning of the second
succeeding Financial Year.

A (1) POLICY FILE ON TECHNICAL MATTERS

a) File Name : Policy Letters and Correspondence on Technical Matters

b) File Number: RITES/PO/Hd.Qtrs. of PO/POLICY/ TECHNICAL/VOL. No.

(Note: Head Quarters of Project Office can be in a short form such as SC
for Secunderabad, NGP for Nagpur etc)

c) Contents: All Policy letters issued by RITES Head Quarters including

correspondence on all Technical matters.

A (2) POLICY FILE ON ESTABLISHMENT MATTERS

a) File Name : Policy Letters and Correspondence on Establishment Matters

b) File Number: RITES/PO/Hd.Qtrs. of PO/POLICY/ ESTAB/VOL. No.

c) Contents: All Policy letters issued by RITES Head Quarters including

correspondence on all Establishment matters.

A (3) POLICY FILE ON ACCOUNTS MATTERS

a) File Name : Policy Letters and Correspondence on Accounts Matters

b) File Number: RITES/PO/Hd.Qtrs. of PO/POLICY/ACCTS/VOL. No.

c) Contents: All Policy letters issued by RITES Head Quarters including

Correspondence on all Accounts matters.

A (4) BUSINESS DEVELOPMENT FILE ON PROJECTS FOR WHICH NO OFFER IS

PROPOSED TO BE MADE

a) File Name: “No- Offer” Projects

b) File Number: RITES / PO/Hd.Qtrs. of PO/ BD/ No Offer / Financial Year

(Note: One file to be opened for each Financial year)

c) Contents: Newspaper or other advertisements, Tender / Details collected

and correspondence / Notings on the decision not to quote for the Tender.

3.2 GROUP (B)-DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY

TECHNICAL WING FOR EACH PROJECT FOR WHICH OFFER IS PROPOSED
TO BE MADE
NOTES

i) The Project Coordinator will be responsible for opening of the files (Items
1, 2, 5, 7, 8, 10, 11, & 12) including giving File numbers.

390
 ii) The Project Coordinator will also be responsible for making out three
copies of documents (Items 3, 4, 6 & 9) in Bound Book form and arrange
to supply one copy each to the Accounts Section in SBU Office and to the
Site office. He will also be responsible to make out two copies of Input
Estimate (Item 3) and arrange to supply one copy to the Accounts Section
in SBU Office.

iii) The Project Coordinator will keep custody of all documents (Items 1 to 12)
as well as all the Documents received from the Controlling Site Engineer
till Refund of the Security Deposit to the Works Contractor or Finalisation
of Arbitration / Court Case, if any, whichever is later. The Project
Coordinator will then hand over all the Records to the official in charge of
the Central Registry duly indexed and under clear signature, after marking
in bold letters on top cover of each Document the Expiry Date (Date upto
which the document is to be preserved as per the provisions in Annexure
19.5 of these Guidelines).

B (1) BUSINESS DEVELOPMENT FILE

a) File Name: B.D. Correspondence on _____ (Name of the Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in Brief / Name

of

Project in brief / BD/Financial Year of Offer

c) Contents: i) Notification on Project (NIT)

ii) Tender Document

iii) Papers relating to preparation of Technical & Financial

Bids

iv) Correspondence with the Client on Clarifications

v) Minutes of Pre-Bid Meeting

vi) Technical Bid as submitted (complete)

vii) Financial Bid as submitted (complete)

viii) Results of Negotiation, if any

ix) Letter of Acceptance / Letter of Rejection of Bid by the

Client.

B (2) INPUT ESTIMATE

(Note: Input Estimate as finally sanctioned should be maintained in a bound

Book form in two copies with one copy retained with Project Coordinator and one
with Accounts Section)

a) File Name: Correspondence on Input Estimate on ________________

(Name of the Project) – Consultancy Agreement No. ________
dt.________

391
 b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in Brief / Name
of

Project in brief / INPUT ESTIMATE

c) Contents: All correspondence relating to Input Estimate till sanction by

the Competent Authority along with a copy of Input Estimate as
sanctioned.

B (3) CONSULTANCY AGREEMENT BETWEEN RITES AND THE CLIENT

(Note: To be maintained in a bound Book form in three copies, one with Project
Coordinator, one with Accounts Section in SBU Office and one in Site Office.
The Contract Agreement duly signed by both parties should be complete with all
enclosures).

Details to be inscribed on top cover of the Bound Book

CONTRACT AGREEMENT FOR PROJECT CONSULTANCY

i) Contract Agreement No. & Date

ii) Name of the Client

iii) Name of the Project

iv) Brief details of scope of Consultancy

v) Period of Consultancy (From ________ to __________)

vi) Consultancy Value

B (4) SUB CONSULTANCY AGREEMENT BETWEEN RITES AND THE SUB-

CONSULTANT

(Note: To be maintained in a Bound Book form in three copies, one with Project
Coordinator, one with Accounts Section in SBU Office and one in Site Office.
The Contract Agreement duly signed by both parties should be complete with all
enclosures).

Details to be inscribed on Top Cover of the Bound Book

CONTRACT AGREEMENT FOR SUB CONSULTANCY

i) Contract Agreement No. & Date

ii) Name of the Sub Consultant

iii) Name of the Project

iv) Brief details of scope of Sub Consultancy

v) Period of Sub Consultancy (From ________ to __________)

vi) Sub Consultancy Value

392
B (5) CORRESPONDENCE FILE ON ESTIMATE

a) File Name: Estimate for ______ (Name of the Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in brief /

Name of

Project in brief/ ESTIMATE

c) Contents: i) Abstract Estimate with details of calculation on rates

and quantities of items

ii) Correspondence with the Client and his acceptance of

Abstract Estimate

iii) Detailed Estimate with supporting calculations and data

relied upon

iv) Correspondence with Client and his acceptance of

Detailed Estimate

v) Technical Sanction of Detailed Estimates by Competent

Authority of RITES.

B (6) DETAILED ESTIMATE FOR WORKS

(Note: To be maintained in a Bound Book form in three copies, one with Project
Coordinator, one with Accounts Section in SBU Office and one in Site Office. The
Estimate copy should include the Letter of Acceptance of the Client and the
Technical Sanction by the Competent Authority of RITES).

Details to be inscribed on Top Cover of the Bound Book

DETAILED ESTIMATE

i) Name of the work

ii) Brief Details of items covered

iii) Client Acceptance Ref. No. & date

iv) Sanction Ref. No. & date

v) Estimate Amount

B (7) DRAWINGS – CORRESPONDENCE FILE

a) File Name: Drawings for ______ (Name of the Project)

393
 b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in brief / Name
of Project in brief/ DRAWINGS

c) Contents: Correspondence with the Site Office / Sub Consultant / Client

on Drawings

B (8) CORRESPONDENCE BETWEEN RITES AND THE SUB-CONSULTANT

a) File Name: Sub Consultancy for __________ (Item of work) for

____________ (Name of the Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Project in brief / Item

of work in brief/ SUB CONSULTANCY

(Note: Under Column “Item of Work in brief” indicate Design / Survey / Geo-tech

etc.)

c) Contents: i) Notification (NIT)

ii) Tender Document

iii) Technical & Financial Bids received

iv) Correspondence on Clarifications from Bidders

v) Evaluation of Bids

vi) Negotiation papers

vii) Letters of Rejection to unsuccessful Bidders

viii) Letter of Acceptance to successful Bidder and further

correspondence on technical matters till execution

of Contract Agreement for Sub consultancy.

ix) Correspondence during execution of works.

B (9) WORKS CONTRACT AGREEMENT BETWEEN RITES AND THE

CONTRACTOR

(Note: To be maintained in a Bound Book for in three copies, one copy with
Project Coordinator, one with Accounts Section in SBU Office and one in Site
Office. The Contract Agreement duly signed by both the parties should be
complete with all enclosures.)

Details to be inscribed on Top Cover of the Bound Book

CONTRACT AGREEMENT FOR WORKS

i) Contract Agreement No. and Date

ii) Name of the Contractor

iii) Name of the Work

394
 iv) Brief details of Scope of Work

v) Period of Contract ( From ______ To _______)

vi) Contract Value

B (10) CORRESPONDANCE BETWEEN RITES AND THE CONTRACTOR / SITE

OFFICES

a) File Name: Works Contract for ______ (Name of the Work)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Contractor in brief /

Name of Work in brief/ WORKS CONTRACT

c) Contents i) Notification (NIT)

ii) Tender Documents

iii) Pre-Bid Meeting Minutes

iv) Correction Slips to Tender Documents

v) Technical & Financial Bids received

vi) Evaluation of Bids

vii) Negotiation Papers

viii) Letters of Rejection to unsuccessful Bidders

ix) Letter of Acceptance to the successful Bidder

and further correspondence with contractor till

execution of Works Contract Agreement

x) Correspondence during execution of works.

xi) Correspondence with site office.

B (11) CONSULTANCY AGREEMENT – CORRESPONDENCE WITH THE CLIENT

ON TECHNICAL MATTERS.

a) File Name: Correspondence with _______ (Name of the Client) on

__________ (Name of Project) Consultancy Agt. No.________ Dated:

b) File Number: RITES/PO/Hd.Qr. of PO/ Name of Project in Brief / Name

of Client in Brief / Vol.No.

c) Contents: Correspondence between SBU Office and the Client on the

Consultancy Agreement on Tech.matters.

B (12) CORRESPONDENCE WITH RITES HEAD QUARTERS ON ALL MATTERS.

a) File Name: Correspondence with RITES / Name of Division /

Gurgaon on ______(Name of Project)

395
 b) File Number: RITES/PO/Hd.Qr. of PO / Name of Project in Brief /
Name of Client in Brief / R.I. / B.A. / _______/Vol.No.

c) Contents: Correspondence between SBU Office and RITES

Corporate Office on the Project on all Matters.

3.3 GROUP (C)- DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY

ACCOUNTS WING FOR EACH PROJECT FOR WHICH CONSULTANCY
AGREEMENT HAS BEEN SIGNED WITH THE CLIENT.

NOTES
i) The Accounts Wing Officer nominated by SBU Head will be responsible for
opening of files (Items 1,2 & 3) including giving File numbers. He will also
be responsible for collecting from the Project Coordinator, Bound copies of
Consultancy Agreement between RITES and the Client, Input Estimate,
Subconsultancy Agreements between RITES and the Sub Consultants,
Detailed Estimate for Works and Works Contract Agreement between
RITES and the Contractors.

ii) The Accounts Wings Officer nominated by SBU Head will keep custody of
all Documents referred to in Para (i) above till finalisation of Accounts with
the Works Contractors, Sub Consultants and the Client or Finalisation of
Arbitration / Court case if any, whichever is later. The Accounts Wing
Officer will then hand over all the Documents to the official in charge of the
Central Registry duly indexed and under clear signature, after marking in
bold letters on top cover of each Document the Expiry Date (Date upto
which the document is to be preserved as per the provisions in Annexure
19.5 of these Guidelines).

C (1) CORRESPONDENCE WITH THE CLIENT ON FINANCIAL MATTERS

a) File Name: Correspondence with _________ (Name of Client) on

______(Name of Project) – Consultancy Agreement No.__________
Dated:_________

b) File Number: RITES/PO/Hd.Qr. of PO / Name of Project in brief / Name of

Client in brief/ACCTS./Vol.No.

c) Contents: Correspondence between SBU Office and the Client on the

Consultancy Agreement on Financial Matters.

C (2) CORRESPONDENCE WITH THE CONTRACTOR ONFINANCIAL MATTERS.

a) File Name: Correspondence with __________ (Name of Contractor) on

______(Name of Project) – Works Contract Agreement No. __________
Dated:

b) File Number: RITES/PO/Hd.Qr. of PO/ Name of Project in brief/ Name of

Contractor in brief / ACCTS. / Vol.No.

c) Contents: Correspondence between SBU Office and the Contractor on

Financial Matters.

396
C (3) CORRESPONDENCE WITH THE SUBCONSULTANT ON FINANCIAL
MATTERS.

a) File Name: Correspondence with __________ (Name of

Sub- Consultant) on ______(Name of Project) – Consultancy Agreement
No. ________Dated:___________

b) File Number: RITES/PO/Hd.Qr. of PO/ Name of Project in Brief / Name of

Consultant in brief / ACCTS. / Vol.No.

c) Contents: Correspondence between SBU Office and the Subconsultant

on the Subconsultancy Agreement on Financial Matters.

3.4 GROUP (D)-DOCUMENTS TO BE MAINTAINED BY THE SITE OFFICE FOR

THE WORK FOR WHICH WORKS CONTRACT HAS BEEN EXECUTED

NOTES

i) The Controlling Site Engineer will be responsible for opening of Files

(Items 1,2 & 3) including giving File numbers. He will also be responsible
for collecting from the Project Coordinator Bound copies of Consultancy
Agreement between RITES and the Client, Sub Consultancy Agreement
between RITES and the Subconsultants, Detailed Estimate for Works and
Works Contract Agreement between RITES and the Contractor.

ii) The Controlling Site Engineer will keep custody of all the Documents
referred to in Para (i) above till expiry of the maintenance period of Works
Contract. The Controlling Site Engineer will thereafter hand over all the
Documents to the Project Coordinator, duly indexed and under clear
signature.

D (1) CORRESPONDENCE WITH SBU OFFICE ON ALL MATTERS

a) File Name: Correspondence with __________ (Name of SBU Office) on

________ (Name of Work) – Works Contract No. __________ Dated:
___________

b) File Number: RITES/ S.O. / Station of Site Office in brief / Name of Work
in

brief / Name of SBU Office / Vol.No.

c) Contents: Correspondence between Site Office and the SBU Office on

the Works Contract on all matters.

D (2) CORRESPONDENCE WITH THE CONTRACTOR ON ALL MATTERS

a) File Name: Correspondence with __________ (Name of Contractor) on
______ (Name of Work) – Works Contract
No._____________Dated:__________

b) File Number: RITES/ S.O. / Station of Site Office in brief / Name of Work
in brief / Name of Contractor in brief/ Vol.No.

397
 c) Contents: Correspondence between Site Office and the Contractor on the
Works Contract on all matters.

D (3) CORRESPONDENCE WITH THE CLIENT ON ALL MATTERS

a) File Name: Correspondence with __________ (Name of Client) on

______(Name of Work) – Works Contract No. Dated:

b) File Number: RITES / S.O. / Station of Site Office in brief / Name of Work
in brief / Name of Client / Vol.No.

c) Contents: Correspondence between Site Office and the Client on the

Works Contract on all matters.

4.0 FINAL DISPOSAL OF PROJECT DOCUMENTS

(Note: Instructions below are applicable to all Documents covered by all Groups
A, B, C & D)

i) The final disposal of Documents will be governed by the “Norms for

disposal of old records” at Annexure 19.5 of these Guidelines.

ii) Policy files on Technical Matters, Establishment Matters and Accounts

Matters (Refer Group A) should be retained as permanent records.
Business Development Files on Projects for which no offer is proposed to
be made (Refer Group A) are required to be maintained for each financial
year and may be disposed off at the beginning of the second succeeding
financial year.

iii) The official in charge of the Central Registry, when taking over custody of
the Documents from the Project Coordinators / Accounts Wing Officers, as
the case may be, will check that the top covers of the Documents have
been marked in bold letters with the Expiry date (Date upto which the
Document is to be preserved as per the provisions in Annexure 19.5 of
these Guidelines)

iv) Every year in the month of April, SBU Head will organize a drive to have
the documents under the custody of the official incharge of the Central
Registry scrutinised carefully. The Time Expired Documents, as observed
from the Top covers of the Documents should be disposed off after
keeping a list of such documents with relevant details such as, File
Number, File Name, Agreement no. & Date, Names of Parties to the
Agreement, Purpose of Agreement, Details of Site Record etc.

v) Similarly Documents to be kept as Permanent Records should be

preserved duly indexed.

398
 ANNEXURE 28.1
(Refer Para 28.10)

PROFORMA FOR LETTER BY ENGINEER-IN-CHARGE TO THE CONTRACTOR FOR

ISSUE OF SHOW CAUSE NOTICE UNDER CLAUSE 8 OF GUIDELINES ON BANNING
OF BUSINESS DEALINGS
BY REGD. POST. / SPEED POST

(SHOW CAUSE NOTICE UNDER CLAUSE 8 OF

GUIDELINES ON BANNING OF BUSINESS DEALINGS)

Office of (Engineer in Charge)

Letter No._____ dated_____
To
(Contractor)
Address
Dear Sir,
Sub: Name of work - .......................................................................
Show Cause Notice for Banning of Business Dealings
1 In terms of the ‘Guidelines on Banning of Business Dealings’ given in Annexure ‘A’
to the Integrity Pact between RITES Ltd.and you, the Competent Authority is,
prima facie, of the view that action for banning of business dealings with you is
called for because of the following grounds of misconduct / mis-behaviour :
State here the ground(s) on account of which Banning of Business Dealings can be
initiated (refer to Clause 6 of Guidelines on Banning of Business Dealings)

2 You are hereby given an opportunity to explain your conduct. You may, therefore,
submit your written statement of defence showing cause as to why business
dealings with you should not be banned. Your reply in this regard should be sent
within 30 days of the date of this letter. If no reply is received within 30 days, the
competent authority may decide the matter ex-parte.

Yours faithfully,

Engineer-in-Charge
.

399
 ANNEXURE 28.2
(Refer Para 28.10)

PROFORMA FOR LETTER BY ENGINEER-IN-CHARGE TO THE CONTRACTOR ON

SUSPENSION OF BUSINESS DEALINGS
BY REGD. POST. / SPEED POST
Office of (Engineer in Charge)
Letter No._____ dated_____
To
(Contractor)
Address
Dear Sir,
Sub: Name of work - ...................................................................................
Suspension of Business Dealings
1 In terms of the ‘Guidelines on Banning of Business Dealings’ given in Annexure
‘A’ to the Integrity Pact between RITES Ltd. and you, the Competent Authority is
authorized to suspend business dealings with you in case your conduct is under
investigation and the allegation(s) against you is/are of serious nature.

2 The allegation(s) being investigated against you, inter alia, is/are

(a)……………………..(b)……………..(write briefly the allegation(s) which is/are
of serious nature).

3 The Competent Authority considers the aforesaid allegation(s) to be of serious

nature which warrant discontinuance of business dealings with you pending
investigation of the allegation(s). In this connection, please note that the
Competent Authority has decided to suspend business dealings with you with
immediate effect for a period of six months from the date of this letter.

4 Please acknowledge receipt of this letter.

Yours faithfully,

Engineer-in-Charge

Not On Original
Copy to :Investigating Department/Unit for completing the investigation within six months

400
 ANNEXURE 28.3
(Refer Para 28.10)

PROFORMA FOR LETTER BY ENGINEER-IN-CHARGE TO THE CONTRACTOR ON

BANNING OF BUSINESS DEALINGS
BY REGD. POST. / SPEED POST
Office of (Engineer in Charge)
Letter No._____ dated_____
To
(Contractor)
Address
Dear Sir,
Sub: Name of work - .........................................................................................
Banning of Business Dealings
1 In terms of the ‘Guidelines on Banning of Business Dealings’ given in Annexure
‘A’ to the Integrity Pact between RITES Ltd.and you, a Show Cause Notice was
issued to you vide letter No………………… dated ……….. asking you to submit
your written statement of defence within 30 days.
2 The said period of 30 days has since elapsed but no reply has been received
from you.
Or
2 Your reply to the Show Cause Notice was received vide your letter No. ………..
dated ………
(Delete whichever is not applicable in para 2)

3 After detailed consideration of the matter by the Banning Committee and on

considering the recommendations of the Banning Committee, the Competent
Authority has decided to ban all business dealings with you for a period of ....
years on account of the following grounds
(quote briefly from the reasoned order of the Competent Authority)

4 Please acknowledge receipt of this letter.

Yours faithfully,

Engineer-in-Charge

401