Administrative Delays

during Post award Activities

PC: Saksham
Co Ordinator: MC Sharma

Madhur S. Bara
Mahima Sharma
Kishor Kunal Singh
Manish Khandelwal
Inroduction

 SRM targeted for Pre award Activities and

successfully bring down the Project Award Cycle and
to a greater extent the Lead Time.
 However Major Concern ;- Post Award Activities
Over View
Post Award Activites- Administrative Delays
Contracts- Deviations
Departure from agreed Terms & conditions of the Contract

Reasons of Deviations
Possible Deviations
Variation During Post Award Execution of Work
Possible Deviations

 Extension in Completion Period

– Time Extensions with or Without Applicability of
LD
– Delays attributable to Agencies or Not
– Provisional Time Extensions
Deviation-
Procedure for Approval

 Technical Approval
– Clause 11.1 Section 1
– Clause 8.1 Section 2

 Administrative Approval
Technical Approvals
Common Observations

– Gross & Net Basis

 Technical Approval are to be accorded on Gross Basis
As per BOQ As per Execution. Variation (Gross) Variation (Net)
SN
Unit Qty. Rate Amount. Qty. Amount. Qty. Amt. Qty. Amt.
                     
1 km 100 1.00 100.00 120.00 120.00 20.00 20.00 20.00 20.00
2 m2 100 1.00 100.00 70.00 70.00 -30.00 30.00 -30.00 -30.00
    Total Amount:- 200.00   190.00   50.00   -10.00
                25.00%   -5.00%

–IncorrectRepresentations of Variation Figures

–Inappropriate selection of CA
Deviations;-
Common Observations

– Point of reference for Variation

 Always from the awarded Value
(irrespective of earlier no of Amendments)
As per BOQ Amdt-01 As per Execution. Gross Variation
SN
Unit Qty. Rate Amount. Qty. Amount. Qty. Amount. Qty. Amt.
                     
1 km 100 1.00 100.00 120.00 120.00 150.00 150.00 30.00 30.00
2 m2 100 1.00 100.00 90.00 90.00 100.00 100.00 10.00 10.00
    Total Amount:- 200.00   210    250.00   40.00
                    19.04%

As per BOQ Amdt-01 As per Execution. Gross Variation

SN
Unit Qty. Rate Amount. Qty. Amount. Qty. Amount. Qty. Amt.
                     
1 km 100 1.00 100.00 120.00 120.00 150.00 150.00 50.00 50.00
2 m2 100 1.00 100.00 90.00 90.00 100.00 100.00 0.00 0.00
    Total Amount:- 200.00    210   250.00   50.00
                    25.00%
 As per BOQ Amdt-01 Final Amdt/ Proposal
• Interim Deviation: the neg   Variation
SN
Net
Unit Qty. Rate Amount. Qty. Amount.     Qty. Amount.
variation
                     
1 km 100 1.00 100.00 125.00 125.00 25.00 125.00 125.00 25.00 25.00
2 m2 100 1.00 100.00 80.00 80.00 -20.00 100.00 100.00 0.00 0.00
    Total Amount:- 200.00   205.00 5.00   225.00   25.00

As per BOQ Amdt-01 Final Amdt/ Proposal

  Gross Variation
SN
Gross
Unit Qty. Rate Amount. Qty. Amount.     Qty. Amount.
Variation
                     
1 km 100 1.00 100.00 125.00 125.00 25.00 125.00 125.00 25.00 25.00
2 m2• Negative
100 1.00Quantities
100.00 may be 80.00
80.00 dealt during
20.00 Final Deviation 0.00
100.00 100.00 0.00
    Total Amount:- 200.00   205.00 45.00   225.00   25.00
• EIC Prudence is required
 – Right Approving Authority
 Approval Powers are on Aggregate basis including
approvals at lower levels
 All history of earlier Amendments
Deviation
Dop Amdt-3 of
Award value
Clause Current Variation Approving
Proposal Total in % Authority

8.1 a) 5,000,000.00
250,000.00 250,000.00 5% E6

Dop Variation Variation Deviation Amdt-

Award value
Clause Amdt-01 Amdt-02 3 of Current Variation Approving
Proposal Total in % Authority

8.1 a) 5,000,000.00
500,000.00 250,000.00 250,000.00 1,000,000.00 20% GM
Common Observations pertaining
to Quantity deviation

– Technical approval required before Processing

the Administrative Approval.
– Finance Routing is not Required in Technical
Approvals
– All pages must be signed (Note Sheets as well as
Deviation Statement)
– Beyond Variation limit
 Rate Reasonability
 Party request letter/acceptance
Common Observations pertaining
to Time Extensions

– Time Extensions
Provisional extension in time
- without prejudice to right to levy of LD.
Final Time Extension
– Delay Analysis is required
– LD applicability
– Certificate of completion of all facilities/work
– Finance Routing not required in request cum Note sheet
of EIC
Other post award modifications
Technical Approval

 On Gross Basis
 Comparison with awarded Value
 Appropriate DOP Clause
 For Beyond Variation Limit
– Market Analysis/ Engg. Estimate
– Request from Agency/acceptance
Time Deviations

 Provisional &final
– Reason for Delay
– Detailed Delay analysis
– Consent of Party/Request letter
Suggestions

 Format for Calculation

 Format for Note sheet
– Format Technical Approval
– Format – Time Extension
– Format – Provisional time Extension
 GCC O&M Deviation range is -100% to
+20%
Purchase - Post Award Overview

 Purchase Cases
– Automatic Closures
 Variation ± 5%
 For deviations if any No Technical Approval required
Only Administrative Approval required
 Responsibility as EIC lies with Purchase
Executives only.
Purchase - Post Award Overview

– Point of Inter Departmental Co-ordination

 QP Approval
 Inspection
– PDI
– Site Inspection
 Receipt of Material
 Processing for release of Payment.
QP Approval

 Based on RQP Vendor’s Quality Plan

Approval Required
 Role of FQA/Indentor Required;
– For regular nature of items, more and more QPs
can be Standardized and acceptance may be
sought along with the PO
Inspection & Road Permits

– Vendor’s facing problem while

 Raising Inspection Call
 Online Road Permit
– In house Initiative:
 Help documents for Inspection Call are being sent
along with PO to facilitate Agencies for raising
inspection call.
 Help Document in PPT format have been developed
and circulated among Agencies for generation of Online
Road Permits.
 Payment Related
– EFT Confirmations
– Initiatives ;- EFT form along with PO

 Inspection Delay
– Timely Inspections must be ensured
Benefits can be tapped

 Smooth Seamless processing of final closure

 Timely Payment to Vendors
 Vendor Satisfaction
 Time Saving for C&M as well as Indenting
Department