GUIDELINES

ON
CONSTRUCTION
PROJECT MANAGEMENT

APRIL 2019
 FOREWORD

1.0 RITES has been handling Project Management Consultancy

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

2.0 The need to have well documented Guidelines in an organisation to

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

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

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

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

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

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

(iii) In the Indian Railways Contract Documents, the practice is to

go in mostly for Percentage Rate Tenders in place of Item Rate
Tenders.

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

Tender Committee.

5.0 These Guidelines do not, however, supersede specific provisions, if

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

6.0 Revised Standard E-Tendering Document 2018 has been issued

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

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

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

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

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

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

12.0 It will be appreciated that in Guidelines of this nature, it may not be

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

13.0 The first edition of `Guidelines’ issued in 2005 was largely prepared
by Late Shri R. Balasubramanian, ex-General Manager, Kolkata
Metro and Shri B.K.Makhija, the then Director/Projects. They were

iii
 also associated with the revised editions issued in 2007 and 2011.
The December 2015 edition of ‘Guidelines’ was the result of the
efforts put in by, Shri G.V.Chanana, Advisor, Contract Policy Cell
and Shri Alok Garg, ED (B&A) and Head Contract Policy Cell who
were assisted by Shri K. Murali krishna, the then JGM/CP. This
revised edition of ‘Guidelines 2019’ has been prepared by, Shri
G.V.Chanana, Advisor, Contract Policy Cell and Shri Alok Garg,
ED(HW&P/B&A) and Head Contract Policy Cell. Since updating
Guidelines is a dynamic process, Shri K. Murali Krishna, AGM/Civil
assisted Contract Policy Cell till his joining Vigilance cell in Jan 2019.
No amount of words of appreciation and gratitude to them will be
adequate for the purpose.

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

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

iv
IMPORTANT MODIFICATIONS MADE IN THE GUIDELINES “DECEMBER,
2015” AND INCORPORATED IN THE GUIDELINES “April, 2019”

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

SECTION 2

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

Para 2.6

Para in connection to Article 20 of Annexure 2.1 has been added stating that
it is essential to take consent of client to pay 75% of the amount awarded by
Arbitrator/Court to the contractor against a Bank Guarantee of the like
amount.

SECTION 3

Para 3.3

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

v
Para 3.4

The desirable level of organization has been modified in view of increase in

the cost of construction since publication of the 2015 edition.

Para 3.5.1 (c)

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

SECTION 4

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

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

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

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

SECTION 5

Para 5.1.6

The provision relating to ‘Amendments to Accepted Contracts’ has been

amended requiring financial and legal vetting of the proposal and approval of
the competent authority as per SOP.

SECTION 6

Para 6.8: Annexure 6.5

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

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SECTION 8

Para 8.3.2

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

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

Para 8.3.5

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

Para 8.5.3

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

Para 8.8.6

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

Para 8.9.2.1 & 8.9.2.2

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

Paras 8.9.2.3 & 8.9.2.4

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

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SECTION 12

Para 12.7.8

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

SECTION 13

Para 13.6.4

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

SECTION 20

Para 20.3

Periodic Inspection Schedule as per awarded value of contract has been

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

SECTION 21

Para 6 of Annexures 21.2 relating to the extent of test checking of

measurements, has been modified.

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

SECTION 22

Para 22.3.2

This Para has been added giving time lines for processing and release of the
payment of final bills to be adhered to by RITES staff in cases where RITES

viii
supervises the work and releases the payments to contractors from fund
deposited by client.

Para 22.8 to 22.10

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

SECTION 24

Para 24.3

The Engineer-in-Charge has been designated as the authority to approve

payment of all running bills and final bill which should be processed by the
Project Coordinator.

SECTION 28

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

SECTION 29

Consequent upon RITES shifting to Government E-procurement system

provided by NIC’s Central Public Procurement Portal (CPPP), Section 29 has
been thoroughly revised.

ix
 CONTENTS

SECTION PARA SUBJECT PAGE

NO.

1 INTRODUCTION

1.1 Preamble 1
1.2 RITES Documents 1
1.3 Integrity Pact 3
1.4 Types of Project Consultancy Assignments 4
1.5 Financial Liability of RITES 5
1.6 Essential Features of Good Project 6
Management

2 CONTRACT WITH CLIENT

2.1 Signing of Contract with Client 9

2.2 Definition of Deposit Works 9
2.3 Realization of Contribution for Deposit Works 10
2.4 Execution of Deposit Works 11
2.5 Endorsement of Copies of Documents to the 12
Client
2.6 Arbitration / Court cases involving Works 13
Contractor

3 PROJECT ORGANISATION AND

RESPONSIBILITY FOR PROJECT
IMPLEMENTATION

3.1 Organizational Set up 14

3.2 Field Organization 14
3.3 Organization at SBU Office 15
3.4 Desirable Level of Organization 15
3.5 Field Activities for which Controlling Site 16
Engineer will be responsible
3.6 SBU Office Activities for which the Project 20
Coordinator will be responsible

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4 PREPARATION OF ESTIMATES

4.1 Preliminary Estimate / Abstract Estimate 24

4.2 Detailed Estimate / Technical Sanction 26
4.3 Detailed Estimate for Technical Sanction – 29
Procedure for Preparation
4.4 Detailed Estimate – Market Rate Analysis for 30
Non-Schedule Items
4.5 Detailed Estimate – Compilation 36
4.6 Technical Check of Detailed Estimates 38
4.7 Supplementary Estimate 38
4.8 Revised Estimate 39
4.9 Market Rate Analysis 39
4A 4A Preparation of Estimates for Survey / 42
Geotech / Planning / Consultancy / Design etc.

5 CONTRACTS AND FORMS

5.1 Definition of Contract 44

5.2 Contract Documents 45
5.3 Lumpsum Contract 49

6 PREPARATION OF TENDER DOCUMENTS

AND PUBLICITY

6.1 Tender System 50

6.2 Single Tender 50
6.3 Limited Tender 50
6.4 Contents of Tender Documents 53
6.5 Invitation of Tenders for Component Parts 55
6.6 Publicity of Tenders 56
6.7 Pre Bid Conference 59
6.8 Pre Qualification of Tenderers – Joint 60
Ventures
6.9 One Packet and Two Packet Systems 60
6.10 Time Limit for Publicity of Tenders 61
6.11 Re-invitation of Tenders – Extension of Period 61

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7 SALE OF TENDER DOCUMENTS

7.1 Documents to be ready in time 62

7.2 Supply of Duplicate set of Tender Documents 62
7.3 Time Interval between Sale of Tender 62
Documents and Opening of Tenders
7.4 Scale of Charges for Tender Documents 63
7.5 Supply of Drawings 63
7.6 Precautions in Sale of Tender Documents 63

8 RECEIPT, OPENING AND ACCEPTANCE

OF TENDERS

8.1 Procedure to be adopted 65

8.2 Delayed and Late Tenders 66
8.3 Instructions for Tender Opening Officers 66
8.4 Evaluation of Tenders 73
8.5 Preparation and Scrutiny of Briefing Note for 74
Technical Bids (Applicable for both Single
Packet and Two Packet Systems)
8.6 Evaluation of Technical Bids by Tender 77
Committee (Applicable for both Single Packet
and Two Packet Systems)
8.7 Opening of Financial Bids 80
8.8 Preparation and Scrutiny of Briefing Note and 80
Comparative Note for Financial Bids
(Applicable for both Single Packet and Two
Packet Systems)
8.9 Evaluation of Financial Bids by Tender 83
Committee (Applicable for both Single Packet
and Two Packet Systems)
8.10 Tender Committee’s Recommendations and 89
Action by the Tender Accepting Authority
8.11 Purchase Preference to Public Sector 90
Enterprises
8.12 Acceptance of Single Tender 90
8.13 Procedure for Conducting Negotiations 91
8.14 Communication of Acceptance of Tender 91
8.15 Time Limit for Finalization of Tenders 93
8.16 Reinvitation of Tenders 94

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9 EARNEST MONEY

9.1 Necessity for Earnest Money 95

9.2 Rates of Earnest Money 95
9.3 Mode of Deposit 95
9.4 Refund of Earnest Money 95
9.5 Forfeiture of Earnest Money 96

10 PERFORMANCE GUARANTEE AND

SECURITY DEPOSIT

10.1 Performance Guarantee 98

10.2 Validity of Performance Guarantee 98
10.3 Claim under Performance Guarantee 98
10.4 Refund of Performance Guarantee 99
10.5 Recovery of Security Deposit 99
10.6 Claims under Security Deposit 100
10.7 Validity Period of Security Deposit and Refund 100
10.8 Miscellaneous Provisions 101
10.9 Refund of Security Deposit – Guarantee on 103
Specialised Items of Works
10.10 SBUs Responsibility for Prompt Refund of 104
Security Deposit and Performance Guarantee

11 AGREEMENTS / CONTRACTS –
ESSENTIAL FEATURES

11.1 General Features 105

11.2 Power to Sign Agreements 106
11.3 Recording of Date of Acceptance of Tender in 107
the Agreement
11.4 Supply of Copies of Contract to Contractors 107
11.5 Certification and Custody of Agreements 107
11.6 Contents of Agreements 108
11.7 Safe Custody of Contract Agreement and 108
Related Documents

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12 GENERAL GUIDANCE FOR OPERATION
OF CONTRACT CLAUSES

12.1 Clause 2 109

12.2 Clause 3 111
12.3 Clause 5 112
12.4 Clause 7 115
12.5 Clause 8 116
12.6 Clause 10 (C ) and Clause 10 CA 117
12.7 Clause 10 (CC) 118
12.8 Clause 12 122
12.9 Clause 14 125
12.10 Clause 16 127
12.10A Clause 21 128
12.11 Clause 36 129
12.12 Clause 42 130
12.12A Clause 45A 132
12.13 Clause 47 132
12.14 Performance for Notices to Contractor under 133
various Clauses of Contract and for
Completion Certificate

13 EXTENSION OF TIME AND

COMPENSATION FOR DELAY

13.1 General Principles 134

13.2 Requirements of Clause 5 135
13.3 Powers of Officers for Grant of Extension of 135
Time
13.4 Grant of Extension of Time without Application 136
13.5 Form of Application for Extension of Time 136
13.6 Procedure for Granting Extension of Time 137
13.7 Compensation under Clause 2 139
13.8 Section 74 of the Indian Contract Act, 1872 139
13.9 Proforma for Intimating the Contractor on Levy 139
of Compensation Under Clause 2

14 PAYMENT FOR SUB – STANDARD WORK

14.1 Procedure for Acceptance of Substandard 141

Works

xii
 14.2 Acceptance of Substandard Work 141

15 ISSUE OF MATERIALS TO CONTRACTOR

15.1 Issue of Materials to be an Exception 143

15.2 Issue, Supply and Recovery of Cost of 146
Materials
15.3 Issue Rates 148
15.4 Return of Surplus Materials 149
15.5 Instructions regarding Storage of Cement in 150
Godowns
15.6 Issue of Materials against Bank Guarantee 150
15.7 Recovery towards materials issued for 150
verification of defects/Reclosing of work

16 MATERIALS ARRANGED BY
CONTRACTOR AND MANDATORY TESTS

16.1 General Principles 152

16.2 Mandatory Tests – CPWD Specifications 154
16.3 Design Mix Concrete – Acceptance Test 156
16.4 Nominal Mix Concrete – Action in case of 158
Failure of concrete in Mandatory Concrete
Cube Tests
16.5 Design Mix Concrete – Action in case of 158
Failure of Concrete in Cube Tests

17 EXTRA, SUBSTITUTED AND DEVIATED

ITEMS OF WORK AND PLACING OF
REPEAT ORDERS

17.1 Deviation 159

17.2 Prior Sanction of Competent Authority 159
Necessary
17.3 Extra / Substituted Items 160
17.4 Fixation of Rates for Deviated / Extra 161
/Substituted Items
17.5 Rates for Deviation (Extra / Substituted / 161
Deviated Quantities) Items allowing Profits
and Overheads on Stipulated Materials
supplied to the Contractor

xiii
 17.6 Measurements for Inadmissible Items 161
17.7 Deviations in Quantities of BOQ Items 162
17.8 Placing of Repeat Orders 162

18 FAIR WAGE CLAUSE AND

CONTRACTOR’S LABOUR REGULATIONS

18.1 Provisions of Act 164

18.2 Acts / Omissions 165
18.3 Fair Wages 165
18.4 Responsibilities of Field Officers 166
18.5 Responsibilities of Contractor 167
18.6 Deductions to be made from Contractor’s Bills 168
18.7 Procedure in case of Accidents to Contract 168
Labour

19 ARBITRATION AND LITIGATION

19.1 Application of Arbitration Claus 25 of Standard 169

Contract Form
19.2 Application for Appointment of Arbitrator 169
19.3 Preparation for Arbitration Cases 170
19.4 Processing of Contractor’s Application 172
19.5 Appointment of Arbitrator 172
19.6 Action Subsequent to Appointment of 173
Arbitrator
19.7 Engagement of Lawyers 175
19.8 Production of Official Documents before 177
Court/Arbitrators
19.9 Default of a Party 177
19.10 Making of Award 178
19.11 Acceptance of Award 178
19.12 Review of Arbitration Award 180
19.13 Setting Aside of Awards 181
19.14 Period of Limitation 182
19.15 Court Cases 185
19.16 Judgements in Court Cases 185
19.17 Legal Charges on Civil Suits / Arbitration 186
Cases
19.18 Documentation for Arbitration Cases 186

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 19.19 Disposal of Old Records 188

20 RECORDS TO BE MAINTAINED
AT SITE OF WORK

20.1 General Provisions 189

20.2 Site Order Book 190
20.3 Periodic Inspection of Works – Inspection 190
Record
20.4 Hindrance Register 193
20.5 Daily Progress Record 194
20.6 Cement Register 194
20.7 Steel Register 194
20.8 Non Conformance Items Record 194
20.9 Quality Audit Record 195
20.10 Site Coordination Meetings Record 195
20.11 Guarantee Bonds Record 195
20.12 Insurance Policies Record 196
20.13 Drawings Record 196
20.14 Record of Mandatory and Non Mandatory 197
Tests Carried out
20.15 Paint and Chemicals Record 197

21 MEASUREMENT BOOKS

21.1 Measurement Book – General Instructions 199

21.2 Test Checking of Measurements 205
21.3 Recording Levels for Earth Levelling Work 206
21.4 Loss of Measurement Book 208
21.5 Proforma for Measurement Book 208
21.6 Compressed Measurement Books (CMBs) 209
and Bills to be submitted by the Contractor

21A BILLING THROUGH COMPUTERIZED

MEASUREMENT BOOK

21.1A General 212

21.2A Test checking of measurements 217
21.3A Recording of levels for earthwork 218
21.4A Contractor’s bill 221

xv
22 PAYMENTS TO CONTRACTOR

22.1 Requirement of Clause 7 222

22.2 Final Payments 223
22.3 Time Schedule for Payment of Bills 223
22.4 Inspection of Work Nearing Completion/After 225
completion
22.5 Completion Certificate 226
22.6 Payment through Bank 226
22.7 Deduction of Income Tax at Source 227
22.8 Deduction of Building and other Workers 227
Welfare Cess at Source

23 ADVANCES TO CONTRACTOR

23.1 Types of Advances 228

23.2 Certificates to Accompany Bills 229

24 PREPARATION, EXAMINATION,
VERIFICATION AND PASSING BILLS
FOR PAYMENTS

24.1 Preparation of Bills 232

24.2 Forms of Bills for Payment 232
24.3 Authorities to Pass the Bills 233
24.4 Payment for Work done 233
24.5 Deviation Statement 234
24.6 Bank Guarantees – Check and Custody 234
24.7 Documents to Accompany Bills 234
24.8 Check of Bills at SBU Office 234

25 QUALITY ASSURANCE AND CHECK LISTS

25.1 Introduction 235

25.2 Quality Assurance Plan 235
25.3 Methods Statement 235
25.4 Responsibility for Quality Assurance 236
25.5 Checklists 236
25.6 Testing Laboratory 237

xvi
26 CHIEF TECHNICAL EXAMINER’S
ORGANIZATION AND COMMON
IRREGULARITIES OBSERVED

26.1 Functions of CTE Organisation 238

26.2 Returns 238
26.3 Inspection by CTE 238
26.4 Recoveries of Over Payments pointed out by 239
the CTE
26.5 Common Irregularities pointed out by the CTE 240

27 OPENING, CUSTODY AND

FINAL DISPOSAL OF
ESSENTIAL PROJECT DOCUMENTS

27.1 Preamble 241

27.2 Common Deficiencies Observed in System of 241
Maintenance and Disposal of Records
27.3 Procedure Order on Opening, Custody and 242
Final Disposal of Essential Project
Documents.

28 PERFORMANCE OF CONTRACTORS 243

29 E-TENDERING 246

INDEX – LIST OF ANNEXURES 256

*****

xvii
 SECTION 1

INTRODUCTION

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

1.2 RITES DOCUMENTS

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

(i) Guidelines on Construction Project Management 2019

This document is based mainly on CPWD Works Manual 2014

but with substantial modifications by incorporating the good
practices of other organizations like Indian Railways, World Bank
etc. The guidelines are comprehensive and cover almost all
aspects of Contract Management of particular interest to the Site
Engineers and officers in SBUs. The Guidelines should be read
along with the Standard RITES Tender Documents referred to in
item (ii) below. Various instructions/circulars/guidelines issued by
different Deptts like CVC, Railway Board etc in the past have also
been taken into consideration in preparing this revised edition.

1
 The provisions contained in this book can be adopted also in the
Management of Contracts based on the formats of other
organizations like Indian Railways and World Bank in so far as
they are not in conflict with them.

(ii) Standard Tender Document Dec 2016 (Physical/Hard Copy

Tender) and April 2018 (E-Tendering)

The Standard Tender and Contract Documents with components

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

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

1) Notice Inviting Tender and Instructions to Tenderers including

Annexures

2) Tender and Contract Form

3) Special Conditions

4) Schedules A to F

5) Technical Specifications

6) Drawings

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

Part 3 : General Conditions of Contract

Section (7) Conditions of Contract

Section (8) Clauses of Contract

Section (9) RITES Safety Code

Section (10) RITES Model Rules for Workers

Section (11) RITES Contractor”s Labour Regulations

2
 Depending on the nature and scope of work, Bill of Quantities,
Drawings and site/work specific Special Conditions/Specifications
will be required to be made out by NIT Approving Authority. The
Standard Tender Document may be adopted in all cases other
than those where the Client insists upon adoption of a specific
format such as that of Railways, MES, World Bank etc.

iii) Guidelines for Arbitration under Arbitration & Conciliation Act

1996 – July 2007

iv) Checklist of Specifications for Civil Engineering Works for

Quality Control – August 2008

v) Specifications for Railway Track and Bridge Works –

September 2010

1.3 INTEGRITY PACT

RITES in cooperation with CVC has signed MOU with Transparency

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

The essential ingredients of the Pact and its implementation

procedure envisage:

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

3
 b) Entering into this Pact by the bidder would be a preliminary
qualification.

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

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

d) Detailed guidelines for banning of business dealings are

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

1.4 TYPES OF PROJECT CONSULTANCY ASSIGNMENTS

RITES as a Premier Consultancy Organization has been handling

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

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

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

4
 supervision, entrusts to RITES, General Supervision including
Quality Control.

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

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

1.5 FINANCIAL LIABILITY OF RITES

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

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

the Client, the guidelines in this document should be followed to
protect the interest of RITES in Project Management Consultancy
Contracts. While various aspects of Project Management from

5
 tendering to execution have been covered in detail in subsequent
Sections, the basic items to be kept in view for successful
implementation of a Construction Project are detailed below.

Efforts should be made to ensure observance of the essential features

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

1.6 ESSENTIAL FEATURES OF GOOD PROJECT MANAGEMENT

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

6
 right at the initial stage that in case funds are not made
available promptly as asked for, the Works Contract will have to
be terminated and the resultant liability which may include
claims from the Contractor will be to Client’s account.

(iv) Contract conditions and BOQ items should not be ambiguous

and vague. Proper care should be taken at the time of
preparation of BOQ.

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

(vi) No extra or substituted item should be executed at site without

prior in-principle approval from the competent authority of
RITES and of the client, if the agreement with RITES requires
the same. However in case of exigency the permission to
execute the Substituted or Extra Item should be taken from the
SBU Head or project coordinator respectively. Pending
processing of the rate of Extra/Substituted Item, payment to
contractor should be released @ 75% of the rates as tentatively
determined by the SBU Head of RITES.

(vii) Quantities should not be executed beyond the permissible

deviation limits in BOQ items for which rates have been fixed in
the Contract, without the in principle approval of the Competent
Authority of RITES and of the Client, if the Agreement with
RITES requires the same. Payment to contractors for such
deviated quantities should be made in accordance with contract
provisions. Where the Contractor presses for payment for
quantity executed in excess of specified limits, for which rate
can be derived from BOQ rate, payment may be effected at
75% of BOQ rate with the approval of SBU Head. But
expeditious action should be taken to decide on the revised
rate.

7
(viii) It should be ensured that rates of Extra / Substituted Items as
well as rates for the BOQ items for quantities beyond the Limits
for which rates are available in the contract are duly accepted
by the Contractor, before releasing payment of Final Bill.

(ix) Decisions sought by Project Coordinators with regard to

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

(x) Whenever there is any likelihood of increase in the cost of work

beyond the Clients’ Expenditure Sanction figure, Revised
Estimate should be prepared well in advance and submitted to
the Client for revised Administrative Approval and Expenditure
Sanction.

(xi) All the letters and references of the Contractor should be

replied to promptly. No letter or reference of the Contractor
should remain unanswered.

(xii) Proper records should be maintained at site with regard to

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

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

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

8
 SECTION 2
CONTRACT WITH CLIENT

2.1 SIGNING OF CONTRACT WITH CLIENT

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

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

In order to ensure uniformity, a format for Model Agreement between

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

2.2 DEFINITION OF DEPOSIT WORKS

Works which are got executed by RITES where Works Contracts are
signed by RITES for and on behalf of the Client and the Client makes
funds available to meet the Works Contract expenditure, RITES fees
and other related expenses, come under the category of Deposit
Works. Before taking up any Deposit Work, an Agreement has to be
executed between RITES and the Client indicating clearly the scope
of work, the financial arrangements envisaged by the Client for
smooth progress of works and the items on which RITES should take
prior approval of the Client as well as the items on which RITES can

9
 take a decision on its own with or without advice to the Client, during
the course of execution of work.

2.3 REALIZATION OF CONTRIBUTION FOR DEPOSIT WORKS

2.3.1 Whenever a Deposit Work is to be carried out, full contribution should

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

2.3.2 In cases of deposit works of financially sound Clients from whom

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

2.3.3 Where delays are experienced in obtaining funds and where

expenditure has to be incurred out of the 33-1/3% or agreed
percentage reserve to keep the works going, the matter should be
brought up by the Project Coordinator to the notice of SBU Head
promptly for taking up the matter with the Client. It is reiterated that
no expenditure is to be incurred on Deposit Works out of RITES’
funds.
2.3.4 To enable the Client to provide additional funds in time, Revised
Estimates should be sent to the Client, at the appropriate stages
during the execution of works wherever required.

2.3.5 It should be ensured that in no case deposits received in respect of

one Deposit Work are diverted to other Deposit Works even for the

10
 same Client. The only exception will be in case when the Client
specifically authorizes in writing such diversions.
2.3.6 The Client on whose behalf the work is to be done is also to be made
clear that RITES does not bind itself to complete the work within the
amount of estimate and that the Client should agree to finance the
excess that may occur.
2.3.7 It should be ensured that the expenditure is not more than the
deposits received for the work. Where the SBU Head is doubtful
about the timely receipt of the deposits, matter should be taken up
with the Client by giving notice that if further deposit is not received,
work may be stopped and any contractual liability arising out of such
stoppage of work will have to be borne by the Client. Efforts should
also be made by higher officers, if need be, to follow up with the
Client. In exceptional circumstances, if the work has to be continued,
permission of the Divisional Head or tender accepting authority,
whoever is higher should be obtained.
2.3.8 While submitting preliminary estimates for Deposit Works for obtaining
Administrative Approval and Expenditure Sanction from the Client, a
copy of the terms and conditions under which the works would be
taken up by RITES generally as given in Annexure 2.1 should also be
enclosed with the estimate. Alternatively these provisions should be
incorporated in the Agreement between RITES and the Client.

2.4 EXECUTION OF DEPOSIT WORKS

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

as contained in subsequent sections should be followed. The scope
of work should not be altered without written permission of the Client.
2.4.2 SBU Heads should keep a close watch on the progress of expenditure
on Deposit Works, particularly on the estimated cost of work, RITES
fees and related expenses, the total deposit received and the
progressive expenditure. A copy of the monthly expenditure
statement should be forwarded to the Client by the SBU Head
indicating the additional funds, if any, to be made available, keeping in

11
 view the trend of progress of works. Ideally a separate Bank account
should be maintained for each Deposit Work which should be credited
with all deposits of the Client and debited with payments to the
Contractor, RITES’ fees and other expenses as per provisions in the
Agreement between RITES and the Client. This will facilitate easy
reconciliation of accounts, monthly and on completion of works. It is
desirable that in case of opening of such Bank Account, the
Agreement between RITES and the Client clearly stipulates whether
interest accruing out of short term deposits from the surplus funds if
any available in the Account from time to time will be retained by
RITES or refunded to the Client. The consultancy fee to be quoted by
RITES should take into consideration this factor. Where the Client
does not agree for the interest on such short term Fixed Deposits
being credited to RITES account, keeping in mind the Income Tax
implications on accrued interest and expenditure in management of
such short term fixed deposits, the Client’s funds may be kept in
current account without any conversion into Short Term fixed
deposits.
2.5 ENDORSEMENT OF COPIES OF DOCUMENTS TO THE CLIENT

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

2.5.2 Irrespective of the provisions in the Agreement between RITES and

the Client, copy of the following documents should be endorsed to the
Client without any delay.
(i) Detailed Estimate as sanctioned by RITES
(ii) Detailed drawings as approved by RITES

(iii) Tender Document

(iv) Letter of Acceptance to the selected Contractor

(v) Contract with the Contractor / Supplementary Agreement

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

12
 (vii) Deviations and Rates as approved by RITES for Extra items,
Substituted items and Deviation in Quantity of BOQ items

(viii) Notice to Contractor on Termination / Rescission / Foreclosure

of Contract.

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

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

applicable).

(xi) Completion Certificate

(xii) Maintenance Certificate

2.6 Arbitration / Court cases involving Works Contract

This shall be dealt as per Article 20 of Annexure 2.1. In case any

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

13
 SECTION 3

PROJECT ORGANISATON AND RESPONSIBILITY

FOR PROJECT IMPLEMENTATION

3.1 ORGANISATIONAL SET UP

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

3.2 FIELD ORGANISATION

The strength of field organization will depend on the magnitude of the

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

The senior most officer in the field organization irrespective of his

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

14
3.3 ORGANISATION AT SBU OFFICE

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

The nominated Project Coordinator will take the assistance of the

officers and staff in the Technical Section of the SBU office for dealing
with all technical matters related to the project. He will liaise with the
Accounts Officer dealing with all financial matters related to the
Project.

3.4 DESIRABLE LEVEL OF ORGANIZATION

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

15
 Project Size Project Controlling Site Engineer
(Rupees in Coordinator Site
Crore) Engineer

For Projects Manager Engineer NIL

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

3.5 FIELD ACTIVITIES FOR WHICH CONTROLLING SITE ENGINEER

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

b) Do a general check of the BOQ in the Contract Agreement with

the “Good for Construction Drawings” and see if there are any
obvious errors such as missing items of work, incorrect
estimation of quantity of any item, rates in figures and words
not tallying for any item etc. If any such error is noticed,
it should be brought to the attention of SBU office promptly for
taking necessary corrective action.

16
c) Check if the Contractor has submitted the following documents
and if so, xerox copies of the same should be retained in the
Site Office and the originals sent to SBU Office. The list given
below is based on CPWD General and Special Conditions of
Contract and may require modification depending on the
provisions contained in GCC & SCC of other type of contracts
such as that of World Bank, Indian Railways etc as will be
required to be followed for that work.

i) Performance/ Additional Performance Guarantee Bond.

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

v) Insurance Policy on Plant & Machinery Advance

vi) Bank Guarantee Bond on free supply of materials.

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

d) Check with the provisions in the General and Special

Conditions of Contract and see if the following requirements
have been complied with

17
 i) Site Laboratory fully equipped and manned by adequate
numbers of technically qualified staff.
ii) Availability of qualified and experienced technical personnel
at site.
e) Check the quality of construction materials arranged by the
Contractor by arranging tests where required and see if the
Manufacturers’ Test Certificates have been furnished, where the
Contract provides for the same.

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

other materials have been provided by the Contractor.

3.5.2 CONSTRUCTION STAGE (WORKS IN PROCESS)

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

20 and 27 of this book.

b) Conducting mandatory and other tests on materials and

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

c) Quality control and Technical Audit on works.

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

Regulations as detailed in Section 18 of this book.

e) Taking measurements of work including test checking as

detailed in Section 21 of this book.

f) Submission of Running Account Bills with all accompanying

documents as stipulated in Section 24 of this book.

g) Processing Contractor’s submissions with his recommendations

to SBU office on the following:-

i) Rates for deviated quantities of BOQ items, substituted

items and nonscheduled items.
ii) Extension of Time with or without compensation.

18
 iii) Acceptance of substandard work and reduced rates for the
same.
iv) Contractor’s claims.
h) Issue of notices to the Contractor on progress of work, quality of
work, number and competence of technical personnel deployed,
functioning of Site Laboratory etc.

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

recommend to SBU office, measures to minimise deviations.

3.5.3 CONSTRUCTION STAGE (ON PHYSICAL COMPLETION)

a) Inspect the works on receipt of report from the Contractor that

the works are completed, point out the deficiencies, if any, and
inform the Project Coordinator for issuance of Provisional
Certificate of Physical Completion/ Completion Certificate by the
Engineer-in-Charge.

b) Submission of Final Bill with all accompanying documents as

stipulated in Section 24 of this book.

c) Furnish to SBU office comments on the claims, if any, submitted

by the Contractor along with the Final Bill.

d) Ensure that the Contractor cleans up the area before handing

over the completed works.

e) Hand over the completed work to the Client under proper

Handing over / Taking over Notes along with Guarantees
/Warrantees (if any), Completion plans and Operations &
Maintenance Manual (if any).

3.5.4 POST CONSTRUCTION STAGE

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

19
 b) Arrange for issuance of “Maintenance Certificate” to the
Contractor on expiry of Maintenance Period after checking that
all defects have been rectified. Arrange refund of the balance
Security Deposit as per provisions in the Contract.

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

Guarantee Bonds for specialized works.

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

facilitate dealing with further Arbitration/Court cases, if any.

3.6 SBU OFFICE ACTIVITIES FOR WHICH THE PROJECT

COORDINATOR WILL BE RESPONSIBLE

3.6.1 PRE-CONSTRUCTION STAGE

a) Co-ordinate with client regarding:

(i) Entering into contract with client in the format given at

Annexure 2.1 modified, if necessary with the approval of
competent authority.

(ii) Obtaining his functional requirements relating to the

project.

(iii) Obtaining his approval for preliminary drawings/General

Arrangement Drawings, specifications etc

(iv) Obtaining his approval for preliminary cost estimates

(v) Realization of funds for initial expenses

b) Take necessary action for:

i) Preparation of drawings, design and estimates, if

required, through sub-consultants.

ii) Appointment of sub-consultants.

20
 iii) Preparation of input estimates and obtaining approval of
the same from competent authority after vetting by
finance.

iv) Preparation of tender documents, obtaining approval of

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

v) Signing of contract by competent authority and sending

copies of the same to finance and Controlling Site
Engineer.

c) Where the Controlling Site Engineer recommends modifications of

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

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

e) Check the originals of the documents sent by the Controlling Site

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

3.6.2 CONSTRUCTION STAGE (WORKS IN PROGRESS)

a) Do periodic inspection of the site of work and see if the records

are being maintained as detailed in Sections 20 and 27 of this
book. Record inspection notes in the Register covering progress
and quality of the materials and workmanship. Carry out
mandatory tests, if any, due at the time of inspection. Test
check measurements, particularly on classification of soil and

21
 items of large value, where there is only one Site Engineer at
the project site.

b) Check the Running Bills and accompanying documents as

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

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

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

d) Take prompt action in processing approval of the competent

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

i) Rates of deviated quantities of BOQ items, Substituted

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

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

action as detailed in Section 24 of this Document.

3.6.3 CONSTRUCTION STAGE (ON PHYSICAL COMPLETION)

a) Check the Final Bill and the accompanying documents as

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

b) Scrutinize the claims, if any, submitted by the Contractor along

with the Final Bill and get the decision of the Competent
Authority in consultation with the Client on action to be taken for
dealing with the claims.

22
 c) Submit to the Client the Final Statement of Accounts as
provided for in the Agreement between RITES and the Client.

d) Submit to the Client the following documents:

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

a) Submit to the Client the following documents:

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

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

this book.

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

this book.

23
 SECTION 4

PREPARATION OF ESTIMATES FOR WORKS

4.1 PRELIMINARY ESTIMATE/ABSTRACT ESTIMATE

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

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

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

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

by Zonal Railway:-

A) P. Way Material
i. The rates of rails from SAIL which can be obtained from
their Delhi or Zonal / State Offices.
ii. The rates of sleepers shall be based on rates to be
obtained from PSC sleeper manufacturing company or
companies supplying sleepers to the Railways in the area
where work is to be executed or else based on recently
accepted rates in the area, if available. Rates should be for
supply of sleepers to parties other than Indian Railways.
iii. The rates of Points& Crossings and PSC sleepers for the
same shall be based on rates circulated by Railway duly
enhanced by the % by which the rates of rails/sleepers as

24
 obtained vide (i) & (ii) above are over and above Railway
circulated rates.
B) Execution of work
The rates for execution of PW works should be based on rates
circulated by Railways.
C) General:
In addition to above, provision shall be made for–
i) CGST, SGST as applicable.
ii) Freight including handling charges.
iii) General charges including charges for Bank Guarantees
and Insurance etc. as required.
iv) T & P charges.
v) Contractor’s profit and overheads
vi) Workers Welfare Cess Act 1996 etc.
Road Works:- Length of road, no. of lanes etc worked out and
the rate per unit area, length or other such method adopted for
ready and rough calculation, so as to give an approximate idea
of the cost involved in the proposal.

Railway Bridges:- On the basis of Bridge opening / span and

the number of Tracks to be crossed, adopting Unit Rate per
metre of opening per Track.

Road Over Bridges:- On the basis of area of road on bridge

proper and on approaches, Unit rate per Sq. Metre of approach
will vary depending on the design.

25
4.1.2 The Preliminary estimate should invariably provide for the probable
escalation in the prices based on trend of increase in price of
materials and labour for the period between estimate preparation and
start of work as also during the period of construction. In case these
provisions are not accepted/approved by client, its implication should
be conveyed to them in writing.
4.1.3 The estimate should include RITES’ fee which should include fees of
sub-consultants, for project management.
4.1.4 Following steps need to be taken before preparation of the estimates:
Freeze the requirement of project and specifications of work with the
Client.
Prepare concept plan based on the requirement and obtain approval
of the Client.
Where required, conduct sub-soil investigations and tests to
determine subsoil strata and the safe bearing capacity of soil for
design of foundations.
4.1.5 While forwarding the Preliminary Estimate to the Client for according
Administrative Approval and Expenditure Sanction, an indication shall
be given in the history sheet that the cost projected in the Preliminary
Estimate is liable to revision due to probable escalation in cost of
construction apart from reasons such as change in scope, design and
specifications etc, which may be desired by the Client at a later date.

4.2 DETAILED ESTIMATES/TECHNICAL SANCTION

4.2.1 As soon as Administrative Approval and Expenditure Sanction for

Work is received based on the Preliminary Estimate and an
assurance from the Client that the site is available duly approved by
the Local Body for its use for the purpose intended, General
Arrangement Drawings and Detailed drawings will be prepared by
RITES or got prepared from RITES sub-consultant. Based on the
drawings, Detailed Estimate will be prepared.
4.2.2 Detailed Estimate should, as far as possible, be prepared for the
entire project as a whole. It will, however, be essential to decide on
the tender packages in advance and obtain the approval from
Competent Authority for Packaging of tenders as per SOP and then
prepare estimates package wise. Technical sanction to the Detailed

26
 Estimate should be obtained from the competent authority as per
schedule of powers of RITES.
In case of a Composite Estimate, the concerned disciplines like
Civil/Electrical/Signal/Mechanical etc, shall obtain Technical Sanction
for their respective portion from the SBU Head and then forward the
same to the competent Authority for consolidation and sanction.
4.2.3 In case of exigencies of work/requirement of the Client, Detailed
Estimate for a part project may be prepared and Technical Sanction
obtained for the same. Reasons for the same, however, should
invariably be kept on record endorsing copy to Competent Authority to
accord approval for Packaging of tenders as per SOP
4.2.4 In case the Estimated Cost including the element of RITES fees, Price
Escalation during the course of execution of works and unforeseen
items, exceeds the amount for which Administrative Approval and
Expenditure Sanction has been obtained inclusive of the allowable
%age excess as per contract agreement with the Client, the Client
should be advised of the revised increased Cost for fresh
Administrative Approval and Expenditure Sanction.
4.2.5 When RITES undertakes a project where Detailed Estimate/ DPR has
already been approved by the Client, no separate Technical Sanction
to the estimate is required from the competent authority of RITES.
However during the scrutiny of such estimates, if deficiencies are
noticed which have cost implications, the same should be brought to
the notice of the Client after it is seen by the competent authority of
RITES. The Project Coordinator will be responsible for such scrutiny
of estimate and for taking necessary follow up action with the Client.

4.2.6 The Detailed Estimate will include:

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

27
 Supporting documents when rates are based on prevailing market
rates in the project area.

Supporting documents when rates are based on the trend of rates of

items in tenders accepted in the recent past duly updated for factors
likely to affect the cost.

4.2.7 Report on the Estimate should be prepared in a lucid form

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

iii. Scope:- An explicit statement as to what work is and what is not

covered by the estimate; also a reference to what
arrangements are being made for any portions of work which
are not included in the estimate.

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

v. Cost:- Estimated Cost of the work and a comparison with the

amount originally provided under any previous administrative
sanction or detailed estimate in case of revision.

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

28
 vii. Establishment:- Details of any provision made in the estimate
for work-charged establishment, when necessary.

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

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

ix. Land:- Whether land for the work is available free of

encumbrance. Arrangements for acquisition of land, where
necessary.

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

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

4.3 DETAILED ESTIMATES FOR TECHNICAL SANCTION -

PROCEDURE FOR PREPARATION

The procedure to be adopted for preparation of Detailed Estimate will

be as under:

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

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

iii. Items that cannot be covered by any Standard Schedule of

Rates will come under the category of Non Schedule items.

29
 The estimates for these items should be prepared as per
procedure explained in para 4.4. Alternatively, the estimated
cost can be worked out on the basis of the trend of rates of
such items in tenders accepted in the recent past duly updated
for factors likely to affect the cost. Average rate of two or three
(preferably three) accepted tenders may be considered.

iv. The minimum level for preparation of Detailed Estimate shall be

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

4.4 DETAILED ESTIMATE - MARKET RATE ANALYSIS FOR NON-

SCHEDULE ITEMS

4.4.1 For Non Schedule items, the cost has to be determined for each item
based on Market Rate Analysis which will include the cost of the
materials and labour to the contractor at site of work plus a certain
percentage of such cost to cover all overheads and profit. This
percentage representing the element of overheads and profits has
been fixed at different levels by different organizations like CPWD,
MES, NHAI, State PWDs etc. For the purpose of uniformity in RITES,
the following procedure may be adopted to work out the Market Rates
for any non-Scheduled item based on a breakup into the elements of
Materials, Labour, Hire / Running charges of Plant & Machinery,
Sundries and Overheads & Profit.
a) (i) Materials (other than Track Works):- The quantity of
materials of different types including permissible wastage
may be determined. CPWD has made out Rate Analysis
for various DSR items. They can be taken for guidance if
the Non Scheduled item is an item similar to a DSR item. In
case there is no similar DSR item, the quantity of materials
will have to be assessed from publications such as Nabhi’s
Compilation of Analysis of Rates or similar publications,
technical literature of manufacturers of specialized
products, experience in execution of similar works in the

30
 past etc. The cost of materials should include the element
of transport to site.
Market rate for materials should be ascertained by getting
at least 3 quotations in writing from suppliers preferably for
delivery and stacking at site. The least rate out of the
quotations, obtained for the lowest accepted/acceptable
make/specification should be adopted and based on the
rates for supply at site and the quantity including
permissible wastage, the cost of the materials to be
arranged by the contractor at site of work can be
determined.
In case of difficulty in getting written quotations due to
reluctance of the suppliers, the rates should be collected
and recorded with name and address of the suppliers by the
concerned officer. Where the rate quoted by the supplier is
for supply at the Dealers’ godown, the element of cost of
transport to site and stacking should be added and this can
be based on DSR rates for similar items increased by the
Cost Index notified by CPWD.
If the Contract is to provide for supply of any materials at a
fixed cost to the Contractor, the cost of materials should be
based on the issue rate at site of work.

(ii) Materials (Track Works):- In the case of Track Works, for

assessing the quantity of different items of Track materials
such as rails, sleepers and fittings, including wastage,
sanctioned estimates for similar works in the recent past by
the Zonal Railways may be taken for guidance.

Market rates for the track materials should be ascertained

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

The least rate from amongst the three or more quotations or

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

31
 If the contract provides for supply of Track materials to the
Contractor, at fixed rate, the cost of Track materials should
take into account such issue rate at site of works. If
materials are to be supplied elsewhere, the cost of transport
and stacking at site of work should be added suitably.

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

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

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

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

i. Rates should be ascertained from at least three different

sources.

ii. Rate should be for casual Labour and should include the
elements of compensation towards weekly rest and
other facilities, if any, such as housing, medical
attention, Insurance etc.
The daily rate to be considered shall be the least of the
rates obtained from 3 or more different sources. It should
be checked if there are any Statutory Minimum Daily Wages
declared by the Central or State Government for that
category of Labour. If there is any such rate, the Daily rate

32
 to be adopted for Market Rate Analysis should not be less
than the highest of the Statutory Minimum Daily Wages laid
down by different Bodies. Based on the Daily rates as
determined for different Categories of Labour and the
requirements in terms of Mandays per Unit of work, the
Labour element can be worked out.

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

different categories unskilled, semiskilled, skilled and highly
skilled for different types of works should be ascertained
from the Zonal Railways. Where recent sanctioned
estimate of Railways for similar work is available, the details
can also be extracted from such estimate. Assessment of
the daily market rate and statutory minimum wages shall be
done in the same manner as indicated in Sub para b(i)
above. If however, such details of manpower category-wise
for different types of works are not readily available from the
Zonal Railways, the Labour element cost per unit of the
particular type of work inclusive of provision for Tools and
Plants can be ascertained from the Zonal Railways for any
recently concluded contract.
c) Hire / Running charges of Plant, Machinery and
Sundries:- If any heavy/specialised Plant / Machinery /
Equipment is required for the work, its hire/running charges
be ascertained.
d) (i) Contractor’s Overheads and Profit:-(Building Works,
Colony roads etc.) For uniformity, this should be taken at
15% of the cost of materials, labour and on hire/running
charges for Plant and Machinery based on CPWD practice.
(ii) Contractor’s Overheads and Profit (Track Works)
The following provisions should be made towards
Contractor’s Overhead & Profit

a) On Track Materials

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

of such material

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

the contractor - @ 5% of cost of such materials.

33
 b) On other than Track Material arranged by the contractor
- @ 15% of the cost of such material.

c) On Labour

If cost of labour has been assessed based on manpower

category –wise @ 15% of cost of labour.

If cost of labour has been assessed based on recently

concluded contract for similar works – no provision need be
made.

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

sundries - @ 15% of the cost of such items.

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

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

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

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

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

30%

(iii) Rehabilitation of bridges –

40%

(v) If DSR items are also adopted in detailed estimate for

Track works, Highway works and Bridge works , the
Contractor’s Overheads and Profit should be taken as given
in Para 4.4.1 (d) (i) above for those items.

34
4.4.2 The Non Scheduled item rate as worked out above, should be
compared with the prevalent Contract rate for same item in the same
area, under other ongoing or recently executed contracts, if such
information is available. This will facilitate a cross check of the
reasonableness of rate as worked out. It should however be ensured
that the Contract rate ascertained is itself a reasonable one
determined on basis of open tender and is not an abnormally high or
low rated item. All records in support of the analysis for Non
Scheduled item rate should be maintained and these will include
quotations for different materials and different categories of labour,
Statutory Orders of Central / State Government on Minimum Wages
for Labour and’ notifications on GST on Works Contract.

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

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

4.4.5 For Non-Schedule items which are specialized or composite in nature

and for which it is difficult to analyse/ derive the rate as per the
provisions of Para 4.4.1, market rates for the items can be assessed

35
 by taking least value of at least 3 quotations obtained for such items.
While obtaining quotations, the nomenclature of the item and required
technical specifications should be given in detailed along with rough
sketch or drawing if required to enable the vendor giving quotation to
understand the item and to quote the rate accordingly.

4.5 DETAILED ESTIMATE - COMPILATION

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

a) Cost of Schedule of Rate items (Published Rates) with

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

c) Since CPWD published DSR 2018 taking into the effect of GST
on Works contracts, market rate analysis for Schedule items
shall be carried out based on prevailing market rates of
Materials, Labour, Hire / Running charges of Plant & Machinery
without GST. For preparing the market rate analysis for
Schedule items, provisions of Para 4.9.2 (a) shall be followed
by deriving the rates based on prevailing market rates of
Materials, Labour, Hire / Running charges of Plant & Machinery
without GST. Market rate analysis for Non- Schedule items shall
be carried out based on prevailing market rates of Materials,
Labour, Hire / Running charges of Plant & Machinery without
GST. The Construction workers Welfare Cess can be added at
the end of the each item rate if applicable in that State in which
work site falls and GST on works contract shall be added at the

36
 end of the estimate for taking the approval of the same from
client/Competent Authority of RITES. However, while working
out the cost put to tender, the GST on works Contract shall not
be included in the cost since there is a provision in Standard
Tender Document of RITES to pay GST on works Contract
separately to contractor. While working out the cost put to
tender, it should be ensured that GST is not included at any
stage ie on input materials, Labour, Hire / Running charges of
Plant & Machinery and also on Works Contract.
The element of Building and other Construction Workers’ cess
as applicable to the State / Union Territory will not be applicable
in the case of supply contracts.
d) Building and other construction workers Welfare Cess at 1% of
cost of items (a) and (b) above. This rate may vary from State
to State and may be modified accordingly.

e) Provision for probable escalation during the contract period

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

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

Rs.1.00 Crore and at 3% on items (a) to (e) subject to
minimum of Rs.5 lakhs in case the total of items (a) to (e) is
more than Rs.1 Crore.

g) RITES’ fee at the rate agreed to between RITES and Client on

items (a) to (f) and GST on RITES fee.

4.5.2 In case of works of specialized nature such as Box Pushing,

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

37
4.6 TECHNICAL CHECK OF DETAILED ESTIMATES

The Detailed Estimate is to be technically checked by the Project

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

a) The Cost Index adopted on the DSR or other schedules items

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

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

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

4.7 SUPPLEMENTARY ESTIMATE

Any modification of a project subsequently becomes necessary, while

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

38
 be got sanctioned by the Competent Authority of RITES for overall
cost after acceptance by the Client.

4.8 REVISED ESTIMATE

When an excess over the Sanctioned Estimate is foreseen and there

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

4.9 MARKET RATE ANALYSIS

4.9.1 Market rate analysis is required to be prepared by the Tender

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

4.9.2 Procedure for preparation of market rate analysis for evaluation of

tenders based on CPWD Practice shall be as under:

a) DSR Items
i) Items constituting about 90% of the estimated cost of the
work should be considered for preparation of market rate
analysis. Items to be considered should be selected which
have higher estimated cost. One should start with items

39
 having the highest estimated amount and next lower in the
decreasing order and so on, till about 90 % of estimated
amount is reached. For each such DSR item, the Market
Rate Analysis should be done strictly adopting the
procedure laid down in CPWD’s Standard Analysis of Rates
without adding GST on works Contract in that item rate. The
Market Rate Cost of each identified DSR item for the
Estimated Quantity of that item should be worked out. The
total Market Rate Cost of all the identified DSR items should
be compared with the total estimated cost of the same
identified items considering the Base DSR 2018 rates
without GST on Works Contract and justified percentage
computed. This justified percentage which may be different
to Cost Index advised by CPWD for the period when
Estimate has been made out should be applied on the base
DSR 2018 Rates for the remaining DSR items contributing
to balance about 10% of the cost of DSR items put to
tender. The rates so derived for balance about 10% items
should not contain GST on works Contract.
ii) Thus the Market Rate Cost of DSR items can be worked out
as under:-
· Identified DSR Items totally costing about 90% of cost of
DSR items put to Tender:-
- Total amount for all such items based on Market Rate
worked out for each individual item as described
above multiplied by Quantity of that item.

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

of DSR items put to Tender:-

- Total amount for all such items based on DSR 2018

Base Rate for each item enhanced by Computed Cost
Index as explained in sub-para (i) above multiplied by
Quantity of that item.

40
 b) Non-DSR Items or Non-schedule Items.

For the Non DSR or Non Scheduled items, the Detailed

Estimate made out as described in Para 4.4 will continue to
hold good, as the procedure envisages Market Rate Analysis.

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

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

41
 SECTION 4 A

PREPARATION OF ESTIMATES FOR SURVEY /GEOTECH/ PLANNING/

CONSULTANCY/ DESIGN ETC.

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

i) From the trend of accepted tenders : The estimated cost may be

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

a) Time lag between the date of acceptance of tenders and the

preparation of estimate. In such cases, the effect of general
escalation in costs due to inflation, can be factored in.

b) Difference in the scope of work between the accepted tenders

and the work for which the estimate is being prepared.

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

order issues etc.

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

ii) By analysis of input costs: The scope of the assignment can be

divided into various items and the estimate can be framed for
each item by assessing the cost of inputs involved like rentals of
survey/geotech instruments, salary of surveyors, engineers, CAD
operators and other skilled/unskilled workers, expenditure on

42
transportation of staff and equipment to site and adding
overheads and profits @ 15% on the cost elements. The quantity
of manhours / months and the salary of engineers/designers etc.
can be assessed on the basis of experience.

43
 SECTION 5

CONTRACTS AND FORMS

5.1 DEFINITION OF CONTRACT

5.1.1 When two or more persons have common intention communicated to

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

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

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

b) Acceptance of the offer, by the other person called the
“Promisee”.
c) Doing of an act or abstinence from doing a particular act by
promisor for promisee called “Consideration”.
d) The offer and acceptance should relate to something which is
not prohibited by law.
e) Offer and acceptance constitute an “Agreement”, which when
enforceable by law, becomes a “Contract”.
f) In order to make a valid and binding agreement, the parties
entering into such an agreement should be competent to make
such agreement.
5.1.4 For the purpose of an Agreement, there must be a communication of
intention between the parties thereto. Hence in the forms of a
Contract there is:
- A proposal

44
 - Communication of the proposal
- A communication of the acceptance of the proposal.
5.1.5 The communication of acceptance of the proposal completes the
Agreement. An offer may lapse for want of acceptance or be revoked
before acceptance. Acceptance produces something which cannot be
recalled or undone. A contract springs up as soon as the offer is
accepted and imposes an obligation upon the person making the
offer. It has been opined by the Ministry of Law that before
communication of acceptance of an offer, the tenderer would be within
his right to withdraw, alter and modify his tender unless there is a
specific promise to keep the offer open for a specific period backed by
a valid consideration.
5.1.6 Amendments to accepted Contracts:-
The conditions and clauses of contract cannot be varied except
through a written Supplementary Agreement with mutual consent of
parties to the contract. This can be done in exceptional cases by the
competent authority as per SOP Item No.7.3 in overall interest of the
project, provided that;

i) Concurrence of Finance and RITES Legal Department is

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

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

45
 (A) Part I–Technical Bid
This consists of following sections
Section 1) Notice Inviting Tender and Instructions to
Tenderers.

Section 2) Tender & Contract Form

Section 3) Special Conditions

Section 4) Schedules A to F

Section 5) Technical Specifications

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

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

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

Section 10) RITES ‘Model Rules for Protection of Health

and Sanitary arrangements for Workers’.
Section 11) RITES Contractor’s Labour Regulations'.

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

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

46
 different sections. In all cases of modifications the sanction of the
Authority Competent to approve deviations from Standard Tender
Documents (SOP Item 2.2) should be obtained.

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

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

5.2.5 Special Conditions

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

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

by Section 8

These will cover modifications to Clauses of Contract (Section

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

(ii) Additional Special Conditions

These will deal with items not covered by “Clauses of

Contract” (Section 8). Since existing Clauses of Contract cover
in detail practically all requirements of a Works Contract, there
may not be the need for many clauses of “Additional Special
Conditions”. But if there are any items, not relating to
Technical Specifications but are required to be included based

47
 on Client’s requirements or Site specific needs, they can be
included under “Additional Special Conditions”.

5.2.6 Technical Specifications

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

i) Standard Specifications:

These are printed documents issued by different

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

ii) Special Specifications

For non-schedule items which are not covered by Standard

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

48
 For Railway Track and Bridge works, for the present, the
details contained in “RITES Specifications for Railway
Track and Bridge works (September 2010)” may be used
with any modification as required for items of works
covered by the Book. Soft copy of these Specifications is
available with Track and Survey wing of Rail Infrastructure
Division at Gurgaon. For items not covered by the Book,
extracts of relevant RDSO or Indian Railway Specifications
or Specifications made out by the Zonal Railways may be
relied upon to draft the “Special Specifications”.

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

5.2.7 Drawings

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

understand the specific scope of work involved and those required for
execution of the work at site for at least the first few months should be
ready and included in the Tender Document.

5.3 LUMPSUM CONTRACT

RITES Standard Tender Documents envisage the works being carried

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

49
 SECTION 6

PREPARATION OF TENDER DOCUMENTS AND PUBLICITY

6.1 TENDER SYSTEM

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

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

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

6.3 LIMITED TENDER

6.3.1 The powers of RITES’ officers for calling of Limited Tenders, subject
to approval by the Client (wherever required, in terms of the

50
 Agreement between RITES and the Client), have been laid down in
SOP. The Powers for nomination of Tender Committee and
acceptance of its recommendations have also been given in
SOP. Decision for calling Limited Tenders in place of Open
Tenders, which should normally be resorted to, should be taken
keeping in view the following:
a) Work is required to be done in urgency and in short period and
/ or
b) The job is of a special nature which could be executed only by
a few special type of Consultants / Contractors who are well
versed with the job.
c) Justification for hiring of consultant should be available on file.

6.3.2 Limited tenders for works

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

working contractors who have substantially completed works
(Billed more than 90% of the awarded value) satisfactorily with the
SBU in the last 5 years, with details like name/nature/value of
work, specifically mentioning the performance in each case. The
list should be prepared/ updated once in a year in the month of
April.
b) Tender enquiry should be sent to all the contractors on the list
who would have qualified had open tenders been invited.
c) For any work of a specialized nature or for any work in an area
where adequate number of suitable contractors are not available,
such list of suitable contractors should be prepared by
ascertaining information/enquiries from offices of Central/State
Government Departments/PSUs operating in the region/Yellow
Pages of Directory. The list should contain at least 6 names.
d) The Limited Tender enquiry must be sent to all eligible
contractors in the approved list under Registered cover /
Acknowledgement due and record kept. A register should be
maintained with details of the contractors to whom the Limited
Tenders have been issued.
e) Notwithstanding provisions above, Open tenders should be
invited in the following circumstances:-

51
 i) In the event of insufficient response to the Limited Tender from
the Contractors borne on the Approved list or
ii) When the minimum of 6 Contractors with requisite experience
in similar type of work are not available for placement in the
Approved list or
iii) When ring formation is suspected.
6.3.3 Limited Tenders for Survey / Design / Investigation / Planning /
Consultancy Jobs.
a) In cases where a SBU requires such services frequently and
Limited Tenders are resorted to for above jobs, a panel of
contractors/sub-consultants should be formed by each SBU.
Panel can be kept valid for three financial years at a time. This
will require an open advertisement in the papers specifying the
general requirement of technical capability and past experience.
For such work, stress may be given to quantum of similar jobs
done over financial capability while calling for Expression of
Interest for enlistment in the panel of Contractors/Sub-
consultants. The advertisement shall be uploaded on the RITES
Website also. The Contractors/Sub-consultants will be advised to
give details of their experience in the specialized field for a period
of at least 5 years with supporting documents and also proof of
their satisfactory financial status. There is no objection if
empanelment of contractors/consultants is done for more than
one category for awarding contracts in different financial limits
provided intention for enlisting in various categories is spelt out in
press notice along with applicable PQ Criterion. The applications
should be called for, atleast three months before the starting date
of Panel life of three years so that the Panel can be finalized well
in time after scrutiny and verification of the documents. The
selected Contractors/Sub-consultants should be advised of their
being placed in the panel and the period of validity of the panel.
b) The Panel of contractors/sub consultants my be reviewed
periodically by the SBU Head for weeding out of such enlisted
contractors/sub-consultants who have not remained active in
RITES or have not performed well. Fresh applications received
from time to time for enlistment, may also be considered
periodically, say after interval of 6 months for inclusion of new
names in the Panel, subject to the fulfillment of PQ Criteria by the
applicants. The empanelment of such contractors/sub-

52
 consultants shall be valid only for residual validity period of the
panel.
c) For Limited Tenders for above types of jobs/works in Difficult
Areas (Northeast States, J & K, Andaman & Nicobar Islands) for
which, if in the opinion of SBU Head, adequate response from
empanelled consultants/contractors is not likely, the panel may
be supplemented by ascertaining information/enquiries regarding
suitable contractors/consultants as per procedure described in
para 6.3.2 (b).
6.3.4 Small value design/drafting/consultancy jobs, specialized studies,
proof checking, Lab testing etc.
These should generally be executed as per SOP Item No. 4 /
11.4.2 / 11.4.2 (a).
6.4 CONTENTS OF TENDER DOCUMENTS
6.4.1 In case of works for which tenders are to be invited, except in cases
where the Client insists upon adoption of a particular format such as
that of CPWD, Railways, World Bank, MES etc, RITES Standard
Tender Document which has been issued separately should be
adopted. Changes in the standard documents are permitted only to
the extent indicated in Para 5.2.4. Any deviations required to General
Conditions of Contract should be included in the Special Conditions of
Contract. In all cases of modifications of the Standard Tender
Documents, specific approval of the Competent Authority (SOP Item
2.2) should be taken before issue of NIT. While putting up the Tender
Document for approval of the Competent Authority, the Project
Coordinator should list out all deviations proposed in RITES Standard
Tender Document and reasons for the same. If, as per contract
between RITES and the Client, the tender document is to be
approved by the Client, no separate approval of Tender Document is
required from the competent authority of RITES. The approval of
RITES competent authority will, however, be necessary if the pre-
qualification criteria is different from RITES standard tender and
contract document for works.
While approving the tender documents, following must be particularly
ensured:

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

ii) Special Conditions, if any, are not repetitive and contradictory.

53
 iii) The Schedule of Quantities (BOQ) is based on the detailed
estimate duly sanctioned by the competent authority.
iv) The BOQ does not have any item with ‘0’ quantity.
v) Set of drawings referred to in the BOQ is available.
vi) Technical specifications of all items of work, specially Non
schedule items have been included.
vii) The Completion Period should be decided keeping in view the
complexity of the nature of work involved and keeping in mind
the requirements of the Client. For multistoried buildings, the
following guidelines laid down by CPWD may be kept in mind
and may be modified based on site constraints. Basement may
be taken as one storey.
a) Upto 4 storeys – 8 to 12 months
b) Beyond 4 and upto 6 storeys – 12 to 16 months
c) Beyond 6 storeys - 16 to 21 months
viii) Clause 36 of Clauses of Contract in GCC stipulates that details
of Technical staff to be employed in the works should be
indicated in Schedule F. The norms being followed by CPWD
in this matter are given in Annexure 6.3 for guidelines and the
same may be adoptedor modified depending on the complexity
of the work by Tender approving authority.. Rates for recovery
for Non-deployment of Engineers to be indicated in Schedule F
are also given in Annexure 6.3
6.4.2 The Project Coordinator should personally ensure that there is no
deviation between the Tender Document to be issued to the Tenderer
and the Document approved by the Competent Authority. The Project
Coordinator either himself or by an authorized representative (not
below the rank of AM) should date and initial all corrections,
particularly in the Schedule of Quantities, Schedule of Materials to be
issued and Specifications and generally in other essential parts of
contract documents, and also date and initial on all pages of the
tender documents irrespective of the fact whether they contain or do
not contain any corrections or overwritings etc. This is to ensure that
any tenderer does not intentionally replace any page of the Tender
Document by his own page.

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

possible.

54
 i) Availability of site, funds and approval of plans from local
bodies.
ii) Confirmation that materials to be issued to the contractor would
be available.
iii) Availability of structural drawings for the foundations and
arrangement for issue of drawings well in advance of actual
requirement at site as per the program of construction.
iv) Layout plan for all services.

6.4.4 When the Tender Document has been made out by the Client for
issue by RITES, it will be the responsibility of the Project Coordinator
to check the same and bring out the deficiencies, if any, to the
attention of the Client and effect modification to the document as
required.
6.4.5 The following should be kept in mind while making out the Tender
Documents.
a) In the Schedule of Quantities (Price Bid) use of symbols such as
% is prohibited. For example Per hundred Sq.metre must be
written and not % sq.metre. The units should thus be more
specific.
b) In the case of Lumpsum Tenders where Detailed Drawings and
Specifications are to be supplied to the Tenderers, it should be
ensured that the Drawings and Specifications are approved by
the Competent Authority. The Cost of the various items forming
part of the work should be correctly assessed with reference to
the relevant Schedule of Rates and in the case of Non Schedule
items, on the basis of rates supported by detailed analysis
thereof.

6.5 INVITATION OF TENDERS FOR COMPONENT PARTS

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

55
 be dealt with by the respective authorities as per powers delegated
even if the overall amount of the project may be beyond the
competence of any such individual authority.

6.6 PUBLICITY OF TENDERS

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

a) For works costing more than Rs.25 Crore

English Hindi/Regional Language

Newspapers Newspapers

Four Hindi dailies, or

Three Hindi dailies and one Regional

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

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

English Hindi/Regional Language

Newspapers Newspapers

One And Two Hindi dailies, or

National daily
One Hindi daily and one Regional
Language daily

56
 c) For works costing more than Rs.50 Lac but less than Rs.5
Crore

English Hindi/Regional Language

Newspapers Newspapers

Two Hindi dailies, or

And One Hindi daily and one Regional

Regional/Local Language daily
edition of

one daily

In case several advertising agencies are empanelled with RITES,

orders on them may be issued by rotation as far as possible.

For works costing up to Rs.50 Lac, while press notification of NIT is

not required, it has to be ensured that NIT is positively uploaded on
RITES’ website.

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

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

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

6.6.2 Action to post the NIT on RITES website will be taken by the IT
division at Gurgaon. Website address must be given in the
advertisement/NIT published in the newspapers.

57
6.6.3 In the case of open tender, complete set of tender documents
including drawings should be posted on the website of RITES in
downloadable form. In case of Limited Tenders involving
Works/Supplies costing over Rs. 10 lakhs, only NIT need be posted
on the website and firms informed individually by Registered post
also. Tenders/applications made on such downloaded document shall
be considered valid for participating in the tender process. In case of
tenders submitted by the tenderers after downloading from the
website, the tenderers shall furnish the cost of documents by separate
demand draft or in any other form as stipulated in the Tender
Document in favour of RITES Limited along with bid document. In
case the cost of documents is not furnished the tender should be
summarily rejected.
Even though the bidder has been permitted to submit his bid in the
documents downloaded from the website, the contract agreement on
award of work should be signed only on the manual copy as issued
originally by the concerned RITES Office.
Suitable provision has accordingly been made in the RITES Tender
And Contract Document 2016 (Physical & Hard copy tenders) and
2018 (E-Tendering)
6.6.4 The advertisement inserted in the Press should be brief but clear in
meaning. The following should be kept in mind.
i) Combined tender notice may be issued for a number of works
to be awarded around the same time by the same SBU.
ii) The Press Notice should indicate the name of work, Estimated
Cost, Earnest Money, Completion Period, cost of the tender
document, RITES Office / website where tender document will
be available, last date for submission of tender, and any other
salient details of interest to the tenderers.
iii) The name of the Tender Inviting Authority should not be
included and only the designation indicated.
Draft specimen of Press Notice for a tender is given at
Annexure 6.4 for guidance.
In case any amendment / corrigendum is required to be issued
to the NIT, there is no need to issue a press notification on the
amendment / corrigendum. But it should be ensured that all
such amendments / corrigenda to NIT as well as the Tender
Document are uploaded in RITES website.

58
6.6.5 The following guidelines are to be followed by the Tender Inviting
Authorities regarding publicity of tenders:-
a) A watch should be kept on publication of advertisement in the
selected newspapers. Newspaper cuttings in each case should
be collected and kept on record as a proof of publicity actually
achieved. Full details of the dates on which advertisements
have actually appeared in the newspapers should be indicated
while sending tender cases to higher officers.
b) It should be ensured that in cases where the tender
document/NIT is to be posted on the website as indicated in
para 6.6.3 above, the actual posting on the website has been
done prior to publication of NIT in the newspapers. A certificate
to the effect that the tender document/NIT as the case may be,
has been posted on the website and the date on which posted,
should be indicated while forwarding tender cases to higher
officers.
6.6.6 In the case of Open Tenders where pre-qualification of the tenderers
has been resorted to, it will be adequate if the NIT is sent by
Registered Post / Acknowledgement due or issued in person after
taking clear acknowledgement, to only the pre-qualified tenderers.

6.7 PRE BID CONFERENCE

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

59
 Corrigenda if any. There is no bar to hold more than one Pre Bid
conference in complex types of works.

6.8 PRE QUALIFICATION OF TENDERERS – JOINT VENTURES

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

6.9 ONE PACKET AND TWO PACKET SYSTEMS

6.9.1 For works costing upto Rs.3 Crores, Single Packet System shall be
adopted with both Technical and Financial Bids opened
simultaneously.
6.9.2 For works costing more than Rs.3 Crores, normally Two Packet
System shall be adopted with the Technical Bid opened first and
evaluated. The Financial Bids of only those tenderers who have
come out successful in the Technical Bid will be opened at a later
date. The Financial Bids shall as far as possible be opened within 30
days of date of receipt of tenders.
However where it is desirable to take up prequalification process
separately first and issue tender documents to only the prequalified
applicants, prior approval of competent authority shall be taken. This
decision is to be taken based on the nature of work, time available
and likely response to the qualification process. There shall be no
objection if P.Q. process is taken up simultaneously for more than one
work, indicating particulars of each work distinctly. In such a case,
applicants need not submit credentials separately for each work. But
applicants have to be judged separately for each work and list of

60
 applicants qualifying for a particular work cannot be adopted for
another work.
6.10 TIME LIMIT FOR PUBLICITY OF TENDERS
The following time limits between the date of uploading of tenders on
website, and the date of opening of the tenders are laid down but this
period may be varied at the discretion of the officer competent to
accept the tenders in terms of SOP. In order to ensure keen
competition, the time schedule given below shall be adhered to as the
minimum. Any reduction in time period shall be only in rare cases if
approved by the Competent Authority under SOP for recorded
reasons.
10 days in the case of works costing up to Rs two crores.

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

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

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

6.11 RE-INVITATION OF TENDERS / EXTENSION OF PERIOD

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

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 SECTION 7

SALE OF TENDER DOCUMENTS

7.1 DOCUMENTS TO BE READY IN TIME

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

7.2 SUPPLY OF DUPLICATE SET OF TENDER DOCUMENTS

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

7.3 TIME INTERVAL BETWEEN SALE OF TENDER DOCUMENTS

AND OPENING OF TENDERS

Any tender form which is issued either for sale or for office use should
be issued under the signature of the Tender Inviting Authority in terms
of SOP or his authorized assistant (not below the rank of AM). In
order to give contractors sufficient time to study tender documents

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 and work out reasonable rates, the tender papers shall be sold as per
following time schedule :–

Receipt of applications for issue of forms will be stopped by 1600

hours 3 days before the date fixed for opening of tenders. Issue of
tender forms will be stopped 2 days before the date fixed for opening
of tenders.

7.4 SCALE OF CHARGES FOR TENDER DOCUMENTS

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

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

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

7.6 PRECAUTIONS IN SALE OF TENDER DOCUMENTS

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

is necessary that tender documents are sold individually and
acknowledgements taken from contractors or their accredited
representatives in the Sale Register of Tenders while handing over

63
tender documents to them. In cases where tender documents are
transmitted by post, these should be dispatched by Registered A.D.
Post or by equivalent means to ensure availability of proof of actual
dispatch of Tender Documents.

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 SECTION 8

RECEIPT, OPENING AND ACCEPTANCE OF TENDERS IN MANUAL /

PHYSICAL FORM
(For E-tendering, Refer Section 29)

8.1 PROCEDURE TO BE ADOPTED

8.1.1 With a view to avoiding the possibility of original Tender Documents

being tampered with, the following procedure shall be adopted in
connection with the receipt and opening of tenders and their
acceptance. Detailed instructions contained in the “Notice Inviting
Tender and Instructions to Tenderers” contained in the Standard
RITES’ Tender Document should also be studied carefully.

8.1.2 Receipt of Tenders

All the tenders shall be received in the office indicated in the NIT
where Tender Box shall be kept. The Box shall be locked and sealed
so that documents dropped in the Box cannot be tampered with. If
the Tender Documents to be deposited are bulky and cannot be put in
the Tender Box, the NIT should specifically indicate the name and
designation of the official /s who will receive the Tender Documents in
person. The nominated official when receiving the Tender Document
should check if it is in sealed condition and give acknowledgement of
receipt to the Tenderers with date and time of receipt. He should sign
on the top of the envelope with the time and date of receipt. Similarly
in case any tender offers are received by post, the official nominated
for receiving the same should send by post the acknowledgement
after checking if the seal of envelope is intact, indicating the date and
time of receipt. He will also record on the envelope the time and date
of receipt and affix his signature thereon. If the envelop can be
accommodated in the Tender Box, he shall drop it in the box. If the
envelope is bulky, he shall keep it in safe custody.
At the time and date indicated in NIT as closing time for receipt of
Tenders, the opening in the Tender Box for dropping of tender will be
sealed with paper bearing the signature of the authorized official along
with date and time.

65
8.2 DELAYED AND LATE TENDERS

Late or delayed tenders are not to be opened or considered at all and

the unopened envelopes should be returned to the tenderer indicating
the reasons for the same.

8.3 INSTRUCTIONS FOR TENDER OPENING OFFICERS

8.3.1 A Tender Opening Committee consisting of two Regular officers, one
from the SBU concerned (not below the rank of Engineer) and the
other from Finance (not below the rank of Accountant) should be
nominated by the Tender Accepting Authority or the SBU Head
(whoever is of the lower rank) for opening the tenders.
8.3.2 The nominated Tender Opening Officers shall report to the Project
Coordinator at least half an hour before the deadline for receipt of
tenders. They should familiarize themselves especially with the
following:–
i) Earnest Money - Amount and Form in which it can be submitted
and Validity Period as given in Section 9 of this Guideline.
ii) Cost of Tender Document and the form in which to be furnished,
applicable in cases where the tender is submitted in the form
downloaded from RITES’ website.
iii) Government policy regarding exemption from payment of Cost
of Tender Document and Earnest Money to a certain class of
bidders. (See Annexure 8.5) and Government policy
regarding exemption from payment of Earnest Money alone
and not Cost of Tender Document to a certain class of bidders
(See Annexure 8.5A).
iv) The benefits under Public Procurement Policy for Micro and
Small Enterprises (MSEs) Order, 2012 are applicable to only
Supply and Service Contracts.
8.3.3 The Tender Opening Officers shall make themselves thoroughly
conversant with the procedure for opening and dealing with the
opened tenders. After obtaining instructions from the Project
Coordinator or the officer deputed by him for this purpose, Tender
Opening Officers shall take out the tenders from the Tender Box.
Before opening the Tender Box, the Opening Officers shall verify that

66
 the seal put on the opening in Tender Box and the seal on the lock for
the door of the Tender Box are intact. If not, the fact must be
immediately brought to the personal notice of the Project Coordinator
for his instructions.
8.3.4 Tenders shall be taken out from the Tender Box and opened at the
time stipulated thereof in the presence of such of the tenderers who
have submitted tenders or their representative who are present.
Tenderers should also be encouraged to be present at the time of
opening of the tenders. The names of the tenderers and / or their
representatives who are present at the time of opening shall be
recorded by the Opening Officers in the register meant for this
purpose and it shall be signed by both of them. While opening the
tenders, no opportunity should be given to any tenderer to repudiate,
amend or explain any rate or condition quoted in the tender.

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

67
 be read out.In case Tender Opening Committee has any doubt
regarding the authenticity or acceptability of the instruments of Earnest
Money and Cost of Tender Documents furnished by a bidder, they
should open the further packets of such bidder, putting on record the
reasons for such doubt and leave the matter for deliberation by Tender
Committee and final decision of the accepting authority.

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

68
 Financial Bid
Schedule of Quantities (BOQ) filled in and signed by the tenderer.
8.3.9 If by any chance there are any pages where any modification has
been done by any tenderer by way of corrections, over writing,
omissions, additions or conditions, such pages should also be signed
with date by both the Opening Officers. While going through the
pages of the Tender Document issued by RITES, the Tender Opening
Officers should also check if each page bears the signature of an
official of the office of Tender Inviting Authority.

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

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

8.3.12 The total number of such corrections, over writings, omissions,

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

69
 put and at bottom of page “Nil” should be written against correction
etc.

8.3.13 Any ambiguities in rates quoted by the tenderer, in words or in figures,

must be clearly indicated on each page of the schedule attached to
the tender to which it concerns.

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

8.3.15 Where the contractors have omitted to quote the rates in figures or in
words, the officers opening the tender should record the omissions on
each such page of the Schedule.

8.3.16 The contractors are required to quote rates in words including paise to
avoid chances of tampering in rates and if the contractor fails to do so,
the Tender Opening Officers should write the rates in words at the
time of opening of tenders under dated initials in addition to recording
the omission on the part of tenderer.

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

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

8.3.19 In the case of Percentage and Lump Sum Tenders, the Percentages
and Total Amount quoted should be read out to the tenderers as far
as possible. In the case of Item Rate Tenders the Rates and the total

70
 amounts worked out by different tenderers may be read out, if
requested by the tenderers present.

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

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

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

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

8.3.23 The serial number of the tenders shown on the envelope shall be
shown along side the initials of the Tender Opening Officers on the
first page of the tender documents, covering letter and also on the
envelope(s) containing the Financial Bid.

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

71
 Tender” should be written against the name of the concerned
Tenderer.

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

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

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

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

8.3.29 Late or Delayed tenders shall be returned unopened to the tenderers

and Tender Opening officers shall mention this fact in the Tender
Opening Register and should be discussed in the briefing note.
8.3.30 On completion of work of opening of tenders the tender Opening
Officers will hand over the tender documents along with EMD
received and Cost of Tender Document if any furnished by any Bidder
who has submitted the Bid in the form downloaded from RITES
website, to the officer deputed by the Project Coordinator concerned.
Both the opening officers and the deputed officer will date and sign in
the Tender Opening Register as token of proper Handing over /
Taking over of the tender documents. Deputed Tender receiving
officer will bring to the notice of the Tender Opening Officers any non-

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 compliance of the above instructions observed by him while taking
over the tender documents.
8.4 EVALUATION OF TENDERS
Following steps shall be required in evaluation of tenders:-
1. Preparation of Briefing Note on Technical Bids by Tender
Briefing Committee and its scrutiny by Project Co-ordinator as
per procedure explained in para 8.5.
2. Evaluation of Technical Bids as per procedure explained in
para 8.6.
3. Verification of authenticity of credentials relating to Work
Experience and any other documents as per tender provisions
submitted by the bidders whose Technical Bids are otherwise
found acceptable. This is a parallel activity to be done
simultaneously with the steps to be taken as per Sl. Nos. 4, 5 &
6 of this para. The project Coordinator concerned, however,
should ensure that before submission of recommendations by
the Tender Committee on financial bid to the Tender Accepting
Authority, verification of authenticity of Credentials/documents
of 'L-1' bidder is completed. The project Coordinator may make
use of fax/email or depute an officer not below the rank of a
Manager for verification of the credentials discreetly and
expeditiously so that tenders are decided within their validity.
4. Opening of Financial Bids as per procedure explained in para
8.7.
5. Preparation of Briefing Note on Financial Bids by Tender
Briefing Committee and its scrutiny by the Project Co-ordinator
as per procedure explained in para 8.8.
6. Evaluation of Financial Bids as per procedure explained in para
8.9.
7. No Post-tender modification by any tenderer shall be taken into
consideration. As regards suo-moto rebate / discount offered
by any tenderer after opening of tenders, provision in Para
8.9.1 and 8.10.9 will be applicable.
8. In case any of the self attested documents turns out to be
misleading or false, the EMD of the concerned tenderer will be
forfeited and Business dealings banned after following the
procedure laid down in Annexure VIII of Section I of RITES

73
 Standard Tender & Contract document. Such tender will not be
treated as a valid tender for the purpose of determining the
lowest tenderer.
8.5 PREPARATION AND SCRUTINY OF BRIEFING NOTE ON
TECHNICAL BID (APPLICABLE FOR BOTH SINGLE PACKET
AND TWO PACKET SYSTEMS)
8.5.1 A Briefing Committee consisting of two members - one from the
concerned SBU (An officer not below the rank of regular Engineer,
preferably AM) and one from Finance (not below the rank of regular
Junior Manager) shall be nominated by the concerned SBU Head or
his representative (not below the level of Project Coordinator) in
consultation with Finance. The committee will take over the tender
opening register and tenders received and go through the same. The
Briefing Committee will prepare briefing note as detailed below and
record the following certificate:
“We have personally gone through the Tender offers and we certify
that the Briefing Note and the Comparative Statement correctly reflect
the contents of the Tender Offers”.
The date up to which the Tenders are valid should be clearly marked
on the forwarding Note to the Tender Committee so as to keep a
watch on finalization of the tender within the validity date of tender.

8.5.2 The Briefing Note will include the following details:–

General
i) Tender No.
ii) Name of work _______________________________________
iii) Whether retender: If so, the reasons leading to retender:-
________________
iv) Reference to Administrative Approval by Client_____________
Sanction for Expenditure by
Client________________________
v) Reference to Technical Sanction of Detailed Estimate by
Competent Authority of RITES (Ref. SOP) or Detailed Estimate
sanctioned by the Client and adopted after checks by RITES

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vi) Reference to approval of Tender Documents including NIT by
Competent Authority of RITES (Ref. SOP) or Tender
Document furnished by the Client and adopted after check by
RITES.
vii) Date NIT published in the News papers (when applicable)
viii) Date NIT / uploaded in RITES website.
ix) Date Tender Document uploaded in RITES website (where
applicable)
x) No. of tender papers sold
xi) No. of tenders, with breakup of those in hard copy supplied by
RITES and those submitted in the form downloaded from
website, received and Earnest Money Deposit envelopes and
Envelopes with Cost of Tender Document (where applicable)
opened.
xii) No. of tenders whose Earnest Money Deposit and / or cost of
Tender Document (where tender has been submitted in form
downloaded) not found in order with the names and addresses
of Tenderers ______
xiii) No. of tenders whose Earnest Money Deposit and Cost of
Tender Document where Tender has been submitted in form
downloaded from RITES website found in order and addresses
of tenderers and Tender No. allotted ______
xiv) No. of Delayed / Late Tenders received to be returned,
unopened, with names and addresses of Tenderers _____
xv) RTGS details of bidders.

Salient Features of Tender

i) Brief Scope of Work

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

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

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

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

d) Deficient documents /information in the Technical Bid.

8.5.3 The Briefing Note should be scrutinized for its completeness by the
Project Coordinator before putting up the same to the nominated
Tender Committee (in cases where he is not the Tender Committee
Member). While forwarding Briefing Note to the Tender Committee, the
Project Coordinator shall also enclose statement of market rates of all

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 major items and peculiar situations/circumstances, if any, relating to
the working conditions in the area where the work is to be executed,
so as to facilitate preparation of Market Rate Cost/Justified Amount, by
the Tender Committee, if required.

8.6 EVALUATION OF TECHNICAL BIDS BY TENDER COMMITTEE

(APPLICABLE FOR BOTH SINGLE PACKET AND TWO PACKET
SYSTEMS)

8.6.1 Tenders are to be evaluated by a Tender Committee consisting of

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

If any member of the Tender Committee as constituted has any

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

a. First check whether any of the tenderers is currently on RITES’

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

b. Then check the Earnest Money Deposit of the Tenderers whose

Technical Bids have been opened to confirm that the same are in
order (unless the tenderers are exempted from payment of Earnest
Money as matter of Government Policy). If the Earnest Money
Deposit is not in order, no further action need be taken for evaluating

77
 the Technical Bids of such Tenderers. Similar action should be
taken with regard to Cost of Tender Document when the tender has
been submitted in a form downloaded from RITES website.

c. The Tender Committee will review the “Authority to sign”, “Integrity

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

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

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

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

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

78
 Enterprise of Central / State Government the Tender Committee may
take action as indicated below, duly furnishing all relevant details to
the Tender Accepting Authority.

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

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

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

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

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 Money and the unopened Financial Bid (in the case of a Two Packet
System).

Such intimation about rejection of their Technical Bids should be sent

before opening of Price Bids from Tenderers whose Technical Bids
have been found acceptable.

8.7 OPENING OF FINANCIAL BIDS

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

8.8 PREPARATION AND SCRUTINY OF BRIEFING NOTE AND

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

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

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

l BOQ item numbers where rates in figures and words as well

as the amount for the item are given by the tenderer but the
amount does not correspond with the rate either in figures
or in words.

l BOQ item number where unit rates in figures and words

agree but the amount for that item has been given wrongly.

Percentage Rate Tender

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

l Percentages are quoted in figures and words but the total

tender amount is not quoted.

l Percentages are quoted in figures and words along with the

total tender amount but the total tender amount does not
agree with the percentages quoted either in figures or in
words

l Percentages quoted in figures and words tally but the total

tender amount has been given wrongly.

b) Conditions stipulated, if any.

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

Total amount Tender amount % above / Remarks

at unit rates quoted by the below (if any)
of RITES for tenderer for all RITES’ Total
all items items amount, as
quoted

8.8.3 The Comparative Statement will be prepared based on the Financial

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

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

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

8.8.6 While forwarding Briefing Note to the Tender Committee, the Project
Co-ordinator shall draw the attention of the Tender Committee to the
statement of market rates of all major items and peculiar
situations/circumstances, if any, relating to the working conditions in

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 the area where the work is to be executed, the details of which were
forwarded to the Tender Committee in terms of para 8.5.3

8.9 EVALUATION OF FINANCIAL BIDS BY TENDER COMMITTEE

(APPLICABLE FOR BOTH SINGLE PACKET AND TWO PACKET
SYSTEMS)

8.9.1 The Tender Committee has to assess the reasonableness of the

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

8.9.2.1 Total Amount quoted by valid L-1 tenderer

This should be compared with the estimated cost put to tender duly
modified by variation in Cost Index in case where there is
documentary proof in change of Cost Index between that adopted for
framing the Estimate and that prevailing on the last date for
submission of tender. When 80% or more of the estimated cost is
based on a published Schedule of Rates, there is no need for
preparing market rate analysis in case the lowest tender is less than
110% of the Estimated Cost put to Tender duly modified by variation
in Cost Index as detailed above and L1 offer can be recommended for
award of work. When less than 80% of the estimated cost is based on
a published Schedule of Rates (say, A%) and the rest of the
estimated cost is based on market rates, or Last Accepted Rates, or
Last Accepted Rates duly modified or assessed rates, then the figure
of 110% specified above, will be suitably modified as under up to
which there is no need for preparing market rate analysis and L1 offer
can be recommended for award of work. -
100 + [10xA + 5x(100 - A)]/100
In case L1 offer is more than the above limit, the following paras will
apply.

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8.9.2.2 Reasonability of the rates of Tender received is to be seen and
commented upon by the Tender Committee. While analyzing tenders,
rates of tenders of similar nature of works accepted within about last 6
months may be ascertained without GST on works Contract. Similar
works shall mean works similar in nature, quantum, specification and
located in the near vicinity. If required, cost based on market rate
analysis may be prepared on the basis of market rates of all major
items and peculiar situations / circumstances, if any, relating to the
working conditions in the area where the work is to be executed, as
furnished by the Project Coordinator in terms of Para 8.8.6 above.
The cost assessed as justified based on value of similar works or on
market rate analysis as the case may be, should be compared with L1
offer and following action may be taken. On methodology for making
out Market rate analysis / justified rate analysis Para 4.9 may be
referred to.

i) When L-1 offer exceeds the justified cost / market rate

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

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

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

In such cases, recommendation to the Tender Accepting

Authority should be for conducting negotiations. If, after
negotiations, the negotiated offer comes within 112% of the

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

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

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

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

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

8.9.2.3 The Convener of the Tender Committee must ensure before

submission of recommendations to the Tender Accepting Authority
that verification of documents/credentials of L1 bidder is completed by
Project Coordinator as per S.No.3 of Para 8.4 and suitable mention is
made thereof in the recommendations of the Tender Committee. In
case, a bidder claims to be covered under the Public Procurement
Policy for Micro and Small Enterprises (MSEs) Order, 2012 (available
at Annexure 8.5 of these Guidelines) and seeks concessions there
under, the Tender Committee should examine the matter on merit and

86
 submit its recommendations to the tender accepting authority. The
benefits under Public Procurement Policy for Micro and Small
Enterprises (MSEs) Order, 2012 are applicable to only Supply and
Service Contracts

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

8.9A EVALUATION OF FINANCIAL BIDS BY TENDER COMMITTEE

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

8.9.1A The Tender Committee has to assess the reasonableness of the

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

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8.9.2A Total amount quoted by valid L-1 tenderer should be compared with
the estimated cost put to tender. The estimated cost should be
prepared on the basis of the trend of tenders for similar works
accepted in the recent past duly updated for factors likely to affect the
cost. In such cases a variation of +/- 25% between the estimated cost
and the L-1 offer will be considered normal and the tender can be
considered for acceptance. Otherwise, the following action should be
taken:
i) When L-1 offer exceeds the estimated cost by more than 25% and up
to 40%, a rate analysis should be called from the L-1 tenderer. On
examination of the rate analysis, if the tender committee feels that the
rates given by the L-1 tenderer are justified, tender may be
recommended for acceptance. If the L-1 offer is higher by more than
40% as compared to the estimated cost, tenders should be
discharged and re-invited with the revised estimated cost.
ii) When L-1 offer is lower by more than 25% as compared to estimated
cost, the bid should be treated as unbalanced. The workability of the
rates should be assessed and commented upon by the Tender
Committee in its recommendations to the Tender Accepting Authority.
For this purpose, the Tender Committee may advise L-1 bidder to
produce detailed rate analysis for any or all items of Bill of Quantities
to demonstrate the inherent consistency of those rates with the
estimated cost. If on evaluation, rate analysis is not found to be
satisfactory, the bidder should be asked to furnish Additional
Performance Guarantee to the extent the total quoted price is lower
than 75% of estimated cost.
8.9.3A The Convener of the Tender Committee must ensure before
submission of recommendations to the Tender Accepting Authority
that verification of documents/credentials of L-1 bidder is completed
and suitable mention is made thereof in the recommendations of the
Tender Committee.
8.9.4A All the members of the Tender Committee should furnish a certificate
in the tender evaluation report that the tenderer recommended by
them is not in RITES negative list of contractors and in case the
tenderer is a JV, the certificate should state that the JV or any
individual member of JV is not in the negative list of contractors.
Further they should certify that none of them has any personal interest
in any of the tenderers who have participated.

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8.10 TENDER COMMITTEE’S RECOMMENDATIONS AND ACTION BY
THE TENDER ACCEPTING AUTHORITY
8.10.1 Where Accepting Authority is Client, recommendation of Tender
Committee may be put up direct to the Client.
8.10.2 The Market Rate Cost/Justification Statement to be prepared by
Tender Committee should be as per accepted norms, current and
realistic. Reasonability of the rates of tenders received is to be seen
and commented upon by the Tender Committee. Market rate analysis
is to be used as one of the means among other things for making
recommendation by Tender Committee and is not binding.
8.10.3 The recommendations of the Tender Committee should be carefully
considered and decision taken on acceptance or otherwise of the
same. In case any clarifications are required from the Tender
Committee the same shall be sought without delay.
8.10.4 In case, after receipt of tenders, it becomes necessary to forward the
tenders to a higher authority for acceptance due to the tender offer of
L-1 going beyond the power of original Tender Accepting Authority on
account of higher quoted rates, while forwarding tenders to the higher
authority, details like (a) validity period of the tender, (b) time already
taken for scrutiny and (c) balance period available should be
prominently indicated to ensure that there is no delay in processing of
tenders and decisions are taken well in time.

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

8.10.6 Where the Contract amount as decided to be accepted goes beyond

the amount approved by the Client, Client’s prior acceptance is to be
taken in light of the provisions in the Agreement between RITES and
the Client.

8.10.7 When tender offer results in exceeding the amount technically

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

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

8.10.9 The acceptance of tender should be unconditional. If however L1,

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

8.11 PURCHASE PREFERENCE TO PUBLIC SECTOR ENTERPRISES

8.11.1 In consonance with the Government instructions contained in OM

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

8.12 ACCEPTANCE OF SINGLE TENDER

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

90
 cases, detailed reasoning for classifying the work as ‘Very Urgent’
should be recorded by the Tender Committee and the Tender
Accepting Authority in terms of SOP should specifically confirm its
acceptance of such a recommendation due to urgency of work.

8.13 PROCEDURE FOR CONDUCTING NEGOTIATIONS

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

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

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

iii) Counter offer to L-1, in order to arrive at an acceptable price, shall

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

8.14 COMMUNICATION OF ACCEPTANCE OF TENDER

8.14.1 The tender for works shall remain open for acceptance for a period of
90 days, or as stipulated in the Tender Document from the last date
of submission of tenders, unless it is got extended with the consent of
Tenderers.

8.14.2 After a decision is taken by the Tender Accepting Authority in favour

of the successful tenderer, “Letter of Acceptance” (LOA) in the
Proforma at Annexure 8.2 should be sent to the contractor through

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 Registered Post Acknowledgement Due or Courier or Fax. It is
important to preserve the proof of sending the LOA and its delivery to
the tenderer. The LOA should, inter-alia, contain instructions to the
tenderer to furnish Performance Guarantee and Additional
Performance Guarantee (if applicable) within the period indicated in
Schedule F and the form indicated in Clause 1 of GCC. A copy of
the LOA (Letter of Acceptance) should also be endorsed to RITES
officials concerned and the following other officers:

i) Labour Officer concerned

ii) Asstt. Labour Commissioner

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

8.14.4 (i) In the Letter of Acceptance (Format at Annexure 8.2)

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

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 to Finance section concerned, it should be clearly mentioned that they
are based on approval of the tender by the Competent Authority of
RITES.

8.14.6 No Letter of Acceptance should normally be issued to the Contractor

till the entire site of work is available without any hindrances and
encumbrances, Local Body’s approval available for use of land for the
purpose proposed by the Client and approval of plans from the Local
Body. In case there are delays or problems in getting a part of site
and the work is to be started on Client’s request, the Client should be
made fully responsible for the resultant liability including possible
Contractor’s claims on this account. The Client should be specifically
advised of this.

8.14.7 No Letter of Acceptance should be issued till sufficient funds are

deposited by the Client. The Works Contract should make a provision
that the payment to the Contractor will be made only on receipt of
funds from the Employer (Client) for and on whose behalf RITES are
entering into the Contract as an Agent / Power of Attorney Holder.
This aspect has been taken care of in the Standard Format of RITES
Tender Documents.

8.14.8 Copies of Letter of Acceptance and Contract Agreement should be

sent to the Client being the Employer. In the Letter of Acceptance
addressed to the Contractor, endorsement of copy to the Employer
should be prominently displayed to draw the attention of the
Contractor to the fact that RITES’ action is for and on behalf of the
Employer as an Agent/Power of Attorney Holder.

8.15 TIME LIMIT FOR FINALIZATION OF TENDERS

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

tenders.

Time limits laid down for various stages involved in finalization of

tenders have been indicated in Annexure 8.4 and should be adhered
to since the validity period of tenders is normally only 90 days from
the last date of submission of tender.

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8.16 REINVITATION OF TENDERS

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

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

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 SECTION 9

EARNEST MONEY

9.1 NECESSITY FOR EARNEST MONEY

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

9.2 RATES OF EARNEST MONEY

The amount of the Earnest Money which a contractor should deposit

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

9.3 MODE OF DEPOSIT

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

9.4 REFUND OF EARNEST MONEY

9.4.1 (i) The Earnest Money of the tenderer whose Technical Bid is found
not acceptable, will be returned as soon as scrutiny of Technical
Bids has been completed.
(ii) After evaluation of the Financial Bids, the Earnest Money of
unsuccessful tenderers whose Technical Bids were found in
order will be returned within 28 days of the end of the Tender
Validity Period.

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 (iii) The Earnest Money of the successful tenderer will be taken as
part of the Security Deposit as stipulated in Clause 1A of
Contract.

9.5 FORFEITURE OF EARNEST MONEY

9.5.1 If any tenderer (a) withdraws his tender before expiry of the validity
period or issue of Letter of Acceptance whichever is earlier or (b)
makes any modifications in terms and conditions of the tender which
are not acceptable to RITES or (c) in case any information/document
which may result in the tenderer’s disqualification is concealed by the
Tenderer or any statement/information/document furnished by the
Tenderer or issued by a Bank/Agency/third party and submitted by the
tenderer, is subsequently found to be false or fraudulent or repudiated
by the said Bank/Agency/Third Party, then RITES shall, without
prejudice to any other right or remedy, be at liberty to forfeit entire
Earnest Money absolutely.

9.5.2 In case the successful tenderer / contractor fails to furnish the

prescribed Performance Guarantee within the prescribed period or
fails to commence the work specified in the tender documents by the
date as mentioned in Letter of Acceptance, or in case any Statement /
information / document furnished by the Tenderer is found to be
misleading or false representation of facts, RITES shall, without
prejudice to any other right or remedy, be at liberty to forfeit whole of
the Earnest Money absolutely.
9.5.3 In case of forfeiture of E.M. as prescribed in 9.5.1 and 9.5.2 above,
the tenderer shall not be allowed to participate in the retendering
process of the work.
9.5.4 In cases where work order / supply order is awarded on the basis of
quotations and a condition for depositing Earnest Money is laid down
in the notice inviting quotations, the following condition shall be
stipulated in the NIQ.
“The quotation for the work / supply shall remain open for a period of
_____ days from the date of opening of quotations. RITES shall,
without prejudice to any other right or remedy, be at liberty to forfeit
entire Earnest Money if any quotationer withdraws his quotation
before that date or makes any modification in the terms and
conditions of the quotation which are not acceptable to RITES, or
furnishes any statements/ information / document found on check to

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 be incorrect or false and to forfeit whole of the Earnest Money if the
quotationer, whose quotation is accepted, fails to commence the work
/ supply specified in the NIQ (along with changes in scope, if any) in
prescribed time or abandons the work / supply before its completion”.
9.5.5 In composite contract for dismantling of existing structure and
construction of new structures, the Contractor shall be required to
deposit caution money equivalent to 50% of the credit likely to be
obtained from dismantled materials before the site is handed over to
the Contractor. This Caution money shall be refunded after the cost
of dismantled material is finally recovered and the site is cleared by
the Contractor.

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 SECTION 10

PERFORMANCE GUARANTEE AND SECURITY DEPOSIT

10.1 PERFORMANCE GUARANTEE

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

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

10.1A Recovery of additional Performance Guarantee

The successful Tenderer is also to deposit Additional Performance

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

10.2 VALIDITY OF PERFORMANCE GUARANTEE

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

10.3 CLAIM UNDER PERFORMANCE GUARANTEE

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

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 good the deficiency to be valid for the same period as mentioned in
Para 10.2.

10.4 REFUND OF PERFORMANCE GUARANTEE

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

Additional Performance Guarantee can be refunded earlier if the

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

10.5 RECOVERY OF SECURITY DEPOSIT

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

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

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 time to time when contract period is extended under provisions of
clause 2 and 5.

10.6 CLAIMS UNDER SECURITY DEPOSIT

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

10.7 VALIDITY PERIOD OF SECURITY DEPOSIT AND REFUND

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

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

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

charge shall make an assessment of the likely recoveries against
the contractor, and order release of as much security deposit as
possible unless he has reasons to withhold the release of full
security deposit to the contractor. These reasons should be
recorded by him in writing.

2) The Engineer in charge shall satisfy himself that the following

formalities are completed by all concerned before exercising his
discretionary power for part payment of security deposits.

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 i) Formalities to be completed by RITES Officers

a) Completion of prescribed test checks of measurements by the

Controlling Site Engineer / Project Coordinator.

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

c) Decision on levy of compensation, etc.

ii) Formalities to be completed by Contractor

a) Acceptance of final measurement recorded by RITES Officers

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

c) Rectification of defects pointed out by RITES Officers during

Maintenance Period.

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

e) Return of surplus materials issued by the Employer immediately

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

3) There should be no need for the Contractor to apply for refund of

the Security Deposit. The case for refund shall be processed by the
Project Coordinator as soon as refund is due.

10.8 MISCELLANEOUS PROVISIONS

10.8.1 Deposits of Contractors including percentage deductions from
Contractor’s bills may be converted, at his cost, into one or more of
the forms of interest bearing securities provided
i) that the contractor has expressly desired this in writing and
ii) that the acceptance of the new form of security is permissible
under the rules as well as under the terms of the agreement.

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10.8.2 Repayment / Retransfer of Security Deposit
Without the special orders of competent authority, no Security Deposit
/ Performance Guarantee should be repaid or re transferred to the
depositor, or otherwise disposed off, except in accordance with the
terms of the agreement.
Note : The depositor’s acknowledgement should be obtained in all
cases of security returned. When an interest bearing security is
returned or re-transferred, the acknowledgement should set forth the
full particulars of the security.

10.8.3 FDRs as Security Deposit

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

c) It may, however be seen that the Fixed Deposits Receipt is

made out in the name of RITES, though Interest accruing at the
time of conversion into BG in terms of Para 10.7 above will be
refunded to the Contractor.

10.8.4 Lump sum Deposits, Recoveries and Release

Once the recoveries become due from the Contractor, the same
should be effected from the money due to the Contractor either from
the same work or from any other work or from the Performance
Guarantee / Security Deposit. Action to recover the overpaid amount
should not be kept pending or be held in abeyance on account of the
case being before the arbitrator. Action in terms of the award can be
taken after the award is received and accepted by the competent

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

The Register will contain the following heads:-

Name of the work:

Date of completion:

Specifications in brief:

Rate paid:

Name of the firm / or registered contractors:

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

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

10.10 SBU’s RESPONSIBILITY FOR PROMPT REFUND OF SECURITY

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

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 SECTION 11

AGREEMENTS / CONTRACTS - ESSENTIAL FEATURES

11.1 GENERAL FEATURES

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

11.1.2 No contract shall be made by a subordinate authority which has not

been authorised to do so under Schedule of Powers. The Powers for
signing of Contracts by officials of RITES have been given in SOP.
The official executing the Agreement on behalf of RITES is
designated as the Engineer in charge.

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

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

of an agreement entered into by RITES should be made without
proper examination of the financial and legal effects involved in

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

11.1.5 The terms of the contract once entered into should not be materially
varied without the previous consent of the authority competent to
accept tender / offer for the contract as so varied in terms of SOP. No
such variation involving payment to contractors by way of
compensation or otherwise outside the strict terms of the contract or
in excess of the contract rates, shall be authorised without the prior
approval of the Client as provided for in the Agreement between
RITES and the Client. A variation of the terms of contract which has
been approved by the Authority Competent to accept the tender shall
be made by writing “executed for and on behalf of RITES” by an
Officer who is authorised to execute the original contract under SOP.

11.1.6 No contract involving an uncertain or indefinite liability or any

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

11.2.1 Competent Authority of RITES (with powers delegated under SOP)

shall sign agreements for execution of works “for and on behalf of
RITES” after the acceptance of tenders by the Competent Authority
under SOP.

11.2.2 There should be no delay in executing the agreement as soon as

tenders have been accepted. The Authority executing the Agreement
should see that conditions not existing in the approved tenders are not
in any case, allowed to be embodied in the agreements. A record of
the agreements drawn up should be kept in the Office of SBU.

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11.3 RECORDING OF DATE OF ACCEPTANCE OF TENDER IN THE
AGREEMENT

11.3.1 The date of acceptance of tender as shown in the Letter of

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

11.3.2 Before signing any Agreement, it must be ensured that no conditions

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

11.4 SUPPLY OF COPIES OF CONTRACTS TO CONTRACTORS

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

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

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

The additional copies should be certified as True Copy.

11.5 CERTIFICATION AND CUSTODY OF AGREEMENTS

11.5.1 The agreements should be properly checked and compared in the

office of the Engineer in Charge or in the Office of SBU concerned,
with the Tender Document as approved by the Competent Authority.

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 The Accounts Section will be held responsible for any mistake which
is found subsequently after the agreement has been formally signed
by the Engineer in Charge. Also, the Engineer-in-charge should
ensure that before copies of the accepted agreements are forwarded
to the authorities concerned, they are complete in all respects.

11.5.2 The original contract documents should be kept in the personal

custody of the Engineer in Charge or the SBU Head till disposal as
provided for in Section 27.

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

11.6 CONTENTS OF AGREEMENTS

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

11.7 SAFE CUSTODY OF CONTRACT AGREEMENT AND RELATED

DOCUMENTS

Originals of all documents forming part of the Contract Agreement and

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

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 SECTION 12

GENERAL GUIDANCE FOR OPERATION OF

CONTRACT CLAUSES

(Note : Clauses referred to in this Section are “Clauses of Contract”

forming part of “Technical Bid” under Section 8 of GCC of “RITES
Standard Tender Document” based on CPWD Practice) .

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

a) Observation of time allowed for completion of the work

b) Payment of compensation by contractor for non-
commencement, not finishing in time and slow progress during
execution.
c) The decision of the Tender Accepting Authority (as stipulated
in Schedule F) being final on the compensation payable by the
contractor.

12.1.2 As explained in Section 13 relating to Extension of time and

compensation for delay, time allowed for completion of the work is
essence of the contract on the part of the contractor. The date for
commencement of the work starts from the date specified in the Letter
of Acceptance. For slow performance or delay in the completion of
the work, compensation, subject to a maximum of 10% of the
tendered value, is recoverable.

12.1.3 The compensation for slow progress or non completion of work in

stipulated time, at the rates specified therein, is an “agreed
compensation” under clause 2, which the contractor has to pay in
case of default. Therefore, there is no choice for the Engineer in
Charge who has signed the Agreement but to recover the same at the
rates mentioned in clause 2 of the contract, if the progress of the work
is slow or the work is not completed in stipulated time. In case the
contractor feels aggrieved, he may appeal to the Engineer-in-Charge
against such recovery, who may refer the case to the Tender

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 Accepting Authority who may uphold the recovery at the original rates
or at reduced rates or completely waive off the same depending upon
the merits of each case. In such cases the decision of the Tender
accepting Authority communicated through the Engineer-in-charge
shall be final and out of purview of the Arbitration Clause.

12.1.4 In case the Contractor does not achieve a particular milestone as

stipulated under clause 5 of the agreement or as re-scheduled, the
amount shown against that milestone shall be withheld automatically
and without notice to the contractor. However, if the contractor
catches up with the progress of the work on the subsequent
milestone, the withheld amount shall be released without any interest.
In case the contractor fails to make up the delay in the subsequent
milestones, the amount mentioned against each milestone missed
shall also be withheld, and may be adjusted against the compensation
that may be levied at the final grant of extension of time. Thus the
compensation levied against failure to achieve one or more
milestones will, on completion of work, be fully refunded if extension
of time is granted without penalty or adjusted against the Liquidated
damages leviable in case extension of time is granted with penalty.
No interest is payable on any withheld amount.

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

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

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

12.1.8 The recovery of compensation should be effected after decision on

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

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

12.2 CLAUSE 3

12.2.1 This clause deals with determination of contract and forfeiture of

Security Deposit etc. This clause is of vital importance. According to
the clause when the contractor has rendered himself liable to action
under relevant clause, the Engineer in Charge on behalf of RITES
shall have powers to determine the contract. Termination Notice
given in writing by the Engineer-in-charge under his signature shall be
considered evidence for the enforcement of this clause. Upon such
determination, the Earnest Money Deposit, Security Deposit already
recovered and Performance Guarantee and Additional Performance
Guarantee (if applicable) shall be liable to be forfeited and shall be
absolutely at the disposal of RITES. The contractor, whose contract is
determined as above, shall not be allowed to participate in the
tendering process for the balance work. The provision of clause 3 can
be applied even after recovery of compensation under clause 2, as
the two clauses are independently enforceable to the full extent.

12.2.2 i) Model forms of letters to be issued by the Engineer in Charge

for and on behalf of the RITES while serving “Show Cause
Notice” as well as “Notice on final action” to the contractor under

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 clause 3 of the Contract have been made out. Copies of these
model forms are at Annexures 12.1 to 12.5. As mentioned in
Para 12.2.1, action under Clause 2 can be taken in addition to
the above action under Clause 3. Para 13.9 may be referred to
in this connection.

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

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

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

12.3 CLAUSE 5

12.3.1 Under clause 2, time is deemed to be of essence of the contract on

the part of the contractor. It is therefore necessary for a contractor to
complete the job within the stipulated period. If the contractor commits

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

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

12.3.3 The period during which the contract remains valid is a matter of
agreement and if the period originally set for the completion of the
work comes to an end, nothing short of agreement of the parties can
extend the subsistence and validity of the contract. When the period
fixed for the completion of the contract is about to expire, the question
of extension of the contract may be considered at the instance of the
contractor or RITES or of both. The extension, in order to be binding,
will have to be by agreement of both parties - express or implied. It
therefore, follows that if the extension of time is granted by the

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

12.3.4 The compensation for delayed performance, on account of which

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

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

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

12.3.5 Though there may be delays and lapses on the part of RITES, at the
same time there are also delays and lapses on the part of the
contractor. For such delays during the stipulated or extended period of
completion, the contractor is responsible and these are also to be
taken into account by the Engineer in Charge while recommending or
granting extension. To safeguard RITES interest, these lapses on the

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 part of the contractor should invariably be clearly mentioned by the
Engineer in Charge while granting / recommending extension of time.
In granting extension of time a balanced view should be taken of the
delays on the part of the contractor, vis-à-vis delays of RITES. The
mention of the delays on the part of the contractor along with that of
RITES would ultimately help RITES in properly defending its position
against the claims of the Contractor for damages.

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

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

Pending consideration of Extension of time by the Competent

Authority of RITES, Running Account Bills may be continued to be

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 paid without prejudice to the right of the Employer to take action for
delays in completion of the work, under the terms of the Contract.

12.5 CLAUSE 8

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

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

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

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

12.5.4 The clause further states that, the certificate of completion shall not be
issued until the work is measured by the Engineer in Charge. The

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

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

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

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

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

(iii) The next step is of issue of Final Completion Certificate which is

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

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

12.6 CLAUSE 10C and Clause 10 CA of CPWD (Both clauses deleted

from RITES GCC – 2016)

12.6.1 Clause 10C of CPWD provides for reimbursement to contractor due

to increase / decrease caused as a direct result of coming into force of
any fresh law or Statutory rule or order in the price of materials

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 incorporated in the works excluding the materials covered under
Clause 10CA of CPWD and / or wages of labour increased or
decreased over prices / Wages prevailing at the time of the last
stipulated date of receipt of tenders including extensions, if any.
Under this clause the Price Variation was applicable for the work
during the contract period including the justified period extended
under the provisions of clause 5 of the contract without any action
under clause 2. The increase should not be attributable to any delay
in the execution of the contract within the control of the contractor.

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

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

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

12.7 CLAUSE 10 CC (Based on the earlier version of CPWD GCC 2008

with Clause 10CC applicable as a Stand alone Clause not linked
to Clause 10CA)

12.7.1 This clause provides for compensation in case of increase in price of

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

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

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

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

Category of work Cement+Steel+Material Labour POL

1. Buildings 75% 25% —

2. Road Works & Pavements 90% 5% 5%

in Air fields

3. External Sewerage 90% 10% —

4. External Water Supply 95% 5% —

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

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

percentage of component of bitumen may be mentioned distinctly.

The above percentage components are suggested only for normal

types of works with ordinary/ hard soil strata etc. Where the soil
strata is pre-dominantly rocky, involving heavy cutting or there are
other special features, percentages may be fixed by the authorities
approving NIT taking into consideration the Detailed Estimate.

12.7.4 In respect of carriage works and for other development works such as
leveling etc. as well as sspecialized types of works, the Tender
Document approving authority may decide on the details of

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 components to be considered and the percentages applicable for
each. In all cases, the components and the percentages as appearing
in the Contract will be applicable for working out the amount payable
to / recoverable from the Contractor towards Price Variation,
irrespective of the variation in components or percentages as
observed during the actual execution of work.

12.7.5 The contractor shall be required to prepare the statements of

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

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

12.7.7 `The Engineer-in-Charge shall ensure before sanctioning any amount

under Clause 10CC, that such compensation for escalation in prices
and wages shall be available only for the work done during the
stipulated period of contract including the justified period extended
under the provision of Clause 5 of the contract without any action
under Clause 2. However, for works executed during the justified
period extended as above, the compensation towards price variation
will be limited to the indices/wages prevailing at the time of stipulated

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 date of completion or as prevailing for the period under consideration,
whichever is lower. Monthly Wholesale Price Index for Grey Cement,
Steel (Rebars), All Commodities and High Speed Diesel as published
by Economic Advisor, Ministry of Commerce and Industry,
Government of India as well as higher amount of Minimum Daily
Wages of unskilled adult male mazdoor specified by the Government
of India or Local Administration for the periods as stipulated, should
be ascertained by Engineer-in-Charge with relevant copies of official
documents kept on record. Where final indices/Minimum Daily Wages
are not available at the time of preparation of bill for Price Escalation,
provisional indices etc. may be used initially and the adjustments in
amount payable carried out through subsequent bills when the final
indices etc. are available.”

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

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

rates; and

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

market rates.

As per Clause 12 of GCC, Substituted Items are derived from

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

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 which is payable @97% of contract rate. However, no escalation will
be payable on the deviated quantities paid at market rates.

12.8 CLAUSE 12

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

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

i) Instructions must be given before any additional or substituted

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

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

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 under the relevant clause about the propriety or otherwise of such
period of extension.

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

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

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

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

12.8.6 Special care should be taken while agreeing to omissions or

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

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

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

ii) The Contractor is to apply for revision of rates supported by

analysis within 15 days after receipt of such communication.

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

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

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 v) It should be noted that the whole operation of Clause 12 is for
deviation in works which appear necessary in the execution of work
specified in the scope of work and not for carrying out major
modifications in Scope of Work, which should be taken care of by
either placing a Repeat Order as per provisions of para 17.8 or by
fresh tender.

12.9 CLAUSE 14

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

In the course of execution of work by the Contractor, the following

situations may arise.

i) The Contractor defaults in carrying out any or all of his

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

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In case of Termination of Contract under item (i) above, the
procedure to be adopted has been stipulated in Clause 3 of
Contract. The Contractor is to be issued a Show Cause
Notice as per Proforma at Annexure 12.1, 12.2, 12.3 or 12.4
as applicable and a Notice of Termination as per Proforma at
Annexure 12.5.

In case of foreclosure of whole or part of the contract, the

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

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

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

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

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

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 Clause 13 is to be applied where the Employer decides to
foreclose the full or part balance of the work since it is not
required to be carried out. Since there is no fault of the
contractor, the contractor is monetarily compensated though to
a limited extent only, to take care of his loss.

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

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

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

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 acceptable to RITES. Instructions on payment for substandard work
may be seen in Section 14 of this Document.

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

12.10A CLAUSE 21

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

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

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

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

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12.11 CLAUSE 36

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

12.11.2 Certain administrative instructions as regard this clause are given as

under:-

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

himself an Engineer / Overseer, it is necessary on his part to
employ Engineer/ Overseer for the supervision of the work as
per stipulation.
ii) The Retired Engineers / Asst. Engineers who are holding
Diplomas may be treated at par with Graduate Engineers for
the operation of the above Clause. Diploma holder with
minimum 10 year relevant experience with a reputed

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 construction company can be treated at par with Graduate
Engineers for purpose of such deployment subject to the
condition that such diploma holders should not exceed 50% of
requirement of Graduate Engineers.
iii) Engineers deployed as per stipulation in the contract shall look
after only the work under contract and no other work and shall
be available fully during execution of the work
12.11.3 Requirement of technical staff for a work shall be decided and
stipulated in Schedule ‘F’ as per guidelines given at
Annexure 6.3. However, requirement of technical staff and their
experience can be varied depending upon the nature of work and in
case of composite works by Tender Approving Authority.

12.12 CLAUSE 42

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

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 reasonable compensation for breach of the contract relating to the
excess issue of cement and steel, not returned by the contractor.

12.12.2 In order to operate the provision of this clause effectively it is

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

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

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12.12A CLAUSE 45A

Some State Governments have enacted legislation holding the

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

12.13 Clause 47

12.13.1Clause 47 of GCC prescribes that the contractor has to arrange

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

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

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12.14 PROFORMA FOR NOTICES TO CONTRACTOR UNDER VARIOUS
CLAUSES OF CONTRACT AND FOR COMPLETION
CERTIFICATES
Annexures 12.1 to 12.10 as detailed below give the Proforma of
Notices to be issued to the Contractor under various Clauses of
Contract. In these Proformae Engineer in Charge represents the
official of RITES who has signed the Works Contract with the
Contractor and Site Engineer is “The Engineer” as defined in clause 2
(vi) of Section -7 (Conditions of Contract) in RITES Standard Tender
Document which implies that Controlling Site Engineer who is in
charge of the work at site on behalf of Engineer in Charge.

Sl. No. CONTENTS ANNEXURE No.

1 Notice under Clause 3 (i) for rectification / 12.1
reconstruction / replacement of defective work
2 Notice under Clause 3 (ii) for restarting of 12.2
work / proceeding with the work with due
diligence
3 Notice under Clause 3 (iII) to accelerate the 12.3
pace of works to complete it within the
stipulated time
4 Notice under Clause 3(Iv) to carry out the 12.4
specified obligations under the Contract
5 Notice under Clause 3 for Determination of 12.5
Contract
6 Notice under Clause 13 for Foreclosure of 12.6
Contract
7 Show Cause Notice under Clause 14 for 12.6A
taking out part work
8 Notice of action under Clause 14 for taking 12.6B
out part work
9 Notice under Clause 17 for rectification of 12.7
defects during Maintenance period
10 Proforma for Provisional Certificate of 12.8
Physical Completion under Clause 8
11 Proforma for Final Completion Certificate 12.9
under Clause 8
12 Proforma for Notice to the State Government 12.10
Authorities under Clause 45A

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 SECTION 13

EXTENSION OF TIME AND COMPENSATION FOR DELAY

13.1 GENERAL PRINCIPLES

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

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

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

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

13.1.5 The Tender Approving Authority shall approve the time schedule to be
stipulated for milestones in Schedule ‘F’ in the tender document. The
Engineer in Charge shall as far as possible review the progress of
work each month with all the concerned disciplines including the

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

13.2 REQUIREMENTS OF CLAUSE 5

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

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

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

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13.4 GRANT OF EXTENSION OF TIME WITHOUT APPLICATION
13.4.1 Based on Hindrance Register where adequate and proper grounds
exist, the Engineer in Charge can grant extension of time even in the
absence of application from the contractor under Clause 5.

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

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

13.4.3 The recovery of liquidated damages for delayed performance, on

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

13.5 FORM OF APPLICATION FOR EXTENSION OF TIME

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

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

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 hindrance and weight age of each hindrance and the items of work
affected due to the hindrance. Alternatively, he may delegate such
authority to the Controlling Site Engineer. In such cases, the Project
Coordinator must review the Hindrance Register during each visit.

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

13.5.4 Although the Contractor is required to seek extension as soon as

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

13.6 PROCEDURE FOR GRANTING EXTENSION OF TIME

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

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

13.6.3 The decision in regard to levy of Liquidated Damages for delay in the
execution of works in terms of Clause 2 of the Contract should not be
recorded in the Measurement Book of the work concerned.

13.6.4 The contractor’s application should be processed and approval of the

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

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 only after approval of the competent authority and of client, in case
the contract with client requires so.

13.7 COMPENSATION UNDER CLAUSE 2

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

13.8 SECTION 74 OF THE INDIAN CONTRACT ACT, 1872

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

13.8.2 According to clause 5 of the Contract all letters of extension of time to

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

13.9 PROFORMA FOR INTIMATING THE CONTRACTOR ON LEVY OF

COMPENSATION UNDER CLAUSE 2

While Clause 2 of Clauses of Contract stipulates that withholding of

amount for failure to achieve any milestones shall be automatic
without any notice to the contractor, in case action is proposed to levy
liquidated damages, this will require a show cause Notice to be
served on the contractor in the Proforma at Annexure 13.4. This

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

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 SECTION 14

PAYMENT FOR SUB-STANDARD WORK

14.1 PROCEDURE FOR ACCEPTANCE OF SUB-STANDARD WORK

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

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

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

14.2 ACCEPTANCE OF SUB-STANDARD WORK

14.2.1 Acceptance of work below specifications and payment of reduced

rates should be resorted to with the approval of the competent
authority (Authority competent to sanction rates for Non Schedule
items. Item 8.3 of SOP) only for those items where it is structurally
impossible to get the work redone. Normally, sub-standard work must

141
be got rectified and if necessary redone. Acceptance of sub standard
work at reduced rates should be done only under exceptional
circumstances as they reflect poorly on the professional competence
of the field staff and adversely affect the image of RITES. Total value
of items at agreement rate, for which the sub-standard work can be
accepted in a contract shall not exceed 5% of the contract value for
contracts upto Rs. 20 crores and 3% of the contract value for
contracts above Rs. 20 crores or Rs.1 Crore whichever is higher.
Before a sub-standard work is accepted by RITES, the Engineer in
Charge after getting prior approval of competent authority should write
a letter to the contractor for and on behalf of RITES regarding
acceptance of the same and the provisional rates pending the
decision of the competent authority (Item 9.1 of SOP) with regard to
final rates. In reply to this letter the contractor should send his
consent for acceptance of the terms specified by RITES. For this
purpose two forms as per Annexures 14.1 and 14.2 may be used.
The decision of the Competent Authority (Item 8.3 of SOP) regarding
the quantum of reduction as well as justification thereof in respect of
rates for sub standard work which may be decided will be final and
would not be open to arbitration under Clause 25 of the agreement.

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 SECTION 15

ISSUE OF MATERIALS TO CONTRACTORS

15.1 ISSUE OF MATERIALS TO BE AN EXCEPTION

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

i) Issue to Contractor:

Issue of materials to contractors with whom agreements in

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

ii) Issue direct to works:

Issue of materials when work is done through a contractor

whose agreement is for labour only.

2) The issue of materials to contractors is to be stipulated in

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

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

supply of imported materials.

ii) When, in the interest of work, or with the object of utilizing

existing stocks or materials, it is desirable to retain in the
hands of the Employer the supply of certain other materials as
well, and a condition to this effect has been inserted in the
contract.

3) Stipulation of materials to be issued by the Employer

i) Stipulated materials shall be issued for use at site on works,

for all the items where such materials are required. Factory
made products like pre-cast cement tiles, pre-cast hollow
concrete blocks, pre-cast foam concrete blocks, pre-cast RCC
pipes etc., should not normally be stipulated for issue.

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

iii) The contract should specify:

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

work,

b) the place or places of delivery, and

c) the rates to be charged to the contractor for each description

of materials.

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

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

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

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

vi) The contractor should be held responsible for obtaining from

the Employer all such materials required for the work, and for
making payment for them by deduction from his bills at the
rates specified, regardless of fluctuation in the market rates or
in the stock rates of the Employer.

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

so explicit that no doubt or ambiguity is left which may
encourage the contractor to derive undue financial benefit
subsequently. The tender documents should include the

144
 specific items of work for which materials are intended to be
issued by the Employer with detailed description of materials.

4) Stipulation of free issue of materials-

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

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

5) In the receipts obtained from the contractors for the materials

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

6) Drawing of stipulated materials by the Contractor

It is not permissible for the contractor to obtain the materials

otherwise where the contract stipulates the issue of materials by
the Employer, unless in a case of emergency the supply has been
entrusted by the Engineer-in-charge for recorded reasons to the
Contractor himself at suitable rates.

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 7) Stipulation of materials that are not available

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

15.2 ISSUE, SUPPLY AND RECOVERY OF COST OF MATERIALS

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

15.2.2 The theoretical consumption statement for consumption of cement on

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

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

observed:–

a) The cement godowns should be properly and effectively double

locked, keys of one of the locks remaining with RITES and that
of the other with the contractor.
b) The pages of cement register should be as per Annexure 20.5
machine numbered and each page initialed by Site Engineer.

146
 The cement godown and the register should be checked by the
inspecting officials during their visit.
c) For additional safeguard, the following instructions should be
followed:
i) For all major works using cement, the contractor shall distinctly
display on a board at the cement store indicating the opening
balance on a particular date, receipt during the day, issue
during the day and closing balance at the end of the day (The
entries for receipts and issues shall be updated immediately on
physical receipt and physical issue and also at the end of the
day).
ii) While issuing an indent for fresh cement / steel, the balance
material available at the site should be checked. The Site
Engineer must record on the body of the indent, the balance of
such material available at the time and date of issue of the
indent which should be taken into account for further issue to
the Contractor.
iii) The cement / steel and other materials received on any
particular day, shall not be used in the work or transferred to
any other work for 24 hours from the time of receipt at site, to
facilitate physical check and verification by the Site Engineer.
Cement already available in the store at site should be
consumed first, before issue from the new consignment.
Similarly new steel items should be stacked in countable shape
before these are used, to facilitate physical check. The principle
of first in and first out in issuing cement bags should be strictly
followed.
iv) The recovery from the contractor shall be regulated as per
Clause 42 of the
contract.
15.2.4 For making comparison of the actual consumption of steel with the
theoretical consumption, each diameter of steel bars should be
treated as an individual item and check on theoretical consumption
should be applied to each diameter.

15.2.5 Theoretical consumption statement for steel bars should be prepared

along with every running bill. Should there be any case of issue being
less or just equal in any particular diameter / section than the actual

147
 consumption, this should be properly investigated. If such issue
diameter wise / section wise or in total is very much higher than the
consumption, it should be generally ensured that balance steel is
available at site in good condition and this should be certified by the
Site Engineer. Any serious discrepancies noticed should be reported
to the Engineer in charge.

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

15.3 ISSUE RATES

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

15.3.2 The recovery from a contractor on account of the cost of materials

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

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

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

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15.4 RETURN OF SURPLUS MATERIALS

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

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

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 The excess consumption of materials beyond permissible limit as
given in Clause 42 of the contract will be recovered at normal
stipulated rate + 10% unless any other rate has been stipulated in
Schedule F.

15.5 INSTRUCTIONS REGARDING STORAGE OF CEMENT IN

GODOWNS

15.5.1 The provisions of para 3.1.2.2 of CPWD Specifications Volume 1

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

15.6 ISSUE OF MATERIALS AGAINST BANK GUARANTEE

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

15.7 RECOVERY TOWARDS MATERIALS ISSUED FOR

RECTIFICATON OF DEFECTS / REDOING WORKS

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

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

15.7.2 If, however, it becomes necessary to issue cement for rectification of

defects or for redoing works necessitated due to natural calamity

150
beyond the control of the contractor, i.e. floods, earthquakes, etc such
issues should be treated as legitimate consumption on works and
should not be charged at rates higher than the issue rates. On the
question whether redoing of work of rectification of defects had, in a
particular case, been necessitated by natural calamities etc the
decision of the Engineer in Charge will be final.

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 SECTION 16

MATERIALS ARRANGED BY CONTRACTOR AND

MANDATORY TESTS

16.1 GENERAL PRINCIPLES

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

16.1.2 The following general principles are required to be followed in the

cases of material arranged by the contractor:–

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

specifications laid down and referred to in the contract.
ii) Whenever materials are available in the market as per Indian
Standard Specifications laid down by Bureau of Indian
Standards, the contractor should arrange for only materials with
ISI marking. In case of materials for which IS specifications
have not been laid down, the contract will specify the
specification such as British Standard, American Standard etc.
to be complied with and where nothing is laid down in the
contract, the specifications will be laid down by the Engineer-in-
Charge. The Contractor should arrange for the materials as per
the specifications indicated in the contract.
iii) If the contract stipulates in the case of materials like cement,
steel etc the desirable brand names, the contractor should
arrange the materials of one of the brands recommended.
Where there is difficulty in arranging such procurement, the
contractor will take prior approval of the Engineer in Charge for
procurement of other brands. If brands are to be specified,
minimum three brands of equivalent prices may be specified in

152
 general subject to materials under these Brands being easily
available in the area of work. For major items like cement and
steel, atleast four and if possible more, major reputed brands of
equivalent prices may be specified. In the case of specialized
items like Steel / Aluminium Doors / Windows, they should be
got fabricated from reputed workshops.

iv) The theoretical consumption of materials like cement, steel

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

v) Before start of work, the contractor shall at his own expense

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

vi) When the work is in progress, for the materials like cement and
steel, the contractor should continue to arrange to supply to the
Engineer-in-Charge the test certificates from the
manufacturers.
vii) The Site Engineer will ensure that the mandatory tests are
carried out as stipulated in subsequent para 16.2 for the
stipulated materials / products. These tests are to be carried
out in the field or laboratory as indicated against each item. The
cost of materials / products and the entire cost of testing will be
borne by the contractor.
viii) In addition to the mandatory tests, the Engineer-in-Charge may
require other non-mandatory tests to be carried out on the

153
 materials / products. In all such cases, the contractor shall
supply the samples free of cost. The cost of such tests,
wherever carried out, however shall be borne by the
contractors/ RITES in the manner described below, unless
otherwise specified in the Conditions of Contract.
a) By the Contractor, if the results show that the material /
product does not
conform to relevant BIS Codes or other Specifications as
laid down in the
Contract.
b) By RITES, if the results show that the material / product
conforms to relevant BIS Codes or other Specifications as
laid down in the Contract.

ix) Whenever the Head Quarters officers or SBU Heads inspect

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

16.2 MANDATORY TESTS - CPWD SPECIFICATIONS

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

154
Chapter No. of Subject Material Annexure
CPWD
Specifications

3 MORTARS i)WATER 16.1

ii) CEMENT

iii) SAND

iv) FLY ASH

4 CEMENT i) STONE AGGREGATE 16.2

CONCRETE
ii) CONCRETE

5 REINFORCED i) NOMINAL MIX 16.3

CEMENT
ii) DESIGN MIX
CONCRETE
iii) READY MIX

iv) STEEL

6 BRICK WORK i) BRICKS / BRICK 16.4

TILES

ii) SEWER BRICKS

iii) BURNT CLAY

PERFORATED
BUILDING BRICKS

8 MARBLE WORK i) MARBLE 16.5

ii) GRANITE

9 WOOD WORK i) TIMBER 16.6

ii) FLUSH DOOR

iii) MORTICE LOCKS

10 STEEL WORK i) STEEL 16.7

ii) STEEL TUBULAR

PIPES

155
 11 FLOORING i) TERRAZO TILES 16.8

ii) PRESSED CERAMIC

TILES

16 ROAD WORK i) COARSE 16.9

AGGREGATE

ii) FINE AGGREGATE

iii) BITUMEN

iv) EMBANKMENT
UNDER OMC
CONDITIONS

v) BITUMINOUS
MACADAM

vi) BITUMEN MASTIC

WEARING COURSE

vii) DENSE BITUMEN

MACADAM

viii) CEMENT
CONCRETE
PAVEMENT (UNDER
CONTROLLED
CONDITIONS)

ix) FINE AGGREGATE

16.3 DESIGN MIX CONCRETE - ACCEPTANCE TEST

In chapter 5 of CPWD Specifications on Reinforced Cement Concrete,

Mandatory Tests have been laid down for “Design Mix”. In terms of
Clause 9.3 of IS 456-2000, Nominal Mix Concrete may be used only
for Concrete of M 20 or lower. For Concrete of higher strength,
Design Mix Concrete has to be necessarily used. For “Designed
Concrete Mix”, it is necessary to carry out 28 days Compressive
strength tests to check if the Concrete complies with the Acceptance
Criteria as laid down in IS 456-2000. A copy of the relevant extracts

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on “Sampling and Strength of Designed Concrete Mix” from IS 456 of
2000 is at Annexure 16.10. Number of samples of Concrete to be
taken out for testing depending on quantity of Concrete of a particular
Grade produced in a batch, has been indicated in Clause 15.2.2 of IS
456-2000. As mentioned in Clause 15.3, three test specimens
(Cubes) shall be made for each sample for testing at 28 days. As
given in Clause 15.4, the test results of each sample shall be the
average of the strength of three specimens. The individual variation
should not be more than + or - 15 percent of the average. If more, the
test results of the sample are invalid. The Acceptance Criterion on
Compressive Strength has been indicated in Clause 16.1 of IS
456:2000. In terms of this, the concrete shall be deemed to comply
with the strength requirements when both the following conditions are
met.

a) The mean strength determined from any group of four

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

i) Compressive strength of each individual Cube A1, A2 and A3

should not vary by more than + or - 15 Percent of average
Compressive Strength of the three Cubes A1, A2 and A3 (say)
Am. Similarly for Cubes B1, B2, B3; C1, C2, C3 and D1,D2, D3.
ii) Mean Compressive Strength of four samples A, B, C & D
(Average of Cube Strength Am, Bm, Cm and Dm) should
comply with the limits in Col. 2 of Table 11 of IS 456:2000.
iii) Am, Bm, Cm and Dm should each comply with the limits in Col
3 of Table 11 of IS 456-2000.

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16.4 NOMINAL MIX CONCRETE - ACTION IN CASE OF FAILURE OF
CONCRETE IN MANDATORY CUBE TESTS
Action to be taken shall be as indicated in Clause 5.4.10 of Chapter 5
of CPWD Specifications (Copy at Annexure 16.11.)

16.5 DESIGN MIX CONCRETE - ACTION IN CASE OF FAILURE OF

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

158
 SECTION 17

EXTRA, SUBSTITUTED AND DEVIATED ITEMS OF WORK AND

PLACING OF REPEAT ORDERS

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

17.2 PRIOR SANCTION OF COMPETENT AUTHORITY NECESSARY –

DEVIATED QUANTITY

17.2.1 No deviation in the quantity of any item as stipulated in the BOQ

should be made at site without the prior in-principle approval of the
competent authority (Ref. SOP)

17.2.2 The Site Engineer in charge of the work shall be responsible to

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

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

159
17.2.4 Pending approval of the Competent Authority for revised rate payment
for the work done in excess of the quantity upto which unit rates
have been specified in Clause 12.2 of GCC will be allowed by the Bill
paying authority only at 75% of the Contract (BOQ) rate for that item.
Efforts should be made to obtain the approval of competent authority
expeditiously for the revised rate applicable to such quantity so as to
regularize the payment to the Contractor.

17.3 EXTRA / SUBSTITUTED ITEMS

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

17.3.2 Substituted items are items which are taken up in lieu of those already
provided in the contract. These are generally with partial modification
in items of work in the contract. If an agreement item is completely
changed, the new item taken up in lieu of it is an Extra item.

17.3.3 Wordings of extra / substituted items sanctioned by competent

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

17.3.4 No extra / substituted item should be executed without the prior in

principle approval of the Competent authority as per SOP.

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

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

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

160
17.4 FIXATION OF RATES FOR DEVIATED / EXTRA / SUBSTITUTED
ITEMS
Rates in all these cases are to be worked out at market rates by the
contractor along with proper analysis.

For checking the reasonableness of rates submitted by the Contractor

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

17.5 RATES FOR DEVIATION (EXTRA / SUBSTITUTED/ DEVIATED

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

i) Office Expenditure of the contractor

ii) Storage of materials
iii) Handling expenses and other incidental charges

The percentage does not include transport charges

17.6 MEASUREMENTS FOR INADMISSIBLE ITEMS

In case of items which are claimed by the contractor but are not
admissible according to RITES, measurements should be taken and
recorded in the site register for record purposes only under the
signature of RITES official concerned and without prejudice so that in
case it is subsequently decided to admit the contractor’s claims, there
should be no difficulty in determining the quantities of such work done.

161
17.7 DEVIATIONS IN QUANTITIES OF BOQ ITEMS

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

Following DLs are recommended to be stipulated in Schedule F.

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

17.8 PLACING OF REPEAT ORDERS

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

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

i. Repeat Order may be given to an existing

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

162
ii. Repeat Orders may be placed on the same party, with
finance concurrence, on the same rates, terms and conditions
as stipulated in the original contract. No repeat orders are
permitted in case the original contract is entered into on the
basis of a single tender.

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

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

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

vi. If the Price Variation Clause is applicable in the original

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

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

viii. The competent authority for award of Repeat Order shall be

the same as the authority which accepted the original tender.

ix. In case of Works Contracts, repeat orders can be placed only

when the additional work is to be carried out at the same site
as the original work or at a site in close vicinity. This
restriction does not apply to services/supplies contracts.

163
 SECTION 18

FAIR WAGE CLAUSE AND CONTRACTOR’S

LABOUR REGULATIONS

18.1 PROVISIONS OF ACT

As required under Section 2 (i) (g) of the Contract Labour (Regulation

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

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

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

18.1.1 The Contract Labour (Regulation and Abolition) Act, 1970 applies to
every establishment in which 20 or more workers are employed or
were employed on any day of the preceding 12 months as contract
labour and to every contractor who employs or who employed on any
day of the preceding 12 months, 20 or more workmen. The Act also
provides for registration of establishment and Licensing of
Contractors. Accordingly, every Principal Employer is to make an
application to the Registering Officer for registration of the

164
 establishment. Section 9 of the Act lays down that no Principal
Employer of an establishment, required to be registered under Section
7 but which has not been registered within the prescribed time limit,
shall employ contract labour after the date.

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

18.1.3 If a contractor employs 20 or more workmen on any day in the

preceding year, the contractor is legally bound to take licence from the
Licensing Officer concerned.

18.1.4 The fees to be paid for the grant of Certificate of registration shall be
as prescribed under the Act. RITES will have the responsibility to
ensure that the Contractors comply with the legal requirements
mentioned above.

18.2 ACTS / OMISSIONS

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

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

18.3 FAIR WAGES

18.3.1 ‘Fair Wages’ under RITES Contractors’ Labour Regulations means

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

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

18.3.3 The responsibility of identifications of labour rests with the Labour

Officer. He will, however, be afforded all assistance by the Site
Engineers.

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

18.3.5 Normally working hours of an employee should not exceed 9 hours a

day. The working day shall be so arranged that inclusive of interval of
rest, if any, it shall not spread over more than 12 hours a day.

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

18.4 RESPONSIBILITIES OF FIELD OFFICERS

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

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 with a view to see that the contractor is duly fulfilling the conditions of
the contract.

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

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

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

18.5 RESPONSIBILITIES OF CONTRACTOR

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

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

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

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

18.6 DEDUCTIONS TO BE MADE FROM CONTRACTOR’S BILLS

18.6.1 The Labour Officer or other persons authorized as aforesaid shall

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

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

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

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

be made from the wages of labourers.

18.7 PROCEDURE IN CASE OF ACCIDENTS TO CONTRACT LABOUR

18.7.1 In case of fatal accidents or accidents involving permanent total

disability, the accident must invariably be reported to the Engineer in
Charge, with a copy to the Labour Officer, immediately after the
accident.

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 SECTION 19

ARBITRATION AND LITIGATION

19.1 APPLICATION OF ARBITRATION CLAUSE 25 OF STANDARD

CONTRACT FORM

19.1.1 Clause 25 of the RITES STANDARD CONTRACT Form provides for

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

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

19.1.3 RITES staff having to deal with Arbitration cases as Claimant or

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

19.2 APPLICATION FOR APPOINTMENT OF ARBITRATOR

19.2.1 A standard application form for seeking appointment of arbitrator has

been evolved. Contractors seeking arbitration should apply in this
form Annexure 19.1.

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

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

19.2.4 In view of the above, Divisional Head / Director (RITES), before

appointing an arbitrator, should ensure that existence of dispute (s)
has been established. For this purpose the party invoking arbitration
clause should be asked to produce documentary evidence of its
claims having been duly lodged with the other party within the
stipulated time and refusal by the other party thereto to accede to
them. It will be observed from Clause 25 of Contract that the
Contractor has to first raise his claims with the Engineer-in-charge
and if not satisfied with his response, should refer the disputes to
the Appellate Authority. It is only if the contractor is not satisfied with
the decisions of the Appellate Authority that the Contractor can refer
to the Appointing Authority for appointment of the Arbitrator.

19.3 PREPARATION FOR ARBITRATION CASES

19.3.1 The following steps should be taken by the officer nominated by the
Engineer in Charge with a view to properly defend the Arbitration
cases:

i) As soon as a Contractor applies for arbitration, Site Engineer

should prepare a detailed history sheet containing the data
regarding estimate, designs and drawings, NIT, agreement,
extra and substituted items, items accepted at reduced rates,
extension of time / notices issued under clause 3 etc and send
a copy to the Engineer in Charge.
ii) List out important letters in respect of the issues raised by the
contractor and the important notices by as well as to the
contractor and place these originals in a separate file. In the
routine file, true copies of these documents may be placed.

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 iii) Keep original agreements, plans, designs including the
calculations for these, if available, details of measurements and
analysis of rates attached to the technically sanctioned
estimates, all the MBs connected with the work, Hindrance
Register, Site Order Book, Cement Register, Reinforcement
Registers etc. in safe custody of the Site Engineer along with
originals listed in para (ii).
iv) The measurement books should be closed.
v) All the files connected with the work should be properly page-
numbered stitched and sealed and kept by the Site Engineer
along with the above record.
vi) If there are important situations or circumstances, the details of
which are not available on the file but only known to the
executive staff, their signed statements regarding the factual
information should be obtained and kept on record, as after a
lapse of time, they may not be available for personal
discussions or they may be unable to recall past events.
vii) The Site Engineer may call the executive staff in charge of the
work from their new stations for any information that he may
need to collect by personal discussions, but only under orders
from the Engineer in Charge concerned.
19.3.2 If the work has been completed, the final bill should be prepared as
early as possible, in any case before the submissions are made to the
arbitrator. The Engineer in Charge / Site Engineer should ensure that
the bills are finalized immediately, if not already done.

19.3.3 In cases of claims against RITES, the Engineer-in-charge shall inform

the authority with whom Extra / Substituted / Deviations / Reduced
Rate items are pending, about the Arbitration case with a request to
decide on the items urgently. The concerned Authority should ensure
that all such pending items are finalized before Counter Statement of
Facts of RITES is submitted.

19.3.4 A detailed note on the facts of the case dealing with each and every
item of the claims and / or counter claims should be prepared by the
Site Engineer along with reference to various relevant documents
supporting RITES case or negating the Contractor’s claim.

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19.4 PROCESSING OF CONTRACTOR’S APPLICATION

19.4.1 The Site Engineer shall send one copy of the application of contractor
to Engineer in Charge for forwarding to the Competent RITES official
(Ref. SOP) with the under noted information, without waiting for a
reference from the Engineer in Charge, within 7 days from the date of
receipt of Contractor’s application in his office. Engineer in Charge
should send his report to SBU Head / Divisional Head / Director
without delay.

a) An attested copy of relevant arbitration clause.

b) A note regarding verification of the factual data furnished by the
Contractor in the application form.
c) Brief comments on each claim of the Contractor. While giving
such comments, the admissibility of the claims in the light of
arbitration clause, existence of dispute and provisions under
Limitation Act, should be kept in view and commented upon.
d) Statement of Counter Claims of RITES, if any. However, if
counter claims are not readily enlisted or available, comments
on contractor’s claims should not be delayed. Counter Claims
should be supported by full details.
19.5 APPOINTMENT OF ARBITRATOR

19.5.1 The Standard form of appointment letter at Annexure 19.2 is to be

used for appointing an Arbitrator by the Authority.

19.5.2 The person thus appointed shall be the sole Arbitrator and his award
shall be final and binding on all parties to the contract, unless it is set
aside by the Court.

19.5.3 Whenever a notice for appointment of an arbitrator is received from a

Contractor in terms of Clause 25 of Contract, the Authority competent
to appoint the Arbitrator in terms of contract should process the case
so as to appoint an arbitrator within 30 days from the receipt of such a
notice. The time limit of 30 days for appointment of arbitrator should
be strictly adhered to, failing which the Appointing Authority may lose
its right to appoint the arbitrator.

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19.5.4 In cases, where no agreement exists or where no clause exists in an
agreement for referring the matter of dispute to the arbitration by a
person to be appointed by Divisional Head / Director in terms of SOP
Item 9.2 the disputes should not be referred to arbitration by mutual
consent and no agreement should be drawn up for this purpose.

19.5.5 The authority of an appointed arbitrator does not become revocable

except with the order of the court. It shall not be revocable by the
death of any party or parties to the contract.

19.5.6 The draft letter for appointment of new arbitrator due to transfer or
vacation of office by the old arbitrator shall be as per Annexure 19.3.

19.6 ACTION SUBSEQUENT TO APPOINTMENT OF ARBITRATOR

19.6.1 When the Arbitrator enters into reference and writes to the parties to
the contract to file the statement of facts and counter statement of
facts before him, the Site Engineer should take prompt action to
prepare the defence duly supported by adequate documentary
evidence and witnesses and arrange for submission to the Project Co-
ordinator who shall finalise the defence statement with the approval of
the Engineer in Charge and send to the Arbitrator by the date
specified by him.

19.6.2 Site Engineers should deal with submission of Counter Statement

through Project Coordinator / Engineer in Charge with utmost urgency
and priority within time limit laid down by the Arbitrator.

19.6.3 The Engineer in Charge should invariably follow the time limit set by
the Arbitrator. However, in cases where they foresee some
unavoidable delay in adhering to the time limit they should explain the
position to the Arbitrator and obtain extension of time before the
expiry of the stipulated date.

19.6.4 a) It should be noted that any plea / objection with reference to any
requirement under the arbitration agreement, jurisdiction or any
other aspect not taken before the arbitral tribunal cannot be taken
before the Court of Law and a party shall be deemed to have
waived its right to so object. In this regard, provisions under

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 Section 4 of the Arbitration and Conciliation Act, 1996 are
reproduced below.

“ A party who knows that -

a) any provision of this part from which the parties may derogate
or
b) any requirement under the arbitration agreement,
has not been complied with and yet proceeds with the arbitration
without stating the objection to such non-compliance without undue
delay or if a time limit is provided for stating that objection, within
that period, shall be deemed to have waived his right to so object.”
Therefore, all the possible pleas / objections should invariably be
raised before the arbitral tribunal while defending the case well
within the time.
b) In case of time barred claims, issuance of a No-claim Certificate by
Contractor, acceptance and receipt of the final bill / payment by
the Contractor and/or disputes / claims not raised in accordance
with the Contract stipulations, objections/ plea that the arbitral
tribunal does not have the jurisdiction should invariably be raised
by RITES Officer concerned at the very beginning of the arbitral
proceedings (i.e.) at the time of submission of the Counter
Statement / Statement of defence and also in the first hearing. In
case the Arbitral Tribunal is exceeding the scope of its authority /
reference, objection/ plea should be raised as soon as any matter /
claim beyond the scope of authority / reference is raised during the
arbitral proceedings. Provision under Section 14 of the Arbitration
and Conciliation Act, 1996 may also be referred to in this regard.

19.6.5 In case of arbitration proceeding where RITES have signed the Works
Contract with the Contractor for and on behalf of the Employer
(Client), it should be made amply clear to the arbitrator in the arbitral
proceedings that RITES is only the custodian of deposit funds
provided by the Principal Employer / Client / owner for disbursement
of payment to Contractors from time to time and under no
circumstances RITES can and will be able to pay the arbitration
award, if any, to the Contractor / Claimant on their own.

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19.6.6 There is need for special care in fighting the arbitration cases on
behalf of RITES since once the Arbitrator gives his award, it will be
very difficult to get it set aside in a Court of Law except in
circumstances listed in sub sections (2) and (3) of Section 34 of
Arbitration and Conciliation Act, 1996. These sub sections basically
refer to items which do not have a bearing on the merits of the case
under Arbitration. As far as the merits of the Arbitration Award are
concerned, following is the legal position contained in a judgement of
the Supreme Court.

“An Arbitral Tribunal is a domestic Tribunal of the choice of the

parties. Its decisions do not admit of interference by Civil Courts
except on very special grounds. The Arbitrator’s power is not taken
away or the efficacy and finality of his award whittled down by reason
of any error in the Award. An erroneous decision of the Arbitrator is as
much binding as a correct one. Courts do not sit in judgements over
the Awards as if in appeal. An Award can be interfered with when it is
vitiated by misconduct or suffers from errors of law manifest on the
face of the record. It is no misconduct on the part of the Arbitrator to
come to an erroneous decision whether his error is one of law or fact.
There is no appeal from his verdict. The Court cannot review his
Award and correct any mistake in his adjudication, unless illegality of
the award is apparent on its face”.

Provisions contained in Para 19.13.1 below may also be seen for

better appreciation of this matter.

19.7 ENGAGEMENT OF LAWYERS

19.7.1 Where it is considered desirable to avail of the services of a local

lawyer to conduct a case on behalf of RITES, fees may be paid
keeping in mind the powers under SOP. It is desirable that a lump
sum fee may be fixed with payment in installments such as after filing
petition / reply and after final disposal of the case instead of breaking
it into elements such as for legal advice on Counter Statement, for
appearing in each hearing etc.

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19.7.2 However, the mere fact that legal counsel has not been able to attend
before the arbitrator for a particular date of hearing should not
ordinarily call for adjournment of whole case. In such circumstances,
the arbitrator may be requested to deal with the claims involving
technical and non legal points. For hearing on legal issues, the
Arbitrator may be requested to adjourn the case to another date.

19.7.3 In all cases, where the value of the claims is Rs.Ten lacs or more and
where legal matters are involved, a lawyer may be engaged to defend
the cases with the help of the Engineer in Charge concerned before
the Arbitrator. In all cases, which are defended by the lawyer, the
Engineer in Charge should be in touch with him from the very early
stage and should ensure that the dates and timings for hearings are
fixed by the Arbitrators to suit the availability of the lawyer. The
Engineer in Charge concerned should make it a point to contact the
counsel and discuss the arbitration case with relevant documents. A
copy of the detailed note made out by the Engineer along with copies
of the documents referred to therein should also be forwarded to the
lawyer with a draft counter statement / counter claims. Engineer in
Charge concerned should decide whether a particular arbitration case
be defended by himself or by the Project Co-ordinator/ Engineer and
with or without the assistance of the lawyer.

19.7.4 All the documentary evidence in the case has to be examined

carefully and placed before the Arbitrator as the situation and
circumstances in each hearing demand, stressing the points of the
RITES to counter-act the Contractor’s claims.

19.7.5 Where the Contractor’s claims are based on entries in the

measurement books recorded by RITES officer who may have in rare
cases colluded with the Contractor and made false entries, it is
necessary that sufficient evidence contesting the correctness or
veracity of the entries in the Measurement Books should be placed
before the Arbitrator in support of the contention of RITES and special
care should be taken with regard to selection of the witnesses and
evidence to be placed before the Arbitrator.

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19.8 PRODUCTION OF OFFICIAL DOCUMENTS BEFORE COURT /
ARBITRATORS

19.8.1 In the course of legal / arbitration proceedings, the Court /Arbitrators

may either themselves or at the instance of the opposite party, require
production of official records, e.g. files, correspondence, register or
the other documents which are supposed to have a bearing upon the
case. While the Court / Arbitrator may require production before them
of any document relevant to the case, it must be checked with Legal
experts if in terms of Sections 123 &124 of the Indian Evidence Act,
RITES can claim privilege for not producing documents, the
disclosure of which may be considered detrimental to public interest. If
legal advice agrees, such privilege may be claimed in respect of all
“unpublished records” of RITES (i.e. documents which have not come
to the knowledge of the other party). For this purpose “Notes Portion”
of a file and all communications and letters other than those
emanating from or sent to the party (original or copies) should be
treated as “unpublished” records of RITES in respect of which
privilege, as aforesaid, can be claimed. This will be done by producing
before the court / arbitrators declaration signed by the Competent
Authority of RITES stating that documents referred in the declaration
contain unpublished official information and that the privilege in
respect of the same is being claimed as their disclosure would be
detrimental to the public interest.

19.8.2 RITES officer may appear as a witness, if summoned by the Arbitrator

at the request of a contractor also. He is expected to give true and
correct facts of the case. Deterrent action should be taken against the
officials concerned, if they are found responsible for giving wrong
evidence or concealing material facts in an arbitration case.

19.9 DEFAULT OF A PARTY

If the claimant fails to communicate his statement of facts within the
time determined by the Arbitrator, without showing sufficient cause,
the Arbitrator can terminate the proceedings. If the respondent fails to
communicate his counter statement of facts within the time
determined by the Arbitrator, the Arbitrator can continue the
proceedings without treating the failure in itself as an admission of

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 allegations by the claimant. In case a party fails to appear at hearing
or fails to produce documentary evidence, the Arbitrator may continue
the proceedings ex-parte and make the award based on the evidence
before him.
19.10 MAKING OF AWARD

19.10.1 Whenever an award is made by an Arbitrator appointed otherwise

than through a court and if under the award, some money is payable
to RITES by the Contractor, the Engineer in Charge should first
supply to the Arbitrator, stamp papers of appropriate value, as may be
asked for by the Arbitrator according to amount of the award, as per
the rules of the State, where the award is likely to be made by the
Arbitrator and request the Arbitrator to write the award on the stamp
papers (Non-judicial) so supplied to him.

19.10.2 It is open to objection in a court of law to write the award on ordinary

paper and afterwards rewrite it on the stamp papers. The award
should therefore, always be obtained on the stamp papers. It is for the
Arbitrator to say as to which party should supply the stamp papers in
such cases.

19.10.3 As per the provision in the arbitration clause, in all cases the arbitrator
shall have to give the reasons for the award, against each claim.

19.11 ACCEPTANCE OF AWARD

19.11.1 Schedule of Powers shows the powers delegated for acceptance of
arbitration awards.

19.11.2 Since, for filing objections against an award, the period of limitation
prescribed under the Arbitration and Conciliation Act, 1996 is three
months from the date of receipt of award by the party, the decision
regarding acceptance of an arbitration award should be taken by the
competent authority on priority basis.

19.11.3 The procedure followed in scrutinizing the awards consists of

examination on merits from factual, technical and legal points of
view. The Engineer in Charge should, within 7 days of receipt of
arbitration award, send a self- contained reference together with a

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 copy of the agreement, a copy each of the statement and counter
statement of facts and claims, a copy of the award, financial
statement and his comments to the Competent Authority for his
decision.

19.11.4 Payment should be made to the contractor after obtaining an

undertaking from the contractor for acceptance of the award in full
and final settlement. Immediate payment or payment within the
grace period stipulated by the Arbitrator ensures that
RITES/Employer is absolved of the liability of payment of interest on
the amount awarded. The undertaking is to be obtained from the
contractor on stamp paper.

19.11.5 Immediately on taking a decision to accept the award by the

Competent Authority, a communication as per Annexure 19.4
should be issued to the contractor intimating the fact of such
acceptance and offering of payment in terms of the award subject to
the contractor communicating his acceptance of the award within the
specified time. Payment so made would bar the contractor from
suing again in respect of the same dispute.

19.11.6 Engineer in Charge should make payment to the Contractor in terms

of the award within a period of 30 days from the receipt of
acceptance of award from the Competent Authority and intimate the
actual date of payment of award to it. Payment should be made
within the time limit stipulated by the Arbitrator in his Award.

19.11.7 The payments made to the Contractors on the arbitration awards

made by the Arbitrator or by Court are to be taken as part of the cost
of work normally payable by the client, as per standard provisions in
the Agreement between RITES and the Client which should be
referred to for details.

19.11.8 The arbitration award means the total award including the interest
awarded by the arbitrator. The amount of such interest is to be
worked out upto the date specified in the award. Therefore, the
amount of the interest has to be taken into consideration while
deciding the authority competent to accept the award. However, in

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 case no fixed date is specified in the award and the interest is to be
paid upto the date of actual payment of award amount to the
contractor, the likely date of such payment may be taken into
consideration. There may be a situation that after acceptance of the
award by the competent authority, the actual payment to the
contractor gets delayed beyond the anticipated date due to some
unavoidable circumstances and the amount of interest increases to
an extent that the total amount of award exceeds the power of
acceptance of the authority that accepted the award. In such cases,
the payment may be made to the contractor as early as possible and
the case may be submitted to the next higher authority, competent to
accept the increased amount of award, for ex-post facto approval.

19.11.9 In cases where the decision taken is to challenge the award, the
award amount should not be deposited in the Court unless otherwise
directed by the Court. This is in view of the fact that the liability to
pay further interest does not cease even if the award amount is
deposited in Court.

19.11.10 Whenever amount of an arbitration award is deposited in court;

intimation to this effect should simultaneously be given to the
contractor.

19.12 REVIEW OF ARBITRATION AWARD

19.12.1 In all arbitration cases where awards of the Arbitrators go against
RITES (whether by upholding the claims of the contractors or by
rejecting the counter claims of RITES), detailed reasons and lapses,
if any, on the part of concerned officials due to which the awards
have gone against RITES should be advised to Director (Projects)
by the SBU concerned and should be gone into in detail by the
official nominated by Director (Projects). The official should send his
recommendations to Director (Projects) on the issue of fixing of
responsibility for taking action against the officers, wherever
necessary and on any modifications required to be made in the
Standard format of Tender Documents as well on the need for issue
of instructions to SBU Heads to avoid recurrence of similar lapses in
future.

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19.13 SETTING ASIDE OF AWARD
19.13.1 The question of challenging the arbitral award in a court of law
should be considered very carefully. Under Section 34 of Arbitration
and Conciliation Act, 1996, there are very few grounds available to
challenge the arbitral award as follows:-

a) The party making the application furnishes proof that -

i) a party was under some incapacity, or
ii) the arbitration agreement is not valid under the law to
which the parties have subjected it or, failing any indication
thereon, under the law for the time being in force, or
iii) the party making the application was not given proper
notice of the appointment of an arbitrator or of the arbitral
proceedings or was otherwise unable to present his case,
or
iv) the arbitral award deals with a dispute not contemplated by
or not falling within the terms of submission to arbitration,
or it contains decisions on matters beyond the scope of
submission to arbitration, provided that, if the decisions on
matters submitted to arbitration can be separated from
those not submitted, only that part of the arbitral award
which contains decisions on matters not submitted to
arbitration may be set aside; or

v) the composition of the arbitral tribunal or arbitral procedure

was not in accordance with the agreement of the parties,
unless such agreement was in conflict with a provision of
Part I of the Act from which the parties cannot derogate, or,
failing such agreement, was not in accordance with Part I
of the Act, or

b) The court finds that -

i) the subject matter of the dispute is not capable of
settlement by arbitration under the law for the time being
in force, or

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 ii) the arbitral award is in conflict with the public policy of
India.

19.13.2 Since almost all the awards are interest bearing, the question of
depositing the awarded amount in the court should invariably be
examined by the Competent Authority (Refer SOP) to save payment
of interest. Engineer-in-Charge should give specific
recommendations in this respect while recommending challenging of
awards in the case of interest bearing awards.

19.13.3 An application for setting aside an arbitral award has to be made

within three months from the date on which the party making that
application had received that arbitral award or from the date on
which his application for correction in or interpretation of arbitral
award in terms of Section 33 of the Arbitration and Conciliation Act,
1996 was disposed of by the arbitral tribunal / arbitrator. Under
section 33, a party can make an application for correction or
interpretation within thirty days of receipt of the arbitral award. In
terms of Section 34 (3) of the Arbitration & Conciliation Act, 1996,
even if the Court is satisfied that the Applicant was prevented by
sufficient cause from making application within the said period of 3
months the Court may entertain the application within a period of 30
days only but not thereafter.

19.13.4 If the award is found to be in order from all aspects, it need not and
should not be challenged. Legal proprieties and prudence demand
that such matters should be examined by a competent lawyer, if the
Competent Authority feels that there is a strong case for challenging
the Award. This reference for legal advice should be taken with least
delay.

19.14 PERIOD OF LIMITATION

19.14.1 It is a term of the RITES Contract in the relevant arbitration clause

(Clause 25) that if the contractor does not make any demand for
arbitration in respect of any claim (s) in writing within 120 days of
receiving intimation from RITES that the final bill is ready for
payment, the claim of the contractor(s) will be deemed to have been

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 waived and absolutely barred from the liabilities under the contract in
respect of these claims. In spite of above specific provision in the
arbitration clause, the Competent Authority should not withhold
appointment of arbitrator on the ground that the request was
received after the expiry of the specific period mentioned in the
relevant arbitration clause of the agreement, but should appoint the
arbitrator clarifying in the letter of appointment of the arbitrator that
the reference is without prejudice to the defence that may be raised
by RITES regarding the tenability of the claim on all necessary and
available grounds including those of Limitation and the parties to the
agreement will be free to raise the question of limitation before the
Arbitrator. While examining the request for arbitration from a
contractor or supplier or any claim in a litigation case, the Engineer-
in-Charge should examine whether the claim of the contractor is time
barred, in accordance with the provisions of the Limitation Act 1963.
This point should be taken into consideration in preparing the
defence.

19.14.2 The question as to whether any dispute had become time barred will
itself be a dispute which can only be settled by arbitration. The stage
of reference is not concerned with the question whether the claim of
the party to the arbitration agreement is barred by the Law of
Limitation and that question falls within the purview of the arbitrator
to whom the dispute is referred. The reference of the disputes, even
though seemingly time barred, would therefore be made to the
arbitrator. The parties would be free to agitate the question of
Limitation before the arbitrator, who would no doubt consider this
point and give his award. However, it can be clarified in the letter of
appointment of the arbitrator that the reference is without prejudice
to the defence that may be raised by RITES regarding the tenability
of the claims on all necessary and available grounds including those
on limitation.

19.14.3 In the case of any appeal before the Division Bench, the appeal is to
be filed within thirty days of pronouncement of judgement by the
High Court. If for any reason, delay occurs, the Court has to be
approached for condo nation of delay in filing the appeal, and RITES

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 has to explain the day to day delay, to the satisfaction of the Court.
Every care should therefore, be taken in handling such arbitration /
court cases and it should be ensured that timely and prompt action is
taken within the period of limitation.

19.14.4 There can be cases where RITES may have to file Arbitration claims
against the Client and in rare cases against the Contractor. It has to
be ensured that in such cases, the Arbitration Clause is invoked
before the period of Limitation expires. The period of limitation
commences from the date the cause of action for the claim arises.
For this purpose, the date when cause of action has arisen is when
the amount has been claimed by RITES in writing from the other
Party. It may be mentioned that such a claim letter should be issued
by RITES within the period, if any, stipulated in the contract with the
other Party. Issue of formal letter to the other Party for appointment
of Arbitrator / filing a suit in the Court of Law where there is no
Arbitration clause in the Agreement with the other Party, should be
done by RITES within the period of Limitation. On works Contracts,
RITES not falling under the definition of a Government Department,
the Period of Limitation is three years. Thus, if the other Party,
receiving letter of claim from RITES goes on corresponding with
RITES without giving any specific acknowledgement by it’s
Competent Authority accepting its liability to pay the claimed
amount, RITES should invoke the Arbitration clause by asking for
the claims to be referred for Arbitration or file a suit, as is applicable
within three years from the date RITES sent the claim letter. In
case, the other Party’ has categorically acknowledged its liability in
writing, a fresh period of limitation will start from the date of such
acknowledgement by the other Party. It may be noted that for
Government Department, the period of Limitation is 30 years and
hence if the Client is a Government Department, it can invoke the
provisions of Arbitration clause / file a suit against RITES within a
limitation period of 30 years, whereas RITES will have a Limitation
Period of only 3 years to pursue its claim against the Government
Department. On the Period of Limitation, there can be different legal
views as to when it commences and when it ends and hence, where
necessary, RITES should take legal advice.

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19.15 COURT CASES

19.15.1 Before any action is taken in a court of law against some party for
amounts due to RITES, a reliable report of its financial standing
should be obtained and simultaneously the expenditure likely to be
incurred to recover this amount should be carefully estimated so that
unnecessary expenditure on litigation may be avoided, where there
is no reasonable chance of recovering the judgement debts from the
party concerned.

19.15.2 Although it is the primary responsibility of the RITES official at the

particular station where the case has jurisdiction, to ensure proper
defence of the case, it is equally the responsibility of superior officers
of RITES to keep constant watch over the progress of these cases
and see that all such cases, at every stage, are processed properly
so that the cases do not go against RITES interests by default
resulting in financial loss etc to RITES.

19.15.3 The SBU Heads should therefore, see that all such cases are
reported to the Executive Director concerned as soon as a suit
against RITES is threatened by any aggrieved party or RITES itself
intends to file a suit against a contractor or third party. The first
report from the SBU Heads about such cases should give a brief
description of the case and the steps which are being taken or have
been taken for the proper defence or prosecution of the suit.
Thereafter, fortnightly reports on each such case should be sent to
the Executive Director detailing the progress of the case and further
action taken or to be taken for its defence or its successful
prosecution.

19.16 JUDGEMENTS IN COURT CASES

The progress of the cases in the Court should be watched closely by
the SBU Heads in charge of the cases. It will be the responsibility of
the SBU Head to send a report to the Executive Director concerned
within 48 hours after the Court has delivered a judgement which is
addressed to RITES. It shall also be his responsibility to apply for
and furnish with minimum delay, a copy of the judgement and all
other relevant papers, his own comments and the opinion of the
counsel conducting the case on the advisability of filing an appeal /

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 revision petition to enable the Executive Director concerned to come
to a decision whether an appeal / revision petition should be filed or
not. The appeal / revision petition should be filed, if it is decided to
be filed, within the time limit laid down by Law.

19.17 LEGAL CHARGES ON CIVIL SUITS / ARBITRATION CASES

19.17.1 The costs and expenses incurred on civil suits / arbitration cases in
connection with the execution of Deposit Works for Clients may be
divided into categories given below:

i) The amount of the claim for which a decree / award is given.

ii) The amount of incidental costs incurred by RITES in connection
with the court / arbitration case.

19.17.2 The decretal award amount of the claim vide item (i) above should
be debited in all cases to the works concerned and the charges
referred to the client. As regards (ii) also the amount should be
borne by the Client on whose behalf the work is undertaken on the
ground that the action of RITES was as agent and taken in the
interests of the work.

19.17.3 When, however, it is established that the law suit / arbitration

proceeding has been caused by a deliberate act of an employee of
RITES for his personal gain, the charges should be adjusted by
recovery from the individual concerned after taking legal advice; If it
is determined to be a case of organizational failure of RITES, and
the client has reservation in including the Cost of such items as Cost
of Work, the extent to which item (i) and (ii) can be claimed under
“Professional Indemnity Insurance” should be looked into.

19.18 DOCUMENTATION FOR ARBITRATION CASES

19.18.1 In order to enable the Engineer in Charge to put up proper defence

of the case, it is necessary that as and when the incumbents hand
over charge of the office / transfer arbitration cases/ works, they
should, unless all the facts and arguments are already explained in
the written Counter Statement of Facts, prepare and place on record

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 a self-contained note giving all the facts of the case and detailed
comments on the claims.

19.18.2 In order to enable speedy disposal of cases, the Engineer incharge

should not ask for adjournment to the extent possible.

19.18.3 The Engineer in Charge should always maintain a separate file on

the disputes that have cropped up on the work during the progress
of the work. In case of his transfer or relinquishing charge due to
any reason, he should leave a self contained note on the file, at the
time of his handing over charge, giving full background of all the
disputes that have cropped up to the time of his incumbency, various
developments thereon and the orders passed with due reference to
the connected files. This should form a necessary and essential
feature of all the handing over notes. Such files should be carefully
preserved and become available at a later stage to the Engineer-in-
Charge who is required to defend the case.

19.18.4 The transferred Engineer-in-Charge should make a comprehensive

note about the pending claims of all the contractors for works in
progress or completed in his time except those where counter
statement of facts have already been prepared. The note should
indicate the admissibility or otherwise of each claim and the orders
of the competent authority. The note along with attested true copies
of important letters mentioned therein should be handed over to his
successor.

19.18.5 It should be made a rule in the Engineer-in-Charge’s office that all

drawings issued with the NIT and those subsequently followed for
execution of works are properly preserved and kept along with the
contract documents. It should be ensured by the Engineer in Charge
that suitable and adequate arrangements are made in his office
regarding preservation of all important documents, registers etc.
Besides others, a list of all such records should be prepared and
kept handy so that correct position of each case may be known at
any time to conduct the case on proper lines.

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19.19 DISPOSAL OF OLD RECORDS
Norms for disposal of old records are at ANNEXURE 19.5. If there
is any arbitration or court case, the relevant records should be
retained till the final disposal of arbitration case / court cases
including appeals at various levels subject to minimum period
stipulated in Annexure 19.5.

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 SECTION 20

RECORDS TO BE MAINTAINED AT SITE OF WORK

20.1 GENERAL PROVISIONS

20.1.1 Records to be maintained at site and the purpose of each have been
given below along with the proforma. The records may be maintained
in the form of a register or in a file form. The Engineer in Charge who
has signed the Works Contract Agreement will arrange to supply the
bound registers / loose - sheets as the case may be. The records
should be maintained properly by the Controlling Site Engineers and
preserved for a period of 3 years after financial closure of the project
or up to the time all disputes / arbitration cases of the work are finally
settled, whichever is later. In the case of bound registers, machine
numbering of pages should be done to avoid tampering with the
same. In the case of files formed of loose sheets proper folio
numbering should be done. The registers / files should be reviewed
periodically by the Engineer in Charge and other inspecting officers
who should record their remarks. In no case will the register be
issued by the same official who is to record details on the same on
day to day basis as a Primary Record.

20.1.2 All communications of any appreciable consequence with Contractors

by RITES which may become material evidence in a future arbitration
or court case, should be sent by Registered / Speed Post, Courier or
Fax and exact copies alongwith the evidence of having sent the
communication should be kept carefully in RITES’ files. These will
include all notices to the contractor under various Clauses of Contract.

20.1.3 Field Book of Site Engineers:-

a) Every Site Engineer should keep a Field Book in which will be

entered any particulars with reference to the progress of works
which may be relevant such as nature of soil in which foundations
are to be provided, the quality of materials delivered at site of
work, the quality of workmanship etc.

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 b) Remarks may also be made in the note book regarding the
qualifications of subordinates, artisans and others employed by
the Contractor on the works, the satisfactory or unsatisfactory
operation of the contractors and in fact anything relating to the
works in progress which should be brought to the notice of his
superior officers, either being of general professional interest or as
requiring immediate action or order.
c) The dates of all inspections with a list of the works, and a
memorandum of the items inspected with details on various points
considered worthy of remarks, should also be given and these
note books should be considered as official records, to be
produced whenever called for by superior officers. They should be
neatly and systematically kept and indexed.

20.2 SITE ORDER BOOK (Format at Annexure 20.1)

It is meant for the Site Engineer and the supervisory Engineers to
record their observations if they find any defective work going on or
the Contractor not complying with the terms of Contract. This record
should be in a bound register form with pages machine numbered.
The Contractor’s representative at site should be shown the
observations and asked to acknowledge the same in the Site Order
Book. The action taken by the Contractor should be recorded against
the relevant item and this should be acknowledged by the Site
Engineer. The Site Order Book should be maintained on the site of
works and should never be removed there from under any
circumstances. While forwarding the bills submitted by the Contractor
for payment, the Site Engineer should consult the Site Order Book to
ensure that the defects pointed out have been rectified. If defects
continue to be there, action can be taken to issue Show Cause
Notice as mentioned in Para 14.1.2.

20.3 PERIODIC INSPECTION OF WORKS - INSPECTION RECORD

(Format at Annexure 20.2)
a) It is incumbent upon the various officers concerned with the work
to inspect the works frequently to ensure that the works are in
general being executed according to the design, drawings and
specifications laid down in the contract and aspects of safety,

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 environmental issues, accountal, maintenance of records,
mandatory tests etc. All the visiting senior officers shall issue
inspection notes, follow up action on which may be properly filed
by Project Manager in one file. The instructions to be complied by
the contractor shall be carried on to the Site Order
Book/communicated to the contractor for ensuring compliance as
dealt in para 20.2 above.

b) To watch action taken on the various inspection notes,

consolidated record of inspection notes may be kept in format at
Annexure 20.2 in the same file itself which may be reviewed by
the inspecting officers during their subsequent visits.

c) Periodicity of inspections by various officers is laid down in Table

below for adherence in general. The periodicity of inspections by
SBU Head/ED may be deviated suitably in consultation with
ED/Director, depending upon number of large projects in his
Division, the nature, complexity, sensitivity, geographical spread
and accessibility of the projects.

Periodicity of inspections per year

Project SBU Head / GGM ED / Divisional Head
Awarded
Coordinator /GM
value of
project

1 As considered As considered
Upto Rs.
necessary necessary
20 Crores

1 1 As considered
20 to 100
necessary
Crores

2 1 Atleast 25% of the

More than
Projects
Rs. 100
Crores

d) "Check features" on different types of works are enclosed in

Annexure 20.2 for guidance of inspecting officials upto SBU Head

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 level These represent most probable defects. Depending on time
available, the inspection may cover additional items for which
'CHECK LIST OF SPECIFICATIONS FOR CIVIL ENGINEERING
WORKS' issued by RITES may be referred to. ED / Divisional
Heads during the site inspection may give emphasis on the
workmanship of the contractor for improving overall delivery /
aesthetics.

e) The direct responsibility for ensuring proper quality of work as per

approved specifications, designs and drawings rests with the
construction team of Project Manager and his Engineering
subordinates. The officer who records/test checks the
measurements for an item of work will be responsible for the
quality, quantity and dimensional accuracy of the work.

f) The inspecting official after his work inspection shall submit the
following details to SBU Head. In case of SBU Head and above
being inspecting official, the details shall be submitted to his
controlling official.

1. Name of work:
2. Awarded value of work:
3. Name of Inspecting Official:
4. Date/Period of Inspection:
5. Designation of Inspecting Official:
6. Roll of Inspecting Official: Project Coordinator/Engineer –In-
Charge
7. S.No. of present visit to this work: 1st/2nd/3rd
8. Whether Check Features as per Annexure 20.2 of RITES
Guidelines have been checked? (Yes/No)
9. Whether site lab has been set up with necessary
instruments/equipments/testing machines: (yes/No)
10. Whether the records to be maintained at site of work as per
section 20 of RITES Guidelines are being maintained
properly/updated properly: (Yes/No)
11. Whether Technical staff to be deployed by the contractor (as
per clause no.36 of contract) are available: (Yes/No)

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 12. In case of any shortcoming in above aspects, action proposed/
advised:
13. Any major deficiency found which requires immediate attention:
(Yes/No). If yes, same may be explained.
14. Remarks

20.4 HINDRANCE REGISTER: (Format at Annexure 20.3)

This is a basic record for dealing with the application of the Contractor
for Extension of Time. Whenever any hindrance comes to the notice
of the Site Engineer or the contractor, a note of such hindrances
should be recorded in the Hindrance Register which can be a bound
one with pages machine numbered. The register should be reviewed
by the Project Coordinator / Engineer-in-Charge whenever they come
for inspection. The following points should be kept in mind while
entering the particulars in the register.

i) The entry on date of start of hindrance and date of removal of

hindrance should be made on the same day on which the
hindrance takes place or the cause of hindrance is removed
respectively.
ii) Overlapping period, net period of hindrances and weight age of
each hindrance should be worked out by the Project
Coordinator / Engineer in charge within 15 days of removal of
cause of hindrance or whenever he visits the site. This can be
delegated to the Controlling Site Engineer.
iii) Items of work affected due to any hindrance should be clearly
mentioned in the hindrance register by the Site Engineer on the
basis of which only the weight age should be allowed.
iv) Each hindrance entered in the hindrance register should be
authenticated by the Controlling Site Engineer.
v) Hindrances which are in the Control of the Contractor shall not
be given any weightage while working out the net justifiable
delay.
vi) Hindrance should be recorded carefully in the Hindrance
Register considering its effect on completion of work.

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 vii) Engineer-in-Charge / Project Coordinator from Project Offices /
HQ should review the Hindrance Register during their
inspection.

20.5 DAILY PROGRESS RECORD (Format at Annexure 20.4)

This is a basic document to review the progress of work on a daily

basis so that the Performance of the Contractor with reference to his
programme of work for completion within the stipulated time can be
kept under watch. This may be maintained in a Register form with one
page allotted for each day. The pages should be machine numbered.

20.6 CEMENT REGISTER (Format at Annexure 20.5)

With free availability of cement in the market, the contracts invariably

provide for the contractor to make arrangements for the cement
required for execution of Works. Hence normally the cement stores
will be under the control of the Contractor. Still it will be necessary for
RITES to keep a close watch on the consumption of cement in various
components of work to ensure that the required quantity of cement
has been used. The format accordingly provides for its maintenance
in two Parts A and B. Part B on review of actual consumption as
against theoretical requirement should be filled in based on the details
in Part A.

20.7 STEEL REGISTER (Format at Annexure 20.6)

Just as in the case of cement, the present day contracts provide for
steel supply to be arranged by the Contractor. Through the storage
and accountal of steel will be the responsibility of the Contractor, it will
be necessary to keep a close watch on the actual consumption vis a
vis the theoretical requirement determined based on “Good for
Construction” drawings.

20.8 NON CONFORMANCE ITEMS RECORD (Format at Annexure 20.7)

During the course of execution of works, there can be some cases of

substandard work by the Contractor. The normal procedure is for the
Contractor to be directed to redo the work or rectify it so that it
conforms to the specifications. There can be some rare cases where
the defect or non-conformance has been noticed so late that it is
structurally impossible to get the work redone. If otherwise

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 structurally sound, such defective work can be accepted at a reduced
rate. The detailed procedure to be adopted has been explained in
Section 14. This record should be kept in a register form with the
pages machine numbered.

20.9 QUALITY AUDIT RECORD (Format at Annexure 20.8)

It is necessary to keep a record of “Quality Audits” done by the
inspecting officials and Quality Audit Organisation members and
action taken thereon. These records may be kept in file form. Along
with Quality Audit Record in the proforma laid down, a copy of the
Quality Audit Report should be maintained.

20.10 SITE COORDINATION MEETINGS RECORD (Format at Annexure

20.9)

To ensure that the problems, if any, faced by the Contractor are

identified in the initial stage itself to facilitate taking corrective action
and also to give an early warning to the contractor if he is seen
slipping behind the scheduled programme of work, it is necessary to
hold periodic progress meetings. In the case of works where the
progress of work is dependent on action by other organisations such
as those responsible for shifting of services in the site, such meetings
can be organized as coordination meetings. The record of such site
progress / coordination meetings should be maintained in the
proforma laid down. This record can be maintained in file format.
Along with record for each meeting, a copy of the minutes of meeting
shall also be kept.

20.11 GUARANTEE BONDS RECORD (Format at Annexure 20.10)

The contract provides for the Contractor submitting a Bank Guarantee

for claiming Mobilization Advance. The Contract also permits
“Performance Guarantee” being provided by the Contractor in the
form of Bank Guarantee Bond. There can also be other cases such as
issue of materials free of cost to the Contractor where Bank
Guarantee should be insisted upon. In all cases, the contract will
provide for the Bank Guarantee to be made available for a stipulated
amount and for a stipulated period in the first instance. The contract
also provides for the validity period of the Bank Guarantee to be got
extended under some circumstances. Though the responsibility for
keeping the Bank Guarantee Bond in safe custody and checking with

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 the Site Engineer if the validity period is to be got extended, will rest
with the Accounts Wing in the office of Engineer in Charge who has
executed the Contract Agreement, the Site Engineer should also
maintain a copy of the Bank Guarantee in site and see that the validity
is got extended as required. The record should be maintained in the
proforma laid down, in a register form.

20.12 INSURANCE POLICIES RECORD (Format at Annexure 20.11)

RITES Standard Contract Conditions provide for the Contractor taking

the following insurances.

i) On Secured Advance on perishable materials

ii) On Plant & Machinery advance

iii) Comprehensive All Risk Insurance on Cost of works

iv) Third Party insurance

v) Workmen’s Insurance.

Where the Client desires, other insurance policies may also be

required to be taken by the Contractor as provided for in the Contract.

ll these cases of insurance, the amount and initial period are laid
down in the Contract which also provides for getting the insurance
cover extended for further period under certain circumstances. While
it will be the responsibility of the office of Engineer in Charge to keep
custody of the original policies and take action to pursue the
Contractor for extension of validity, a copy of the Policies should be
retained in the Site Office and the Site Engineer should keep in touch
with the office of Engineer in Charge and see that the Policy validity is
got extended as required. The record should be maintained in the
proforma laid down, in a register form.

20.13 DRAWINGS RECORD (Format at Annexure 20.12)

One of the main issues raised by the Contractors for delay in

execution of the works is the delay in making available “Good for

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 Construction Drawings”. It is hence necessary to maintain the details
in the format laid down in a register form.

20.14 RECORD OF MANDATORY AND NON MANDATORY TESTS

(Format at Annexure 20.13)

CPWD Specifications stipulate that certain mandatory tests are

required to be carried out on materials / finished product. Full details
of tests required to be carried out have been described in Section 16
and they cover a number of items. Depending on the scope of work,
tests on the stipulated materials will be required to be carried out as
per frequency laid down for each material. To check if the mandatory
tests are being carried out as required, records are to be kept by the
Site Engineer. Specimen format for cement is at Annexure 20.13.
Similar format can be adopted for other materials. This record can be
maintained in a file form with an index sheet on top.

A separate file can also be opened with details in similar format for
non mandatory tests. As mentioned in Para 16.1.2 (viii) of this book,
the Engineer in Charge can get non mandatory tests on materials and
products carried out at his discretion. The details to be maintained in
file form will include all tests whether carried out in the site laboratory
or outside laboratory.

20.15 PAINT AND CHEMICALS RECORD (Format at Annexure 20.14)

Special care is to be exercised in checking quality of painting works

and works of specialized nature such as anti termite treatment and
water proofing of structures. These involve use of paints and
chemicals whose quality and consumption have to be kept under
close watch, even though invariably Contract Conditions provide for
their supply by the Contractor. Record of paint and chemicals may be
maintained in the form of a register in proforma at Annexure 20.14.
FORMATS OF RECORDS TO BE MAINTAINED BY RITES’ SITE
ENGINEER

Sl. No SUBJECT Annexures

1 Site Order Book 20.1
2 Inspection Record 20.2
3 Hindrance Register 20.3
4 Daily Progress Record 20.4

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5 Cement Register 20.5
6 Steel Reinforcement Register 20.6
7 Non Conforming Items Record 20.7
8 Quality Audit Record 20.8
9 Site Coordination Meetings Record 20.9
10 Guarantee Bonds Records 20.10
11 Insurance Policies Record 20.11
12 Drawings Record 20.12
13 Mandatory Tests and Non-Mandatory 20.13
Tests Record
14 Paints / Chemicals Register 20.14

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 SECTION 21

MEASUREMENT BOOKS

21.1 MEASUREMENT BOOK - GENERAL INSTRUCTIONS

21.1.1 (a) The Measurement Book is the basis of all accounts of quantities
whether of work done by contract or by labour employed
departmentally or of materials received and should be so kept that
the transactions may be readily traceable in the accounts of
RITES.

(b) Measurement Books should be considered as very important

accounts records and maintained very carefully and accurately as
they may have to be produced as evidence in a Court of Law.
(c) Each SBU Head will nominate an official by designation, of a level
not below that of Asstt. Manager, for receipt and safe custody
under lock and key of blank MBs and for issue of the same to
controlling Site Engineers / Site Engineers. The official so
nominated will be responsible for checking the blank MBs when
received from the printer/supplier to see if they are complete in all
respects with machine numbering of MB and its pages.
21.1.2 (a) All the books belonging to a SBU should be numbered serially and
a register should be maintained by the nominated official, in
format at Annexure 21.1 showing the serial number of each book,
the name and designation of official issuing the MB as well as of
the official to whom issued, the date of issue and the date of its
return, so that its eventual return to the SBU office may be
watched. Both the issuing and receiving officials should sign in the
register indicating the date of transaction.

(b) A similar register should be maintained at the site of work showing

the names of the officials to whom the Measurement Books have
been issued. Books no longer in use should be withdrawn
promptly even though not completely written up so that they can
be reissued, if necessary.
(c) Field officers are required to submit the Measurement Books in
use to the SBU office from time to time so that, at least once a
year the entries recorded in each book may be subjected to a

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 percentage check by the Accounts Section under the supervision
of the SBU Head.

21.1.3 When an officer or a subordinate in executive charge of works or

stores is transferred, he should hand over the Measurement Books
issued to him to his successor and in the prescribed register. (Format
at Annexure 21.1) they should be shown as received back from the
Relieved Officer and issued to the Relieving Officer. The transfer
should also be recorded after the last entry in each book and signed
and dated by the Relieved and Relieving Officer or subordinate.

21.1.4 Each set of measurements should commence with entries starting -

i) in the case for bills for works done -

a) full name of work as given in estimate,
b) situation of work,
c) name of contractor,
d) number and date of the agreement,
e) date of written order to commence work,
f) date of actual completion of work,
g) date of measurement, and
h) reference to previous measurements, if any.
(ii) In the case of bills for supply of materials:–

a) name of supplier,
b) number and date of the agreement or order,
c) purpose of supply in one of the following forms applicable to the
case:-
- stock (for all supplies for stock purpose),
- “Purchases” for direct issue to (here enter full name of work as
given in the estimate),
- “Purchase” for (here enter full name of work as given in
estimate)_______
for issue to contractor _______________ on ________________
d) date of written order to commence supplies,

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 e) date of actual completion of supplies, and
f) date of measurement.

21.1.5 A suitable abstract should then be prepared which should indicate in

the case of measurements for works done, the total quantities of each
distinct item of work relating to each sanctioned sub-head. The
measurement book used for recording Measurements will also be
used for recording Abstract of Measurements in a manuscript form.
Details to be recorded in the Abstract will include quantities up to
previous Bill, in the Current Bill and up to date along with rates. Paras
21.1.15 and 21.5 may be referred to for further details.

21.1.6 For recording measurements and also for preparing abstract, the
agreement item no. both in words as well as in figure should be given
neatly, instead of writing the description of the item in full or in
abbreviated form which would not be necessary.

21.1.7 In case of extra / substituted item of work that is not covered in the
agreement, the full nomenclature shall be reproduced in full in the MB
and in the bill form.

21.1.8 The full nomenclature of all the items shall be adopted in preparing
abstract of final bill in the measurement book and also in the bill form
for final bill.

21.1.9 If the measurements are taken in connection with a running contract,

a reference to the last set of measurements, if any, should be
recorded. If the entire job or contract has been completed, the date of
completion should be duly noted in the prescribed place. If the
measurements taken are the first set of measurements on a running
account or the first and final measurements, this fact should be
suitably noted against the entries in the Measurement Book and in the
latter case, the actual date of completion should be noted in the
prescribed place.

21.1.10 All measurements should be recorded neatly in the Measurement

Book. Detailed measurements may be dispensed with in cases in
which payments “on account” for work actually executed are made on

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 the certificate of a responsible officer (not below the rank of Assistant
Manager/ Engineer, if specially authorised) to the effect that not less
than the quantity of work recorded in MB has actually been done and
that the measurements are from plans or are approximately
estimated. The signature of the contractor or his authorized
representative should be obtained in the measurement book for each
set of measurements.

21.1.11 a) Before taking any measurement of any work, the Engineer in

Charge or a subordinate deputed by him shall give at least 3
days notice to the contractor. If the contractor fails to attend to
take the measurements after such notice or fails to countersign
or to record objection within a week from the date of
measurement, then the measurements recorded in his absence
by the Engineer in Charge or by the subordinate deputed by
him as the case may be, shall be deemed to have been
accepted by the contractor.

b) It happens sometimes that when the measurements recorded

by the Site Engineer are not accepted by the contractor, the
fact is not brought to the notice of his superior officers
immediately with the result that prompt action under clause 6 of
contract of RITES Standard Form cannot be taken. The idea of
clause 6 is to bind the contractor to file objection, if any, to the
measurement recorded by RITES officers within a week so as
to avoid any disputes later on. In all cases of works executed
on RITES Standard Contract Form, when the contractor fails to
attend at the time of measurements or to countersign the
measurement books in token of his having accepted the
measurements recorded therein, or to record the difference, the
Site Engineer taking the measurements should report this fact
within 72 hours to the Controlling Site Engineer / Coordinating
Officer in SBU office in writing. The latter on receipt of such a
report should take immediate action under clause 6 of Contract
and inform the contractor, in writing that the measurements as
taken by the Site Engineer are final as per clause 6 of Standard
Form of RITES and no claim whatsoever on this account shall
be entertained.

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 c) The above instructions will not apply in cases when the
Contractor is to submit completed measurements to RITES as
detailed in Para 21.6.

21.1.12 The measurements shall be recorded in ink. No entry shall be

erased or overwritten. If a mistake is made, it should be corrected by
crossing out the incorrect words or figures and inserting the
correction. The correction thus made shall be initialed and dated by
officer recording / checking measurements. The person recording
the measurements should record a dated certificate “Measured by
me” over his full signature in the Measurement Book.

21.1.13 The pages of the MBs should be machine numbered. Blank pages,
if any, without machine numbering should be cancelled by a
diagonal line and dated and initialed by the Measurement Book
Issuing Officer. Entries should be recorded continuously and no
blank page left or torn out. Any page or space left blank inadvertently
should be cancelled by diagonal line, the cancellation being attested
and dated. This is to ensure that no entry is inserted later. In cases
where “part rate” is proposed for any items, brief reason for the
same should be recorded in the Measurement Book. In such cases
the quantities should be correctly indicated based on measurements
and payment made at less than BOQ rates.

21.1.14 When any measurements are cancelled or disallowed, these must

be endorsed by the dated initials of the officer ordering the
cancellation or by a reference to his orders, initialed by the officer
who made the measurements, the reasons for cancellation being
also recorded.

21.1.15 On completion of the abstract to be recorded in the MB at the end of

record of Measurements for any RAB / Final Bill (refer Para 21.5 for
the Proforma), the book should be submitted by the official who had
recorded the measurements to the Controlling Site Engineer/ Project
Coordinator who after carrying out his test check / getting the test
check carried out, should enter the word “Check and bill” with his
dated initials. The Site Office clerk, if posted, should then check the
calculations of quantities in the abstract, and the bill furnished by the

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 Contractor in case of work carried out by contract, sign in token of
checking and should then place the measurement book and the bill
before the Controlling site Engineer, who, after comparing the two,
should sign the bill and the measurement book at the end of the
abstract. From the measurement book all quantities should be
clearly traceable into the documents on which payments are made.
When a bill is prepared for a work or supplies, every page containing
the detailed measurements must be invariably scored out by a
diagonal red ink line. When the payment is made, an endorsement
must be made in red ink, on the abstract of measurements, giving a
reference to the number and date of the voucher of payment.

21.1.16 Any corrections to calculations or rates made by the Site Engineer or

in SBU office should be made in red ink and brought to notice of the
Controlling Site Engineer or the Project Coordinator, as the case
may be and of the person recording the original measurements. In
the case of final bill, payment should be deferred until the corrections
have been accepted by the person making the measurements. All
corrections made by the clerical staff should be in red ink.

21.1.17 When work which is susceptible to measurements is carried out by

daily labour, similar plan should be adopted, the quantities of work
done as shown on the Muster Roll being compared with the entries
in the Measurement Book before payment is authorized.

21.1.18 Measurement Book should be sent only by Registered Post / Speed

Post / Courier or by Special Messenger.

21.1.19 Measurements should be recorded only by the officials in charge of

the work and to whom the Measurement Book has been issued for
this purpose. Guidelines on this subject are at Annexure 21.2 and
may be strictly adhered to.

21.1.20 In case of works of repetitive type, detailed measurements of 20% of

the total number of units, subject to a minimum of 20 Units, need
only be recorded.

21.1.21 In case of supply of steel, the measurements should be recorded as

under:-.

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 i) On actual weight basis for bars upto 10mm dia and
ii) On standard sectional weight basis for bars above 10mm dia.
In the case of latter the measurements should indicate the total
number with length of bars in each bundle, total number of
bundles, standard weight per running meter, weight of each
bundle, total weight of all bundles etc. The entry should not be
a copy form the invoice issued by the firm. The issues will also
be made in the same manner in the two cases.

21.2 TEST CHECKING OF MEASUREMENTS

21.2.1 The Controlling Site Engineer / Coordinating Officer must satisfy

himself before passing a bill for payment or before submitting it to the
SBU office for payment that the work or supply billed for has actually
been carried out / completed in accordance with the terms and
conditions of the contract. In case of doubt, he should personally
inspect all works of any magnitude before authorising final payments
in connection therewith.
21.2.2 Instructions on test check of measurements are at Annexure 21.2
and will be required to be adhered to strictly.

21.2.3 The individual items checked should be clearly shown in the

Measurement Book and the result recorded by the officer concerned.
The items thus checked should be attested by the dated initials of the
Checking Officer.

21.2.4 A collective record of all the checks carried out from time to time will
be prepared in each measurement book in the following tabular form:-

i. Date of check
ii. Page recording measurements subject to test check
iii. Item description and Number, Test Checked
iv. Value of measurements checked
v. Result of the check exercised
vi. Dated initials and designation of the checking officer.

The result will be indicated by the word “Satisfactory” or

“Unsatisfactory” as judged at the time on merits of each case.

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21.2.5 The Format of Test Check statement to be filled and submitted with
each RA bill/Final Bill is given at Annexure 21.6

21.3 RECORDING LEVELS FOR EARTH LEVELLING WORK

21.3.1 In case of leveling operations and earthwork, measurements are

required to be recorded in Level Books in addition to Measurement
Books. The Level Books should be numbered, accounted for and
handled like Measurement Books.

21.3.2 Before starting the earth work, the following steps should be taken:-

i) Original ground levels should be recorded in the Level Book in

the presence of the contractor,
ii) A suitable baseline should be fixed with permanent masonry
pillars @ 150 metres centres to provide a permanent reference
line,
iii) Circuit should be closed by taking final levels of the starting
point or any other point, the R.L. of which was previously
determined,
iv) Plans showing initial levels, locations of bench marks and
reduced levels should be prepared and signed by both the
parties and attached to the agreement. Work should be done
according to the specifications.

21.3.3 Test checks should be done as stipulated in the instructions at

Annexure 21.2.The test check of the levels should be carried out
independently by each officer and readings should be recorded in the
prescribed Level Book in red ink against the old levels which should
be neatly scored out wherever necessary. If the test checking carried
out reveals serious mistakes in the original levels, these should be
taken or retaken and rechecked. The test check by an officer should
be as representative as possible for the entire work done.

21.3.4 On completion of work, the levels should again be recorded in the

Level Book and the contractor’s signatures obtained. These levels
should also be test checked within one month of the date of
completion of the earth work and according to the procedure as laid
down in the case of initial levels as indicated above. The formation

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 levels as per final execution of the work should be compared with the
proposed formation levels and work got rectified within permissible
tolerance.

21.3.5 Every fourth running bill and the final bill should be paid on the basis
of levels.

21.3.6 Intermediate payments can, however, be made on the basis of borrow

pit measurements. The Controlling Site Engineer should take care
that the quantities thus assessed are not in any case more than the
actual work done.

21.3.7 In case of large scale leveling works involving both cutting and filling,
an accurate site plan should be prepared before the work is
commenced. The portions requiring cutting and filling shall then be
divided into squares and corresponding squares into filling, which are
complementary to the squares in cutting given the same number. A
table may be written upon the plan showing leads involved between
the various complementary squares. This would form a lead chart for
the work to be done. Before the work of leveling is commenced, the
lead chart shall be checked by a responsible officer of RITES as
indicated in Annexure 21.2 in presence of the contractor or his
authorized representative and his signature shall be obtained on the
same. This should form an integral part of the contract and should be
duly signed by both the parties before commencement of the work.
The quantity payable for earthwork shall be lower of the quantity
derived from cutting or filling. The payment for lead shall be based on
lead chart prepared in the aforesaid manner.

21.3.8 In case of earth to be imported, the area from where the earth is to be
imported, should be carefully predetermined before the start of the
work and wherever feasible, average lead should be worked out and
stipulated in the tender. After this is determined, initial levels of this
area should be recorded along with the initial levels of the area to be
filled. The levels should be properly checked during the progress of
work and on completion, measurements of earth work should be
recorded in both places to determine correctly the earth excavated
and carted. Payment for the earth work shall be made on the basis of

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 the lesser of the quantity in filling or cutting. Distances between the
two places should be measured correctly which should also be test
checked.

21.3.9 In respect of import of sweet earth required for horticulture operations,

the quantity of good earth required is very small and there may be
more than one source from where the agriculture soil is readily
available. Also, good earth is lifted by contractors for different works
from the same source and as such it is not possible to take levels of
the area from where the earth is imported. Hence, Provision of Para
21.3.8 will not apply in respect of horticulture works. The payments in
such cases will be made on the basis of levels in the area where earth
is to be filled.

21.3.10 Similar procedure as in para 21.3.8 should be followed while

recording measurements of disposal of earth.

21.3.11 In case of small works, borrow pit measurements and stack

measurements of earth may be recorded indicating clearly the place
of borrowing or disposal, as the case may be so that the distances
can be verified.

21.4 LOSS OF MEASUREMENT BOOK

When a Measurement Book is lost, an FIR should be lodged with the

Police. An immediate report of the facts of the case together with an
explanation of all parties concerned responsible for loss should also
be made promptly to Executive Director concerned who is empowered
to sanction the write off of the lost MB. It is necessary that the
measurements in the lost MB should be reconstructed at the earliest.
Proforma in which details are to be furnished while requesting for
write off of a lost MB is at Annexure 21.3.

21.5 PROFORMA FOR MEASUREMENT BOOK

The Proforma for various pages of MB is at Annexure 21.4. As

indicated in Para 21.1.15 after recording of Measurement for any RAB
/ Final Bill, Abstract of Measurements should be recorded at the end
in the same MB. The Abstract will cover all items for which payment

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 has been done / proposed through the current Bill. The proforma in
which Abstract is to be made out is at Annexure21.5. This Abstract is
to be recorded in the M.B. on the format stipulated, in a manuscript
form.

21.6 Computerised Measurement Books (CMB’s) and Bills to be

submitted by the Contractor

21.6.1 Application and format of the Computerised MB.

(1) In works of estimated cost put to tender of Rs.15 lakh and above,
subject to approval of SBU Head, the conventional Measurement
Books may be replaced by a bound volume of computerized
measurements to be furnished by the contractor, duly machine
numbered for the pages, and with an MB number given by the SBU
Office. The pages of these Measurement Books shall be of A-4 size.
All these Measurement Books belonging to a SBU shall be serially
numbered, and a record of these Computerised Measurement Books
shall be maintained in a separate Register in Form at Annexure
21.1.

(2) The same format as in existing Measurement Books shall be used for
the Computerised Measurement Books. The measurements shall be
carried forward from the previous recorded measurements as per the
existing procedure.

21.6.2 Mode of Measurements

1) The measurements shall be recorded and entered in

computerized format in the first instance by the contractor, and a
hard copy shall be submitted to the Engineer-in-charge. All
entries shall be made exactly as per the existing procedure.

2) These measurements shall then be 100% checked by the

Controlling Site Engineer. If Controlling site Engineer is not
available, the Project Coordinator shall arrange for 100% check of
the measurements. The contractor shall incorporate all such
changes or corrections as may be done during these checks, in
his draft computerized measurements, and submit to the

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 Engineer-in-charge the corrected computerized measurements in
the form of a book, duly hard bound in red colour on the lines of
the conventional Measurement Books now in use, and with its
pages machine numbered.

3) Test check of these computerized measurements shall be carried

out as per the existing instructions at Annexure 21.2.

4) The Site Engineer, Controlling Site Engineer and the Project

Coordinator shall record the necessary certificates for their
checks and test checks as per the existing procedure in this
Computerised Measurement Book.

5) The Computerised Measurement Book shall be allotted a serial

number as per the Register of Computerised Measurement
Books.

21.6.3 Cutting or over-writing in the computerized M.B. not allowed

1) The Comptuerized Measurement Book given by the contractor,

duly bound, with its pages machine numbered, shall have no
cutting or over-writing.

2) It is the responsibility of the Site Engineer or the Controlling Site

Engineer as the case may be to ensure that the checks and test
checks done by them in the initial draft measurements are
correctly incorporated in the Computerized Measurement Book
before they record their certificates.

3) In case of any error, the Computerized Measurement Book shall

be cancelled, and the contractor shall re-submit a fresh
Computerized Measurement Book. This should be done before
the corresponding computerized bill is submitted to the Engineer
in charge for payment.

4) The contractor shall submit as many copies of Computerised

Measurement Books as may be required, and as are specified in

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 the NIT / contract, for the purpose of reference and record in the
various offices of RITES.

21.6.4 Computerized Bill to be submitted by the Contractor

1) The contractor shall submit his running and final bills in a

computerized form in the same format as the existing
conventional bills, with all the pages machine numbered, and
hard bound, and with all the entries made as per the existing
procedure.

2) The contractor shall submit as many copies of the computerized

bills as may be required for the purpose of reference and record
in the various offices of RITES.

3) The bill shall be carried forward from the previous running

account bill as per the existing procedure.

4) These computerized bills shall be processed for payment, as per

the existing procedure.

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 SECTION 21 A

BILLING THROUGH COMPUTERIZED MEASUREMENT BOOK

21.1A GENERAL

21.1.1 (a) The Measurement Book is the basis of all accounts of

quantities whether of work done by contract or by labour
employed departmentally or of materials received and
should be so kept that the transactions may be readily
traceable in the accounts of RITES.

21.1.1 (b) A Measurement Books should be considered as very

important accounts records and maintained very carefully
and accurately as they may have to be produced as
evidence in a Court of Law.

21.1.2A Project Manager (Controlling Site Engineer) shall maintain a

register in which he will assign a unique number comprising
alpha numeral characters(to identify the name of the work) to
each MB upon printing of its hardcopy and forwarding for
payment, for the purpose of identification and traceability.
Essentially, the MB No,, No. of RA Bill, items of measurement
date of printing of its hard copy, No. Of pages, date of
forwarding for payment, Name of officer in whose custody the
MBs are kept and Name of officer to whom MBs are transferred
subsequently during the currency of contract shall be entered in
the register. Each entry shall have signature of controlling site
engineer in the register. The register thus prepared at site shall
be handed over to SBU office upon completion of works

21.1.3A When an officer or a subordinate in executive charge of works

or stores is transferred, he should hand over all the
Measurement Books received from the contractor by him to his
successor and in the prescribed register (Format at Annexure
21.1) they should be shown as handed over by the Relieved
Officer and taken over by the Relieving Officer. The transfer
should also be recorded after the last entry in each book and
signed and dated by the Relieved and Relieving Officer or
subordinate.

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21.1.4A The Computerized Measurement Books (CMBs) and bills are to
be submitted by the contractor. Accordingly, the contractor
should be required to submit each bill with the following entries–

(i) In the case of bills for work done

a. Full name of work as given in the contract

b. Location of work
c. Name of Contractor
d. Number and date of agreement
e. Date of written order to commence the work
f. Date of actual completion of work
g. Period of measurement
h. Reference of MBs having previous measurement
(ii) In the case of bills for supply of materials:–
a) name of supplier,
b) number and date of the agreement or order,
c) purpose of supply in one of the following forms
applicable to the case:-
- stock (for all supplies for stock purpose),
- “ Purchases” for direct issue to (here enter full name
of work as given in the estimate),
- “Purchase” for (here enter full name of work as given
in estimate)_______ for issue to contractor
_______________ on ________________
d) date of written order to commence supplies,
e) date of actual completion of supplies, and

f) date of measurement.

21.1.5A A separate MB shall be generated by the contractor for abstract of

each bill which should indicate quantity / rate / amount of each
distinct item of work. The measurement book used for recording
measurement should not be bound with Abstract MB. Details in
the abstract shall include quantities of each item up to previous
bill, quantity measured in the current bill and up to date quantities

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 along with rates paid in previous bill, proposed in current bill and
corresponding amounts.

21.1.6A The contractor shall submit separate soft and hard copies of
Measurement Books containing details of measurements and a
separate soft and hard copy of abstract of measurements. For
recording measurements and also for preparing abstract, the
contractor shall be required to use black font with standard type
and size. Change of font type, size (font size 12) and colour shall
be seen as violation of billing procedure. The contractor shall be
required to certify that there are no hidden cells in the
computerized measurement books. The Site Engineer shall check
100% of measurements and abstract. In case, the
measurements/abstract submitted by the contractor needs
corrections, the same shall be carried out in ink by the site
engineer and the soft copy along with the corrected hard copy
returned to the contractor (after keeping a photocopy/scanned copy
of corrections carried out) with the direction to re-submit the soft
and hard copies of MBs after incorporating the corrections. This
process may have to be repeated till no more corrections are
required. Project Manager (Controlling Site Engineer) shall verify
the correctness of the contractor’s certificate regarding no hidden
cells. He will carry out test-checking of measurements and check
all calculations and correctness of all engineering formulae used in
calculating the quantities. Description of item with item number is to
be entered in full text while recording the abstract. However, while
recording the measurements, item number and description in
abbreviated form can be made. PC at HQ will ensure the checks in
CMBs as brought out above have been carried out by the
Controlling Site Engineer before sending it for finance vetting. The
Site Engineer shall be responsible for the explanatory notes /
calculations made under description/ particulars column. The site
Engineer shall also be responsible for the correctness of the
formulae applied for the purpose of calculation of the quantity for
area/volume wherever required. Finance shall ensure the
arithmetical checks for the area / volume / quantities calculated and
the correctness of the quantities carried over to the Abstract and
calculations of the Abstract.

21.1.7A In case of extra / substituted item of work that is not covered in the
agreement, the full nomenclature shall be reproduced in full in the
MB and in the bill form.

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21.1.8A The full nomenclature of all the items shall be adopted in preparing
abstract of final bill in the measurement book and also in the bill
form for final bill.

21.1.9A If the measurements are taken in connection with a running

contract, the contractor should be asked to record a reference to
the last set of measurements, if any. If the entire job or contract has
been completed, the date of completion should be duly noted in the
prescribed place. If the measurements taken are the first set of
measurements on a running account or the first and final
measurements, this fact should be suitably noted by the contractor
against the entries in the Measurement Book and in the latter case,
the actual date of completion should also be noted.

21.1.10A The contractor shall be required to record all measurements neatly

in the Measurement Book. Detailed measurements may be
dispensed with in cases in which payments “on account” for work
actually executed are permitted by the Engineer-in-Charge on the
basis of approximate quantities without detailed measurements. In
such cases the contractor shall be required to give approximate
quantities executed by him and also record a certificate to the
effect that not less than the quantity of work recorded in MB has
actually been done. A responsible officer of RITES (not below the
rank of Assistant Manager/ Engineer, if specially authorised) shall
verify the contractor’s certificate and record that not less than the
quantity of work recorded in MB has actually been done and that
the measurements are from plans or are approximately estimated.
The bill prepared on the basis of approximate quantities shall be
treated like any other running account bill and shall be given a new
number like other running account bills.

21.1.11A Measurements of measurable work shall be recorded by the

contractor and got checked from RITES’ Site Engineer/ Controlling
Site Engineers authorised representative of Engineer in-chargeat
pre-specified intervals of time (not more than a week). In case of
any dispute regarding measurements the Site Engineer checking
the measurements should report this fact within 72 hours to the
Controlling Site Engineer / Project Coordinator in SBU office in
writing. The latter on receipt of such a report should take immediate

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 action to get the objection withdrawn by getting the measurements
checked in presence of the contractor / his representative.

21.1.12A All pages of the measurement book shall have header giving the
name of work, contract package in abbreviated form and the footer
shall be numbered. Entries should be recorded continuously and
no blank page left or torn out. Any page or space left blank
inadvertently should be cancelled by diagonal line, the cancellation
being attested and dated. This is to ensure that no entry is inserted
later. In cases where “part rate” is proposed for any items, brief
reason and rationale for arriving at part rate should be recorded in
the Measurement Book. In such cases the quantities should be
correctly indicated for each part rate (in case of more than one rate
assigned for the same item) based on measurements,

21.1.13A In case the contractor records measurements even for works which
have been executed inconsistent with stipulated specifications, the
amount worked out for such works should be disallowed or kept
under hold with suitable remarks, giving details of defective work,
or for any other reason, for which the work carried out by the
contractor is not being allowed or the payment being kept under
hold till the inconsistency is rectified.

21.1.14A The contractor shall submit the Measurement Books containing all
measurements along with Abstract Measurement Book and the Bill.
The Site Engineer should then check the correctness of
engineering formulae applied and also the calculations of quantities
and their carrying overto the abstract and to the bill furnished by
the Contractor. Each quantity included in the abstract for payment
should have linkage to the MB containing measurements of
respective item of work. Quantities having wrong or missing linkage
shall not be allowed for payment in the bill. Bills having wrong or
missing linkage or ad-hoc entries of quantity in the abstract shall be
treated as non-compliant to laid down procedure and responsibility
for lapse shall be fixed for slackness in duty.The Site Engineer
should sign in token of checking and should then place the
measurement books, Abstract MB and the bill before the
Controlling Site Engineer (if posted), who, after thorough checking
of the same should sign the bill and the measurement book at the
end of the abstract and forward the MBs, Abstract MB and the Bill
to the Project Co-ordinator in the SBU. The Project Co-ordinator
shall check the bill from all contractual stipulations including the

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 contract with the client. After checking, the Project Co-ordinator
shall forward the bill to the Associated Finance of the SBU. The
Finance shall check from the measurement booksthat all quantities
should be clearly traceable to the documents on which payments
are made. When a bill is prepared for a work or supplies, every
page containing the detailed measurements must be invariably
scored out by the Associated Finance of the SBU in diagonal line
in red ink when payment is made, An endorsement must be made
in red ink, on the abstract of measurements by the Finance giving
reference of the number and date of the voucher of payment.

21.1.15A Soft copy of the bills shall be e-mailed by the Controlling Site
Engineer to the Project Co-ordinator in SBU office in advance for
checking. Hard copy of the bill including measurement Books,
Abstract MB and other documents should be sent only by
Registered Post or courier. In case of urgency, bills can be sent by
Special Messenger. Under no circumstances bills shall be sent
using contractor’s resources.

21.1.16A Even if the work is of repetitive nature each measurement

identifying its location or any other unique feature should be
measured and recorded in the measurement book.

21.1.17A In case of supply of steel, the measurements should be recorded

as under:-.

I. On actual weight basis for bars up to 10mm dia.

II. On standard sectional weight basis for bars above 10mm dia.
In the case of latter, the measurements should indicate the total
number with length of bars in each bundle, total number of
bundles, standard weight per running meter, weight of each
bundle, total weight of all bundles etc. The entry should not be
a copy from the invoice issued by the firm. If stipulated in the
contract, steel will be issued in the same manner in the two
cases.

21.2A Test checking of measurements

21.2.1A Instructions on test check of measurements are at Annexure 21.2

and are required to be adhered to strictly.

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21.2.2A The individual items test checked should be clearly shown in the
Measurement Book and the result recorded by the officer
concerned. The items thus checked should be attested by the
dated initials of the Checking Officer.

21.2.3A A test check statement should be included with each bill giving
details of total amount & quantity billed against each item and
percentage test checked giving reference to page nos of MB for
each item. The format of test check statement shall be included in
each measurement book by the contractor in the following tabular
form:-
i. Date of check
ii. Page recording measurements subject to test check
iii. Item description and Number, Test Checked
iv. Value of measurements checked
v. Result of the check exercised
vi. Dated initials and designation of the checking officer.

The statement shall be filled in by the RITES’ officer concerned and

the result indicated by the word “Satisfactory” or “Unsatisfactory” as
judged at the time on merits of each case.

21.2.4A The Format of Test Check statement to be filled and submitted with
each RA bill/Final Bill is given at Annexure 21.6

21.3A Recording of levels for earthwork

21.3.1A In case of levelling operations and earthwork, measurements are

required to be recorded in Level Books in addition to Measurement
Books. The Level Books should be numbered, accounted for and
handled like Measurement Books.

21.3.2A Before starting the earth work, the following steps should be taken:-

i) Original ground levels should be recorded in the Level Book in

the presence of the contractor,
ii) A suitable baseline should be fixed with permanent masonry
pillars @ 150 meterscenters to provide a permanent reference
line,

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 iii) Circuit should be closed by taking final levels of the starting
point or any other point, the R.L. of which was previously
determined,
iv) Plans showing initial levels, locations of bench marks and
reduced levels should be prepared and signed by both the
parties and attached to the Level Book / MB. Work should be
done according to the specifications.

21.3.3A Test checks should be done as stipulated in the instructions at

Annexure 21.2.The test check of the levels should be carried out
independently by each officer and readings should be recorded in
the prescribed Level Book in red ink against the old levels which
should be neatly scored out wherever necessary. If the test
checking carried out reveals serious mistakes in the original levels,
these should be taken or retaken and rechecked. The test check by
an officer should be as representative as possible for the entire
work done. The test check of levels should also be included in the
test check statement showing percentage test check of total
entries.

21.3.4A On completion of work, the levels should again be recorded jointly

by the Site Engineer and the Contractor in the Level Book and
signed by the contractor and the Site Engineer. These levels
should also be test checked within one month of the date of
completion of the earth work and according to the procedure as
laid down in the case of initial levels as indicated above. The
formation levels as per final execution of the work should be
compared with the proposed formation levels and work got
rectified within permissible tolerance.

21.3.5A Every bill should normally be paid on the basis of levels. However,
with the approval of Engineer-in-Charge, alternate bills can be paid
on the basis of approximate quantities.

21.3.6A No intermediate payment without valid recorded reason shall be

permitted in case of earthwork.

21.3.7A In case of large scale leveling works involving both cutting and
filling, an accurate site plan should be prepared before the work is
commenced. The portions requiring cutting and filling shall then be
divided into squares and corresponding squares into filling, which

219
 are complementary to the squares in cutting given the same
number. A table may be written upon the plan showing leads
involved between the various complementary squares. This would
form a lead chart for the work to be done. Before the work of
leveling is commenced, the lead chart shall be checked by a
responsible officer of RITES as indicated in Annexure 21.2 in
presence of the contractor or his authorized representative and his
signature shall be obtained on the same. This should form an
integral part of the contract and should be duly signed by both the
parties before commencement of the work. The quantity payable
for earthwork shall be lower of the quantity derived from cutting or
filling. The payment for lead shall be based on lead chart prepared
in the aforesaid manner.

21.3.8A In case of earth to be imported, the area from where the earth is to
be imported, should be carefully predetermined before the start of
the work and wherever feasible, average lead should be worked
out and stipulated in the tender. After this is determined, initial
levels of this area should be recorded along with the initial levels
of the area to be filled. The levels should be properly checked
during the progress of work and on completion, measurements of
earth work should be recorded in both places to determine
correctly the earth excavated and carted. Payment for the earth
work shall be made on the basis of the lesser of the quantity in
filling or cutting. Distances between the two places should be
measured correctly which should also be test checked.

21.3.9A In respect of import of sweet earth required for horticulture

operations, the quantity of good earth required is very small and
there may be more than one source from where the agriculture
soil is readily available. Also, good earth is lifted by contractors
for different works from the same source and as such it is not
possible to take levels of the area from where the earth is
imported. Hence, Provision of Para 21.3.8A will not apply in
respect of horticulture works. The payments in such cases will be
made on the basis of levels in the area where earth is to be filled.

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21.3.10A Similar procedure as in Para 21.3.8A should be followed while
recording measurements of disposal of earth.

21.3.11A In case of small works, borrow pit measurements and stack

measurements of earth may be recorded indicating clearly the
place of borrowing or disposal, as the case may be so that the
distances can be verified.

21.4A Contractor’s bill

21.4.1A For each bill scanned copy of certified bill after payment, may be
got e-mailed to the contractor by the Project Co-ordinator and the
bill should be archived by getting it scanning it including all its
relevant documents.

21.5A As indicated in Para 21.1.6A, after recording of Measurement for

any RABill / Final Bill, the contractor should be required to record
Abstract of Measurements in a separate MB. The Abstract will
cover all items for which payment has been done in previous bills
and proposed through the current Bill. The proforma in which
Abstract is to be made out is at Annexure21.5.

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 SECTION 22

PAYMENTS TO CONTRACTOR

22.1 REQUIREMENT OF CLAUSE 7

22.1.1 Clause 7 of the Clauses of Contract of Standard Form of RITES
provides that no payments shall be made for works or supplies
estimated to cost less than rupees one lakh till after the whole of the
work or supply shall have been completed and a certificate of
completion given. In the case of works or supplies estimated to cost
more than Rs.1 Lakh, the contractor shall on submitting the bill thereof
be entitled to receive a monthly payment proportionate to the part
thereof then executed and passed by the Engineer-in-Charge. The
contractors should be required by the Engineer-in-Charge to submit
their bills by a fixed date in accordance with the terms of clause 7 of
Contract of Standard Form of RITES. The Controlling Site Engineer
should supply to the contractor a copy of the measurements and
statement of “part rates” to be paid, at least three clear days in
advance of such date fixed by the Engineer-in-Charge. Part rate can
be proposed by the Controlling Site Engineer after taking into account
the approximate value of the components of that BOQ item of work
already completed vis-à-vis all the components covered by that BOQ
item. The payment to the contractor shall be made only on
submission of the bill by him.

22.1.2 Ordinarily, running payments shall be made monthly with billing not
less than the stipulated minimum amount as per terms of the
contract, unless specifically authorized otherwise by the Engineer in
charge in specific cases. The stipulations in Schedule ‘F’, if different
to the above provisions, will prevail. While fixing the minimum amount
for billing per month, it should normally not be less than half the
average monthly value of contract (i.e.) contract value divided by the
stipulated period in months. However, the minimum amount for billing
per month in Schedule-F at the time of preparation of tender, can be
decided by Tender Approving Authority as per the requirement of
work.

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22.1.3 The Project Coordinator should maintain a register to keep a record of
the monthly running payments made to the contractors in respect of
contracts in the proforma prescribed in Annexure 22.1. As and when
a bill is submitted, the same shall be entered in this register. The
register should be reviewed by the SBU Head regularly to ensure that
payments are being made to the contractors in time. If any objection is
raised by the SBU Accounts Unit for payment of a particular item or
rate in any bill, the Engineer-in-Charge should make up his mind and
pass final orders then and there whether the item on which objection
has been raised should be allowed or not with or without modification
of the proposed rate and if it is not to be allowed then the item should
be deleted from the bill but in no circumstances the payment should
be delayed. The register should be posted at the time of making
monthly running payment to the contractor.

22.2 FINAL PAYMENTS

Final measurements should be recorded within one month of the
completion of work. Provisions of clause 9 of Clauses of Contract
should be followed for release of Final Bill payment.

22.3 TIME SCHEDULE FOR PAYMENT OF BILLS

22.3.1 The following time schedule for payment of bills and issue of
completion certificates has been prescribed in various Clauses of
Contract.

Stage Time Limit

Payment of running bill/Interim 75% of the bill amount before expiry
of 3 working days from the
presentation of the bill at the office of
Engineer-in-Charge, except where
otherwise provided for in the Special
Conditions of Contract. (5 working
days in case work is outside HQ of
SBU). Balance payment within 15
working days. (Clause 7)
Contractor’s notice of Completion 10 days of completion of the work
of work (Clause 8)

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Issue of completion certificates for Within 30 days of receipt of
works Contractor’s notice
(Clause 8). May be “Provisional” or
“Final”
Submission of final bill by the Within one month of the date of the
contractor final certificate of completion
furnished by the Engineer-in-Charge
or three months of the physical
completion of the work whichever is
earlier(Clause 9)
Payment of final bills for Works up 3 months of receipt of final bill from
to Rs. One Crore the
contractor in the office of Engineer-
in-Charge
(Clause 9)
Payment of final bills for works over 6 months of receipt of final bill from
Rs. One Crore the Contractor in the office of
Engineer-in-Charge. (Clause 9)

22.3.2 Though the above time lines are as per relevant clauses of contract,
for processing and release of the payment of final bills for works
having Tendered Value more than Rs. 1.00 crore, the following
timelines are to be adhered to by RITES staff in cases where RITES
supervises the work and releases the payments to contractors from
fund deposited by client:

1. Processing of bill on the site – 15 days

2. Technical check – 15 days
3. Financial check for deviation and escalation if any – 20 days
4. Technical reply/approval – 10 days
5. Financial Check – 20 days
6. Resolution of queries raised by the finance division and approval
– 05 days
7. Release of payment – 05 days

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22.4 INSPECTION OF WORK NEARING COMPLETION / AFTER
COMPLETION

22.4.1 Before the work is declared as completed in all respects and final
payment is released to the contractor in respect of the following
works, it has to be inspected by the Engineer-in-Charge as far as
possible. Failing this, the inspection will be done by the Project
Coordinator in SBU office.

i) Building Works Rs. Ten Crore and above

ii) Electrical, Water Supply / Rs. Three Crore and above
Sanitary Works
iii) Road /Runway Works Rs. Ten Crore and above
iv) Horticulture Work Rs. Thirty Lakhs and above.

22.4.2 The Engineer-in-Charge / Project Coordinator shall also record the

following certificate:-

“I have inspected the work of ......................contract value of which is

Rs. ......................vide Agreement No. .......................today. As a
result of this inspection and my previous inspections I find that the
work has been completed satisfactorily. There are no noticeable
defects except for the following:-__________________

22.4.3 The above certificate is required to be recorded within a period of

three months from the date of completion of the work.

22.4.4 In the case of works whose contract value is less than the above
mentioned values, the Controlling Site Engineer has to record similar
certificate.

22.4.5 The defects noticed should be rectified by the contractor or by RITES

at his cost, action for which should be taken in terms of the contract.

22.4.6 The Engineer-in-Charge or the Project Coordinator in SBU office is

also required to record the above certificate in respect of contracts for
building works exceeding Rs. Three Crores where such contracts are
in respect of part of a technically sanctioned estimate of Rs. Twenty
Crores and above.

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22.5 COMPLETION CERTIFICATE
22.5.1 An attested copy of the completion certificate will be attached with the
office copy of the final bill of the contractor and remain on the record
of the SBU. Engineer-in-Charge shall not make final payment till this
certificate is recorded, and attached to the office copy. This certificate,
however, will in no way reduce the responsibility of the Engineer-in-
Charge and Accounts Officer of SBU office for due check of the work
and the bill as required by this Guide book.

22.5.2 The certificate is required to be recorded by the Engineer-in-Charge /

Project Coordinator in whose time the work is completed irrespective
of the fact that a part of the work may have been done during the
incumbency of his predecessor. The Engineer-in-Charge / Project
Coordinator recording the certificate is not responsible for bad work
which may have been covered up during the incumbency of his
predecessor as for instance, work in foundations or below the
concrete flooring. But he is required to point out the defects which
appear outwardly, for instance, defects in the doors and windows,
plastering, flooring, painting etc. The Engineer-in-Charge / Project
Coordinator should necessarily record the completion certificate for
the works completed in his tenure on the post before he hands over
the charge to his successor on transfer.

22.6 PAYMENT THROUGH BANK

Payment due to contractor, if so desired by him can be made to his
Bank instead of direct to him provided the contractor furnishes to the
Engineer-in-Charge the following:-
i) An authorization in the form of a legally valid document such as
a power of attorney conferring authority on the Bank to receive
payment.
ii) His own acceptance of the correctness of the accounts made
out as being due to him by RITES or his signature on the bill
or other claim preferred against RITES before settlement by the
Engineer-in-Charge of the account or claim by payment to the
Bank. While receipt given by such Bank shall constitute full and
sufficient discharge for the payment, the contractor should

226
 wherever possible, present his bill duly receipted and
discharged through his Bankers.

22.7 DEDUCTION OF INCOME TAX AT SOURCE

22.7.1 Under Section 194C of the Income Tax Act, 1961, deduction of
Income Tax is required to be made at source by disbursing officers
from payments made to contractors in certain cases.

Before signing the first and final bill/running account/or the final bill,
the SBU office should see that:

i) the statutory deduction on account of income tax wherever due

has been made from the bill of the contractors and
ii) the same is specifically shown in the form of running and final
bills forms as described in Para 24.2.

22.7.2 It is open to the contractor to make an application to the Income Tax

Officer concerned and obtain from him a certificate authorizing the
payee to deduct tax at such lower rate or deduct no tax as may be
appropriate to his case.

22.7.3 The tax deducted should be paid to the credit of the Central
Government within one week from the last day of the month in which
the deduction is made.

22.7.4 RITES should issue a certificate of ‘Tax Deducted at Source’ to the

contractor as per provisions in the Income Tax Act.

22.8 DEDUCTION OF BUILDING AND OTHER WORKERS WELFARE

CESS AT SOURCE

Cess Act is a Central Legislation but is to be implemented by the

State Governments. In the Cess Act, there are provisions for
deduction of cess from contractor’s bills and depositing them with
State Welfare Board. These provisions should be followed in cases of
Works in States where Building and other Workers’ Welfare Cess Act
has been brought into force.

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 SECTION - 23

ADVANCES TO CONTRACTOR

23.1 TYPES OF ADVANCES

23.1.1 Clause 10 B of Clauses of Contract deals with the subject of payment
and recovery of the following types of advances:

i) Secured Advance on non-perishable materials / items of

perishable nature.
ii) Mobilization Advance.
iii) Plant & Machinery Advance.

23.1.2 The provisions in this clause should be carefully gone through and it
should be ensured that the conditions laid down are strictly complied
with while paying such advances. Special care will also have to be
exercised in recovery of the principal amount of advances as well as
the interests on Mobilization Advance and Plant & Machinery
Advance. To maintain proper accountal, the payment of advances
and recovery with interest should be effected through running bills.
Necessary provision has been made in the format for running account
bills to show the breakups of different types of advances to be paid to
the contractor and the amount to be recovered from the contractor
through the running bills for each type of advance. In the case of
Secured advance on Contractor’s materials, details have to be
appended to the running bills in the format specified. The recovery of
Secured ADVANCE ON materials is without interest and is linked to
the incorporation of the materials in works.

23.1.3 (a) Mobilisation Advance shall be made applicable only for

specialized and capital intensive works where estimated cost
put to tender is Rs. Two Crores and above. It shall be
admissible upto 15% of the tendered value at 10% simple
interest and such advance shall be released in two equal
installments on specific request of contractor as per terms of
the agreement.

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 (b) The second installment of Mobilisation Advance should be
released only after getting satisfactory utilization certificate from
the contractor for the first installment.
(c) The power to make provision for Mobilisation Advance in a
tender document for any particular work shall rest with the NIT
Approving Authority. In case, it is proposed to provide for
mobilization advance more than 10% of the cost of the work,
prior approval of the concerned Director, with the concurrence
of finance, should be obtained before inviting the tenders. This
is in partial modification of SOP item 2.2 which had given
powers to EDs in some cases.
(d) The interest on advance shall be calculated from the date of
payment to the date of recovery, both days inclusive. In case it
is proposed to provide interest free Mobilization Advance, prior
approval of the concerned Director with the concurrence of
finance should be obtained before inviting the tenders. This is
also in partial modification of SOP item 2.2 which has given
powers to EDs in some cases.
(e) The Mobilization Advance shall be against BGs. of a
Scheduled Bank for 110% of the full amount of that installment.
Number of BGs shall not exceed three.
(f) The recovery should be commenced after 10% of work is
completed and billed. The entire amount together with interest
shall be recovered by the time 80% of the gross value of
contract is executed and billed.
(g) Recovery of Mobilisation Advance at an intermediate stage
should be effected, if necessary by encashment of part B.G., if
the appropriate prorata amount of advance is not available from
the work done by the Contractor.
23.2 CERTIFICATES TO ACCOMPANY BILLS

23.2.1 The certificates as per format in Paras 23.2.2 or 23.2.3 or 23.2.4

should be recorded by the bill signing officer and should accompany
the running accounts/final bill submitted to the Engineer-in-Charge.

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23.2.2 (a) Payment to contractor “Secured Advance on non-
perishable materials”:
i) The materials for which Secured Advance is being
proposed are non-perishable, non-fragile and non-
combustible.
ii) The quality of materials is as per stipulated specifications.
iii) The quantities of materials for which advance is being
proposed have actually been brought to site.
iv) The materials are adequately stored and protected against
damage by weather or other causes.
v) The materials have not been incorporated in the work.

vi) The Secured Advance can be paid upto an amount not

exceeding 90% of the assessed market value of the
materials or an amount not exceeding 90% of the material
element cost in the tendered rate of the finished item,
whichever is lower.

b) Payment to contractor “Secured Advance on perishable

materials”
i) The materials are covered by comprehensive insurance for
their full cost and for the period stipulated in the contract.
ii) The quality of materials is as per Specifications.
iii) The quantities of materials for which advance is being
proposed have actually been brought to site.
iv) The materials are adequately stored and protected against
damage by weather or other causes.
v) The materials have not been incorporated in the work.
c) Recovery from the contractor towards “Secured Advance
for non-perishable and perishable materials”
The materials have actually been incorporated in the works.

23.2.3 Payment to contractors “Mobilization Advance”

The advance is covered by a Bank Guarantee Bond from a

Scheduled Bank as specified by the Engineer-in-Charge for 110% of

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 the Installment amount of Advance and for the period as stipulated in
the Contract.

23.2.4 Payment to contractor “Plant & Machinery Advance”

i) The Plant / Machineries have been insured for a sum adequate

for their replacement at site for the period stipulated in the
Contract.
ii) The items for which advance is proposed have been
hypothecated to RITES.
iii) The items are considered necessary for the works and have
been maintained in good working condition and are available at
site.

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 SECTION 24

PREPARATION, EXAMINATION, VERIFICATION

AND PASSING BILLS FOR PAYMENTS

24.1 PREPARATION OF BILLS

24.1.1 The Contractor is required to prepare the bill, in one of the forms
prescribed, as applicable in each case, for the work done by him and
submit the same to the Controlling Site Engineer.
24.1.2 Before the bill of a Contractor / Supplier is passed, the entries in the
Measurement Book relating to the description and quantities of work /
supplies should be scrutinized by the Controlling Site Engineer and
the calculations of “Contents or Area” should be checked
arithmetically under his supervision. The bill should then be checked,
passed and paid in the office of the Engineer in Charge from the
Measurement Book entries.
24.1.3 Full rates, as per agreement / supply order should be allowed only if
the quality of work done or supplies made conforms to the
specifications / standards as laid down under the agreement. If the
contract is determined, or an on account payment is to be made when
the contract is to run, a “part rate” as considered reasonable may be
allowed on BOQ item, with due regard to components of the work
remaining to be done under the BOQ item and general terms of the
agreement, after getting the “part rate” statement approved from the
bill passing authority.
24.1.4 In case of supplies, the payment is not permissible until the stores
have been received, examined and accepted. In case payment has
been permitted on production of despatch documents etc., the
payment should be treated as advance against the final settlement on
receipt, examination and acceptance of the stores.
24.1.5 If the contract is for a completed item of work and the Contractor has
been supplied materials of any description from RITES, necessary
recoveries on account of the cost of the materials supplied to him by
RITES should be effected from each bill at the recovery rates fixed for
the purpose.

24.2 FORMS OF BILL FOR PAYMENT

24.2.1 The authorized forms of bills to be used for payment to contractors/
suppliers and their utility are described below:-

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 a) First and Final bill form should be used for making payments
both to contractors for work and to suppliers, when a single
payment is made for a job or contract i.e. on its completion. A
single form may be used for making payments to several
payees, if they relate to the same work / section of work or to
the same head of account in the case of suppliers. RITES
Form referred to in Para “b” below may be adopted for First and
Final Bill also.
b) Running Account Bill / Final Bill RITES FORM - (Copy at
Annexure 24.1) This form is used for all running and final
payments to contractors and suppliers (other than those
relating to lump sum contracts) including cases where advance
payments are proposed to be made or are already outstanding
in respect of the same work against the contractor. In case
where advances are to be made or are already outstanding in
respect of the same work against the contractor, account of
such advances, should be attached to the bill as per relevant
Annexure in the Form of RITES.
<

24.3 AUTHORITIES TO PASS THE BILLS

Payment of the Running Bills will be processed by the Project

Coordinator who will attend to the queries, if any, of the Accounts
Section. The Final Bills will also be processed by the Project
Coordinator in a similar manner. Payment of Running Account Bills as
well as the Final Bill will be approved by the Engineer-in-Charge.
When Engineer-in-Charge is lower in rank to the SBU Head,
intimation of payment of RA Bills as well as the Final Bill should also
be sent to the SBU Head.
24.4 PAYMENT FOR WORK DONE

Payment for work done or supplies made on running account should

be made periodically on submission of the bill by the contractor /
supplier as per provisions in Clause 7 of Clauses of Contract read
with Special Conditions.

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24.5 DEVIATION STATEMENT
Deviation Statement in the Proforma at Annexure 24.2 should be
submitted with every running bill starting from the bill when gross
value of work done exceeds 50% of Contract Value and with final bill.

24.6 BANK GUARANTEES - CHECK AND CUSTODY

Guidelines on Check and Custody of Bank Guarantees furnished by

the Contractors are at Annexure 24.3

24.7 DOCUMENTS TO ACCOMPANY BILLS

Documents to accompany running account bills are listed at

Annexure 24.4 and those for final bills at Annexure 24.5.

24.8 CHECK OF BILLS AT SBU OFFICE

Check list of items to be scrutinised by SBU office on the running
account bills is at Annexure 24.6 and that for final bill at Annexure
24.7.

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 SECTION 25

QUALITY ASSURANCE AND CHECK LISTS

25.1 INTRODUCTION

(1) The Quality Assurance activity has to ensure a progressively

improved and uniform quality of finished work. 'Process Control'
is essential in building construction to ensure that the work in
different phases is executed in a manner predetermined and
laid down in specifications. In order to achieve above, the pre-
requisites cover among other things, an inbuilt provision in the
contract for a system of continuous check on quality by the field
staff and the contractor.
(2) Maintenance of quality has to be imbibed in the minds of the
contractor as well as the field staff of RITES. It is better to have
a system in which quality of work is achieved during the
construction stage itself, rather than indulge in ‘fire fighting’
activities after the damage has been done, by way of post-
construction ‘quality control.’
25.2 QUALITY ASSURANCE PLAN

A Quality Assurance Plan has to be a part of the tender documents.

This shall indicate all the required tests to be done during the
construction stage, all the relevant and applicable Codes,
Specifications and Standards, as well as acceptable criteria for each
relevant item of work, materials used and the processes employed. All
these have to be checked/tested periodically at the required intervals
by the contractor and the RITES field staff and the reports shall have
to be signed by the contractor as well as field staff. Copies of all such
reports at various stages shall be appended with each running bill and
the final bill, failing which no payment shall be released to the
contractor. The Engineer in Charge shall, not be absolved of his
responsibility to ensure that the ‘Quality Assurance Plan’ is complied
with in every work under his charge.

25. 3 METHODS STATEMENT

In all major works of contract costing more than Rs. 10 Crores,
provision shall be made in the tender documents for the contractor to
submit a 'Methods Statement for approval of Engineer-in-charge,
soon after the award of work to him. The "Methods Statement" is a

235
 statement by which the construction procedures for important
activities of construction are stated, checked and approved. The
‘Method Statement‘ should have a description of the item with
elaborate procedures in steps to implement the same, the
specifications of the materials involved, their testing and acceptance
criteria, equipments to be used, precautions to be taken, mode of
measurements etc.

25.4 RESPONSIBILITY FOR QUALITY ASSURANCE

The direct responsibility for ensuring proper quality of work as per
approved specifications rests with the field staff. The Engineer-in-
Charge shall be overall responsible for management of Quality
System and Procedures for the works under his charge. The power of
acceptance of substandard work delegated to the Engineer-in-Charge
should be used sparingly and under exceptional circumstances as
emphasised under para 14.2 of this Guidebook.

25.5 CHECKLISTS

(1) The Controlling Site Engineer should ensure that members of

his construction team, as well as the contractor’s supervisors-
in-charge are fully aware of the specifications and method of
execution of any new/fresh item of work to be taken up in the
next 2 weeks. The field staff shall carry the required field testing
instruments to ensure on-site quality assurance check on a
regular basis and to enable senior officers to conduct checks
during their site visits.

(2) ‘Checklists of Specifications for Civil Engineering Works for

Quality Control' have separately been issued to all RITES
officers and staff. As and when any item is taken up for
execution, the field staff should go through the check list and
answer each and every query there in. If answer to any query is
in the negative, suitable remedial measure should be taken at
the process stage itself.

(3) To avoid dampness and leakage, the Controlling Engineer shall

ensure that necessary tests are carried out for proper slopes of
canopies, chajjas, terracing, drainage arrangements, water
tightness of expansion joints, joints in the water supply,
drainage and sanitary works before these are

236
 covered/concealed and also ensure rectification of defects
noticed.

(4) As early as possible after award of work, full-scale sample

should be prepared for repetitive items. Such samples should
be approved by the Engineer-in-Charge. Some examples are

(i) Sample quarter for residential areas

(ii) Sample unit like corridors, toilet, room in case of non-
residential areas
(iii) AC ducts/AC grills
(iv) Window grills with or without coolers and ACs
(v) False ceiling
(vi) Shafts
(vii) External and internal finishing
(viii) Electrical switch board/electrical fittings/points
(ix) Kitchen
(x) Door/window fittings etc.

25.6 TESTING LABORATORY

(1) In all major works of contract costing more than Rs 10 Crores,

the contractor shall be required to establish complete field
testing laboratory and arrange all the relevant codes and
standards. The list of such testing equipments, codes and
standards shall be specified in the tender documents. The
contractor shall also provide the minimum staff, as specified, for
quality assurance.

(2) Need also arises for carrying out specialised tests, physical,
chemical, ultrasonic, X-ray and various other types of tests
which cannot possibly be carried out in a site laboratory. Such
tests may be got carried out in approved laboratories in Govt.
Sector, Semi Govt sector or in private sector. In case of
laboratories in private sector, past record and reputation of the
laboratory must invariably be given due consideration before
approval by the Engineer-in-Charge.

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 SECTION 26
CHIEF TECHNICAL EXAMINER’S ORGANISATION AND
COMMON IRREGULARITIES OBSERVED

26.1 FUNCTIONS OF CTE ORGANISATION

The Chief Technical Examiner’s Organisation is the technical wing of
the Central Vigilance Commission. The Chief Technical Examiner’s
Organisation conducts inspections of works of RITES from the
vigilance angle on its own or on a complaint being received
by/referred to them. The inspections can be carried out by them for
works of any magnitude.

26.2 RETURNS

26.2.1 In order to facilitate selection of work for inspection, a quarterly return

has been prescribed for submission to them giving the list of works in
progress. These returns are consolidated for various units of RITES
and sent to CTE. The returns indicate clearly the name and address
of Engineer-in-Charge under whose charge the work is being got
executed. The Quarterly Progress Reports are to include all civil
works where accepted tender value exceeds Rs. Five Crores,
electrical works exceeding Rs. One Crore and horticulture works
exceeding Rs. Ten Lacs and these are to be submitted on separate
sheets for civil, electrical and horticultural works. These returns are
required to be submitted for quarters ending March, June, September
and December.

26.3 INSPECTION BY CTE

26.3.1 Intimation regarding the inspection/examination of works by CTE is

sent by him to the Engineer-in-Charge concerned with a copy to
CVO/RITES well in advance. In order to enable the inspection to be
carried out property, various documents relevant to the work are
generally asked for by CTE to be kept ready at site. A list of such
documents is given in Annexure 26.1. This list is not
exhaustive/comprehensive. Any other record considered relevant for
inspection can be called for by CTE.

26.3.2 The inspection reports are sent by CTE to the Engineer-in-Charge

concerned, which the Engineer-in-Charge shall reply within 30 days or
the period mentioned in the letter. Any matter of serious nature or

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 such matters pertaining to sanctions of estimates, NITs, acceptance
of tenders etc. dealt by higher officers may be referred by CTE for
reply directly by the higher officers. In respect of such paras, the
Engineer-in-Charge shall send his comments, if required by the higher
officers, to the concerned officer and not directly to CTE.

26.3.3 In order to expedite replies and settle the points and to ensure timely
action, it is essential that the time limit fixed by CTE is strictly
adhered to by the officers of RITES at all levels. For keeping a proper
watch on the disposal, the Engineer-in-Charge shall maintain a
register.

26.4 RECOVERIES OF OVERPAYMENTS POINTED OUT BY THE CTE

26.4.1 Normally the recoveries of over payments pointed out by the CTE
should be made within a period of three months from the date of issue
of memorandum by CTE. The overpayments arising out of the defects
pointed out by the CTE should be promptly assessed and if accepted
by the Engineer-in-Charge, the recoveries should be effected from the
money due to the contractor either from the same work from the
immediate running bill or from any other work or from the security
deposit. In no case, action to recover the overpaid amount should be
kept pending or kept in abeyance on account of the case being
before the arbitrator. Action in terms of the award can be taken after
the award is received and accepted by the competent authority.
Recoveries/adjustment of the amount in question should, in no case,
be effected by debiting the amount to RITES account. In order that the
recoveries of over payments pointed out by CTE are promptly
effected, a register of over payments pointed out by the CTE
Organisation and subsequent recoveries effected should be
maintained by the Engineer-in-Charge in the proforma given at
Annexure 26.2.

26.4.2 Although the inspection of CTE is a part of the activities relating to the
Works Contract with the Contractor, yet the CTE is not a party to the
contract. No reference should be made to CTE’s
inspections/examinations of works in any correspondence made with
the contractor. Notice for rectification of defects, recoveries to be
made etc. shall be issued by the Engineer-in-Charge, who is the party
to the contract, acting for and on behalf of RITES.

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26.5 COMMON IRREGULARITIES POINTED OUT BY THE CTE
A compilation of common irregularities pointed out by CTE during
examination of projects handled by RITES and other similar
Government Organisations is at Annexure 26.3 for guidance.

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 SECTION 27

OPENING, CUSTODY AND FINAL DISPOSAL OF

ESSENTIAL PROJECT DOCUMENTS

27.1 PREAMBLE

27.1.1 The successful execution of any project depends to a large extent on

the proper maintenance of essential records till all final accounts are
settled with the Client, sub consultants, if any, and contractors. Some
of the documents or records will be required to be opened and
maintained, some in SBU Office and some in Field Offices. The
documents will be required to be retained for a specified period,
depending on the type of document, as stipulated in Annexure19.5 of
this Guide-book. The documents pertaining to projects where there
are arbitration or court cases have to be retained till the cases
including appeals are settled. A proper system has also to be evolved
for periodic review and weeding out of documents for which the
stipulated period for retention has expired.

27.2 COMMON DEFICIENCIES OBSERVED IN SYSTEM OF

MAINTENANCE AND DISPOSAL OF RECORDS

i) No uniform system on numbering/name of file and the officer at

different stage responsible for maintenance/custody of files.

ii) Non-maintenance of Index of Documents resulting in problems

in retrieval of relevant documents, even if they are available.

iii) Site office documents not sent to Project Office on completion

of works and even in cases where sent to Project Office, sent
without any index of such documents.

iv) No systematic weeding out of old documents resulting in

uneconomic usage of storage space.

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27.3 PROCEDURE ORDER ON OPENING, CUSTODY AND FINAL
DISPOSAL OF ESSENTIAL PROJECT DOCUMENTS

Printed Manual of Office Filing System had been issued in March

2005 indicating the procedure to be adopted in maintenance and
disposal of records pertaining to projects. This has now been
rationalised and the Procedure Order on “Opening, Custody and Final
Disposal of Essential Project Documents” is given at ANNEXURE
27.1.

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 SECTION 28

PERFORMANCE OF CONTRACTORS

28.1 In order to ensure that contractors whose contract has been

determined by RITES and those contractors who have record of poor
performance such as abandoning the work, not properly completing
the project, inordinate delay in completion, litigation history or financial
failures etc. in RITES’ one division / SBU do not get prequalified for a
work in some other Division / SBU of RITES, all SBU Heads are
required to periodically review the performance of contractors on all
on-going projects and in case they are of the opinion that some
contractors are performing poorly and that entrusting another project
to them would stretch their resources and affect the progress of
current project(s), they should process the case for declaring such
contractors as poor performers.

28.2 In this connection, so far as those contractors are concerned whose

contract has been determined by RITES, they would be deemed to be
poor performers in terms of Clause 3(a)(i) of GCC. The case of such
contractors should be sent by the SBU Head to the Divisional Head
for declaring them as poor perfomers and placing their name in the
‘Negative List of Contractors’. The Divisional Head would declare
such a contractor as a poor performer and place his name in the
‘Negative List of Contractors’.

28.3 In the case of other contractors, the SBU Head should cause a notice
to be issued by the Engineer-in-Charge to the contractor in terms of
Clause 52.7 of GCC. In case no reply is received in response to the
notice within the notice period or the reply received is not satisfactory,
the SBU Head would send his recommendations giving full
justification for declaring the contractor as a ‘poor performer’, to the
Divisional Head

28.4 After considering the recommendations of SBU Head, if the Divisional

Head is satisfied about the poor performance of a contractor, he
would approve the name of such a contractor to be declared as a

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 ‘poor performer’ and placing his name on the ‘Negative List of
Contractors’.

28.5 After approval of Divisional Head on placing a contractor on the

`Negative List of Contractors’ the SBU Head shall inform the
contractor in writing about the decision to declare him as a `Poor
Performer’ and placing him on the `Negative List of Contractors’ for
the specified period.

28.6 The Divisional Head would send the names of such contractors to the
Contract Policy Cell which will maintain the ‘Negative List of
Contractors’ and arrange for uploading the same on RITES’ website
so that the ‘List’ is accessible only to RITES’ officials. In future, every
Tender Committee will be required to certify that the bidder(s)
recommended by them is/are not on RITES’ Negative List of
Contractors. In case of Joint Venture contractors in the Negative List,
the JV as well as individual members of JV shall not be considered for
future works in RITES till their names are taken off from the Negative
List.

28.7 The Negative List will be reviewed at the beginning of every financial
year and the Divisional Head may consult the SBU concerned before
removing the name of a contractor from the Negative List. However, a
contractor’s name will be automatically removed from the ‘Negative
List’ at the end of two years from the date the name is placed on the
list.

28.8 It is to be noted that disqualification for a particular tender and banning

of business dealings with an agency, are two different matters. The
guidelines on banning of business dealings are given at Annexure A
to RITES’ Tender and Contract Document for Works.

28.9 Banning of Business Dealings : The guidelines for banning of

business dealings are given at Annexure A to the Integrity Pact with
Bidder/Contractor which is available as Annexure VIII to RITES’
Tender and Contract Document for Works. The procedures
laid down therein for ‘Suspension of Business Dealings’ and for
‘Banning of Business Dealings’ need to be followed meticulously.

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28.10 In order to ensure that there is no legal lacuna in the processing of
cases relating to Suspension/Banning of Business Dealings and in
communicating with the bidder / contractor in this regard, standard
proformae for the ‘Show-cause Notice’ and for conveying the
decision of the competent authority for Suspension/Banning of
Business Dealings have been prepared and these are given at
Annexures 28.1, 28.2 and 28.3 for guidance.

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 SECTION 29

E-TENDERING

29.1 INTRODUCTION OF E-TENDERING IN RITES

29.1.1 The system of e-Tendering has been introduced in RITES Ltd.

through National Informatics Centre (NIC).

29.1.2 E-Tendering system shall be applicable for works having estimated

cost put to tender more than Rs. 10 Lakhs.

29.1.3 At present the Application Service Provider (ASP) is NICSI/NIC

through Central Public Procurement Portal (URL:
https://etenders.gov.in/eprocure/app). User’s manual for bidders has
been hosted on this web page by ASP.

29.1.4 ASP is available through RITES IT Department to provide support for

supply of documentation covering 'User Manual' and ‘Vendor Manual’
for implementation of the system along with required training to RITES
officials and interested contractors.

29.1.5 It is mandatory for all bidders to have Class – III Digital Signature
Certificate (DSC) in the name of the person who will sign the bid from
any of licensed Certifying Agency (CA). Bidders can see the list of
licensed CAs from the link http://www.cca.gov.in. Subsequently,
bidders are required to get the same registered with ASP.

29.2 DIGITAL SIGNATURES

29.2.1 All the concerned officials of RITES Ltd. shall have to obtain Class –
III Digital Signature Certificate (DSC) by forwarding their applications
in the form available at URL
http://ritesltd.com/upload/misc/DSC_reg_form_4.4.pdf through their
SBU Head to IT Department, RITES.

29.2.2 The Digital Signature Certificate (DSC) shall be valid for a period of 2
(Two) years.

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29.2.3 Each SBU Head shall act as System Administrator. He may nominate
an officer not below the rank of Assistant Manager (Regular) to act on
his behalf.

29.2.4 In case of transfer of nominated RITES official dealing with the tender
process, the System Administrator / SBU Head shall immediately
nominate another official. The new incumbent if not in possession of
digital signature, has to obtain the same as explained in para 1 above.

In case the new incumbent already has digital signature, then details
of his digital signatures like name & user ID need to be intimated to
System Administrator of concerned SBU or his authorized
representative for updating so as to enable him to use E-Tendering
system.

29.2.5 Updating of Digital Signature - To update Digital Signature

Certificate to individual user ID, the officer concerned should send a
mail to the System Administrator of concerned SBU or his authorized
representative mentioning Name and User ID for reference.

29.2.6 Change of password - After login to the e-Tendering portal the user
can change the password by clicking on “My Profile -> Change
Password”.

29.2.7 To retrieve the lost password - A mail to the e-mail ID of the System
Administrator of concerned SBU or his authorized representative shall
be sent mentioning name and user ID to retrieve the lost password.

29.3 PREPARATION OF BID DOCUMENT

29.3.1 Relevant paras of Section 4 for Preparation of Estimate and Section 6

for preparation of Tender Documents of these Guidelines should be
referred to. The Project Co-ordinator and his team will be responsible
for correctness of the formulae adopted in BOQ.

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29.3.2 Templates / Formats for various types of financial bids like percentage
rate tenders, item rate tenders and combination of both are available
on the CPP Portal of NIC and may be adopted.

29.3.3 For each work, the SBU Head shall nominate on the hard copy the
Tender Creator and Tender Reviewer (Project Coordinator). Tender
Approver will be the authority competent to approve tender document
as per SOP.

29.3.4 The tender preparing officer is Tender Creator online. The Tender
Creator shall prepare the tender on hard copy and submit the same to
Project Coordinator. The Project Coordinator shall obtain the approval
of Tender Document from the Competent Authority on hard copy.
During this process, the Project Coordinator shall get the
modifications / changes suggested by him or by higher officials or by
Tender Approving Authority, incorporated by Tender Creator in tender
document. The system authorizes only the Tender Creator to make
modifications in the tender created by him. After incorporating all
changes / modifications, the Tender Creator shall submit the tender to
Tender Publisher (i.e, tender document approver) online and if Tender
Publisher finds the tender document to be okay, Tender Publisher will
publish the same online. If Tender Publisher finds anything to be
modified, he cannot modify the same online. He has to send the
tender document back to Tender Creator. The Tender Creator will
modify the tender document accordingly and shall submit the same to
Tender Publisher. In cases where tender document approving
authority is above SBU Head rank, the approval for tender document
shall be taken on hard copy and SBU head shall act as tender
approver (i.e, Tender Publisher) online.
29.3.5 The list of documents to be scanned and uploaded by the intending
bidder shall be as per Clause 28.0 of Notice Inviting Tender. However
if any, clarification in documents/deficient documents are required
then the same can be sought from the bidder by Convenor of the
Tender Committee. In the cases, where Convenor of Tender
Committee is not associated with the work for which tenders are
invited, Project Coordinator shall assist Convenor of Tender
Committee to seek clarifications from the bidder. The
clarifications/deficient documents can be obtained from bidders online
only once. In case, the clarifications/deficient documents are to be

248
 obtained more than once, the same shall be done through e-mail by
concerned officials. The clarifications/deficient documents shall not be
obtained by post/courier.

29.3.6 To avoid failure of system to download the bids submitted by the

contractor, it is suggested that opening of bids during rush hours
should be avoided. Opening time of bids may be kept early in the
morning as far as possible.

29.4 PUBLICITY

29.4.1 Time limit for publicity of bids shall be as per the provisions of Para
6.10 of these Guidelines.

29.4.2 Specimen Press Notice for publication in News Paper:

In case of e-Tendering there is no necessity to publish a large size

Press Notice in News Papers. Only a condensed form of Notice
Inviting e-Tenders is to be published in leading News Papers as per
Para 6.6 of these Guidelines for wide publicity as mentioned below:

RITES LTD
Notice Inviting e-Tenders
The ………… (Designation of the Officer), RITES Ltd. invites on behalf
of …………………. online item rate / percentage rate / combination of item
rate & percentage rate / lump sum bids on single / two packet system for the
following work(s):-
1. NIT No. ……………………Name of Work………………..Estimated Cost
Rs…………….Earnest Money………Period of completion…………….Last
time & date of submission of bid………….

2. NIT No. ……………………Name of Work………………..Estimated Cost

Rs…………….Earnest Money………Period of completion…………….Last
time & date of submission of bid………….

The bid forms and other details can be obtained from the website
https://etenders.gov.in/eprocure/app
Addendum / Corrigendum, if any, shall be hosted online only

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The press notice should not be published in the tabular form, which occupies
much more space than required and ultimately increases the cost of
advertisement.

29.5 UPLOADING OF BID DOCUMENT

29.5.1 All the documents such as NIT including Information and Instructions
for contractors, all the conditions of NIT, Schedule of Quantities,
Drawings and other documents shall be uploaded at one time.

29.5.2 System Administrator of concerned SBU or his authorized

representative shall enter the names and other required particulars of
Tender Creator and Tender Publisher for every tender in the E-tender
system.

29.5.3 Deleted.

29.5.4 Deleted.

29.5.5 Under no circumstances bid document is to be got uploaded through

Application Service Provider (ASP). In case of any difficulty,
concerned officials can seek assistance from IT Department, RITES
or ASP.

29.5.6 The tenders can be published online from 9.00 AM up to 6.55 PM on

any day between Monday to Saturday.

29.5.7 There should be a minimum gap of 24 hours between Bid submission

End Time & date and Bid Opening Time & date.

29.5.8 The bid submission end date or Bid opening date should not fall on
Sunday

29.5.9 As per Clause 6.1 of Notice Inviting Tenders and Instructions to

Tenderers the tender document can be modified by RITES by issue of
addenda/corrigenda till seven days prior to the deadline for
submission of tenders. However, the System does not permit the
Financial Bid to be modified after the Bid Submission Start Date and
Time. Therefore, if any modification is to be made in the Financial Bid,
it has to be done before commencement of Bid Submission Start Date

250
 and Time. The Financial Bid can be changed / modified through
addenda/corrigenda by Tender Creator and Tender Publisher only up
to the start of the Bid submission time and date. The Financial bid
cannot be changed/modified once the Bid submission time and date
start. However, extension of the deadline for submission of tenders
may be given at any time before Bid opening date and time.

29.6 ADDENDUM / CORRIGENDUM OF BID

29.6.1 Addendum / Corrigendum shall be hosted online only.

29.6.2 The Project Coordinator shall obtain the approval for any addenda /
corrigenda from competent authority on hard copy. The Tender
Creator shall make Addendum / Corrigendum part of tender and
forward it to Tender Publisher online for publishing.

29.7 OPENING OF BIDS

29.7.1 Four officials shall be named for opening of the tender as Tender
Openers by the tender approver (Tender Publisher) at the time of
creation of tender. In case where tender approver (as per SOP) is
above SBU Head level, SBU Head shall name the four officials. Out
of those four officials, two shall be nominated (on or before the Bid
Opening Date) by the SBU Head / Project Coordinator as Tender
Openers for opening the tender using their Class-III DSC.

29.7.2 The Tender Openers shall be RITES’ Regular officers not below the
rank of Engineer

29.7.3 The bids opened are to be entered in the bid opening register. The bid
opening register should contain details like 1. Name of Work 2.
Tender Number. 3. Form of bid such as item rate bid, percentage rate
bid or lump-sum bid 4. Time & Date of Opening 5. Name of Bidder 6.
Name of representative of bidder attended 7.. Signature of
representative of bidder 8 Name & Designation of Opener. Dated
Signature of opener.

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29.7.4 Bids withdrawn before opening not to be considered

If the bid is withdrawn before due date & time of opening, the same
should not be included in the Comparative Statement.

29.7.5 Tender Openers should download schedule of quantities of each

bidder duly filled by the bidder and the Comparative Statement. They
both shall sign/initial on each sheet downloaded and the same shall
be numbered serially.

29.7.6 Tender Openers should download all the documents specified in

Clause 28.0 of NIT of all the bidders. They both shall sign/initial on
each sheet downloaded and the same shall be numbered serially.

29.7.7 OPENING OF FINANCIAL BIDS

In Single Packet System, the Financial Bids are opened along with the
Technical Bids. In the case of a Two Packet System, after decision
on recommendations of Tender Committee on the Technical Bids,
Financial Bids in respect of only those Tenderers whose Technical
Bids are found to be acceptable or provisionally acceptable shall be
opened on a date to be fixed and advised in writing to the Tenderers
concerned. The Tenderers whose Bids have been provisionally
accepted should be clearly advised that their prequalification is only
provisional and will be subject to receipt of deficient
documents/confirmation of credentials from past Clients/Bank. This
may be done through e-mail to e-mail id given by bidder on CPP
portal while submitting tender.

It may be ensured that Tenderers whose technical bids have not been
found acceptable in the 2 pocket system are intimated to that effect
mentioning on which ground the bidder did not qualify before opening
of Financial Bids of Tenderers whose Technical Bids are found
acceptable. This may be done through e-mail to e-mail id given by
bidder on CPP portal while submitting tender.

On CPP Portal Tender Evaluation process should be completed

online by mentioning “provisionally Qualified subject to receipt of
deficient documents/confirmation of credentials from past
Clients/Bank” or “ Not Qualified in ----------------- criteria” against each
bidder as the case may be. Further “ Result of Technical Bid

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 Evaluation and Opening of Financial Bids” should be uploaded on
CPP Portal mentioning Name of work, Tender Number, Bidders who
are provisionally Qualified and whose financial bids will be opened,
bidders who did not qualify mentioning on which ground the bidder did
not qualify and Time & Date of Financial Bid Opening. The
Provisionally Qualified bidders may be asked to attend the opening
giving the address at which financials bids are scheduled to be
opened. Scanned copy of TC Minutes on Technical Bid Evaluation
should not be uploaded on CPP Portal.

29.8 PREPARATION / CHECKING OF COMPARATIVE STATEMENT

29.8.1 When the Comparative Statement is generated automatically by the

system, there is no need for getting it vetted by Finance. However, if
for any reason, the system is unable to generate the Comparative
Statement, the same shall be got prepared by the Project Co-
ordinator from one of his staff members and got checked by another
staff member. Both the staff members shall write on each
page ’Prepared By’ and ‘Checked By’ respectively and sign over their
full name. The Comparative Statement shall then be got vetted from
Finance. The bids and related papers must be kept under lock & key
by the bid opening officials till these are handed over to Project
Coordinator for further necessary action.

29.8.2 Procedure for dealing with ambiguities in rates:

If there are differences between the rates given by the bidder in words
and in figures or in amount worked out by him, the following
procedure shall be followed:

a. In e-Tendering intending bidder can quote his rates in figures only.

The rates in words, amount of each item and total is generated
automatically. Therefore, the rate quoted by the bidder in figures
is to be taken as correct.

b. In the case of percentage rate bid also, the bid percentage quoted
in figures is to be taken as correct.

c. Corrections, if any, in the comparative statement should be

carried out neatly and clearly, and initialed by the person making

253
 the corrections. In case of corrections in the comparative
statement, the same shall be attested by the authorized officer in
Finance Division.

d. For credit items (The items for which contractor has to pay to
Employer), the bidder should not put minus/Plus sign as prefix to
rate. They should be instructed to quote their rate without prefix
(Either Negative or Positive) in item rate tender. In Percentage
rate tender, the bidder shall be instructed to choose either Excess
or Less over rate given in the financial bid. All credit items should
be clubbed together and put in a separate sub-head at the end of
respective BOQ.

29.9 EVALUATION OF BIDS

29.9.1 This shall be as per relevant provisions in Section 8 of these

Guidelines.

29.10 COST OF TENDER DOCUMENT

29.10.1 In E-Tendering the tenders are not being physically sold to the bidders,
however the cost of tenders shall be kept keeping in view the number
of documents to be downloaded. Hence following scale of charges
shall be applicable to the bidders:

a. Works costing up to Rs.1 crore: Rs.2500/-.

b. Works costing more than Rs.1 crore and up to Rs.10 crores,

Rs.7,000/- (minimum) and Rs.10,000/- (maximum) depending on
the number of documents to be downloaded.

c. Works costing more than Rs.10 crores, Rs.12,000/- (minimum)

and Rs.18,000/- (maximum) depending on the number of
documents to be downloaded.

29.11 EARNEST MONEY DEPOSIT (EMD)

29.11.1 The bids shall be accompanied by Earnest Money Deposit (EMD)

amounting to 1% of the estimated cost subject to a maximum of
Rs.25 lakhs in any one of the following forms :

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 Banker’s Cheque / Pay Order / Demand Draft issued by any
Scheduled Commercial Bank drawn in favour of RITES Ltd. and
payable at Gurgaon / Delhi /______

29.12 Request for unconditional extension of bid validity from bidders shall
be sought by Project Coordinator through e-mail

29.13 Regarding exemption from payment of Cost of Tender Document and

Earnest Money Deposit, para 8.3.2 (iii) of these Guidelines may be
referred to.

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 GUIDELINES
ON
CONSTRUCTION PROJECT
MANAGEMENT

ANNEXURES
 GUIDELINES ON
CONSTRUCTION PROJECT MANAGEMENT
APRIL 2019

INDEX
LIST OF ANNEXURES

Annexure SUBJECT PAGE

No. No.
2.1 Agreement between the CLIENT and RITES Ltd. 261
5.1 Proforma for Amendment to the Contract Agreement 284
5.2 Lumpsum Contract 285
6.1 Guidelines for Calling and Accepting Quotations 289
instead of Tenders
6.2 Nomination of Tender Committee- Procedure for 290
Calling and Acceptance of Single Tender
6.3 General Guidelines for fixing requirement of Technical 291
staff for a work
6.4 Typical Press Notification on Notice Inviting Tender 294
6.5 Qualifying Criteria for Works Contracts 295
8.1A Comparative Statement – Item Rate Tender 299
8.1B Comparative Statement – Percentage Rate Tender 300
8.2 Form of Letter of Acceptance 301
8.3 Form of Agreement 303
8.4 Time Limit for Finalization of Tender (Two Packet 306
System of Technical Bid and Financial Bid)
8.5 Ministry of Micro, Small and Medium Enterprises, 307
Order dated 23.03.2012 of Development
Commissioner MSME, duly amended as per F.No
21(8)/2018-MA dated 09.11.2018
8.5A Ministry of Finance, Department of Expenditure, 312
Procurement Policy Division OM dated 25.07.2017
8.6 Format of Tender Opening Register 313
10.1 Form of Guarantee Bond to be executed by 315
Contractors for removal of defects after completion in
respect of Water Proofing Works
10.2 Form of Guarantee Bond to be executed by 317
Contractors for removal of defects after completion in
respect of Anti-termite Treatment works

256
12.1 Proforma for Letter to be issued by Engineer in 319
Charge to the Contractor in cases of Failure by
Contractor under Clause 3 of Contract to Rectify /
Reconstruct / Replace any Defective Work
12.2 Proforma for Letter to be issued by the Engineer-in- 321
Charge to the Contractor in cases of Failure by
Contractor under Clause 3 of Contract to lift
Suspension of Work / To proceed with the work with
due Diligence
12.3 Proforma for Letter to be issued by the Engineer-in- 323
Charge to the Contractor in cases of Failure by
Contractor under Clause 3 of Contract to Accelerate
the Progress of Work for Completion by the Stipulated
Completion Date
12.4 Proforma for Letter to be issued by the Engineer-in- 324
Charge to the Contractor in cases of Failure by
Contractor under Clause 3 of Contract to carry out his
obligations under the Contract
12.5 Proforma for Letter to be issued by the Engineer-in- 326
Charge to the Contractor on Determination of Contract
under Clause 3 of Contract
12.6 Proforma for Letter to be issued by the Engineer-in- 329
Charge to the Contractor on Foreclosure of Contract
under Clause 13 of Contract
12.6A Proforma for letter to be issued by the Engineer-in- 331
charge to the Contractor if due to default of the
Contractor, part work / part incomplete work is
proposed to be taken out of his hands, under Clause
14 of Contract
12.6B Proforma for letter to be issued by the Engineer-in- 333
charge to the Contractor in case action is finally
proposed to be taken against the Contractor under
Clause 14 of Contract
12.7 Proforma for Letter from the Site Engineer on behalf of 336
Engineer-in-Charge to the Contractor for Rectification
of Defects during the Maintenance Period under
Clause 17 of Contract
12.8 Proforma for Provisional Certificate of Physical 337
Completion to be issued by the Engineer-in-Charge
12.9 Proforma for Final Completion Certificate to be issued 339
by the Engineer-in-Charge

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12.10 Proforma for letter to the State Government Mining 341
Department
13.1 Form of Application by the Contractor for seeking 342
Extension of Time
13.2 Proforma for Grant of Extension of Time- (Advance 346
intimation Pending Decision on Levy of Liquidated
Damages)
13.3 Proforma for Grant of Extension of Time – Without 347
Levy of Liquidated Damages
13.4 Proforma for Show Cause Notice to the Contractor 348
regarding Compensation under Clause 2 In case
Termination of Contract is not Contemplated.
13.5 Proforma for intimating the Contractor regarding Levy 350
of Compensation under Clause 2. (Applicable to both
cases of Contract being allowed to be Continued or
Terminated).
13.6 Proforma for Show Cause Notice to the Contractor 352
regarding Compensation under Clause 2 (in case
Contract is determined under Clause 3)
14.1 Specimen of Letter by Engineer-in-Charge to 354
Contractor for Provisional Reduction in Rate for
Substandard work
14.2 Specimen of Letter of Acceptance by the Contractor of 355
Provisional Reduction of Rate for Substandard work
MANDATORY TESTS – CPWD SPECIFICATIONS
(Annexures 16.1 to 16.11)
16.1 Mortars 356
16.2 Cement Concrete Work 359
16.3 Reinforced Cement Concrete Work 361
16.4 Brick Work 365
16.5 Marble Work 366
16.6 Wood Work 367
16.7 Steel Work 368
16.8 Flooring 369
16.9 Road Work 370
16.10 Extracts from IS 456-2000 377
16.11 Extracts from Chapter 5 of CPWD Specifications on 387
RCC Work
19.1 Contractor’s Notice for Appointment of Arbitrator 394
19.2 Letter of Appointment of Arbitrator 395
19.3 Letter of Appointment of Alternate Arbitrator 396

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19.4 Letter to Contractor on Acceptance of Arbitration 397
Award
19.5 Norms for Disposal of Old Records 398
FORMS FOR RECORD TO BE MAINTAINED
(Annexures 20.1 to 20.14)
20.1 Site Order Book 404
20.2 Inspection Record 405
20.3 Hindrance Register 409
20.4 Daily Progress Record 410
20.5 Cement Register 411
20.6 Steel Reinforcement Register 413
20.7 Non-Conforming Items Record 415
20.8 Quality Audit Record 416
20.9 Site Coordination Meetings Record 418
20.10 Guarantee Bonds Record 419
20.11 Insurance Policies Record 420
20.12 Drawings Record 421
20.13 Mandatory Tests and Non-Mandatory Tests Record – 422
Specimen Format for Cement
20.14 Paints / Chemical Register 423
21.1 Register of Measurement Books 424
21.2 Guidelines on Recording of Measurements and Test 425
Checking
21.3 Proforma for Write Off of Lost MB 427
21.4 Format for Measurement Book 429
21.5 Format for Abstract of Measurement to be recorded in 438
MB at the end of details of measurements recorded for
any Bill.
21.6 Format of Test Check Statement 440
22.1 Register of Payment of Bills to Contractors 442
24.1 Format for Running Account Bill and Final Bill 443
24.2 Deviation Statement 461
24.3 Guidelines on Check and Custody of Bank Guarantee 466
submitted by the Contractor
24.4 Documents to accompany Running Account Bills 469
24.5 Documents to accompany Final Bill 475
24.6 Checklist for check at SBU Office before passing of 478
Bill (Running Account Bill)
24.7 Checklist for check at SBU Office before passing of 482
Bill (Final Bill)

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26.1 List of Documents considered essential for Inspections 486
by CTE and which may be called for Examination of
Work
26.2 Register showing over Payment assessed / pointed 488
out by CTE Organisation and subsequent recoveries
effected
26.3 Common irregularities pointed out by CTE 489
27.1 Procedure Order on Opening, Custody and Final 499
Disposal of essential Project Document.
28.1 Proforma for letter by Engineer-in-Charge to the 515
contractor for issue of show cause notice under clause
8 of Guidelines on Banning of Business dealings
28.2 Proforma for letter by Engineer-in-Charge to the 516
contractor on Suspension of Business dealings
28.3 Proforma for letter by Engineer-in-Charge to the 517
contractor on Banning of Business dealings

*****

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 ANNEXURE 2.1
(Refer Para 2.1)

AGREEMENT BETWEEN _____ (CLIENT) AND RITES LTD. FOR _____

(WORK)
THIS AGREEMENT MADE ON THIS ____ day of __________ between
________________ having its Office at
________________________________ represented by its ___________
(hereinafter referred to as the “CLIENT”) which expression shall wherever the
context so admits or requires include its successors and assigns of the ONE
PART and the RITES Ltd., a Govt. of India Enterprise, under the Ministry of
Railways having its Registered Office at SCOPE MINAR, Laxmi Nagar, Delhi-
110092 represented by its Managing Director _____________ (hereinafter
referred to as the ‘CONSULTANT’) which expression shall wherever the
context so admits or required include its successors and assigns of the
OTHER PART.
WHEREAS
1. The Client is interested to take up Construction of ________ (Name of
work) and in that regard wants to avail the services of a Consultant
who will be in a position to undertake design, detailed engineering and
project management services for the construction of the said Works
for and on behalf of the Client.
2. The Consultant is engaged in providing services of the kind in which
the Client is interested including survey, design, detailed engineering
and project management of the constructions complete in all respects
including planning, tendering, contracting, procurement, construction,
inspection, site supervision and commissioning of the new works.
3. The Client accordingly desires to avail the services of the Consultant
as its Agent and Power of Attorney Holder for the purpose of
Construction of __________ (name of work) and the Consultant is
willing to render their services to the Client for the Construction of the
said works for and on behalf of the Client upon the terms and
conditions of this Agreement.
4. Now therefore, in consideration of the mutual promises and covenants
hereinafter contained, it is mutually agreed and declared by and
between the parties hereto as follows:-

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ARTICLE 1–DEFINITIONS
1.1 ‘APPROVAL’ shall mean and include the written consent, either
manuscript, type written or printed statement, under signature or seal,
as the case may be, given from time to time by the Client or their
authorized representative on documents, drawings or other particulars
in relation to this Agreement.
1.2 ‘COMMENCEMENT DATE OF CONTRACT’ with reference to Works
Contract for actual execution of works shall mean the date on which
the land for the work is handed over to the Consultant.
1.3 ‘COMPLETION PERIOD’ with reference to Works Contract shall
mean the period from the commencement date of contract to physical
completion of the project.
1.4 ‘CONTRACT’ shall mean this AGREEMENT including all exhibits
hereto and all documents herein specified and amendments which the
parties may hereafter agree in writing to be made to this Agreement.
1.5 ‘CONTRACTOR’ means any agency appointed by the Consultant on
behalf of the Client for carrying out construction of different types of
works involved in the Project.
1.6 ‘COORDINATING OFFICER’ shall mean the official nominated by the
Client to whom all the matters related to the Project shall be referred
to by the Consultant for views, decisions, help, approvals etc. as per
Scope of Services of the Contract and who shall provide and
communicate such views, decisions, help, approvals etc. to the
Consultant on behalf of the Client.
1.7 ‘DRAWINGS’ shall mean and include Engineering drawings, sketches
showing plans, sections and elevations related to the Project together
with modification and/ or revisions thereto.
1.8 ‘ENGINEER / ENGINEER IN CHARGE’ shall mean the person
nominated from time to time by the Consultant and shall include those
who are expressly authorized by the Consultant to act for and on
behalf of the Consultant for the provision of the services related to this
Agreement.
1.9 ‘MONTH’ shall mean calendar month.
1.10 ‘PHYSICAL COMPLETION’ with reference to Works Contract shall
mean readiness of the Works except in minor respects, which does

262
 not prevent occupation of the works for the purpose for which the
works have been designed.
1.11 ‘PROJECT or WORKS’ shall mean the Construction of ____________
(Brief description of the Project)
1.12 ‘PROJECT COMPLETION’ with reference to Works Contract shall
mean the readiness of all the works in all respects for use, after
attending to minor repairs / adjustments.
1.13 ‘SERVICES’ shall mean the responsibilities to be discharged by the
Consultant for fulfilling the obligations under this Agreement.
1.14 ‘SPECIFICATIONS’ shall mean and include schedules, detailed
descriptions, statement of technical data, performance characteristics,
standards as applicable and specified in the Works Contract.
1.15 ‘STANDARDS’–The goods and equipments, utilized for the Works in
the Project and the Works in the Project shall conform to the
standards mentioned in the Technical Specifications or such other
standards which ensure an equal or higher quality and when no
applicable standard is mentioned, to the authoritative standard
appropriate to the Goods / Equipments utilized in the Works in India
and such Standard shall be the latest issued by the concerned
Institution like Bureau of Indian Standards etc.
1.16 ‘SUB-CONSULTANT’ shall mean any agency engaged by the
Consultant for providing any of the services.
1.17 ‘TEST’ shall mean such process or processes to be carried out by the
Consultant as are prescribed in the Works Contract in order to
ascertain quality, workmanship, performance and efficiency of goods /
equipments or part thereof.
1.18 ‘VENDOR’ means any agency appointed by the Consultant on behalf
of the Client for supply of Goods / Equipments for the Project.
1.19 ‘WORDS’ in the singular include the plural and vice versa.
1.20 ‘WRITING’ includes matter either in whole or in part, in manuscript,
typewritten, lithographed, cyclostyled, photographed or printed form
under or over signature or seal as the case may be.

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ARTICLE 2–SCOPE OF WORK
The detailed scope of the work to be rendered by the Consultant is as
follows:-
2.1 Ascertain the Client’s requirements, carry out detailed survey of the
area and make out conceptual plans for various alternatives as
required by the Client, keeping in view the topographical features and
functional needs of the location, with respect to the buildings if any,
already existing at site, utilities etc. To make out Preliminary
Estimates for the various alternatives based on plinth area rate or
similar acceptable basis of rate. Freeze the Conceptual Plan as
finally decided by the Client and obtain Administrative approval and
Expenditure Sanction from the Client for the Estimated Cost of the
Works and Consultants’ fee with Goods &Service Tax (GST), payable
thereon in terms of Article 4 of this Agreement along with
10%permissible excess on both items to take care of possible
increase in Cost due to any factor at the stage of preparation of
Detailed Estimates based on Detailed Designs and Drawings.
2.2 Carry out detailed soil including Geo-technical investigation to
ascertain the safe bearing capacity for design of foundation.
2.3 Carry out architectural design of the buildings keeping in view the
need to harmonise with the landscape and other architectural features
of the buildings, if any, already existing in the area. (This para may be
modified as required)
2.4 Carry out Detailed Designs and Drawings for actual execution of the
Work and obtain the approval of the Client.
2.5 Prepare a Detailed Estimate with items based to the extent possible
on Standard Schedule of Rates such as that of CPWD duly escalated
by Cost Index to reflect the current day Cost and balance as Non
Scheduled items. The Estimate will cover Civil Engineering Works,
Electrical Engineering Works, other Engineering Works and Special
installation like lifts, generators and the other Equipments.

Detailed Estimate shall be prepared to reflect the likely Current Cost

of the Complete works and Clients’ approval taken for the same. If the
Total of (i) Detailed Estimate of Cost of Works as made out now (ii)
Consultants’ fee payable thereon (iii) Service Tax on item (ii) in
terms of Article 4 of this Agreement and (iv) 10% excess over items (i)
to (iii) to take care of possible price escalation and minor modifications
during the course of execution of Works, exceeds the amount for

264
 which the Client has already accorded sanction for Expenditure under
Article 2.1 above, the Client will accord Revised Sanction for
Expenditure for the enhanced amount determined on the basis of
Detailed Estimate with additions as described above.
2.6 Prepare detailed specifications, tender schedule & tender documents
and call tenders for Civil, Electrical, other Engineering and Specialized
works. The Bill of Quantities shall be based on the Detailed Estimates
as approved by the Client. Where required by the Client,
Prequalification of Tenderers shall be done. Otherwise, two Packet
system shall be adopted with evaluation of Technical Bid including
Check of Satisfaction of Qualification Criteria done first and Financial
Bids of only those Tenderers whose Technical Bids are considered
acceptable opened. In all cases, Client’s approval for Tender
Documents shall be obtained by the Consultant.
2.7 Finalise the Tender adopting RITES’ procedure, after determining the
reasonable cost of works based on market rate analysis of major
items, duly associating a representative of the Client as a member of
the Tender Committee. Take the approval of the Client for
engagement of the selected Contractor and the Contract Documents
to be adopted. Take Revised Sanction for Expenditure from the Client
if the Contract Value along with RITES’ Fees including Service Tax,
all enhanced by 10%, exceeds the Sanction for Expenditures taken
under Article 2.5.
2.8 Execute the Agreement with the Contractor for and on behalf of the
Client as an Agent and Power of Attorney Holder.
2.9 Take single point responsibility for supervision in and execution of the
proposed Works by deployment of adequate technical and supporting
staff at various sites of works.
2.10 Liaise with Local Bodies and obtain their approvals for the Works and
for shifting/ relocating existing utilities as necessary. The Client will
provide all possible assistance in this regard. Any delay by the Local
Bodies in according their approval for the Works and for
shifting/relocation of existing utilities will not be to Consultants’
account.
2.11 Submit periodic Progress Reports in the format and periodicity as
stipulated by the Client.

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2.12 Assessing, planning and arranging to procure materials and
procure/hire construction equipments for Engineering Works, if
required as per the Works Contract Conditions.
2.13 Coordinating with main and sub-contractors and rendering technical
advice; Holding periodic Progress Meetings and sorting out problems
arising if any due to action or inaction of the Client and/ or the
Consultant.
2.14 Providing adequate supervising personnel in the field to coordinate,
control, supervise, inspect, liaise and report on the works at site;
2.15 Keeping a close watch on Deviations by way of Extra items,
Substituted items and Deviations in Quantities of Schedule items.
Fixation of Rates for items/quantities covered by Deviation orders
adopting RITES procedure. Client to be kept advised of the Deviation
orders and rates as fixed. In cases where the Client desires omission
or substitution of any BOQ item, check if this is likely to lead to
vitiation of Contract and if so draw the attention of the Client to the
same and take his specific approval for the omissions / substitutions.
Clients’ Revised Expenditure Sanction to be taken by the Consultant
whenever found necessary if the Cost of the work with its Deviation
and Price Escalation (if provided for in the Contract) and the
Consultant’s fee and Service Tax in terms of Article 4 of Agreement
exceed the amount for which Expenditure Sanction has been obtained
from the Client as provided for in Articles 2.5 and 2.7.
2.16 Ensuring that the construction is being carried out in accordance with
the approved working designs, drawings and specifications and as per
programme laid down in the Works Contract Agreement.
2.17 Ensure quality control of the Work including materials and
workmanship, certify measurement of work executed, and make
progressive payments based on physical realization / completion of
works, as per approved procedure and schedule of payments to
Contractors;
2.18 Sanction of Extension of Time to the Contractor for completion of
Works, with or without Liquidated Damages, subject to keeping the
Client advised of the same with full details including the effect on
completion Cost of works, if any.
2.19 Finalisation of accounts and closing Works Contracts and furnishing
the Accounts along with 4 copies of “As Built” drawings on
reproduceable papers to the Client.

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2.20 Settling the Claims / disputes, if any, made by the Works Contractors,
keeping the Client advised of the same. Where there is disagreement
between the Consultant and the Works Contractor, such disputes
shall be referred for Arbitration by an Arbitrator as provided for in the
Works Contract between the Consultant acting for on behalf of the
Client as Agent and Power of Attorney Holder and the Contractor. All
amounts payable to the Contractor on his claims decided by the
Consultant directly and agreed to by the Contractor will be charged to
the Cost of Works. In cases where the Contractor resorts to settling
his claims through an Arbitrator, the Client being the Principal
Employer will implead himself as a Party in the Arbitration
Proceedings along with the Consultant. The Consultant will however
fight the Arbitration case for and on behalf of the Client. All claims in
favour of the Contractor as per Arbitration Award and the legal
expenses involved in dealing with the arbitration proceedings, other
than those attributable to gross negligence of the Consultant, will be
chargeable to Cost of Works. Items where the Arbitrator gives award
in favour of the Contractor overruling the decisions taken by the
Consultant in items coming under the powers of the Consultant such
as fixation of rates for deviation items, Non scheduled items &
substituted items, grant of extension of time etc will not come under
the Category of “Gross negligence by the Consultant”.
As regards other items, where there is a dispute between the Client
and the Consultant as to whether the item of Award in favour of the
Contractor is to be classified as due to “Gross negligence of
Consultant” or not, they will be settled by mutual discussions between
the Consultant and the Client. If no agreement is reached by such
discussions, the issue will be settled through Arbitration under Article
19 of this Agreement. Pending decision by the Arbitrator,the amount
covered by such items of award will be tentatively charged to Cost of
Works. Same principles as above will also apply to decisions if any in
favour of the Contractor in a Court of Law.
2.21 Credit to the Cost of the Works all Liquidated and other damages
levied on the Works Contractors.
2.22 Complete administration and management of Contract with the Works
Contractor till expiry of the maintenance period and payment of final
dues to the Contractor.
2.23 Collect and deliver to the Client, Guarantee Bonds executed by the
Contractor for Specialised items of Works such as Waterproofing of
structures, Termite Proofing of Structures etc which involve

267
 maintenance period extending well beyond the normal maintenance
period of structures. Collect and deliver to the Client, Insurance
Policies, if any, of Works still current at the time of handing over of
works.
2.24 Attend to the inspection, if any, carried out by Government Agencies
such as Central Vigilance Commission, comply with their Statutory
requirement and effectively arrange for replying to their observations.
2.25 Assist the Client in obtaining the necessary clearance from the
Agencies / Departments / Local Bodies concerned for the occupation
of the Completed works.
2.26 Getting defects, if any, rectified by the contractor during the 'Defect
Liability Period'.
2.27 In all matters, to conform to the conditionalities of and documents
approved by the Funding Agency such as World Bank, as stipulated
by the Client.
ARTICLE 3–OBLIGATIONS OF THE CLIENT
3.1 The Client will furnish layout plan of the existing structures, if any,
and services, if any, in the area where new Works are proposed.
3.2 The Client will nominate a suitable Officer as the Coordinating Officer
who shall perform the duties as listed in Article 1.6.
3.3 The Client will hand over vacant possession of land / Site to the
Consultant. The Consultant may, if so required, take responsibility for
demolition / disposal of existing buildings / structures. Works Contract
shall not be awarded by the Consultant for and on behalf of the Client
till the site is available free of all encroachments and Local Bodies’
approval obtained for use of the site for the purpose for which it is
intended to be used by the Client.
3.4 The Client will make available to the Consultant adequate resources
and funds for proper execution of Works and timely payment to the
Contractors. The Client shall deposit with the Consultant 33 1/3% of
Estimated Cost of Works as per the sanctioned Detailed Estimate, as
first instalment. The Client shall release further instalments based on
the progress of work and financial projections as described in Article 9
(a). The initial deposit of 33 1/3% would be retained by the
Consultant for adjustment against the last portion of the estimated
expenditure. In case the Client fails to provide the funds as per
requirements of the Consultant, it may be necessary for the

268
 Consultant to suspend/abandon the Work. In such an eventuality, the
Client shall be solely responsible for all the consequences arising out
of such stoppage/ abandonment of the Work including Claims of the
Contractors for Compensation/damages etc. due to non payment of
dues of the Contractors.
3.5 The Client will assist the Consultant in obtaining from Local Bodies
approvals for the Works and shifting / relocating existing utilities as
necessary. Any delay by the local Body in according the approval
may adversely affect the completion period for which the Consultant
will not be responsible. The Client will, with the assistance of the
Consultant, obtain the necessary clearance from the
Agencies/Departments/Local Bodies concerned for the occupation of
the Completed Works.
3.6 The Client will communicate his decisions whenever referred to,
within 7 days of such a request from the Consultant.
3.7 The Client shall provide the necessary redeemable Power of Attorney
to the Consultant to discharge their obligations under this Contract on
behalf of the Client.
3.8 The Client shall pay the consultancy charges to the Consultant, in line
with the agreed payment schedule.
3.9 The Client shall not be responsible for any liability arising out of
Consultant’s contractual obligations with the Consultant’s architects,
personnel, Sub-Consultants, licensors, collaborators, vendors and
subordinates who are engaged by the Consultant and whose
remuneration / fees are paid by the Consultant from his Consultancy
fee.
3.10 The Client shall promptly take over the Works/Project facilities within
15 days from the date of certified completion in all aspects. If for any
reason, the Client is unable to comply with the above requirements
within the period mentioned above, the Consultant shall allow the
Client a further period of 15 days for the taking over of the Works. If
the Client fails to take over even within the extended period, the
Consultant shall become eligible to claim extra fees as may be
mutually agreed between the Parties.
ARTICLE 4–CONSULTANT’S REMUNERATION
a) Consultant’s remuneration would be at ____ per cent on the
total of the final Built up cost fully to be borne by the Client as
defined in Article 5 below. The fee payable will be initially

269
 calculated on the basis of the Cost of Work as per Detailed
Estimate as sanctioned. Later on it shall be adjusted on the
basis of Works Contract Cost. Finally the fee shall be adjusted
as per Percentage of “As Built Up Cost” as defined in ARTICLE
5.
b) The Consultant’s remuneration as determined in Para “a”
above will be valid for the period of Validity of this Agreement
as stipulated in Article 17, determined on the basis of the
Scheduled Completion date of the Works as per the Works
Contract initially executed. If the period for Completion of
Works gets extended due to any reason with or without
liquidated damages to the Works Contractors the Consultant
will be paid extra remuneration determined on the basis of
Remuneration calculated as in Para “a” above divided by the
period of this Agreement in days counting from the date of this
Agreement till the expiry of 60 days after the completion of
Maintenance Period as per the Works Contract initially
executed, multiplied by the number of days of extension
sanctioned for the execution of the Work.
c) In addition to the Fee mentioned in Para “a” and “b” above, the
Consultant will also be entitled to ‘Service Tax’ on the fees at
the rates as stipulated by the Government of India from time to
time. Presently the Service Tax is payable at ___ per cent.
d) If, after the date of execution of this Agreement, the Central
Government or the concerned State Government imposes any
fresh Tax or Charges on the Consultancy fee payable to the
Consultant, the same shall be reimbursable to the Consultant
by the Client.
e) The stages of payment of Consultancy fees and Service
Charges thereon will be as under:-

i) Mobilization fees on Signing of this Agreement] 10%

ii) Preparation of Concept Plan to the satisfaction 5%
of the Client along with Preliminary Estimate
based on it
iii) Preparation of Detailed Designs, Drawings 5%
and Estimates
iv) Preparation of Tender Documents 5%
v) Issue, receipt and evaluation of Tenders 5%
and appointment of Works Contractors

270
 vi) Balance prorata on the basis of 70%
Certification of Works executed

Total 100%
f) Once a month, in the first week, the Consultant shall submit the
Consultancy bill at the percentage rates as indicated above,
based on the value of works done in the previous month
towards the “Built Up Cost” as defined in Article 5 below. The
Client will deduct Tax as due and pay the net Consultancy fee
to the Consultant within 7 days from the date of receipt of the
bill. The Client will also issue Tax Deduction at Source
Certificate to the Consultant within the time stipulated in the
Income Tax Act.
ARTICLE 5–BUILT UP COST
“Built Up Cost” will consist of the expenditure incurred towards the
following, all to be borne by the Client.
i) Gross amount paid to the Contractor towards Construction of
the Works as per Works Contract agreement.
ii) Cost of any materials supplied free to the Contractor including
Cost of handling, transportation and storage incurred by the
Client/Consultant.
iii) Charges, if any, levied by Local Authorities for approval of
plans and services and for issue of “Completion”/“No-
objection” Certificate for occupation of the Works on
Completion.
iv) Charges, if any, levied by Local Authorities/Providers of
services such as Water Supply, Drainage, Sewerage etc. for
Shifting/relocation of Utilities as well as their
disconnection/connection.
v) Cost of Soil tests/Geotechnical investigations.
vi) Cost of litigation, if any, with a Third Party or individual
organization to remove legal barriers in the execution of works.
vii) Advertisement Charges for issuing Notice Inviting Tenders.
viii) Cost of testing of materials/workmanship for items for which the
Contractor is not required to pay in terms of the provisions in
the Works Contracts.

271
 ix) Any amount paid/payable to the Contractor towards his claims
as considered reasonable by the Consultant.
x) Any amount paid/payable to the Contractor towards his claims
not accepted by the Consultant but decided in favour of the
Contractor by an Arbitrator or Court of Law. The amount will
include the Cost involved in defending the stand of the
Client/Consultant in the Arbitration or Court proceedings. The
amount will however exclude the elements of Award of the
Arbitrator/Court of Law on items which are finally attributed to
Gross negligence of the Consultant.

ARTICLE 6–PROJECT PLANNING AND MONITORING & PROGRESS

REPORTING
6.1 The Consultant shall submit an overall Project Schedule in the form of
a Network on time scale highlighting all major milestones of the
Project. This shall be approved by the Client and would form the
basis for monitoring as well as dovetailing function schedules. The
Consultant shall update this document once in every quarter and
submit to the Client.
6.2 Monthly reports will be sent by the Consultant to the Client so as to
reach him by seventh of the next month as per format to be mutually
agreed to.
6.3 Review meetings to be organized by the Client will be held every
month either at site or at the Clients’ office as decided by the Client
and the Consultant.

ARTICLE 7–TENDERING PROCEDURE FOR WORKS

7.1 The Consultant shall follow the Tendering Procedure including
Calling of Tenders, Tender Documentation, Evaluation and execution
of Contract Agreement with the successful Tenderer, adopting that of
_____ (Funding Organization)/or that laid down by the Consultant for
similar works, as approved by the Client, with or without modifications
as decided jointly by the Client and the Consultant.
7.2 Tenders shall provide for supply of all materials required for the Works
and for arrangement for the Tools, Plant and Machinery required in
Contractor’s scope except to the extent indicated below as Clients’
supply/arrangement. (list out the details)

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7.3 Tender Conditions shall provide that the Tenderer shall quote his
rates in accordance with tender conditions and keeping in view
statutory requirements relating to labour and taxes on materials.
7.4 The Consultant shall decide in consultation with the Client if
prequalification of Tenderers is required to be done in advance or Two
Packet System can be adopted with Technical Bids and Financial
Bids received simultaneously and the Financial Bids of only those
Tenderers whose Technical Bids inclusive of Qualification Criteria are
found acceptable, opened and evaluated.
7.5 The Tenders shall be evaluated by the Consultant through a Tender
Committee set up by the Consultant duly including a representative of
the Client in the Committee. Selection of the Contractor for award of
work based on the recommendations of the Tender Committee, will be
decided by the Competent Authority of the Client. The Tender
Committee proceedings along with the decision of the Tender
Accepting Authority of the Consultant shall be forwarded to the Client
and the Clients’ approval taken before execution of Contract
Agreement with the selected Contractor.
7.6 The Competent Authority of the Consultant shall enter into the
Contract Agreement with the selected Contractor as Agent and
Power of Attorney Holder for and on behalf of the Client as
“Employer”. The Arbitration Clause of the Works Contract Agreement
shall specifically provide that in the Arbitration Proceedings, both the
Client and the Consultant shall be representing the “Employer”.
7.7 All payments made by the Consultant to the Contractor and other
agencies within the scope of this Agreement shall be made as per the
approved Payment procedure of ___ (Funding Organisation)/Payment
procedure of the Consultant for similar works, as approved by the
Client with or without modifications as decided jointly by the Client and
the Consultant.
7.8 The Consultant shall be responsible for due compliance of all
procedural requirements of ____ (Funding Organization) as advised
by the Client.

ARTICLE 8–COST TO BE BORNE BY THE CONSULTANT

The Consultant shall bear the Cost of the following items and these are
deemed to have been included in the Consultancy fees payable by the Client
to the Consultant under Article 4.

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8.1 Payments to all personnel engaged by the Consultant including their
employees, architects, engineers, Sub-Consultants etc.
8.2 All travel, conveyance, living, boarding, lodging, salary and perks of
Consultant’s personnel engaged in the Project, insurance of all kinds
for Consultant’s personnel including accident benefits, postage,
communication and telephone charges, Internet charges, cost of
preparation and printing of all tender documents, electricity and water
consumption charges for the Consultants’ Office and all other
expenses of the Consultant for the purpose of implementation of the
project.
8.3 To meet their obligations under this Agreement, the Consultant shall
employ at site their own manpower so that on completion of the
project the Client shall have no responsibility for absorbing any of
them in its service.
8.4 Income Tax payable by the Consultant.

ARTICLE 9–PAYMENT AND ACCOUNTAL PROCEDURE

As stipulated in Article 3.4, the Client shall provide the Consultant with
necessary funds in advance from time to time for meeting out on behalf of the
Client, the cost involved in various items under “Built Up Cost” as described
in Article 5, to the extent payment is to be effected through the Consultant.
For this purpose, the Client shall make payment of advance amount into the
account of the Consultant in ______ (Bank) in ______ (City). These funds
will be replenished on quarterly basis based on advance projections provided
by the Consultant duly certified by the Consultant’s Accounts Department.
Procedure for such projection shall be as under:
a) The Consultant shall make financial projections and forward
request of funds for each quarter at least 45 days in advance.
b) The Client shall provide necessary replenishment of funds on
quarterly basis based on the Consultant’s request for funds as
stated above. These replenishments shall be treated as
advance against the Project.
c) The Consultant will open, maintain and operate a separate
Bank Account for the project in the name of the Consultant in
_____ (Bank) _____ (City). The amount left in the Bank
Account will be refunded to the Client at the time of closing of

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 Account, after all accounts are certified by Consultant’s
Accounts Department.
d) The Consultant shall ensure that the EMDs/amounts of
liquidated damages/penalties recovered from the successful
Suppliers/Contractors are deposited in the separate bank
account mentioned in Para “c” above. Any interest accruing
through short term Fixed Deposits from the Accounts will be
retained by the Consultant.
e) Monthly statement of accounts shall be furnished to the Client
by the Consultant by end of the following month duly certified
by the authorized Finance & Accounts representative of the
Consultant. Expenditure particulars of funds shall be submitted
to the Client in the format approved by ____ (Funding Agency)
for the Client to claim reimbursement / in the format laid down
by the Client.
f) Whenever the need arises for obtaining Revised Sanction of
Expenditure from the Client as explained in Articles 2.7 and
2.15, the Consultant shall take prompt action to approach the
Client with full justification.
g) After completion of work, the Consultant will prepare detailed
statement of accounts as per agreed formats covering various
works contract wise and the expenditure thereof duly certified
by the Consultant’s Authorized Finance & Accounts
representative with necessary supporting documents, including
copies of final bills and ‘As built’ drawings, duly certified by the
Consultant’s Engineers containing all the details of the work.
h) The amounts of Security Deposit and Bank Guarantees
received from the Contractors which remain to be refunded as
per the contract conditions, at the time of handing over the
works or earlier to the handing over, as the case may be, shall
be handed over to the Client with details of dates when they
become due for refund. Similarly, all amounts of liquidated
damages / penalties, forfeited EMDs/ Security Deposits shall be
transferred to the Accounts of the Client.
ARTICLE 10—LABOUR LAWS
10.1 The Consultant shall undertake to ensure compliance of all labour
laws which are applicable to their workmen and also obtain through
suitable provision in the Works Contracts commitments by the

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 Contractors to whom any part of the Works Contracts envisaged
under this Agreement is entrusted, in respect of their workmen.
10.2 The Consultant shall be responsible for all statutory obligations and
any other laws in the above regard, in force from time to time,
regarding employment or conditions of service of their Sub-
Consultants and employees.
10.3 The Consultant shall ensure compliance by the Works Contractors of
all safety rules as required under various statutes in India, through
suitable provision in the Works Contracts.
10.4 The Consultant shall incorporate third party risk clause in all Works
Contracts awarded by the Consultant, so as to ensure that the Client
is held harmless and indemnified against any damage or injury to third
party on account of any act or omission to act by the employees or
representatives of the Contractors engaged for the execution of the
work.
10.5 Being the owner of the assets to be created, the Client shall be the
`Employer’ under Contract Labour (Regulation and Abolition) Act,
1970 and Building and Other Construction Workers Welfare Cess Act,
1996 and Rules made under these Acts. The Consultant shall provide
necessary assistance and guidance to the Client in complying with the
Employer’s obligations under These Acts/Rules.

ARTICLE 11–MODIFICATION IN WORKS CONTRACTS

Any modification in the Works Contracts with respect to technical or
commercial aspects including time limit for completion and deviation by way
of extra items, substituted items and deviations in quantities of Schedule
items as well as fixation of rates for Deviation, shall be considered by the
Consultants and authorized subject to the following.
i) The Client shall be kept advised for information of the Modifications
with details of the implications and the justification.
ii) Where the Modification is likely to result in the need for obtaining
approval of “Revised Expenditures Sanction” from the Client for an
increased amount as mentioned in Article 2.15, the Consultant shall
approach the Client promptly with full details and justification.
ARTICLE 12–TIME SCHEDULE
12.1 Time is the essence of contract.

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12.2 The Consultant shall complete all items of work indicated in Article 2.1
to 2.6 of this Agreement within ___ months from the date the Client
intimates, in writing, the availability of land free from encroachments
and Local Bodies approval for the use of the land for the purpose
proposed by the Client. However, in the case of works of specialized
nature, the time required for completion of items of work indicated in
articles 2.1 to 2.6 of this Agreement shall be decided after mutual
discussions.
12.3 The Consultant shall furnish to the Client a detailed time-schedule for
getting the Works executed, after finalization of the Detailed Estimate
based on Detailed Designs and Drawings.
12.4 The Consultant shall make all efforts to get the Works executed as
per the time schedule finalized in Consultation with the Client.

ARTICLE 13–RESPONSIBILITY OF CONSULTANT

13.1 The Consultants shall be liable for consequences of errors and
omissions arising out of gross negligence on their part or on the part
of their employees and shall take necessary action to remedy the
defects and deficiencies arising from said negligence. The liability of
the Consultant shall be restricted to the period of Validity of this
Agreement under Article 17.
13.2 The Consultants shall discharge their obligations under this
Agreement in accordance with the agreed time schedule and with due
care, diligence and competence generally as stipulated under Article 2
of “Scope of Work”.

ARTICLE 14–LIQUIDATED DAMAGES

14.1 In case the work described in Articles 2.1 to 2.6 is delayed beyond the
stipulated period of completion as indicated in Article 12.2, for reasons
directly attributable to Consultants, a sum equivalent to ½% (half per
cent) of fees for each completed week by which the work has been
delayed subject to maximum of 5% of the fees, shall be levied by way
of liquidated damages and not by way of penalty. This shall however
not absolve the Consultants of the responsibilities and obligations
under the contract to complete the execution of work indicated in
Articles 2.1 to 2.6 as per the completion time schedule as stipulated
in Article 12.2.

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14.2 In case the designs prepared by the Consultants are found to be
defective as per the standard engineering practices, involving redoing
of the work already executed.
i) a sum not exceeding 5% of the fees for that work will be levied
on Consultants as liquidated damages.
ii) the Consultants shall prepare schemes for rectification and
modification for redoing the work free of cost.
14.3 The total of all liquidated damages will not be more than 10% of
Consultancy fees.
14.4 In case this Agreement envisages execution of a number of Works
under different Works Contracts, the stipulations in Articles 14.1 to
14.3 above will apply to each such work.
ARTICLE 15–FORCE MAJEURE
15.1 Neither the Consultant nor the Client shall be considered as defaulting
in the Performance of their contractual obligations under this
Agreement, as long as such performance is prevented or delayed, for
reasons, beyond the reasonable Control of the party claiming the
existences of Force Majeure such as Acts of God, severe earthquake,
cyclone (except monsoon), floods, lightning, land slide, fire or
explosions, plague or epidemics, strikes/ lockouts (lasting more than
14 consecutive calendar days), sabotage, blockade, war, riots,
invasion, acts of foreign enemies, hostilities (whether war be declared
or not), civil war, rebellion, revolution, insurrection or military usurped
power or confiscation or trade embargoes or destruction or requisition
by order of any Government or any Public Authority. The party
claiming the existence of Force Majeure shall within ten days or within
shortest possible period without delay, as the case may be, notify the
other party about the occurrence of the Force Majeure event and
provide the other details of arising and ceasing of the impediment. At
the end of the impediment, the party claiming the existence of Force
Majeure shall provide necessary documental proof of cessation.
15.2 As soon as the cause of Force Majeure has got removed, the party
whose ability to perform its obligations has been affected shall notify
the other of such cessation and of the actual delay incurred in such
affected activity, adducing necessary evidence in support thereof.
From the date of occurrence of a case of Force Majeure, obligations
of the party affected shall be suspended during the continuance of
Force Majeure Conditions along with any inability so caused until the
cause itself and the inability so caused resulting there from have been

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 removed and the agreed time of completion of the respective
obligations under this contract shall stand extended by a period equal
to the period of delay occasioned by such events.
15.3 Should one or both the parties be prevented from fulfilling the
contractual obligations by state of Force Majeure lasting continuously
for a period of six months, the parties shall consult each other
regarding the future implementation of the Project.
ARTICLE 16 –AMENDMENTS TO AGREEMENT
Any amendments or modifications to this AGREEMENT must be in
writing and shall be signed by both the parties.

ARTICLE 17–TIME LIMIT FOR VALIDITY OF THIS AGREEMENT

(a) This agreement will be valid for a period of 90 days beyond the
date when all the following documents are made available by
the Consultant to the Client.

(i) Final account after closing of works contracts (Refer

Article 2.19 and Article 9g and 9h).
Note: Where there is no Arbitration/Court Proceeding on any claim
by Works Contrator, the Final Account will be made out for
each such work forming part of the Project, in one part. Where
there is any Arbitration/Court Proceeding on any claim by the
Works Contractor, the Final Accounts for each such work will
be submitted by the Consultant in two parts with the first
comprising of all items other than those covered by the
Arbitration/Court Proceedings and the second and final part
comprising of items arising out of the Arbitration/Court Award.
(ii) Four Copies of “As Built Drawing” on reproducible paper
(Refer Article 2.19 and Article 9g)
(iii) Guarantee Bond for Specialized Works and Insurance
Policies on Works, if any (Refer Article 2.23)
(b) Any request for clarifications desired by the Client on items (i)
to (iii) above or an any other item pertaining to the Agreement
or for copies of any missing documents should be made to the
Consultant within a period of 30 days from the date of receipt
by the Client of each of the documents (i) to (iii) above. If no
such request is recevied within the period of 30 days as

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 mentioned above, the Client shall be deemed to have waived
his right to ask for such clarifications and/copies of missing
documents.
(c) Where the request for clarifications and/or copies of missing
documents has been recevied within period of 30 days as
mentioned above and the Consultant fails to furnish his
response within the time limit of 30 days before expiry of
Validity of the Agreement as defined in Para (a) above, the
Validity of the Agreement shall be automatically extended for a
futher period of 30 days from the date when the request of the
Client is complied with by the Consultant.
ARTICLE 18–TERMINATION OF AGREEMENT
a) The Agreement herein may be terminated at any time by either
Party (Client / Consultant) by giving a written notice of two
months to the other party. With the termination of the
Agreement, the Works Contracts will be operated directly by
the Client. Even after the termination of the Agreement, the
Consultant shall be liable and be responsible for due
certification/approval of any Bills submitted by the Works
Contractors at any time, in respect of the Work executed before
the termination of the Agreement.
b) In case there is any change in the Constitution of the
Consultant, the details will be promptly communicated to the
Client. In case the Client is of the opinion that this will affect
the Performance of the Consultant under this Agreement, the
Client shall be entitled to terminate this Agreement after giving
due notice and entrust the work to some other Agency.
c) In case of the Termination under Para “a” or “b” the Consultant
shall not be entitled to fees or compensation except of the fees
payable to them for the work actually done. The amount of
fees so payable shall be decided by mutual discussions
between the Client and the Consultant.
d) In case of the Termination under Paras “a” or “b”, the Client
may make use of all or any drawings, estimates or other
documents prepared by the Consultant, after a reasonable
payment for the services of the Consultant for preparation of
the same.

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ARTICLE 19–ARBITRATION
a) If the Client is a Government Department/Organization or
CPSE / State PSE then in the event of any dispute or difference
relating to the interpretation and application of the provisions of
this contract, such dispute or difference shall be taken up by
either party for resolution through AMRCD as mentioned in
Government of India, Ministry of Heavy Industries & Public
Enterprises, Department of Public Enterprises OM No.
4(1)/2013-DPE(GM)/FTS-1835 dated 22-05-2018.
OR

In the case of Dispute or difference arising between the

Consultant and the Client relating to any matter arising out of or
connected with the Agreement, such dispute or difference shall
be settled in accordance with the Arbitration and Conciliation
Act, 1996 with all up-to-date amendments and Rules made
thereunder. The Arbitral Tribunal shall consist of a Sole
Arbitrator to be appointed by agreement between the parties
and failing such agreement, by the Chairman/Standing
Conference of Public Enterprises. (Applicable in case the client
is not a Ministry/Deptt./Organization /a PSU of Central/State
Govt.)

b) The decision of the Sole Arbitrator shall be final and binding

upon both the parties. The Cost and expenses of Arbitration
proceedings will be paid by the Parties as determined by the
Arbitrator. However, the expenses incurred by each party in
connection with the preparation, presentation etc. of its
proceedings shall be borne by each party itself.
c) Performance under this Agreement shall continue during the
Arbitration Proceedings and payments due to the Consultant by
the Client shall not be withheld unless they are the subject
matter of the Arbitration proceedings.
d) The Arbitrator shall adjudicate on only such disputes as are
referred to him in the Claim Statement and give separate award

281
 against each dispute and claim referred to him along with
reasons for the award.
e) The fees payable to the Arbitrator shall be paid equally by both
the Parties.
f) The Venue of the Arbitration shall be such place as may be
fixed by the Arbitrator in his sole discretion.
g) The demand for Arbitration by either Party on the other Party in
respect of any claims should be made within the Time Limit for
Validity of the Agreement stipulated under Article 17 of this
Agreement. Any demand for Arbitration beyond this time limit
shall be treated as Time barred and the Party on whom the
claims are made shall be discharged and released of all
liabilities under this Agreement in respect of such Claims.

ARTICLE 20 – ARBITRATION / COURT CASES INVOLVING WORKS

CONTRACTOR

Where the Consultant signs the Agreement with the Contractor for
and on behalf of the Client as an Agent/Power of Attorney Holder and
the Contractor files any claims in Arbitration / Court whether against
the Client or against the Consultant, both the Client and the
Consultant will implead themselves as parties to the Arbitration/Court
proceedings. The Consultant will defend the Arbitration/ Court
proceedings in coordination with the Client. In case any amount is
awarded by the Arbitrator/Court in favour of the contractor and if it is
decided by the Client to challenge the said Award, 75% of the Award
amount including interest (Payout Amount), declared by the Arbitrator
/ Court as payable to the Contractor will be made available by the
Client to the Consultant within 15 days of making of award by the
Arbitrator/court to enable the Consultant to deposit the same (after
obtaining a Bank Guarantee of the like amount from the Contractor) in
the Arbitral Award Escrow Account to be opened by the Contractor in
accordance with NITI Aayog’s OM No. 14070/14/2016 – PPPAU
dated 05.09.2016. Depositing of the said amount in the Escrow
Account will be without prejudice to the rights of the Client and
Consultant and subject to final order of the court in the matter under
challenge. Consequence of any delay in providing funds as required
will be to the Client’s account. In case it is decided by the Client to
accept the Award, the Client will directly pay the Award amount
together with interest, if any, to the Contractor in terms of the Award

282
 under advice to the Consultant. Award amount including interest and
cost of defending the case will form a part of Built up Cost as defined
in Article 5(x). The Consultant and the Client will, by mutual
discussions, decide on what items of claims, if any, are attributable to
gross negligence of the Consultant. If there is any disagreement on
this issue, the same will be referred to for Arbitration under Article 19.

ARTICLE 21–JURISDICTION
The Parties hereby agree that the Courts in the City of ______ alone
shall have the jurisdiction to entertain any application or other
proceedings in respect of anything arising under this Agreement and
any award or awards made by the Arbitrator hereunder shall be filed
in the concerned Courts in the aforesaid City only.
(Note: Article 21 is to be deleted in case Article 19 (a) is with provision
for Arbitration by an Arbitrator by an Arbitrator in the Department of
Public Enterprises).
IN WITNESS HEREOF, the parties have hereunder signed this
AGREEMENT the date first written.

For the Client For the Consultant

(Signature with Name, (Signature with Name,
Designation & Seal) Designation & Seal)

Witnesses:
Witnesses
1. 1.
2. 2.

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 ANNEXURE 5.1
(Refer Para 5.1.6)

PROFORMA FOR AMENDMENT TO THE CONTRACT AGREEMENT

SUPPLEMENTARY AGREEMENT

Contract No. dated

Amendment No.
Name of Works
Serial Page No. of Contract

WHEREAS on the ____ day of ___ an Agreement was entered into by the
undersigned ___________________ (Designation) of RITES LIMITED acting
for and on behalf of as Agent/Power of Attorney Holder of ______
(hereinafter referred to as the “Employer”) and ____ (hereinafter referred to
as the “Contractor”) under which the said Contractor among other conditions
contracted to provide ____ (Name of work).

AND WHEREAS the said parties are now mutually desirous of amending the
said Agreement in certain respects.
It is therefore hereby agreed by and between the Parties thereto as follows:-
Firstly (First item of amendment)______
(say) Secondly (Second item of amendment ) _____
(say) Thirdly (Third item of amendment) _________
(say) Fourthly–That this Amendment shall be numbered as No. ____with
Page No. ___ of the Contract and that the total number of pages on the
INDEX of the Contract shall be amended to read as ____ in lieu of ____.
Finally–That all other Terms of the Contract shall hold good in all other
respects and be in full force and effect.
In witness thereof the said Parties have hereto set their respective hands as
shown below on ____ date.
Signature of Contractor Signature of Engineer in Charge
Date

Seal
Signature and address of Witness
Copy to (Tender Accepting Authority)
Copy to The Employer For information.

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 ANNEXURE 5.2
(Refer Para 5.3)

Lump Sum Contract

1) This form, as its name indicates, is used for work in which contractors are
required to quote a lump-sum amount for completing the works in
accordance with the given designs, drawings, specifications and
functional requirements as the case may be. Lump-sum tender can be
either:
i) For only executing the work as per design, drawing and specification
given by RITES / Employer or
ii) For executing the work including the element of doing design work and
preparation of structural drawings as well, which shall be in keeping with
the given functional, structural and architectural parameters, and subject
to approval by the competent authority before hand.

2) Drawing and design by RITES/ Client

i) In cases where work is to be executed as per designs and drawing to

be supplied to the contractor, all the detailed working drawings, both
architectural and structural must be prepared before-hand, and should
form part of the tender documents, which should also contain
complete and detailed specifications of the work. The tender
documents must set out complete scope of the work. Only the
drawings and the detailed specifications as contained and / or referred
to in the tender documents shall form the basis of execution and
payment.

ii) The extra payment or recovery over and above the accepted rate
shall be called for only in the event of authorized deviations from the
drawings and specifications (as given and / or referred to in the tender
documents) in course of execution and not otherwise.

3) Drawing and design by the contractor – after the award of work

i) In cases where the detailed architectural and structural drawings are

to be provided by the contractor, all the architectural and structural
data / parameters necessary to work out the cost of the work, details
of the functional requirement and complete / detailed specification
thereof, including preliminary drawings, if any, must be finalized
before call of tenders, and the tender documents must contain all

285
 these details so that there is little scope of guess work on the part of
the contractor while tendering, and chances of dispute at a later stage
are minimized. Any clarification or doubt as may be raised by the
intending tenderer should be cleared before the receipt of tender.

ii) A condition should be stipulated in the tender documents that the work
shall be executed as per detailed design and architectural / structural
drawings to be prepared by the successful contractor conforming to
the given parameters and functional / design requirements as
mentioned in the tender documents, and submitted to the department
within specified time after the award of work. The contractor shall
accordingly get the designs / drawings approved by RITES / Client
before taking up execution of the work.

iii) In case any modification for any reason is ordered in course of

execution, suitable adjustment for extra payment or recovery shall be
effected only if such modification results in change in the scope of
work as given in the tender documents, or any change from the
specified parameters.

4) Drawing and design by the contractor – before the award of work

i) Where the contractor is required to give the design and structural

drawings, the contract can suffer from the following infirmities:

(a) The contractor may under-design the structure in order to reduce

the cost and win the contract, or

(b) During the proof checking of the structural design, there could be a
tendency on the part of the contractor not to agree to RITES
genuine contention for revising the structural design that may
increase the cost of structure to his disadvantage.

ii) Wherever the above problem (s) is / are anticipated, the tenders shall
be invited in a two –bid system,

a) The technical bid, containing the architectural plans, structural

design calculations, structural drawings, service plans, the
detailed measurement sheets, and other technical parameters as
may be required, etc.

b) The price bid.

286
 iii) The technical bids shall be evaluated by a Committee chaired by the
tender accepting authority and comprising of officers at appropriate
level from the disciplines concerned with the work. The Committee
shall obtain clarifications from the tenderer (s) and / or call them for
discussions wherever required, and select a final scheme. The same
shall be made available or made known to all the participating
tenderers, preferably through a pre-bid conference, and invite revised
technical bids from them, if required.

iv) After examining the technical bids / revised technical bids, and
equalizing the same in respect of all the tenderers, the price bids shall
be opened. If the tenderers are asked to modify their structural
design and calculations as a result of this exercise, or if the validity
period of the price bids expire, they shall be given the chance of
offering revised price bids, and in that event, only the revised price
bids shall be opened.

v) The NIT approving authority shall consider paying to all the

participating tenderers a reasonable and specified amount for
furnishing all the above details along with their tenders, if it is felt that
the specified requirements so warrant. In that event, the same should
be suitably incorporated in the Tender Document as well as in the
advertisements through website / press.

5) The lump sum tender documents where Drawings and Designs are to be
supplied by RITES / Client (refer Para 2 above) shall contain –

i) a) the detailed architectural and structural drawings

b) detailed specifications for the various items and
components of the work
c) the schedule of quantities for the various items and
components of the work
d) the inclusions in and exclusions from the scope of the
contract, if required, for better clarity, and
e) the various stages of work, and the percentage of the
contract value for each stage for release of intermediate
and final payments.

ii) The schedule of quantities referred to above is only limited for

the purpose of assessing the quantum of work involved by the
tenderers. It is not meant for subsequent measurement and

287
 payment in the course of execution of the work. Before
submitting their tenders, the tenderers shall, therefore, have to
satisfy themselves that the quantities given in the tender
documents for the various items and components of the work
are correct. Deficiencies noticed, if any, should be
immediately brought to the notice of the tender inviting
authority, who shall examine the same, and make necessary
corrections, if required, to the tender documents before receipt
of he tenders.

iii) The contractor shall execute the work as per the drawings and
specifications as given in the tender documents, and shall
have no claim for any payment on account of deviations and
variations in quantity of any items (s) or component (s) of the
work, unless they are authorized deviations from the
parameters, drawings and specifications contained in the
tender documents.

iv) The rates of deviated items shall be determined on the lines of

clause 12.2 of Clauses of Contract for percentage / item rate
contracts.

v) The Controlling Site Engineer and the Project Coordinator

shall satisfy themselves that the work has been done in each
stage in conformity to the drawings and specifications
contained in the tender documents and certify the same before
recommending to the SBU Office for the release of the stage
payment. Project Coordinator shall conduct test checks to the
prescribed levels.

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 ANNEXURE 6.1
(Refer Para 6.1.1)

GUIDELINES FOR CALLING AND ACCEPTING QUOTATIONS

INSTEAD OF TENDERS
1. The quantity of work/supply should not be split with an intention to
bring the value down to a level of quotation.
2. Quotation should be called in cases of one time delivery only within a
short period or any emergent/immediate requirement or for small
items costing more than Rs. 50,000/-. No repeat order is permitted in
case of work undertaken on quotation basis.
3. Minimum three sealed quotations should be collected/called from
reputed and known contractors/ suppliers. There need not be prior
finance concurrence but the basis of selection of the firms should be
recorded.
4. There is no need to form a tender opening committee for the
quotations. The same should be opened by an officer of the rank of
Manager and a comparative statement prepared and got vetted from
Finance as in the case of the tenders.
5. Based on the comparative statement, the competent authority can
decide the quotations without going through process of tender
committee. The accepting authority should satisfy him / her about the
reasonability of rates and other terms with reference to the estimate
and prevailing market conditions.
6. The basis of acceptance should be the lowest qualified quotation. All
principles of financial propriety applicable to tender evaluation should
be followed.
7. Requirement of deposit of earnest money or submission of
performance guarantee may be waived by the accepting authority.
Warranties should, however be insisted depending upon nature of
work or equipment.
8. Advance payment should be avoided as far as possible.
9. A formal acceptance order should be issued.

289
 ANNEXURE 6.2
(Refer Para 6.2)

NOMINATION OF TENDER COMMITTEE–PROCEDURE FOR

CALLING AND ACCEPTANCE OF SINGLE TENDER
Prior administrative approval of the authority competent to call for single
tender, as per Schedule of Powers in force shall be obtained, besides
obtaining finance concurrence.
Before according such administrative approval, the competent authority shall
satisfy himself that the following conditions are fulfilled:
a) That the situation is emergent.
Emergent situations would cover:
(i) Accidents, force majeure, etc. invloving dislocation of
essential services/work.
(ii) Works of specialized nature to be personally approved by the
Divisional Head with prior concurrence of Finance.
(iii) Any other situation where the Executive Director personally
considers it inescapable to call for single tender subject to the
following provisions:
* This power cannot be sub-delegated.
* Prior financial concurrence is obtained.
b) There have been no bids to tenders on minimum two times
c) That in the case of proprietary articles, it is certified that a similar
article is not manufactured by any other firm which could be used
in lieu.
Tight targets and urgency cannot be accepted as a reason for calling
a single tender.

290
 ANNEXURE 6.3
(Refer Para 6.4.1. viii)

GENERAL GUIDELINES FOR FIXING REQUIREMENT

OF TECHNICAL STAFF FOR A WORK
Requirement of
Cost of work Technical staff Minimum Designation
experience
Rs. In lakh) (Years)
Qualification Number
1000 i) Project 1 10 Principal
Manager with Technical
to degree in Representative
2000 corresponding
discipline of
Engineering 1 5 Technical
representative

ii) Graduate 2 Nil Project/Site

Engineer Engineer
And
2 5
iii)Graduate Project
Engineer Planning/Billing
Engineer
or
Diploma
Engineer
500 to 1000 i) Graduate 1 5 Principal
Engineer Technical
Representative
2 Nil Project/Site
ii) Graduate Engineer
Engineer
And
2 5
or
Project
Diploma Planning/Billing
Engineer Engineer

291
 200 to 500 i) Graduate 1 5 Principal
Engineer Technical
Representative
1 Nil Project
ii) Graduate Planning/Site/
Engineer Billing
1 5 Engineer
or
Diploma
Engineer
50 to 200 Graduate 1 5 Principal
Engineer Technical
Representative

10 to 50 Graduate 1 Nil Principal

Engineer Technical
Representative
Or Project
1 5
Diploma Planning/Site/
Engineer Billing
Engineer

Notes: 1. ‘Cost of work’, in Table above means cost of work put to tender plus
the market value of cost of materials, if any, to be supplied free to the
contractor.
2. Rate of recovery in case of non compliance of Clause 36 (iv) will
be at the following rates which may be stipulated in Schedule F of
Tender Document:

S.No. Qualifications Experience Rate of Recovery

(Years) Per Month
(i) Graduate Engineer 10 Rs. 55,000/-
(ii) Graduate Engineer 5 Rs. 40,000/-
(iii) Graduate Engineer Nil Rs. 25,000/-
(iv) Diploma Engineer 5 Rs. 25,000/-

292
3. Nothing extra need to be added while preparing market rate justified
amount of the work if stipulation is made as per above recommended
scale of requirement of technical staff.

4. Requirement of technical staff and their experience can be varied

depending upon the nature of work and in case of composite works by
Tender Approving Authority.

293
 ANNEXURE 6.4
(Refer Para 6.6.4)

RITES LIMITED
(A Government of India Enterprise)

NOTICE INVITING TENDER

N I T No. ____________

GGM/ GM ( ), RITES Limited on behalf of _____________ invites sealed

tenders from contractors who fulfill Qualifying Criteria stipulated in the Tender
document for the following work:

Name of work ___________ Estimated Cost ______________EMD

_______________
Completion period ______________ Last date of submission of tender
_____________

Completed Tender documents including Qualifying Criteria, can be

purchased from (Address) __________ Phone _____________
Fax___________ at a cost of Rs. ___________ or downloaded from our
website www.rites.com.

Amendments/Corrigendum, if any, would be hosted on the website only

294
 ANNEXURE 6.5
(Refer Para 6.8)

QUALIFYING CRITERIA FOR WORKS CONTRACTS

1) General

“Qualifying Criteria for Works Contracts” as appearing in Annexure I of

RITES Standard

Tender and Contract Document as corrected upto date, will be

applicable subject to the following guidelines.

2) Categories of Works

i) Small Works - Costing upto and including Rs.3 Crore

ii) Normal Works - Costing above Rs.3 Crore and upto and
including Rs.100 Crores

iii) Large Works - Costing above Rs.100 Crores

3) Packet Systems to be followed

i) Small works - Single Packet

ii) Normal Works - Two Packets

iii) Large Works - Two Packets

4) Specific provision for Small works

For small works, only the criterion of Works Experience will be

applicable. Criteria of Annual Turnover, Net Worth and Profitability
will not be applicable.

5) Normal and Difficult areas

Difficult areas are NorthEastStates, J&K, Jharkhand, Chattisgarh and

Andaman & Nicobar Islands. Rest of India will fall under the category
of Normal areas.

295
6) Estimated cost of work

Estimated cost of work put to Tender is the anticipated Contract cost

payable to the Contractor. The Value of materials, if any, to be
supplied free to the contractor, will be taken as ‘Nil’ while working out
the Estimated cost of work.

7) Annual Financial Turnover

The minimum Annual Financial Turnover in any one of the last three
financial years should be fixed as under:

i) For works in Normal Areas - 1.0 x Estimated Cost of Works x 12

Completion Time in months

ii) For works in Difficult areas -

a) Works estimated to cost Rs.50 crores 1.0 x Estimated Cost of work x 12

or more - Completion Time in months

b) Works estimated to cost less than 0.5 x Estimated Cost of work x 12

Rs.50 crores - Completion Time in months

If the completion period is less than 12 months, the Minimum Annual

Financial Turnover required shall be calculated by taking the Completion
Time as 12 months in the above formulae.

8) Work Experience

(A) Similar Works Experience

The following stipulations should be kept in mind while indicating the

minimum value of Similar works in Qualifying criteria.
i) For works in Normal Areas

One similar work of Minimum value of 80% of the Estimated Cost of

work

296
 Or

Two Similar Works each of Minimum value of 50% of the Estimated

Cost of work
Or

Three similar works each of Minimum Value of 40% of the Estimated

Cost of work

ii) For works in Difficult Areas

One similar work of Minimum Value of 50% of the Estimated Cost of

work
Or

Two similar works each of Minimum value of 40% of the Estimated

Cost of work

(A1) In case of railway works involving one or more components like

Earthwork, Bridges, Track Linking, Track Laying, OHE, Signalling
etc.the criterion of Work Experience will be as under :

The following stipulations should be kept in mind while indicating the

minimum value of Similar works in Qualifying criteria.

For works in Normal Areas

One similar work of Minimum value of 65% of the Estimated Cost of

work.

Or

Two Similar Works each of Minimum value of 40% of the Estimated

Cost of work.

For works in Difficult Areas

One similar work of Minimum Value of 40% of the Estimated Cost of

work.

Or

297
 Two similar works each of Minimum value of 25% of the Estimated
Cost of work.

(B) Construction Experience in Key Activities / specified

components

With the approval of the Tender Approving Authority, a few

specialized components of work may be stipulated.

9) Servicing of Loan / Credit Limit

i) For Normal Works and Large Works -

a) The bidder should furnish a declaration that he has not failed to

service the principal amount or interest or both of a loan account
/ credit limit from any Bank or Financial Institution during a
period of one year prior to the deadline for submission of bids.

In case a bidder has defaulted in servicing his loan / credit limit

during the past one year, he shall be disqualified.

10) Net Worth

The bidder should have positive net worth of atleast 15% of the
Estimated Cost of Work. This will be judged from the Audited Balance
Sheet of the last financial year ending on a date not prior to 18 months
from the due date for submission of the tender (or, if the due date is
extended, such extended date of submission.)

11) Profitability

The Bidder should be a Profit (Net) making firm and should have
made profit during any two of the past 3 Financial Years immediately
preceding the deadline for submission of bids. If the Audited Balance
Sheet for the immediately preceding year is not available in case of
tenders opened before 30th September, Audited Balance Sheets of
the three Financial Years immediately preceding the previous
Financial Year shall be considered.

298
 COMPARATIVE STATEMENT
ITEM RATE TENDER
(i) TENDER NO: (ii) NAME OF WORK (iii) DATE OF OPENING OF TENDER
(iv) NO. OF TENDERS EVALUATED

Note: If there is any unconditional Rebate its financial implication should be determined and shown below suitably.

BOQ Item Brief Details of BOQ UNIT QUANTITY RATE AS GIVEN IN TENDERER No. TENDERER No.
No. item SANCTIONED
ESTIMATE Name: Name:
UNIT AMOUNT UNIT AMOUNT UNIT RATE UNIT RATE AMOUNT UNIT RATE
RATE (Rs. ) RATE QUOTED QUOTED QUOTED QUOTED QUOTED AS
(Rs. ) QUOTED (Rs. ) AS % OF (Rs. ) (Rs. ) % OF
(Rs. ) ESTIMATE UNIT ESTIMATE
RATE OF RATE OF
RITES RITES

299
Total --- --- --- --- ----' --- ---
Rating Tenderer based on Total --- ---- --- ---
Amount Quoted
Conditions (if any) Quoted --- ---- ---- ---

Note: In the case of item Rate Tenders, only rated quoted against each item shall be considered. Any Tender containing percentage below/above Schedule Rate
against the item shall be rejected. However, any unconditional rebate as a percentage of the total amount quoted is to be accepted. Discrepancies in rates
and amount will be dealt with as under.
(i) If for any item rate in figures and words and the amount have been given and the rates in figures and words don ’t agree with each other, the rate which
corresponds with the amount quoted by the Tenderer, shall unless otherwise proved, be taken as correct.
(ii) If the amount of an item is not worked out by the Tenderer or it does not correspond with the rates written either in figures or in words, then the rate quoted
by the Tenderer in words shall be taken as correct.
(iii) Where the rates quoted by the Tenderer for any item in figures and words tally but the amount for that item is not worked out correctly, the rate quoted by the
Tenderer, unless otherwise proved, should be taken as correct and the amount worked out accordingly.
(iv) In the event that no rate has been quoted for any item (s) leaving space both in figure (s) or word (s) and the amount blank, it will be presumed that the
Tenderer has included the cost of this / these items on other items and rate for such item (s) will be considered as zero.
(v) For any conditional rebate, its financial implication should not be taken into consideration for evaluation of bid price, but the same should be shown separately
ANNEXURE 8.1A

suitably.
 ANNEXURE 8.1B
(Refer Para 8.8.3)

COMPARATIVE STATEMENT PERCENTAGE RATE TENDER

(i) (iii)
(ii) (iv)

300
 ANNEXURE 8.2
(Refer Para 8.14.2)

(FORM OF LETTER OF ACCEPTANCE)

(By REGD POST ACK.DUE/ COURRIER/FAX)
(On the letter head of RITES)
NO. : RITES/ Dated :
To
_________________
(Name & Address of the Contractor)

Dear Sirs,

Sub: TENDER No. FOR THE WORK OF

Ref: Your Tender dated _________________ and letters dated _____________
and this office letter Nos. ___________ dated___________ in reply to the
same.
This is to notify you that your Tender for the work under reference has been
accepted by the Competent Authority of RITES LIMITED for a total Contract Price of
Rs. _______ (Rupees _____________only) in its capacity as an Agent
/Power of Attorney Holder acting for and on behalf of ______ (the Employer).
Pursuant to Clause 1 of the Contract, you are required to furnish irrevocable
Performance Guarantee for an amount equivalent to 5% (Five percent) of the
Contract Price and on Additional Performance Guarantee for an amount of Rs. -------
----- (if applicable). The Guarantee Bonds aggregating to an amount of
Rs.______________ are required to be submitted within ___ days of issue of this
Letter of Acceptance.
The time of ________months allowed for execution of the work will be reckoned
from the date of start as defined in Schedule F or from the first day of the handing
over of the site, whichever is later, in accordance with phasing, if any, indicated in
tender document.

301
You are requested to contact _________ (complete designation and address of the
Project Coordinator) for carrying out the contract.
You are also requested to attend this office within Twenty Eight days from the date
of issue of this letter for execution of the formal agreement. It may be noted that
no payment shall be made for any work carried out by you till
the Agreement is executed and till such time the Performance Guarantee and
Additional Performance Guarantee (where applicable) has/have been submitted by
you.
This Letter of Acceptance is being sent to you in duplicate and you are requested to
return without delay one copy of the letter duly signed and stamped, as a token of
your acknowledgement.
Kindly note that this Letter of Acceptance shall constitute a binding Contract
between us pending execution of formal Agreement.
Your letters as well as this office letters referred to above shall form part of the
Contract.

Yours faithfully,
RITES LIMITED
Agent / Power of Attorney Holder
For and on behalf of______ (The Employer)
Copy to :
1. ___________ (The Employer) for information.
(To be included on the Original sent to the Contractor)
2. Project Coordinator (Complete designation and address)
3. Associated Finance (Not in original)

302
 ANNEXURE 8.3
(Refer Para 8.14.4)

FORM OF AGREEMENT
(ON NON JUDICIAL STAMP PAPER OF APPROPRIATE VALUE)
Agreement No. ________ dated ________
THIS AGREEMENT is made on _________ day of _______ Two thousand
________ between RITES Ltd., a Government of India Enterprise and a
Company registered under Companies Act, 1956 having its registered office
at SCOPE Minar, Laxmi Nagar, Delhi-110012 and its Corporate Office at
RITES BHAWAN, Plot No.1, Sector 29, Gurgaon (Haryana) representing
through ___________ RITES LIMITED acting for and on behalf of and as an
Agent / Power of Attorney Holder of _____ , hereinafter called the Employer
(which expression shall, wherever the context so demands or requires,
include their successor in office and assigns) on one part and M/s. _______
hereinafter called the Contractor (which expression shall wherever the
context so demands or requires, include his/their successors and assigns) of
the other part.
WHEREAS the Employer is desirous that certain works should be executed
viz. (brief description of the work) ______ and has by Letter of Acceptance
dated ______ accepted a tender submitted by the Contrctor for the execution,
completion, remedying of any defects therein and maintenance of such works
at a total Contract Price of Rs. _______ (Rupees _________________ only)
Now THIS AGREEMENT WITNESSETH as follows:-
1. In this agreement words and expressions shall have the same
meaning as are respectively assigned to them in the Conditions of
Contract hereinafter referred to.
2. The following documents in cojunction with Addenda/ Corrigenda to
Tender Documents shall be deemed to form and be read and
construed as a part of this Agreement viz.

(a) The Letter of Acceptance dated ..............

(b) Priced Schedule (Bill) of Quantities
(c) Notice Inviting Tender and Instructions to Tenderers
(d) RITES Tender & Contract Form
(e) Special Conditions

303
 (f) Schedules A to F
(g) Technical specifications
(h) Drawings
(i) Amendments to Tender Documents (list enclosed)
(j) General Conditions of Contract (read with Correction Slip Nos.
1 to ___ ) comprising of:
(i) Conditions of Contract
(ii) Clauses of Contract
(iii) RITES Safety Code
(iv) RITES Model Rules for the protection of Health and
Sanitary arrangements for Workers
(v) RITES’ Contractor’s Labour Regulations

3. In consideration of the payment to be made by the Employer to the

Contractor as hereinafter mentioned, the Contrator hereby covenants
with the Employer to execute, complete, remedy defects therein and
maintain the works in conformity in all respects with the provisions of
the Contract.

4. The Employer hereby covenants to pay to the Contractor in

consideration of the execution, completion, remedying of any defects
therein and maintenance of the works, the contract price or such other
sum as may become payable under the provisions of the contract at
the time and in the manner prescribed by the Contract.
IN WITNESS where of the parties here to have caused their
respective common seals to be hereinto affixed (or have herewith set
their respective hands and seals) the day and year first above written.

304
 SIGNED, SEALED AND DELIVERED BY

_________________________ _____________________
In the capacity of ______ representing RITES LIMITED
In the capacity of Agent /
Power of Attorney Holder

On behalf of M/s. _______ For and on behalf of ________

(The Contractor) (The Employer)

In the presence of In the presence of

Witnesses (Signature, Name & Witnesses (Signature, Name &

Designation) Designation)

1. 1.
2. 2.

305
 ANNEXURE 8.4
(Refer Para 8.15)

TIME LIMIT FOR FINALISATION OF TENDER

(TWO PACKET SYSTEM OF TECHNICAL BID AND FINANCIAL BID)
NOTE: In case of Single Packet System total time can be reduced to 40
days in place of 70 days.
i) Opening of Tender (Technical Bid) D
ii) Submission of Briefing note to Tender Committee by (D + 5)
the Briefing Committee
iii) Tender Committee dispatches letters asking for (D + 7)
clarifications from the tenderers
iv) Tender Committee reviews the clarifications and (D + 22)
submits its recommendations to the Accepting Authority
v) Tender Accepting Authority communicates its decision (D + 30)
about the Tenderers whose Technical Bids are acceptable.
Tenderers concerned advised of Date and Time for opening
of Financial Bids.
vi) Opening of Financial Bids (D + 40)
vii) Submission of Briefing Note and Comparative (D + 45)
Statement to the Tender Committee by Briefing Committee
viii) Tender Committee reviews the above and submits its (D + 55)
recommendations to the Accepting Authority
ix) Accepting Authority’s decision (D + 68)
x) Issue of Letter of Acceptance to the Successful Tenderer (D + 70)

306
 ANNEXURE 8.5
(Refer Para 8.3.2 (iii) & Para 8.11.1)

Ministry of Micro, Small and Medium Enterprises

Office of Development Commissioner (MSME)

New Delhi,
The 23rd March, 2012

ORDER

Public Procurement Policy for Micro and Small Enterprises (MSEs)

Order, 2012

Whereas, the Central Government Ministries, Departments and Public

Sector Undertakings shall procure minimum of 20 per cent of their annual
value of goods or services from Micro and Small Enterprises;

And whereas, the Public Procurement Policy shall apply to Micro and
Small Enterprises registered with District Industries Board or Coir Board or
National Small Industries Corporation or Directorate of Handicrafts and
Handloom or any other body specified by Ministry of Micro, Small and
Medium Enterprises;

And whereas, the Public Procurement Policy rests upon core principles of
competitiveness, adhering to sound procurement practices and execution of
orders for supply of goods or services in accordance with a system which is
fair, equitable, transparent, competitive and cost effective; and

And whereas, for facilitating promotion and development of micro and

small enterprises, the Central Government or the State Government, as the
case may be, by Order notify from time to time, preference policies in respect
of procurement of goods and services, produced and provided by micro and
small enterprises, by its Ministries or Departments, as the case may be, or its
aided institutions and public sector enterprises.

Now, therefore, in exercise of the powers conferred in section 11 of

the Micro, Small and Medium Enterprises Development (MSMED) Act 2006,
the Central Government, by Order, notifies the Public Procurement Policy
(hereinafter referred to as the Policy) in respect of procurement of goods and
services, produced and provided by micro and small enterprises, by its
Ministries, Departments and Public Sector Undertakings.

307
2. Short title and commencement –

(1) This Order is titled as `Public Procurement Policy for Micro and
Small Enterprises (MSEs) Order, 2012.’
(2) It shall come into force with effect from Ist April, 2012.

3. Mandatory procurement from Micro Small and Enterprises – (1)

Every Central Ministry or Department or Public Sector Undertaking
shall set an annual goal of procurement from Micro and Small
Enterprises from the financial year 2012-13 and onwards, with the
objective of achieving an overall procurement of minimum of 25 per
cent, of total annual purchases of products produced and services
rendered by Micro and Small Enterprises in a period of three years.

(2) Annual goal of procurement also include sub-contracts to Micro

and Small Enterprises by large enterprises and consortia of Micro
and Small Enterprises formed by National Small Industries
Corporation.

(3) After a period of three years i.e. from Ist April, 2015, overall
procurement goal of minimum of 25 per cent shall be made
mandatory.

(4) The Central Ministries, Departments and Public Sector

Undertakings which fail to meet the annual goal shall substantiate
with reasons to the Review Committee headed by Secretary
(Micro, Small and Medium Enterprises), constituted in Ministry of
Micro, Small and Medium Enterprises, under this Policy.

4. Special provisions for Micro and Small Enterprises owned by

Scheduled Castes or Scheduled Tribes – Out of 25 per cent target
of annual procurement from Micro and Small Enterprises, a sub-target
of. 4 per cent out of 25 per cent, shall be earmarked for procurement
from Micro and Small Enterprises owned by the Scheduled Caste or
the Scheduled Tribe entrepreneurs and minimum 3 percent(within the
above mentioned 25 percent) shall be earmarked for procurement
from women owned MSEs. Provided that, in event of failure of such
Micro and Small Enterprises to participate in tender process or meet
tender requirements and L1 price, 4 per cent and 3 percent sub-target
for procurement earmarked for Micro and Small Enterprises owned by

308
 Scheduled Caste or Scheduled Tribe and women entrepreneurs
respectively, shall be met from other Micro and Small Enterprises.

5. Reporting of targets in Annual Report – (1) The data on

Government procurements from Micro and Small Enterprises is vital
for strengthening the Policy and for this purpose, every Central
Ministry or Department or Public Sector Undertaking shall report goals
set with respect to procurement to be met from Micro and Small
Enterprises and achievement made thereto in their respective Annual
Reports.

(2) The annual reporting shall facilitate in better understanding of

support being provided by different Ministries or Departments or
Public Sector Undertakings to Micro and Small Enterprises.

6. Price quotation in tenders – (1) In tender, participating Micro and

Small Enterprises quoting price within price band of L1+15 per cent
shall also be allowed to supply a portion of requirement by bringing
down their price to L1 price in a situation where L1 price is from
someone other than a Micro and Small Enterprise and such Micro and
Small Enterprise shall be allowed to supply up to 20 per cent of total
tendered value.

(2) In case of more than one such Micro and Small Enterprise, the
supply shall be shared proportionately (to tendered quantity).

7. Developing Micro and Small Enterprise vendors – The Central

Ministries or Departments or Public Sector Undertakings shall take
necessary steps to develop appropriate vendors by organizing Vendor
Development Programmes or Buyer-Seller Meets and entering into
Rate Contract with Micro and Small Enterprises for a specified period
in respect of periodic requirements.

8. Annual Plan for Procurement from Micro and Small Enterprises

on websites – The Ministries or Departments or Public Sector
Undertakings shall also prepare Annual Procurement Plan for
purchases and upload the same on their official website so that Micro
and Small Enterprises may get advance information about
requirement of procurement agencies.

9. Enhancing participations of Micro and Small Enterprises

including those owned by Scheduled Castes or Scheduled Tribes

309
 in Government procurements – For enhancing participation of
Scheduled Castes or Scheduled Tribes in Government procurement,
the Central Government Ministries, Departments and Public Sector
Undertakings shall take following steps, namely:-

(a) Special Vendor Development Programmes or Buyer-Seller Meets

shall be conducted by Departments/Public Sector Undertakings
for Scheduled Castes or Scheduled Tribes;
(b) Outreach programmes shall be conducted by National Small
Industries Corporation to cover more and more Micro and Small
Enterprises from Scheduled Castes or Scheduled Tribes under its
schemes of consortia formation; and
(c) National Small Industries Corporation shall open a special
window for Scheduled Castes or Scheduled Tribes under its
Single Point Registration Scheme (SPRS).

10. Reduction in transaction cost – To reduce transaction cost of doing

business, Micro and Small Enterprises shall be facilitated by providing
them tender sets free of cost, exempting Micro and Small Enterprises
from payment of earnest money, adopting e-procurement to bring in
transparency in tendering process and setting up a Grievance Cell in
the Ministry of Micro, Small and Medium Enterprises.

11. Reservation of specific items for procurement – To enable wider

dispersal of enterprises in the country, particularly in rural areas, the
Central Government Ministries or Departments of Public Sector
Undertakings shall continue to procure 358 items (Appendix) from
Micro and Small Enterprises , which have been reserved for exclusive
purchase from them. This will help in promotion and growth of Micro
and Small Enterprises, including Khadi and Village Industries, which
play a critical role in fostering inclusive growth in the country.

12. Review Committee – (1) A Review Committee has been constituted

under the Chairmanship of Secretary, Ministry of Micro, Small and
Medium Enterprises, for monitoring and review of Public Procurement
Policy for Micro and Small Enterprises vide Order No. 21(1)/207-MA
dated the 21st June, 2010 (Annexure).

(2) This Committee shall, inter alia, review list of 358 items reserved
for exclusive purchase from Micro and Small Enterprises on a
continuous basis, consider requests of the Central Ministries or

310
 Departments or Public Sector Undertakings for exemption from
20 per cent target on a case to case basis and monitor
achievements under the Policy.

13. Setting up of Grievance Cell – In addition, a `Grievance Cell’ will be

set up in Ministry of Micro, Small and Medium Enterprises for
redressing grievances of Micro and Small Enterprises in Government
procurement. This cell shall take up issues related to Government
procurement raised by Micro and Small Enterprises with Departments
or agencies concerned, including imposition of unreasonable
conditions in tenders floated by Government Departments or agencies
that put Micro and Small Enterprises at a disadvantage.

14. Special Provisions for Defence Procurements – Given their unique

nature, defence armament imports shall not be included in computing
20 per cent goal for Ministry of Defence. In addition, defence
equipments like weapon systems, missiles, etc. shall remain out of
purview of such Policy of reservation.

15. Monitoring of Goals – The monitoring of goals set under the Policy
shall be done, in so far as they relate to the Defence sector, by
Ministry of Defence itself in accordance with suitable procedures to
be established by them.

16. Removal of difficulty – Any difficulties experienced during the course

of implementation of the above Policy shall be clarified by Ministry of
Micro, Small and Medium Enterprises through suitable Press releases
which would be kept on the public domain.

(AMARENDRA SINHA)
Additional Secretary and Development Commissioner
(MSME)

311
 Annexure- 8.5 A

OFFICE MEMORANDUM

Sub: Amendment to the Rule 170 (i) of General Financial Rules (GFR),
2017.

The reference of Department of Industrial Policy & Promotion (DIPP) to

exempt Startups from submitting Ernest Money Deposit(EMD) has been
considered and it has been decided to revise the Rule 170 (i) of GFRs, 2017
regarding ‘ Bid Security’ as under:
“Revised Rule 170(i): To safeguard against a bidder’s withdrawing or
altering its bid during the bid validity period in the case of advertised or limited
tender enquiry, Bid Security (also known as Earnest Money) is to be obtained
from the bidders except Micro and Small Enterprise (MSEs) as defined in
MSE Procurement Policy issued by Department of Micro, Small and Medium
Enterprises (MSME) or are registered with the Central Purchase Organization
or the concerned Ministry or Department or Startups as recognized by
Department of Industrial Policy & Promotion (DIPP). The bidders should
be asked to furnish bid security along with their bids. Amount of bid security
should ordinarily range between two percent to five percent of the estimated
value of the goods to be procured. The amount of bid security should be
determined accordingly by the Ministry or Department and indicated in the
bidding documents. The bid security may be accepted in the form of Account
Payee Demand Draft, Fixed Deposit Receipt, Banker’s Cheque or Bank
Guarantee from any of the Commercial Banks or payment online in an
acceptable form, safeguarding the purchaser’s interest in all respects. The
bid security is normally to remain valid for a period of forty-five days beyond
the final bid validity period”.

2. This OM is also available on our website http://doe.gov.in -> notification -

> Circular --> Procurement Policy OM.

3. Hindi version of this OM will follow

(Vinayak T. Likhar)

Under Secretary to Govt. Of India

312
 Format of Tender Opening Register

Name of Work:
Estimated Cost Put to Tender:
Tender No:
Date & Time of Receipt of Tenders: On ………... / ………... / …………………… upto ………… : ……….. Hrs.
Date & Time of Opening of Tenders: On ………... / ………... / …………………… at ………… : ……….. Hrs.

Details of Late / Delayed Tenders:

No. of Tenders received upto Stipulated Date & Time:
Details of Tenders Opened :
S. No. Name of the Tenderer Details of EMD Details of Cost of Tender Conditions if any * * * * * * * Signature of Remarks, if

313
Document (If Downloaded) Quoted by the Total Amount of Percentage Total Quoted Total Quoted Total Amount Unconditional Total Tenderer or his any of
Tenderer Schedule Items put to (Above/Below) Quoted Amount of Amount of All Items Quoted (in Rs.) Rebate, if any Amount after Representative Tender
Tender (in Rs.) against Schedule Items Schedule Items (in for which Item Rates (8 + 9) Rebate (in with Name of Opening
(Applicable in case of Quoted on have been quoted Rs.) Signatory & their Committee
Percentage Schedule percentage basis ( including Non- remarks if any / Observer
tenders only) in Rs.) Schedule Items (in
Rs.)
1 2 3 4 5 6 7 8 9 10 11 12 14 15
Annexure 8.6
(Ref Para 8.3.26)
 DECLARATION BY TENDERERS OR THEIR REPRESENTATIVES
1 At the time of dropping our bid, we were satisfied that the tender box was locked and sealed.
2 Tender box was opened in our presence to our satisfaction at the Scheduled Time & Date.
3 All the bids were shown to us in sealed condition before opening.
4 Sealed envelops containing Price Bids of all responsive tenderers were placed in another envlop which was sealed in our presence.

5 *The Percentage quoted above/below Schedule Items in case of Percentage Rate Tender & Amount thereof was read out by the Tender Opening Committee.

6 *Quoted Rates & Amounts of all the items i/c Non Schedule items for which item rates were invited were read out by the Tender Opening Committee to our satisfaction.
7 Conditions, if any, quoted by tenderers were read out by Tender Opening Committee to our satisfaction.
8 * Unconditional Rebate & Amount after Rebate were read out by Tender Opening Committee to our satisfaction.
9 Relevant features of the tender were read out to our satisfaction.

1. Signature
Name of Tenderer: 2. Signature 3. Signature
Name of Representative: Name of Tenderer: Name of Tenderer:

314
Designation of Representative: Name of Representative: Name of Representative:
Designation of Representative: Designation of Representative:

4. Signature 5. Signature 6. Signature

Name of Tenderer: Name of Tenderer: Name of Tenderer:
Name of Representative: Name of Representative: Name of Representative:
Designation of Representative: Designation of Representative: Designation of Representative:

1 (i) Signature 2 (i) Signature

(ii) Name and Designation of Member of Tender Opening Committee (ii) Name and Designation of Member of Tender Opening Committee

*Applicable when Price Bids are opened.

 ANNEXURE 10.1
(Refer Para 10.9)

FORM OF GUARANTEE BOND TO BE EXECUTED BY

CONTRACTORS FOR REMOVAL OF DEFECTS AFTER
COMPLETION IN RESPECT OF WATER PROOFING WORKS
(ON NON-JUDICIAL STAMP PAPER OF Rs.10/-)
The Agreement made this ______ day of _____ Two thousand and ____
between _____ (hereinafter called the “GUARANTOR” of the one part) and
________ (hereinafter called the “EMPLOYER”) on the other part.
Whereas this agreement is supplementary to a contract (hereinafter called
the Contract) dated ______ and made between the Guarantor of the one part
and the Employer acting through RITES Ltd. as Agent / Power of Attorney
Holder of the other part, whereby the Contractor, inter alia, undertook to
render the buildings and structures in the said contract cited completely water
and leak-proof.
And whereas Guarantor agreed to give a guarantee to the effect that the said
structures will remain water and leak-proof for five years from the date of
giving of water proofing treatment.
Now the Guarantor hereby guarantees that water proofing treatment given by
him will render the structures completely leak-proof and the minimum life of
such water proofing treatment shall be five years to be reckoned from the
date after the maintenance period prescribed in the contract.
Provided that the Guarantor will not be responsible for leakage caused by
earthquake or structural defects or misuse of roof or alteration and for such
purpose.
a) Misuse of roof shall mean any operation which will damage water-
proofing treatment, like chopping of firewood and things of the same
nature which might cause damage to the roof.
b) Alteration shall mean construction of an additional storey or a part of
the roof or construction adjoining to existing roof whereby water-
proofing treatment is removed in parts.
c) The decision of the Employer with regard to cause of leakage shall be
final.
During this period of guarantee, the Guarantor shall make good all defects
and in case of any defect being found, render the building water proof to the

315
satisfaction of the Employer at his cost and shall commence the work for
such rectification within seven days from the date of issue of the notice from
the Employer calling upon him to rectify the defects failing which the work
shall be got done by the Employer by some other contractor at the
Guarantor’s cost and risk. The decision of the Employer as to the cost,
payable by the Guarantor shall be final and binding.
That if Guarantor fails to execute the water proofing or commits breach
thereunder then the Guarantor will indemnify the Employer and his
successors against all loss, damage, cost expense or otherwise which may
be incurred by him by reason of any default on the part of the Guarantor in
performance and observance of this supplementary agreement. As to the
amount of loss and / or damage and / or cost incurred by the Employer the
decision of the Employer will be final and binding on the parties.
In witness whereof these present have been executed by the Guarantor
_______ and by ________ (Name and Designation of Officer of RITES Ltd. )
acting for and on behalf of the Employer as Agent / Power of Attorney Holder
on the day, month and year first above written.
SIGNED, SEALED and delivered by GUARANTOR in the presence of :-
1.
2.
SIGNED for and on behalf of RITES LTD. by ________ in the presence of:-
1.
2.
Copy to the Employer

316
 ANNEXURE 10.2
(Refer Para 10.9)

FORM OF GUARANTEE BOND TO BE EXECUTED BY CONTRACTORS

FOR REMOVAL OF DEFECTS AFTER COMPLETION IN RESPECT OF
ANTI TERMITE TREATMENT WORKS
(ON NON JUDICIAL STAMP PAPER OF Rs. 10/-)
This Agreement made this ___ day of Two Thousand ____ between
M/s.____________ (hereinafter called the “GUARANTOR” of the one part)
and the ____ (hereinafter called the “EMPLOYER” of the other part).
Whereas this agreement is supplementary to a contract (hereinafter called
the Contract) dated _____ made between the Guarantor of the one part and
the Employer acting through RITES Ltd. as Agent / Power of Attorney Holder
of the other part, whereby the Contractor, interalia, undertook to render the
Buildings and structures in the said contract cited completely Termite proof.
And whereas the Guarantor agreed to give a guarantee to the effect that the
said structures will remain Termite-proof for ten years to be reckoned from
the date after the maintenance period prescribed in the contract expires.
During this period of guarantee the Guarantor shall make good all defects
and for that matter, shall replace at his risk and cost, such wooden members
as may be damaged by termites and in case of any other defect being found
he shall render the building termite proof at his cost to the satisfaction of the
Employer and shall commence the works of such rectification within seven
days from the date of issuing notice from the Employer calling upon him to
rectify the defects failing which the work shall be got done by the Employer by
some other Agency at the Guarantor’s cost and risk and in the latter case the
decision of the Employer as to the cost recoverable from the Guarantor shall
be final and binding.
That if the Guarantor fails to execute the Anti Termite Treatment or commits
breaches there under, then the Guarantor will indemnify the Employer and his
successors against all loss, damage, cost expense or otherwise which may
be incurred by him by reason of any default on the part of the Guarantor in
performance and observance of this supplementary agreement. As to the
amount of loss and / or damage and / or cost incurred by the Employer, the
decision of the Employer will be final and binding on the parties.
In witness whereof these present have been executed by the Guarantor
___________ and by ___ (Name and Designation of Officer of RITES Ltd.)

317
for and on behalf of the Employer as Agent / Power of Attorney Holder on the
day, month and year first above written..
SIGNED, SEALED and delivered by the GUARANTOR in the presence of
___
1.
2.
SIGNED for and on behalf of RITES LTD. by —— in the presence of -
1.
2.
Copy to the Employer

318
 ANNEXURE 12.1
(Refer Para 12.2.4)

PROFORMA FOR LETTER TO BE ISSUED BY THE

ENGINEER-IN-CHARGE TO THE CONTRACTOR IN CASES OF FAILURE
OF

CONTRACTOR UNDER CLAUSE 3 OF CONTRACT TO RECTIFY/

RECONSTRUCT/REPLACE ANY DEFECTIVE WORK

(Same Proforma can be used with some modification if work is being
performed in an inefficient or improper or unworkman like manner)
BY REGD. POST / ACK. DUE
(NOTICE UNDER CLAUSE 3 (i) OF CONTRACT)
Office of _______ (Engineer in Charge)
Letter No. dated
To
(Contractor)
Address
Dear Sir,
Sub: Contract Agreement No. ______ dated ____ Name of work
___________
Your attention is invited to the instructions issued on ______(Date) in the Site
Order Book wherein you have been directed to rectify/reconstruct/replace the
following defective work. ___________________
1. It is noticed that in spite of the fact that considerable time has elapsed
since the issue of such instructions, you have not taken any action to
rectify/reconstruct/replace the defective work.
2. It is accordingly felt that you are not in a position to discharge your
obligations under the contract. I therefore hereby in the capacity of
Engineer in charge give you notices that if the said
rectification/reconstruction/replacement of the defective work is not
taken up by you within 7 days of the date of issue of this letter and
you complete the same within the next —— days thereafter, the
undersigned will be obliged to recommend to the Competent Authority

319
 for determination of the Contract on account of your default in the
discharge of your contractual obligation. In the event of such a
Determination of the Contract, in terms of Clause 3 (i) of the Contract,
the Earnest Money Deposit, Security Deposit already recovered and
Performance Guarantee shall be forfeited by the Employer and further
action will be taken as stipulated in Clause 3 of the contract, without
prejudice to the other rights or remedies available to the Employer
under the terms of the Contract or under law.

3. Please acknowledge receipt of this letter.

Yours faithfully,

Engineer-in-Charge
For and on behalf of RITES Ltd
Copy to:

Site Engineer

320
 ANNEXURE 12.2
(Refer Para 12.2.4)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-

CHARGE TO THE CONTRACTOR IN CASES OF FAILURE BY
CONTRACTOR UNDER CLAUSE 3 OF CONTRACT TO LIFT
SUSPENSION OF WORK / TO PROCEED WITH THE WORK WITH DUE
DILIGENCE
BY REGD. POST / ACK. DUE
(NOTICE UNDER CLAUSE 3 (ii) OF CONTRACT)
Office of _______ (Engineer in Charge)
Letter No. dated
To
(Contractor)
Address
Dear Sir,
Sub: Contract Agreement No. ______ dated ____ Name of work
___________
Your attention is invited to the instructions issued on ____(Date) in the Site
Order Book wherein you have been directed to restart the work which has
been kept suspended since ______ (date) without any reasonable cause / to
proceed with the work with due diligence so as to complete the work within
the stipulated completion date _____.
1. It is noticed that in spite of the fact that considerable time has elapsed
since the issue of such instructions, you have not taken any action to
restart the work / to proceed with the work with due diligence.
2. It is accordingly felt that you are not in a position to discharge your
obligations under the contract. I therefore hereby in the capacity of
Engineer-in-charge give you notices that if the said restarting of the
work/ proceeding with the work with due diligence is not taken up by
you within 7 days of the date of issue of this letter and you complete
the same within the contract period the undersigned will be obliged to
recommend to the Competent Authority for determination of the
Contract on account of your default in the discharge of your
contractual obligation. In the event of such a Determination of the
Contract, in terms of Clause 3 (ii) of the Contract, the Earnest Money

321
 Deposit, Security Deposit already recovered and Performance
Guarantee shall be forfeited by the Employer and further action will be
taken as stipulated in Clause 3 of the contract, without prejudice to the
other rights or remedies available to the Employer under the terms of
the Contract or under law.
3. Please acknowledge receipt of this letter.
Yours faithfully,
Engineer-in-Charge
For and on behalf of RITES Ltd
Copy to: Site Engineer

322
 ANNEXURE 12.3
(Refer Para 12.2.4)
PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-
CHARGE TO THE CONTRACTOR IN CASES OF FAILURE BY
CONTRACTOR UNDER CLAUSE 3 OF CONTRACT TO ACCELERATE
THE PROGRESS OF WORK FOR COMPLETION BY THE STIPULATED
COMPLETION DATE
BY REGD. POST / ACK. DUE
(NOTICE UNDER CLAUSE 3 (iii) OF CONTRACT)
Office of _______ (Engineer in Charge)
Letter No. dated
To
(Contractor)
Address
Dear Sir,
Sub: CONTRACT AGREEMENT NO. ____ DATED ____ NAME OF WORK
_______
The date of completion of work under the above mentioned contract is ___ and I
notice that the progress of the work has been very slow and unless you proceed
with due diligence and accelerate the progress of the work, you are not likely to
complete the work by the stipulated completion date.
1. In the capacity of Engineer-in-charge hereby draw your attention to the fact that
time is of the essence of this contract and accordingly give you notice that if
you do not take necessary action to accelerate the progress of work, within 7
days of issue of this letter, I will be obliged to recommend to the Competent
Authority for determination of the Contract on account of your default in the
discharge of your contractual obligation. In the event of such a Determination
of the Contract, in terms of Clause 3 (iii) of the Contract, the Earnest Money
Deposit, Security Deposit already recovered and Performance Guarantee shall
be forfeited by the Employer and further action will be taken as stipulated in
Clause 3 of the contract, without prejudice to the other rights or remedies
available to the Employer under the terms of the Contract or under law.
2. Please acknowledge receipt of this letter.
Yours faithfully,
Engineer-in-Charge
For and on behalf of RITES Ltd
Copy to: Site Engineer

323
 ANNEXURE 12.4
(Refer Para 12.2.4)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-

CHARGE TO THE CONTRACTOR IN CASES OF FAILURE BY
CONTRACTOR UNDER CLAUSE 3 OF CONTRACT TO CARRY OUT HIS
OBLIGATIONS UNDER THE CONTRACT
BY REGD. POST / ACK. DUE
(NOTICE UNDER CLAUSE 3 (iv) OF CONTRACT)
Office of _______ (Engineer in Charge)
Letter No. dated
To
(Contractor)
Address
Dear Sir,
Sub: CONTRACT AGREEMENT NO. ______ DATED ____ NAME OF
WORK ___________
Your attention is invited to the instructions issued on _______(Date) in the
Site Order book wherein you had been directed to carry out the following
obligations under the contract / to comply with the following terms and
conditions of the contract.
______________ _________
1. It is noticed that in spite of the fact that considerable time has
elapsed since the issue of such instructions, you have not taken any
corrective action.
2. It is accordingly felt that you are not in a position to discharge your
obligations under the contract. I therefore hereby in the capacity of
Engineer in charge give you notice that if you do not take necessary
correction action within 7 days of the date of issue of this letter the
undersigned will be obliged to recommend to the Competent
Authority for determination of the Contract on account of your default
in the discharge of your contractual obligation. In the event of such a
Determination of the Contract, in terms of Clause 3 (iv) of the
Contract, the Earnest Money Deposit, Security Deposit already
recovered and Performance Guarantee shall be forfeited by the
Employer and further action will be taken as stipulated in Clause 3 of

324
 the contract, without prejudice to the other rights or remedies
available to the Employer under the terms of the Contract or under
law.
3. Please acknowledge receipt of this letter.
Yours faithfully,
Engineer-in-Charge
For and on behalf of RITES Ltd
Copy to: Site Engineer

325
 ANNEXURE 12.5
(Refer Para 12.2.4)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-

CHARGE TO THE CONTRACTOR ON DETERMINATION OF CONTRACT
UNDER CLAUSE 3 OF CONTRACT
BY REGD. POST / ACK. DUE
Office of _______ (Engineer-in-Charge)
Letter No. dated
To
(Contractor)
Address
Dear Sir,
Sub: CONTRACT AGREEMENT NO. ______ DATED ____ NAME OF
WORK ___________
Ref: Show Cause Notice under Clause 3(____) of Contract issued vide letter
No. _______ dated _____ by ______ (Site Engineer)
In spite of the Notice issued to you through letter under reference in
connection with the work to be executed under the above mentioned contract,
you have failed to (score out whatever is not applicable and add / delete as
required)
• Rectify / reconstruct / replace the following defective work
_______
• Stop performance of the following work in an inefficient,
improper and unworkman like manner.
• Lift suspension of work imposed by you without any reasonable
cause and proceed with the work with due diligence.
• Complete the work within the stipulated date of completion of
_______
• Carry out your obligation under the Contract and comply with
the terms and conditions of the contract as detailed
below______

326
 • No reply has been received to the Show Cause Notice under
reference till date/Your reply vide your letter No._____ dated
_____ in response to the Show Cause Notice has been
considered carefully but not found to the satisfaction of the
Engineer-in-charge due to reasons mentioned below.
__________ (strike out whichever alternative is not applicable).
1. Therefore, the undersigned ____ (Designation) of RITES Limited
acting for and on behalf of as Agent / Power of Attorney Holder of
__________ (the Employer) in exercise of the powers vested in me in
terms of Clause 3 of Contract and without prejudice to any other right
or remedy which shall have accrued or shall accrue hereafter to the
Employer under the terms of the above said Contract, hereby
terminate your Contract on account of your default and the said
contract shall stand terminated with effect from ____ (date).
2. You are advised that with the termination of the Contract in your
favour, in terms of Clause 3 of Contract, your Earnest Money Deposit,
Security Deposit already recovered and Performance Guarantees
under the Contract shall stand forfeited and shall be absolutely at the
disposal of the Employer.
3. You are accordingly requested to report to office of ____ (Site
Engineer) in person or through an accredited representative at _____
on ______ where an inventory of complete / incomplete works will be
made and recorded jointly. In the event of your failure to keep up this
appointment, inventory will nevertheless be prepared not
withstanding your absence and the same shall be final and fully
binding on you.
4. Please also note that in terms of the provisions under Clause 3 of
Contract, the works remaining unexecuted by you and now taken out
of your hands, will be got executed by another Contractor and you will
not be allowed to participate in the tendering process for the balance
work.
5. It may also be noted that in terms of Clause 3 of Contract, with this
Termination of Contract you shall have no claim to compensation for
any loss sustained by you by reason of your having purchased or
procured any material or entered into any engagements or made any
advances on account or with a view to execution of the work or
performance of the contract. You shall be entitled to be paid only for
the work actually performed under the contract upto the date of
Termination of the Contract as certified by _____ (Engineer).

327
6. This is without prejudice to any other right or remedy which shall have
accrued or accrue hereafter to the Employer.
7. Please acknowledge receipt of this letter.

Yours faithfully,
Engineer-in-Charge
for and on behalf of
: RITES Ltd.
N.O.O.

Copy to:

i) Tender Accepting Authority

for information.

ii) Site Engineer

Copy to The Employer for information

328
 ANNEXURE 12.6
(Refer Para 12.14)

PROFORMA FOR LETTER BY ENGINEER-IN-CHARGE TO THE

CONTRACTOR ON FORECLOSURE OF CONTRACT UNDER CLAUSE 13
OF CONTRACT
BY REGD. POST. / ACK. DUE.
Office of (Engineer in Charge)
Letter No._____ dated_____
To
(Contractor)
Address
Dear Sir,
Sub: CONTRACT AGREEMENT No. _____ DATED ______ NAME OF
WORK___________
It has been decided by the Employer to abandon / reduce the scope of works
and accordingly the items of works listed at Annexure 1 are not required to be
carried out by you. In terms of Clause 13 of Contract, this foreclosure of
Contract is within the Competence of the Employer by giving you notice in
writing.
1. In terms of Clause 13 of Contract, the undersigned _____
(Designation) of RITES Ltd. acting for and on behalf of as Agent /
Power of Attorney Holder of ____ (the Employer) hereby foreclose the
Contract under reference with the direction that the items of works
listed at Annexure 1 are not to be carried out by you.
2. You are accordingly requested to report to the office of ______ (Site
Engineer) in person or through an accredited representative at ____
on _____ when an inventory of complete / incomplete items of works
and the materials at the site will be made and recorded jointly. In the
event of your failure to keep this appointment, the inventory will
nevertheless be prepared not withstanding your absence and the
same shall be fully binding on you.
3. The undersigned will determine the amount payable to you for the
works executed at contract rates and a reasonable amount as
determined for the items listed in Items (i) to (v) of Clause 13 of

329
 Contract subject to the limit mentioned therein. You will be advised
the details of the documents and other information to be made
available by you, to facilitate completion of the above exercise.
4. Your attention is invited specially to the provisions in Clause 13 of the
Contract to the effect that you shall have no claim to any payment of
compensation or otherwise whatsoever, an account of any profit or
advantage which you might have derived from the execution of the
works listed at Annexure 1.
5. This Notice is without prejudice to any other right or remedy which
shall have accrued or may accrue to the Employer under the terms of
this Contract.
6. Kindly acknowledge receipt of this letter.

Encl: Annexure 1
Yours faithfully,
Engineer-in-Charge
N.O.O. for and on behalf of
Copy to : RITES Ltd.
i) Tender Accepting Authority for information.
ii) Site Engineer
Copy to the Employer for information.

330
 ANNEXURE 12.6A
(Refer Para 12.9)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-

CHARGE TO THE CONTRACTOR IF DUE TO DEFAULT OF THE
CONTRACTOR, PART WORK / PART INCOMPLETE WORK IS
PROPOSED TO BE TAKEN OUT OF HIS HANDS, UNDER CLAUSE 14
OF CONTRACT

BY REGISTERED POST / ACK. DUE

(SHOW CAUSE NOTICE UNDER CLAUSE 14 of CONTRACT)

Office of _____________ (Engineer in Charge)

Letter No. ___________ Dated

To

(Contractor)
Address

Dear Sir,

Sub: CONTRACT AGREEMENT No.________ DATED ____

NAME OF WORK __________

1) Your attention is invited to the instructions issued on

_________(Date) in the Site Order Book wherein you had been advised to
have the part work / part incomplete work items listed at Annexure completed
by _________ (Date).

2) It is noticed that inspite of the fact that considerable time has elapsed
since the issue of such instructions, you have not taken any corrective action.

3) It is accordingly felt that you are not in a position to discharge your

obligations under the Contract. I therefore hereby in the capacity of
Engineer-in-charge give you a notice that if you do not take necessary
corrective action within 7 days of the date of issue of this letter, the
undersigned will be obliged to recommend to the Competent Authority for
taking away part work / part incomplete work items as listed at Annexure,

331
from your hands and get them carried out by any other Agency, thus leaving
you to carry out only rest of the work excluding those listed at Annexure. In
the event of such an action by the Competent Authority, in terms of Clause 14
of Contract, you will be liable for loss / damage likely to be suffered by the
Employer and hence will be required to pay to the Employer by way of
compensation a sum equivalent to 20% of the value of part work / part
incomplete work items as per details listed at Annexure with the cost
determined on the basis of your Contract rates. The amount to be paid by
you will however be subject to a maximum of 10% of the Tendered Value.
This is without prejudice to any other right or remedies available to the
Employer under the terms of the contract or under law.

4) Please acknowledge receipt of the letter.

Yours faithfully,

Encl: Annexure
Engineer-in-Charge
For and on behalf of RITES Ltd
Copy to: Site Engineer

332
 ANNEXURE – 12.6 B
(Refer Para 12.9)

PROFORMA FOR LETTER TO BE ISSUED BY THE ENGINEER-IN-

CHARGE TO THE CONTRACTOR IN CASE ACTION IS FINALLY
PROPOSED TO BE TAKEN AGAINST THE CONTRACTOR UNDER
CLAUE 14 OF CONTRACT

BY REGD POST / ACK. DUE

Office of ------------- (Engineer-in-Charge)

Letter No. ………………. Dated:

To:

(Contractor)
Address

Dear Sir,

Sub: CONTRACT AGREEMENT NO. ---------------------- DATED ---------------

--------
NAME OF WORK ----------------------

Ref: SHOW CAUSE NOTICE UNDER CLAUSE 14 OF CONTRACT

ISSUED VIDE LETTER NO. --------------------- DATED -------------- BY
------------------- (SITE ENGINEER)

1) In spite of the Show Cases Notice issued to you through letter under
reference in connection with the work to be executed under the above
mentioned contract, you have failed to carry out your obligations
under the contract as listed in the Show Cases Notice.

2) Therefore, the undersigned ------------- (Designation) of RITES LTD.,

acting for and on behalf of a Agent/Power of Attorney Holder of --------
--- (the Employer), in exercise of the powers vested in me in terms of
Clause 14 of contract, and without prejudice to any other right or
remedy which shall have accrued or shall accrue to the Employer
under the terms of the above said contract or under Law, hereby

333
 withdraw from your hands the part work/part incomplete work items
listed at Annexure with effect from --------- on account of your default.

3) You are advised that in terms of the provisions under Clause 14 of the
contract, you are liable to pay to the Employer within 30 days from the
date of issue of this letter, an amount equivalent to 20% of the value
of part work/part incomplete work as detailed at Annexure enclosed.
The amount to be paid by you has been determined based on your
contract rates including Price Variation as applicable on the date of
issue of this letter. The amount to be paid by you will however be
subject to the limit of maximum of 10% of Tendered Value. If the
payment is not effected within the stipulated period of 30 days, action
will be taken to recover the amount as per procedure laid down in
Clause 14 of contract.

4) Please note that the part work/part incomplete work being taken out of
your hands, will be got executed by another Agency at the discretion
the Employer and you will not be allowed to participate in the
Terdering process for the same.

5) You are directed to continue with execution of the rest of work

excluding that taken out of your hands and complete them within the
Scheduled date of completion/extended date of completion for which
all conditions of contract under reference will be applicable.

6) Please also note that you will have no claim to compensation for any
loss sustained by you by reason of having purchased or procured any
materials or entered into any engagement or made any advance on
any account with a view to execution of work or the performance of
the contract so far as they relate to the part work/part incomplete work
items now taken out of your hands.

7) This is without prejudice to any other right or remedy which has

accrued or shall accrue hereafter to the Employer under the Contract
or under Law.

8) Please acknowledge receipt of this letter.

Yours faithfully,
Encl: Annexure
Engineer-in-Charge
For and on behalf of
RITES LTD.

334
Not in Original

Copy to:

(i) Tender Accepting Authority - for information

(ii) Site Engineer

Copy to:

The Employer - for information

335
 ANNEXURE 12.7
(Refer Para 12.14)

PROFORMA FOR LETTER FROM THE SITE ENGINEER ON BEHALF OF

ENGINEER-IN-CHARGE TO THE CONTRACTOR FOR RECTIFICATION
OF DEFECTS DURING THE MAINTENANCE PERIOD UNDER
CLAUSE 17 OF CONTRACT
BY REGD. POST / ACK. DUE
Office of ____ (Site Engineer)
Letter No. ____ dated____
To
The Contractor
Address
Dear Sir,
Sub: Contract Agreement No. ____ dated ____Name of work
_____________________
In the works completed by you under the above mentioned Contract since the
date of taking over of the works from you, the following defects have been
observed to have developed.
a)
b)
In terms of the provisions under Clause 17 of Contract, you are liable to
rectify the defects observed during the currency of the Maintenance period
which in this Contract extends upto ____ (date). You are accordingly hereby
called upon to rectify the said defects by ___ (date) failing which the same
shall be got rectified through any other agency at your risk and cost without
any further notice to you and you shall solely be liable there for.
Please acknowledge receipt.
Yours faithfully,

(for Engineer-in-Charge)
Copy to (Engineer-in-Charge)

336
 ANNEXURE 12.8
(Refer Para 12.14)

PROFORMA FOR PROVISIONAL CERTIFICATE OF PHYSICAL

COMPLETION TO BE ISSUED BY THE ENGINEER-IN-CHARGE
Office of _______ (Engineer in charge)
Letter No. _______ dated _______
To
(Contractor)
(Address)
Dear Sir,
Sub: CONTRACT AGREEMENT No. ______ DATED ____ NAME OF
WORK ___________
1. In pursuance of provisions under Clause 8 of Contract, I hereby
certify that the work under Contract Agreement No. ______ dated
_____ for the work of ______ has been satisfactorily completed by
________ (Contractor) on ____ (date) subject to the following.
i) Rectification of the defects listed in the statement at Annexure
1.
ii) Clearance of site as stipulated in Clause 8 of Contract.
iii) Completion of items of works listed at Annexure 2 which are
dependent on execution by other Agencies.
2. Please ensure that the defects listed in Annexure 1 are rectified to my
satisfaction not later than ____ (dates) at your cost and under your
own arrangement. It may also be ensured that by that date, the site is
made clear of all items other than permanent work.
3. Please note that items listed at Annexure 3 are proposed to be
accepted at lower rates due to their not being strictly as per the
specifications laid down in the contract.
4. Final Completion Certificate shall be issued on completion of the
items listed above and the Defect Liability Period shall start
from date of issue of Final Completion Certificate.
Yours faithfully,
(Engineer-in-Charge)

337
Encl: Annexures 1, 2 & 3
Not in Original
Copy to ____ (Tender Accepting Authority) with a statement indicating the position of
Extension of Contract Period / Deviation orders / Special rates yet to be finalized and
Claims from the Contractors on which decisions are yet to be conveyed. The officials
of RITES LTD. with whom the papers are pending are indicated against each item in
the statement enclosed.
Copy to the Employer for information.

338
 ANNEXURE 12.9
(Refer Para 12.14)

PROFORMA FOR FINAL COMPLETION CERTIFICATE TO BE ISSUED BY

THE ENGINEER-IN-CHARGE
Office of _______ (Engineer-in-Charge)
Letter No._____ dated_____
To
(Contractor)
Address

Dear Sir,

Sub: CONTRACT AGREEMENT No. _____ DATED ______ NAME OF

WORK___________
Ref: Provisional Certificate of Physical Completion issued under No.
_______ dated _______

In continuation of the Provisional Certificate of Physical Completion issued

under _______ dated ______ in pursuance of the provisions under Clause 8
of Contract, I hereby certify that the work under Contract Agreement No. ___
dated _____ for the work of _____ has been completed
on___________(date). The Defect Liability Period shall start from date of
issue of this certificate.

Items listed at Annexure will be paid for at reduced rates as indicated

against each item at the Annexure. They are strictly not as per specification
but since they are otherwise structurally sound, they have been accepted at
reduced rates as a special case. (PARA TO BE DELETED IF NOT
APPLICABLE)
Yours faithfully,
(Engineer-in-Charge)
Encl: Annexure

339
Not in Original
Copy to ____ (Tender Accepting Authority) with a statement indicating the
position of Extension of Contract Period / Deviation orders / Special rates yet
to be finalized and Claims from the Contractors on which decisions are yet to
be conveyed. The officials of RITES LTD. with whom the papers are pending
are indicated against each item in the statement enclosed.
Copy to the Employer for information.

340
 ANEXURE 12.10
(Refer Para 12.12A)

PROFORMA FOR LETTER TO THE

STATE GOVT. MINING DEPARTMENT

Office of ___________ (Engineer-in-charge)

Letter No. _________________ dated _____________

To,

_________________

, Mining Department,

Govt. of ________________

Dear Sir,
Sub: ROYALITY CHARGES CLEARANCE
CONTRACT AGREEMENT NO.______________________
BETWEEN RITES LTD. AND __________________CONTRACTOR

The Contract Agreement under reference has been executed by RITES on

behalf of _________________________(Employer) with
__________________(Contractor) for the work of
_______________________. In the execution of the Contract, the
Contractor has used minor minerals_______________. A copy of letter no.
__________________ dated ___________issued by the Contractor to your
Department requesting for issue of Royalty Clearance Certificate in his favour
is enclosed. You are requested to kindly advise if any amount is due from the
said Contractor towards royalty charges to enable us to decide on release of
final bill to the Contractor. If no reply is received from your end within four
month from the date of issue of this letter, it will be presumed that there is
nothing due from the Contractor towards Royalty charges and the final bill to
the Contractor will be released.
Yours faithfully,
(Engineer-in-Charge)
Encl: Contractor’s letter dated __________

Copy for information to:

(Contractor)

341
 ANNEXURE 13.1
(Refer Para 13.5.1)

FORM OF APPLICATION BY THE CONTRACTOR FOR SEEKING

EXTENSION OF TIME
PART -I
1. Name of Contractor
2. Name of work as given in the Agreement
3. Agreement No.
4. Estimated amount put to tender
5. Date of commencement of work as per agreement
6. Period allowed for completion of work as per agreement
7. Date of completion as stipulated in agreement
8. Period for which extension of time has been given previously:
a) 1st extension vide No. Dated
From________To_______(_____Days)
b) 2nd extension vide No. Dated
From________To_______(_____Days)
c) 3rd extension vide No. Dated
From________To_______(_____Days)
d) 4th extension vide No. Dated
From________To_______(_____Days)
Total extension previously given.
9. Reasons for which extensions have been previously given (Copies of
the previous sanctions should be attached)
10. Period for which extensions is applied for now
From______To______(_____Days)
11. Hindrances on account of which extensions is applied for with dates
on which hindrances occurred and the period for which these are
likely to last. (Details are to be filled in for each of the Hindrance)
a) Serial No.
b) Nature of hindrance
c) Date of occurrence

342
 d) Period for which it is likely to last
e) Period for which extension required for this particular hindrance
f) Overlapping period if any, with reference to item________
g) Net extension applied for
h) Remarks, if any.
Total period on account of hindrances mentioned above _____
Months ____ Days
12. Extension of time required for extra work
a) Details of extra work and the amount involved:-
b) Proportionate period of extension of time based on estimated
amount put to tender on account of extra work.
13. Total extension of time required for 11 & 12

Submitted to the Site Engineer

Signature of
Contractor
Dated

343
 APPLICATION FOR EXTENSION OF TIME
PART II
(To be filled in by the Site Engineer)
1. Date or receipt of application from _______
Contractor for the work of ________
2. Acknowledgement issued vide No._______ dated
3. Remarks of Site Engineer on the reasons given by the contractor as
to whether they are correct and what extension, if any, is
recommended by him. If he recommends the extension with
liquidated damages reasons for the same should be given.
Signature of
Site Engineer
Dated
(To be filled in by the nominated Project Coordinator).
1. Date of receipt in the Office
2. Project Co-ordinator’s remarks regarding hindrances mentioned by
the Contractor.
i) Serial No.
ii) Nature of hindrance
iii) Date of occurrence
iv) Period for which hindrance is likely to last
v) Extension of time applied for by the contractor
vi) Overlapping period, if any, giving reference to items which
overlap
vii) Net period for which extension is recommended
viii) Remarks as to why the hindrance occurred and justification for
extension recommended.
3. Project Co-ordinator’s Remarks on Request for Extension of time for
extra works.
4. Project Coordinator’s recommendations on whether extension can be
given with or without penalty. The present progress of the work
should be stated and whether the work is likely to be completed by the
date upto which extension has been applied for. If extension of time is

344
 recommended with penalty what compensation is recommended to be
levied under Clause 2 of the agreement.

Signature of Project Co-ordinator

Date

Engineer –in-Charge’s remarks on hindrances, extension of time on account

of extra works and his recommendations on whether extension can be given
with or without liquidated damages.

Signature of Engineer-in-Charge

Remarks of Associated Finance

Signature of AGM/GM (Finance)

Decision by the Competent Authority

(Sl. No. 8 of SOP)

Designation

Copy to the Employer for information

345
 ANNEXURE 13.2
(Refer Para 13.6.1)

PROFORMA FOR GRANT OF EXTENSION OF TIME

(ADVANCE INTIMATION PENDING DECISION ON LEVY
OF LIQUIDATED DAMAGES)

To
Name_______
Address of the Contractor ______
Agreement No. & date
Subject:
Dear Sir(s),
Reference your letter No._______ dated _____ in connection with the grant
of extension of time for completion of the work ________
The date of completion for the above mentioned work is ________ as
stipulated in the agreement dated the ____. Last extension of time granted
was upto _______ vide this office Letter No._________________________
dated ________.
Extension of time for completion of the above mentioned work is now
granted upto ____ without prejudice to the right of RITES to recover
liquidated damages in accordance with the provision of Clause 2 of the said
agreement dated the ____. Decision by the Competent Authority on levy of
liquidated damages will be communicated to you in due course.
Provided that notwithstanding the extension hereby granted, time is and shall
still continue to be the essence of the said agreement.
Yours faithfully,

Engineer-in-Charge
For and on behalf of RITES LTD.
N.O.O
Copy to the Employer for information.

346
 ANNEXURE 13.3
(Refer Para 13.6.2)

PROFORMA FOR GRANT OF EXTENSION OF TIME

WITHOUT LEVY OF LIQUIDATED DAMAGES
To
Name:-
Address of the Contractor:-
Agreement No. & Date:-
Subject:
Dear Sir(s),
Reference your letter No. dated in connection with the grant of
extension of time for completion of the work upto _______ and this office
Letter No._________________ dated ______ granting extension upto
______ reserving the right to levy Liquidated Damages in accordance with
the provisions of Clause 2 of the Agreement.
The date of completion for the above mentioned works is _______ as
stipulated in the Agreement dated _______ Last Extension of time granted is
upto ____ vide this office letter No._______________ dated_____.
Taking into overall consideration the points brought out by you and also the
delays on your part in execution of the work, Extension of time for completion
of the above mentioned work is granted upto ____ without levy of Liquidated
damages by the Authority Competent to grant such extension in terms of
Clause 5 of the Agreement.
Notwithstanding the extension hereby granted, time is and shall continue to
be the essence of the said agreement.
Yours faithfully,

Engineer-in-Charge
For and on behalf of RITES LTD.
Copy to the Employer for information.

347
 ANNEXURE 13.4
(Refer Para 13.9)

PROFORMA FOR SHOW CAUSE NOTICE TO THE CONTRACTOR

REGARDING COMPENSATION UNDER CLAUSE 2 IN CASE
TERMINATION OF CONTRACT IS NOT CONTEMPLATED
To
Name & Address of the Contractor
___________________
___________________

Sub: Show Cause Notice for delayed completion / likely to be delayed

completion of work ____ under Agreement No.______________

Dear Sir (s),

The date of completion for the above mentioned work was / is ______
as stipulated in the agreement number ________ for the work
______________
Extension of time for completion of the above mentioned work was
granted by the Engineer-in-charge vide his letter No. ___________ upto
______________ under clause 5 of the said agreement without prejudice to
the right of RITES to recover compensation in accordance with the
provisions of Clause 2 of the said agreement.
The work entrusted to you under the agreement referred above could
not / is unlikely to be completed within stipulated / extended date of
completion due to your wrongful delay or suspension of work or slow
progress of work or because of reasons within your control. The work has
finally been completed on _________ / cannot be completed within stipulated
/ extended date of completion. Therefore, under the provisions of clause 2 of
the above said agreement you have rendered yourself liable to pay
compensation.
Therefore, in exercise of the power conferred on me by the aforesaid
agreement on behalf of the Competent Authority, I hereby give you notice to
show cause within _____ days to the satisfaction of the Competent Authority
as to why compensation should not be imposed upon you under the
provisions of clause 2 of the said agreement for delayed / likely to be
delayed completion of the work. Please note that in case no cause is shown
by you within the stipulated period or the cause shown is not to the

348
satisfaction of the Competent Authority, such actions will be taken against
you as are contemplated under Clause 2 thereunder of the said agreement
without further notice.
Yours faithfully,

(Engineer in charge)
For and on behalf of RITES Ltd.

Note: Strike out whichever is not applicable. Notice may be modified suitably
if it is intended to impose compensation for any item or group of items of work
for which a separate period of completion is originally given.

349
 ANNEXURE 13.5
(Refer Para 13.9)

PROFORMA FOR INTIMATING THE CONTRACTOR REGARDING LEVY

OF COMPENSATION UNDER CLAUSE 2

(APPLICABLE TO BOTH CASES OF CONTRACT

BEING ALLOWED TO BE CONTINUED OR TERMINATED)
To

Name _________
Address of the Contractor _________
______________________________

Subject: Intimation regarding levy of compensation under clause 2.

Dear Sir (s)

The date of completion for the above mentioned work was ________ as
stipulated in the agreement number ________ for the work of
_____________
Extension of time of completion of the above mentioned work was granted by
the Engineer-in – Charge vide his letter No. upto _________ under clause 5
of the said agreement without prejudice to the right of Employer / RITES to
recover compensation in accordance with the provisions of Clause 2 of the
said agreement.
The work has finally been completed / determined (strike out whichever not
applicable) on ____. You were issued show cause vide this office letter No.
__________ to explain why compensation not be imposed upon you under
the provisions of clause 2 of said agreement for delayed completion of the
work.
Your reply vide letter No._________ received in response to show cause has
been considered carefully, (Reasons for not agreeing with hindrances as

350
claimed by the contractor and total delay on part of contractor to be indicated
in brief). After taking into consideration all the facts & circumstances, the
Competent Authority has come to the conclusion that you are solely
responsible for delay of ___ months ____ days.
In exercise of the powers conferred on him under Clause 2 of the agreement
the Competent Authority has decided and determined that you are liable to
pay Rs.____ as and by way of compensation as stipulated in Clause 2 of the
agreement. The said amount of compensation is hereby levied on you for the
period of ______ and at the rate of ______ as determined by the Competent
Authority on the tendered amount of the work shown in the agreement and
you are hereby called upon to pay the same to RITES Ltd. within _____ (here
mention the period) failing which the said amount shall be recovered from
your Security Deposit and / or Performance Guarantee lying with RITES Ltd.
adjusted or set – off against any sum payable to you under this or any other
contract with RITES Ltd.

Yours faithfully,

(Engineer in charge)
For and on behalf of RITES Ltd.
N.O.O

Copy to the Employer for information.

351
 ANNEXURE 13.6
(Refer Para 13.9)

PROFORMA FOR SHOW CAUSE NOTICE TO THE CONTRACTOR

REGARDING COMPENSATION UNDER CLAUSE 2 (IN CASE CONTRACT
IS DETERMINED UNDER CLAUSE 3)
To
Name & Address of the Contractor
___________________
___________________
Sub: Show Cause against agreement No. ___________ for the work
___________.
Dear Sir (s),
The date of completion for the above mentioned work was ____ as
stipulated in the agreement number _______ for the work of
______________.

Extension of time for completion of the above mentioned work was granted
by the Engineer –in- charge vide his letter no. upto _____ under clause 5 of
the said agreement without prejudice to the right of RITES to recover
compensation in accordance with the provisions of Clause 2 of the said
agreement. (Delete this Para if work was determined before stipulated date
of completion)

The work entrusted to you under the agreement referred above could not be
completed within stipulated / extended (strike out whichever not applicable)
date of completion and the work has been finally determined under clause 3
vide letter dated _____. Under the provisions of clause 2 of the above said
agreement you have rendered yourself liable to pay compensation.

Therefore, in exercise of the powers conferred on me by the aforesaid

agreement, on behalf of the Competent Authority. I hereby give you notice to
show cause within ------- days to the satisfaction of the Competent Authority
as to why compensation should not be imposed upon you under the
provisions of clause 2 of said agreement for your failure to complete the work

352
by the stipulated date of completion / extended date of completion (Strike out
as the case may be). Please note that in case no cause is shown by you
within the stipulated period or the cause shown is not to the satisfaction of
the Competent Authority, such actions will be taken against you as are
contemplated under Clause 2 of the said agreement without further notice.
Yours faithfully,

(Engineer in charge)
For and on behalf of RTIES Ltd.

353
 ANNEXURE 14.1
(Refer Para 14.2.1)

SPECIMEN OF LETTER BY ENGINEER-IN-CHARGE TO CONTRACTOR

FOR PROVISIONAL REDUCTION IN RATE FOR SUB-STANDARD WORK
To
M/s.—————
———————-
Dear Sir(s)
Sub: Construction of _____________ Agreement No.________________
1. RITES considers that the items of work (specified in the statement
appended herewith) relating to the work undertaken by you in terms of
the above agreement have not been executed in accordance with the
prescribed specifications and / or in a workmanlike manner and
therefore, cannot be accepted in terms of the above said agreement
for payment at the rates specified in the agreement.
2. RITES, however, are willing to consider acceptance of the same
should you agree to receive payment at rates suitably reduced taking
into consideration the sub-standard nature of the said items of work.
Competent Authority of RITES will determine as to what suitable
reductions in the rates should be made from the agreed rates for the
said items. His decision shall be final and binding on you. Pending
such decision of the Competent Authority, however, the payment for
the said items of work will be made at the provisional rates indicated
against each item in the Statement enclosed.
3. If you agree to the aforesaid conditions for acceptance of payment for
the said items of work you may please return the enclosed form duly
executed by you.
4. If no reply is received from you within three weeks of the date of
receipt of the letter it shall be presumed that the offer is not
acceptable to you. In the said event the offer shall stand withdrawn,
without prejudice to the rights and remedies of RITES in terms of the
contract.
Yours faithfully,
Engineer-in-Charge
Encl: Statement (refer Para 2) For and on behalf of RITES
Copy to the Employer for information.

354
 ANNEXURE 14.2
(Refer Para 14.2.1)

SPECIMEN OF LETTER OF ACCEPTANCE BY THE CONTRACTOR OF

PROVISIONAL REDUCTION OF RATE FOR SUB STANDARD WORK

To
_____________
_____________
Sub: Construction of ____________
Ref.: Your letter No. ____________
Sir,
I / We have carefully read the terms and conditions offered in your letter
dated ____ and they are acceptable to me / us.
Pending the decision of the Competent Authority of RITES of the final rates of
payment against the items of work specified in the statement attached to your
above letter, which rates will be final and binding. I / We agree to the same
being paid at the provisional rates indicated against each of the said item of
work for the above work as mentioned in your statement.

Yours faithfully,

Contractor (s)

355
 Annexure 16.1
(Refer Para 16.2.1)

MORTARS

LIST OF MANDATORY TESTS

Material Clause Test Field/ Test Min. Frequency

procedure quantity of testing
laboratory of
test material
for
carrying
out the
test

1 2 3 4 5 6 7

Water 3.1.1 (i) pH Value Lab IS 3025 - Water

from each
(ii) Limits of Acidity Lab source
shall be
(iii) Limits of Alkality Lab got tested
before the
(iv) Percentage of solids Lab commenc
ement of
a) Chlorides Lab work and
b) Suspended matter Lab thereafter
c) Sulphates Lab
once in
d) Inorganic solids Lab
e) Organic solids Lab every
three
months till
the
completion
of the
work.
Water
from
municipal
source
need be
tested only
once in six
months.
Number of
Tests for
each
source
shall be 3.

356
Cement 3.1.2 a) Physical requirement

i) Fineness Lab IS 4031 Each lot Every 50

tonnes or
(Part II) part
thereof.
ii) Soundness Lab IS 4031 Each
brand of
(Part III) cement
brought to
iii)Setting time (Initial & Final) Lab IS 4031 site shall
be tested
(Part V) as per this
frequency.
iv) Compressive Strength Lab IS 4031

(Part VI)

v) Consistency of Standard Lab IS 4031

cement paste
(Part VI)

Sand 3.1.3.1 Organic impurities Field Appendix’ 20cum Every 20

A’ cum or
part
thereof or
more
frequently
as decided
by
Engineer-
in-Charge.

3.1.3.2 Silt Content Field Appendix’ 20cum -do-

C’

3.1.3.4 Particle size distribution Field or Appendix’ 40cum 40cum or

a,b,c,d&e Laboratory B’ part
as decided thereof
by the
Engineer-
in-Charge

3.1.3.5 Bulking of Sand Field Appendix’ 20cum Every 20

D cum or
part
thereof or

357
 more
frequently
as decided
by
Engineer-
in-Charge.

Fly Ash 3.1.5 & Total chloride in percent by Lab IS 12423 10cum Every 10
3.1.5.1 mass, max. cum or
part
thereof or
more.

Loss of ignition in percent by Lab IS1727 10cum Frequency

mass, max. as decided
by
Engineer-
in-Charge

Fineness, specific surface in Lab/field Blaine’s 10cum -do-

2 permeability
m /kg
method

Compressive strength at 28 Lab - 10cum Only in

2
days in N/mm , Min. cases
when fly
ash is
used as
pozzolana
in cement

358
 ANNEXURE 16.2
Cement Concrete work
LIST OF MANDATORY TESTS

Material Clause Test Field/ Test Min. Frequency

procedure quantity of testing
laboratory of
test material
for
carrying
out the
test

1 2 3 4 5 6 7

Stone 4.1.2.2 a) Percentage of soft or Field or IS 2386- As For all

aggregate deleterious material Laboratory- Part II required quantities.
Test as by
required Engineer
-in-
Charge

4.1.2.3 Particle size Field/Lab Appendix 45 cum For every

‘A’ 45 cum or
part
thereof for
RCC work
only. For
rest of
items as
decided by
Engineer-
in-Charge.

4.1.2.5 a) Estimation of organic Field/Lab IS 2386- 10cum For every

impurities Part II 40 cum or
part
thereof

b) Surface moisture Field/Lab IS 2386 10cum -do-

c) Determination of 10% Field/Lab IS 2386 10cum -do-

fine value

d) Specific gravity Field/Lab IS 2386 10cum -do-

e) Bulk Density Field/Lab IS 2386 10cum -do-

359
 f) Aggregate crushing Field/Lab IS 2386 10cum -do-
strength

g) Aggregate impact value Field/Lab IS 2386 10cum -do-

Concrete 4.2.2 Slump test Field Appendix 10cum 15 cum or

‘D’ part
thereof

360
 ANNEXURE 16.3
Reinforced Cement Concrete work
LIST OF MANDATORY TESTS

Material Clause Test Field/ Test Min. Frequency of

laboratory procedure quantity of testing
test material
for
carrying
out the
test

1 2 3 4 5 6 7

Reinforced 5.4.1 a) Slump test Field/Lab Appendix I) 5 cum in i) Every 5 cum of

cement ’D’ of case of part thereof
concrete Chapter 4 column
(Nominal Mix)
ii) 20 cum ii) Every 20 cum or
for slabs, part thereof
beams
and
connecte
d
columns

iii) 20 cum iii) do-

for other
R.C.C.
work for
all other
small
items and
where
R.C.C.
done in a
day is
less than
5 cum
test may
be
carried
out as
required
by
Engineer-
in-Charge

5.4.9.1 b) Cube test Lab Appendix i) 5 cum in i) Every 5 cum of

’A’ case of part thereof
column

ii) 20 cum ii) Every 20 cum or

for slabs, part thereof
beams
and

361
 connecte
d
columns

iii) 20 cum iii) do-

for other
R.C.C.
work for
all other
small
items and
where
R.C.C.
done in a
day is
less than
5 cum
test may
be
carried
out as
required
by
Engineer-
in-Charge

Reinforced Coarse 50 cum or

cement Aggre- part thereof
concrete gates & also on
(Design Mix) each
change of
source

Fine 50 cum or
Aggre- part thereof
gates & also on
each
change of
source

Cement 50 MT or
on each
change of
source

Fresh a) Slump test Field Appendix 10 cum 50 cum for R.C.C.

Concrete ‘D’ of work including in all
Chapter 4 other small location.
R.C.C. done in a day
is less than 50 cum
test may be carried
out as required by
Engineer-in-Charge

Fresh b) Cube test Lab Appendix 10 cum of 50 cum or 10

Concrete ‘A’ part thereof batches of 5-7 cum
each for R.C.C. work

362
 in all location taken
together. R.C.C.
done in a day is less
than 50 cum test
may be carried out
as required by
Engineer-in-Charge

Reinforced Coarse 50 cum or

cement Aggre- part thereof
concrete gates & also on
(Ready Mix) each
change of
source

Fine 50 cum or
Aggre- part thereof
gates & also on
each
change of
source

Cement 50 MT or
on each
change of
source

Fresh a) Slump test Field/Lab Appendix 10 cum 50 cum for R.C.C.

Concrete ‘D’ of work including in all
Chapter 4 other small location.
R.C.C. done in a day
is less than 50 cum
test may be carried
out as required by
Engineer-in-Charge

Fresh b) Cube test Lab Appendix 10 cum of 50 cum or 10

Concrete ‘A’ part thereof batches of 5-7 cum
each for R.C.C. work
in all location -
Taken together.
R.C.C. done in a day
is less than 50 cum
test may be carried
out as required by
Engineer-in-Charge

Steel for 5.1.3 A) Physical a) For b) For

reinforced Test and consig consig
cement Chemical tests n- -nment
ment over
concrete
below 100
100 tones
tones

i) Under i) Under
10mm 10m
dia, one m

363
 sample dia,
for each one
25 samp
tonnes le for
or part each
thereof. 40
tonn
es or
part
there
of.

ii) 10mm to ii) 10mm

16 mm to 16
dia one mm
sample dia
for each one
35 sampl
tonnes e for
or part each
thereof 45
tonnes
or part
thereof

iii) Over 16 iii) Over

mm dia 16 mm
one dia one
sample sample
for each for each
45 50
tonnes tonnes
or part or part
thereof thereof

364
 ANNEXURE 16.4
Brick Work
LIST OF MANDATORY TESTS

Sl. Material Clause Test Field/ Test Minimum

No. procedure Qty. of
Laboratory Material for
Test carrying
out the test

(i) Bricks/ 6.1.3 Testing of Laboratory Appendix A, As per

Bricks/Brick B, C & D of Table 6.3
Brick 6.1.4 Tiles for Chapter 6 and 6.4
dimensions,
Tiles 6.1.5 Compressive
strength, water
absorption and
efflorescence

(ii) Sewer 6.1.4 Dimensions, Laboratory Appendix A, As per

Compressive B, C & D of Table 6.3
Bricks strength, water Chapter 6 and 6.4
absorption and
efflorescence

(iii) Burnt clay 6.1.5 -do- -do- -do- -do-

perforated
building bricks

365
 ANNEXURE 16.5
Marble work

LIST OF MANDATORY TESTS

Material Clause Test Field/ Test Min. Quantity Frequency

procedure of of Testing
Laboratory Material/work
Test for carrying
out the test

Marble 8.3 (i) Moisture Laboratory IS 1124 50 sq.m 100 sqm or

(Table Absorption part thereof.
8.2)

(ii) Hardness -do- Mho’s Scale -do- -do-

Test

(iii) Specific -do- IS 1122 -do- -do-

Gravity

Granite i) Moisture -do- IS 1124 -do- -do-

ii) Specific -do- IS 1122 -do- -do-

Gravity

366
 ANNEXURE 16.6
Wood Work
LIST OF MANDATORY TESTS

Material Clause Test Field/ Test Min. Frequency

procedure Quantity of Testing
Laboratory of
Test Material
for
carrying
out the
test

1 2 3 4 5 6 7

Timber 9.1.6 Moisture Field (by Appendix 1 cum Every one

content moisture ‘C’ cum or part
meter) thereof.
laboratory
test as
required by
Engineer-
in-Charge

Flush 9.7.10 End Laboratory IS 2202 26 As per

door immersion Appendix shutters sampling
Test knife ‘F’ and testing
test specified in
Adhesion clause
Test 9.7.11

Mortice 9.15.13 Testing Laboratory IS 2209 50 Nos. 100 or part

Lock of spring Appendix thereof.
‘G’

367
 ANNEXURE 16.7

Steel Work

LIST OF MANDATORY TESTS

Material Clause Test Field/ Test Min. Frequency

Laboratory procedure Quantity of Testing
Test of
Material
for
carrying
out the
test

1 2 3 4 5 6 7

Steel if 10.1.1 (a) Tensile Laboratory IS 1599 20 tonne Every 20

arranged strength tonne or
by the part
contractor (b) Bend test thereof.

Steel 10.13 (a)Tensile Laboratory IS 1608 Every 8 Every 8

tubular Test tonne or tonne or
pipes part part
(b) Bend thereof thereof.
Test IS 2329

(c)Flattening
Test
IS 2328

368
 ANNEXURE 16.8

Flooring
LIST OF MANDATORY TESTS

Material Clause Test Field/ Test Min. Frequency of

Procedure Quantity Testing
Laboratory of
Test Material
for
carrying
out the
test

1 2 3 4 5 6 7

Terrazzo 11.10.1 & 1.Transverse Laboratory IS: 1237 5000 Nos. One test of
Tiles 11.11.1 strength (No testing every 10,000
need be Nos. or part
2.Water done if thereof for each
absorption total type and size
number of from a single
3.Abrasion tiles of all manufacturer.
test types of all (One test to be
sizes from done even if the
all number of
manufactu Terrazo tiles of
rers used any type and
in a work size from a
is less single
than 5000 manufacturers is
Nos.) less than 5000
Nos. provided
the total number
of terrazo tiles
of all types and
sizes from all
manufacturers
used in a work
exceed 5000
Nos.

Pressed 11.4, 1.Dimensions Laboratory IS: 13630 3000 Nos. 3000 Nos. or
ceramic and surface part thereof.
tiles (for 11.5 & quality
floor & wall) 11.16 2.Physical
properties
3.Chemical
properties

369
 ANNEXURE 16.9
Road Work

LIST OF MANDATORY TESTS

Material Clause Test Field/ Test Min. Frequency

Laboratory Test procedure Quantity of Testing
of
Material
for
carrying
out the
test
1 2 3 4 5 6 7

Coarse 16.1.1 1.Los Angles Laboratory IS:2386 Per 200

3
Aggregate m
(Part IV)

2.Abrasion IS:2386
Value or
Aggregate (Part V)
Impact
Value IS:5640

3.Flakiness IS:2386
Index
(Part I)

16.1.1 Grading Field IS:2386 Nil Per 100

3
requirement m
Table (Part I)
16.2

Fine 16.1.2 Deleterious Laboratory IS:2386 Nil As

Aggregate materials required
(Part III) by the
Engineer-
in-Charge

Bitumen 16.1.5 As prescribed Laboratory As Nil As

in IS 73 prescribed required
in IS 73 by the
Engineer-
in-Charge

3
Embankment 16.3.1 1.Moisture Laboratory Field IS: 2720 Nil 250 m
under (O.M.C. content (Part II)
conditions)
IS: 2720
2. Density
(Part

370
 3
XXVIII) Nil 250 m

16.3.4.4 3. Control test Laboratory

on borrow
pits.

(a)Gradation Laboratory IS: 2720 Nil One to

Two tests
(Part IV) per

3
8000 m

(b)Plasticity Laboratory IS: 2720 Nil -Do-

(Part V)

(c)Proctor Laboratory IS: 2720 Nil -Do-

Test
(Part III)

(d)Deleterious Laboratory Nil As

content required
by the
Engineer-
in-Charge

3
(e)Moisture Laboratory IS:2720 Nil 250 m
content
(Part II)

Bitumen 16.32 1.Binder Field IS 73 Nil As

Penetration required
Macadam by the
Engineer-
in-Charge

2.Aggregate Laboratory IS:2386 Nil Per 100

3
Abrasion m
impact value (Part IV) of
aggregate
or Los Angles
as
Value
required
by the
Engineer-
in-Charge

371
 3.Flakiness Laboratory IS:2386 Nil -Do-
Index
(Part I)

4.Stripping Laboratory IS:6241 Nil -Do-

Value

5.Grading of Field or IS:2386 Two tests

Aggregate Laboratory per day
(Part I) per plant.

Bitumen 16.33 1.Los Angles Laboratory IS:2386 Nil For every

Mastic Abrasion
3
Wearing Value/ (Part IV) 100 m
Course Aggregate
Impact
Value

2.Flakiness Laboratory IS:2386 -Do-

Index
(Part I)

3.Stripping Laboratory IS: 6241 -Do-

Value

4.Mix Grading Field/ Laboratory IS:2386 One set of

test on
(Part I) individual
constituent
s and
mixed
aggregate
from dryer
for each
100
tonnes of
mix
subject to
minimum
of two sets
per plant
per day.

Dense 16.46 1.Quality of Laboratory IS 73 Nil As

Bitumen Binder required.
Macadam

372
 3
2.Los Angles Laboratory IS:2386 Nil 100 m
Abrasion
Value/ (Part IV)
Aggregate
Impact
Value

3.Stripping Laboratory IS 6241 Nil -Do-

Value

4.Water -D0- IS:2386 -Do- -Do-

Absorption (Part III)

5.Flakiness -Do- IS:2386 -Do- One test

Index for
(Part I)
100 cum.

6.Sieve -Do- IS:2386 -Do- One test

Analysis for for each
filler (Part I) consignme
nt subject
to
minimum
one test
per 5 cum.

7.Mix Grading -Do- IS:2386 -Do- One set of

test on
(Part I) individual
constituent
and mixed
aggregate
s from
dryer for
each 100
tonnes of
mix
subject to
a
minimum
of two sets
per plant
per day.

8.Stability of -Do- ASTM D -Do- Three

Mix 1559 Marshall
specimen
per 100
tonnes of
mix,

373
 subject to
a
minimum
of 2 sets
being
tested per
plant, per
day.

9.Binder Field -Do- One test for

Content each 100
tonnes of
mix subject
to minimum
of two tests
per day per
plant.

10.Thickness, Field Appendix -Do- One test

Density of ‘B’ of 3
compacted samples
layer per 500
sqm.

Same as Same as above Same as Nil Same as

above except above for
Test No. 6&7 Asphaltic
concrete

Cement 16.37.19 Coarse Before

concrete aggregate approval
pavement Laboratory IS: 2386 - of the
under 1.Flakiness quarry and
controlled Index (Part I) every sub-
conditions sequent
change in
the source
of supply
and one
test per
100 cum.

2.Impact -Do- IS: 2386 - -Do-

Value
(Part IV)

3.Loss Angles -Do- -Do- - -Do-

Abrasion
Value

374
4.Deleterious -Do- IS: 2386 - Before
material approval of
(Part II) the quarry
and at every
subsequent
change in
the source
of supply.

5.Moisture -Do- IS:2386 - Regularly

content as required
(Part III) subject to a
minimum of
one test per
day.

Fine
Aggregate

1.Silt content Field As per - One test

CPWD per
specificatio
n Vol.1. 15 cum.

2.Gradation of -Do- IS:2386 - -Do-

sand
(Part II)

3.Deleterious -Do- IS:2386 Before

material approval
(Part II) of the
quarry and
at every
subseque
nt change
in the
source of
supply.

4.Moisture -Do- IS:2386 - Regularly

content as
(Part III) required
subject to
a
minimum
of two
tests per
day.

375
5.Mix Field IS:2386 - One test
Aggregate per
(Part I)
15 cum of
concrete

6.Flextural Laboratory IS: 526 - One test

strength consisting
of 8
specimen
for

30 cum of
concrete.

376
 Annexure 16.10
(Refer Para 16.3)

EXTRACTS FROM IS 456 : 2000

Note : This Annexure 16.10 is given only for ready reference. In case of
any discrepancy, IS 456 : 2000 with up to date Amendments shall take
precedence over this Annexure 16.10.

Table 2 grades of Concrete

(Clause 6, 1, 9. 22, 15. 1.1 and 36.1)

Group Grade Designation Specific Characteristic

Compressive Strength of 150
mm Cube at 28 days in N /
Sqmm.
(1) (2) (3)
Ordinary M 10 10
Concrete
M 15 15
M 20
20

Standard M25 25
Concrete
M30 30
M35 35
M40 40
M45 45
M50 50
M55 55
High M 60 60
Strength
Concrete M 65 65
M 70 70

377
 M 75 75
M 80 80

Notes:
1. In the designation of concrete mix M refers to the mix and the number
to the specified compressive strength of 150 mm size cube at 28
days, expressed in N/sqmm.
2. For Concrete of compressive strength greater than M 55, design
parameters given in the standard may not be applicable and the
values may be obtained from specialist literatures and experimental
results.

378
 Table 8 Assumed Standard Deviation
(Clause 9.2.4.2 and Table 11)

Grade of Concrete Assumed Standard

Deviation N/sq.mm.
(1) (2)
M 10 3.5
M 15

M 20 4.0
M 25

M 30 5.0
M 35
M 40
M 45
M 50

NOTE: The above values correspond to the site control having proper storage
of cement; weigh batching of all materials; controlled addition of
water, regular checking of all materials, aggregate gradings and
moisture content; and periodical checking of workability and strength.
Where there is deviation from the above, values given in the above
table shall be increased by 1N/sqmm.

379
 Table 9 Proportions for Nominal Mix Concrete
(Clause 9.3 and 9.3.1)

Grade of Total Quantity of Dry Aggregates Proportion of Fine Aggregate to Quantity of

Concrete by Mass per 50 kg of Cement, Coarse Aggregate (by Mass) Water per
to be Taken as the Sum of the 50 kg. of
Individual Masses of Fine and Cement, Max
Coarse Aggregates, kg. Max

(1) (2) (3) (4)

M5 800 Generally 1: 2 but subject to an 60

M 7.5 625 upper limit of 1: 1 1/ 2 and a 45

M 10 480 lower limit of 1: 2 1 / 2 34

M 15 330 32

M 20 250 30

NOTE: The proportion of the fine to coarse aggregates should be adjusted from
upper limit to lower limit progressively as the grading of fine aggregates
becomes finer and the maximum size of coarse aggregate becomes larger.
Graded coarse aggregate shall be used.

Example:
For an average grading of fine aggregate (that is, zone II of Table 4 IS 383),
the proprotions shall be 1: 1 1/2, 1:2 and 1:2 1 /2 for maximum size of
aggregates 10 mm, 20 mm and 40 mm respectively.

380
 ANNEXURE 16.10 (Contd.)

EXTRACTS FROM IS 456-2000 (contd)

15. SAMPLING AND STRENGTH OF DESIGNED CONCRETE MIX

15.1 General
Samples from fresh concrete shall be taken as per IS 1199 and cubes
shall be made, cured and tested at 28 days in accordance with IS
516.
15.1.1 In order to get a relatively quicker idea of the quality of concrete,
optional tests on beams for modulus of rupture at 72 + or - 2h or at 7
days, or compressive strength —tests at 7 days may be carried out in
addition to 28 days compressive strength test. For this purpose the
values should be arrived at based on actual testing. In all cases, the
28 days compressive strength specified in Table 2 shall alone be the
criterion for acceptance or rejection of the concrete.
15.2 Frequency of Sampling
15.2.1 Sampling Procedure
A random sampling procedure shall be adopted to ensure that
each concrete batch shall have a reasonable chance of being
tested that is, the sampling should be spread over the entire
period of concreting and cover all mixing units.
15.2.2 Frequency
The minimum frequency of sampling of concrete of each
grade shall be in accordance with the following:
Quantity of Concrete in the Work (cum) Number of samples

1-5 1
6-15 2
16-30 3
31-50 4
51 and above 4 plus one additional sample for each
additional 50 cum. or part thereof.

381
 NOTE- At least one sample shall be takenfrom each shift. Where
concrete is produced at continuous production unit, such as
ready mixed concrete plant, frequency of sampling may be
agreed upon mutually by suppliers and purchasers.
15.3 Test Specimen
Three test specimens shall be made for each sample for testing at 28
days. Additional samples may be required for various purposes such
as to determine the strength of concrete at 7 days or at the time of
striking the form work, or to determine the duration of curing, or to
check the testing error. Additional samples may also be required for
testing samples cured by accelerated methods as described in IS
9103. The specimen shall be tested as described in IS 516.
15.4 Test Results of Sample
The test results of the sample shall be the average of the strength of
three specimens. The individual variation should not be more than +
or – 15 per cent of the average. If more, the test results of the sample
are invalid.
16 ACCEPTANCE CRITERIA
16.1 Compressive Strength
The concrete shall be deemed to comply with the strength
requirements when both the following conditions are met:
a) The mean strength determined from any group of four consecutive
test results complies with the appropriate limits in col 2 of Table
11.
b) Any individual test result complies with the appropriate limits in col
3 of Table 11.
16.2 Flexural Strength
When both the following conditions are met, the concrete complies
with the specified flexural strength.
a) The mean strength determined from any group of four consecutive
test results exceeds the specified characteristic strength by at
least 0.3 N / sqmm.
b) The strength determined from any test result is not less than the
specified characteristic strength less 0.3 N/sqmm.

382
16.3 Quantity of Concrete represented by Strength Test Results
The quantity of concrete represented by a group of four consecutive
test results shall include the batches from which the first and last
samples were taken together with all intervening batches.
For the individual test results requirements given in col 2 of
Table 11 or in item (b) of 16.2 only the particular batch from which
the sample was taken shall be at risk.
Where the mean rate of sampling is not specified, the maximum
quantity of concrete that four consecutive test results represent shall
be limited to 60 cum.
16.4 If the concrete is deemed not to comply pursuant to 16.3, the
structural adequacy of the parts affected shall be investigated (see
17) and any consequential action as needed shall be taken.
16.5 Concrete of each grade shall be assessed separately.
16.6 Concrete is liable to be rejected if it is porous or honey- combed, its
placing has been interrupted without providing a proper construction
joint, the reinforcement has been displaced beyond the tolerances
specified, or construction tolerances have not been met. However, the
hardened concrete may be accepted after carrying out suitable
remedial measures to the satisfaction of the Engineer in Charge.
Table 11 Characteristic Compressive Strength Compliance Requirement
(Clauses 16.1 and 16.3)
Specified Grade Mean of the group of 4 Individual Test
Results in
Non-Overlapping N/ sqmm.
consecutive Test Results in
N/ sqmm.
(1) (2) (3)
M 15 > fck + 0.825 x established > fck -3
N/sqmm
standard deviation (rounded
off to nearest 0.5 N / sqmm)
or
fck + 3 N / sqmm. Whichever
is greater

383
 M20 or above > fck + 0.825 x established > fck - 4
N/sqmm
standard deviation (rounded
off to nearest 0.5 N / sqmm)
or
fck + 4 N / sqmm. Whichever
is greater
________
NOTE :
1. In the absence of established value of standard deviation, the values
given in Table 8 may be assumed, and attempt should be made to
obtain results of 30 samples as early as possible to establish the value
of standard deviation.
2. fck stands for 15 in case of M15, 20 in case of M 20 etc.

17. INSPECTION AND TESTING OF STRUCTURES

17.1 Inspection
To ensure that the construction complies with the design, an
inspection procedure should be set up covering materials, records,
workmanship and construction.
17.1.1 Tests should be made on reinforcement and the constituent
materials of concrete in accordance with the relevant
standards. Where applicable, use should be made of suitable
quality assurance schemes.
17.1.2 Care should be taken to see that:
a) Design and detail are capable of being executed to a
suitable standard, with due allowance for dimensional
tolerances;
b) There are clear instructions on inspection standards;
c) There are clear instructions on permissible deviations;
d) Elements critical to workmanship, structural
performance, durability and appearance are identified
and

384
 e) There is a system to verify that the quality is satisfactory
in individual parts of the structure, especially the critical
ones.
17.2 Immediately after stripping the form work, all concrete shall be
carefully inspected and any defective work or small defects either
removed or made good before concrete has thoroughly hardened.
17.3 Testing
In case of doubt regarding the grade of concrete used, either due to
poor workmanship or based on results of cube strength tests,
compressive strength tests of concrete on the basis of 17.4 and/or
load test (see 17.6) may be carried out.
17.4 Core Test
17.4.1 The points from which cores are to be taken and the number
of cores required shall be at the discretion of the engineer in
charge and shall be representative of the whole of concrete
concerned. In no case, however, shall fewer than three cores
be tested.
17.4.2 Cores shall be prepared and tested as described in IS 516.
17.4.3 Concrete in the member represented by a core test shall be
considered acceptable if the average equivalent cube
strength of the cores is equal to atleast 85 per cent of the
cube strength of the grade of concrete specified for the
corresponding age and no individual core has a strength less
than 75 per cent.
17.5 In case the core test results do not satisfy the requirements of 17.4.3
or where such tests have not been done, load test (17.6) may be
resorted to.
17.6 Load Tests for Flexural Member
17.6.1 Load test should be carried out as soon as possible after
expiry of 28 days from the time of placing of concrete.
17.6.2 The structure should be subjected to a load equal to full dead
load of the structure plus 1.25 times the imposed load for a
period of 24 h and then the imposed load shall be removed.

385
 NOTE - Dead load includes self weight of the structural members plus
weight of finishes and walls or partitions, if any, as considered
in the design.
17.6.3 The deflection due to imposed load only shall be recorded. If
within 24 h of removal of the imposed load, the structure does
not recover at least 75 per cent of the deflection under
superimposed load, the test may be repeated after a lapse of
72 h. If the recovery is less than 80 per cent, the structure
shall be deemed to be unacceptable.
17.6.3.1 If the maximum deflection in mm, shown during 24 h under
load is less than 40 l2/D where l is the effective span in m;
and D, the overall depth of the section in mm, it is not
necessary for the recovery to be measured and the recovery
provisions of 17.6.3 shall not apply.
17.7 Members Other Than Flexural Members
Members other than flexural members should be preferably
investigated by analysis.
17.8 Non-destructive Tests
Non-destructive tests are used to obtain estimation of the properties
of concrete in the structure. The methods adopted include ultrasonic
pulse velocity (see IS 13311 (Part I)) and rebound hammer (IS 13311
(Part 2)), probe penetration, pullout and maturity. Non-destructive
tests provide alternatives to core tests for estimating the strength of
concrete in a structure or can supplement the date obtained from a
limited number of cores. These methods are based on measuring a
concrete property that the bears some relationship to strength. The
accuracy of these methods, in part, is determined by the degree of
correlation between strength and the physical quality measured by the
non-destructive tests.
Any of these methods may be adopted, in which case the acceptance
criteria shall be agreed upon prior to testing.

386
 ANNEXURE 16.11
(Refer Para 16.4)

EXTRACTS FROM CHAPTER 5 OF CPWD SPECIFICATION ON RCC

WORK

5.4.10 Standard of Acceptance – for Nominal Mix

5.4.10.1 Mandatory Lab. Test: For concrete sampled and tested as

prescribed in Appendix A of Chapter 5, the following requirement
shall apply.

5.4.10.2 Out of six sample cubes, three cubes shall be tested at 7 days and
remaining three cubes at 28 days.

5.4.10.3 7 days’ Tests

Sampling: The average of the strength of three specimen shall be

accepted as the compressive strength of the concrete provided the
variation in strength of individual specimen is not more than + 15%
average. Difference between the maximum and minimum strength
should not exceed 30% of average strength of three specimen. If
the difference between maximum and minimum strength exceeds
30% of the average strength, then 28 days test shall have to be
carried out.

Strength: If the actual average strength of sample accepted in para

‘sampling’ above is equal to or higher than specified strength upto
+ 15% then strength of the concrete shall be considered in order.

In case the actual average strength of sample accepted in the

above para is lower than the specified or higher by more than 15%
then 28 days’ test shall have to be carried out to determine the
compressive strength of concrete cubes.

5.4.10.4 28 days’ Test

(a) The average of the strength of three specimen be accepted as

the compressive strength of the concrete provided the strength

387
 of any individual cube shall neither be less than 70% nor
higher than 130% only for computation of strength.

(b) If the actual average strength of accepted sample exceeds

specified strength by more than 30% the Engineer-in-Charge,
if he so desires, may further investigate the matter. However,
if the strength of any individual cube exceeds more than 30%
of specified strength, it will be restricted to 130% only for
computation of strength.

(c) If the actual average strength of accepted sample is equal to

or higher than specified strength upto 30% then strength of the
concrete shall be considered in order and the concrete shall
be accepted at full rates.

(d) If the actual average strength of accepted sample is less than

specified strength but not less than 70% of the specified
strength, the concrete may be accepted at reduced rate at the
discretion of Engineer-in-Charge (see para 5.4.13.2).

(e) If the actual average strength of accepted sample is less than

70% of specified strength, the Engineer-in-Charge shall reject
the defective portion of work represented by sample and
nothing shall be paid for the rejected work. Remedial
measures necessary to retain the structure shall be taken at
the risk and cost of contractor. If, however the Engineer-in-
Charge so desires, he may order additional tests (See
Appendix B of Chapter 5) to be carried out to ascertain if the
structure can be retained. All the charges in connection with
these additional tests shall be borne by the contractor.

5.4.10.5 Acceptance Criteria of Field Test (Additional Test – Non

Mandatory)

(A) Preparation of Standard Test Cubes for calibration of Rebound

Hammer at site

(a) In the beginning the standard test cubes of the specified

mix shall be prepared by field units before undertaking any
concrete work in each project.

388
(b) At least 18 standard cubes necessary for formation of one
specimen of specified mix, shall be cast by site staff well in
advance. From these 18 cubes any 3 cubes may be
selected at random to be tested for crushing strength of 7
days. The crushing strength obtained should satisfy the
specified strength for the mix as per specification or
agreement. If the strength is satisfactory then the
remaining cube will form the standard samples for
calibration of rebound hammer. In case of failure, the site
staff should totally reject the samples and remove them
also and then make another set of samples by fresh
mixing or alternatively, out of the remaining 15 cubes, 3
cubes will be tested on 28 days. If the 28 days’ tests are
found satisfactory then remaining 12 cubes will form the
standard sample for calibration at 28 days’ strength
otherwise all samples shall be rejected and whole
procedure repeated to form a fresh specimen. All the
results shall be recorded in a register.

(c) No concreting will be allowed unless the standard

specimen cubes are obtained..

The criteria for acceptance and calibration of hammer will

be 28 days’ strength. The 7 days’ strength is only to
facilitate the work to start.

(d) No work (for the concrete cast between 8th and 28th day)
shall be allowed to be paid unless 28 days’ cube strength
is obtained. For the concrete cast between 8th and 28th
day, the decision to make the payment may be taken by
the Engineer-in-Charge on the basis of existing criteria.
Concrete work will be rejected if 28 days’ strength falls
short as per acceptance criteria. No further work will be
allowed till the acceptable standard cubes are obtained.

(e) Frequency, if will be once in each quarter or as per the

direction and discretion of Engineer-in-Charge. Whenever
the acceptance criteria is changed or concrete mix or type
of cement is changed or Engineer-in-Charge feels it
necessary for recorded reasons with the approval of the

389
 authority according to technical sanction, fresh specimen
shall be prepared.

(B) Calibration of Hammer

(a) Simultaneously, same three cubes to be tested on 28 days

as referred in para A (b) above shall be used to correlate
the compressive strength of their concrete with rebound
number as per procedure described in para 5.2 of the IS:
13311 (Part 2) “Indian Standard for non-destructive testing
of concrete Method of test by rebound hammer which is
given below in para B (b). The average of values of the
rebound number (minimum readings) obtained in respect
of same three cubes passing on 28 days’ work test shall
form the datum reference for remaining cubes for the
strength of cubes.

(b) The concrete cubes specimens are held in a compression

testing machine under a fixed load, measurements of
rebound hammer taken and then compressive strength
determined as per IS: 516. The fixed load required is of
the order of 7 N/mm2 when the impact energy of the
hammer is about 2.2 NM.

If the specimen are wet cured, they should be removed

from wet storage & kept in the laboratory atmosphere for
about 24 hours before testing.

Only the vertical faces of the cubes as cast should be

tested for rebound number. At least nine readings should
be taken on each of the three vertical faces accessible in
the compression testing machine when using rebound
hammers. The points of impact in the specimen must not
be nearer than 20 mm from the edge & should not be less
than 20 mm from each other. The same points must not
be impacted more than once.

(c) The rebound number of hammer will be determined on

each of the remaining (18-3-3=12) cubes. Whenever the
rebound number of hammer of any individual cube varies
by more than +25% form the datum readings referred to in

390
 para B (a) above, that cube will be excluded and will not
be considered for standard specimen cubes for calibration.
It must be ensured that at least 8 cubes out of 12 that is
66.67% are within the permissible range of variation of
rebound number i.e. + 25% or otherwise whole procedure
shall have to be repeated and fresh specimen prepared.

These 8 cubes will form one standard sample in the

beginning before commencement of work and shall be
kept carefully for the visiting officers who will calibrate
their hammers on these cubes.

(d) This calibration will be done by field staff with their

hammer and then chart of calibration giving the details of
the average readings, date & month of casting, mix of the
concrete etc., shall be prepared and signed by Engineer-
in-Charge and will be duly preserved for future reference
as and when required.

(C) Preservation of Cubes at site

Standard sample cubes cast shall be carefully preserved at

site under the safe custody of AE or his representative for
making them available together with the charts, to the officers
of QCTA/CTE or any other senior departmental officer, during
their inspection of the work. They will calibrate their hammer
on these cubes if required.

(D) Testing at Site

(D-1) Testing Equipments

(D-2) Testing will be done generally by non-destructive

methods like rebound hammers etc. Each field
Division/Sub Division/Unit will purchase rebound
hammers and keep them in working order at work site.
The testing will be done only by hammers which are
duly calibrated.

(D-3) The relative strength of actual field work will be tested

with reference to strength of these standard cubes and
calibration charts of a hammer for determining the
rebound number on the field work. The hammer will be

391
 used as per manufacturer’s guidelines at various
locations chosen at random. The number of
location/reading on each wall, beam or column etc.,
shall not be less than 12. All the readings should be
within the + 25% range of values prescribed in
calibration chart normally. However, reading indicating
good strength will be when it is at per with calibrated
value or between 100% & 125% and very good if more
than 125% any value between 100% & 75% of
calibrated value shall be considered satisfactory.
Values from 75% to 50% shall be considered for
payment at rates reduced on prorate basis. The
concrete indicating rebound number less than 50% of
calibrated value shall be rejected and not paid for.

(E) Acceptance of Field Tests and Strength

If the relative strength of actual field work is found satisfactory

considering the calibration charts with reference to the
standard cube test kept at site, the representative work will be
considered satisfactory. If the work is considered below
satisfactory, the same will be dealt as stated in para D-3
above.

(F) 7 days’ Strength in Rare Cases only

Normally cube crushing strength on 28 days’ test shall form the

basis of acceptance. However in rare cases of time bound
projects/urgent repairs 7 days’ cube test strength criteria may
be adopted on similar lines using 7 days’ standard test cubes
and calibration graphs/curves/charts for 7 days’ in lieu of 28
days’ and testing work done at 7 days’.

(G) Precautions

(G-1) The testing shall be done generally as per guidelines of

manufacture of the apparatus and strictly in accordance
with the procedure laid down in clause 6 of IS: 13311
(Part 2) . Indian Standard for Non-Destructive Testing
of Concrete – Method of Test by Rebound Hammer.

(G-2) The rebound hammers are influenced by number of

factor like type of cement aggregate, surface

392
conditions, moisture content, age of concrete & extent
of calibration of concrete etc., hence care shall be
taken to compare the cement, aggregate etc., and
tested under the similar surface conditions having more
or less same moisture content and aged. However
effect of age can be ignored for concrete between 3
days & 3 months old

393
 ANNEXURE 19.1
(Refer Para 19.2.1)
Contractor’s Notice for Appointment of Arbitrator
To
Appointing Authority (SOP Item 9.2)
RITES.
Dear Sir,
In terms of clause 25 of the agreement, particulars of which are given below, I / We
hereby give notice to you to appoint an arbitrator for settlement of disputes
mentioned below:
1. Name of applicant
2. Whether applicant is Individual / Prop. Firm / Partnership Firm / Ltd. co.
3. Full address of the applicant
4. Name of the work and contract number in which arbitration sought
5. Name of the RITES Office which entered into contract
6. Contracted amount in the work
7. Date of contract
8. Date of start of work
9. Stipulated date of completion of work
10. Actual date of completion of work (if completed)
11. Total number of claims made
12. Total amount claimed
13. Date of intimation of final bill (if work is completed)
14. Date of payment of final bill (if work is completed)
15. Amount of final bill (if work is completed)
16. Date of request made to Engineer in charge for decision
17. Date of receipt of Engineer in charge’s decision
18. Date of appeal to Appellate Authority
19. Date of receipt of Appellate Authority’s decision
Specimen signature of the applicant
(only the person / authority who
signed the contract should sign)
I/ We certify that the information given above is true to the best of my / our
knowledge. I / We enclose following documents.
1. Statement of claims with amount claimed against each
claim.
2.
3.
4.
Yours faithfully,
(Signature)
Copy in duplicate to : 1. —— Engineer-in-Charge, RITES

394
 ANNEXURE 19.2
(Refer Para 19.5.1)
LETTER OF APPOINTMENT OF ARBITRATOR
Dated the ______ 20___
Subject: In the matter of arbitration between ______ and RITES LIMITED,
regarding the
work ____ Agreement No. ___________ Date _______
Whereas _____ has / have written to me vide his / their letter no. ____ dated
_____ that certain disputes have arisen between the above noted parties in
respect of the above noted work. I ......................... ED/Dir, RITES by powers
conferred on me under Clause 25 of the said Agreement hereby appoint Shri
_____ as Sole Arbitrator to decide and make his award regarding the claims /
disputes by the Contractor as well as counter claims of RITES, if any, arising
out of the same contract subject to the admissibility of the claims and counter
claims under clause 25 of the aforesaid agreement.
The arbitrator shall give his award in respect of each claim and also give
reasons for the award in respect of each claim / dispute.
ED/ DIRECTOR
(As per SOP Item 9.2)
To
1. Shri
Arbitrator
2. M/s.________ (Contractor), with reference to his / their letter No. _____
dated ____
(NOT IN ORIGINAL)
Copy to:
1. Shri ____________, (Engineer in Charge) with reference to letter no.
_____ dated _____ Arrangements may please be made to defend the case
effectively. Legal assistance of the Counsel may be obtained where
necessary.
Engineer-in-charge should ensure that the bills of the contractors are finalized
immediately, if not already done.
ED/DIRECTOR
Copy to: ______ (Employer) for information.

395
 ANNEXURE 19.3
(Refer Para 19.5.6)

LETTER OF APPOINTMENT OF ALTERNATE ARBITRATOR

No.________________ Dated, the ________

20___
Subject: In the matter of Arbitration between:
________________ Claimant
Vs
_________________ Respondent
Arbitration Case No. ______ of __________
Whereas Shri ______ was appointed sole arbitrator by letter No. ______
dated _____ in the above matter and whereas the aforesaid Arbitrator has
been transferred / has vacated his office on _____ I ______ (ED/Director)
RITES, in exercise of my powers under Clause 25 of the Contract appoint
Shri ____ as the sole arbitrator to determine the claims / disputes as well as
counter claims, if any, referred to the aforesaid arbitrator in accordance with
and subject to their admisibility under said clause 25. Shri ___ may start the
proceedings from the stage at which the aforesaid arbitrator left off.
2. The arbitrator shall give his award in respect of each claim
and also give reasons for the award in respect of each claim
/ dispute.
ED/Director
(As per SOP Item 9.2)
Copy to:
1. Shri _______ (Arbitrator being relieved) with the request to transfer
the records of the case to Shri ___ at the earliest.
2. Shri ______ (Relieving Arbitrator) with the request to take over the
records of the case from Shri ____ at the earliest.
Copy to M/s. _____ (Contractor) for information
Copy to Shri _______ (Engineer-in-Charge) for information
Copy to ___________ (Employer) for information

396
 ANNEXURE 19.4
(Refer Para 19.11.5)

LETTER TO CONTRACTOR ON ACCEPTANCE OF

ARBITRATION AWARD

To
___________
___________ (CONTRACTOR)
Sub: Award dated ____ made by Shri ____ Arbitrator in regard to the
disputes arising out of agreement No. _____ and referred to
arbitration in arbitration case No._____
Dear Sirs,
With reference to the award mentioned above, I am to say that RITES has
decided to accept the said award provided you accept the same as final and
binding. Please intimate latest by---------that you agree to accept payment of
the sum awarded in full and final settlement of all your claims forming the
subject matter of the reference to arbitration in the above case. Your
acceptance of the offer may be communicated on a Stamp Paper of Value ---
-------.
Yours faithfully,
Engineer-in-Charge
For & on behalf of RITES

N.O.O
Copy to ________ (Employer) for information.

397
 ANNEXURE 19.5
(Refer Para 19.19)
NORMS FOR DISPOSAL OF OLD RECORDS
NOTE
1. Where the proposed “Period of preservation of Records” is indicated
as 10 years or less and relates to any Project awarded to RITES, the
records will have to be retained for a further period. If there is any
Arbitration or Court Case pending, till the proceedings are completed
in all respects.
2. Where the proposed “Period of preservation of Record” is indicated as
“Permanent”, the hard copies of CDs or both, as the case may be,
should be numbered serially for each category of records and for each
Financial year and duly indexed with brief details of contents so that
they can be retrieved easily when required in future.
3. Where “Permanent Records” by way of two hard copies to be retained
are indicated, one copy is to be retained in SBU Office and one copy
is to be sent to Central Library in RITES Head Quarters, Gurgaon.
4. In case of contracts between RITES and a Central/State Government
Department wherever the period of preservation of record has been
shown as less than 10 years the records should be maintained for a
period of 10 years after Financial closure of the Project or till the
proceedings on any Arbitration or Court case are completed in all
respects, whichever is later.

Sl. CATEGORY OF RECORD PERIOD OF REMARKS

No. PRESERVATION OF REFER
RECORD NOTE NO.
HARD SOFT
COPY COPY (CD)
1 2 3a 3b 4
(A) COMMON FILES TO BE MAINTAINED BY SBU OFFICE
1. Policy Files on “Technical Permanent - 2
Matters”
2. Policy File on “Establishment Permanent - 2
Matters”
3. Policy File on “Accounts Permanent - 2
Matters”

398
4. Business Development File Till - -
on Projects for which no offer beginning
made by RITES of next
Financial
Year
(B) DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY TECHNICAL
WING FOR EACH PROJECT FOR WHICH OFFER IS MADE
1. Business Development File
(a) If RITES offer not Till - -
accepted beginning
of next
Financial
Year
(b) If RITES offer is Three 1
accepted and has resulted in years after
execution of Agreement with Financial - 4
Client. closure of
the Project
2. Input Estimate relating to Three - 1
Agreement between RITES years after
and the Financial 4
Client/Correspondence & closure of
copy of the Estimate the Project
3. Consultancy Agreement Permanent Permanent 2
between RITES and the
Client – LOI as well as copy
of Agreement
4. Sub-Consultancy Agreement Permanent Permanent 2
between RITES and Sub
Consultant
5. Correspondence file on Three - 1
Estimates years after
4
Financial
closure of
the Project
6. Detailed Estimate for Works Three - 1

399
 years after
Financial 4
closure of
the Project
7. Drawings – Correspondence Three - 1
File years after 4
Financial
closure of
the Project
8. Correspondence on Sub- Three - 1
consultancy Agreement years after
between RITES and the Financial 4
Subconsultant. closure of
the Project
9. Works Contract Agreement Three - 1
between RITES and the years after
Contractor Financial 2
closure of 4
the Project
10. Correspondence on Works Three - 1
Contract Agreement between years after
RITES and the Contractor / Financial 4
Site Office closure of
the Project
11. Consultancy Agreement – Three - 1
Correspondence with the years after
Client on Technical matters Financial 4
closure of
the Project
12. Correspondence with RITES Three - 1
Head Quarters on all matters years after
relating to the Project Financial 4
closure of
the Project
(C ) DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY ACCOUNTS
WING FOR EACH PROJECT FOR WHICH CONSULTANCY
AGREEMENT HAS BEEN SIGNED WITH THE CLIENT

400
1. Correspondence with the Three - 1
Client on Financial Matters years after
Financial 4
closure of
the Project
2. Correspondence with the Three - 1
Contractor on Financial years after
Matters Financial 4
closure of
the Project
3. Correspondence with the Three - 1
Subconsultant on Financial years after
4
Matters Financial
closure of
the Project
(D) DOCUMENTS TO BE MAINTAINED BY THE SITE OFFICE FOR THE
WORKS FOR WHICH WORKS CONTRACT HAS BEEN EXECUTED
1. Correspondence with SBU Three - 1
Office on all matters. years after
Financial 4
closure of
the Project
2. Correspondence with the Three - 1
Contractor on all matters years after
Financial 4
closure of
the Project
3. Correspondence with the Three - 1
Client on all matters years after
Financial 4
closure of
the Project
(E) MISCELLANEOUS RECORDS / DOCUMENTS
1. Reports / Drawings relating to
each Project
(i) Site Survey Reports-Field Three -- 1

401
 Survey / Soil Investigation years after
Survey / Hydrographic Survey Financial 2
etc., closure of 4
the Project
(ii) Feasibility Study Report Permanent Permanent 2, 3
(two
copies)
(iii) Inception Report Permanent Permanent 2, 3
(two
copies)
(iv) Final Report / DPR Permanent Permanent 2, 3
(two
copies)
(v) As Built Completion Permanent Permanent 2
Drawings
2. Site Records – Progress Three - 1
Reports / Labour and years after
Machinery Reports / Level Financial 4
Books / Site Registers as per closure of
SITES Guidelines etc., the Project
3. Measurement Books and Ten years - 1
Detailed Design Calculation after
for Structures Financial
closure of
the Project
4. Statutory approvals from Three - 1
Local Bodies / Government years after
4
Departments etc. Financial
closure of
the Project
5. Land Possession / Taking Three - 1
over Certificate years after
Financial 4
closure of
the Project
6 Operation and Maintenance Permanent Permanent 2
Manuals

402
7. Arbitration / Court Till final - -
proceedings files settlement
of the
Arbitration/
Court
Proceeding
s
8. Bid Documents of Three - 1
unsuccessful tenderers years after
Financial 4
closure of
the Project
9. Photographs of site Permanent Permanent 2
construction activities
10. Certificates from the Client Permanent Permanent 2

403
 ANNEXURE 20.1
(Refer Para 20.2)

FORMAT FOR SITE ORDER BOOK

Name of work:
Date of Commencement:
Scheduled Date of Completion:

Sl. Instructions on action to be taken by the Action taken on instruction for

No. contractor on Non conformities observed removal of non-conformities
during work
Date RITES Ltd. Contractor’s Contractor’s RITES Ltd.
Representative’s Representative’s Representative’s Representative’s
Remarks with acknowledgement Remarks with acceptance with
Signature & with Signature & Signature, Signature,
Designation Name Name & Date Designation &
Date

404
 ANNEXURE 20.2
(Refer Para 20.3)

FORMAT FOR INSPECTION RECORD

Date of Name and Reference of Date on Remarks

Inspection designation Inspection which
of Inspecting note remarks
Officer taken over
to Site
Order Book/
conveyed to
contractor
in writing

405
 ANNEXURE 20.2 Contd.

“CHECK FEATURES” FOR GUIDANCE OF INSPECTING OFFICIALS

Type of work Check Features

1. Concrete Plain and a) Strength of concrete cube test

reinforced
b) Quality of exposed surface (Honey
combing etc.)

c) Lines, Levels and verticality

2. Reinforcement a) Bending, Binding and cage size w.r.t.

drawings

b) Cover to reinforcement

c) Staggering of laps, adequacy of

length of laps and anchorage

3. Centering and Shuttering a) Gap and cracks, evenness of

surfaces of shuttering materials and
form work.

b) Centering supports size. Spacing,

side supports and cross bracing
(Structural aspects of arrangements)

c) Evenness and camber of surface to

come in contact of concrete

4. Masonry work a) Filling of mortar in Joints and mortar

strength
b) Lines, levels of courses and verticality
c) Staggering of Joints, Bonding in
courses and at junctions (Bondstones
for stone masonry)

5. Wood Joinery Work a) Quality of timber, absence of sap and

knots

406
 b) Finishing of edges and surface,
proper joinery work, process of
warping

c) Fixing, gaps, cracks in panels &

members

6. Flush Door Shutters a) Finish of edges and surface, absence

of warpage
b) Fixing, Convenience of Operation of
openable shutters Tests

7. Windows/Doors a) Ease / convenience of operations of

openable shutters

b) Proper welding/grinding

c) Soundness of floor

8. Flooring a) Surface finish and joints

b) Slope of floor and surface finish

c) Soundness of floor.

9. Roofing (Point Roofs) a) Soundness and geometray of sheets

b) Adequacy and uniformity of slopes

and
overlaps of sheets and troughs.

(c) Fixing of sheets, j/books, attach bolts.

10. Roof Treatment a) Slopes and drainage

b) Proper junction with parapet and with

rain water pipes (KHURRAH)

c) Evenness and soundness of finished

surface and grouting of points

407
11. Finishing Plasters and wall a) Soundness of the finishing layers,
tilling etc., flashing
b) Surface evenness, outward slopes of
chajjas and inward slopes of top of
parapet, rounded junction with walls
c) Lines, levels in general.

12. Pipes work for Damage and a) Jointing, verticality, concentricity and
Sewerage water tightness
b) Gradient and slopes
c) Water seal and Gap between top of
trap and top of floor (Jali)

13. Pressure Pipes Work a) Jointing and water fightness

b) Proper alignment and fixing of
exposed pipes

14. Door, Window Fittings a) Dimensions and weights

b) Finish of fittings
c) Use of adequate no. and proper type
screws

15. CP/Brass Fittings a) Plunger, washer, seating of washer

b) Convenient working
c) Weight and finish

16 Sanitary Wares a) ISI marking and CPWD Specification

b) General shape, size and absence of
visual defect
c) Fixing, Gaps, water tightness and
jointing of WC pans with the trap
17. Pipes and Fittings a) Dimension and weights
b) Coating internal and external
c) Fixing

408
 FORMAT FOR HINDRANCE REGISTER

SL. No. Nature of Item of Date of start Date of Period of Overlapping Net Weightage Net Signature Signature of Sign. of Remarks of
Hindrance works which of Hindrance removal of Hindrance period if any Hindrance of this effective of Site Contractor or Inspecting Engineer-in-
could not be Hindrance in days Hindrance days of Engineer his Officer Charge
executed on Hindrance represenative (Controlling
account of Officer)
this
Hindrance

409
1 2 3 4 5 6 7 8 9 10 11 12 13 14
(Refer Para 20.4)
ANNEXURE 20.3
 ANNEXURE 20.4
(Refer Para 20.5)
FORMAT FOR DAILY PROGRESS RECORD
1. Date
2. Whether Conditions
a) Temperature Maximum ________ Minimum_______
b) Rainfall
c) General Weather (Tick relevant item)
(i) Sunny
(ii) Cloudy
(iii) Windy
3. Details of Plant & Equipment of Contractor available at site
4. Details of Supervisors / Labour of Contractor available at site
5. Details of Work done

Sl. No. Item Executed Quantity Location

6. Any Special Difficulties / happening

For Contractor For RITES LTD
Signature: Signature:
Date: Date:
Name of Contractor: Name:

410
 FORMAT FOR CEMENT REGISTER
Type of Cement _______
PART “A”

Date Opening Quantity Received Quantity Consumed Balance Item of Signature

Balance at the Work in
(Bags) Source / Test No. Bags Cumulative Issued Returned Net Consump- Cumulative end of which Contractor RITES
Batch No. / Certificates received Quantity (No. (Bags) (Bags) tion (Bags) Quantity the day consumed

411
Challan Reference of Bags) (No. of (No.of during the
No. received Bags) Bags) day
upto date Consumed
upto date
(Refer Para 20.6)
ANNEXURE 20.5
 PART “B”

Theoretical and Actual Consumption Statement

NOTE: Calculations on "Theoretical Cement Quantity required" have to be kept in record

Sl. No. Period Item of Quantity Theoretical Actual Difference Remarks, if

work Executed Cement Qty. Cement Qty. between the any on
(cum) Required Consumed theoretical reasons for
(No. of Bags) (No. of and actual the
Bags) consumption Difference
(No. of Bags)
From To

412
For Contractor For RITES LTD

Signature: : Signature
Date: Date:
Name: Name:
 FORMAT FOR STEEL REINFORCEMENT REGISTER

Type of Steel and Diameter _________

PART “A”

Date Opening Quantity Received Quantity Consumed Balance Item of Signature

Balance at the end Work in
(MT) of the day which
(MT) consumed

413
Source / Test MT Cumulative Issued Returned Net Cumulative during the Contractor RITES
Challan No. Certificates received Quantity (MT) (MT) Consump- Quantity day
Reference (MT) tion (MT) (MT)
received Consumed
upto date upto date
(Refer Para 20.7)
ANNEXURE 20.6
 PART “B”
Theoretical and Actual Consumption Statement
NOTE: Calculations on "Theoretical Quantity required" have to be kept in record

Sl. No. Period Item of Theoretical Actual Difference Remarks, if

work Quantity Quantity between the any on reasons
Required as Consumed theoretical and for the
per Drawing (MT) actual Difference
(MT) consumption
(MT)

414
From To

For Contractor For RITES LTD

Signature: : Signature
Date: Date:
Name: Name:
 ANNEXURE 20.7
(Refer Para 20.8)

FORMAT FOR “NON-CONFORMING ITEMS” RECORD

1. Item No. (as per Bill of Quantities)

2. Brief Details of the BOQ Item
3. Name & Designation of Official of RITES LTD., deciding on the non-
conformation (Defective Workmanship)
Name Designation
4. Nature of Non Conformation
5. Comments YES NO N/A

5.1 Whether the item is structurally sound

5.2 Whether the item can be accepted at Reduced rates
5.3 Whether the item requires demolition and re-execution

6. Remarks indicating the action taken by the contractor and whether

accepted by RITES LTD., at full or reduced rates.

7. Details of Tests carried out before acceptance by RITES LTD.

8. If accepted at Reduced Rates by RITES, basis for reduction proposed
in rate and Name & Designation of RITES’ Authority deciding on the
same.
For Contractor For RITES LTD

Signature: Signature:
Date: Date:
Name of Contractor Name:

415
 ANNEXURE 20.8
(Refer Para 20.9)

FORMAT FOR QUALITY AUDIT RECORD

1. Date of Quality Audit

2. Venue of Inspection
3. Department of Auditing Team
4. Head of Audit Party
5. Other members of the Audit Team
Name Designation
(i)
(ii)
(iii)
6. Reference of Audit Report
7. No. of Paras
8. 1st Reply to Audit Report
Reference of Reply
Rejoinder to reply
No. of paras dropped
Paras Outstanding

For Contractor For RITES LTD

Signature: Signature:
Date: Date:
Name of Contractor: Name:

416
2nd Reply to Audit Report

Reference of Reply
Rejoinder to reply
No. of paras dropped
Paras Outstanding

For Contractor For RITES LTD

Signature: Signature:
Date: Date:
Name of Contractor: Name:

417
 ANNEXURE 20.9
(Refer Para 20.10)

FORMAT FOR SITE COORDINATION MEETINGS RECORD

1. Coordination Meeting No.
2. Venue of Meeting
3. Date and Time of Meeting
4. Name of Chairman and Designation
5. Names of Other Participants

Sl. Name of Designation Organization Telephone Signature

No. Participant No.

6. Designation of the person who is to issue Minutes of Meeting

7. Reference of Letter under which Minutes of Meeting issued
8. Reference of Action taken Report by each of the Participants

Sl. Action Taken Report Report kept in File Signature, name,

No. received from No. Date & Designation
of RITES Site
Engineer

418
 ANNEXURE 20.10
(Refer Para 20.11)

FORMAT FOR GUARANTEE BONDS RECORD

1. Purpose for which Guarantee Bond submitted by the Contractor

2. Details of Bank issuing Bond & amount covered by the Bond
3. Date of issue of Bond
4. Reference on confirmation by Bank on authenticity of Bond
5. Reference of Acceptance of Bond by RITES LTD. after check
6. Period of Bond including Extensions

Note: The Site Engineer should advise the office of Engineer-in-Charge as

soon as
circumstances arise requiring the validity period of Bond to be got
extended.

Sl. No. Details of Period Date upto Signature, Name,

covered by Bond which valid Designation & Date of
RITES Site Engineer
1 Initial Period

2 First Extension

3 Second Extension
etc.

419
 ANNEXURE 20.11
(Refer Para 20.12)

FORMAT FOR INSURANCE POLICIES RECORD

1. Purpose for which Insurance Policy taken and submitted by the

Contractor
2. Details of Insurance Company issuing Insurance Policy & Amount
covered by thePolicy
3. Date of issue of Insurance Policy
4. Reference of Acceptance of Policy by RITES LTD. after check
5. Period covered by Insurance Policy including Extensions

Note: The Site Engineer should advise the office of Engineer-in-Charge as

soon as circumstances arise requiring the validity period of Insurance Policy
to be got extended.

Sl. No. Details of Period Date upto Signature, Name,

covered by which valid Designation & Date of
Insurance Policy RITES Site Engineer
1 Initial Period

2 First Extension

3 Second Extension
etc.

420
 FORMAT FOR DRAWINGS RECORD

Sl.No. Details of Drawing Status of Drawing Receipt of Drawings Issue of Drawings Signature of Signature of
(Advance/Good Contractor's RITES LTD.
for Construction) representative Site Engineer

Drawing No. Title of Date of No. of Copies Issue Date No. of Copies
and its Drawing Receipt received issued to the

421
Revision Contractor
ANNEXURE 20.12
 SPECIMEN FORMAT
DETAILS OF MANDATORY TESTS AND NON MANDATORY TESTS CARRIED OUT - SPECIMEN FORMAT FOR CEMENT

COMMODITY: CEMENT DETAILS OF TESTS: IN CASE OF MANDATORY TESTS - CHAPTER 3 OF CPWD

SPECIFICATIONS / NON MANDTORY TEST

Sl. No. ITEM FREQUEN BILL NO. QUANTITY QUANTITY No. OF TESTS TESTS CARRIED OUT REMARKS
TESTED CY LAID USED IN USED IN TO BE DONE
DOWN WORKS WORKS AS PER
DONE UPTO DATE FREQUENCY
DURING FOR UPTO
BILL DATE QTY.

DATE OF RESULTS RESULTS

TEST & SATISFAC FILED IN
LABORAT TORY OR FILE
ORY NOT NO./FOLIO
WHERE NO.

422
TESTED
(i) Fineness Every 50 RAB - 1
MT or Part RAB - 2
thereof RAB - 3
FINAL
(ii) Soundness --do -- RAB - 1
RAB - 2
RAB - 3
FINAL
(iii) Setting Time --do -- RAB - 1
(Initial & RAB - 2
Final) RAB - 3
FINAL
(iv) Compressive --do -- RAB - 1
Strength RAB - 2
RAB - 3
FINAL
(v) Consistency --do -- RAB - 1
of Standard RAB - 2
Cement RAB - 3
ANNEXURE 20.13
(Refer Para 20.14)

Paste FINAL
 PROFORMA FOR PAINTS / CHEMICAL REGISTER
NAME OF PAINT / CHEMICAL
Particulars of Receipt & Issue

Date of Source of Batch No. Date of Date of Qty. Progressive Date of Qty. issue Items of Qty. Returned
Receipt Receipt with Manufacture expiry received Total of issue for work work for at the end of
details if any Quantity which day's work
received issued
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)

423
Net Qty. Issued Progressive Total of Upto date Quantity in Contrator's Initial Engineer's Periodical Check
Quantity issued for stock Initial
works By ___ By ___
(12) (13) (14) (15) (16) (17) (18)
ANNEXURE 20.14
(Refer Para 20.15)
 ANNEXURE 21.1
(Refer Para 21.1.2)

REGISTER OF MEASUREMENT BOOKS

SBU
PARTICULARS

Note: MB should be preserved for 10 years after Financial closure of the

Project

Serial No. Date Name & Date Name & Date Date Remarks
of the of Designation of Designation of of Return
Measurement Receipt of the person issue of the person Transfer of
Book to whom to whom Completed
issued transferred Book

424
 ANNEXURE 21.2
(Refer Para 21.2, 21.2A,
21.3, 21.3.3A & 21.3.7A)

GUIDELINES ON RECORDING OF MEASUREMENTS

AND TEST CHECKING

In supersession of the provisions relating to “Recording of Measurements and

Test Checking” contained in “Guidelines for Managers, Assistant Managers,
Engineers / Technical Assistants for Civil Engineering Projects” issued under
RITES:P:10-01:ADMN dated 01.01.1997, following comprehensive
instructions are issued for strict implementation by the officials concerned.
1. Depending on the Financial Value and Complexity of work, the Field
unit will be manned by one or more Site Engineers who may be in
grades of Technical Assistant, Senior Technical Assistant, Engineer,
Assistant Manager, Manager, Dy. GM etc. Where there are more
than one Site Engineer, the senior most will be designated as
“Controlling Site Engineer”.
2. In the SBU Office, one officer will be nominated as the “Project
Coordinator” who will be responsible for coordination at the SBU
Office level of all activities relating to the Project or Work.
3. Where there is shortage of regular staff of RITES, the Field Unit may
be manned by one or more “Contract Engineers” deputed specifically
for part or full duration of the work. Contract Engineers will be
deployed to assist “Controlling Site Engineers”. Contract Engineers
will not be put in independent charge at any site.
4. a) Normally the initial recording of measurements will be done by the
Site Engineers who are regular staff of RITES and to whom the
Measurement Books have been issued. Measurement Books should
not be issued in the names of Contract Engineers or Contract
Technical Assistants. In special circumstances, the Engineer-in-
Charge who has signed the Works Contract on behalf of RITES Ltd.,
can authorize in writing by name any Contract Engineer or Contract
Technical Assistant to do the initial recording of measurements. In
such cases, the Measurement Books should be issued in the name of
the Controlling Site Engineers.
b) In all cases of Earthwork, the Measurements in the MB should be
supported by details to be recorded in the Level Books.

425
5. Test checking of measurements is to be carried out by an official
senior to the Site Engineer who has recorded the initial
measurements, either in the same Grade or in a higher grade. If the
Field Unit consists of only one Site Engineer, the “Project Coordinator”
in the SBU office will either himself do the test checking or nominate
in writing by name an official deputed to do the Test Checking. If the
Field Unit consists of more than one Site Engineer, the Controlling
Site Engineer will himself carryout the Test Checks. Alternatively he
can nominate in writing by name another Site Engineer to do the Test
Checking, subject to the Condition that the nominated Site Engineer is
senior in same grade or in a higher grade with respect to the Site
Engineer who has recorded the initial measurements.
6. The extent of Test Checking to be carried out will be as under:

a) Hidden Measurements
Atleast 20% of each item of works.
b) Earthwork
Initial Ground Level, Final Formation Level, Quantity and Lead
diagram for all types of Earthwork in Embankment and cutting.
Atleast 20% of items of work.
c) Soil / Rock Classification for Earthworks
Atleast 20% of items of work.

d) Ballast Supply
Atleast 50% of items of work.
e) Other Items
Atleast 10% of the Monetary Value of measurements of work
done.
f) Electrical / Mechanical Works -
Atleast 20% of items of work.
g) General
In all cases where a Contract Engineer or a Contract Technical
Assistant has been authorised to take initial measurements, the
extent of Test Checking will have to be enhanced by 50% for all
items mentioned at (a) to (f) above. For example the extent of
Test Checking will be 30% instead of 20% in case of item 6 (b)
i.e. Earthwork”.

426
 ANNEXURE 21.3
(Refer Para 21.4)

PROFORMA FOR WRITE OFF OF LOST MBs

1. Serial number of the MB

2. To whom issued
3. The date on which the M.B. was lost
4. Details of FIR lodged with the police
5. From whose custody it was lost?
6. Detailed circumstances leading to its loss
7. What efforts were made to trace the M.B.?
8. By whom the last measurements were recorded?
9. Whether the measurements have been checked upto the required %
age by the Superior Officer as required under the rules? If not, why?
10. Is any register being maintained to watch the movement of the M.B.?
11. Whether the M.B. contained the details of any work for which payment
has not been made or all the works have been finalized?
12. Whether any accounts/audit/igilance objection or contractor’s dispute
relating to the M.B. is pending, and if so, nature thereof, and how it is
proposed to settle up?
13. Whether work is susceptible of measurement again? It not, what is the
basis on which the Controlling Site Engineer proposes to make final
payment for outstanding bills?
14. Whether the Project Coordinator is satisfied that by writing of fresh
measurements on the basis of other subsidiary records, if any, the
Employer will not be put to any loss, and there will be no dispute from
any quarter? If not, what are the steps suggested to safeguard
against any such shortcoming?

427
15. Details of disciplinary action taken against the person (s) responsible
for the loss.
16. Details of remedial measures taken to avoid recurrence of such cases
17. Any other remarks
--------
Engineer-in-Charge
(If Subordinate to SBU Head)
Remarks if any, of SBU Head
--------

SBU Head

428
 ANNEXURE 21.4
(Refer Para 21.5)

FORMAT FOR MEASUREMENT BOOK

PAGE CONTENTS REMARKS

Nos.
(i) Certificate on the Number of Leaves in
the M.B. and major deficiencies observed --
on Yearly Check and check on final return
done by the Accounts Officer of SBU
Office
(ii) Certificate by Accounts officer of SBU 2 Pages with same
office on checks carried out proforma
(iii)
(iv) Details of initial issue and subsequent --
Transfers
(v) Details of Measurements recorded by --
Holders
(vi) Review Notes by Superior Inspecting 2 Pages with same
Officers proforma
(vii)
(viii) Review by Accounts Officer of SBU Office --
and SBU Head
(ix to xi) Index 3 Pages with same
proforma
(xii) Entries to be recorded in Manuscript at --
the beginning of each set of
measurements relating to each work
1 to 100 Format for Recording Measurements 100 Pages with
same proforma

429
CERTIFIED that the Measurement Book contains 100 leaves.
Signature of Officer receiving the Measurement Book

YEARLY CHECK AND CHECK ON FINAL RETURN OF MB BY SBU

ACCTS. OFFICER

- MAJOR DEFICIENCES OBSERVED

Date of Check Particulars of Dated Initials of Accounts

major Deficiencies Officer

(Page No. i of MB)

430
 CERTIFICATE BY ACCOUNTS OFFICER OF SBU OFFICE

CHECK LIST OF ITEMS COVERED BY

Yearly check & Check on Final Return of MB

CERTIFIED that this Measurement Book No. ___________ has been Y N

checked and it is found that E O
S
a) No page is torn out and missing and blank pages have not been left
uncancelled

b) Corrections are properly made and initialed by responsible person

c) Entries have been recorded only in ink and there are no pencil entries
d) The number and date of each voucher in which the quantities are
entered for payment are noted
e) The entries have been crossed off on preparation of Bill

f) In the case of cancelled measurements the reason for cancellation has

been given and cancellation attested by the person who made the
measurements and by the Controlling Site Engineer
g) The index is complete
h) Each set of measurements is signed by the Officer by whom they were
actually made
I) Test checks have been made as stipulated
J) Each set of measurements bears, in addition to the signature of the
Officer or the subordinate who made the measurements, the signature of
the official if any who checked the calculations and the signature of the
Controlling Site Engineer who passed the measurements and signed the
bill

Certified also that necessary entries have been carried out in Page (i) of MB.

Date_____________ Signature _____________________

ACCTS. OFFICER IN SBU OFFICE

________________OFFICE

(Page No. ii & iii of MB)

431
 MEASUREMENT BOOK

Details of Initial issue and subsequent transfers.

_________ _________
NAME OF SBU OFFICE NAME OF FIELD OFFICE
NAME, DESIGNATION AND SIGNATURE NAME, DESIGNATION AND
OF ISSUING OFFICIAL SIGNATURE
OF RECEIVING OFFICIAL
M.B. No._______

Issued to ____________(Site Engineer) on ______________ by *_________

*Dated initials of the official in charge in Field Office
Transferred by ____________ (Transferring Site Engineer)
To _____________________ (Transferee Site Engineer)

Signature with date Transferring Officer ( .......................

Transferee Officer ( .......................
Controlling Site Engineer____

Transferred by _________ (Transferring Site Engineer) ______________ to

______________ (Transferee Site Engineer)

Signature with date Transferring Officer ( .......................

Transferee Officer ( .......................
Controlling Site Engineer ______

Transferred by _________ (Transferring Site Engineer) _________ to

______________ (Transferee Site Engineer)

Signature with date Transferring Officer ( .......................

Transferee Officer ( .......................
Controlling Site Engineer____

(Page No. iv of MB)

432
 MEASUREMENT BOOK
DETAILS OF MEASUREMENTS RECORDED BY HOLDERS

____ ____
NAME OF SBU OFFICE NAME OF FIELD
OFFICE

M.B. No.______

Sl. NAME OF DESIGNATION DETAILS OF DETAILS OF LAST

No. HOLDER OF HOLDER FIRST ENTRY IN ENTRY IN MB
MB

DATE PAGE DATE PAGE

OF NOS. OF NOS.
ENTRY FROM ENTRY FROM TO
TO

(Page No. v of MB)

433
 REVIEW NOTES
By Superior Inspecting Officers of RITES

Date Pages recording Value of Result of the Dated initials

measurements measurements check exercised and designation
subjected to test checked Satisfactory or of the Checking
check unsatisfactory Officer

(Page No. vi & vii of MB)

434
 REVIEW NOTES

By ACCOUNTS OFFICER OF SBU OFFICE & SBU HEAD

Pages Calculations Defects, Dated initials of

reviewed selected by discrepancies
generally Accounts Officer / etc., Noticed
SBU Head for re-
check

Pages Dated Accts. SBU Head

initials Officer

(Page No. viii of MB)

435
 INDEX
(To be filled in as each set of measurements is recorded. If an entry for a
work or a contractor already exists, value of work done and pages for new
measurements only should be added thereto)

Full name of work or Name of Value of work Pages of MB

propose of supply Contractor done proposed
for payment
through the bill

From To

(Page No. ix, x, xi of MB)

436
Entries to be recorded in manuscript at the beginning of each set of
Measurements relating to each work
a) Name of work –
b) Situation / Location –
c) Agency by which work is executed –
d) Number and date of agreement or work order –
e) Date of measurement –
f) Reference to previous measurement –
g) Date of commencement of work –
h) Date of completion of work –

(Page No. xii of MB)

437
 ANNEXURE – 21.5
(Refer Para 21.5)

FORMAT FOR ABSTRACT OF MEASUREMENTS TO BE RECORDED IN

M.B AT THE END OF DETAILS OF MEASUREMENTS RECORDED FOR
ANY BILL
NOTE: (i) Abstract should include all items (BOQ. NS including Extra and
Substituted) for which payments have been proposed. Items
not operated
upto date need not figure in the Abstract of Measurements

(ii) If, for the same item, payment has been made/proposed at
different rates for various quantities such as Part rate/BOQ rate/0.98 BOQ
rate/0.96 BOQ rate/Special rate based on Market rate, the quantities involved
may be shown in Cols 4a & 5a with the corresponding rates in Col. 4b & 5b.
(i) For last Abstract of Measurements refer MB No. -------------- Page No. -
-----------
BOQ Brief Unit UPTO PREVIOUS BILL CURRENT BILL UPTO DATE
/ NS Description Total
Item of Item Quantity Rate Gross Quantity Rate Gross Quantity Rate Gross
No. Paid amount Paid amount Paid Amt.
(Rs. ) paid (Rs.) Paid Rs. Paid
(Rs.) (Rs.)

1 2 3 4a 4b 4c 5a 5b 5c 6a 6b 6c

438
 RECORD OF MEASUREMENTS

PARTICULARS Details of actual Measurements Contents – Volume or area

No. L B D

1 2a 2b 2c 2d 3

(Page No. 1 to 100 of MB)

439
 ANNEXURE 21.6
(Refer Para 21.2.5 & 21.2.4A)

Test Check Statement

Name of work:
RA bill No/Final Bill:
Agreement No and Date:
Name of Contractor:
Name & Designation of Test Checking Officer:

S.No Item BOQ Required Qty Qty % Ref. Qty Qty

(Col. NO/ % Test Execute test Test page execute test
(Col. 2) NS Check as d in this checke Chec & MB d up to checke
1) Item per bill d in k in No of Previou d up to
NO. Guidelin this bill this Test s bill. previo
es (Col.5) bill Chec us bill.
(Col. (Col.6) k. (Col.9)
3) (Col.4) (Col. (Col.10)
7) (Col.8)

Note : Please see next page for Column No. 11 to 19 of this Table.

440
Total Total Total Amt of Amt of Total Total% Ref. Type of Item
Qty Qty Test % of Test test Amt of Test Check page & (Hidden/Earth
execute Checked Test Check check up test till this bill MB No work/Soil/
Check in this to check on of Test Rock/Ballast
till this till this
(Col. bill previous till this monetary Check Supply/other
bill bill 13) (Col. bill bill terms Wrt Col items/
(Col.11) (Col.12) 14) (Col.15) (Col.16) (Col.17) 14 Electrical/
(Col.18) Mechanical
works)
(Col.19)

(Signature of Test Checking Official)

Name:

Designation

Date:

441
 ANNEXURE 22.1

442
 ANNEXURE 24.1
(Refer Para 24.2.1)
RITES FORM
FORMAT FOR RUNNING ACCOUNT BILL AND FINAL BILL

(Final Bill to be made in the same format but printed on Yellow Paper to
distinguish it from RA Bills)
Note for Contractors

(i) Form 1 A provides for BOQ and NS items for which payment is
claimed on basis of Detailed Measurements recorded in Measurement
Book.

(ii) Form 1 B provides for BOQ and NS items for which payment is
claimed on basis of Approximate Quantities recorded in MB without
Detailed Measurements

1. Name of SBU
2. Name of Project Office
3. Voucher No. & Date
4. Name of Contractor
5. Name of work
6. Serial No. of the Bill
7. No. and date of previous bill for this work
8. Agreement No. & Date
9. Date of written order to commence work
10 Scheduled Date for Completion including Extension (if any)
granted.
11. Date of Actual Completion of Work

443
 FORM II CERTIFICATES AND SIGNATURE

1. The measurements on which are based the entries in Cols. 1 to 6 of

Form 1A were made by _________________ on ______________
and are recorded at Pages _____________________ of MB
No.________________________

2. The Lump Sum Quantities on which are based the entries in Cols. 1 to
6 of Form 1B were assessed by _______________________ on
____________________ and are recorded of Pages
________________ of the MB No. ____________________.
Certified that Quantities and not less than the Lump Sum Quantities
recorded in the MB for various items, have been actually executed at
site and the quantities recorded in MB have been assessed on
approximate basis and roughly computed.

Contractor Site Engineer who Name:

(Name of Company) has recorded the Measurements Signature:
In M.B Date:

Controlling Site Engineer who Name:

has test Checked the Signature:
Measurements& Checked Bill Date:

444
 FORM III – DETAILS OF GROSS PAYMENTS (Rs.)

Sl No. DETAILS Upto Since Total Upto REMARKS

Previous Previous date (Rs. )
Bill (Rs.) Bill (Rs. )
(1) (2) (3a) (3b) (3c) (4)
1 Items for which
Detailed
Measurements
recorded in MB
(From Cols. 6a,
6b,6c of Form 1A)
2 Items for which
payment proposed
on Lump Sum
Quantity without
Detailed
Measurements
(From Cols. 6a,
6b, 6c of Form 1B)
3 Secured Advance * ** (As - * Details at
on Materials proposed) Annexure IA
of RAB No.
** Details
enclosed at
Annexure 1A
4 Mobilization * ** (As * Details at
Advance proposed) Annexure II
of RAB No.
** Details
enclosed at
Annexure II

5 Plant & Machinery * ** (As * Details at

Advance proposed) Annexure III
of RAB No.
** Details
enclosed at
Annexure III
6 Price Escalation * ** (As * Details at
under Clause 10 proposed) Annexure IV
CC of Contract of RAB No.
** Details
TOTAL enclosed at
Annexure IV

445
 FORM IV – DETAILS OF RECOVERIES (Rs.)

Sl No. DETAILS Upto Since Total Upto REMARKS

Previous Previous
Bill (Rs.) Bill (Rs. ) date (Rs. )

(1) (2) (3a) (3b) (3c) (4)

1 Secured * ** (As * Details at
Advance on proposed) Annexure
Materials IB of RAB
No.
** Details
enclosed at
Annexure
1B
2 Mobilization * ** (As * Details at
Advance proposed) Annexure II
including of RAB No.
interest **Details
enclosed at
Annexure II
3 Plant & * ** (As - * Details at
Machinery proposed) as
Advance Annexure
including III of RAB
interest No.
** Details
enclosed
as
Annexure
III
4 Materials * ** (As * Details at
supplied by the proposed) Annexure V
Employer at of RAB No.
rates given in ** Details
the Contract. enclosed at
Annexure V
5 Security * ** (As * Details at
Deposit proposed) Annexure
VI of RAB

446
 No.
** Details
enclosed at
Annexure
VI
6 Tax Deduction * ** (As * Details at
at source proposed) Annexure
towards VII of RAB
Income Tax No.
&Labour ** Details
Welfare Cess enclosed at
etc., Annexure
VII
7 Compensation * ** (As * Details at
and Dues (if proposed) Annexure
any) VIII of RAB
recoverable No.
from the **Details
Contractor enclosed at
Annexure
TOTAL VIII

447
 Annexure 1A

SECURED ADVANCE ON MATERIALS PAYABLE THROUGH CURRENT RA BILL No.

NOTE: 1. Sanction Reference for payment of Secured Advance ___________________________

2. Particulars of Comprehensive Insurance in case of Perishable

fragile and Combustible Materials (Refer Clause 10B (i) of Contract _________________

3. Certificate in the format at Para 23.2.2 enclosed if any Advance is proposed to be paid through current RA Bill

Sl. No. Description of Unit 90% of QUANTITY BROUGHT TO SITE AMOUNT OF ADVNCE PAYABLE
Material Assessed
UNIT RATE
(Rs. )
Upto end Since Last Total upto Upto end of Since Last Total upto
of Last Bill Bill date Last Bill (Rs.) Bill date
(Rs.) (Rs.)
(1) (2) (3) (4a) (4b) (5a) (5b) (6a) (6b) (6c)

Total

448
 Annexure 1B

SECURED ADVANCE ON MATERIALS RECOVERABLE THROUGH CURRENT RA BILL No ______

NOTE: 1. Certificate in the format at Para 23.2.2 to be enclosed if any Recovery is proposed through current RA Bill.

Sl. No. Description of Unit 90% of QUANTITY USED IN WORK AMOUNT OF RECOVERY
Material Assessed
UNIT RATE
(Rs. )
Upto end Since Last Total upto Upto Since Last Total upto
of Last Bill Bill date e+H17nd of Bill date
Last Bill (Rs. (Rs.) (Rs. )
)
(1) (2) (3) (4a) (4b) (5a) (5b) (6a) (6b) (6c)

Total

449
 MOBILISATION ADVANCE - RA BILL NO. _________________________

DETAILS OF PAYMENTS AND RECOVERIES

NOTE: 1. Sanction Reference for Payment of Mobilization Advance ____________________
2. Particulars of Bank Guarantee (Refer Clause 10B (ii) of Contract) __________________
3. Col. 7 amount should be more than Col. 5 amount
4. Certificate in the format at Para 23.2.3 enclosed if any Advance is proposed to be paid through current RA Bill

AMOUND OF DATE OF DATE OF TIME INTEREST @ TOTAL RECOVERY BALANCE ADDL. TOTAL REMARKS
ADVANCE YET LAST BILL CURRENT INTERVAL 10% P.A ON OUTSTANDI PROPOSED ADVANCE ADVANCE OUTSTANDING
TO BE BILL BETWEEN AMOUNT IN NG (COL. 1 - THROUGH OUTSTANDING PROPOSED TO BE
RECOVERED THE TWO COL.1 FOR COL.5) (Rs.) CURRENT (COL.6 - COL.7) THROUGH CARRIED

450
AND CARRIED BILLS PERIOD IN BILL (Rs. ) (Rs.) CURRENT FORWARD TO
FORWARD COL. 4 (Rs. ) BILL (Rs. ) NEXT BILL
FROM LAST BILL (COL. 8A -
(Rs. ) COL.9) (Rs. )
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Annexure II
 PLANT AND MACHINERY ADVANCE - RA BILL NO.

DETAILS OF PAYMENTS AND RECOVERIES

NOTE: 1. Sanction Reference for Payment of Plant & Machinery Advance ____________________
2. Particulars of Insurance and hypothecation (Refer Clause 10B (ii) of Contract) __________________
3. Col. 7 amount should be more than Col. 5 amount
4. Details of Col. 9 to be given in the format given below
5. Certificate in the format at Para 23.2.4 B23enclosed if any Advance is proposed to be paid through current RA Bill

AMOUND OF DATE OF DATE OF TIME INTEREST @ TOTAL RECOVERY BALANCE ADDL. TOTAL REMARKS
ADVANCE YET LAST BILL CURRENT INTERVAL 10% P.A ON OUTSTANDI PROPOSED ADVANCE ADVANCE OUTSTANDING
TO BE BILL BETWEEN AMOUNT IN NG (COL. 1+ THROUGH OUTSTANDING PROPOSED TO BE

451
RECOVERED THE TWO COL.1 FOR COL.5) CURRENT (COL.6 - COL.7) THROUGH CARRIED
AND CARRIED BILLS PERIOD IN (Rs. ) BILL (Rs. ) (Rs. ) CURRENT FORWARD TO
FORWARD COL. 4 (Rs. ) BILL (Rs. ) NEXT BILL
FROM LAST BILL (COL. 8 A -
(Rs. ) COL.9) (Rs. )
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
Annexure III
 DETAILS OF PLANT AND MACHINERY

ADVANCE PROPOSED THROUGH CURRENT RA BILL NO.

Sl. No. DETAILS OF ITEM DISTINGLUIS NEW OR ASSESSED VALUE % OF AMOUNT OF REMARKS
HING OLD NEW/DEPRECIATED ASSESSED ADVANCE
NUMBER IF AS APPLICABLE VALUE FOR PROPOSED
EXISTING (Rs.) GRANT OF (COL. 5 x

452
ADVANCE COL.6)
(Rs.)
(1) (2) (3) (4) (5) (6) (7) (8)

Total
 Annexure IV

PRICE ESCALACTION (ADJUSTMENT) BILL

PAYABLE THROUGH CURRENT RA BILL NO.

NOTE: (I) Price Adjustment Bills under Clause 10 CC of Clauses of Contract shall be
made every quarter as stipulated and paid through next Running Account Bill/
Final Bill.

(II) PAB will be made based on Provisional indices if Final indices are not available
for any of the months of any quarter. In subsequent PAB, necessary monetary
adjustment shall be carried out .

1) P.A.B. No. ____________ 2) For Quarter/Period ending _____________

3) Last PAB paid through 4) RA Bill No. through which

RA BILL NO. ___________________ Current RAB proposed to be paid ____________

Amount payable for Quarter/ Adjustment proposed due to Final Net amount payable Amount paid through Price
period under consideration Indices being different to through current PAB Adjustment Bill
(Detailed Calculations enclosed) Provisional Indices in earlier PAB (Rs. ) (Col. 1 + or -
(Rs. ) (Detailed calculations enclosed) Col. 2b)
PAB No. Amount to be Upto Previous Total upto
adjusted (Rs. ) PAB date (Col. 3 +
( Rs ) Col. 4a)
(Rs. )
(1) (2a) (2b) (3) (4a) (4b)

453
 RECOVERY TOWARDS COST OF MATERIALS STIPULATD FOR SUPPLY BY THE

EMPLOYER RA BILL No. __________________

Sl. No. Description of Unit Rate for QUANTITY SUPPLIED TO AMOUNT TO BE RECOVERED
Material Recovery per CONTRACTOR
Unit (Rs. )

Upto end of Since Last Total upto Upto end Since Last Total upto
Last Bill Bill date of Last Bill Bill (Rs. ) date (Rs.)
(Rs. )

454
(1) (2) (3) (4a) (4b) (5a) (5b) (6a) (6b) (6c)

TOTAL
Annexure V
 RECOVERY OF SECURITY DEPOSIT

RA BILL No. ___________

NOTE: Col. 1a (Col. 6a of Form 1A + Col. 6a of Form 1 B)
Col. 1b (Col. 6b of Form 1A + Col. 6b of Form 1 B)
Col. 1c (Col. 6c of Form 1A + Col. 6c of Form 1 B)

GROSS AMOUNT OF BILL SECURITY DEPOSIT RECOVERY AT REMARKS

5% OF GROSS AMOUNT OF BILL
(Rs. )
Upto end of Since Last Bill Total upto Upto end of Since Last Total upto

455
Last Bill (Rs. ) (Rs.) date (Rs. ) Last Bill Bill date

(1a) (1b) (1c) (2a) (2b) (2c) (3)

Total SD recovery to
be restricted to 5% of
Tender value. This will
include Earnest Money
taken as part of SD +
Recovery from Bills @
5% of Gross amount of
Bill
Annexure VI
 RECOVERY TOWARDS INCOME TAX

LABOUR WELFARE CESS ETC.

RA BILL No. ___________

NOTE: (I) Col. 2a (Col. 6a of Form 1A + Col. 6a of Form 1B)
Col. 2b (Col. 6b of Form 1A + Col. 6b of Form 1B)
Col. 2c (Col. 6c of Form 1A + Col. 6c of Form 1B)
(II) Breakup for figures in Col. 3(a) & 3 (b) to be enclosed

456
Type of Tax/Cess covered GROSS AMOUNT OF BILL TAX / CESS TO BE REMARKS ON CALCULATIONS
BY TDS Upto Since Total Upto Since Total OF TDS
end of Last Bill upto end of Last Bill upto
Last Bill date Last Bill date

(1) (2a) (2b) (2c) (3a) (3b) (3c) (4)

Annexure VII
 RECOVERY TOWARDS ANY COMPENSATION OR DUES FROM THE

CONTRACTOR RA BILL No. ___________

NOTE: (1) Col. 2a (Col. 6a of Form 1A + Col. 6a of Form 1B)
Col. 2b (Col. 6b of Form 1A + Col. 6b of Form 1B)
Col. 2c (Col. 6c of Form 1A + Col. 6c of Form 1B)
(2) Breakup for figures in Col. 3(a) & 3 (b) to be enclosed

(3) Authority for recovery of Compensation / Dues from the Contractor _____________

457
Details of Compensation or GROSS AMOUNT OF BILL AMOUNT RECOVERED REMARKS ON CALCULATIONS
Dues Recoverable Upto Since Total Upto Since Total OF DUES RECOVERED
end of Last Bill upto end of Last Bill upto
Last Bill date Last Bill date

(1) (2a) (2b) (2c) (3a) (3b) (3c) (4)

Annexure VIII
 FORM V MEMORANDUM OF PAYMENT
1) Gross Payment due through Current Bill Rs.
(Col. 3b of Form III)

2 Recoveries through Current Bill Rs.

(Col. 3b of Form IV)

3) Net Payment due to be Contractor Rs.

(Item 1 – Item 2)
Pay Rs. _______________________ (in words)
by Cheque

Disbursing Date:
Officer Signature:

Designation:

RECEIVED Rs.

as per above Memorandum through Cheque No. Dated on

account of this work.

WITNESS STAMP Signature

of
Contractor
with Seal

458
PAID BY ME VIDE CHEQUE NO.____________________ DATED
________________

Official ) Date:
actually ) Signature:
making ) Designation:
the payment )

459
 FORM VI REMARKS

Note: The Disbursing Officer and SBU Head can record Remarks if any on
Check of Measurements, State of Contractor’s Account etc.,

460
 ANNEXURE 24.2
(Refer Para 24.5)

DEVIATION STATEMENT

1. Following instructions are on the basis of following Deviation Limits

(i) Non Foundation items (+) 25%; (- ) unlimited
(ii) Foundation items (+) 100%; (- ) unlimited
Instructions on filling up Columns of Deviation Statement.
Note: 1. For BOQ-Non Foundation items – Permissible Deviation will be
+ 25%. For quantity in excess of 125% of BOQ quantity, 0.97
BOQ rate and market rates will apply for quantities as stipulated
in the Contract. If quantity executed is less than BOQ quantity,
payment for quantity executed will be only at BOQ rate.
2. For BOQ–Foundation Items – Permissible deviation will be +
100%. For quantity of any foundation items in excess of 200% of
BOQ quantity, 0.97 BOQ rate and market rates will apply for
quantities as stipulated in the Contract. If quantity executed is
less than BOQ quantity, payment for quantity executed will be
only at BOQ rate.

Explanatory Statements as per Proforma attached should

accompany Deviation Statement.

NOTE:
RUNNING ACCOUNT BILLS
1. Col. 1 BOQ Item Nos. to be as in Contract Agreement. Substituted as
well as Extra items to be serially numbered in the order in
which they are proposed.
2. Col. 4 For BOQ Items BOQ Rate; For Substituted and Extra items,
Rates as recommended.
3. Col. 5 For definition of Foundation items, refer Clause 12.5 of
Clauses of Contract and Schedule F of Contract.
4. Col. 6d To be filled based on a reasonable assessment.

461
5. Col. 7a Amount to be worked out only for BOQ Items at BOQ rate
(Col. 6f x Col. 4).
6. Col. 7b For BOQ items, Amount may be worked out as under:
(i) Non Foundation items (No Deviation or Deviation to
any extent on lower side)
If Col. 6e shows quantities upto 125% of Col. 6f.
At BOQ Rate shown in Col. 4 x Quantity shown in Col. 6e
(ii) Non Foundation items (Deviation on higher side)
If Col. 6e shows more than 125% of BOQ Quantity shown
in Col 6f - At BOQ Rate in Col. 4 x 125% of BOQ
Quantity shown in Col. 6f + at 0.97 BOQ rate for Quantity
between 125% and 150% at recommended market rate
x Quantity of Col. 6e in excess of 150% of Quantity in
Col. 6f.
Note: If recommended rate has not been worked out,
till that time take at BOQ Rates for Deviated Quantity
in excess of 150% of BOQ Quantity.
(iii) Foundation Items
(a) (No Deviation or Deviation to any extent on lower
side):- At BOQ Rates shown in Col. 4 x quantity
shown in Col. 6e.
(b) (Deviation on higher side)
If Col. 6e shows more than 200% of BOQ Qnty shown in
Col. 6f - At BOQ rate in Col 4 × 200% of BOQ Qnty.
shown in Col. 6f + at 0.97 BOQ rate for Quantity between
200% and 240% at recommended Market Rate ×
Quantity of Col 6 e in excess of 240% of qnty. in Col. 6f.
Note: If recommended rate has not been worked out, till
that time take at BOQ Rate for the Deviated Quantity in
excess of 240% of BOQ Quantity.
(iv) Substituted and Extra items
For Substituted and Extra items, amount may be worked
out as under :
Recommended Rate in Col. 4x Entire Quantity in Col. 6e.

462
FINAL BILLS
1. Col. 1 BOQ Item No. to be as in Contract Agreement. Substituted
and Extra items to be serially numbered in the order they were
proposed.
2. Col. 4 For BOQ Items at BOQ Rates; For Substituted and Extra
items, Rates as approved by Competent Authority (Refer
relevant item of SOP)
3. Col. 6d This will be Nil.
4. Col. 6e Quantities will be as finally executed
5. Col. 7a Amount to be filled in for only BOQ items at BOQ Rate (Col. 6f
x Col. 4)
6. Col. 7b For BOQ Items, amount may be worked out as under:—
Non Foundation Items
Same as in items (i) and (ii) under “Running Account Bills”
except that “Recommended Market Rate” shall be replaced by
“Market Rate approved by Competent Authority under relevant
item of SOP” and “Anticipated Quantity at Completion Stage”
replaced by “Quantity as finally executed”.

Foundation Items
Same as in items (iii) (a) and (b)under “Running Account Bills”.
For Substituted and Extra items, Amount may be worked
out as
under:–
Market Rate approved by Competent Authority under relevant
item of SOP x Quantity actually executed in Col. 6e

463
 EXPLANATORY STATEMENTS TO ACCOMPANY DEVIATION
STATEMENT

(i) Foundation Items of BOQ – Deviation on higher side –

(Anticipated Quantity at Completion stage likely to exceed 240%
of BOQ quantity)

BOQ Description Unit Anticipated Remarks Position on

Item of item Qty. at on action submission
No. in brief completion proposed to of Market
stage as % of restrict Rate
BOQ Qty. completion Analysis for
qty to less approval of
than 240% competent
of BOQ authority for
Qty. Deviated
Quantity

(ii) Non Foundation Items of BOQ – Deviation on Higher Side

(Anticipated Quantity at Completion Stage likely to exceed 150%
of BOQ Qty.)

BOQ Description Unit Anticipated Remarks Position on

Item of item Qty. at on action submission
No. in brief completion proposed to of Market
stage as % of restrict Rate
BOQ Qty. completion Analysis for
qty to less approval of
than 150% competent
of BOQ authority for
Qty. Deviated
Quantity

(iii) Where anticipated cost is such the approval of a higher Authority or

client is required to be taken, details of action taken for the same.

464
 DEVIATION STATEMENT

NAME OF CONTRACTOR CONTRACT AGREEMENT No. RUNNING ACCOUNT BILL NO.

FINAL BILL

NOTE (i) For Foundation BOQ items where quantity at completion stage is expected to exceed 240% of BOQ quantity or For Non Foundation BOQ items where Quantity at
completion stage is expected to exceed150% of BOQ quantity, Explanatory statements to be furnished in the Proforma enclosed.
If total amount as anticipated at completion (Col. 7b) is such that the approval of a higher competant authority and/or client is required to be taken as per SOP, immediate
(ii) action should be initiated for the same.

BOQ ITEM DESCRIPT UNIT UNIT RATE. FOUNDATION QUANTITIES AMOUNT (Rs.)
No./SUBSTITU ION OF BOQ (F) OR NON

465
TED ITEM ITEM IN RATE/MARKET FOUNDATION
NO../ EXTRA BRIEF RATE FOR (NF) - (FOR
ITEM No. SUBSTITUTED BOQ ITEMS
ITEM/FOR ONLY)
EXTRA ITEM
UPTO CURRE TOTAL ANTICIPATED FINAL AS PER FINAL AS PER AS EXCESS SAVINGS
LAST NT BILL UPTO FURTHER ANTICIPAT BOQ ANTICIPATED BOQ ANTICI (7b - 7a) (7a - 7b)
BILL DATE BEFORE ED UPTO QNTY. AS % FOR PATED
COMPLETION COMPLETI OF BOQ QNTY BOQ AT
ON (100 X 6e/6f)) ITEMS COMPL
ONLY ETION

1 2 3 4 5 6a 6b 6c 6d 6e 6f 6g 7a 7b 8a 8b

Total
 ANNEXURE 24.3
(Refer Para 24.6)

GUIDELINES ON CHECK AND CUSTODY OF BANK

GUARANTEES SUBMITTED BY THE CONTRACTOR

1.0 GENERAL

1.1 The Contractor may submit Bank Guarantees for the following from
any Scheduled Bank except those Banks with whom business
dealings have been suspended/banned. Custody of Guarantee
Bonds will be the responsibility of Accounts Section of SBU Office.
i) Performance Guarantee (under Clause 1 of Contract)
ii) Guarantee towards Mobilization Advance (under Clause 10B
of Contract)
iii) Guarantee towards Free supply of Materials (under Clause 11
of Contract)
iv) Any other circumstance as provided for in the Contract.

1.2 Banks have already the practice of sending original of B.G to the
Beneficiary directly under Registered Post/Acknowledgement Due. In
all cases where the contractors are to furnish B.G in favour of RITES,
they should be advised to request the Bank to send the orginal B.G
directly to RITES under Registered Post/Acknowledgment Due.

2.0 POWERS OF BANKS TO ISSUE GUARANTEE BOND

2.1 Scheduled Banks approved by the Reserve Bank of India in this
behalf shall be eligible to issue Guarantee Bonds upto certain
specified limits without being required to lodge Government
Securities as cover.
2.2 The Bank authorizes certain officials of the Branch concerned to sign
the Guarantee Bond binding the Guarantor Bank.
2.3 The Bank Guarantee is drawn on a non-judicial stamp paper of
appropriate value.

466
3.0 CHECKS TO BE EXERCISED BY ACCOUNTS SECTION OF SBU
OFFICE ON RECEIPT OF BANK GUARANTEE FROM THE
CONTRACTOR
3.1 Is the Bank Guarantee on Non-judicial Stamp paper of appropriate
value purchased in the name of the Bank?
3.2 Is it in the approved format, for the amount required and valid for the
period specified in the Contract Agreement?
3.3 Is the Bank Guarantee a genuine one? On receipt of every Bank
Guarantee Bond, a reference should be made to the Regional Office
of the Bank to ascertain the bonafides of the Bond. A proper record
should be maintained of the confirmation from the Regional Office of
the Bank. It is to be noted that individual Bank Branches are usually
authorized to issue Guarantee Bonds upto a certain specified limit by
the Regional Offices of the Bank and also only certain officials of the
Branch are authorized to sign the Guarantee Bond on behalf of the
Bank. As an extra precautionary measure, a certified True copy of
Bank Guarantee should be sent to the Branch of Bank furnishing the
Bond and Regional Office of Bank for their record.
3.4 A Register should be maintained of the Bank Guarantee Bonds in
custody of each SBU Office. An index should be made out in the
Register indicating the following details.
i) Guarantee Bond No. and Date
ii) Name of the Bank Branch issuing the Bond
iii) Details of the Regional Office of Bank Controlling the Branch
iv) Purpose for which Guarantee Bond issued such as
Performance Guarantee, Mobilisation Advance Guarantee etc.
v) Name of Contractor
vi) Contract Agreement No. with the Contractor
vii) Name of work
viii) Amount of Bank Guarantee
ix) Validity of Bank Guarantee upto (Date)
x) Whether Genuineness of BG confirmed by the Regional
Office?
In the Register separate pages should be earmarked for each
month in which should be listed all BGs (No. and Date of
issue) whose validity expires during that month. A review of
the Register should be done regularly in the first working day
of the month to list out the BGs whose Validity will be expiring

467
 in the fourth month counting from the month of review. Thus, if
the review is done on (say) first of January, all BGs whose
Validity will be expiring in April of that year should be listed. A
reference should be made to the Engineer in charge / Project
Coordinator concerned to get a confirmation on whether the
validity of BG is to be got extended and if so for what period. If
the reply is in the affirmative, prompt action should be taken to
advise the Contractor to arrange for extension of validity of
BG. If the Contractor does not extend the validity in spite of a
reminder, the BG should be encashed within the Validity
period under advice to the Contractor. Similarly, when the
Engineer in Charge recommends encashment of BG on
grounds of recovery of dues from the Contractor, BG should
be encashed within validity period under advice to the
Contractor.
3.5 When the purpose for which the Bank Guarantee has been furnished
by the Contractor has been fulfilled, the BG may be returned in
original to the Branch of the Bank which had issued it with an advice
to cancel the BG. A copy of the BG should however be retained in the
office of SBU for record along with a copy of advice sent to Bank for
cancellation of BG.

468
 ANNEXURE 24.4
(Refer Para 24.7)

DOCUMENTS TO ACCOMPANY RUNNING ACCOUNT BILLS

GENERAL DETAILS

1. Contract Agreement No. & Date

2. Contract Value (Rs.)
3. Name of Contractor
4. Name of Work
5. Scheduled Date of Completion / Extended Date of Completion
6. Date of Measurement
7. RA Bill No. & Date of Bill

SPECIFIC DETAILS

1. PERFORMANCE GUARANTEE (CLAUSE 1 OF CONTRACT)

i) Guarantee Bond issued by Bank Name & Branch:-
ii) Guarantee Bond No. & Date:-
iii) Amount Covered by Bond:-
iv) Bond Valid upto (Date):-

2. BANK GUARANTEE BOND ON FREE SUPPLY OF MATERIALS

TO THE CONTRACTOR (CLAUSE 10 OF CNTRACT)

(i) Issued by Bank Name and Branch:-

(ii) Guarantee Bond No. & Date:-
(iii) Amount covered by Bond:-
(iv) Bond valid upto (Date)

469
3. MANDATORY TESTS ON MATERIALS (CLAUSE 10 A OF
CONTRACT)

Sl. Name Full Frequency of No. of Upto No. of No. of Remarks

No. of Quantity of tests as per Tests to date Tests Tests on short
Material material CPWD be done Qty. required actually fall (if
required as specifications for full received for upto carried any) and
per Quantity at site date out upto reasons
Agreement quantity date for the
same
1 2 3 4 5 6 7 8 9

4. SETTING UP OF SITE LABORATORY (CLAUSE 10 A OF

CONTRACT)

i) Whether Site Laboratory has been set up fully equipped as

stipulated in Clause 10 A of Clauses of Contract?
ii) Whether the Laboratory is manned by Competent Staff?

5. INSURANCE POLICY ON SECURED ADVANCE ON PERISHABLE

MATERIALS (CLAUSE 10B OF CONTRACT)
i) Amount of Secured Advance covered by Insurance Policy:-
ii) Insurance Policy No. & Date:-
iii) Name of Insurance Co. & Branch issuing the Policy:-
iv) Policy Valid upto (Date):-

6. BANK GUARANTEE BOND ON MOBILISATION ADVANCE

(CLAUSE 10B OF CONTRACT)
i) Issued by Bank Name & Branch:-
ii) Guarantee Bond No. & Date :-
iii) Amount covered by Bond:-
v) Bond Valid Upto (Date):-

470
7. HYPOTHECATION DEED ON PLANT & MACHINERY ADVANCE
(CLAUSE 10B OF CONTRACT)
i) Deed No. & Date:-
ii) Details of Plant & Machinery covered:-
iii) Amount of Advance sanctioned:-

8. INSURANCE POLICY ON PLANT & MACHINERY ADVANCE

(CLAUSE 10B OF CONTRACT)
i) Amount of Advance covered by Insurance Policy:-
ii) Details of Plant & Machinery covered:-
iii) Insurance Policy No. & Date:-
iv) Name of Insurance Co. & Branch issuing the Policy:-
v) Policy Valid upto (Date):-

9. LICENSE UNDER THE CONTRACT LABOUR (R&A) ACT &

RULES (CLAUSE 19 OF CONTRACT)
i) Labour Office which has issued the License:-
ii) License No. & Date:-
iii) License valid Upto (Date):-

10. INDEMNITY BOND INDEMNIFYING RITES AGAINST PAYMENT

TO LABOUR UNDER LABOUR LAW (CLAUSE 19B I(vi) OF
CONTRACT)
i) Indemnity bond No. & Date

11. INDEMNITY BOND AGAINST PATENT RIGHTS (CLAUSE No. 26

OF CONTRACT)
i) Indemnity bond No. & Date

12. INDEMNITY BOND ON EMPLOYER’S PLANT & MACHINERY

HIRED TO THE CONTRACTOR (CLAUSE 34 OF CONTRACT)
i) Indemnity bond No. & Date:-
ii) Details of Plant & Machinery concerned:-
iii) Amount for which Bond executed-

471
13. AVAILABILITY OF TECHNICAL STAFF AT SITE
(CLAUSE No. 36 OF CONTRACT)

Requirement as per Clause 36 of GCC Available at Site

Min. Qualification & No

Experience

14. REGISTRATION WITH CGST DEPARTMENT FOR CGST

(CLAUSE No. 37 OF CONTRACT)

i) Registration No. & Date

ii) CGST Office Name
iii) Registration Valid Upto (Date)

15. REGISTRATION WITH SGST DEPARTMENT FOR SGST

(CLAUSE No. 37 OF CONTRACT)

i) Registration No. & Date

ii) SGST Office Name
iii) Registration Valid Upto (Date)

16. INSURANCE POLICY ON COST OF WORKS (CLAUSE 47.1 OF

ADDITIONAL CLAUSES OF CONTRACT)
i) Cost of Works covered by Insurance Policy:-
ii) Insurance Policy No. & Date:-
iii) Name of Insurance Co. & Branch issuing the Policy:-
iv) Policy Valid Upto (Date):-

472
17. THIRD PARTY INSURANCE (CLAUSE 47.2 OF ADDITIONAL
CLAUSES OF CONTRACT)
i) Amount Covered by Insurance Policy:-
ii) Insurance Policy No. & Date:-
iii) Name of Insurance Co. & Branch issuing the Policy:-
iv) Policy Valid Upto (Date):-

18. WORKMEN’S INSURANCE (CLAUSE 47.3 OF ADDITIONAL

CLAUSES OF CONTRACT)
i) Amount Covered by Insurance Policy:-
ii) Insurance Policy No. & Date:-
iii) Name of Insurance Co. & Branch issuing the Policy:-
iv) Policy Valid Upto (Date):-

19. INDEMNITY BOND ON DAMAGES TO PERSONS AND PROPERTY

(CLAUSE 47.9 OF ADDITIONAL CLAUSES OF CONTRACT)
i) Indemnity Bond No. & Date:-

20. DEVIATION STATEMENT

(To be furnished in the Proforma stipulated in Annexure 24.2. To be
furnished starting from the Running Bill when the gross value of work
done exceeds 50% of Contract Value)

21. CERTIFICATE ON CONTRACT COST

Certificate that the Cost of Work as executed has not exceeded the
Contract Cost as sanctioned by the Competent Authority of
RITES/Client. Action proposed for processing sanction of Competent
Authority for increase in Contract Value, if trend of expenditure shows
the need for the same.

22. CERTIFICATE ON TIME OF COMPLETION

Certificate that the Time limit specified in the Contract has not been
exceeded. Action proposed for processing sanction of Competent
Authority for extension of time if the trend of progress of work shows
the need for the same.

473
23. DETAILS OF RECOVERY OF REMITTANCE OF EPF DUES OF
CONTRACTOR’S EMPLOYEES.
24. TEST CHECK STATEMENT AS PER ANNEXURE 21.6

OFFICIAL
SUBMITTING THE BILL

Signature
Name
Designation
Date

474
 ANNEXURE 24.5
(Refer Para 24.7)

DOCUMENTS TO ACCOMPANY FINAL BILL

GENERAL DETAILS
1. Contract Agreement No. & Date:
2. Contract Value (Rs.):-
3. Name of Contractor :-
4. Name of work:-
5. Scheduled Date of Completion / Extended Date of Completion:-
6. Actual Date of Completion:-
7. Final Value of Contract (Rs.):-
8. Date of Measurement:-
9. Date of Final Bill:-
10. Date of issue of Final Completion Certificate:-

A) CERTIFICATE TO BE FURNISHED ALONG WITH COPIES OF

SUPPORTING DOCUMENTS
1. All following advances given to the Contractor in terms of Clause 10B
of Contract have been recovered along with interest where due.
i) Secured advance on Materials
ii) Mobilization Advance
iii) Plant & Machinery Advance
2. All amounts due to be recovered from the Contractor towards Hire
Charges for Plant & Machinery, Water Charges, Electricity charges,
rent for Employee’s building (if any given on rent) License fee for
Employee’s Land (if any given on license) and Liquidated Damages
and other Compensation have been recovered.
3. All Mandatory Tests as specified in Contract have been carried out.
4. All Deviations by way of Extra items, Substituted items and Deviations
in Quantities of Scheduled Items as detailed in Clause 12 of Contract

475
 have been approved by the Competent Authority of RITES along with
Rates.
5. The Final Contract Value is within the Expenditure sanction limit of the
Client and within the Contract Value sanctioned by the Competent
Authority of RITES.
6. The work has been completed within the Stipulated Completion Date /
Extended Completion Date as approved by the Competent Authority
of RITES.
7. The MBs and Bill have been signed by the Authorized Signatory of the
Contractor.
8. The Contractor has submitted an unconditional No Claim Certificate.
Or
The Contractor has submitted list of Claims enclosed as Annexure A
along with the comments of the Site Engineer on each claim.
9. Test Check has been carried out as per Annexure 21.2 and Test Check
Statement as per Annexure 21.6 has been prepared.

Encl.: Annexure A

OFFICIAL SUBMITTING
THE BILL

Signature
Name
Designation
Date

476
B) DOCUMENTS TO BE ENCLOSED
1. DETAILS OF PERFORMANCE GUARANTEE (CLAUSE 1 OF
CONTRACT)
i) Guarantee Bond issued by Branch Name & Branch:-
ii) Guarantee Bond No. & Date:-
iii) Amount covered by Bond:-
iv) Bond Valid Upto (Date):-

2. COPY OF GUARANTEE BOND FOR SPECIALISED WORKS

(CLAUSE 17 of CONTRACT)
i) Item of Work Covered:-
ii) Guarantee Bond No. & Date:-
iii) Bond Valid Upto (Date):-

3. DEVIATION STATEMENT (As per Proforma at Annexure 24.2)

4. COPY OF COMPLETION CERTIFICATE (CLAUSE 8 OF CLAUSES

OF CONTRACT)

5. SET OF COMPLETION PLANS AND OPERATING &

MAINTENANCE MANUAL (CLAUSE 8 B OF CLAUSES OF
CONTRACT)

6. CHARGE PAPER - HANDING OVER OF COMPLETED WORKS TO

THE CLIENT AND HIS TAKING OVER
7. TEST CHECK STATEMENT AS PER ANNEXURE 21.6

OFFICIAL SUBMITTING THE BILL

Signature
Name
Designation
Date

477
 ANNEXURE 24.6
(Refer Para 24.8)

CHECK LIST FOR CHECK AT SBU OFFICE BEFORE

PASSING OF BILL
(RUNNING ACCOUNT BILLS)

Contract Agreement No. & Date:-

(Reference of Client’s approval for the Agreement)

Contract Value (Rs.):-

Name of Contractor:-

Name of Work:-

Scheduled Date of Completion / Extended Date of

Completion:-

Date of Measurement:-

RA Bill No. & Date:-

1. Whether all Documents stipulated to be submitted with YES / NO

RA Bill submitted

2. Whether the Scheduled Date of Completion / Extended YES / NO

Date of Completion is already over. If “Yes” whether
any application for Extension of Time received and
what is the Present position.

3. Whether the following Bank Guarantees are in proper

form and Valid for the desired amount and period?
Whether the authenticity of the Guarantee Bonds has
been cross checked with Regional Office of Bank.

(i) Performance Guarantee (Clause 1 of Contract) YES / NO

(ii) Mobilization Advance (Clause 10B of Contract) YES / NO

(iii) Free Supply of Materials (Clause 10 of Contract) YES / NO

478
4. Whether the following insurance Policies are Valid for
the desired amount and period?

(i) Secured Advance on Perishable Materials (Clause YES / NO

10B of Contract)

(ii) Plant & Machinery Advance (Clause 10B of YES / NO

Contract)

(iii) Cost of Works (Clause 47.1 of Contract) YES / NO

(iv) Third Party Insurance (Clause 47.2 of Contract) YES / NO

(v) Workmen’s Insurances (Clause 47.3 of Contract) YES / NO

5. Whether the following Indemnity Bonds of the

Contractor are in desired form and signed by the
Authorized Signatory of the Contractor

(i) Payment to Labour (Clause 193 vi of Contract) YES / NO

(ii) Patent Rights (Clause 26 of Contract) YES / NO

(iii) Employers Plant & Machinery hired to the YES / NO

Contractor (Clause 34 of Contract)

(iv) Damages to persons and property (Clause 47.9 of YES / NO

Contract)

6. Whether the Hypothecation Deed executed by the

Contractor is in proper form and signed by the
Authorized Signatory of the Contractor

(i) Plant and Machinery Advance (Clause 10B of YES / NO

Contract)

7. Whether the Contractor has submitted the following

documents

(i) License under Contract Labour (R & A) Act and YES / NO

Rules (Clause 19 of Contract)
(ii) Registration with CGST Department (Clause 37 of YES / NO
Contract)

479
 (iii) Registration with SGST Department (Clause 37 of YES / NO
Contract)
8. Whether the Contractor has arranged for the following?

(i) Setting up of Site Laboratory (Clause 10 A of YES / NO

Contract)

(ii) Mandatory Tests as per CPWD Specifications YES / NO

(Clause 10 B of Contract)

(iii) Availability of Technical Staff at Site (Clause 36 of YES / NO

Contract)

9. Whether the Deviations by way of Extra items, YES / NO

Substituted items and Deviations in quantities of
Schedule items have been approved by the Competent
Authority of RITES and the Rates have been
sanctioned? Whether the Client advised of the
Deviation and the Rates

10. Whether the Contract Cost is likely to be exceeded and YES / NO

if so whether the Sanction of Competent Authority of
RITES and Clients’ Revised sanction for Expenditure
taken?

11. (i) Whether Quantities of items executed as shown in YES / NO

Bill are as shown in the Measurement Book, the
rates for items are as given in Contract / approved
by Competent Authority of RITES in case of
deviations and the arithmetical calculations are
correct.

(ii) In cases where payment is proposed on Lump sum YES / NO

Quantities whether the Engineer recording the
measurements has certified that not less than the
quantity billed for has actually been executed at
site.
(iii) Whether the MB has been signed by Site Engineer YES / NO
/Controlling Officer and the Authorized Signatory
ofContractor? Whether Test Checks carried out as
perStipulations in Guidelines?

480
 (iv) Whether the Engineer entering the Measurements YES / NO
in MB has certified that the works have been
carried out as per approved drawings and
specifications.

(v) Whether arithmetical checks have been done on YES / NO

Quantities and Amount with reference to upto end
of previous bill, Through the Current Bill and upto
the end of Current Bill.

12. Whether there is adequate amount available in the YES / NO

Bank Account for this work? If “No” what is the action
taken to get the additional funds required from the client
as per the provisions in the Agreement between RITES
and the Client.

13. Whether the Contractor has submitted evidence of YES / NO

recovery and remittance of EPF dues of his employees

14 Whether Test Check Statement as per Annexure 21.6 YES / NO

has been submitted

ACTION PROPOSED WHEN CHECK REVEALS

THE NEED FOR THE SAME

ITEM NO. ACTION PROPOSED

CHECKING OFFICIAL

Signature:

Name :

Designation:

Date:

481
 ANNEXURE 24.7
(Refer Para 24.8)

CHECK LIST FOR CHECK AT SBU OFFICE

BEFORE PASSING OF BILL
(FINAL BILL)
1. Whether the following Advances under Clause 10B of
Contract have been recovered form the Contractor
along with interest as due as checked from the Final
Bill.

(i) Secured Advance on Materials YES / NO

(ii) Mobilisation Advance YES / NO

(iii) Plant & Machinery Advance YES / NO

2. Whether all amounts due from the Contractor towards YES / NO

hire charges for Plant & Machinery, Water Charges,
Electricity Charges, Rent for use of Buildings,
License fee for land, Liquidated damages and other
compensations have been recovered?

3. Whether all Mandatory Tests as stipulated in YES / NO

Contract have been carried out.

4. Whether the Deviations by way of Extra YES / NO

items/Substituted items and Deviations in Quantities
of Scheduled items have been approved along with
Rates by the Competent Authority of RITES and
whether the Client has been apprised of the details?

5. Whether the Final Contract Value is within the YES / NO

Amount as sanctioned by the Competent Authority of
RITES and for which Expenditure Sanction has been
accorded by the Client?

6. Whether Sanction of Competent Authority for YES / NO

extension of time as required exists and the Client
has been apprised with full details of the period for
which extension of date for completion of work has
been granted by the Competent Authority of RITES?

482
7. (i) Whether Quantities of items executed as shown YES / NO
in Bill are as shown in the MB, the rates for the
items are as given in the Contract / approved by
Competent Authority of RITES in case of
Deviations and the arithmetical calculations are
correct?

(ii) Whether the MB has been signed by the Site YES / NO

Engineer / Controlling Officer and the Authorized
Signatory of the Contractor? Whether Test
Checks have been carried out as stipulated in
Guidelines?

(iii) Whether the Engineer entering the YES / NO

Measurements in MB has certified that the works
have been carried out as per approved drawings
and specification?

(iv) Whether the total quantities of different items as YES / NO

entered in the MB and billed for, agree generally
with the quantities as computed from approved
drawings.

(v) Whether arithmetical checks have been done on YES / NO

quantities and amount with reference to upto end
of previous bill, through the Current Bill and upto
end of Current Bill?

8. Has the Contractor submitted “No claim” Statement YES / NO

9. Whether there is adequate amount available in the YES / NO

Bank Account for this work from the Deposits of the
Client.

10. Whether the Completion Certificate issued by the YES / NO

Engineer in Charge is the final one and is in order.

11. Whether the Guarantee Bonds furnished by the YES / NO

Contractor for specialized Works are in proper form
and are for the period required as per Contract.

483
12. Whether the Completion plans and Operation and YES / NO
Maintenance Manuals furnished by the Contractor
are in order.

13. Whether the Charge Papers on handing over / Taking YES / NO

over of completed works are in order.

14 Whether Test Check Statement as per Annexure 21.6 YES / NO

has been submitted

484
ACTION PROPOSED WHEN CHECK REVEALS

THE NEED FOR THE SAME

ITEM NO. ACTION PROPOSED

CHECKING OFFICIAL

Signature:

Name :

Designation:

Date:

485
 ANNEXURE 26.1
(Refer Para 26.3.1)

LIST OF DOCUMENTS CONSIDERED ESSENTIAL FOR

INSPECTIONS BY CTE AND WHICH MAY BE CALLED FOR
EXAMINATION OF WORK
(1) (a) Press Cuttings, including extended dates, if any
i) For pre-qualification of Architects/Consultants
ii) For pre-qualification of contractors
iii) Call of tenders
(b) Register of sale of tenders.
(c) Register of opening of tenders.
(2) File giving reference to financial sanction and approval of competent
administrative authority.
Preliminary estimate
(3) Copy of Detailed Estimate and its technical sanction by the competent
technical authority.
(4) Approved N.I.T (Notice Inviting Tenders) in original.
(5) Rejected tenders and comparative statements for:
(a) Selection of Architects/Consultants.
(b) Short listing or pre-qualification of Tenderers.
(c) Other tenders.
(6) Justification statement and corresponding noting in support of
tender/offer accepted.
(7) Details of negotiations, if any, made before acceptance of tender.
(8) Original contracts with consultant/contractor.
(9) Guarantee Bonds etc. towards security for work,
machinery/mobilization advance etc. including extension of validity.
(10) Insurance policies for work, materials, equipment, men etc. including
extension of validity.
(11) Guarantee for water tightness, termite proofing etc.
(12) Standard specifications

486
(13) Standard Schedule of Rates.
(14) Drawings (Architectural and Structural).
(15) All connected Measurement Books, level books, field books and lead
chart.
(16) All Running Account Bills with all connected statements/vouchers etc.
(17) Statement showing details of check of measurements by Superior
Officers-Copies of orders laying down such requirements.
(18) Materials at site accounts/dismantled materials record.
(19) Site order Books/other records/Log Books.
(20) Details of Extra/substituted items and of deviated quantities being
executed/considered for execution in the work along with Analysis of
Rates.
(21) Hindrance Register.
(22) Office correspondence files and inspection notes, if any, issued by
Inspecting Officers.
(23) Complaint records, if any.
(24) Any other documents relevant to the works.

487
 ANNEXURE – 26.2
(Refer Para 26.4.1)

REGISTER SHOWING OVERPAYMENT ASSESSED/POINTED OUT

BY CTE OREGANISATION AND SUBSEQUENT RECOVERIES
EFFEECTED

S.No. CTE”s Name of Name of Amount of Amount of Actual Remarks

Ref. No. work and Contractor over over date of
and Agreemen payment payment Recovery
date t No. assessed / accepted by of over
pointed Engineer-in- payment
out by CTE Charge for
recovery
1 2 3 4 5 6 7 8

488
 ANNEXURE 26.3
(Refer Para 26.5)
COMMON IRREGULARITIES POINTED OUT BY CTE
1.0. Administrative Approval and Expenditure Sanction
(i) A/A and E/S not available/taken
(ii) Major change in scope made during execution
(iii) No check on the estimate prepared by the consultant
2.0. Detailed estimate and technical sanction
(i) Detailed estimate not prepared
(ii) Backup calculations not kept properly
(iii) Nomenclature of item ambiguous.
(iv) No Standard Schedule of rates followed.
(v) No analysis for non-schedule items
(vi) No details and reference to drawings for check of quantities
adopted
(vii) Same component in more than one item
(viii) Rate only items without indicating Quantity (Nil Quantity items)
(ix) No check on consultant in providing costly items
(x) Technical sanction based on the earlier accepted rates and
not the Current rates
(xi) No check on estimates & design prepared by consultants
3.0 Appointment of Consultants
(i) No maximum limit fixed for payment of consultants fee
(ii) Paid for services not rendered.
(iii) No Publicity for appointment of Consultant.
(iv) Selection from old Panel
(v) Adhoc Rates.
(vi) Consultants given free hand in pre-qualification of contractors.
(vii) Consultants allowed receiving sale proceeds of tenders.
(viii) No control of payments on travelling expenses of consultants
for site visits.

489
 (ix) No check on consultants’ planning, design and execution.
Contractors benefited in the process.

4.0 Preparation of Tender Documents

(i) Approval of competent authority not available.
(ii) Contain conflicting, vague and ambiguous provisions resulting
in disputes, delays and financial loss.
(iii) Pre-qualifying criteria ambiguous/stringent.
(iv) Rate only items (Nil Quantity items).
(v) Advance for old machinery already in possession of
contractor.
(vi) Mobilisation advance without interest.
(vii) Unworkable period of construction.
(viii) Tender documents prepared by splitting bigger works
deliberately to fall within the competency of subordinate
officers.
(ix) Particular brand of products stipulated.
(x) No specifications for non-schedule items provided in tender
document.
5.0 INVITING AND OPENING OF TENDERS
(i) Publicity period not adequate.
(ii) Tenders issued to ineligible applicants.
(iii) Tender sale and opening registers not maintained.
(iv) Opening tenders in the absence of tenderers.
(v) Corrections, omissions etc. in tender not numbered and
attested by the tender opening authority.
(vi) Tenders invited without availability of land/approval of local
body.
(vii) Limited tenders invited labelling works as emergency ones
but later on either work delayed or not put to immediate use on
completion.
6.0 TENDER SCRUTINY AND AWARD OF WORK
(i) Pre-qualification done without verifying prescribed parameters

490
 (ii) Contractor qualified without the Contractor satisfying all the
prescribed parameters
(iii) Certificates on Satisfactory completion of work executed for
private parties accepted without TDS certificate while
evaluating PQ Documents.
(iv) Accepting additional conditions during negotiations to give
undue benefit to contractor.
(v) Non-finalisation of tenders within validity period
(vi) Purchase preference not given to PSUs, when Government
Orders permit the same.
(vii) L1 ignored pointing out non-satisfactory performance or other
flimsy grounds.
(viii) Tender Conditions not taken into account to bring all the
tenders on par before acceptance.
(ix) Tender split up and awarded to all or some tenderers, by
dividing the work
(x) Single tender accepted without recorded reasons
(xi) Market rate justification not prepared to assess the
reasonability of quoted rates before acceptance
(xii) Tenders during second call accepted on higher rates
(xiii) Items deleted after opening price bid to make the favoured
contractor as the lowest tenderer (L1)
(xiv) Work awarded without proper verification of papers furnished
by the tenderer.
(xv) Tender documents and related documents kept in loose files
and not arranged properly; page numbers also not marked.
7.0 WORKS AGREEMENT
(i) Unwanted papers in the agreement
(ii) Important papers such as negotiation letter missing
(iii) Execution of agreement much after commencement of work
(iv) Agreement not signed by witnesses
(v) Performance guarantee obtained late
(vi) Insurance not taken as per conditions
(vii) Allowing validity of bank guarantee and insurance policies to
lapse.
(viii) Bank guarantee not verified through issuing bank

491
 (ix) Labour licence not obtained by contractor
(x) Technical staff not employed by contractor
(xi) Labour report not sent periodically
(xii) Safety precautions and other facilities not provided by the
firms
(xiii) Schedule of quantity has rates only in figures and not in words.
(xiv) Stipulations regarding supply of water, electricity etc., not
complied with. Recovery not made in case of supply by
department
(xv) Conditions on Issue of materials/machinery not stipulated in
contract
(xvi) Extension of time granted by authority not competent to do so
(xvii) Stipulations regarding approval of materials/samples not
adhered to.
(xviii) Price escalation paid though not stipulated.
8.0 PAYMENT TO CONTRACTORS
(i) Excessive deviations allowed without approval of competent
authority
(ii) Items substituted to the advantage of the contractor
(iii) Inadmissible extra items paid.
(iv) Exorbitant rates fixed and paid for extra and substituted items.
Measurements not recorded in MBs.
(v) Test checks not carried out
(vi) Excessive part rates allowed.
(vii) Mobilisation advance recovered without interest for a long
time.
(viii) Part rates paid instead of secured advance
(ix) Secured advance paid for larger quantities than required.
(x) Secured advance paid for perishable materials without
comprehensive insurance cover
(xi) Secured advance paid without adequate testing of materials
(xii) Not effecting recoveries of secured advance on time
(xiii) Non recovery of Income Tax
(xiv) Erratic escalation payments by taking provisional indices.

492
 (xv) Escalation paid beyond stipulated period without sanction of
Competent Authority.
(xvi) Undue payments made by over measurement of items.
(xvii) Non-recovery of cost of materials from bills even though
utilised in the items paid for.
(xviii) Excess quantities of materials issued to contractors not
returned.
(xix) Payment made by measurement under wrong item to the
benefit of the contractor.
(xx) All rebates of the contractor not availed while making payment.
(xxi) Short recovery of materials issued from bills
(xxii) Retention money released before due date
(xxiii) Recording fictitious date of completion of works not completed
(xxiv) Rebate not accounted for in extra/substituted items.
(xxv) CGST & SGST reimbursed without proof of payment.
9.0 SITE RECORDS:
(i) Registers not issued by Engineer in Charge with pages
numbered.
(ii) Hindrance register not maintained.
(iii) Site order book not maintained.
(iv) Compliance in site order book not recorded.
(v) Test certificates of cement & steel not available.
(vi) Many cuttings/over writings in the cement register
(vii) Test checks not done by senior officers.
(viii) On many test reports, acceptability limits and whether test
meets the requirements as per contract has not been
mentioned.
(ix) Cement & steel brought in small quantity at site without
testing.
(x) Mandatory tests not carried out.
(xi) Proper records for bitumen, paints, anti-termite and water
proofing chemicals etc., not maintained to check whether
theoretical requirement has been used.
(xii) Guarantees for water proofing treatment/Anti-termite treatment
not obtained.
(xiii) Materials got tested from unapproved private laboratoreis.
(xiv) Samples failed but action not taken.

493
(xv) Site lab not set up in spite of existence of agreement
provisions.
(xvi) Record of fineness modulus (Gradation) and silt content of
sand not maintained.
(xvii) Record of sieve analysis, hardness, deleterious content
flakiness etc., of coarse aggregate not maintained.
(xviii) Design of mix not done by the approved lab, and with every
change of source of material, make & grade of cement.
(xix) Record of design mix not maintained though specified.
(xx) Cube strength/rebound hammer test not done as per specified
frequency & record not maintained.
(xxi) Test of water not maintained and test not carried out as per
specified frequency.
(xxii) Water cement ratio/slump record not maintained or slump
provided higher than specified in design mix report.
(xxiii) Record of check of surface undulations in case of cement
concrete pavement/ bitumen pavement not maintained.
(xxiv) Record of test of sample of Dense Asphaltic Concrete, Semi
Dense Asphaltic Concrete & Bituminous macadam for bitumen
content, grading of aggregate & field density not maintained.
(xxv) Record of pumping of water not maintained.
(xxvi) Record of use of road roller not maintained.
(xxvii) Record of test of compaction of earth not maintained.
(xxviii) Record of testing of earth brought from outside not maintained.
(xxix) Record of testing of earth disposed off declaring as
unserviceable not maintained.
(xxx) Record of expiry date of anti-termite treatment, receipts and
consumption not maintained.
(xxxi) Record of serviceable material retrieved not maintained.
(xxxii) Record of disposal of rejected material by specifying truck no.
& date of disposal not maintained.
(xxxiii) Water table not recorded to check the measurement of work
executed under water.
(xxxiv) Record and proof of foul condition not maintained.
(xxxv) Testing of pile not done and record not maintained.
(xxxvi) Record of level of bottom/top of D.A.C., S.D.A.C & bituminous
macadam not maintained.
(xxxvii) Record of receipt & consumption of bitumen not maintained.

494
 (xxxviii)Record of temp. of bitumen macadam, D.A.C & S.D.A.C not
maintained.
(xxxix) Record of core test or proctor density test of B.M., D.A.C and
S.D.A.C
not maintained.
(xl) Daily bitumen consumption register of hot mix plant not
maintained.
(xli) Verification of BG and test results taken through contractor;
when these were checked by investigating agency, found
forged.
(xlii) Hindrance on account of rain has been recorded, period of rain
fall is already included in stipulated period of completion.
10. QUALITY IN CONSTRUCTION
10.1 Earthwork
(i) Earth work calculations not done based on levels where
specified.
(ii) Hard rock/soft rock not stacked separately.
(iii) Voids not deducted.
(iv) Measurements not restricted as per drawing.
(v) Lead/lift chart of earth not used.
(vi) Proper quality of earth not used
(vii) Compaction of earth by road roller paid within building.

10.2 Concrete Work

(i) Over size/disintegrated/soft aggregates used.
(ii) Sand with more silt content used.
(iii) Honey combing noticed.
(iv) Less thickness of PCC under floors.
(v) Less reinforcement provided.
(vi) Proper overlaps not provided.
(vii) Lesser dia binding wire used.
(viii) Cover of mortar blocks of adequate strength not used.
(ix) Expansion joint not properly located/not provided.
(x) Steel centering and shuttering not used.
(xi) Lower floors not supported during casting.
(xii) Wrong classification of RCC items.
(xiii) Reinforcement found exposed.

495
 (xiv) Design mix not used though specified in contract.
10.3 Wood Work/Aluminium Work
(i) Spices of Wood other than specified used.
(ii) Cracks/dead knots apparent in wood.
(iii) Kiln seasoning not done where specified.
(iv) Less size of stile/rail.
(v) Coal tar/wood preservative not used for timber in contact with
masonry.
(vi) Size of hold fast found less.
(vii) Glass panes of less thickness provided.
(viii) Non ISI marked fittings used.
(ix) Glue not used in joints.
(x) Doors/Windows not fabricated in approved factory.
(xi) Local make flush doors used.
(xii) Less size & number of hinges.
(xiii) Aluminium sections of approved brand not used.
(xiv) Lighter aluminium sections than specified provided.
(xv) Proper sealing between frame and opening not done.
(xvi) PVC weather strip/EDPM lining not provided.
(xvii) Less thickness of anodizing/powder coating.
(xviii) Aluminium work specified in square meter, but drawing
showing sections to be used and their Unit weights not given.
10.4 Steel Work
(i) Non standard steel section used.
(ii) Single piece section not used.
(iii) Metal beading and glazing clips not provided.
(iv) Inferior quality hinges and fittings used.
(v) Steel hinges not fixed by cutting slot.
(vi) Brass striking plate not provided.
(vii) Windows not anchored at top and bottom.
(viii) Angle frames provided instead of T-iron frames.
10.5 Flooring
(i) Less width and thickness of glass strips.
(ii) Less thickness of flooring.
(iii) Less thickness of kota/marble stone/granite used.

496
 (iv) Flooring sounding hollow.
(v) Larger panel size than specified.
(vi) Poor workmanship with reference to lines and levels.
10.6 Roofing
(i) Brick coba treatment having cracks, local undulations,
sounding hollow, less thickness, inadequate slopes.
(ii) Water proofing treatment done by non-specialised firm.
(iii) Guarantee Bond not obtained.
(iv) Gobar and straw not used in plaster over mud phuska.
(v) Less thickness of PVC sheet in khurra.
(vi) Non ISI rain water pipe.
10.7 Finishing
(i) Ceiling plaster thicker than specified.
(ii) Non smooth plastered surface.
(iii) Plaster not in line and level.
(iv) Cement mortar of less strength.
(v) Small size grit used in external grit plaster.
(vi) Less thickness of cement plaster/POP
(vii) Surface not properly prepared before painting.
(viii) Distemper/White wash coming to hand.
(ix) Brush marks noticed.
(x) Paint register not maintained.
10.8 Water Supply, Sanitary Installations and Drainage
(i) Non ISI SCE/GI pipes used.
(ii) Under weight SCI/GI pipes
(iii) Clamping of GI pipe not done at proper spacing
(iv) Under size MS holder bat clamp.
(v) Clamps not fixed in CC blocks.
(vi) Less lead used in joints.
(vii) Defective nahani traps.
(viii) Testing of water supply and sanitary system not done.
(ix) Commercial quality sanitary ware used.
(x) Under weight bib taps/pillar taps/stop cocks
(xi) Brackets of wash basin etc., not provided.
(xii) Under weight PVC water storage tanks provided.

497
 (xiii) Under weight gully gratings and manhole.
(xiv) Inferior quality SW/RCC pipes used.
(xv) Water tightness of joints and slopes not checked.

10.9 Road Work

(i) Undulations in surface.
(ii) Slopes, line and levels not maintained.
(iii) Over size aggregates used.
(iv) Non proper consolidation.
(v) Less thickness of individual layers of WBM/BM/SDAC/DAC.
(vi) WBM paid as per stack measurement.
(vii) Less contents of bitumen and constituents aggregates.
(viii) Less quantity bitumen used in tack coat.
(ix) Proper density of individal layers of pavement not achieved.
(x) Less flexural strength of CC Pavement
(xi) Non proper expansion/construction joint.
(xii) Non uniform corrugation on finished CC pavement.

498
 Annexure 27.1
(Refer Para 27.3)

PROCEDURE ORDER ON OPENING, CUSTODY AND FINAL DISPOSAL

OF ESSENTIAL PROJECT DOCUMENTS

1.0 GENERAL INSTRUCTIONS

1.1 In maintenance of files, the following procedure shall be ensured by

the custodian of the file.

i) The file will consist of a Correspondence side attached to the

bottom cover of file and Noting Side attached to the top cover
of the file.

ii) Correspondence side documents should be numbered serially

starting from 1, on the right hand top corner on each page or
folio. Rubber stamp marking

B.R

F.R

shall be inscribed on the middle of top of each page/Folio. B.R.

stands for “Back Reference” or the earlier Folio No. dealing with
the same subject. F.R. stands for “Forward Reference” or the
subsequent Folio No. dealing with the same subject.

iii) Noting-side documents should also be numbered serially

starting from N/1, on the top middle of each page. In the
Notings any reference to Correspondence / Folio Number
should be made as C/ ____ (Page No.) Similarly any reference
to an earlier Noting Page should be made as N/_____ (Page
No.).

iv) There should be no blank pages either in the Correspondence

or Noting side. Blank space if found unavoidable or left by
mistake, should be scored out to prevent subsequent additions.

1.2 SBU Head will nominate an official of the Project Office to be in

charge of the Central Registry for custody of all Documents relating to

499
 closed projects, whether emanating from the Project Office itself or
received from the Site Office. This official will also maintain a
Register with Project wise Index of all Documents received from the
Project Coordinators and from the Accounts Section.

2.0 GROUPS AND DOCUMENTS COVERED BY EACH GROUP

GROUP DOCUMENT / FILE NAME

A) COMMON FILES TO 1. Policy File on “Technical

Matters”
BE MAINTAINED IN
2. Policy File on
SBU OFFICE “Establishment Matters”

3. Policy File on “Accounts

Matters”

4. Business Development File

on Projects for which no
offer is Proposed to be
made

B) DOCUMENTS TO BE MAINTAINED 1. Business Development File

IN SBU OFFICE BY TECHNICAL 2. Input Estimate File

WING FOR EACH PROJECT FOR 3. Consultancy Agreement

between RITES and the
WHICH OFFER IS PROPOSED TO CLIENT
BE MADE 4. Sub Consultancy Agreement
between RITES and the SUB
CONSULTANT
5. Correspondence File on
Estimate

6. Detailed Estimate for Works

7. Drawings – Correspondence
file

500
 8. Correspondance between
RITES and the SUB
CONSULTANT

9. Works Contract Agreement

between RITES and the
CONTRACTOR

10. Correspondence between

RITES and the
CONTRACTOR / Site
Offices

11. Consultancy Agreement –

Correspondence with the
CLIENT on Technical
matters

12. Correspondence with

RITES Headquarters on all
matters
C) DOCUMENTS TO BE MAINTAINED 1. Correspondence with the
CLIENT on Financial
IN SBU OFFICE BY ACCOUNTS matters
WING FOR EACH PROJECT FOR 2. Correspondence with the
CONTRACTOR on
WHICH CONSULTANCY Financial matters
AGREEMENT HAS BEEN SIGNED 3. Correspondence with the
WITH THE CLIENT SUB CONSULTANT on
Financial matters

D) DOCUMENTS TO BE MAINTAINED 1. Correspondence with SBU

Office on all matters
BY THE SITE OFFICE FOR THE
2. Correspondence with the
WORK FOR WHICH WORKS CONTRACTOR on all
matters
CONTRACT HAS BEEN
3. Correspondence with the
EXECUTED CLIENT on all matters

501
2.1 In addition to the essential Documents listed in Para 2.0, SBU Head can
open other files as required, following the same system on numbering of
files.

3.0 PROCEDURE TO BE ADOPTED ON OPENING AND CUSTODY OF

DOCUMENTS UNDER DIFFERENT GROUPS

3.1 GROUP (A)-COMMON FILES TO BE MAINTAINED IN SBU OFFICE

NOTES

i) The official nominated by SBU Head will be responsible for

opening of the files (Items 1 to 4) including giving File Number.

ii) Policy Files (Items 1,2 & 3) are to be retained as permanent

records and will continue to remain in the custody of official
nominated by SBU. At the time of his transfer/ retirement, the
official concerned should hand over the files to his successor
under clear signature. The top covers of all Policy Files should
be prominently marked with the words “PERMANENT
RECORD/NOT TO BE DESTROYED”.

iii) Business Development Files (Item 4), relating to each Financial

Year shall be maintained separately. File relating to each
Financial Year may be retained for a year more and disposed
off at the beginning of the second succeeding Financial Year.

A (1) POLICY FILE ON TECHNICAL MATTERS

a) File Name : Policy Letters and Correspondence on Technical

Matters

b) File Number: RITES/PO/Hd.Qtrs. of PO/POLICY/

TECHNICAL/VOL. No.
(Note: Head Quarters of Project Office can be in a short form
such as SC for Secunderabad, NGP for Nagpur etc)

c) Contents: All Policy letters issued by RITES Head Quarters

including correspondence on all Technical matters.

A (2) POLICY FILE ON ESTABLISHMENT MATTERS

a) File Name : Policy Letters and Correspondence on

Establishment Matters

502
 b) File Number: RITES/PO/Hd.Qtrs. of PO/POLICY/ ESTAB/VOL.
No.

c) Contents: All Policy letters issued by RITES Head Quarters

including correspondence on all Establishment matters.

A (3) POLICY FILE ON ACCOUNTS MATTERS

a) File Name : Policy Letters and Correspondence on Accounts

Matters

b) File Number: RITES/PO/Hd.Qtrs. of PO/POLICY/ACCTS/VOL.

No.

c) Contents: All Policy letters issued by RITES Head Quarters

including Correspondence on all Accounts matters.

A (4) BUSINESS DEVELOPMENT FILE ON PROJECTS FOR WHICH NO

OFFER IS PROPOSED TO BE MADE

a) File Name: “No- Offer” Projects

b) File Number: RITES / PO/Hd.Qtrs. of PO/ BD/ No Offer /

Financial Year

(Note: One file to be opened for each Financial year)

c) Contents: Newspaper or other advertisements, Tender / Details

collected and correspondence / Notings on the decision not to
quote for the Tender.

3.2 GROUP (B)-DOCUMENTS TO BE MAINTAINED IN SBU OFFICE BY

TECHNICAL WING FOR EACH PROJECT FOR WHICH OFFER IS
PROPOSED TO BE MADE
NOTES

i) The Project Coordinator will be responsible for opening of the

files (Items 1, 2, 5, 7, 8, 10, 11, & 12) including giving File
numbers.

ii) The Project Coordinator will also be responsible for making out
three copies of documents (Items 3, 4, 6 & 9) in Bound Book
form and arrange to supply one copy each to the Accounts
Section in SBU Office and to the Site office. He will also be

503
 responsible to make out two copies of Input Estimate (Item 3)
and arrange to supply one copy to the Accounts Section in SBU
Office.

iii) The Project Coordinator will keep custody of all documents

(Items 1 to 12) as well as all the Documents received from the
Controlling Site Engineer till Refund of the Security Deposit to
the Works Contractor or Finalisation of Arbitration / Court Case,
if any, whichever is later. The Project Coordinator will then
hand over all the Records to the official in charge of the Central
Registry duly indexed and under clear signature, after marking
in bold letters on top cover of each Document the Expiry Date
(Date upto which the document is to be preserved as per the
provisions in Annexure 19.5 of these Guidelines).

B (1) BUSINESS DEVELOPMENT FILE

a) File Name: B.D. Correspondence on _____ (Name of the
Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in

Brief / Name of Project in brief / BD/Financial Year of Offer

c) Contents: i) Notification on Project (NIT)

ii) Tender Document

iii) Papers relating to preparation of Technical

& Financial Bids

iv) Correspondence with the Client on

Clarifications

v) Minutes of Pre-Bid Meeting

vi) Technical Bid as submitted (complete)

vii) Financial Bid as submitted (complete)

viii) Results of Negotiation, if any

ix) Letter of Acceptance / Letter of Rejection of

Bid by the Client.

504
B (2) INPUT ESTIMATE

(Note: Input Estimate as finally sanctioned should be maintained in a

bound Book form in two copies with one copy retained with Project
Coordinator and one with Accounts Section)

a) File Name: Correspondence on Input Estimate on

________________ (Name of the Project) – Consultancy
Agreement No. ________ dt.________

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in

Brief / Name of

Project in brief / INPUT ESTIMATE

c) Contents: All correspondence relating to Input Estimate till

sanction by the Competent Authority along with a copy of Input
Estimate as sanctioned.

B (3) CONSULTANCY AGREEMENT BETWEEN RITES AND THE

CLIENT

(Note: To be maintained in a bound Book form in three copies, one

with Project Coordinator, one with Accounts Section in SBU Office
and one in Site Office. The Contract Agreement duly signed by both
parties should be complete with all enclosures).

Details to be inscribed on top cover of the Bound Book

CONTRACT AGREEMENT FOR PROJECT CONSULTANCY

i) Contract Agreement No. & Date

ii) Name of the Client

iii) Name of the Project

iv) Brief details of scope of Consultancy

v) Period of Consultancy (From ________ to __________)

vi) Consultancy Value

505
B (4) SUB CONSULTANCY AGREEMENT BETWEEN RITES AND THE
SUB-CONSULTANT

(Note: To be maintained in a Bound Book form in three copies, one

with Project Coordinator, one with Accounts Section in SBU Office
and one in Site Office. The Contract Agreement duly signed by both
parties should be complete with all enclosures).

Details to be inscribed on Top Cover of the Bound Book

CONTRACT AGREEMENT FOR SUB CONSULTANCY

i) Contract Agreement No. & Date

ii) Name of the Sub Consultant

iii) Name of the Project

iv) Brief details of scope of Sub Consultancy

v) Period of Sub Consultancy (From ________ to __________)

vi) Sub Consultancy Value

B (5) CORRESPONDENCE FILE ON ESTIMATE

a) File Name: Estimate for ______ (Name of the Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in

brief / Name of

Project in brief/ ESTIMATE

c) Contents: i) Abstract Estimate with details of calculation

on rates and quantities of items

ii) Correspondence with the Client and his

acceptance of Abstract Estimate

iii) Detailed Estimate with supporting

calculations and data relied upon

iv) Correspondence with Client and his

acceptance of Detailed Estimate

506
 v) Technical Sanction of Detailed Estimates by
Competent Authority of RITES.

B (6) DETAILED ESTIMATE FOR WORKS

(Note: To be maintained in a Bound Book form in three copies, one

with Project Coordinator, one with Accounts Section in SBU Office
and one in Site Office. The Estimate copy should include the Letter of
Acceptance of the Client and the Technical Sanction by the
Competent Authority of RITES).

Details to be inscribed on Top Cover of the Bound Book

DETAILED ESTIMATE

i) Name of the work

ii) Brief Details of items covered

iii) Client Acceptance Ref. No. & date

iv) Sanction Ref. No. & date

v) Estimate Amount

B (7) DRAWINGS – CORRESPONDENCE FILE

a) File Name: Drawings for ______ (Name of the Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Client in

brief / Name of Project in brief/ DRAWINGS

c) Contents: Correspondence with the Site Office / Sub

Consultant / Client on Drawings

B (8) CORRESPONDENCE BETWEEN RITES AND THE SUB-

CONSULTANT

a) File Name: Sub Consultancy for __________ (Item of work)

for ____________ (Name of the Project)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of Project in

brief / Item of work in brief/ SUB CONSULTANCY

(Note: Under Column “Item of Work in brief” indicate Design / Survey

/ Geo-tech etc.)

507
 c) Contents: i) Notification (NIT)

ii) Tender Document

iii) Technical & Financial Bids received

iv) Correspondence on Clarifications from

Bidders

v) Evaluation of Bids

vi) Negotiation papers

vii) Letters of Rejection to unsuccessful Bidders

viii)Letter of Acceptance to successful Bidder

and further correspondence on technical
matters till execution of Contract Agreement
for Sub consultancy.

ix) Correspondence during execution of works.

B (9) WORKS CONTRACT AGREEMENT BETWEEN RITES AND THE

CONTRACTOR

(Note: To be maintained in a Bound Book for in three copies, one

copy with Project Coordinator, one with Accounts Section in SBU
Office and one in Site Office. The Contract Agreement duly signed by
both the parties should be complete with all enclosures.)

Details to be inscribed on Top Cover of the Bound Book

CONTRACT AGREEMENT FOR WORKS

i) Contract Agreement No. and Date

ii) Name of the Contractor

iii) Name of the Work

iv) Brief details of Scope of Work

v) Period of Contract ( From ______ To _______)

vi) Contract Value

508
B (10) CORRESPONDANCE BETWEEN RITES AND THE CONTRACTOR
/ SITE OFFICES

a) File Name: Works Contract for ______ (Name of the Work)

b) File Number: RITES / PO/Hd.Qtrs. of PO/ Name of

Contractor in brief / Name of Work in brief/ WORKS
CONTRACT

c) Contents i) Notification (NIT)

ii) Tender Documents

iii) Pre-Bid Meeting Minutes

iv) Correction Slips to Tender Documents

v) Technical & Financial Bids received

vi) Evaluation of Bids

vii) Negotiation Papers

viii) Letters of Rejection to unsuccessful Bidders

ix) Letter of Acceptance to the successful

Bidder and further correspondence with
contractor till execution of Works Contract
Agreement

x) Correspondence during execution of works.

xi) Correspondence with site office.

B (11) CONSULTANCY AGREEMENT – CORRESPONDENCE WITH THE

CLIENT ON TECHNICAL MATTERS.

a) File Name: Correspondence with _______ (Name of the

Client) on __________ (Name of Project) Consultancy
Agt. No.________ Dated:

b) File Number: RITES/PO/Hd.Qr. of PO/ Name of Project in

Brief / Name of Client in Brief / Vol.No.

c) Contents: Correspondence between SBU Office and the Client

on the Consultancy Agreement on Tech.matters.

509
B (12) CORRESPONDENCE WITH RITES HEAD QUARTERS ON ALL
MATTERS.

a) File Name: Correspondence with RITES / Name of

Division / Gurgaon on ______(Name of Project)

b) File Number: RITES/PO/Hd.Qr. of PO / Name of

Project in Brief / Name of Client in Brief / R.I. / B.A. /
_______/Vol.No.

c) Contents: Correspondence between SBU Office

and RITES Corporate Office on the Project on all Matters.

3.3 GROUP (C)- DOCUMENTS TO BE MAINTAINED IN SBU OFFICE

BY ACCOUNTS WING FOR EACH PROJECT FOR WHICH
CONSULTANCY AGREEMENT HAS BEEN SIGNED WITH THE
CLIENT.

NOTES
i) The Accounts Wing Officer nominated by SBU Head will be
responsible for opening of files (Items 1,2 & 3) including giving
File numbers. He will also be responsible for collecting from
the Project Coordinator, Bound copies of Consultancy
Agreement between RITES and the Client, Input Estimate,
Subconsultancy Agreements between RITES and the Sub
Consultants, Detailed Estimate for Works and Works Contract
Agreement between RITES and the Contractors.

ii) The Accounts Wings Officer nominated by SBU Head will keep
custody of all Documents referred to in Para (i) above till
finalisation of Accounts with the Works Contractors, Sub
Consultants and the Client or Finalisation of Arbitration / Court
case if any, whichever is later. The Accounts Wing Officer will
then hand over all the Documents to the official in charge of the
Central Registry duly indexed and under clear signature, after
marking in bold letters on top cover of each Document the
Expiry Date (Date upto which the document is to be preserved
as per the provisions in Annexure 19.5 of these Guidelines).

510
C (1) CORRESPONDENCE WITH THE CLIENT ON FINANCIAL
MATTERS

a) File Name: Correspondence with _________ (Name of

Client) on ______(Name of Project) – Consultancy Agreement
No.__________ Dated:_________

b) File Number: RITES/PO/Hd.Qr. of PO / Name of Project in

brief / Name of Client in brief/ACCTS./Vol.No.

c) Contents: Correspondence between SBU Office and the Client

on the Consultancy Agreement on Financial Matters.

C (2) CORRESPONDENCE WITH THE CONTRACTOR ONFINANCIAL

MATTERS.

a) File Name: Correspondence with __________ (Name of

Contractor) on ______(Name of Project) – Works Contract
Agreement No. __________ Dated:

b) File Number: RITES/PO/Hd.Qr. of PO/ Name of Project in

brief/ Name of Contractor in brief / ACCTS. / Vol.No.

c) Contents: Correspondence between SBU Office and the

Contractor on Financial Matters.

C (3) CORRESPONDENCE WITH THE SUBCONSULTANT ON

FINANCIAL MATTERS.

a) File Name: Correspondence with __________ (Name of

Sub- Consultant) on ______(Name of Project) – Consultancy
Agreement No. ________Dated:___________

b) File Number: RITES/PO/Hd.Qr. of PO/ Name of Project in

Brief / Name of Consultant in brief / ACCTS. / Vol.No.

c) Contents: Correspondence between SBU Office and the

Subconsultant on the Subconsultancy Agreement on Financial
Matters.

3.4 GROUP (D)-DOCUMENTS TO BE MAINTAINED BY THE SITE

OFFICE FOR THE WORK FOR WHICH WORKS CONTRACT HAS
BEEN EXECUTED

511
 NOTES

i) The Controlling Site Engineer will be responsible for opening of

Files (Items 1,2 & 3) including giving File numbers. He will also
be responsible for collecting from the Project Coordinator
Bound copies of Consultancy Agreement between RITES and
the Client, Sub Consultancy Agreement between RITES and
the Subconsultants, Detailed Estimate for Works and Works
Contract Agreement between RITES and the Contractor.

ii) The Controlling Site Engineer will keep custody of all the
Documents referred to in Para (i) above till expiry of the
maintenance period of Works Contract. The Controlling Site
Engineer will thereafter hand over all the Documents to the
Project Coordinator, duly indexed and under clear signature.

D (1) CORRESPONDENCE WITH SBU OFFICE ON ALL MATTERS

a) File Name: Correspondence with __________ (Name of SBU

Office) on ________ (Name of Work) – Works Contract No.
__________ Dated: ___________

b) File Number: RITES/ S.O. / Station of Site Office in brief /

Name of Work in

brief / Name of SBU Office / Vol.No.

c) Contents: Correspondence between Site Office and the SBU

Office on the Works Contract on all matters.

D (2) CORRESPONDENCE WITH THE CONTRACTOR ON ALL

MATTERS
a) File Name: Correspondence with __________ (Name of
Contractor) on ______ (Name of Work) – Works Contract
No._____________Dated:__________

b) File Number: RITES/ S.O. / Station of Site Office in brief /

Name of Work in brief / Name of Contractor in brief/ Vol.No.

c) Contents: Correspondence between Site Office and the

Contractor on the Works Contract on all matters.

512
D (3) CORRESPONDENCE WITH THE CLIENT ON ALL MATTERS

a) File Name: Correspondence with __________ (Name of

Client) on ______(Name of Work) – Works Contract No.
Dated:

b) File Number: RITES / S.O. / Station of Site Office in brief /

Name of Work in brief / Name of Client / Vol.No.

c) Contents: Correspondence between Site Office and the Client

on the Works Contract on all matters.

4.0 FINAL DISPOSAL OF PROJECT DOCUMENTS

(Note: Instructions below are applicable to all Documents covered by

all Groups A, B, C & D)

i) The final disposal of Documents will be governed by the

“Norms for disposal of old records” at Annexure 19.5 of these
Guidelines.

ii) Policy files on Technical Matters, Establishment Matters and

Accounts Matters (Refer Group A) should be retained as
permanent records. Business Development Files on Projects
for which no offer is proposed to be made (Refer Group A) are
required to be maintained for each financial year and may be
disposed off at the beginning of the second succeeding
financial year.

iii) The official in charge of the Central Registry, when taking over
custody of the Documents from the Project Coordinators /
Accounts Wing Officers, as the case may be, will check that the
top covers of the Documents have been marked in bold letters
with the Expiry date (Date upto which the Document is to be
preserved as per the provisions in Annexure 19.5 of these
Guidelines)

iv) Every year in the month of April, SBU Head will organize a
drive to have the documents under the custody of the official
incharge of the Central Registry scrutinised carefully. The
Time Expired Documents, as observed from the Top covers of
the Documents should be disposed off after keeping a list of
such documents with relevant details such as, File Number,

513
 File Name, Agreement no. & Date, Names of Parties to the
Agreement, Purpose of Agreement, Details of Site Record etc.

v) Similarly Documents to be kept as Permanent Records should

be preserved duly indexed.

514
 ANNEXURE 28.1
(Refer Para 28.10)

PROFORMA FOR LETTER BY ENGINEER-IN-CHARGE TO THE

CONTRACTOR FOR ISSUE OF SHOW CAUSE NOTICE UNDER CLAUSE
8 OF GUIDELINES ON BANNING OF BUSINESS DEALINGS
BY REGD. POST. / SPEED POST
(SHOW CAUSE NOTICE UNDER CLAUSE 8 OF
GUIDELINES ON BANNING OF BUSINESS DEALINGS)
Office of (Engineer in Charge)

Letter No._____dated_____

To

(Contractor)
Address
Dear Sir,

Sub: Name of work - .......................................................................

Show Cause Notice for Banning of Business Dealings

1 In terms of the ‘Guidelines on Banning of Business Dealings’ given in

Annexure ‘A’ to the Integrity Pact between RITES Ltd.and you, the
Competent Authority is, prima facie, of the view that action for banning of
business dealings with you is called for because of the following grounds of
misconduct / mis-behaviour :
State here the ground(s) on account of which Banning of Business Dealings
can be initiated (refer to Clause 6 of Guidelines on Banning of Business
Dealings)

2 You are hereby given an opportunity to explain your conduct. You may,
therefore, submit your written statement of defence showing cause as to why
business dealings with you should not be banned. Your reply in this regard
should be sent within 30 days of the date of this letter. If no reply is received
within 30 days, the competent authority may decide the matter ex-parte.
Yours faithfully,

Engineer-in-Charge

515
 Annexure 28.2
(Refer Para 28.10)
PROFORMA FOR LETTER BY ENGINEER-IN-CHARGE TO THE
CONTRACTOR ON SUSPENSION OF BUSINESS DEALINGS
BY REGD. POST. / SPEED POST
Office of (Engineer in Charge)
Letter No._____dated_____

To

(Contractor)
Address

Dear Sir,

Sub: Name of work - ...................................................................................

Suspension of Business Dealings

1 In terms of the ‘Guidelines on Banning of Business Dealings’ given in

Annexure ‘A’ to the Integrity Pact between RITES Ltd. and you, the
Competent Authority is authorized to suspend business dealings with you in
case your conduct is under investigation and the allegation(s) against you
is/are of serious nature.
2 The allegation(s) being investigated against you, inter alia, is/are
(a)……………………..(b)……………..(write briefly the allegation(s) which
is/are of serious nature).
3 The Competent Authority considers the aforesaid allegation(s) to be of
serious nature which warrant discontinuance of business dealings with you
pending investigation of the allegation(s). In this connection, please note that
the Competent Authority has decided to suspend business dealings with you
with immediate effect for a period of six months from the date of this letter.

4 Please acknowledge receipt of this letter.

Yours faithfully,

Engineer-in-Charge
Not On Original
Copy to :Investigating Department/Unit for completing the investigation within six
months

516
 ANNEXURE 28.3
(Refer Para 28.10)
PROFORMA FOR LETTER BY ENGINEER-IN-CHARGE TO THE
CONTRACTOR ON BANNING OF BUSINESS DEALINGS
BY REGD. POST. / SPEED POST
Office of (Engineer in Charge)

Letter No._____dated_____
To

(Contractor)
Address

Dear Sir,
Sub: Name of work - .........................................................................................

Banning of Business Dealings

1 In terms of the ‘Guidelines on Banning of Business Dealings’ given in
Annexure ‘A’ to the Integrity Pact between RITES Ltd.and you, a Show
Cause Notice was issued to you vide letter No………………… dated ………..
asking you to submit your written statement of defence within 30 days.

2 The said period of 30 days has since elapsed but no reply has been received
from you.
Or

Your reply to the Show Cause Notice was received vide your letter No.
……….. dated ………
(Delete whichever is not applicable in para 2)

3 After detailed consideration of the matter by the Banning Committee and on

considering the recommendations of the Banning Committee, the Competent
Authority has decided to ban all business dealings with you for a period of ....
years on account of the following grounds
(quote briefly from the reasoned order of the Competent Authority)

4 Please acknowledge receipt of this letter.

Yours faithfully,
Engineer-in-Charge

517