KERALA INFRASTRUCTURE INVESTMENT FUND BOARD (4 Statutory Body under Finance Department, Government of Kerala) Inspection Authority (Technical) website: www kif. heralagowin Defining the Futtre No. CPE/2421/2018/KIIFB Dated.12/05/2022 CIRCULAR Sub: Contract Deviations and Variations in KIIKB projects-Guidelines issued by of Inspection Authority. Ref: 1) G.O(P) No. 167/2021/Fin dated 08/12/2021 2) Order No. CPE/2421/2018/KHEB Dated 29/10/2018 3) Order No. CPE/2421/2018/KIIFB Dated 15/11/2019 4) Order No, CPE/214/2018/KIIFB dated. 24/11/2021 5) G.O No. 69/2018/Fin dated 24/02/2018 6) Order No. INS-1/160/2017/KIIFB dated 22/12/2017 1. As per section 17 A of the Kerala Infrastructure Investment Fund Act 1999 as amended vide the Kerala Infrastructure Investment Fund (Amendment) Act, 2016, Inspection authority in KIIFB is empowered to conduct examination of works being carried out by SPV"s. As per KIIFB scheme notified vide ref{1), all the projects considered for appraisal and financial sanction shall be monitored by Inspection Authority in accordance with powers of Inspection ‘Authority as per section 17A of the Act, Inspection Authority shall look into the administrative ‘and technical aspects of the projects by monitoring the implementation status, physical progress, quality of works, procedural aspects to be followed in public works and adherence to the standards and processes stipulated by KIIFB with a value for money perspective. ‘As per Clause 12 of tripartite agreement, Inspection Authority is empowered to monitor, review the implementation of the projects and inspect the project or documents pertaining to the projects being carried out by SPV's. If any irregularity is observed, Inspection Authority shall initiate corrective action. Special Purpose Vehicles are also bound to comply the corrective actions in technical and procedural aspects ordered by the Inspection authority after taking necessary approvals from the Competent Authority, 2 Floor, Felcty Square, M6.ad, Statue Thiravananthapuran ~ 695001 Phone: O71-2781000 ema tv ihe3. As per the order referred (2) above, SPV shall anticipate the deviation in advance, prior to achievement of 10% of physical progress of the work based on the soil investigation, GFC drawings, design variations ete and the variation/ deviation proposal has to be prepared at that stage itself and approved by the TS Committee. As per the order referred (3) above, clarifications were issued regarding variation and deviation in various scenario, As per this, for variations ice. if there is no change in scope of work and no upward change in PAC, SPVs need not to wait for the approval from KIIFB is essential and may continue the work and after intimate the same to KIIFB, For contract Deviations i.e. any change in scope of work and upward change in PAC, SPV shall submit the deviation proposal with the recommendation of ‘Technical Sanction Authority to KILFB and after getting an in-principle approval from KIIFB for proceeding with work the deviated quantities and extra/substituted items of work shall be paid to the contractor after executing supplementary agreement, if required, as per contract conditions, limiting the total payable amount with in the contract amount. 4. As per the order referred (4) above, direction has been issued to all SPVs to intimate quantity variation to the Chief Project Examiner of Inspection Authority through K-TIMS to facil tate field inspections by the officers from inspection authority and to take corrective actions proactively. 5. As per the order referred (5) above, The Inspection Authority in KIIFB has to. monitor the execution of the project at various stages and its variations from agreed scope, design, timelines, cost, quality, contract ete. As per the order referred (6) above, the scope of technical examination includes variation, deviation ete. in the items and quantities. 6. InContinuation to the above proceedings ref (2), (3) &(4), following guidelines are also issued for i tation of variation quantities through K-TIMS. Prior to execution of any quantity variation in any Contracts, all SPV shall submit “Quantity Variation Intimation” for Contracts having any of the following condition: a, Any item-wise quantity variations beyond 25% of the agreement quantity. . Any item wise quantity variation leading to a variation of more than 1% of the contract, amount. ¢. Any item wise quantity variation leading to variation of contract amount exceeding 25 lakhs. ‘These intimations are to be submitted to the Chief Project Examiner of Inspection Authority through KIIFB- Technical Inspection Monitoring System (K-TIMS) to facilitate field inspections by the officers from inspection authority.iii. vi. vii. Vili. To, Even though the above guidelines are in force, on many occasions it is noted that SPV are not following the directions contained in these proceedings, which affects the examination of projects by Inspection Authority. In view of this, following guidelines are also issued to streamline the variation/deviation management of all Contracts and for strict compliance to the orders and guidelines issued. SPV may execute any variation in the quantities in items from agreed quantity with the prior approval of Technical Sanction authority of SPV only. ij. ‘The intimation through K-TIMS shall be attached with the documentary evidence of the approval of TS Authority for execution of variations reported as per 6(a), (b) & (c).. Any variation item with increase in Contract Value or with a seope change shall be executed only with prior approval/ in principle approval from competent authority in KIIFB only. ‘SPV shall process all anticipated variation/deviation prior to the achievement of 10% financial progress as reported in PMAS. SPV shall ensure timely reporting of quantity variation through KTIMS and any quantity variation without intimation through KTIMS for consideration by KIFB for approval. SPV shall submit the variation/deviation proposal with all required documents including all approved working drawings/ approved PED. The proposals submitted to KIIFB shall include all necessary documents/drawings and approved PED. ‘The variation/deviation proposal submitted to KIIFB shall be complete covering all appendixes/sections of the BOQ. Appropriate action shall be taken by SPVs for complying the above directions and strict instructions shall be issued to concemed technical personnel to ensure compliance to the directions issued, (SJ Vijayadas) Chief Project Examiner Technical Inspection Wing Inspection Authority 1. The ACS/ Principal Secretary/ Secretary 2. All department heads of SPVs 3. The Executive Director, Project Appraisal Division, KIIFB 4. Special Secretary, Inspection Authority, KIIFB 5. Joint Fund Manager, KHEB 6. The stock file/ Office copy.