CONTRACT MANAGEMENT

AND
TENDER PROCEDURES

BY

P.CHANDRASEKHAR REDDY
ASST DIRECTOR(Vigilance)
WATER RESOURCES DEPT.

1
 CONTRACT

 Contract is a Mutual or legally binding agreement

between two parties based on polices & conditions
recorded in document form.
 The owner has to decide with type of contract to be
used.

2
 TYPES OF CONTRACTS

ITEM RATE CONTRACT

 The department will call for tenders, indicating the details of
items to be executed, their quantities, rates as per
department estimate.

 The bidder will quote the item wise rates.

 The work will be awarded to the bidder who quotes the

lowest rate, and the agreement is entered.

 The department will furnish all the designs, drawings,

specification for each item of work to be executed the work
accordingly.

 The payment will be made, for the work done, as3 per the item
wise rates quoted by the contractor.,
 LUMP SUM ( L. S) CONTRACT

 The tenders are called, indicating the details of items of works to

be executed, their quantities and rates, and the total cost of
project.

 The contractor has to quote a lump sum price, in the shape of + or

% (excess or less) over the estimated cost of project.

 Item wise rates are not applicable.

 Work is awarded to the lowest bidder.

 The department will furnish all the designs, drawings,

specifications for the works to be executed.

 Payment is made for the work done, based on the estimated rates,
plus or minus tender’s premium.

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 E. P. C (Engineering Procurement Constructions
Contract)

 The tenders are called by specifying the detailed scope of work/

components of works to be executed. Quantities, rates, cost of the
project etc., are NOT furnished in their tenders.

 The contractor himself has to investigate, prepare designs &

drawings, estimates and quote a lump sum price to complete the
work, in all respects.

 The work will be allotted to lowest bidder.

 The contractor will furnish the designs and drawings of all the
components to be executed for approval of the department.
5
 The contractor will furnish the details estimates showing
components wise cost., for the total amount quoted.

 The contractor will furnish, month wise physical / financial

programme of constructions for approval of the department.

• Payment is arranged based on the stage wise progress achieved (not

based on the quantities).

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 B. O. T (Build Operate Transfer) Contract

 The tenders are called specifying the details of work, period of

operation, the cess /tax leviable etc., terms and conditions.

 The bidder has to construct the project at his cost & operate it for
the specified period and then transfer the project to Government.

 During the operation period, the bidder can collect the cess /tax
from the beneficiaries of the project, at the rates fixed /accepted by
the Govt.,

 The work will be awarded to the bidder who offers lowest cess
/taxes chargeable on the user.

 The work is to be executed as per the designs, drawings and

specifications approved by the department.

 No cost is payable to the contractor.

 Ex: NHAI Highways, Bridges on major rivers, Bypass7 roads, mini

hydel projects, etc.,
 Administrative Approval
1. For every work, it is necessary to obtain, in the first instances the
concurrence of the competent authority of the administrative department
requiring the work. The formal acceptance of the proposals by the authority
is termed as Administrative Approval of the work.
2. It is duty of the engineering department requiring the work by the
administration to obtain the requisite approval to it.

Technical Sanction:
1. After receipt of administrative approval and expenditure sanction, a detailed
estimate is further sanctioned by a competent technical authority of the
engineering department empowered by the Government, which ensures that
the proposals are structurally sound and the estimate is accurately calculated
based on adequate data.
2. Such sanction is known as Technical Sanction and should be taken before
inviting tenders to execute the work.

8
 GO Ms No: 94 Dt: 1-7-2003

SANCTION OF ESTIMATES
Administrative Approval
• From Competent Authority

Technical Sanction:
Powers of TS:
 E.Es upto : Rs.10 lakhs.
 S.Es upto : Rs.50 lakhs
 C.Es upto : value of the administrative approval.

9
Modified vide GO Ms No: 41 WR(Reforms Dept) Dt: 24-5-18

Delegation of Powers
Nature of Cadre as Revised Delegation
Powers per G.O.Ms.No.1007, of
TR&B (C1) Powers
Departments,
dated 05-11-1976

CE Upto No Change
Administrative
approval.

Technical
sanction to
SE Up to Rs. 50.00 Lakhs. Up to Rs. 200.00
detailed
Lakhs.
estimate of
works

EE Up to Rs. 10.00 Lakhs Up to Rs. 40.00

Lakhs
TENDER NOTICE / DOCUMENTS:
Tender Notice or Notice Inviting Tenders (NIT) will be approved
by the Engineers for the works for which they are competent to
accord technical sanction.

TENDERS, INVITATION AND FINALIZATION:

 For the works up to Rs. 50 lakhs the tender notice shall be
published in District editions of two Telugu dailies with the
largest circulation
 For works costing more than Rs. 50 lakhs, the tender notices
will be published in one Telugu daily and one English daily
having largest circulation at the State level.
11
COLLECTION OF EMD AT THE TIME OF ISSUING
TENDER DOCUMENTS:
In order to discourage purchase of tender documents by non-serious
bidders, tender documents shall be issued to contractors on
payment of Earned Money Deposit, at 1% of the estimate contract
value. Successful bidder will pay balance EMD of 1½% contractor
value at the time of concluding the agreement.

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 RECEIPT OF TENDERS:

 Interested Bidders can download tender documents from e-

procurement platform.

 Interested Bidders need to upload their technical bids, price bids

and scanned copies of all required documents as enlisted in the
tender notice / Bid document on ‘e’ procurement platform only.

VALIDITY OF TENDERS:
 Bids shall be valid for a period 3 months from last date of
receipt of tenders.

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ECV : Estimated Contract Value
TCV : Tendered Contract Value

A Working Items (Part-I)

Total Estimated Contract Value : Rs.

ECV:- Total-A : Rs.

B L.S Provisions (Part-II)

Provision towards GST @ 12% on ECV : Rs.

Provision towards Labour CESS @ 1% on ECV : Rs.

Provision towards NAC @ 0.1% on ECV : Rs.

Provision towards Seigniorage Charges : Rs.

Total-B : Rs.
14
QUALIFICATION CRITERIA
TO BE PRESCRIBED IN
TENDER DOCUMENT

15
 CONTRACTOR REGISTRATION

As per G.O. Ms. NO: 130 I & CAD (PW-

REFORMS) Dt:22.05.2007

CATEGORIES CLASS
CIVIL Special class
Public Health Class-I
Engineering
Furniture Class-II

Electrical Class-III

Transport Class-IV

Fabrication & Erection of Class-V

Structural Steel

16
 As per G.O. Ms. No: 94, I&CAD ((PW)–COD) Dt:01.07.2003

Monetary limits upto which Contractors are qualified to tender

Description Spl. Class I Class II Class III CLASS IV CLASS V
of item Class
i) CIVIL Above Above Above Above Above Upto Rs.10
Rs.10 Rs.200L Rs.100 L Rs.50 L Rs.10 L & Lakhs
Cr & upto and upto and upto upto
Rs.10 Cr Rs.200 L Rs.100 L Rs.50L

ii) Public Above Above -- --

Health Engg. Rs.1 Lakh Rs.50000 &
& upto upto Rs.1
any Lakh
amount Upto
iii)Furniture
-- Rs.50,000/-
-- --

iv)Electrical
-- --
Upto -- --
v) Transport -- Above
Rs.50,000/-
Rs.2
Lakhs &
upto any
amount

vi) Fabrication Above Above Upto -- 17 --

& erection of Rs.5 Rs.2 Rs.50,000/-
structural steel Lakhs Lakhs &
upto any upto Rs. 5
 CLASS Registration FEE Authority Solvency
Spl. Class Rs.10,000/- Committee of Rs. 200.00 Lakhs
ENCs’& COT

Class I Rs.6,000/- Committee of Rs. 100.00 Lakhs

ENCs’& COT

Committee of Ces’
of other
Class II Rs.3,000/- departments & Rs. 20.00 Lakhs
member of
COT,nominated by
Commissioner,
COT

Class III Rs.2,000/- District Level Rs. 10.00 Lakhs

Committee

Comprising the
Class IV Rs.1,000/- SEs available in Rs. 5.00 Lakhs
the district & a
representative of
COT

Class V Rs.1,000/- EE of concerned 18

Rs. 1.00 Lakh
Division
 PAST EXPEREINCE

CLASS GROUP OF SINGLE WORK

WORKS (In Lakhs)
(In Lakhs)
Spl. Class 500.00 250.00

Class I 100.00 50.00

Class II 40.00 20.00

Class III 20.00 10.00

Class IV 8.00 4.00

Class V No monetary No monetary

limit, limit,

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 Other Documents needed to be
uploaded by the tenderer
 PAN card copy & latest Income Tax Returns.
 VAT Registration and Clearance Certificate.
 Fee payable to APTS.
 Statements I to VII & Self Declaration.
 Litigation history.
 Proposed Methodology and Program of Construction
 Liquid Assets / Credit Facilities / Solvency Certificate.
 CA certificate along with P&L statements.

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Documents needed to be uploaded…..

 Details of Civil Engineering Works completed in the Block Period (

Block Period is last 10 Years in case of Irrigation department
Tenders)
 Details of Similar works completed within block period.
 Details of required Physical Quantities of works completed within
block period.
 Details of On Hand works (Statement IVA) & tenders submitted
(Statement IVB).
 Availability of Key & Critical equipment & quality control
equipment.
 Litigation History
 Availability of Key personnel.

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QUALIFICATION CRITERIA
To quality for award of the Contract, each bidder in its name
should have, during the last five years (specified financial years
i.e. they should be immediately preceding the financial year in
which tenders are invited).

SIMILAR WORKS CRITERIA:

Satisfactorily completed as a prime contractor, similar works of
value not less than Rs. /- @ (usually not less than 50% of
Estimated value of contract) in any one year.

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 Qualification Criteria:
SIMILAR WORKS CRITERIA:

“Satisfactorily completed as Prime Contractor, similar

works of value not less than Rs………………….. @ [Usually not
less than 50% estimate value of Contract] in any one
financial year.

Similar works are those which are alike to the work in

question.

• same category of works for which tenders are invited.

• principal components involved in the work in question

and their similarity in the experience produced by the
tenderer must be examined. 23
What is meant by ‘Completion’

• Contractor should have completed the work within

the block period provided.
• In case a similar work was executed in two or
more financial years, the value executed in any
one year should be considered and after updating
to the present price level, it should be compared
to the required value.
• The Engineer concerned responsible for finalising
the tender document should workout 50% of the
value of work for which tenders are invited and
accordingly suitable amount to be mentioned. ‘@’
indicates the updation of the value of work to
price level of the financial year during which the
tenders are invited.

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 Calculation of minimum similar
works value

 To qualify for award of the contract, each bidder in its name

should have in the last 5 years( 10 years for Irrigation works)
Satisfactorily completed as a prime contractor works under
Similar Work category, in any one financial year, of value not
less than : Rs. /- [Mandatory]

The value is calculated as follows

((ECV X 50%) X (12 months/period of completion))

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Example :
ECV : 403.35 Lakhs

Name of Works : XYZ

EMD : 1%  4.03 Lakhs
Time for completion: 18 Months
Similar work
50 % of Value
of Work to be 403.35 12 0.5 = 35.45
18 X
done in one Lakhs
year

Credit facilities / Solvency : 3 Months Flow

= 403.35 x 3/18 = 67.23 Lakhs

QUANTITIES:

Executed in any one year, the following minimum quantities

of works: -
Cement concrete including RCC and PSC Cum. –
Earth work in both excavation and Embankment Cum. –

(relevant principal items be indicated - (usually 50 percent

of the expected peak quantities of construction per year)

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 Calculation of minimum
Physical Quantities value

 To qualify for award of the contract, each bidder in its name

should have in the last 5 years( 10 years for Irrigation works)

Executed in any one year, the minimum physical quantities

during the last five financial years -10 yearsfor irrigation
works
 The value is calculated as follows
[{Quantity X 50%} X (12 months/period of completion)]

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 QUANTITIES

the Engineers finalising the schedules should take greater care to

identify the quantities of Principal items involved in execution of the
subject work and then indicate the quantities, however usually be
50% of the expected peak quantities, per year.

Example:

• the expected peak quantity of an item be 100 Units

Then the quantity to be indicated is

(2 x 100) units per year (6 m)

if the period of completion is two years it shall be [1/2 x 100]
units per year.

It may be noted that for the purpose of qualifying more

contractors lesser quantity is not to be stipulated. ( 10 %
Minimum)
minimum quantities to be executed to qualify for opening of the price
bid of tenderer in his name during the last five years29 i.e., 2013-14 to
2017-18
Example

Quantity in Est. X 50 % X 12 Months

Period of Completion
Period of completion : 18 Months

Item Qty in Estimate to be prescribed in TD

Masonry : 1855.17 Cum 618.39 Cum

Earth work : 25465.95Cum 8488.65Cum

CC/VCC : 1265.07 Cum 421.69

For 6 Months ???????

KEY & CRITICAL EQUIPMENT:

Each Bidder should further demonstrate: a) Availability (either

owned or leased or to be procured against mobilisation
advances) of the following Key and critical equipment for this
work.
• Certificate issued by an officer not below the rank of Executive
Engineer.
• Self declaration of the tenderer in Rs100/- non judicial stamp
paper

LIQUID ASSETS:
Liquid assets/credit facilities of not less than Rs. Lakhs (credit
lines/letter of credit/solvency certificates from Banks etc.
shall be equivalent of the estimated cash flow for three
months in peak construction period)

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BID CAPACITY:

The available bid capacity will be calculated as under:

Assessed Available Bid Capacity : A x N x 2 – B

(3AN-B for Irrigation works)

Where
A= Maximum value of civil engineering works executed in any one year
during the last five years (updated ….. * price level) taking into account
the completed as well as works in progress.
N= Number of years prescribed for completion of the works for which
tenders are invited
B= Value of existing commitments and ongoing works to be completed
during the period of completion of works for which tenders are invited.
@ = at …. * Price level. Financial turnover and cost of completed works of
previous years shall be given weightage of 10% per year to bring them to
……., price level *
* The financial year in which bids are invited.
Experience relating to the works executed in State/Central Government
departments or State/Central Government undertakings shall only be
considered.
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 CHECKLIST TO ACCOMPANY THE TENDER

1. Copy of contractors valid Registration under appropriate class

with Government of Andhra Pradesh. ( As per GO 94 & GO130)
2. Copy of permanent Account Number(PAN) card and copy of
Latest Income tax returns for the year 2012-13 submitted
along with proof of receipt.
3. Registration copy under A.P VAT Act 2005 i.e. Tax payer
identification number along with VAT clearance certificate in
the prescribed proforma.
4. Details of value of civil Engineering works executed in the last
5/10 financial years in bidder’s name in statement-1 with
supporting certificates.
5. Details of similar works completed as prime contractor (in the
same name) during the last 10 financial years 33in statement -II
with supporting certificates.
6. Quantities of work executed as prime contractor (in the
same name) during the last 10 financial years in statement -
III with supporting certificates.
7. Details of existing commitments i.e work on hand in
statement -IV with supporting certificates.
8. Availability of critical equipment in statement-V.
9. Availability of key personnel in statement-VI.
10.Litigation history in statement-VII.
11.Proof of liquid assets in the shape of solvency certificate
etc., for the requires amount.

12.List of certificates enclosed

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 FIRMS INELIGIBLE TO TENDER

 A retired officer of Govt. of AP or Govt. of India excluding works

is disqualified from tendering for period of two years from the
date of retirement without prior permission of the government.
 The bidder who has employed any retired officer as mentioned
above shall be considered as an ineligible bidder.
 The contractor himself or any of his employees is found to be
gazette Officer who retiered from government service and had
not obtained permission from the government for accepting the
contractor’s employment within a period of 2 years from the
date of his retirement.
 The contractor or any of his employee is found at any time after
award of contract, to be such a person who had not obtained the
permission of the Government as aforesaid before
35
submission of
the tender or engagement in the contractor’s service.
 Contractor shall not be eligible to tender for works in the
division/circle where any of his near relatives are employed in
rank of Assistant Engineer/ Assistant Executive Engineer and
above on the administrative side. The contractor shall intimate
the who are working with him in any capacity or any
subsequently employed. He shall also furnish a list of Gazetted
/Non- Gazetted, state Government Employees related to him.
Failure to furnish such information bidder is liable to be
removed from the list of approved contractors and his contact
is liable for cancellation.
 NOTE: Near relative include

Sons, step sons, daughters, and step daughter. Son-in-law.

Brother-in-law and sister-in-law. Brothers and sisters. Father
and Mother. Wife/Husband. Father-in- and Mother -in-law
Nephews, nieces, uncle and aunts cousins and person
36 residing
with or dependent on the contractor.
 FINALISATION OF TENDERS
 Tenders will be finalized by the EES / SEs for the works
costing up to their powers to accord technical sanctions.
 The Chief Engineer shall finalise the tenders upto Rs.10
crore. The tenders for the works costing more than Rs.10
crore will be referred to COT along with Technical Bid
evaluation and Price Bid evaluation for consideration.

Negotiations are not permitted to be conducted at any level.

37
TIME ALLOWED:
The time allowed from the date of publication of tender notices
to the date of receipt of tenders is 14 days for the first call and 7
days for the second call.

VALIDITY OF TENDERS:
Tenders shall be valid for a period of 3 months. Before expiry
of validity, the authority competent to call for tender shall seek
for further extension of validity from the Contractors and in
case the validity is not extended his tender will not be
considered and the E.M.D. shall be returned.

38
 TENDER PREMIUM:
(i) Ceiling of Tender Premium: For all works the ceiling of tender
premium shall be 10% . As per the guidelines, even after two
calls if the tender premium quoted is more than 5%, the matter
should be refer to the Government and the Government may
order for a fresh call or may constitute a committee to avoid the
work on nomination to a reputed contractor from the list to be
maintained by the Department on the basis of performance of
contractors.
(Amendment issued vide GO Ms No : 133 Dt: 20-11-2014)
(i) Discount Tenders: (Percentage less than estimated cost) :
Tenders upto 25% less than the estimate may be accepted but
for tenders which are less by more than 25% of the estimate, a
bank guarantee or demand draft for the difference between the
tendered amount and 75% of the estimate value should be taken
so that the tenderer leaves the works midway and the
department is forced to call for tenders for the work once again,
the bank guarantee or demand draft shall be used to finance the
re-tendered work. 39
SUB-CONTRACTS:
If the prime contractor desires to sub-let a part of the work he
should submit the same at the time of filing tenders itself or during
execution, giving the name of the proposed Sub-Contractor, along
with details of his qualification and experience. The Tender
Accepting Authority should verify the experience of the Sub-
Contractor and if the Sub-Contractor satisfies the qualification
criteria in proportion to the value of work proposed to be sub-let, he
may permit the same. The total value of works to be awarded on
sub-letting shall not exceed 50% of contract value. The extent of
subletting shall be added to the experience of the sub- contractor
and to that extent deducted from that of the main contractor.

40
 INSURANCE

Govt. as per G.O. Ms .No: 5 FINANCE (W&P-

F7) Dept. Dt:03.03.2014, issued orders

 for dispensing with Insurance cover for

all works of Engineering Departments.

41
PRICE ADJUSTMENT:
Price adjustment shall be granted where administered
prices are enforced and that too for works estimated at
more than Rs. 2.00 Crores and having completion period of
more than 18 months. This should be applicable within the
original contract period or extended period owing to
departmental delays. This will not apply to cases attributed
to contractors fault.

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MOBILISATION ADVANCE:
The contractor shall have the facility of obtaining mobilization
advance up to 10 % of contract value on works costing more than
Rs. 1 crore (Now 2 Cr) against Bank Guarantee which will attract
suitable rate of interest. The advance and interest shall be
recovered from the contractor’s bills in appropriate instalments

43
 Tender
ProcedureS

44
 Sanctions / Approvals

 Administrative Sanction accorded by the competent

authority.

 Technical Sanction accorded by the competent

authority based on actual estimate.

 Tender Document / Notice Inviting Tender (NIT)

finalized / approved by officers competent to accord
technical sanction.

45
 Publication of NIT / Tender
Notice
 NIT / Tender Notice published in ‘e’ market place @
www.eprocurement.gov.in by the authorities who finalize NIT / Tender
Document or any officer authorised .

 Simultaneously published in Newspapers

 Tenders up to Rs.50.00 lakhs – 2 Telugu dailies at District level.
 Tenders more than Rs.50.00 lakhs – 1 English and 1 Telugu at State level.

 Time allowed for tendering (from date of hosting to last date of receipt
of tenders)
 1st call – 14 days
 2nd call – 7 days for 1st call responsive tenders.

 – 14 days for 1st call non-responsive

tenders. ( Go Ms 73 I&CAD Dept )

46
 While Publishing the following
should be incorporated in NIT
 Name of the work including scope of the work.
 Estimate Contract value put to tender
 Period of Completion
 Form of contract / class of contractor eligible
 E.M.D. to be paid in the shape of Demand Draft in favour of ---------
------------------------ / Bank Guarantee in favour of Superintending
Engineer ---------------------------
 Date and time for down load of Tender Schedules in Online
 Last date and time for submission of Tenders
 Date and time of opening of tenders
 a) Technical Bids
 b) Price Bids
 Officer inviting bid

47
 Sample NIT Template
1 Name of the work ---------------------------------------------- [Considering
the Scope of work]

2 Estimate Contract value of work put to Rs: ---------------------

tender
------------------ Months
3 Period of completion of work

LUMPSUM
4 Form of contract / class of contractor 1) G.O.Ms.No: 94, I&CAD (PW-COD) Dept, Dated:
eligible 01-07-2003. -----( Specify required Class &
Category)
2) GO Ms No.130 I & CAD (PW: Reforms) Dept Dt
22-05-2007.

5 E.M.D. to be paid in the shape of Demand Rs: ------------------------

Draft in favour of --------------------------------
- / Bank Guarantee in favour of
Superintending Engineer -----------------------
---- obtained from Nationalized Bank /
Scheduled commercial Bank, at 1% of the
estimated contract value ( or as per the
percentage fixed by the funding agency) of
work valid for a period of 6 months from
the starting date specified for downloading
Tender schedule, along with bid
documents.
48
 Sample NIT Template
6 Date and time for down load of From ------------------ Onwards to ----------
Tender Schedules in Online --------------------- upto _______
[14 days clear period shall be
indicated];
[7 days in 2nd call for 1st call responsive
tenders)
[14 days for 2nd call for non
responsive tenders in 1st call as per Go
7 Date and time for down load of Ms No 73]
Tender Schedules in Online
From: ------------------------ at 3.00PM To
8 Last date and time for submission of ------------------------ up to 3.00 PM
Tenders
------------------------ up to 3.30 PM
9 Date and time of opening of tenders
a) Technical Bids
b) Price Bids ------------------------ @ 04.00 p m
-------------------------------@ 4.00 p m
(A minimum of 3 days gap between
Technical Bid opening date & Price Bid
opening date shall be provided as per
10 Officer inviting bid GO.6).

------------------------

49
 Submission of bids on
E-procurement Platform

 Interested Bidders can download tender documents

from e-procurement platform.
 Bidders who satisfy the eligibility criteria given in the
tender notice/ document may bid for the tender.
 Interested Bidders need to upload their technical bids,
price bids and scanned copies of all required documents
as enlisted in the tender notice / Bid document on ‘e’
procurement platform only.
 Bids shall be valid for a period 3 months from last date
of receipt of tenders.

50
 Documents needed to be
uploaded
 Copy of Contractor Registration Certificate under appropriate class
with Government of AP.
 PAN card copy & latest Income Tax Returns.
 VAT Registration and Clearance Certificate.
 Fee payable to APTS.
 Statements I to VII & Self Declaration.
 Litigation history.
 Proposed Methodology and Program of Construction
 Liquid Assets / Credit Facilities / Solvency Certificate.
 CA certificate along with P&L statements.
51
Documents needed to be uploaded
 Details of Civil Engineering Works completed in the Block Period (
Block Period is last 10 Years in case of Irrigation department
Tenders)
 Details of Similar works completed within block period.
 Details of required Physical Quantities of works completed within
block period.
 Details of On Hand works (Statement IVA) & tenders submitted
(Statement IVB).
 Availability of Key & Critical equipment & quality control
equipment.
 Litigation History
 Availability of Key personnel.

52
 Technical Bid & Price bid

 Technical Bid will opened by the concerned Executive Engineer /

Superintending Engineer on date and time specified in NIT / Tender
Document.
 All the Documents uploaded by all the bidders shall be downloaded .

 The technical bids of individual bidders will be

evaluated based on the uploaded documents .
 Price Bid of the technically qualified bidders (after evaluation) will be
opened by the Executive Engineer / Superintending Engineer on the
stipulated date and time.

 Minimum of 2 days time gap is to be maintained between opening of

technical bid and price bid.
53
 Technical Evaluation of bidders

 All the uploaded documents on ‘e’ procurement

platform are downloaded and verified by the
concerned Executive Engineer / Superintending
Engineer
 The technical bids are evaluated against the
eligibility criteria / requirements as specified in
NIT / Tender Document based on the downloaded
documents only and technically qualified bidders
are identified.

54
 Technical Evaluation
 Evaluation based on following eligibility criteria as per NIT
/ Tender Document
 Valid Contractor Registration certificate – Mandatory
 Registration of Firm / Company, Partnership Deed /
Articles of Association.
 EMD – Mandatory
 Transaction Fee –
 Statements I to VII
 Self Declaration
 Proposed Methodology
 Litigation history
 Copy of Pan Card & latest IT Returns 55
 VAT/GST Registration Certificate
 VAT Clearance Certificate
 Liquid Assets / Credit Facilities / Solvency Certificate
– Mandatory
 Key Personnel required –
 Availability of Key & Critical Equipment –
 Machinery certificate issued by Executive
Engineer
(or)
 Declaration on Rs.100/- Non-Judicial stamp paper
with proof of owing or lease agreement.
 Availability of Quality Control Equipment

56
 Similar work experience certificate completed within
block period as Prime Contractor
 Certificate in support of minimum physical quantities
within block period in any one financial year
 Certificate in support of existing commitments
 Annual Turnover certificate by CA along with P&L
Statement
 Bid Capacity criteria

57
 STATEMENT – V
Availability of Critical Equipment & Key personnel

A) Availability of Equipment:
The tenderer should furnish all the information required below, regarding the availability
proposals of the equipment.
Availability proposals
S No Name of equipment Agt. / condition. Remarks
Owned Leased To be procured
-1- -2- -3- -4- -5- -6- -7-

SIGNATURE OF THE TENDERER.

B) Availability of Key Personnel:
Qualification and experience of Key Personnel for administration and execution of the
contract.
S No Position Name Qualification Years of Experience
-1- -2- -3- -4- -5-

SIGNATURE OF THE TENDERER.

 STATEMENT – V
Availability of Critical Equipment & Key personnel

A) Availability of Equipment:
The tenderer should furnish all the information required below, regarding the availability
proposals of the equipment.
Availability proposals
S No Name of equipment Agt. / condition. Remarks
Owned Leased To be procured
-1- -2- -3- -4- -5- -6- -7-

SIGNATURE OF THE TENDERER.

B) Availability of Key Personnel:
Qualification and experience of Key Personnel for administration and execution of the
contract.
S No Position Name Qualification Years of Experience
-1- -2- -3- -4- -5-

SIGNATURE OF THE TENDERER.

 STATEMENT – VI
Information of litigation history in which Bidder is involved

1) Whether blacklisted / Debarred / suspended from execution of work.

2) Other Litigations : If any including Court litigations, Arbitrations, etc.

Department
and Remarks showing
Other Party[ies] Case of dispute Amount involved
concerned present status.
Officer.
-1- -2- -3- -4- -5-

SIGNATURE OF THE TENDERER.

 Evaluation of
Similar Works criteria

61
 Example:
A tenderer had satisfactorily completed three works
as a Prime Contractor within the block period i.e., say
2013-14 to 2017-18( Current Price level 2018-19) as
mentioned below:
Value of work executed Ref. certificates.
Name 13-14 14-15 15-16 16-17 17-18
Period
and Agt.
Agt. of
S. No Descrip Value
No. comple
tion of in Cr
tion
work.

1 AAA 5SE/14- 40 6/14 to --- 18 22 --- ---

15 5/16

2. BBB 4SE 60 5/15 to --- --- 12 28 20

/15-16 3/18

3. CCC 9S/SE/1 80 11/13 10 22 18 24 6

3-14 to
10/17

Total of [3] completed 180 10 40 52 52 26

works
62
Updating to the price level of 2018-19

Value of work done in updated value.

2013-14 … 1.00 x 1.5 = 1.50
2014-15 … 4.00 x 1.4 = 5.60
2015-16 … 5.20 x 1.3 = 6.76
2016-17 … 5.20 x 1.2 = 6.24
2017-18 … 2.60 x 1.1 = 2.86.

The maximum value of works completed relating to the

year 2015-16 is Rs.6.76 Crores and that should be
compared to the value prescribed.

In case the ECV = 12 Cr(12Months) the amount of required

will be Rs.6.00 Crores. The tenderer now is found to have
satisfied, the condition.

In case the ECV = 18 Cr(12 Months the amount of required

will be Rs.9.00 Crores. The tenderer now is found to have
not satisfied, the condition. 63
 STATEMENT – II

Details of satisfactory completion of similar works in the Name of the Tenderer as Prime
Contractor in any one year during last five [5] financial years.

Value of work done so

Contract No. Agt. No.

Date of issue of order

Name & Designation

Description of work

Remarks explaining
Stipulated period of

Balance work to be
of Agt. Concluding

Value of Contract.

reasons for dealy

Name of Project

Actual date of
completion

completion
Authority.
S. No

done
Year

far
-1- -2- -3- -4- -5- -6- -7- -8- -9- -10- -11- -12- -13-

Attach certificate issued by the EE concerned duly countersigned by the SE for the above
works.

SIGNATURE OF THE TENDERER.

Evaluation of
Quantities

65
•For example:
Quantities prescribed are:
CC [including RCC and PCC …750 Cum
Earth work [excavation and embankment] …12500 Cum
Lining [Manual / paver] 2800 Sqmts
BM / DBM. 500 Cum.

If a tenderer has furnished the certificates in proof of having

executed the quantities as follows:-

2013-14 1257 cum Cement concrete.

2014-15 13758 Sqm Earth work.
2015-16 4269 Sqm Lining.
2016-17 685 Cum DBM
____the quantities need not be of same year.
66
--------Tenderer eligible
 BID CAPACITY
“Ä” Value
• Last five years means last five financial years. If the
tenders are invited in 2018-19, last five financial years will
be 2013-14 to 2017-189.
•In case, any certificate indicates the value of works from
12/2016 to 12/2017, it cannot be considered as a financial
year. It should be bifurcated into 2015-16 & 2016-17

EXAMPLE:
Executed :
2013-14 : Rs.110 Lakhs.
2014-15 : ------.
2015-16 : Rs.100 Lakhs.
2016-17 : Rs.120 Lakhs.
2017-18 : Rs.140 Lakhs.

67
The above values if up-dated then we may identify the
maximum value of Civil Engineering works executed. The
updation @ 10% per year to the price level of 2018-19.

Updated values:
2013-14 : Rs.110 x 1.50 = Rs.165 Lakhs.
2014-15 : ----------
2015-16 : Rs.100 x 1.30 = Rs.130 Lakhs.
2016-17 : Rs.120 x 1.20 = Rs.144 Lakhs.
2017-18 : Rs.140 x 1.10 = Rs.154 Lakhs.

Now ‘A’ is Rs.165 Lakhs.

68
 STATEMENT – I

Maximum value of Civil Engineering works executed in any one year during the last [5]
financial years by the Tenderer.
S. No. Financial Year Value in Rs.
1. 1994-1995
2. 1995-1996
3. 1996-1997
4. 1997-1998
5. 1998-1999
Attach certificate from the EE countersigned by SE or form Chartered Accountant along with
Annual Balance sheet.

SIGNATURE OF THE TENDERER.

 “B” Value

the value of existing commitments and on-going works

either in his name or in the name of JV to the extent of
his share to be completed during the period of completion
of work for which tenders are invited, updated to price
level of 2018-19 i.e., the financial year in which Tenders
are invited.

• Existing commitments may relate to the Works

awarded but agreements yet to be concluded.
(Statement IV A)

• Ongoing work(s) subsisting contract(s).

(Statement –IV-B)

70
 Bid Capacity of M/s ABCD Constructions

A Value Rs.350.2
=Rs. 2200 L (2016-17) ECV 8lakhs
(Updated
to 2018- Rs.292.9
.=Rs 2640 L 19) TCV 8lakhs
N 12
Value=
12 M or 1
.= Year

B Value

STATEMENT IVA

Balance
value of term
factor value
Agt Agt work factor
S.no. NW Agt value year/Dt Period done
7-5-16/ 1.2 1 1006.98
1 XXX 8434.97 2016-17 36 M 839.15 <12 M
2017-18/
10-12- 1.1 1 700.205
2017
2 YYY 776.78 18M 636.55 <12 M
2017-18 2600*1.1
1.1 12/26
3 ZZZ 2849 /4-3-2018 36M 2600 1199.99 >12M *12/26

B Value 3772.745

IV B ( Already Tendered)= Nil 71

Bid Capacity= 3AN-B=3*2640 *1-3772.745= 4147.25 L > ECV : Rs 350.2 L

 STATEMENT – IV
Information on Bid capacity
Works for which Tender have been submitted and works which are yet to be completed as on
date of submission of this Tender [To be furnished financial year wise]

A) Existing commitments and ongoing works:

Name & Value of
Address of Stipulated Value of works Anticipated
Description Agt. No. Value of
S No Agt. period of works remaining to date of Remarks
of work & Date. Contract
Concluding completion completed be completion.
Authority completed
-1- -2- -3- -4- -5- -6- -7- -8- -9- -10-

Attach certificate from the EE and countersigned by SE.

SIGNATURE OF THE TENDERER.

B) Works for which Tenderer already submitted:

Date on
Name & Address of Estimated Stipulated Date when
Description which
S No Agt. Concluding value of period of decision is Remarks
of work Tender
Authority works completion expected
submitted
-1- -2- -3- -4- -5- -6- -7- -8-

I Sri / M/s. ______________________ do hereby solemnly declare that the information

furnished is correct and also declare that I / WE will abide by any action such as
disqualification or blacklisting or determination of contract on any action deem fit, if the
department detects at any stage that the information furnished is wrong.

SIGNATURE OF THE TENDERER.

CASE STUDIES

73
 CASE STUDY
 Name of work: XYZ
 ECV : Rs. 1200.00 lakhs
 TCV : Rs. 1300.00 Lakhs
 Actual value : Rs.1405 Lakhs
 Similar work criteria : Rs.225.00 lakhs(in any one year in B P)
 Commencement of work : 14-11-2009
2009-10 Rs.480 Lakhs
considered 14-11-2009
2010-11 Rs.200 Lakhs
2011-12 Rs.450 Lakhs
2012-13 Rs.240 Lakhs
2013-14 Rs.35 Lakhs

Executed in 3 out of 5 years i.e. Value of work > Rs.225 L

(Tenders invited in 10/2018 ie.2018-19)
Block period (2013-14 to 2017-18)-- disqualified
Court upheld the decision of COT
 CASE STUDY

 Partnership deed 1st one died

2nd is not interested to

take up the work.

WHAT TO DO ??
 CASE STUDY

Disqualified one of the

tenderers, for the reason that
the hard copies of the
documents have not been
submitted in stipulated time
which is against the
G.O.Ms.No:174 Dt:01.09.2008.
 CASE STUDY
In one of the tenders,

Conditions:

“The consent letters of the technical personnel in

the format given under along with the copies of the
educational qualification certificates shall be furnished.” ----

NOT CORRECT
 CASE STUDY
 Tender called without Technical Sanction.

 Later, ECV changed – increased &

 value in Schedule-A increased.

 EMD Change

-- Amount quoted will change

-- Solvency will change.

 Subsequently, amendments were done, but, one

tenderer could not change it.

 Hence, petitions received.

 Fault of the dept. to call tender without Technical

Sanction.
 CASE STUDY

 EMD 0.1% as against 1%(by Computer

operator). Nobody has observed the error.

 Only, one tenderer has submitted EMD with

1% but, other 2 tenderers has submitted EMD
with 0.1%.

Dept. Failure
 CASE STUDY

How to evaluate Tie tender

Order

o More bid capacity

o Annual turnover
o Turnover of similar works
o Machinery
CASE STUDY

Special conditions

 Shotcreting – in a continuous period of 4

months.

 “ Irrigation works executed in A.P.”

 CASE STUDY

 BankGurantee not in the name of

concerned S.E.
 Changed name & address of S.E.
 CASE STUDY

PR in R & B
 Existing works ---- not shown

R & B in PR

Available in
COT
 Do’s & Don'ts (while evaluation )
Do’s Don’ts
Invite tenders only after obtaining Never invite Tenders without
proper Administrative Sanction. proper Administrative sanction.

Invite tenders only after valid

technical sanction by the Never invite Tenders without
competent Authority. proper technical sanction .

Ensure that all the statutory Don’t accept any offline

provisions are made in the documents except any
Technical sanction clarifications on the documents
uploaded by the bidder
Evaluate tender based on
uploaded Documents

84
 Do’s & Don'ts while evaluation

Do’s Don’ts

Only Physical quantities with All the Physical quantities

10% and more weightage need not be in the same
should be considered in financial year
prime items except in
Specialized items.

Different Physical Quantities

required can be taken from
different years of the block
period
85
 Evaluation and Comparison of
Price bids
 Bidder with lowest Tender Percentage (TP) quote is selected

 If two bidders have same TP then

 Bidder with higher bid capacity is selected
 If bid capacity is same, the bidder with more annual
turnover is selected
 If annual turnover is same then turnover on similar work
and thereafter machinery available and then clean track
record is considered.

 The lowest quoted bidder is recommended and awarded

work. 86
 Finalization of tender

 Tenders are finalized as per delegation of powers as under:

 Upto 40.00 Lakhs – Executive Engineer
 Beyond 40 lakhs upto 200 lakhs – Superintending
Engineer
 Beyond 200 lakhs upto 10 Cr – Chief Engineer
 Tenders costing more than Rs.10 Crores are referred to
COT for final approval. (As per GO Ms No: 41 Dt:24-5-2018)
 COT shall scrutinize the tenders received from the
concerned Engineer-in- Chief / Chief Engineer based on the
eligibility criteria as per NIT / Tender Document and the
committee takes the final decision.
 Once finalized, the decision is communicated to ENC / CE
and further to SE to conclude the agreement. 87
 Finalization of tender
 Once finalized in COT the tenders are logically closed on
‘e’ procurement platform.

 Before accepting / concluding the tender, the concerned official

need to verify the correctness of certificates uploaded by the
bidder on ‘e’ procurement platform.

 Before concluding the agreement, the concerned official need to

obtain the necessary documents (hard copies) from the bidder.

 After meeting all the above requirements the bidder enters into
agreement i.e. LOA or Work order is issued by the Agreement
concluding authority.
88
 Typical Tender Evaluation Template
Sl.N Details As furnished by the bidder
o
1 Class of Registration specified All the criteria to be checked as
As per Tender document/NIT: per the documents uploaded by
the bidder
Eligibility criteria:
G.O.MS No 178,I&CAD dated 27-9-1997 Special Class
G.O.MS No 132,T,R&B dated 11-8-1998 Special Class Ensure that correct class of
G.O.MS 8, T, R&B dated 8-1-2003 I Class category Registration is
G.O.MS No 94, I&CAD dated 1-7-2003 I Class. [Mandatory] specified as per the work in
question.
Partnership deed :
2 Attested copies of documents relating to the Registration of
the firm, Registration as Civil Contractor, Partnership deed, Ensure that details in
Articles of Association. Partnership deed and in
Registration proceedings are one
EMD payable as specified in NIT: and the same.
3 1) Online Tender details:-
Bid security : Rs. /-
DD in favour of : APAO ---------
/ BG in favour of: Superintending Engineer ---------------- It is often observed that payee
details are not correctly
2) As per Tender Document mentioned.

89
 Typical Tender Evaluation Template
Sl. Details As furnished by the bidder
No
4 Transaction fee: Online Tender details:
Transaction Fee Payable to ‘APTS’ payable at Hyderabad (As per
G.O. Ms No 4,
Dt 17.02.2005 IT&C Dept) : Rs. /- [Mandatory]

5 Statements I to VII (Qualification data of the tenderers under as

per clause ------ of T.D)

6 DECLARATION OF THE TENDERER

I/WE have not been black listed in any department in Andhra
Pradesh due to any reasons.
I/WE have not been demoted to the next lower category for not
filing the tenders after buying the tender schedules in a whole year
and my/our registration has not been cancelled for a similar
default in two consecutive years.
3) I/WE agree to disqualify me/us for any wrong declaration in
respect of the above and to summarily reject my/our tender.

The proposed methodology and program of construction, backed

7 with equipment planning and deployment, duly supported with
broad calculations, justifying their capability of execution and
completion of the work as per technical specifications within the
stipulated period of completion as per milestones. (Qualification
data of the tenderers under as per clause ------ of T.D)

90
 Typical Tender Evaluation Template
Sl.N Details As furnished by the bidder
o

8 Clause ----------- of qualification of bidders

Information regarding any litigation, with Government during
the last five years, in which the Tenderer is involved in
(Qualification data of the tenderer under as per clause ------ of
T.D)
9
Copy of PAN card with a copy of latest income tax returns
submitted with proof of receipt.
[as per clause ------ of Q.C. for opening of Price bid].
10
Copy of Value Added Tax (VAT) Registration & Latest valid VAT
clearance certificate. Or Presently GST Regn No
[as per clause ------ of T.D) . for opening of price bid].
11
Liquid assets and / or credit facilities of not less than Rs.
/- (Credit facility / letter of credits / Solvency certificates from Ensure that Credit facilities /
Nationalized / Scheduled Commercial Banks etc). Liquid Assets certificate
[as per clause ------ of T.D) . for opening of price bid].
should at least be valid as on
As per Eligibility Criteria: Liquid Assets / Credit facilities the less of Tendering.
possessed Rs. /-

91
 Typical Tender Evaluation Template
Sl.N Details As furnished by the bidder
o
12 Availability of Key Personnel required with experience in
construction of similar civil, Engineering works:
Graduate Engineer – 1 No.
Diploma Holders with adequate experience – 1 No.
[as per clause ------ of T.D) . for opening of Price bid].
Eligibility Criteria:
Graduate / Diploma Engineer (Civil/Mechanical) – 1 No. with
minimum 3 years experience.
Graduate Engineer (Civil / Mechanical) – 1 No. with minimum 5
years experience. [Mandatory]

Key & critical equipment as specified:

13 Should possess the Key / Critical equipment (either owned or Ensure that the equipment
leased or to be procured against mobilization advance ) specified is commensurate
The tenderer has to submit either a certificate issued by the
with work equipments.
Executive Engineer or a Declaration on Non-judicial stamp paper
worth Rs. 100/- as prescribed in Statement-V given above with
sufficient proof of document in support of owning such as Invoice
/ certificate of registration by competent authority in
support of the critical equipment.
A lease deed/agreement regarding the equipment leased shall be
produced by the tenderer on a non-judicial stamp paper of
Rs.100/- along with proof of ownership.
[Clause as per clause ------ of T.D) for opening of price
bid]:[Mandatory]
92
Typical Tender Evaluation Template
Sl. Details As furnished by the
No bidder
14 Quality Control laboratory: Ensure that the
The tenderer shall also submit quality plan and also show proof equipment specified is
of owing quality laboratory.
commensurate with
For all works costing more than Rs.200.00 lakhs, the tenderer
shall submit quality plan and also show proof of owning quality work equipments.
laboratory. The following equipment is required.
[as per clause ------ of T.D. for opening of price bid]

Similar works criteria:

15 The bidder should have satisfactory completed, as prime
contractor similar nature of road works of value not less than Rs.
/- in any one financial year during last five financial years( 10
Years) i.e., from ( Starting and closing years of block period to While specifying the
be mentioned) similar work care
(This value will be updated to the year -------( in which the should be taken to
tenders for this work is called) duly giving 10% weightage for ensure that similar
each financial year. Subcontractors / GPA holders experience
work specified is
shall not be taken into account.
As per Eligibility criteria: compatible with the
To qualify for award of the contract, each bidder in its name subject work.
should have in the last 5 years Satisfactory completed as a prime
contractor works under Similar Work category, in any one
financial year ending with <31/03/---------Year to be specified---
----- (, of value not less than : Rs. /- [Mandatory]

93
Typical Tender Evaluation Template
Sl.No Details As furnished by the bidder

16 Physical quantities: Executed in any one year, the a. Ensure that only
following minimum physical quantities during the quantities with 10% or
last five financial years ending with <31/03/2013> more weightage are
i.e. from ------- to. (as per clause ------ of T.D) . for specified.
opening of Price bid). b. Ensure that all major /
important quantities are
covered.

c. While calculating ‘B’

17 value update to the
Bid Capacity current financial year.
2AN – B > ECV d. Take prorate value if the
Where ‘A’ is maximum value of Civ il Engineering period of work under
works executed in any one year during the last 5 question is less than the
years ( 10 years for inrrigation works)taking into balance period for
account the completed as well as work in progress indiv idual balance
(updated to current price level by giv ing weightage works.
of 10% increase for each year).
B – total value of existing commitments, on-going
works

N – period of completion in years

94
 Related GO’s
 G.O. Ms. No.94, I&CAD dated 01-07-2003. Tender procedures and
Registration of contractors Rules – Comprehensive
 G.O. Ms. No.174, I&CAD dated 01-09-2008. Public works-Reforms in
eProcurement - Submission of Hard Copies of documents DD/BG etc for
EMD etc by the bidders- Modification Orders Issued.
 G.O.Ms: 245, I&CAD dated 30-12-2005. Public works-Reforms in Public
Works Department-e-procurement in Engineering Departments-Dispensing
the submission of hard copies at the time of tendering - Amendments to
G.O.Ms.No.6. I&CAD(PW)Department dt.11.1.2005.
 G.O. Ms. No.73, I&CAD dated 27.06.2009. Tender procedures and
Registration of contractors – Procedure to be followed in second and
subsequent tender calls.
 G.O.MS.No.36, Dated: 07-03 -2003. Public Works - Reforms in Public Works
Departments - introduction of 'e' Procurement in irrigation and R&B
Departments - Guidelines / procedure to be Followed - Orders - Issued.
Irrigation and CAD (PW-COD) Department.
95
 GO Ms No: 130 I&CAD (PW Reforms) Dept Dt: 22-5-2007 – Modifications to
the norms stipulated in GO Ms No: 94 Dt: 1-7-2003.
 G.O. Ms. No.41,wr (Reforms) Dept Dt: 24-5-2018- Steam lining the Powers
of AA, TS, Calling Tenders etc.,
 G.O. Ms. No.5 , Finance (Works & Projects-F7) Dept Dt: 5-3-2014-.
Insurance Clause in the Agreements- Despensing with Insurance cover in
all works of Engg Depts.

96
 AGREEMENT

 On completion of tender Process, an agreement will be entered

between the department and the contractor.

 The bid document signed and filed by the lowest bidder will become
the agreement signed by both the parties.

 The Agreement comprises of:

 Details of items to be executed, their quantities, rates payable.

 Drawings showing the details of components to be executed.

 Detailed specifications of all the items to be executed.

 Construction programme, mile stones to be achieved.

 Payment schedule in respect of EPC works.

 Quality control tests to be conducted on the material /works.

97
 Rules and regulations to be fallowed during execution of the project.
 SPECIFICATIONS

 The works are to be executed as per the specifications laid down

in “A. P Standard Specification” (APSS) , consisting of detailed
specification of various items of works to be executed.

 In respect of Roads and Bridges, MORTH, MOST, IR specification

should be followed.

 Items not covered by any of the above, have to be executed as per

the specifications laid down in the I.S. Codes.

 The quality control tests on materials / works should be conducted

as specified in the above specification, I. S. Codes.
98
 QUALITY CONTROL

 The quality control is the primary responsibility of the

contractor.

 The agency will establish its own quality control unit/lab, to be

conduct day to day Q.C tests as per BIS standards.

 Third party Quality control agencies, are engaged to supervise

and conduct the Q.C tests.

 The departmental Q.C officials ensure that Q.C tests are being
conducted by the contractor, third party Q.C agency as per
agreement terms and conditions.

99
 EXTENSION OF TIME
 Extension of time is granted for any delays on the part of
the department.

 If it is due to delay attributable to the contractor, the E.O.T

will be sanctioned duly levying penalty.

 First extension of 6 months is granted by the Agmt.,

authority, and next by higher authority.

 In case of EPC works, the first extension is by the high-

power committee, and the next by the Govt.,

100
 ARBITRATION
Settlement of a dispute between parties to a contract by a neutral third party (the arbitrator) without resorting to
court action. Arbitration is usually voluntary but sometimes it is required by law. If both sides agree to be bound by
the arbitrator's decision it becomes a binding arbitration.

 Claims up to Rs. 10,000/-……………. By S.E

 Claims up to Rs. 50,000/-……………. By C.E
 Claims above RS. 50,000/- shall be by the civil court by way of a
regular civil suit.

 A reference for adjudication under this clauses shall be made

within six months from the date of intimating the contractor of
the preparation of final bill or his having accepted payment
whichever is earlier.

101
 PRICE ADJUSTMENT

 Price adjustment is allowed on cement, steel, pipes

manufacturing materials, Diesel etc.,

 Escalation is paid if the prices get increased by more than

5% of base rates.

 If the prices fall below 95% of base rates recovery is made.

 The price adjustment is made on monthly basis based on

the rates published by the department.

 Escalation should not be allowed where liquidated damages

are levied and extension of time granted 102 for reason
attributable to contractor.
 PRICE ADJUSTMENT FOR CEMENT /STEEL
Vс = R×(C¡ - Cο)

Vс = Price adjustment to be made for increase/ decrease

in the rate of cement /steel during the month.

R = Quantity of Cement /Steel consumed in the work

executed during the month.

Cο= The base rates for cement /steel as specified in the

agreement + or – 5% as the case may be.

C¡ = The rates of cement /steel as fixed by the department for

the month under consideration.
103
 PRICE ADJUSTMENT FOR POL
 V = Pf /100× R×(Fi-Fo )/ Fo
 Where
 V = Price adjustment to be bae for Increase/ decrease in the
cost of POL.

 R = Value of Work done during the period under consideration.

 Pf =% of fuel component of the work to be arrived at as per AP

standard data and approved by the competant authority.

 Fo = retail price of HSD at the pump nearest to the work spot

on the last day of filling bids +5%

 Fi=retails price of HSD at the pump nearest to the work spot

during the period under consideration.

 The value of work done R shall exclude Seigniorage charges,

104
VAT and all other overhead charges.
 CHANGES IN THE QUANTITIES (L.S)
 The contractor is bound to execute all the supplements items
that are found essential, during the execution of work, at the
rates to be worked out as detailed below.

 In respect of items form which the rates can be deducible from

the agreement rates, the same shall be worked.

 For new items, which do not correspond to any item in the

agreement, the rates shall be the standard schedule of rates
plus or minus the quoted tender percentage.

 The term standard schedule of rates used in the above sub

clause means schedule of rates with which the sanctioned
105
estimate was prepared and the tenders were compared with.
 SECURITY DEPOSIT

 In addition to the EMD of 2.5% paid at the time of agreement

,7½% of the value of work done is withheld and retained as
security in intermediate payments.

 On completion of the entire work 5% from out of the 7.5%

withheld will be released, retaining the 2.5% as further security
which will be released along with 2.5% EMD , after completion
of defect liability period of 24 months.

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 SUBLETTING OF CONTRACT:

 The value of works awarded on subletting shall not exceed 50%

of contract value.

 The sub contract should be approved by the tender accepting

authority.

 The sub-contractor should also satisfy the qualification criteria

specified.

 The experience will be credited to the sub-contractor, but not to

the main contractor.
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 LIQUIDATED DAMAGES

 Time is the essence of any contract. The work should be

completed with n the time frame fixed.

 If the contractor fails to complete the work within the

stipulated period of individual mile stones the Superintending
Engineer will deduct one twentieth, of one percent of
respective mile stone value per calendar day or part of the day
for the period of delays subject to a maximum of 10% of the
contract value.

 The maximum amount of liquidated damages for the whole of

the works is ten percent of final contract price. 108
 Mobilization Advance:

Mobilization advance to the extent of 10% of the contract value is

payable against BG in the following

a) 1% after concluding Agreement

b) 4% after completion of investigation & designs
c) 5% for purchase of machinery/equipment at 100% cost for new
machinery and 50% for old machinery brought to site and in
working condition.

 The advance shall bear an interest.

 Recovery of advance with interest shall commence in the next
interim payment following that in which the total of work done
reached 10% of the contract amount and shall be made at the
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rate of 20% of amount of all interim payments.

 VAT/GST
 Value added tax (VAT) during the currency of the contract
deduction towards AP-VAT ACT 2005 according to which tax @
5% on total value has to be deducted at source , while making
payments to the contractor ad per memo No: 14420/R.I (2)/08-2
Dated: 17.12.2008 of T R&B (R.I) Department.

 The contractor should produce a valid VAT clearance

certificate before the payment of the final bill, otherwise
payment to the contractor will be withheld.

 The following clause is incorporated as per the Government

instructions given in GO. Ms. No: 141, T(R&B) Department,
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Dated: 27-07-2006.
 The total amount towards component of VAT at %% is shown in
PART “B” of the estimate. This VAT component loaded in the
estimate (PART” B”) shall be added in each bill of the
contractors who opt for composition scheme and recovered.

 In respect of those contractors who do not opt for composition

scheme, the VAT component loaded in the estimate shall not be
released to them with their bill. However, VAT shall be
recovered based on which they should claim adjustment
through their returns submitted to their respective assessing
authorities.

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 Seigniorage charges

 Seigniorage charges will be recovered as per G.O.Ms. No: 198,

Industries &Commerce (MI) Department, Dated: 13-08-2009 from
the work bills of the contract , based on the theoretical
requirement of materials at the following rates.

 Sand Rs. 40.00 / cum (Now “Nil”)

 Metal Rs. 50.00 / cum

 R. R stone for masonry Rs. 50.00 / cum

 Revetment stone Rs. 50.00 / cum

 C.R.S stone Rs. 50.00 / cum

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 Gravel/Ordinary earth Rs. 22.00 / cum
 PERSONNEL

 The minimum number of the technical personnel to be

engaged by the contractor and their qualifications shall be as

per the contract Data. The wages of these personnel will be

payable by the contractor as per minimum wages act/ SSR. If

contractor fails to engage technical personnel as per

agreement, penalty at double the rate payable will be

recovered from contractor’s bill.

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 No Contractor shall employ any person who is under the age of

14 years

 No contractor shall employ donkeys or other animals with

breaching must be at leat three inches wide and should be of

tape.

 No animal suffering from stores, lameness or emancipation or

hich is immature shall be employed on the work

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 LIQUIDATES DAMAGES

 If the contractor fails to complete whole of the works or any part

there of or section of the works with in the stipulated period of
individual mile stones (including any bonafide extensions allowed
by the competent authority without levying liquidated damages),
the superintending Engineer may without prejudice to any other
method of recovery will deduct one tenth of one percent of
contract value of each milestone per calendar day or part of the
day for the period of delays subject to maximum of 10% of the
contract value not as a penalty from any monies in his hand due
or which may become due to the contractor.

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 OVER HEADS

This is assumed to include inter alia the following elements:

 Site accommodation, setting up plant, access road, water supply,
electricity and general site arrangements.
 Office furniture, equipment and communications.
 Expenditure on corporate office of contractor, site supervision,
Documentation and “as built” drawing.
 Mobilization / De-Mobilization of resources.
 Labor camps with minimum amenities required as per labour laws
and transportation to work sites.
 Light Vehicles for site supervision including administrative and
managerial requirements.

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 Setting up of laboratories for quality control,, filed and
laboratory testing for control of quality of various items of
work and documentation of test results as per requirement of
the specifications.
 Minor T&P excluding vibrators for concrete work and survey
instruments and setting outworks, including verification of line,
dimensions, taking trial pits and before holes, where required.
 Watch and Ward
 Arrangement for traffic and traffic management during
contruction.
 Provision towards safeguarding environment.
 Sundries, Financing expenditure of the contractor work
insurance/compensation.

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 Termination of contract
in between Agt period

• Clause 61 of PS to APDSS
•Clause 60(C) of PS to APDSS

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THANK YOU

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