5.

5 acceptance of tender:

Although the contract agreements provide a validity period of 60 days for the acceptance
of tender, yet it is imperative that there is no undue delay in the acceptance of tender.The
period of 60 days provided in the contract agreement is intended to provide a legal cover
regarding the validity of tender in case the acceptance of tender is delayed for reasons beyond
the control of the concerned officer.It is accordingly directed that the following schedule should
be strictly adhered for acceptance of tender and where there has been deviation from the same,
the matter should be reported by the officer accepting the tender to his next higher authority
explaining reason for the delay:-
● Where acceptance of tender is within the competence of Executive Engineer, the
decision must be given within 10 days of the receipt of tenders.
● where the acceptance of tender is within the competence of superintending engineer,
the case must be forwarded to the superintending engineer by the Executiv Engineer
with their recommendation within 10 days of the receipt of the tender and the decision
must be given by the superintending engineer within 20 days of the date of receipt of
tender.
● where the acceptance of tender is within the competence of chief engineer the case
should be forwarded by the Executive Engineer to the superintending engineer within the
maximum period of 10 days and likewise the superintending engineer should not take
more than 10 days to forward the same to the chief engineer . The decision must be
given by the chief engineer within 30 days of the date of receipt of tender by the
Executive Engineer.

Government of the Punjab, communication and Works Department even No. dated 4-12-1984

5.6 Government contracts:

Instances have come to the notice of this division that contracts are signed by different organs
of the government for the execution of different Works by different parties / contractors, without
observing the principal broadly laid down in para 18 and 19 of GFR Vol-1.

5.6.1 Safeguard for contracts

In order to provide adequate safeguard toward ensuring that government is not put to uncertain
financial difficulties, the relevant instructions contained in the GFR Vol-1 are reproduced under
the compliance.
● No contract may be entered into to by any authority which has not been empowered to
do so by or under the orders of the president.
● the various classes of contracts and assurance of property authorised by the president
in exercise of powers conferred by article 99 of the constitution to be executed by
different authorities' as specified in appendix 1.
 ● subsidiary order of government as to the limitations upon the powers of these authorities
come on the conditions under which such powers should be exercised and the general
procedure prescribed with regard to search contacts, such as calling for and acceptance
of tender etc are laid down in the appropriate departmental regulations.
5.6.2 General principles for guidance of authorities:

The following general principles have been laid down for the guidance of authorities
which have to enter into contracts are agreements involving expenditure from public funds
● The terms of the contract must be precise and definite and there must be no room for
ambiguity or misconstruction there in.
● as far as possible, legal and financial advice should be taken in the drafting of contracts
before they are finally entered into.
● standard forms of contract should be adopted wherever possible, the term to be subject
to adequate prior scrutiny.
● the terms of the contract once entered into, should not be materially varied without the
previous consent of the authority competent to enter into the contract as so varied. No
payment to contractors by way of compensation, or otherwise, outside the strict terms of
the contract are in excess of the contract rates may be authorised without the previous
approval of the ministry of finance
● 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 ministry of finance
● whenever practicable and advantageous contract should be placed only after tender
have been openly invited and, in cases where the lowest tender is not accepted reason
should be recorded.
● in selecting the tender to be accepted, the financial status of the individual and firm
tendering must be taken into consideration in addition to all other relevant factors .
● even in cases where the formal written contract is not made into order of supplies etc
should be placed without at least a written agreement as to the price.
● provision must be made in contract for safeguarding government property entrusted to a
contractor.
● when a contract is likely to endure for the period of more than 5 year it should, wherever
feasible, include a provision for an unconditional power of revocation of cancellation by
government at any time on the expiry of six months notice to that effect.

5.7 Item number 24 Chapter earthwork of CSR 1979 compaction of earthwork

For correct interpretation of the scope of work against an item of work, the following principle
have to be taken into consideration.
● The rate against an item of work exhibited in the schedule of rates are otherwise has to
be related to a set of specifications prescribed for the execution of that item of
work.Without reference to specification the rate has no meaning.( column 6 of the
schedule of rates refer to the relevant specification number against each item of
work.Smilar references are given in the beat schedule of item “rate tender”)
 ● the rate quoted against an item of work is full and complete compensation for all the
components and steps covered in the specification for that item of work.
● the nomenclature of the item of work in the schedule of rates are NIT is brief and
cannot contain all the components and steps required for the completion of the item of
the work as described in specification for that item ( use of the word etc in the
nomenclature of item 24(a) is an evidence in support of this statement)
● to look for the scope of work of an item by interpretation of the working of the item given
in the schedule of rate or NIT is erroneous.The scope forming part and described in the
specification of that item should be referred to ascertain the obligations of a contract
against the rate quoted by him for that item.
It will, therefore will be clear that it is immaterial whether the component of “dressing of
earthwork” is mentioned in the nomenclature of the item of work or not.The detail given in the
specifications of the item is binding.

obviously, the controversy has arising due to the discussion revolving around the nomenclature
of the item rather than the details given in the specification refer to against the item in question.

consider the matter in the light of the above establish principles, I hold the view that no
separate payment for dressing of earth work is admissible and that it is included in the rate of
the item referred to in the schedule of rates.Separate item for dressing of earthwork in the
schedule of rate should be for used where dressing only of an existing / old embankment is
required.

Highway department is the major executing agency for the road work which invariably involve
earthwork embankmentsThe Highway department has not been making separate payment for
dressing of earthwork.

5.8 Revision of estimates (rescinding of the contract):

It has been observed that the estimate are being revised by the engineering department
of the schemes already approved by some contacts and allocating those work at Higher rates to
the contractor without any justification at the cost of extra burden to the government.It is
therefore common decided that before processing such estimates, the engineering department
concerned, should record the following certificate at the estimates
● Action under class 3C of agreement was not possible as there were no dues of the firm
and any of its partner in the department for effecting recovery.
● the firm or any of its partner to home the work has now been allotted, or in no way
connected to the previous firm
● the contractor who could not fulfill his Contractual obligations which resulted in the
rescinding of agreement, has been removed from the approved list of the department in
accordance with the conditions laid down in the enlistment letter.
The tendency of revision of estimates should be discouraged add the above instructions may be
complied with in letter and spirit.
Government of the Punjab, finance department
NoFD(D-II)3(5)&I Vol-II Dated 06/02/1990