http://ppra.punjab.gov.

pk
GOVERNMENT OF THE PUNJAB
SERVICES AND GENERAL ADMINISTRATION
DEPARTMENT

Tel: 042-36284774 Dated Lahore, the 13th January, 2014

Fax: 042-36284776

NOTIFICATION

No.ADMN(PPRA)10-2/2013. In exercise of the powers conferred under

section 26 of the Punjab Procurement Regulatory Authority Act 2009
(VIII of 2009), Governor of the Punjab is pleased to make the following
rules:

1. Short title and commencement.– (1) These rules may be

cited as the Punjab Procurement Rules 2014.

(2) They shall come into force at once.

CHAPTER-I
GENERAL PROVISIONS

2. Definitions.–(1) In these rules:

(a) ‘Act’ means the Punjab Procurement Regulatory Authority

Act 2009 (VIII of 2009);

(b) `advertisement’ means an advertisement published in the

manner prescribed under rule 12;

(c) `applicant’ means a person or firm who seek to be enlisted

or to be prequalified or to be shortlisted in response to the
advertisement given by the procuring agency;

(d) ‘associate’ means any agency or person with whom the

consultant associates in order to provide any part of the
services;

(e) ‘Authority’ means the Punjab Procurement Regulatory

Authority;

(f) ‘bid’ means a tender or an offer, in response to an invitation,

by a person, consultant, firm, company or an organization

1
 expressing his or its willingness to undertake a specified
task at a price;

(g) ‘biding document’ means a document or a set of documents

prescribing the quantity, quality, characteristics, conditions
and procedures of the transactions prior to the actual
procurement and on the basis of which bidders prepare their
bids;

(h) ‘bid security’ means the bank guarantee or other form of

security submitted by a bidder together with a bid to secure
the obligations of the bidder participating in a bidding
proceedings;

(i) ‘competitive bidding’ means a procedure leading to the

award of a contract whereby all the interested persons,
firms, companies or organizations may bid for the contract;

(j) ‘competent authority’ means the head of the procuring

agency or any other officer authorized to act as competent
authority;

(k) ‘completion date’ means the date of completion of the

procurement certified by the procuring agency;

(l) ‘consultant’ means a person or firm who or which is qualified

by appropriate education and relevant experience for
provision of consultancy services;

(m) ‘consultancy services’ means services requiring adequate

technical expertise and financial capability in undertaking
specific assignment or project and may be of an intellectual
nature and differ from the other types of services directly
connected with the procurement of goods and works in
which the physical component of the activity is the main
function and often involves equipment intensive
assignments and may include:

(i) advisory and review services;

2
 (ii) pre-investment or feasibility studies;

(iii) construction supervision;

(iv) management and related services, and

(v) other technical services or special studies;

(vi) design; and

(vii) surveys and investigations;

(n) ‘contract’ means the agreement proposed to be entered into

between the procuring agency and the successful bidder;

(o) ‘contractor’ means a person, firm, company or an

organization who or which undertakes to supply goods,
services or works and includes a consultant;
1
[(p) **********************************************]

(q) ‘emergency’ means natural calamity, disaster, accident,

war and operational emergency which may give rise to
abnormal situation requiring prompt and immediate action
to limit or avoid damage to person, property or the
environment;

(r) ‘evaluation committee’ means a committee constituted by

the procuring agency to evaluate tender or proposal to
ascertain whether the bid’s proposal or tender correspond
to the evaluation criteria formulated by the procuring
agency;

(s) ‘evaluation report’ means the report prepared after the

evaluation of tenders, quotations, expression of interest, or
proposal;
2
[(sa)‘framework contract’ means a contract whereby the
procurement is made for a certain volume or quantity of a
particular good, a set of goods, services or works over a

1
clause (p) omitted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016
2
Inserted vide Notification No.ADMN(PPRA)10-2/2014 dated 11.03.2014
3
 specific period against an agreed sum or rate per item or
lump sum.]

(t) ‘Government’ means Government of the Punjab;

3[(u) ‘large consultancy’ means a consultancy where the cost of
consultancy exceeds two million rupees for individual
consultant and five million rupees for consulting firms and
the duration of large consultancy for an individual
consultant shall not exceed twelve months];

(v) lowest evaluated bid means:

(i) a bid most closely conforming to evaluation criteria

and other conditions specified in the bidding
document; and

(ii) having lowest evaluated cost;

(w) ‘performance guarantee’ means the bank guarantee or

other form of security submitted by the contractor to secure
obligations under the contract in accordance with the
requirement in the bidding document;

(x) ‘pre-qualification’ means a procedure for demonstrating

qualification as a pre-condition for being invited to tender;

(y) ‘proposal’ means the technical proposal or the financial

proposal submitted by a bidder;

(z) ‘repeat orders’ means procurement of the same commodity

from the same source;

(aa) ‘responsive’ means qualified for consideration on the basis

of declared evaluation criteria and specified in the bid
document or in the request for proposal;
4[(ab) ‘short consultancy’ means consultancy where the cost of
consultancy does not exceed two million rupees for

3
in clause (u) the word “one” substituted with the word “two” vide Notification No.S.O(Cabinet-I)2-
9/2015 dated 06.01.2016
4
in clause (ab) The words “exceeds one” substituted with the words “exceed two” vide Notification
No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016
4
 individual consultant and five million rupees for consulting
firms and duration of the short consultancies for an
individual consultants shall not exceed six months];

(ac) ‘supplier’ means a person, firm, company or an organization

who or which undertakes to supply goods, services or
works;

(ad) ‘urgency’ means a limited timeline for the accomplishment

of procurement which cannot be met through open and
limited bidding method; and

(ae) ‘value for money’ means the best returns for each rupee
spent in terms of quality, timeliness, reliability, after sales
service, up-grade ability, price, source, and the combination
of whole-life cost and quality to meet the procuring agency’s
requirements.

(2) The expression used but not defined in these rules shall
have the same meanings as is assigned to it in the Act.
5[3. Scope and applicability.– Save as otherwise provided, these
rules shall apply to all public procurements made by all procuring
agencies whether within or outside the Punjab].

4. Principles of procurements.– A procuring agency, while

making any procurement, shall ensure that the procurement is made in
a fair and transparent manner, the object of procurement brings value
for money to the procuring agency and the procurement process is
efficient and economical.

5. International commitments of the Government.– If any

provision of these rules is in conflict with any obligation or commitment
of the Government arising out of an international agreement with a
state or states, or any international financial institution, the provisions
of such international agreement, to the extent of conflict, shall prevail.

5
The word “public” inserted before the word “procurements” vide Notification No.S.O(Cabinet-I)2-
9/2015 dated 06.01.2016.
5
6. Language.–(1) Subject to sub-rule (2), all communication and
documentation relating to procurements of the Government shall either
be in Urdu or English or both.

(2) When any procurement is required to be made from any

state outside Pakistan, the language of that state may also be used in
addition to Urdu or English but the original documentation for purposes
of record, even in that case, shall be in Urdu or English and the
translation in such other language may be used for any other purpose.

(3) In case of conflict, the original documentation on record

shall prevail.

7. Integrity pact.– Procurement exceeding the limit specified in

the regulations shall be subject to an integrity pact between the
procuring agency and a contractor.

CHAPTER-II
PROCUREMENT PLANNING

8. Procurement planning.– A procuring agency shall, within one

month from the commencement of a financial year, devise annual
planning for all proposed procurements with the object of realistically
determining the requirements of the procuring agency, within its
available resources, delivery time or completion date and benefits that
are likely to accrue to the procuring agency in future.

9. Limitation on splitting of procurement.– Save as otherwise

provided and subject to the regulations, a procuring agency shall
announce in an appropriate manner all proposed procurements for each
financial year and shall proceed accordingly without any splitting or
regrouping of the procurements so planned.

(2) The procuring agency shall advertise in advance annual

requirements for procurement on the website of the Authority as well
as on its website.

6
10. Specifications.–(1) A procuring agency shall determine
specifications in a manner to allow the widest possible competition
which shall not favour any single contractor nor put others at a
disadvantage.

(2) The specifications shall be generic and shall not include

references to brand names, model numbers, catalogue numbers or
similar other classifications but if the procuring agency is satisfied that
the use of, or a reference to, a brand name or a catalogue number is
essential to complete an otherwise incomplete specification, such use
or reference shall be qualified with the words “or equivalent”.

(3) The provisions contained in sub-rules (1) and (2) shall not
apply to any procurement made by a procuring agency which is a public
sector commercial concern on the demand of a private sector client
specifying, in writing, a particular brand, model or classification of
equipment, machinery or other objects.

11. Approval mechanism.– All procuring agencies shall provide

clear authorization and delegation of powers for different categories of
procurement and shall initiate procurements after prior approval of the
competent authority.

CHAPTER-III
ADVERTISEMENT
6[12. Method of advertisement.– (1) Save as otherwise provided
in these rules, a procuring agency shall advertise procurement of more
than one hundred thousand rupees and up to the limit of two million
rupees on the website of the Authority in the manner and format
specified by regulations but if deemed in public interest, the procuring
agency may also advertise the procurement in at least one national daily
newspaper].

6
The expression “Subject to rule 59” substituted with the expression “Save as otherwise provided in these
rules” vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.

7
 (2) Subject to rule 13, any procurement exceeding two million
rupees shall be advertised on the website of the Authority, the website
of the procuring agency, if any, and in at least two national daily
newspapers of wide circulation, one in English and one in Urdu.

(4) A procuring agency shall ensure that the information posted

on the website is complete for purposes for which it has been posted,
and such information shall remain available on that website until the
closing date for the submission of bids.

13. Exceptions.– The requirement of advertisement mentioned in

rule 12, may be dispensed with after prior approval of the Authority in
the following cases:

(a) the proposed procurement pertains to national security and

its publication may jeopardize or compromise the objectives
of national security; and

(b) the publication of advertisement or notice of the proposed

procurement involves disclosure of information which is
proprietary in nature or falls within the definition of
intellectual property which is available from a single source.

14. Response time.– (1) The procuring agency may decide the
response time for receipt of bids or proposals (including proposals for
prequalification) from the date of publication of an advertisement or
notice keeping in view the complexity of the procurement, availability
and urgency but, in no circumstances, the response time shall be less
than fifteen days for national competitive bidding and thirty days for
international competitive bidding from the date of publication of
advertisement or notice.

(2) All advertisements or notices shall expressly mention the

response time allowed for the procurement along with the information
for collection of bid documents which shall be issued till a given date,
allowing sufficient time to complete and submit the bid by the closing
date but the time limit shall not apply in case of an emergency
procurement.
8
 (3) The response time shall be calculated from the date of
publication of the advertisement in a newspaper or on the website,
whichever is later.
7[15. Framework contract.–(1) A procuring agency may procure
goods, services or works through framework contract in order to ensure
uniformity in the procurement].

(2) The procuring agency shall adopt any of the methods of

procurement mentioned in these rules for purposes of entering into a
framework contract.

CHAPTER-IV
PREQUALIFICATION, QUALIFICATION AND
DISQUALIFICATION

16. Prequalification.– (1) Subject to sub-rule (2), a procuring

agency may, prior to floating the tenders or invitation to proposals or
offers, engage in prequalification of bidders in case of services, civil
works, turnkey projects and also in case of procurement of expensive
and technically complex equipment to ensure that only technically and
financially capable firms or persons having adequate managerial
capacity are invited to submit bids.

(2) The procuring agency shall prequalify bidders under sub-rule (1)
in case of procurement of goods of one hundred million rupees and
above and large consultancy, except where a procuring agency, for
reasons to be recorded in writing, dispenses with the requirement of
prequalification of bidders.

(3) For purposes of the prequalification of bidders, a procuring agency

shall take into consideration the following factors:

(a) qualifications;

(b) relevant experience and past performance;

7
Substituted vide Notification No. ADMN(PPRA)10-2/2014 dated 11.03.2014

9
 (c) capabilities with respect to personnel, equipment, and
plant;

(d) financial position;

(e) appropriate managerial capability; and

(f) any other factor that a procuring agency may deem

relevant, not being inconsistent with these rules.

(4) The procuring agency shall ensure that the prequalification

is based on the capacity of the interested parties to satisfactorily
perform the services or works.

(5) In case of fast track projects where the time is the essence
or where potential consultants are limited or the assignment is of a
complex nature, the procuring agency may, after recording reasons and
with the approval of Provincial Development Working Party, invite a
request for proposals through public notice under
rule 12.
8[(6) Notwithstanding anything contained in sub-rules (1) and
(2), Planning and Development Department of the Government may
shortlist the individual consultants, firms or companies involving legal,
financial and technical expertise].
9[(7) A procuring agency may, at the time of prequalification
process consider any of the individual consultants, firms or companies
shortlisted under sub-rule (6), after conducting the due evaluation
process (technical or financial), in case where:

(a) procuring agency lacks capacity of

prequalification process;
(b) sufficient time to take up the process of
prequalification is not available; and
(c) expertise acquired by individual consultant,
firms or companies shortlisted under sub-rule

8
Inserted vide Notification No. ADMN(PPRA)10-2/2014 dated 14.10.2014
9
Inserted vide Notification No. ADMN(PPRA)10-2/2014 dated 14.10.2014
10
 (6) in line with the requirements of the
procuring agency].
10[(8) Planning and Development Department of the
Government shall:

(a) before shortlisting process, in consultation with

the key line departments, determine the
parameters and selection criteria for
shortlisting of individual consultants, firms or
companies to be considered as consultant;
(b) shortlist all such individual consultants, firms or
companies only for one financial year through
its notified committee strictly in accordance
with the procedure provided under these rules;
(c) shortlist atleast three individual consultants,
firms or companies for each area of expertise;
(d) upload the list of such shortlisted individual
consultants, firms or companies on the website
of Punjab Procurement Regulatory Authority
and Planning and Development Department of
the Government for the consumption of public
sector organizations; and
(e) circulate the list to all the public sector
organizations].
11[(9) A procuring agency intending to use the facility of
shortlisted individual consultants, firms or companies, while taking up
the process of procurement, shall invite technical or financial bids from
all such shortlisted individual consultants, firms or companies as per
requirement of the procuring agency].

10
Inserted vide Notification No. ADMN(PPRA)10-2/2014 dated 14.10.2014
11
Inserted vide Notification No. ADMN(PPRA)10-2/2014 dated 14.10.2014
11
 12[(10) A procuring agency may select a consultant under this
rule and where this rule is silent about any selection process, it shall
adopt the selection process of a consultant provided in other rules].
13[(11) Notwithstanding anything contained in these rules,
the Government, on the recommendations of the Authority, may by
notification direct that the organizations pre-qualified by an
administrative department for the procurement mentioned in the
notification, may be espoused by a procuring agency under the
administrative control of that department or by such other department
or procuring agency as mentioned in the notification];

17. Prequalification process.– (1) The procuring agency engaging

in prequalification shall announce, in the prequalification documents, all
information required for prequalification including instructions for
preparation and submission of the prequalification documents,
evaluation criteria, list of documentary evidence required by contractors
to demonstrate their respective qualifications and any other information
that the procuring agency deems necessary for prequalification.

(2) The procuring agency shall provide a set of prequalification

documents to any contractor, on request and subject to payment of
such price as the procuring agency may determine to defray the cost
on account of printing and provision of the document.

(3) The procuring agency shall promptly inform the contractor

who has applied for the prequalification whether or not he has been
prequalified and shall, on request from the applicant who had applied
for prequalification, a list of contractors who have been prequalified.

(4) On a request, the procuring agency shall communicate to

the contractor who has not been prequalified the reasons for not
prequalifying the contractor.

12
Inserted vide Notification No. ADMN(PPRA)10-2/2014 dated 14.10.2014
13
in rule 16 after sub rule (10) the new sub rule (11) inserted vide Notification No. S.O(Cab-I)2-9/2015
dated 02.02.2017
12
 (5) Only the prequalified contractors shall be entitled to
participate in the subsequent procurement proceedings.

18. Qualification.– A procuring agency, at any stage of the

procurement proceedings, having credible reasons for, or prima facie
evidence of, any defect in the capacity or otherwise of a contractor,
whether or not prequalified, may require the contractor to provide such
further information concerning the professional, technical, financial,
legal or managerial competence as the procuring agency may decide.

19. Disqualification.– The procuring agency shall disqualify a

contractor on the ground that he had provided false, fabricated or
materially incorrect information.

20. Declaration of ineligibility.– (1) Subject to rule 21, the

procuring agency may, after providing an opportunity of hearing,
declare, through a notification, an applicant for prequalification as
ineligible for participating in any public procurement process for such
period as it may determine on account of his engaging, directly or
through an agent, in 14[corrupt practice].

(2) A copy of the notification shall be provided to the affected

person and to the Authority.
15[21. Blacklisting.–(1) A procuring agency may, for a specified
period, debar a bidder or contractor from participating in any public
procurement process of the procuring agency, if the bidder or contractor
has:

(a) acted in a manner detrimental to the public interest or

good practices;

(b) consistently failed to perform his obligation under the

contract;

(c) not performed the contract up to the mark; or

14
The words “corrupt or fraudulent practice” substituted with the word “corrupt practice” vide Notification
No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.
15
for rule 21 the above shall be substituted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.

13
 (d) indulged in any corrupt practice.

(2) If a procuring agency debars a bidder or contractor under sub-

rule (1), the procuring agency:

(a) shall forward the decision to the Authority for publication

on the website of the Authority; and

(b) may request the Authority to debar the bidder or

contractor for procurement of all procuring agencies.

(3) The Managing Director may debar a bidder or contractor of

any procuring agency from participating in any public procurement
process of all or some of the procuring agencies for such period as the
Managing Director may determine.

(4) Any person aggrieved by a declaration made under rule 20 or

a decision under sub-rule (1) of this rule may, within thirty days from
the date of the publication of the information on the website of the
Authority, file a representation before the Managing Director and the
Managing Director may pass such order on the representation as he
may deem fit.

(5) Any person or procuring agency aggrieved by an order under

sub-rule (3) or (4) may, within thirty days of the order, file a
representation before the Chairperson and the Chairperson may pass
such order on the representation as he may deem appropriate.

(6) The mechanism or process for barring a bidder or contractor

from participating in procurement process of a procuring agency,
procuring agencies and a representation under this rule is specified in
the Schedule appended to these rules];

14
 CHAPTER-V

METHODS OF PROCUREMENT
16[22. Principal method of procurement.– Save as otherwise
provided hereinafter, the procuring agencies shall use open competitive
bidding or publication of request for tender as the principal method
of procurement for the procurement of goods, services and works].

23. Open competitive bidding.– Subject to rules 24 to 38, the

procuring agencies shall engage in open competitive bidding if the cost
of procurement is more than the prescribed financial limit.

24. Submission of bids.– (1) A bidder shall submit a bid in a sealed

package or packages in such manner that the contents of the bid are
fully enclosed and cannot be known until duly opened.

(2) A procuring agency shall specify the manner and method of

submission and receipt of bids in an unambiguous and clear manner in
the bidding documents.

25. Bidding documents.– (1) A procuring agency shall formulate

precise and unambiguous bidding documents that shall be made
available to the bidders immediately after the publication of the
invitation to bid.

(2) For competitive bidding, whether open or limited, the

bidding documents shall include the following:

(a) invitation to bid;

(b) instructions to bidders;

(c) form of bid;

(d) form of contract;

(e) general or special conditions of contract;

(f) specifications and drawings or performance criteria

(where applicable);

16
in rule 22 after words “open competitive bidding”, the words “or publication of request for tender”
inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.
15
 (g) list of goods or bill of quantities (where applicable);

(h) delivery time or completion schedule;

(i) qualification criteria (where applicable);

(j) bid evaluation criteria;

(k) format of all securities required (where applicable);

(l) details of standards (if any) that are to be used in

assessing the quality of goods, works or services
specified; and

(m) any other detail not inconsistent with these rules

that the procuring agency may deem necessary.

(3) Any information that becomes necessary for bidding or for

bid evaluation, after the invitation to bid or issue of the bidding
documents to the prospective bidders, shall be provided in a timely
manner and on equal opportunity basis.

(4) Where any change becomes essential in the procurement

process, such change shall be made in a manner similar to that of the
original advertisement.

(5) A procuring agency shall use standard bidding documents

as and when notified under the regulations.

(6) Until the standard bidding documents are specified under

the regulations, a procuring agency may use bidding documents already
in use of the procuring agency to the extent they are not inconsistent
with these rules.

(7) The procuring agency shall, on payment of such fee as the

procuring agency may determine keeping in view the cost of printing
and provision of the documents, provide a set of bidding documents to
the prospective bidders.

26. Reservations and preference.– (1) A procuring agency shall

allow all prospective bidders to participate in procuring procedure
without regard to nationality except in cases in which any procuring
agency decides to limit such participation to national bidders only or
16
prohibit participation of bidders of some nationalities in accordance with
the policy of the Government.

(2) A procuring agency shall allow for a preference to domestic

or national contractor in accordance with the policies of the Government
and the magnitude of price preference to be accorded shall be clearly
mentioned in the bidding documents under the bid evaluation criteria.
17[27. Bid security.– The procuring agency may require the bidders to
furnish a bid security not exceeding five per cent of the estimated
price.
Explanation.- In this rule, the words 'estimated price' mean the price
of procurement estimated by the procuring agency before initiation of
the process of procurement].
28. Bid validity.– (1) A procuring agency, keeping in view the nature
of the procurement, shall subject the bid to a bid validity period.

(2) The bids shall be valid for the period of time specified in the
bidding document.

(3) Subject to sub-rule (5), a procuring agency shall ordinarily

be under an obligation to process and evaluate the bids within the
stipulated bid validity period but, under exceptional circumstances and
for reasons to be recorded in writing, if an extension is considered
necessary, all the bidders shall be requested to extend their respective
bid validity period but such extension shall not be for more than the
original period of bid validity.

(4) A bidder who:

(a) agrees to the extension of the bid validity period shall

also extend the validity of the bid bond or security for
the extended period of the bid validity;

(b) agrees to the procuring agency’s request for

extension of bid validity period shall not be permitted
to change the substance of the bid; and

17
* rule 27 substituted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.
17
 (c) does not agree to an extension of the bid validity
period shall be allowed to withdraw the bid without
forfeiture of the bid bond or security.

(5) The competent authority of the procuring agency shall not

extend bid validity period without obtaining prior approval of the
authority next above the competent authority and if the chief executive
of an autonomous procuring agency is the competent authority then
next higher authority in such a case shall be the board, syndicate or any
other apex body of the procuring agency.

29. Extension of time for submission of bids.– If a procuring

agency considers that it is necessary in public interest to extend the last
date for the submission of the bids, it may, after recording reasons, do
so in the manner similar to the original advertisement.

CHAPTER-VI
OPENING, EVALUATION AND REJECTION OF BIDS

30. Opening of bids.– (1) The date for opening of bids and the last
date for the submission of bids shall be the same; and, bids shall be
opened at the time specified in the bidding documents which shall not
be less than thirty minutes after the closing time for the submission of
the bids.

(2) All bids shall be opened publicly in the presence of the

bidders or their representatives who may choose to be present, at the
time and place announced prior to the bidding and the procuring agency
shall read aloud the unit price as well as the bid amount and shall record
the minutes of the bid opening.

(3) All bidders in attendance at the time of opening of the bids

shall sign an attendance sheet.

(4) The bids submitted after the closing time prescribed shall
be rejected and returned without being opened.

18
18[31. Evaluation criteria.– (1) A procuring agency shall formulate
an appropriate evaluation criterion listing all the relevant information
against which a bid is to be evaluated and such evaluation criteria shall
form an integral part of the bidding documents.

(2) Failure to provide for an unambiguous evaluation criteria in

the bidding documents shall amount to mis-procurement.

(3) In simple or standard procurement process like open

competitive bidding or procurement through direct request for
tender, the procuring agency may use the amount of the bid
price as the sole evaluation criteria for the bids].

32. Evaluation of bids.– (1) All bids shall be evaluated in accordance

with the evaluation criteria and other terms and conditions set forth in
the prescribed bidding document.

(2) For purposes of comparison of the bids quoted in different

currencies, the price shall be converted into a single currency specified
in the bidding documents and the rate of exchange shall be the selling
rate, prevailing on the date of opening of bids specified in the bidding
documents, as notified by the State Bank of Pakistan on that day.

(3) A bid once opened in accordance with the prescribed

procedure shall be subject to only those rules, regulations and policies
that are in force at the time of issue of notice for invitation of bids.

33. Clarification of bids.– (1) No bidder shall be allowed to alter or

modify his bid after the closing time for the submission of the bids.

(2) The procuring agency may, if necessary after the opening

of the bids, seek and accept such clarifications of the bid as do not
change the substance of the bid.

(3) Any request for clarification in the bid, made by the

procuring agency and its response, shall invariably be in writing.

18
in rule 31, after sub rule (2) the sub rule (3) inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated
06.01.2016.
19
34. Discriminatory and difficult conditions.– Save as otherwise
provided, no procuring agency shall introduce any condition, which
discriminates between bidders or which is difficult to meet.

Explanation.- In ascertaining the discriminatory or difficult nature of

any condition, reference shall be made to the ordinary practices of that
trade, manufacturing, construction business or service to which that
particular procurement is related.

35. Rejection of bids.– (1) The procuring agency may reject all bids
or proposals at any time prior to the acceptance of a bid or proposal.

(2) The procuring agency shall upon request communicate to

any bidder, the grounds for its rejection of all bids or proposals, but
shall not be required to justify those grounds.

(3) The procuring agency shall incur no liability, solely by virtue

of its invoking sub-rule (1) towards the bidders.

(4) The bidders shall be promptly informed about the rejection

of the bids, if any.
19[(5) A procuring agency may, for reasons to be recorded
in writing, restart bidding process from any prior stage if it is
possible without violating any principle of procurement
contained in rule 4 and shall immediately communicate the
decision to the bidders].

36. Re-bidding.– If the procuring agency rejects all the bids under
rule 35, it may proceed with the process of fresh bidding but before
doing that it shall assess the reasons for rejection and may, if
necessary, revise specifications, evaluation criteria or any other
condition for bidders.

19
in rule 35, after sub rule (4) the sub rule (5) inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated
06.01.2016.
20
20[36A. One person one bid.- (1) In any procurement, one person
may submit one bid and if one person submits more than one bids, the
procuring agency shall reject all such bids.

(2) If a consortium of persons has submitted a bid in any

procurement, it shall be construed that each member of the consortium
submitted the bid].

37. Announcement of evaluation reports.– A procuring agency

shall announce the results of bid evaluation in the form of a report giving
justification for acceptance or rejection of bids at least ten days prior to
the award of procurement contract.

38. Procedures for selection of contractors.– (1) Save as

otherwise provided in these rules, single stage one envelope bidding
procedure shall ordinarily be the main open competitive bidding
procedure used for the procurement of works and standard goods.

(2) Other appropriate procedures for selection of contractors

other than consultants may be adopted in the following circumstances:

(a) single stage two envelopes bidding procedure shall be

used for procurement of such goods where the bids
are to be evaluated on technical and financial grounds
and the procedure for single stage two envelopes
shall be:

(i) the bid shall be a single package consisting of

two separate envelopes, containing separately
the financial and the technical proposals;

(ii) the envelopes shall be marked as “Financial

Proposal” and “Technical Proposal”;

(iii) in the first instance, the “Technical Proposal”

shall be opened and the envelope marked as

20
after sub rule 36, rule 36A inserted vide Notification No. S.O(Cabinet-I)2-9/2015 dated 06.01.2016.

21
 “Financial Proposal” shall be retained unopened
in the custody of the procuring agency;

(iv) the procuring agency shall evaluate the

technical proposal in the manner prescribed in
advance, without reference to the price and
shall reject any proposal which does not
conform to the specified requirements;

(v) during the technical evaluation no amendments

in the technical proposal shall be permitted;

(vi) after the evaluation and approval of the

technical proposals, the procuring agency shall
open the financial proposals of the technically
accepted bids, publically at a time, date and
venue announced and communicated to the
bidders in advance, within the bid validity
period;
21[(vii) the financial proposal of the bids found
technically non-responsive shall be retained
unopened and shall be returned on the expiry
of the grievance period or the decision of the
complaint, if any, filed by the non-responsive
bidder, whichever is later:

provided that the procuring agency may return

the sealed financial proposal earlier if the
disqualified or non-responsive bidder,
contractor or consultant submits an affidavit,
through an authorized representative, to the
effect that he is satisfied with the proceedings
of the procuring agency]; and

21
in rule 38, in sub-rule (2), in clause (a), for sub-clause (vii), substituted vide Notification No. S.O(CAB-
I)2-9/2015 dated 23.11.2017, published in the Punjab Gazette (Extraordinary), dated 30.11.2017.
22
 (viii) the lowest evaluated bidder shall be awarded
the contract;

(b) two stage bidding procedure may be adopted in large

and complex contracts where technically unequal
proposals are likely to be encountered or where the
procuring agency is aware of its options in the market
but, for a given set of performance requirements,
there are two or more equally acceptable technical
solutions available to the procuring agency and the
bidding procedure shall be:

First stage

(i) in the first instance, the bidders shall submit,

according to the required specifications, a
technical proposal without quoting price;

(ii) the technical proposal shall be evaluated in

accordance with the specified evaluation criteria
and may be discussed with the bidders
regarding any deficiencies and unsatisfactory
technical features;

(iii) after such discussions, all the bidders shall be

permitted to revise their respective technical
proposals to meet the requirements of the
procuring agency;

(iv) the procuring agency may revise or modify any

aspect of the technical requirements or
evaluation criteria, or it may add new
requirements or criteria not inconsistent with
these rules but any revisions or modifications
shall be communicated to all the bidders at the
time of invitation to submit final bids, and
sufficient time shall be allowed to the bidders to
prepare their revised bids but such time shall
23
 not be less than fifteen days in the case of
national competitive bidding and thirty days in
case of international competitive bidding;

(v) the bidders unwilling to conform their

respective bids to the procuring agency’s
technical requirements may withdraw from the
bidding without forfeiture of their bid security;

Second stage

(i) the bidders, whose technical proposals or bids

have not been rejected and who are willing to
conform their bids to the revised technical
requirements of the procuring agency, may
submit a revised technical proposal along with
the financial proposal;

(ii) the fresh and revised technical proposals and

the financial proposals shall be opened at a
time, date and venue announced and
communicated to the bidders in advance but in
setting the date for the submission of the
revised technical proposals and financial
proposals, a procuring agency shall allow
sufficient time to the bidders to incorporate the
agreed changes in the technical proposal and
prepare their financial proposals accordingly;
and

(iii) the revised technical proposal and the financial

proposal shall be evaluated in the manner
prescribed above and the lowest evaluated bid
shall be accepted;

(c) two stage two envelope bidding method shall be used

for procurement where alternative technical
proposals are possible, such as certain types of
24
machinery or equipment or manufacturing plant and
the procedure shall be:

First stage

(i) the bid shall comprise a single package

comprising two separate envelopes containing
the financial proposal and the technical
proposal;

(ii) the envelopes shall be marked as “Financial

Proposal” and “Technical Proposal”;

(iii) in the first instance, the envelope marked

“Technical Proposal” shall be opened and the
envelope marked as “Financial Proposal” shall
be retained unopened in the custody of the
procuring agency;

(iv) the technical proposals shall be discussed with

the bidders with reference to the procuring
agency’s technical requirements;

(v) those bidders willing to meet the requirements

of the procuring agency shall be allowed to
revise their technical proposals following these
discussions; and

(vi) bidders not willing to conform to the technical

proposal as per revised requirements of the
procuring agency shall be allowed to withdraw
their respective bids without forfeiture of their
bid security;

Second stage

(i) after agreement between the procuring agency

and the bidders on the technical requirements,
bidders who are willing to conform to the
revised technical specifications and whose bids

25
 have not already been rejected shall submit a
revised technical proposal and supplementary
financial proposal, according to the technical
requirement;

(ii) the revised technical proposal along with the

original financial proposal and supplementary
financial proposal shall be opened at a date,
time and venue announced in advance by the
procuring agency:

Provided that in setting the date for the

submission of the revised technical proposals
and supplementary price proposals a procuring
agency shall allow sufficient time to the bidders
to incorporate the agreed changes in the
technical proposal and to prepare the required
supplementary financial proposal; and

(iii) the procuring agency shall evaluate the whole

proposal in accordance with the evaluation
criteria and the lowest evaluated bid shall be
accepted.
22[38A. Notwithstanding anything contained in these rules, the
Government on the recommendations of the Authority, may be
notification direct that the procurements mentioned in the notification
may be made in the manner provided under rule 45 and in that case
the expression ‘consultant’ or ‘consultants’ in that rule shall be deemed
as ‘contractor’ or ‘contractors’ and the said rule shall be construed
accordingly].

22
after rule 38, new rule (38A) inserted vide Notification No. S.O(Cab-I)2-9/2015 dated 02.02.2017.
26
 CHAPTER-VII
PROCUREMENT OF CONSULTANCY SERVICES

39. Rights and obligations.– The rights and obligations of the

procuring agency and the consultant are governed by general and
special conditions of contract signed between the procuring agency and
the consultant.

40. Consultant Selection Committee.– Every procuring agency, for

the selection of consultant, except for short consultancies, shall set up
a Consultant Selection Committee of odd number members, which shall
consist of the following:

(a) head of the procuring agency who shall be its chairperson.

(b) a nominee of the Planning and Development Department, a

nominee of the Finance Department, as members; a
representative of the procuring agency, as a member
(secretary);

(c) the procuring agency may co-opt up to two members,

having adequate technical knowledge and experience in the
relevant field, for assistance in a given assignment that
requires technical input.

41. Quorum.- Three members, including the chairman of the

Consultant Selection Committee, shall form quorum for conducting the
business of the Consultant Selection Committee.

42. Decision by simple majority.- All decision of the Consultant

Selection Committee shall be made by majority of the members present
and voting.

43. Functions and responsibilities of Committee.- The

Consultant Selection Committee shall perform the following functions:

(a) short listing of consultants, responding to the expression of

interest, where applicable, in accordance with the criteria
mentioned in the expression of interest;

(b) approval of request for proposal before issuance;

27
 (c) evaluation of technical and financial proposals, according to
the selection method and evaluation criteria, mentioned in
the request for proposal, and in accordance with the
provisions of these rules; and

(d) finalization of recommendation for selection of consultants

based on evaluation criteria.

44. Selection of consultants.– Depending upon the selection

method, the procuring agency shall include, among others, the following
steps in the process of selection of a consultant:

(a) preparation and approval of the terms of reference of the

assignment;

(b) preparation of the cost estimate or budget of the

assignment;

(c) public advertisement of invitation of consultants’

expressions of interest and their short-listing;

(d) preparation and issuance of the request for proposal to the

shortlisted consultants;

(e) preparation and submission of proposals by the

consultants;

(f) evaluation of technical proposals; and

(g) opening and evaluation of financial proposals.

45. Methods for selection of consultants.- (1) A procuring agency

may utilize one of the methods mentioned in succeeding sub-rules for
selection of a consultant.

(2) Least Cost Selection: This is the preferred method for

selecting consultants for assignments of standard or routine nature such
as audit, simple engineering design or supervision of noncomplex
works, where the well-established practices and standards exist.

(3) Quality and Cost Based Selection: This method may be used
where:

28
 (a) quality is the prime consideration while cost is a
secondary consideration;

(b) terms of Reference are well defined;

(c) the financial proposals of only those technically

responsive bidders who obtained minimum sixty five
percent marks shall be opened;

(d) a combined evaluation of the technical and financial

proposals is carried out by weighting and adding the
quality and the cost scores;

(e) the weight for quality is normally of eighty percent with

twenty percent given to cost and more than twenty
percent weight to the cost of the services is

justified only in relatively routine and straightforward

assignments (such as design of simple structures),
whereas in no cases it should exceed thirty percent
and the consultant obtaining the highest combined
score is invited for negotiations;

(4) Quality Based Selection: This system may be used for highly
specialized, innovative and complex assignments, where quality is the
predominant factor.
23 [(5) Subject to sub-rule (6), a procuring agency may, in a
complex project, engage, through direct contracting, an organization
owned or controlled by the Government, the Federal Government or
any other Provincial Government with the prior approval of:

(a) Provincial Development Working Party (PDWP) of

Planning and Development Department in case of the
administrative departments or attached departments
or agencies of the Government]; and

23
in rule 45, for sub-rule (5), substituted vide Notification No. SO(CAB-I)2-9/2015, dated 30.08.2017,
published in the Punjab Gazette (Extraordinary), dated 13.09.2017.
29
 (b) PDWP and the governing body, by whatever name
called, in case of an autonomous body, company,
authority or institution.

(6) In case of engagement of an organization under sub-rule

(5), the procuring agency shall:

(a) record reasons in writing for direct contracting and

shall issue a certificate of reason-ability of the
negotiated price of consultancy based on the
principles of procurement contained in rule 4; and

(b) obtain approval of the Authority to the extent of

declaring the project as complex project.

(7) A procuring agency may, after recording reason in writing,

use any method for selection of consultant other than least cost
selection.

46. Selection process of individual consultant.- The following

shall be the selection process of individual consultant 24 [in a short
consultancy]:

(a) individual consultant may not be required to submit

proposals and shall be selected based on the
qualifications and experience for the assignment;

(b) individual consultant shall be selected by comparing

the qualifications and experience of at least three
consultants among those who have expressed
interest in the assignment or have been approached
directly by the procuring agency;

(c) individual consultant considered for the comparison of

qualifications and experience shall meet the minimum
relevant qualifications, and the one selected to be
employed by the procuring agency shall be the best

24
after the words “selection process of individual consultant” the words “in a short consultancy” inserted
vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.
30
 qualified and shall be fully capable of carrying out the
assignment;

(d) individual consultant may be selected on a single-

source basis (with due justification) in exceptional
cases such as an emergency situation resulting from
a natural disaster or where the individual is the only
consultant qualified for the assignment;

(e) for key assignments, interviews may be set up, if

required.
25[46A Selection process of firm of consultants: The following shall
be the selection process of a firm of consultants in a short consultancy
for purposes such as third party validation, bid evaluation, terms of
reference, preparation of documents relating to prequalification and
request for proposal, pre-shipment inspection, audit, simple
engineering design or supervision of non-complex work, where the cost
of consultancy does not exceed three million rupees:

(a) the firm shall be selected by considering at least three

quotations from renowned, registered and well reputed
firms on the basis of qualification and experience for the
assignment;

(b) the firm considered for the comparison of qualification and

experience shall meet the minimum relevant qualification
and the one selected to be employed by the procuring
agency shall be the best qualified and fully capable of
carrying out assignment; and

(c) the procuring agency may conduct interviews for the

selection of best option].

47. Expression of interest.- (1) A request for expression of interest

shall be advertised in accordance with the provisions of rule 12 and rule
13.

25
after rule 46 new rule (46A) inserted vide Notification No. S.O(Cab-I)2-9/2015 dated 02.03.2017
31
 (2) The expression of interest shall contain the following
information:

(a) the name and address of procuring agency;

(b) an appropriate description of the assignment

providing scope of the intellectual and professional
services required;

(c) closing date and place of the submission of the

expression of interest;

(d) criteria for short listing or prequalification where

required; and

(e) any other information that the procuring agency may

deem appropriate to disseminate at this stage.

48. Request for proposals.– (1) A procuring agency shall use a

request for proposal for seeking proposals from the shortlisted or
pre-qualified consultants which shall include the following:

(a) letter of invitation: the letter of invitation shall mention the

name and address of the procuring agency and its intention
to enter into a contract for provision of consulting services
and contain names of all the short listed firms;

(b) instruction to consultants: the instructions to consultants

shall contain all necessary information that may help them
prepare responsive proposals;

(c) terms of reference: the terms of reference shall

unambiguously define the objectives, goals and scope of the
assignment, core team of required experts, expected
deliverables with timelines and list of services necessary to
carry out the assignment;

(d) evaluation criteria: except as otherwise provided, the

evaluation of proposals shall be carried out giving due
consideration to quality and cost;

32
 (e) type of contract: a procuring agency, depending on the
circumstances, may use one of the following types of
contracts:

(i) lump sum contract shall be used mainly for

assignments in which the content, duration of the
services and the required output are unambiguously
defined;

(ii) time based contract shall be used when it is difficult

to define the scope and the length of services;

(iii) hourly or daily rates shall be used for small projects,

especially when the assignment is for less than a
month; and

(iv) any other, based on combination of the above and

including out of pocket expenses, where required;

(f) special provisions: a procuring agency may specify any

other requirement related to the assignment or contract,
where required.

(2) A procuring agency shall invite the prospective consultants

to submit their technical and financial proposals in separately sealed
envelopes and the procuring agency shall give deadline for submission
of proposals but the consultants shall be given adequate time to prepare
their proposals which shall not be less than two weeks.
26[49. *************************************************]

50. Evaluation of quality of consulting services.– Evaluation

criteria for technical evaluation of consultants shall include the
following:

(a) experience: the consultants specialized skills, working

on the similar assignment and access to particular
technologies related to the assignment;

26
rule 49 omitted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.
33
 (b) financial capability: financial capability of the
consultant may be evaluated with a view to ensuring
that the consultant can complete the assigned task in
a timely manner;

(c) approach and methodology: the methodology

proposed by the consultants shall be evaluated for its
innovativeness and soundness;

(d) quality management: the availability of a well-

established quality management system may be
taken into account for large and complex
assignments; and

(e) staff proposed: qualification and experience of the

proposed staff of the consultant in the relevant field.

51. Association of consultants.– (1) An association of consultants

may take either the form of a joint venture or a subcontract and such
association may participate in procurement process with the permission
of the procuring agency.

(2) Under a joint venture, all members, if awarded the contract,

shall individually sign and be jointly and severally liable for the entire
assignment and such an association may be known as a consortium,
association or joint venture.

52. Intellectual property rights.– (1) All documents, reports,

designs, research work and all deliverables prepared by the consultant
shall become and remain the property of the procuring agency.

(2) Any restrictions on the future use of these documents and

software by the consultant shall be specified in the conditions of the
contract.

53. Negotiations.– (1) Notwithstanding the provision under rule 57,

the procuring agency may negotiate with the highest ranked bidder for
consultancy regarding methodology, work plan, staffing, contract price
and special conditions of the contract.

34
 (2) In case of failure of negotiations, the procuring agency may
invite the next ranked bidder.

(3) A committee of the procuring agency shall negotiate with

the consultant and negotiation by a single person on behalf of the
procuring agency shall not be allowed.

54. Professional liability of consultant.– (1) The consultant

selected and awarded a contract shall be liable for consequence of
errors or omissions on the part of the consultant.

(2) The extent of liability of the consultant shall form part of

the contract and such liability shall not be less than remunerations nor
it shall be more than twice the remunerations.

(3) The procuring agency may demand insurance on part of the

consultant to cover the liability of the consultant and necessary costs
shall be borne by the consultant.

(4) The consultant shall be held liable for all losses or damages
suffered by the procuring agency on account of any misconduct by the
consultant in performing the consulting services.

CHAPTER-VIII
ACCEPTANCE OF BIDS AND AWARD OF CONTRACTS

55. Acceptance of bids.– Subject to these rules, the bidder with the
lowest evaluated bid, if not in conflict with any other law, shall be
awarded the procurement contract within the original or extended bid
validity period.
27 [55A. Single complying proposal.- Subject to rule 35, if one
complying bid is received, the procuring agency may award the contract
to the bidder].

56. Performance guarantee.– Where needed and clearly expressed

in the bidding documents, the procuring agency shall require the
successful bidder to furnish a performance guarantee which shall not
exceed ten percent of the contract amount.

27
after rule 55 rule 55A inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.
35
57. Limitation on negotiations.– (1) Save as otherwise provided in
these rules, a procuring agency shall not negotiate with any of the
bidders.

(2) In case of goods of highly technical nature, the procuring

agency shall ensure that the bidders submit the revised financial bids
immediately after opening of the financial bids in the same manner as
the earlier financial bids were submitted and the procuring agency shall
not allow extra time for submission of revised financial bids by the
bidders.

(3) In this rule, the expression ‘goods of highly technical nature’

means all goods including machinery, its parts and micro-components,
industrial, scientific or electronic equipment, plant and tools which are
sophisticated in nature costing more than fifty million rupees and
procured by adopting the two stages-two envelope procurement
procedures.

58. Confidentiality.– The procuring agency shall keep all

information regarding the bid evaluation confidential until the time of
the announcement of the evaluation report.

59. Alternative methods of procurements.– A procuring agency

may utilize the following alternative methods of procurement of goods,
services and works:

(a) petty purchases: a procuring agency may provide for petty

purchases where the object of the procurement is below the
financial limit of fifty thousand rupees and such procurement shall
be exempted from the requirements of bidding or quotation of
prices; the procuring agency shall, however, ensure that
procurement of petty purchases is in conformity with the
principles of procurement;

(b) petty purchases through quotation: a procuring agency may

provide for petty purchases through at least three quotations
where the cost of the procurement is more than fifty thousand
rupees but less than one hundred thousand rupees and such
36
 procurement shall be exempted from the requirements of bidding
procedures; the procuring agency shall, however, ensure that
such procurement is in conformity with the principles of
procurement;

(c) direct contracting: a procuring agency shall only engage in direct

contracting if any of the following conditions exist:

(i) the procurement concerns the acquisition of spare parts or

supplementary services from original manufacturer or
supplier when the same are not available from alternative
sources;

(ii) only one manufacturer or supplier exists for the required

procurement but in such a case, the procuring agency shall
specify the appropriate fora which may authorize
procurement of proprietary object after due diligence; and

(iii) where a change of supplier may result in acquisition of

material having different technical specifications or
characteristics that may cause incompatibility or
disproportionate technical difficulties in operation and
maintenance; and the contract does not exceed three years
in duration;

(iv) repeat orders not exceeding fifteen percent of the original

procurement;

(v) in case of an emergency but the procuring agency shall

specify appropriate fora vested with necessary authority to
declare an emergency;

(vi) when the price of goods, services or works is fixed by the

Government or any other authority, agency or body under
the law; and

(vii) for purchase of motor vehicle from local original

manufacturers or their authorized agents at manufacturer’s
price.

37
(d) negotiated tendering: a procuring agency may engage in
negotiated tendering with one or more contractors with or without
prior publication of a procurement notification but this procedure
shall only be used when:

(i) the supplies involved are manufactured purely for the

purpose of supporting a specific piece of research or an
experiment, a study or a particular development;

(ii) for technical or artistic reasons, or for reasons connected

with protection of exclusive rights or intellectual property,
the supplies may be manufactured or delivered only by a
particular supplier;

(iii) for reasons of extreme urgency brought about by events

unforeseeable by the procuring agency, the time limits laid
down for open and limited bidding methods cannot be met,
however, the circumstances invoked to justify extreme
urgency must not be attributable to the procuring agency;
and

(iv) the Provincial Cabinet, for reason to be recorded in writing,

approves any specific procurement to be made on urgent
basis and shall fix the time for such urgency.

60. Unsolicited proposal.– In case of unsolicited proposal received

for any engineering, procurement and construction project involving
cost of one thousand million rupees and above, the procuring agency
shall process the proposal to ascertain its viability and after such
process if the proposal is found viable, the procuring agency:
(a) shall advertise the proposal for open competition without
disclosing the name of the initiator of unsolicited proposal;

(b) shall conduct prequalification process;

(c) shall exempt the initiator of the unsolicited proposal from

the prequalification;

38
 (d) if no other bidder in response to the advertisement submits
bid, the procuring agency may award the contract to the
initiator of the proposal;

(e) in case of bidding competition, the initiator of the proposal

shall be given first right of refusal if the initiator does not
emerge as the lowest bidder; and

(f) shall award five percent additional weightage to the initiator

of the proposal from the combined score of technical and
financial evaluation.
28[61. Exemption.– (1) The Government or the Board shall not relax
application of these rules for procurement of services.

(2) A procuring agency may directly procure goods from a public

sector manufacturing unit on fixed price or negotiated price where value
of procurement does not exceed one million rupees.

(3) Where value of goods exceeds one million rupees or in a

competitive bidding, the public sector manufacturing unit participating
in the bid may, within three working days of opening of the bids, match
the lowest evaluated bid.

(4) In this rule, public sector manufacturing unit means a

manufacturing unit owned or controlled by the Government, Federal
Government, local government or by an organization which is owned or
controlled by any of these Governments and enlisted on the website of
the Authority].

62. On account payments.– A procuring agency shall make prompt

payments to the contractor against the invoice or running bill on
satisfactory performance within the time given in the conditions of the
contract which shall not exceed thirty days.

63. Commencement of procurement contract.– A procurement

contract shall come into force:

28
in sub rule (1) the word “exempt” substituted with the word “relax”, sub rule (2) and (3) substituted and
sub rule (4) inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.
39
 (a) where no formal signing of a contract is required, from the
date the notice of the acceptance of the bid or purchase
order has been given to the bidder whose bid has been
accepted and such notice of acceptance or purchase order
shall be issued within a reasonable time; or

(b) where the procuring agency requires signing of a written

contract, from the date on which the signatures of both the
procuring agency and the successful bidder are affixed to
the written contract and such affixing of signatures shall
take place within a reasonable time; and

(c) where the coming into force of a contract is contingent upon

fulfillment of a certain condition or conditions, the contract
shall take effect from the date whereon such fulfillment
takes place.

64. Closing of contract.– (1) Except for defect liability by the

contractor, as specified in the conditions of contract, performance of the
contract shall be deemed close on the issue of overall delivery certificate
or taking over certificate which shall be issued within thirty days of final
taking over of goods or receiving the deliverables or completion of
works enabling the contractor to submit final bill.

(2) In case of defect liability, defect liability certificate shall be

issued within thirty days of the expiry of the said period enabling the
contractor to submit the final bill, except for unsettled claims, which
shall be settled through resolution of dispute mechanism provided in
the contract.
29[64A. Assignment.- A procuring agency may assign whole or part of
procurement process to another procuring agency with the consent of
that other procuring agency].

29
after rule 64, the rule 64A inserted vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.
40
 CHAPTER-IX
MAINTENANCE OF RECORD AND FREEDOM OF INFORMATION

65. Record of procurement.– (1) A procuring agency shall maintain

a record of a procurement along with all associated documents for a
minimum period of five years.

(2) Such maintenance of record shall be subject to the

regulations framed in this regard from time to time.

66. Public access and transparency.– (1) As soon as a contract

has been awarded, the procuring agency shall make all documents
related to the evaluation of the bid and award of contract public.

(2) Where the disclosure of any information related to the

award of a contract is of proprietary nature or where the procuring
agency is convinced that such disclosure shall be against the public
interest, it may withhold only such information from public disclosure
subject to the prior approval of the Authority.

CHAPTER-X
REDRESSAL OF GRIEVANCES AND SETTLEMENT OF DISPUTES

67. Redressal of grievances by the procuring agency.– (1) The

procuring agency shall constitute a committee comprising of odd
number of persons, with proper powers and authorizations, to address
the complaints of bidders that may occur prior to the entry into force of
the procurement contract.

(2) Any bidder feeling aggrieved by any act of the procuring

agency after the submission of his bid may lodge a written complaint
concerning his grievances not later than 30 [ten] days after the
announcement of the bid evaluation report.
(3) The committee shall investigate and decide upon the
complaint within fifteen days of the receipt of the complaint.
(4) Mere fact of lodging of a complaint shall not warrant
suspension of the procurement process.

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substituted vide Notification No. ADMN(PPRA)10-2/2014 dated 11.03.2014
41
68. Arbitration.– (1) After coming into force of the procurement
contract, disputes between the parties to the contract shall be settled
through mediation or arbitration.
(2) The procuring agency shall provide for a method of
mediation or arbitration or both in the procurement contract.
69. Mis-procurement.– Any violation of these rules shall be treated
as mis-procurement.
70. Repeal.– The Punjab Procurement Rules, 2009 issued vide
notification No.MD(PPRA)2-1/2010 are hereby repealed.

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 31[SCHEDULE

{see sub-rule (6) of rule 21}

BLACKLISTING MECHANISM OR PROCESS
1. The procuring agency may, on information received from any
resource, issue show cause notice to a bidder or contractor.
2. The show cause notice shall contain:
(a) precise allegation, against the bidder or contractor;
(b) the maximum period for which the procuring agency
proposes to debar the bidder or contractor from
participating in any public procurement of the procuring
agency; and
(c) the statement, if needed, about the intention of the
procuring agency to make a request to the Authority for
debarring the bidder or contractor from participating in
public procurements of all the procuring agencies.
3. The procuring agency shall give minimum of seven days to the
bidder or contractor for submission of written reply of the show
cause notice.
4. In case, the bidder or contractor fails to submit written reply
within the requisite time, the procuring agency may issue notice
for personal hearing to the bidder or contractor/ authorize
representative of the bidder or contractor and the procuring
agency shall decide the matter on the basis of available record
and personal hearing, if availed.
5. In case the bidder or contractor submits written reply of the show
cause notice, the procuring agency may decide to file the matter
or direct issuance of a notice to the bidder or contractor for
personal hearing.
6. The procuring agency shall give minimum of seven days to the
bidder or contractor for appearance before the specified officer of
the procuring agency for personal hearing.

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Schedule added after rule 70 vide Notification No.S.O(Cabinet-I)2-9/2015 dated 06.01.2016.
43
7. The procuring agency shall decide the matter on the basis of the
available record and personal hearing of the bidder or contractor,
if availed.
8. The procuring agency shall decide the matter within fifteen days
from the date of personal hearing unless the personal hearing is
adjourned to a next date and in such an eventuality, the period
of personal hearing shall be reckoned from the last date of
personal hearing.
9. The procuring agency shall communicate to the bidder or
contractor the order of debarring the bidder or contractor from
participating in any public procurement with a statement that the
bidder or contractor may, within thirty days, prefer a
representation against the order before the Managing Director of
the Authority.
10. The procuring agency shall, as soon as possible, communicate the
order of blacklisting to the Authority with the request to upload
the information on its website.
11. If the procuring agency wants the Authority to debar the bidder
or contractor from participating in any public procurement of all
procuring agencies, the procuring agency shall specify reasons for
such dispensation.
12. The Authority shall immediately publish the information and
decision of blacklisting on its website.
13. In case of request of a procuring agency under para 11 or
representation of any aggrieved person under rule 21, the
Managing Director shall issue a notice for personal hearing to the
parties and call for record of proceedings of blacklisting. The
parties may file written statements and documents in support of
their contentions.
14. In case of representation of any aggrieved person or procuring
agency under rule 21, the Chairperson shall issue a notice for
personal hearing to the parties and may call for the record of the
proceedings. The parties may file written statements and
documents in support of their contentions.

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15. In every order of blacklisting under rule 21, the procuring agency
shall record reasons of blacklisting and also reasons for short,
long or medium period of blacklisting.
16. The Authority shall upload all the decisions under rule 21,
available with it, on its website. But the name of a bidder or
contractor shall immediately be removed from the list of
blacklisted persons on expiry of period of blacklisting or order of
the competent authority to that effect, whichever is earlier.
17. An effort shall be made for electronic communication of all the
notices and other documents pursuant to this mechanism or
process].

CHIEF SECRETARY
GOVERNMENT OF THE PUNJAB

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